Looking for a way to capitalize on the value each customer is worth to you? An easy way to do this is by offering different upsells. This is where you offer a complimentary or upgraded version of a product or service that a customer is currently purchasing. You can increase your profits by offering a range of different upsells.
One of the most well known examples of upselling in action can be found in fast food shops “Would you like fries with that?” You should use this in your business.
Acquiring new customers can be expensive so you want to get as much value as you can from each one. You can easily add 33% or more to your revenue stream by using this tactic. Some really good upsells or funnels can even double your initial sales or more! This is a great way to increase the total value of a sale.
For example, if you run a dance school, and each class is $15, you could provide a number of upsells. You could offer 3 different options of varying amounts:
Option 1 – 4 week course for $50. A better price for signing up for more lessons is always popular.
Option 2 – Gold Membership where for $120 a month they can attend as many classes as they want. Some will see this as a real bargain and from your point of view you are securing the income even if they don’t use them all.
Option 3 – Pro dance package for $200 a month, which allows them to attend unlimited classes and receive 2 private classes a month.
A good upsell path is often referred to as a sales funnel and can make or break a business. One model that we’ve used over the years is to offer a crazy deal on the front-end (a low priced, deeply discounted offer or a free plus shipping and handling offer) while having several upsells ranging from continuity offers to high end offers.
In this scenario your money is made in the upsells – not on the front-end. We’ve started multiple seven figure businesses this way over the years. The model is easily repeatable in almost any niche, but it wouldn’t be possible without a great sales funnel with high converting upgrades.
But it’s important to note that you don’t have to build a business around an upsell path like that (although that certainly can work). Just adding one or two upsells to your existing offer can greatly increase your earnings with minimal effort.
For instance, a business owner had a new offer that he was about to launch. He was encouraged to add at least one upsell to it, but since he was behind on his launch schedule, he was very hesitant and didn’t feel he had enough time to do so. In the end he created a simple offer based on something he already sold, shot a quick sales video on his iPhone, and put it up on a website to see what happened.
It was a poor quality video and not well presented. In fact he looked like he hadn’t slept for a week yet when he launched his new offer, the upsell made quite a few sales. The upsell actually MADE MORE MONEY than the front-end offer itself and was responsible for about two-thirds of the total money made.
Just that simple action made a huge difference. If he hadn’t taken and implemented that advice his launch would’ve been a third the size that it was. That would have cost him tens of thousands of dollars over the launch period.
So you don’t have to come up with something perfect, but you do want to have some way to generate more money in your sales funnel.
So consider offering a range of differently priced upgrades to your customers to increase the total of each sale. Your upsells can be complementary or additional options on the initial purchase your customer is making. Just commit to include at least one.
Offering different upsells to increase profits is just one way to grow your business through improving your sales funnel. For more great ideas and strategies use this awesome tool: BizFire’s Free Funnel Maker & Analyzer
