Downsell
Downsell is a lower-priced alternative offer presented to customers who decline an upsell, capturing revenue that would otherwise be lost.
A downsell is a reduced-price offer presented when a customer declines an upsell. It serves as a safety net in your funnel, capturing revenue from customers who want additional value but found the upsell price too high. By offering a subset of the upsell's features or a lighter version at a lower price, downsells recover otherwise lost revenue.
The strategic value of a downsell goes beyond the immediate revenue. It keeps the customer engaged in your ecosystem and demonstrates flexibility in meeting them where they are financially. A customer who accepts a downsell is still demonstrating buying behavior and is more likely to purchase future offers compared to someone who declined everything.
Downsells typically offer 50-70% of the upsell's value at 30-50% of the price. For example, if your upsell is a $97 implementation bundle with templates, coaching, and community access, the downsell might be just the templates for $37. The key is removing the highest-cost or most premium elements while retaining enough value to make the offer compelling.
In terms of funnel architecture, downsells appear on a separate page that loads when the customer clicks "No thanks" on the upsell page. The messaging should acknowledge their decision gracefully and present the downsell as a more accessible alternative. You can also stack multiple upsell/downsell pairs in sequence, though most low-ticket funnels perform best with 1-2 upsells and corresponding downsells.
Practical Example
If someone declines a $97 upsell bundle, they see a $37 'lite version' that includes just the templates without the coaching call component.