The 5 Types of Offers You Need in Your Sales Funnel
No matter what kind of business you have, you need a sales funnel. An effective sales funnel primes potential customers to purchase, guiding them to your core offer and beyond through a series of supporting offers.
There a number of offers you can include in your funnel that will qualify leads and maximize profits, so that by the time they get to your core offer, your prospects are ready to click ‘buy now’. In this report, we will focus on 5 offer types that will supercharge your sales funnel.
How Does a Sales Funnel Work?
A sales funnel illustrates each step a prospect takes to become your customer.
Picture an actual funnel: It is wide at the top (the sales funnel entry point) and narrows at the bottom (the point of purchase). At the wide end, you’re pulling in traffic from all over the web and leading these individuals into your funnel.
As they move through the funnel, you present them with more free and paid offers. With each offer, you qualify the lead. Qualifying means that you’re determining whether or not the lead meets the requirements to purchase your core offer. If they take you up on your smaller offers, this tells you they’re more likely to buy your core offer.
On the other hand, if you suggest various offers and they don’t bite, this may indicate that they’re not a serious buyer or that your offers aren’t a fit. You can still keep them in your funnel, but you should focus your attention on those who are a better ideal customer and will purchase.
An effective offer…
- Attracts serious buyers and weeds out time-wasters
- Nurtures and primes leads who are more likely to buy your core offer
- Helps build a relationship with potential buyers, even if they don’t purchase your offers right away
- Provides the buyer with a valuable product and builds trust
Keep in mind that while it’s called a ‘funnel’, your prospects won’t always follow a straight path. Some will buy a smaller offer now and eventually sign up for something much larger later. At the same time, there will be prospects who aren’t interested in your smaller offers, but they are a perfect fit for something much bigger. Since not everyone has the exact same needs and budget, you need a variety of offers to move the potential buyer through your sales funnel and beyond – where they become loyal, repeat customers.
That’s just one reason you shouldn’t completely ignore people who don’t buy your offers. Even if they don’t buy now, you should continue cultivating this valuable relationship. They may buy later or there may be other benefits to staying in communication.
In this report, you’ll learn about 5 of the key offers you can include in your sales funnel. You will also start planning your sales funnel offers as you work your way through the report.
1. Lead Magnets
A lead magnet is the first piece of content that draws people into your sales funnel. Since you’re trying to get as many people as possible, this is usually a free offer, although you may choose to charge for it.
The idea is to provide a high-value item for free in exchange for their name and email address. This allows you to start interacting with them via email series, the primary vehicle for presenting your offers.
It's called a lead magnet because it draws leads in. Think of it as the entry point to your sales funnel.
The trick to creating a strong lead magnet is to make it easily digestible and valuable. It needs to be something your lead can quickly consume and use. The reaction you want to create is, "If they're giving this away free, imagine what their actual products are like!” The lead magnet acts as your calling card and is often the first impression your prospects will have of you. Make it impactful.
Your lead magnet should set the stage for your core offer, providing similar benefits or solving part of a problem related to your core offer.
However, don’t give away all of your secrets in the lead magnet or there will be no motivation to buy your core offer. Instead, your lead magnet should provide a teaser for your core offer or help them take the first step towards it.
Some lead magnet ideas include:
- eBooks. A PDF with valuable information that helps your audience solve a problem.
- Checklists. Create a checklist that details what your audience needs to do to accomplish a particular task.
- Videos. Like an eBook, videos can help your audience solve a problem and you can actually demonstrate how to do it.
- Mini-courses. Short, helpful courses that provide students with immediate results.
- A challenge. Create a time-limited task for your audience to complete and provide them with the tools and encouragement to accomplish it. For example, “Do this for 7 days and form a new habit” or “Create the first draft of your [document] in 1 week”
Try to think of a free digital product that you can offer that won’t cost you money to create. Make sure it’s easy for your audience to download and consume.
Next Steps:
- What digital product do you already have that you offer for free? Which ones could be adapted into a lead magnet related to your core offer?
- If you don’t have an existing digital product, brainstorm ideas for a high-value lead magnet that could be created quickly.
2. Low-Ticket Offers
A low-ticket offer is usually found at the front end of your sales funnel. You’ve coaxed the prospect into your funnel with a lead magnet and now you want them to keep going.
At this stage, most prospects aren’t ready for your core offer or a high-ticket offer. They need to learn more about you, your brand, and the value you provide. They are interested but not committed.
Like your lead magnet, low-ticket items are often digital products that can be created quickly. The only difference is this time, you’ll be charging for them.
Why would you charge money for an offer at this early stage when you could give it away for free?
Charging money, even a small amount, is a good way to qualify leads. This is the process of separating the serious buyers from the freebie chasers.
