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I know I should do split testing but I haven't launched the product yet and wanted to get an insight of what people have been doing in the past and their results.
Say your initial product is $67 dollars, should your OTO be a lower price or higher?
I will split test once the project is complete, just wanted to get some feed back on others experiences.
Sorry for my premature post. I was able to find it else where on another thread. But I still wouldn't mind hearing about your experiences as that thread didn't go that detail into that question.
Hi James,
My upcoming launch:
Front end: $57 >> Prince increase to $77 after launch
Back end: $47 ...
Not really sure what is the best formula to use, my goal
was to give incredible value on the front end and price
my OTO at a some what average price for course sold on clickbank.
Love to hear what others think about the OTO.
I've noticed a lot of people price their OTO or upsell higher.
It makes since, because you're goal should be to move people up the buyer ladder, meaning getting them from a lower price point to a higher one faster.
As long as you make your OTO or upsell containing more "powerful" or useful stuff, even more so than your base product, people will pay the higher price.
Just make sure you overdeliver. A lot of products, it seems, are lacking in the usefulness department, and I've seen a lot of big launches with a lot of hype, but then the product and customer service sucks.
You over deliver, and you'll have a LOT of happy people that will easily buy more from you.
Rob
It obviously depends on the product and contents of the upsell, but in general I would always aim for a higher priced OTO that both complements the original product, and offers much more "advanced" material with a high perceived value.
Not everyone will take it of course, but that does allow you to offer a lower priced downsell also, by taking out some of the content, bonuses etc of the original OTO.
I've seen some people go crazy on this and offer 4-5 downsells, but with that you run the risk of annoying your buyers.
As Rob said, just make sure to overdeliver, no matter what you do.
Don't forget you can still offer the upgrade later on (at a slightly higher price) and if your front end product has impressed people, then they may be more receptive to upgrading as they will know the kind of quality they can expect from you.
Hope this helps,
Richard
Great feedback from all. Thanks for your insight.Quote:
Originally Posted by Richard Legg
I do like the higher priced offer and then allow a downsell.
I hate to be a monkey see monkey do, but the last few launches I seen had a medium priced offer and then a slightly lower OTO. The key thing I noticed was the initial medium priced product also contained some type of continuity.
I will follow suit and see how this works. My first major launch by means of this site and some big name JV's will be coming up shortly and I am very excited about it.
I will test out this pricing strategy and fill you all in.
You know...
I've been watching a LOT of Frank Kerns stuff lately, and I'm beginning to become more convinced that people should price their exceptionally overdone and unique (like video's instead of ebooks) content MUCH higher than expected.
If your OTO contains great info and over delivers, you could price it quite a bit higher.
I'm getting ready to launch my first IM product soon and I was at first thinking a much lower price...but the fact that my course is HUGE (and almost all video) I'm beginning to think I should make it a good 30 bucks more for both frontend and OTO.
Anyway, just some more thoughts.
Rob
Like Rob, my upcoming product is mainly videos as well and I do believe that those should be placed at a higher cost simply for the perceived value of videos --- so I agree with Rob on that point.
And, like Richard, have also come across those 4-5 downsells and personally, think that's just way too over the top; way past the point of annoying.
RE: Upsell or Downsell...
If they had already agreed to purchase an item and then all of a sudden are hit with another "option" of paying even more money with an upsell, I feel you risk losing the initial sale. I know it's not a popular notion to even consider no OTO at all, but am curious as to how many people simply abandon the process all together once they've already agreed to the initial purchase because it appears to them to be "more work" to have to make yet another decision that they might have even struggled with in the first place.
Since I'm working on my very first product launch as it is, you can take that for what it's worth. But from a consumer standpoint, I can tell you that being upsold after I've already agreed to something is a bit of a turn-off for me.
Upselling does apparently work because I have also heard Frank Kern talk about upselling after an initial sale - simply because they've already got their credit cards in hand and are in the "purchasing" state of mind. However, the inquisitive side of me wonders how many sales are lost with an upsell in relation to how many stick with the initial purchase when receiving a downsell or even no OTO at all.
I'll be interested in hearing how your experiment went.
- Kristine
Kristine,Quote:
Originally Posted by Kristine Wirth
What I've done as late is go out to some of the market place and see if they have a oto offer and I have noticed that one of the clients I purchased from in the past actually did this:
* Did NOT offer a one time offer before my purchase (I liked this fact b/c that too at times can be a turn off)
* But DID offer the OTO on the down load/thankyou page. Before you could download the product you were taken to a Thank you for Downloading my product, yada yada yada,... and then it had a sales pitch that said: "Wait...." and then went on to say that this is the only time they will ever see this offer and to buy now they would need to click YES, or if they said NO it would go straight to the download page of the product they bought
I think this is a brilliant strategy and will implement this in my offer next product.
Hope this gives you another angle as it did for me.
Thanks for that James! That is a great strategy and worthwhile trying out as well.Quote:
Originally Posted by James Delong
Do you happen to know what billing system they used?
I'm guessing it had to be something other than CB because to the best of my knowledge, you wouldn't be able to do an additional product on a Thank You page while still retaining their purchase information - if you were using CB that is.
Kristine,
This was a CB product. The Thank You/Download Page was actually another sales type page with the link on the bottom that said YES, I will buy and take you up on this offer. (this would take you to the CB checkout page for that price in a new window)
and then below it still had the NO, I will skip this offer and was a link to the REAL download page.
Very smart indeed... and that is why I think I will do pretty well with my next launch.
Sites like this and the networking with Mike and others here will play a big roll and I am thankful
to be a part of this community.
One element the other commenters have missed is where the oto is in the purchase cycle.
Let's say you have a membership site for say $20.00 per month to keep the math easy. Good perceived value and people will likely stay on for a few months at least.
But like anything, most customers may not see long term value and your average drop out is after an average of 4 months. So, your average revene expectation is $80.00
By lowering he monthly price (6 months for $90.00 - or $15.00 per month, you increase your profit.) If they do drop out, you made $10.00 more. If they forget it will auto bill at month 6, you capture an extra $90
So, always do a oto when the customer is in the decision stage. Oh = this is a better value for me!
The idea of upselling on a thank you page is great.
But, and the real experts at this are godaddy, they upsell all the way and when you go to pay via clickbank, they open up a billing agreement with a $500.00 monthly limit.
At the thank you page, they show you a multitude of offers. Click OK and the sale is automatic (provided it's below $500.00, which it almost always is) because you just agreed to a paypal billing agreement (vendor initiated billing)
It works like a charm.
Also, you should look into Paypal Micro Payments = A new service for small amounts like $5.00
Paul
Paul - That's great stuff for me to consider with the membership options.
My next project is a CB product so I will use their merchant system.
I will continue to build my list via this product and on my other high end
products (the $1499, $1997) I will consider using another shopping cart
system.
The products I sold a few years ago, before I studied the likes of Mike F.
Frank Kern, and most importantly Dan Kennedy were a straight shot Sales,
Thank you and then download.
Now I feel I am can compete with the big boys as I have outside niches from the
internet marketing world and which are converting well and capturing opt-ins.
This site is taught me alot and it's geared towards JV.
so with that being said, I thank you for your input too.
Thanks
