In this post, I’m going to reveal exactly what a sales funnel is and why using them can help you convert more leads into loyal customers.

Mastering the art of a sales funnel can feel like trying to solve a puzzle with a million white pieces. From the overwhelming amount of advice to the technical talk that sounds like a foreign language, it’s easy to get lost in the details and feel like giving up before you even start.

But don’t worry, I’ve been there, and I understand the frustration of piecing it all together. 

That’s why this guide is packed with clear, straightforward advice and practical steps to take you from confusion to clarity. 

I’ll cut through the complexity, starting with the basics of what a sales funnel actually is, and why it’s a game-changer for your business. Then, I’ll walk you through creating your own funnel, show you real-world examples, talk about essential tools and much more…

So, get ready to transform your approach and see real results.

Let’s dive right in…

What is a sales funnel exactly and why does it matter?

A sales funnel is a strategic model that represents the journey potential customers go through, from their first interaction with your brand to making a purchase. 

But why does it matter?

The term “sales funnel” might sound complex, but it’s quite a simple concept at its core. 

Imagine a funnel, the kind you might use in the kitchen or garage. 

At the top, it’s wide, allowing a lot of something to enter. As it goes down, it narrows, filtering down to a focused endpoint. 

A sales funnel works much the same way but with potential customers. 

It starts with a large number of people who become aware of your product or service. 

As they move through different stages – learning more, showing interest, and deciding whether to buy – the crowd thins out. 

Only the most interested customers reach the bottom, making a purchase.

Think of a lemonade stand. 

You start by letting everyone in the neighborhood know you’re selling lemonade (awareness). As people walk by, some stop to see what you’re offering (interest). A few of them decide they’re thirsty and consider buying (decision). In the end, a handful will buy a glass (action).

Simple right?

To see success with funnels, it’s vital to begin with a clear definition of each stage in your specific sales funnel, as these can vary by industry and business model. 

Then, analyze your current customer journey, identifying any gaps or bottlenecks that might be causing potential customers to drop off. 

Implementing targeted strategies to address these issues can significantly improve your funnel’s efficiency.

The journey of your potential customer

Understanding the journey of your potential customer is like mapping the path they walk from awareness to purchase. 

Each step of this journey is a critical interaction point that can either advance them closer to a sale or lose them altogether. 

To execute this step successfully, visualize the customer journey as a series of questions and needs that evolve over time. 

Initially, a potential customer may seek basic information or solutions to a problem, which marks the awareness stage. 

As they move through the funnel, their questions become more specific, indicating deeper interest and consideration. 

Finally, the decision stage is where they compare options and make their purchase decision.

Ultimately, it’s essential to create content that addresses the customer’s needs at each stage.

For example, blog posts or social media content are great for raising awareness, while detailed product comparisons or demos can aid in the decision-making process. 

Tailoring your messaging and channels to fit the stage of the journey ensures that you meet your customers where they are, providing them with the information and reassurance they need to move forward.

Key components of a sales funnel

The key components of a sales funnel are essential to turning prospects into customers. 

They include the top of the funnel (TOFU, not the cheese), middle of the funnel (MOFU), and bottom of the funnel (BOFU). 

At the TOFU, the focus is on generating awareness and attracting as many leads as possible through content marketing, social media, and SEO strategies. 

Moving to the MOFU, the emphasis shifts to engaging these leads by demonstrating value and nurturing their interest through targeted emails, educational content, and more in-depth materials. 

Finally, the BOFU is where conversion happens, involving direct sales efforts, personalized offers, and calls-to-action that encourage the lead to make a purchase.

I know, it’s getting technical with acronyms and stuff, but I’ll explain everything in time, just keep on reading.

For now, know that it’s crucial to clearly define the objectives and strategies for each key funnel component. 

• TOFU, use broad-reaching content to capture attention. 
• MOFU, employ more detailed and specific content to build relationships and trust. 
• BOFU, focus on conversion optimization strategies that persuade the lead to take action. 

Just by following these “rules” you’ve created a seamless journey that guides potential customers through each stage of the funnel towards making a purchase.

The stages of a sales funnel explained

The top, middle, and bottom stages of a sales funnel has, for many years now, been going under its acronym – AIDA.

This model was brought to daylight in the late 19th century, and it has paved the way for almost every successful marketing campaign ever since.

But why is this model so successful?

Because it takes a prospect through the journey of making a purchase.

Guiding the prospect, step-by-step, the entire way from initial attraction to taking action.

The AIDA funnel stages are:

• Attraction
• Interest
• Desire
• Action

However, over the years evolution has taken this model to the next step.

Nowadays, you shouldn’t be surprised if you see an AIDA model that looks like this:

• Awareness
• Discovery
• Evaluation
• Engagement
• Commitment and purchase
• Loyalty and advocacy

This would be the ADEECPLA model for short and it’s a real tongue twister if you compare the two.

For now, we’ll stick with the original AIDA model since I think it’s easier to understand for a beginner.

But If you want to know more about this new, evolved model, I have the guide right here.

Awareness stage: Attracting prospects

The awareness stage is where the journey begins. 

At this initial stage, the goal is to reach out to as many potential customers as possible and introduce them to your brand or product. 

But how do you attract these prospects effectively? 

