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| Author |
Topic |
steveceleste |
 Posted - 03/06/2007 : 07:57:06
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Hello,
I had to take a short abscence from Internet Marketing for a few days for personal matters, and afte taking this short abscence, I noticed that maybe Mike Filsaime was right about the Death of IM.
Just a few things that pissed me off when I saw them these past few days:
- I used to visit this forum about two years ago, never registared, but browsed, and if you really go back to the archived posts, you have a lot different conversations.
- When I finally registared I already knew what a WSO was, and let me see the difference that i have seen:
Past: A WSO was a offer of about $17-$37 on an already selling or right before it sold product
Present: I'm now WSOing a $7 report...
The complete value of WSOS have gone down because now if yhe WSO isn't $4-$12, you can't sell it, people question, well I think $37 is a bit to high...
Personally, I feel the $7 secrets was a good idea, but BAD to Internet Marketing, I think it was a great idea for maybe 10 markters to do, but for 100's upon 100's we are devaluing our products.
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Email from Customer
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Dear Steve,
I know your products are good, but I just wanted to let you know, that there is a similar product of yours and it was sold to me for $7.00. Your product being priced at $27. The difference between your products is nothing much, except that I know you as a marketer. However, I do know that a lot of people on your list, are on the same list.
__________________________________________________________
Do you see what is happening?
Alot of the same people are on the same lists, and I really believe that things like this will continue to devalue products, and ruin others.
The $7 Secrets is very similar to WAL-MART, and the way they ruined MOM and POP shops
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TonyDavis |
Posted - 03/06/2007 : 08:05:06
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I totally agree Steve.
[rant>IMers have worked so hard for so long to build people up to paying more money for E-products. Then, in one "lame" product launch, all that hard work has been undone. Now, people are questioning why they should pay 27-97 for an e-product when they could get something VERY similar for $7... heart breaking in my opinion. I'm not sure who came out with $7 dollar secrets, but I truly believe they bit the hand that feeds them.[/rant>
[extra_rant>STUPID |
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eterpete |
Posted - 03/06/2007 : 08:14:27
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.........internet marketing as it is (in its present form), is really a fad! It is a money making orgy in the WSO place and indeed in internet marketing as we know it!You must understand that the internet is still looking for a 'form'.......it's inevitable that changes like you described happen as the internet grows............change is the only constant and we should learn from the past (WALMART and the MOM & POP shops)
We might want to take a look at the origin of the internet and how the revolution is taking root across the world...........''internet marketing'' is not dieing...its only growing! We should all grow with it!
There's a lot more to say but........................................its exciting, change that is! |
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John Ritz |
Posted - 03/06/2007 : 08:14:48
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If you base your USP solely on price, then yes, you'll have to deal with price wars. And eventually someone else will come along and sell a similar product for cheaper.
That's why I NEVER use price alone as a selling benefit.
If you have a quality product and over-deliver, a price war becomes less of an issue.
Just my experience.
John
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Kay King |
Posted - 03/06/2007 : 08:19:06
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Steve's main point is this -
quote:
offer of about $17-$37 on an already selling or right before it sold product
That's the way it was.
Now it's mostly $7-12 reports written just for the WSO.
That's just the way it is. A few of them are quite good..but you must be very selective.
kay |
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rperales |
Posted - 03/06/2007 : 08:52:37
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Personally...
..I'm not much into net marketing but, the way I see it, it's
better than giving it away free..
I personally, don't believe in giving free stuff regardles..we
are in marketing to make money..but to sell something cheap for
bigger money later is good marketing..
It will eventually die or becomes better for the higher products!
rey
P.S. Changes is good now and then..really!..My date is late so
I probably hang around here for awile...like if anybody cares..ha,
ha.. |
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Noah Fleming |
Posted - 03/06/2007 : 09:01:47
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Personally
I read and buy nearly all the WSO's. I really do.
I will say, some are total Garbage and I've kept my mouth shut.
However, some are pure gold. Some are of excellent value and those are the ones that teach you something.
There are a lot of WSO's now that are only $5 bucks and when you get them they are only 4 pages in a PDF with 2 pages of pictures.
Sometimes they are worth it, sometimes they are a total waste of 5 bucks.
The whole death of IM thing in my opinion is many Guru's have been labeled and some are trying to remove those labels or stigmas. People look and say, why should I give you more money. They say, "Wait a minute, I gave you $1500 bucks last month for that product you said would make me rich.. now your back a month later with a new product" Or they say You've got enough money, why do you need more?
Yeah, maybe its a good product but over here I can get something similar for $7 bucks.
The herd is wising up. Much of the problem is, the herd isnt growing and all the Guru's are marketing to the same people.
IM is changing but its for the better.
Dan Kennedy calls it a desire and fulfillment thing where your customers WILL come back and buy the product again in a few months just to make them feel good. I do believe thats true. But the problem is now, things are more intimate. You've got forums, private forums, chatting.. ect.....
So your customer buts X product that you "promised" would set him free. He goes into a private forum and they laugh and say, that was a waste. He never buys from you and tells 10 friends. It's viral marketing working against you.
Or the Guru that says "I'm going to make 10,000 bucks in 10 Days with Zero List" and you can buy the DVD's after for $999 bucks. And of course, all the people know who you are and think "big deal, that should be easy for you."
