"Artificial Scarcity" ...with a twist....!

by mediaspree 35 replies
I had an idea last night but not sure if it makes sense, bear with me..

Lets say on a digital product/offer I am selling I create an artificial scarcity by saying, let's say only 100 available. I'd have a clear way of showing ONLY 10 left! etc. as people are actually buying it. BUT here is the twist once that number is reached I allow the potential buyer to "make 10 more copies available for yourself and friends" just by hitting the facebook Like button for this offer.

This would them post to their wall and their friends would see it, becoming potential customers. They get their product, I get more potential customers, and everyone is happy. There is of course no scarcity to the digital product so this promotion could be run indefinelty with people advertising for me for free by hitting the like button when it has "run out."

What do you think of this? Would it just confuse potential buyers? Would they be turned off by such a thing?
#main internet marketing discussion forum #artificial scarcity #twist
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  • Profile picture of the author Frank Donovan
    So, are you asking if we think it's a good idea to lie to your prospects about the number available?
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    • Profile picture of the author mediaspree
      Originally Posted by Frank Donovan View Post

      So, are you asking if we think it's a good idea to lie to your prospects about the number available?
      Not trying to lie, just trying to increase potential views but I see what you are saying. I was thinking it was more a "reward" for the user to get a copy once it had run out by advertising for me.
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      • Profile picture of the author travlinguy
        Originally Posted by mediaspree View Post

        Not trying to lie, just trying to increase potential views but I see what you are saying. I was thinking it was more a "reward" for the user to get a copy once it had run out by advertising for me.
        You can't have it both ways. You either have 100 available or you don't. Your idea is deceptive. But hey, if you get sales from it, it must be okay... :rolleyes:
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        • Profile picture of the author mediaspree
          Originally Posted by travlinguy View Post

          You can't have it both ways. You either have 100 available or you don't. Your idea is deceptive. But hey, if you get sales from it, it must be okay... :rolleyes:
          I'm not saying I am going to implement the idea in exactly that way. Which is why I came to WF to run it by you

          Lets say the wording is clear that There are 100 available without having to "Like" it. Beyond that you must like it to get the coupon. Is that still deception?
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          • Profile picture of the author Dan C. Rinnert
            Originally Posted by mediaspree View Post

            Lets say the wording is clear that There are 100 available without having to "Like" it. Beyond that you must like it to get the coupon. Is that still deception?
            Just so long as you're clear and do what you say. So, if you have 100 "unliked" coupons available, once those have run out, the only way to get a coupon is to "like" it? Now, if visitor #50 visits the site and "likes" the coupon, does that mean his coupon will not be deducted from the pool of 100 "unliked" coupons?
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      • Profile picture of the author mr2monster
        Originally Posted by mediaspree View Post

        Not trying to lie, just trying to increase potential views but I see what you are saying. I was thinking it was more a "reward" for the user to get a copy once it had run out by advertising for me.
        Why would it be a reward for someone who's driven by exclusivity (scarcity) to share it with the world?

        I see what you're trying to get at... and I think it has potential, but you're going to need to rethink it a little more.

        Maybe, something like "hit the like button and I'll hook you up with these 3 extra-super-secret-and-all-powerful chapters that aren't included in the book."

        i.e. give them a bonus that they can only get by clicking the like button.
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  • Profile picture of the author Dan C. Rinnert
    Okay, so you tell people you are only selling 100 copies.

    But, buyer #90 can get 10 more copies for him/herself and friends.

    And same for buyer #91. And #92 thru #100.

    So, instead of distributing 100 copies, you actually end up distributing 190--almost double what you said.

    As a customer, I would not be happy about that deception. I might even ask for a partial refund, because the product is then worth nearly half of what it was when half as many were going to be out there. And I would never buy from you again.

    EDIT: Oh, and then if each of those 9 friends gets to release 9 more copies for their friends, then the amount you're actually selling can wind up to be infinite. So, if I were buyers 1-89, I would not be a happy camper. Not happy at all.
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  • Profile picture of the author omk
    I think the second part where people can make more copies available to their friends is really interesting and could totally be killer - if you can code it right and get it to work. But as far as doing a fake scarcity, It's always a good idea to really do what you say. For example, If you say that you'll only sell a certain amount of licenses, then you should honor your word. You never want to leave any loop holes in your marketing. You don't want any competitors to have a way to bring you down or make trouble for you. Plus I think elswhere, like on CB, it's against the rules to do fake scarcity. I'm pretty sure on FB, they have some type of wording that would probably cover that type of stuff.

