Sunday, January 11th, 2009

Upsells, Downsells, One-Time Offers?

burger and friesOne of our Twitter friends asked this question:

Q: “What’s the difference between a one-time offer (OTO) and an upsell? I was taught they were the same thing, and if you can re-educate us on the subject, I’m all for that!”

A: We thought that was a great question because the differences are sometimes very subtle and easy to confuse. So we decided to record a brief video and do a direct comparison between them, as well as shed some light on how downsells work.

Please understand this is our perspective, and it’s entirely possible that your perspective will vary. We welcome your comments and value your opinions, so please share them in the comments below.

Don’t forget to download your free copy of Internet Marketing Sins if you haven’t already done so.

If you’ve ever been stuck in “upsell hell,” then you need to read it. It also helps shed light on how to make upsells and one-time offers work much better for both you and your customers!

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Category: Selling
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  • First off, great video. Mmm... burgers! Second, I suspect as marketers we need to come up with different words for a "before the order form upsell", and an "after the order form upsell".

    Let's get our collective marketing heads together and come up with some new terms that encapsulate the difference in a single word or two :)

    Third... with the "one time offer", I'd suggest that a high priced initial product, followed by a lower priced one-time-offer product can also work well, because of the contrast principle. If a person has just spent $99, a one-time-offer of $19 seems small by comparison. I've used both, and they can both work well.

    Anyway, I loved the video!

    Paul Hancox
    http://www.OptimalInfluence.com
  • Thanks Paul! :)

    How about "Pre-Order Upgrade"?
  • Scott
    Originally Posted By Paul | OptimalInfluence.com
    First off, great video. Mmm... burgers! Second, I suspect as marketers we need to come up with different words for a "before the order form upsell", and an "after the order form upsell".

    Let's get our collective marketing heads together and come up with some new terms that encapsulate the difference in a single word or two :)

    Third... with the "one time offer", I'd suggest that a high priced initial product, followed by a lower priced one-time-offer product can also work well, because of the contrast principle. If a person has just spent $99, a one-time-offer of $19 seems small by comparison. I've used both, and they can both work well.

    Anyway, I loved the video!

    Paul Hancox
    http://www.OptimalInfluence.com
    </blockquote
    >
    -----------------------------------

    Oops, sorry I messed up my first post. How about "preup" and "postup". Or if you want to make it specific to the order form, "preform" and "postform". Preofo, postofo.
  • Awesome Video! Thank you!
    You hit the nail on the head on so many points.
    There are several marketers out there who I won't even subscribe to because of what you spoke of in the video. The "Upsell Hell" is annoying and time consuming.
    As for excuses, how about "the taxman cometh, help" as soon as I see that one - delete!
    I could go on... but will end it with another thank you and with marketers like you to learn from I shouldn't ever make those mistakes!
  • Matt
    You wanna know what's upsell hell? GO check out the DADDY of upsell hell..... a domain registrar who uses superbowl ads. The CEO also does video blogging with 2 busty girls beside him ; )
  • GoDaddy definitely offers a lot of upgrade options, but technically, it isn't what I define as Upsell Hell. Here's why...

    All their options are offered BEFORE the credit card data is submitted, which means that you can close the browser at any time and decline to continue the purchase process.

    Upsell Hell is defined as "holding your credit card hostage while bombarding you with additional offers, and refusing to give you what you originally paid for until you've seen all the upgrade offers". In other words, if you decide to close the browser window at any time during this bombardment, you will not get the chance to collect the product you originally bought, because you are never taken to the "download" page.

    At least that's how I distinguish it. :)
  • I really wish there would be an option to READ rather than be subjected to "waiting in upload hell".

    I have no idea what "part 3" of Sylvia's e-book says, nor what was said in this video. After 10 minutes, the little swirly thingie in the middle of the screen was still swirling. Very hypnotic, and all, but not a particularly good way to impart information. Yes, it's probably the fault of some component of my computer set-up-- Windows XP, AOL, Norton... who knows? I can't change any of them.

    Really-- I am capable of reading. Rather quickly, even. Probably quicker than the video would play, if it would upload. If I want to be entertained-- I'll get a video. For "real" information, I want print.
  • @Kaytee - My guess is that the server was hammered at the moment you tried viewing the video. It just came out so a ton of people were watching simultaneously.

    I'd suggest giving it another shot, and see if it works for you.

    Q: Do you typically have problems watching web videos? Like, for instance, the videos on MarketersBoard.com or is it just that one?

    Curious, because most people prefer the video style, and I'd prefer doing videos anyday. I may consider getting it transcribed, but I'm reluctant to do that, since so many have told me they prefer video.
  • @Sylvie Fortin -

    Still got the "twirly"-- shut it off after about 3 min. I have been able to view videos from other sites, so it's not just a general "video viewing" problem.

