The other day, another website we run, Get10000Fans.com ran a sale. We took an ebook we wrote about facebook marketing, and lowered the price for a limited down, all the way down to just ten bucks.
I’m sure our competitors look at us like we’re crazy. Some of them even get upset that we’re devaluing our products so much because it forces them to do the same thing.
But here’s the crazy part.
We actually generate more revenue when we lower our prices. Why? I’ll explain…
Lower Prices Mean More Customers
For starters, when we lower our prices, more people buy the product. It’s simple math. We actually saw a 100% increase in conversions when we lowered our price from $47 to $10.
Instead of selling 50-60 copies of the product, we ended up selling 128 copies. Not bad.
But that’s not where it stops. There’s no way we’d be happy with just $1,280 in sales.
Turning $10 Into $46
Before we ran the sale, we made sure we had a couple 1-click upsells in place. We displayed these “upsells” immediately after the customer purchased the $10 ebook. The upsell’s job was to show the customer another product they might like, with the opportunity to get it at a discount.
The first offer was for a much larger product, normally priced at $397. This product was a perfect compliment to the original ebook. (that’s a critical point)
Make sure when offering other products to new customers, you’re not sabotaging the first sale. That’s the fastest way to increase refunds.
So, we offered a 50% discount, enabling the customer to get it for just $197.
The result? 12% of the people took us up on the offer, leading to $2,955 in extra revenue.
The second offer was for a premium product called the Fan Page Funnel. This course sells for $1,997 and is currently off the market. (customer desire will increase even further if the offer if for a product they can’t get normally)
Again, we lowered the price by 50% and split it into a payment plan. (12 payments of $97)
The result? 14% of new customers bought the course, leading to $1,649 in sales. And remember, that’s$1,649 per month for the next 12 months.
Add the original $1,280 in ebook sales to the “upsell revenue”…and you’re at $5,884.00.
$5,884 from 128 customers = $46 per customer. That sure beats the $10 our competitors think we’re making doesn’t it?
How You Can Increase Your $/Customer
So, how can you boost your average order size? It’s a pretty simple answer. Add 1-click upsells to your checkout process.
Remember, there’s only 3 ways your business can make more money:
- Get more customers
- Get your current customers to spend more with your company
- Get your current customers to spend more often with your company
The article is all about #2. Convincing customers to spend more with you is normally achieved by raising your prices. If you don’t want to take that route, the best alternate is offering other products for them to buy.
Marketing Myth: a lot of people think offering other products to customers is annoying.
This drives me crazy. If a customer loves your brand, they want to know what else you sell. They want to know what other problems you can solve for them.
Think of a brand you love. Maybe it’s Apple. Ford. Amazon. Whatever.
The last time released a new product did it upset you? My guess is no.
Loyal customers love finding out about new products their favorite brand creates. And your customers will too.
All you need is a second product.
Creating Your 1-Click Upsell
If you’re using PayPal, 1-click upsells are almost impossible to setup. But you can still get the job done.
All you need to do is create a sales page for your upsell product and make that page the “thank you” page after someone buys.
All new customers will now visit that page as soon as their order is complete.
Want our pre-tested template for 1-click upsell pages? You can get it FREE by clicking the image below…
The only downside is this isn’t a true “1-click” upsell because they’ll have to enter their credit card info again. But it should work ok. (something is better than nothing)
Other tools like InfusionSoft and Shopify require custom plugins or scripts. And even then, sometimes you’re forced to use “pre-checkout” upsells which lower conversion dramatically.
The Easy Solution
The good news is we built upsells into SamCart so you can set them up on your own. You don’t need any coding experience either. All you have to do select one of the templates we have already designed for you, and you’re set.
Here’s a look at one of our upsell pages I referenced above:
The only thing I had to do on that page was record the video. SamCart did the rest. Pretty simple.
Plus, now you can split test which upsells work better. Which means you can boost your conversions (and sales) even higher by testing different prices, designs, etc.
Download This Template, FREE
Whether you use SamCart or not, you should download our “Ultimate Upsell Page” template, which is the actual HTML file so you can copy and paste it right onto your own site. (or just use SamCart and let us do all the hard work for you)
Comment Below: If adding an upsell could boost your sales by 25-50%, how much more would you make per month?