Rise Of The High End Products

[Frank Murphy]

Hi, Misako here with a report of an observation i have been making recently..Well, I am on the list of practically most gurus, and i have noticed a few marketers launching highly priced products (Think conspiracies and seminars). Not that i have anything against that, but my question is, at what rate do these products actually convert? Are people willing to spend close to 2k and more on IM based products? Just my 2 cents..

[James Schramko]

The 2K products convert about five times more than cheap stuff.

[freudianslip27]

It amazes me how these big products carry such a perceived "high value" because of the price tag. After having a look at some of these high ticket items, I was downright shocked. I've seen free ebooks better in value!

I'm not saying this is the case with everything, but you better make darn sure the product is worth it before you plump down that cash!

Matt

[ss442]

I hate to say it, but I am on a lot of lists as well and when I receive an offer for a product or membership site that costs a couple grand I generally opt off the list.

I have also joined a membership site or two and have been under-whelmed with the product, lack of communication, and ceaseless promotion of other products and programs.

I had mistakenly thought that a membership site as it was promoted would provide specific information and support for a specific program but was immediately contacted by phone to sell me a higher priced product.

I am sure not all are that way but I have a bad taste in my mouth about "membership" sites.

I think that monthly investment might go farther being spent on advertising. It hasn't worked yet but still testing.

Just my thoughts.

[TimRobinson]

Generally the only guys who sell the high ticket items are the ones who have given a ton of value beforehand.

They move the free line and give people tons of value in free stuff, and then because they have created so much value and are awesome in the eyes of their subscribers, they are able to sell products normally priced at $100 for $500, and those normally priced at $500 for $2000

Something to learn for everyone there

[myob]

For a number of niches, 2k is considered a bargain, and I have often paid much more than that, and conversely charged much more than 2k. There is a lot more money to be made with non-IM products, than trying to sell "me too" products in the hotly competitive and often jaded IM niche. ROI is much more a factor than price alone.

[P_Cerrito]

Good one myob...

Some people say the real money is in the high ticket items.

Others make a mint killing at $.01 x trillions.

What a product is worth to me is what I can get from it in terms of ROI. If someone thinks in terms of ROI then cost doesn't matter so much if it delivers as expected.

PS- $2k is often less than one semester of college.

PSS- good point above- high price doesn't automatically mean value.

[Asher]

Hi Misako,

I think that people naturally associate high price to
high value... it's just the way that we've been
socially programmed and structured, in my opinion.

Especially since I just managed to get a copy of
Robert Cialdini's "Influence" from the local library,
I'm learning a lot more about how IM gurus are
doing their business.

Like what TimRobinson stated, moving the free
line (from Eban Pagan, I believe) is another method
to increasing sales.

Frank Kern uses the Law of Reciprocity to great
effect.

Asher

[Thomas Belknap]

Originally Posted by famous2313

John "ACE" Reese

Ace?

[myob]

Originally Posted by Thomas Belknap

Ace?

That means someone who has downed 5 or more aircraft in a dogfight. Sounds like one bad SOB!

[Frank Murphy]

Originally Posted by James Schramko

The 2K products convert about five times more than cheap stuff.

Wow..Hmm..Are you sure about this James? Many marketers I spoke to told me they would generally shun any product worth more than $197, regardless of it's perceived value.

[James Schramko]

Originally Posted by misako

Wow..Hmm..Are you sure about this James? Many marketers I spoke to told me they would generally shun any product worth more than $197, regardless of it's perceived value.

There are a lot of variables such as traffic source, bonus or no bonus, competition. scarcity, timing... etc...

And I promote products of all values in many many markets. If I really crank up the traffic then the conversions drop away but when I focus only on 'buyer' traffic I can get double digit conversions for high end stuff.

I am targeting the exact buyer in my communications to achieve this. I have one product I promote that is cheap but getting a 37% conversion because it is exclusive and limited.

The $2000 product I am currently promoting has a very high conversion. I only focus on buyers not browsers.

