What's with The $97.00 Products in the "Make Money Online", and "Traffic" Niche?

23 replies
What’s with the $97.00 products??

Dear fellow Marketer

I fail miserably trying to understand the thinking process behind pricing a “Make Money Online” or a “Traffic” product at $97.00 dollars.

What’s the logic operating behind it?

To make it clearer to understand me, let me mention several prices for these kind of products which seem logical to me:



1) $7.00

logic:

a) the product owner wants to just make it very easy for the buyer to get the product.

b) the product might not have enough good, original or real valuable content.

c) the product owner is driving tons of traffic to the product and he doesn’t mind to make sales at that price.

d) the product owner cannot figure out a really good sales process to successfully convert sales at a higher price (eg. A good sales letter, or sales video page)




2) $ 17.00

Logic:

The same a, b, c, and d as the $7.00 product




3) $ 27.00

Logic:

The same a, b, c, and d as the prices above




4) $37.00, $47.00, $67.00, and $77.00 prices

Logic:

The same a, b, c, and d as the prices above

e) The products might have real good content, but the owner just refuses to price it any higher





5) $97.00


I can’t understand this price on those types of products for the following reasons:


a) These products for the most part are being pitched to people who are not making money online or that are making very little to even have $97.00 laying around to spend.

b) These products for the most part are being pitched to noobs who most likely will rather go out there and buy something cheaper in those niches.

c) If you feel you can price it at $97.00 successfully, why not to price the product even higher?




Again, I can’t understand the logic behind the $97.00 product in those two niches


Comments please!
#$9700 #make money online #niche #products #traffic
  • Profile picture of the author NashRyker
    I promote a $97 product with great success.

    You have to understand that there's a market for EVERY price point out there. Some people view lower priced products as not having much value, so they don't waste their time.

    Plus, the one I promote has a recurring monthly fee, so great residual income as an affiliate. I have also found that those who are willing to pay a higher price are more serious about sticking with it until they see results. Those that spend $7 or $17 don't have much invested, and are likely to get sidetracked and move on to something else right away.

    Kind of like traditional business owners. If one invests $20,000 of their own money, or borrowed money, they are much more likely to give it everything they got until it produces results. Traditional business owners don't move on from business to business like most IMers, simply because they have more invested.
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  • Profile picture of the author Jake Ong
    Hi Jake here, I would like to say something. I just graduated from unversity and I have been working part-time job since my studies ended. I am still looking for a good prospect job( I mean my career path) for a few months but to no success. As I have been earning from my part-time job, I have cash to spare for great opportunities. I know I need to try something different to get exposed to new stuff. I will buy a $97 product if the sale letters really promised a lot of stuff for education purposes. That's how i see things. I have paid so much for university fees and still get me no where for months, so why can't i try a $97 products that promises something more beneficial to me? (Not a question but a question to set you thinking). Thank you.
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  • Profile picture of the author Malachi Kelly
    When you create a new product there is no price. The value of the product is just how much someone is willing to pay.

    You may start of selling your front end $27 $47 and $67 on a a/b/c split test. Send 300 visit 100 to each page. The price with the best conversion rate is now the control.

    Change some of the copy and test again. Once you've increased the conversion rate test price again.

    In essence as a business owner as long as the product or service is of high quality you should get the highest price your customers are willing to pay.
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    • Profile picture of the author TheGraduate
      Originally Posted by Malachi Kelly View Post

      When you create a new product there is no price. The value of the product is just how much someone is willing to pay.

      You may start of selling your front end $27 $47 and $67 on a a/b/c split test. Send 300 visit 100 to each page. The price with the best conversion rate is now the control.

      Change some of the copy and test again. Once you've increased the conversion rate test price again.

      In essence as a business owner as long as the product or service is of high quality you should get the highest price your customers are willing to pay.
      I agree with part of what you say
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  • Profile picture of the author Jake Ong
    Hi Jake here, just to let everyone know. I can't PM anyone because I haven't hit a total of 50posts. I am sry. I am definitely open to advise. Thank you.
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  • Profile picture of the author CDarklock
    Originally Posted by TheGraduate View Post

    What's the logic operating behind it?
    "If I price this product at $X, then Y people will buy it and it will cost $Z to fulfill the orders."