    Although, just like Dan said, your other customers might get mad when they figure out that other customers could keep on selling them, lol
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  • Profile picture of the author Alexa Smith
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    Originally Posted by mediaspree View Post

    Would they be turned off by such a thing?
    I don't know about you, but when I'm trying to sell something to someone, the last thing I want them thinking is that I'm trying to deceive them. :p

    And that's quite apart from the potential legal/regulatory problems here ... :rolleyes:
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  • Profile picture of the author mediaspree
    " I might even ask for a partial refund, because the product is then worth nearly half of what it was when half as many were going to be out there. "

    To add to this, lets say the offer is a coupon. "$20 off at Best Buy" for example The value of that offer would not decrease no matter how many there are out there...I prehaps should have started with that instead of "digital product"
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  • Profile picture of the author HN
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    If it's a coupon it slightly changes it. "We ran out of coupons, but if you refer 10 more people to us we can issue all of you 10 more coupons." That can even be legit, if the company only issues coupons by 10 at a time.
    You can also do is give a discount for someone that refers 10 people. Say 1 coupon is $20 but if you or a group of your friends buys 10 then you get then for $15.
    But artificial or false scarcity = very bad. Same as false countdown tickers.
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  • Profile picture of the author travlinguy
    You can do what you want and justify it any way that works for you.

    Ethics is simple to me. I break it down to this: If I wouldn't want it done to me then it's probably unethical. Would you be happy if you were motivated to buy something based on a limited amount and then found there was a "loophole" that actually increased the amount to nearly double?

    I recently found an offer I was thinking of buying. When I clicked off the page I got a popup offering a one time discount. It said: YOU WILL ONLY SEE THIS ONCE! Since I didn't have the time to study the offer more, I decided to pass.

    The next time I was online I checked the offer again and when I clicked away, there was the one time offer again. Some would say this is just smart marketing. That may be if you call lying smart marketing. The offer is either an OTO or it's not. If someone lies up front to get the sale, I'd expect even more lies in his course or whatever he or she is selling.

    Same goes for your deal. You either have 100 or you don't. If any slick trick you come up with increases the number then you've broken your promise. Good luck.
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    • Profile picture of the author mediaspree
      Originally Posted by travlinguy View Post

      You can do what you want and justify it any way that works for you.

      Ethics is simple to me. I break it down to this: If I wouldn't want it done to me then it's probably unethical. Would you be happy if you were motivated to buy something based on a limited amount and then found there was a "loophole" that actually increased the amount to nearly double?

      I recently found an offer I was thinking of buying. When I clicked off the page I got a popup offering a one time discount. It said: YOU WILL ONLY SEE THIS ONCE! Since I didn't have the time to study the offer more, I decided to pass.

      The next time I was online I checked the offer again and when I clicked away, there was the one time offer again. Some would say this is just smart marketing. That may be if you call lying smart marketing. The offer is either an OTO or it's not. If someone lies up front to get the sale, I'd expect even more lies in his course or whatever he or she is selling.

      Same goes for your deal. You either have 100 or you don't. If any slick trick you come up with increases the number then you've broken your promise. Good luck.
      Travilnguy, How is it different than The SUPER GRAPHICS BLOWOUT DEAL! "20 packages will be sold at this crazy price and then it will go to $25.77" Why? does person 21 get anymore out of the deal? Its not like there is a limited number of The SUPER GRAPHICS BLOWOUT DEAL! I clicked on your offer and was given the 19.77 price. Have you not sold 20 of them? Was I deceived? If anything I find that less ethical than giving someone the same deal as everyone just to tell their friends about it.
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      • Profile picture of the author Frank Donovan
        Originally Posted by mediaspree View Post

        Travilnguy, How is it different than The SUPER GRAPHICS BLOWOUT DEAL! "20 packages will be sold at this crazy price and then it will go to $25.77" Why? does person 21 get anymore out of the deal? Its not like there is a limited number of The SUPER GRAPHICS BLOWOUT DEAL! I clicked on your offer and was given the 19.77 price. Have you not sold 20 of them? Was I deceived? If anything I find that less ethical than giving someone the same deal as everyone just to tell their friends about it.
        I think you're missing the point.

        It's not about artificial scarcity - we all know that a digital product can have a virtually unlimited supply - it's about doing what you say you'll do in your sales copy.

        If you claim your product will only be issued to 100 customers, or that it will go up in price after a certain number of sales, that's fine. As long as you honour that promise.

        Anything else is deception.


