You’re a multi-passionate aspiring entrepreneur who is determined to turn your dream of quitting your nine to five with a successful online business into a reality, and you’re super excited; why? You’re starting to create a business your passionate about. You’ve created a quit plan, developed a business idea, defined who you are serving, done target market research, and even started offering complimentary sessions to your ideal clients. It’s at this stage that my clients start to ask the most important question in business: How do you start making money in business?
As you’ve discovered it’s not as easy as build it and they will come. In my first business, I made a crucial mistake. I put all of my eggs in the same basket and created one source of income, but that’s a story for another time. What I didn’t understand was the importance of a product funnel in business and how it could help me make money, and ease the pressure that comes with only having one product.
What is a purchase funnel?
A purchase funnel is essential for monetising your serviced-based business and is one of my favourite ways to create cash flow because it promotes more than one viable stream of income. There’s something about putting all your eggs in one basket, especially in regards to business, that scares me. The sole purpose of a product funnel is to attract your dream clients to your website and build a strong relationship based on trust. When your dream clients know, like, and trust you they will come back and buy from you. A purchase funnel has a series of different types of services and products at various different levels. The reason for this is, not all of your dream clients will be ready to purchase your $5,000 VIP programme but they will be ready to buy something much cheaper.
In this blog post, I will discuss the four levels of products or services you can add to your purchase funnel along with real life examples and a tip for those of you who are just getting started and are feeling overwhelmed by all of this.
The first tier is a freebie and this is exactly what it sounds. Essentially it’s your email opt-in that allows you to capture emails from your dream clients who want your freebie and want to hear more from you in the future. I know this sounds super obvious, but your freebie needs to be aligned with all the other products and services in your sales funnel and needs to provide a solution to your dream clients biggest problem. The principle behind the purchase funnel is your dream client signs up for your freebie and realises it adds value to her life and brings your client closer to getting the results in life. This experience helps you dream client to trust you on a deeper level and more likely to buy a product or service from you based on the experience they had with your freebie. Your freebie could be a PDF workbook, report, video, audio, ebook, or a checklist. As I alluded to earlier, your freebie needs to be of high value and help your dream client to achieve a specific result.
The second tier is an entry level product or service like a very short online course, ebook, audiobook or an info-product such as a business plan workbook and template that I’m currently working on.
Ideally, this product needs to be inexpensive. I’m going to avoid suggesting prices because as an entrepreneur you need to price you products and services according to what feel is right for you and your business and not by what other industry professionals suggest or recommend. This is because you will be selling your services and products and therefore, you will need to be comfortable with the price because if you’re not this will be evident to your dream clients during your sales conversations.
Your entry level product maybe a condensed version of your signature process that you take your clients through, so they can achieve the results they desire. Unlike a one to one service or group programme, it lacks the personal service and the delivery of information in bite size chunks. An entry level product may only focus on a tiny portion of your signature process but still give your client a significant result.
The third tier is a mid-range product or service such as an in-depth online course, group programme, or a membership programme like as a mastermind group. These products or services usually cover your entire signature process but lack the personal touch and exclusive feel that comes with a one to one service or a high-end signature programme.
It’s at this stage of the buying process that your dream clients are trusting you and are starting to see you as a someone who can provide a solution to their biggest problem and get them the results they desire and they’re starting to see your mid-range products and services as less of an emotional and financial risk, but they’re still not ready to purchase a product or service in your fourth tier.
The fourth tier is an exclusive one to one VIP experience, VIP Intensive day, or a retreat. The services in this tier provide your dream clients with a level of exclusivity where they get your undivided attention in a way that’s different from all the other products and services in your funnel.
You don’t have to start with all if these types of products or services when you first start out. In fact, start with a one to one service and as you perfect your method add exclusive extras that will give your clients that VIP experience and then branch out with a mid-range product or service and then an entry level product or service. The reason why I give this advice is when you first start out the signature process or method that you take your clients through will need to be perfected. You’ll come up with quicker and more effective ways to get your clients the results they desire, and sometimes you’ll realise that a step in your signature process isn’t necessary. When you realise your signature process or method needs tweaking it’s much easier to tweak one product or service than an entire funnel.
- Over the next seven days, I want you to consider the types of products and services you want to include in your product funnel.
- Create a plan detailing when you are going to create and launch these products and services, make sure your plan answers these basic questions: What is your product or service? What problem will it solve for my ideal client? How much will it cost? When will I launch it?
- Choose one product to start out with.
As always, I have to ask; What products do you plan on creating for your business? Or perhaps you’re struggling to decide which product or service to start with; if so feel free to ask any questions in the comments section below. I want to hear your story. Let me know my leaving a comment below.
You owe it to yourself to stop dreaming and start creating a profitable online business.
Remember, how you spend your time in this world matters. So don’t waste your time in a job that you do not love, start working on your dream today.