The concept
A downsell is the second attempt. When the buyer declines the upsell, instead of ending the funnel you offer a reduced version, a shorter plan, or a lower price, without asking for the card details again.
It works because the decline is almost never about the product, it's about the value at that moment. A well-calibrated downsell recovers part of the revenue the funnel would otherwise lose entirely, and it doesn't cannibalize the main offer, because it only appears to those who already said no.
How it shows up in practice
A buyer clicks on the upsell in your funnel, sees it costs an extra 97 reais and backs out. Instead of them leaving the entire funnel, you present a shorter version of the same product, six months instead of a year, for 37 reais, without asking for the card again.
Every customer who comes in through a small offer can climb the entire value ladder. The first order is not where the money is, it is where the relationship starts.
Downsell works because it's almost never rejection of the product, it's hesitation about value. A well-calibrated downsell recovers revenue the funnel would lose entirely. And it doesn't cannibalize the main offer because it only shows to people who already said no to the bigger sale.