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

[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

[MichaelHiles]

Silly me.

Here I thought product pricing came down to whatever someone's particular market is and what it will bear.

The reason Frank Kern sells a $2000 product is because his market will bear it, and has proven so.

The value that he provides for $2000 exceeds the price he's charging.

It's not just as simple as "Hey you low self-esteem idiot... raise your price."

[Michael Nguyen]

I like your post! My problem is improving my sales copy to justify charging that amount. Saying that I do believe that I have the ability and product to teach the real fundamentals of niche marketing but when your market is the wso section, you're kinda pushing it.

[Daniel E Taylor]

Originally Posted by MichaelHiles

Silly me.

Here I thought product pricing came down to whatever someone's particular market is and what it will bear.

The reason Frank Kern sells a $2000 product is because his market will bear it, and has proven so.

The value that he provides for $2000 exceeds the price he's charging.

It's not just as simple as "Hey you low self-esteem idiot... raise your price."

Who called anyone an idiot? And I said there are
exceptions.

But most markets will allow a $97 product. If not then it's probably
not that good of a market in the first place in my opinion.

[Chris Kent]

I disagree. You need more trust to sell higher ticket products. And it's not about self-esteem (thought it might be for some).

For me personally it's about perceived value. I need make a product offering that much before I attempt to price it at that point.

I never forget with digital products that people expect a hell of a lot more for $100 (especially in the non-IM niche) than for something they can hold in their hand.

[radhika]

Dnaiel, I is not a matter of selfesteem. All products that sell at $37.00 are crap and those merchants are low selesteemed people - it doesn't like that ...

As a vendor you need to be flexible on price tags and look around the market how other sellers are doing.

If on a christmas season, if you sell same price, people look for an alternative.

If the $200.00 phone is only $180.00 at Walmart, won't you go there and buy it? Low prices are a strategy that vendors play.

Why Allen didn't increase the price of WSO section from $20.00 to $40 or $50? It is matter of making available to all sections.

I am not saying sell cheap. But all cheap things are not from low selfesteemed sellers.

Big GUrus are full of hype. I bought products that worth $600.00 too. They are noway better than $20.00 ebook I bought. WHAT THEY DO is setting up a fully hyped up sales pages.

Just my thoughts ...

.

[MichaelHiles]

Originally Posted by Daniel E Taylor

Who called anyone an idiot? And I said there are
exceptions.

But most markets will allow a $97 product. If not then it's probably
not that good of a market in the first place in my opinion.

I was being dramatic for effect. It worked.

I don't know that most markets allow a $97 product or not.

That's why we test. Arbitrarily establishing a price based on one's on needs (I don't want to have to work as hard to sell more of the same item to make the same money) is an instant formula for success. In fact, it could be a disaster and destroy someone's business.

The key is to test test test test test test.... and then when you're done test test test test test some more.

[Imran Naseem]

I disagree.

It is not about self esteem.

It is about branding yourself and responding to the market.

We are in a deep recession right now - people are sick and tired of spending money on high priced information products etc therefore, sometimes it is best to give them value for money and build a relationship with your customer.

High priced products also come with a risk - the refund rate is high and there are tons of high priced products in this day and age. The market is saturated, there are too many "junk" high priced products that are being "shoved" down the throats of newbies.

Just my 2 cents.

[Daniel E Taylor]

Originally Posted by MichaelHiles

I was being dramatic for effect. It worked.

I don't know that most markets allow a $97 product or not.

That's why we test. Arbitrarily establishing a price based on one's on needs (I don't want to have to work as hard to sell more of the same item to make the same money) is an instant formula for success. In fact, it could be a disaster and destroy someone's business.

The key is to test test test test test test.... and then when you're done test test test test test some more.

Well in order to test you need to sell a $97 product
in the first place don't you?

Many marketers are scared to test a $97 product because
they don't feel they are worth it.

Destroying someone's business? Explain to me how creating a $97
can destroy someone's business? Either people buy it or they don't.

It sounds more like you agree, but really trying hard to disagree.

