What is a sales funnel? It is a simple concept that refers to a natural filtering that goes on in the process of sales.
- My ancestors were gold miners (first arriving in California in 1848).
- When everyone was using a pan to search for “placer” gold, or gold that could be found already separated from other rock on the earth’s surface, my ancestors brought mining technology to California during those early days of the gold rush.
- Ore was mined from “hot spots” in the ground having higher concentrations of gold.
- It was then crushed and sifted, finally making its way through a mercury bath which separated the stone and other minerals from the gold itself.
- Gold was then melted into ingots or bars and sold at market.
A sales funnel uses the same approach.
- Starting with “hot” ore (i.e. a well researched list based on your target market).
- It is processed (i.e. interacted with over time, called mailed, met person-to-person, etc.).
- The minerals are separated (i.e. the better quality prospects are set apart from the less promising).
- Gold is melted together and sold (i.e. the best quality prospects get the most attention – appointments, more expensive literature, more intensive follow up, etc.. Out of this top shelf group, sales are made).
Some also use a farm analogy to describe this above process as separating “wheat from chaff.” Either way, it’s the same story.
Working Smart
You are starting with a large list in the beginning and sifting it down to the group that has the value you are looking for.
- Working smart throughout the process makes a big difference!
- One element of the interaction with new prospects that gets missed is the value of collecting information.
- Collect qualifying information in order to identify future selling opportunities and use it to separate out disqualified prospects (thereby streamlining your work over time).
Also, work to understand what underlying characteristics make one prospect more promising than another. Mark such prospects for future reference. Spend extra time and attention developing and communicating with your higher potential prospects. Do so, and you’ll soon have a powerful sales funnel working for you!
