Bonuses Bonuses Bonuses Bonuses and...more bonuses!!! Oh my!

14 years ago

Speaking as somebody with 20+ years in traditional corporate marketing, I agree with what you are saying.

Somebody else will surely be along shortly though stating those bonuses improve conversions.

It seems as though everything improves conversions. Unless it doesn't.

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scrofford

14 years ago

I think it depends on the bonus, the value of the bonus, and how many bonuses you give away. I think one or two ORIGINAL bonuses that compliment a product is a good thing. Anymore than that, and it does devalue. Also, I think that these gurus who are giving away last years products as a bonus are just being lazy actually. Why can't they come up with something new?

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Sean Fry

14 years ago

Originally Posted by scrofford

I think it depends on the bonus, the value of the bonus, and how many bonuses you give away. I think one or two ORIGINAL bonuses that compliment a product is a good thing. Anymore than that, and it does devalue. Also, I think that these gurus who are giving away last years products as a bonus are just being lazy actually. Why can't they come up with something new?

Serious question then: Why would more than two bonuses devalue the product, but one or two do not? Are you positive that one or two bonuses do not alter the perception of your product?

Seems to me that if you logically look at it from that perspective, you can look at it like a spectrum. If one or two are "fine," and three is "not," then you can conclude that the more bonuses you offer, the more your product is devalued. Offer 3 bonuses, your product is devalued. Offer 4, even more devalued. Offer 5, 6 or 7 bonuses and your product is going to seem very questionable.

I think as soon as you have to offer just one bonus, "light suspicion" begins to kick in in the consumers mind. "Why isn't the product good enough on its own? Eh, it's just one bonus, so...it's probably ok." Offer 2 bonuses and then "Hmmm...." even more suspicion. Offer 3, and then they really start to wonder.

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Jill Carpenter 14 years ago

This argument won't stand a leg with Mac users.

If I get a new computer and there is a bundle added with some software, it does not lessen the value of the computer one bit.

They mix up what they toss in the deal - depending on which model you get.

If they decided to never put bonus software in there again and still sell at the regular price, I'd still be all over it.
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- CDarklock 14 years ago
  
  Originally Posted by avenuegirl
  
  This argument won't stand a leg with Mac users.
  
  Neither do most other rational arguments.
  
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  "The Golden Town is the Golden Town no longer. They have sold their pillars for brass and their temples for money, they have made coins out of their golden doors. It is become a dark town full of trouble, there is no ease in its streets, beauty has left it and the old songs are gone." - Lord Dunsany, The Messengers
  
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George Wright

14 years ago

It doesn't prove your suspicions are correct. However it does prove your suspicions are shared by others.

The school of thought on this is divided, if not down the middlee at least pretty close to it.

A very savvy Warrior has a post going right now and one great point he makes is "know your audience."

If you know your audience that is your target market or list or current customer, etc. you will know whether to offer no bonus, offer one bonus or flood them with bonuses.

George Wright

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Sean Fry

14 years ago

Originally Posted by George Wright

It doesn't prove your suspicions are correct. However it does prove your suspicions are shared by others.

No, it proved that my suspicion was correct with a very simple experiment. Did you even read the article?

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George Wright 14 years ago

Originally Posted by snowtiger

No, it proved that my suspicion was correct with a very simple experiment. Did you even read the article?

There are are articles and tests that "prove" you totally wrong. And just like your article they "prove" nothing.
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- Sean Fry 14 years ago
  
  Originally Posted by George Wright
  
  There are are articles and tests that "prove" you totally wrong. And just like your article they " prove" nothing.
  
  What? Do they prove me wrong, or do they prove nothing? Make up your mind. You aren't making a whole lot of sense.
  
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  Jill Carpenter 14 years ago
  
  I did not read the article.
  
  So if Joel Comm says it's true, then that is a definitive answer? Was every type of niche covered and every type of bonus combination?
  