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      • Profile picture of the author travlinguy
        Originally Posted by mediaspree View Post

        Travilnguy, How is it different than The SUPER GRAPHICS BLOWOUT DEAL! "20 packages will be sold at this crazy price and then it will go to $25.77" Why? does person 21 get anymore out of the deal? Its not like there is a limited number of The SUPER GRAPHICS BLOWOUT DEAL! I clicked on your offer and was given the 19.77 price. Have you not sold 20 of them? Was I deceived? If anything I find that less ethical than giving someone the same deal as everyone just to tell their friends about it.
        Completely apples to oranges comparison. But if that makes you feel better, go with it.

        It has nothing to do with how many packages are available. Digital downloads are infinite. I can limit the number I sell for any reason I want. I create the scarsity. I'm offering 250 products at a ridiculous price. And you or anyone doesn't have to like that. You can go somewhere else.

        Someone who buys at the max price gets the same deal as the person who bought the first one. It's all there. I have not decieved anyone. And yes, the price is $19.77 because I havent sold 20 at the opening offer yet. I'm at 17 now and when that changes, it'll go to the next level. That's the deal and it's plainly stated. No hidden tricks, no artificial scarcity built in.

        My whole point is about ethics. I haven't lied. You don't have to like my offer, you can choose to not buy it for any reason. The title of your post is "Artificial Scarcity..." Those words strongly imply deception. Again, do what you like. Paint it any way you need to sleep at night. Lying is lying. I haven't lied in my offer.

        You've come to this board so you could find some rationale to justify deception. Good luck with that...
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  • Profile picture of the author Goldenboy
    I think customers won't like the fact that they bought something because it was a limited offer just to find out that it's really not. But the idea is there. It's a clever one, but deceiving them is not the solution. Maybe a little adjustment to your plan might lead you to a better one. Change it to something that will leave the customer satisfied about his decision to purchase the product. Good luck!
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  • Profile picture of the author Underground SEO
    not a wise idea in my view, if you 100 copies to sell then sell just those 100 copies, otherwise don't go down the false scarcity route
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  • Profile picture of the author JackTheLad
    I'm with @StevenWagenheim on this one.

    If it says 100 then it should be 100.

    It seems as though you're looking to get exposure through getting people to 'share' the fact that they've purchased your product though. Another interesting method which may work better, would be giving your users an incentive to share before the purchase and giving them a reward - so to speak - in return.

    Here's a site which seems to be attempting something like that - Chords For The Piano

    They're using this 'paywithatweet' idea to help spread the word.
    Don't ask me how powerful it is, but maybe it would be more transparent than your method?
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  • Profile picture of the author Chris Worner
    Polish a turd, its still a turd.

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  • Profile picture of the author pmbrent
    If you want more sales after the first 100 are sold, cross sell them other products and at a later time. Or re-release the same product at a higher price or add new features etc.
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  • Profile picture of the author Avery Berman
    Why not offer 100 copies, and then just raise the price. Then you get the scarcity and everyone is happy.

    There are always ways to twist it as well.

    Do you want conversions, or do you want to make sure no one is offended? Ask yourself that.

    Many top converting offers say they have, say, 4 left for that day... and they are NOT lying...

    They only give away 4 per zip code per day. Scarcity is there, and they will most likely not run out of customers every day.

    Is it worded in a way that may be slightly deceptive? Possibly. Are they lying? No. It's all in how far you want to go.
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    • Profile picture of the author mr2monster
      Originally Posted by Avery Berman View Post

      Why not offer 100 copies, and then just raise the price. Then you get the scarcity and everyone is happy.

      There are always ways to twist it as well.

      Do you want conversions, or do you want to make sure no one is offended? Ask yourself that.

      Many top converting offers say they have, say, 4 left for that day... and they are NOT lying...

      They only give away 4 per zip code per day. Scarcity is there, and they will most likely not run out of customers every day.

      Is it worded in a way that may be slightly deceptive? Possibly. Are they lying? No. It's all in how far you want to go.

      Just out of curiosity, where does the line between "slightly deceptive" and "lying" fall?
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      • Profile picture of the author Avery Berman
        Originally Posted by mr2monster View Post

        Just out of curiosity, where does the line between "slightly deceptive" and "lying" fall?
        I can't answer that. This is an opinion based question. Most people on this forum are die-hard, all 100% white-hat everything. And while there's nothing wrong with that...

        ...Most business's don't really operate like that. Look at commercials. Look at advertisements. This stuff is EVERYWHERE.

        Many business's would go out of business without using advertising like this... it's the only way to put enough people into the funnel.