The key lies in leveraging a mix of engaging content, search engine optimization (SEO), social media marketing, and paid advertising to cast a wide net. 

By creating valuable and relevant content that addresses common questions or problems your target audience faces, you can draw them into your sales funnel.

How to see success at this stage:

Focus on understanding the pain points and interests of your target audience. 

Use this insight to craft content that resonates with them, whether it’s informative blog posts, eye-catching social media content, or compelling video tutorials. 

Remember, the aim here is not to sell, but to inform and attract. 

This approach helps build a foundation of trust and recognition, setting the stage for deeper engagement in the subsequent stages of the funnel.

Interest stage: Keeping them engaged

Once prospects are aware of your brand, the interest stage is crucial for keeping them engaged and interested in what you offer. 

This is the point where you deepen the relationship by providing more detailed information, showcasing your expertise, and demonstrating how your products or services can solve their specific problems. 

Email marketing, targeted content (such as e-books, webinars, and detailed guides), and personalized communication play vital roles here.

How to see success at this stage:

It’s important to segment your audience based on their interests and interactions with your brand. 

This allows for more personalized and relevant communication. 

For instance, sending targeted emails that address specific concerns or interests can significantly increase engagement. 

Moreover, offering valuable resources that require a minimal commitment, like signing up for a webinar or downloading a free guide, can help nurture these leads further down the funnel.

Decision stage: Nudging towards a purchase

The decision stage is where prospects are on the verge of making a purchase but might still be considering their options. 

At this critical juncture, your goal is to nudge them towards choosing your product or service over your competitors’. 

It’s about making a compelling case that what you offer is the best solution to their problem.

Detailed product comparisons, testimonials, case studies, and exclusive offers can play a significant role in influencing their decision.

How to see success at this stage:

Successfully executing this stage involves highlighting the unique benefits and features of your offerings, as well as the value they add. 

Providing clear, comparative information that helps prospects understand why your solution is superior is key. 

For example, creating side-by-side comparisons of your products with competitors’, showcasing customer success stories, or offering limited-time discounts can make your offering more attractive. 

It’s also a good time to address any lingering doubts or questions with FAQs or one-on-one consultations, ensuring the prospect feels confident in their decision to choose you.

Action stage: Conversion into customers

The action stage is the culmination of the sales funnel, where prospects finally make the decision to purchase and become customers. 

This stage is all about creating a smooth and frictionless path to conversion, ensuring that the process of purchasing is as easy and straightforward as possible. 

Key tactics include clear calls-to-action (CTAs), streamlined checkout processes, and multiple payment options. 

Additionally, providing immediate value through quick access to the purchased product or service can enhance the customer experience.

How to see success at this stage:

To execute this stage effectively, review and optimize your checkout process by eliminating unnecessary steps and asking for only essential information. 

Use clear and compelling CTAs that guide prospects to take the final step. 

Consider implementing chat support or FAQ sections to address last-minute questions or concerns in real-time. 

After the purchase, follow up with a thank you message, and consider offering a discount on future purchases to encourage loyalty. 

This not only helps in converting prospects into customers but also sets the stage for repeat business and referrals.

The AIDA model vs the value ladder model

So I just talked about the AIDA model, explaining how it works, but there is a contender at the other side of the octagon you need to know about.

This is the value ladder sales funnel model.

Even if you haven’t read my guide on the value ladder yet, I figured that a sneak peak of what it is could not hurt this guide. Plus, I’ll also show you when and why you should use either one.

Also, if you want an in-depth comparison between the two, I have just the guide for you right here.

Anyway, moving on…

What is the AIDA model?

Okay, this will be a quick repetition of the things you just learned about AIDA, just to freshen your memory.

The AIDA model stands for Attention, Interest, Desire, and Action, which outlines the process that businesses should guide potential customers through to convert them into loyal customers. 

Something we’ve already established, right?

It begins with capturing the attention of the target audience, then fostering their Interest in the product or service. 

Next, it aims to create a desire for the offering, differentiating it from competitors. 

Finally, it drives the customer towards taking an action, such as making a purchase.

The AIDA model is particularly effective in creating impactful marketing strategies and campaigns that capture and lead the customer’s journey from awareness to action.

To successfully implement the AIDA model, you must first grab attention through standout marketing tactics such as engaging content, eye-catching advertisements, or compelling social media posts. 

Then, maintain interest by providing value through informative content that addresses the audience’s needs and challenges. 

Building desire involves demonstrating the benefits and unique advantages of the offering, making it irresistible. 

The final step, action, should be facilitated by a straightforward and enticing call-to-action, encouraging the customer to make a purchase or engage with the brand further.

Great, by now I should be able to wake you in the middle of the night and ask you what AIDA is.

What is the value ladder model?

The value ladder model is a concept used in marketing to gradually increase the value (and price) of the products or services offered to customers over time. 

It starts with a low-cost or free offering to attract customers and then moves them up the ladder to higher-value and more expensive products or services. 

The idea is to build trust and demonstrate value at each step, encouraging customers to continue investing in more premium offerings. 

This model focuses on deepening relationships with customers by providing them with increasing value, aligning their needs with the business’s more comprehensive and higher-priced solutions.

Successfully implementing a value ladder involves carefully structuring your products or services so that each step offers distinct and increasing value, encouraging customers to ascend the ladder. 