There are many leads who will take you up on your offers as long as they’re free. They won’t pay for anything, even if it comes with a small price tag. Low-ticket offers help you separate the casual freebie seekers from the serious buyers.
A low-ticket offer can range from as little as a few dollars to just under $50.
How do you create a low-ticket offer that people will purchase? Make sure it solves a problem that is unique to your target audience.
Also, be sure to differentiate your low-ticket offer from any freebies you have offered in the past. It has to stand out and be perceived as more valuable.
Think of your low-ticket offer as a slightly better freebie. It can be a long-form eBook, a video course, a resource pack, a mini-course, or anything that will give your audience a quick win with little commitment.
Next Steps:
- What items do you currently offer at a low price? What content do you currently give away for free that could easily be a low-ticket offer?
- Brainstorm more options for low-ticket offers that would appeal to your audience.
3. Subscription Offers
Subscription products are a great way to secure a regular income while building a relationship with your audience, priming them to purchase your core offer.
Your customers pay a small fee on a recurring basis in return for a valuable product or service. The primary goal is not necessarily to earn a significant income from this type of offer. But if you get enough people to sign up, you can augment your income while directing people to your core offer.
Subscription offers are also effective at qualifying leads. A person willing to pay for your content or service on an ongoing basis is more likely to purchase your core offer.
In addition to these benefits, subscription offers allow you to deepen your relationship with your prospects. You’ll stay top-of-mind, and they’ll be more receptive to your core offer.
Subscriptions come in all shapes and sizes. They offer access to a product, service, or exclusive content for a small fee charged monthly, quarterly, or annually. The customer receives the product as long as they’re subscribed. For example, services like membership sites, resource libraries, and paid communities use this business model.
You can effectively use subscription offers anywhere in your sales funnel, but they work best in the middle, when the prospect is past the awareness stage. At the front end of your funnel, prospects may not be willing to make the commitment to a subscription. In the middle of your sales funnel, they know you and they’re regularly consuming your content, so they’ll be more willing to sign up.
Next Steps:
- What product do you have that could be offered as a low-priced – but profitable – subscription product?
- Brainstorm other subscription products or memberships that you could quickly create.
4. One-Time Offers & Upsells
A one-time offer (OTO) is any type of offer that’s available for a limited time or in limited quantities. These types of offers work well because they add a sense of urgency. If the customer doesn’t buy now, they’ll lose the chance forever.
This is a great way to nudge a hesitant prospect off the fence and motivate them to buy. On the other hand, if a lead won’t pay for a one-time offer, you can be pretty sure they’re not a buyer.
One-time offers can be standalone offers, but they’re often used for upsells. For example, if you purchase Product A, you can get Product B at greatly reduced price for a limited time. It’s the urgency and exclusivity that makes the offer so attractive. When used as an upsell to another offer, like your core one, your OTO should be something more expensive.
A one-time offer can be a deep discount on an existing product or a product that’s only available for a limited time.
Time isn’t the only commodity for OTOs. Another way to add a sense of urgency is to limit the number of units available.
For example, your limited quantity offer could be free coaching sessions that go along with a product purchase. But there are only 10 slots available, and once they’re gone, they’re gone.
Next Steps:
- What items do you currently offer that could be used as a one-time-offer, either on its own or added as an upsell to an existing offer?
- Brainstorm more options for one-time offers, keeping in mind your target audience and your core offer.
5. Order Bumps
An order bump is an additional product presented to buyers at checkout – after the customer has decided to purchase your core offer but before they click ‘buy now’.
It is usually presented as a single-click check box on the side bar and it gives customers the option to add a complementary lower-priced product to the initial order.
Order bumps have a high conversion rate and increase the value of your core offer/point of sale revenue. It is an impulse buy that catches customers when they are most receptive to purchase.
Some people fear that an order bump comes across as being pushy, but the opposite is true: People appreciate order bumps that complement their purchase.
For example, you purchase a shirt and are offered an accessory at a special rate. Or a seat upgrade when you purchase a flight. Or wings when you order pizza.
Order bumps work because the customer is ready to buy and with a single click, they can add a related item to their purchase.
And order bumps are easy for you because you can automate the whole process through your sales funnel program or website builder.
Next Steps:
- What items or products do you currently offer that could be used as an order bump?
- Brainstorm ideas for order bumps that can be created quickly, appeal to your target audience, and complement your core offer.
What to Do Next
The key to making your offers work is to offer the right thing at the right time. Sales funnels present you with the unique opportunity to learn more about your audience’s buying habits. By observing which offers they purchase and which ones they decline, you can use this feedback to tweak your offers, change their placement in your sales funnel, or remove them and replace them with a different offer.
Creating and implementing an effective sales funnel of offers can grow your online sales in leaps and bounds.