    Projected profit is $((X * Y) - Z).

    X and Y are inversely correlated. When you increase X, Y tends to decrease. When you decrease X, Y tends to increase.

    So you test some things, and you see how things work. I put Zombie Blogging out for sale at $37 list with a series of discount codes advertised in different venues. After a couple of days, I looked at the sales stats, and determined the two most profitable price points: $17 and $7. The higher one went on the sales page as "list price" (MSRP, if you will), and the lower one went in the WSO and on the discount codes.

    Oh, and all the existing customers had cost recalculated from our records and a partial refund was issued if they paid more than they should have. Always take good care of your customers; we're entirely within our rights to chop the price of our product in half the day after you buy it, and not give you a dime... but that doesn't make it the right thing.
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    • Profile picture of the author Daniel Brock
      You ever drive around in poor areas?

      You notice how everyone still has $200-$300 dollar cell phones and pay $30-40/m for the service?

      Surely if they can afford to pay for a commodity like a cell phone, paying $100 for a course that could possibly change their life forever shouldn't be too hard to convince someone to do...

      Which is why my next product I am releasing is going to be in the $97 price range.
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    • Profile picture of the author Dhira
      Originally Posted by CDarklock View Post

      "If I price this product at , then Y people will buy it and it will cost to fulfill the orders."

      Projected profit is $((X * Y) - Z).

      X and Y are inversely correlated. When you increase X, Y tends to decrease. When you decrease X, Y tends to increase.

      So you test some things, and you see how things work. I put Zombie Blogging out for sale at $37 list with a series of discount codes advertised in different venues. After a couple of days, I looked at the sales stats, and determined the two most profitable price points: $17 and $7. The higher one went on the sales page as "list price" (MSRP, if you will), and the lower one went in the WSO and on the discount codes.
      Only to a point.

      Perception matters.
      If you price it below $7... you may not get any sales.
      Likewise over $100... depending on if it's perceived to be valuable or not...
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  • Profile picture of the author petelta
    The higher the price the more valuable outsiders look at it. Now, you have to deliver on your price tag to be able to have a strong following, but if you provide enough useful information for someone they will gladly pay $97.

    Tim Ferris has a great section on one of his books about pricing your products higher. Less sales needed to make your day go the same. I would rather sell 2 $97 products a day instead of 29 $7 products.
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    • Profile picture of the author Chris Pambos
      Very good points contributed in this thread. A response that caught my eye was the one in regards to how one should always be split testing, this is something a lot of marketers simply fail to do.

      By split testing your price points while split testing sales copy, after you've gone through some extensive testing, you'll be able to locate a price point that gives you the best conversions with your existing sales copy which is the price point you'll want as it would most likely be the highest price point that your target market is willing to pay for.

      Today though, countless marketers simply follow what more experienced marketers are doing, rather than coming up with a price point and trying to create an offer that matched that price point in value, people will just create their offer first instead and then give it a price point they think their offer is worth.

      Not the way to go...
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  • Profile picture of the author onlineballa
    I really don't understand why people price products at $7, I guess they spend one hour writing up an ebook and sell it for $7, but why not spend 1-2 days (at least) working on some quality content that people will enjoy and use, and you will make a lot more profit. The only reason I could see by selling a cheap product like that is to build a list?
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  • Profile picture of the author TimG
    Right now I am finding a comfortable price point of $47 - $67 for IM products with the intention of moving into higher price points ($97+). These are not counting WSOs where the highest I prefer to go is right around the $37 range.

    What I am noticing for other products outside of the IM niche is a small decrease in price actually works better.

    For example, I have a prevent yeast infection product which was not selling at all at $37 but when I dropped the price to $17 it started selling. Right now I am testing $14.95 to see if it converts any better. The only real drag at those low price points is finding affiliates to actually promote the product (my experience only).