Start with a compelling entry-level offer that solves an immediate problem for the customer. 

Then, introduce subsequent offerings that build on the value provided previously, ensuring that each step addresses more significant customer needs and desires. 

The key is to make each level of the ladder irresistible by clearly demonstrating the additional benefits and outcomes the customer will receive by moving to the next level.

Pretty neat system if you ask me.

AIDA vs the value ladder – Which is better and for what

When comparing the AIDA model and the value ladder model, it’s clear that each serves a distinct purpose in marketing and sales strategies, making one more suitable than the other depending on the business goals and customer journey.

The AIDA model is exceptionally effective in campaigns aiming to capture new customers or launch a new product. 

It’s designed to guide potential customers through the awareness and decision-making process systematically. 

It’s particularly useful for short-term campaigns focused on driving immediate actions, such as sales or sign-ups. 

If you’re looking to create impactful marketing messages that convert prospects into customers, AIDA offers a proven framework for structuring communications across various channels.

On the other hand, the value ladder model excels in building long-term customer relationships and maximizing customer lifetime value. 

It is ideal if you have a range of products or services at different price points. 

The value ladder encourages repeat business by offering customers increasingly valuable solutions as their trust and engagement with the brand grow. 

This model is particularly well-suited for service-based industries, subscription models, or any business aiming to upsell or cross-sell over time.

In essence, the choice between AIDA and the value ladder depends on the specific objectives of your marketing strategy. 

AIDA is better for driving immediate conversions and is often used in conjunction with direct response marketing tactics. 

The value ladder is more effective for customer retention and increasing the value of each customer over time through a series of progressively higher-value transactions.

What types of sales funnels are there?

It’s easy to think that there are only two or maybe three types of sales funnels…

And that’s perfectly fine, although it’s a bit limiting.

By expending your view past two to three, you’ll discover tons of funnel possibilities.

I did some research on this and it revealed that there are about 22 commonly used sales funnel types.

And that’s just counting the funnels people regularly use. If we add custom ones, then we can easily add 20 more to the list.

But the custom ones are hard to keep track of, so for now we’ll stick with 22.

These funnel types can be divided into four categories:

• Event funnels
• Buyers and sales funnels
• Lead funnels
• Other (you got me, I found a few commonly used “custom” funnels as well).

Okay, so which are the most used ones?

Well, I’m just going to mention a few, otherwise we’ll be here all day counting funnels:

• Lead magnet funnel
• Squeeze funnel
• Application funnel
• Sales letter funnel
• 2-step tripwire funnel
• Webinar funnel
• Product launch funnel
• Live demo funnel
• and there are 14 more to go…

Building your first sales funnel

I think that we’ve reached the point in time where it’s time for you to learn how to build a sales funnel and what tools and resources you need to pull it off.

Because what good is a sales funnel if you don’t know how to build one?

I’m going to be honest right away…

Below, I’ll do a quick and brief overview of how to build a sales funnel because I have a detailed guide on how to do this here.

So if you want all the steps to building funnels, then I highly recommend that you check that guide out…after you’re done with this one of course.

Step-by-step guide to building a basic funnel

Building your first sales funnel might seem daunting, but by breaking it down into manageable steps, you can create an effective pathway to convert prospects into customers. 

Here’s a simplified version that’ll to get you started:

#1: Define your target audience

If you only follow one piece of advice from this guide, it should be this one.

Because failing here will inevitably lead to a funnel that won’t convert at all.

Targeting and trying to sell to people that aren’t interested in what you offer, is like trying to empty the Atlantic ocean with a tea-spoon. 

Sure it can be done, but it will take a lifetime or two. 

So start by understanding who your ideal customers are, their needs, pain points, and where they spend their time online. 

This foundational step ensures your funnel is tailored to those most likely to benefit from your product or service.

#2: Create a lead magnet

Develop a compelling offer that attracts your target audience. 

This could be a free ebook, webinar, or trial that provides value and addresses a specific need or problem your audience faces.

The one thing to remember here is that even though you’re giving this away for free, make sure that it adds value to the prospect. 

A lead magnet that is useless, will not convince a lead that you have something that’s worth checking out.

See it like this…

You want a leads contact information, like an email address

That is of value to you because it gives you a channel to contact them about stuff in the future.

And to get something of value, you need to match that with an offer of equal value.

I’m not saying that you should give away $10K of stuff for an email address. But it should atleast have some value.

That’s why PDFs, books, guides, checklists and such are perfect lead magnets.

#3: Set up a landing page

I know we’re talking about sales funnels, but typically, to get people into your funnel, a landing page is needed.

This will serve as the gatekeeper into your funnel and main offers.

This is not always true however, sometimes you can present your main offer right away and that will work fine for some offers.

But using a landing page has a unique benefit. It’s a low entry barrier that provides you with a chance to grab some of those sweet email addresses.

So even if a lead drops out of your funnel, you can still reach out to them again and again.

You see the benefit?

So, design a good landing page that promotes your lead magnet.

This page should include a clear and enticing description of the lead magnet, benefits of claiming it, and a form to capture visitors’ contact information.

And just by accident, I have a guide on how to build landing pages right here, check it out if you want.

#4: Drive traffic to your landing page

Use various channels to promote your landing page and lead magnet. 

