There Is Method To Their Madness - Loss Leaders

5 replies
Hey warriors,

On a typical day I can come across many products such as make $$$$ in days, months etc and then they are being sold for $7 or some crazy low price...

Then come the comments that if someone is making $$$$ then why are they selling it for such a low price surely it cant work!

Well why not?

Most of these products could be simply what is called 'Loss Leaders' in order to introduce a customer to their services and higher priced items.

It doesnt mean that the product being sold wont work, it could be simple as I said a way of getting a customer into their marketing funnel.

You should see it all the time in your day to day lives.

Supermarkets do it all the time along with other business, have a great item and sell it at a really low price its these products that they know that they are ultimately losing money with but in the long run they get enough people in the door that typically a customer will buy other items along with the loss leaders therefore still making profits.

Just a thought to keep in mind.
#leaders #loss #madness #method
  • Profile picture of the author ATAC
    Haven t you ever heard of a sales funnel?

    It's not what they make on the front end product it is the life time value of the the buyer lead that was generated buy the sale .!

    They would be fools if the product did not live up to what it states it does! The money is made on the back end only buy providing value on the front end which is the $7 product.

    The $7 product should be their best and highest of quality if they know what they are doing ..
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  • Profile picture of the author alvinhy
    Its all about the backend marketing. Even though if it seems like people are losing money up front, they are actually making big bucks behind the scenes.

    For example, I created a training course for free. But I make money from the backend.
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  • Profile picture of the author JensSteyaert
    Yes that's correct, people sell a low priced product on the front-end to get buyers on their list, and then sell higher priced products in the backend.

    It's a strategy that works very well.

    Just ask yourself, why would somebody give 100% commissions on the front-end and sometimes even 100% on the OTO? That's because most money is made in the backend.
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  • Profile picture of the author daym
    Well, selling a xxxx$/day method for $7 would definitely sound weird and makes no sense. But, I do agree that some of methods do work and are of great quality. However, from my experience, the seller doesn't tell you his "real" secret. He'll just give you some pieces of the puzzle and at the end, you have to figure it out.
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  • Profile picture of the author seobro
    It is like an 99 cent e-book that introduces potential customers to your products and services. This strategy I call the dollar menu. It is better than a free e-book no one reads because it weeds out the freebie hunters and give you hot prospects. Best of luck to you.
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