Table of Contents
Introduction
In this tutorial, we will discuss the basic concepts behind creating a sales funnel on YouTube. Sales funnels may seem complicated at first, but they are actually quite simple once you understand the fundamental principles. To illustrate this, I will share my experience of building my first sales funnel as a beginner, using my passion for potato guns as an example.
My First Sales Funnel: The Potato Gun
The Idea
As a college student searching for ways to make money online, I came across the idea of selling information products. I had no expertise in any particular field, but one weekend, I learned how to make a potato gun with my friend Nate. This sparked an idea – what if I created a product teaching others how to make potato guns?
Research and Validation
I conducted keyword research and discovered that there were 18,000 monthly searches for phrases like “how to make a potato gun” or “potato gun plans.” Surprisingly, no one had created a product catering to this demand. I saw an opportunity and decided to seize it.
Creating the Product
With Nate’s help, I filmed a comprehensive video tutorial on making a potato gun. We then launched our very first product – a DVD guide. I set up a basic website with a landing page that promoted the DVD.
Marketing the Product
To drive traffic to my website, I turned to Google Ads. I paid for ads that appeared alongside search results. When users clicked on the ads, they were directed to my landing page where they could purchase the DVD.
The Initial Results
Initially, I was spending $10 a day on Google Ads and making one sale a day. With each DVD priced at $37, I was making a profit of $27 per sale. I was excited about my success and thought I had cracked the code to online business.
The Google Algorithm Change
However, my success was short-lived. Google changed its algorithms, and my ad costs increased. I went from spending $10 a day to spending $50 a day to make just one sale. This change resulted in me losing money instead of making a profit.
Discovering the Upsell Strategy
Fortunately, a friend who had a similar business called me one day with a solution. He explained the concept of upselling – offering additional products to customers who have already made a purchase. He used the example of McDonald’s, where customers are offered fries and a drink to complement their main order.
Implementing the Upsell Strategy
Inspired by this idea, I thought about what additional product I could offer to complement the potato gun DVD. I realized that customers who purchased the DVD had to buy the necessary materials from Home Depot and assemble the gun themselves. So, I decided to create an upsell offering a complete potato gun kit.
The Upsell Funnel
I partnered with a company in northern Idaho that manufactured potato gun kits. I priced the upsell at $197. With this upsell in place, my sales funnel now consisted of two steps: customers would buy the DVD and then be presented with the option to purchase the kit.
The Results
While my ad costs remained the same at $50 a day, the introduction of the upsell significantly increased my profits. For every DVD I sold, one out of three customers would also buy the kit. This meant that for every $37 I made from DVD sales, I earned an additional $65 from upsells.
Expanding the Funnel Strategy
Encouraged by my success, I started applying the funnel strategy to other markets. I launched funnels for speed reading, dating advice, and supplements, among other niches. Each funnel required slight modifications, but the core concept remained the same – upselling relevant products to customers.
Conclusion
Creating a sales funnel on YouTube is a simple yet powerful strategy for maximizing profits. By understanding your audience’s needs and offering relevant upsells, you can significantly increase your revenue. Remember to research your market, validate your product idea, and optimize your funnels for maximum conversions. Sales funnels are applicable to any business, so start implementing them today to grow your YouTube channel and boost your sales.