Let's play a quick round of Jeopardy!\r\n\r\nPlayer: "I'll take Sales Techniques for $1000"\r\n\r\nHost: "Whereby a seller induces the customer to purchase more expensive items, upgrades or other add-ons in an attempt to make a more profitable sale"\r\n\r\nPlayer: "What is Up-Selling"\r\n\r\n###\r\n\r\nUp-Selling is probably the most ballyhooed tactic for increasing revenue in your business. It's effective and often beneficial and even necessary to meet the requirements a prospect or client has given you.\r\n\r\nBut let's talk about <strong>Down-Selling<\/strong>.\r\n<blockquote class="blockquote">Down-selling is the art of narrowing a customer's expectations and matching them more effectively with a solution that best fulfills their needs or desires.\r\n\r\n<footer><a href="https:\/\/www.smartcompany.com.au\/marketing\/sales\/what-is-down-selling\/" target="_blank" rel="noopener noreferrer">Source<\/a><\/footer><\/blockquote>\r\n \r\n\r\nDown-Selling is about serving the customer, first and foremost. Listening to their needs, wants, desires, and recommending a solution (hopefully your company has a matching offer) that addresses those needs.\r\n<h2>Down-Selling here at Pagely<\/h2>\r\nWe typically recommend our lowest priced <a href="https:\/\/pagely.com\/plans-pricing\/wordpress-vps-hosting\/" target="_blank" rel="noopener noreferrer">VPS Hosting plan<\/a> to a prospect that may be unsure what their resource needs are or will be in the future. We say "Let's see how things go, and then you can grow into a larger plan as your needs justify." - <strong>Committing to earn the customer's future MRR growth.<\/strong>\r\n\r\n<hr class="hr-bg" \/>\r\n\r\nThere are times when a customer will come to us about 'needing to upgrade for better performance,' citing a 'slow site'. Most of the time, their site is <a href="https:\/\/pagely.com\/blog\/sessions-cookies-and-you-getting-the-most-cache-for-your-buck\/" target="_blank" rel="noopener noreferrer">bypassing cache<\/a>, but after a few moments with one of our support agents identifying and correcting the issue - no upgrade is needed. - <strong>We fix the issue instead of up-selling the plan - saving the customer money.<\/strong>\r\n\r\n<hr class="hr-bg" \/>\r\n\r\nOver time, a customer may have added CDN add-ons of various sizes to accommodate the growth of their traffic profile. 50GB here, 100GB there, 2 more 50GB packs, etc. Our prices go down as your CDN purchase goes up. We periodically scan our customer base and will swap out the 4-5 individual add-ons, with a single, lower priced add-on has the same or more CDN bandwidth, but at a lower $ per GB - <strong>Saving the customer money.<\/strong>\r\n\r\n<hr class="hr-bg" \/>\r\n\r\nSometimes a customer's site needs may change where raw computing power may become more important than <a href="https:\/\/pagely.com\/solutions\/high-availability-wordpress\/" target="_blank" rel="noopener noreferrer">High-Availability<\/a> (HA). If cost is a concern, we typically move them out of a more expensive HA setup into single instance plan with the higher computing resources required. - <strong>The customer gains a more stable site + saves money.<\/strong>\r\n\r\n<hr class="hr-bg" \/>\r\n\r\n<strong>Stop Pagely, you'll go broke!<\/strong>\r\nYes, some readers may be shaking their head about the dollars we are leaving on the table - we're not maximizing our MRR or ARPU in all cases.\r\n\r\nHowever, what we are doing is serving the customer in a manner we believe is fair while building LTV and reducing churn. In some cases, we actually grow our profit margin when we eliminate a wrong-sized plan for a right-sized plan simply by reducing the support burden of that site\/customer. - <strong>The net effect of utilizing down-selling is we actually do better overall as a company.<\/strong>\r\n<blockquote class="blockquote">Up-selling is a powerful skill, but only when your customer is getting more value. Not less. When you down-sell you build trust and demonstrate you are acting in your customers best interests.\r\n\r\n<footer><a href="https:\/\/www.smartcompany.com.au\/marketing\/sales\/what-is-down-selling\/" target="_blank" rel="noopener noreferrer">Source<\/a><\/footer><\/blockquote>\r\n \r\n\r\n<strong>Up-Sell where appropriate to grow your top-line MRR<\/strong>\r\n\r\n<strong>Down-Sell to build LTV and reduce churn.<\/strong>\r\n\r\nGood luck out there.