Difference Between a $7, $37, $97, $497 and $2000 Product Offer?

I think a LOT of it is based on the market.

Warriors- and probably IMers in general- are getting used to paying lower and lower prices.

Another thing is how well the product creator/company is known. Someone like Frank Kern can sell a $2,000 product MUCH easier than 99.99% of other marketers out there.

And how much can the product really change someone's life? Maybe that $500 product can help boost someone's income to $50K a year, but the $2K product would jump them up to $200K (or at least claims to have that potential)

The below thread, old yes, but VERY powerful, answers this and more:

http://www.warriorforum.com/main-int...50k-month.html

For those who don't want to be bothered to read it, just read this part:

Emphasis, mine,

Kingsley

Bill it's quite simple and I don't understand how a smart fella like you missed it. The difference is that they are different prices. In other words, $37 is different than $7 or $497.

I think it's 2 things and 2 things only:

1. The proper mindset and belief and confidence that your stuff is good and will really help people. Note that if you really want to help people you won't stick it to them on price but you will be compensated well.

It's also about overcoming fear - what if I get found out (exposed as a fraud) or what if no one likes it or I have no experience - and having the courage to do it anyway.

It's about understanding that people will hate your $7 product and your $497 product. But the $7 crowd is more likely to refund because maybe that's all they have (credit cards are maxed out) than the $497 crowd.

It's about not being a perfectionist and understanding that the richest people in the world have products that are like verson 1.0, 1.01, 1.2, 1.22, 1.47, etc. In other words they put out good stuff that isn't perfect and then make it better to help their customer more.

It's about belief in yourself and being willing to put it all on the line. At $7 there isn't much commitment - just refund the whiners. At $497 you have to be more commited. You spend it and you're up the creek when a refund request comes.

Could go on and on but you probably see where this is headed.

2. Marketing the product in such a way that people believe it will really help them. Remember you aren't selling a product or service, you are selling hope.

Okay back to work and looks like based on my own arguments I need to change some pricing.

Mark

I think a lot of it is about perceived value. Of course Frank Kern or Mike Filsaime can command a lot more because they are well known and have a proven track record. Someone just starting out may not be able to charge is much. A lot also depends on what someone is willing to put into a program. I am sure there are some $37 products out there that really work. But you also have to be willing to work the program.

Thinking outside the box is good, but what you offer has to have value as well. I guess a lot of it depends on where you are in the game. If you have a track record of successful products then of course you can charge more.

Hype and "guru" status.

A no-name can have a better product but only be able to charge a fraction of what a "guru" can charge because of their name and popularity.

Personally... I think it depends on guts.

As Kingsley quoted, it's about mentality.

I think the scary "What Ifs" get louder
than the hopeful "What Ifs" as the
dollar figure increases =)

Asher

Thats an amazing question, in a general market a product would sell well if priced according to demand and would result in better profits, but while selling a digital product it would make sense to reduce costs if the product and demand is good as their is no cost of production.

On the internet, emphasis is laid on volume of sales rather than on the profit margins, unlike offline markets.

I purchased many $497 and $1997 products, I also like to keep my products for sale in that price range.

I tested out low priced offers in the past and it's not anywhere near as profitable.

What do I give people that's different? Results that's it. My $1000 offer are usually only 4-8 videos long, my refund rates are super low and virtually non resistant because I deliver results that drastically alter the persons life for the better.

I'd like to take a moment to thank everyone for their participation in this thread. The information given has helped me to understand that the only thing preventing me from charging more for my products and services is me.

Bill, I wouldn't buy one of your $50 products for $2000. If you sold me a $2400 product for $2000 then I might consider it.

I admit I'm not a very emotional spender where others are; I like to think I am a smart and cautious buyer. I expect a return on investment for most things I buy and I work that based on the time it would cost to learn that information elsewhere. A service or tool is naturally easier for me to value. I don't buy the big picture but the pieces of the puzzle so I can use them over and over again.

