What Is A Marketing Funnel?

Funnels stir certain imagery in the mind. If you close your eyes you can just picture them. They’re often brightly colored. Vibrant oranges. Crimson reds. Bright yellows. Sometimes they’re made of plastic. Other times they’re made of machined metals. They’re used in kitchens for baking. In automobiles for fluids. They’re wide at the top and narrow at the bottom

We all know what funnels look like, right? But what about funnels used in business? Some call them marketing funnels. Others call them sales funnels, customer funnels, business funnels or purchase funnels. Whatever way you look at it they are one and the same. So what is a marketing funnel? And how are people using them in business to make obscene amounts of money?

Look, the truth is this. If you don’t have a marketing funnel in your business you’re leaving money on the table. And if you don’t have a marketing funnel? Your business is likely struggling to survive. Why? What do funnels actually do and why are they so important? Marketing funnels help you increase leads, boost sales, decrease ad costs, and increase the average order values across the board.

Marketing funnels can take a business from zero to hero overnight. That doesn’t mean you’re going to get rich. It just means that the right funnel to the right audience with the right messaging can change the state and quality of your business incredibly fast. It can catapult your sales into the stratosphere and help you make more money than you’ve ever dreamed of. Yes. Marketing funnels are that important.

How Do Marketing Funnels Work?

You already know what a funnel looks like in the real world. Marketing funnels are no different. They’re virtual representations of physical funnels. They’re wide at the top and narrow at the bottom. Imagine it like this. The top is where all the traffic and people enter your funnel. That’s where they show some sort of awareness in your message. They see an ad, a social media post, a video, or something else that brings awareness and drives traffic to your marketing funnel.

Marketing funnels then help to filter people down toward a very narrow and refined point. And along the way many exit the funnel or never go any further. As you descend down the funnel you approach the intended action. That action could be the generation of a lead. It can also be an actual sale of a product or service. It can even be filling out an application. And so on.

There are marketing funnels for every situation you can think of. And you can use marketing funnels to make money in your business. You can use them to make money from your phone, in your sleep, while you travel, and in every industry you can think of. Marketing funnels can be used in real estate, web development, graphic design, dentistry, agencies, social media, and so on.

Once you understand the mechanics of how a marketing funnel works you can implement them in your business to help you grow it fast. That doesn’t guarantee you’ll succeed. But it does give you the tools you need to take things to the next level. Why? Because business is hard, right? Every day there’s another battle to fight. So you must equip yourself with the right weapons.

Traffic: Cold, Warm & Hot

To understand marketing funnels you must first understand the basics of traffic. Traffic isn’t just cars congesting on streets. Traffic is people on the internet. In the virtual world we drive traffic to our offers to generate leads and make sales. But not all traffic is created equal. And if your business is struggling you must take a step back and look at the type of traffic entering your world.

Why is traffic so important? Because we must treat each type of traffic a little bit differently. That’s where marketing funnels come into play. Marketing funnels help you match the right landing page to the right type of traffic. That’s because you can’t speak to cold traffic the same way you speak to warm traffic or hot traffic. Cold traffic is only aware of the problem they have. They don’t know who you are.

The difference is important. And marketing funnels must be segmented by traffic type. Landing pages must be created differently to speak to people in different ways. And it’s all based on the temperature of that traffic. This might seem arbitrary. But it’s not. Knowing the temperature of the traffic reaching the page is vital to your ability to convert that traffic into leads and sales.

Cold Traffic

Cold traffic is purely problem-aware. They know they have a problem. But they just don’t know how to fix it. And marketing to a cold traffic audience should be targeting their problem. It’s not about directly selling to them. That’s a harder play. After all, they’re problem-aware. So you should help them solve that problem. That’s where marketing funnels come into play.

When you’re targeting cold traffic you’re often giving them a solution through a lead magnet. A lead magnet is a free offer that helps the prospect solve at least part of the problem they’re experiencing. And the better the quality of the lead magnet the more that prospect will feel indebted to you. We call that reciprocity. That’s an important concept to remember. And this is where the shift happens to warm traffic.

Reciprocity is created when someone else gives you value. When you receive real value from someone you feel indebted. Think about it this way. In some American malls you would see massage specialists giving out free 5-minute massages. That’s not because they’re feeling generous or want to throw money away. Nope. They know that most people who get that 5 minute free back massage will want to continue. Makes, sense right? And that right there is the basis of reciprocity.

Warm Traffic

Warm traffic audiences have more than simple awareness. They now have an interest in you and what you’re selling. They’ve raised their hand and entered your world. They downloaded a lead magnet and consumed your content. They’ve likely read emails from you where you’ve shared stories and started building some rapport. They’re no longer just problem-aware. They’re now aware of you and the solution you provide.

There are degrees to warm traffic. But the general take is that they are both problem and solution-aware. They know who you are and what you do. And when you play your cards right you develop desire in that person. The desire to buy whatever is that you’re peddling. That desire happens only after you build some rapport. And you do that through email marketing.

