Practical Sales Training™ > How To Convert > The Additional User Effect
The Additional User Effect
One licence feels expensive. A second one, cheaper, feels like a deal.
So let buyers add family, friends or extra locations at a lower rate. The maths does the persuading for you.
What Is It
The additional user effect means offering extra access at a reduced fee. So instead of full price per person, the second and third users cost less.
It’s a variation on the buy more effect. Buyers get more for less, and they notice.
Why Does It Work
It works because buyers do the maths themselves. So a cheaper extra user drags the average price down, and they feel it.
Say one user costs £100, and each extra user costs £20. Buy for two users, and you’ve spent £120 total.
That works out at £60 per user. Since £60 feels far better than the £100 they expected, the deal feels obvious.
How Can You Use It
Look at your own offering and ask a simple question. So could you offer extra access to people close to your buyer?
If you sell licences, seats or subscriptions, this usually applies. Since the buyer already has one, adding more costs you very little extra.
When It Works Best
This works best with subscription products, where serving one more user costs you almost nothing. So the discount barely touches your margin.
It also suits offers naturally used by groups, like families or small teams. Since sharing already happens informally, pricing for it makes sense.
When It Becomes Dangerous
It becomes dangerous if it opens the door to real abuse. So loosely defined “extra users” can quietly become full blown account sharing.
It also fails if it cannibalises your full price tier. Since buyers might group together specifically to avoid paying separately.
Common Mistakes
Never Showing The Maths
Some businesses offer the discount but never show the maths. So buyers never feel the saving, and the effect falls flat.
Leaving “Additional User” Undefined
Some leave “additional user” undefined. So the offer gets stretched further than it was ever meant to go.
Assuming Extra Users Cost Nothing
Some assume extra users cost nothing to serve. So real costs creep up while the price stays exactly the same.
The Additional User Effect – An Example
Netflix’s Extra Member Offer
Netflix do this with their extra member offer. An account holder can add someone outside their household for a lower fee.
See also