For example, I wouldn't buy a deluxe version of a course for an extra $500 simply because it comes on DVD & MP3. That doesn't save me any more time and I am paying for fluff - not extra value. I might however pay more to ask you questions as that will save me time looking for maybe the wrong answers elsewhere. But you better know the answers!

If you are going to try and sell me just the big picture then I might not buy, even at $50. If however you teach me the puzzle pieces that make up that big picture then I may pay you $2000 for what others may see as the same end result.

(Good) Reputation will increase the likely hood of me spending more but only if what I get from the product supports it - and it better be based on what earnt you that reputation.

That's a bit over the place and I know not from the perspective of a high-end product creator so I hope it helps.

I think it's about targeting a higher end market than the mass market that most seem to opt for.

Just because your prices are cheaper doesn't mean they aren't more on the mark. Many times the cheaper product is spot on and the significantly dearer products are bad value.

If you are selling knowledge in an impersonal manner (DVDs, ebooks, mp3s etc) then time is probably a tangible factor. I could spend 5 hours trying to figure out how to repair this engine or I could buy this how-to guide and get it done right 'in 2 Hours Following this Simple Blueprint'. If I was a busy person then spending $100 to get back on the road 3 hours quicker is a no-brainer.

More personal products such as a mastermind group then it swings back to what your time is worth. Here you become the commodity that has built value based on experience and reputation.

Selling a system - then results of success could be used. This is used/abused a lot in the MMO market.

How to run a $77 product into a $300? No idea. I'm taking a stab with my own service at the moment though: I am asking what else my customers want and how much they'd pay for it.

If I had a book that people kept asking questions about outside the scope then I use that feedback to build it up. Or make them pay to get access to ask those questions.

I don't think high prices are limited to MMO either. I'm doing a photography mastermind on the weekend for $70. A one-on-one with one of the photographers is $950. That's bad value for me as he specialises in a niche outside of what I want to learn. It might be awesome value for someone who wants to start a portait photography business though!

I agree it's hard to gauge but i think Time is a good starting point. And your time is the easiest to value.

Hey Bill,

There are several factors that come into play but the over-riding one is perception of the prospect.

If you go for people who have never sold anything for $2k or bought anything for $2k - they may tell you that they would NEVER buy information product for that amount - regardless of what's in it.

If you go for a business owner who knows they need to grow but doesn't have time to try and work out all the details, or needs some training - they may have an expectation that almost ANYTHING they need to pay for training on to grow their business will cost at least $2k - because any good training costs around that.

So - as they say - value is in the eye of the beholder.

Your information product is worth......... whatever someone is willing to pay.

So - to easily sell something for $2k you need to find people who have the option to pay $2k for something they value at at least that amount.

Most offline business owners know how much good training and business material costs.

The problem with most of the IM niche is that people generally don't value their time - and don't pay tax on their IM income.

So where you are I might see making $2k for 10 days of work as, in reality bringing us $1k after tax and costs, divided by 10 days = $100 a day, which is probably less than you could make working at a fast food restaurant making burgers, and realise there are probably other things we could do to make more money, or realise that we'd need to be able to leverage that value in order to have that work pay us back multiple times - some people will ignore the time, ignore the tax and think it's a great amount of money.

If someone's mindset is one of not treating their IM like a business and they don't place value on their own time - they won't value your time either and will happily complain that your 10 hours a month of 1-1 coaching is over-priced at $97.

If you're selling a physical version of an information product, then thud factor certainly comes into play and many newbie IMers who have never created a physical product will give it higher perceived value.

So - when you factor all of this stuff in and consider people's various motivation strategies (i.e they either need to hear about your product from someone they trust, or over a certain period of time, or a certain number of times, or see the results someone else got from using it etc..) then it comes down to who your audience is, what they want to see to feel $2k of value, and how well you communicate that value and tie it in with their pain/problem/desire.