Just a rant.  |
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steveceleste |
Posted - 03/06/2007 : 09:25:25
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Eleven good rant,
like it...
especially where you say that your marketing to the same people because I have noticed the same...
If I sell 1,000 copies of product that will show step by step hand by hand how to make money online, with no list not knowing a thing, and starting with $100.
Only about 5% will actually take that information and make it something of themselves. That is what, 50 people...
now the other 950 people will complain bitch and what not, I have certain components in my products that checks to see if the person is actually using them, this elavuates my refund decision. So when they compain for a refund and I say to them, but you didn't even try Section 1. They jsut go away.
The 950 people will now go and buy the next gurus product, do nothign with it, and then sit and bitch about gurus and how they never ehlp..
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Jason_V |
Posted - 03/06/2007 : 09:39:04
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I wasn't going to say anything. I decided I wasn't going to let this sleeping dog lie. It's not the death of internet marketing. If you want to call it something, call it the evolution of internet marketing. The only way anything dies, is when it refuses to change and grow with the market, or becomes obsolete because of technology or social trends.
So, have things changed from the mid to late 90's to present, you better believe it. I remember when I was looking into my first domain name and it cost $100 a year just for registration. Now, you get them from like $5-$12.
All this doom and gloom and nay-sayer stuff is ridiculous. This isn't a personal attack, I'm saying this to everyone, if you really feel this way about IM, then get out. Sell your websites, sell off all your PLR content, unsubscribe from all the mailing lists and get out. Get a government job put in your 40 hours a week and your guaranteed pay level increases.
Reminiscing about "the good old days" isn't productive. Gasoline used to cost under $1.00 a gallon in the U.S. too. Well, it isn't that way anymore. Because gasoline isn't under $1.00 a gallon I didn't sell off my car, not renew my driver's license and get a bus pass.
I have something to say about the Wal-Mart and IM comparison. Wal Mart thrives for a reason. They know where to get their products cheap (China mostly) and can mark it up enough to make a nice profit but not out of range of Jane and John Q Public. Is it true it puts a lot of local stores out of business? Yes, it is. I just think Wal Mart is a scape goat in this country. I don't hear anyone complaining when TGIF, Applebees, Chili's, etc...come to town and put a hurting on all the local restaurants and diners.
The main point is, just because you can buy a button down dress shirt for $9.95 at Wal-Mart doesn't mean there still aren't people paying $45 or more for one at Macy's, Nordstrom, etc...It's the same thing with a Toyota Sedan and a Lexus Sedan. You can get a nice fully loaded Toyota Sedan for way cheaper than a fully loaded Lexus. Does that mean Lexus is going to pack up shop and stop selling cars? Hell, no.
The kicker is they're made by the same company. So Toyota makes out on the value and price sensitive consumer and the consumer looking for luxury. They get the best of both worlds. A shirt is a shirt, a car is a car. It's the perceived value which makes the difference for what people are willing to pay.
If you deliver a top notch quality product, training videos, audio, good customer support, good testimonials from John Q public, not some guru you gave a free copy to who is your JV partner, you'll see people will gladly pay you $47-$100.
Yes, in a way the big guys are partly responsible for what's going on. I think the popularity of the $7 reports is just a backlash against the $1,000+ product launches and hype.
If you were making mid-range priced products and still are I don't think you will have any problems competing with $7 reports. In fact, you can use $7.00 reports to your advantage. Learn from the mistakes of the retailers like J.C. Penney and such. The major retail stores considered Sam Walton a "hick." They didn't perceive him as any kind of a threat. They didn't acknowledge him, to their detriment. Learn from it, tell people in your sales letter why your product is more valuable than any $7 product they can buy, and back it up. |
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Andrew Bourland |
Posted - 03/06/2007 : 09:46:34
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While I had my own trepidations about the $7 pricing, after I heard Gary Ambrose speak at JV Alert Live in Orlando, I realized that really, $7 is merely a stake in the ground where you can separate the freebie seekers from those who are willing and able to actually PAY for a product.
If I recall his talk correctly, he'll sell items for a nickel or a quarter or fifty cents... ANYTHING BUT FREE so that all the people who are on his list are people who have a demonstrated capacity to spend money.
Working his way from there, he has been quite successful in monetizing those who spent a mere pittance with him and later turned them into higher paying customers through the offer of better products.
I don't think we have to worry about products like Product Launch Formula or Traffic Secrets ever selling for $7.
But for budding information marketers who want to plant a stake in the ground and begin building toward the day they are able to charge $997 for an info product, $7 is probably more solid ground than free to start the process.
There are a lot of free reports on the net right now that should be $7 reports, building their creators' mailing lists with names of those willing to spend a few bucks.
So actually, this may well be the rebirth of internet marketing.
It just depends on how we use it.
Andy
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Tim Whiston |
Posted - 03/06/2007 : 09:49:22
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Just something to think about...
When I hear people in this forum and many other places talk about Internet marketing, they are usually referring to a niche full of people who sell marketing tools to one another. It's funny in a way I mean you have this HUGE community on the web where nobody is selling consumer products but instead everyone is buying and selling marketing products.
On the other hand Internet marketing also refers to the practice of marketing a business model on the web. Hell a landscaper can apply Internet marketing strategies quite effectively, and so can any traditional retail shop.