  :rolleyes:
  
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  George Wright 14 years ago
  
  Apparently you didn't notice my use of the word ''prove'' is in quotes. I'll explain what I meant by putting ''prove'' in quotes. Articles and tests referred to prove nothing.
  
  Originally Posted by snowtiger
  
  What? Do they prove me wrong, or do they prove nothing? Make up your mind. You aren't making a whole lot of sense.
  
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  JohnMcCabe 14 years ago
  
  One poster mentioned marketers that sold a high-ticket package, then devalued that package by using it as a bonus in an affiliate contest. They forgot a step.
  
  Now that the original package has been devalued by being given away, the original marketer can now come out with "Big Buck Offer 2.0", and start the whole carousel spinning again.
  
  As for coupons and BOGOs, the local grocery stores are doing a fine job of conditioning my wife. Two chains in particular like to play 'dueling BOGOs' in their weekly ads. If the item is something we use, and we have room in the pantry for it, she'll hop online to a coupon site and look for a high-value coupon. Many times, she can find a BOGO coupon from the manufacturer. So she goes to the store, puts four items in the cart, and pays for one at the checkout.
  
  There are things we never buy without a BOGO and a coupon.
  
  Here's another example...
  
  If digital photography hadn't killed off the film developers, coupon madness might have. Unless it was some sort of emergency, nobody got their film developed without a special or coupon.
  
  Pizza delivery is going the same way.
  
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CDarklock

14 years ago

Originally Posted by snowtiger

No, it proved that my suspicion was correct with a very simple experiment. Did you even read the article?

The experiment was conducted within the limited demographic of coin collectors that buy pennies at auction, and demonstrated that for this particular group of people in that demographic there was a statistically significant result.

This does not even prove the result holds true across that entire demographic, let alone into others.

This is called "confirmation bias." We extend greater validity to studies and reports that agree with what we already think, and dismiss out of hand those studies and reports that disagree. This is why a large number of scientific papers out there are entirely invalid on procedural grounds (the experiments in question were not conducted properly), but end up being cited and passed around as "proof" of political and social ideals anyway.

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Sean Fry

14 years ago

Originally Posted by CDarklock

The experiment was conducted within the limited demographic of coin collectors that buy pennies at auction, and demonstrated that for this particular group of people in that demographic there was a statistically significant result.

This does not even prove the result holds true across that entire demographic, let alone into others.

However, the results are interesting. And probably repeatable in more markets.

This is called "confirmation bias." We extend greater validity to studies and reports that agree with what we already think, and dismiss out of hand those studies and reports that disagree. This is why a large number of scientific papers out there are entirely invalid on procedural grounds (the experiments in question were not conducted properly), but end up being cited and passed around as "proof" of political and social ideals anyway.

I thought someone might bring up confirmation bias. It isn't though since a) if it turns out that bonuses and freebies do enhance the percieved value, I will start doing more of it immediately b) I've also been trying to find controlled studies or experiments that demonstrate that freebies and bonuses INCREASE perceived value of the original product or the bonus and lo and behold...I can't find anything.

Nothing.

If you or someone else can point me in the direction of any scientific papers out there that clearly demonstrate that they do in fact, increase perceived value, then I'd really love to take a look.

Anyone know if Cialdini has done any studies on this?

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CDarklock

14 years ago

Originally Posted by snowtiger

I thought someone might bring up confirmation bias. It isn't though since a) if it turns out that bonuses and freebies do enhance the percieved value, I will start doing more of it immediately

But that's not even what this study was about.

It was about whether the individual products were devalued more if the bonus was referred to as "free."

And in the abstract for that paper, they made the surprising statement that it didn't have any effect on the perceived value of the bundle.

I'm not saying you're wrong. I'm saying this study doesn't prove anything.

Because they conducted exactly three experiments, one of them was about bundling several of the same product, and the other two were about bundling two different pennies and bundling shampoo and conditioner respectively.

Physical products are valued differently than info products. This study has very little application to the IM market.

