How To Close Everyone Downselling Like A Pro (ALEX HORMOZI)
Summary
- Believe that everyone buys something, as everyone has some money and problems that need addressing.
- Aim to sell the primary program but be prepared to downsell when necessary, especially if a customer can't afford the primary offer.
- Downsells should be executed properly, or else it can seem desperate and unethical, leading to a loss of the sale.
- Use a step-down method with various offers in the back pocket to downsell effectively.
- Leverage the principle of reciprocity to persuade in downselling; people find it hard to not give back after receiving something.
- When offering a downsell, set terms that give something back to the business, like testimonials, bringing a friend, or giving reviews, in exchange for a price reduction.
- Prefer to add bonuses or ask for more from the customer rather than removing features from the original package.
- Make downsells fair and collaborative, presenting them as a way to make the offer work for the client.
- Start with the primary offer and step down with adjustments in terms, commitments, and prices while also adding conditions like giving testimonials or bringing friends.
- Use fair and accommodating tonality with phrases like "fair enough" to make it easier for the customer to agree.
- If the customer continually refuses downsells, the issue may not be money; the salesperson may have lost rapport earlier in the conversation.
- Confront disengagement early on in the sales call and address it directly.
- The ultimate goal is to get a foot in the door, build trust, and potentially upsell to the full-price program later.
- Knowing how to downsell effectively can significantly increase close rates without sounding pushy or desperate.
Video
How To Take Action
I would suggest starting with your primary offer when you're selling something. It's important because it's usually the thing that helps the most. But, not everyone can afford it, so you need to be ready with other options to make sure you can help different people. This is called downselling — it's like having different steps.
To downsell well, you have to be careful. Doing it wrong can make you look desperate. To avoid this, always have a few offers you can switch to. It's like having a plan for each step the conversation might take.
One good way of doing this is to trade something. This uses a cool trick: when you give someone a little something, they usually want to give something back. So, when someone says they can't afford your main offer, you can offer them a lower price if they do a favor for you, like giving a review or bringing a friend.
Here's an action plan:
- First, try to sell your best program.
- If they say it's too much, offer to cut the price if they commit to a longer time.
- If they still can't do it, ask for a smaller commitment like a weekly plan.
- Add value to the offer instead of taking away stuff. Like, you give more help or extra bonuses.
- Speak nicely and be understanding. Use phrases like "fair enough?" It makes it easier for them to say yes.
- If someone keeps saying no to your downsells, it might not be about money. Maybe they lost trust earlier. If this happens, try to find out why they're not engaged and fix it.
Remember, the goal is to help people get started with you. Later, they might decide to get the full thing. So, it's okay to offer a smaller, cheaper thing at first. This way, you can build trust, and they might buy the bigger offer when they're ready.
Downselling like this can really raise how many people say yes to you without looking pushy. It's like giving others the chance to choose what works for them and helps you at the same time.