        Consider this... why is this tactic any worse than using hype in your sales message? Why isn't there a crazy outcry about that? It's very similar...
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        • Profile picture of the author travlinguy
          Originally Posted by Avery Berman View Post

          I can't answer that. This is an opinion based question. Most people on this forum are die-hard, all 100% white-hat everything. And while there's nothing wrong with that...

          ...Most business's don't really operate like that. Look at commercials. Look at advertisements. This stuff is EVERYWHERE.

          Many business's would go out of business without using advertising like this... it's the only way to put enough people into the funnel.

          Consider this... why is this tactic any worse than using hype in your sales message? Why isn't there a crazy outcry about that? It's very similar...

          You say most people on this forum are 100% white-hat everything. I wonder how you come to that conclusion. I'd say most people who have been around a while and are experiencing long term success have come to the realization that there is no other way to be.

          You also use two terms that are hard to define, white hat and hype. There is no mistake about the meaning of this word: lie. For me, lying is not an option. Words like white hat and gray hat and black hat and guru and hype all have varying meanings according to their context. But a lie is always a lie.

          As a younger guy I've tried all the corner-cutting (another vague term to disguise deception) tricks. I found there are some dark methods that will put some nice money in your pocket. But that kind of money never stays for long. Every time I did something I knew was wrong I lost everything I gained and then some.

          You ask why pumping artificial scarcity is any different than using hype? It's not. Hyperbole is nothing more than exaggeration. Exaggeration crosses the line of lying.

          If the temperature reached 94 degrees yesterday and I say it was 100, I've lied. If I say it "felt like 100," I've given an opinion.

          There's a saying that goes like this, "it's not hype if you can prove it." It might be exciting. It might be loaded with tantalizing metaphors. It might be an enthusiastic expression of opinion. But as long as it doesn't cross the line into the realm of untruth it's okay. That's what selling is about, playing on energy. And as long as the person writing the copy can prove the claims, there’s noting wrong with the pitch. It’s called persuasion.

          I don't want to continue to beat up on the OP but he came in here admitting he had a new twist on artificial scarcity. Several people suggested that was lying. It is. He tried to spin it for a while and then wisely let it go.

          I'm not a morality cop. I really don't care what others do, though every time I see a post where someone openly admits to deception I record that name so I know never to get involved with him or her.

          Pushing the envelope like this hurts the entire industry. Every time someone comes up with a "new twist" on cheating, regulators come down on everyone regardless of whether they're playing it straight or not. I think that sucks.

          As for lying and deceit, that's handled by a much higher authority... :rolleyes:
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          • Profile picture of the author Avery Berman
            Originally Posted by travlinguy View Post

            You say most people on this forum are 100% white-hat everything. I wonder how you come to that conclusion. I'd say most people who have been around a while and are experiencing long term success have come to the realization that there is no other way to be.

            You also use two terms that are hard to define, white hat and hype. There is no mistake about the meaning of this word: lie. For me, lying is not an option. Words like white hat and gray hat and black hat and guru and hype all have varying meanings according to their context. But a lie is always a lie.

            As a younger guy I've tried all the corner-cutting (another vague term to disguise deception) tricks. I found there are some dark methods that will put some nice money in your pocket. But that kind of money never stays for long. Every time I did something I knew was wrong I lost everything I gained and then some.

            You ask why pumping artificial scarcity is any different than using hype? It's not. Hyperbole is nothing more than exaggeration. Exaggeration crosses the line of lying.

            If the temperature reached 94 degrees yesterday and I say it was 100, I've lied. If I say it "felt like 100," I've given an opinion.

            There's a saying that goes like this, "it's not hype if you can prove it." It might be exciting. It might be loaded with tantalizing metaphors. It might be an enthusiastic expression of opinion. But as long as it doesn't cross the line into the realm of untruth it's okay. That's what selling is about, playing on energy. And as long as the person writing the copy can prove the claims, there’s noting wrong with the pitch. It’s called persuasion.

            I don't want to continue to beat up on the OP but he came in here admitting he had a new twist on artificial scarcity. Several people suggested that was lying. It is. He tried to spin it for a while and then wisely let it go.

            I'm not a morality cop. I really don't care what others do, though every time I see a post where someone openly admits to deception I record that name so I know never to get involved with him or her.

            Pushing the envelope like this hurts the entire industry. Every time someone comes up with a "new twist" on cheating, regulators come down on everyone regardless of whether they're playing it straight or not. I think that sucks.

            As for lying and deceit, that's handled by a much higher authority... :rolleyes:
            I was going to continue the discussion, but I've got to run out for the night. (And I'd rather not have people thinking that I go around lying people of one post before I left haha)

            Thanks for sharing your ideas. I love playing devils advocate and talking about topics like this.