Info products are about a dream, an experience, a state of mind... so what you're looking for is more along the lines of Yueying Xu's doctoral dissertation on bundling strategies in the hospitality and tourism industry:

http://scholar.lib.vt.edu/theses/available/etd-06052009-171741/unrestricted/Bundling_dissertation.pdf

That's going to give you some solid ammunition for fewer and better bonuses, but it's not going to say the bonuses make the original product more valuable. They don't. What they do is make the bundle more valuable.

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Sean Fry

14 years ago

Originally Posted by CDarklock

But that's not even what this study was about.

It was about whether the individual products were devalued more if the bonus was referred to as "free."

And in the abstract for that paper, they made the surprising statement that it didn't have any effect on the perceived value of the bundle.

I'm not saying you're wrong. I'm saying this study doesn't prove anything.

Because they conducted exactly three experiments, one of them was about bundling several of the same product, and the other two were about bundling two different pennies and bundling shampoo and conditioner respectively.

That article only mentioned using bundling shampoo and conditioner as an example of a freebie.

Anyway, the key finding for me was that when the two-penny bundle was NOT billed as including a freebie, the individual pennies all fetched higher prices. That is VERY interesting to me, especially considering I've sold tons of stuff on ebay. Ebay completed selling prices are a great measurement of pubic perception of any product, really.

And even when it comes to bundles, I actually did find a study that concluded that bonus packs (bundles) lack credence in the consumers mind.

ingentaconnect Consumer perceptions of bonus packs: an exploratory analysis

Physical products are valued differently than info products. This study has very little application to the IM market.

Info products are about a dream, an experience, a state of mind...

I agree that they are valued differently. But that is irrelevant, ultimately, at least in terms of discussing whether or not freebies diminish the value of the freebie as well as the original product - which is what I'm trying to get clear answers on.

so what you're looking for is more along the lines of Yueying Xu's doctoral dissertation on bundling strategies in the hospitality and tourism industry:

http://scholar.lib.vt.edu/theses/available/etd-06052009-171741/unrestricted/Bundling_dissertation.pdf

That's going to give you some solid ammunition for fewer and better bonuses, but it's not going to say the bonuses make the original product more valuable. They don't. What they do is make the bundle more valuable.

Thanks for the link.

Funny how it concludes that:

The study provides evidence that bundles without a discount are perceived as having very low value and consumers expect a discount, large or small, from buying a bundle. And the larger the number of products in a package, the larger the discount size consumers expect to get.

That's EXACTLY what I've experienced in sales. Exactly.

Now, I think people here are confusing increased conversions via offering bonuses with the perception of the value of the products/freebies. It's not the same thing.

I know in my life, in the offline world being in sales that offering freebies DOES increase conversions. At the same time though, I have noticed that it does seem to decrease the perception of the freebie as well as the main product I was selling, in addition to that it lowered my margin.

And actually considering all this, and considering that bonuses tend to increase conversions for most online markets, it seems to me that the best way to offer your bonuses for your product is to have your affiliates offer them instead. For some reason, I think the psychology at work is different in that case. I have no proof however.

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drmani 14 years ago

Originally Posted by snowtiger

Now, I think people here are confusing increased conversions via offering bonuses with the perception of the value of the products/freebies.

And sometimes - only sometimes - only one of those matters, and the
other doesn't!

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CDarklock

14 years ago

Originally Posted by snowtiger

That article only mentioned using bundling shampoo and conditioner as an example of a freebie.

The paper details three experiments.

- 1865 and 1901 pennies
- Two for one shampoo
- Shampoo plus conditioner

This is what they studied. This is the source of their experimental data.

Anyway, the key finding for me was that when the two-penny bundle was NOT billed as including a freebie, the individual pennies all fetched higher prices.

However, the bundles did not.

When I bundle one product with another product, I am generally not selling either product individually. In fact, it is usually my competition selling one or both of the products individually. I want the individual products to be devalued. It reduces the perceived value of my competitors' offers.

