#208 - How to make $538 from your $27 offer

Foreign.

Guys, it is Kate here from hellofunnels and welcome back to the Doing it online podcast. And today we are diving into one of my favorite nerdy topics. And that is we are talking low ticket offers. And not just low ticket offers, not how to sell them, not what they are, but how you can actually turn your, you know, your $27 offer, your $9 offer, whatever it is, your current teeny tiny micro offer, into a $200 offer or a $300 sale or a $500 sale. Because that is the real key to actually making this miniature offer strategy work for you, to actually making it profitable not to go out there and sell thousands of $27 offers, but for a majority of those offers to be $200, $300 sales, $500 sales. And inside this episode, I'm going to show you exactly how you do that. So let's dive right, right on it.

All right, guys, I'm going to be real here for a second because there's something that's happening and it makes me really angry. And that is, I see a lot of people out there seeing this strategy, seeing this low ticket office strategy and thinking, oh, that's all I need to do. I just need to create something cheap and sell a bunch of it. But they haven't done the basic back of napkin maths. They haven't done the simple numbers to see like if I'm wanting to make $5,000 a month, if I'm wanting to make 10, if I'm going to make a hundred thousand dollars a month, whatever it is, exactly how many sales you would need to have to be hitting those numbers if you were just selling these teeny tiny low ticket offers. And then the, the second thing that they haven't considered is just say by some chance that you have a social media account and it's gone viral and you've got suddenly millions of followers. And it could be a real reality for you to be out there selling thousands, if not tens of thousands of small, low ticket, cheap, easy to sell things every single month. But have you thought about the second part of that equation in that you now have thousands, if not tens of thousands of customer service inquiries and clients and people asking you questions and people getting stuck and people not being able to log in. It's a real double edged sword. So I see a lot of people out there going, oh great, I see this as a strategy. People are saying this is a strategy to go and have a low ticket offer. And that's going to be the thing that solves everything. But they don't realize that it's just one small piece of the puzzle that getting that really great irresistible low ticket offer, that first piece, it's great and it's important, but it's a total waste of your time, energy and effort if you don't bother to put the other pieces into place. And so that's what we're going to talk about today. So I'm just going to assume that you already have a really, really irresistible front end offer. And if you don't, we have a couple of episodes on that, so go back and check them out. But today I'm talking about the economics of how to turn that offer, how to turn that sale, how to turn that one little hey, you just did a reel and you shared a many chat trigger and it sent them a link and they bought this low ticket thing. Like that's how simple it can be. How do you turn that into something that's actually profitable? So it's actually going to be worth your time. Okay, so what you need is a really great, really strong and just as irresistible upsell track to go behind your low ticket offer. And there's actually a really specific set of numbers. So the geek in me loves this that you need to hit for this to be successful. But the best part about it is that you can do it one by one. And I'm going to walk you through what each of them is, the numbers to look out for and which order you need to be launching them in. So the very first thing you do, like Des said, we're just assuming, number one, that you have a low ticket offer and that low ticket offer, the pricing, I do want to actually talk about that just for a second. The pricing of your low ticket offer is important. Usually for most niches you want something that is sub$30. Because anything kind of above$30, it kind of jumps into a different mental bracket for your ideal client. It's no longer that sort of like candy aisle, like real impulse, like, oh, that looks good. I don't even have to think about it. I'm happy to just buy it purchase to something that they go, actually I do think about it and actually I do want to compare it to other things and actually that's a bit more of an investment. I could be spending that money elsewhere. So to keep it in that very low thought required just oh, that looks good, I'm happy to grab it kind of box, it normally needs to be under $30. Now there is of course exceptions to every rule. Again, if you Have a really high value problem that you are solving. Like if you're going to show someone how to make thousands of dollars, for example, with something, or if it's something that is a template and normally to get that service, you know, if they were going to do it themselves, it would take hours and hours or they'd have to spend thousands of dollars. Then yes, you can maybe do that under 50. But usually once you start getting over the $50 mark, you will see the conversions of that initial offer dropping really significantly. And that's just going to mess up everything else along the track. So the goal of that first offer is to sell as many of them as possible. So that's what the pricing's purpose is here. The profit comes later in the upsell track, which is what we're going to talk about now. So let's pretend, number one, you have an irresistible offer. It's got a really attractive, a really easy. Yes. Price. Great tick. Let's move on the second piece of the puzzle. And so the very first piece of your upsell track is what is called an order bump. My accent throws people off, not an auto bump. Order bump. Hopefully there'll be some text on the screen. Now this is that gets done inside your checkout software. So you need to have the right software to be able to do this. And you would have seen a bunch of versions of this. It's basically when you go to the checkout to pop in your credit card details for that first offer. You'll see a little box there in that form that's basically like ticket here to add this to your order. And there might be an image, a title and a short paragraph explaining what it is. It's