Multi Tiered Sales Funnel – What is it and Why Should You Care?


A multi-tiered sales funnel can dramatically improve the ability to create momentum and improve the bottom line for high value, high profit products sold in a direct sales business model.

But what exactly is a “Multi-Tiered Sales Funnel” and why do I say it is so important.

Marketing is a diverse field, part art, part science. Master both and you have a license to print money.

We’ll discuss the science part in this article… basically if you get enough people in front of your offer, a certain percentage will take your desired action and a ratio will emerge. Once you have a statistically valid conversion rate, you will know how many eyeballs are needed to look at your page to get a desired result.

If the conversion rate is unacceptable, the offer needs to be worked on; that’s the art side of marketing.

Sometimes when selling high value, high profit products or services, a fairly low conversion rate is acceptable. For example, let’s say that you have a training program that retails for several thousand dollars but yields a nice 50% commission price of clickfunnels.

When setting up any marketing campaign, it’s critical that you be split testing two creatives. In this first case you should be comparing two different sales letters promoting your product or service. The problem is, however, that in order to determine the conversion rate of the first offer, approximately 30 “sales” need to be made of the winning creative.

Since it is extremely rare to have successful marketing piece right of the gate, this usually proves to be prohibitively expensive for these high ticket items, and unless you have very deep pockets will prove to be a show stopper for your marketing.

Now let’s step back and think about this a bit. The goal is still to make sales of this top tier product, but if we set it up a little bit differently we can do so, while bringing in much needed cash flow while doing so.

What if we offered another product at less than half the cost of the ultimate goal, with many of the same benefits, and then offered the final one as an “up sell”? Chances are very good, a nice high percentage of people who bought your “entry level” training, will want to step up to the top level product as well.

We’ll offer it as an upgrade so they still end up spending the same amount.

Clearly someone who invested in a product is a highly qualified prospect, and we know from history, making repeat sales is a lot easier than making the first sale. My personal experience is that about one out of three people will make this upgrade. You’ve just made it a lot easier to make money, since two sales were made that you probably wouldn’t have made because you have similar product to offer at a much lower price point.

But, we still may be faced with selling a fairly high ticket first sale.

The solution is easy… just repeat this process, offering a product at reduced price points until the very initial offer is something that sells at a very low price; somewhere between $7 and $50. Making those initial sales are easy on the internet; it’s simple to convert 2-4% of visitors into that price range. Since the price point is lower, it’s also much easier to optimize your sales letters to achieve an acceptable rate of return.

Then you “up sell” your satisfied customers to your next level product. Set the price point of your next level product somewhere between 2x and 10x, and continue the process all the way to your ultimate goal.

And since they are already customers, and as long as you treated them fairly and gave good value, it is much easier to upgrade them… a decent sales funnel, structured with a 2x to 10x up sells, will have on the order of 33% upgrades.

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