Why Any eCommerce Business Needs A Sales Funnel
Having a sales funnel in 2016 for your eCommerce business is absolutely crucial
Problem is, I’ve found most eCommerce entrepreneurs don’t even know what one is. Or they do “know” what it is, but don’t quite understand it fully, or how to create one.
Let me break this down for you (this is one of the eCommerce sales funnels I built for a client of mine):
He was running a “health oils” website, you know the oils that are supposed to make you younger, healthier, etc..
To be frank, he wasn’t making much money originally, at least a lot less than he should have, in simple terms: His site sucked.
His original ad spend, revenue and profits were:
$900 a day in Facebook Ad spend, this generated on average $2000 revenue, after product costs plus shipping, he was left with about $1000, subtract that from the ad spend and he was only making about $100 profit a day.
That doesn’t sound like much for $900 a day in ad spend does it?
(Trick question, of course it doesn’t)
He was sending his traffic to a product page for a $35 product, and that was the ONLY thing he was trying to sell. And the very first offer he showed them immediately after his paid traffic clicked on his site.
That was BEFORE I came in and started gutting his entire eCommerce store
Problem was, again, he wasn’t even using a sales funnel for his eCommerce store! He didn’t even know what one is.
In simple terms, a sales funnel is a fancy website designed to turn paid traffic, into customers, and make much more money than you would with a normal “website” or “store”. It’s a sophisticated eCommerce store that makes much more money than just a boring storefront.
1. Money buys paid traffic
2. Customers click your site
3. Customers get offered a low risk, no brainer “tripwire” product (not designed to originally make a ton of money off of – this is the most common mistake)
4. Customers get offered 1 click upsells immediately after checking out “tripwire” product
That in a nut shell, is exactly what a sales funnel is.
Now here’s the fun part, let me break down how drastically his “health oil” business changed after I ripped apart his old boring not-so-profitable eCommerce store and applying a sales funnel to it
$900 in Facebook Ad spend (didn’t change this, just optimized his sales funnel)
So what I did is I applied a tripwire product, this was the first product in his sales funnel, the landing page where the paid traffic would land
This was a Free + Shipping product, for $9.95 shipping for one of the “health oil” products
This had a 25% conversion rate from an insanely low risk no brainer offer (Who doesn’t like free stuff?)
Then I offered them 3 immediate 1 click upsells
The first upsell was a $19.95 “health oil” – this oil improved something else than the first one did, this converted at 10%
The second upsell was another “health oil” – this also improved something different than the first two, I sold this for $29.95, and this converted right around 10% as well
The third upsell was “good health necklace” – in a nut shell, people who use “health oils” typically believe in items that bring them good luck, placebo or not, so I offered this for $39.95 and it converted at 9%
I was receiving Facebook clicks for about $1, therefore I was getting about $900 clicks a day. 25% of them took up my F+S product, 10% of those 25% took up my first upsell, 10% of those 25% took up my second upsell, and 9% of them took up my third upsell.
Now, figuring we had about a 75% profit margin on these products
The total profit made after applying a sales funnel to his business was:
Tripwire Product (F+S) = $175
Upsell 1 = $37.5
Upsell 2 = $50
Upsell 3 = $67.5
Total Made = $330
Original Profits Made Before Applying A Sales Funnel: $100
So by applying a sales funnel to his eCommerce business, he more than tripled his eCommerce business, NEARLY quadrupled.
Now I know this sounds good, but your probably confused exactly how to create your first sales funnel.
But don’t worry..
I’m holding a free live training workshop, and I want to show you exactly how to do this and apply this to your business so you can quadruple your business like he did too!