Upsells, Downsells and backend offers

8 replies
Hi

Can anyone explain to me the pricing structure and placement of upsells and downsells in a funnel. For example what criteria would make you pick an upsell or downsell for part of your funnel?

By reason of the name I thought an upsell was something that cost more than the original offer but have seen upsells that cost less as well. Also what is the difference between an upsell and a back end product?

Thanks

Andrew
#backend #downsells #offers #upsells
  • Profile picture of the author Daniel Elss
    Your downsell is a discount offer for your main product. Also add a bonus or two that have a lot of value. Some will buy sometimes just for the bonuses alone. The upsell is last as the they are already in the buying mode (we hope). Price range, I have heard many say should be more than original offer or at least same price.

    As far as criteria for Upsell, something related to main product, something that would go along with it well to make main product more powerful etc., same goes for bonus
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    • Profile picture of the author Andrew Servis
      Originally Posted by Daniel Elss View Post

      Your downsell is a discount offer for your main product. Also add a bonus or two that have a lot of value. Some will buy sometimes just for the bonuses alone. The upsell is last as the they are already in the buying mode (we hope). Price range, I have heard many say should be more than original offer or at least same price.

      As far as criteria for Upsell, something related to main product, something that would go along with it well to make main product more powerful etc., same goes for bonus
      Thanks Daniel for chipping in with that! Is the discount offer downsell generally a cut down version of your main product say a bundle with eBooks/PDF/Mindmaps or similar? and bonuses of course!

      I'm picturing that the downsell is basically where the person has not quite decided to buy the main product and is then offered a downsell offer to get them in the funnel as a potential buyer.

      But if they buy the product they then get offered an upsell that is a sort of special edition of your product, costing say 25% more or thereabouts.

      Andrew
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      • Profile picture of the author Marc Rodill
        Originally Posted by Andrew Servis View Post

        Thanks Daniel for chipping in with that! Is the discount offer downsell generally a cut down version of your main product say a bundle with eBooks/PDF/Mindmaps or similar? and bonuses of course!
        Yeah it's usually going to be a "reduced" package. Like if your upsell has 9 modules about 3 different things, maybe you offer them just 3 modules about 1 thing. And cut the price in thirds.

        Originally Posted by Andrew Servis View Post

        I'm picturing that the downsell is basically where the person has not quite decided to buy the main product and is then offered a downsell offer to get them in the funnel as a potential buyer.
        Yes you will see this a lot. Where if they click away they get the "Wait! Get it for only..." People do it because it works. Usually you take something out so it doesn't hurt your credibility of course. Then if they don't take that, they might get a squeeze page too. Or just the squeeze page if they don't buy.

        Originally Posted by Andrew Servis View Post

        But if they buy the product they then get offered an upsell that is a sort of special edition of your product, costing say 25% more or thereabouts.
        Actually your upsell can be any price you want. You set your own price. You can really make big leaps here, but whether or not it converts obviously depends on how good your upsell product is and it's perceived value.

        If it's not a really great offer, it'll convert less. But it depends on your goals. You might want to convert less at $197 and make more money than convert more at $27. Assuming it converts of course!
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  • Profile picture of the author Marc Rodill
    Typically it works like this.

    You would sell a product on the front end. When they buy they go to a higher ticket offer because they've got their money out already. It's proven that you can get a very high conversion rate on an upsell because of this.

    If they take you to a lower ticket offer immediately, that's just that person's preference. They might be dealing with poverty consciousness issues or something. Typically it's going to be a higher priced offer.

    But another thing could be, if it's a membership. They may want a lower ticket membership price monthly, because it's easy to get people in the door. And they know most people won't cancel something so low, and the recurring income really builds. So they might choose to go that route.

    The "standard procedure" for a downsell, is after they say "NO" to your upsell. So you sell them the front end, and you make them an additional offer for a higher price. If they say no, you take out part of the package you just offered, and offer it at a lower price.

    Then if they buy the downsell, they would go to upsell package number two. Same thing if they buy the downsell. They go to upsell number two. Basically an upsell and a downsell is typically going to be similar packages, but one is a "step down" from the other.

    The whole point of this obviously is to 1)maximize your transaction value and boost your EPC, and 2)deliver more value to the customers who want it.

    Help you out?

    Marc
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    • Profile picture of the author Andrew Servis
      Originally Posted by Marc Rodill View Post

      Typically it works like this.

      You would sell a product on the front end. When they buy they go to a higher ticket offer because they've got their money out already. It's proven that you can get a very high conversion rate on an upsell because of this.