Consider things like this to get the traffic flowing and attract potential customers to your funnel:

• Content marketing (blogging, etc.) 
• paid advertising (advanced)
• Social media 
• Email marketing campaigns 

If you need more help with traffic, then you’ll love this guide!

#5: Nurture leads with email marketing: 

Once someone opts in to receive your lead magnet, follow up with a series of targeted emails. 

These emails should provide additional value, establish your expertise, and gently guide subscribers towards making a purchase.

You’re basically ascending your leads down the funnel, bringing them closer to a purchase.

And if someone drops out, it’s easy to get them back to your funnel over email. Compared to warming up a cold lead to your brand, reaching out to a subscriber is easy.

This is why I (and many others) highly recommend that you start building email lists from day one.

They’re an invaluable resource to have in any business.

#6: Present your offer

After nurturing your leads, it’s time to present your core offer. 

Make sure it’s well-aligned with the needs and interests of your audience, clearly explaining how it solves their problem or enhances their situation.

Remember, your offer must provide value to make sense for a potential customer. 

And when it comes to pricing, an old mentor of mine said: “It’s better to over deliver for the price you’re asking”. If you sell something for $100, give value that others would charge $200 for or more. 

This makes your offer a no-brainer, which makes it irresistible.

#7: Optimize and test 

Continuously analyze the performance of your funnel and make adjustments where necessary.

Use A/B testing to try different approaches, especially on your landing pages and in your email marketing, to see what resonates best with your audience.

Executing each step with care and attention to detail can set the foundation for a sales funnel that effectively converts visitors into loyal, recurring customers.

Essential funnel tools and resources for beginners

Creating a sales funnel can be a streamlined process with the right tools and resources, especially for beginners. 

Two platforms I highly recommend and that are on the opposite range of the price spectrum are ClickFunnels and System.io.

These two along with other useful tools that cater to various aspects of building and optimizing your sales funnel.

ClickFunnels is a popular choice for entrepreneurs and marketers looking to build sales funnels without extensive technical knowledge. It offers a drag-and-drop interface for creating landing pages, opt-in forms, and even entire sales sequences. ClickFunnels also includes A/B testing capabilities, email integrations, and a host of templates to get you started quickly.

Systeme.io is another all-in-one platform that enables you to build sales funnels, along with managing email campaigns, automating workflows, and hosting courses. Its user-friendly interface is great for beginners, offering a comprehensive suite of tools to launch and scale an online business efficiently.

But there are more tools to explore, and I’ve gathered what I believe are the best ones here.

In addition to the two mentioned above, consider exploring these tools:

• Mailchimp or ActiveCampaign for email marketing. Both platforms offer automation features that allow you to nurture leads through personalized email sequences.
• Google Analytics for tracking funnel performance. Understanding where your visitors come from and how they interact with your funnel is crucial for optimization.
• Canva for creating visually appealing content and graphics for your landing pages and email campaigns, even if you don’t have graphic design skills.
• Hotjar for understanding user behavior on your landing page through heatmaps and recordings. This insight is invaluable for optimizing page layouts and calls-to-action.

For beginners, using simple yet powerful tools like this can significantly reduce the complexity of building a sales funnel. 

Optimizing your sales funnel for maximum conversion

You probably decided to use sales funnels for one really good reason. 

To maximize the revenue your business makes.

But just hacking together a sales funnel in 5 minutes and throwing some ads at it isn’t going to yield the best results.

You’ll get results, but no way near the best ones imaginable.

To get that you need to optimize your funnel for maximum conversions and ROI.

Tools and strategies for each stage

Optimizing a sales funnel requires a blend of the right tools and strategies tailored to each stage of the customer journey. 

For the awareness stage, tools like Google Analytics and social media analytics platforms can help you understand how prospects discover your brand. 

Content management systems and SEO tools such as SEMrush or Ahrefs are essential for creating and optimizing content that attracts visitors.

During the interest and decision stages, email marketing platforms like Mailchimp or automation tools like HubSpot can nurture leads by providing personalized content and offers.

Finally, for the action stage, conversion rate optimization (CRO) tools like Optimizely or Hotjar can help fine-tune your website and checkout process to increase conversions.

Strategically, it’s crucial to tailor your approach to each funnel stage. 

For example, utilize targeted content marketing and SEO for awareness, deploy automated email nurturing campaigns for interest and decision, and focus on CRO tactics like A/B testing and user feedback for the action stage.

By aligning the appropriate tools and strategies with each stage, you can more effectively guide prospects towards making a purchase.

Measuring and analyzing funnel performance

To ensure your sales funnel is performing optimally, regular measurement and analysis are critical. 

This involves tracking key performance indicators (KPIs) such as website traffic, conversion rates, average order value, and customer lifetime value at each stage of the funnel. 

Tools like Google Analytics offer comprehensive insights into traffic sources and user behavior, while CRM software can track conversions and sales. 

Additionally, A/B testing platforms provide data on which variations of your web pages perform best, allowing for data-driven optimizations.

Analyzing funnel performance means looking beyond surface-level metrics to understand the why behind the numbers. 

For instance, if the conversion rate from the interest to the decision stage is low, it may indicate that your content is not effectively addressing customer concerns or that your offers aren’t compelling enough. 