The truth is Web marketing is just now starting to heat up in the traditional business arena.
But here in the land of "none of us have B2C products and we're all just selling ebooks and memberships to a bunch of guru wannabe people who probably don't even own registered businesses" yes we're seeing a decline.
Could it be that people just aren't as willing to pay $97 anymore since 9 out of 10 people in the net marketing industry make ZERO profits and end up quitting? Could it also be that last year we saw what I like to call the superstar syndrome reach it's peak and now it's on the decline?
How many people were pulled out of guru boot camp last year and put on the parade deck with yet another "how to make money on the Internet" product? It was a big sequence of uge launches for throw away products... one after another month after month.
And the bubble popped.
There will always be a work from home niche. Before IM grew to what it is today we had infomercials and magazine ads.
People will always be looking for something beyond the 9 to 5 grind. and most of these people will be looking for the dream, and not actually be willing to invest in a real business.
My design business grows daily, and my clients with traditional businesses are getting and will continue to get great results from their Web marketing efforts. And what about the "niche sites" (referred to elsewhere simply as websites LMAO but here in the bubble anything with a tangible product and a prospect base of people who aren't trying to get rich is called a "niche market") that continue to produce solid profits?
Truly Internet marketing as a practice is nowhere near dead, but the little bubble of B2B hobbyists might be in a state of depression... but to be honest I'm sure even IM as a niche of opportunity seekers will see a powerful rebound.
</rambling> |
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S. McKay |
Posted - 03/06/2007 : 09:56:01
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Here is the simple way I see it...
...If the market goes one way it is for a very good reason. Whether you like that reason or not is irrelevant. You need to adapt and move with the market.
If you see $7 as selling an ebook for $7 and that's it then you're gonna have the repo man round in no time.
Get creative with it and you will love the $7 METHOD of marketing.
Big Marv |
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Jabb |
Posted - 03/06/2007 : 09:58:26
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Many have become smarter due to the teachings of people like Mike F and he is right there are so many product launches every month now, This is not a bad thing at all. The Death of IM basically educates us on how to have less spam, be more unique with our products, have a unique team and strategy that opens our eyes.
I am very much obsessed with niches now and that is now more than ever the future that the internet shall operate in.
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n/a |
Posted - 03/06/2007 : 10:22:23
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quote:
Originally posted by steveceleste
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Email from Customer
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Dear Steve,
I know your products are good, but I just wanted to let you know, that there is a similar product of yours and it was sold to me for $7.00. Your product being priced at $27. The difference between your products is nothing much, except that I know you as a marketer. However, I do know that a lot of people on your list, are on the same list.
__________________________________________________________
Steve, there's an excellent post from Paul Myers in the last few days, which talks about 'commoditization', and how to overcome it.
Without 'premium' positioning or branding, you can't command your price.
With it, the sky is the limit.
Think everyone is hurting because of the $7 wave? Nope. $997 infoproducts are still selling just as well... just not to the same crowd!
All success
Dr.Mani |
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AverageGuy |
Posted - 03/06/2007 : 10:45:00
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quote:
Originally posted by drmani
Think everyone is hurting because of the $7 wave? Nope. $997 infoproducts are still selling just as well... just not to the same crowd!
All success
Dr.Mani
totally agree. not because of other $7 offers, it is simply because the product is not good enough, and it doesn't worth more money although we may put lots of time and efforts to create it.
david
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infodude |
Posted - 03/06/2007 : 10:45:18
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I must say, you make some very valid points. I hope all marketers will not resort to this.
This system was meant for short reports, but now people are selling software and everything under the sun, which devalues it for others selling the product at the suggested price. |
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n/a |
Posted - 03/06/2007 : 10:58:57
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| You know? I can't help but agree with you. I never thought of it: however, when you presented this theory, it's so true. |
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thadroe |
Posted - 03/06/2007 : 11:09:39
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It's waaay easier to market products outside the "make money" market anyway. I look around Commission Junction and don't see a lot of products and services that are threatened in any way by a $7 report.
Thad |
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S. McKay |
Posted - 03/06/2007 : 11:21:30
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quote:
Originally posted by thadroe
It's waaay easier to market products outside the "make money" market anyway. I look around Commission Junction and don't see a lot of products and services that are threatened in any way by a $7 report.
Thad
Exactly Thad - great point...
Big Marv |
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maximus |
Posted - 03/06/2007 : 11:31:12
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| I LOVE wal-mart and hate anyone who is anti walmart... But thats just off topic. Back on topic I think that people just will get something cheaper to save money even if the product is a piece of crap... I agree that this is only good for a few marketers, but not thousands to do. Well, what does the $7 secrets creator care. He is making loads of money off his ebook! I should get ahead of this guy and create $6 secrets... LOL! |
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junker86 |
Posted - 03/06/2007 : 11:55:59
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First off, from a list perspective, a $7 buyer is worth alot less than a list of people that buy higher-priced products such as $70 to $1000. Stop worrying about price, and start focusing instead on creating better products, and heavily enhancing your branding.
Sure, Walmart has some cheap prices, but ya know what, I won't even step foot in that concrete block of putrid waste. The lines are long, the service is sh*tty, and i've found considerably better prices at specialized stores. I won't shop at Walmart because the experience blows.
