So what if your funnel is set up in a way that's actually costing you sales without you even realizing it ? I was in Cabo San Lucas on a retreat for the Mixer Mind .
If you've heard other guests like Marisa Corcoran , Brynna McGowan there's been a handful of ladies from this amazing Mixer Mind and I had met somebody there who was dealing with exactly this funnel issue , and today I'm going to break it down for you .
By the end of this episode you'll learn the funnel mistake that might be draining your profits and how to fix it to increase conversions and make more sales .
So , koidra , I'm actually a little bit jealous that you got to go to Los Cabos without me this time A little bit difficult to organize with kids and stuff me this time A little bit difficult to organize with kids and stuff . But tell us about what happened at the retreat and this lady that you met and what was going on with her funnel .
Random fact I learned in the airport in Spanish it's referred to as Los Cabos , whereas most folks in the States say Cabo . So , there's actually two pueblos , two like towns , if you will .
One is Cabo San Lucas , and that's where all the famous celebrities live and all the more crazy partying goes on , and the other is more chill , san Jose , and that's where we were . What'd you ask me ?
So what happened with her funnel ? What did you discover in your little chat with her ?
That's right .
So she knows that I'm a Facebook and Instagram ad manager and she had sat next to me on a van and asked me about managing her ads and the first thing that I say is , well , in general , it's good if you have a funnel that converts at 2% , and so I began to ask her how her funnel stats were and if it was converting at 2% , because if a funnel is
converting at 2% , generally there's enough profit in there to hire an ad manager .
And if you're working with somebody like me , who spent like three years coaching , as in consulting , high earning , like online course creators I mean , like you know , high six figures , low seven figures a year Then , like when I manage your ads , I also touch upon improving your funnel a bit .
So how many people were going through her funnel and what was her conversion rate at so here's the thing as we go through these stats , she was leaving a lot of money on the table , and I'll tell you why after we go through the stats and get to the funnel structure .
But 300 people had gone through her funnel and only three converted and only three converted , which resulted in a not too shabby 1% conversion rate . Okay , not bad , not bad , but we are typically looking for closer to 2% or even above 2% , right ?
Right , 2% or higher would be much better . So the first thing I did was I explained this to her , and then I helped her understand her earnings per lead .
Break that down for us . What does earnings per lead mean ?
Earnings per lead is EPL yes .
I meant break down the math .
So the whole point here is , if we're going to run ads traffic through a funnel , we need to establish how much money we're making for each lead , right ?
Because when you run Facebook or Instagram ads ads , every lead is going to cost you money , and so you want to play in that what I will call profit gap , where you're making a amount more money per lead than it's costing you to send that lead through your funnel .
Still , I believe her offer was 397 dollars and I multiplied that by three purchases , which equaled $1191 in revenue . And so then I took that revenue and divided it by the 300 leads that had gone through her funnel to get $3.97 earning per lead .
Okay , so that's good , that's bad , that's kind of .
That's a little low .
A little low .
I mean , I cannot guarantee how much lead costs will cost for anyone because it differs highly from business to business , from niche to niche especially , but I'm generally not happy if I can't get like lead costs under $3 , you know , and like a lead cost around $1.50 is really hitting a home run .
Of course there's plenty of other elements like how good is the messaging , how good is the landing page , but we'll keep it pretty straightforward for this call , since this is our conversation that I have with this lady In the van on the way to the catamaran tour of the Mixer Mind . So , or maybe it was after . I think it was after actually .
Either way , our favorite answer is it depends , it depends right .
So to understand why she was leaving so much money on the table and how she could easily increase her conversion rate to 2% or higher , we got to go through the funnel structure . So what did her funnel start with ? It started with a checklist , and I guess now here's where I'll clarify .
People were buying in the funnel , but they're buying off of the back of a training in that funnel , right ? So this training would be your typical pre-recorded let's call it evergreen webinar , if you will . So , people were watching that training and then they were buying off the back of it .
But here's the problem the funnel was actually built around a separate lead magnet or checklist , and then this training wasn't even introduced until the third or fourth email of the email sequence .
Oh , no , yeah , so it was buried . It was buried in the email sequence .
And people didn't even know the training was coming because they opted in for a lead magnet Right .
Yeah , so they didn't necessarily even know what they were , what they were signing up , nope .
And here's the problem , because the funnel is like any email funnel her open rates , and we didn't go into this . But let's say that your open rates are the standard 30% open rate , and that's decent , right ? Well , that means 70% of people are not reading your emails , though . So let's go ahead and say you have a stellar open rate of 50% .
Well , first of all , as you've seen in your email sequences , the highest open rate is usually on that first email , right , delivering the lead magnet , and then the second email , and then , from there , the open rate tends to taper off a bit .
So by only introducing this training , this training that was converting for her , by the way , in the third or fourth email it might've been the fourth email she was missing out on tons of sales just because a much lower percentage of those 300 leads were even seeing the training . And that was the mistake , that was the issue .
The funnel was essentially hiding the key conversion event , that training , that selling her product .
Right , so you can probably see what we're getting at here . What she should have done is drive traffic directly to the training instead of to that checklist , that lead magnet , therefore making the training that primary entry point into the funnel and ensuring that more people saw it and actually had the opportunity to convert .
And here's the thing Like I told her , change up the funnel and since she already had an email that was trying to get the people to watch the training , I was like just take that email and have your team rework it so that is an opt-in page and start getting a lot more eyeballs on that funnel .
If you need help with your Facebook ads but you're not at the point where you're ready , your business has a profit to hire an ads manager with a monthly retainer . I still do one-on-one Facebook ad coaching and Instagram ad coaching .
They're all the same and this type of funnel advice that I gave her is along the lines of the same kind of funnel advice I can give you to increase . It's what we do on the first call to increase your funnel conversions .
And then , of course , we have several more calls over the course of a month and you get unlimited access to me in between so that you can run your ads just like I would . That link to book a one-on-one coaching call session with me is in the show notes below .
So higher , more traffic on her training equaled higher visibility , equals increased conversions , and that is what you should take away from this episode is your funnel should prioritize getting people to the thing that actually converts them . Don't have a checklist funnel and then , surprise , buried down in there is a training .
No run traffic directly to the training , like the more steps that you have in a funnel before you get to a training . Because I've had people ask me this too , like should I use a lead magnet and then later on introduce folks to the webinar ? It's like well , no , what's doing the selling ? Put that first . Make the funnel about that .
Right . So go ahead and identify the step in your funnel that is driving sales whether it's your training , your webinar , whatever that might be and make that the central focus of your funnel . And in the next episode we're going to go into a little bit more about additional ways that you can build your funnel so that you can get higher conversions .
Yep , yep , yep .
And if you need that Facebook and Instagram ad coaching so that you can successfully run your campaigns , like I would by the way , this is only for course , creators If you are e-commerce like you're selling 30 different products on your website , or you're like an influencer and you make most of your money from , say , endorsements or sponsorships but don't have a
product , then this ads coaching would not be for you . But I'm talking to you , course , creator , because I've specialized in helping you for so long and I would love to help your ads work better and your funnel convert better on a coaching call until the next time we chat , take care , be blessed and we'll see you in the next you soon bye .