Was recently chatting to someone about the pricing stages for their $1 Product Funnel.​

We were figuring out whether their upsell price was too big of a jump from their initial front-end purchase.

So, I started combing back through offers I’ve run successfully, and what I see a lot of other people do to see if there are any benchmarks or potential guidelines.

Personally, I’ve always tried to keep the upsell pricing to be between 10 - 30X the pricing of the front-end offer.

So if you’re front-end offer is $10, the upsell could be between $100 and $300.

This, to me, is a good baseline from which to work.

However, in another community I’m in I’ve seen people talk about there being a 100X multiple potential.

Personally, I think that is a stretch for a lot of people unless you’re leading with a $1 offer (e.g $1 to $100 is doable)

Often, that kind of a jump breaks the yes ladder for pricing.

Of course these are guidelines.

I saw a post from one guy who was selling a $7 front-end product and had a $3000 upsell from it which had sold.

I’m dubious that he’s doing that every day, but still, an impressive leap.

The baseline rules are there as a guide.

The key thing is to look at the wider economics of the model you’re building.

A $1 - $100 might have a higher conversion rate than a $1 - $1000.

But, which one drives the highest overall revenue? The latter is worth 10 of the former in the above.

Often, ramping up the cost lowers the CVR but massively increases overall cash taken.

Yes, your CAC will go up, but so too will your revenue.

It’s about finding that balance that makes it sustainable.

There is no one way to work these things.

Even the initial $1 product pricing is elastic. It’s meant to be a “no-brainer” for the audience.

That no-brainer fee will be different for a B2C offer targeting low-income households vs a B2B offer targeting multi-billion dollar companies.

You have to test all of these things and find the right balance between the # of leads you’re bringing in, the CVR, and the cash you take home at the end of the day.

If this all sounds like jargon but you're interested in setting up your own $1 Product Funnel, check out the $1 Product Challenge here.​

Pete "$1 Products" Boyle