Daniel

[Daniel E Taylor]

Originally Posted by Imran Naseem

I disagree.

It is not about self esteem.

It is about branding yourself and responding to the market.

We are in a deep recession right now - people are sick and tired of spending money on high priced information products etc therefore, sometimes it is best to give them value for money and build a relationship with your customer.

High priced products also come with a risk - the refund rate is high and there are tons of high priced products in this day and age. The market is saturated, there are too many "junk" high priced products that are being "shoved" down the throats of newbies.

Just my 2 cents.

This post is false 100%. What are you talking about.

Tests have shown that lower ticket items have a higher refund rate.

Your whole post is just opinions you made up in your head.

Daniel

[Imran Naseem]

Originally Posted by Daniel E Taylor

This post is false 100%. What are you talking about.

Tests have shown that lower ticket items have a higher refund rate.

Your whole post is just opinions you made up in your head.

Daniel

Daniel

Have you ever launched a high priced product?

Have you actually tested the market in selling a high end product?

I disagree with you there.

I sold 300 units of a low priced product recently with a 1% refund rate. Care to explain how that was possible?

Please Daniel get your facts and your sources right before you jump to conclusions.

[Ron Douglas]

Originally Posted by michael_nguyen

I like your post! My problem is improving my sales copy to justify charging that amount. Saying that I do believe that I have the ability and product to teach the real fundamentals of niche marketing but when your market is the wso section, you're kinda pushing it.

Improve your offer, not your sales copy. If your offer doesn't have that kind of value, improving your sales copy would just be deceiving people. Sell something worth that amount to a market willing to pay for it.

[Daniel E Taylor]

Originally Posted by Imran Naseem

Daniel

Have you ever launched a high priced product?

Have you actually tested the market in selling a high end product?

I disagree with you there.

I sold 300 units of a low priced product recently with a 1% refund rate. Care to explain how that was possible?

Please Daniel get your facts and your sources right before you jump to conclusions.

Of course. I wouldn't be making this post if I haven't.

I've sold OUT of $2000 packages. And I sell multiple $197 courses
$97 courses, and $27 ebooks. And I'm not in the "Internet Marketing Niche" either.



Daniel

[Imran Naseem]

Originally Posted by Daniel E Taylor

Of course. I wouldn't be making this post if I haven't.

I've sold OUT of $2000 packages. And I sell multiple $197 courses
$97 courses, and $27 ebooks. And I'm not in the "Internet Marketing Niche" either.



Daniel

Daniel a high priced product in other niches might be a good idea, but in the Internet Marketing niche it carries an element of risk. Not that I would ever rule out a $197 product but at this stage the market is simply not responding to high priced products.

I was with a meeting the other day with Mo Latif (guy who launched Google Snatch) and he pointed out that "most marketers" launches for high priced products are "failing" so it made me think.

[MichaelHiles]

Originally Posted by Daniel E Taylor

Well in order to test you need to sell a $97 product
in the first place don't you?

Many marketers are scared to test a $97 product because
they don't feel they are worth it.

Destroying someone's business? Explain to me how creating a $97
can destroy someone's business? Either people buy it or they don't.

It sounds more like you agree, but really trying hard to disagree.

Daniel

Agreeing or disagreeing is based on the test, not some flippant decision to just arbitrarily price a product at some level because of the factors you listed in your original post.

You've made the broad assumption that because someone sells a $27 product, it's because of factors based on "self esteem" or whatever. Making marketing decisions based on emotion is a sure-fire way to ruin one's business.

Maybe they tested the product and that's what the market will bear. It's not an emotional issue. It's SHOULD BE an issue rooted in marketing best practices - test test test test test. Then, make decisions based on the numbers.

[Mukul Verma]

Does this apply to WSO? Can I sell for $97

All jokes aside, I think your market has a big play on it.

I got sites that I can charge 3 times the price since my competitors dont use IM and I got markets where I charge $97 and get high refunds and competitors products are a lot cheaper and market in the same/similar manner.

I agree that 5 at $100 is $500, compared to having to sell 5 times more, I use this strategy.