Regularly reviewing these metrics and conducting customer feedback surveys can reveal areas for improvement and help refine your funnel strategy over time.

Common pitfalls and how to avoid them

In optimizing sales funnels, you often encounter common pitfalls such as neglecting the top of the funnel, failing to nurture leads, or ignoring funnel leakage. 

Neglecting TOFU activities can result in a lack of new leads entering the funnel, while inadequate nurturing may cause prospects to lose interest before reaching the BOFU. 

Funnel leakage, where potential customers drop out before conversion, can often be attributed to a complex checkout process or unclear value proposition.

To avoid these pitfalls, ensure your marketing efforts are balanced across all funnel stages, from attracting new leads to converting them into customers. 

Implement lead nurturing programs that engage prospects at each stage with relevant content and offers. Also, regularly review and streamline your conversion paths to minimize obstacles and friction points. 

Paying attention to customer feedback and conducting exit surveys can also provide insights into why prospects might be leaving your funnel prematurely.

Niches and industries using sales funnels

It would be easy to think that only people working with sales are using sales funnels…

I mean, it’s right there in the name.

But that’s not the case, and that’s what’s so good with funnels, they’re not limited to one specific niche or industry.

They’re infinitely adjustable to suit a bunch of unique scenarios.

If you want an effective system from generation leads, sales, or whatever it might be, you can use some sort of funnel.

And to prove this to you, I’ve put together a list of niches and industries that can use funnels to their advantage:

• Agencies
• Freelancers
• People working with info products
• E-commerce
• Coaching and consulting businesses
• Photographers
• Network marketers
• Local businesses
• B2B businesses
• Non profit industries
• People working with startups
• Bloggers
• Affiliate marketers
• and the list goes on…

As you can clearly see, sales funnels are not limited to one specific industry or niche.

So chances are that you too can benefit from adding a funnel or two to your business.

But, I have a feeling that you want more proof…

I bet you’re thinking something like this right now…

“Pfff, everyone uses a sales funnel, yeah right, how come I’ve never seen one?”.

To quickly answer that, it’s because sales funnels can be both unintentional and intentional.

And because of this, you’d be surprised how many people there are saying they’ve never seen a sales funnel before in their life…

But they are dead wrong, I promise.

Here are some examples of real life businesses that you’ve probably heard of that have seen great success thanks to a funnel of some sort

Netflix

Netflix is using lead generation funnels to sell their service.

And I bet that you’ve heard of them once or twice, or maybe you’ve even gone through this funnel yourself in the past.

No matter your relationship to Netflix, this lead generation funnel pushes visitors to enter their email address on the homepage in order to start using their streaming service.

The clever thing about this automated funnel is that if leave the site without getting on a paid plan, they will remarket to you over email to show you the benefits of their service.

And all of it happens automatically with an advanced email system that targets people at different stages of the funnel.

Motortrend on demand

This wouldn’t be an article written by yours truly if I didn’t include some car stuff…right?

Motortrend offers tons of free content on their site, but if you want to watch the hit shows, live events and all those kinds of sweet stuff, you need to enter an email address.

Basically they’re using a lead generation funnel as a gateway into a a membership funnel.

And they offer a 7-day free trial to the members exclusive products as bait to get people to join.

This way you can try out their streaming services and exclusive content before you spend a dime.

It’s similar to Netflix.

But unlike Netflix Motortrend offers tons of free content in form of articles and videos to prove their value. Plus they have a free trial period, so you don’t have to commit to a subscription right away.

Spotify

Spotify uses a simple membership funnel to acquire more paying customers.

And it uses the free version as bait.

It’s a very simple concept:

• Spotify free: where you can listen to your music and podcast for free, but with ads every once in a while.
• Spotify Premium: where you can enjoy the platform completely ad free.

As you probably can understand by now, the free alternative is pretty much a lead magnet for the premium membership.

This seems to be an effective sales system since Spotify generated €13.24 billion revenue in 2023, a 12.9% increase year-on-year.

Their marketing strategy is as effective as it’s annoying, and they’re pushing hard to get people on the premium plan.

On the free plan you get:

• 30 minutes of ad-free music if you don’t skip songs.
• If you skip a lot, there will be more ads, it also seems like ad delivery is based on time-of-day, with more ads being served during p”popular” hours.
• Only skip forward in your playlist (on mobile).
• You can only skip 5 songs in a row before you get into a cooldown period.

If you’re a heavy music listener, then the above things get annoying pretty fast.

And this simple sales funnel works so well because they’re offering you a way to listen to music on YOUR terms, giving you the ultimate user experience.

No more ads, skip whatever songs you want as many times as you want…

Complete freedom (*cough* for only $9.99/month *cough*).

Ikea

Ikea’s online sales funnel is actually very simple.

Once you land on the homepage, you’re met with very few options. Either read a few well selected articles or go shopping.

It doesn’t bombard new visitors with tons of visuals or a massive collection of new arrivals.

It guides you to the shopping part of the site.

Even the selected articles will lead to the store, so they work hard on getting you to do what they want (with as few distractions as possible).

But Ikea has a trick up its sleeve.

They have a live version of their funnel, and if you’ve been to Ikea at some point, you know what I’m talking about.

If not, you should plan a trip and check out the funnel in person (and maybe pick up a Igelstorp while you’re at it).

