MindValley Labs Internet Marketing Blog

It’s Day 1 at the con­fer­ence as I write this.

I arrived a lit­tle late due to my plane trou­bles. But was just able to catch the last 30 min­utes of Mike Filsaime’s session.

Here’s the thing I like about Mike. You can walk in just as he’s wrap­ping up and still find enough juicy nuggets of infor­ma­tion to make a big impact on your site profits.

This is the key idea I learned from Mike today.

Learn to Use Other People’s Dead Inter­net Real Estate

What’s dead real estate? It’s pages on a site that aren’t sell­ing. Such as Order Com­plete Pages, Thank You for Sign­ing Up Pages, Logout Pages, Sub­scrip­tion Suc­cess Pages and more.

Most peo­ple for­get to uti­lize these pages to boost their site profits.

Here’s what Mike does. When you buy his prod­uct, the But­ter­fly Mar­ket­ing Man­u­script for $97, as soon as you hit the order but­ton and com­plete the order, Mike will NOT imme­di­ately let you down­load the man­u­script. Most mar­keters would. But not Mike.

Instead, on the “Order Com­plete” page, he’s show you a video of him­self explain­ing that he has cre­ated a soft­ware pack­age to accom­pany his man­u­script and that he’ll give you this $1495 pack­age for only $897 if you com­mit to order­ing now.

Now remem­ber, the user has just spent $97. Fil­saime is max­i­miz­ing the cus­tomer value by now ask­ing them to buy a higher end prod­uct before they pro­ceed to down­load­ing the manuscript.

Now here’s a question.

What Per­cent­age of Peo­ple do you Think Will Take Mike Up on his Offer?

The answer accord­ing to Mike is 11%.

This means that for every 100 peo­ple who buy the But­ter­fly Mar­ket­ing Man­u­script for $97, Mike will make $9700 from the manuscript.

But he’s make $9867 from that 11% of peo­ple who then order the soft­ware pack­age on CD.

Mike makes more on the UPSELL than on the actual product.

But he doesn’t stop there.

If you decide not to buy the $897 upsell, Mike will then downsell you and offer the same pack­age for only $497 if you order now. For $497 you won’t get it on CDs, you’ll have to down­load the dig­i­tal version.

And accord­ing to Mike, another 10% of buy­ers will take him up on this.

This is another $4970 in revenue.

So a poten­tial sale of $9700 has been turned into a sales value of

$9700
+ $9867
+ $4970
——-
$24,537

Mike’s increased his rev­enue by over 150% through the clever use of upsells and downsells.

But he takes it one step further.

Mike now looks for other sites that have a sim­i­lar audi­ence to his own.

(You can do this too by using a ser­vice like Quantcast.com)

He exam­ines the site and looks for dead real estate and offers the site owner a lit­tle badge or ban­ner that they can add to adver­tise the But­ter­fly Mar­ket­ing manuscript.

The site owner gets a per­cent­age of rev­enue, and Mike gets a new cus­tomer. At this sem­i­nar he announced that he was mak­ing an extra $36,000 per month from these types of deals.

Those are some pretty impres­sive stats. And the best part is that any­one can start using upsells, downsells and inte­gra­tion mar­ket­ing almost immediately.

Last 5 posts by

• The Enlight­ened Entre­pre­neur Expe­ri­ence: How To Expe­ri­ence The “Turn­ing Point” And Com­plete Free­dom In Your Busi­ness — Jan­u­ary 25th, 2010
• Tribal Mar­ket­ing: Sur­pris­ingly Eth­i­cal Ways to Sig­nif­i­cantly Reduce Your Unsub­scribe Rate And Eas­ily Boost Prof­its — Jan­u­ary 19th, 2010
• Break­ing the Silence — August 7th, 2009
• How Rela­tion­ship Mar­ket­ing Trumps Tra­di­tional Direct Mar­ket­ing (and Why the Social Media Craze Is Mostly Hype) — March 31st, 2009
• MindValley’s Social Media Mar­ket­ing Unveiled — Decem­ber 2nd, 2008

About the Author

Vishen is a co-founder of MindValley. Before MindValley, he was an exec in Silicon Valley and New York for several internet and technology firms. He turned bedroom entrepreneur at 27 and by the time he was 31 had founded 6 web businesses and never had to work a conventional job again.

Check out other posts by Vishen Lakhiani

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