How to Flip the Product Funnel and Increase Your Profits
I shared a post from Ali Brown on facebook today, here. It really inspired me to write more on the topic as I 100% AGREE with her and her advice. Check out the post I shared here.[feature_box style=”1″ only_advanced=”There%20are%20no%20title%20options%20for%20the%20choosen%20style” alignment=”center”]
If you’re struggling to make profits with your lower-priced products read this post!
I’ll be explaining how you can FLIP the product funnel, charge 10X more and earn 10X profits with the same marketing.[/feature_box]
Back in 2010 I was trying to hit an income goal. I was looking to move from working with clients, earning about $3000 per month and replace that income with information products or affiliate sales.
Like most people trying to figure out this “online marketing” thing at the time, I was trying to follow the well known product funnel model of marketing:
That model never really made a lot of sense to me.
They say to start with the Freebie offer to get people on your list, this part I completely AGREE with. You’ve got to build a list of leads, of people who are not yet your customers or clients. That’s essential.
Next, the advice is to start with low priced, typically $7 to $27.
Then, upsell them to a mid-priced product, around $47 to $67.
Then, move them into a mid-high priced product, at about $97 to $147.
Then, get them in for a high-priced product, at $297-$497.
Finally, sign them up as a VIP in your premier products in the range of $997+.
The reason this never made sense to me is it’s not how I’d buy an information product.
Let’s use my coaching program, Website Design Mojo, that teaches people how to build a website in WordPress. If I were looking to build a website I’m not going to do this:
- buy a $7 ebook on how to get hosting
- buy a $47 webinar on how to install WordPress
- buy a $147 course on how to build a website
- buy a $297 coaching program on start to finish website creation
- buy a $997 mentorship on how to make an amazing website
>Nope, I wouldn’t do that. I’d look for one course, in the range of a few hundred dollars, and buy THAT. I don’t want to buy product after product or wait to go through a bunch of programs before I get the results I want.
Now I’m not saying this model has no merit, it just never seemed to fit in with the way I wanted to do things in my business.
That’s why I FLIPPED the product funnel:
The biggest problem I had with the “Typical” product funnel is that I never seemed to get past level 1, the low priced products, and I was barely scraping by. It was frustrating, disappointing and de-motivating!
As soon as I flipped the funnel I went straight to level 2 and started charging $397 for my WordPress coaching program – and got it!
Some people say it’s easier to sell a lower priced product than it is to sell a higher priced product. I don’t believe it! Like I said I’d personally prefer to buy a $300 complete coaching program than a $7 short report. So if I were on your list you’d actually have a HARDER time selling me the lower priced product.
Is your mind blown yet? 😉
Don’t think you HAVE to start with low-priced products. You don’t. You can start where ever you like. There are no dues to pay. There are not ‘required’ steps to take. It’s your business and your rules!
If you already have some lower priced products you can easily turn those into a higher priced program.
- Add four weeks of live webinar training.
- Add email coaching.
- Provide one on one coaching sessions.
So let’s say you were interested in teaching people about WordPress. You could start selling a coaching program for a few hundred dollars to a leads list. I know this because I’ve done it hundreds and hundreds of times. What I’m saying isn’t theory.
The most important thing you can do in your business is to never just “go with the flow” because it’s what everyone else does. Figure out what works for YOU, what makes the most sense for YOU and do that, even if it goes something that EVERYONE else is teaching and doing.
p.s. Let’s chat on facebook. Come share your thoughts here![social_sharing style=”style-15″ fb_color=”light” fb_lang=”en_GB” fb_text=”like” fb_button_text=”Share” tw_lang=”en” tw_button_text=”Share” g_lang=”en-GB” g_button_text=”Share” alignment=”center”]
30 Days of Focus
Daily Tips to keep you from the all-too-common distractions that STOP YOU from doing your best work.
Sign up now and see you in the challenge group!