Ikea’s in-store sales funnel takes the visitors on an adventure. The store has rooms that not only gives you styling ideas, but showcases the latest items and upsell its products.

And it’s easy to think that these rooms are randomly placed, but no, you’d be very wrong.

A person with trippel my annual income has carefully designed these room to be as desirable as possible.

Literally everything inside Ikea is strategically placed to draw your eyes towards products you’d never thought you’d needed until you saw it in the right environment.

So even if you went there to buy a Sandberg, you’ll probably check out the Ulriksberg because you just happen to stumble upon it.

I highly recommend that you visit the store if you want to experience a live action funnel.

This system they use isn’t for everyone, I for once, don’t like being trapped in a maze of furniture for hours on end.

Dean Graziosi

If you don’t know who Dean Graziosi is then here’s a quick rundown, he’s a:

• Successful author
• Inventor
• Entrepreneur
• And frequent user of the sales funnel.

He uses funnels to sell his books, training, the Mastermind, and even for the coaching part of his business.

Just by looking at the first page of Dean’s site, you can see a variety of funnels.

Here are the ones I found (from top to bottom on the homepage):

1. Application funnel to hire him to speak at your event or coach your business.
2. Lead generation membership funnel for the free ‘Better Life Challenge’.
3. 2-Step tripwire funnels for his books.
4. Webinar funnel for ‘Live With Dean Graziosi.
5. Membership funnel for the ‘Mastermind’.
6. Sales funnel for the ‘Accelerated Success Formula’ course.
7. Membership funnel for the ‘Inner Circle’.

I think it’s only fair to say that Dean likes his funnels and I bet that there are more lurking around in the background, not jut the ones on the homepage.

HBO

HBO makes it very easy…

You’re dropped on the doorstep of the sales letter page of their membership funnel as soon as you land on the site.

No hiding behind menus or advanced jargon, it’s just chilling there in the spotlight.

The sales page is very simple, and highlights the benefits and features of the HBO media streaming service.

And you don’t get many options on what you can do…

You can either:

• Register for the monthly membership plan
• Get on the annual plan
• Read the FAQ

This is what makes this funnel so effective, they leave the visitors with one decision to make…

Leave the page entirely or get on one of the plans and start watching your favorite shows.

Simple, effective, and well…proven to work.

Examples of why sales funnels work so well

Okay, it’s time to pop the hood on a few of these funnels to really understand why they work so well.

The “fast food chain” funnel

Fast food chains love funnels, and they’re very good at hiding them in plain sight.

And yes, it’s true, even McDonald’s use funnels as a strategy to sell more.

But how do they do it, since most of us never notice it.

Here’s how the clever McDonald’s funnels work:

• If you order chicken nuggets, you’re asked if you want fries with that (that’s an upsell).
• Order a hamburger and you’re asked if you want to add cheese, dip, and a large soda (that’s three upsells in a row).
• Order a combo meal and you’re given the chance to make it a “supersize” (that’s an upsell) and if you say no, you’ll be asked if you want a dip sauce (that’s a downsell).

See how clever this is.

Every offer is in reality a series of offers designed to increase the size of the purchase you make.

Why the fast food funnels work so well

The concept behind these types of funnels is just as scary as they are clever:

Believe it or not, but chains like McDonald’s, barely break even on the frontend offers.

Most of the money they make comes from upsells on the backend.

This works so well because they’re simply offering you the next relatable thing you might want, connecting offers like never before.

What is this if not a value ladder in action.

They get you hooked and into the funnel by using low priced food, then they make the REAL money on all the addons you want with your meal.

Of course you’ll say yes to a large soda for $1 when ordering a burger, it makes sense to take that offer.

And since you were getting a soda anyway, and a big soda costs $3 on its own – you save money on this offer, which makes it a no-brainer.

Say the large soda costs McDonald’s $0.15, then you could argue and say that they would make more profit by selling it for $3.

However, it’s much harder to sell soda at that price.

So why not offer their customers a $2 discount with every burger, and sell more.

By doing this McDonald’s sells more large sodas, because we as customers feel like we get more value for our money.

The key to their strategy is VOLUME.

And it’s obviously working pretty well, don’t you think.

The “video game” funnel

Yes, even video game companies have begun using funnels to make even more money.

*Sigh* I miss the times when you could buy a video game and just play it…

These funnels are not your typical funnel and they belong to the “custom funnel” category.

But this doesn’t mean they are any worse…

Oh no, these are insanely good.

Here’s how they work:

1. They drop the prices on the games so you can buy them for cheap.
2. To get the most out of the game and make it even more fun, they offer you a gazillion cheap in-game One-Time-Offers.

That’s the gist of it.

It’s a far-fetched variation of the value ladder, and it provides the user with the option to upgrade and customize the game to their liking.

The shocking part is that this works so well that almost all games made today (2024) are based on in-game purchases.

And these purchases stand for a massiva part of the game developers revenue.

The Idea behind the gamer funnels

These funnels are really clever and make the video game companies a crapton of money.

And the concept behind this is super clever and very well thought out.

Developing a video game costs thousands if not millions, and the companies need a way to make their invested money back.

Let’s be honest, they want profit right now!

The small elephant in the room is that there is a cap to how much you can charge for a video game up-front.

