Lower paid products are not worth it.

Hi

Interesting so you wan't have any low ticket products in your sales funnel then, how do you think this would effect your traffic through your funnel to the higher backend products?

Are you running a free opt-in product as a list builder instead?

Thanks for the share...

Hadn't factored anything in to my figures for descrepencies with payments.

Thanks

Offline Whisperer

Hey Thomas, what's the conversion of low ticket subscribers into higher end products or services?

I don't think that's there's any doubt that price point is a determining factor in the quality of the client. However, there will always be a percentage of prospects who take advantage of our entry level memberships.

Have you tested raising the price of your lower priced membership site to see if this boosts your retention rate?

I've heard more experienced Warriors saying the same. Sometimes, even if you come up with a strict Refund Policy, it still isn't worth the effort battling with serial refunders via PayPal.

I agree with you OP. I say go big or go home. If people are willing to pay a prettier penny, it'll benefit the both of you more in the long run.

as gary halbert used to say... sell the foxes weed the dogs. with that said i think price points are an important factor depending on where you advertise and the niche you are in. for me i see that many people in internet marketing niche are jaded and scared to spend big amounts right up front on the first contact (which is why webinars work) which is a more intimate setting. then again you can only run the same webinar to the same people so many times.

solution... charge them for the privilege to provide content and to sell them. so many people up front think this is the WRONG thing to do. but if you provide good value to those there just for the little stuff... its all good. think about it...

no one complains that they have to PAY disneyland for the priveledge of eating overpriced crappy food and going to tons of shops to buy stuff.

no one really complains about the previews before a movie you already paid for.

this is a good route to go and saves you from one (high price only) business model. trust me on this as i used to think i had to have only high ticket stuff too (which i did well with) but now i have a nice monthly deal building up and lots of customers upgrade because of the value i provide.

moral of the story... put your best foot forward to get them in your funnel... if you think it should be $197 a month... make it $37 (grit your teeth and make it hurt) they will see your value and get more stuff.

AND having the lower end funnel helps lower refunds on higher priced stuff because they have had a taste :0) and know what they are getting into.

just my 2cents from experience.

I don't want to say that it is all about Quality vs Quantity of clients.
For me -I'd still go for that free opt-in/list building techniques and do some testing of my own.

One important point: in this Internet Marketing industry trust is hard to achieve with all the those hype floating around. You won't be able to get sales or even opt-ins not until you offer them somethin' free and show them who you really are once they are subscribed.

Cheers!

Based on my own experience, I must agree: I always get better EPCs selling fewer copies of a $100+ products than more copies of a $27- product, plus you get a "better quality" customer base: less newbie, less customer support, fewer refunds, etc.

You've just figured out what some of us old school business owners have known for some time now. This is pretty much the way it goes whatever your doing in business.

Agree mate. I'm fairly new to the whole IM scene, so my price ranges are usually around $30-$100 (for now).

But, I wanted to do a WSO, just to give Warriors a nice offer for one of my business models. I fixed the price at $7 (public value $47), and for that I was called a thief, I got bigger refund rates than ever before, I got more upfront questions and support issues than any other time.

So yeah, no good deed goes unpunished and low-ticket products are not the way to go if you're serious about your business and your clients.

Also ...besides the perceived value, that's a great plus, high-ticket prices are attracting action takes who make it work. Unlike those "nickel and dimers", that only blame you for their laziness.

Regards,
Dan

Why not sell it or flip it, if it has active members and makes money?

Do you offer a course or recommend a WSO/product detailing how to set up automated webinars and monetize them?

Mahlon

Good share thank's man!, so ur just gonna stick w/the higher end monthly membership sites!, good idea & yes there are way too many freebie seekers out there & becomes tiresome...........

Yes. You are right. Price is not the selling point. But now we all are living in the competitive world. We need to compete with each other. No matter how much good your products are if the price is so high then you would not get the right amount of feedback. This reality. Just adjust your price with the current condition of the market. Best of luck.

