If You Don't Sell A Product Over $97 Time To Raise Your Self Esteem

[Networking_now]

My Opinion ??

Why are so many people having digs at the original poster for this idea?

This is a great suggestion that Daniel E Taylor has made. Especially those of you who want to take you business up to a higher level!

he has suggested somthing awesome, and and if applied can really help you push your profit bar higher.

besides he's just giving this idea as a suggestion, and its not like he's forcing you to do this action, but just giving one alternative method to try.

(also it isnt too much about raising self esteem though)

- but all around, awsome original post....

[Robert Puddy]

Originally Posted by Slin

I disagree, I can price a product really low to build a large buyers list.

High priced products do tend to result in lower conversions, it all depends on what you are targeting. Or you could offer a ton of inexpensive products, gain a buyers list, then release a 97$ one to make real money.

Just saying, having lower priced products does have it's reasons.

Which would you rather have...

a list of 100,000 who will buy $7 products OR....

A list of 1000 people who will buy $1000 products

Do the maths then factor in support time for the 100k list against support for 1000 people

And i guarantee the $1000 people will hardly ever complain, ask for refunds or need a lot of support

The $7 people will bitch and moan and send you death threats if you dont pander to there every whim.

If you dont have multiple products ranging in price from $7 all the way to $1000 and beyond your doing your self a disservice.

And even ebooks can be value added upto $100's with multi media delivery, MP3 video etc

Robert

[Chris Worner]

Originally Posted by Robert Puddy

Which would you rather have...

a list of 100,000 who will buy $7 products OR....

A list of 1000 people who will buy $1000 products

Do the maths then factor in support time for the 100k list against support for 1000 people

And i guarantee the $1000 people will hardly ever complain, ask for refunds or need a lot of support

The $7 people will bitch and moan and send you death threats if you dont pander to there every whim.

If you dont have multiple products ranging in price from $7 all the way to $1000 and beyond your doing your self a disservice.

And even ebooks can be value added upto $100's with multi media delivery, MP3 video etc

Robert

Couldn't agree more.

I'd also like to add that when you keep offering significant discounts on your products and services, they get used to it, take it for granted and start to value you less because you HAD to offer a DISCOUNT(suggesting that you are having trouble selling it in the first place because it is not of high quality)

and when you do decide to raise your prices they ask why they have to pay an increase when you gave them discounts on the last product or service you offered.

I know this from previous experience as a masseuse to NOT undervalue let alon UNDERSELL your products and services because your clients WILL NOT treat you or your stuff with respect.

Just my experience

[BIG Mike]

Originally Posted by Robert Puddy

Which would you rather have...

a list of 100,000 who will buy $7 products OR....

A list of 1000 people who will buy $1000 products

Do the maths then factor in support time for the 100k list against support for 1000 people

And i guarantee the $1000 people will hardly ever complain, ask for refunds or need a lot of support

The $7 people will bitch and moan and send you death threats if you dont pander to there every whim.

If you dont have multiple products ranging in price from $7 all the way to $1000 and beyond your doing your self a disservice.

And even ebooks can be value added upto $100's with multi media delivery, MP3 video etc

Robert

Personally, I'd rather have a list of 100,000 who bought a $7 product to funnel into the $1,000 product, which I think would convert more than 1% of that 100K list

Best of both worlds brother!

[Robert Puddy]

Originally Posted by BIG Mike

Personally, I'd rather have a list of 100,000 who bought a $7 product to funnel into the $1,000 product, which I think would convert more than 1% of that 100K list

Best of both worlds brother!

Yes yes I have both too

My point was you have to have that range of products, dont stay with just $7 ebooks

Most people have more $7 reports on thier hard drive than they know what to do with, a lot of them are looking for the next stage and want a more indepth (higher priced) product

The free and $7 $27 levels are lead generation levels, so you can funnel them through to the $1000 products

And please dont anyone tell me that free people wont buy $1000 products, they do every day, and if you dont create a $1000 product to sell to them I will

Robert

[Kurt]

I think Daniel has some very solid points, although I disagree with the "self esteem" point.

On the other hand, I know of a few folks out there that should follow "Get over yourself already, your crap isn't worth $1000"!

[Robert Puddy]

Originally Posted by Kurt

I think Daniel has some very solid points, although I disagree with the "self esteem" point.

On the other hand, I know of a few folks out there that should follow "Get over yourself already, your crap isn't worth $1000"!

Maybe the title should have said "Time To Raise Your Self Confidence" instead of esteem

[Jenny5]

I agree.If you are making sales you should be able to make sales no matter what the price is.It's just you will be selling the product to a different customer target that can afford the higher prices.There are people that just won't buy things because it's too cheap.

[sbucciarel]

Originally Posted by Daniel E Taylor

It's really no harder to sell a $200 product than a $30 product.

It may not be harder to market them but it's much harder to create one that is actually worth it. I've seen few that were worth it and that includes the big shot launches.

Actually, my Flip Ace product is worth more than the $27 WSO price and, no ... I do not suffer from low self-esteem, but I save my big ticket items for $300 - $16,000 websites rather than ebooks. The price of my ebook is based on what people are willing to afford in a bad economy and just simply having a site with continuing revenue makes that site far more valuable when I decide to sell it.

The majority (vast majority) of info products are simply not worth much more than $47, if that much.

