Over the last few decades, Internet marketing has evolved with lightning speed. In the beginning of the internet business era, a business could still sustain long term profit if it only produced and sold one high-priced product. However, following the huge changes in the nature of these businesses, relying on only one product isn’t enough to keep your business alive anymore.
Despite all the changes, people continue to strive for success. In this chapter, I am going to show you the secret technique that changes the fate of Internet businesses – the Sales Funnel. This is the secret technique that all the other Internet marketers use to increase their Earnings Per Click (EPC).
It might not sound special now to some of you, but you will definitely fall in love with this technique when you see how it can bring massive wealth to your business.
With the implementation of a sales funnel, you can increase your revenue without putting in extra effort for extra traffic. The Sales Funnel is a proven technique, so you need not to worry about whether it works or not. Sales funnels are a time-tested technique.
When you apply a sales funnel into your launch, it will definitely be your main stream of income. And you will be able to see the results almost instantly. Without further ado, let’s get started.
The Sales Funnel Formula
Now that you already know how amazing a sales funnel is, there is no reason for you to not incorporate a Sales Funnel into your launch.
Below, you will find the Sales Funnel formula. Of course, after years of experience in the Internet business, this is the most ideal model that increases revenue. Let’s get down to each of the steps in the formula.
Front-End
As you can see from the diagram above, the sales funnel starts with a front-end product. This will be the first product, or what is sometimes known as a frontline product, which your potential customer will see.
Your front-end product will be sold at a cheaper price ranged from $7 to $10. Even though the front-end sells at a cheaper price, it doesn’t mean that you can put lesser attention to this. Without a great front-end product, the whole sales funnel will be affected.
Front-end products can be said to be the most important product in your sales funnel because it represents the first impression to your potential customers. The perceived value of your launch will depend on the front-end product.
This is especially important if you are a newbie in the Internet business – the front-end product is the product that will build up your credibility along the way. If the quality of the front-end is not up to standard, what more about the other products?
A front-end product also serves as a catalyst for a buying frenzy. After someone makes their first purchase, they will not be aware of how much more they are willing to spend.
Imagine this scenario: You’ve prepared a shopping list before you go grocery shopping, but you still end up buying more than you’ve planned to buy. Does this sound familiar to you?
This is exactly how sales funnels work. When you’ve already started spending money, it becomes natural for you to say yes to other offers and spend more money than you initially intended.
Upsells
Moving on, you might’ve noticed that there are 3 upsells included in the flowchart. If I tell you that these upsells are the main source of revenue in the sales funnel, you would not think that 3 upsells are enough. But, do not worry – you will put a higher price tag for your upsells, anywhere in the range of $20-$50 is a good starting point.
While front-end will initiate the buying frenzy, upsells are an immediate offer after your front-end product, so that they can continue and prolong the buying frenzy. This is why your first upsell must be an offer that is too good to refuse – it plays a very important role in keeping the buying frenzy alive and well.
Your upsell offer can be an advanced solution or follow-up from your front-end offer. For instance, if your front-end product is about how to build and grow a mailing list, your upsell may be another training course to teach them how to direct massive traffic to the website.
This would be a great offer because the next thing an Internet marketer needs after the setup of a landing page is traffic. This will be a solution for the forecasted problem which is why you can scale the price of your upsell. Just think of upsells as upgrades and add-ons for the front-end product.
A small tip: Offer bonuses in your upsell one. While the offering of a solution for forecasted problems is a good angle, adding in a bonus will increase the perceived value of your upsell.
As you can see after the down sell, the sales funnel is then continued with another two upsells. Always keep in mind that the whole sales funnel must be congruent – meaning all the products fit in harmony.
The upsell 2 and upsell 3, obviously, must be something related to the front-end. So, when you are planning out your Sales Funnel, you must pick on a few related sub-topics to focus your upsell. This is how you draft a great Sales Funnel.
Downsell
As mentioned previously, a downsell happens after the first upsell. In downsell, you’ll remove the bonuses and re-offer them the same upsell product but this time at a lower price.
Some of the buyers may be hesitant to purchase the first upsell. And when this happens, right after they’ve clicked on the ‘No Thanks’ button, they will be redirected to a downsell.
Remove all the bonuses you offered in the first upsell and give them another chance to reconsider the offer. They may be hesitant to purchase the first upsell because of the price or they may be having second thoughts because they don’t think the upsell is worth the price.
So, here’s when down sell comes in as a discount for the same product without bonuses. Take note of removing the bonuses because this is very important. If you did not remove the bonuses and offer the same offer in lower price, it would be unfair for the people who purchased your first upsell.
Backend
The final product in the Sales Funnel is called a backend product. Usually the offers in your launch will end at the third upsell. The backend offer will happen only after a few days in the follow-up emails.
The reason is because backend product can be a long term coaching program or membership sites that can be priced up to $997. Imagine if you suddenly offer the buyers a product in such high price, chances that they will consider this offer are lower.
You wouldn’t want to scare them away by putting this up first. After they’ve read through or ran through your training courses, the trust they put in your will be higher. This is the right timing when you can offer them the backend.
So, you must remember to put your backend offer in the follow up emails a few days after they’ve purchased your product. The backend offer is an optional step for your prospects who are interested.
Some of the marketers might not have a backend product to offer. The higher price the product is, the higher the expectation from the customers. So, if you do not have a backend to offer them yet, do not rush in to offer them a lower quality one.
This is very dangerous as this can ruin your reputation.
Earnings Per Click (EPC)
In the beginning of this chapter, I’ve mentioned that sales funnels are the secret technique that all the other Internet marketers use to increase their Earnings Per Click, or in short EPC. I will elaborate and explain about EPC and will introduce the formula to calculate it, too.
EPC is the average earnings of each click that your affiliates and/or you send to your website. It involves your conversion rate so if your EPC on average is $2 and above, you are doing good.
EPCs Formula
How do you calculate your EPC? The formula of EPC is:
I want you to picture this scenario: Let’s say you are able to direct hundred clicks to your website regardless from your own traffic or your affiliates. And from these 100 clicks, two of them made purchase of a product worth $50. So, the formula will be:
50 times 2, which is your sales, the money you’ve made. And then sales divided by the number of clicks. What you make from sales here is $100 divided by the number of clicks, which are 100 clicks.
Your EPC, in this case, would be $1.
For bigger picture of EPC, let’s go through it with another example. If you direct 300 clicks to the website, and 8 of them make purchase of a $100 product, your sales would be $800.
So, put all the elements in to the formula:
After dividing, you’ll get $2.67. That amount is the EPC. Not so hard after all. As long as you remember the formula, put every elements in to the formula, you can do the math too.
In a nutshell…
The implementation of a sales funnel in to your launch increases the chance to boost your sales. When your sales are high, it directly increases the EPC of your launch.
In conclusion, a higher product’s EPC reflects higher sales in your launch. It is more likely to get a higher rank in Search Engine Optimization (SEO) with a higher EPC because it reflects that the traffic to your website is high, too.
Even though it sounds like a great idea to make as much sales as possible by directing more traffic to your website, but it is not wise to send traffic randomly.
You need to know who the product’s target market is and who is in the niche. Sending in random traffic, indeed, can increase the conversion rate, but it will not increase the sales.
This is the basic rule of marketing that applies in all business. Remember, all traffic must be targeted traffic.
