What are Profit Funnels

Also know as a "marketing funnel" profit funnels are a way for a business to gain new clients in a much more efficient and profitable manner then pure advertising. A profit funnel is a way to leverage advertising and marketing efforts, and in some cases a way to build an incredible business without having to compete head to head with your competition.

A profit funnel is especially useful for businesses that have high-ticket items or services, or a business that has a lot of different products that they can continue to sell to customers for a long period of time.

We can all agree that it is much easier to sell something for $9.95, $29.95, etc vs. something that is several hundred or even several thousand dollars, right? It is also much easier to sell something to someone who you already have a relationship with as well.

This is the REAL concept behind a profit funnel - a pathway to building a relationship with your clients. It begins with an initial, usually low cost or free item or "hook" to bring your client into your funnel.

Once that initial relationship is established, you build on that relationship by evaluating the needs of your client and identify additional goods or services that will benefit or be of interest to your customer.

Follow up, whether by email, direct mail, phone, etc is the key to a successful profit funnel. Once you have a customer on any level, you want to keep in contact with them. This is critical. It is also important to realize that every time you contact them you are not asking for money or trying to "sell" them.

Sometimes you just want to give them a tip, or a thank you, etc. Other times you will let them know of your additional product or service offerings that may be of interest.

Don't worry about making a huge profit off that first sale. Just get the sale and make sure you deliver what you promise. Your reputation and your future opportunities with that client rest on providing them with a quality product/service as much as it does a price they are happy with.

1. Offline Service Business - offer a free or gimmick low price estimate or evaluation. Important - do not try to scam or hard sell them on the up sell if you do this. Give them your honest evaluation, their options, and leave it at that. Then you should be contacting them in follow up by some means. They are now in your funnel, take good care.

2. Product sales. This is where a "loss leader' or low cost related item comes in. You sell a low cost item to get your foot in the door. Sometimes you even take a loss just to get a customer in your funnel. It decreases advertising expense and increases response rate.

3. Online services and software - offer a free trial of the software or a free month of membership. Then deliver high quality service and value.

The concept of profit funnels provide a common sense approach to selling. You start at an introductory point and continue to build on that success. However, get the idea that you take one company, product, service through the funnel and you are done with funnels. You can use the profit funnel to create new contacts within an existing client, perhaps at different locations or different departments.

In the end, you are in complete control of developing your custom, ideal profit strategy. No matter what your product or service offerings, chances are you can use a profit funnel to expand sales and grow your business

You will find it an excellent tool for helping you to stay on track as you reach for your goals.

Don't over complicate the process. If you have questions or need help, feel free to post comments or questions above!