Nothing to do with self a esteem....has to do with business, competition and what the market will bare.

[Daniel E Taylor]

Originally Posted by MichaelHiles

Agreeing or disagreeing is based on the test, not some flippant decision to just arbitrarily price a product at some level because of the factors you listed in your original post.

You've made the broad assumption that because someone sells a $27 product, it's because of factors based on "self esteem" or whatever. Making marketing decisions based on emotion is a sure-fire way to ruin one's business.

Maybe they tested the product and that's what the market will bear. It's not an emotional issue. It's SHOULD BE an issue rooted in marketing best practices - test test test test test. Then, make decisions based on the numbers.

Your taking the post out of context.

I sell $27 products. Maybe you should re-read the post to
get a better understanding of what I'm saying.

Sounds like you read the title are jumped the gun.

Because if you understood my post you wouldn't say these things
because you see they really have no relevance.

You say TEST a $97 product first. In order to test a $97 product
you need the self esteem. That's what this post is about.

But it seems more like your bent on trying to arguing then
actually getting an understanding.

Which is fine. It's a discussion forum.

Daniel

[SuzanneR]

I think this is an interesting argument--and a challenge worth putting to the test. It may prove wrong for some niches...but it's worth testing, imo.

Who wouldn't rather sell a $100+ product?

What it means for many of us though iis changing the current product in some way to make it more valuable. That means change: coming up with new concepts and executing them. Perhaps that's where some feel resistant?

[Jeremy Kelsall]

I agree with Daniel.

If someone will pay $7 then will pay $27

If they will pay $27 they will pay $47 or $97

I see tons of people selling products for $5 and $7 and when I see those price tags, I immediately think rehashed, not useful, and junk which I know isn't always the case...It's just my perception.

You would have to sell $7 and $27 for your whole life just to maintain a "regular" lifestyle. You have to find a way to take it up a notch to actually get anywhere.

Anyone that thinks that people in the Internet Marketing or any other niche isn't willing to spend $50 or $100 bucks on something that will help them, needs to take a look around.

[pheonix44]

In order to charge this much money you need a product that solves a problem that is hard for people to solve. As the old saying goes, "if you want to make alot of money do what others either don't won't or CAN"T".

[JamesPenn]

I agree with Daniel on this - although there are a lot of other relevant points.

The reason a lot of people don't sell high value products is because they don't believe that people will pay that much for their information. I've felt like it before and know of a lot of others that have felt and do feel the same.

The key is to bolt on real and perceived value to your offer.

By real value I mean adding additional bonuses; by perceived value I mean turning your digital product into a physical product. It doesn't technically add additional value, but customers feel they are getting more for their money.

James

[ExRat]

Hi,

I agree - this is a very interesting discussion. And the way that Daniel makes his points always makes the conversation more dynamic.
I'm going to sit this one out, I think -



But -

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

Free phone for a contract - hide the real cost - continuity.

Edit - damn. Getting involved.

Hi Phoenix44,

In order to charge this much money you need a product that solves a problem that is hard for people to solve.

I think it's actually more lucrative to focus on selling stuff that increases their feeling of self-worth - particularly in public, or within 'their group.' It would seem that that's more desirable to most people than solving their problems.

[Imran Naseem]

Anyone who thinks low priced products are "rehashed" is not a smart marketer.

It depends on the market.

Selling a low priced product does not mean junk. If you are a smart marketer, then you can create a group and market of "addicts" who will buy from you time and time again.

(I think it was Allen says who mentioned this once in his reports in the old warrior forum war room)..

You do not have to shove a $27.00 product in their throats every single time just to make a quick buck.

It is all about smart backend marketing - list building, affiliate marketing, and building a relationship.

Marketing at it's best.

Just my 2 cents.

Peace...not going to comment further.

[Alminc]

I think that an ebook can sell for $17.

Ebook with resell rights for $27

Ebook with PLR $37

Ebook + report + videos $47

Ebook + report + videos with resell right $67

Ebook + report + videos with PLR $97

Complete home study course $127 - $197 depending on what's in it.

