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A product funnel is one of the most crucial factors in any online Internet marketing business. But what is a product funnel? Basically it is a place where people start at the very top of the sales funnel, generally by signing up for a complimentary gift or purchasing a cheap front end product, ahead of moving towards a higher-cost product which you promote.
Usually people within Internet Marketing will need to build a complimentary gift like a free of charge report to or PLR right product to build an opt in list. If you are looking for a mailing list of qualified subscribers who are interested in your topic this is by far the best way to do it. A complimentary report or product could be a number of tips, a step-by-step procedure to achieve a particular process or a teaser of a product you are currently promoting.
Then, promote a low-ticket front end product; this might be an ebook for $10. You need to offer the prospect a particular product which is not risky to your potential customers, so they taste your content first, ahead of spending far more money with you. As a rule, about 5% to 10% of your potential customers who subscribe to your complimentary gift or report will purchase your low-cost front end product if you follow up with them with well written emails.
Next you need to promote a high-cost product. For this I usually build an advanced home study course or membership site. Usually 20% to 30% of your buyers which purchased your initial product will want far more highly developed information which your high-cost product could provide. You could go a step further than this and provide a coaching program to buyers of that high-end product. That is where the real big money is found.
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