(Note: This is Part 2 of a 2-Part blog series. You can read Part 1 here)
Most successful online businesses have solid marketing funnels that help them acquire leads and get more customers by converting those leads.
Well, because they work great with both physical and information products!
As someone who’s been managing your own business for years, you might already have a marketing funnel in place. You might even be disappointed in its poor conversion rates. And you’re hoping to find the solution to your problems online…
Or worse… You might not have any funnels at all!
But don’t worry… After reading this blog post, you’ll know the importance of funnels and how one super funnel can help you sell your information products online.
I’ll be sharing with you what has worked for me in my years of experience in digital and email marketing. A super funnel that has helped me grow my business and a lot of my clients’ businesses as well.
Here’s my secret: Tripwire funnels.
What Tripwire Funnels Are and Why They’re Important
A lot of marketing experts such as Ryan Deiss swear by the unique power of tripwire funnels. It’s definitely one of the most powerful marketing funnels and it even works great with information products. But how exactly do they work?
Here’s how tripwire funnels work:
- You sell an irresistibly low-priced product to a targeted audience
- You up-sell those who buy into a high-priced core offer
It sounds simple but it really works! Simply converting a lead into a paid customer at a very early stage can help you increase their value to their business.
Even if they purchase a $5 tripwire offer from you, it’s a micro-commitment that makes them more likely to buy a higher priced product from you.
Combined with strategic email marketing, you can get segment customers and offer products that are relevant to them as well!
Tripwire funnels can help your business in three major ways:
- They convert non-buyers into first-time buyers
- They highly encourage repeat purchase
- They can also segment people based on their relevance to your product-line
As you can see, tripwire funnels do more than get leads and sell your information products. They actually help increase each customer’s value to your business. In that way, you’re looking to sell not only your current information products but anything you’d have in the future!
The Core Components of a Tripwire Funnel
The tripwire funnel is literally the same system companies like McDonald’s, Starbucks, and Amazon use to dominate their industries. It has been around for a very long time and that’s why it’s the most powerful funnel you can use to sell online…
The best part is that they work great for any business!
- It works for physical products.
- It works for services.
- It works for information products.
It builds each and every customer’s value to your business. You don’t just get more customers, you get more high-value customers.
Wouldn’t you want customers that would buy any product you offer them in the future?
Below are the several core components of a tripwire funnel:
1. Lead Magnet
A lead magnet is a free, high-value content that acts as a “bribe” to get a prospect’s contact information. This is an important step in your funnel since you need their email address for your email marketing.
But how do you create a good lead magnet? Think of something specific. Something that will solve a problem that your prospects might be facing. But it must be related to your other offers as well.
2. Tripwire Offer
Now, this is the most important step in your tripwire funnel. After getting leads from your lead magnet, your tripwire offer will help you segment your email list. But the most important purpose of a tripwire offer is converting leads into paid customers in a snap, not earning a profit.
That’s why the best tripwire offers usually cost less than $20 (some recommend $7 – $10).
I repeat: Your goal is not to make money off tripwire offers!
Some successful businesses even have tripwire offers at a loss just because having a list of buyers is that important…
Your tripwire offer needs to be:
3. Core Offer
This is your bread and butter offer.
Your core offer should have an undeniably higher value than your tripwire offer. It should solve the main problem your customers are facing and explain the solution in detail. Stating the obvious, it should also be priced higher.
A lot of businesses struggle with poor core offer sales simply because they’re selling to cold leads. In the tripwire funnel, you’ll be selling your core offer to those that bought your tripwire offer.
No, you won’t be selling to cold leads. You’re selling to paid customers already.
Another good idea would be to use product splintering to maximize your profit. If you have one core power-packed core offer, you can potentially make more money by selling each module or chapter as one core offer or maybe a tripwire offer.
You can start earning profit in this stage but (believe it or not) some of the most successful business only earn profit on the next stages.
4. Profit Maximizer
Do you wanna know why most businesses are destined to fail?
They don’t have tripwire offers. But most importantly, they don’t have profit maximizers. They’re playing the hard game of selling cold prospects their high-priced core offer. Yes, good luck with that…
Profit maximizers are exactly as they sound. They maximize your profit and help bring in more revenue to your business.
Here’s my favorite example of a successful company that relies on profit maximizers:
“Did you know that McDonald’s make barely anything off of their burgers?
They spend $1.91 in advertisements and construction to get a person in the drive-thru.
They earn $0.18 profit every time someone orders a $2.09 burger.
You might be thinking, “How would a giant fast food chain grow fast with a $0.18 profit per burger?” The real magic lies in their profit maximizer: an upsell on fries and coke.
They earn an extra profit of $1.14 every time someone buys the upsell on fries and coke.
A total of $1.32 profit! (7.3x their core offer)”
Isn’t that cool? Profit maximizers can be anything that’s sold after the core product. With these, you can multiply the profit you earn per paid customer.
5. Return Path
The return path can help you increase the number of transactions per customer. You’ll be using email sequences to offer new products or even products they didn’t buy the first time around.
This is basically the secret to having customers buy your products over and over again. Of course, you need to segment your email list first with a powerful software like Infusionsoft to pull this off. But once you have a solid email marketing strategy in place, you’re golden!
Why Segmentation Matters
Segmentation is important because your buyers aren’t all the same and they’re most likely in different parts in the sales cycle. This is super important when it comes to effectively communicating with each of your prospects and building a personal relationship with them.
If you don’t even bother to segment your email list, you’re honestly committing marketing suicide…
Imagine sending every email to everyone on your list—even those that aren’t relevant. There would definitely be a lot of negative effects such as:
- A weaker relationship with your prospects
- Emails with low relevance to most of your prospects
- Lower open rates
- Lower product sales
Trust me, only beginners fail to segment their email list. I used to be guilty of this as well and I highly advise you to avoid what I did in the past if you want your products to sell.
You need a powerful software to segment your email list based on their behaviors, not just their demographics. Something like Infusionsoft or ActiveCampaign should work perfectly.
In fact, I highly recommend using Infusionsoft since it’s no doubt the most powerful software to run tripwire funnels. Trust me, it’s work great for me for years…
If you are already using Infusionsoft, you’ll love my FREE Video Training.