Have a funnel or show ALL options upfront?

9 replies
Hi, fellow Warriors!

Let's say we want to sell a piece of software.

What do you think would work best, and WHY?

- - - OPTION 1 - - -

Front-end: Regular version at $19

OTO 1: Deluxe version at $29

OTO 2: Deluxe Developer version at $39

Pros: You can have a dedicated page that sells the benefits of each option. Plus, once people become customers at $19, it's easier for them to buy more of the same.

Cons: Some people may not even buy upfront, because they would only be interested in a developer license (if they do client work). Plus, some people may find OTOs distasteful.

- - - OPTION 2 - - -


Everything shown at the front-end (3 order buttons):

Deluxe Developer version at $87

Deluxe version at $48

Regular version at $19

Pros: Everything is transparent which creates "good vibes." Plus, by showing the most expensive version first (Deluxe Developer), we "anchor" a high price and set the expectations (ie: "this is expensive, so it's probably good").

Cons: You have all options "crammed" together, and not explained sufficiently. For example, people who buy a piece of software for their own use and those who buy it to use with clients are typically two different kinds of prospects.

- - - - - - - - - - - - - -

I know one answer can be "test", but I'm looking for feedback from people who have tried both and have seen which works the best.

Thanks in advance!
#funnel #options #show #upfront
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  • Profile picture of the author Oziboomer
    Personally I prefer to see my options up front and make an educated decision as to whether or not I need the added benefits or expansions of the product I'm buying.

    I do sell things both ways however but one thing I think is important if you want to maintain trust throughout your offer is to make sure the future pacing is obvious to the buyer.

    What I mean by that is if you are going to have a FE---> OTO--->OTO2 etc that you spell out to the buyer what is going to happen next.

    It is a far better experience for a buyer to be informed that you have something additional you will offer them after their first purchase rather than they get a surprise that their order was not complete.

    With software in particular you tend to see more offer where the various options are listed in one offer at varying price points.

    The never ending upsell downhill path tends to be used more in the IM type offers rather than the legitimate software offers out there.

    The issue with going down the upsell route is you can leave a sour feeling in your purchaser's mind if you don't approach it right.

    If you have suggested they can have X number of additional features that are addons which will enhance their original purchase before they make the initial FE purchase I think you generate a better reputation.

    It seems however that most IM sellers don't tend to value reputation ahead of maximising profits so they continue with the upsell that might surprise people who then get post purchase regrets because they feel their initial purchase is now lacking something.

    We all do it.

    Upsells, downsells and cross sells but it is how you signpost that future offer that can make it really well received or not.

    At least that is my feeling and the longer I do things the more I tend to let people know ahead of time there will be another offer or I just show them upfront "here's the deal".

    Best regards,

    Ozi
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  • Profile picture of the author markosvald
    Personally, I would choose option 1. As upsells have worked in the past very well so it should work these days too. Or maybe you want to test it out and see yourself what performing best for you.
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  • Profile picture of the author Kay King
    I would choose option 1.

    If someone 'buys' at $19 and they decline an OTO for $29...how likely are they to go for a second OTO for an even higher price?


    If someone buys at $19 - then buys one upgrade - only testing would tell you if they are 'primed' for a second price increase/upgrade for the same product.


    I agree that showing all options would be the first thing I would test....but...


    The OP doesn't seem to have prices set as yet. Why would the second option be so much more expensive or are you simply guessing at numbers for now?


    There is no need for 'crammed together' - it's your sales page so you can describe as much as you need to in order to explain the different options.
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  • Both options work if your product quality is good. You can choose IM type of way or the more 'legitimate' type of way. It also depends on the audience type, some may feel irritating with the upsell route, but some may used to it and they are more rational.
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  • Profile picture of the author palmtreelife
    Full disclosure: I haven't sold software online.

    It sounds like there is a different buying habit with software customers than regular customers for every day products? Or have I interpreted something wrong?

    Option 1 requires 2 upsells to earn a maximum of $39 per customer, correct? You have to ask the customer to buy 3 times to get $39.
    Option 2 can earn $48 from an "average" customer with a one time ask.

    There is clever psychology in play with Option 2. We tend not to get the "cheapest" product nor the most "expensive". Have you seen sales pages presenting all packages and the middle option is tagged as "most popular" or "best value"? These businesses are pushing that button even harder and guiding you to buy that middle priced product.

    If you decide to go with Option 2, maybe consider trying that "best value" or "most popular" push to sell more of your $48 product.

    As the others and you have said, you won't know for sure if what we're saying is true unless you test.
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    • Profile picture of the author Jeffery
      Originally Posted by palmtreelife View Post

      Full disclosure: I haven't sold software online.

      It sounds like there is a different buying habit with software customers than regular customers for every day products? Or have I interpreted something wrong?

      Option 1 requires 2 upsells to earn a maximum of $39 per customer, correct? You have to ask the customer to buy 3 times to get $39.
      Option 2 can earn $48 from an "average" customer with a one time ask.

      There is clever psychology in play with Option 2. We tend not to get the "cheapest" product nor the most "expensive". Have you seen sales pages presenting all packages and the middle option is tagged as "most popular" or "best value"? These businesses are pushing that button even harder and guiding you to buy that middle priced product.

      If you decide to go with Option 2, maybe co nsider trying that "best value" or "most popular" push to sell more of your $48 product.

      As the others and you have said, you won't know for sure if what we're saying is true unless you test.

      Target Market! Those websites deploy targeted Ads or targeted organic SEO to send a Target Market to the page. Seasoned Internet Marketers always do research first to identify the Target Market and how much they are willing to pay (price point), deploy optimized advertisements of some sort and converts the Target Market to buy the "most popular" price point. The term "most popular" is in effect a Marketing Technique.
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  • Profile picture of the author perneali45
    Thanks for the replies.

    How about this:

    - Only one version (no Deluxe) to keep things simple.

    - Developer options present in the same pricing table (upfront).

    - Pricing structure that anchors a low and high price point and makes the two middle options become "no brainers".

    Example:

    - - - - - - - - - - - - - - - -
    1-site license: $19

    10-site license: $29

    25-site developer license: $49

    100-site developer license: $99
    - - - - - - - - - - - - - - - -

    What do you think?

    Thanks!
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  • Profile picture of the author palmtreelife
    That looks much more transparent. Clean and clear. I would still think about putting a tag on the 25-site developer license as "most popular". Otherwise, I feel most people would lean toward the 10-site option. To maximize your profits, you want to make the decision easier for fence sitters as well as entice customers to spend just a LITTLE bit more than they were planning to spend.
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  • I would go with option #1. Give them the opportunity to buy from you for less effort. For example, if you were selling a course about "joint venture marketing", i would offer the JV course as (example) $27, and offer a deluxe version of the course that includes the documents/scripts/templates/etc for $47. I would think most would pay the $47 right upfront until waiting to buy the first course, then have to go through the Paypal process again and buy the $47 upgrade.
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