What is an Upsell? Here’s How It Can Double Your Sales

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“Do you want to super-size that?”

Maybe you haven’t been to a McDonald’s drive-thru in a while, but those famous words haven’t changed.

It’s a perfect example of an upsell—not to be confused with cross-selling, which would be, “do you want fries with that?”

“Cool, Matt,” you might say. “But I want to grow traffic and get more leads.”

I get that.

But don’t you also want a bigger bottom line?

Using upsells in your sales funnel can do just that.

Look at this monetization graph:

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The statistics show that you could grow your revenue 2–4x by focusing on the monetization of customers, rather than customer acquisition.

Let’s start with a simple definition.

What is an Upsell?

Here’s our quick definition of ‘an upsell’:

An upsell is a technique where you entice a customer to buy more. You can do this by providing upgrades, expensive items, or other add-ons to their purchase to increase the dollar amount of the entire purchase.

Sounds powerful, doesn’t it?

To leverage the upsell, you need to present your customers with additional services to increase the value of their order.

For example, instead of selling, say, a $150 cleaning service, you could present them with options to ‘up’ that purchase.

Perhaps allow them to also buy steam carpet cleaning for an additional $80 and window cleaning for an additional $50.

Suddenly, a simple $150 order is now worth $280.

According to Neil Patel, the general rule of thumb should be this: 70% of your revenue comes from customer acquisition, and 30% comes from upselling.

Now, you can’t upsell everyone. You will always have customers who only want one service.

However, you can upsell a majority of your site’s visitors if you include it in the stages of your sales funnel.

Let’s explore how other companies successfully upsell their services.

Two Examples of an Effective Upsell

This section includes two definitive types of upselling that will make you more money.

1. The ‘Add-On’ Upsell

If you’ve ever attempted to checkout of a domain registry site, you were probably confronted with numerous upsells.

The key to the ‘add-on’ upsell is to keep the options relevant to the purchase.

Take a look at Namecheap’s shopping cart setup:

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In this example, you only have one item in your cart—your domain name.

At checkout, you’re confronted with additional add-on possibilities.

SSL Encryption, 1 Year Free OX Personal Email, Full-Featured Web Hosting . . .

The list goes on.

All that extra added-value is just a click away. It’s hard to say no.

You might not have considered those other products before.

But now you’re making a buying decision.

You’re already spending money, so why not get the add-ons?

The add-ons are framed as small purchases—even if they surpass the price of the original purchase.

With this setup, you might feel like you’re missing out by not selecting another product.

So most people will tack on one or two additional services.

All of this creates one great upsell.

See how that works?

The ‘add-on’ upsell can easily increase the order value by offering relevant products at the point of purchase.

In fact, JetBlue’s “Even More Space” upsell initiative, which lets passengers buy seats with more legroom, was projected to net an additional $190 million in revenue for 2014.

Needless to say, I recommend using this tactic.

You may not bring in an extra $190 million, but you could drive a jump in revenue.

Let’s look at another type of upsell.

2. Packaged Plans

Offering your service as a ‘package’ productizes it, making it easier to sell.

And it can increase the average order value.

The key word here is ‘can.’

While packaging your services is not an upsell in itself, it is one way to upsell a service.

Listen up service businesses.

Instead of offering your service a la carte, package it and put a bigger price on it.

You want to increase the dollar amount a customer will spend on you.

Take, for example, our pricing packages for our done-for-you sales funnel:

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As you can see, we offer 3 price points for our customers —$399/mo, $799/mo, and $1,399/mo.

Each package includes a certain set of services.

We could have offered our services a la carte.

But when we bundle our services up, we are able to increase the order value—which is the goal of upselling.

It works like this. . . .

Instead of selling our Funnel Tasks for $79/each and having the customer decide how many they want, they now have to choose a package worth at least $399.

This increases the average order value.

We also ‘upsell’ the orders another way.

Notice the visual emphasis on the ‘Grow’ package?

We’ve centered it, increased its size, and labeled it ‘Most Popular’ (a valuable form of social proof).

Using this highlighting method, we often upsell a customer from spending $399 to $799.

Both of these tactics increase the order value from our customers.

How to Incorporate An Upsell into Your Sales Funnel

You can integrate upsells into your funnel in a variety of ways.

But I want to give you the most actionable one. This is something you can and should do right now.

Incorporate clickable add-ons at checkout.

Here’s how:

  1. Create a checkout page (if you haven’t already) for your service. The checkout page should have an overview of the customer’s purchase and a place to insert their payment details. picture1
  1. Define the add-ons you can offer your customer. What simple, relevant, and relatively affordable services can you offer your customer? Make sure it is something that feels essential.
  2. Implement clickable add-ons on the checkout page. Input a brief description, a price, and an ‘add’ button for each add-on. Make sure they are right above the ‘buy’ button.

At most, it only takes a few hours to do. And it should increase your customers’ order values.

A checkout page lined with add-ons will effectively upsell your services.

Conclusion

Upselling is one of the best ways to grow your revenue.

You should be trying to increase the order value of every customer.

Whatever service you sell, you can supply additional services your customers would be interested in buying.

Make the upsell feel essential and natural.

Start defining these services, add them into your sales funnel at the point of purchase, and see your order value increase.

What other services can you offer to your customers right now as an upsell?

Let me know in the comments.

Keep Hustlin’, Stay Focused,

—Matt

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