Business Tips

Sales Funnel: How It Works And How To Create It

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Sales funnel can be looked at from two perspectives – the buyers and the seller’s perspective.

Sales funnel is a series of steps that businesses use to persuade prospects to become customers – the seller’s perspective.

For a buyer’s perspective – it’s the journey a potential customer goes through before they make a purchase.

Why You Need Sales Funnel

Here is the thing. If someone needs something buy don’t know why he or she may probably end up not buying that thing. Your chief aim is to help them discover why.

Sales funnel is used to illustrate the hypothetical journey a customer takes in going from someone who knows nothing about your business, to a customer of your business.

In a nutshell, a sales funnel will:

  1. Ensure you always stay on course
  2. Help you step into your customer’s shoes – to understand them better
  3. Give you a more accurate understanding of what things are and aren’t working in your marketing and sales channels and strategies
  4. Help you find the cause of stalled sales
  5. Help you get more qualified leads
  6. Ensure you never miss a follow-up
  7. Help you offer better customer experience funnel, e., the areas where people drop out

What Sales Funnel Look Like

what sales funnel look like - ESY MEDIA

Sales funnel looks exactly like an oil funnel, but unlike an oil funnel whose aim is to push down everything, and to prevent spillage, a sales funnel does the opposite - to keep time-wasters away (i.e., those who will never buy).

Also unlike the oil funnel, every part of the sales funnel is labeled, and each part of the sales funnel has a task to perform.

However, sales funnels are labeled differently depending on your target market.

There are so many different types of funnels, which often confuse business owners, and prevents them from learning more about it.

Below are some of the different types of sale funnels.

Types of sales funnel - ESY MEDIA

The above funnels were created based on different business situations.

How Sales Funnel Works

How sales funnel works

Sales funnel differs depending on the product or the organization. However, there are common features of sales funnel: the AIDA formula.


This is the first someone noticed your business, brand or offer.

At this stage they are looking for an answer to a question – a solution to a problem that they have and discovered you through your social media (paid ad or organically) or through a search engine like Google.


At this stage, the prospect becomes more interested in you – your offer. But they want to find out if you are the right person to solve their problem.

The prospect will begin to do independent research about you and your offer – they may also compare other options. This is the stage they ask most questions.

Most persons make the mistake of selling at this stage. This shouldn’t be so. Giving them more information – help answer their question – educate them to make the right choice. It could be through your numerous quality content, video or an eBook.

After that, they are moved down as leads to the next stage.


At this stage, your prospect is ready to purchase. But, sometimes the prospect may be considering two or more brands that offer the same thing, hopefully, yours is included.

This is a critical stage that must be handled with the future in mind – to patronize you again.

The prospect readiness is shown in different ways;

  1. the prospect tells you to offer a discount
  2. the prospect places your product in a shopping cart for online store owners
  3. the prospect takes the next step after reading your post

To close the buyer at this point, you must offer the best deal.

Here are a few things you could do to fast-forward the sales process:

  1. Offer free shipping – when most competitors are not
  2. Offer a special discount; it code be a coupon code or a bonus

In summary, your offer should be irresistible that the prospect can’t wait to take action.


This is the stage you should aim for. At this stage, the lead (prospect) finally buys from you – to become your customer.

How To Create Sales Funnel

Creating a sale funnel that converts requires time and knowledge of your target market and the journey that leads up to a purchase. It’s not something you give up on the first trial. You have to keep practicing. Repetition is key.

Before you create your sales funnel, here are some of the activities you need to go through;

Start with the end in mind:

The first step is to have an end goal – what you want the prospect to do at the bottom of your funnel.


Brainstorm your lead magnet:

A lead magnet is a bait or freebie you will use to attract the kind of customers you need to give you access to their privacy (email, phone number). The lead magnet could be in the form of an eBook, video pack, etc.

Identify potential entry point:

You need to clearly understand where and how people will get to know/see your lead magnet. It could be on your website or social media handles for them to sign up.

Write your email sequence:

Once you have taken the three steps above, the next is to plan your email strategy in order to remain top of mind. This will help you build trust and brand loyalty in people, by nurturing those that opt in for your lead magnet.

Visually map out your sale funnel:

visualise your sales funnel

To do this, you have to understand the various parts of a funnel and how they function

Mapping out your sales funnel helps you to see the big picture before you dive into the specifics and details of it all.

It keeps you focused, and it's far less overwhelming when you start out this way.


Let' say you're planning the launch of your next online course, and you need a high-converting sale funnel for that, Here are the basic steps you need to get started:

  1. Set Your End Goal: g., To register 10 students
  2. Brainstorm Your Lead Magnet: A free webinar
  3. Planned Entry Points: Facebook + Instagram Ads, and WhatsApp.
  4. Write Your Email Sequence:

DAY 1: Welcome email (introduce yourself)

DAY 2: Value email (teach something valuable)

DAY 3: Value email


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