Frank Kern - Scarcity Gone Too Far?

[virtualpro]

$5 a CD! In my country it could be 5CD for buck.

It would be a lot cheaper even included shipping.
You may want to considered outsourced to a reliable company.

Thanks,
Lee

Originally Posted by Floyd Fisher

Wrong.

Each CD costs about $5 to print up (check it out at any CD fulfillment house and see what I mean). Now, I don't know exactly how many CD's are in the Mass Control program, but from what I understand, it's quite a few (can anyone give me an exact count).

[OnlineMasterMind]

Originally Posted by Daniel E Taylor

LOLL @ this thread.

Wake the hell up.

Frank kern is a man, who has a product, and is selling it.

He can sell/giveaway however many units he damn well pleases.

If he wanted to give away 10 copies, as long as he clearly states that,
and keeps his word thats fine.

It sounds more like to me people are bitching because THEY were just
too damn slow.

Oh well, grow up and move on.

What if he would have offered 2001 copies and you got in?
Would you still be bitching about the scarcity tactic? Of course not
you wouldn't give a **** because you would have got you're copy
and been happy.

The point of this thread isn't to discuss "a marketing tactic" it's
so the OP can bitch because he felt he deserved this free offer
for whatever reason, and since he was to slow, it's time to bitch
and question tactics.

But if you would have got the offer you wouldn't have created
this stupid thread. Stop acting like you're defending marketing
and really put it out there that you're just mad you didn't get a copy.

I mean come on.

Who the hell doesn't use scarcity? come back to reality.

Didn't sony do that with the ps3? So did xbox360. They had
people waiting in lines to get it, and most of which didn't make
it in time.

This is stuff I learned in my 12th grade economics class.

It's funny because many of you who "question" this method
are the same ones who think they are "marketers".

Get your head out of your ass and open your eyes. These
methods are being used offline and online everyday, and have
been forever, and will continue.

It's nothing new.

The only thing new is your limited marketing knowledge and it's
easy to tell because any real marketer can look at this and know
exactly whats going on.

I thought this was a marketing forum...


Daniel

Oh you freakin kidding me?

I am a MARKETER...

I'm upset I did not "get in"..... HA!

You obviously haven't got a clue what you're talking about...

I'm doing the EXACT OPPOSITE of complaining; I'm questioning whether he took it far enough.... As in maximizing his profits while still keeping the scarcity intacted.

Is that not appropriate for a MARKETING DISCUSSION?

If aerosmith is selling tickets for a concert and 60,000 people are willing to pay...should they only sell 10,000 tickets? Does selling all 60,000 (or even 30,000) somehow decrease the response to the next showing?

I think not.

I don't see what's going on????

Is this the same guy who's insecure and feels the need to flash his cash to validate himself?

Yeah....

[Brian Tayler]

Originally Posted by Floyd Fisher

Wrong.

Each CD costs about $5 to print up (check it out at any CD fulfillment house and see what I mean)...

It doesn't cost me $5 a CD.

I pay between $0.50-$2.25

As an example I'll use the ever popular Kunaki used by a lot of people here. $1.75 for printing on CD/DVD case and on CD/DVD label itself. Plus copying data onto the disc.

Far cry from $5 a CD.. Oh wait... I forgot that ever expensive USPS shipping at $3.25 a CD

[Popstar]

Why would anyone think this is a conspiracy? It's a product launch pure and simple whether you characterize it as a test or not.

If it's pushed your emotional buttons in any way, then he's done his job.

Debbie

[Daniel E Taylor]

Originally Posted by OnlineMasterMind

Is this the same guy who's insecure and feels the need to flash his cash to validate himself?

...

Yea that's me. Mr Insecure.

Daniel

[ExRat]

<<<<ExRat

[John_Reese]

Originally Posted by Lance K

John, I agree that it was smart to test it. But I really don't think there's much possibility of Frank losing money on this test. And the reason I believe that is due to the rule of reciprocity. If the package delivers that $1997 of value, people will feel guilty keeping it for only the $18 s/h charge. Therefore, a good number of those people would be likely to stick with the $297/month program for at least a month or 2. At which point Frank will be in the black. I would guess that Frank believes this as well, but without knowing for sure he wanted to test it out on a limited basis. Thoughts?

