TRAFFIC FUNNEL Definition and Explanation

Graphic of the Traffic Funnel.

The Traffic Funnel: When you first start looking at making money online, you will be tempted to buy traffic. It is very important that you understand the entire process of building customers before you spend one penny.

You will see ads and offers about building a “Traffic Funnel”, aka “Sales Funnel”, or “Lead Funnel.” This is probably the most effective way to create a long-term income stream, but it can be really confusing when you are just getting started until you understand the terminology.

Here is the Traffic Funnel, broken down by terms with definitions.

“Traffic Funnel” Definition: The marketing strategies that maximize your exposure to create long-term loyal customers and establish relationship and credibility through frequent contact and value-based offers.

“Customer Value Optimization” Definition : (see graphic): CVO -Traffic funnel in action; making the most of your marketing efforts. More on this later; it is the cost of advertising spent to obtain the leads or email addresses of subscribers.


“List” Definition: This is your database of email subscribers. This is the list subscribers for your blog, Facebook, twitter, and other social media sources. Most feel that this is the most effective source of revenue in online marketing. A.K.A. mailing list, customer base, audience list.

“Lead Magnet” Definition: free product download requiring a subscription to a newsletter. This builds your list. AKA Lead capture, free offer, etc. Example: FREE: Top 5 headlines for advertising that work. Subscribe to our email and get immediate download. (The headline article is the “lead magnet.”)

“Trip Wire” Definition: A “loss leader” introductory product, usually costing between $1.00- $20. The purpose is to turn a lead into a customer. “Something magic happens once someone actually purchases a product from you; they shift from just a lead, to a real customer”~ Russ @

“Core Product” Definition: A product under $200 that further engages a customer and establishes a new level of customer relationship. Product is low or no profit.

“Profit Maximizer” Definition: This is the higher-end product $200-$500 that makes the money. By now, your credibility with your customers has been established, and they trust that you provide value.

“Follow-up Series” Definition: These are the email campaigns that keep you in touch and engaged with your customers. You continue to offer value-based offers based on their interests. AKA Nurture. What’s missing in the graphic is the return of the customer to the funnel, for the second round of contact emails, based on their response to previous emails.

“Return Path” Definition: Theses are a series of email campaigns to keep your customers engaged and in some part of the traffic funnel. It is easier for a customer to buy from someone they trust and have had a good experience with. This step is missing in the graphic; imagine an arrow redirecting the customer to the content and calls-to-action steps.


This process seems complex, and it is. However, there are many systems available that automate this to an unbelievable level, and keep track of each response to each email or interaction with your site, facebook accounts, and email campaigns.

Do not let this intimidate you; you will learn it as you grow and build your site. There are baby-steps to take and it will become clearer as we go.

The most important thing is you understand your long-term goal is an effective TRAFFIC FUNNEL.

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