Quotes by Alex Hormozi
"Everyone buys something"
– Alex Hormozi
"Having a key set of cards that you have in your back pocket that you can choose to play as you go down"
– Alex Hormozi
"The person who sets the terms always has the power in the agreement"
– Alex Hormozi
"The beautiful thing is, after you exchange something, the person who sets the terms always has the power in the agreement"
– Alex Hormozi
"Don’t worry about it, it’s just like, let’s get you going, let’s get you in the in our world so that we can provide value and then after that we’ll make it work"
– Alex Hormozi
Full Transcript
quick uh little tactical training for you today as well um how to close everyone down selling like a prop so one of the big beliefs that i like to set in our community is that everyone buys something what i mean by that is that everyone has some money right no matter what and everyone has this problem and we should find a way to help everyone to a certain degree right and obviously you want to try and sell your primary program because that's going to be your objective that's because you think it's the thing that's going to help them the most etc but there come times where people can't afford it for whatever reason right this is reality all right anyone tells you otherwise whatever full of it so in the real world of sales understanding how to down sell like a champ is one of the reasons that you'll be able to massively increase your pro your close rate now doing it properly is one of the key is one of the key points here all right so when you do it poorly it sounds like begging and it sounds like you totally lose your frame uh in the sale and now you sound desperate and aggressive and clingy and you sound like you've got i love this term commission breath and and basically just ruins the sale and then they don't even if they could afford it they don't want to buy from you because of what you're doing right it sounds unethical etc like wait you just said it was this price you're just going to keep lowering it and so the key to doing this is having a key set of cards that you have in your back pocket that you can choose to play as you go down right so it's kind of like a step down all right and the way that you do this is through exchange all right so one of the other powerful influences in human psychology and jet in general is is reciprocity all right we have a very hard time uh if someone gives you something not giving something back the beautiful thing is is that after you exchange something the person who sets the terms always has the power in the agreement so for example um if someone asks me to do something which is essentially what they're doing when they say no they can't afford that they're asking you to do something for them right can you do it for less that's that's the implication right they can't do it for that what else can you do and so uh there's a study that like showed this enough i mean there's hundreds of studies that show this but where they took people in colleges and they let them uh cut in line and the thing is is that doing a small favor people don't have a good idea of what of what it get like equality in an exchange is and so if you do a small favor for someone and after you do the small favor then make a big ask it's still very hard for people to say no all right and so that's the thing is that people don't have with reciprocity an idea of fairness of exchange there all right like it's like hey yeah remember i bought you lunch yesterday uh can you take me to the airport and back this weekend or can you help me move out of my apartment like that's not a fair exchange but the thing is is that with reciprocity people will say yes to things because of just underlying human psychology all right so here's how you use reciprocity which is one of the strongest things motivators for persuasion in a down selling environment all right so after let's say you you offer your your primary program you're like hey it's you know it's x right and they're like i i just can't afford that so he says this you say tell you what i'll do it for this if you xyz right if you leave me a testimonial so i'll drop the price in half if you leave me a testimonial fair enough and when you say that it's like they asked you to make a a a some sort of adjustment you take that in consideration you make the adjustment and you make the offer again and you say does that sound fair right and the thing is is it's very difficult for people to keep hearing that over and over again and not say yes so i'll give you an example one of the step downs that we use that's really successful and so let's say we're selling a front end program for 300 all right for 300 bucks a week very straightforward three weeks all right so they say no they say you know that's too much for me to say no problem what if we just did 49 weeks for 12 weeks right with a commitment and so we're doing is that you always have these you always have these cards that you can play so in a fitness example right you have the term so how long they're committing to that's number one number two you can ask them to give you a testimonial you can ask them to give you reviews you can ask them to bring a friend and each of these things are things that you can ask them to do so that you can ethically lower the price because you're asking them to do more all right on top of that you can also add bonuses in the original package i don't like removing bonuses as much because like i want to give them those things um and so it's more like i'll i'd rather go in the other direction of asking them to do more things for me um and that way if someone else is like why is she paying x and i'm paying z you can say well she's doing some extra things for me that you're not and they're like oh and so that way you're not saying like two people are having different prices for the same program because you've made additional terms to the agreement right so traditional step down be like hey can you do this thing for 2.99 they say no you say awesome no worries uh you know what i can just cut the price in half and if you can just commit to 12 weeks fair enough they say no and you say okay no worries let's just not even worry about the commitment just get you started today for 49 bucks fair enough they say no you say all right and you have to acknowledge that it gets kind of increasingly ridiculous as you make more and more offers right in it in a light tone because it's still going to pull on that internal mechanism inside of people to take action and say yes okay so we started we've already done two drop downs we did half price with commitment then we removed commitment 49 all right we're 49 and we were limited