How to Create a Sales Funnel That Actually Converts

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To be honest with you, creating a sales funnel that works is a huge task for growing your online business. But guess what? It's also a terrific way to turn more leads into customers.

So let's look at how to build a strategic, irresistible sales funnel that works for your business. ↓

What is a sales funnel?

First, what IS a sales funnel?

A sales funnel is a marketing term for the journey potential customers go through on the way to purchase something from you - from first hearing about your business, to becoming a customer. The customer journey, if you will.

It helps you build a relationship with potential customers, so they get to know and trust you before you ask them to buy something.

Think of a funnel, wide at the top and narrow at the bottom. You start with lots of potential customers at the top, and this number gets smaller as people move through the stages of knowing, liking, and buying from you.

Stages of a Typical Sales Funnel

There are typically four-six stages to a sales funnel. You can get broader or more specific as needed, but here the basic stages:

1. Awareness: When people first learn about your business.

2. Interest: Now, people are looking for solutions to their problems.

3. Decision: They're comparing options and thinking about buying from you.

4. Action: When someone becomes a customer by making a purchase.

5. Loyalty/Retention: Turn your one-time customer into a longtime fan by asking for feedback, and continuing to provide loads of value.

Example time!

🤓 Get your calculators out! (JK, I’ve done the math for you):

Let’s say you are a Digital Business Manager and have a $47 online course on time management for solopreneurs.

• Website Traffic:

  • In March, 2,000 unique visitors land on your sales page that find you through a combination of organic (SEO) and paid (Instagram ads) traffic

• Opt-In Conversion Rate:

  • Out of those 2,000 visitors, 400 people sign up for your free lead magnet (let’s call it, "Time Management Cheat Sheet").

  • So the opt-in page has a 20% conversion rate.

• Email Sequence Conversion Rate:

  • Out of the 400 people who signed up, 40 purchase the $47 course from your email sequence.

  • So the email sequence has a 10% conversion rate. (40/400 people signed up)

• Revenue Calculation:

  • 40 course purchases × $47 = $1,880 in revenue.

Bam.

So now you know that as long as you spend less than $1,880 for every 2,000 visitors, you’ll stay profitable. From here, you can focus on optimizing the funnel (copy, design, ads, targeting, etc) and improving it over time.

(Allergic to math? Don’t worry, there’s more examples at the end of the post, without the algebra!)

Steps to Create Your Sales Funnel

1. Define your target audience (if you haven’t already!)

   • Where do they hang out - both online and off?

   • What are their dreams and goals?

   • What do they struggle with?

   • Customer journey - what part of their journey are they on?

   • Who are their influencers? Who do they love?

   • Who is this product/business NOT for?

2. Create genuinely helpful content

   • Make blog posts, videos, or podcasts that your audience will find interesting, valuable, and useful.

   • Focus on giving real value, not using sleazy sales tricks or phoning things in. People can tell.

3. Offer something free — and irresistible!

   • Give away something valuable (like an email series, template, or webinar) in exchange for an email address.

   • Make sure it's super relevant to what your audience wants, and it should include an easy, actionable win.

4. Build a great landing page

   • Make a clear, engaging page that shows the benefits of your offer.

   • Include social proof, features & benefits, and bonuses if you got ‘em.

   • Sprinkle strong calls-to-action (CTA) throughout that encourages people to sign up.

5. Create an email sequence

   • Write a small series of emails that build a relationship with your leads (typically 3-4 does the trick).

   • Give value, build trust, and slowly introduce your offer.

6. Share your product or service

   • Clearly show how your offer fixes your audience's problems.

   • Address any doubts they might have and show proof that your product works (through things like screenshots, videos or written testimonials, etc).

7. Follow up with outstanding customer service

   • Keep in touch with customers after they buy - ask for feedback, like what they liked or didn’t like. This will also help you finetune your product and make it even better!

   • Look for chances to offer more products or services — when it makes sense.

Ways to Make Your Funnel Even Better

1. Use data to track how you're doing

   • Keep an eye on how many people move through each stage of your funnel.

   • Find out where people are dropping off.

2. Test different versions

   • Try out different headlines, CTAs, or email subject lines.

     • Important Note: always do A/B testing. Try one thing at a time: don’t test multiple things, or else you won’t have accurate data.

   • Use the results to decide what works best.

3. Use retargeting ads

   • Show ads to people who've shown interest but haven't bought yet.

4. Show proof that people like your product

   • Include reviews, success stories, and testimonials in your funnel.

Common Mistakes to Avoid

Don’t:

• Try to make a sale too soon; build trust and give value before asking for a purchase.

• Make your funnel too complicated: keep things simple and easy to understand. This is better for YOU and them!

• Ignore the data: regularly look at your numbers and use them to guide your decision making.

• Forget about keeping your current customers happy: don't just focus on getting new customers; work on keeping the ones you have.

