Renee Prejean-Motanky


In Business Development, Business Strategies, marketing on August 20, 2009 at 1:54 am
Giant Funnel Cap
Image by polandeze via Flickr

The funnel is a basic marketing concept that can have a huge impact on profitability and the success of your service business.

The theory behind the marketing funnel (sometimes referred to as a pipeline) is that you should offer something free or very cheap at the top of the funnel, then a mid-priced option and, finally, your highest priced services and products at the bottom of the funnel.

Many service professionals struggle with converting prospects into paying clients because we make the mistake of trying to sell expensive services without offering any lower priced options.  It’s important to provide an opportunity for prospects to experience your services and expertise at different price points.

Here are Three basic ideas for developing and implementing your funnel strategy:

First, draw a funnel shape on a sheet of paper — List the products and services that you currently offer.  If you see gaps in your offerings from free to high-priced, determine how to plug the holes by adding more product/service offerings and a range of pricing options.

Second, get lots of prospects into the funnel — Visualize the funnel with the large end at the top and the narrow end at the bottom.  You want lots of prospects at the top of the funnel.  Cast a wide net first by spreading your targeted message to as many folks in your audience as possible (this would include, prospects, current clients and former clients.)  The idea is to end up with your most ideal prospects at the top of the funnel.  A great way to do this is by offering something for free or at extremely low cost that will introduce you to them and demonstrate your expertise (an e-zine, special report, e-course, audio download, white paper, etc.) to entice them to allow you to add them to your database so that you can contact them again.

Third, guide them through the funnel —  Once prospects have experienced your expertise and get to know, like and trust you, they are more likely to spend more money on your services or products.  Each level of your funnel represents a step in the relationship-building process.  As you guide prospects through, increased familiarity represents the potential for increased profits.  You offer your higher-priced options only after they’ve experienced the lower priced ones.  As you provide several opportunities for prospects to sample your skills and knowledge at lower price points, the middle of your funnel starts to fill, enabling you to make money while earning the trust of clients and prospects as you give them the opportunity to try low to medium-priced options.

Make it easy for prospects to make the decision to buy from you.

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