Dabney |
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PowerOfOne |
Posted - 03/06/2007 : 12:29:19
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Walmart sucks. :)
But it does market and meet
the demand created by cheapo's
who want next to nothing crap
made by 12 year old borderline
slave laborers.
So it exists, and it exists
abudandantly.
If $7 secrets can be compared to
walmart then expect to see a $7
report on every street corner
coming soon!
Yes, you can also expect some
people might be put out of business.
But NOT the people who meet the demands
of all the "non walmart" crowds.
Just be a better marketer and you will
have nothing to worry about. It truly
is about your brand, and the value
behind your product.
A positive way to look at this is...
now people HAVE to be motivated to
put together a VERY high quality and
meaningful product for their target
market if they expect to sell it
at $97 if similar information is going
for $7.
It's a natural selection process where the
best will flourish and the sloppy
will suffer.
I choose the non suffering route and will
put together the value for my customers to
make it happen.
All the best,
Jonathan |
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maximus |
Posted - 03/06/2007 : 12:34:08
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| Well I do have to admit that buying certain things like smoothies from mom and pop shops are fresh and more tasty than from a place like Dunkin Donuts, but Walmart has great prices for a lot of things and its a good store if you want to save money... |
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thehypnotist |
Posted - 03/06/2007 : 12:35:42
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quote:
Originally posted by maximus
I LOVE wal-mart and hate anyone who is anti walmart... But thats just off topic. Back on topic I think that people just will get something cheaper to save money even if the product is a piece of crap... I agree that this is only good for a few marketers, but not thousands to do. Well, what does the $7 secrets creator care. He is making loads of money off his ebook! I should get ahead of this guy and create $6 secrets... LOL!
I am way ahead of you
registered 2dollarsecrets.com 1dollarsecrets.com lol |
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jeeplaw@yahoo.com |
Posted - 03/06/2007 : 12:46:44
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The trick is to think outside the box. What kind of selling point besides the norm, can you bring to the table? I agree with the poster who said to focus on niche, but also, to focus on the non-traditional markets. Many of these 7 dollar reports are focused on the IM arena and do NOT touch upon other areas (but some do of course). Ask yourself this:
How can I reach out to a large number of individuals looking for some help in any certain area?
How can I provide that help to them and make it worthwhile so as to purchase that needed help?
Answer that, and you'll resuscitate that "internet marketing" body in no time ;) |
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Michael Pine |
Posted - 03/06/2007 : 12:49:46
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I don't know if Internet Marketing is quite dead. I do think that the sweet spot for special reports has dropped from the $17 to $7 ballpark. At the same time though before you bought a $17 report and that was pretty much it, you went onto a mailing list or were offered other reports. Now I am seeing $7 report, $47 for MRR, and then an upsell to another more high product or megga mad blowout. It just seems the barrier to entry has gone down while the over all prices have not changed to much. Now you just get multiple OTOs and then a barrage of emails offering other pieces of the puzzle.
If things were really so dire we wouldn't have 40,000 people lining up and fighting over a couple hundred spots in programs like Stompernet and Pipeline Profits. If you market to the write audience with the right copy and enough hype you can still charge almost any number you can think of plus First Born.
To All Your Success,
Mike |
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PowerOfOne |
Posted - 03/06/2007 : 12:52:53
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quote:
Originally posted by Nefarious
If you market to the write audience with the right copy and enough hype you can still charge almost any number you can think of plus First Born.
To All Your Success,
Mike
LOL, and you better believe they
want your first born too! |
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NathanFalkner |
Posted - 03/06/2007 : 12:54:08
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To the extent a segment of the market will only buy
$7 products, and you sell a $97 product...
You should compete with yourself and create a
watered down version of your own $97 product on another
domain name under a different pen name and cannibalize
your own sales!
Why let people come along and essentially clone your
$97 product, and get away with selling it for $7?
You might as well do it yourself! 
Nathan Falkner |
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jasonl70 |
Posted - 03/06/2007 : 13:06:11
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It’s simple commoditization and capitalism at work...
Don't try to differentiate yourself/business/product solely on price. One of my clients works in a very competitive industry that struggles with this a lot - but they have a saying: you have either the best prices or the best service - but you don't have both. Get involved in a price war, and the prices WILL be driven down to the point where there is no profit left.
Your UVP needs to be something not easily duplicated - and price certainly doesn't meet this. There are a lot of great books on this - and for $29 at a book store you get several hundred pages written by a true expert who isn't worried about $7 competition :) *hint* *hint*
Do you think guys like Reese, Danik, etc, are worried? Probably not.
I used to work as a software engineer. My bill rates were $150-180. Was my employer or I worried about low-cost off shore labor, or programmers brought in from overseas who billed out at bargain basement prices? NO. I was an IBM business partner, and our products and projects often cost 10 times as much as our competition. Was I worried? No. I'd much rather have clients willing to spend $200k w/o complaints then $20k and whining.
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neildesign |
Posted - 03/06/2007 : 13:07:48
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When I first saw the release of the $7 reports, I feared the same thing - that people would recalibrate what they thought was good value. The "Internet Marketing" crowd is a limited market place, and secrets don't stay secret for long. Someone releases a $97 product. Someone else buys it, condenses it down to 30 pages, then sells it for $7.
