My First Product-Is It Better To Create A High Priced One Or Go The 'Low Priced Item First' Route

by kumar
10 replies
Hi Warriors,

I understand the conservative way of creating and marketing your products: Sell them a low priced item in a broad niche, get them into a list, develop a relationship with it and then gradually start selling them higher priced products in the same niche. And I appreciate that it works.

But, is it not a relatively slow way of creating revenue? If you are starting with a low priced item, doesn't it become difficult to attract affiliates and JV partners, the two biggest entities responsible for increasing your profits.

Of course, you can offer 100% commissions to them, so you leave out the profits from your first product and then plan on making money on the backend.

I understand from reading many posts here that this too works well.

But what if you want to hit it big from your first product and you don't have an established name in the (non-IM) market?

Would creating a fairly high-ticket item (say, $97 and above) and offering generous commissions be effective? Could I attract affiliates this way? JVs may perhaps be challenging since I still wouldn't have created a rapport with them yet.

But by using traditional traffic generation methods plus a few affiliates, I think I can have a successful first product launch. And then, with a buyers list, I can sell to them again and again (a higher priced item or even a lower cost one).

If it helps, I plan to do a perpetual (rolling) launch where each potential customer will get to see a product launch at his own time.

I am just thinking out loud here. Is that an effective strategy? What will be my challenges? Has anyone done so?

Will highly appreciate your thoughts on this.

Thanks!
#create #high #item #low #priced #productis #products #route
  • Profile picture of the author jbsmith
    If you wanted the best of both worlds when you first hit a niche, make it a staged offering.

    What I mean by that is have a low-priced product AND a hgh-end, back-end product where you upsell

    This can be done via a one-time-offer once your prospect has ordered the lower cost item (where up to half will end up buying the upsell in my experience - sometimes much more if you do it right).

    Using this method you get
    • the low-end who wouldn't have purchased your high-end product yet
    • You lay the groundwork for your high-end product in a way that psychological "warms up" your prospect
    • Affiliates like these because they have two ways to make money

    Hope that helps,

    Jeff
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    • Profile picture of the author sparrow
      I have to agree with the poster above me.

      But lets look at this differently, getting big JV's is tough.

      So if get JV's great, but I have found to get the bigger players to peddle your product is a lot harder to do because everyone is doing the same thing unless you get lucky.

      Make a product that sells have all your conversion numbers in order, they work by the numbers.

      I think you got the cart before the horse.

      Make a product that sells that is the most important thing you can do, planning on JV's is remote.

      Make it work for you first they will only look at your offer if it can make them money without them working.

      Ed
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  • Profile picture of the author John Romaine
    Originally Posted by kumar View Post

    Would creating a fairly high-ticket item (say, $97 and above)
    $97 is not a high ticket item.

    $10-25,000+ is considered a high ticket item.

    If you develop a product that is...

    1. Competitively priced
    2. Is highly desirable or sought after
    3. Makes sense to the buyer
    4. ...etc etc etc

    You will attract affiliates and potential JV's regardless.

    If you're product stinks, it has nothing to do with price.

    A pig with lipstick on, is still a pig.

    BTW - I really like your signature.
    Signature

    BS free SEO services, training and advice - SEO Point

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    • Profile picture of the author jbsmith
      True enough about high-end being $10K - 25K although you may get an argument regarding $1K+ falling into that description as well.

      I have done very well with $47 products feeling into $397-$997 offerings which then feed into $10K + coaching programs.

      The $47 to $397-$997 are automated upsells while the $10K program typically comes directly from participation in the $397-$997 programs.

      For a newbie trying to lead with or even immediate upsell to $10K-$25K program - may be quite a challenge.

      Jeff

      Originally Posted by ramone_johnny View Post

      $97 is not a high ticket item.

      $10-25,000+ is considered a high ticket item.

      If you develop a product that is...

      1. Competitively priced
      2. Is highly desirable or sought after
      3. Makes sense to the buyer
      4. ...etc etc etc

      You will attract affiliates and potential JV's regardless.

      If you're product stinks, it has nothing to do with price.

      A pig with lipstick on, is still a pig.

      BTW - I really like your signature.
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  • Profile picture of the author Mary Wilhite
    The low priced first product is called a loss leader, and there's a reason why
    it's called that.

    You get to profit in the long run if you put out an excellent product.

    You can then offer it to affiliates with huge list for 100% commission.

    That's still part of you getting your name out there as a vendor who
    gives value.

    That's part of marketing. Giving your best and letting people see that
    you and your product are excellent.

    After that, it's time to make money and things will be easier because
    your name is already out there.

    You are just starting and thinking too much about back end offers and
    how to monetize and JV right at the start is good but it also show
    that you are more concerned/focus with money first rather than really giving
    value and letting people reward you for the act.

    It's not bad, everybody thinks that way but you'll get more by initially
    giving your best.

    Hope that made sense
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    • Profile picture of the author sdzh
      Originally Posted by Mary Wilhite View Post

      The low priced first product is called a loss leader, and there's a reason why
      it's called that.

      You get to profit in the long run if you put out an excellent product.

      You can then offer it to affiliates with huge list for 100% commission.

      That's still part of you getting your name out there as a vendor who
      gives value.

      That's part of marketing. Giving your best and letting people see that
      you and your product are excellent.

      After that, it's time to make money and things will be easier because
      your name is already out there.

      You are just starting and thinking too much about back end offers and
      how to monetize and JV right at the start is good but it also show
      that you are more concerned/focus with money first rather than really giving
      value and letting people reward you for the act.

      It's not bad, everybody thinks that way but you'll get more by initially
      giving your best.

