Should I promote high priced or cheap products?

23 replies
I have a new niche.

There are products in this niche in all price ranges. From 400-600 to 40-100 (amazon)

My goal is to get traffic through article marketing and seo.

Do you think I should focus on building the website towards the 400-600 products or the 40-100 products, or should I give the option to choose between both?

I guess my design and content will be different depending on what path I choose.

If you work on promoting "classic wedding rings" or "sport watches". Do you choose hi priced and value products with a higher comission but less sales, or products anyone can afford that will give more sales but have less value and comission.
#cheap #high #priced #products #promote
  • Profile picture of the author Lett
    High priced for sure.
    {{ DiscussionBoard.errors[1745459].message }}
  • Profile picture of the author MisterMunch
    My thinking is that I will get a lot less sales if I promote more expencive products. Still if I take the middle road and give options in all price scales I might confuse the readers.
    {{ DiscussionBoard.errors[1745469].message }}
  • Profile picture of the author travlinguy
    Since the effort is just about the same regardless of what you promote, you might as well go with the higher priced stuff.
    {{ DiscussionBoard.errors[1745471].message }}
    • Profile picture of the author JaySabree
      Originally Posted by travlinguy View Post

      Since the effort is just about the same regardless of what you promote, you might as well go with the higher priced stuff.
      Agreed! - If all else is equal - meaning you can drive about the same traffic and conversions are also about the same then why bust your butt and earn 20 commission on ebooks when you could bust you butt and earn $100 +++++ commission on electronics from amazon...
      Signature
      Cheers

      Jay
      {{ DiscussionBoard.errors[1745488].message }}
      • Profile picture of the author lowjo
        Originally Posted by JaySabree View Post

        why bust your butt and earn 20 commission on ebooks when you could bust you butt and earn $100 +++++ commission on electronics from amazon...
        Well, to play devil's advocate, because for the equal effort I might sell 400 products on $20 commission or 10 products at $100.

        I'm a little silly but I'd take the $20 in that case.

        Traffic volume and conversions are the trick - if it doesn't sell I don't get any money regardless of the product cost and commission %.
        {{ DiscussionBoard.errors[1745513].message }}
        • Profile picture of the author MisterMunch
          Originally Posted by lowjo View Post

          Well, to play devil's advocate, because for the equal effort I might sell 400 products on $20 commission or 10 products at $100.

          I'm a little silly but I'd take the $20 in that case.

          Traffic volume and conversions are the trick - if it doesn't sell I don't get any money regardless of the product cost and commission %.
          You are actually no advocate here. This is the base thinking of this whole discussion.

          I could have a "good deal" website or an "exclusive" website. I think testing is the key.

          And remember this is Amazon products and not ebooks. the commision will be arould 6-8%
          {{ DiscussionBoard.errors[1745533].message }}
          • Profile picture of the author Sissy76
            Why not have two sites? One high-end and the other low-end?

            The fastest way to test them out is with paid traffic, then you'll know which market is more likely to convert. Of course conversions depend on you and your sales copy, presentation etc.

            Still, paid traffic, like PPC, is a fast way to get to know your market. Then you can spend the time and effort article marketing and seo require on the most profitable venture for long term success.

            Test, test, test and then test some more!

            Best of luck.

            Sissy
            {{ DiscussionBoard.errors[1745577].message }}
    • Profile picture of the author John Reed
      Originally Posted by travlinguy View Post

      Since the effort is just about the same regardless of what you promote, you might as well go with the higher priced stuff.

      It seems that most of the other readers feel as i do - that you'd achieve at least as great an ROI going for High Ticket items, so whilst it's more or less the same amount of work then do just this!

      However, if that doesn't match your own "Branding", and you'd need to develop a new persona to match, then you'd probably find it easier to go for a product range that already fits your own image.
      John
      Signature

      Ex Army Major hates Hype!!
      http://www.major-reviews.com

      {{ DiscussionBoard.errors[1745540].message }}
      • Profile picture of the author MisterMunch
        Originally Posted by John Reed View Post

        It seems that most of the other readers feel as i do - that you'd achieve at least as great an ROI going for High Ticket items, so whilst it's more or less the same amount of work then do just this!