But that is irrelevant, ultimately, at least in terms of discussing whether or not freebies diminish the value of the freebie as well as the original product - which is what I'm trying to get clear answers on.

We've known the answer to that is "yes" for over 25 years. However, the paper you cite doesn't demonstrate that. It demonstrates something completely different.

Now, I think people here are confusing increased conversions via offering bonuses with the perception of the value of the products/freebies. It's not the same thing.

I think you're confusing perception of individual value with perception of bundle value. Go back and look at the original paper you cited.

Individual value of the products went down.

Combined value of the bundle did not.

People do not add bonuses to a product to make the individual products seem more valuable, but to make the bundle seem more valuable. Which is exactly what happens, and even when the word "free" is used, bundle value does not decrease.

So if the value of individual products decreases, I don't care, because that is not what I was doing.

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JohnMcCabe

14 years ago

Here's a tangent to the discussion. I think, in some cases, offering bonuses at all when it isn't normal to do so can devalue the credibility of the offer.

Some time back, my wife won a cell phone in one of the online contests she likes to enter. We didn't need the phone, but kept it as a kind of insurance in case one of ours got lost, broken, etc.

I decided to put the phone up on eBay, and to compete with some of the commercial sellers, I added a couple of accessories I had as bonuses. Since I had no upfront cost, I put it up with no reserve and a starting bid of $0.99. Before I ever had a bid, I got a question asking if it was a real phone or a dummy model.

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CDarklock

14 years ago

Originally Posted by JohnMcCabe

Here's a tangent to the discussion. I think, in some cases, offering bonuses at all when it isn't normal to do so can devalue the credibility of the offer.

One of the big criticisms I get from other IMers is that I never offer bonuses. My sales pages never say "buy this and get X, Y, and Z!" - because I simply don't think it's necessary. I believe the offer should stand on its own.

But I get an awful lot of people telling me that I really ought to be sweetening the deal with some of those MRR and PLR products I have all over my hard drive.

And I'm forced to wonder: does it devalue an IM offer not to have bonuses?

Because, seriously, I have about 20 GB of PLR and MRR products. If people really want a buttload of products, I can pass out 300 and 400 MB of downloads every time I release a product. But I just plain don't see the value in that.

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JohnMcCabe

14 years ago

Originally Posted by CDarklock

One of the big criticisms I get from other IMers is that I never offer bonuses. My sales pages never say "buy this and get X, Y, and Z!" - because I simply don't think it's necessary. I believe the offer should stand on its own.

But I get an awful lot of people telling me that I really ought to be sweetening the deal with some of those MRR and PLR products I have all over my hard drive.

And I'm forced to wonder: does it devalue an IM offer not to have bonuses?

Because, seriously, I have about 20 GB of PLR and MRR products. If people really want a buttload of products, I can pass out 300 and 400 MB of downloads every time I release a product. But I just plain don't see the value in that.

You may be right. Folks in this market have been, on one hand, hammered with the idea that you Have to offer bonuses if you want to convert. On the other hand, the people following that advice have conditioned buyers to expect bonuses and wonder why they aren't being offered.

Your mention of 300-400MB downloads reminded me of those 'be a best seller on Amazon' book launches. The ones that stick in my memory are Joe Vitale offering $10,000 in bonuses if you bought one of his books. It was just a twist on the basic list-building giveaway event, and most of the bonuses were either someone's old product or junk created for the giveaway and given an inflated value (think PDF of 'Think and Grow Rich', valued at $97).

Not long after, Mark Joyner topped Vitale by offering over $20k in bonuses if you bought his book. Same deal. If you wanted the "bonuses", you had to opt into about 150 lists, and the quality wasn't much better.

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CDarklock 14 years ago

Originally Posted by JohnMcCabe

If you wanted the "bonuses", you had to opt into about 150 lists, and the quality wasn't much better.

