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There are all kinds of ways to describe a marketing sales funnel. The idea is that if you’re selling anything – your services or your products – you have to get lots of people in at the “top” of the funnel. Some of them (a smaller subset) will become leads that can be marketed to. Some of those leads (a smaller subset again) will become customers after they pay you money.
The set of people you’re working with is wide at the top, and narrower at the bottom when they pay you.
That’s easy enough to understand.