What is a Downsell?
A Downsell is the third element in the sales funnel. Do not underestimate the power of a down-sell because if you do it the right way, it makes a huge difference to your revenue.
It is so important to understand your ideal customers and their mindset. When you start to get what they are thinking, you can offer exactly what they want and value, hence, bringing you more profit.
This technique may save you 10% more sales, therefore increasing your revenue all by understanding your buyers’ mindset.
Your buyer may be thinking, “The Upsell is not worth my money.”
or “I don’t need these bonuses offered.”
When you understand the buyers’ mindset, you’ll understand the concept of the whole sales funnel. This task requires some research on your buyers’ behavior, but it is worth your time to be invested in the research. This would be a huge advantage, especially for digital marketers to know how to sell to their subscribers.
If you’re serious about creating funnels that work, check out Insutanto Funnels and see how easy it is to effectively grow your business.
Let me break down the whole “it’s not worth my money” mindset first.
When they are in your Upsell page, or the One-Time-Offer page, they might think that the Upsell is not worth the price. This scenario does happen, even though your Upsell offer is a really great offer, some of them wouldn’t take it because of the price.
Tweaking the price is the most common change in a funnel launch, regardless of how great your product is, and it is usually some price issue that causes the low conversion rate.
The second mindset is “I don’t need these bonuses offered.”
Some of the buyers just don’t seem to like bonuses. They may consider buying the Upsell only, but instead of getting bunch of bonuses that is not going to be useful to them, they might as well choose not to buy the Upsell. They would rather go somewhere else for the same product.
Why a Downsell Works
When you are doing a down-sell, this is basically what you’re saying to the customer:
If you think the Upsell is priced too high, then I’ll make a special promotion just for you! But, for me to lower the price for only you, it wouldn’t be fair to those who have purchased the product paying full price. So, you will not get the bonuses in this case. And the price is lower than the Upsell!
This is the whole concept of the down-sell. This is the main reason for having a down-sell. If the conversion rate of the down-sell is high, it can save you 10% or more sales.
Apart from this, you are creating a sense that they are getting the same thing with a lower price in your down-sell offer. You are giving out a special promotion for them to grab the Upsell with a lower price, always remember that people love special promotion. This is why down-sell actually works – it’s a system that understands the buyers and ready to serve to their needs.
Criteria of a Downsell
There are certain criteria for the Downsell offer as well, take note of the following points to avoid making mistakes in your Downsell offer.
First, when you are offering your Downsell, remove the bonuses from the offer. As mentioned just now, to be fair to the other buyers who had bought the Upsell offer with the bonuses and higher price, you must remove the bonuses in your Downsell offer in order to drop the price as well.
For instance, if you are offering how to generate traffic by using Search Engine Optimization as an Upsell to a lead generation course, you can offer some bonuses like done-for-you follow-up emails, membership site, and so on. This would be the offer from front-end to the Upsell, or the One-Time Offer.
This is how the down-sell should be like. You can apply this down-sell model in any one of your product sales funnel. After some time of doing this, it’ll eventually become your second nature.
Now, you may be wondering, how much should I drop the price and still can earn revenue from the down-sell offer? Of course, to things easier, there is a certain formula for this as well, if your product is $67, then lower it to $47. Another example would be $97 to $67.
You can afford to drop $20 if the Upsell is $67, which then makes it $47 for your down-sell offer. For the Upsell with $97, you can drop $30 and make it $67 for your down-sell.
Check out Insutanto’s simple, effective funnels and learn how they can grow your business.