The other thing to consider is $$ per click. Some high priced product yield $10 - 20 per click..... that is hard to beat with a $7 product,

[borilbogoev]

Hi Misako,

I've never bought a $1000-$2000 product, but we can expect a very good conversion rate here, because:

1. The gurus hire professional marketers.
2. The packages are very well planned and structured.
3. The content might be of far better quality than the cheap stuf.
4. The gurus give a big perceived value to the products.
5. Usually the launch is veeery powerful - with a massive marketing campaign.
6. The have huge e-mail list to work with.
7. Due to the high price tag, they are able to invest more in advertising and marketing...
8. They can easy get armies of affiliates and superaffiliates.

I think it is very nice to launch a high priced product. You can become a millionaire overnight - literally! ))

vvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvv

[Li Weng]

Originally Posted by misako

Hi, Misako here with a report of an observation i have been making recently..Well, I am on the list of practically most gurus, and i have noticed a few marketers launching highly priced products (Think conspiracies and seminars). Not that i have anything against that, but my question is, at what rate do these products actually convert? Are people willing to spend close to 2k and more on IM based products? Just my 2 cents..

In terms of conversion, I have no idea, but it does look
to me that they get sold quite fast.

After all, there's a general "You get what you pay for"
sentiment amongst consumers.

Given that these high ticket products are branded well
(eg. Arbitrage Conspiracy getting all these top names
and credible sources promoting it at the same time) and
creates an adequate perception of value, there will be
more than enough people who will willingly invest that amount.

It's all about how you market it. If you look at luxury
brands like LV, Gucci etc., you're really paying for the
perceived value created in the brand name, and the not
the value in the practical use of these items.

Okay, maybe not the best example, but point is ...
it's quite reasonable to launch IM product with price tags
within the 4 digit range, IF the price can be sufficiently
justified by the amount of value it delivers.

When you look at it...

IM products are really a form of education.

And we'd agree that any type of education is valued highly
in most people's eyes.

(I once did a 2-day real life design course that cost close
to 1 grand, and that was cheap. )

Bottom line is ... as long as the marketing can justify the position
of the product, so that customers have reason to believe that their
investment can be made back after going through the program,
there's no price that's too high for a product.

(When you look at it from a business point of view, it's making the
purchase decision by assessing the potential ROI)

[blogonator]

Originally Posted by borilbogoev

Hi Misako,

I've never bought a $1000-$2000 product, but we can expect a very good conversion rate here, because:

1. The gurus hire professional marketers.
2. The packages are very well planned and structured.
3. The content might be of far better quality than the cheap stuf.
4. The gurus give a big perceived value to the products.
5. Usually the launch is veeery powerful - with a massive marketing campaign.
6. The have huge e-mail list to work with.
7. Due to the high price tag, they are able to invest more in advertising and marketing...
8. They can easy get armies of affiliates and superaffiliates.

I think it is very nice to launch a high priced product. You can become a millionaire overnight - literally! ))

vvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvv

I totally agree! I have heard a few cases where people who launched products in the 4-figure range have gone on to great things and guru status overnight. Its just a stereotype to say that highly priced products won't convert well.

[JasonKing]

If you absolutely knew you were delivering $20,000 of value to your customer, how would you feel if you charged them $2,000?

-JasonKing

[Frank Murphy]

Originally Posted by JasonKing

If you absolutely knew you were delivering $20,000 of value to your customer, how would you feel if you charged them $2,000?

-JasonKing

I guess you have a valid point there Jason. I guess these marketers know what they are doing, and therefore make their products available to the public for a lot less than what the products actual worth is. A win-win situation for both..

[lakshaybehl]

Misako, How are you? Seeing you after a Long time...

I just made this post...

Are people willing to pay a fortune for the Guru's latest and greatest products?

There are endless number of reasons why someone pays a handsome amount of money online and offline. The products that you are referring to are no different.

-Lakshay

[Loren Woirhaye]

If you don't have some sort of big-ticket back-end
in your own business I recommend you get one... preferably
something that doesn't just funnel your customers onto
a guru's list... which means you should get a coaching
or mentoring program going, buy product licenses,
etc... so you can keep your customers in your own
corral.

