Profiting from Upsells, Downsells, and Backend Offers
Most Internet marketers are so happy to get a sale of any kind that they leave money on the table. Here’s what happens.
They create an information product. They build a video course or text-as you based course and a sales funnel. They have a landing page to capture email addresses, an autoresponder sequence to drive traffic to their sales page, and obviously a sales page. After they launch their product they generate a few sales and are ecstatic!
Maybe they follow-up with a few emails, but that’s pretty much where the selling stops. Don’t let this be you. This is what many beginners do. They have just one potential product in their sales funnel.
If this is what you’re doing as a beginner, you could be missing out on “free” money.
When someone purchases something from you, that individual is more likely than a stranger to buy something else from you. They are whipping out their plastic and making a purchase. They are showing faith in you and what you have to offer them.
It’s at this point that the person is most likely to purchase additional items from you. You offer extra products and services through upsells, downsells and backend offers.
What Exactly Is an Upsell?
You offer an upsell after someone purchases an information product from you. A lot of successful Internet marketers will offer a product for sale that is very affordable. They make a little money on that sale.
They offer tons of value for a really low price. They do this for a few reasons.
Firstly, it creates a sense of trust. If anyone buys that product, they are showing trust in the person selling it. Secondly, this creates goodwill. The customer is very happy that he’s receiving so much value for very little money. Finally, this introduces another sales opportunity (in some cases, more than one).
Here’s the process. After a person clicks on your “Buy Now” button, they are redirected to another sales page. This page thanks them for making the purchase and then says that there is another opportunity available for a limited amount of time. This is the upsell.
These are called upsells because they cost more than the original product which was sold. If someone purchases an e-book for $5, a logical upsell could be a $20 video course that explains everything in the e-book and also adds more value and bonus material.
Some Internet marketers will offer an upsell and if the prospect purchases the upgrade, they will be offered yet another upsell opportunity.
What if someone doesn’t purchase your upsell? In this case, you can send that person to another page which lowers the price of the upsell. Either that, or you thank them for their original purchase and add them to an email autoresponder sequence that eventually offers more products and services.
Now let’s take a look at those people who don’t buy the original product you’re selling.
What’s a Downsell?
Has this ever happened to you?
You’re looking for an e-book or course on some type of information. You come across one that you really like. You browse the sales page, look at the bonuses which are offered, and decide you’d like to buy it.
You click on the sales button and are taken to an order page. You discover the price is a little more than you want to invest. You go to click the “X” at the upper right of the web page and something happens.
Before you exit the page, a pop-up ad grabs your attention. It offers a downgraded option of the product or course you were checking out. You don’t get everything that was just offered to you, but the price is less expensive.
This is a downsell.
The marketer is trying to capture a sale of some kind by offering you a less-expensive offer. You will get fewer components or modules or items than was offered originally, but you also pay less.
The marketer does this because roughly 20% of your customers will supply 80% of your sales.
This is what makes is so important to grab that customer instead of letting him leave your sales page, possibly never to return. Once you sell someone anything, the likelihood that individual will purchase something else from you in the future is much higher.
This happens because of the psychological process in that person’s mind which occurs after buying anything.
People like to rationalize their purchases. If someone buys something from you, that individual can justify that purchase by making a future purchase. They are telling themselves that they would only buy something else from you if the first purchase was logical and beneficial.
A few other reasons are the trust and goodwill I mentioned earlier. All these factors mean that it is easier to sell to a current customer or previous client rather than a stranger. Using downsells can help capture that important first purchase.
What’s a Backend Offer?
If you ever purchased any type of consumer electronics item at a physical store, you’ve probably been offered an extended warranty. Extended warranties are also offered on items you buy online. Purchasing a new TV may mean that the manufacturer will replace it if anything goes wrong for the first 90 days after you buy it.
An extended warranty can be purchased for a year or 2 years or 5 years, but that added protection comes at an additional cost.
That extended warranty is a backend offer. If you are offered batteries for your television remote control, a surge protector and a sound bar or speaker kit when you’re purchasing the television, these are also backend offers.
The front end offer is the product you’re buying.
Backend offers are everything else that supports or accentuates the front end product. These are additional products that improve the experience and earn more money for the company selling them.
Upsells and downsells are backend offers.
They come after a decision has been made regarding the front end product. It’s important to note that backend offers can come days or weeks or even months after a front-end purchasing decision has been made. This is why it’s so important to use your sales funnel to collect email addresses.
The top autoresponder services (like AWeber and Get Response and MailChimp) allow you to segment your lists. This means that once someone buys a product from you, you can send them a specific set of emails. If a person decides not to purchase from you when you make an offer, they see an entirely different set of emails.
