educational

Cross Sales vs. Up Sales

One of the most tried and true methods for leveraging any sale is to capitalize on the timeliness of the customer’s willingness to buy — “striking while the iron is hot,” in an attempt to maximize the potential for earning additional revenues. There is an old saying that it is easier to make multiple sales to a satisfied customer than it is to find a new customer; and this is as true in the digital arena as it is in the brick and mortar world.

Legitimate examples are easy to find; buy a new set of wheels and get a deal on a new set of tires — and if you want a better set of tires, there is a small additional charge. Do you want chrome valve stems, or how about mounting, balancing and an extended warranty that covers tow service and replacement?

Changes in practices and the evolution of billing terms is putting an end to old-school cross sales, but up-selling is alive and well.

By the time the transaction is completed, the purchase price has doubled.

Another mainstream example comes from the world of discount airfare, where a quick search of available flights delivers prices all across the board and reveals that some airlines seem to charge around half as much money for the exact same flight — or do they?

Checking in at the Sacramento airport for a recent trip, this author was required to insert a major credit card into a kiosk in order to receive his boarding pass. Upon verifying my identity and itinerary, a series of screens presented me with a range of options: did I have luggage to check? There was a fee for each bag, including the first one. Would I like to have a seat with more legroom, priority boarding, travel insurance, or any of a handful of other options? Click “yes” or “no” to continue, with my credit card unexpectedly charged several hundred dollars at the end of the process — a process of which veteran domain registrar Network Solutions (NS) would be proud.

If you have ever purchased anything from NS, such as a domain name, security certificate or hosting package, then you know what I mean: the company presents an endless array of options, upgrades, add-ons and improvements, page after “continue” page. Moreover, if you do not pay close attention to the site’s payment page’s default “service term” slider settings, the total cost can sharply increase — as that single year registration you wanted is billed as a five-year registration.

It is brilliant marketing and may indeed even be cost-effective and “helpful” to some consumers.

This is especially true when one considers that the products and services offered are those that the company provides in-house, or offers on behalf of its trusted partners. Nothing is pre-checked, options are understandable and the “next” link is at the bottom of a long and offer-packed web page.

This level of disclosure and customer care is not the only way to do things in cyberspace, however, with scammers and shortcut artists taking liberties with consumer preference. These tactics include the use of pre-checked offer acceptance boxes — sometimes placed “below the fold” or under the page’s “enter” or “join” button, or the use of other, nonclearly defined offers and sales.

Of course, billing companies and regulatory agencies are increasingly frowning upon such practices.

Take for example the practice of marketing free sites or mobile apps, supported by service up-sells. This could take the form of offering cam, chat and dating services in order to monetize a free tube site. On the other hand, it could involve buying “Smurfberries” as an up-sell to an iPhone app.

While some readers may prefer a more “adult” example than an offer in a game which primarily targets children, this particular mobile up-sell example is at the heart of a case currently before the U.S. Federal Trade Commission (FTC). This case may indeed determine how and where online marketers, including those in the adult entertainment industry, are able to offer their wares.

Democratic lawmakers have petitioned the FTC to evaluate potentially deceptive trade practices used with some in-app purchases, particularly with those apps targeting children and Apple’s popular iOS. Representative Edward J. Markey (Mass.), and Senators Amy Klobuchar (Minn.), and Mark Pryor (Ark.), wrote a letter to FTC chair Jon Leibowitz, demanding an investigation following a recent story on in-app purchases by The Washington Post. The story cited parental complaints surrounding sales of virtual goods within free game downloads, including the story of one youngster who bought nearly $1,400 worth of virtual Smurfberries while playing the Smurfs Village game. Smurfberries sell in batches that cost $99 each.

While these purchases require a password, parents and public interest groups say this is not enough.

“I am concerned about how these applications are being promoted and delivered to consumers, particularly with respect to children, who are unlikely to understand the ramifications of in-app purchases,” Markey wrote in the letter to the FTC — with copies of it sent to both Apple and Google. “Companies shouldn’t be able to use Smurfs and snowflakes and zoos as online ATMs, pulling money from the pockets of unsuspecting parents.”

“The use of mobile apps will continue to escalate, which is why it is critical that more is done now to examine these practices,” Markey added. “I will continue to closely monitor this issue and look forward to the FTC’s response.”

Markey says that parents downloading games and other titles for their children, especially free ones, often do not realize that virtual items may be available for sale within the app.