        However, if that doesn't match your own "Branding", and you'd need to develop a new persona to match, then you'd probably find it easier to go for a product range that already fits your own image.
        John
        The domain is not even picked out yet, so this post is actually to help me to pick out a brand to establish.

        The persona is no problem. I already have 28 different personallities to choose from. I am a marketer.
        {{ DiscussionBoard.errors[1745546].message }}
  • Profile picture of the author lowjo
    Not so helpful 2 cents..

    Whatever generates the greatest return for your investment (time and/or money).

    Comes down to how much traffic you can drive and how many convert. I'd test both out and see because really that's the only way to know for sure.

    Can just make a call and pick the higher ticket one and roll with it. It is funny but sometimes it is easier to sell a $600 product than a $7 one.

    Alternatively if they are closely related use the low end as a down sell (or backend) on the high ticket and use the high end as an upsell (or backend) on the low ticket.

    If your sales funnel is set up to give you that option.

    Cheers,

    Jonathan
    {{ DiscussionBoard.errors[1745486].message }}
  • Profile picture of the author MisterMunch
    Testing is a very good tip. I might write articles that are more general and build traffic promoting the hi priced version (since many have recommended that), and then just switch to a new website that helps the low price market. See what fits and adjust after that.
    {{ DiscussionBoard.errors[1745492].message }}
  • Profile picture of the author MisterMunch
    This is a set of physical product keywords sold from amazon (and others).

    The product is the same, but you will always have more exclusive material, brand or design (like the wedding ring and watch example). I think the product in itself is for the people who do not struggle with money
    {{ DiscussionBoard.errors[1745497].message }}
  • Profile picture of the author Odhinn
    I have separate niches where I do both. The advantages of the higher priced products are, obviously the higher return, but it's so inconsistent that I like to have those cheap products out there making me lots of sales. That way I can still make enough to pay the bills, while getting a nice bonus now and again out of the largest items.
    Signature

    Check out my WSO:

    100 Backlinks a Day

    {{ DiscussionBoard.errors[1745647].message }}
    • Profile picture of the author NicheHunter
      Promoting by price is not the best way to target a website. You can promote them all the the same website with no problems.

      Each page will need its own keywords <2% to 4%> and content anyways, so target by page instead. Just start pumping out articles for the products that excite you the most, regardless of how much money you make on it. Make sure your keywords are in your meta tags as well as your content. You should also have LSI keywords <2% to 4%> as well included in your content.

      Another thing you need to look at is how many marketers are marketing the same product. If there are 10 thousand websites out there marketing a high priced product, its going to take quite some time to get high enough in the search engines to make consistant sales. Same goes for lower priced products.

      Gary
      {{ DiscussionBoard.errors[1745683].message }}
  • Profile picture of the author Emily Meeks
    It's always easy to think that cheaper items will sell better, simply because more people can afford them and probably won't lose much sleep over them.

    Keep in mind though, that higher priced items often have a higher perceived value, so people are more likely to buy. So, on the scale of affordability vs perceived value, perceived value is more likely to win.

    Would you rather pay $40 for a couple gold nuggets, or $400 for something that blows your mind and changes your life?
    Signature

    In all that you do, know your True INTENT...

    {{ DiscussionBoard.errors[1745823].message }}
  • Profile picture of the author duncanb
    Both , of course , and even throw in a middle priced one for comfort
    {{ DiscussionBoard.errors[1745833].message }}
    • Profile picture of the author Silas Hart
      Most of all of my sales experience and knowledge stems from previous experience I have had in offline sales, online digital sales, and online physical sales. My feelings is that I can easily sell 200 items at $20 than I can sell 50 items at $80. Aside from the general knowledge that the majority of people will be more inclined to make a purchase at $20 before they make of $80. I've made thousands and thousands of dollars in profit selling things that could probably be purchased at Dollar Stores, and not nearly as much selling large items like widescreen flat panel tv's.

      Often, I can rely on the money flow of a cheaper product. It may take me a week to sell something at $200 with a decent profit (even if I'm undercutting a market), but I can sell many items at $20 even if the profit is low, I can rely on it and I know money is coming in. If I have a $200 product on eBay, and a $20 product on eBay.