You could object and say "it's just easier to promote
the guru launches as they come along"... and do you
think the guys doing the launches don't want you to
think this way? I'm not saying it's bad or nasty of
more powerful marketers to do this, just that they do
and you should study it and get yourself in a position
to use the same principle to get other people to send
you big-ticket buyers rather than sending all your
big-ticket buyers to the "gurus".

Sounds complicated but it's not really. If you aren't
in a position to get the money you won't get it with
any consistency.

[Mike Hill]

Originally Posted by davebo

I remember Frank Kern saying in an interview that when he charged $47/month for a membership that it was an unheard of price. Now we're seeing $800 memberships.

Gurus have successfully convinced everyone that the higher the price the higher the value. I realize there is big money to be made from these coaching/membership sites, but I would prefer a John Reese or Internet Marketing Center approach where you throw Scarcity and limited quantities out the window and you sell a reasonably priced product all day/every day.

How many copies do you think IMC sells of it's beginnier course every year?

Yes but they IMC has huge backends to offer. This is just a front end product and you will get invited to seminars in your area, phone calls to their coaching programs, etc...

Everyone should be doing this...

Mike Hill

[Loren Woirhaye]

IMC has "keeping the cows in the corral" down to a tee.

I went to a 2-day seminar they put on and watched in amazement
the upsells and downsells. Virtually nobody left without investing
in one or more of their products. It was extremely polished and...
well, go to one and you'll see. They have all their own products
including software. They never even mentioned 3-rd party autoresponders
bececause they sell Mail-loop. The product was positioned as
the only serious option for the ambitious person.

[jrsencio]

High ticket items tend to sell better, especially if well marketed (higher perception of product value), from my experience though the highest priced IM products I have sold were 1k products. Have not gone beyond 1K.

[Frank Murphy]

Originally Posted by lakshaybehl

Misako, How are you? Seeing you after a Long time...

I just made this post...

Are people willing to pay a fortune for the Guru's latest and greatest products?

There are endless number of reasons why someone pays a handsome amount of money online and offline. The products that you are referring to are no different.

-Lakshay

Hi Lakshay, I am doing good. What about yourself? Been busy with college and stuff..Anyways, thats a pretty informative post..Highlights the conversion rates between high and low end products.

[steven90210]

I guess it all boils down to the price you pay and the value you get in return.
An example would be purchasing a 5 thousand dollar pen and a 5 thousand dollar car.
The price you pay is the same, but the value you get out of it differs greatly.

Although when it comes to internet marketing, the rules change a little. We can pay 100 bucks for a car worth half a million, or we could pay 10 grand for a cheap pen.

At the same time, one cannot ignore how well known or how useful are the information to the individual. I guess in that regard it's very hard to determine what might be useful to a person (and him paying thousands of dollars for that single package) and what might be rubbish to another (not even forking out 50 bucks for the same thing).

One man's trash is another man's treasure.

[Mike Hill]

It's funny to hear of all the folks that say "If I get those emails for $2,000+ products I opt out of the list" and then in the same breath want real help.

A lot of those high priced courses are actually very good and I definitely got my money's worth because of the ideas it generated for me.

There comes a time when people have to realize that you cannot do it all on your own, that eventually you will need to get some great advice and fresh perspective to generate those ideas further.

It's almost like having to pay an admission fee to get the very best information out there that can really take you to new heights - If and only if you use the information.

"But I can't afford it!" Now that's a common complaint and a legitimate one too. For now you will have to work very hard in the trenches, doing what you know and picking up enough small tips to generate the money to be able to afford those other courses.

Don't write off the fact that a particular course costs too much so you're avoiding them forever. That would be a huge mistake on your part and I do speak from experience!

Besides, how much do College courses or University cost nowadays?

Mike Hill

[GopalG]

When it is a high end product, you will start working for it. You cannot procrastinate as you have to pay of the debt within one or two months. This is where real urgency comes and people who have been only overloading themselves are finally forced to take action. This also eliminates the ordinary tirekickers from the real wanna be Internet Marketers.