Lance it's still a numbers game and there is still a lot of risk involved. We're talking about the capital outlay of $50,000+ (I don't know his exact costs). $297/month is no $29.95/month continuity program that some people 'might' forget to cancel or say they'll "do it later" etc. and end up paying for a few months. $300 is a substantial amount of money. So it's inevitable based on that alone that the stick rate will be much lower than other programs with cheaper prices. Add to that the fact that they don't have to return the free trial materials in order to cancel, and you've got the makings for a very unpredictable campaign.

Obviously, Frank is one of my closest friends and I hope his business does really well with the offer. But Frank will be the first to admit that this offer is a crapshoot at this point and he's anxious to see how it pans out; hence the reason he's just testing it.

But rest assured, if it becomes profitable I'm sure Frank will do a large relaunch campaign for the offer to maximize the sales from it -- or at least that's what *I* predict he'll do. Ultimately, it's up to him.

-John Reese

[JaniG]

From a psycological point of view, i think seeing a SOLD OUT page makes me want it even more.

This may be a tactic to get even more buyers ready for a possible sale in a few weeks?

If so , then this could get even more sales then if he kept it up.

BUT if this is not the plan, then maybe because its a physical product??

J

[VegasVince]

These Frank Kern threads remind me of a part of the population who actually care how much cocaine Britney Spears snorts and how fat her ass is or isn't getting et al.

Dumb like a fox Britney keeps lip syncing her way to millions all the while pulling the strings of a puppet, voyeuristic society who find it easier to live via the success and failures of anyone BUT THEMSELVES.

The fact remains.....marketing's smoking man....once again went out and hit the jackpot...via MASS CONTROL. And I say kudos.

And rather then asking why...I'd rather study the "how."

When you reach the point in your career where the entire marketing world analyzes and disects your pre-pre-launch, your pre-launch, the launch itself, the after lauch and everything before and after that---you my friends....are A LEGEND.

Frank Kern is a legend. Period. And the numbers back that up.

I missed out on the launch cuz I chose to stay up all night watching Kern's surfin' buddy Jason Moffatt roll around on his bed....via his live tv show.....but I aint bitchin'.

I've learned quite a bit about mass control....just watchin' Frank market it. True.


xxx Vegas Vince
The Vegas Vince Diary
Living Life and Marketing Behind the 8-Ball!
November 2008.

[Mike Hill]

Originally Posted by John_Reese

I know this may come as a 'shocker'...

But Frank was just doing exactly what he said he was doing. He was running a TEST. The reason why he didn't pay a ton to print up 10,000+ of those packages is because this exact offer for him is UNPROVEN. It's very risky. (Especially with the "you don't even have to send it back" guarantee.)

It's very possible that Frank could end up losing money on this whole thing. And if he had offered it to more people the losses could really add up. So I think he did the smart thing and offered it to a decent size to give it a test. I'm sure if the stick rate makes it profitable then he'll do it again with a much higher limit.

But again, this is another one of those marketing events where people are looking for things that don't even exist. Sometimes it's not that complicated. As I said, in this case, it's simply a test. There wasn't some calculated evil scheme to quickly throw up a "SOLD OUT" sign so it would generate more money for some "Stage II" sneaky plan that's being cooked up. He did a great job on the marketing, created a huge buzz and demand, and tons of people took him up on the great offer quickly. That's the ONLY reason it had that result.

-John Reese

Originally Posted by Mike Hill

.... PPS. Not to mention, he did say this was a "TEST"... A smart marketer (Frank) would do a limited release to see the "stick" rate and crunch some numbers before a mass roll-out... Hello!

Hmm... that's pretty much what I said earlier and I totally agree with John...

Mike Hill ;-)

[Mike Hill]

Originally Posted by virtualpro

$5 a CD! In my country it could be 5CD for buck.

It would be a lot cheaper even included shipping.
You may want to considered outsourced to a reliable company.

Thanks,
Lee

And what would be the quality of that CD..? Probably not very good, besides Frank doesn;t live over their... could you imagine the shipping rates...LOL

Mike Hill

[DougBarger]

"The I.s.a.a.c. Offer"

One principle of scarcity that may have been covered earlier in the thread(but I didn't see it if it was) is that by limiting the quantity,

not only is the "perceived value" of products or services greatly increased...

...but also the true value is increased as well.

To put this in perspective while further illustrating this principle let us consider the true value of the cash prize of the $100,000,000 lottery as it is awarded to the man (or woman) holding the winning ticket.