However, it should be recognised that selling $7 reports was never supposed to be a full business. Many people tried selling their stuff at $7, and - guess what - more people started buying. What a surprise! If that is their entire business model, they will not last long.
The point was to use the reports to build a list of people that are:
a) interested in your niche, and
b) willing to spend money on information products in your niche
The result is that you get a very responsive list. And remember, the way the $7 system is set up, the author doesn't make money from the reports - the affiliates get 100% of the $7.
It's not all doom and gloom - it's worth remembering that many people will get the $7 report - then see $97 products and think "that must be worth 12 times as much!"
Cheers,
Neil |
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lakading |
Posted - 03/06/2007 : 13:16:01
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If a $7 report threatens your business that badly, you've been done a favor.
Take this OPPORTUNITY to THINK and PLAN and make your business better.
If you WON'T, it's safe to say that you're better suited for a J.O.B. |
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Willie Crawford |
Posted - 03/06/2007 : 13:40:10
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Related but not a direct response...
Here's part of an email I recently received from Yanik
Silver. It's promoting a workshop, but shares some VERY
powerful lessons. If you look closely, you will see many
very successful Internet marketers applying these lessons!
I hope that Yanik doesn't object to my posting the email
here.
Also, study the copywriting. It's very good copy... even
with a few spelling/grammar errors :-)
Hi Willie,
If you boil down my biggest profit windfalls in my business
(and the most astute marketers I observe) it has come down
to selling premium products and services at premium prices.
That's how my business has leapfrogged from 6-figures to
7-figures and now multiple 7-figures a year!
I really love high priced products and you'll see why in a
moment...
Personally, I've sold everything from $5,000 workshops to
$14,500.00 "Apprentice Programs" to $20,000 MasterMind
groups and lots in-between. My most recent high-end product
is a $40,000+/yr program for cosmetic surgeons.
Stick with me and I'll share with you a few of the things
I've learned...
First, let's say you want to make an extra $1M this year -
then you'd have to sell 20000 copies of your 'doohickey' at
$50. Or it could be 2000 copies at $500. Or better still
200 copies at $5000. It's a lot easier dealing with 200
customers than 20,000. Think of all the customer service
and infrastructure, etc.
That's why I wanted to share with you my newest insights
about how to dominate the marketplace selling high priced
products and services...
I've put together 7 reasons why selling high-priced
products makes so much sense:
--
Reason #1: More Profits
--
Okay no surprise here. When you sell for higher prices you
make more profits. Very few companies have been able to
sustain a "low price" position in the marketplace. Sears
couldn't. K-Mart couldn't. And now it remains to be seen
what Wal-Mart does with that position. (Actually if you
study Wal-Mart you'll notice they are bringing in some
significantly high-priced, high-margin products.)
--
Reason #2: Better Customers
--
Price qualifies your customers more than you might realize.
The ones that pay $7 for an ebook are going to be the ones
that whine and complain the most! They'll tax and strain
your customer support team. But in comparison the customers
who spend significant amounts of money are surprisingly
easier to deal with and less demanding.
A perfect example of this was last week when I took my
Aston Martin into the shop for some minor work. I dropped
off the car and needed a loaner. Usually they provide
Mercedes loaners for their customers but they didn't have
one available. I told my service manager, Eric that I
really didn't care what I drove out with. He laughed and
said the Aston customers are the easiest ones - just like
me they could care less what kind of loaner they get. But
the C-class (cheapest model) Mercedes customers were the
worst because they would rant and yell if they did not get
a Mercedes loaner.
What's more the fact that your customers spent more money
means they'll be more compliant and actually do what you
tell them to do. As another example I've been to $500
seminars and I've been to $15,000+ seminars. Which ones do
you think I pay more attention to and make sure I extract
more value from? Of course - the more expensive one.
Think about the last time you gave free advice to someone -
what happened? That's right. Nothing. But if you had made
them pay you for consulting - they would have taken it to
heart.
--
Reason #3: Psychology of Price Works In Your Favor
--
We've always been taught "You get what you pay for". It's
not uncommon for a prospective customer to discount a
product or offering because it's "too cheap". If the price
is not in line with what it should be you'd think there is
something wrong. If I could buy my Aston Martin from the
dealer for $25,000 - I'd immediately be working overtime on
what could possibly be wrong with the car. There are
certain products that artificially keep their prices at
significant premiums because price is so highly correlated
with value.
What's more, you also gain instant respect and recogniton.
Only a "true" expert would charge high prices - so that
puts you in that category immediately. (Of course, you
better have the goods to back it up.)
--
Reason #4: Can Deliver More Value
--
Ultimately the value you provide will dictate the profits
you receive from your customers. Increase the value and
your revenues go up. By selling high-profit products with
high-margins you have lots more wiggle room to deliver
sensational value. You can really "WOW" your customers and
buyers. Not only can you throw in high-value extras but you
can afford to deliver truly unique unadvertised bonuses and
follow-ups.
--
Reason #5: Some Buyers Will NOT Buy Low-Priced Items
--
It sounds crazy but some customers are only premium buyers.
