What Is a Sales Funnel and Why Is It Important for Your Success?

Over the next 10 days i will be writing about the importance of a Sales Funnel. Today’s article is for Marketers who are relatively new to the concept of sales funnels and want to learn how to create one that will effectively drive the success of their business.

What Is a Sales Funnel and Why Is It Important for Your Success?

Sales Funnel

The term ‘sales funnel‘ is an important concept for all types of businesses. Your sales funnel is what leads customers to purchase your products or services. As they pass through the funnel, they transform from random prospects to qualified leads and, finally, to buyers. As the funnel narrows and prospects get to your sales team, they are already primed to make a purchase.

The Sales Funnel Explained

The sales funnel is a sieve that leads prospective customers through your sales process. It casts its net wide and then gradually weeds out unqualified prospects that are not likely to buy your product.

As the term ‘funnel’ suggests, it’s wide at the top (the entry point) and narrow at the bottom (the point of purchase). At the top, a sales funnel attracts casual website visitors through a special offer that lures them in. You then use marketing techniques to offer them other deals. This gives you a chance to gather information about your prospects and further qualify them.

Why Businesses Use Sales Funnels

Sales funnels are important for a number of reasons. First, they make the sales process more efficient. Since only qualified buyers get to the end of the funnel, your sales team doesn’t waste time dealing with uninterested prospects who are just kicking tires.

A good sales funnel helps to make your sales process more predictable. Sales are never fully predictable, but when your sales process is organized in a standard, systemized way, you can arrive at a good estimate of your ROI.

Finally, a sales funnel helps you track different metrics at different points of the process. It’s organized into clear steps so that when there’s a problem within your funnel, you can troubleshoot and tweak accordingly.

An Example of a Sales Funnel

Here’s an example of a sales funnel in action. Imagine that you own a business that sells supplies and information about rooftop gardening. You create a blog about green roofing that includes a form on the sidebar where visitors can sign up for your list and receive a free eBook on the topic.

Once a visitor downloads the book, you begin marketing to them through emails, offering them exclusive content, helpful tips, and special offers. The offers gradually increase in price, leading them to your main product, a comprehensive collection of rooftop gardening tips with a fairly high price tag.

At first, visitors read your blog for information about rooftop gardening. At that point they may just be considering the feasibility of starting their own garden. Those who sign up for your list are truly interested, and the ones that jump on the email offers are seriously looking for a way to start a rooftop garden. The people in this segment of your list are the most likely to buy your kit, and therefore you begin marketing the kit to them.

Drive Them Away

An important concept to remember about the sales funnel is that you don’t need to appeal to everyone. You only need to focus on those who are truly interested in your product. When you lose subscribers, this is a good thing (as long as it’s not too many) because you don’t waste your time with those who will never buy. That’s the magic of the sales funnel in action.


  • Do you already have a sales funnel?
  • If so, compare the amount of sales you’ve made from your sales funnel vs. products you’ve sold through other methods.
  • If you don’t have a sales funnel already, start thinking about what part of your business would benefit most from creating one.
  • Review the graphic – What Happens In Your Sales Funnel
  • Use the Sales Funnel Planning Checklist throughout this course to make sure you’ve completed all the necessary steps.

To your success

Dennis Koray
Skype: denniskoray
email: info@denniskoray.com
Dennis Koray

I'm a german guy born 1979 in Cologne who has always been looking for ways to make money online. I never liked working for someone else, so i started my first business with 24 and never looked back. I went through lot of failures, but finally cracked the code after years of struggle. I love to sleep in, love to eat, love to inspire people to follow their dreams. My favorite question to ask someone is: What would you do if money wasn't an object? I work from home full time and coach people on how to build an income with nothing more than a computer and an internet connection. To learn more, check out my "About me" page.
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