            You never know what people might say.
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  • Profile picture of the author Dann Vicker
    I'm pretty sure it will make the offer look amateur, except you are offering it for free. Nobody wants to recommend what he has not used.

    I would be pleased to see how this will work out in a free squeeze page.
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    • Profile picture of the author ExRat
      Hi Avery,

      Consider this... why is this tactic any worse than using hype in your sales message? Why isn't there a crazy outcry about that? It's very similar...
      Because hype is only slightly deceptive, not lying.

      Actually I'm serious. I see the line between slight deception (hype) and lying.

      Hype - not many left

      Lying - only 100 left (when in fact there are more.)

      See the difference?

      When we state that there are 'not many left', we are deliberately excluding certain frames of reference.

      How many were there to start with? If it was 4 billion and there's only 120 left then it's not even deceptive.

      If it was 150 to start with, but the guy down the street sold 4 billion last week, then we might be saying 'not many left' in reference to how many got sold by the other guy last week, as if that makes it 'the norm'. But we don't give that frame of reference, we leave it blank. It's slightly deceptive, but it's not utterly deceptive, or lying.

      Knowingly stating an incorrect exact figure then surpassing it in sales is clearly lying.

      Note that I'm not taking an emotionally-charged or ethical stance on this, just making a point. There are many cultures and approaches to business that adopt lying as a perfectly acceptable and expected course of action in certain areas of business.
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  • Profile picture of the author absolutelee
    I like the part about letting people Like the offer and making x number of copies available for friends, etc. I don't like the idea of misleading your customers about the number of items available. If you could keep the first part and throw away the second part, I think you would have something.
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  • Profile picture of the author Yadira Barbosa
    I don't like fake scarcity, can work 1 time but you are looking for loyal customers.

    Try real scarcity: 1 day and the special bonus goes, or the price increase, or just stop selling, people will prefer to know you always honor your word.
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  • Profile picture of the author Scott Lambency
    Why not have limited bonuses? Or use the scarcity method on your price?

    Example: 100 copies sold at intro price of $9.97

    After that, the price doubles.

    Or, offer fast action bonuses for the first 100 people who buy. Give away a special report or similar product that compliments the first.

    Another strategy you could implement is giving away some of your time. The first 10 people who buy receive an hour long consultation on a killer new list building strategy. (Offer a very specific benefit that is already in high demand.)

    And giving away your time? That is OBVIOUSLY a limited bonus. Pure scarcity, no deception.
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    • Profile picture of the author Jeff Hampton
      You could remove the false scarcity and retain the viral part:

      Standard price: $27
      Special "Like It" price: $7
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  • Profile picture of the author timpears
    There isn't really a nice way to say this, as you are lying to your prospects.

    Not only that, but the FTC takes a dim view of false scarcity. So if you plan on doing something like this, I hope the FTC doesn't get wind of it.
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    • Profile picture of the author Cali16
      If you want loyal customers as well as respect and credibility, then don't lie to them. I've seen this artifical scarcity tactic used many times right here on the WF. Sadly, it's not an uncommon marketing ploy.

      I purchased a WSO months ago in which one of the two methods the seller taught in it involved sending an email to your list that said "My friend made $XXX with xxxx program". If he's teaching people to lie as a way to sell things why would I trust his sales copy? Needless to say, that is someone I won't buy from again.

      Bottom line, deception has a tendency to come back and bite you in one way or another. If that's a risk you want to take, that's up to you - just don't complain when there are consequences.
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  • Profile picture of the author MatthewNeer
    I like your angle and its very crafty, but at the end of the day, all that stuff is crap!

    If you REALLY wanna create scarcity, you ACTUALLY need to take your product off the market. But if you think about it, thats better. (crazy theory, i know...)

    If you say that you're product is going to double in price and be off the market, why don't you just do that in an annual cycle?

    Lets say it goes for $49 bucks normally, in 3 months raise the price to $99 bucks, then in another 3 months take it off the market completely. Then 3 to 6 months later, bring it back on the market and release it at $49 bucks again. Making it BRAND NEW and creating REAL scarcity because people know you're serious.

    "Oh but you won't I won't be making as many sales..." you say?

    You'll most likely end of making WAY more than you would if you kept your stuff on the market, simply because anyone can have it whenever they want. But when you can't get something, it makes people hella want it.

    Just setup a simple "Waiting List" and then blast it when it comes back on the market.

    And thats how ya do it ...like a boss!
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