Lesson 9 - Are You Maximizing Profits?
What's are Profit Maximizers and how to use them effectively
In this lesson, we’re going to talk about what profit maximizers are, the different kinds and common mistakes to avoid.
You can watch the quick video here or skim the article below for takeaways.
At the bottom of the article, you can download the presentation slide deck used in the video.
Questions, comments, suggestions or love notes? Post them below so we can all learn from each other!
What are Profit Maximizers?
They are other products in your funnel that you can offer on top of your core product or service
The main goal is to maximize profits by increasing your clients’ average purchase value.
3 Different Types
1. Upsell
The purpose is to increases purchase value to give you a better profit margin – it can be upgrade or add-on
An upgrade sounds like “hey, get to the VIP package where you get my signature online course & 6 x 1:1 private coaching sessions & access to our private support group to further integrate your learnings into daily life”
versus
An add-on, “hey, thank you so much for buying my signature course! You know, some of my clients found this other course very helpful in rounding out their learning when used in conjunction with the signature course.”
See the difference?
2. Down Sell
It builds brand loyalty by getting a sale at a lower price point. You become more accessible to people with smaller budgets who can’t afford your core product.
The conversation would sound something like…
“Instead of my signature online course & group coaching program, would you be interested in a smaller version of just the online course at a lower price?”
3. Cross sell
It increases purchase value and also helps to set your brand apart, because you’re offering your or someone else’s product/service that’s adjacent to your core.
For example, the conversation would sound like this…
“This integration journal is designed in a way to help you further reflect on your trip and incorporate somatic practices into your regular self-care ritual”
Common Mistakes Overwhelmed Healers Make
1. Not having any profit maximizers
We recommend having at least in your funnel.
It’s usually easiest to start with upsell add-ons or cross-sells.
2. Not relevant to your core
If it doesn’t make sense for someone to buy it, then it doesn’t matter how low the price is.
3. Not conveying the value
This is where the art of copywriting for conversions and sales come into play.
You need to give them enough information about the benefits of your profit maximizers to entice them, or else why would they purchase?
4. Not priced well
Here are rules of thumb to follow regarding pricing:
- Upgrades = around 25% more than your core
- Add-ons = depends on what your product is
- Down sell = around 25% less from the core
- Cross sell = 50% less than your core
Again, these are just guidelines – pricing really depends the product itself, its quality and its value to the client.
Instead, they choose to spend their time working closely with and transforming their clients.
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