    Re: "video" vs "print". I prefer print. Slide shows vs print-- I prefer print. Movies vs books-- I prefer books. I guess I'm a dinosaur, but I get more out of the written word than I do out of most audio or video "lessons". There are fewer distractions to take away from the message. The only exceptions, would be videos of something that requires demonstrating movement-- like dance, gymnastics, mechanics, etc., or audios of music and other sound demonstrations.

    Furthermore, HTML loads a whole lot faster than videos. And, it's easy to go back and check if you seem to have missed something or ant to review a section.
  • @Kaytee - Thanks for your comments on this. It's great to get feedback from different people. It helps me plan ahead for future products.

    If I do a transcript for the video, I'll send a notification letting you know about it. At the moment, the transcription team is swamped, so it will need to wait. But I'll keep it in mind. :)
  • @LoisSmithers
    Great video. Thank you so much. I've experienced upsell hell from a prominent, well known marketer. I overlooked the first time. Then he came out with another product and there it was again. I declined the upsells (4) only to be offered them again for a lower price. I left feeling he wanted a sale at any price which diminished the product's value (to me).
  • @@LoisSmithers - Excellent point, Lois. That's precisely what I was trying to say in the Internet Marketing Sins report.

    By using the Upsell Hell process, marketers may see an initial increase in revenue, but a steep decline over time, as well as a destruction of relationships and trust with their customers.

    Thanks for saying this, Lois. :)
  • Spot On, guys! Having suffered through Upsell Hell and being aggravated beyond words at the marketer for subjecting me - it was great to see the processes explained. Now everyone who watches can make better decisions about their offers, and keep their customers happy.
    Thanks! Mary
  • Dear Sylvie,

    This is Tian Yan from Malaysia...

    I have given this a lot of thought ever since we talked
    about this. For this discussion, I'm using your definition
    of "upsell hell" which is... “holding your credit card hostage
    while bombarding you with additional offers, and refusing to
    give you what you originally paid for until you’ve seen all the
    upgrade offers”.

    If I must use upsells, this is how I would do it...

    First, taking the credit card information first is paramount
    in order for the upsells to work. I want my customers to
    commit, so they can be consistent to their previous action
    when presented with the upsell.

    Second, the process will be different. While I think there is
    value in multiple upsell pages to fatten the unit of sale, I
    will craft tightly related offers and probably won't push it
    too far and be called a "product prostitute" for a lack of a
    better term. (Test everything, of course)

    But here is the difference... after the credit card information
    is given, the immediate upsell page that appears will have the
    following message in the beginning:

    "Congratulations, you made a wise decision. Your download details
    has been emailed to you. You may download your product by
    checking into your inbox, confirming your email address, and then
    start downloading...

    ... and because you're a special customer, you qualify for the following
    discount if you act now... [benefit + reason why]"

    See... this way, I assure my customers that the product is on
    it's way, I'm offering an opportunity to invest further, but also
    the opportunity to say 'No'.

    I see no problem in offering multiple upsells this way, but only
    AFTER I deliver the product and give them the opportunity to
    walk away from the upsells.

    This is an idea that I took from the informercial world. When you
    call in to place your order, you know that your order takes time
    to arrive... and so you're willing to participate in the short upsells.

    But because digital products can be downloaded immediately,
    I provide the download details via email (deliver the goods) but
    still bring their attention to the upsell.

    What do you think, is this a better solution?

    Be Well,
    - Tian Yan
  • @Tian Yan - YES! That's exactly what I am talking about. I'm NOT against upsells at all. In fact, if done right, they work very well for BOTH parties.

    By assuring your customer that they already got what you've promised they would get when they trusted you with their credit card, you may THEN feel free to give them valuable offers and special discounts at that point.

    Great thinking, Tian! :)
  • Hi sylvie.

    I just spent a large amount of time reading a pitch page for what sounds like a great ebook product from an Internet marketer that I actually trusted; and I decided to buy their ebook. I went through the purchase process, gave them my credit card number and eagerly waited for download instructions.

    To my dismay up pops another lengthy pitch page. I begin to read it because I am looking for download instructions. Of course this page turns out to be another huge investment in reading time and I am encouraged to read the entire page and warned that I will never see this page again and I may never find this offer at this low price with these bonus products again.

    Meanwhile I am thinking,
    Where is the product I just bought and why is this annoying page in my face?

    :)

    Thank's

    Jesus Rodriguez
  • Hi Jesus

    Yes, that's exactly how the process makes people feel. It isn't about "don't sell me anything else", it's about "prove to me that I can trust you, and I'll be glad to look at more offers".

    Thanks so much for your comments! It helps a lot for marketers to see for themselves what people are experiencing.
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