What's a Lead Funnel? 6 Reasons Why You Need to get One Immediately

What's a Lead Funnel? 6 Reasons Why You Need to get One Immediately

“How to get leads in Arizona” or “Buy types of leads Arizona.”

Is that what your search history looks like? It doesn’t have to – there’s a better way to get leads, and it’s cheaper (and smarter).

Lead funnels or sales funnels are the most efficient way to get high-value leads, and they’re applicable to every type of business.

You need to spend the time and money setting them up, but once you do – you’ll get more conversions, and probably save money in the long run. Want to learn more and get more leads for your company?

Read our guide below.

What is a Lead Funnel?

If you know what a sales funnel is, you know what a lead funnel is. There are subtle differences, but really they’re the same thing.

Your business may not profit off of sales. You need leads or clients – but you’ll get them with the same tactics as a sales funnel.

Let’s dive into the definition of a lead funnel a little bit more.

In plain English, a lead funnel is some sort of form or page that gathers information from someone who you hope to turn into a client.

It’s that’s simple. Your lead funnel could be a “subscribe to our newsletter” button your homepage, or it could be a form on Facebook.

The Parts of a Lead Funnel

A funnel starts big and gets smaller at the bottom, right? That’s how your lead funnel works too.

The funnel is made out of about four steps.

First, you have the entrance to the funnel, which is where you’re building awareness about your product/service.

Next, you build interest. Classically the entrance to your funnel leads to a page that builds interest.

Third, you have a decision stage. This is where the client decides if they trust you or not.

Finally, you have the action stage – which is conversion. It’s what we’re all aiming for in our business.

Want to learn more? We’re breaking down those steps below.

Lead Funnel Entrances: What and Where are They?

There are new types of funnel entry points every day. Every time an entrepreneur has a creative idea that attracts attention – it could count as an entrance.

If you’re a marketer at heart, this is the most fun step to set up.

Here are some commonly seen types.

1. Facebook Ads

Let’s say your business does hosted servers for businesses in Phoenix. You know that you need to target business owners – right?

So you set up a Facebook at that says something like “Want to Increase Your Website Speed 40%?” and it leads to a page describing your services.

Every time someone sees this ad, you’re building awareness about your product or brand.

If they click on that ad, then they’ve expressed interest, which puts them into step two of the funnel.

2. Interactive Offers

If you keep up with SEO news, you know that both Google and consumers love a free tool.

That could be something as simple as a quiz or a free trial of your services. Sticking with our previous example – your quiz could be “test your bandwidth speed with our free tool.”

Now you’re capturing peoples attention and giving them value – things that everyone likes.

If they take your quiz, they’re expressing interest in your services or at least in your tool. You can use marketing on your tool pages to show how your service outranks what they’re using now.

3. Referrals

As the oldest form of awareness techniques out there, you shouldn’t take credit away from referrals. After all, 84% of people trust other peers more than they trust the official word of a business.

If you have a happy client, create some sort of incentive for them to bring you a new customer. Now you have new eyes on your company that you wouldn’t have had before, and this lead is warm.

Stage 2: The Interest Stage

Okay, so you’ve got a potential leads attention and gotten them to click through the ad/tool/referral link. What’s next?

You have to keep them interested in your product or service. How do you do that? With a high-value landing page.

Each landing page that brings step-1 leads in should have three things.

  1. An obvious action
  2. A description of the value
  3. A short description of who you are

Your landing pages don’t have to be complex. You need them to tell the person what your company can do (why they need you), why they should trust you, and what action to take next.

One mistake we see on a lot of “Interest” landing pages is too many calls to action. You don’t want to confuse this new lead – don’t give them too many options.

Encourage them to take one – maybe two actions. If they take either of those actions, they’ve moved on to the decision stage.

If they don’t, then they won’t continue through the funnel. This is a good thing. Your services won’t be the perfect fit for everyone who comes to your landing page.

You want high-quality leads – not random ones. Trust that the sales funnel process works and know that fewer and fewer people participate in each step.

Step 3: The Decision Stage

When someone gets to the decision page, they’ve already passed through two steps of your funnel. That means they’re interested in how you can help them and they’re a warm lead.

It’s your job to turn them into a conversion, with what you offer in this step.

Some people offer freebies on their decision page. That may be a white paper, a printable, or a free consultation.

