![]() | | ||||||||
| |||||||
![]() |
| | LinkBack | Thread Tools |
| | #1 |
| Content & Copywriting Wiz War Room Member Join Date: Dec 2006 Location: Roselle, NJ, USA
Posts: 16,394
Blog Entries: 11 Thanks: 1,531
Thanked 6,192 Times in 2,288 Posts
|
Okay, this is more of a question than it is an informative post, though for some of you, I am sure that in my questions, you'll learn a lot. I am right now wrestling with my next product, which is going to be my creme de le creme. I am hoping for a March 2009 launch date. Here is my dilemma. I am torn between high end, low end, digital and physical. I know there are pros and cons to each. I have discussed these with several people already, including Dean Shainin who has been a terrific help to me. Okay, here is what I pretty much either knew or discovered through my research as far as making sales, getting affiliates, etc. Low End - When I say low end, I'm talking about up to $97. With a low end product, from what I understand, the big names won't touch it. They're not going to promote anything under $297 or above. So if you go this route, you're pretty much limiting yourself to the intermediate affiliates, which doesn't have to be a bad thing. There are plenty of them out there. If you think not, take a look at the gravities of the top Clickbank products. Also, with low end, you're going to probably sell more units because more people will be able to afford it. Some people just can't crank out $297 and above for a product. Conversely, you'll need to make more sales in order to make the kind of money that you'd made from fewer sales of a high end product. High End - You're not going to get a lot of affiliates because many won't feel comfortable promoting a high end product. I know that there was a time when I wouldn't promote a high end product. So I know the feeling. Also, with high end, you're not going to make as many sales. Some people just can't afford the product. On the flip side, with a high end product, if you go through the pre-launch process correctly, you WILL get a lot of big names, some of them with lists that are massive. Let me stop here, because this is where your own values have to come into play. I personally have always wanted to help as many people as I could. That is what it has ALWAYS been about for me and NOT the money, which is why I don't make more than I do. But after beating my brains out against a brick wall for over 5 years, I'd like, just once, to make things a little easier for myself. Now, having said that, I can certainly do that selling a lower end product and getting an army of affiliates. But then I can't really create the product I want to create. What I want to make...a product that I know is going to be the ultimate guide for those struggling to make money online...can't be made and sold for $97. It just can't. When you see the work that's going to go into it, you'll understand. It's going to blow even MSA away, which really should have sold for a lot more than it did. But oh well, what's done is done. Bottom line: I am totally torn as to where to go with this. And until I can come to grips with it, I can't do anything. So this is where your feedback will help. Would you rather have a product that maybe wasn't quite as extensive but of excellent quality for less, or do you want something that is really going to take your business to the next level? Okay, next issue. Physical Vs Digital - I understand that there is more perceived value with a physical product. I have also heard about packaging and delivery nightmare stories and quite honestly, that is not something I want to deal with. But...all the high end products that are out there. Aren't they ALL in physical form? See, I don't know because I don't own any of them. So, I need some feedback on what products are or were high end and whether they were digital, physical or both. Personally, I want to stay away from physical unless it is absolutely required for a high end product. ** EDIT ** One more thing I forgot to add to this. Duh! Clickbank Vs The Rest Of The World - It is no secret that there are plenty of Clickbank products being sold with massive gravities. And yet, you hear so many stories from people who refuse to sell Clickbank products because of the recent problems and lack of sales. This is a real dilemma for me. Do I ignore the potential of a big launch getting the product up to the top spot, and thus losing a lot of long term income, or do I go with Clickbank and risk losing a lot of affiliates? Do I do both? Can you do both? Naturally, I'd need two sales pages as Clickbank has it's own TOS that might conflict with me choosing two affiliate options. I appreciate any feedback that anybody can give me on this. Let me conclude by saying this. I know that regardless of what I decide and how I go about the pre-launch process (I'm studying product launches now) if the product I come out with isn't solid, it's game over. The refunds will be huge and the players I get to promote it will NEVER touch my products again. Why am I saying this? Well, here is why and I hope this is the one bit of advice that some people who are working their way up to creating their own product get out of it. There is a lot of talk about just "getting your product