Today I’m going to share with you what I call the low tier marketing funnel. This marketing technique has been instrumental to my success, and so it’s something I like to share with clients. To put it simply, low tier marketing funnel is a type of marketing sales funnel wherein we sell low-tier products. It differs from the high-tier programs we offer mainly in terms of pricing and product packaging. Moreover, I’m going to talk about how you can integrate online and offline marketing for the low tier marketing funnel. This will combine the best of both worlds and change the game for you.
Improve Your Business With A Low Tier Marketing Funnel
What is a Low Tier Marketing Funnel?
Some people choose to sell their products online. However, there are also others who stick with offline systems, such as free consultations. I may not be the first person to sell low-tier products or do free consultations, but I have innovated the game by combining these previously separate online and offline marketing systems into one funnel.
Let me illustrate the low tier funnel for you — it’s really simple. First, there is an opt-in page that gives away a free gift. This “free gift” is a free download of some kind. It can be anything from a blueprint, a book, or a video series.
Basically, you design a funnel that begins with an opt-in page which gives away a free gift, and then it splashes through what is called the “low tier offer.” Just to give you an example, my low-tier offers are between $37 to $47. You might hear a different pricing from others, with some having as low as $5 to $7.
Personally, I like to keep my products priced between $37 to $47, because it links to the free consultations that my sales team runs. If you don’t have a sales team, it’s okay. You can conduct the free consultations yourself.
Going back to the low tier funnel, after the free gift has been downloaded, a sales page appears. That sales page makes the first offer, which is the low-tier offer. The goal is to get a lot of people to buy that first offer. The moment they do, another sales page appears, which makes another offer. This time it’s a mid-tier offer. To give you an example, my business model goes like this:
- Free gift
- $47 offer
- $97 offer
Marketing Funnel Explained: The Goals of the Low Tier Funnel
Now, there are a couple of goals you can achieve through this funnel. First, you can get leads and grow your list. This is important. The moment you have somebody on your list, you can continue to re-market to them. You can continue offering them products and programs. As long as they are on your list, you have an opportunity to sell them something in the future. You can also keep on serving and helping them achieve their goals.
The second goal, which is just as important, is getting buyers. As I and my team have discovered, having buyers is having a business. When you have them, you won’t have to fill your calendar with client coaching appointments and become a slave to your business. You won’t come to a point where you realize that you’re trading too much time for too little revenue.
Regular buyers are more likely to buy more products than somebody who has not bought a product yet. Further, because regular buyers will continue to purchase, you now have another goal — to elevate the purchases they make.
The Staircase Model
Notice the scale of elevation in the low tier marketing funnel. It starts with a free gift, then moves to a low-tier offer, then on to a mid-tier offer. In my business, I also have the Message to Millions Program, which sells for thousands of dollars. That’s a high-tier offer. The low tier funnel model I shared is geared to elevate people to make better and smarter buying decisions without making a big leap.
For some people, jumping in at the high-tier offer such as Message to Millions is a smart move. I would do something like that. I would skip the low-tier offers and go right into that. However, I am not everybody. Not all my clients are like me. That’s why a “staircase” is needed to elevate the purchases that buyers make.
This is a new model that I am also using for my own business. I elevate clients to make deeper purchase decisions, which creates deeper transformation for them and serves them. After all, let’s face it, being a low-tier product owner these days just get you informed. Those who are serious take the leap to high-tier programs.
Personally, my goal isn’t just to elevate somebody to a low- or mid-tier offer. My goal is to get them into the serious game and have them engage with me on a bigger level. That is our end goal whenever we build a low tier marketing funnel. The beauty of this funnel is that you only need the three offers I discussed earlier to launch it.
I think every business today should have a funnel like this, especially if you’re into coaching, speaking, consulting, or you are a service-based business owner. Even an entrepreneur or an expert who wants to share their knowledge and advice should have this.
Get Your Traffic Online
For my business, the low tier marketing funnel brings in about 4,000 leads a month. Now that we have three of these funnels running, we get as much as 11,000 leads a month. They’re identical in terms of structure, similar to the low tier funnel model I shared earlier. In addition, we have a 30-day goal for this marketing system. I’ll share that with you in a few.
One important thing you should know is that when you create a funnel like this, you also need to get traffic. The way we get traffic for my business is through Facebook marketing. We get 8,000 to 11,000 leads a month through this. It varies because we have testing periods. If we’re doing a lot of testing, we’re paying more for our leads. Through this process, we try to find the winning formula. Once we find it, we ramp up the Facebook marketing, and our leads go back up to 11,000 a month.
We drive online traffic through Facebook. Still, it’s not our only platform. We have other ways to get leads. Is it safe to be on just one platform? I would say that it’s not.
Having a lead flow is important to your business. You have to find a way to get a lead flow, and in this funnel primarily you need leads.
The 30-Day Goal in Online Marketing
As I’ve mentioned earlier, my sales team has a 30-day goal for our Facebook marketing. When we put in $1 for our advertising spend, let’s say on Facebook, our goal is to get that dollar back in 30 days. We want to do this through our low- and mid-tier buyers.
To give you an example, last month my team put in $50,000 and we got back about $40,000. Really, we’re putting in $1 and only getting 80 cents back. I am not thrilled with that, but I am okay with it. I’d like to spend a dollar and get $2 back just from product sales. However, I’m okay with this small loss, because it’s a solid strategy that grows our list and gets us buyers.
