Sales Funnel – Passive income put in system

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How Sales Funnels Will Create Passive Income for Your Business

How would you like to set up a single system that collects email addresses from your prospects and then markets them? We are talking about a sales funnel that you can create for any market (almost).

You do not need special skills or technical understanding. This you can learn yourself in a few days. But you do need a product or service that you can sell.

If you have a product or service to offer you just need to set up your funnel and it will work for you. 24/7. However, many will not do this. For someone it may seem too easy, they do not think it will work. For others, it may seem too complicated to do.

The best sales funnels in use today are all tested and optimised to achieve maximum profits. You might think it does not matter if you earn $10,000 or $20,000 per prospect – it is profit after all, right?

The better your sales funnel earns money, the more money and time you can spend on promoting your product or services. If your sales promotion only generates a small amount of profit, you can only use methods that are free to get traffic. If not, you’ll lose money.

However, if you have a sales funnel that generates good money, you can reinvest a portion of this money in marketing so you convert even more prospects to even more sales.

A good sales system will build solid relationships with your list so that they open and read the emails from you. And best of all, you will be able to sell to order, just by sending out an email.

If you do not measure and test your system then each sale will be random and you will not know why or how the sale occurred. You will miss out on a lot of profit if you do not measure the performance, much more than you imagine. You’re not only losing your profits at a higher conversion rate you’re also missing out on the profits you could get by reinvesting more of your profits to get more traffic. Think about it!


Remember to measure (track) your results

What you need to know

EPCEarnings Per Click. This is the money you earn versus how many people have clicked to get to your page. So if you earn $2,460 for every 100 visitors, you earn $24.60 per click. 10 clicks = $246, and 100 clicks = $2,460.

Why is it important to know your EPC? If you know that every time someone lands on the website then you know that you’ll earn $24.60. Then you will know exactly how much you can pay per click to your website and still have a profit.

Your EPC may include the money you earn instantly when someone gets into your sales funnel, mainly from your one-off offer on the thank-you page. And if you measure this over time then you will know what your EPC is for your customer overall in the customer relationship. Also known as LCV.


LCVLifetime Customer Value. The average value of what a lead is worth in total. This figure will be much higher than your EPC.

Once you know how much profit you earn, you know how much you can spend on promoting. So let’s say if we bring all the purchases to an average customer and your average customer is worth $500, -. This means that you can spend money up to this amount to get yourself a new customer and still earn money.

CPL – Cost Per Lead. How much it costs to get a lead into your sales funnel. If you pay $5 for each person you send to your squeeze page and 1 out of 5 (20% conversion rate) gives you your email address then you pay $25/lead.

Important: LCV – CPL = Your Profit. If your total customer is worth $500, and you pay $25 per lead, then your profit is $475.

Break Even Point – (zero point turnover). This is the place of sales where you break even. You can calculate where this point is when you know what your CPL is and what is the average conversion rate on each offer you provide in your funnel. Depending on what things you promote, your conversion rate, and your CPL, you can break even immediately by selling enough of your one-time offer that comes after visitors have signed up. Or you can break even a few days after when you offer the next thing in the funnel, or it may be after that again.

By knowing when you reach the Break Even Point, you will know when you get back the money to acquire the leads and you will know when you earn money on an average lead.

The sooner you break even, the sooner you can make your business grow because you can reinvest your money faster so you get even more leads. Even if you want to reach the break-even point as quickly as possible, it’s important that you do not overcome the leads with offers.

The best method to go to break even in the shortest possible time is to have a unique one-off offer that they receive once they sign up. This offer must irresistible. You must provide something that has a lot more value than what the customer pays for it. You can test this with a countdown clock at the offer, it can often give more conversions when people feel they have to buy before the offer disappears. Test with and without and see what gives the best results. Another tip is to provide “money back guarantee” within eg. 30 days. It is not always possible, but it creates great security from buyers when they know they are protected by such a warranty. Then they have nothing to lose, right?

All these numbers are essential to know if you are to succeed. Knowing and improving them is the key to having a successful sales funnel because you know exactly what you can pay for a new lead and still earn good money. On the other hand, guessing these numbers or not knowing what they are is the fastest way to fail with your sales funnel.

Do you know when you break even?

Sales to break even

Landing Pages

As you know, the goal of a landing page is to get the email address in exchange for what you give away for free (your freebie). But a good landing page does more than that – it also ensures that you only attract prospects that will be interested in what you have to offer and the products you promote.

So if your target audience is men who recently went out of a long-term relationship and are looking to date again, then your landing page will talk directly to them – not men who have been single for a few years or to men that are in a relationship. And if your target audience is people who go on a luxury holiday, then your site will talk directly to that market and exclude people who are going on a cheap charter vacation. It can often be useful to write on the page who it is for and who it is not for – be direct. Maybe also in the ad you use to get traffic to your landing page. This may not always work, but test and fine-tune it to make it work the best it possibly can.

And because your list is built from this landing page, it’s very easy to test and customize the page to maximize conversions.

The most important thing on the landing page is the header. It must be so compelling that visitors stay on the page to read the rest, even if they are out late or they are making dinner.

The subtitle clarifies the heading and tells what the person will do next. It may add that it is urgent with a decision to put some pressure on the person. This may seem like a lot, and it is! To get this right on your landing page will be the difference between 20% conversion rate and a 50% conversion rate, so take your time to make it work the best – Test!

Conversion rate

Which would you choose?

Conversion rate


The text on the submit button has one function – to make people press the button. Something that proves to be effective as you can test against other variants is “click here to download”. Also, make sure that the button stands out from the rest of the content on your page so that it can’t be avoided.


Items you can test:  Different colours, different text and different sizes.