Hey, if anyone's considering this approach, it's a really great way to make me think you're scum and never buy anything from you ever again.

I mean, hell, why not just put all your bonuses behind CPA offers?

Actually, that could be fun. You could do a page that said "One of these CPA offers leads to this awesome product. The rest lead to various less-valuable stuff. But every offer you complete gives you a download, guaranteed." and have a script that randomised which products were under which offers.

Hm.

Hmmmmmmm.

Hey, I need to go try something.
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paulie888

14 years ago

Originally Posted by George Wright

It doesn't prove your suspicions are correct. However it does prove your suspicions are shared by others.

The school of thought on this is divided, if not down the middlee at least pretty close to it.

A very savvy Warrior has a post going right now and one great point he makes is "know your audience."

If you know your audience that is your target market or list or current customer, etc. you will know whether to offer no bonus, offer one bonus or flood them with bonuses.

George Wright

You have hit the nail on the head there. You just have to know your target market well, there's no point in making generalizations about a wide market when all that really matters is the market that you're targeting! If your target market loves freebies, then so be it - you provide them with what they want! If they want something else, you give it to them (within reason, of course).

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Paul Hancox

14 years ago

Bonuses can be useful when used correctly, but too many bonuses just devalue the main offer. I follow a certain set of "golden rules" for bonuses.

The "automatic bonus withdrawal" technique can often be effective for creating urgency, as I wrote about in this article:
The Surprising Truth About Bonuses... And How To Use Them To Create Real, Nailbiting Urgency And Fast Sales

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Sean Fry

14 years ago

Originally Posted by Paul Hancox

Bonuses can be useful when used correctly, but too many bonuses just devalue the main offer. I follow a certain set of "golden rules" for bonuses.

The "automatic bonus withdrawal" technique can often be effective for creating urgency, as I wrote about in this article:
The Surprising Truth About Bonuses... And How To Use Them To Create Real, Nailbiting Urgency And Fast Sales

I don't deny that techniques such as yours create urgency...the question is, do they lower the perceived value of the product? According to various experiments (the one I cite in the OP isn't the only one of its kind) the answer is "yes."

I'm not saying that bonuses and freebies won't increase conversions, because I believe that bonuses and freebies can increase conversions if done right, especially doing bonus withdrawal type stuff. I think you can increase conversions despite devaluing the product...my question is, is it worth it in the long run?

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Lance K 14 years ago

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- Kevin AKA Hubcap 14 years ago
  
  I think we have six in one hand and a half dozen in the other. Ultimately, what it comes to is what's the offer, what's the bonus, and what's the market.
  
  All three variables can have effect both perceptions and conversions.
  
  Regarding the report, the only numbers that matter are your numbers.
  
  As Jill stated there are many situations that don't follow those rules and I'd bet you could probably find many reports/studies stating the opposite.
  
  For me, wearing my consumer hat, I see bonuses as a good thing and don't believe that receiving a bonus lessens the value of both the original item and the bonus.
  
  As a marketer, in order for a bonus to have relevance, it needs to compliment the original product.
  
  I don't dispute what you or that report is saying but it's one situation and as you know doesn't represent all transactions.
  
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drmani 14 years ago

Originally Posted by snowtiger

I think you can increase conversions despite devaluing the product...my question is, is it worth it in the long run?

You're ALL right!

Here's why.

The strong positions taken by proponents of opposing viewpoints
on this thread reflects the assumption that everyone has the
same STRATEGY.

Here's my 'take' on this.

Snip from the quoted article in O.P.:

"When you resume selling it individually, they say, ...

Suppose X creates a product. A good one. Prices it high. Gets
a bunch of people to promote it hard. With the strategic objective
of doing a BIG launch - and then retiring the product from future
active promoting.

Or maybe just pull it out once or twice for a time-limited special
offer - made exclusively to his/her 'fans' or 'inner circle' who
missed out on the big launch.

