The post Funnel Pricing Breakdown: Discover The Common Price Points appeared first on ClickFunnels.
In taking your funnel building to the next level, you’ve probably been doing it all.
Up until now, you’ve been joining us here at the blog, interacting at the ClickFunnels Group, and of course, launching those funnels!
And you’ve more than likely been loving the process.
Sure, as we’ve seen in the past, building funnels, like any marketing, can have its challenges.
But the overall goal is for us to streamline that process and arm ourselves with the first-class, results-generating tools.
Along the way, we even get to have a little fun.
In pursuit of that goal, we’ve also taken apart some example campaigns to understand better what works… and what doesn’t.
And of course, insights translate into action, and action to results.
But one piece we need to add to the puzzle is pricing.
And luck would have it that 5 of the major funnel types have consistent pricing zones that produce solid results.
Instead of just spitting the pricing ranges out to you (what would we learn in only doing that?), I knew we had to jump in and really get our hands dirty.
This way, we can break down some real-life examples to see what we can borrow and learn from.
And with this guide, you’ll be able to have an idea of how your next funnel should be priced, but also, some of the methods that go along with that pricing.
Lead Magnet or Optin – FREE!
For many of you, I’ll bet that word “free” had your eyes lighting up. In reality, even the difference between $.10 and free can make a huge change in sales and revenue a company gets.
As mega-global-brand Amazon accidentally found out some years ago, even that tiny difference can impact the bottom-line.
And if you’ve ever gotten a promotional item yourself, you know that even a free pen or free hat can sometimes make you smile.
The numbers also prove that this is the case for most customers.
In truth, 83% of them reported that they enjoy getting a product for free, even when it had a direct advertising message.
Since this is such a powerful number, a lead magnet capitalizes on this simple fact.
For those of you new to funnel building, a lead magnet is like a gift from you to your lead and from your lead to you.
The idea is that you give them something valuable, a video tutorial or an industry guide, and they in turn provide you with their contact details.
By offering a free trial, they’re giving their potential customers a chance to try the product out.
Then, once the lead has opted in, the company can continue to touch base with them, say for example through a dedicated email follow up the campaign.
In the age of the Internet, customers have come to expect these sorts of exchanges regularly.
Even tech giants like Microsoft and Adobe have begun using them!
Protip: The word to remember here is “value, value, value.” Just because it’s free, doesn’t mean it can simply be any giveaway. By providing a valuable gift, you’ll get an equally valuable one in your lead’s contact information.
Tripwire – $5-15
While tripwires are very similar to lead magnets (and sometimes used along with them), they differ in a few key areas.
First, let’s look at where they’re similar, though. They both offer your prospect something, and that item or service should be of particular value to them.
What good would it do to offer something that they could just get anywhere or that wasn’t worth their time?
We’re also going to capture some information with our tripwire, but here’s where our funnel type diverges from a lead magnet.
By offering your lead a low-cost, but the immensely valuable item, you’re actually making a small, but significant sale.
Let’s turn to the ever-popular web hosting service GoDaddy for this one.
You’ll see on their front page that they often offer, for example, incredibly inexpensive domain name registration.
Or email marketing under $10.
How do they do it?
While these offers generate revenue, they serve a much higher purpose: turning a cold lead into a hot sale.
By signing up and providing their billing information, the new customer can then be extended the brand’s core offer.
And as we’ve seen before, existing customers are far easier to connect with (and sell) than otherwise would be the case.
Though a tripwire might seem deceptively simple, it creates a relationship between your brand and your customer.
And with every relationship, there’s that sense of trust and loyalty that you can build upon even further.
Protip: One really clever way to create a tripwire is to separate a piece of your core offer to use as the item. In the case of GoDaddy, they could have chosen to have an entire core product of domain registration and hosting… but instead, by dividing the two, they now have more flexibility.
Core Product – $27-$97
When your customer makes a purchase from you, what are they really buying?
I don’t mean the actual item that they’re purchasing, but the intangible benefit they’re getting from it.
What solution is it bringing to their lives?
This is the essence of a core product offer.
And of course, you wouldn’t likely be in business if you didn’t have a core product in the first place.
