SFM: Ep2 – The Secrets Of Sales Funnel Price Structuring

Welcome back to the Sales Funnel Mastery podcast.

In this episode, I’ll reveal what I’ve discovered about how to PRICE your sales funnel from beginning to end. Here’s a quick teaser of what you’ll discover inside…

  • Should you start with a low end offer to increase the amount of buyers that enter your sales funnel? Not always!
  • Why price is not determined by how much money the person buying has…
  • Why high-ticket items can add multiples of revenue to your business with less work…

There are many considerations to factor into your decision.

We’ll cover them all inside this episode.

Listen To The Podcast!



Hi, welcome to another episode of the Sales Funnel Mastery, this is your host, Jeremy Reeves. 


And today, we’re going to talk about Sales Funnel Price Structuring. So this is actually a really, really, really important topic. 


I actually talked about this. A couple of months ago, I was at a private marketers’ dinner in Philadelphia. 

It was kind of an event where you had to be in Black Tie and personally invited and you had to be making over $200,000 a year and there are a lot of really, really, really A-Level, high-playered type of industry leaders at the event. I went there as I got invited, one of my customers was holding it, one of the Harrison brothers, Bill Harrison, and he asked me to do a speech.


It was actually a little bit of an impromptu speech. I’m not too much of a public speaker so I downed a few glasses of wine and got a little loosened up and one of the things that I talked about during that presentation during the event was price structuring in your sales funnel.


So somebody actually asked me, there’s a little bit of Q&A, and somebody asked me, should you start your sales funnel with a low-priced product in the beginning of it and then ramp up? Something like something like having a $7 report which leads to something like a $97 product and then a 297 or 497 and then 1,000 or 2,000 or whatever versus just going for a higher end sale and which one gets you more money in the end.


My answer is that it’s really not a black and white thing. It’s a little bit of a gray area. It really depends on your business, it depends on your goals, it depends on the type of business that you’re trying to create. Whether it’s a lifestyle business, whether if you’re going for maximum revenue which is a very different thing now. Not everybody is just trying to maximize their revenue.


There are a lot of people who want to just get to a certain level and then enjoy the lifestyle that it gives them. So basically, if you’re in a market, and it’s a very broad market, something like, you have access to a lot of buyer, something like weight loss or self-help or some type of very mass-appeal market, I usually recommend doing something like a really low-end offer first.


Because when you do a low-end offer like that it helps you generate buyers. It essentially separates the wheat from the chaff. It shows you who’s willing to spend money with you, it gets them in a buying mode and then you can get them to buy higher-priced products. And it allows you to essentially create a buyers list that you can sell to over and over and over with your higher-priced products without really wasting marketing budget.


A lot of times, you can break even on 7 or $17 products with their marketing budget, depending on how much you’re spending on your ad costs and things like that. And a lot of times, actually, it usually takes the first up-sell to break even. But it really depends on the business, everybody’s different.

The Case For Lower Upfront Offers

Basically, if you have a really good back-end and and a mass-appeal market, I would recommend doing a smaller upfront offer like a $7 or $17 offer and then you put them in your back-end funnel and it could be the immediate upsell sequence right after they buy with one-click upsells and all that kind of fancy stuff.

If you don’t don’t really know what that means, just shoot me an email at [email protected]. But I assume most of the people listening to this know what that is. 


If you have a really good back-end, then it’s better to bring people in it at a lower price because your lifetime customer value’s probably going to be higher, you know what people are going to be worth to you as a business.


So if you know your customer lifetime value is, say, $3000 and you can get that back within the first 12 months, that’s the average person. You know what you can spend upfront so you could afford to spend, you can afford to get people at a loss. It’s called a ‘loss leader’ in the beginning and just and just sell them whatever you have for your back-end funnel.

The Case For Higher Upfront Offers

If you don’t have quite as much of the back-end and you’re relying more on just a smaller quantity of buyers and your buyers are worth a higher price. For me, for example, actually, I go after quality versus quantity so I have a lot of high-end services. I do have a couple of low-end products. But mostly I focus on the high-end services because I would rather sell 10 $500 products a month and get a couple of coaching clients out of that.


Because people buy it and they go into coaching rather than trying to sell people a $37 product because it helps my positioning, it helps me be the authority in the marketplace and things like that. 


So you have to think about that kind of stuff. It depends on so many factors. If you’re trying to be a maven in your industry, I would recommend going with a higher-priced funnel where you start off at 297 or 497 or something like that. 


If you’re going for mass appeal, you have a lot of customers that you’re trying to get, you have a really good back-end funnel, that kind of thing, then I recommend going for a lower-priced product.


And this really is something that you test. What I actually recommended to this person that asked me this question was, I said, “Do a one-year-long test or six-month-long test whenever, however long your buying cycle is.” 


So if most people kind of max out at 6 months, then do 6 months, If most people max out at what they’re going to spend with you their lifetime customer value, then do 12 months. And you really have to know your key metrics for all of this stuff. So it’s really good to know your metrics. 


So what you do is do year-long-tests and you do one funnel, you do two separate funnels. One, start at just say 297 and and one starts at just you know 7, 17 and something like that, whatever low-end is for your audience because everybody’s different. 


And then you test the lifetime customer value over a certain time period, say, 6 or 12 months, and you see which one gives you more profit overall. So maybe with the $7 offer, you’re getting tons and tons and tons and tons of customers and you end up with an average lifetime customer value of in a given say, a year, $997 is the average person, that’s what they’re worth to you.


And then you test that again starting at 297 and obviously you’re going to have less customers but they’re better customers. They require less customer support because that’s usually the case. People that spend more are going to be essentially less, less needy. And I’ve tested that over and over and over again on all kinds of different markets and it’s pretty amazing, actually.


If you’re looking for a lifestyle business that’s one strategy you can use right there. And basically, you test two completely separate funnels. One, that starts really low-end. One, that starts at a medium or high-end and you see which one is worth more to you overall and that’s really the answer.

So you really just have to test that. I have not found that either those works in every case. It really is better for each industry, it depends on what you want in your business. 


So if you’re going for maximum revenue, then you go with whatever one gives you maximum revenue. If you’re going for a lifestyle business, then you go, I would say probably the higher-end is a better choice because, again, the customers that you attract even though you’re gonna have less of them, are much better customers and they are less of a hassle for you. So there’s less work on your end to do. 


So keep that in mind. I really hope that helps. This is one that I would recommend listening to over and over again. I think I gave you a bunch of different insights in there if you’re listening closely that you can really take and implement in your business. 


The main consensus there is that if you’re trying out if a low-end or a high-end funnel is going to work better for you, test two separate funnels and track it over about a year’s time. I know that’s a very long time to test, hopefully you’re in business for long-term and not a one-two-year kind of deal. 


But I hope that helps and let me know if you have any questions. If there’s anything that you want a little bit more clarity on, just shoot me an email at [email protected]. 


In the meantime, if this helps you, make sure you’re subscribed on iTunes, to this podcast, make sure you tell your friends about it and go into iTunes, wherever you listen to this and rate it o that it’ll help me, you know, jump up in the ratings and that kind of thing. 


So make sure you tell your friends, keep listening, I’ll be back in a few days and I will talk to you soon. 

About the Author Jeremy Reeves

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