A Question About An Offer

by Mark Singletary 10 replies
I've always been a straight-up kind of guy with simple pricing for my offers. However, I want to try a different approach on something new I'm working on.

But, I need a little insight because I have a mental block about how to approach this. In fact, I'm losing hair and sleep big time trying to figure this out. And, it shouldn't be this way. I've done this plenty of times before but I think I'm too close to this offer because it's something I'm passionate about that I've been fiddling with for a looong time and am finally ready to take it big.

I have 3 offers. I also have tripwires and higher priced upsells planned but getting this core offer right is what is killing me right now.

1. Lots of helpful, valuable written content and other tools on my topic. 1x price of $37. This is the "fake" offer.

2. Everything in #1 plus 6 seminars. 1x $47 This is an introductory priced offer and after I've worked out the kinks, the price will go up but not sure if it will be $20 more or $100 more right now.

3. Recurring membership which includes everything in #1 + all future content (there will be a lot - the equivalent of 3-4 #1s yearly) + 2 seminars a month + extra lessons not included elsewhere $29-$39 monthly recurring.

I really want people to choose #3 because with the nature of this topic, they will likely stay members longer than average. But many won't want to commit to a recurring package without some trust or experience with us. I'm planning on some tripwires but trying to nail down this part first.

The easy way may be to compare apples and oranges between #2 and #3 and leave off #1. But #1 is there to make the other 2 options look better.

Thoughts on how this could be presented without overwhelming the user thereby making no decision their decision?

Thanks in advance.
Mark
#main internet marketing discussion forum #offer #question
Avatar of Unregistered
  • Profile picture of the author GordonJ
    Originally Posted by Mark Singletary View Post

    I've always been a straight-up kind of guy with simple pricing for my offers. However, I want to try a different approach on something new I'm working on.

    But, I need a little insight because I have a mental block about how to approach this. In fact, I'm losing hair and sleep big time trying to figure this out. And, it shouldn't be this way. I've done this plenty of times before but I think I'm too close to this offer because it's something I'm passionate about that I've been fiddling with for a looong time and am finally ready to take it big.

    I have 3 offers. I also have tripwires and higher priced upsells planned but getting this core offer right is what is killing me right now.

    1. Lots of helpful, valuable written content and other tools on my topic. 1x price of $37. This is the "fake" offer.

    2. Everything in #1 plus 6 seminars. 1x $47 This is an introductory priced offer and after I've worked out the kinks, the price will go up but not sure if it will be $20 more or $100 more right now.

    3. Recurring membership which includes everything in #1 + all future content (there will be a lot - the equivalent of 3-4 #1s yearly) + 2 seminars a month + extra lessons not included elsewhere $29-$39 monthly recurring.

    I really want people to choose #3 because with the nature of this topic, they will likely stay members longer than average. But many won't want to commit to a recurring package without some trust or experience with us. I'm planning on some tripwires but trying to nail down this part first.

    The easy way may be to compare apples and oranges between #2 and #3 and leave off #1. But #1 is there to make the other 2 options look better.

    Thoughts on how this could be presented without overwhelming the user thereby making no decision their decision?

    Thanks in advance.
    Mark
    Why 3 offers? It reads very messy. Some options: give #1 away. Within #1 a call to action for 2 or 3. If they have value, you don't need the comparison to make them look better.

    It sounds contrived, with tripwires and all. Who are tripping into what? If you are straight up, get rid of all that persuasion nonsense and find the people with the money to pay for and who appreciate what you have.

    OR, give half of #1 away and offer a choice in it to get either part B or C. Different choices which helps you qualify them, you want to get to the long term members quicker and use one of those choices to focus on people who get the benefits of memberships.

    Call them the C choice, the B would be seminar oriented people.

    Of course, the testing will show you, but I'd eliminate some of the slop and mess and confusion and cut to the chase for the recurring membership, with a DOWNSELL for the taste of seminars.

    After FREE, you might offer a small priced option for either D or E. Or if you are going to offer the lead generator for a cost, maybe a dime sale of holiday discount, but getting them to raise their hand first, before you take a dime, has worked for countless IM strategies.

    It is what you OFFER within your freebie, the CHOICES you give them (which you control) that will get you to the customer you really want, the membership recurring payment one. But, just my opinion.

    GordonJ
    {{ DiscussionBoard.errors[11310928].message }}
  • Profile picture of the author Jason Kanigan
    No problem with what you're doing, it's called anchoring and I'm sure you know that (but I'm saying it for the benefit of the ladies lol)

    I usually present such things in a simple three column table.

    Hey, um, this might be a good post to check out: https://www.warriorforum.com/offline...-go-offer.html
    {{ DiscussionBoard.errors[11310939].message }}
  • Profile picture of the author Steve B
    Originally Posted by Mark Singletary View Post

    I really want people to choose #3

    Mark,

    If you really want your people to choose #3, then give them a recurring offer they can't refuse.

    Here's just one possible twist on the usual recurring membership model that I've seen that helps to overcome the objection of "never ending" payments that many people have.

    Decide on an amount of money that you would be happy with as the "lifetime" value of the recurring payments for your membership. It also has to be something that is a good and reasonable bargain or value for the money for your subscribers.

    In this regard, most of the anecdotal evidence I've seen suggests that in a typical membership model, subscribers stay an average of 3-4 months. That being the case, and assuming 4 months at your figure of $40/month, you would be looking at $160. Of course, some will stay longer and some will leave earlier.

    The "twist" I'm talking about consists of two variations:

    (1) make your recurring payments on a decreasing scale ending in no monthly payments but continued membership. Start with the lifetime value number (that you're happy with) and work out a decreasing plan. So in our $160 example, maybe you charge $50 in month one, $40 in month two, $30 in month 3, $20 in month four, and $10 in month 5 (the final payment). From then on, membership is free. Your total earned is $150. Of course, the psychology involved makes monthly payments more palatable (decreasing with a goal of "free" membership at the end).