But defining that core product, presenting it so that your lead sees and feels that experience, is a whole other matter completely.
Many brands (especially some of your competitors without your knowledge of funnel building) will often jump right to this stage without any supporting pieces.
Regarding their marketing strategy, they’ll have one product or service that they throw out, hoping traffic will make its way to the offer and that the customer will see in it what they see.
There’s no story, no solution, no benefit.
Take a look at Google, for example. Their core product is the entire searchability experience.
Yet, along with that product, they have a flood of other marketing pieces to bring traffic to the core.
In their case, they use everything from lead magnets to social media channels to code contests.
Then that traffic, albeit now converted to dedicated followers, goes out and picks up a $100 Android phone.
Google then controls their entire search experience (with everything that comes along with that, from data to display ads).
For our purposes, and the main takeaway here, is that your core product is a single, but a well-defined piece of your funnels.
And this piece needs as much relationship-building, maybe more so, as any other piece of your funnel.
Protip: When you think of a core product in a sales funnel, consider how the product fits into lives of your targeted demographic. This will help you define and better communicate the benefits the product provides them.
Profit Maximizer – $97-2k
If the core product in your sales funnel is your entree, your profit maximizers are your bread and butter.
For this sales funnel piece, we’ll be turning back to Amazon to understand how cross-selling increases average cart size.
By drawing in a prospect with a sale item, for example, the brand is then able to present a bunch of related items that the customer might be interested in.
And for Amazon, this part of their sales funnel has been wildly successful, fanning the flame of an already successful business.
(If you’ve looked around recently, this strategy has generated so many results, that almost every big e-commerce website has added a similar feature).
For your sales funnel, the idea works the same way. By giving your lead a choice to purchase add-ons to your core offering, you’re taking your funnel and adding a simple idea.
In a sense, you know your prospect now that they’ve purchased your core product.
You have a sense of their values, their goals, their plans.
You also have some of their contact information and maybe enough to create a demographic profile.
Another great example of profit maximizers come out of the restaurant industry.
Your favorite place to eat might offer you a delicious and reasonably-priced steak… but then they get you on the expertly crafted new cocktail.
True profit maximizers.
Protip: This sales funnel type really does work well for physical products as well, so don’t leave it out of the mix if you’re selling tangible goods. Even brands like Walmart and Target use the concept to increase your cart (and their revenue) by the time you get to check out.
High Ticket – $5k+
While high ticket sales funnels basically operate within the same rules of any other sales funnel, there are some special considerations to keep in mind. After all, when a customer is spending thousands of dollars, they often have a different focus.
For our example today, we’re going to look no further than our own article on Winning International.
This article is simply a must-read for a well-integrated, seamless sales funnel that was truly a success.
The efforts are nothing short of spectacular. But we’re going to drill into the high ticket part to see what we can find.
Funnels like these rely on two tools from our toolbox: limited access and a soft touch, especially at the “Thank You” page step.
Because of the product, in this case, is a coaching session, we can reason that the offer is not a mass-produced, everyone-can-attain-it type of product or service.
This is often key in many higher ticket sales funnels.
Think of it as almost the opposite of our lead magnet (but still providing huge value).
Instead, the high ticket item is an intimate offering that goes beyond say, a video series (which is also considered in the article).
The other aspect to zone in on is the video thank you page.
This page isn’t about a hard sell but seeks to present an offer as a “right fit” for anyone interested.
Higher ticket items truly rely on this soft touch to further solidify the relationship and make the sale.
As you can see by the numbers from this campaign, even a few sales equal out to plenty of revenue.
Protip: One interesting set of industries to pay attention to for high ticket sales funnels is the luxury industry. From watches to niche computer brands, these companies provide many good ideas you can borrow from.
So What Now?
You need to realize, this isn’t “gospel”. This is simply a guide to building your value ladder when it comes to building out sales funnels.
However if you’re just getting started, this is a good guide to plan out your products and services and where they fit into your portfolio.
Which sales funnel type do you find works the best for your niche? Which products do you currently have in your value ladder?
Let me know in the comments below!
Thanks for reading Funnel Pricing Breakdown: Discover The Common Price Points which appeared first on ClickFunnels.