[JamesPenn]

Originally Posted by Imran Naseem

If you are a smart marketer, then you can create a group and market of "addicts" who will buy from you time and time again.

You can do this - but then you can never escape your business.

You have to keep creating products and keep writing salespages to sell your products.

It's fine if you want to run your business this way - but I'd rather get a customer into a sales funnel and then sell them products that increase in price and value in an automated way and that doesn't require me to constantly create new products to get a new cash injection.

James

[MR.MOE]

I disagree. I think its rather building your list and your customers rather than anything else. Basically when you lower the price you build a relationship with your buyers. They see you have a good product and a good price they will defiantly come back. I think having a high price will build a real short term relationship where having a good fair price will build you a list that responds.

I know a guy that does the same thing. He wayyyy over delivers in his products and the price is horrible I mean its so low I get on him for it all the time. However everytime he has a product out he has al his old customers buying his product without even thinking. Also I think it allows you to slip in a high price once in a while and your cutsomers will still buy.

So I don't think its about sekf worth and if you value yourself. I think its about if you value your customers


Moe

[ExRat]

Hi James,

There's a problem contained within your two posts.

The key is to bolt on real and perceived value to your offer.

By real value I mean adding additional bonuses; by perceived value I mean turning your digital product into a physical product. It doesn't technically add additional value, but customers feel they are getting more for their money.

plus -

I'd rather get a customer into a sales funnel and then sell them products that increase in price and value in an automated way and that doesn't require me to constantly create new products to get a new cash injection.

If you put REAL value (rather than perceived) into the first one (first quote), then its not such a problem. But even if the added stuff has real value, if the person you sell it to really doesn't need it that much, it isn't worth as much to them and they get remorse.

So the problem I am referring to is that most people find it very hard to add that real extra value into a product in order to jack up the price - they simply don't posess that much value, and can't get hold of it. So they end up trying to shove as much crap in there as possible, while convincing themselves that the perceived value is high, purely because there are 146 bonuses.

And then when they try and achieve what's within your second quote (selling again to buyers, but increasing the price each time) the buyer has already moved on to find a new person to sell them another lower priced product, because they felt slightly burnt with the previous purchase.

What often happens is the 'upsell syndrome' where the first product is sold to them as 'the be all and end all', then no sooner have they parted with the cash for this 'answer to ALL of their problems', the marketer returns, acting as if they never created that impression and starts breaking to them that in fact, they actually need product no.2 in order to solve their problem.

At this point, the seller loses the buyer's trust.

[Neil Morgan]

Isn't it all about ROI?

For IM products and services, it should be.

I've happily bought products that cost $2000 because I've been convinced I'm going to make more than that back in the longer term. So what I need as a prospect is a pitch that convinces me of the ROI case. And a higher price demands a stronger pitch.

In the IM niche, people are looking for products that are going to give them a return in one way or another. If you're selling a $7 product and telling prospects they'll make thousands by using it why wouldn't you charge $197 or more?

Your prospects will certainly be asking themselves that question and why you value your product so low.

Is it because it doesn't work?

Or because you can't convince people it will work?

Or because you don't know?

All creating negative perceptions in the minds of prospects.

Or maybe it's a loss leader for you and that's cool - as long as your pitch addresses the above concerns.

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

[pheonix44]

I remember when I was a teenager and I was heavily into mailorder. I would buy every issue of the opportunity magazines and I was on several mailing list to get offers in the mail. These were not cheap offers, the average price was 50-70 bucks and the highest I seen was 200.00.

There were also a bunch of 30.00 offers, these were the offers that would have full page displays. But their goal was to upsell the crap out of you and it worked. The copy was short, but made me believe if I bought it I would be ahead of everyone else.

The most I paid for a product was 197.00$ and I did this twice,I had to be heavily presold first. The point is when I think back to what made me spend this much money, even if it was my LAST was the feeling that I would be a fool not to buy.

Since I have been on the internet I have not seen a product like these since that made me want to spend 200.00$ It was also a rush waiting for the product to come in the mail. When that big brown envelope would arrive, let me tell you, it was almost better the sex.

