Hernan Vazquez breaks down Average Order Value and three ways to increase it: raise prices with urgency tactics, add upsells like McDonald's does, and build follow-up sequences that sell premium upgrades and coaching. Most entrepreneurs leave money on the table by skipping these steps despite having traffic.
Hey everybody, what's up? This is video number 3 of your Make More Money with Your Business series. So if that's something that you want to do, make more money, check out this video because it's pretty damn cool. Let's go to the video. Hey guys, what's up? Welcome to another video, and this is video number 3. We have been talking a ton about how to increment and how to make more money Online. On the first video, we talked about the different— the 2 main metrics that you need to have in mind to actually make more money online. All right, metric number 1 was cost per acquisition, and that's exactly what we talked about on video number 2. Now, on this video, as you might have guessed already if you watched the other 2 videos, is that we will be talking about average order value, which is in short— AOV. How much money each customer is investing or purchasing or, you know, is making you, all right, or how much money they are ordering on average, all right. So here's another problem that I see many business owners have. You know, they will come to me and say, hey, I do not have enough traffic, and we solved that problem on the previous video. And the other problem is that, hey, I am not making enough money online. So when I ask them, okay, so what you're selling? I'm selling this product. All right, so what are the upsells? I do not have any. What are the downsells? I do not have any. Do you have a follow-up sequence? I do not have it. Are you having recurring sales? No, I don't. So that's exactly the problem that they have. They could be making much, much, much more money with the list that they already have, with the traffic that they already have, provided that they tweak as we discussed in video number 2, all right? So the main idea here is that we— now we can lower our cost per acquisition, that is we are paying less and less and less to acquire a customer, but the other end, the other 50% would be to increase the average order value. That is to increase the amount of money that you are making per order, all right, on average. So remember guys that the difference between these 2 will give you how much money How much revenue your company is making? That's exactly what we're gonna talk a little bit about today. So how to increase the average order value. And I already gave you some tips. So let's dive right into it. So step number 1 to increase the average order value is, as simple as it sounds, to raise your prices. By raising your prices, you can increase your average order value. So let's say that you're selling a $97 product or a $500 service, the minute you start charging $149 or $147 or $700 for your service, you will be increasing your average order value. And most of the cases, people are afraid of increasing their prices, all right? Now, instead of discounting your prices, saying, hey, I'm gonna sell this for $700 and discounting it to sell it for $500, just send an email saying, hey guys, next week I'm increasing the prices. That's called reverse countdown. Next week I'm increasing the prices, you need to act right now. Okay, that will give you a ton of new orders and will definitely give you more money. It will not increase the average or the value, but it will make more money in the short term. So that's step number 1. Step number 2 is to sell more things. It's usually, you know, if you can picture McDonald's, they are the masters of the upsells and the cross-sells, okay? It is said, and I'm not entirely sure about this, but it is said that they are not making money with the hamburger, all right? They are just making a couple of cents. The true moneymakers are the fries, are the combo upgrades, are the Coca-Cola, right? Whatever you're ordering with your combo, those are the true moneymakers. And that's exactly what we need to do right here. I had a client of mine that he would only have front-end sales. And by front-end sales, he will— I mean, he will only sell one product. So what we did is to divide our product and to offer more stuff. And usually 20 to 30% of people will actually take on the premium price or the advanced course or the extra material, just if you ask. Okay, that's called an upsell. And if you ask, that will definitely increase the average order value because people are spending more money with your company. So step number 1, raise your prices. Step number 2 is to sell more stuff. Step number 3, and this is my favorite, is to have a powerful follow-up. With a powerful follow-up, and provided that you have followed step number 1 and step number 2, you can actually sell more stuff. Not only you're selling more stuff, but you're creating goodwill with your prospect because you're adding value You're producing content that helps people, and then you're selling the premium stuff. And from people that, you know, purchase the premium offer, you can then offer them one-on-one coaching. And for the premium— for the people that picked on the one-on-one coaching offer, you can then sell them a done-for-you service. All right, so that's exactly what I do on my funnels, by the way. I coach business owners, and then I know I offer them, hey, Do you want your funnels done for you? Do you want your advertising done for you? All right, and I can charge premium prices because people have purchased from me and they are really convinced that I overdeliver. All right, so I can come on and I can charge premium prices. So that's basically how you increase your average order value, raise your prices, sell more stuff, and have a powerful follow-up. Those are the 3 steps to increase your average order value. Again, if you haven't watched the other 2 videos, go watch them after we finish with this one. And I'm gonna leave a link somewhere over here so that you can check out my 5-step sales funnel, and I go about these sales funnel steps in depth, in detail, and they're completely free, all right? They are pure value, no pitch whatsoever. So thank you guys for watching once again, and if you have any comments, any questions whatsoever, just drop them below. Thank you guys for watching, and I'll see you on the next video. Bye-bye!