Hot Traffic

Once warm traffic is warmed up enough you create desire. And that desire turns into action. It’s the action of purchasing what you’re selling. That’s where warm traffic becomes hot traffic. Hot traffic are the buyers inside of your marketing funnel. They’re the ones who made it all the way down to the bottom and took the action to purchase.

Hot traffic is important. And as long as you treat them right and deliver an insane amount of value they’re ready and willing to buy the next thing. That’s where you ascend that hot traffic up to greater value funnels. For example, if a person buys a low-ticket “tripwire” offer from you they are now a buyer. You can later ascend that person up to the next thing you provide. It could be a home study course, a coaching program, or anything else.

The Four Stages Of A Marketing Funnel

There are four stages to funnels. These stages are based on the AIDA model. It was developed by an advertising pioneer named, E. St. Elmo Lewis. AIDA is a stimulus-response model. It’s also one of the longest-lasting hierarchal models used in business. The stimulus occurs when a prospect sees or consumes an ad. The response happens when that prospect makes a purchase.

Hierarchal models like this are based on a three-step process. The first part is the learning stage. The second is the feeling stage. And the third is the doing stage. We learn, feel, and we do. That’s typically the hierarchy that we go through. The problem that most business owners face is that they try to jump to the doing step before going through the learning and feeling step with the prospect.

Let’s take a step back for a moment and look at the marketing funnel again. The top of the funnel is wide, right? There’s a reason for that. Not everyone entering the funnel will take the intended action at the bottom. But they must still go through the funnel stages if you want them to eventually be taken. That’s where most businesses fail. Without a marketing funnel, how can you expect to take prospects through the stages?

Marketing funnels don’t just communicate through landing pages. When a person enters your marketing funnel they also join your email list. That’s where email marketing comes into effect. That’s where you get people to feel a certain way by sharing stories and delivering real value. It’s a proven process that works in every industry and across every single niche. You just have to follow the process.

1—Awareness

Although the original model calls this “attention” it’s one and the same. Getting someone’s awareness is difficult. There’s just so many distractions today. But awareness/attention is key. Once someone is aware they can at least be exposed to your marketing funnel. And awareness happens in many ways. It can happen on purpose by running an ad. But it can also happen randomly when someone clicks a link in your profile on your social media account.

Traffic can ebb and flow everywhere. You don’t always control it. But your job as a marketer is to convert the traffic you control and don’t control into traffic you own. That’s what a marketing funnel is designed to do. But you must start at the awareness stage. And you must get a prospect’s attention in different ways. Only then can you funnel that attention toward an intended action.

2—Interest

Awareness doesn’t necessarily mean that a person is entering your marketing funnel. They might arrive at your landing page and then just leave. An interest means that someone is first aware. Afterward, they might raise their hand and display real interest. Interest means that they’re providing their contact details in exchange for something of value. Typically that means you’re delivering some form of lead magnet or giving them access to some type of presentation.

Lead magnets can take on many different shapes and sizes. But the goal is always to gain someone’s interest. You do that by presenting a solution to a problem they’re facing. Remember that you’re going after cold traffic. And by design those people are problem-aware. Your lead magnet should target that problem. People are exchanging their information for a chance at solving all (or part of) that problem.

3—Desire

The goal of a marketing funnel is to get a prospect to take action. But before they can take action there must be desire. So how do you create desire? It’s done in many ways. The best way you can do it is by sharing stories. Your goal is to share stories with the prospect that stir emotion. In other words, you want them to feel a certain way.

Remember that the hierarchal model is learn-feel-do. Desire comes in the feeling stage. You must understand how to craft stories in a way that sells without selling. Stories that do this help the prospect decide to take action. You’re not chasing them. Nope. It’s the opposite. You’re magnetizing them to take action.

4—Action

The ultimate goal of any marketing funnel is to get the prospect to take action. Every single thing you do before that is designed to funnel them toward that intended action. Every. Single. One. That process is not a simple one. But it can be replicated. Manufactured. Designed. But you must understand the problem deeply. And you must understand the prospects and who they are.

Beyond that there is more. The prospect must believe that you understand them. They must also believe that you understand the problem. However, most importantly they must believe that you have the solution to their problem. If they don’t believe all of those things they will not take action. Plain and simple.

Marketing Funnels vs Websites

Many wonder what the difference is between a marketing funnel and a website. Marketing funnels have a singular focus. There’s only one path forward. You’re not met with multiple options. Websites are far different. There’s an overwhelming amount of choices. And we get lost in that sea of options. There’s no direction or focus.

That’s why marketing funnels convert at 137% higher on average than websites. It’s because of that laser focus. There’s only ever one action you can take on a marketing funnel. It’s either to generate a lead, fill out an application, and so on. There’s no sea of choices. No overwhelm. You’re not lost in the abyss like you are with websites.

Most companies have a website. But they lack a funnel. And that’s also why so many companies struggle to make money in their business. They make money slowly and painfully with websites. Marketing funnels are different. They allow you to make money fast because they’re unidirectional. There’s only one path forward. That’s it.

