Josh Melick - Upselling 101 For Software Developers

There are many industries who are incredibly talented when it comes to the products which they are able to create, yet not so good when it comes to actually selling them. One particular industry is software development, and this is something which expert Josh Melick has been exploring recently. Josh has written a blog post which has gone viral within this sector, talking about how these companies can better upsell to their customers.

This is something which is foreign to money software development companies, and that is why Josh has taken the time to describe the mistakes which are being made and how they can be remedied. Here is a brief synopsis of what Josh is getting at and how more companies can drive a sales structure which upsells to its customers.

The Critical Third Dimension

The crux of the article which Josh has written focuses on what he calls the ‘critical third dimension; of sales. Basically what Josh is getting at here is the fact that software sales often feature something like a bronze, silver and gold package. What will always separate these packages is the number of users who can work on the software in each package, as well as the amount of usage which each user can expect. The third dimension however focuses on the time limit for each package, which is necessary for upselling. When the package expires, it offers the perfect time to upsell to these customers and inspire them to upgrade.

Bundling Programs

Most software developers offer a range of solutions on their sites, but in order to bring in the big bucks, it is better that they bundle their packages and offer a suite, instead of a single program. Let’s say for example that you have a client who has opted for a single product, at the silver level. This company could in fact look to upsell to this client, and offer them the gold package alongside 3 or 4 additional programs. This is a great approach which can see more and more upgrades.

Extending the Time

The recommendation which Josh gives for the time limit for each package, is 12 months. With this being said however, this again provides businesses with a chance to upsell to its clients. For example if you have a customer who is on bronze, and their package expires soon, you could offer them the chance to upgrade to silver, which costs more, yet offer them a 14 month plan if they do so. These 2 months extra will inspire more people to upgrade, and in turn the customer will get a couple of free months, whilst the business makes more money than it would’ve done and the customer remained on bronze.

These are some great ways in which a software developer can inspire its clients to spend more money with them and upgrade. This will also ensure that clients stay with the company longer and in turn it will improve their reputation.