Your freebie

This is what you give when people opt-in. This must be something that is very valuable to them. It can be something that relieves pain, solves a problem, satisfies a need, helps them achieve a goal, but whatever it is it must be something that they really want. If it is something that is so good that they would even pay for it, then you’re most likely a winner.

You must make sure that you do not confuse the prospect with this. If what you give has 100 different benefits, it will only seem confusing. Instead, try to focus on one big benefit that this will give.

Thank You page

On this page, you offer a unique, irresistible offer that they only see once. It’s time-limited and only available at this time, buy now or never get such an offer again type of offer. The value must be much more than the price they have to pay. As an example, you can sell a popular product that costs $900 for just $90.

An option is to offer a trial month on membership if you offer this. Try one month for $1 and then it costs $79 per month. Or 1 month free of charge (but make sure they have to enter payment information).

Remember, you want to promote something on the thank you page because your goal is to break even already here. If you advertise then you want your earnings from the thank you to pay for your advertising and that the rest of the sales funnel is pure profit.

Split-test everything

Split-test your opt-in page and your thank you page. Split-test what you offer, the headings, the text, etc. Test small details like the colour of the button, and please try a completely different heading. It is very important that you test one thing at a time. For example, you can test two landing pages that are completely different to each other, so choose the one that converts the best. Then you continue to test by changing one thing at a time. Colour of the page, video vs image, etc.

Most importantly, these tests give you specific data you can use to improve your landing page. If you change the headline and use video instead of an image while moving the button to the right instead of left, all at the same time,  then you will have to guess which one that improve the conversion rate. But if you test only one of them at a time, then you have something concrete to deal with.


It is important to understand that there is no free traffic. You pay for traffic with either your time or with your money. And the sooner you can pay for traffic, the better. Because it is only then you can start to scale so much faster.

No matter whether you pay with your time or money, there are smart ways and not so smart ways to get traffic. It can be very frustrating to get the traffic yourself. E.g. If you start blogging, you need to get people to your blog so you can get them to your opt-in page and this takes time and requires a lot of work. It is definitely worth it; just remember that it takes time before you’ll see results of all the work.

It is advisable to find existing traffic sources use them.

If you buy traffic, use the money it takes to get good, relevant traffic. Cheap traffic does not help if it does not convert. It is often that the less you pay for the traffic, the poorer quality it is, but there are exceptions. Facebook, for example, can be a resource for affordable traffic that converts well.

For free traffic, social media is certainly the best. Post often and everywhere. Important that your posts are of high quality and provide a lot of value to the readers. Find relevant pages and become a member of relevant groups. Contribute actively and, when appropriate (and allowed), link to your opt-in page.

If you can, collaborate with other people who have an email list and agree on some deals. Pay them to place a banner on their site or to recommend you to their readers. Guest blog and offer your freebie at the end of the post. Offer to pay a fixed sum to people with large mailing lists to promote your freebie to their list.

There are countless ways to get traffic. Find your methods to suit what you offer. Keep in mind that when the sales funnel is set up, you can spend almost all the time getting traffic because the rest will work automatically.

This means that when you have money to pay for traffic, this sales funnel will almost work by itself. You let the ads run and the rest goes automatically.

Then you can invest your time in building a new sales funnel. How many sales funnels do you have?

Send emails to your list

You will, of course, put all the emails in a series of autoresponders so that the entire process goes automatically. When people opt-in to your list, they will receive the emails you have set up, in the time interval you have determined.

Make sure your freebie is included in the first email they receive. In addition, it’s okay to thank them for opting in. Do not be too formal – show off some of your personality from the first email.

Ask a question – “What do you need help with?” “What do you mean …?” Write the email as if you are writing to a friend; short, personal, straight to the point, etc.

If you send emails where you promote something, send another email the day after and ask if they received it. It’s an effective way to double the response to your original email without promoting it the same twice.

When promoting a product, it promotes several times because it shows that it is a product you really believe in and that you not only promote something to earn some quick cash. In addition, there is a greater chance that those sitting on the fence will jump if they are reminded of it several times. And if you additionally offer a discount that only applies within a time-limited period then it can be very effective.

Before promoting something, send emails that have “content” without promoting anything. For example, you know that in 3 days you will sell a program that resolves a specific issue, talks about the problem in advance. That makes them think they want a solution to that problem and BANG! Over the next few days, you offer the solution.

This is especially effective if you suggest a solution in your email. For example:

Email 1: Spots are absolutely terrible for self-esteem. One way that can help improve your skin is to use this method – This may work for someone.

Email 2: Show more negative things about unclean skin, offer another possible solution that may work for someone, and let them know your favourite solution will come tomorrow.

Email 3: Remind them of all the negatives with skin cleanliness, but tell them that it’s no longer a problem because you have the solution and show it to them.

Of course, this may be more than just three emails, but by presenting other solutions than just your solution, you create trust and credibility. Remember to not bombard your list with different offers, give them lots of value in the form of free tips, great articles, etc. Sometimes you can recommend a video to suit your audience and niche.

Measure and test everything. Measure where traffic comes from, test conversions on the opt-in page and thank you page, test which emails are most effective, etc. The better you test and measure the more profit you will earn. It’s that simple. Find a solution that suits your use so that you can measure and test effectively because it can make a big difference just that. Improvely and Hubspot are examples of good solutions for this and having a WordPress website is a great solution too, as you’ll have full control of it. There are many others as well. But remember that without measuring, you will only guess and you can lose a lot of money on it.

So, this is it. Now I hope you have an idea of how to put together a sales funnel. I’m sure there are some things I have not included here that could have been included. But most important of all is that you get started and try it out, it’s the only way to learn.

Are you going to create your own sales funnel in the coming weeks?


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