Which means that as games get more expensive and advanced to develop, the higher the retail price will be, to a point.

They can’t charge a wide audience $150/game, only die-hard fans will by a game at that price.

So the only way to keep sales up and make a profit is to target a broader audience with a lower price.

So they developed this 2-step sales machine.

Instead of selling the game for $150, they sell it for $25 to reach more gamers.

Sure, this is a massive loss, but herein lies the clever part…

In-game purchases!

Once the player starts playing, the offers will start rolling in, upsell, after upsell, after upsell.

Giving the player the option to customize and upgrade the game on the fly.

Unlocking new maps, weapons, tracks, skins, you name it…

And all of these upgrades are cheap, in the $5 – $10 range, which means that many will buy them.

So when the fun starts to fizzle out, you can upgrade the game to get hours of more fun.

I’ve done this exact thing with Rocksmith when it was released to PS3. I bought tracks and songs for more than the actual game retail price.

I would never have bought the game form $100, but spending $100 on a $50 game was justified.

The book funnel

Another example of a sales funnel that converts really well is the “book funnel”.

Just so you know, a “book funnel” is almost always based on the 2-step tripwire funnel.

Anyway…

I’ve decided to use the funnel for the book ‘Traffic Secrets’ by Russell Brunson in this example, just because it’s a perfect example of the value ladder in action. (If you don’t know who Russell is, he is the co-founder of the ClickFunnels software).

Here’s how this funnel is structured:

• First you have a free + shipping offer: This step is only there to get people into the funnel. In this example it’s the ‘Traffic Secrets’ book at $9.95. The clever thing here is that he gives you the book for free, all you need to do is cover the shipping cost.
• At the next step you have order bump #1: Here he offers you the audio version of the book for $37.
• Next you’ll see order bump #2: This one is for the 2-day ‘Traffic Secrets Live Event’ at $97.
• Then you have OTO #1: Here you’re offered you the ‘Funnel U’ members area for $147.
• Then there is OTO #2: This is an offer for the ‘Funnel Accelerator Action Pack’, priced $297.
• And lastly there is OTO #3: Lastly you’re offered the ‘Ultimate Marketing Video Toolkit’ for $197.

And here is the funnel in image format:

Why the “book funnel” work so well

As you can see, this type of funnel is the perfect practical example of the value ladder.

And if you can’t see it yet, let me explain.

He starts with an irresistible frontend offer, where he practically gives you the book for free (you only cover shipping).

This makes it a no-brainer, because if you were to buy the book on Amazon it’s over $20, so you save a bunch of money.

The next relatable thing offered is the audio book. And since audiobooks has grown massively in popularity, many people want this option.

If the customers buy this they can listen whenever and wherever they want. Because sitting in a chair, reading is far too old school and mainstream.

So the offer makes sense, and so do the price increase

Then he offers you a ticket at the live event so you can learn even more, adding more value.

Next there’s an offer for a members area, which is all about mastering the ‘3 core’ funnels.

And it goes on in this fashion, and since Russell know that taking action is hard, a coaching offer will be next in line.

Did you notice the price drop at the end of this funnel?

That doesn’t make sense right, the value ladders explicitly state that the last offer should be the most expensive.

Well…not always…

It’s a “mind trick” where you’ve given so much value already for so many steps, meaning that this must be equally as valuable even if it’s for a lower price.

This value increase combined with a sudden price drop make it a no-brainer offer almost everyone will get.

Notice that this price drop strategy is always at the end of a funnel, and the only customers who’ll see it is the ones that “want it all”.

Sales funnels in the digital age

The digitalization of the entire business sector is affecting funnels as well. 

And you need to adapt as well if you want to be on top of the game for many years to come.

So here are a few of my future predictions that’s happening right now and that I predict will come soon.

The impact of social media on sales funnels

Is this a new thing, no, but it’s an ever evolving area of reaching both existing and new audiences.

And social media has dramatically transformed sales funnels by providing new ways to attract, engage, and convert customers.

Platforms like Facebook, Instagram, and LinkedIn allow businesses to reach a vast audience with targeted content, ads, and interactions. 

Social media not only increases the top-of-the-funnel awareness but also facilitates deeper connections through direct engagement and community building. 

By leveraging social listening tools and analytics, businesses can gain insights into customer preferences, behaviors, and feedback, allowing for more tailored marketing strategies.

To maximize the impact of social media on your sales funnel, create platform-specific content that resonates with your target audience, and use social media ads to target prospects based on detailed demographic and behavioral data. 

Or if you want organic traffic, why not add a link to your funnel in the bio of your social profiles.

Social media also opens the door to easily engage with followers through comments, direct messages, and interactive content to build relationships and guide them through the funnel. 

Additionally, integrating social proof like customer testimonials and reviews into your social media strategy can significantly enhance trust and credibility, encouraging more conversions.

Using AI and automation in your funnels

AI and automation technologies have revolutionized both how we build sales funnels as well as how we optimize them.

The door to more efficient, personalized, and data-driven funnels are now open.

AI can analyze vast amounts of data to identify patterns and insights, helping businesses predict customer behavior and optimize their marketing strategies accordingly. 

Automation tools like Salesforce can help streamline repetitive tasks, such as email marketing, lead scoring, and customer segmentation, allowing for more consistent and timely interactions with prospects.