If you were selling training to retail outlets on how to get their customers to spend 50% more per visit - they may easily value that at $2k - no matter what was in it, as long as they believed it would give them that end result.

If you want to sell $2k to IMers then you need to establish a huge amount of social proof and get a lot of people they trust/respect to say a lot of good things about your product and the results people have got from it. If you had Frank Kern, John Reese, Ed Dale, Mike Filsaime and 10 other big named IMers all suddenly start raving about your product and how amazing it was and that people should snap it up - it could be anything from an video training to a series of webinars - and you'd sell a stack of them - even at $2k.

Try to sell the same exact product to the same people yourself and you'll struggle.

Hey Bill,

I think it has to do with positioning and branding. What I mean is *some* people always think that if Frank Kern produced a product then it must be very valuable and of big quality, this "perceived value" that Frank Kern has achieved is what makes him get away from selling $2,000 courses.

He even now teaches people how to be "Experts" in their niches but via telemarketers, I was called by one of his telemarketers to sell me a $8,000 coaching course (No, I didn't take this offer)

It is all about positioning and branding, unfortunately the value doesn't have nothing to do at it in this point. (sure if the value was crap then you will have a very SHORT term success)

For example, you have made a product and I have made the identical same product and both of us used the same sales page and same traffic sources and everything but I sold it for $97 and you sold it for $997 (10 times more) and people didn't know that it is the same product.

The only difference was that you have a brand, reputation and an expert status positioning in your market then I *think* that you will sell far more than me and for 10 times higher the price.

That's my personal opinion, it maybe wrong or it maybe right. I guess nobody can ever know that.

About the value, I measure it by how it ends my problem and in how much time. if it is going to end my problem 100% in one month for example then I will gladly pay whatever the seller ask for.

That's my 2 cents.
Mohamed

The warrior forum is one of the worst places to ask this question.
Sorry guys & gals and no offence! We all have to start somewhere.

But the WF has a larger percentage of newbies and people who simply have not banked enough yet, for "whatever" reason.
So this is a market place that struggles to support a price point.

In particular, the WSO section, if its ethos is to be believed, deserves (?) something like a THIRD value ratio. i.e. a $47 value product should be on special for around $16.

Unfortunately, sadly, and it only has it self to blame, in the IM niche, where mainly "sellers sell selling to would be sellers" people have taken that as an EXCUSE for making inferior products which are not even worth $1.60, let alone $47.

I can't count the number of WSOs that have purported to offer the "make a wso in 2 hours", from respected names, and less respected names and totally unknown names.

I mention this, because this is the place to mention itself, and also because it shows the WF market place is "hurting".

That's why this is the wrong place to ask this question.

It's also pivotal to your question.

Pricing is VERY simple.
The price should reflect the "transformational" VALUE it brings the buyer.
In a technological world, the "format" or "delivery method" is NOT the value.
The "CONTENT" the "RESULT" is where the value is.

The trouble with 98% of all WSOs is they offer ZERO transformational value.
Not within themselves, anyway.

i.e. a tool only has value IF it is "used" and worth more when used by a master craftsman.
This is also a seminal point.

So what is transformational value?
Firstly it totally depends on the audience.

A bottle of water to a tramp for $2 is not a good deal.
It isn't going to help him.
He doesn't have $2 and more likely he is hungry, cold and would rather escape his unhappy life with booze.

Take the same bottle of water to a man in the desert, and he might be more receptive. You think?

Take the same bottle of water and offer it outside the train station, and probably a massive FAIL.
Why? because why are you selling it? Is it full of GHB?
And you're standing outside a shop that sells water legitamately
Also the train goers have just had breakfeast with water, and are going to work, where there is water.

In none of these cases did we define value as
the plastic bottle
the water rates and staff to fill it
the transportation costs to get it there
the packaging, marketing,
the infrastructure and accounting and finance charges to take payment.
standards certification and state taxes
(yeah even the water business is complicated)

Main thing is, there is no real value in the water!
Unless is it to the right crowd.