that simple. That is actually going to be the highest converting piece of your upsell track. And it is therefore the most crucial. So this is the one you want to do first. Bonus. It's the easiest as long as you have the right tools. And if you don't have the right tools, I've got three I can recommend right now. Samcart, Thrivecart and Kajabi. They all have really great, easy to use looks good converts well order bump options in their checkout. So that's the first piece you're going to look at. So what should that order bump be? This is important because you have a really small piece of real estate to be able to get someone excited enough to purchase. So it needs to be something that requires no explanation, something that you don't need to warm people up about. You can just say this is what it is, this is what it does. And they instantly go, oh, I want that. So quite often this might be adding in your things like templates, scripts, something that people understand right away. If you said, this is a sales page template, I'd go, I understand. That's a sales page template. Usually it's not an online program. It's nothing that requires some bigger, loftier explanation. It's nothing that you really need people to be doing, like an emotional purchase on. It needs to be very logical purchase. This looks good. Tick. I'll buy it. So have a think about it. You've probably already got something sitting there on your hard drive. Perhaps it's a bonus or, or it's even just one of the inclusions in one of your programs. I bet you have something right now that you could create an ad as an order bump. So that's the first thing you need to do. One, make sure you got the tech. Two, come up with this thing. And when you go out there, I would just start with that. Now, your goal is you want this order bump to be converting at least 30%. So that means one in three, roughly, people who buy your first offer are going to buy your order bump. Now, pricing of the order bump, that is also important. And you have a little bit of leeway here. Usually some people go either slightly lower or slightly higher than what their original price point is. So just say you had a $27 original offer price point. Maybe you might try something from like a 17 up to a 30 or even $47 as your order bump. Now again, if you're not sure, there's always the rule I always give when pricing anything. Go out there, have a look at what the range is in the market. There's always a range feel into where you think you sit on that. Are you more premium, are you more accessible? And then that will probably give you another bit of a range. And then start on the bottom end of that range. As long as it feels good, test it, and then you can incrementally increase it and just watch, you know, track those conversions. So, for example, maybe you're going to start with a $17 order bump and it converted it 60%. You go, Amazing. That's great. Let's try it at $27. Maybe it comes down a little bit, but it's okay because people are paying more. So you would do that over a couple of weeks until you found that sweet spot where you absolutely maximized the value, maximize the profit, and you're still getting a really good conversion. Rate. So that is your order bump. And for all those who are not into conversion rates and stuff and have since fallen asleep, I apologize. But this, as I said, this is a very nerdy epis. So that's the first part of your upsell track, the order bump. And as I said, it's the easiest part as well. You don't need a whole sales page. You just need a really juicy little bot with a great headline, an enticing image and just a paragraph explaining what it is, why it's great, why they need it. So simple. Okay, so that's step one. Step two is your first upsell. So again you need to have a proper checkout software to be able to do that. And those three I mentioned earlier, samcart, thrivecart, Kajabi, they have them include, yes, there are others, but those are the main ones and they're really easy to use. So for your first upsell, what is this? An upsell is basically people have now put in the order form, put in their credit card details, they put in their name, they've purchased that first offer, they may or may not have purchased the order bump and now they land on what would traditionally be a thank you page saying, hey, thanks for buying. Here's how what the next thing is to do. But what we're doing now is we're putting a step in between. Before they land on that thank you page, you're going to add an one time offer, sometimes called an oto, which is your first upsell offer. And this is basically, it's an offer that they can only get there, they can't get it anywhere else. And this is the second most crucial part. Now you will see some people with the upsell tracks end up with like so many of these. You know, like I kind of do it just for, just for giggles to kind of see exactly how many upsells some people put into their funnels. And you know, there's a balance. You've got to sit down and feel what feels right for you. But most people are not going to get offended by one upsell, particularly if it's a good one and it's a really good deal. So this first one, this does take a little bit more time. That's why I say start with the order bump because you could go and do that in 20 minutes, then it's done. The second though still really important. We're aiming here for a 15% or higher conversion rate. So now you want 15 out of every hundred sales. So to take this offer and we're also taking a bit of a jump in the price point. So you're going to be looking at usually between two to five times your initial price point. So for most people that might be like a 77, 971 for 9 kind of price point. And this is all part of getting you those higher ticket sales. So now if someone gets your order bump and your upsell instead of it being $27, potentially it's already $250. And you know, if you do it right, I've heard of people who this one time offer has been able to convert at up to 30%. I've also heard of people converting a one time offer of a 9, 97 straight from a 27. So there's, it's a whole world to play with. But I'm just going to give you the, the little guardrails of what I traditionally seen work. Well, start there, experiment, make it your own. So one time offer number one, like I said, you're looking between a two to five times price point of your initial price. And