[Robert Puddy]

Originally Posted by sbucciarel

It may not be harder to market them but it's much harder to create one that is actually worth it. I've seen few that were worth it and that includes the big shot launches.

Actually, my Flip Ace product is worth more than the $27 WSO price and, no ... I do not suffer from low self-esteem, but I save my big ticket items for $300 - $16,000 websites rather than ebooks. The price of my ebook is based on what people are willing to afford in a bad economy and just simply having a site with continuing revenue makes that site far more valuable when I decide to sell it.

The majority (vast majority) of info products are simply not worth much more than $47, if that much.

Every single one of them is worth more than $47 if put into action

And this is part of the problem daniel was alluding too... No self esteem for the industry you have chosen to be in. Just doom and gloom bad vibes

[sbucciarel]

Originally Posted by Robert Puddy

Every single one of them is worth more than $47 if put into action

And this is part of the problem daniel was alluding too... No self esteem for the industry you have chosen to be in. Just doom and gloom bad vibes

That simply isn't true. There are many ebooks out there that are pure garbage written by people whose only motive is to get as many bucks from unsuspecting newbies as they possibly can with as little effort as possible, and if you don't believe that, you haven't purchased enough ebooks.

There are a lot of other factors that go into making a product that is worthy of a heftier price, such as ... how unique is the information? Is it something that isn't easily found through Google all over the Internet already? Are the testimonials real? Is the income proof real? How saturated or oversaturated is the technique? Is it already on the decline due to oversaturation?

There are few who actually deliver a fresh, unique product that delivers on it's promises.

[Robert Puddy]

Originally Posted by sbucciarel

That simply isn't true. There are many ebooks out there that are pure garbage written by people whose only motive is to get as many bucks from unsuspecting newbies as they possibly can with as little effort as possible, and if you don't believe that, you haven't purchased enough ebooks.

There are a lot of other factors that go into making a product that is worthy of a heftier price, such as ... how unique is the information? Is it something that isn't easily found through Google all over the Internet already? Are the testimonials real? Is the income proof real? How saturated or oversaturated is the technique? Is it already on the decline due to oversaturation?

There are few who actually deliver a fresh, unique product that delivers on it's promises.

None of those factors are relevant

Unique to whoom, it only has to be unique the purchaser

who cares if its easilly fiund through google... Most people would rather you did the research and dont mind paying you for it

no such thing as over saturation with any technique, im still making money using techniques i was using 5 years agoa... basics work

testimonials have no bearing on the product or the content, if your that jaded over testimonials discount them

All these are walls and barriers your putting up to stop yourself...

Here is a quote i put in another thread but its relevant here too

"Rich people admire other successful people; poor people resent them. If you view wealthy people as bad..., you can never be rich..."

If you dont believe in the business, your never going to get it right. if your negative and jaded its going to come out in your writing and ad copy. People will see right through everything you do if you dont instill confidence in what your doing.

Its a catch 22 people doesnt matter what your words are but if your expression and sentiment is this sucks, thats going to spill over into your products and promotions and your mindset will be the thing that defeats you.

Robert

PS: Get positive

[sbucciarel]

Originally Posted by Robert Puddy

None of those factors are relevant

Unique to whoom, it only has to be unique the purchaser

who cares if its easilly fiund through google... Most people would rather you did the research and dont mind paying you for it

no such thing as over saturation with any technique, im still making money using techniques i was using 5 years agoa... basics work

testimonials have no bearing on the product or the content, if your that jaded over testimonials discount them

All these are walls and barriers your putting up to stop yourself...

Here is a quote i put in another thread but its relevant here too


If you dont believe in the business, your never going to get it right. if your negative and jaded its going to come out in your writing and ad copy. People will see right through everything you do if you dont instill confidence in what your doing.

Its a catch 22 people doesnt matter what your words are but if your expression and sentiment is this sucks, thats going to spill over into your products and promotions and your mindset will be the thing that defeats you.

Robert

PS: Get positive

They might not be relevant to you. They are relevant to me. Actually, all your assumptions are incorrect. I've been in business for myself for 10 years and am accused of overdelivering, rather than underdelivering. My commitment to quality does spill over into my products and promotions, so you are right about that. My mindset does not defeat me, as I am not defeated. I earn a nice full time living from what I do and have for 10 years.

What you are saying is that most newbies don't realize that they're being duped, so it doesn't matter that they are.

I am certainly not alone in my belief that Internet marketing has a very well deserved bad reputation due to all the outright lies and overpromising in sales pages and it's why I would not sell a "secret technique" ebook unless it really were a completely unique, proven technique that I wanted to share. That being said, if I did have a "secret" technique that was highly profitable to me, I would most likely keep it secret.

[xlfutur1]

Interesting post going here. I have purchased $197 software products that are totally obselete now (remember directory generator?). The gurus sell high ticket items but usually those are the result of a funnel of people who purchased smaller ticket items over a period of time, then a small percentage end up purchasing the high ticket stuff. Would be pretty tough for a no name to come out and start promoting a $2000 product.

I like the membership model where you are actually selling a high ticket item, but spacing it out over time. I have had one membership site that is into its 3rd year, with very little attrition. At $9.95 per month, that is like selling a $120 product every year to the same people.

[Craig Desorcy]

It's nice of you Daniel to take the time and post something you feel
strongly about in hopes of helping some folks out.

