Every successful Internet marketer knows that the front-end of the sales funnel (the first offer) is not where the bulk of the profits are made. In fact, some marketers are even willing to take a loss on the front-end just to get new customers. Why? Because once a customer buys the main product, you can introduce them to upsells, downsells, and cross-sells—this is where the magic happens.

An upsell is an upgraded version of your original offer, while a downsell is typically a scaled-down version of the upsell. These offers add more value, and since the customer already trusts your product enough to make that first purchase, they’re more likely to buy additional offers. Think of it like ordering fries and a drink after buying a burger—it’s the same psychological principle.

The point is, if you control the product, you control the sales funnel, and this is the key to making serious money online.

Why Some Marketers Lose Money on the Front-End

It might sound crazy, but some marketers are willing to lose money on the initial sale to acquire customers. Why? Because the real value is in building a customer list—a list of people who are not just leads, but buyers.

These marketers know that once a customer is on their list, they can introduce additional offers through upsells, downsells, and future promotions, and these offers have the potential to make much higher profits. This strategy is especially common for digital products where the cost of delivering additional items is virtually zero.

The Real Profit Lies in Upsells and One-Time Offers (OTOs)

So, why are upsells and one-time offers (OTOs) so crucial? It’s simple: they offer additional value at the moment when the customer is already in buying mode. Research shows that customers are far more likely to purchase additional items right after they’ve bought something. That’s why you often see upsells or special “one-time offers” immediately after purchasing a product online.

The key to a successful sales funnel is not just having a great main offer—it’s having a series of offers that enhance the customer’s experience. These additional offers help you maximize the value of every customer who comes through your funnel.

And remember, the creator of the sales funnel usually makes between 50-100% profit on each upsell or OTO. This is why Internet marketers often make the bulk of their revenue from these secondary offers rather than the initial sale.

How to Build Your Own Sales Funnel

Now that you understand why controlling your own product and funnel is essential, the next step is figuring out how to build one. Creating a sales funnel means developing multiple offers—the main product and additional offers like upsells, downsells, and cross-sells.

Here are the two golden rules for creating a successful sales funnel:

1. The upsells and downsells should add value to the main offer. These offers need to complement the main product so that the customer feels like they’re enhancing their experience, not just buying extra stuff they don’t need.
2. These offers should be optional—the main product should fulfill its promise on its own, and the customer should never feel like they need to buy the upsell or downsell to get value from the main offer.

The more offers you have, the more opportunities you create to increase your profits. Some funnels include 3 to 10 different offers, all carefully designed to build on the customer’s initial purchase.

The Importance of Traffic and Scaling

Owning your product and controlling your sales funnel is only part of the equation. The next step is getting qualified traffic into your funnel. The more traffic you drive to your main offer, the more opportunities you have to present upsells, cross-sells, and downsells.

With each new customer, you’re building not just revenue but a list of buyers, which is far more valuable than a list of leads. A buyer’s list is filled with people who are far more likely to buy from you again in the future. This is where the real value of the back-end of the sales funnel lies—it allows you to turn one-time customers into repeat buyers.

Start Building Your Sales Funnel Today

The bottom line is this: if you want to make serious money online, you need to control your product and your sales funnel. That’s the only way to truly scale your business and maximize your profits. Without control over the funnel, you’re at the mercy of someone else’s system, and your income is limited by their rules.

So, if you’re ready to take your business to the next level, it’s time to create your own product and build a funnel around it. The sooner you start, the sooner you can unlock the full potential of your online income.