How To Close Everyone Downselling Like A Pro (ALEX HORMOZI)

Summary

• Believe that everyone buys something, as everyone has some money and problems that need addressing.
• Aim to sell the primary program but be prepared to downsell when necessary, especially if a customer can't afford the primary offer.
• Downsells should be executed properly, or else it can seem desperate and unethical, leading to a loss of the sale.
• Use a step-down method with various offers in the back pocket to downsell effectively.
• Leverage the principle of reciprocity to persuade in downselling; people find it hard to not give back after receiving something.
• When offering a downsell, set terms that give something back to the business, like testimonials, bringing a friend, or giving reviews, in exchange for a price reduction.
• Prefer to add bonuses or ask for more from the customer rather than removing features from the original package.
• Make downsells fair and collaborative, presenting them as a way to make the offer work for the client.
• Start with the primary offer and step down with adjustments in terms, commitments, and prices while also adding conditions like giving testimonials or bringing friends.
• Use fair and accommodating tonality with phrases like "fair enough" to make it easier for the customer to agree.
• If the customer continually refuses downsells, the issue may not be money; the salesperson may have lost rapport earlier in the conversation.
• Confront disengagement early on in the sales call and address it directly.
• The ultimate goal is to get a foot in the door, build trust, and potentially upsell to the full-price program later.
• Knowing how to downsell effectively can significantly increase close rates without sounding pushy or desperate.

Video

How To Take Action

I would suggest starting with your primary offer when you're selling something. It's important because it's usually the thing that helps the most. But, not everyone can afford it, so you need to be ready with other options to make sure you can help different people. This is called downselling — it's like having different steps.

To downsell well, you have to be careful. Doing it wrong can make you look desperate. To avoid this, always have a few offers you can switch to. It's like having a plan for each step the conversation might take.

One good way of doing this is to trade something. This uses a cool trick: when you give someone a little something, they usually want to give something back. So, when someone says they can't afford your main offer, you can offer them a lower price if they do a favor for you, like giving a review or bringing a friend.

Here's an action plan:

1. First, try to sell your best program.
2. If they say it's too much, offer to cut the price if they commit to a longer time.
3. If they still can't do it, ask for a smaller commitment like a weekly plan.
4. Add value to the offer instead of taking away stuff. Like, you give more help or extra bonuses.
5. Speak nicely and be understanding. Use phrases like "fair enough?" It makes it easier for them to say yes.
6. If someone keeps saying no to your downsells, it might not be about money. Maybe they lost trust earlier. If this happens, try to find out why they're not engaged and fix it.

Remember, the goal is to help people get started with you. Later, they might decide to get the full thing. So, it's okay to offer a smaller, cheaper thing at first. This way, you can build trust, and they might buy the bigger offer when they're ready.

Downselling like this can really raise how many people say yes to you without looking pushy. It's like giving others the chance to choose what works for them and helps you at the same time.

Quotes

"Everyone buys something"

– Alex Hormozi

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"Having a key set of cards that you have in your back pocket that you can choose to play as you go down"

– Alex Hormozi

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"The person who sets the terms always has the power in the agreement"

– Alex Hormozi

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"The beautiful thing is, after you exchange something, the person who sets the terms always has the power in the agreement"

– Alex Hormozi

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"Don’t worry about it, it’s just like, let’s get you going, let’s get you in the in our world so that we can provide value and then after that we’ll make it work"

– Alex Hormozi