One of the keys to a successful business is that you need to create a sales funnel. This means that you have multiple products at multiple price points for sale. Your goal should be to get every customer to become repeat customers who buy from you again and again.
For example, a typical sales funnel for a digital products business might include items such as reports, ebooks, videos, audios, webinars, and apps. The sales funnel may include the following price points:
- Free lead generators. These are high-value products you give away in order to get people onto your mailing list (and into your sales funnel).
- Entry-level products and services priced around $20 or less. These are sometimes called trip wire products because they offer a tremendous amount of value at a low price. They are ìno brainerî purchases that are designed to turn prospects into cash-paying customers as quickly as possible.
- Mid-level products and services. These are products that are generally less than $100. For example, you might sell a set of training videos for $50.
- Premium products and services. These are your big-ticket items that are at least $100, but they may cost thousands or even tens of thousands of dollars. Examples include high-end software, personal coaching/consulting, and access to weekend workshops.
- Recurring products and services. These are items for which your charge a recurring fee, such as a monthly membership fee. An example of this is charging a monthly fee to retain access to software, such as an autoresponder service. Another example: charging a monthly fee for an ongoing product or service, such as access to a private support forum.
Makes sense, right? The idea is to create multiple products and services at every price point.
Some of your customers are going to buy everything in your funnel, while others are going to pick and choose the best products for them. Still others may buy multiple products, but they won't ever spend over a certain dollar amount (such as over $50) for each individual product. And then you'll have the customers who'll skip your entry level products completely and go right to your premium offerings. You need to create a sales funnel that can accommodate each of these types of customers.
Now here's where many business owners make a grave mistake
They put their sales funnel together as they go. In other words, they don't really plan it – they just play it by ear.
The reason this is a mistake is because ideally you want to cross-promote your products and services within your sales funnel. If your products and services really don't go together that well, then you're going to have poor conversion rates.
So here's what you need to do instead
Think of your sales funnel as a slippery slide. People who are interested in your free lead-generator product should be super-interested in your trip wire product. Those who buy your trip wire product should want to get their hands on your mid-level products. Anyone who wants your mid-level products should be dying to get their hands on your premium offerings.
Anyone who gets a free dieting report from you will be interested in purchasing a low-calorie cookbook.
Those who buy the cookbook will want the mid-level products, which include items such as complete diet guide and a meal-planning app.
Those who get the guide will want to join the private support forum (with the recurring monthly fee).
Those who join the forum will want to get personalized meal plans and training routines from you (high-ticket coaching).
Each product in your sales funnel should compliment every other product in your funnel, which makes it easy for you to cross-promote them.
Now here's where a lot of business owners stumble
They create a lot of entry-level products, but they don't know how to create mid-level or premium products. The good news is that it's a lot easier than you think and there even some pretty slick ways to get others to create premium products for you, for FREE.