Critique Of My Sales Funnel

I keep hearing over & over how a business needs to have a sales funnel. I've tried in the past without luck but maybe my execution was poor. Here's how I understand a sales funnel:

1. 97% of customers are not ready to buy right now (sounds about right. I get 2.5% conversion from my website.)
2. So you offer visitors something of value (e.g. free guide) that they give you their email address for.
3. You drip feed them useful content via email.
4. This keeps you top of mind...

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