      Most items in the world, at least the stuff I sell, are depreciating in value, not increasing. I'm not a rare art dealer, or rare exotic car dealer or something. Because of this continual drain of money, I need a continuing source of income, and I feel that this is found best through low priced items that people can afford.

      In an online sense, I can put up a website selling high priced watches, but I may only sell one or two a month with the continual drain of money due to hosting fees, seo fees, storage, forms of advertising, etc, a high profit item may quickly become a low profit item.

      High Priced items often have to be marketed well, which is not only an investment of money for most things, but also of time. You have to make potential customers feel there is value to an item, you must convince them that they want or need, or even want AND need it. With low priced items, its much more simple. You can say "This is a good item, and its inexpensive, maybe not even the best quality, but you can afford it." and thats pretty much it.

      For example, I have three different classifications of Bedding/Comforter sets. I have my:

      - Inexpensive - Low Quality - Low Profit - Quick Selling

      - Affordable - Decent Quality - Decent Profit - Average Selling

      - Expensive - High Quality - High Profit - Slow Selling

      Which actually makes me the most money? The el cheapo stuff does.
      {{ DiscussionBoard.errors[1746343].message }}
      • Profile picture of the author Obelisk
        Depends on what your market will bear...

        Dig in deep and find out what is selling before you start slinging bits around.

        I made this mistake early on, I would just go with the highest commission with no regard for the market. Turned out they weren't interested in, or willling to pay for the high ticket item.

        On the flip side, I have been in markets where lower ticket items are scoffed at and these people gladly fork over the scratch.

        Is this an Affluent crowd you are marketing to or the price conscious Wal-Mart folks lookin/expectin' a deal?

        These sort of disctinctions will make your sales come easier...

        Just my .02 cents...
        {{ DiscussionBoard.errors[1746376].message }}
        • Profile picture of the author Barry Unruh
          My 2 Cents are not worth much, but your example makes me wonder...

          If I'm shopping for a $20 Watch I go to Walmart. If I want a Rolex, I'm going to start looking for the best buy I can get, and will be looking online.
          Signature
          Brain Drained...Signature Coming Soon!
          {{ DiscussionBoard.errors[1746448].message }}
  • Profile picture of the author Nickolie0990
    Well, I have always heard that it is just as easy to sell high priced stuff, as it is to sell cheap stuff. So with that being said, I say sell both. Just make sure that it is offering value to the person buying it.
    {{ DiscussionBoard.errors[1746500].message }}
    • Profile picture of the author Obelisk
      Check out Dan Kennedys "No B.S. Marketing to the Affluent" This will clear some things up for you..

      Stripped down version...Sell to people with money who aren't necessarily as concerned with "gettin' a deal" as they are satisfying a need or filling a void.

      Are they looking for that Rolex at a bargain because they NEEDed a watch and thought "hey, I'm gonna treat myself to a Rolex, but will try to do it on the cheap if possible..."

      or is their mindset, "I think I WANT a Rolex. Because how sweet will it be when I show up to the Country Club this weekend with this thing hanging off my wrist. My buddies are gonna drool over this new Rolex of mine...man they are gonna be soooo jealous!"

      yadda yadda yadda, I think you get the idea.

      The people with disposable income for WANTS, not NEEDS are prime customers/clients.

      No matter how the economy does, there will always be Highly Affluent folks with money to burn...

      Sell them the experience not the product...sizzle not the steak, blah blah blah...

      Whoa, what a rant, but hopefully it will get yer noggin' movin'

      Take Care,

      Chris
      {{ DiscussionBoard.errors[1746543].message }}
  • Profile picture of the author Shaun Lee
    Testing will tell you everything.

    It's hard to decide since every market is different from one another.

    Here's an example.

    Give a golfer a choice between a $50 club and a $100 club. If he had $100, he'll most probably get the $100 club.
    {{ DiscussionBoard.errors[1746515].message }}
  • Profile picture of the author sloanjim
    why one or the other? Do both.
    Signature

    15 Minute Forex Bar Trading System Free at
    http://www.fxscalpingmethod.com

    {{ DiscussionBoard.errors[1746766].message }}

Trending Topics