There is some truth in your part on self-esteem but it's not the
whole story as many pointed out such as testing markets to find
that juicy price point, etc...

Thanks for starting this discussion because it's threads like this
that attract the "know how it's done and doing it crowd."

When these folks come out, they talk about stuff others are selling
for good coin.


Best,

Craig

[keyz]

Hi Daniel,

This is a very interesting post...

I disagree with the mindset that one must promote a "high-ticket"
item... even a product or service with the "magical $97 sticker
price that so many IM'ers (Info Marketers) believe they must have
in order to attain success, etc.

Look at Google - they nickeled and dimed (via AdWords) their way
to billions. Look at iTunes - they earned millions with simple
$.99 sales so everyone doesn't have to have a $2k product like
Frank Kern in order to make it.

I read that "the biggest profits are created with the smallest sales"
and Google and Apple's iTunes are perfect examples of that.

I would rather follow Google and Apple's business model than run
around worrying about following after Frank Kern and other
Info-Marketers that sell $2k products, etc.

Just my two cents...

Robert

[Daniel E Taylor]

Originally Posted by keyz

Hi Daniel,

This is a very interesting post...

I disagree with the mindset that one must promote a "high-ticket"
item... even a product or service with the "magical $97 sticker
price that so many IM'ers (Info Marketers) believe they must have
in order to attain success, etc.

Look at Google - they nickeled and dimed (via AdWords) their way
to billions. Look at iTunes - they earned millions with simple
$.99 sales so everyone doesn't have to have a $2k product like
Frank Kern in order to make it.

I read that "the biggest profits are created with the smallest sales"
and Google and Apple's iTunes are perfect examples of that.

I would rather follow Google and Apple's business model than run
around worrying about following after Frank Kern and other
Info-Marketers that sell $2k products, etc.

Just my two cents...

Robert

You're missing the point. Someone could start a massage parlor,
a grocery store, etc...

But obviously this post is geared towards info products/software
businesses because that is most of us run. So trying to follow
google's model would not be applicable.

Why wouldn't you worry about following after Frank Kern, when
he is a SUCCESSFUL INFO-MARKETER and most here want to
be successful info marketers.

Maybe I'm missing something.

Daniel

[Lance K]

Originally Posted by keyz

Look at Google - they nickeled and dimed (via AdWords) their way
to billions. Look at iTunes - they earned millions with simple
$.99 sales so everyone doesn't have to have a $2k product like
Frank Kern in order to make it.

I read that "the biggest profits are created with the smallest sales"
and Google and Apple's iTunes are perfect examples of that.

Google and iTunes couldn't have made billions if their customers only bought one ad or one song. Their billions are made on repeat customers. Their lifetime value of a customer certainly is not $0.10 or $0.99. It's much more.

If you sell someone a $7 report/ebook, you can't very well sell them the same one again. Of course you can sell them other related reports/ebooks. But at some point you would be wise to package them together and try to sell a bundle at a higher price point. Or to even put a more comprehensive program together and charge more. Ever notice how Apple sells iTunes gift cards, iPods for hundreds of $ so that people can listen to their $0.99 songs, etc.?

To build a sustainable business in a high volume, low margin setting you must have repeat customers. Therefore, you need to have a consumable product or a range of products. And if you're going to have a range of products, you might as well have some at higher price points. There ARE people looking to buy at higher price points. If YOU don't have options for them, they WILL buy from SOMEONE ELSE.

Originally Posted by Daniel E Taylor

You're missing the point. Someone could start a massage parlor,
a grocery store, etc...

But obviously this post is geared towards info products/software
businesses because that is most of us run. So trying to follow
google's model would not be applicable.

Why wouldn't you worry about following after Frank Kern, when
he is a SUCCESSFUL INFO-MARKETER and most here want to
be successful info marketers.

Maybe I'm missing something.

Daniel

When it comes to business there is a great deal you are missing. You do not need an expensive product and selling a product at the cost "you" decide has nothing to be with self esteem (as I have said 3 times now).

You DO NOT have to follow anyone, matter fact I suggest you do not but instead create your own plan and goals based on yourself. Maybe frank kerns can make a billion dollars but you know what ??? Who cares - great for frank and no offense to frank is meant at all..

My point is though just because frank does it does not mean it is for everyone. There are many many different ways to make money online and if you sell a product for $7 or $2,000 you can still meet the goals you set for yourself on your plan. You must set a plan and goals that you can reach because the fact is nobody knows you better than yourself.

This reminds me of those marketers that claim you must have a list to do business online and make money. Oh please get a life, no you do not. A list is not for everybody and just because joe blow can make $1,000 a day on his list does not mean everyone else can.

All of this boils down to several things and it has nothing at all to do with

* following someone else
* selling a high end product
* selling low end means poor self esteem

What is does have to do with is

* Creating your own plan and setting your own goals and following that plan and reaching those goals that you set for "yourself"

* Testing your market and learning as much as you can about your market. No ebook or guru can teach you this..

* Pricing your products for what you choose to price them for. This is a personal choice and has nothing to do with what someone else does or how someone else does it.

* Making decisions based upon your own testing and what you feel is best your "your" business or the goals you set for "yourself".

James

[Daniel E Taylor]

Originally Posted by TheRichJerksNet

When it comes to business there is a great deal you are missing. You do not need an expensive product and selling a product at the cost "you" decide has nothing to be with self esteem (as I have said 3 times now).

