A sales funnel is a visual representation of the customer journey, from first discovering your brand to becoming a paying customer. It illustrates how leads move through different stages of the buying process and gradually narrow down as they’re qualified and converted.

Though often confused with the sales cycle, the latter outlines the internal steps a sales team takes to close a deal, whereas the sales funnel reflects the buyer’s journey from awareness to purchase.

The funnel shape reflects how many leads enter at the top, but only a portion convert into sales at the bottom.

Stages of a sales funnel:

• Top of the funnel (TOFU) - Awareness & Attraction
  Prospects first become aware of your product or service through ads, social media, or blog content.
• Middle of the funnel (MOFU) - Consideration & Engagement
  Leads engage further by downloading resources, signing up for newsletters, or attending webinars. This is where nurturing happens.
• Bottom of the funnel (BOFU) - Decision & Conversion
  Prospects are highly interested, evaluating options, and may request demos, trials, or quotes before making a purchase.

A healthy sales funnel is constantly being filled at the top, qualified in the middle, and converted at the bottom.