Profit Maximizer

Question 1

Why is a PM so important for overall profit?

Answer 1

Because CAC (customer acquisition cost) is such a large cost

Question 2

What are the 6 types of PMs?

Answer 2

1. Upsells
2. Cross-sells
3. Slack Adjusters
4. Bundles and Kits
5. Recurring Billing
6. Line Extensions

Question 3

What makes a good upsell?

Answer 3

Feels natural with what you’re already buying. A “bolt-on”. A no-brainer.

Question 4

What makes a good cross-sell?

Answer 4

Relevant to the market (not necessarily the product).

Not too immediate or pushy.

Question 5

What makes a good slack adjuster?

Answer 5

10x-100x the base price of default offer. Super luxury. Pulling out all the stops. Often it’s the done-for-you version.

Question 6

What makes a good bundle/kit?

Answer 6

De-commoditize things adding value. Build real and perceived value.

Question 7

What are 2 ways you can add subscription?

Answer 7

Recurring supply of commodity, membership

Question 8

What makes a good line extension?

Answer 8

Extend to same market, other things they would want

Question 9

How can PMs help physical product sellers?

Answer 9

Delivery, assembly, advanced training

Question 10

How can PMs help information sellers?

Answer 10

Done-for-you services, software, consulting

Question 11

How can PMs help software sellers?

Answer 11

Migration, higher customer support level

Question 12

How can PMs help consultants?

Answer 12

More hands-on, priority service, VIP programs