YET bottled water makes millions!
WHY?
because they like the taste
because they trust it is purer and healthier than tap
because it is convenient and portable
because it quenches their thirst when they have one
because it proves they have status to have a bottle
because it says about them, I know to look after myself, by drinking water
because the price is SO cheap, people probably just accept they just BUY water in a bottle!

Can "we" sell water?
Not really!
Is there value in water for "us" outside of the desert?
Not so much.
Is a book on how to start your own water brand, or water retailer business, or water wholesale business, valueable to somebody, somewhere?
Probabaly!
Can you sell a book on the power of water?
Totally.
It's about water memory and the spiritual memory of one of natures most basic ingredients.
I forget the exact book title, but it has sold in the hundreds of thousands.

OK so it's not totally just about water, as in bottled, but maybe you see the point.

Of course all those LAUGHING at "spiritual" and "water memory" would not pay a dime for this book.
it has no transformational value to them!
Even if it was free, still not.

But to those who went "what? wow! really?" how much is this book worth?

This is seminal here!
how much is this book worth to them?

it depends on what value they would derive from it;
be it entertainment, spiritual, or monetary.

monetary?
well if you are a professional healer or spirit reader or something
then this is information you can use time and time again
to bill clients

how much is this book worth to them?

well it depends on 2 things of course.

the transformational value to the specific audience
and if they can see the transformational value in the presentation
(we call that marketing).

the big takeaway here is transformational value is related to the audience.
not because you are looking for affluent fools (never do that btw)
but because only a percentage of people will ever appreciate it and PERCEIVE that.

SO the WF and WSO has a stereotype and attracts a certain "market".
In this case, the MARKET PLACE itself limits its own potential

Sure there have been a handful of higher end products on WF
$497 per month for brad brosse coaching is one I remember.
I have no idea if anyone is still doing it.

but more often we see "FREE lifetime SKYPE GROUP thrown in" with my sub $20 product

And what VALUE do you get in these groups?
are they managed? does any one have any answers? who and how do people make money from "chatting"?
In my experience, next to nothing. A handful of "connections" if you are lucky.

So why would people pay $497 per month for brad?
not so much because he is brad, but because he MAKES BANK, and he has connections and a list and A SALES PROCESS, and people "hope" that will rub off on them.
That "could" change their entire lives.
Give them a BUSINESS, a 6 figure business of their own.
That's why it is $497pm and not $6.

ebook or webinars, is not the real value here.
that's the "format". the "delivery mechanism"
brad could just as easily write a PDF on the skinny on making bank.
SURE most people would really moan if it cost £2000, but it doesn't mean it isn't worth $2000.
It just means peoples PERCEPTIONS are ebook = sub $100!
So it would suit a different format.

BUT the "CONTENT" in terms of transformational value, is ALL that matters.

I never signed up with Brad, so I don't know. He is a little "hippy" for me.
I mention him, because he's a warrior most people will recognise.

Also in that particular equation was exclusivity, forming part of the value. The max group size was X, and it took Y time, so the price was effectively Z per hour.
But again that's mechanics of delivery.
The value always comes from the CONTENT and what it DOES for people.

I also answered this in another thread about gold digging, shovels and treasure maps.
I will try to find the link.

I don't know how to say this without appearing to be having a go at you Bill.
I'm not. You were brave enough to ask. I can only give you MY answer.
And I guess I will be off of your christmas list now.

I would not buy a $100+ product off of you because
1) you had to ask this question
2) you've never felt the need to buy anything of that value yourself
3) whilst you probably have the potential, I've never seen you offer anything with transformational value.
And before you burst a blood vessel and shoot your keyboard, or me,
let me explain that.

How many people who bought, lets pick one of your kindle book writing "manuals".
I think I got it bundled in a $6 wso of sams. FFS - lol.
OK sure you were list building... whatever...