You DO NOT have to follow anyone, matter fact I suggest you do not but instead create your own plan and goals based on yourself. Maybe frank kerns can make a billion dollars but you know what ??? Who cares - great for frank and no offense to frank is meant at all..

My point is though just because frank does it does not mean it is for everyone. There are many many different ways to make money online and if you sell a product for $7 or $2,000 you can still meet the goals you set for yourself on your plan. You must set a plan and goals that you can reach because the fact is nobody knows you better than yourself.

This reminds me of those marketers that claim you must have a list to do business online and make money. Oh please get a life, no you do not. A list is not for everybody and just because joe blow can make $1,000 a day on his list does not mean everyone else can.

All of this boils down to several things and it has nothing at all to do with

* following someone else
* selling a high end product
* selling low end means poor self esteem

What is does have to do with is

* Creating your own plan and setting your own goals and following that plan and reaching those goals that you set for "yourself"

* Testing your market and learning as much as you can about your market. No ebook or guru can teach you this..

* Pricing your products for what you choose to price them for. This is a personal choice and has nothing to do with what someone else does or how someone else does it.

* Making decisions based upon your own testing and what you feel is best your "your" business or the goals you set for "yourself".

James

Blah, Blah, Blah...

Successful people follow understand the importance of models.

You keep trying to say I don't know much about business.

Maybe you should do your research before you say nonsense like
that.

You're the one who has to peddle $9.00 get rich quick reports in
your sig to make money.

Daniel

[trilogy09]

Yea i have to agree with some of the other posts here, while selling a higher priced product has a better return and makes sense mathematically, it doesn't guarantee you will even make enough sales to make that math work. It depends on your niche and marketing ability as well as the demand for the product. I like the idea, but you must be able to make it work for you. I actually find it better to sell products that have lower initial effect ($10-$70) but where you get recurring monthly sales if the individual keeps the product/stays a member of a program etc. This will allow you to outlaw the fact that you make less initially and combine more and more sales every month the person is a member. As long as you do your research and check the products membership average lasting rank you could very well make a small fortune here.
Hope This Helps

Originally Posted by Daniel E Taylor

Blah, Blah, Blah...

Successful people follow understand the importance of models.

"Make your own plan". How the hell can you make your own plan
when you don't know enough about marketing and business in the
first place.

You keep trying to "Hint" at I don't know much about business.

If you want to keep getting personal... At least do your research on me.

But that's why I run the biggest Music Production infoproduct
site on the web, and you're peddling 9.00 get rich quick IM reports.

I took a tshirt company from a kids moms garage and turned it
into a 6 figure company with media coverage and famous
music artists endorsing our clothing and perfoming in front
of thousands of fans in them. And promoting them at concerts.

All of that in 5 months.

I've had million dollar consulting clients, and clients all over the world.

All of this at age 22. So I think it's safe to say I know a bit about business.

So keep peddling your christmas packs.

Daniel

Daniel,
That is great for "you" does not mean it is for everybody. You can claim I peddle $9.00 products but the fact is 100% of that money has went to the food bank to help feed people. I certainly do not sale any get rich crap..

You started a thread by insulting people claiming they have low self esteem (you did not state that some people may) and then you insult people further by claiming they all want to be like some IM guru. Understand what you write before you write it..

I am not getting personal but pointing out the fact that you have stated your opinions as facts and you have insulted people. If you knew more about business then you would understand that you should not do either of these and try to mislead newbies into thinking they must have expensive products and they must follow someone to make money online.

Business is more than just about money and as far as success is concerned, this is determined by nobody but yourself. You are the only one that can define the term success for yourself. Money does not = success.

I will state it again so newbies do not misunderstand this entire thread...

* Test for yourself and do not listen to anyone else, who cares what kind of money they have made. Just because they did it does not mean you can.

* Setup your own goals and lay out your own plan. Again do not follow what someone else done because it does not mean you can do what they done.

* You do not need an expensive product to make money and money in noway means success. This depends upon your wants, needs, and goals in your own life. Some may want to be filthy rich while others just want to live in comfort and has no need to be filthy rich.

* There is nothing wrong with you selling a product for $10, $20, or whatever price you want. This is your choice and your right and has nothing at all to do with self esteem.

James

[Steven Wagenheim]

Interesting topic, that I really didn't want to get sucked into ala ExRat.

Roger, I know what you mean.

I honestly didn't know whether to give my thanks to Dan or Michael. It seems
as though the wrecking crew agrees with Dan by about 2 to 1.

Here is my take on this whole subject, for whatever my nickel is worth
these days.

There are many factors involved with product creation. Some are tangible
and others, not so.

Let's start with the tangible factors first.

1. Market Demand - It doesn't mean a hill of beans what YOU think of
the product, self esteem aside, if nobody wants the damn thing. Now,
with some niches, it's crystal clear that there is a demand. With others,
not so. If you're in one of those crystal clear niches and they're already
selling high ticket items AND you have something to actually offer, then
by all means...go for it. Get over yourself and just do it.

2. Production Feasibility - Just because there may be a demand for
something, doesn't mean that for YOU it is feasible to create the product.
Some products take massive amounts of research and work in order to
bring about. Are you prepared to put in all that time? Are you even
capable of doing all that work? Being able and willing are 2 different things.

