Page 173 - The $100 Startup_ Reinvent the Way You Make a Living, Do What You Love

The confirmation page that appears after an online purchase is one of the best
and most underused places for an upsell offer. Right after a customer has
purchased, they are highly inclined to purchase something else. Make a strong
offer here, and your conversion rate can be 30 percent or higher.

ENCOURAGE REFERRALS. Most people know that word of mouth is the greatest
source of new business, but instead of waiting for something to happen, you can
encourage your customers to spread the word.‡ When asking for referrals, it
helps to be specific: “Can you send our offer to three of your friends?” or “Can
you ‘like’ our page on Facebook?” might be a good fit. Again, the confirmation
page after a purchase is a good place to do this, in addition to a mailing sent a
few days later.

HOLD A CONTEST. As mentioned in Chapter 9, some people become extremely
motivated about contests and giveaways. Find a way to give away a prize and
invite people to compete. The bigger the prize or the more unique the contest,
the better. You may not make a ton of sales from a contest, but it will bring you
more attention and a greater audience for future sales.

INTRODUCE THE MOST POWERFUL GUARANTEE YOU CAN THINK OF. Most
businesses have boring guarantees: If you don’t like this, you’ll get your money
back. But when we buy something, our money isn’t all we’re concerned with.
We’re also concerned about time and validation. If I have to return something,
will it be a pain in the ass? Make it the opposite of a pain in the ass—some
businesses provide a guarantee of 110 percent, ensuring that the burden is on the
business to deliver. Zappos famously created free shipping both ways to take
away the hesitation about buying shoes without trying them on. A host of
competitors had to follow suit.§

ALTERNATIVELY, MAKE A BIG DEAL ABOUT OFFERING NO GUARANTEE. Instead of
providing an incredible guarantee, provide no guarantee—and make a big deal
about this fact. Note that this strategy usually works better for high-end products.
It will likely decrease overall sales but increase the commitment level from those
who do purchase.

Ironically, people who pay for high-end products tend to be better customers
all around. “Low-paying buyers are the worst,” one business owner who sold a