If you gave them a discount it would actually decrease the
response. Plus, some customers are only comfortable buying
in the high-end range. I was shocked when I discovered with
my first high-priced offering. My Apprentice program was
$14,500 and at the time this was head and shoulders above
any other marketer.
I thought my best prospects for this program would be
customers who had already bought from me and were happy.
Surprisingly about half of the people in this program had
*NEVER* bought anything from me before. Their comfort level
was a premium offer.
--
Reason #6: Create Big Paydays
--
All the big numbers you've seen highlighted in the
marketplace have all come from creating high-priced
offerings. You've seen some of the numbers...$1M in a day,
$900,000.00 in 8 minutes, $3.5M in one week, etc. etc. It's
way easier to hit these kind of big paydays by only having
to sell to a small handful of customers.
--
Reason #7: You Will OWN The Marketplace
--
I think this is the biggest reason of all...
There are 2 big parts to this. First, you can afford to
make big payouts to affiliates to push your product.
Listen, if an affiliate has a choice between 2 relatively
equal products but one pays them significantly more - in
most cases that affiliate will go with the higher
commission.
With high-priced product you got the room to give
affiliates such a significant commission that you'll see a
feeding frenzy of activity. (When they're getting a big
affiliate check the affiliates pull out all the stops
themselves like incredible free bonuses, etc to make the
sale.)
Plus, the other piece of the puzzle is you can spend more
on your own to acquire a customer. This is huge! If I'm in
the same marketplace and I'm competing against who only has
$100.00 product at the end of their funnel and I have a
$10,000.00 offering - there's going to be almost no
contest. I can spend more on Pay-per-click, more on
advertising, more on affiliate pay-outs, more on offline
follow-up, more on testing unusual advertising places, etc.
etc.
And I can make bad results work for me. If I'm direct
mailing for a high-priced product I only need a fraction of
a fraction of a fraction of the response for a low-priced
product to make me money.
Fact is, the business owner who can spend the most to
acquire a customer will WIN.
Period.
End of story.
(Please tape that quote somewhere where you can focus on
it!)
Most people are undercharging for what they provide. My
rule of thumb and one of my values I look at it every
morning in my planners says "I get rich by enriching others
10x - 100x what they pay me in return".
That's a big deal for me. If you pay me $1000 for a product
- I want to make sure it delivers $10,000 in value for my
customers. I suggest you consider something similar. If
your product isn't good enough for you to raise your price
on it - make it better!
Here are just some of the high-end products I've successful
sold:
* Designed a Peer-Advisory MasterMind Group. In the first
year 18 individuals paid $15k to be part of this group
which met 3x/year. In the second year I've added one more
group and raised the bar up to $20k per person. (Just these
2 groups alone are worth an extra $440k in NET profits.)
I love MasterMind groups because if done right they require
significantly less personal time and can create
disproportionate profits for you. The big secret is when
you bring the right people into your MasterMind group
they'll end up doing the heavy lifting and it actually
works out better than any type of one-on-one coaching or
mentoring.
* Sold-Out a $14,497 "Apprentice" program (Yes, before
Trump!) and created a wait list using nothing more than
email. Side note: Participants not only paid the hefty
program fee but also a 12% ongoing royalty on sales!
* Initiated a group coaching program for $7,500 per
student. Allows you to get paid more by going away from
one-on-one coaching.
* Held numerous small workshops on specialized topics
ranging from $4k to $5k per person. (What's more, I
packaged up the DVDs/Audios from these events for hundreds
of thousands in additional profits that's still selling
strong.)
* Developed multiple high-end "e-classes" which were $2k
for tuition and always sold out with days of announcing
each new class. (One of the best ways of getting
significantly more for roughly the same content but only
giving limited access to students via email homework
assignments.)
* Created the "Underground Online Seminar(tm)" which was
sold out every year weeks in advance of the actual event.
(This single event has exceeded 7-figures in income each
year.)
* Modified an existing information product (kit) for
Cosmetic Surgeons into a high-priced, done-for-them service
type business. Went from a $900 sale to a $43k+ per year
revenue stream from those doctors.
* Licensed existing content Internationally and for other
marketplaces where I'm not currently involved in for extra
5-figure and 6-figure windfalls.
When you understand how to sell big-ticket items it's no
big deal to create a 6-figure or 7-figure windfall
practically on demand. It's easy once you have the formula
figured out.
And don't think high-priced products can only sell if you
are selling 'how to make money' related products. I have
students and friends doing very well selling high priced
products to the fitness marketplace, the dating markets,
small niche obsessive-compulsive markets, self-help, career
marketplaces and many more.
Now a lot of people think selling high priced products are
a lot tougher than low-priced products. Not true. You
usually spend about the same effort trying to sell a high-
priced product as a lower priced product - but the rewards
are significantly bigger!
You see, the real hidden wealth in your business is selling
high-priced products and services to a select group of
qualified customers. Just hold your breath and add an extra
zero to your price ;)
* * Special ONE-TIME workshop * *
I get inundated with calls for one-on-one training and
help...especially related to selling premium priced
products and services.
Over the last few years I've significantly cut back on any
kind of personal help, coaching and mentoring available
direct with me. Frankly, I've been too busy on other
projects and things going on. But there are lots of our
customers who ask for this but I've had to refuse 9 out of
10 people.
