How to stop losing money on(OTO) one time offers?
How to stop losing money;
Just in case you don’t know, OTO is a marketing technique used to increase our revenue at the point of sale.
An OTO (one time offer) is typically offered cheaper than the regular
price and the offer is good for one time only.
You most likely know what OTO (one time offer) means.
It the regular price for whatever is in the offer
is $100, the OTO might be priced at $50.
It’s simpler to illustrate with an example, so here it goes…
John clicks the link to buy my product (Premium Squeeze Page Templates) and is hit with
a $27 OTO offering the PSD files for the templates. The regular cost for the PSD files is
$47. This means John is offered a 42.6% discount. If John takes up my offer I’d make $74
in revenue as opposed to only $47 (if there isn’t any OTO). That’s an increase of 57.4% in
You can see that it’s EXTREMELY profitable to use OTO in your sales funnel and that’s
why you see so many marketers doing it.
The One Time Offer Process
But what most marketers do is they present the OTO IMMEDIATELY after the buyer clicks
the buy link for the original product he wants to purchase.
A SMARTER way is to let the buyer pay for the product FIRST, and only after that you
present the OTO.
You might think there’s no difference between the two scenarios above. There actually is if
you pay careful attention…
Some people just don’t like OTO, and these people are going to be turned off and they
might change their mind about purchasing your original product SIMPLY BECAUSE they
don’t like the OTO you present them. Result = no transaction. You lose money that you
would otherwise have earned.
Now, if you were to ask for the payment FIRST before presenting the OTO, you’d at least
get the sale (for your original product). After payment is successfully received, then you
present your OTO. Even if they don’t take up your OTO, that’s cool because you still got a
Is One Time Offer Evil?
Some people think that the use of OTO in the sales process is evil. I think not. It’s just a
way of presenting SPECIAL OFFERS (reduction in price; and in many cases as high as
50% discount) that they wouldn’t otherwise have gotten.
If we as marketers can give customers a special offer deal and save them some money
without buying at the regular price, I seriously think they should thank us instead of saying
we are evil money mercenaries.
Even though this is the case, we can’t deny the fact that there are people are who are
going to be turned off by our OTO (as mentioned above), which is why I advocate you
present the OTO after you received payment from them for the original product they wish
2 Tips For Increasing Your Profits Via One Time Offer
- Attain a high sales conversion for your OTO
The way to do this is to offer something that is VERY RELATED to your original product. In
my example above, my OTO is the PSD source files for the Premium Squeeze Page
Templates, which is very related to the original product.
- Use two or three OTO instead of just one OTO
This will maximize your visitor value because you’ll get more money out of every visitor
you bring into your sales funnel.
Again, remember to get the payment for your original product first before presenting the
series of one time offer.
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