What is an OTO?

In a sales process, a One-Time Offer (OTO) is an offer shown to your customer after they have reached a goal you have set. Usually the goal is either the purchase of your product or opting-in to your list.

As the name implies, the OTO is shown only once to the customer; the software used in the sales/signup process will use some combination of cookies, IP addresses, or other means to limit the customer's ability to see the offer again. If they leave the page or fail to act in a certain period of time, then attempt to place an order or re-display the page, the software disallows it.

In a true OTO, the conditions of the offer—price, availability, items included, etc.—are limited to this specific offer. Often the product shown is reduced in price by a substantial amount, but you can think of many other variations. The key is that this offer is unique.

(Just calling it a "One-Time Offer" doesn't make it so. If the customer can purchase the same product or package from you at any time with the same conditions, it's not an OTO. Don't lie to your customers. They're not stupid and they'll remember.)

The OTO uses a sales technique called an up-sell. Properly implemented, an up-sell creates a more profitable sale, by offering a more expensive item, an upgrade, or even a simple add-on. (The add-on doesn't need to be more expensive than your front-end product.)

You're showing the up-sell, the OTO, at a time when sales resistance is low. The customer has already made a purchase or given you their e-mail address for more information, so they've given you some measure of trust. With the right offer, your chances to make a sale here are actually higher than on the front-end offer.

There is still some resistance, though, and you will need to craft your offer with the same care that you used on your front-end salesletter. Don't just throw up a hastily-written sales page and assume that's all you need to do.

The biggest mistake marketers make at this point is in the choice of the product for their OTO. Quite often I see OTOs that have absolutely no relation to the front-end offer. It's like walking into Chick-fil-A and ordering a chicken sandwich and having the cashier ask, "Do you need batteries?"

Your job with the OTO is to ask:

"Do you want fries with that?" (an add-on)
"Would you like to make that deluxe?" (an upgrade)
"Would you also be interested in our party platters?" (a more expensive product)

(The cashier makes that last offer by slipping a handbill in the bag.)

So how do you choose your One-Time Offer?

The best time to do this is when you're creating your front-end product. Say you're creating a report, as I've recommended in $7 Secrets. Do a little more research and come up with additional information that you can put in a second report, then offer the second report as the OTO.

Or perhaps you can create an audio version of your e-book; videos to guide the reader in using your product; or even a physical version (CD/DVD/bound) that you mail to the customer.

Depending on your product, you can consider offering distribution rights to it: resale, master resale, or private label rights. Maybe create a premium version of the product that allows the purchaser to rebrand it.

You can also purchase products with those rights and resell them through your OTO. Be sure to offer products that are closely related to your front-end product.

Regardles of what you choose to offer, your most important decision is to actually offer something. Don't put off this opportunity to increase your sales per customer right at the start.

Discuss