While I love doing it and the incredible positive
feedback/testimonials from working closely with select
individuals - it's usually not the highest use of my time.
However, knowing the impact it makes I have decided to hold
a very tiny, exclusive workshop called "How to Sell Super
High Priced Premium Products & Services". It'll be limited
to just 16 individuals who qualify. I haven't figured out
all the details yet but I think it'll be April 20-22, 2007
in Bethesda, MD.
If you'd like priority notification on this event - just
send a blank email here:
mailto:premiumprice@aweber.com
* This is NOT another Seminar - but a TRUE Workshop! *
Attendees will be required to do preparation work ahead of
time and then work for 3 intense days at the event. We will
be "workshopping" your business, your offering and
marketing plan. I will not be teaching most of the time.
Most likely I'll be teaching about 1/3rd the time with the
rest you guys actually "doing it"!
In smaller groups and then as one group of 16 we'll be
brainstorming and working on each aspect of a high-priced
offering. From the actual idea creation, brainstorming,
offer creation to pieces to deliverables to launch plan,
copy, execution and more!
Plus, there will be a 6-month follow-up direct with me
including email, phone and second opinion critiques.
Obviously, it should go without saying this event will be a
significant investment - but one that should *easily*
recouped immediately with just 1 or 2 sales of you very own
high-priced product. There are already 232 on this list and
I will not be opening up attendance beyond 16 people
because of the unique nature of this workshop.
Once again if you'd like priority notification on this
event - just send a blank email here:
mailto:premiumprice@aweber.com
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.X. |
Posted - 03/07/2007 : 09:13:36
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Before I made it online, I had a
job offline working for a direct
marketing company.
Our introductory offer was a "free"
cassette tape that the buyer paid
$4.95 shipping and handling for.
This was our "$7 offer".
BTW, initially we had NO charge
for the tape - we had over 300
requests per day. After we
started charging $4.95, requests
dropped to about 40 per day -
sales on the main product did not
change AT ALL.
25% of the people who ordered that
'free' tape bought our $200 program.
This was a relatively small business,
doing about $2 million per year
using three essential elements.
1. Direct mail to joint venture
partner lists.
2. A 'free' sample
3. A $200 product
They also did a couple of live
events per year priced at $700
but that was a minimal part of
the equation.
The $7 report setup is essentially
the EXACT same process as above.
JV partner mails his list promoting
$7 offer - buyer's are upsold to
something bigger on the backend.
Million dollar business, IF you
have something of real value to
offer.
People selling with the Walmart
mentality will live a Walmart
lifestyle.
Take the above formula - simple
as it is - and you have a million
dollar per year business OFFLINE.
$7 reports are not meant to be
$77 ebooks at a dramatic price
reduction - $7 reports are a list
builder - a lead generator - a
sampling of value.
I put out an $8 report about 10
days ago - I made about $1800 from
it directly. I've also sold 3
Black Book DVD sets at $1200 each -
and I haven't even started promoting
that product to these people - it's
just a mention in the $8 report.
So, that's $5400 in ten days - and
I don't even have an OTO in place,
which probably would add another
$3000 to that total.
Oh yeah, and I have a list of 650
people (growing every day) who are
going to spend money with me
indefinitely - they have already
PROVEN themselves to be buyers.
Some people will see the $7 offer
as the be all, end all - they won't
be marketing long and Walmart will
be the only shopping option on
their list.
$7 is nothing more than a cover
charge.
X |
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Kevin Riley |
Posted - 03/07/2007 : 09:25:23
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quote:
Originally posted by Willie Crawford
Price qualifies your customers more than you might realize.
The ones that pay $7 for an ebook are going to be the ones
that whine and complain the most!
Willie
I laughed when I got this e-mail from Yanik and read the above line. Obviously a retort to the latest $7 reports.
But, let's keep in mind that $7 doesn't buy an e-book. It buys a report --- which leads to buying an e-book -- which leads to buying a home study course -- which leads to enrolling in a seminar. |
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Stephen Luc |
Posted - 03/07/2007 : 11:19:56
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The $7 trend enables product owners or email marketers to
differentiate between a pure freebie seeker and someone who
is actually serious about whatever niche or business that
is. We see this all the time; people who dream about owning
a business that earns thousands, but they are not willing
to even put forth $1. So in a way, it allows the list owner
to know, ok this guy is serious, and he will actually use the
product. That may not apply to everyone, but it helps you
know your list better.
Yes, it may devalue products from a seller's point of view, but
there will always be competition out there. It makes us sellers
aware of our products and the competition out there and how to
improve our products seeing what customers want.
But I do agree that there are different crowds out there that will
purchase higher priced products which generally gives you less
refunds because they are more serious about what they're getting into.
In Willie's post, I have to agree with "Reason #2: Better Customers"
If there's something I noticed, it's the people that pay for $47+
products vs. a cheaper one, you get customers who are more serious
and don't complain as much vs. a $7. Now we can't categorize everyone
into that category, but I agree that someone who struggles for days
to just to pay for a $7 report will be likely one who complains in
the future or will expect more of your time vs. the person that dishes
out $7 when he or she knows they need it.
Anyways, great post and great insights to you all.
Best of luck,
Stephen Luc |
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Tim Whiston |
Posted - 03/07/2007 : 11:46:57
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A couple of great points have been made.