      If they take you to a lower ticket offer immediately, that's just that person's preference. They might be dealing with poverty consciousness issues or something. Typically it's going to be a higher priced offer.

      But another thing could be, if it's a membership. They may want a lower ticket membership price monthly, because it's easy to get people in the door. And they know most people won't cancel something so low, and the recurring income really builds. So they might choose to go that route.

      The "standard procedure" for a downsell, is after they say "NO" to your upsell. So you sell them the front end, and you make them an additional offer for a higher price. If they say no, you take out part of the package you just offered, and offer it at a lower price.

      Then if they buy the downsell, they would go to upsell package number two. Same thing if they buy the downsell. They go to upsell number two. Basically an upsell and a downsell is typically going to be similar packages, but one is a "step down" from the other.

      The whole point of this obviously is to 1)maximize your transaction value and boost your EPC, and 2)deliver more value to the customers who want it.

      Help you out?

      Marc
      Yes Marc that helped a good bit cheers, I am nearly in nod land (it's late here) so the [2nd last] paragraph had my brain throw a bit of a fizzy fit

      But yeah it makes sense tho. I suppose it's all down to the product and content you have to offer, and what you can offer to your (potential) customers. Am I also right in saying that squeeze pages are not just as popular as they used to be as well?

      Some pitches do have the front end teaser but others go for a freebie offer with opt in if after you refuse to buy the main product, or perhaps a downsell. So the main point is to always try to offer as much valuable content to the viewer by using carefully choreographed pitches, and follow up that value with them in your opt in newsletter or free training or whatever?
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  • Profile picture of the author Marc Rodill
    Yes, that paragraph confuses me to read it too. It's not written very well!

    But what we should do, is offer as much value to them as we possibly can, at a price the market will bear. Clearly people don't want to charge too much for ethical reasons, but you never know what you can charge until you ask. Because the value isn't up to you, it's up to them.

    And squeeze pages are probably more popular than they've ever been. But if you want to get affiliate traffic, it's better to send to an offer. Then do a "traffic recycler" squeeze page when they try to exit. Sure, you might do a downsell first. I imagine affiliates would prefer that.

    See, affiliates and partners don't like to promote squeeze pages because they've been burned too many times. Unless it's some sort of big guru launch where they know the technology is probably going to pay out.
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    • Profile picture of the author Andrew Servis
      Originally Posted by Marc Rodill View Post

      Yes, that paragraph confuses me to read it too. It's not written very well!

      But what we should do, is offer as much value to them as we possibly can, at a price the market will bear. Clearly people don't want to charge too much for ethical reasons, but you never know what you can charge until you ask. Because the value isn't up to you, it's up to them.

      And squeeze pages are probably more popular than they've ever been. But if you want to get affiliate traffic, it's better to send to an offer. Then do a "traffic recycler" squeeze page when they try to exit. Sure, you might do a downsell first. I imagine affiliates would prefer that.

      See, affiliates and partners don't like to promote squeeze pages because they've been burned too many times. Unless it's some sort of big guru launch where they know the technology is probably going to pay out.
      When I said squeeze page I meant the $1 seven day trial offer type of thing, I aint seen so many of those these days.

      When you say burned is that where the affiliates were promoting monthly subscriptions and people were never informed clearly that was what they were signing up for hence causing a bit of a backlash from customers?

      I imagine that considering the whole funnel design not only for market penetration but for attracting affiliates is also something well worth doing.
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  • Profile picture of the author Marc Rodill
    That's part of it. You have to be upfront and cool with your customers. Sometimes people aren't. That's a problem. But mainly what I mean is that sometimes people have you promote their offers from a squeeze page.

    So instead of a sales page, you send traffic to the squeeze page. And your traffic opts-in, and the vendor promises to credit you on any purchases that your traffic makes.

    But it's really hard to know if they're really, actually coding your link into their emails, and not just coding their own links. What if they're coding only half of your links? Things like that.

    Plus, there's nothing really to stop them from doing that once you've sent them a ton of leads. So it really comes down to a trust issue.

    Usually people are more willing to promote a guru launch because those guys have more to lose if they screw a bunch of people over, and plus, the price of the product is typically a lot higher, so it requires a lengthier sales process to turn leads into prospects into customers.

    It's hard to go from, "Hey, I'm Mr. Fancy Pants Guru " to "Okay, it's $1,997, buy now" in one email so it requires more than that.
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