Lead Value Optimization: The New Trick For eCommerce Niche Selection
More upsells, more sales. Choose your niche wisely.
If you’ve been following drop shipping for any amount of time, you already know the cardinal rule to success: Pick a winning niche.But the rules for “winning niches” has changed. Click To Tweet
If you would have asked me for advice about niche selection a few years ago I probably would have said something like:
“Pick the niche which the most suppliers and the highest average price point. More suppliers typically means more products which usually drives more exposure, traffic, and sales. It also means you have a better chance of getting approved with more suppliers which is extremely important when just starting out… and obviously the higher price point typically leads to a higher $ amount earned per sale…. which means you do not need to do lots of work to make lots of money.”
Well, moving forward into 2016 I’d like to add something else to continue building on this criteria…
Before selecting the #1 niche on your master list, you should narrow it down to those that have the potential for Value Added Upsells.
A value added upsell is something that you can sell your customers in addition to your core offer that will provide value to them and that will make you much more money per sale.
So why am I adding this to my list of criteria for 2016? Because finally (after 10 years in this business!) I’ve learned the golden rule:
I’d like to add two quick notes here:
- This does not mean you need to invest a lot on traffic to profit.
- Yet, if you do build a strong “upsell funnel”, you can easily scale your business!
Now back to the golden rule. In the past I would often wonder how some of my eCommerce competitors were able to be everywhere on Google - some of them would literally have multiple ad spots on the same pages! While I was still able to get traffic and sales I had NO chance of competing with them for bidding on traffic…. my ads just did not convert into sales...
For YEARS, I was baffled by how they were able to do this… I honestly thought they were losing money by paying for advertising.
However - I continued to optimize my stores and continued to test different offers until one day everything clicked… my competitors weren’t buying all the ads and losing money… they were just earning their profits on the back-end of their sales funnels!
Here is an example to help you visualize how this works:
More on Lead Value Optimization:
At this year's Drop Ship Lifestyle Thailand Retreat I actually gave a presentation on how to best apply this concept to drop shipping stores. Here is a video clip:
The full 90-minute training video is available to all Drop Ship Lifestyle coaching program students. Here is a slide that covers the framework for the talk:
I hope this all is starting to paint a clear picture of why finding niches with Value Added Upsell potential is so important in 2016 and moving forward.
To help you visualize how this works, take a look at this sample niche:
This niche has GREAT value added upsell potential that I think anyone can make a killing in for 2016. Yet, there are literally thousands of other niches out there waiting to be explored!
If you follow a proven system, put in the hard work, and believe in yourself, you can succeed. Opportunity is all around you but you have to reach out and grab it.
I’d love to hear from you! What other value-added-upsell niches can you think of? Post in the comments below!