One, a low priced item gets you a pre-qualified buyer on your mailing list.
Two, even so people who buy low end products often turn into low-rent prospects who are more of a pain in the ass than anything else.
So which is it... are low front end products good for building a list of credit card ready subscribers, or will you just end up with a bunch of whiney no-hopers who spent their beer money on something they thought would make them rich in 48 hours?
The answer might be different for each individual scenario. And honestly probably both are true.
But I spend most of my time soliciting paid entry prospects for my business. Yes I have a free mailing list built in the 'make money on the web' niche but I run this campaign in the background and mainly on coregistration; my personal experience with building huge lists of free subs has not been that great.
Example:
Last year I built a list of 11,000 free subscribers. I flushed them all down the toilet in December because it was more headache than profits.
I currently have a list of around 600 paid front-end subs that net more per promotion than the preceeding list of 11k freebie seekers. |
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NathanFalkner |
Posted - 03/07/2007 : 12:14:41
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quote:
Originally posted by .X.
People selling with the Walmart
mentality will live a Walmart
lifestyle.
I want to expand on this, if I might, because I
think it raises an issue people will become
confused about, and take the wrong way.
For many, the Wal-Mart mentality is to undercut
the competition and win based exclusively on the
question of price across the board.
One of the secrets to the success of Wal-Mart is
that they have cultivated an image as a low-cost
seller of goods -- we sell for less!
And you know, what? They do sell a lot of stuff
for less... and they consider these products to be
their loss leaders.
Everything else that is in the store is priced
with much higher profit margins.
Customers are lured in for price, and sometimes end
up buying stuff that is not the cheapest in town,
especially if it is a product not within the loss
leader category. Heck, some people just assume that
if something is being sold by Wal-Mart, it is the
cheapest price around!
So in way, the Wal-Mart mentality, depending on how
it is defined, is an excellent model:
1) Lure people in with a cheap product offer.
-> Just as Wal-Mart has its loss leaders, we have out $7 offers!
2) Give them other buying options with higher margins.
-> For us, this might be our upsell products and services!
Nathan Falkner |
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n/a |
Posted - 03/07/2007 : 12:26:51
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Walmart, like every other company, needs to evolve to continue to grow and to live. They are taking steps to expand their current US customer base (a low-cost seller of goods.) Yup even Walmart is evolving from its current marketing pitch.
"On September 7, 2006, the Wall Street Journal reported that Wal-Mart was modifying its US stores from a one-size-fits-all merchandising strategy to a custom-fitting merchandise assortment designed to "reflect each of six demographic groups — African-Americans, the affluent, empty-nesters, Hispanics, suburbanites and rural residents."[34> About six months later, Wal-Mart went public with a variation on their customer profile. The new message: "Saving people money so they can live better lives."[31> This reflects what Wal-Mart identifies as three groups that its 200 million customers are organized into:[31>
* "brand aspirationals" (people with low incomes who are obsessed with names like KitchenAid);
* "price-sensitive affluents" (wealthier shoppers who love deals); and
* "value-price shoppers" (who like low prices and cannot afford much more).
A more-specific example of the company's efforts to broaden its US customer base include a focus on gay and lesbian customers, including a December 2005 internal seminar and the August 2006 joining of the corporate advisory council of the National Gay and Lesbian Chamber of Commerce in what is described as a "pragmatic" effort "to broaden its appeal as it tries to expand into new territories, particularly in the more liberal and union-friendly urban and coastal regions". Wal-Mart rejected the American Family Association's recommendations by carrying the movie "Brokeback Mountain", a love story about two gay cowboys in Wyoming.[35>[36>"
http://en.wikipedia.org/wiki/Wal-Mart
In business as in life, the motto "Evolve or die" has never been truer.
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SeanIM |
Posted - 03/07/2007 : 13:15:07
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quote:
Originally posted by steveceleste
...
Alot of the same people are on the same lists, and I really believe that things like this will continue to devalue products, and ruin others.
...
I have to agree with you.
I've also had this discussion with a few marketers I know lately...
The following usually ends up resulting from these conversations:
1) If you have non responsive lists sending cheap offers might make a few bucks if you don't mind the logistics of that setup
2) Become a "list snob" if you want to maintain a high-priced ticket value of your customers - do not mail to someone that you suspect will eventually 'try the cheap route'
3) **** You must constantly be working the freshest leads through your setup
4) If you want to service the Rodeo Drive crowd - build for them and only focus on those markets.
Trying to sell the same product that is sold for widely different prices isn't such a great idea anyways. Make sure your products/services are both the best looking and highest quality material.
Be absolutely certain of that and charge what the market will bear. If you don't like the price points of that market...find one that's higher and build for them. ;)
Also, don't worry about the other crowd or issues too much...there is a place and need for everyone in the broad market.
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lakading |
Posted - 03/07/2007 : 14:16:14
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quote:
Originally posted by .X.
BTW, initially we had NO charge
for the tape - we had over 300
requests per day. After we
started charging $4.95, requests
dropped to about 40 per day -
sales on the main product did not
change AT ALL.
25% of the people who ordered that
'free' tape bought our $200 program.
YIKES...I bet you couldn't pull that $4.95 ad fast enough. |
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Death of Internet Marketing, my theory....