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Is Cheap, FREE Out? Do Higher Price Equal Quality?

by fated82
7 replies
I got an interesting message today on my Facebook. Someone tested 2 similar ads but with 2 different price point. One is @ $29/hour and another is @ $50/hour.....result? His $50/hour ads pull in more takers than his $29/hour ad.

My question is, do you think it is the same as IM? where $7 report no longer work BUT $17 report might work better?

Or people are no longer interested in FREE reports but might be willing to get one even if it's only $1. What is your take on it?
#cheap #equal #free #higher #price #quality
  • Profile picture of the author CatherineC
    Banned
    There is no right answer to this besides one: Testing.

    It sucks, but everyone's opinion is just based on their own universe, their own products, and their own marketing angle.

    You just have to bite that bullet and split-test until you figure out your own metric.

    I will say that I have recently thought of fooling around with the "$1 to cover bandwidth" charge nonsense, which is old-school actually (funny how everything old eventually comes back as if it's "new") as a way to filter more buyers into my lists instead of freebie-seekers, but I haven't tested it yet.
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  • Profile picture of the author Mike McAleer
    People love free but also people will generally tend to pay more attention to a product that they paid for because if they don't use it they feel like it was a waste of money.
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    • Profile picture of the author WillR
      Originally Posted by FreshDomains View Post

      People love free but also people will generally tend to pay more attention to a product that they paid for because if they don't use it they feel like it was a waste of money.
      I think there are still a lot of people who buy products and don't do anything with them either. Half the people who buy WSO's religiously would fit into this category.

      Originally Posted by CatherineC View Post

      I will say that I have recently thought of fooling around with the "$1 to cover bandwidth" charge nonsense, which is old-school actually (funny how everything old eventually comes back as if it's "new") as a way to filter more buyers into my lists instead of freebie-seekers, but I haven't tested it yet.
      I don't think it is just about the $1 you charge them that qualifies them as better prospects for your list. I think it is the extra effort they need to go to in order to get that product.

      Most squeeze pages just ask for an email address and a name. This makes it drop dead simple for anyone with even a slight interest to request the free information. If you instead made the visitors answer a couple of questions or do something that involves more effort than just entering an email and their name, I think you are still going to end up with a list of much more qualified prospects - just as you would with the $1 offer.

      The difference is not entirely to do with the dollar - it is the extra effort required that qualifies them as much better leads for your business.
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  • Profile picture of the author fated82
    Currently I have a few $9.95 reports out but they aren't converting very well. My thoughts are to increase the price and perceive value and also redo the sale page.....For some funny reason, I think it could be the price that is deterring people from actually purchasing the products.
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    • Profile picture of the author spearce000
      Originally Posted by fated82 View Post

      Currently I have a few $9.95 reports out but they aren't converting very well. My thoughts are to increase the price and perceive value and also redo the sale page.....For some funny reason, I think it could be the price that is deterring people from actually purchasing the products.
      That would be a good strategy. Test one element at a time though - so test the price but leave the sales page the same and vice versa. That way, you'll know if it's the price or the copy that's working (or not working).
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  • Profile picture of the author BloggingPro
    In my experience "cheap" is far from out. Hell I run several sites with the word "cheap" in the domain names and I do very well with them. I will say that the sites do promote "affordable" physical products, which I think do well because everyone is always looking for a deal on the stuff they want.

    With digital products the perceived value is in the information itself. There is nothing to hold onto (unless you print it off once you download), nothing to really grasp at other than the information contained inside.

    Perception is reality and when people are looking to solve a problem there are two different kind of thoughts.

    1.) I want to solve my problem in the quickest fashion possible and move on, or
    2.) I want to solve my problem with in-depth information so I can prevent it from occurring in the future.

    Which one of the solutions is going to cost more money? The perception would be that solution number two is going to cost more because it goes more in-depth and is going to better solve the problem for the mindset that is looking for a complete solution.

    Solution number 1, while more basic is going appeal to those that just want to fix the issue and move on.

    Finally who's to say that solution number 1, which is straight and to the point couldn't be priced higher because it promises to solve your problem faster than solution number 2 does?

    Value perception has less to do with price (even though thats the by-product of it) and more to do with how well your selling a solution to a market that is desperately looking for one IMO.
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    • Profile picture of the author Alexa Smith
      Banned
      I do suspect that the proportion of downloaders of "free reports" who ever actually read them may be significantly lower than is so for paid-for products.

      I don't know about the difference between $7 and $17 (apart from my estimation of the fact that it's around $10 on a good day, of course), and this is going to vary on a huge range of factors resolvable only by split-testing ... but I can tell you there's a huge difference between a free report and a $1 report, from the marketer's perspective: one produces a buyers' list of people known to have credit-cards and/or PayPal accounts and to be willing to use them to buy online. It doesn't matter that it was only for $1. That alone makes such a list a whole different ball-game.
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