Alex Hormozi: How To Close Everyone Downselling Like A Pro

The video is about how to effectively downsell to potential customers who cannot afford your primary program, using the principle of reciprocity to ethically lower the price while still getting something in return.

This video by Alex Hormozi was published on Oct 27, 2020.
Video length: 11:20.

In this video, Alex Hormozi shares tips on how to downsell effectively in sales.

He emphasizes the importance of understanding that not everyone can afford the primary program being offered and that finding a way to help everyone to a certain degree is crucial. Hormozi explains that downselling properly is key to increasing the close rate and that using reciprocity, one of the strongest motivators for persuasion, is effective in a down selling environment.

He suggests having a set of cards in your back pocket that you can choose to play as you go down and offers examples of step downs that can be used in a fitness program.

• Downselling is important when people can't afford your primary program.
• Using exchange and reciprocity is a powerful motivator for persuasion.
• Offering a lower price in exchange for a testimonial is a good example of exchange.
• Traditional step down involves offering a lower price after the customer says no to the original price.
• Effective communication involves using tonality, taking micro-steps towards commitment, and collaborating with the customer.
• The reciprocity principle involves offering something in return for a lower price, asking for a testimonial or friend referral, and framing the offer as a way to help the customer.
• Identifying disengagement early on in the sale and offering downsell options before the customer becomes completely disengaged is key to increasing close rates.

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

Introduction

• Everyone buys something, even if they have limited funds.
• Downselling is important when people can't afford your primary program.
• Doing it properly is key to increasing your close rate.
• Using exchange and reciprocity is a powerful motivator for persuasion.

Reciprocity

• Reciprocity is one of the strongest motivators for persuasion in a down selling environment.
• People have a hard time not giving something back when someone gives them something.
• After doing a small favor, it's still hard for people to say no to a big ask.
• People don't have an idea of fairness of exchange with reciprocity.
• Using reciprocity is one of the key ways to downsell effectively.

Using Exchange

• Using exchange is a powerful way to downsell.
• Offering a lower price in exchange for a testimonial is a good example of exchange.
• It's difficult for people to keep hearing the same offer and not say yes.
• There are different cards to play, such as commitment length, testimonials, and reviews.
• Asking customers to do more things for you is a way to ethically lower the price.

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

Traditional Step Down

• Traditional step down involves offering a lower price after the customer says no to the original price.
• Offering a lower price in exchange for a commitment length is a good example of traditional step down.
• Adding bonuses to the original package is another way to downsell.
• Asking customers to do more things for you is a way to ethically lower the price.
• Additional terms to the agreement can be made to justify different prices for the same program.

Offering Downsell Options

• Start with a commitment for $49
• Offer a half-price option with commitment
• Remove commitment and offer $49 with limited commitment
• Offer $39 with a testimonial in return
• Offer a pay-as-you-go option for $29 a week with a friend referral

Effective Communication

• Use tonality to convey sincerity and enthusiasm
• Lower the bar by asking if the offer sounds fair
• Take micro-steps towards commitment before asking for payment
• Collaborate with the customer to find a solution
• Maintain rapport and avoid being aggressive

Reciprocity Principle

• Offer something in return for a lower price
• Ask for a testimonial to imply that they will get results
• Ask for a friend referral to cover costs
• Frame the offer as a way to help the customer
• Convey that you are accommodating and trying to find a solution

Identifying Disengagement

• Confront obstacles early on in the sale
• Identify when a customer becomes disengaged
• Deliver the pain to re-engage the customer
• Offer downsell options before the customer becomes completely disengaged
• If the customer says no to multiple downsell options, they may have been lost earlier in the sale

How to Downsell Effectively

• Knowing how to downsell will massively increase your conversion rate.
• Adding little cards that you can trade with people on allows you to have flexibility in the deal.
• Downselling allows you to accommodate potential customers who cannot afford your primary program.
• Downselling helps you get your foot in the door and build trust with potential customers.
• After building trust, potential customers may buy the full price program later.
• Downselling can be done ethically without sounding like you're begging or being pushy.

Watch the video on YouTube:
How To Close Everyone Downselling Like A Pro (ALEX HORMOZI) - YouTube