How many people who got hat
1) actually read it (not your fault)
2) actually implemented it word for word (not your fault)
3) made more than ten times the price they paid for it (not your fault)

I am "guessing" zero, to 3, if you were lucky.

Now there are 101 reasons for this.
The biggest is that your presentation and delivery did not give it transformational justice.

The second is, and we are all in this boat together, the wso did not contain the transformational value in it!
In other words, in a 30(?) page ebook it was not possible to MOTIVATE people and ARM THEM with the ZING to make bank from what you said.

Now ZING comes from many aspects.

One of them is whether you are yourself able to go up a decimal point yourself and if maintaining that is practical (i.e not a blip)

So if you are earning 5 figures from your own Kindle books, can YOU take that to 6 figures, as a BUSINESS.
If you are already earning 6 figures from Kindle, can you take that to 7 figures, as a BUSINESS.

When you have the ZING to take yourself from 5 to 6 to 7 figures, then it is possible (not probable) that you have the transformational value to offer others.

Until that happens, you are the guy on the bus, who happened to write and sell a few books on Amazon and this is a $6 report on how you did that - in "part".

Of course your report is most likely about the "mechanics" and technicalities of doing it, not the ZING of picking a title, how to write irresistibly and how to market it like a King, so it ACTUALLY "sells".

And that's because teaching that, instilling that in others, is really, really, hard.
It may even take a lifetime - after all that's how long it took you to get to this point, yourself.

The reality is, transformational products take MONTHS, if not YEARS to create.
they also take INCREDIBLE dedication to support and after care and customer service.

You can't expect to write 3 pages, or make a 10 minute movie, and expect people to "get it".
Even if it is containable in that space, the transformation comes from nurturing that seed.

Why do you think monks dedicate their "lives" to stuff?

Most warriors are hung up on the detail
on the mechanics. the technical.

they think the money is in the "trick" or the push button.
they think a business is the technical platform
ie "the money is in membership sites".

#@** ##* it is!
the membership site is the delivery mechanism.
The business, the value, is in what the CONTENT of that site, DOES for its members!

And that my friend, is still the same point.
Transformational value.

So people might pay you 3 figures, once they can perceive you have what they want
and they believe you can let some of it rub off on them.
Also it isn't very likely to happen in WF, as the market is not successful enough in its membership to sustain that.

Sure you can create a 6+ figure business selling $10 + $37 "projects" per month as WSO
but the people who buy them, will probably never get 10x their money back

firstly because you can't create a BUSINESS in 1 month
secondly because they are changing hats too quickly
thirdly because what they probably bought is a "manual" to something technical, or a temporary "trick"

also in $47 of content, how much depth can there be?
there will be huge gaping holes, in little details like CONTENT & PROMOTION and taking market share. And GROWTH and sustainability.

I am surprised if you are not in a REAL peer group Bill.
One that aims to take you from 5 to 6 to 7 to 8 to 9 figures
from wherever you are now, to the next decimal point.

inside those, you see the SMALL differences that make extra bank

bottom line
"how can i offer more perceived value?"
"Offer more value and make sure it is perceived, by people who care!"

Peter

^
OMG, Now that is a long post ! :p

I have. In fact, I have spent over $10,000 each time to attend three Tony Robbins seminars.

As a customer, the difference is that you know the product is going to deliver on its promises.

As a marketer, the difference is that you know the customer takes your product seriously.

The customers.

The kind of person who buys a $37 product is, more often than not, throwing money at a fantasy. He may never do anything with it.

The kind of person who buys a $2,000 product is almost certainly going to rip through it like buckwheat through a goose and make things happen.

While there are certainly things out there which cannot be $2,000 products, most of them can be $37 products with a decent salesletter.