3. ROI - Depending on how much it costs you to make the product and
what you can realistically sell it for, is it worth it? Are you going to get
enough of a return?

For example. I could spend 6 months putting together a massive home
study course and sell it for $297 and sell 500 copies easily, making
about $15,000. But I could spend those same 6 months spending less
time creating a $30 product each month, selling 100 copies of each and
make $18,000 in that same period of time for less work...a lot less work.

So is it worth it for me to put so much time into a big ticket item?

That's a question each person has to answer for himself.

4. Support - Can you support the item? If you're going to sell a $297 home study course, you better be prepared to support it. You're going to get
a lot more questions than from a $27 ebook.

Now the intangible items.

1. Your Self Esteem - Okay, let's talk about that. Somebody who is
absolutely brand new to the marketing world has no basis in fact that
they can sell a big ticket item, let alone any item. It doesn't even matter
if it's a subject the person knows tons about. If they don't have the
business experience to know whether or not the tangible items above
are in line with giving this a go, they're going to be cautious. You can
call it self esteem, fear or whatever you want.

I call it being smart.

You don't jump into the fire below unless you have a fire proof suit on
or know the fire is going to go out before you hit bottom.

Sure, we all take chances in this business...but the smart people take
calculated risks. They don't just say, "Screw it...I'm going to create a $200
product and see what happens."

That's a recipe for disaster.

2. Your Desire - Some people just don't want the hassle of having to
create and support big ticket items. I know I don't. Who needs it? If
you're making a good living selling $27 and $47 ebooks, why give yourself
more work to do? Some people don't want to.

I can probably think of more variables, but the point is, creating or not
creating a $297 ecourse, or whatever the hell it is you want to put
together, is more than just a matter of "Gee mommy, I don't think I'm smart
enough to do this." There are many factors involved and each one has to
be carefully examined and weighed before coming to any kind of a decision.

Me?

I like selling $27 ebooks.

It gives me more time to do other things.

[Daniel E Taylor]

Originally Posted by TheRichJerksNet

Daniel,
That is great for "you" does not mean it is for everybody. You can claim I peddle $9.00 products but the fact is 100% of that money has went to the food bank to help feed people. I certainly do not sale any get rich crap..

You started a thread by insulting people claiming they have low self esteem (you did not state that some people may) and then you insult people further by claiming they all want to be like some IM guru. Understand what you write before you write it..

I am not getting personal but pointing out the fact that you have stated your opinions as facts and you have insulted people. If you knew more about business then you would understand that you should not do either of these and try to mislead newbies into thinking they must have expensive products and they must follow someone to make money online.

Business is more than just about money and as far as success is concerned, this is determined by nobody but yourself. You are the only one that can define the term success for yourself. Money does not = success.

I will state it again so newbies do not misunderstand this entire thread...

* Test for yourself and do not listen to anyone else, who cares what kind of money they have made. Just because they did it does not mean you can.

* Setup your own goals and lay out your own plan. Again do not follow what someone else done because it does not mean you can do what they done.

* You do not need an expensive product to make money and money in noway means success. This depends upon your wants, needs, and goals in your own life. Some may want to be filthy rich while others just want to live in comfort and has no need to be filthy rich.

* There is nothing wrong with you selling a product for $10, $20, or whatever price you want. This is your choice and your right and has nothing at all to do with self esteem.

James

It's safe to say you lack the mental capacity to understand
beyond your ignorance.

I don't see how many people who are respectable marketers have
came into this thread and understood this and you can't...

Maybe that's why they are successful. Because they have the
ability to comprehend.

*Shrugs*

Daniel

Originally Posted by Daniel E Taylor

It's safe to say you lack the mental capacity to understand
beyond your ignorance.

I don't see how many people who are respectable marketers have
came into this thread and understood this and you can't...

Maybe that's why they are successful. Because they have the
ability to comprehend.

*Shrugs*

Daniel

I can comprehend enough to know how to be debt free and run my business for well over 15+ years.. Success again is determined by ones own mind.

I guess from those that disagree with you they have a comprehension problem.. I just hope newbies do not fall for the crap and they actually do go do their own research, testing, business planning, and etc...

Edited to add: editing your own post as you have proves some of my points, and it will cost you respect as others have pointed out before on other threads.

James

[Ashley Gable]

I think maybe the op just worded it a little incorrectly. As i said I disagree with the self esteem idea. But of course if you are selling yourself short, then you are not maxamizing your potential.

I think it just boils down to selling what your product is worth. The idea that people are getting from your original post is that unless you are selling a $97 product, then you are not a confident person.

Which of course is extremely untrue.

I hope to one day offer a $97 product for sure, in fact I plan to launch a non-IM course in january next year that will either be $97 or $127. But only because I developed a course that deserved that price. Up until now I didnt have a product that deserved it.


Just an oversimplification of a idea is what you wrote. But I agree with one of the other posters, this is a great thead, gets you thinking ... "how can I offer more help, more service, more info in order to charge a higher price that is justified".

[Vagabond 007]

Full disclosure, I stopped reading after page 1....

But, overall I think a lot (NOT ALL) of people here fall into 2 categories...

1. Took the OP's post out of context.
2. Don't really know how to sell when it really comes down to it.

While I don't think that EVERYTHING comes down to self esteem, it is VERY VERY important. I'd say at least 95% of selling has to do with your self esteem.

