Sales Funnels – What, Why and How

What are Sales Funnels?

Sales Funnels are processes made in order to lead the potential customers through different steps in order to make them buy.

The name comes from the fact that people go through this process step by step, some dropping along the way, others making their way to the bottom.


At the top of the funnel you have leads – the very people who you think might need your product or service, but with whom you’ve never spoken.

At the bottom of the funnel, many sales and delivery steps later, you have people who have received delivery of your product or service and have paid for it, more exactly customers.

So all this process consists of creating a lead and having that lead go through several steps in order to become a customer.

Why use Sales Funnels?

By using the sales funnel, and by quantifying the number of prospects at each stage of the process, you can predict the number of prospects who will, in time, become customers.
Even more, by looking at how these numbers change over time, you can spot problems in the sales pipeline and take corrective action early in the process.

For example, if you notice that to little mailings have taken place in a month, you might expect that in a few months time, sales might dry up. Next month, you should make sure that more emails than usual are sent out.

Use of the Sales Funnel shows roadblocks and times of standstill, or if there are an insufficient number of leads at any stage. This knowledge allows you to determine where sales people should focus attention and efforts to keep sales at the desired level and to meet sales targets.

The funnel can also point out where improvements need to be made within the sales process. This may be as simple as implementing additional sales training or ensuring that sales representatives put sufficient focus on all steps of the sales process.

How to use Sales Funnels

Let’s see how a simple funnel works.

The end goal: Sell your online course “How to create an amazing website” which sells for $297.

Phase 1 Creating a Lead

  1. You attract a visitor to your site. Through search, social media channels or any other way that you can think of.
  2. After you get them on your site they will see a free download “7 Reasons your website doesn’t sell.”
  3. In order to get the free offer they need to submit their email.

Now you have a lead!

Phase 2: Transforming a Lead into a Prospect

  1. You then send an automated email which includes the download.
  2. 2-3 days later you send video 1 from your online course. There is also an invitation to a free 30 min consultation.
  3. They submit a request for the free consultation

Now you have a prospect!

Phase 3: The Sale

There aren’t really a lot of easy ways or rules, just BE CREATIVE! Your audience may respond to things very differently than mine. Your product will shape how you form your funnel.

I advice you not to freak out, most probably you won’t make a great amount of sales right from the beginning. You need to be patient and work hard, study your audience and speak their language.

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