What Is A Lead Funnel

What Is A Lead Funnel

What Is A Lead Funnel : As we progress in our business we tend to take for granted certain terminology and forget that that someone new to entrepreneurship may not fully understand these terms. The word “funnel” is one of those words.  You may even envision as you read this a plastic funnel used for pouring liquid into.  That we certainly our reaction when we first heard it used.

We’re going to do our best to explain and keep it as simple as possible so there’s no confusion going forwards.


It’s a modern term that we’ve know of in many different forms and words over the years but essentially, a sales funnel, also called a purchase funnel, is the visual representation of the customer journey, depicting the sales process from awareness to action.

The funnel, which is sometimes referred to as a marketing funnel or revenue funnel, illustrates the idea that every sale begins with a large number of potential customers, and ends with a much smaller number of people who actually make a and ends with a much smaller number of people who actually make a purchase.

Hence why it is called a funnel because that’s the shape that perfect explains this.  Every business of any kind needs to generate leads and make sales and this is the generic term applied to that process

How the sales funnel works

Sales funnel stages will vary from business to business but usually you will see them  divided into four sections.

Awareness Stage

This stage of the funnel which is the broadest and will include the the largest number of people known as customer prospects. As this stage of the funnel where a prospective customer (known as a lead) has determined they have a problem and begun searching for a solution.  As a good business owner you will have created marketing materials such as writing content like this on a blog, writing articles, social media etc

Interest Stage

At this stage of the funnel there will be less numbers of customer prospects but at the same time there is also the greater possibility of a conversion into a sale.  The prospect is at this stage engaging with the company (you) and may be wanting more information or to have questions answered.

Decision Stage

At this stage of the lead funnel it’s likely that the customer prospect has got answers to their questions, seen your sales offers, done their research including looking at different options and ready to make that all important decision.  This is a critical stage of your lead funnel

Action Stage

This is the smallest part of the lead funnel and it’s the final step in your customer prospect’s journey with you.  They should at this point have decided to purchase your product or service being the best solution to their problem.

We talked about this in our article The Truth About Writing An Email Series as the same principle applies in taking your prospect/lead on a journey when they first enter your funnel via an optin to find out more about your solution to their problem

In that example we turned the marketing funnel (that’s what we tend to call it) upside down

So now we have covered and answered the question “What Is A Lead Funnel?” let’s talk about how to create one and what should your look like.

Here’s where we’ve got just the thing for you – an illustrated guide with over a 100 funnels that you can choose from to model for you business.

At $7 this is phenomenal value and highly recommended ?????

In fact we recorded a video showing just how much value was in the guide – you can watch it on our Facebook here 

Thanks for reading and hope we’ve adequately answered the question “what is a lead funnel?” but do let us know if you have any questions

Chris and Susan Signature

Who Are We

We’re former accountants of a certain age with 5 great kids, 4 grandchildren and a cat called Vincent. We love skiing, the mountains and traveling the world and we’re passionate about helping others to start and build successful businesses online and providing the resources to do it.  Our business is centered on online marketing, financial and business education for those in or approaching retirement.  You can find out more and ways to work with us here

Authors : The Mindset Shift  The Mindset Shift Goal Setting Secrets  Retire Inspire

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