Now let us consider the value of that same $100,000,000 prize (with just one variable) as it is enjoyed

by the 100,000,000 winning ticket holders who are now sharing the purse amongst one another.

This is even truer when the product and/or service offered (provided) is:

*Information

*Strategy

*Analysis of sensitive market data

*Advice

*Consultation

The obvious reason is that the less people who possess the information (with ramifications reaching into the realtime marketplace)

the less competition they have and greater advantage they enjoy implementing.

More advantage and Less Competition=More potential profits

More potential profits=More true value

Wish I had another 15 minutes to discuss scarcity further
but it's dinner time

so I've got to make myself scarce.

[JayXtreme]

Originally Posted by DougBarger

"The I.s.a.a.c. Offer"

One principle of scarcity that may have been covered earlier in the thread(but I didn't see it if it was) is that by limiting the quantity,

not only is the "perceived value" of products or services greatly increased...

...but also the true value is increased as well.

To put this in perspective while further illustrating this principle let us consider the true value of the cash prize of the $100,000,000 lottery as it is awarded to the man (or woman) holding the winning ticket.

Now let us consider the value of that same $100,000,000 prize (with just one variable) as it is enjoyed

by the 100,000,000 winning ticket holders who are now sharing the purse amongst one another.

This is even truer when the product and/or service offered (provided) is:

*Information

*Strategy

*Analysis of sensitive market data

*Advice

*Consultation

The obvious reason is that the less people who possess the information (with ramifications reaching into the realtime marketplace)

the less competition they have and greater advantage they enjoy implementing.

More advantage and Less Competition=More potential profits

More potential profits=More true value

Wish I had another 15 minutes to discuss scarcity further
but it's dinner time

so I've got to make myself scarce.

So true Doug....

I think this is a point many fail to see with things like this...

With limited offers, the less diluted the marketplace comes with the information given..

Jay

[Lance K]

Originally Posted by John_Reese

Lance it's still a numbers game and there is still a lot of risk involved. We're talking about the capital outlay of $50,000+ (I don't know his exact costs). $297/month is no $29.95/month continuity program that some people 'might' forget to cancel or say they'll "do it later" etc. and end up paying for a few months. $300 is a substantial amount of money. So it's inevitable based on that alone that the stick rate will be much lower than other programs with cheaper prices. Add to that the fact that they don't have to return the free trial materials in order to cancel, and you've got the makings for a very unpredictable campaign.

Obviously, Frank is one of my closest friends and I hope his business does really well with the offer. But Frank will be the first to admit that this offer is a crapshoot at this point and he's anxious to see how it pans out; hence the reason he's just testing it.

But rest assured, if it becomes profitable I'm sure Frank will do a large relaunch campaign for the offer to maximize the sales from it -- or at least that's what *I* predict he'll do. Ultimately, it's up to him.

-John Reese

John, thanks for the reply. That makes sense. Test small, roll out big. *I* still believe this test will be a winner. At the very least, break even with a lot of valuable data obtained that could be the seedlings of something huge in the future.

[spudzz]

Another brilliant launch from Frank, pushing all the right buttons in the right order.

I'm with others here in saying though that there was more to learn from the launch than probably from the product itself - get all of Cialdini's books and you'll have ten times what will be in any of the Mass Control variants I'd have thought at a fraction of the cost. But that's marketing - Frank Kern's very successfully sold the sizzle and deserves full creds for that.

Just one point though - Frank obviously took on affiliates for this but mailed his own list an hour before they did and basically sold out on that. If I was an affiliate that had pushed this to their list I'd not be best pleased by that - other big name marketers let their affiliates get first shot on the big launches. Yes, I know there'll be the inevitable relaunch but probably without the so generous opening offer and those potential customers who waited to purchase through the affiliate links probably aren't best pleased at present.

[Jason Moffatt]

Originally Posted by spudzz

Another brilliant launch from Frank, pushing all the right buttons in the right order.

I'm with others here in saying though that there was more to learn from the launch than probably from the product itself - get all of Cialdini's books and you'll have ten times what will be in any of the Mass Control variants I'd have thought at a fraction of the cost. But that's marketing - Frank Kern's very successfully sold the sizzle and deserves full creds for that.

Just one point though - Frank obviously took on affiliates for this but mailed his own list an hour before they did and basically sold out on that. If I was an affiliate that had pushed this to their list I'd not be best pleased by that - other big name marketers let their affiliates get first shot on the big launches. Yes, I know there'll be the inevitable relaunch but probably without the so generous opening offer and those potential customers who waited to purchase through the affiliate links probably aren't best pleased at present.