I think the main thing is people who only sell cheaper products do it because they don't have the balls to charge more...or as the OP put it, low self esteem. Why, because they don't believe in the product enough. They start having conversations in their head.

"At a higher price point people will expect more."
"My stuff isn't worth $200"
"People won't pay that money"
"The economy is bad. Nobody will spend that kind of money".

The conversation goes on and on.

I think some IMer's need to get out from behind their computer and get a job selling face to face. Yeah, I know, scary to actually talk to people huh?

You can learn a lot from selling face to face. But, it takes bigger balls. You don't have a computer screen and pen name to hide behind.

[quiescen]

Interesting thread. I've been thinking of raising my membership site rates for a while now. Even emailed my list to tell them about it. But I wimped out thinking I'd lose money.

What I do is really one of a kind and I know people will pay for it but I wouldn't say low self-esteem is holding me back. Just fear plain and simple.

[Ken Leatherman]

Originally Posted by Daniel Brock

Daniel,

Thanks for the post - really has got me thinking differently.

-Dan

Originally Posted by travlinguy

Daniel...
My gut response to the title of this post was defensive. Then I read what you had to say and agreed for the most part. There have also been some strong 'alternative' ideas floated in this post as well. Big Mike makes a really good point essentially saying that certain low-price point items are an entry to the sales funnel.

Anyway, it looks like you've gotten a lot of attention with this post. I know it's one of the most thought provoking things I've read here in months. Thanks for bringing it up.

This has indeed been a thought provoking thread and I have enjoyed reading the thread from start to just before I posted this response.

However, RichJerksNet and Daniel E. Taylor, you two gentlemen need to step back and cool your blazing guns at each other. Please don't ruin this thread and get it removed or locked because of your personal attacks on each other.

I suspect there are some folks that may well have a problem with their self esteem which may contribute to their lack of success, regardless of what they are trying to do. It is a fact of life for them and they are the ones who must make the decision to change their life.

However Daniel just because I chose a business plan to market a low price service, does not mean that it has one single thing to do with my self esteem. It simply means I made a decision to market to the "Discount Customers". However there is a method to my madness and it works very well in my sales funnel.

Now I do agree that marketing a higher dollar product is one part of my business that I havn't done. But I have now reached the point in my business plan; that I will be doing that very thing. And many of the post in this thread have pointed out many positive things to do to make it successful. Thanks for the great reminders folks.

RichJerksNet said: I just hope newbies do not fall for the crap and they actually do go do their own research, testing, business planning, and etc...

RichJerksNet you make a very valid point that every business person should do, prior to marketing "discount" are going for the "high dollar". Without proper planning, with "High Self Esteem" or "Low Self Esteem", any endeavor is doomed to failure or at least a very negliable ROI.

Now let me make this perfectly clear this is my not so humble opinion and just a little bit of Geezerology.

Ken Leatherman

The Old Geezer

[Vagabond 007]

Originally Posted by Steven Wagenheim

For example. I could spend 6 months putting together a massive home
study course and sell it for $297 and sell 500 copies easily, making
about $15,000. But I could spend those same 6 months spending less
time creating a $30 product each month, selling 100 copies of each and
make $18,000 in that same period of time for less work...a lot less work.

??

$297 x 500 = $148,500
$30 x 100 = $3,000

EDIT: I'll assume you meant 50 copies, not 500.

And 1 product at $30 and sell 100 per month. And then do that for 6 months. Although, saying this is a lot less work is not necessarily true.

Originally Posted by Steven Wagenheim

4. Support - Can you support the item? If you're going to sell a $297 home study course, you better be prepared to support it. You're going to get
a lot more questions than from a $27 ebook.

Have you personally experienced this?

My personal experience, although to be fair this was in the "offline" world, says the opposite.

You attract a different kind of person when you charge more. Generally speaking, people who pay more money actually complain less and are easier to deal with.

[Steven Wagenheim]

Originally Posted by Vagabond 007

??

$297 x 500 = $148,500
$30 x 100 = $3,000

EDIT: I'll assume you meant 50 copies, not 500.

Yeah, my math is a bit off.

That's why I switched majors in college.

Yeah, under those conditions I guess the extra work would be worth it.

Okay, I never claimed to be a Charlie Epps.

[JayPeete]

I have to say that it all comes down to value, value, value...

What is your product really worth, really? Is it the marketing that is selling your product(s) or is the product truly worth what you are selling it for?

I guess that is what every business has to evaluate correctly if it is to thrive in any economy.

[ttwee]

There is actually no right or wrong to both views, whether it is better to sell a product of value at a higher price or lower price. I think for newcomers to selling products, they would feel more comfortable charging them at a lower price as they lack reputation and experience. When they become more successful in selling these lower priced products, they can then create the next versions of their products which adds more value and they will have more confidence charging a higher price.

[Black Hat Cat]

Originally Posted by Imran Naseem

IM is not a high quality restaurant. IM is an industry full of high priced, low priced products.

So is the restaurant industry.

[Zanti]

Just some thoughts of mine:

Pricing is based on the customer’s perceived value, not what you think your product/service’s perceived value is. Many marketers overprice their products/services based on what their own perceived value is.

Regardless of the pricing structure you use, the key thing to keep in mind is: What are your objectives. Are you trying to build a list? Obtain entry into a new market? Looking for maximum profits over cost? Introducing a new product/service?

