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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:

spend on traffic quote

He who can spend the most on traffic wins Click To Tweet

I’d like to add two quick notes here:

  1. This does not mean you need to invest a lot on traffic to profit.
  2. 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:

product upsel gif

 

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:

Lead Value Optimization Techniques

 

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:

sample

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!

Anton Kraly
 

Anton is a the Founder & CEO of Drop Ship Lifestyle - an online coaching program for eCommerce entrepreneurs. He began selling online in 2007 and has built and sold multiple seven-figure businesses while leveraging the power of drop shipping.

  • Carly says:

    You’ve got one of the greatest sites (and courses) on drop shipping. Thank you!

  • Hmm it appears like your blog ate my first comment
    (it was extremely long) so I guess I’ll just sum it up what
    I had written and say, I’m thoroughly enjoying your blog.
    I too am an aspiring blog writer but I’m still new
    to the whole thing. Do you have any recommendations for rookie
    blog writers? I’d genuinely appreciate it.

    • Adam Simon says:

      My biggest recommendation is to schedule as much content as you can ahead of time and meet those deadlines. Subscribe to other similar blogs that get engagement and try to identify what they are doing to get that engagement.
      Thanks for your feedback and good luck!

  • Adam Simon says:

    Hi,
    We recommend WordPress for your blog and Shopify for your eCommerce stores.

  • Hi there this is somewhat of off topic but I was wondering if blogs use WYSIWYG editors or if you
    have to manually code with HTML. I’m starting a blog soon but have
    no coding know-how so I wanted to get guidance from someone with experience.
    Any help would be greatly appreciated!

  • Javier says:

    What are some good upsell products for phone accessories store? I’ve already got one with external battery with phone cable. I’m pretty much lost from their. What for a phone case for example?
    I would appreciate your input on this!

  • Barry says:

    Hi
    I have opened my 1st store on Shopify and working to open more shortly,
    do you have a set up with Shopify?
    Before installing a competitor I am looking at your service, I was impressed at your determination in solliciting me, you never quit. Your like the dog with a bone.
    Cheers
    Barry

  • The name of my store says it all.
    “The needs of the one are equal to and greater than the needs of the many” now multiply that. Thing about it.

  • Kevin says:

    What do you think about ceiling fans, and selling down rods with them.

  • Margaret says:

    How about jewelry niche? Making sets for example? Any other idea?

    • Anton Kraly says:

      Depending on the value maybe insurance? I just bought an engagement ring for my fiance and they up-sold me into a $300/year insurance plan 😮

      • Robbie says:

        You could have gotten a rider on your house insurance for $50

  • stuart says:

    Upsell is key to providing the maximum amount of service to and generating the maximum amount of income from – each client/customer.
    I run a a brick and mortar business and did not understand this concept until I read a book by Dan Kennedy where he stressed the importance of this.
    Over the last year I have practiced it fairly regularly and have increased margins anywhere from 7-15 % on each project.

    • Anton Kraly says:

      I love Dan Kennedy and I love that you’ve bumped your margins that much. 7 – 15% is HUGE. Congrats on the hard work and the success.

  • Jerry says:

    Great stuff Anton. Perhaps types of patio furniture as niche with cushions as upsell. Or DIY home landscaping products niche with instructional video upsell

    • Anton Kraly says:

      Those could work – and with any thing large/heavy/expensive expedited shipping and extended warranties are typically easy wins for upsells 🙂

  • Eugene Gruzin says:

    wine cooler
    home sport activities (ping pong, billiard)
    outdoors activities (camping, fishing)

    • Anton Kraly says:

      Hey Eugene,
      I’m talking about going even deeper when upselling and cross-selling.
      Let’s take the fishing niche for example –
      If I was selling deep sea fishing rods some great upsells could be:
      – fishing line
      – tackle
      – ebook / video series on fishing
      – boat insurance (as an affiliate)

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