There is an old saying that you can make a pretty decent living selling something that doesn't exist, if you're willing to live with a 50% refund rate. You can literally lie to someone, take their money, and never give them anything - and about half of them will just let you keep it.

Prices, as I've said many times in the past, are just plain pulled out of your arse. They have no real relation to the content or quality of the product.

I've spent as much as $5000 for a seminar that did nothing for me with no refund. After being burned with that early on in my marketing career, I looked for the lower price points. I think you can get a few sales, but most people can't see the value of something that expensive unless it is a weekend seminar. Just speaking from my own experience!

When you pay the big bucks aren't you simply investing into the person or the entity?

Doesn't everyone start out small (at the $10 level) then if they continue to put out good material and create a following their prices slowly rise. And over time, these people create such a following and command such a level of respect that they can pitch in with $1000 products and people will buy.

You're paying to access the mind of the author, not some fancy power-point presentation. And of course some people will pay just for the privilege of being able to say that they paid.

It's just capitalizing on or exploiting the weaknesses of the human condition, as with any level of marketing.

Bill ... "Difference Between a $7, $37, $97, $497 and $2000 Product Offer?"

Marketing

Frankly - it isn't any of this stuff...and saying it is Marketing is too general a term to be helpful for anyone.

I've sold $17 ebooks right up to $100K training courses and have found the difference to be...

1. The market you sell into...fact is there are some niches where the desire and expectation is already set at the higher end...selling a high-priced sales seminar is much easier than selling a $2000 how to sew course no matter how good your marketing, positioning, etc... is

2. Proof...I can't believe everyone has missed this! If you are in one of those markets where your desired transformation is going to be worth thousands of dollars to you...then the only obstacle to you pushing the ORDER button is being convinced it will work which happens through proof and testimonials. Now, everyone's first guess on how those testimonials are obtained is through a private network/friends...and yes, that does happen. But you can also significantly enhance your likelihood of getting proof by building a product that is usable and gets results! Most people don't build a product around getting results, they build it to inform, educate or otherwise deliver information but not around the #1 goal of ending up with a user that can say "The product promised me X and I accomplished X - it works!"

I agree that first you must have the mindset that you can deliver a product like this to the market, and yes it typically will need to have more detail and experience behind it -- but in the end, it has to work and people have to say that it did work. If that happens in the right market, you can set your price.

Jeff

First off wow Colin Theriot ... Some here could take your one post and Immediately triple their product price as well as their own perceived value. Amazing.

Nothing wrong with starting at a $7 level, or even a free level. It is all about not staying there. Many produce their first $7 product and, when it sells well, create their own comfort zone. They find it all warm and fuzzy to go to pay pal and see 25 new $7 sales .. and just as scary to need to wait for one $499 sale.

Sometimes they buy into being a producer of $7 products themselves. Once you sell your own self short .. it is hard to overcome.

I personally would rather start at the free level and skip several price points as I market myself (or the pen name).

I can position myself as the person giving away information others are selling for up to $100 or more. If I am giving away these products it is easy for one to perceive the information I do sell is worth a lot more. If the information I sell is worth more than my competitions .. then I myself must be worth more to my clients than the $7 product creator. At least that is what my clients perceive.

Just a quick question in general .. how many here have created a sales page that was never really intended to make the first sale but rather elevate yourself and the perceived value of the product? Try it and leverage it sometime.

Many try to sell the product .. some sell the ROI .. some sell the car .... the buyer was really just wanting the blond on their arm.

haha @Adwords Mogul. Too funny. I have people ask me all the time about creative ways to get Facebook Likes.

Anyways, I think this is an awesome thread. So valuable for everyone in the niche. I have only created products for under $100 so this was very valuable for me.

Thanks a lot Colin, I'm listening to the podcast right now.

I have to agree with Colin - it's like this:

"What makes someone 'good enough' to be president?"

Answer: "The fact the he decided he is!"