Other people skip straight to the sales offer and give the person different options.

Often you’ll see persuasive language on these pages, like “If you want faster internet speeds, click here to schedule a consultation”.

More aggressive pages even have popups when they try to leave the page like “are you sure you don’t want to give faster services to your clients?”

The key to a converting decision page is to know your audience. If your audience doesn’t like being told what to do (The Baby Boomers) – then aggressive tactics aren’t going to work.

Older generations need to be convinced that your service is worth their investment. Younger generations want you to make their lives easier with a service – and if you can do that, they don’t mind paying for it.

The Final Stage: Action

The minute that someone takes the action you wanted them to, be it buying a product, giving you their email, or scheduling a consultation – you’ve won.

They’ve gotten all the way through your funnel and you not only have a lead – you have a conversion.

But the funnel doesn’t end there. You need to nurture that conversion so that they convert again and again – then hopefully bring you more leads.

That’s called nurturing leads – and it’s a whole different subject.

The Benefits of a Sales Funnel

After reading the description above, you’ve probably figured out that setting up and maintaining lead funnels are a lot of work.

Why should you spend the time and the resources to set one up? Here are a few reasons.

1. They Get You Better Leads

If you’ve ever paid for leads, you know that you don’t necessarily get what you pay for. They may be someone who has googled your service, but they had no intention of buying.

When you set up a sales funnel, you filter those people out. In fact, a multi-stage filter is a better visual of what a sales funnel does.

If you’re not using a sales funnel and trying to nurture all the leads that come to your website, you’re wasting your money.

Save your money and only nurture the ones that matter – the ones that will convert.

2. They Give You a Chance to Remarket

Let’s say that someone gets to the decision page of your funnel and they don’t convert. Bummer – but hopefully you got their email before they click out (in the second step).

That means that you can keep marketing to them (not excessively) until they’re ready to buy. Maybe they don’t have the budget for your services now, but they will in six months.

You have their attention and their information – so you can be ready to help them when they need you.

3. They’re Customizable

Most businesses offer multiple types of products or services, right?

You can create a funnel for each type of service or product you offer. That’s another way to make sure you’re only getting worthwhile clicks and leads in your funnel.

For example – maybe one business doesn’t need a hosted server, but they could use your managed IT services (example).

You can set up your funnel to target those people differently. Or you can make that one of your two (max!) actions on your landing page.

4. It Gives Your Content a Purpose

You spend time and money (or you pay someone to spend time and money) creating content for you.

Why do you have them do that? Because you need to have a social media presence for your reputation? Yes – but it’s also to collect leads.

If you can put a specific call to action that gets someone into your funnel on your content, it’s going to be a lot more efficient than something vague.

Like a blog post about what lead funnels are and why you need them would create some sort of call to action that will help you create your own funnel.

You’re spending the money on the content creation anyways, use funnels to get some of that spent money back.

5. It Gives People Value

Let’s say that you decided to create some sort of tool as a part of your lead funnel. People use and get value from your tool. Now they not only know that you can improve whatever they were searching for – but they appreciate you.

They know that you didn’t have to spend time and money creating this free resource. So if they’re the right lead, they’ll be more likely to give you their business than someone who didn’t give them something first.

And tools aren’t the only thing you can use to deliver value. Many businesses do free e-books, printables, or even coupons on their landing pages.

Be creative and test different options out. No one gets it right on the first try (unless they’re really lucky).

6. It Works By Itself

Finally, and let’s face it – the most important benefit of lead funnels is that they maintain themselves. You can automate every single step – which means you can create passive income.

That’s what we’re all working towards, right? Imagine going on vacation and coming home to 12 new leads that you didn’t have to lift one finger on your time off for.

Yes – you still have to nurture them afterward and follow up, but the day-to-day process is work free.

You can even have someone set up your sales funnel for you, in fact, we’d suggest it. Sales funnels can be finicky things, and you need someone who understands the importance of each step.

If you don’t hire a professional to help you, you risk wasting money on the wrong CTA’s and landing pages.

Creating Your Lead Funnel

Are you feeling a little overwhelmed? That’s okay – a lead funnel is a large concept to wrap your head around. But you’ve probably already been doing the steps – just not together.

Need to read a little bit more about the concept before you commit? That’s fine – here’s another helpful blog post.

Got a handle on the concept and want to take action, now? Convert here.

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