    Keep in mind that some people may price products at $7 because it may be a component of a much bigger product. So, as they finish one section they sell it for $7 and make some money while they work on another section. Ultimately they could end up selling 7 or 7 sections for $7 each and the final product for $47.

    Respectfully,
    Tim
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    • Profile picture of the author Jesus Perez
      Originally Posted by TimG View Post

      The only real drag at those low price points is finding affiliates to actually promote the product (my experience only).
      Tim,

      Add an upsell/OTO for a bit more and give the affiliate a nice cut.
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  • Profile picture of the author Daedric
    Apparently, the number 7 has a physiological effect on potential buyers.
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    • Profile picture of the author primhuman
      It's about psychology -->

      I would sell anything ended with 7

      $27
      $17
      $297

      It's human nature. I dont know but it works ..

      regards,
      Primhuman
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  • Profile picture of the author Dalton Dewar
    There is a reason why they have 99 Cents discount stores, Walmarts, Saxs Fifth Avenue....buyers needs can be met at either price points. The question is do you want to position yourself as the Walmarts or the Saxs Fifth Avenue...you can win either way!

    Dalton
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    • Profile picture of the author ADAMw3
      Originally Posted by Dalton Dewar View Post

      There is a reason why they have 99 Cents discount stores, Walmarts, Saxs Fifth Avenue....buyers needs can be met at either price points. The question is do you want to position yourself as the Walmarts or the Saxs Fifth Avenue...you can win either way!

      Dalton
      I agree with this comment, however, the Walmart model requires a boatload of traffic. Not many people have traffic generation down that they can make a living selling $7-17 products.

      I truly believe the price points do depend on your niche. The marketing niche is willing to pay more because they know they could potentially make the money back.
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  • Profile picture of the author Andyhenry
    I don't understand why you've chosen to justify all other price points and pick $97 to have a problem with...

    It's all about giving people what they want.

    Some people will want something at that price point - so why wouldn't you give them something?

    There's a reason why car companies have a wide range of models at different price points. Some are to do with addressing different functions but they also have a strong focus on trying to give people in all budget ranges something with a value to fit.

    If someone buys your stuff at $47 - they may well buy your $97 - or something for $497 or $997.

    It doesn't make sense NOT to have something at a price point that some people want to pay.

    Obviously depending on your product/service you need to be able to deliver on the perceived and stated value you're offering, so it's all about messaging and value.

    There's no particular reason to have $97 and not something higher and lower if you want to address your entire market, so conversely it wouldn't make sense not to have something unless your research said no-one would buy it - which isn't the case in IM.

    Andy
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    nothing to see here.

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  • Profile picture of the author Shaun Lee
    $97 is just below $100.

    $97 - 2 figures.
    $100+ - 3 figures.

    It's all about psychology, in my opinion.

    -Shaun
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    • Profile picture of the author Sandor Verebi
      Hi Andy,

      You won the homerun.

      The effective market demand has many-many segments. People have different wants and different wallets. The wise marketer know this, therefore s/he will give what purhasers want.
      The example of the car companies is appropriate.

      Regards,

      Sandor
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      • Profile picture of the author Vanquish
        A higher price point = higher perceived value as well as distinguishing yourself from all the other marketers who sell at lower price points.
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        Nothing to sell, only value to give and new knowledge to learn.
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  • Profile picture of the author SeanSupplee
    A higher price point puts it in your mind its better then that $47 dollar product. Plus I try and stay away from promoting the lower cost products now as it takes just as much effort and time to make a $47 sale as it does a $97 sale and improves my income on clickbank. In fact some products with the lower price point I will promote if they have back end offers. I know fast track cash does by ewen and that ones been exploding in conversions on the $97 back end offer hitting me around $100 per sale.
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  • Profile picture of the author TheGraduate
    Thanks everybody for the replies, I guess I have some thinking to do about the $97.00 price tag on products in those two niches I mentioned.

    Cheers!
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