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Price Your Upsells Like This

Name: Price Your Upsells Like This
Uploaded: 2025-07-12T20:00:23+00:00
Duration: 22 s
Channel: Shanli Liu, CPA, CTP
Description: In this brief monologue, the speaker explains a pricing strategy for upsells grounded in the concept that customer spending power follows a fractal…

12 Jul 2025 · 0 min

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In this brief monologue, the speaker explains a pricing strategy for upsells grounded in the concept that customer spending power follows a fractal distribution: the top 20% of customers possess roughly five times the spending capacity of the bottom 80%. To capitalize on this, the speaker advises setting the upsell price at five times the base product price. With this pricing, even if only the top 20% of customers purchase the upsell, the overall revenue effectively doubles, offering a simple rule-of-thumb for maximizing upsell profitability.

A lot of people don't know how to price their upsells. They have one thing for $100 and they try and upsell a second thing for $120. That's not how you want to do it. Customers tend to be fractal, meaning that the top 20% has 5 times the spending power of the bottom 80%. And so if you're going to do an upsell, make the upsell 5 times more so that even if 20% of people buy something at 5x the price, you double your revenue.