The BIG launch built up credibility for the price point at which
the product sold (one that is at serious risk of being eroded IF
the same product were made widely available to a general public
who isn't as star-studded as those sucked in by the launch hype!)

Now... what does the product owner do with the high-priced
product, that's not intended to be sold to a mass market again,
and which retains it's aura of mystique and 'value' by being
'EXCLUSIVE'?

One choice may be just to let it gather digital dust.

Another may be to trade-off on that value perception - and cash
out simultaneously - BY MAKING IT A BONUS for another launch!

Look at how that would work.

The person buying FOR the bonus is happy - s/he just got the
main product for 'free'.

The person buying FOR the product is happy - s/he just got the
"high-perceived value" bonus for 'free'.

The product owner is happy - because no one is going to question
the REAL value of the product now... as they effectively got it
for half-price, or even less, thanks to the bonus!

Ditto for the 'bonus' provider!!! (plus, it would likely cut
down on refunds, as buyers feel they got DOUBLE value )

Throw in the 'marketing spin' ("Oh, those who bought it first
had X days/weeks/months to profit from it already" or "Those
who paid more for it before have reaped multiples in return"
and the juggernaut rolls on!)

Not all is sunshine and roses in the down and dirty world of
online marketing, unfortunately. But there's convoluted logic
at play - layered with a nice coating of spin and hype!

My 2 cents

All success
Dr.Mani

P.S. - This would work differently for offline products, or
even some kinds of online infoproducts. But I'm basing this
on the case study 'snowtiger' mentioned in the OP.
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Landis

14 years ago

Im tired of seeing bonuses that are totally irrelevant to the offer, or bonuses that claim to be "valued" at XXXX.XX price, when clearly theyre junk. The consumer isnt that stupid, especially if the prospect is also in the IM niche.

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RichardHK

14 years ago

Originally Posted by carpetmuncher

Im tired of seeing bonuses that are totally irrelevant to the offer, or bonuses that claim to be "valued" at XXXX.XX price, when clearly theyre junk. The consumer isnt that stupid, especially if the prospect is also in the IM niche.

Disagree. The consumer IS stupid. That's why these schemes continue to work. To be fair to us all, the consumer is just responding to reptilian brain stem impulses! Until we really understand and control our own brains, the less ethical IM jerks will continue to use whatever works for them.

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Leanne King 14 years ago

I am not a fan of most bonuses. First of all the "bonus" is likely to be something I already have, don't want, is out of date or is one of those peek a boo bonuses that you don't know what it is 'til you download it.

I do like bonuses that fill a need that is missing with the main product or compliment it in some way. These are the ones I'll search for before I buy.
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Don Schenk

14 years ago

Originally Posted by snowtiger

Very interesting. Being in sales for over 10 years in the offline world, I have always suspected that giving away bonuses or freebies devalued the product. Interesting to know that my suspicions were correct.

The same thing happens with coupons. A business that gives out money off coupons will, over a short period of time, train its customers to wait until they have a money off coupon. I used to see this in my retail business all the time.

That said, I did spring for Frank Kern's MC2 because Andy Jenkins gave away 2 months use of the Stompernet system, and a 3-Day (no pitchfest) seminar to those who bought through his affiliate link. Those bonuses reached into my wallet and pulled out my CC for me.

:-Don

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Sean Fry

14 years ago

Originally Posted by Don Schenk

The same thing happens with coupons. A business that gives out money off coupons will, over a short period of time, train its customers to wait until they have a money off coupon. I used to see this in my retail business all the time.

:-Don

Exactly. I've seen this happen over and over and over...

Also, I've noticed that people can get "conditioned" to expect freebies. And when you don't offer them, they start asking for them. "Aren't you going to give me a free gift? 'Retailer A' is giving away a free "X" with theirs..."

Even worse phenomenon happens in industries where it becomes common knowledge that you can negotiate with the retailer...but that's a different topic.