    (2) instead of giving your products away (free with membership), sell them to the public at an established price, but give your member subscribers a substantial discount - like maybe 50% off. In addition, you might even consider giving "lifetime" members (those who reach 0 payments) an even greater loyalty discount - maybe 75% off all products.

    By charging a fee for what you would otherwise be giving away in a monthly payment scenario, you are effectively increasing the lifetime value of your members without it being a membership fee - they are deciding what they want to buy from you. If the products you have are valuable and your members are passionate about the niche, they will look forward to buying your products with their special membership and loyalty discounts.

    As you know, recurring memberships are sometimes a tough sell - but with these twists applied, there is incentive realized on a monthly basis (decreasing fee every month) and a "worthy" goal to reach at the end (free membership). But your revenue doesn't stop when the members have finished their payments. They will stay members and you can sell them many other offers over time. Here's the key: having a growing and loyal base of "member buyers" is a goldmine, even if you are not making a monthly fee from them.

    Just something to think about ...

    Steve
    Signature

    Steve Browne, online business strategies, tips, guidance, and resources
    SteveBrowneDirect

    {{ DiscussionBoard.errors[11310940].message }}
  • Profile picture of the author JohnMcCabe
    Mark, here's another variation to think about. It's worked on me, and I'm not easy.

    You set the monthly membership at $49. You do one sample seminar for free, and conclude with a true OTO of membership at $29/month for as long as they stay. If they don't take the OTO, or they drop out and want to come back, the price is $49 (or whatever you raise it in the future).

    As long as you provide ample value, people will stay on to avoid "losing" the lifetime discount.

    (In my case, a big part of the ongoing value is access to people I might not otherwise be able to reach, along with the usual seminars, etc.)
    {{ DiscussionBoard.errors[11311051].message }}
  • Profile picture of the author Mark Singletary
    Thanks. Great advice and a "secret" or two thrown in to boot.

    Normally I'm pretty clear about what to do and just do the same things that have always worked.

    However, I'm not entirely sure why this time is different. Maybe I'm getting too old so I'm not thinking clearly or maybe it's because this is a culmination of an idea I bought a domain for almost exactly 13 years ago. I've kept this in the back of my mind all this time while I worked on other projects and now it's time to go. So, I'm emotionally invested in this topic and this dream big time so I need it to be right. I'm about to find out if the dream was ever real or just pie in the sky.

    Again, thanks. You guys never fail to deliver!
    Mark
    {{ DiscussionBoard.errors[11311117].message }}
  • Profile picture of the author DIABL0
    How about the following...

    You charge $1.00 for a 7-day trial
    The trial converts to a monthly fee of $X
    You offer an upsell / backend offer of approx. 30% discount for 1-year membership

    The funnel is...

    Opt-in -> VSL for trail -> sales cart -> VSL upsell -> confirmation -> members area.

    Reinvest all the money except the monthly subscriptions to buy traffic for the funnel. The monthly reoccurring subscriptions are your profit.
    Signature
    How to Build LARGE EMAIL LISTS on a BUDGET and MONETIZE Like a PRO
    17+ Years Exp . . . . . .. . . . . . Email - CPA - PPL
    {{ DiscussionBoard.errors[11311176].message }}
  • It's good to have a low hanging fruit offer to qualify your buyers and give them a taste of what you have to offer on the back end.

    If the free offer that you are giving away in your lead magnet delivers great value then your prospect will definitely buy your low hanging fruit offer, where you build more trust with your prospect with even greater value that you're offering.

    Once your prospects have built a relationship with you with your first two offers, then they might be more receptive to buying your membership programs/inner circle or what ever monthly recurring/continuity product you are offering.
    {{ DiscussionBoard.errors[11311303].message }}
  • Profile picture of the author Tony Marriott
    I believe, in your original example you are using a well know technique of offering three versions of your product (on the same sales page). i.e.
    1. Very low offer that you don't expect people to take.
    2. A high priced offer with realistic good value
    3. A slightly higher priced product that has so much more value than #2 that it almost a no brainier (even if the buyer doesn't actually need all the extras).
    The issue with your three offers is that the first two are one-off pricing and #3 is a recurring. So apples and oranges as you have already pointed out.

    It does work well and from my experience you will get 90% or better buying the top offer.

    I confess I have never tried this with a recurring price but many SAAS systems do and it seems to work for them.

    Therefore my suggestion would be to try and make all the offers recurring. #2 is easy to make a recurring offer from. Just change #1 to be a very basic recurring offer.

    That way you are comparing oranges to oranges.

    Also you should consider testing the options. You don't have to stick to the plan you started with. And once you open your mind to the fact that you can change things down the line you should find decisions are easier to make and you can get to market quicker.
    {{ DiscussionBoard.errors[11311704].message }}
  • Profile picture of the author Shamim Ahamed
    I think (2) option is may be wright
    {{ DiscussionBoard.errors[11312688].message }}
  • Profile picture of the author colmodwyer
    Have you tried increasing the price of #1 and #2? Right now, #3 is a significant price jump in my mind. So it looks quite expensive by comparison.

    Another idea...

    What is your average retention rate of people on the monthly offer?

    Let's say people typically stick for 6 months... then you can let people "Buy Now" for 6 x 39 and give them a year's subscription, so you compare pricing to 12 x 39... i.e. they get an instant 50% discount for paying upfront, and you're still getting your avg order revenue.

    I think you'd just want to test this as the only two choices to keep it simple.

    Cheers,
    Colm
    {{ DiscussionBoard.errors[11313244].message }}
Avatar of Unregistered

Trending Topics