Ethical Scarcity

[Kevin-VirtualProfitCenter]

This week there have been many comments about the ethics of false scarcity tactics--particularly those that reflect something that is not true.

Most of us also know that creating scarcity creates urgency and that creates a higher closing percentage.

So I thought I might give a few examples of things I consider ethical scarcity...

A real limited time offer

It's pretty simple to set up a script that records a cookie the first time someone visits a page and gives them a specific period of time to get a special price. After that time they have to pay the "regular" price.

This works well when coupled with...

A Sale

If someone doesn't buy during the limited time, but they are now on your list, offering them the price again for a weekend sale a week or two later allows you to give them a sense of urgency once again--and this time they will probably believe you will actually raise the price at the end of the sale (which you will.)

A One Time Offer

"You will only see this once--if you pass it up it's gone forever." This can work well if the value far outweighs the price point and the prospects are ABLE to pay the price. Otherwise people just get offended.

An Increasing Price Offer

The first time they visit the site the price is $29.95. If they leave and return later, it's $49.95. If they leave once again and return later, it's $69.95. This tactic works well when you are well known in your niche. If a stranger tries to do it they will probably offend people.

A Limited Time Bonus

A bonus that's only good if they buy on the first visit or by midnight or some other future time.

A Limited Time Rebate

The cool thing about this is you can run a rebate ending at a certain date, then give some other scarcity tactic (limited time bonus, for example) and then when it expires put the limited time rebate in place again.

A Limited Number of Sales

This can be done ethically--even with digital products. Just remove the product (or membership) after a certain number of people sign up. You can make more sales at a future date when you "open the doors" again.

A "Real" Countdown Timer

Depending on the offer this can be powerful. For a free offer it can be short--15 minutes. Or as an "add on" offer after the sale (think GoDaddy.com) it can be 30 to 60 minutes. For a higher priced product it can be 12 or 24 hours--with the clock remaining to run even after they leave the site and return later.

A Free Seminar that is ONLY Live for Customers

If you hold a seminar for new customers and don't offer the recording later then it gives people a deadline for buying. If they don't buy before the live seminar, they don't get to come. And you can do multiple seminars over time to create scarcity on a regular basis.

Offer "Fast Act" Bonuses

Right now people who join one of my membership groups get a "Fast Act" bonus (check out my sig for an example):

The first two people to join get me to write their copy for them--a $10,000.00 bonus. (This one is already gone...)

The first five get my Self-Help Products Crash Course ($997.00)

The first 10 get The Master List Building Seminar ($297.00)

The first 20 get 1 Year Free Hosting ($179.40)

The "Next" person to register gets my white paper on generating traffic ($100.00)

As these bonuses disappear people are more likely to act.

What about you, what examples have you used/seen of ethical scarcity techniques?

[kkchoon]

Great info! Thanks for sharing... I can use this in rotate