2X Your Revenue Like This

Summary

• When pricing upsells, don't price the second thing slightly higher than the first. For example, if the first thing is $100, don't price the second thing at $120.
• Customers have different spending powers. The top 20% usually have five times the spending power of the bottom 80%.
• To effectively upsell, you should make the upsell five times more expensive than the original purchase.
• Even if only 20% of people purchase the upsell at 5x the price, you can double your revenue.

Video

How To Take Action

I’d suggest first examining what you currently offer and identifying a product or service for upselling. Make sure this is valuable and related to the initial purchase your customers often make.

Next, consider changing your approach to upselling prices. Instead of small increases, try making your upsell five times the cost of the original item. For instance, if your original product is $100, price the upsell at $500. This might sound big, but remember, customers have different spending powers, and the top 20% can spend much more.

Think about how you promote this upsell. Just because it's a bigger price doesn’t mean you should pressure customers. Make it clear why it's valuable and how it enhances what they’re already getting.

Evaluate your results. Even if only a small fraction, like 20%, go for this upsell, you stand to double your revenue. Monitor these sales to understand your customer base's behavior better.

Lastly, communicate effectively. Let your customers know upfront about the potential value and benefits of the upsell. Make it a natural extension of their original purchase to increase their likelihood of buying.

Implementing these strategies can help maximize your revenue without a lot of extra time or cost. Focus on creating value and understanding your customer's capabilities.

Full Transcript

a lot of people don't know how to price their upsells they have one thing for $100 and they try and upsell a second thing for $120 that's not how you want to do it customers tend to be fractal meaning that the top 20% has five times the spending power of the bottom 80 and so if you're going to do an upsell make the upsell five times more so that even if 20% of people buy something at 5x the price you double your Revenue