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More Examples of Sales Funnels

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Funnel Example 1: Online Course Creator (Digital Product)

Business: Solo Travel Academy
Product: "Master Solo Travel" online course ($297)

1. Awareness:

   • Make travel tip videos on Instagram and TikTok (2x per week).

   • Post travel-related picture series on Instagram (1x per week).

   • Host Instagram Live Q&A sessions about travel (1x per week).

2. Interest:

   • Give away a free "50 Essential Solo Travel Tips" ebook.

   • Use a landing page to collect email addresses in exchange for the ebook.

3. Consideration:

   • Email series:

     1. Welcome and send the ebook.

     2. Share a personal solo travel story.

     3. Give value with "5 Common Solo Travel Mistakes to Avoid."

     4. Introduce the "Master Solo Travel" course.

     5. Address common worries about solo travel.

   • Show ads to website visitors on Instagram and Facebook.

4. Decision:

   • Offer a free webinar: "How to Plan Your First Solo Trip."

   • During the webinar, talk about the "Master Solo Travel" course.

   • Give a limited-time discount for people who attended the webinar.

5. Action:

   • Send follow-up emails to webinar attendees.

   • Offer a 30-day money-back guarantee to make buying feel safer.

6. Loyalty/Retention:

   • Provide great course content and support.

   • Create a private Facebook group for course students.

   • Offer a discount on future courses or one-on-one coaching sessions.

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Funnel Example 2: Freelance Web Designer (Service-Based Business)

Business: Squarespace Web Designer in Portland Oregon
Service: Custom SquareSpace website design (starting at $3,500)

1. Awareness:

   • Write blog posts about website design tips that show up in Google searches.

   • Share before-and-after website redesigns on Instagram and Pinterest.

   • Join in conversations in online communities and forums about web design.

2. Interest:

   • Offer a free "10-Point Website Audit Checklist."

   • Use a landing page to collect email addresses in exchange for the checklist.

3. Consideration:

   • Email series:

     1. Send the website audit checklist.

     2. Share a story of a successful client website redesign.

     3. Give value with "5 Squarespace Features You're Not Using (But Should Be)."

     4. Introduce your web design services.

     5. Address common doubts about hiring a web designer.

   • Show ads to website visitors on Google.

4. Decision:

   • Offer a free 15-minute website consultation call.

   • During the call, talk about the potential client's needs and how you can help.

   • Give a custom quote for your services.

5. Action:

   • Send a detailed proposal outlining the work, timeline, and pricing.

   • Offer a limited-time discount for clients who sign up within a week of getting the proposal.

6. Retention:

   • Deliver high-quality work and keep communication clear throughout the project.

   • Offer a post-launch support package.

   • Give a referral discount for clients who recommend your services.

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Funnel Example 3: Health and Wellness Coach (Hybrid Model)

Business: Mindful Living Coaching
Products/Services:

• "30 Days to Mindful Living" ebook ($27)

• 8-week group coaching program ($797)

• One-on-one coaching package (3 months, $1,997)

1. Awareness:

   • Create YouTube videos about mindfulness and stress reduction.

   • Host a podcast with interviews of wellness experts.

   • Run targeted Facebook ads to reach stressed professionals.

2. Interest:

   • Give away a free "5-Minute Mindfulness Meditation" audio guide.

   • Use a landing page to collect email addresses in exchange for the audio guide.

3. Consideration:

   • Email series:

     1. Send the meditation audio guide.

     2. Share a personal story about overcoming burnout.

     3. Give value with "3 Simple Habits for a More Mindful Workday."

     4. Introduce the "30 Days to Mindful Living" ebook.

     5. Address common doubts about mindfulness practices.

   • Show ads to website visitors on YouTube.

4. Decision:

   • Offer a low-cost entry point: "30 Days to Mindful Living" ebook ($27).

   • After purchase, offer an add-on: "Mindful Living Journal" for an extra $17.

   • On the thank-you page, offer a time-sensitive deal to join the 8-week group coaching program at a discount.

5. Action:

   • For those who don't buy the add-on, keep sending helpful content.

   • Invite ebook buyers to a free "Mindful Living Q&A" webinar, where you'll talk about the group coaching program.

6. Retention:

   • Provide great content and support in the group coaching program.

   • Offer one-on-one coaching as an upgrade for group coaching participants.

   • Create a membership community for ongoing support and accountability.

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All these examples shows how to guide potential customers through the stages of a sales funnel, from first hearing about the business to making a purchase and then staying and becoming a fan.

The specific tactics and offers are dependent on the type of business and target audience, but the overall strategy of providing value, building trust, and gradually introducing paid offerings stays the same across all three.

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Okee dokes.

The bottom line on sales funnel is this: creating a good sales funnel takes work, but it's a great tool for your business - including growing your email list with people who are interested in what you offer, and earning more money.

When you understand your audience, give them value, and guide them through a well-planned journey (ie sales funnel), you can make more sales and build lasting customer relationships.