This funnel is key to making an online business self-sustaining.
It can help you break even on any paid traffic you might be using (Facebook ads for example), but it also helps you monetize and even profit from cold traffic who might come into your funnel.
This funnel revolves around something called a "Tripwire," also called an introductory offer.
What is an introductory offer or a "tripwire"?
It is a low-cost item that has VERY high perceived value but offered at "no-brainer" price. Generally under the $97 mark.
Its goal is to turn your lead into a customer as SOON as possible.
- The tripwire is your chance to wow your customer and create a great impression. The idea is to get them thinking that if this offer was so good and only $47 (for example), then your higher priced items must be REALLY good.
- It also helps you break even on the front end of your funnel if you're sending paid traffic (Facebook ads) to your funnel. And, if you are a ninja and keep working at it, you can even profit from your paid traffic on the front end.
The anatomy of the funnel:
How it works:
Traffic from any source is sent to one of your lead magnets. This can be Facebook Ads, this can be social media posts, Google search or any way that people find your lead magnet. Once they opt-in by entering their email address in exchange for your lead magnet, they have entered your funnel.
Now that they have opted-in, you can make your introductory offer (right on the thank you page). This offer should be below the $97 mark and needs to be something that is perceived as HIGHLY desirable and a great value. A Facebook Ads specialist could offer a Crash Course in Facebook Ads, a Brand Strategist could provide a branding kit. The idea is that it is as close to a "no-brainer", impulse buy as possible.
If they choose to purchase it on the spot, they are either sent into your regular nurture sequence (and should eventually be exposed to your core offer (learn how this all works buy downloading your guide: How To Profit From Your Facebook Ads). And if they don't choose to purchase, they are put into your nurture + sales sequence which reminds them to take action on the offer they were just shown, but over a 5-7 day build up.
Key Metrics To Track
Ok, now this is where some business owners get a bit antsy. But knowing your numbers and your key metrics is CRITICAL to the health of your business.
Here are 4 metrics you need to pay attention to (or hire someone like me to pay attention to).
The amount of people that are being sent to your lead magnet. You need to know this number to calculate the other key metrics.
2. Lead Conversion Rate:
This is the percentage of people who end up opting in to get your lead magnet. You want this to be at least 20%, and is calculate by dividing the number of people who opt-in by the number of people (or traffic) that have visited your lead magnet. SO, as an example, if 30 people opted in, and you had 100 visitors, then your lead conversion rate is 30/100 or 30%.
3. Intro Offer Conversion Rate:
This is the number of people who BUY your introductory offer out of the number of people who were shown the offer. So let's say 5 people purchased and 100 people saw the offer, then your intro offer conversion rate is 5%. You want this number to be AT LEAST 1%. This means you're on to something, but that you could probably make some improvements. And if you do it right, and you have really created an impossible to deny offer, then you can see conversion rates all the way up to 10%.
4. The Average Cart Value:
This is a bit of an advanced metric, so if you've already have enough, you can ignore this. BUT this is where things get fun, so keep reading if you're so inclined.
So once you have your introductory offer in place, and it's converting well, you can try to increase the average amount of money your traffic purchases by adding things like upsells and downsells.
Why does this matter? Let's look at the math.
- Let's say 1,000 enter into your funnel, and 2% buy (20 people)
- And your intro offer is priced at $97, then you've made $1,940 on the front end of your funnel (what?!.... isn't that nifty?!).
- Now let's say that you offer a $37 upsell and half of those people say yes, you've now brought in a total of $2,310.
- So now, for every 1,000 people into your funnel, your average cart value is $2.31.
- Now let's say that you spent $2 a lead or $2,000 to get those 1,000 people. Not only have you paid for your ad spend (A.K.A getting quality leads for FREE on autopilot), but you've now brought in an additional $310 ON TOP of that and you haven't even tried to sell them one of your core services or offers.
You're basically getting PAID to bring people into you funnel? CRAZY powerful, right?
So tell me, what are your "aha" moments? Pop them in the comments below!
Learn How To Profit From Your Facebook Ads
Don't run a campaign without this