Sales Funnels Basics
There is a lot of confusion around sales funnels, and we want to help clarify that in this video. First of all, a question that lots of people ask is, “Why is it necessary to build sales funnels in the first place?“
Surely if you want to sell high-priced products, you just sell them, right? Wrong!
While it’s true that in the offline world, you can go ahead and sell expensive stuff right off the bat, for example, if you run a Bentley dealership, you wouldn’t expect someone to buy a Toyota from you first, and then trade up. In the online world, things are different.
Unfortunately, there is a tremendous lack of trust online. It’s not surprising. Some online traders are sadly, less than honest, and online, it’s easy to deceive. For example, your website might give people the impression that your business is a large operation run from slick offices in the heart of the city, when in reality, you’re just some guy who lives in a downmarket neighborhood and works out of his spare bedroom. Of course, your website might give a completely different impression.
To put it bluntly, most people you deal with online for the first time are going to assume that you’re a crook, until you’ve proved otherwise. A sales funnel enables you to do this. With a sales funnel, you can establish that you’re a real business, you provide quality goods or services, you deliver on time, and perhaps most importantly, that the customer is going to see value for money.
Why are Sales Funnels so important?
When people know and trust you, it’s easier to make sales.
We’ve heard it said that people will want five points of contact with you before they’ll really trust you. When they do trust you, they’ll know that you’re not a crook, they’ll know the quality of your goods and services, and they’ll know that you know what you’re talking about. This is where a sales funnel comes in. You start by giving something away for free, you then sell them something inexpensive, then something more expensive, then something even more expensive, and so on, all the way along.
Once someone has bought a cheap item from you and is happy with it, they’re more likely to purchase a more expensive item from you. It’s just human nature. To put it another way, it builds confidence and trust in you, trust in your business, and trust in your brand.