Your pricing should reflect your objectives, cover your cost and be based on testing.

Z

Brian "Zanti" Alexzander

[actionplanbiz]

I agree to OP's post.

just as long as that product / services is worth its cost, then there shouldnt be a difference in conversions

[Vagabond 007]

Originally Posted by Steven Wagenheim

Yeah, my math is a bit off.

That's why I switched majors in college.

Yeah, under those conditions I guess the extra work would be worth it.

Okay, I never claimed to be a Charlie Epps.

I'll tell ya though, from my experience, it's much easier and less stressful to charge a higher price and then have less customers to deal with.

Example, in a past life I was a mortgage broker. Before I knew anything about marketing I was chasing deals only to make a few grand per deal. Then, after I fell down the direct marketing rabbit hole, I started charging more and working less. And my income soared.

So I guess it's a personal thing. I'm just all about the 80/20 principal.

[Robert Puddy]

You might think about this bit too Steven, she is 100% right



Quote:
Originally Posted by Steven Wagenheim View Post
4. Support - Can you support the item? If you're going to sell a $297 home study course, you better be prepared to support it. You're going to get
a lot more questions than from a $27 ebook.
Have you personally experienced this?

My personal experience, although to be fair this was in the "offline" world, says the opposite.

You attract a different kind of person when you charge more. Generally speaking, people who pay more money actually complain less and are easier to deal with.

[Steven Wagenheim]

Originally Posted by Robert Puddy

You might think about this bit too Steven, she is 100% right



Quote:
Originally Posted by Steven Wagenheim View Post
4. Support - Can you support the item? If you're going to sell a $297 home study course, you better be prepared to support it. You're going to get
a lot more questions than from a $27 ebook.
Have you personally experienced this?

My personal experience, although to be fair this was in the "offline" world, says the opposite.

You attract a different kind of person when you charge more. Generally speaking, people who pay more money actually complain less and are easier to deal with.

Well, if I'm going to be perfectly honest, my own experience...I get very
few questions from anybody regardless of how much the product costs.

Most people don't even bother opening up the zip file.

Sad, but it's a fact. I wonder how many unopened products of mine are
sitting on hard drives collecting dust.

However, of all my products (highest priced $97) the $97 one DOES get
the most questions, though hardly enough to say they're overwhelming.
In fact, I'd expect more and yet...nada.

Really makes you wonder, doesn't it?

[Steve Powers]

Well,good article.The fact is I'm occupied in web hosting,and the price of our hosting is not high.According to your article,we should try to raise the price.But have you considered the competition?If we can't take advantage of Godaddy or Bluehost or ... Then how can we raise the price?I'm afraid if we raise our hosting,our potential customers will lose and the number of orders will decrease.I think the most important is your quality and brand.With these things,your price can be high.

[scrofford]

Originally Posted by Daniel E Taylor

This thread may ruffle a few feathers. But I speak not just
from judging others but from my OWN personal experience,
and journey with IM.

This isn't a 100% of the time thing, there are exceptions
to this, but honestly very few.

If you have dreams of being the next frank kern, or doing
over 100k per year and you are struggling to get there
it's probably because you don't put value on your knowledge
and products.

And that comes from having low self esteem and low self worth
which 99% of the population suffer from. So it's nothing embarrassing.

At some point you have to realize that selling $37 products only
is going to take massive amounts of sales day end and day out
to reach 6 figures and beyond.

That's why I think it's important you have at least a $97 product
and a $197 product.

I mean why wouldn't you. It just makes sense mathematically.

3 sales at $100 = $300
2 sales at $200 = $400

So with 5 sales per day you could already be making $700.

It would take 20 sales at $30 just to make $600.

Most of the time we allow our mind to lie to us so we don't
face reality.

Your mind will say stupid things like "People can't afford it at that price",
"It's going to be harder to sell", etc...

Coming from someone who sells those products I will say this.

It's really no harder to sell a $200 product than a $30 product.

The difference is you will get more sales at $30, maybe even double,
but the few sales you get at $200 add up really fast.

If you look deep inside your self it's just your self esteem. You don't
believe you are worth that much money. It's because that's how
we are programmed to think in this society we live in.

I will say this. If you have a product that actually gets results and
SOLVES someone PROBLEM they will pay anything.

And trust me they have the money. People find a way to afford
something they want.

It really changed my life when I went back to the ghetto and
finally realized something.

Everyone has freakin Iphones and Blackberrys.

People spend $400 on freakin phones. Something that will give them
0 ROI. And they FIND a way to afford it.

So if you have a PRODUCT that actually gives tangible results
it's well worth $200.

Then you need to get into selling $1000+ items to really
boosts your income.

Notice all the guru millionaires you want to be like all have
high ticket items. There is a reason for that. DUH!

It all comes down to your self esteem. Raise that and
your life will change dramatically.

Daniel

I am glad that you think this for yourself, but really it depends on the niche you are in also...hhhmmmmmm did ya think about that one? Some markets DON"T support prices for products like that. Now for the make money online niche...yes products support those prices. Even then though, just because someone isn't selling a product higher than $37 doesn't mean their self esteem is low. It could mean they are still learning at that level.