      Hope that made sense
      Great information. It never ceases to amaze me how helpful people are here.
      Thanks for taking the time to explain a few of the concepts behind this often misleading world of money making!!

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  • Profile picture of the author Leslyaviel
    My advice is to start with a valued product set at a price from $5-20 and increase from there. Its called a staged offering.

    For example: First Product $5, Second $20, Third $97, Fourth $197, Fifth $399 or above.

    The key is to have value in your products. The more value you offer, the greater chance you will have of repeat customers.
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  • Profile picture of the author clever7
    Since you are a beginner you are probably going to make many mistakes. There are many lessons that you must learn into practice.

    You must always begin with a simple and cheap product. After learning how to perfectly create a product and how to perfectly market it, then create a really good one that will have a higher price.

    Never begin trying to offer the best you can without testing. You must see how everything works into practice.




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  • Profile picture of the author angela99
    Kumar, you said: "Sell them a low priced item in a broad niche, get them into a list, develop a relationship with it and then gradually start selling them higher priced products in the same niche. And I appreciate that it works.'

    In this scenario, you're talking about creating a sustainable business. You'd expect this to take time. In the real world (offline) few businesses expect to be profitable in their first year. They'd be happy to be profitable in their second year, and then have profits steadily increasing.

    So, this is a business plan outline which can work, with "work" being the operative word. If you choose to build your business in this way, as you've stated, it takes time. This is a GOOD thing, for this reason: people get to know you, which has many benefits.

    Pricing is something else. It has nothing to do with your business plan. It depends on the product. You certainly wouldn't sell a high-ticket item (as someone else said, $97 isn't "high ticket" -- high ticket is something in the thousands of dollars) for peanuts. You'd price it according to the value it provides.

    So therefore, even if you choose to build your business with low-ticket items and collect a following, you can price your products at any price point you decide on.

    Kumar, you also said: "But what if you want to hit it big from your first product and you don't have an established name in the (non-IM) market?"

    Your challenge here is "hitting it big." That's a challenge in itself. In publishing, no one knows what makes a bestseller. J.K. Rowling reputedly got quite a few rejections for the first Harry Potter book, and then a miserable advance when she found a publisher.

    Many bestselling authors have shopped their self-published books around in their car, selling them wherever they could. When sales grew, major publishers took an interest, and published the books. (The benefit of major publishers is their distribution networks.)

    My suggestions:

    * Create and sell your first product. Nothing replaces experience. You need the experience of selling;

    * Build your customer list;

    * Add Kindle (and other ereader) sales into your product planning. I'm doing that. I believe we're in the early stages of a revolution, and your Kindle sales can help your other sales;

    * Create a publishing plan. Your plan focuses on products you'll release -- set publishing dates. You need to be consistent in releasing products;

    * Consider that you can expand on products once they're released. I may be wrong, but from memory Fat Loss 4 Idiots started out as a simple ebook, then expanded to become a complete program. In 2008, this program made $21 million on ClickBank.

    Good luck with your publishing... Don't worry too much about plans. Just get your products selling.

    Angela
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    • Profile picture of the author kumar
      Originally Posted by jbsmith View Post

      If you wanted the best of both worlds when you first hit a niche, make it a staged offering.

      What I mean by that is have a low-priced product AND a hgh-end, back-end product where you upsell

      This can be done via a one-time-offer once your prospect has ordered the lower cost item (where up to half will end up buying the upsell in my experience - sometimes much more if you do it right).

      Using this method you get
      • the low-end who wouldn't have purchased your high-end product yet
      • You lay the groundwork for your high-end product in a way that psychological "warms up" your prospect
      • Affiliates like these because they have two ways to make money

      Jeff
      Jeff,

      Thanks for the idea! A staged offering is what I maybe looking for.

      Originally Posted by sparrow View Post


      Make a product that sells have all your conversion numbers in order, they work by the numbers.

      I think you got the cart before the horse.

      Make a product that sells that is the most important thing you can do, planning on JV's is remote.

      Make it work for you first they will only look at your offer if it can make them money without them working.

      Ed
      Ed,

      Totally get your point. Thanks!

      Originally Posted by Mary Wilhite View Post


      You are just starting and thinking too much about back end offers and
      how to monetize and JV right at the start is good but it also show
      that you are more concerned/focus with money first rather than really giving
      value and letting people reward you for the act.

      It's not bad, everybody thinks that way but you'll get more by initially
      giving your best.

      Hope that made sense
      Always believed I should first think of how much value I can offer to my customer rather than how I can extract every dime from him, but in the midst and chaos of creating my first product, I think this philosophy just got overshadowed. Thanks for the reminder, I needed it!

      Originally Posted by angela99 View Post


      My suggestions:

      * Create and sell your first product. Nothing replaces experience. You need the experience of selling;

      * Build your customer list;

      * Add Kindle (and other ereader) sales into your product planning. I'm doing that. I believe we're in the early stages of a revolution, and your Kindle sales can help your other sales;

      * Create a publishing plan. Your plan focuses on products you'll release -- set publishing dates. You need to be consistent in releasing products;

      * Consider that you can expand on products once they're released. I may be wrong, but from memory Fat Loss 4 Idiots started out as a simple ebook, then expanded to become a complete program. In 2008, this program made $21 million on ClickBank.

      Good luck with your publishing... Don't worry too much about plans. Just get your products selling.

      Angela
      Looks a great blueprint, Angela. You are right: I am getting into a familiar Paralysis of Analysis mode. Need to think less and do more, and learn and tweak as I go.

      Thanks everyone who responded on the thread. You guys were very helpful.
      Signature

      Life is not a sprint, its a marathon. A bad start does not really matter too much

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