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Marketing Upsell / Downsell Funnel Question?

by Thrive-Online.com
6 replies
Hi everyone,

I have a question around a new consulting product that I'm offering to local business owners, and the associated upsell / downsell path.

I'm starting by offering a free report, in exchange for their details and their unique challenge they face, this is so I can then address that challenge in the custom free report I create for them (this in itself offers immense value for the client).

Once they opt-in, I also have an upgraded, more in-depth report that I sell normally for $397, but in this instance I'm thinking of offering it as a one-time-offer for $347 for the upgrade along with over $1000's worth of my consulting tools in digital format to sweeten the deal.

If they say "No Thanks" to this offer, I then funnel them down to a last chance downsell, by offering to give them only the consulting digital tools but take out the in-depth report for $147.

My strategy here is to try and filter out those who are going to spend money, and those who aren't.

My dilemma is that, this funnel goes in the face of what many of the marketing experts talk about, i.e. offer something for free, then something low-end in cost and certainly not over $100's to begin with.

I have been wondering in this instance, whether it would make more sense for my to offer the free report, then as the upsell offer a video review for only $97's, then the upgraded report for $197 and so on, this seems a gentler, more logical way in...

But I'm not so sure?

Any ideas, thoughts and input from personal experience and testing of such things would be very welcome.

Cheers,
Adam.
#downsell #funnel #marketing #question #upsell
  • Profile picture of the author Chris Pambos
    As you stated in your last paragraphs, you should start low and then give a logical flow to raising the price.

    Just imagine what your customer is thinking when they jump from a FREE offer straight to $397, they are thinking that you're simply crazy.

    It all comes down to testing price points but if you want to instantly begin making money, the below sequence appears to be more logical and a sequence that would actually generate you sales immediately.

    FREE OFFER > $47 > $97 > $147 ETC...
    FREE OFFER > $97 > $197 > $397 ETC...

    A good rule of thumb is to never offer the next upsell more than 3X of the previous offers price point, remember, your prices need to be a seem less flow, be congruent and make total sense logically from your customers point of view.
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    • Profile picture of the author Tom B
      Banned
      Originally Posted by Chris Pambos View Post

      As you stated in your last paragraphs, you should start low and then give a logical flow to raising the price.

      Just imagine what your customer is thinking when they jump from a FREE offer straight to $397, they are thinking that you're simply crazy.

      It all comes down to testing price points but if you want to instantly begin making money, the below sequence appears to be more logical and a sequence that would actually generate you sales immediately.

      FREE OFFER > $47 > $97 > $147 ETC...
      FREE OFFER > $97 > $197 > $397 ETC...

      A good rule of thumb is to never offer the next upsell more than 3X of the previous offers price point, remember, your prices need to be a seem less flow, be congruent and make total sense logically from your customers point of view.
      Have you tested this?
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      • Profile picture of the author Thrive-Online.com
        Hi guys... thanks for the quick reply.

        No, I haven't tested it yet, I've only just started re-constructing my marketing funnel and it only hit me today that I haven't really put much planning into this, so it's not live yet either.

        My thinking was, I have a free report and the logical step is to go to the upgraded report which is almost $200's, which is quite a big jump indeed.

        So instead, I could possibly give them a smaller video based review, but that would include my time and for under $100's it just aint worth it, as it would tie my time down and leave no room for leveraging my time to do what's important for the business.

        I could offer any number of reports etc, but then the value isn't there as I wouldn't be customizing it to their specific business and hence, I can't show them the value that would be provided in rock solid returns they'd be getting (or their money back)...

        So that's where my dilemma is really...

        I did hear from one of Dan Kennedy's students, Mal Emery that if you offer an awesome guarantee, it doesn't really matter what you charge as they are completely safe... But in reality, would this still be a barrier?

        Has anyone tested that at all?

        I could possibly have the funnel go like this:
        1. Free Report
        2. Upgrade to In Depth Report - $197 (there is no margin in this at all as
        it's an outsourced report, I'm just after the back end large sale).
        3. Upgrade even further to in-depth report and my consulting materials
        in digital "do it yourself" format - $347

        In essence they're getting thousands of dollars worth of value, it's just proving and showing them through copy, testimonials and guarantee's that it's a good deal...

        I'm still stuck on that price hike from free to $197 though... How on earth do I get around that, while still showing value to them?

        Or is it ok to just do it above as laid out and test it (I do feel that they may not buy though as it's just too big a jump)...

        Further ideas on this would be fantastic.

        Cheers and thanks for your replies and input so far, much appreciated.
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  • Profile picture of the author globalpro
    Adam,

    Most of the ones I see, and the ones I set up for many successful marketers, use the Free=>High$$=>Lower$$. There seems to be something to it.

    Thanks,

    John
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    • Profile picture of the author Thrive-Online.com
      Hi John,

      That's good to hear your take on things also, and I guess that I've seen both of these funnels many times, from "Low to High" and then the newer way of "High to Low" and it's just by chance that I need to set it up from High to Low.

      My thoughts are at least I'll get the serious ones in straight up and clean the rest up by the autoresponders, audios, videos and education programs that come out after they order.

      So from here it's just test and measure I suppose?

      Unless any there are any other specific thoughts that any others can think of that will see this campaigns success beforehand.
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      • Profile picture of the author Ralf Skirr
        Hi Adam,

        just because everyone parrots to start with low end prices like $9.95 does not mean there's no other way.

        It depends a lot on market and customers.

        Consider split testing the 2 offers. Send half of your subscribers to a low end offer (Maybe lower than 97, go below 30 maybe to thoroughly compare the different models.) and half of your subscribers to the higher priced offer.

        Ralf
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