AI writing tools like Writesonic can help you with everything from sales copywriting to crafting catchy email headlines and everything in between. Whatever content needs you have, there is an AI tool that can help you create it.

To leverage AI and automation effectively in your sales funnel, utilize AI-powered CRM systems for better lead management and scoring. 

Implement chatbots, like ChatSonic, on your website and social media channels to provide instant customer service and guide users through the buying process. 

Use automated email sequences tailored to customer behaviors and preferences to nurture leads at scale. 

These technologies not only improve efficiency but also enhance the customer experience by providing timely, relevant, and personalized interactions.

And when it comes to mastering the AI provered content part of your sales machine, I can highly recommend my AI for business hub.

It’s packed with interesting and actionable guides on how-to use AI in your business.

Personalization: The key to modern a sales funnel

In today’s digital age, personalization is not just a luxury – it’s a necessity for effective sales funnels. 

And my predictions are that AI will play a big role in this in the near future.

Why?

Customers expect interactions with brands to be relevant to their interests, needs, and behaviors. 

Personalization can significantly improve conversion rates by making marketing messages more resonant and engaging. 

By collecting and analyzing customer data, businesses can tailor their content, offers, and communications to meet the unique preferences of each prospect.

Implementing personalization across your sales funnel involves using data analytics to segment your audience and tailor your marketing efforts accordingly. 

Personalize website content, email marketing, and social media ads based on user behavior and preferences. 

Utilize recommendation engines to suggest products or content that match the customer’s interests. 

Remember, the goal of personalization is to make each customer feel understood and valued, thereby increasing their likelihood of moving through the funnel to purchase.

Keeping up with sales funnel trends in 2024

If you want to stay competitive with your funnel hacking, knowing what’s “hot” and adapting is key.

Not only does a bit of interest in what you’re doing help a lot, but it also helps you to stay competitive and ahead of the curve.

So here are some things to keep your eye on according to…well…me:

Emerging technologies and their impact

As we move through 2024, new technologies continue to reshape the landscape of sales funnels, offering new ways to enhance efficiency and personalize customer experiences. 

Artificial intelligence (AI) and machine learning (ML) are at the forefront, helping with sales copy and data analysis to predict consumer behavior and automate personalized marketing messages.

Voice search optimization is becoming crucial as more consumers use voice-activated devices for internet searches, requiring marketers to adapt their content strategies. 

According to this studio from Neil Patel, voice search is going to be the next hot thing to optimize for.

Additionally, augmented reality (AR) and virtual reality (VR) are starting to play a role in immersive marketing, offering unique ways to engage customers and provide them with virtual product experiences.

Think of movies like: Free Guy and Ready Player One.

To leverage these technologies, it’s essential to stay informed about the latest developments and understand how they can be integrated into your sales funnel. 

For instance, you can use AI to create a variety of sales copy as well as use it for campaign research and data analysis.

AR and VR can create engaging product demos that enhance the online shopping experience.

Adapting to these and more “hot” things not only helps in creating a more personalized and engaging customer journey but also positions your business as a forward-thinking leader in your industry.

Adapting to changing consumer behaviors

In 2024, adapting to changing consumer behaviors is critical for the success of sales funnels.

With the digital landscape evolving rapidly, consumers are becoming more informed and expecting highly personalized experiences. 

They prefer brands that understand their needs and communicate with them on a personal level across multiple channels. 

Sustainability and ethical business practices are also becoming significant factors in purchasing decisions.

To adapt to these changes, you need to employ a customer-centric approach in your sales funnels. 

This involves using data analytics to gain deep insights into customer preferences and behaviors, and tailoring marketing messages accordingly. 

Engaging with customers on social media, providing omnichannel support, and demonstrating your brand’s commitment to sustainability and ethics can also enhance trust and loyalty. 

Listening to customer feedback and being agile in implementing changes based on their needs and preferences are key to staying relevant in a rapidly changing market.

Staying ahead: Continuous learning and improvement

The key to keeping up with sales funnel trends in 2024 is continuous learning and improvement.

Boring answer, I know…

The digital marketing world is ever-changing, with new tools, strategies, and consumer expectations emerging regularly. 

Staying informed about the latest trends, attending industry conferences, participating in webinars, and learning from thought leaders can provide you with fresh insights and ideas.

Implementing a culture of experimentation and testing within your organization is also something I recommend.

Regularly reviewing your sales funnel’s performance, conducting A/B tests, and being open to trying new strategies can help you discover what works best for your audience. 

Conclusion

Thanks to this comprehensive beginner’s guide, the confusion surrounding sales funnels is a thing of the past.

You now have a solid foundation, all in one place, to start creating and optimizing your own sales funnel.

As we’ve explored, understanding and implementing a sales funnel is crucial for any business looking to thrive in the digital age.

It’s not just about making sales; it’s about building relationships, understanding your customers, and guiding them through their journey with your brand.

Mastering this process can significantly elevate your marketing strategy and, ultimately, your business’s success.

Now, armed with the knowledge and steps outlined in this guide, you’re well-prepared to start your funnel hacking career.

Now I’d like to hear from you:

Did this guide help you wrap your head around sales funnels?

Or do you still have questions in need of answers?

Either way, let me know by leaving a comment below right now.