Frank may of sold the sizzle, but he's delivering Fillet Mignon.

Also, Frank mailed his list an hour before yes. But that list was compiled of all the leads that we as affiliates sent to him.

Any visitors we sent during the week all had the exact same opportunity as the next guy. As long as you had opted in during the week, there was equal chance for everyone.

[Floyd Fisher]

Originally Posted by Brian Tayler

It doesn't cost me $5 a CD.

I pay between $0.50-$2.25

As an example I'll use the ever popular Kunaki used by a lot of people here. $1.75 for printing on CD/DVD case and on CD/DVD label itself. Plus copying data onto the disc.

Far cry from $5 a CD.. Oh wait... I forgot that ever expensive USPS shipping at $3.25 a CD

Don't forget protective packaging, insurance, and tracking as well. Wouldn't want to lose those things would we?

[Brian Tayler]

Originally Posted by Floyd Fisher

Don't forget protective packaging, insurance, and tracking as well. Wouldn't want to lose those things would we?

Floyd,
I hope you actually read what I wrote. I don't mind having a discussion with someone with a difference of opinions... but don't be a complete ass about it.

Kunaki as stated before a price of: $1.75
Simple google search would tell you this includes:
Manufacturing / assembly
Full color CD printing
Jewel case
Full color 2-panel insert
Full color tray card
Cellophane wrapping
UPC bar code
24-Hour rush manufacturing

Shipping costs roughly $1 (to ship one CD). That includes tracking, however doesn't include insurance. Why would I pay to insure something that costs $1.75?

[Nicholas Ho]

He did a great job on the marketing, created a huge buzz and demand, and tons of people took him up on the great offer quickly. That's the ONLY reason it had that result.

Speaking of results, he did what he said, and next time, it could have sold out faster than ever.
Very very nice marketing strategy I can say.

-Nicholas Ho

[OnlineMasterMind]

To everyone who is talking about this being a "test".... at this price point.....basically around 70-80% of people would have to cancel w/o paying even one month...

I just don't see even a remote chance of that happening.

Mike... how did you say it?... "Hello!"

Ok.... but at the end of the day.... I have to say....

VegasVince,

You're right. I agree.

Even though I thought this was a reasonable question at the time, I can see now that it's pretty much being perceived as criticism and that definitely wasn't my intention.

[Kyle Tully]

Originally Posted by OnlineMasterMind

To everyone who is talking about this being a "test".... at this price point.....basically around 70-80% of people would have to cancel w/o paying even one month...

I just don't see even a remote chance of that happening.

Not even a remote chance?

I'd think again.

There is a very real possibility the stick rate will only be around 10%.

I think it's a bigger risk than many people are assuming.

[virtualpro]

I think it would definitely more than 10% for the first month.

For me ~300$ is about what is my living cost/month.Living here is cheap and I'm frugal since born.

I'm still unsure to refuse his offer now, since everyone praise about him in this forum. All of you're his saleman now, you know?

And another thing is I already find out how to cover subscription cost for 1-2 month, just because he spread so big buzz. Without see his product yet...

Really, frank already told a lot of secrets.

Thanks,
Lee

Originally Posted by Kyle Tully

Not even a remote chance?

I'd think again.

There is a very real possibility the stick rate will only be around 10%.

I think it's a bigger risk than many people are assuming.

[covert]

Psychologically it breaks down a couple of ways...

#1 Some have taken the offer with the intention to never pay the $297 (bottom feeders)
#2 Others will actually try the $297 (myself) and see if there is enough value in the membership.
#3 Some will make a decision after they review the pack and 1st month. Their decision to keep it will be based on results and if they made money (this in politics would be the swing vote).

The law of reciprocity is very strong with this offer. If you are a reasonable person, and get a good value from the package and 1st month, you automatically pay the 2nd months $297 because you want to give back to what has been given. This is how a someone who is really looking for value will view this.

You see the $297 (even if only paid one month) is really the price. Frank gets 500 to pay $297 only once and he brings in close to $150,000 (that is on the low side, I expect at least half to pay the $297), and that is if it doesn't work. He pays out 50% to his affiliates and is left with some coin in his pocket. Now that is on the low end. I believe he will get a much higher rate of buy in on the $297, because he is delivering a quality product....