[Imran Naseem]

Originally Posted by JamesPenn

You can do this - but then you can never escape your business.

You have to keep creating products and keep writing salespages to sell your products.

It's fine if you want to run your business this way - but I'd rather get a customer into a sales funnel and then sell them products that increase in price and value in an automated way and that doesn't require me to constantly create new products to get a new cash injection.

James

Not really. Unless you have your eggs in one basket and stay on the WSO forum 24.7 - relying on the WSO forum to make your income

Also a friend of mine recently launched a high end product for $500 and he was really upset his launch was not a "success".

There was nothing wrong with his product - it was excellent but not many people bought it.

[Daniel E Taylor]

Originally Posted by MR.MOE

I disagree. I think its rather building your list and your customers rather than anything else. Basically when you lower the price you build a relationship with your buyers. They see you have a good product and a good price they will defiantly come back. I think having a high price will build a real short term relationship where having a good fair price will build you a list that responds.

I know a guy that does the same thing. He wayyyy over delivers in his products and the price is horrible I mean its so low I get on him for it all the time. However everytime he has a product out he has al his old customers buying his product without even thinking. Also I think it allows you to slip in a high price once in a while and your cutsomers will still buy.

So I don't think its about sekf worth and if you value yourself. I think its about if you value your customers


Moe

LOL.... Sorry man but come on. You're doing to much thinking.

How in the world can a product that costs $197 be building a relationship
for the short term and a product that cost $27 be building a relationship
for the long term.

Someone who spends $200 with you will probably stick around longer
than someone who spends $27 with you. At least that's what I have found.

Daniel

[JamesPenn]

Originally Posted by Imran Naseem

Not really. Unless you have your eggs in one basket and stay on the WSO forum 24.7 - relying on the WSO forum to make your income

Also a friend of mine recently launched a high end product for $500 and he was really upset his launch was not a "success".

There was nothing wrong with his product - it was excellent but not many people bought it.

That's only one example. You can't base your entire arguement on that.

It doesn't matter that there was nothing wrong with his product. I could have the best product in the world, but if I can't convey that value to my prospects then I won't be able to persuade them to part with their money.

Roger - I was in no way suggesting to under-deliver on front end products. I'm aware that that would instantly burn your relationship with your customer. You should only be selling products if you can deliver more than the value you are charging.

James

[Akky]

The only problem I see when offering yer ebook for a low price to your list is that they will expect future offers from you for $7 or $10 as well. The response to a $10 product will be greater to a $100 product. You get the idea. Same thing applies here. If you sell a product priced at $7 or $5. Some people will see it as rehashed crap.

Low Priced Product => Less Trust
High Priced Product => More Trust

Product Quality and the Market has a great significance for gaining more trust...

You'll get more trust for the high priced product only if you can hit them up with great content instead of the same content which they would get at $20. You have to offer them awesome kinda quality. If that high priced product becomes a HIT, I mean, a BIG hit, you can offer your future high priced / low priced products to them.

Although I am no expert, it's just my opninion.. However, I agree to 95% on what Daniel said.

It's not about self esteem, it's about future customers..

Good Day,
Akky

[nostih]

I guess BIG Mike has low self esteem, with all of valuable, HIGH QUALITY products that he sells at prices($7.77-$30) just about anyone can afford.

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

[TimCastleman]

Originally Posted by Alminc

I think that an ebook can sell for $17.

Ebook with resell rights for $27

Ebook with PLR $37

Ebook + report + videos $47

Ebook + report + videos with resell right $67

Ebook + report + videos with PLR $97

Complete home study course $127 - $197 depending on what's in it.

If you think that then you are correct. Me ... I'd add a zero to most of those figures.

[MR.MOE]

Originally Posted by Daniel E Taylor

LOL.... Sorry man but come on. You're doing to much thinking.

How in the world can a product that costs $197 be building a relationship
for the short term and a product that cost $27 be building a relationship
for the long term.

Someone who spends $200 with you will probably stick around longer
than someone who spends $27 with you. At least that's what I have found.

