Improving Cash Flow With The Funnel

What is the cash flow Funnel ?

I was at a seminar today that was boring as hell. Many of the attendees got up and left. Actually, I had expected it to be the best one of the entire day because the speaker was a professional that I had heard of previously. I didn’t walk out because I have learned in the past that you never know when you are going to hear something that will change your life. That did not happen to me today, although I did get the inspiration for this post.

Funnel is a Sales Concept

This professional speaker was talking about overcoming fears of networking and developing leads. She spoke to the audience as if we were in kindergarten and dwelt continuously on how to overcome your fear of starting conversations with strangers. One thing that she did bring up though is the funnel. She did not elaborate on it much, so I am sure that the concept went over the heads of most of the attendees. I have frequently thought that the funnel should be taught in our field more often. The funnel is a sales concept that in itself can be a key to success in any sales business. Direct sales and network marketing are no exception. When you understand the funnel concept, you will understand a system of creating cash flow.

Business as a funnel

Think of your business as a funnel. The more leads you put into your funnel the more business comes out the bottom. Massive efforts will lead to massive results. When you think of each lead as being a grain of salt or spices that you are pouring into the top of the funnel and as they come out the bottom they are business or cash flow. The more spices/leads you put into the big part of the funnel, the more that will trickle out the bottom. The concept is simple, yet not always easy.

A Funnel has a really wide part and a narrow part. Many sales people go for the close, or the show, or the opportunity first. That scares people off. Using the funnel, you draw your business deeper into the funnel gradually, so that they begin to create desire for your product or services. Your business funnel is very broad at the top where your lead has only a little or no commitment, risk or interest in your services. As the leads travel deeper into the funnel they become more committed to you and become hosts, sales reps, company leaders or higher value customers. When we go for the close, ask them to host a show before they understand your product line, or ask them to be a consultant before they are sold on your product, you are pushing them into the small whole at the bottom of the funnel in reverse. Understanding the funnel concept will go a long way to improve your results. Allow your leads to voluntarily climb into the funnel because you attract them to you, then drawing them in gradually, will produce incredible cash flow results. The more you put into the top, the more you will get out the bottom. The key to success in any sales business is massive quantity of leads in the funnel. When your funnel is full, you will never be scared that you do not have enough business!

Cash Flow Funnel

Take a minute now print out this Cash Flow Funnel. Now let’s diagram YOUR cash flow funnel.

The way you get people in the funnel is to offer them something they want. As they voluntarily jump into the funnel they will then go deeper into your services, one step at a time. Write in the top section what is your first contact and how you get them into the funnel. The wide part of the funnel is the point of first contact and the more you put in the top, the more you will get out the bottom. The top is the first step or point of contact. It could and should be many things. How you get people into your funnel will be unique to your business. It could be a opportunity to enter a prize drawing at a fair. It could be an attendee at a luncheon at which you are a speaker, or it could be someone you met at the mall who was interested in a catalog. An individual who asked to be put on your newsletter list would be another first contact to start to fill your funnel. The more that goes into the top of the funnel, will give you more out the bottom. How you get them into the funnel is unlimited and unique. Once in the funnel they begin to drop down to a deeper level. Take a minute to jot down several ways you will bring leads into your funnel.

What is the next ring?

The next step may be to buy a product or to attend a show. It could be just a small item. Then the next level a bit deeper in your funnel may be a larger product or the opportunity to host a show, followed by the business opportunity, then the opportunity to be a leader. As they drop through the various levels of the funnel, they will enjoy our services and or product and voluntarily move to the next level, purchasing more expensive products and becoming more interested in the higher end services and creating more cash flow for you.

Creating varying levels in your funnel will allow people to sift through and out the bottom. The more you put in the top the more you will get out out the bottom. Some of your grains of  spices/leads will skip some sections of the funnel. Others will get stuck and never drop to the next level, and others will fly through all levels at the speed of light, voluntarily. The key is to keep the funnel full, so that some spices/leads are always falling out the bottom.

There are three lessons in this article.

1. Don’t leave a crummy seminar before you hear the inspiration that will change your life.
2. Don’t go for the close before you have developed the leads and sifted thought them.
3. Fill your funnel because the more you put in the top, the more will come out the bottom.

The funnel will create desire and committed customers and sales representatives. Putting massive quantities of spices/leads into the funnel will lead to massive spices and leads coming into your business.