out" and not worrying about it being perfect. Okay, not being perfect is one thing. But it still has to be solid. You can't sell crap and get away with it for long. I truly believe this. Now, not having bought a lot of products in my day, especially from a lot of the big names, I can't say if these people are consistently putting out good stuff or junk. But I have purchased a few things from big names and they were all excellent. Mike Filsaime's Butterfly Marketing Nitro Marketing Blueprint Perry Marshall's Adwords book All these were truly professional quality and worth every penny. So please, if you're going to create a product, take pride in it. If for no other reason, do it because you don't want your business to self destruct before your eyes. Anyway, if some of the bright minds here can give me some feedback on the above issues (low end, high end, digital, physical) I would greatly appreciate it. Thanks for your assistance. |
| | |
| | |
| | #2 | |
| Advanced Warrior War Room Member Join Date: Oct 2006
Posts: 732
Thanks: 168
Thanked 617 Times in 234 Posts
| Quote:
First, you are NOT lazy as you claim to be, in fact, you work and have told us that you worked very hard to get where you are. Why do you want to stay away from physical products with all the outside sources available to help you fulfill? Why can't you have them ALL? There are scores of business models that do offer low to high, real and digital products, what is REALLY preventing YOU from holding back? I see it is your mindset. From wanting to be the common or everyday man's guru to not wanting to spend on high ticket items, even though you say the ones you did spring for were well worth it. You are incongruent. If you are serious, you want to make a committment to your BUSINESS and not to a product. What is the business you want to be in for the next 10 years? How is it defined? What do you do? The BUSINESS will help you choose the products you develop. IF you have something on par with the Internet Marketing Center (Derek Gehl) that can be updated, then you should develop it, and again, there are plenty of sources to help you fulfill the product. You resist going "BIG" time, like the gurus, for some reason. You claim you want to help people, but is with holding what you know, is giving them a taste or a partial really being helpful? Develop YOUR best product, whatever it is, make it as comprehensive as you can, give all you got, which is what you really want to do. Then DO that. Make the best Steven Wagenheim product you possibly can. You still need to work, IMO, on your mind set. Give all of Steven, or stay at home (as the saying goes). gjabiz | |
| | |
| | #3 | |
| Content & Copywriting Wiz War Room Member Join Date: Dec 2006 Location: Roselle, NJ, USA
Posts: 16,394
Blog Entries: 11 Thanks: 1,531
Thanked 6,192 Times in 2,288 Posts
| Quote:
Thank you, but my mindset is fine. I want to give myself the best chance of succeeding with this IF I'm going to put in the work involved. So if I will have a better chance with low end than high end or whatever, then that is where I want to go. I'm sorry if this sounds mercenary, but I'm finally thinking about myself for a change. I don't want to put in 6 months of work into this project and have it be for pennies. That is why I am asking these questions. What is going to give ME the best possible return AND help the most people at the same time, because I'm not just going to create any old crap. Again, there is nothing wrong with my mindset. I am simply trying to think strategically and would appreciate a little assistance. | |
| | ||
| | |
| | #4 |
| HyperActive Warrior War Room Member Join Date: Dec 2005 Location: The Great White North
Posts: 200
Thanks: 8
Thanked 30 Times in 26 Posts
|
I believe a large part of the reason for using a physical product [beyond the perceived] value is that they are harder to "steal" than a digital one. I have been quite surprised to see some digital products floating around in forums not long after they launched.
|
|
Try home beer brewing for some real fun! Buy PLR Articles | |
| | |
| | #5 |
| aka KRAZY KEN War Room Member Join Date: Jul 2006
Posts: 627
Thanks: 130
Thanked 577 Times in 101 Posts
|
Steven, Physical products have much higher perceived value and typically much lower refund rates. Knowing your dedication whatever you chose to create would be the bomb in terms of quality. If you're going to put in all that work this is the way to go in my experience. (And yes, super easy to have made, get fulifilled, etc.) That said, one mistake you might be making is looking at this product in a contextual vacuum. A product does not exist in isolation. The way to do this right is to make the product part of a funnel that moves the customer from a lower entry price up to your highest priced stuff. This is proven and the most successful marketers do it in some fashion. The idea is if you take out the lower priced products that can be obtained more easily (e.g. digital products) you are taking revenue away from yourself since the greatest majority will buy those. However a certain percentage of your most loyal customers will want to keep buying everything all the way on up to your highest stuff. So it seems to me what there is to do is create a coherent funnel that moves people through from low to high - using upsells that are effective yet non-abrasive. Make your big product the bomb and charge accordingly. If your funnel is effective and your stuff is good (which it obviously is) then people will gladly pay for it. Moral of the story: your inquiry should be as much (or more so) about the funnel in which this product resides as it is about the product itself. Hope this helps, Ken |
