Structuring Your Business
Think of your business as a pyramid or a funnel where one end is big, and it gradually becomes smaller as we travel from one end to another. Now I don’t care how you’re organizing or picturing this in your mind’s eye, but the key here is to just imagine one end as big and the other end as small.
Okay, got it? Great. Let’s move on then.
On the bottom of your pyramid or maybe the top of your funnel, wherever the large end is, this is where most of the people are going to be exposed to us and what we do. These are the masses of the people who are going to kind up bump up against us and take a little look to see who we are or what we do. Perhaps these are the people who see us in our advertising or marketing efforts.
Now, these people don’t really know who we are, so they aren’t so sure they want to take a chance on us yet. And considering how today everyone is busier than ever, most people just don’t have time to play around with someone else’s ideas. If it doesn’t grab them right away, they’re moving on with their busy lives. Now, if our marketing and advertising do cause people to pause long enough to stop and consider us, then we need to try to get them involved or engaged with a low-risk or no-risk offer.
Our low-risk or even no-risk offer is what gets them to step foot into our sales funnel from the great big outside world. Our motivating and moving force is usually something like a free offer of something we have to offer them that might improve their lives somehow.
Our free offer is often our free content. This is where we give away life-improving information to people for free. Maybe we put this free information in the form of an article, blog or a vlog, or a podcast, webinar, YouTube video, or even internet television show. This sharing of our knowledge and skills encourages people to engage with us and take their first risk-free step into our sales funnel.
Our free content offer won’t get everyone who bumps up against us to enter our sales funnel, but it will get some. Now for the prospects who did enter our funnel and consume our free content, next, we offer them even better content, which is still for free. But it will cost them their email addresses. Most who are playing around inside of the rim of our sales funnel won’t take this next step to enter deeper inside by giving us their email. But some will. And some will make that purchase or investment of offering their email address for better content to improve their own lives somehow.
See how we’re already narrowing who is interested in our products and services? This system of driving people through our pipeline or narrowing sales funnel will continue. We’ll have less move forward at each stage, but the good thing is that we will have people moving forward, and those people moving ahead are qualified leads. Hopefully, someday, they will be our raving fans who will tell others about us.
The next step in our sales funnel will be a very low ticket item like an eBook that costs only a few bucks. No more than $4.99. This has to be a very inexpensive item that will get some of them to bite and move forward. Again, many won’t move forward at this point, but some will. Now we’re making some money and pushing qualified leads towards our bigger ticket items where we will make heftier profits.
Our next step would consist of a little bit more of a commitment from our people like buying a physical book costing $12.99 and then, after that, maybe an online course for somewhere from $29.99-$49.99. Keep the online class under $50.
We want our prospects to take small safe steps through our sales funnel. Our consumers are becoming fewer as they are moving through the narrower passage of our sales funnel. However, even though we have fewer and fewer people, they are more and more qualified ones who will buy our biggest ticket items.
The next few rungs on the ladder could also be online courses that are gradually more sophisticated. We could do a $99 one, and a $299 online course that offers better and better information to our clientele. We’re getting fewer people now, but they are higher-quality people now as well.
After this, we jump up to offering some online coaching sessions for qualified leads for somewhere between $499 and $999. Keep it under a thousand for now, so this next step still seems logical to our prospects and their wallets. It’s just a little bit more of a stretch.
Finally, we’re going to go to our big-ticket items at over $1000. This is where our customers are going to want to see us in person. This could be one-on-one coaching. This could be speaking, LIVE events that people attend. Maybe it is weekend retreats. It could be anything you want that puts you face to face with people in a situation where you’re offering them a great experience and giving them life-changing information. We will make a huge profit here from a small group of people. And if done right, this could be a lot of fun for everyone!
These big-ticket items are awesome, but few people will purchase them. And these people will be hard to find. They are the few and far between. But, if we bring the masses into our marketing and funnel, eventually, we’ll bring a few out the far end of our funnel. And those emerging on the far end will be the type of people who love everything about us and will purchase our big-ticket, high-profit products and services.
*Check out the free video lesson on this chapter!