Thanks

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Chris Worner

14 years ago

Maybe I am strange, but I find the more bonus's I am offered the less appealing the offer seems to me, makes me wonder why they are going to soo much effort to try and bribe me to buy the product if it is as good as they say the product is in the first place.

This negative mindset is also re-enforced when I receive emails from 50 other marketers trying to do the same thing, if people are that desperate to make sales then the product mustn't be any good.

Call me strange
Chris

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Loren Woirhaye

14 years ago

Originally Posted by Chris Worner

Maybe I am strange, but I find the more bonus's I am offered the less appealing the offer seems to me, makes me wonder why they are going to soo much effort to try and bribe me to buy the product if it is as good as they say the product is in the first place.

This negative mindset is also re-enforced when I receive emails from 50 other marketers trying to do the same thing, if people are that desperate to make sales then the product mustn't be any good.

Call me strange
Chris

I tend to think the same way. I'm suspicious of the extravagant bonus for
the Clickbank products especially. It tells me there's some continuity offer
in there and also makes me expect the product will be regurgitated crap.

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Daryl Lim

14 years ago

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kiefer

14 years ago

Originally Posted by Daryl Lim

I feel that bonuses are most of the time overrated.

Sometimes, I see e-books giveaway being valued at '$997!'.

This is total B.S, of course.

Usually if the bonus truly has value, it will work. IMHO these are a few ways to make your bonus hot even if it isn't :

- A good graphic
- Listing down true benefits
- What the reader will directly benefit from
- A realistic monetary valuation
- A promise from you

Sometimes though, like what RichardHK says, consumers can be stupid to the core and believe your BS valuation of $99999 for a measly ebook!

I have noticed the phenomena of affiliates over-valuing a bonus to the point where they completely lose credibility.

But are consumers stupid or just extrinsically motivated to very high level?

The Law of Perceived Value is definitely in full swing when it comes to product bonuses.

Thanks

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CDarklock 14 years ago

Originally Posted by Daryl Lim

Sometimes, I see e-books giveaway being valued at '$997!'.

This is total B.S, of course.

I've always wanted to use completely ridiculous values for bonuses, claiming that each of the MRR and PLR products in the bundle is worth "$14,987.53!" or something, and then at the end add it all up to some astronomical number in the hundreds of thousands...

Than say "Okay, honestly, I downloaded these from a membership site that costs me $20 a month. They're probably worth a buck or two each, and about $10 altogether."

On some level, I think the public craves this. They understand the bullsquat. They know it's there. They expect it. You say "this is a $47 value" and they know damn well it isn't, because if it was you'd be charging $47 for it. That's what "value" means. But everyone does it, and you're just like all the other marketers, so you'll do it too.

And at the same time, they just wish someone would say "okay, honestly, I just got this crap cheap and can't sell it." They want that honesty, that authenticity, of just shrugging your shoulders and telling them the truth. Even though it isn't textbook marketing.

I really do think this is a "master key" to modern marketing. Just like the whole anti-guru stance where you take great pains to NOT be a guru, and make the gurus "those people over there" so you can be different.

I think the Next Big Thing is to be different from the gurus without having to insult and degrade them as frauds and shams. To say "they're fine, they do this thing, it works - but it doesn't work for everyone, and what I do is different, so if that thing's not for you maybe try this for a while."

I'll shut up now.
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- drmani 14 years ago
  
  Originally Posted by CDarklock
  
  You say "this is a $47 value" and they know damn well it isn't, because if it was you'd be charging $47 for it. That's what "value" means.
  
  And that's why it works so POWERFULLY when you can link your
  bonuses to their SALES PAGES where anyone can see for themselves
  that you are really SELLING that bonus for the price you're
  valuing them at!
  
  Conversion on one of my offers like that hovers around 15% - and
  has for almost 6 years. Of course, it's a low-priced offer, but it's
  'bonus power' at work.
  
