What Is a Downsell? How Small Businesses Use Downselling to Boost Revenue
How Downselling Can Boost Your Revenue Without Cheapening Your Brand
Not every prospect is a ready-to-buy, full-price customer the moment they meet your business. Some need time. Some need trust. And some simply need a different entry point.
That’s where downselling becomes a powerful profit strategy.
Downselling isn’t about lowering your worth or discounting your expertise. It’s about giving interested buyers a more accessible way to work with you—instead of losing the sale entirely.
What Is a Downsell?
A downsell is a lower-priced alternative offered when someone declines your main offer. Think of it as a “start-here” step that keeps the relationship alive.
And remember the line that applies to almost every area of business:
“You can’t get what you don’t ask for.”
If you have no downsell options, you’re missing opportunities sitting right in front of you.
Why Downselling Works
A downsell:
Keeps the buyer engaged
Helps prospects experience your value
Creates trust faster
Opens the door for future purchases
Brings in revenue where you would’ve had zero
Smaller businesses have a unique edge here. You’re agile. You can experiment quickly. You can respond to feedback in real time.
The secret?
Offer a downsell without discounting the quality of your brand.
What a Downsell Can Look Like
Downsells don’t have to be complicated. They can simply be:
A smaller quantity package
A stripped-down version of your service
A starter option
A trial period
A DIY version of what you normally do for them
Example: If your health club sells a premium Gold Membership, you might also offer:
a 90-day trial
a 30-day membership
a 1-week pass
Same journey. Different entry points.
Downselling Mistakes to Avoid
Yes, downselling helps. But there are two pitfalls to watch for:
1. Being annoying or pushy
Nobody wants to feel pressured or chased. The offer must feel natural, relevant, and easy.
2. Training customers to wait for a “better deal”
A downsell must be different, not simply “the same thing but cheaper.”
If it’s perceived as just a discount, customers will learn to say “no” first every time.
3 Steps to Build an Effective Downsell Strategy
STEP 1: Know Your Customer Lifetime Value (LTV)
When you know the average profit a customer brings over their lifetime, you can design smart downsells that get them into your world—even at a lower initial price.
STEP 2: Decide Where to Test Downsell Offers
Start small. Choose 1–3 places where testing a downsell would make the biggest impact.
Ask yourself:
What could we offer immediately?
What could we roll out in the next 12 months?
STEP 3: Launch, Track, Adjust
If 100 people see your offer and only 20 buy, you’ve got 80 opportunities walking out the door. If just one of those 80 says yes to a downsell, your revenue jumps 5%.
Small hinges swing big doors.
Industry Examples
Blossom’s Flowers
Smaller arrangements
Different flower choices
DIY floral kits
Bulk flowers
Dream Kitchen Makeover
Partial remodel
Cabinet refacing
Eco-friendly appliances
DIY installation kits
Handmade Treasures (Jewelry)
Simplified designs
Alternate materials
Personalized engraving
Add-on jewelry accessories
Every business, yours included, can identify natural downsell opportunities.
Train Your Team to Offer Downsell Options
Many employees hesitate because they fear being pushy or losing the sale. That’s why training matters.
You can:
Host role-playing sessions
Celebrate success stories
Add incentives or rewards
The goal: Create a culture that puts the customer first, and revenue follows naturally.
Final Thought
Downselling isn’t about lowering value. It’s about removing barriers so someone can confidently take the first step with you.
And that first step is often the one that leads to long-term loyalty and long-term profit.
If you’d like help shaping downsell strategies for your business, let’s talk.
