Building a sales funnel is a lot of work, so many entrepreneurs wonder if they really need one.
They often ask: How can I work out how much a funnel can make me?
Because of this frequently asked question, we created the Sales Funnel Calculator.
It’s a free tool you can use to calculate how much money approximately a funnel can make you with your current website traffic and email list size.
Many people are skeptical and think:
“Is this real or are they just trying to make me think I need a funnel?”
That’s a fair question, so we decided to write this post and explain to you how exactly we calculate how much money a funnel could make you.
It’s not magic and the numbers are not random. They are based on our experience and the data we’ve collected over the years.
What is a sales funnel calculator and why do you need one?
So you’re a little confused about what a lead conversion rate calculator is and what it actually calculates. In its simplest form, a funnel calculator helps you determine how many people who enter your sales funnel turn into paying customers.
It helps you analyze your return on investment and understand where you need to make improvements.
How do you use a marketing funnel calculator?
Using a conversion rate calculator is easy. You just input your current numbers and get the approximate numbers you could be getting with a funnel.
But, let me take you behind the scenes…
Get ready, it’s about to get complex.
Email subscribers and opt-in rate
So, you have
– about x email subscribers
And you get:
– about y website visitors per month
– about z new email subscribers per month
That means you’re currently getting (z/y*100)% opt-in rate on your website.
Most people have a 0.5% opt-in rate. 2% is good, and 5% is great.
The best we’ve ever got for a client is 8.5%.
With that in mind – with you getting about y website visitors a month you should be able to get between (y*5%) and (y*8.5%) new email subscribers per month.
When calculating revenue, the approach we recommend is to start with a tripwire funnel at the front end, followed by an automated webinar funnel to sell your high ticket offer.
Then you should offer two downsells, two email promotions a month to something for $79 – $199 (depending on your audience), and then two launches a year for your high ticket offer.
How much could you be making with your sales funnel?
Not including group coaching, one-to-one coaching or any other kind of higher-priced offers.
We typically see people make (((website visitors x 5% x 3%) x (17 + (15 x 40%) + (99 x 40%) + (99 x 25%)) + (email subscribers x 0.2% x (99 + (99 x 40%) + (27 x 40%)) x 2) per month, plus an additional (email subscribers x 0.7% x $500) from launches twice a year.
That’s the average, and that number can go up to:
(((website visitors x 8.5% x 3%) x (27 + (15 x 40%)
+ (149 x 40%) + (149 x 25%))
+ (email subscribers x 0.2% x (199 + (199 x 40%)
+ (27 x 40%)) x 2) per month, plus an additional (email subscribers x 0.7% x $1000) from launches twice a year.
That depends on the market you’re in, how engaged your audience is, and various other factors.
Where it starts to get really exciting is that if you increase your opt-in rate from (z/y*100)% to 5% or even 8.5% then that’s going to give you an additional (website visitors x 8.5% – current email subscribers per month) each month.
What is happening long term?
Over the course of a year – that will add up to an extra (website visitors x 8.5% x 12) people on your email list (though of course, some will unsubscribe).
But for sake of simplicity – you’ll then have (current email subscribers + website visitors x 8.5% x 12).
That means that at that point you could potentially be making (((website visitors x 8.5% x 3%) x (27 + (15 x 40%)
+ (149 x 40%) + (149 x 25%)) +
(((email subscribers + website visitors x 8.5% x 12) x 0.2% x (199 + (199 x 40%)
+ (27 x 40%)) x 2) per month, plus an additional ((email subscribers + website visitors x 8.5% x 12) x 0.7% x $1000) from launches twice a year.
Numbers are based on the industry’s average
All the numbers we mention here are based on the realistic results you could have if your funnel and pages are optimized.
If this looks like a lot of math… well, that’s because it is!
That’s why we built the lead conversion rate calculator in the first place – to make it very easy for you to calculate your business’ potential.
Now that you know the logic behind a funnel calculator, use our free Funnel revenue calculator and find out how much a funnel could make you.