Step Four – Funnel Creation: Profit Maximizer
Whether it’s an upsell (offering someone more of what they already bought) a cross-sell (offering them a related product or service) or a subscription (offering them access to a club), every offer needs something on the backend to increase immediate average customer value (ACV) and overall engagement with the buyer. Because while a buyer is good, a multi-buyer is even better.
Definition: A Profit Maximizer is the upsell, cross sell, bundle/kit, etc that is used to maximize the transaction value of each new customer.
One of Jay Abraham’s business growth methods is to increase the average transaction value (ATV) per customer. The Profit Maximizer does just that.
Most businesses don’t utilize Tripwire Offers and they don’t have Profit Maximizers. They just rely on selling cold prospects on their Core Offer.
This is why they struggle and you won’t.
- Immediate Upsells
- Cross-Sells
- Slack Adjusters
- Bundles & Kits
- Value Buckets
- Line Extensions
- Affiliate / CPA Offers
- Premium Subscription
Would it shock you to find out that McDonald’s makes almost makes no money on the hamburger. The hamburger is the Core Offer, but it’s the fries and Coke Profit Maximizer that built the Golden Arches.
This type of Profit Maximizer is called an ‘immediate upsell’…
Best Buy sells laptops and plasma TV’s (Core Offers) on wafer thin margins you can’t resist and makes it up on warranties, installation and Geek Squad support (Profit Maximizers).
Amazon makes a Cross-Sell Profit Maximizer offer when they show you, “People that bought this product, also bought that product” to increase the Average Basket Value, also known as maximizing profit.
But Amazon also makes a Bundle Profit Maximizer offer with their “Frequently Bought Together” offer…
And Premium Subscriptions (recurring billing) like membership websites and other continuity offers make fantastic Profit Maximizer offers…
Profit Maximizer is any offer made after the initial sale. For most companies the single biggest expense theywill incur is the cost of acquiring the customer (which is the job of the Tripwire Offer) and everything else increases the customer’s immediate and lifetime value.
What profit maximizer will you incorporate into your business model? Once you figure this out your business will be more profitable.