Two Things about People Who Say Upselling Is a “Scam”

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Upselling—the business practice of getting a customer to make an additional purchase or purchases—existed long before there were internet marketers.

Is upselling a scam?Yet some people criticize the upsell activities of certain internet marketers as proof of a scam.

It’s actually proof of the critic’s own education and state of mind.

Burgers, Cars, and Amazon

For decades, McDonald’s, Burger King and other fast food chains have been upselling with the now-classic “Would you like fries with that?” or similar invitations to spend a bit more money.

In McDonald’s case, it accounts for nine million pounds of french fries sold every day, globally. I doubt that any of those fries buyers is thinking that Ronald McDonald is trying to scam them by asking.

If you’ve ever bought a new or used car at a dealership, then you’ve probably experienced a different kind of upsell, called a cross-sell. In this scenario, the salesperson offers the car buyer add-ons…

…such as protective sealant for the paint or an extended warranty for the engine, transmission and other mechanical components.

Each add-on is more money in the dealership’s pocket.

These are valuable products that protect the buyer and their investment. While a buyer may not want to spend more, it’s questionable as to whether they think they’re being scammed.

You see the cross-sell when you buy on Amazon as well. Let’s say you buy a blender. After you’ve completed the sale, you will see “Customers who bought this item also bought … ” and it will show related items: a smoothie recipe book, a cutting board, etc.

This cross-selling or upselling accounts for 35 percent of Amazon’s sales. I seriously doubt there is a lot of grousing by customers about it.

The First Thing

When people point to MOBE or another online marketing company, insisting that they are just looking to upsell you and that it’s a scam, the first thing you know is that the person saying it is naive about business.

Upselling and cross-selling are typical activities of many successfulcross selling businesses (Amazon, McDonald’s, etc.) and it’s not only because it brings in additional revenue…

…it also saves the company money.

There is a statistic that gets quoted a lot: Companies have a 60-70 percent chance of selling to an existing customer, whereas they have only a 5-20 percent chance of selling to a new prospect.

That datum is based on research done by the authors of the 2010 book Marketing Metrics: The Definitive Guide to Measuring Marketing Performance.

On top of that, the White House Office of Consumer Affairs has calculated that it’s six to seven times more expensive to acquire a new customer than it is to keep an existing one.

So, from a purely business perspective, companies who market to their current customers are also saving quite a bit.

If a company is not making additional offers to its customers, that company may not be around for very long. Your existing customers are your best source of future sales.

People who decry upselling as a scam are simply ignorant of how business works.

The Second Thing

While a company like McDonald’s works on a single point-of-purchase upsell and Amazon works on an even lower-key post-purchase upsell, MOBE does it through a front-end to back-end ascension model.

We have an inexpensive introductory offer but ultimately seek to move the front-end buyer towards one or more of our back-end offers, which are considerably more expensive.

cross sellingMcDonald’s and other fast-food places accept a “no” to their upsell request and move on to complete the order.

Amazon’s system is even more passive than that.

MOBE and similar companies use relationship-building (via both email and one-on-one conversations over the phone) to find out what our customers need to move their businesses on to the next level. We then use salesmanship to create the upsell.

So, the second thing to know about people who protest upselling as being a scam is that they are probably uncomfortable with selling. The other side of the coin is that they don’t like being sold to either.

These are people who are afraid to ask for the sale. They flinch at the idea of trying to draw peoples’ interest toward a product or service.

I have no need to defend MOBE’s back-end offers. I know that they provide considerable value and produce the desired result if the customer actually uses the product.

Final Thought

Upselling is not unique to MOBE or any online marketer. It’s a common business practice both online and offline and has been for a long time.

People who decry it as being proof of a scam either don’t understand what a successful business model is or have personal hang-ups about selling—or both.

Are you ready to build a solid business that has the right upsells in place? if so they watch the below video today and take action…

MTTB

 

 

Article curated from MOBE

 

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