Since I’m only getting back 80 cents, I’m actually losing money on the first month. But remember, I have the whole year and the lifetime of the lead and the buyer. I can gain from them and make $2, $3, or even $4 back by the end of the year.
My goal is that by the end of the year I can put $1 in and make $3 to $4 back from product sales. The product sales will come from selling the products I made. These are the Message to Millions, Superstar Speaker, Marketing to Millions, and Product to Millions Programs. It also means getting people to buy my automated webinar machine or my High-Paying Client Enrollment training.
The product sales can actually all be done online, and I never have to directly communicate with my clients. However, that’s not what I want. I enjoy interacting with my clients and doing live events like seminars. In fact, I built this marketing funnel model to fuel that.
The question now is, how do I reach my 30-day goal? If I put in $1 for advertising, how can I make money in the first 30 days and get $3 back?
Integrate Online and Offline Marketing
Every person who buys a program from us through the low tier marketing funnel gets a free strategy session. You can also call this a free consultation. It doesn’t matter if they bought the $47 or $97 offer.
Whether you have an online marketing funnel or not, you need to get out there and book free strategy sessions. You need to bird-dog clients for this. What I’m sharing with you now is all about integrating online marketing with the offline system of free strategy sessions.
Now we have an online funnel that brings in the leads and buyers, we can set up free consultations. This is a sustainable business model that can thrive for years to come. It just works, and it’s working for my business.
We live in the digital age where you can do almost anything online. However, we still have a need for human interaction and communication. You might be good with online marketing, but if you don’t get good at offering free strategy sessions, I think you’ll have a hard time with your business. The lack of ability to communicate with a customer won’t make your business succeed.
Now, we have a new marketing funnel that drives leads and traffic. Years ago, you had to go door-to-door to set up a free strategy session. However, today with the use of online marketing, people come to you, and all you have to do is book a free consultation with them. Bear in mind I’m not saying that you should stop meeting your warm network and creating new relationships to set up free strategy sessions. It’s still good to do that.
The Qualifier for Free Consultations
There are certain people who buy low-tier products. Those will lead to your product buyers, and they automatically get offered a free strategy session.
One of my clients is applying the integrated online and offline marketing for his business. He’s running Facebook ads to get traffic, and he’s getting on free consultations with people. What he’s missing, though, is that people are not buying an online product from him first.
What I like about the online product is that people spend their money to buy something. The moment they do that, they become different from everyone else who’s on your list, and those who have seen your emails and ads. That’s because they’re immediately saying, “I’m serious.”
Nobody wants to get a consultation with somebody who’s not qualified. That means the qualifier is they should be a buyer. Once they buy, you then have an opportunity to invite them to a free strategy session.
Create a Winning Offer
Perhaps you’re brand new to the online marketing system. It’s good to set a goal for yourself, so you know what you want to achieve for your business. Your goal for the year might be to set up a marketing funnel and get traffic and buyers.
Let’s say you start putting in $1 for your online advertising spend, and you get back only 50 cents or less. Remember that those results are not uncommon. My business has also been through that phase. We had to stick with it until we figured out what our winning offer was.
A lot of people want to win right away, and that’s the mistake they make. They want to succeed right away. Don’t get me wrong — I’d love to put up a funnel and succeed right away. However, so far, it hasn’t happened consistently for me yet. There is always some adjustment to be made. Now that I have gotten more skilled, sometimes I can put up funnels that succeed right away. Other times they still need tweaking.
There’s always the testing phase. For instance, when we recently launched funnels, we had to undergo the testing phase. We were putting $1 in and getting only 30 cents back. My business was losing money, but my sales team had to keep on testing until we found the winning offer.
When you find your winning offer, you will get people to start buying your products. You will gain qualified buyers from those. Then you can get any of them on the phone for your free consultation.
The Winning System
— Ted McGrath (@ted_mcgrath) September 12, 2017
Once you get this winning system and winning offer, you have them for life. This is what I want you to get, because it’s a set up that is for life. That is huge.
When you get good at free consultations, you have a skill set for life — but you don’t have a system. When you create a marketing funnel like this, you get a system. It brings in customers and sets up qualified free strategy sessions for you. However, you really need to immerse yourself to learn how you can create this.
Utilizing this marketing funnel has given my sales team the opportunity to invite people to free strategy sessions. 50% of the people who show up to our strategy sessions are our buyers. Through this system, we managed to gain back our ad spend. We spent $10,000 to $12,000 in a week, and from product sales, we earned back around 80% of it. Finally, we are getting return of investments through this great marketing machine that brings in lots of buyers. It could do the same thing for you.
Is this a one-hit wonder system where you set it up and all of a sudden it pours in cash? No. Will you work hard to create something like this? Yes. But I trust that you’ve joined my program because you’ve decided to make this a real career. I trust that you’re in this for a lifetime, because you want to continue to serve your clients and do what you love.
With that said, you now need to learn how to create a winning low tier marketing funnel system. This is really what Marketing to Millions is about — sharing with you the wins and successes we’re having that are making a difference. I hope this served you and gave you great information that you can build off of. That way, you can set up your own low tier marketing funnel and connect your online and offline worlds.
Will you be integrating the low tier marketing funnel fit into your business? Let me know your questions or concerns in the comments below!