Profit Down-Selling Tips

Today’s story is about me, Ryan Levesque, and my P.L.U.S. marketing funnel. Here I was at the gym in my apartment complex when I receive a call from Ryan. He had just heard about my marketing funnel and gave me a call while he was going through the TSA pre-check at the airport. The P.L.U.S. marketing funnel was formed when a launch when south. I created this formula and managed to make back all of the debt the launch created and then some, saving the launch and my relationship with several of my friends who were joint-venture partners. Ryan was embarking on a launch later in the year and I was one of the joint venture partners. The launch was designed used the PLF formula, but Ryan heard about my success with my P.L.U.S. launch formula and wanted to know more. After his launch, Ryan only netted about 15% in profit. His goal was to increase his return on investment by employing a post-launch upsell strategy which my sales team and I created. Ryan had two offers he was looking to sell but the cost margin on them wasn’t significant enough for a true down sell. I dug out of Ryan that he had in the past provided a done-for-you service and the cost of that service was significantly higher than the other two services. I convinced him to offer that service even though it wasn’t available, and then I mapped out how down selling would allow him to scale his business without ever having to sell the defunct done-for-you service. Our three key insights for this episode all involve the beauty and strategy of down selling your products and services. We discover: Why down selling works faster, better, and easier than upselling. Why down selling is about designing and offering the highest-end offer first. Why down selling works with three different price points in a single-family offer.   Tune in to learn how Ryan managed to turn the profit margin on his launch around by starting at the top of the sales pyramid and working down. Use this information to further your selling success using Ethical Influence. In This Episode: [3:47] - Alex reveals the three key insights for this episode: Why down selling works faster, better, and easier than upselling. Why down selling is about designing he highest-end offer 1st. Why down selling works with 3 price points in a single-family offer. [5:28] - Today’s story starts off with Alex in his gym speaking with Ryan Levesque on the phone about my P.L.U.S. marketing funnel. [6:07] - Alex shares the meaning behind the P.L.U.S. acronym: Post, Launch, Upsell, Strategy. [7:36] - Ryan shared the details of his launch with Alex. After all was said and done, he only netted about 15%. [8:40] - Alex shares details about Ryan’s post-launch upsell strategy. [10:07] - Ryan shares the different offers he was selling and why I had a problem with the cost of the programs. [11:22] - Alex shares the process of down selling and how it completely change the environment of Ryan’s launch. [14:49] - Utilize the power of the 3 in the offer anatomy of down selling. [15:28] - Start high then go low with digital products. For physical products, you want to focus on upselling. [17:00] - Alex reveals the power of the cumulative trio — a concept he created in 2006. [20:54] - Learn how the Contrast Principle as explained by Dr. Robert Cialdini applies to down selling. [22:18] - Another advantage to down selling is the takeaway concept versus the add on. [24:18] - The Alexism for this episode is this, “The ripest fruits on any tree are typically the hardest to reach.” [24:47] - Alex provides a quick episode review and restates the 3 insights for this episode. [25:53] - If you’ve already given Alex a review, write down your biggest takeaway from this episode on an index card. If you haven’t, though, please use that Aha! moment as your review for the show at this link! [27:16] - In honor of this episode, Alex gives listeners a final gift. You can get a completely free copy of his book Alexisms by going to this link! You will also get free access to his $497 VBT e-Course! Links and Resources: Alex Mandossian Alex Mandossian Fan on Facebook Alex’s Friday Live events MarketingOnline.com Marketing Online 4-Part Video Training Series Alex Mandossian on YouTube Alexisms by Alex Mandossian All Selling Aside on iTunes Alex Mandossian’s free live Friday show ASK Method Ryan Levesque Dr. Glenn Livingston Power of Three Dr. Robert Cialdini Joe Polish