|
Coming soon for all you IM junkies... The Internet Daily Show A Secret to Success: Making serious money online or offline is not complex unto itself - we're the ones who complicate it. Simply sell them what they are already buying. | |
| | |
| | #6 |
| Getting into Video! War Room Member Join Date: Mar 2005 Location: Florida
Posts: 349
Thanks: 68
Thanked 48 Times in 31 Posts
|
I think the trend this year for high-end products is going more digital. Here are a few high-end digital products... Frank Kern's Mass Control Formula - $1997 Jeff Walker's Products Launch Formula - $1997 Yaro Starak's Blog MasterMind - $497 These are all digital to the best of my knowledge. Someone can correct me if I'm wrong. Of course they have army's marketing for them. John |
| | |
| | |
| | #7 | |
| Content & Copywriting Wiz War Room Member Join Date: Dec 2006 Location: Roselle, NJ, USA
Posts: 16,394
Blog Entries: 11 Thanks: 1,531
Thanked 6,192 Times in 2,288 Posts
| Quote:
Ken, as far as that goes, I have plenty of low end lead ins for this already, so that's not the problem. But this product is going to be a major launch in itself. Those already on my list, some of whom already have my lower end products, will probably be most likely to get this. However, I don't want to leave out those who I will be building a list from based off this launch (using PLF methods) thus meaning I'm not going to start these people off with my low end products. It defeats the purpose of the launch. Get where I'm coming from? I mean it would be like John Reese, when he launched TS2, first trying to sell these people a $27 report. What's the point? At least that's the way I see it. | |
| | ||
| | |
| | #8 | |
| Advanced Warrior War Room Member Join Date: Oct 2006
Posts: 732
Thanks: 168
Thanked 617 Times in 234 Posts
| Quote:
Here's my definition of a HOME run, see if it fits. A HOME run is a product that will produce 100,000 of income in a month. Is that what you are swinging for? If not, then what is your definition of succeeding? If it approaches that, then you want to go with HIGHER ticket items and focus on the people who will commit to receiving your help. And most higher ticket items, as you already pointed out, have a physical element to them. UNLESS, you have the pockets to do a full page ad in a newspaper, then you may have a chance of hitting a HOME run with low ticket items. So, it doesn't matter what we tell you. We don't know what you mean by "best chance of succeeding", do we? gjabiz | |
| | |
| | #9 | |
| Content & Copywriting Wiz War Room Member Join Date: Dec 2006 Location: Roselle, NJ, USA
Posts: 16,394
Blog Entries: 11 Thanks: 1,531
Thanked 6,192 Times in 2,288 Posts
| Quote:
I'll be "content" with 6 figures for the launch, or essentially my year's income. If I can do that, it will make the rest of the year a whole lot easier on my nerves. I'll be able to work less and maybe even make even more money because I'm not so stressed and able to think more clearly, Plus, I'll have some extra funds to invest. | |
| | ||
| | |
| | #10 |
| Senior Warrior Member War Room Member Join Date: Jun 2003 Location: USA
Posts: 2,442
Blog Entries: 1 Thanks: 7
Thanked 97 Times in 75 Posts
|
Steve you can accomplish all of the above and "have your cake and eat it too".... The most effective way to accomplish this is with a killer sales funnel with your front end lead product, oto and backend offer. If you set this up correctly your aff would be stumbling all over themselves to promote this for you. Frank Bruno |
| | |
| | |
| | #11 | |
| aka KRAZY KEN War Room Member Join Date: Jul 2006
Posts: 627
Thanks: 130
Thanked 577 Times in 101 Posts
| Quote:
In that case it seems to me this product could serve both purposes: - Ability to be launched using PLF techniques - Ability to live within a funnel If your main objective is creating a bomb-diggity product that will be successful as a launch, several things come to mind. 1) Price creates positioning You want to help the most people and that's great. But at the end of the day a huge part of how much perceived value your product has will be determined by the price you charge. As an example, a physical course selling for $1000 or $2000 (possibly with a payment plan) may sell less in number than a course for $500...but the higher profit margin will probably put you ahead in the end AND make sure you get the most dedicated customers. 2) Physical vs. Digital At the end of the day there is almost no comparison to the benefits of physical over digital. Lower refund rates, higher stick rate, higher perceived value, more loyal customers....I could go on and on. If you want to have this be your best product with the most impact and residual effect on your business, go physical. 3) Course vs. Continuity This is important. If you take a look at the most recent product launches they are not as much content-driven as they are community/continuity-driven. This is partly due to the evolution of the marketers who are offering these programs - most of their early launches were much more about the content or methodology itself. As they have evolved and established credibility, the nature of their products has shifted more toward coaching and high-end continuity programs. My point is not to overlook the idea that your launch could bring you ongoing monthly income if the product is structured as such. Ken | |
