What is sales funnel?

Hi there, what’s up?

Friends, I will tell you today about the sales funnel. So many people asked what is sales funnel? I will also talk about how using these formulas can further increase your sales.

So friends, first of all, let’s understand what is a sales funnel? Funnel is actually a step-by-step process. Here you approach your audience in a very specific and skillful way, towards your products. First, you offer some free products to your audience. When they are satisfied with the products, you offer them something bigger than that, for which you ask them to pay. And it continues like this.

This way you promote your products step by step and approach them to use it and then to buy an upgraded version of it. As I said before, it is a continuous and step by step process.

Take a look at the figure below to understand the sales funnel. Then I will discuss it.

Picture of sales funnel

Sales Funnel Image.
Image Source : https://pixabay.com/

What do people do most of the time to sell a product? They try to sell the product directly to their customers. But honestly, they make the biggest mistake of their business policies here.

So what should we do first?

The first step of the funnel, which is awareness.

The thing is I, you and everyone else know that we don’t like to do business with people we don’t know personally. It is normal human psychology.  I can’t trust someone I don’t know. So how can these people grow their business? On whom we cannot rely. Then we must first talk about awareness.

Steps of sales funnel


First, you need to find 3 strong points based on your business. Those points should be such that your audience thinks they will be benefited from these. You will tell in detail in those points how you can help your audience.

Image Source : https://pixabay.com/

Let me give you an example of this post. How can this post help you?


In this post, I can help you with Marketing, Sales, and Leadership. If you have any of these three types of problems, I will solve them here. For that what I will do is I will write a few; say 3 to 4 such articles. Where marketing related, sales, or leadership-related problems will be written, along with their solutions.

You have to do the same. You need to let your audience know that you have solutions to their problems. If you have your own website or video blog, tell your audience about those problems in your content. Not only that, tell them about the solutions to those problems too. What will happen then? Your Audience will come to your site or videos to find solutions to those problems, and they will find their solutions.

Then what? You will create awareness.

This is not the end. You do spread your content everywhere on social media. For that, you can use any medium, free, or paid. Do SEO on them, so that some traffic started to come on your site or vlog.

Then you have to go to the 2nd step. What is that 2nd step? That is the lead generation.

Lead Generation

What many people do is try to generate leads in the first step. But this should not be done. We should generate a lead in the second step, also with lead magnets.

Lead Generation


What does this lead magnet mean? The meaning is clear in the name. Pull the lead to yourself like a magnet.

How to do it?

Provides something for free to your audience.

What can you give for free here?

You have a lot of options to provide for free. You can give free pdf, e-book, video training, or webinar to your audience.

What will you get for these?

Email address, and phone number of your audience.

When you will get those email addresses and phone numbers, then you’ll be connecting with those audiences. You then move your audience away from social media into your own assets.

Because, social media is a big and it is a combination of different elements. On it, your audience can be distracted.

To keep their attention focused on you, their email address and phone numbers are very important tools.

So this is the lead generation process.

What is the 3rd process or step? Try to remember from the picture which is given above.


The 3rd process is called Nurturing. That means giving nutrition. In this step you will try to nurture the audience.



What are the processes of Nurturing?

In the previous step you got the email address and phone number. Of these two things I would first suggest for E-mail marketing, and secondly Re-marketing.

See, we see lots of ads all our lives. We meet a lot of people. Millions of ideas come in a single day. That’s why we forget about other people’s ads.

In order to remind them again and again, it has become very important to do email marketing and re-marketing. What you will do is you have the email addresses and phone numbers, you create audience groups with those emails and phone numbers on Facebook, Instagram and all other social media platforms. Then do the re-marketing, email them.


What will we send in email and what will we do in remarketing?

In the email we will send the content of the valuable things, such as PDF, e-book or if you have made a new video on that subject, its link etc. Or it could be a video format or a free training.

What we will do in re-marketing is to inform and update them about different products on different platforms through different videos or different posts.

One more thing you can do in nurturing is that, you can show the testimonials and the results of your customers and clients, which they have received through your service. By doing this you can build a field, an authority, in the market.

Now, let’s go into the 4th step.

Offer Paid Service

In this fourth step, you will approach our customers to sell some low priced products or services. At this stage, you cannot approach them to sell products worth Rs 10 lakh or Rs 20 lakh. Try to sell small products or services at this stage.

Offer Low Budget Paid Services

It could be offline or online, but to remember you have to approach them for low priced products or services.

Let’s understand a calculation here.

Suppose you have 1 million people in the 1st step. At the 2nd step, that number will be reduced to 10% that is 1 lakh. When you come to the 3rd step, that number will be reduced again by 10% i.e. 10 thousand. In the 4th step it will come down to 10% again, that number will be 1 thousand.

This means that you have sold your products or services to 1000 people in the fourth step. And from here, you can get the money you spent in the first 3 steps in full or even more.

Many people just concentrate on sales. But those who are smart marketers and smart traders focus on the core space or the very last stage of the funnel. They always focus on their base or you can say the last step of the sales funnel. They think that, if their foundation is strong, then their whole empire will survive in the long run.

So let’s talk about the last step.

Earn Revenues

Now in the last and final step, you need to do is, to approach the customers for some higher range products. Suppose in the previous step you approached a customer for a product worth Rs 10K, and then in this last step, you can approach for a product worth Rs 50K.

Earn Revenues

Think of the calculation I gave earlier. Suppose you get 1000 buyers in the 4th step, then in the 5th step, you can expect that 10-20% of the buyers in that 4th step will buy your product, which is 100 to 200 customers in numbers. Then, you can go for customized services, for which you can claim 60k-150K or more from the customer depending on your service. If you get 10% customers of the 5th step, the number of customers goes up to 10-20, Which in turn, will help you to earn around 10-30 lakhs for any single product or service.

You may be wondering, why would consumers buy such a huge amount of products or services? See, if I talk about products, it must be of good quality. And if I talk about services, I will say yes, there are a lot of customers, who buy these. These services are mentorship programs or, one to one calling or meeting programs.

In all of these services you meet persons in one to one, explain things to them, create clarity about those things, and ultimately lead them to success in their lives.


So now you understand, the sales funnel works this way. We must maintain these processes in our sales funnel, in order to build authority, to build trust. Then approach someone to run your business.

So friends, write in the comments on how helpful this post was for you. That’s all for today, we’ll talk again in the next post.

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