Types Of Marketing Funnels

Many types of marketing funnels exist. There’s a funnel for every situation. But when you boil it down there are 7 overall types of funnels. Each type has a purpose and a direction. Some are intended to generate leads. Others are intended to get people to fill out applications. And still others are intended to get people to make purchases.

1—Lead Magnet Funnels

Lead magnet funnels are designed for the sole purpose of generating leads. They’re typically created as squeeze pages or reverse squeeze pages. Those two concepts are important. A squeeze page is a page that squeezes contact information out of a prospect. That makes sense, right? It usually has some sort of lead generation offer. That could be a lead magnet, a promise of a coupon, a free video, etc.

Reverse squeeze pages work a little differently than that. They provide the value upfront. Typically it’s in the form of a video. Once the prospect consumes the video there’s usually an offer to enter in their information to learn more or receive some sort of follow-up content. It could be a checklist, a cheat sheet, or something else.

So what’s the difference between the two? The reverse squeeze page usually delivers a more valuable lead. This is ideal when you’re working with a high-ticket “premium” product or service. That lead will be more likely to purchase because they were pre-qualified through the video. Typical squeeze pages will generate a lot of leads whereas reverse squeeze pages won’t generate as many. It all depends on what you’re going after.

2—Application Funnels

Application funnels are marketing funnels designed to accept applications. These are typically for coaching or consulting. And they’re also used for masterminds. Application funnels are important because it turns the tables on the prospect. It gets them to prove why they should be allowed to join the group or the service being offered.

A typical application funnel has a reverse squeeze page at the start. That delivers value to the prospect and invites them to move to the next step. That step is the actually application. The application is designed to collect information and qualify the prospect. This allows you to weed out the people who aren’t the right fit. The reverse squeeze page video can also include social proof like testimonials from others along with valuable information.

3—Affiliate Funnels

Some consider affiliate funnels to be lead-generation funnels. In a way they are. But in terms of affiliate marketing this is an entirely different approach to the lead. Remember that you’re making money here as an affiliate. You’re not selling a product or service that you developed or created. That’s why affiliate funnels are structured differently.

Affiliate funnels are called bridge funnels. Why? Because they act like a bridge between your email list and the affiliate offer. At the very front of a bridge funnel is a squeeze page. The squeeze page has some sort of promise or offer for a lead magnet. Once a prospect provides their information they land on the actual bridge page. The bridge page may have a video that delivers value along with some information to move to the next step.

The next step is the actual affiliate offer. That’s where you place your affiliate link in the button. Once they click on that they move to the affiliate offer. But this only happens after they join your email list. This way, you can deliver ongoing value and build rapport with the prospect. Remember that the goal of a marketing funnel is always to convert traffic you control and don’t control into traffic you own. And your most valuable asset in business is your email list because you own that list.

4—Sales Funnels

Sales funnels are designed to make a sale. And the best way to make a sale is to use tripwires. Tripwires work well because they present low-ticket offers that bring the risk threshold way down for prospects. Typically these are found in free-plus-shipping offers inside of book funnels. But they can take on many other forms.

Sales funnels like tripwires work well because they typically have upsells and down-sells in them. They also have things like order bumps in them. Keep in mind that people live by the law of consistency. Meaning that if they decide to take one action they want to be consistent. That’s why it’s easier to sell a more expensive product to someone who has already purchased from you than it is to someone who has no idea who you are.

5—Webinar Funnels

Webinars are presentations designed to sell high-ticket products and services. If you’ve never heard of a webinar then read this book. Webinars can last anywhere from 90 minutes and up. But some have condensed webinars into shorter formats. People like Jaime Cross. While the length is less important what matters most is that the webinar successfully destroys false beliefs the prospect holds.

False beliefs hold a prospect back from buying. And your webinar must be designed to shatter those false beliefs so that the prospect can then buy. It typically revolves around one bit “domino” statement” When you can get the prospect to believe that one statement, then they have to give you money. Webinars are not simple to build but they are highly effective.

6—Communication Funnels

Communication funnels refer to the follow-ups that occur with a prospect once they enter your marketing funnel. These are the emails being sent to them. Those emails help to build rapport by sharing stories and delivering value. Communication funnels are an important part of the process because without them marketing funnels would not work the way they do.

Remember that you must get the prospect to feel a certain way for them to take action. Feeling is expressed through emotion. And stories carry emotion best. So when you build out your communication funnels you are helping the prospect feel a certain way so that they take action. This is not through deception. It is through persuasion.

7—Ascension Funnels

Ascension funnels ascend the prospect up to greater and greater valued products and services. This typically happens through a concept coined the Value Ladder. A value ladder is merely a step-by-step process that helps you make more money by selling more valuable products and services to an individual.

For example, if they purchase a $37 product you might ascend them up to the $997 product next. After that they might ascend to the $9,997 coaching or mastermind. You should always have more valuable products and services to sell. After all, once you can’t ascend customers higher you’ve reached the peak and can’t make more money from that customer. The goal is to always have something that you can deliver that’s higher in value. Always.