Boost Your Affiliate Marketing Profits With the Upsell

by WorkFromHome on February 22, 2012

In affiliate marketing, there are two main factors that determine your profit. The first factor is how many people you sell to, and affiliate marketers can spend hundreds of hours of work each year trying to boost this number. The second factor is how much money you make per customer, and it often seems like this is a factor that gets ignored. To be successful in affiliate marketing with today’s economy, then you’re going to have to make as much from each individual customer as possible because fewer people are making purchases in all industries. Being able to make an upsell a non-zero percentage of the time is a key method for bringing up the amount of profit you pull from each person who buys from you.

Facing the Facts

It takes resources to bring in new customers just like it takes resources to get existing customers to spend more money. A number of studies have been done comparing spending on these two ways of increasing the bottom line of a business, and what most of them have found is conclusive evidence that going for the upsell is a more efficient use of time and effort.

There are two things that you should take away from this. First, it’s an efficient use of your resources to work on methods for upselling or making future transactions with previous customers. Second, maximizing your profit per customer has a side effect of increasing the effectiveness of your efforts to build a larger customer base by increasing each customer’s average profitability.

When Dealing With Physical Goods

There is a distinct difference between what it takes to upsell on physical goods and what it takes to upsell on digital goods. When you’re doing affiliate marketing where physical goods are being bought and sold, then one thing that you’re looking for is a way to tie in some sort of replacement-based warranty. These plans are pure profit based on statistics, and are an excellent service to provide for your customers. Depending on the nature of the products, you can also upsell them installation services or various accessories. Electronic devices in particular are excellent for this.

Upselling With Digital Goods

There are generally two types of people who are buying digital goods, and to make a lot of money with affiliate marketing with these goods, you’ll need to understand both types. The first type of customer is buying something primarily with the purpose to learn. When you’re upselling to these customers, you’ll have a ton of options since you can always continue an education. The second type of customer is buying a product for the purpose of pleasure. You can upsell to this type of customer by providing interesting products at low prices that are easy to justify as an impulse purchase.

Using a Mailing List to Upsell

An upsell is essentially a chance to sell to a single customer more than once. When you build a mailing list to make money with affiliate marketing, then you’re essentially doing the same thing. However, while traditional upselling only gives you one or two chances to get your customer to make an additional purchase, using a mailing list can get you dozens of chances. When you increase your number of attempts by a factor of ten, then you boost your profits drastically and make a lot more money.

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