Frank has stacked the deck...

Over the last year, I have signed up for many, many membership programs as a way to see which ones are good and which ones are not. I have learned a lot over that time and then created my own membership site by over-delivering high quality material vs what is usually put out by people.

My criteria is based on my value for dollar spent. I have bought some memberships that were $29.95 and weren't worth the printed paper (not much anyway) and others that have been $200+ and gave real value for dollar spent.

If I get one idea that allows me to jump my income by thousands then it was a worthwhile investment. Frank knows this and must be confident in his material otherwise he wouldn't take the risk... All business is risk and that is part of the deal...

Using several of Frank's tactics has yielded me a recurring $3,000-4,000/month in my new membership plan. I directly used his tactics and directly saw the benefit. And as a result, all of my other income streams have been affected in the positive ( by the way, I am not even in the Internet market niche)

So, I am excited to see how some of these tactics (I really only need one good one) will jump my income even greater...

I expect great results, and I know I'll get them.

-Al

[johnmiley]

I've heard from sources "close to Frank" that one of the reasons he limited this deal was due to the fact that the packets he's sending out are loss-leaders to him. You cover postage and handling, but he still takes a bath on product cost to the tune of about $20 per packet.
Therefore, he only wanted the most rabid fans to get in on it, and not tire-kickers. I didn't get in on the deal, so maybe I'm a tire-kicker?
Who knows.
Anyway, that may have played into this as well.
Cheers.

[Bearded]

OK. Here's what happened.

1 - Launch videos to build a bit of buzz (though Frank doesn't need much anymore)
2 - MASSIVELY over deliver on the front end
3 - Sell out super quick, so people are still chomping at the bit to get in
4 - After the "freebie seekers" drop off next month, he can easily sell out the open spots without having to giveaway all that free stuff again, or even sell a whole lot more spots at full price. (or maybe with a discounted 1st month)

Did you guys notice how little sales copy was involved in this launch? Frank can basically coast on autopilot now, because everyone knows he always delivers.

Joe

[Kyle Tully]

Originally Posted by Bearded

OK. Here's what happened.

1 - Launch videos to build a bit of buzz (though Frank doesn't need much

<snip>

Did you guys notice how little sales copy was involved in this launch? Frank can basically coast on autopilot now, because everyone knows he always delivers.

Joe I think you massively underestimate the "stuff" going on in #1.

Frank didn't just throw up a video and "coast on autopilot". He worked on those videos for weeks in advance of the launch. And guess what every single word of those videos is.... sales copy!

Plus there's tons of subliminal NLP stuff going on in each of those videos. The series follows a very specific theme... each video plays a certain role within that theme... while also hitting a number of triggers, conditioning prices, scarcity, likability etc.

To anyone saying "Frank can basically coast on autopilot now, because everyone knows he always delivers" needs to take a closer look at what's going on.

Part of Franks whole "gig" is making things look easy. And that's exactly what he does. But there is so much going on under the surface it's not funny.

[OnlineMasterMind]

Originally Posted by Kyle Tully

Joe I think you massively underestimate the "stuff" going on in #1.

Frank didn't just throw up a video and "coast on autopilot". He worked on those videos for weeks in advance of the launch. And guess what every single word of those videos is.... sales copy!

Plus there's tons of subliminal NLP stuff going on in each of those videos. The series follows a very specific theme... each video plays a certain role within that theme... while also hitting a number of triggers, conditioning prices, scarcity, likability etc.

To anyone saying "Frank can basically coast on autopilot now, because everyone knows he always delivers" needs to take a closer look at what's going on.

Part of Franks whole "gig" is making things look easy. And that's exactly what he does. But there is so much going on under the surface it's not funny.

Great point Kyle. I always like reading your posts.

But I still think you're a little crazy for saying this

Originally Posted by Kyle Tully

There is a very real possibility the stick rate will only be around 10%.

[Kyle Tully]

Originally Posted by OnlineMasterMind

Great point Kyle. I always like reading your posts.

But I still think you're a little crazy for saying this

Honestly I think it's a bit of a crap shoot.

And it's got nothing to do with the quality of the product or how much reciprocation he's built up. It could be the best product in the world and have massive reciprocation going on and still only hit 10%

Just take a look at the market, there are plenty of people without 2 cents to rub together... just as many of them (if not more) than serious business owners.

And they're all on Frank's list just like everyone else.

