That’s a very good question. And knowing the answer to this question can make or break your business.
You see, a lot of information marketers just create products randomly. They get an idea, they create the product, they promote it. They get another idea, they create a product, they promote it. And they keep doing this with no rhyme or reason.
If you want to make a lot of money with your business, then you need to create a sales funnel. This is where you create a suite of highly related products to sell to your prospects and customers. This funnel will include a variety of products and services at different price points, from low-priced products to turn prospects into customers, all the way to premium priced products.
Here are examples of the sorts of products you might include in your sales funnel:
- Ebooks and reports
- Access to live events (online and offline)
- Mind maps
- Cheat sheets
- Planners and calendars
- Membership sites
- Home study courses
- Software and apps
And here are examples of where you might place these products in your sales funnel:
- Lead magnets. These are high-value products that you offer for free on the frontend to build your mailing list.
- Tripwire products. These are high-value products that you offer for a low price to quickly turn your prospects into cash-paying customers.
- Core offer. This is your main offer – your flagship products. Typically this is a premium product with a premium price tag ($97 or more).
- Bonus products. These are products you offer for free to people who purchase your tripwire product, core offer or other products. These products are designed to boost your conversion rates on paid products.
- Upsells and cross sells. These are products that you offer during the ordering process to increase the value of each transaction.
- Backend sells. These are products you offer to your existing customers. You can do this on your order confirmation page, in your thank-you email, in follow up emails, within your membership site, within your products, etc.
While you may have a very linear idea in mind as far as your sales funnel goes, that doesn’t mean that you can’t cross-promote products all through your sales funnel. For example, some of your backend products might also work as great low-priced introductory products to get people into your sales funnel.
Now let me give you a specific example of what a $100,000 sales funnel might look like:
Free lead magnet.
$10 tripwire product.
$97 membership site.
$147 upgraded membership.
$197 coaching offer on the backend.
Variety of products on the backend, ranging from $10 reports to $500 home study courses.
Now imagine this happens in one year:
2000 people take advantage of your tripwire product X $10 = $20,000
300 of these people purchase your $97 membership site X $97 = $29,100
200 of your customers opt for the upgraded membership X $147 = $29,400
100 people take advantage of the $197 coaching offer = $19,700
200 people purchase an average of an additional $50 worth of backend products = $10,000
Total = $108,200
That’s a six figure sales funnel, and some of the conversion numbers are a bit on the conservative side. And that’s just ONE way to do it. Truth is, you can get to that six figures in a lot of different ways.