This is where you can use upsells and downsells as backend offers to improve the value you get from each customer.
Should I Use One-Time Offers or Special Offers?
The answer to that question is yes, yes, yes! You can include one-time offers that expire soon in your upsells and downsells. You can also use them in your front end marketing efforts.
This is one of the cornerstone marketing tactics successful companies use.
How many times this past week have you seen an advertisement with an expiration date? They’re everywhere. They are used because they are so good at generating sales. Sure, your product has to be good and deliver a lot of value. The price has to be right as well. Assuming you’ve hit on both of those points, providing an expiration date for the offer (one that’s right around the corner) can generate lots of sales.
Then there are special offers.
People like to believe they belong to an exclusive club or group. They like to feel special. Don’t you? Of course you do. I do too.
When I receive a special offer to purchase something it catches my attention. When I am told that the only reason I’m receiving this offer is because I meet some special qualifications, that makes me feel good about myself. After all, the person making the sales pitch is telling me that I’m special!
Special offers can exist in a lot of different formats. Always include an expiration date on your special offer to make it more enticing. If you add scarcity (limiting the number of products sold) this can dramatically drive up the number of sales you make and how quickly they come in.
How to Get Other Marketers to Provide Your Backend Offers
You might understand the power of backend marketing. You “get” the whole process, but you want to get your front end offer out to the masses so it can start generating sales on your store. You don’t have a lot of time, effort or money to create upsells, downsells, special bonuses and other incentives.
What do you do? You let other marketers do all that hard work for you.
I showed you several places earlier where you can sell information products. Click Bank, JV Zoo and the Warrior Forum have virtual marketplaces. You and other marketers like yourself promote their digital products. They offer a portion of each sale price when you make a sale for them.
Why not use these affiliate offers in your sales funnels?
Imagine you have created a dating course for single moms. That’s your front end offer. You could add upsells and downsells that were created by other marketers. Search CB or JV Zoo for courses or e-books on dating. You could look for anything that applies to single moms.
Some of those products are going to complement your dating course. This means you can use them in your sales funnel as backend offers, either as upsells or downsells. This saves you the time and effort of creating products for this profitable part of your sales funnel.
How to Create Back End Buyers with Your Email List
Your email list is valuable. You should protect it accordingly. Take care of it. Nurture it. Talk to the people on your list as individuals, because that’s what they are. Offer a lot of free value through your emails and people are more likely to open them up.
You should also use your email list to create backend sales opportunities.
These people are on your list for several reasons. They know you. A lot of them have purchased from you before. The ones that open your emails are interested in what you have to say and what you have to offer.
This is where you promote other products and services you develop. You can also present products offered by other marketers. These affiliate offers work great because the marketer you are promoting handles delivery and customer service and follow-up and all you do is promote the product.
I said it before but it bears repeating. Don’t always offer products and services in every email. If people feel like all you’re trying to do is get money out of their pocket, they will leave your email list in a hurry. You want to provide real value and truly help the people on your list. This means most emails should be informational only.
Every third, fourth or fifth email can be a sales opportunity. This is when you use your list to promote your own products or affiliate offers for backend sales opportunities.
Popular Backend Offer Ideas
Memberships make good backend offers. If someone purchases your product on organic gardening, you offer a monthly membership that offers organic gardening tips each month. Coaching programs are high ticket backend offers. You only need to get a few coaching clients to generate some serious money through a coaching program.
Why not create an upgrade of your current product?
This backend offer happens all the time when you hit a fast food joint. If you order a burger they ask you if you want to cheese on it. The cheese is an extra cost. If you just order a cheeseburger you’ll be asked if you want the combo meal, which includes fries and a drink. Again, you have to spend more money for that upgrade. Offering upgrades of your current products is a common backend upsell offer.
Once you have several products you’ve created from PLR, why not offer a bundle?
The process works like this. A client purchases your e-book that teaches the technical steps to self-publish an e-book on Amazon. You have other products that are related. You sell an e-book that teaches how to write great book headlines, titles, chapters and sub-headers. You have another that talks about writing a book description/blurb, and yet another on cheap ways to create great cover art.
Offer all those books and a discounted bundle after someone buys any single e-book.
Some easy ways to create products for backend offers is to sell the same product in different formats. An e-book can be turned into a video course. You can sell the video course individually or as content offered on a membership site. The audio from any videos you sell can be used to make podcast episodes. The same is true with blog posts and e-books.
If you have any digital product, you can repurpose it into different formats and offer those extra products on the backend of your sales funnel.