You're absolutely right.

For the longest while, I was selling $10 ebooks (that were damn fine quality by the way) and didn't make chicken scratch. Even though I was selling a boatload of books, I didn't make jack.

Especially since I love to HOOK MY AFFILIATES UP with a sweet >=50% commissions.

But guess what?

Even if you sell thousands of books, you're still not making any real money.

Especially when you consider affiliate cutbacks, vendor cutbacks, etc.

Of course you can rely upon the backend, which is where the real money is made, but instead; focus upon high end products to begin with.

Imagine your backend in that situation?

Thomas, I too have found that at the higher price points the complaints are far fewer. I believe this to be true because the person who realizes that they need something (like my coaching, for example, which is NOT cheap), are of a different caliber than the person who has no idea what they want or need and buys every WSO they can get their hands on. Having said that, I think that a low priced offer is a great way to introduce a prospective client to your higher priced offerings and should not be ignored. It is the entryway to your sales process. The last point is that you could skip the low point offer entirely and go with a freebie report that is related to your high priced offers. You will get a lot of low quality people on your list, but you also won't have to deal with a $7 product anymore. In this case, your autoresponder series will do the talking/selling for you.

While you are selling your product for $100, you can also add some new products on the back end for $200-$500. This is called UPSELLS.

Good for you that you decided to charge more per customer because just like you can get someone to open their credit card and pay $30 for your program, they would be also willing to pay $100-$500.

Interesting. However I do not have that experience.
My price point is around $30.

I have had only five chargebacks since 2005 and two unauthorized payments. I won all of these except two. So not a big problem.

My customers are mostly monthly members. I get maybe ten support tickets in a month.

So it may depend on product more than price point.

Hell yeah, better customers, no complaints, no refunds...

Shoot. I'd rather sell 1 or 2 of my 14k programs a month than deal w/ people who after spending next to nothing do nothing but bitch about everything.

Plus, at higher prices you can focus on delivering massive value to just a select few instead of trying to appeal to the masses.

I will say I do use free for list building... but after that I'm really upfront about what to expect if you're on my list and encourage people to unsubscribe if they can't deal with it.

Have you tried just charging more for the membership? I've found ~$50ish to be the sweet spot where the nickel and dimers fall off. Plus you only have to sell half as many memberships to keep the same level of income. If you're going to ditch it anyway, it can't hurt to try.

Scott

@Thomas - my 2 cents...... We've been building a strong IM list for a year now and we've found that the price is (almost) irrelevant. With our list at least, quality & value of the offer(s) matter. Again, we're fairly new in this space, so I cannot assume that this rule applies to everyone and every audience. However, I'll only recommend a product/offer to our fans if the quality and value of the product far exceeds the actual retail cost. In other words, we focus on actual offer value, whether it be a one-off or membership etc, and the buyers determine their own budget. This is our perspective as both affiliate marketers and product/content creators. Unfortunately, there will always be chronic refunders and cheaters - in every business and market.

great advice, I too believe that it is better to sell high ticket products right away only to select few who are actually looking to get results. I am testing a campaign currently where I am just given away my best training and product that I sell at clickbank worth $77 for free just to gain $1k coaching clients.

Yes, it is really important to build solid relationship with subscribers to get them to trust you as an expert and spend this kind of money if you are looking to sell high ticket products and coaching...

Yeah I agree the customer base is going to be much higher quality with the high ticket products and I much prefer selling these high ticket items or offers that lead to high ticket products as part of the sales funnel.

Also, I hear the $7 price point mentioned quite often as the value to use for the One Time Offer after a solo ad for more conversions. But it is not about the number of conversions it is about the money made and I would rather make $97 but from a $97 solo ad (and find those high quality buyers) with one conversion than make 15 x $7 sales to recoup those costs.

very good case study , i am with you in this " I never believe price is a selling point."