you have a bit more space to play here because you have a whole sales page. But you still need to grab their attention. That's the most important thing they're going to land on this page. You have to have a headline that really makes them go, oh, I need this as well. Or at least oh, I'm going to find out a bit more about this. So you've really got to grab them. And so figuring out what makes sense for next offer. You know, again, sometimes it can take some testing and some tweaking, but really think about if someone has bought this first offer, what in the stable of things you already have that already exists wouldn't make sense to make the outcome or the problem they're trying to solve that you've started to solve in that first offer, what would absolutely blow it out of the park with the second offer. And if you just get these three pieces right, because this is where the majority of your sales that the bread and butter of this is going to come through, then you can start consistently having 100 plus 200 plus dollar sales without webinars, without launches, without anything just from your initial offer. So I would focus there, get those working really well. And once you have those working really well, then the final piece of the puzzle is adding a one additional, potentially two extra upsells that are going to be a bigger jump again. So you've got your initial offer roundabout $27. You've got your order bump say between $17 to $47, you've got your first upsell. Say it's $97. And then for your second upsell you can go two, three, four times the first upsells price. So a lot of people have this around like a 197 to 297 kind of price point. Again, it's gotta be something great, it's gotta be something juicy. To have something at that price point obviously that people are gonna buy on impulse. It's gotta be really juicy with a really killer headline. But that is where the big bits of profit start to come in. Now I'm going to give you a bonus tip for what you can do now for a third upsell if it feels right for you. Now as with anything in marketing, I'm all about make sure it feels good for you. If it annoys you to go through these processes and have multiple upsells, then don't do it for your clients. If you're a kind of person like me who loves bargain and you think you're always like oh cool, what else have they got? What else they got? Yeah, this sounds awesome. Add it, give it to me. Then maybe it's means you've got a bit of room to play here. But bonus tip, what you can do for a third one time offer. So that's that third upsell is actually take the second one which is that two 9 7ish product, and offer the exact same thing but on a payment plan. So this would be technically depending on your tech, this would be called your first actual downsell. So obviously this is only offered to people who don't take the 297. But just say them, hey two nine, seven. You know, maybe that's a bit much. But what if you could dive in, get started today for just $97 and so you can give them, you know, a three or four part payment plan, whatever makes sense. And voila. You all of a sudden have the ability to be making over $500. That's what we're doing currently quite consistently with our current front end offer and our exact stack. Just so you know, we have a $37 front end offer. Our order bump is actually 97. We tested it and that is price point. That works best. Our one time offer is also 97. And then our second one time offer is two 97 with a three part payment plan downsell and we quite regularly get payments or average order values or total order values of over $500 from that $37 front end product. So it's absolutely possible you don't need to go and create a bunch of stuff to do this. I'm sure you've got a lot of stuff already existing as bonuses already in your programs. And one last little tip that I wanted to add in for anyone who's wanting to play with this strategy is if you are looking at one of these pieces and you're like, actually I've got an idea for this, but I don't have it yet. What I would recommend to you is create the sales page, test it to see if it sells first before you create it. Be looking at those conversion rates. I don't think I gave you the conversion rate, sorry. For the second and third upsells, you're looking at a 5 and a 3%. So that's why those first two are more important. But tracking your conversion rates, test it first. Create the page, offer it up for sale, see if people buy it. And then what I normally do is I will actually record a quick video that says like, hey, I'm actually in a testing phase at the moment. Thank you so much for purchasing it. If we get more than X number of sales, I will be creating it in the next couple of days. But what I'm going to do regardless is I'm actually going to refund you right now so you're not out of pocket, you will still get it and you know, something like that. So most people are pretty happy with that. They're happy to wait a couple of days and get it for free. But what this does is it enables you to test things before you create it so you're not spending. So if you test something, it doesn't quite work, then you know, you can just refund the people and say, sorry, didn't get enough. So we're not going to be creating it, but here's your money back. And then when you do get one, you can pause it if you want, go off, create it, come back. But it just means that you're able to test and iterate that much faster. Which means you're going to get something that works and works really well that much faster too. So that's it for me today guys. I hope you've been taking lots of notes. I hope this was really useful. I hope you're going to go away and create an amazing upsell track for your one time offers. Final tip before I go is that if you really like this strategy of playing with different front end offers, different lower priced offers, and you're thinking, gosh, do I have to create a different upsell track for all of them. Actually, you don't. You can usually just repeat the same one. But anyway, that's just between me and you. Don't tell anyone. So, anyway, guys, as I was saying, thank you so much for joining me. I hope you found this useful. If you have, make sure you subscribe, make sure you share, make sure you DM us and let us know what you love most about this episode. Can't wait to bring you more nerdy goodness next week. I'll see you then.