|
Coming soon for all you IM junkies... The Internet Daily Show A Secret to Success: Making serious money online or offline is not complex unto itself - we're the ones who complicate it. Simply sell them what they are already buying. | ||
| | |
| | #12 | |
| Content & Copywriting Wiz War Room Member Join Date: Dec 2006 Location: Roselle, NJ, USA
Posts: 16,394
Blog Entries: 11 Thanks: 1,531
Thanked 6,192 Times in 2,288 Posts
| Quote:
links to go the lead in product instead of the main launch product? Doesn't that run the risk of losing sales on the upsell? The reason I am asking is because a lot of people are ONLY going to promote the offer if it's for the high end product and IF it is the main product in the pitch. If it's buried somewhere in the upsell, they may be reluctant to promote it. Or is my thinking all screwy? Let me put it this way, when I promoted Nitro Marketing Blueprint, THAT is what I promoted and NOT their other little side products, of which I did make a few sales from. But that was a very unique system that they set up and quite complex. I don't want to get into anything that involved for my first major launch. I'm trying to keep this as simple as possible, which for me means not promoting too many things. | |
| | ||
| | |
| | #13 | |
| Content & Copywriting Wiz War Room Member Join Date: Dec 2006 Location: Roselle, NJ, USA
Posts: 16,394
Blog Entries: 11 Thanks: 1,531
Thanked 6,192 Times in 2,288 Posts
| Quote:
Ken, I do like the idea of a continuity program but let's be honest, that is a ton of work and I doubt most of these folks do these on their own. They either have partners (something I don't have for this) or they do a ton of outsourcing, something I'm not comfortable with when it comes to content. After all, THAT is what I'm selling so I need it to be hands on. For that reason, I am tending to want to stay away from continuity right now, especially since I have a low end continuity program going right now that I'm spending some time on each day. It's not a lot of time so it's not anything I can't handle, but for a massive product like I'm launching, the monthly content would have to be mind boggling. Not ready for that yet. | |
| | ||
| | |
| | #14 | |
| Advanced Warrior War Room Member Join Date: Oct 2006
Posts: 732
Thanks: 168
Thanked 617 Times in 234 Posts
| Quote:
So now you have a number, $100,000.00 during launch. With a basic affiliate program, you'd be giving away 50%...so you have to do 200K in sales (plus about 5% or so for overhead). To make it happen QUICKLY and EASILY, then you need some Super Affiliates, a couple of the big boys to join in the launch, and you've identified they want BIG money, so if you have a 1000 dollar product, and you give away 500 to get the lists... Then you need to only make about 200 sales to reach this level. As has been noted, there are many 1000 dollar launches some being virtual. If you drop to a 500 dollar price tag, and go after the "medium" affiliates, but more of them, then you need to sell about 400 units to reach your 100,000 mark, getting 250 per unit. If there are real products, then you subtract the costs. To get it down into "everyone" land, you'd be selling a 300 dollar product, giving away 150 for the affiliates and have a cost of about 35 dollars for fulfillment, your gross net would be 115.00 per unit and you'd need to sell 870 units. Which may be very doable with your Warrior Connection. The FAST way is to get Super Affiliates involved. Maybe even get them involved in the development, so they can prepare their own "Bonuses" to give to their lists pre launch. You have a track record, that is one way to go. So, if you spend the next 6 months working on the product, and launch in prime season about April or so, you could hit the 6 figure mark pretty easy and early in the year giving you plenty of time to develop other products or to expand on what you have all ready. Again, it comes back to what your business is going to be about and how long you intend to be in business. Then it goes to the math. Right? gjabiz | |
| | |
| | #15 | |
| Content & Copywriting Wiz War Room Member Join Date: Dec 2006 Location: Roselle, NJ, USA
Posts: 16,394
Blog Entries: 11 Thanks: 1,531
Thanked 6,192 Times in 2,288 Posts
| Quote:
Thank you, thank you, thank you. That is perfect. Makes so much sense it's almost child's play when you think about it. Yeah, that's all it will take. And 500 to 1000 units is nothing. I usually do that on a new product by myself. Problem is, that's ALL I do because, well, I do it myself. This will make things a lot easier. | |
| | ||
| | |
![]() |
|
| Tags |
| cons, digital, end, high, low, physical, pros |
| Thread Tools | |
| |
![]() |