Daniel

I guess we are dealing with different customers

[desmond11]

I suppose the question that needs to be asked is how many people these days buy a $97 right off the bat without any pre-selling or launch hype. I know I don't.

However, if I bought a $27 product from someone and I made a decent $$ ROI, you bet I'll purchase their $97 product if it promises to offer and deliver more than the original. I was sold when I made my initial investment back.

I think it's a brilliant thread that's motivating and makes the brain cells twirl a bit. I do however, think you need to build up a level of trust before you can go and pitch a $97 product. Especially in the IM niche.

We all do our research and buy based on emotion, feedback, and testimonials. I won't lie. If a product has some decent testimonials from TRUSTED warriors, I wouldn't think twice about buying it. If the product has no feedback, no testimonials, and written by someone I've never heard of. There isn't a chance in hell that I'll part with $97. No matter how good or well crafted the salespage.

Note: Video proof of earnings could sway me a bit. Though, we all know these can be manipulated. The bootcamps are more effective where you can see things in real time and are able to reverse engineer the websites used and techniques at play.

[Fernando Veloso]

Daniel,

Great reminder.

My product was on sale for $27 and only had a couple sales. Then I turned the price to $47 and wrote a new sales, directed to a older audience. Result? Very similar number of sales per month. BUT bigger income.

Oh and people talk about the product as a "that must be good, cause it's expensive".

OH #2 - My Radio Boss used to told me: Fernando, we know this cause we work in here. Outside people don't know and don't care.

Bottom line? What is expensive for us (IMers) is not seen the same way by users.

Just sayin...

[Adam Carn]

I agree with Daniel and have actually tested this over the years. I priced one of my products (in the IM niche) initially for $97. It sold well. I then raised the price to $127 and it sold even better. Then I thought wait a minute if it sells so well at a high price why not try selling it at a lower price. I then reduced the price to $67 as a test and it just didn't sell as well.

So I know for a fact if you have a good product with a good sales copy it can sell for a good price.

Thanks,
Adam

[Imran Naseem]

Either way.

Test test test.



Interesting thread!

[Lance K]

I think Daniel's original point is that many new and even some intermediate marketers don't even try charging more because it's their belief that it won't work.

Now if you've tested it and it won't work that's a different story. And I'd tend to agree with Daniel that if that's the case, it's probably not a worthwhile market.

But if you've never even tested higher prices, you almost certainly have some sort of self limiting belief that's keeping you from doing so.

I don't think he was trying to get into whether someone's ebook is a loss leader or a profit center, etc. Just that if you haven't even tried because of your own belief, it may be time to set your beliefs aside and test a higher price.

And you might as well develop some back end products/services and optimize the price of those while you're at it.

[Erik Ortega]

I loved your point about the people in the ghetto with Iphones and Blackberrys lol!

I'm from the South Bronx and every time I talk to any of my friends from there, they've all got better phones and electronics then me!

[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.

[Jeremy Kelsall]

Originally Posted by Imran Naseem

Selling a low priced product does not mean junk. If you are a smart marketer, then you can create a group and market of "addicts" who will buy from you time and time again.

But, if you can sell the same group time and time again at $27...who comes out on top?

The person having to create 3 products compared to someone elses 1?

Time VS Money Imran...

IF your products are good they will pay $27, $37, or $97 - It doesn't matter...as long as they get value from what your selling.

Even in the WSO forum, We sold 500 copies of a $67 ebook...How many $5 and $7 products does one have to sell to have the same financial gain?

People don't buy a $5 product because they are "raving fans" they buy a $5 product because $5 isn't something that many give a second thought to.

[BIG Mike]

@Daniel - firstly, I do agree with what you're saying overall...I just want to point out a couple of things on the low-cost side (was going to start a thread about this, but will use yours).

Assuming you've got a good quality product to offer, the lower the price, the greater your market reach. For example, we sell products ranging from $4.95 to $29.95 and during our Black Friday sale, pulled in $27K in sales. Since the process was entirely automated, the greater volume to make up the difference was simply not relevant.

