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IM Price Deflation Occuring?

by Ehanson
17 replies
I just had a warrior PM me for a service I'm offering and wanted me to do something to the effect of 100 submissions for a couple of bucks. Really? Money is money but I wouldn't spend all that time and effort for one person unless there's two or three figures involved.

Is price deflation hitting the internet economy? I see $1 article packs being sold on various forums and other services and products being offered that makes me wonder if it is worth it for the seller. I understand the sales funnel model and people want the best bang for their buck (especially these days) but some of the stuff I've seen lately is ridiculous.

Than again, maybe I'm selling to the wrong crowd. I heard someone say "if you set low prices you're going to attract bargain hunters."

Thoughts?
#deflation #occuring #price
  • Profile picture of the author Dennis Gaskill
    I would imagine the marketplace is getting more competitive for just about everything right now with the economy as it is, but it sounds like someone doesn't understand, or maybe doesn't care, about the concept of mutual benefit.
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  • Profile picture of the author therealdeal
    Hi Ehanson, I see where you are coming from. Of course there is that whole Marketing Funnel Aspect to things and then there is also what you feel your time is worth.

    One thing I have found from my own experience is I have always got paid what I thought my time was worth. It's really completely up to you.

    Then again, there is a point where you may be providing value to a certain group. Kind of like the warrior forum.

    You can give a special offer (WSO) which you would normally not give to the general public. In some of these online communities it's not all about how much you are making from what you are selling but how much value you are able to provide and help others who may be less fortunate when it comes to their financial situation.

    There have been times that I really felt that the person should of been selling the product for much more but was always greatful they didn't.

    There are still multiple products out there in the MONEY Making Niche that still sell like hotcakes for Thousands of dollars. Even in Todays Economy...

    I hope this helps...

    Have a AWESOME Day on Purpose!

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    Darren Utke Aka "The Real Deal" Mentor
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  • Profile picture of the author Lou Diamond
    Hello,
    I would make sure that you fully explain the value of your services to the person
    that does not want to pay the the full price.
    Lou
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    Something new soon.

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    • Profile picture of the author Ehanson
      Darren, the WSO is an exception. That is a place to offer a good deal with even better value. I'm referring more to places like ebay, elance and the like.

      It could also be different standards of living in various countries, $10 is a lot of money to someone in a developing country.
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    • Profile picture of the author Lee MacRae
      People are always going to try and get a bargain or "something for nothing" no matter what business you are in. If you've checked out your market and feel confident your prices are competitive then stick to your guns. Those $1 offers you see on forums are often people who have picked up product through torrents or black hat methods and didn't put any effort or money into producing what they are selling and it doesn't cost anything to make the offer...anything they get is a profit. And don't forget that in folks in certain countries sell services and work for wages that folks in some big North America cities couldn't live on. You need to know your competition.
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  • Profile picture of the author freudianslip27
    If you look at the history of internet marketing services, you can see that it seems like when a service is new and few people are doing it, they can charge a premium, but as more and more start offering it, the price drops.

    Then you throw in people in low income areas performing the service, and things really sink. Look at how much things changed when automated software hit the scene, making it possible to throw out tons of links or bookmarks automatically.

    Matt
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    • Profile picture of the author Ehanson
      That is a good point, diminishing returns comes into play as a market gets saturated, that's one reason I moved away from the IM niche.

      Better to offer services and products which can't be easily replicated for pennies on the dollar. Markets with higher barriers to entry are more profitable? I'm finding that to be true so far.
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      • Profile picture of the author TimCastleman
        If you're selling on price you're screwed. Look the warrior forum is a race to the bottom of the price scale. I saw a guy telling a WSO seller that he was asking to much for his WSO. That doesn't happen in real life. You don't walk into a store and say "this scarf should only be X dollars."

        Also people expect more for less here. They want a complete business in a box for $7.

        Look at services here - you can get a sales letter written for you for $97. Are you kidding me?

        I really would like to see a min price set for all WSO's but that isn't going to happen.

        So what to do? Stop selling on price. Set your price and stick with it. Add value don't lower price.

        Lets the bottom feeders fight for the scraps.

        Just my opinion.

