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Whether you are in affiliate marketing or have your own product and services online, setting up a correct sales funnel can mean the difference between struggling business, or an auto pilot cash machine.

Too many people start an online business JUST selling $10 E-books thinking with such low prices their customers have nothing to lose. However let’s do some simple calculation. An average wage we are assuming is $700 a week (For simplicity let’s not get the tax man involved). For this business to replace that wage it needs to sell 70 E-Books a week every week! We are not talking about subscribers here, we are talking about 70 paying customers a week. There is a HUGE amount of effort that must go into in order to achieve this and not to mention the marketing cost involved to get 70 paying customers a week.

Now, some people out there already know this, so they start by selling high ticket items worth $500 to $1000’s. The problem with this is they have not built enough trust between their customers for them to spend such large amount of money.

A sales funnel, is a tool internet marketers have used for a long time to build trust and to sift through the tyre kickers from the high paying customers.



Looking at the diagram, the first layer of the sales funnel should start with your free give away. If you have read my previous blogs about providing value, the freebies can either be a report or training video series. The important thing here to get your prospects email address so you  can start filtering them through your sales funnel.


The second stage of your sales funnel should consist $5-10 e-books or training reports. This is where we begin to separate who on your list is a paying customer and who is just in it for the free give away to be on your list. Depending on your freebie, the conversion rate varies. However DO NOT expect a large majority of people signing up for free training going to the second stage of the sales funnel. In fact it is more like 5 to 10%. However as they become paying customers, the conversion rate will be higher.


Third stage of the sales funnel should consist of a slightly higher price services, usually around $100 membership fee. The reason behind this is that the $5-$10 e-book or training video series should provide more value than its price, while also including some sales material to up sell your membership. If it is done correctly, about one third of those who purchased the e-book will upgrade to the membership service.


Fourth stage of the sales funnel should be a platinum membership. This is where you begin to offer one on one mentoring and it’s less automated then your previous services. Platinum memberships can go for as high as $1000 if you are willing to provide the service.  Again, there should be about one third of people from your third stage sales funnel coming to this stage.

Now hopefully by now you can see the power of having an effective up sell funnel where you have repeated buyers instead of constantly spending money on marketing for new customers. Research has shown it is 7 times easier selling to existing customers then to gain a new one. If you compare the above sales funnel to our example at the start of just selling a $10 e-book, all you really need is one customer to filter down to the platinum sales funnel to make $1000 per week instead of trying to sale 70 new customers to make $700 per week.

If you are an affiliate marketing and do not have your own products or services, MAKE SURE that your affiliate program has a good sales funnel like the one above where there is plenty of opportunities to up sell. As an affiliate marketer myself, I try to stay away from the once of commission structure programs in the early stages of my business.

Hope this has helped you to understand the importance of a good sales funnel and its fundamental structure.

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