commitment that's two step downs all right step underneath that you're like all right how about this i'll do it for 39 if you leave me a testimonial at the end fair enough and also when you have the testimonial you're also putting another implication that they're going to get results so you're selling while you're while you're down selling at the same time right now you've said three down cells fair enough they're like no i still can't do it you're like all right cool let's just get you kicked off at 29 dollars a week pay as you go don't worry about it uh and just bring a friend in the first 30 days all right that way i can at least cover my costs and that way it gets me to at least half price what i was saying before fair enough it's hard for someone to hear that make have you make all of these uh what is it accommodations for them and not say yes three four five six times and be very clear about how you're asking for this don't just say sound good sound great cool that's not the call to action the call to action when you're down selling i mean i really like this in general what i'm selling is fair enough sound fair because you're lowering the bar to just say yeah that sounds fair you're like awesome great what card you want to use let's get you started right if you want you can even transition is really cool do you want to do your uh you know nutrition appointment in the morning or the afternoon so you're already taking more micro steps in the right commitment before you ask the card if you want to do that all right but i'll go i'll go through this one more time for everyone who's listening so primary offer it's 2.99 it's got all this amazing stuff uh fair enough no okay no worries um what we can do is if the price is enough but you really still want this if you if you want to just go longer which you're probably gonna need anyways right um i'll do it for 49 a week which is half of what i said earlier all right fair enough and when you're asking this you have to ask it like you actually want them to say yes and that's why the tonality is so important don't just like read the script and be like sound fair like you have to be like fair enough like you have to really you have to ask it like you're actually asking them to say yes i know this sounds minor but it's everything over the phone when you don't have your body to make so that they can see because only nine percent of communication is verbal right and everything else is how you say the words not just the words you're saying right i can give you another example of like how i can take one sentence and make it mean like six things by how you say it all right sale is the same thing so big program they say no commitment at half price fair enough they say no you say listen don't worry about it i get it sometimes it can be scary how about this i'll just let you get started for day pays you go i'll prove myself all right we don't have to get married we can just start first date right uh 49 all right fair enough you got to really wait for it and they're like ah you're like okay you're killing me that's okay no worries we'll get this started all right we'll figure this out together the thing is is that when you're doing this it's collaborative you're on the same side of the table saying let's figure out a way to make this work right because if you have built the rapport throughout the sale you've dug the pain right so they know that this is something that they need to do and they know they need to do it with you they will work with you as long as you've maintained rapport and you don't get aggressive right and so you're like okay no worries how about this i'll do it for 39 a week all right so it's 25 off of my already 50 off right uh if you just leave me a testimonial at the end fair enough it's hard for like it's hard for people to keep saying no to that and you're like okay 39. all right i'll do all right this is this is the this is the the best i can do all right because at this point i'm pretty much paying you to work out all right so it's i can do this for 29 all right just send me a friend in the first 30 days that way at least um i can get back to the 49 that that just at least covers my costs fair enough we say it like that you see how the tonality changes right they're like man this guy's really trying to help me out he's really trying to accommodate me and so when you drop down that many like at this point we're at six drop downs okay so so this person all right um if they say no at this point then in my opinion it's not a money thing you lost them earlier on in the sale and they're trying to get off and at some point earlier on they became disengaged with the phone call right that's where you get the hey can i get the credit card they hang up right it's because they're just done with the conversation they just want they just want to get off the phone right in person they can't just get off the phone you have a little bit more fighting room over the phone it's not that way right and so these are the things and that's why you have to confront the obstacles earlier on like someone's disengaged they're not paying attention they're giving you surface level problems that's really like hey can i be real with you instead of nice to you and then you deliver the deliver the pain like hey i'm not saying that to make you feel bad all right i'm saying that so i can help right and so when you say that it's like you've you've given yourself permission to inject the truth rub the pain a little bit but then you you put a band-aid on it afterwards all right and so anyway that's that's that's earlier on objections i won't get into that right now um but knowing how to down sell will massively increase your crows rate and by adding these little cards that you have that you can trade with people on allows you to have flexibility in the deal right and then that way they can feel like you accommodated them you still help them and then ultimately what you're doing is just trying to get your foot in the door because in seven days and 14 days they're finally going to trust you and then they'll buy the full the full price program later like don't worry about it it's just like let's get you going let's get you in the in our world so that we can provide value and then after that we'll make it work all right so uh two cents on down selling you need to know how to downsell and you know how to do it ethically without sounding like you're begging or being pushy and that's how you do it all right lots of everyone if you like this drop a comment drop a review drop you know drop of whatever engage with this um and uh have a have a miraculous wednesday all right catch you soon bye [Music] you
