When, is it a Case of Diminishing Returns, Want to Discount My Introductory Offer,But By How Much?

5 replies
Hi,

THIS IS NOT AN AD, THERE WILL NOT BE A LINK TO MY WEB SITE, I JUST NEED YOUR INPUT ABOUT A PROMOTION, INTRODUCTORY SPECIAL WE ARE PLANNING AND WHETHER YOU THINK IT WILL WORK, AND IF NOT,YOUR INPUT ON HOW TO ACHIEVE OUR END GAME. THIS IS NOT AN AD !!!!! IF YOU WANT TO PARTICIPATE IN THE INTRODUCTORY SPECIAL WE ARE TALKING ABOUT, suitable if you are a real estate agent, salesperson etc PM ME AND I WILL BE HAPPY TO SHIP YOU A FREE COPY ( hope that is not against the rules


I am launching a new web site with my own software program and related products. We have been working on this project for over 3 years and have invested a lot of time and money. Its launch time and we are looking for ways to get our name and product out there.

I am prepared to heavily discount our program, which will be a combination of our software program and additional products, coupled with weekly and monthly eBooks and follow up materials.

We are initially targeting the Real Estate Industry, Brokers and individual Realtors.

I have spent a great deal of money to this point,but the well has run almost empty. I am prepared to offer up a a lot of free software programs and additional products, as much as I can afford to get us over the hump and known in the Industry.

I need a promotion, Introductory offer that will get some money in the door, but be an offer that will get us off the ground.

I would like your opinion on this Introductory Special.

1. regular price for our monthly package is 37.00 a month

2. A single agent in an office signs up for a monthly package, gets a special intro price of 27.00 a month

3. This agent gets an immediate deal, they get the one time branding set up charge of 60.00 for free, for signing up, no contract, can cancel at any
time.

4. The agent that signs up, gets two coupons, that allows them to give them to two fellow agents that entitles THOSE agents to free monthly packages for 3 months. the two free packages are exactly the same as the package that first agent is receiving, not a lesser package or with less options etc. these agents also get the immediate free branding for their accounts, another savings of 120.00

5. At the end of the 3 free months, the two agents can sign up, or walk, no harm, no foul.

The thought process behind this special is :

I need some revenue to continue, the first monthly agents 27.00 a month lets us keep the doors open.

By giving two free packages for one paying one, I am increasing my visibility in the same Realtor office and I believe that will help me sell with in that office, the classic loss leader.

Real Estate agents in the same office are a tight group, they already have a cluster of friends that they know and confer with, this offer plays into that and its not a stretch for any single agent to have two buddies to pass this deal along to.

I am prepared to heavily discount to get some sales now, that also is the idea behind this Introductory Offer. I am also afraid of the risk of discounting too much and lessening the value of the program in the eyes of my target market, which is always a risk when you come out discounting. Then there is the looking desperate for sales syndrum

The end game is to get some sales in, keep the door open. get out into our marketplace and get an agent of two into as many offices as we can and gain some traction.

What do you think ?

Regards
Bryan Beckstead
#case #diminishing #discount #introductory #offer #returns
  • Profile picture of the author panic
    2 things:

    1. Freemium model is one of the best internet marketing business models, so don't worry about pricing too low to begin with. The key is to do some split testing to determine what is working the best...try a few different pricing models and you will quickly get a feel for how to make the most money.

    2. That was way too long of a post...you will get more responses if you write less.
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    • Profile picture of the author BBryanB
      Thanks for the input, from a fellow Canadian

      Bryan
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      We are launching our opportunity now. Based in Vanada, looking to exspand through Affiliates, https://localmarkethubs.com/affiliates/

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      • Profile picture of the author Andrea82ss
        i think you should think about a new business model... give a basic product for very low price, just to recover the cost and then offer a good OTO...

        You will be amazed by the results!
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  • Profile picture of the author Sid Hale
    Hey Bryan,

    Have you thought about setting up an affiliate program (instead of discounting)?

    Just as an individual realtor can likely pass on a couple of "3 months free" coupons to other agents in his office, an affiliate in your niche can easily reach many more prospects than you can on your own.

    Set your commission rate at $10/mo (so the affiliate is getting about 40% on a recurring basis), and you still get the $27/month that you need.

    You might want to hold off on the "3 months free" coupon, until you see how well affiliates can do without offering that extra. You will be getting much more exposure for your product (along with many more sales), even at the normal price, and you may find that satisfied customers will refer their buddies to your product - even without the introductory coupons.

    Now those sales referred by your customers - bring in $37/month. They are paying the same price, just no commissions to be paid. It's typical "word of mouth" advertising, and shouldn't require an extra incentive, if your service is worth the price.

    Later, if you feel the need, you can offer the membership with a free trial period - and let your affiliates send out that offer. The affiliates should love it, because it's easier to "sell", and it's recurring income for them once the free members begin paying the monthly fee.

    Hope this helps,
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    Sid Hale
    Coming Soon... Rapid Action Profits (Pro)

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    • Profile picture of the author BBryanB
      Thanks to Sid Hale for the comments. You made some good points. I will try to use them.

      Thanks
      Bryan
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      We are launching our opportunity now. Based in Vanada, looking to exspand through Affiliates, https://localmarkethubs.com/affiliates/

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