What is a Sales Funnel and Do I Need One?

sales funnel

I know you’re wondering…

Maybe you’ve heard the term “Sales Funnel”, “Marketing Funnel” or even just “Funnel” thrown around the water cooler, but you might not know exactly what those terms refer to…. Other than those funny cone-like utensils you might whip out of the drawer when you’re baking with the kids.

Perhaps you’re stuck in the past, and haven’t started implementing fresh strategies into your real estate marketing program. Then you might feel completely clueless as to what a sales funnel is (or if you even need one).

Well, to make it dead simple:

You probably already have a funnel (even if you don’t know it). And, if somehow you don’t have a funnel in place… You need to get one. NOW.

Let me explain:

“What Is A Sales Funnel?”

A sales funnel is a simple concept that just about every successful business on the planet is already using. Essentially, it’s the buying process the company wants their customer to follow when they make a purchase. Sometimes a sales funnel is referred to as the sales process or a revenue funnel. 

But, it’s best illustrated by example, so let’s take a look at McDonald’s:

  1. First of all, McDonald’s marketing team pays for a television ad (a commercial) that you see at home. Because that’s what gets you to walk in the front door.
  2. So, you walk to the front counter and order a Quarter Pounder with cheese. Now McDonald’s has acquired you as a customer.
  3. And then…. They’ll probably ask you: “Would you like fries and a drink with that?” You say yes, of course (let’s just be honest now, shall we?). So, McDonald’s has executed an “upsell” and moved you up to the next step in their sales funnel.
  4. In addition, they’ll ask “Would you like to Super-Size that?”. Reluctantly, you accept. And that’s the next step in McDonald’s funnel.
  5. Finally, they ask if you’d like a piping hot apple pie for just $1 more. “Why not?

And that’s it– you’ve just tiptoed through each and every step of McDonald’s sales funnel.

Hopefully you can see that Sales Funnels are a very simple concept that can be applied to any business, and real estate is no different. It’s going to look a little different, though (maybe freshly baked cookies at an open house instead of fries….).  

All joking aside, just like McDonald’s, you’re marketing your business. Let’s say you’ve just got a new listing and it’s time to set up your funnel. An example might look like:

  1. First, you’ll set up an ad for your listing. Then, when a lead opts in for more information, they enter your database (just like you walked into McDonald’s).
  2. Then, you call them up and continue to check in with them via drip emails.
  3. Once you’ve connected you schedule an appointment and take your buyer out to view some properties.
  4. Finally, your buyer decides to write an offer! You sign the paperwork and work to get to closing. (Supersize that sale!)
  5. Most of all, don’t forget your post-closing communications. Past clients are a great source of repeat business and referrals. (They’re in the funnel forever!)

That’s what it looks like for real estate.

Now, onto my other favorite question: “Do I Even Need A Sales Funnel?”

To put it simply: yes. You do.

But if you’ve read up to this point, you’ve probably realized that you already have some form of a sales funnel in place. But… not all sales funnels were created equal.

In the world of Inbound & Online Marketing, the best tools can actually piece everything together for you. We use and recommend HubSpot, because they make it easy-peasy to create high-converting funnels (for real estate marketing, and other industries too!).

If you’re looking to up your game and get serious about your marketing strategy for 2017 (scary, isn’t it?) then here’s what you need to do next:

  1. Download your FREE Inbound Checklist, if you haven’t already. (Hint, it’s a perfect funnel setup.)
  2. Create a high-converting landing page for your listing or offer.
  3. Use our drip sequence to nurture and convert your leads.
  4. Get in touch with us if you need help with how to wrap this all up into an automated “super funnel” system that practically sells for you!

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