        Tim
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  • Profile picture of the author DogScout
    I usually send off a bit more than they ask. Especially if the item makes me lots of money. I believe in spreading around a little extra to those that help you get where you got.
    I like it when a vendor is glad I contact them, not think to themselves, 'Oh God, him again.'

    Lol.
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    • Profile picture of the author Ehanson
      Tim, that's my opinion also.

      Offline businesses don't race to the bottom with customers (most of them anyway), why is this stuff acceptable online? There's a difference between offering value and being taken for a ride. Transactions should be win win situation.

      If people are asking you to lower the price they probably should be saving their money instead of spending it online.
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  • Profile picture of the author Taylor French
    I've seen a lot of people lowering prices like crazy. A few well known warriors have been hammering their lists with lowball offers that are so crazy it's almost like the prices newbies would be offering. A could of them have been sending me a message every 2-3 days with some new offer that's crazy cheap. And some of these are for services, too. These are people you wouldn't expect to be so desperate.
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  • Profile picture of the author DonDavis
    It's tough all over and probably going to get worse before it gets any better. Look at the fast food industry for example. They all have low priced meal deals now. Steak Shake for four bucks? I suppose the IM crowd is no different.

    Everybody is fighting for the diminished dollars that are being spent. I am not very active in promoting IM products so I can't really say if it is down or not. I suspect it is though. Most of the other markets I am in are down significantly however. My solution has been to introduce new products to balance out the loss in sales volume on existing products.
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    • Profile picture of the author Eric Lorence
      $1 article packs are usually either garbage, stolen, or years old and saturating the search results ...

      As far as the "something for nothing" types - ignore them.

      Don't even try to negotiate - your time should be more then it's worth "dealing" with people like these.
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      • Profile picture of the author Groovy99
        Originally Posted by Eric Lorence View Post

        $1 article packs are usually either garbage, stolen, or years old and saturating the search results ...

        As far as the "something for nothing" types - ignore them.

        Don't even try to negotiate - your time should be more then it's worth "dealing" with people like these.

        I've had hundreds of articles ghost written and the one lesson I've learned in that is that if the writer does not share the same cultural knowledge an language then you are wasting your time. Your never going to find that at a buck an article. For the US market that type of writer is hard to find. You pay then what they want. Its usually around $10 or more.

        The only time I have been burned on article ghost writers was when I decided to test a few out at a ridiculously low article price through GAF. The articles were horrible, clearly spun..poorly. And then the writer tried to rip me off.

        Copy writing is one of the most important skills in my opinion of an internet marketing specialist.
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    • Profile picture of the author Barry Unruh
      The real question needs to be reversed.

      Are you increasing value in your IM business?

      Price deflation is caused by lower value to end users due to many factors. Whether it is competition, or possibly a piece of software being able to do the job.

      I'm not sure what all you offer in your article submission service, but if you are providing the service at a higher quality, getting a higher acceptance rate, and giving worthwhile advice back to your clients, you can probably maintain a price much higher than other people.

      It comes back to what is their return on investment. They will pay more, if they feel it will give them higher profits.

      A great example is one of the premier writers here on the Warrior Forum, CDarkLock. There is no way anyone is going to hire him for anywhere near the price of a writer in the Philippines, or most other writers advertising here on the forums. Simply because he produces exceptional content, which gives his clients high value, and high returns on investment. He's worth his price. You can see the quality of his skill just by reading his posts on the forum.

      Seek a way to increase your value to your clients, and you'll leave the cheaper competitors in the dust.
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  • Profile picture of the author Victor Edson
    Maybe they've seen your offer for a lot less. Often times outsourcers will do work for dirt cheap. But a lot of times their quality is just as cheap as their price, but the person buying isn't crying, because it was so cheap!

    There have always been bargain hunters and there always will be. The Internet Marketing crowd has grown a lot in the last few years due to loss of employment by lots of people.

    So I wouldn't say that the market is suffering at all, instead I'd say it's thriving. But just like any where else in the world, if there are people, there are idiots!
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  • Profile picture of the author sandra.IMqueen
    I think you must be exagerating things here. The guy must be completely lost or someone who just wants to play a prank with you. If you look closely, website designers still make loads of money, no matter how many more designers have come in the market. But I liked your last bit and it is true... there is always a market for quality.
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