The fastest, easiest way to grow your business is to increase the dollar value of a transaction. That’s why I recommend crafting an upsell for every offer you make to your customers.
An “upsell” is simply selling a customer more products in a single transaction. A classic example is fast-food restaurant employees asking “Do you want fries with that?” when customers order a burger. When you upsell, there is no additional cost to acquire the customer, so you generate higher profits.
For greatest success, the upsell should be relevant to your core offer. Look at upsells as a way to deliver more value. When you deliver more value to the customer, you generate more income for yourself.
For example, if you’re selling a teleseminar for $29, a proven upsell is to offer the audio transcripts for $10 more. If the content is good, most students will want to listen to the audio again and read the transcripts.
Tip: Don’t have only one upsell offer. Test at least two or three different upsells to find the offer that is most compelling to your customers.
Also assign your upsell a discount dollar value. Tell customers what the retail value of your upsell offer is, and give them a discount for adding it to their order today.
To see an upsell in action, go to www.MindMotivators.com and click on any of the order links to go to the order page. There, you will see “Today’s Special Offer.” This is our upsell. Here’s what it says:
“Check this box to get the resell rights to the Silver/Mandossian 21 Mind Motivators course for only $249. You save $100 off the $349 license fee.
“This gives you rights to resell this incredible package and keep 100% of the money. Plus everything you need to make money is included in your license. You’ll be handed this proven and tested Website and support materials under these strict Terms & Conditions”
Typically, 15 to 30 percent of customers will say “yes” to an upsell.
If your upsell product is very relevant and your offer is irresistible, you can have as high as an 83 percent upsell, which is the highest upsell percentage I’ve ever had, back in 1995. It was for a 35 millimeter camera called the Nippon Camera, which sold for $20.
When the customer would call in and place an order, the operator would say “Well, if you take advantage of today’s special value, you’ll get the Nippon flash for only $16.95. That’s a 50 percent savings, and we’ll pay your shipping and handling. You’ll save a total of $20. May I add this to your order?”
Five out of six people said yes. If they declined, I had another request. It was in the form of a question. The operator would say, “Well, you do want to take pictures indoors, don’t you?” When the customers agreed, the operator would restate the offer and point out that the satisfaction guarantee applied, so if they didn’t like the flash, they could send it back.
How has adding upsells to your offers affected your revenue and profits? Share your experience below! ~ Alex
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