At an average of $10.36 per sale, we did well over 2,500 sales. Roughly 40% of them were first time buyers, which puts them in the loop for us in terms of lifetime customer value of slightly over $1K each. That works out to a future value of $900K or so for us.

We've sold $97 and $147 products successfully in the past. No doubt about it, it's sweet, but in our particular case, we see far more profit by working the lower cost products than the higher priced ones.

And I'll say this - selling these low cost products, we do far better than a measly $100K per year and to be perfectly honest, we seem to be working less now than in the past.

That doesn't put us off high-end products...next year we've got one coming out at $247 to $297 that we anticipate selling well and easily enough.

I'm not suggesting everyone wrap their entire business model around low cost items, but they do represent one more revenue stream that is easy to manage, if you're automating everything.

[MichaelHiles]

Originally Posted by Lance K

...test a higher price.

And MY point was that it's all based on the test. Nothing else.

If someone is afraid to test, for whatever reason, then their life expectancy in any business as an entrepreneur is going to be pretty short lived.

[Imran Naseem]

Originally Posted by Jeremy Kelsall

But, if you can sell the same group time and time again at $27...who comes out on top?

The person having to create 3 products compared to someone elses 1?

Time VS Money Imran...

IF your products are good they will pay $27, $37, or $97 - It doesn't matter...as long as they get value from what your selling.

Even in the WSO forum, We sold 500 copies of a $67 ebook...How many $5 and $7 products does one have to sell to have the same financial gain?

People don't buy a $5 product because they are "raving fans" they buy a $5 product because $5 isn't something that many give a second thought to.

Now this is no way my business model but the point I was making is you can create a group of "addicts" and establish a reputation.

And if people are always going to claim low priced products are "rehashed" then I would say 99% of the Information products are rehashed.

Time IS money - true. There is no way I would create a high quality product, and price it low as all the time and effort that goes into creating the product will just diminish.

However, sometimes one has to test the market to see how they would respond.

In the UK where I live there are two stores.

One is Primark and the other is Marks and Spencers.

Marks and Spencers is well known for its high quality "clothes" and "products" but its prices are expensive whereas Primark offers high quality products at low prices.

Guess which one makes the most money?

Primark.

And also a high priced product does not necessarily mean the product is good. I have purchased many high priced products and most of them were the same old crap you can find on the Internet.

Some were good, don't get me wrong but if you constantly rely on one revenue stream and keep your eggs in one basket then you would definitely change your business model.

If the WSO forum died tomorrow what would you do? If your list was taken away from you would it affect your business?

These are the questions one has to ask.

Peace..

[Lance K]

Perceived value is king.

To certain markets (IM, make money, etc.) expected ROI is a big part of perceived value.

In other markets, perceived value depends on other things. To some, the "status" associated with the $400 phone makes it more appealing than paying their bills on time this month. People buy what they want, not what they need. Their wants determine how they perceive value in different items. If you want to know for certain what people want, test constantly and let them vote with their wallets.

[catherine ford]

Originally Posted by michael_nguyen

I like your post! My problem is improving my sales copy to justify charging that amount. Saying that I do believe that I have the ability and product to teach the real fundamentals of niche marketing but when your market is the wso section, you're kinda pushing it.

Why is your market restricted to the WSO's
Catherine

[CDarklock]

Originally Posted by Jeremy Kelsall

Anyone that thinks that people in the Internet Marketing or any other niche isn't willing to spend $50 or $100 bucks on something that will help them, needs to take a look around.

Let me make this really, really clear.

I write almost exclusively for internet marketers. Better than 85% of my clients are other internet marketers.

For the past six months, I've been charging $25 for a 500-word article. (I recently doubled my rates, so it's $50 for the same article today.)

People order five and ten of those at a shot.

You cannot tell me that an internet marketer won't spend $100 or $200 on his business, because I see them do it. Over and over again. And honestly, can't pretty much ANYONE who really tries produce a product that's worth more in the long run than ten articles?

General rule of thumb: price your product at 20% of what people will save or make in their first year using it. If I buy a $200 product, I expect to put or keep $1,000 in my pocket as a result.