[ikan_sith]

I am a newbie setting up several wordpress blogs for affiliate marketing. most of the things i am promoting are for less than $100.00usd. however one item does pay $300.00usd in commision( 65%.) it is a product tht i believe in and thought that it was a unique item. thanks for this post because i was about to delete tht idea as being to expensive in this economy.

[TheProdigy]

I've seen 30 page ebooks selling for 197.

If you can't sell your product at higher than 97, it's time to rethink if you want to do this for a living.

[ryanstreet]

I believe that trust is the true tool.

Frank Kern did not become rich selling $1000 products, he sold parrot books for around $30 to $50. That isn't a big price.

But he gained trust, proved himself, and was revered highly.

I think the true key is to not settle. Start small, but definitely keep raising your price.

Persuasion 101 states that if you can get a commitment for a very small amount from someone, you can easily get a large amount with little resistance afterward.

Great thread BTW. Great advice and a lot of good insights, including the OP.

[Greg guitar]

Originally Posted by Neil Morgan

One final point - it's easier to start low and work higher than it is to start high and work lower to test your price point. That way you won't annoy existing customers who paid a higher price.

Cheers,

Neil

Just wanted to mention that a nice way to avoid the pissed off customer syndrome (the ones who paid a high price and then saw the same thing for much lower), is to simply refund the difference for all who bought at the higher price, with a disclosure about your price testing procedure. Instead of being mad, they respect and appreciate you, and probably become loyal fans.

[paulie888]

It is true that if you drastically underprice the product at $27 or less, you may get a lot of whiners and complainers that would not exist had you sold the very same thing for $100 or more (assuming that your product is worth the price). It's funny how the mentality of people changes with the price point. I've found that when you have more 'skin' in the game from paying a higher price, you tend to shut up and actually implement something, instead of just complaining or doing nothing.

[scrofford]

Originally Posted by TheProdigy

I've seen 30 page ebooks selling for 197.

If you can't sell your product at higher than 97, it's time to rethink if you want to do this for a living.

I will say it again...IT DEPENDS ON THE NICHE YOU ARE IN! Make money online isn't the only niche and some niches support a lot lower prices for products. My other niche does as a matter of fact.

You can have multiple streams of income (ie lower paying products in multiple niches or many different products for sale in the same niche.) At the end of the day, if it all adds up to a good income then what's the problem?

I think you should rethink your statement!

[Dylan Jones]

"Don't just focus on the WHAT... focus on the WHO...
de-link the product to the price of the product... "

- Dan Kennedy

YouTube- Broadcast Yourself.

(quote from 2:15 to 3:32)

[Colin Theriot]

I think it's not so much got to do with self esteem. The real focus of the OP's post IMHO should be "Do what you have to do to be able to produce a $97 and a $197 price-point product."

Whether your ideas are super-hott and you're undercharging because of low self-esteem, or you aren't good enough at producing products to make something WORTH that amount is irrelevant.

If you want to be a solo-preneur (I hate that word, but have to say it a lot) then you need to be able to charge a lot per transaction, or else be able to manage a massive amount of sales. If you want to remain solo, that can get hard to manage.

Low self esteem is just one of many things that keep otherwise capable people from making products or delivering services worth those prices in value delivered.

There are many others. But they should all be gotten over, and the person wanting to do as Daniel mentioned, follow in the footsteps of Kern, et. al. - the focus should always be on the high-ticket and backend stuff. Work on that first, and then make smaller products to CREATE more customers for the big thing. But get a big thing ASAP, even if it's a service.

If you have a cheap how-to book, put a $97 one or two hour coaching call offer IN the book. That's all it takes. Try it.

[Ram]

(Discalimer: This applies to informarketing. Not to Wal-Mart, Marks and Sparks, iTunes or other extremely well capitalized, extremely high volume retailers. I'm talking about people working alone or with a small group of employees selling their own information products.)


You might also look at who you are targeting.

Does your marketing funnel snare people without much cash? People who want it done for them and can't pay? People who buy a cheap ebook and scream "fraud" when they don't even read it?

Sell a lot of cheap stuff and you will.

In our main market, the entry level is $997. That's a 178 page ebook - or it was. It's now a "manual" because it is printed out and in a binder.

It goes up from there. Way up.

You can position the entry into your funnel at any point you choose - provided you target the right prospects within a market.

The $7 to $27 to $97 to $197 and so on model is no different from the same model with a zero or two added to the end of every single one of those figures. It's just a matter of targeting the prospects who are used to paying those prices and are willing to do so.

Yes, you can do it in the "make money online" niche. We do.

I won't comment on the self-esteem stuff. Your psyche is your business. But I agree with Daniel on most of his post. All this stuff about a bad economy, customers annoyed by all these high priced products, the market won't pay that high a price, you can find the info free on Google, etc., is just crap. It's self limiting. None of that matters if you target a market with money that wants what you have to offer.

And the product does not have to be exceptional. All it has to do is give the buyer what he wants. Hell, I can take a few PLR ebooks, create a new product and sell it for $497 or more. I've done it more than once. And had happy customers. Because the product gave them the info they needed. Everyone on the this forum might already know the info, but they didn't. And that's worth a lot. Even if some of you are so blind you can't see that.

BTW, you might want to consider that the IM market is NOT limited to those who look at the Warrior Forum, those already on someone else's list and those who don't have a pot to piss in. The market is not limited to those with little money and less sense.

You can catch guppies or whales. Choose where you fish.