They've been salivating over Frank's products for the last few launches but have been unable to afford them... they'll jump at the chance to get their hands on it for $19.

But how many of them can even afford the first $297 payment?

Add the fact that Frank makes in sound like as soon as you get his stuff you'll start making money... and I'm guessing there will be a lot of people with $20 on their credit cards playing the Mass Control lottery and hoping to make their first $297 before the payments kick in.

Just depends how many of these people get in vs the more serious business people. And without much (if any) control over this I stand by my comment that he may only get 10% stick.

Either way it was a great mini-launch to watch and he'll make some nice coin and/or learn something new about his market.

[Louis Raven]

Maybe all those that missed out will listen when Franks states: "x limited amount!".

If he did not keep his word, how many people do you think will buy on his next promo?
They'll think "oh, 20 copies left.. yeah right!".

You'll never get military respect wearing bright pink. In fact, Frank RARELY uses scarcity if you think about it. There's no need to.

Louis

[Scott Million]

Originally Posted by OnlineMasterMind

This post is not intended to bash Kern or question the integrity of tactics or anything like that...

None of that.

I sincerely value learning from anyone who is as passionate about marketing as Frank is and I've definitely learned a lot...

But I seriously don't understand this way of doing business. I mean, the order page was up for like 15 minutes????

Isn't the goal of business to maximize profits?

Sure, maybe you want to brand your business a certain way that adds more perceived value to it...

But would leaving the order page up for a day really detract from that?

For example, I'm someone who isn't gonna sit around and go to the site exactly at a certain time desperately waiting to buy something. I understand that's who he's targeting and that's wonderful. It's very smart actually. But I also think that myself along with many others would still be good prospects.

I like Frank, saw some of his videos, and would have been interested to see what he had to offer. I got back from a meeting with a local client...go to check out the site and I see it's sold out?

It almost seems like putting a sold out page on your site as fast as humanly possible is the cool thing to do nowadays regardless of whether or not it's the most objective business decision.

I dunno... maybe I'm just totally missing something here...

I just don't get it b/c personally this doesn't make me desire what he was selling any more than if it was only available for a day...

Do you agree with his strategy? Are there some benefits that I'm missing?

P.S. The only possible explanation I could think of would be that he wanted to make sure that the offer would be profitable... But if that was the case, wouldn't it make sense to just raise the S&H to cover the cost of the products, while putting himself in a no lose situation. I don't think that would have affected the response to the offer.

LOL - It's amazing how Frank does it. People so eager to buy that they're actually UPSET when he won't sell it to them...the guy is a genius, that's for sure. I'll bet you'll be the first one to buy his next class in a few months .

[Black Hat Cat]

Originally Posted by johnmiley

I've heard from sources "close to Frank" that one of the reasons he limited this deal was due to the fact that the packets he's sending out are loss-leaders to him. You cover postage and handling, but he still takes a bath on product cost to the tune of about $20 per packet.

Cheers.

If true, he's really getting ripped off. Shipping will cost maybe 8 bucks. That means he's paying a $10 handling fee that doesn't even include product cost.

Funny thing is, guru types have been telling us for a few years now that physical products can be produced for next to nothing. Now they're telling us it's so expensive, lol.

As for the original intent of this thread, please. Frank can sell as many or as few copies as he pleases.

[lindajess]

Originally Posted by Brian Tayler

Actually it is... supply vs. demand.

Either offer it at a higher price or offer more copies.

I don't buy the "I really could end up bankrupt" cry. Anyone who pays more than $18 for a couple CDs/DVDs to a fulfillment house to copy & ship is in the wrong business to begin with.

But I don't concede to Frank's so called trial and error ignorance. He's smarter than that. This is all about scarcity and gaining hype and thus gaining more customers (maybe not now... but down the road). Remember... true business men aren't looking at THIS SALE but possible sales down the road. If you're concentrating on the next sale... your already behind.

He may be smarter than that, maybe he didn't do this on accident...maybe he did it so that people would go in and get his next product, I mean, if it was in that high of a demand, the guy knows what he's talking about...

Am I right?

[ishykiel]

In relation to the question that "Scarcity Gone Too Far?".

I really think that it is relative in nature. For a bigger market like the internet marketing market, 2000 is like an ok number to me.

For a smaller market and niche like for "Pea collectors" or something, the number might need to be lower.

