Have you ever been to McDonald? Have you ever been asked whether you want to upsize? And do you say yes? Perhaps you do not want an upsize, but from my experience, I know most people will say yes at least a few times.
You may be wondering why I am talking about McDonald. Well, the fact is you can easily apply the "upsize" strategy to your business and instantly increase your profit. This is called an upsell which is a form of backend selling. In this article, I will answer a few questions so that you have a better understanding of what is backend selling.
Why should I implement backend selling strategy into my business?
Well, first and foremost, backend selling strategy is easy to implement in your business and it increases your profit at the same time. Think of it this way, you are now selling to a group of customers who are already in a buying mode. Don't you think it is easier to sell more to a customer who is ready to buy? All you need to do is to ask.
If you don't ask, you will never get the sales as your customers may not know what else you have to offer. But if you ask, at least some of them will say yes. That means an instant increase in your profit by just asking one question.
By how much will my revenue increase if I use an upsell strategy?
Let's say you are selling an ebook about dog training and you are asking for a price of $49. You can always offer a premium package which may include audio and video at a higher price, say $99. Again, some people will say yes to your offer.
Let us look at the Math. Suppose you are not using the backend selling strategy. You just sold 100 copies of the basic package. So you have revenue of $4900. What happens if you implement the upsell strategy?
Perhaps, out of 100 customers, 50 of them bought the premium package. That means you now have revenue of $7400. That is an extra $2500 which is a 51% increase in total revenue just by asking a simple question. If you are not using an upsell strategy, you are leaving a lot of money on the table.
What are the different ways of backend selling?
The first way is to offer a premium package as mentioned above. Of course, there are many ways to implement backend selling. It depends on your own creativity.
Some other ways include selling a related product. For example, after selling a dog training ebook, you may want to consider selling you customer dog t-shirt, dog collars etc. Once again, a certain percentage of your customers will say yes.
Of course, you have to sell them related stuff. You do not want to sell them an ebook on "How to train your parrot to talk". It is unlikely that dog lovers will buy unless they own a parrot too.
In fact, it is also very likely that some people will come to your sales page and decide not to buy anything. In this case, you can try to sell them at a lower price, especially if you are selling a digital product. Since you don't incur any inventory cost for a digital product, it is always better to sell your product at a lower price. Lower revenue is better than no revenue. Of course, you have to be careful to do it the right way. If not, it will affect your credibility.
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