  All success
  Dr.Mani
  
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Steven Carl Kelly

14 years ago

I never offer more than 3 bonuses (usually just two) and they must be tightly integrated with the primary product. I have tested bonuses over the years and I know, for a fact, at least when it comes to my own experience and with the demographics of my buyers, that more than three bonuses are not as effective in converting sales as three or fewer.

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kiefer 14 years ago

That's good to know

Which types of bonuses seem to have more appeal? For me personally, I'm drawn more toward bonuses that are software-based versus an ebook, audio or even video files.

Just curious...are there people who specialize in producing bonus material for affiliates/ primary vendors? Sort of like those who have contracts to write batches of articles or packets of PLR content, or develop software?
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- raylm123 14 years ago
  
  I had a software program that I offered as a bonus to another software program I was selling in the same niche (non-IM niche).
  
  Then I tested to see what would happen if I sold the second software as an add-on (rather than give it away as a bonus.) I made more money with this method. No more bonuses with my products in this niche!
  
  However, I always get nice emails from my small list in this niche when I unexpectedly send them a "bonus" they were not expecting.
  
  Thanks
  
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ezonlinebusiness

Banned 14 years ago

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Kay King 14 years ago

The arguments about bonuses have been raging for years - it's nothing new.

Some people use bonuses effectively - some throw in all the pigs when you buy the sow. Some never offer bonuses at all while others seem to throw anything and everything on their hard drive as a "bonus page".

There's no right or wrong - only what works best for what YOU are selling.

kay
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lamberw 14 years ago

An eBook CAN absoutely be valued at $97, $997 or even $99,997. Why would anyone think otherwise?
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- Cush 14 years ago
  
  I have to say that I have made purchases based on the bonuses before. Even if I knew that it was a guru's main product for the year before. If there is still value there that I didn't have or know, I would still value it.
  
  Just my 2 cents.
  
  Thanks
  
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Todd R

14 years ago

Hey, this is a fun thread... many good comments and fun opinions.

There's a difference between products that are one time purchases and those that are bought on a regular basis. This difference changes how value is percieved, and lets face it value is completely a matter of perception. If you are selling a product that is only purcahsed once by any individual, then they won't be making comparisons to the last time they bought the product.

In other words, bonuses aren't as likely to devalue a one time purchase product. If you don't buy it when there's a bonus offered, you lose out on the bonus. That's it. The perception of the product is tied to need. If you need it..., you need it! If you don't, you aren't going to be buying it anyhow.

On the other hand, a product that you buy repeatedly, like groceries, you have to think, do I really need this now or can I wait a few days, week and then buy it. Can I wait til I get a better deal.

I guess the point is, different products, and different niches respond differently.

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Si_P

14 years ago

People are still buying the products though whether they buy into the bonus offer or not...people know a catch when they see it. Just my two cents.

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KarlWarren

14 years ago

The best bonuses ADD to the offer, and don't dilute it with irrelevant clutter.

For example, you buy a teapot and get 100 free teabags... good bonus.
Another example, you buy a pen and get a rubber chicken... bad bonus.

It all comes down to giving the end user the best experience - a BONUS is meant to add value, if it doesn't, then it's worthless.

Cramming a salespage with 100 bonuses that aren't relevant to the offer is only going to confuse people and add objections like:

"I don't need all this, perhaps it's so expensive because of all this crap, maybe I can get it cheaper without all the crap"

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LarryWestner

14 years ago

Another annoying thing is how people will offer bonuses that are just completely outdated and/or useless.

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Hesaidblissfully 14 years ago

The whole point of using bonuses is to sweeten the deal so more people buy the product you're offering. If more people purchase your product as a result of the bonuses you've included, then the bonuses have done their job.

Like CDarklock said earlier, bonuses are there to increase the perceived value of the offer, not the primary product.
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davemiz

14 years ago

interesting piece.... but then here's the flip side...

if it didn't work, no one would be doing it.

ppl are doing it (actually over-doing it) because it works.

not that i agree, but it works.

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