What I learned from all this is that:

Scarcity is definitely a marketing technique that one can use to complement all the other marketing strategies employed.

And I feel that, it will work better if you are someone who is recognised and who already has a following.

Not to mention a boat load of "Super Affiliates" who are big names themselves.

[xlfutur1]

Sounds pretty brilliant actually. Even as a test, the 18 bucks covers his postage and costs pretty much, then if only 10% stay on at $297, he just added 60K per month to his income. Worth the time to make a DVD of what you are doing in other areas that's for sure.

He can then sell those 10% higher priced seminars and other stuff. In the long run, its a million dollar per year business waiting to happen.

Then of course he could always open it up for 24 hours again to people who didn't make it in the first time. Probably adding another 2000 people to the mix X 10% who stay on each month....you get the idea.

[MaskedMarketer]

Instead of analyzing if FRANK could have made more money, why not just use these tactics and for yourself and see? Test them out?

Not only is he a master marketer, sells out memberships, but he knows how to create buzz- Did Frank create this thread? JK lol...

[MaskedMarketer]

Originally Posted by John_Reese

I know this may come as a 'shocker'...

He was running a TEST.

-John Reese

I am not doubting Frank in this case, but he is a master at what he does.

And everyone should know that "marketing test" is usually a "marketing ploy".

Not saying Frank did it deliberate. And even if he did I applaud him for his
marketing abilities.

People that are complaining, upset, or don't like the fact they didn't have a full 24 hours to "check it out"- really need to take a step back and understand why he does this and why he makes so much money.

[jnapier]

I was one of the few who got in on the special promotion (ie: one of the 2000). I liked what I got, but the stuff I got for the $297 was lame. I got a BIG box, then a package with 2 little video clips. I would have stuff with it, but didn't want to wait to see what the 3rd month would bring for the $297.

My suggestion - and I hope Frank reads this. A) Add more value to the monthly product or b) Charge less for it.

Jay NaPier

[MaskedMarketer]

Originally Posted by jnapier

I was one of the few who got in on the special promotion (ie: one of the 2000). I liked what I got, but the stuff I got for the $297 was lame. I got a BIG box, then a package with 2 little video clips. I would have stuff with it, but didn't want to wait to see what the 3rd month would bring for the $297.

My suggestion - and I hope Frank reads this. A) Add more value to the monthly product or b) Charge less for it.

Jay NaPier

In information marketing, its not about the size of the product, but the actual content on there.

Are you saying with the information given you couldn't suck out atleast 300 extra dollars in a month?

Did you even implement the stratgies?

I'm not doubting weather its good or not, but many people don't even implement what they learn and those people are normally ones who complain ( i'm not saying thats you)

[Alex Sol]

Watch Frank come out with a new product:

"How YOU can make 1,000 sales in 15 minutes FLAT"

[jnapier]

Originally Posted by MaskedMarketer

In information marketing, its not about the size of the product, but the actual content on there.

Are you saying with the information given you couldn't suck out atleast 300 extra dollars in a month?

Did you even implement the stratgies?

I'm not doubting weather its good or not, but many people don't even implement what they learn and those people are normally ones who complain ( i'm not saying thats you)

Yep, put it to work almost immediatly. You see, the idea he was suggesting was a free trial. In my product, a free trial is not an option.

Jay NaPier

[Steven Carl Kelly]

Personally, I'm not particularly interested in anything that Frank Kern sells, so I had no idea that a product launch was underway at all. However, I understand (and have used) the scarcity tactic and I will tell you this: it is very, very effective -- at least it has been when I've used it.

Scarcity and price escalation are two very effective methods when used properly. In fact, I've used both online and offline at my live seminars to great effect.

[Steven Carl Kelly]

Originally Posted by Floyd Fisher

Each CD costs about $5 to print up (check it out at any CD fulfillment house and see what I mean).

I believe you're way high. I've contracted CD fulfillment services on a product I produced and front-to-back my cost for that service was less than $5.00 per disk, and that INCLUDED the shipping costs for each unit.

No, $5.00 per disk is way too high, especially if he's producing a multi-disk package which is being shipped to a single address. In fact, if you yourself were going to mail CD's to 2,000 subscribers per month, you could do it for well under $4.00 a disk -- including shipping.

As an example:
CD/DVD Fulfillment Pricing

At $297 a month, less than 30 subscribers would cover the cost to fulfill an entire monthly subscription to 2,000 subscribers.