This is not just an issue for children, however, making it certain that the FTC will address the growing problem at some point and provide impetus for industry self-regulation to forestall regulatory efforts.

According to Distimo, an App Store analysis firm, revenues from purchases within free applications targeting the iPad and iPhone more than doubled between June and December 2010, with in-app buys now accounting for half of iPhone developer income and nearly 30 percent of iPad developer revenues.

Back to the adult webmaster community, changes in practices and the evolution of billing terms is putting an end to old-school cross sales (although internal marketing opportunities still exist — you just cannot provide an outside company with your customer’s billing info), but up-selling is alive and well.

One lesson from the folks at Network Solutions: instead of making your default membership option the lowest available (i.e., a trial or monthly embership), try pre-checking the “three month recurring” box (with a bold, discount offer) and see how it impacts your sales — you may be impressed!

Related:  

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

opinion

How Adult Businesses Can Navigate Global Compliance Demands

The internet has made the world feel small. Case in point: Adult websites based in the U.S. are now getting letters from regulators demanding compliance with foreign laws, even if they don’t operate in those countries. Meanwhile, some U.S. website operators dealing with the patchwork of state-level age verification laws have considered incorporating offshore in the hopes of avoiding these new obligations — but even operators with no physical presence in the U.S. have been sued or threatened with claims for not following state AV laws.

Larry Walters ·
opinion

Top Tips for Bulletproof Creator Management Contracts

The creator management business is booming. Every week, it seems, a new agency emerges, promising to turn creators into stars, automate their fan interactions or triple their revenue through “secret” social strategies. The reality? Many of these agencies are operating with contracts that wouldn’t survive a single serious dispute — if they even have contracts at all.

Corey D. Silverstein ·
opinion

Building Sustainable Revenue Without Opt-Out Cross-Sales

Over the past year, we’ve seen growing pushback from acquirers on merchants using opt-out cross-sales — also known as negative option offers. This has been especially noticeable in the U.S. In fact, one of our acquirers now declines new merchants during onboarding if an opt-out flow is detected. Existing merchants submitting new URLs with opt-out cross-sales are being asked to remove them.

Cathy Beardsley ·
trends

How to Handle Payment Disputes Without Sacrificing Trust

You can run the best-managed and most compliant website out there, but that still doesn’t completely shield you from the risks tied to payment disputes. Buyer’s remorse, an unclear billing description or even a simple misunderstanding can lead a customer to dispute a transaction. Accumulate enough disputes, and both your reputation and revenue could be at risk.

Jonathan Corona ·
trends

WIA Profile: Taylor Moore

With a 70-person team and a growing slate of tools for content creators, the Teasy Agency has developed a reputation for putting talent first. That commitment owes a lot to co-founder Taylor Moore’s own experiences as a cam model.

Jackie Backman ·
profile

WIA Profile: Cathy Turns Creator Platform Experience Into a Model-First Playbook

As both a model and industry executive, Cathy lives in two worlds at once. “Since I do both things, I can act as the liaison between the model community and the rest of the SextPanther team,” she tells XBIZ.

Jackie Backman ·
opinion

From Compliance to Confidence: The Future of Safety in Adult Platforms

In numerous countries and U.S. states, laws now require platforms to prevent minors from accessing age-inappropriate material. But the need for safeguarding doesn’t end with age verification. Today’s online landscape also places adult companies at uniquely high risk for inadvertently facilitating exploitation, abuse or reputational harm, or of being accused of doing so.

Andy Lulham ·
opinion

What Adult Businesses Need to Know About Florida's Age Verification Law

The rise and proliferation of age verification laws has changed the landscape for the online adult industry. A recent and compelling example is the state of Florida, where Attorney General James Uthmeier has filed multiple complaints against major platforms as well as affiliates accused of violating the state’s AV law.

Corey D. Silverstein ·
opinion

Maintaining Brand Trust in the Face of Negative Press

Over the last year, several of our merchants have found themselves caught up in litigation over compliance with state age verification laws. Recently, Segpay itself was pulled into the spotlight, facing scrutiny over Florida’s AV statute, HB 3. These stories inevitably get picked up by both industry and mainstream news outlets.

Cathy Beardsley ·
opinion

How to Switch Payment Processors Without Disrupting Business

For many merchants, the idea of switching payment processors can feel pretty overwhelming. That’s understandable. After all, downtime can stall sales, recurring subscriptions can suddenly fail, or compliance gaps can put accounts at risk. Operating in a high-risk sector like the adult industry can further amplify the stress of transition.

Jonathan Corona ·
Show More