In the entertainment business a lot of people struggle to "make it". Those who get to the top are the ones who say "I'm a star, I belong here". They fight for publicity, put up shows and aggressively promote themselves.

The rest are waiting for "permission" - from a record label, their fans, whoever else can make them "bona fide" stars.

The truth is, you have to make up your mind about what YOU WANT. Forget about what you're worth or not, what you deserve or not.

What do you WANT?

$2000 a pop for your product? Go get that! You want $7? Well, you can do that too.

Just remember this: "If settle for less that what you deserve, you will get less than what you settled for." (BTW this applies to relationships too)

In one of Allen's early ebooks, maybe the Tycoon one, he says something that may be fitting for this thread.

It goes something like this: The difference between the struggling marketer and the wealthy one is that the wealthy one has the audacity to go and get it.

The keyword is audacity (daring, boldness, courage, nerve, gumption, bravery, boldness, etc.)

I've always loved that quote.

Mark

PS If anyone knows the exact wording please post it since I'm getting old and that was years ago that I saw that so not sure of the exactness. Thanks.

The name of the game here is volume and long term ok,i am an affiliate manger and to say that a 27.00 dollar product wont get you 50k a month then your off your rocker, I have publishers who can do an easy 75-80k a month on 2 dollar email submits, why because volume and quality traffic, not everyone in affiliate marketing is making thousands by sell hundred dollar offer, think about volume and solid campaigns then trying to get one $2,000 conversions.

Some guru's just send their stuff out in a bigger box

Bill, what's the difference between a writer who makes $5 per article and the writer who makes $1000 per article?

The $1000 writer knows the value of the service they offer. They know who to pitch the article to and how to pitch it to convey that they are just the right person to write that exact article.

Is it really any different for a product?

The truth is even though there are products out there that I'm sure are worth the money, have you ever read a sales letter and thought to yourself, wow if this does half what they say then I would pay $10k for it if I had to. Well, once you purchase it and find it's just a bunch of rehashed junk you already knew or even worse something that can be found with a simple google search then you feel ripped off. Imagine how you would feel if that product wasn't $7 but $2000. There are better ways to get info in my opinion.

There's also customer audience segmentation. If you have 1000 customers who will buy from you at $7, then you probably have 10 who will buy at $97. and one that will buy at $497.

Normally, when you think of "adding value" you think of adding "stuff" to your offer. The crazy thing is that a single sentence may be worth $10,000. in the right context, depending on the real and perceived value from the buyer.

You can charge more $ for things that will have a greater impact on your customers life or business. Of course, you need to have the gumption to actually do it!

Even though I´m coaching myself, I´ve paid $2000 for affiliate marketing coaching, and about $950 for product creation coaching.

I can personally say that high end coaching will help improve your results a lot more than an ebook can.

You tend to have a lot more accessibility to high value when paying for a high end product.

It´s all about the perceived value and the expected ROI. Let´s say a product/coaching costs you $2000 for 3 months.

Based on improved skills, and gained knowledge you will be able to make an additional $1500 a month from now on. So the expected ROI within a year is $16000. ($18000 - $2000).

So, what´s the real value here? You get 9:1 on your money within a year, and this number should be consistent the longer you execute the task.

Basically, value is increased performance or increased ROI. Period.

The only way how you can measure ROI is through how well you are doing.

I´d rather pay $3000 for a coaching program that will help me add an additional $2000 in monthly income, than to pay $3000 in ebooks.

You can and should still read books, but it should not be the only source of improvement.

Most people should charge more for what they offer. It´s important to be unique, find a market need, have the skills, and market correctly.

You need to offer in your specific product something that other products in your niche don´t cover or lack.

If the client perceives your product as unique, widely improved, and extremely valuable because no competitor offers it, odds are that he will be willing to pay a decent fee or price.

Here's why (and it's not fair I know so don't blast me)

Same identical product call it PRODUCT X

CASE 1: NORMAL PERSON sell's it for $37 (sells well)
CASE 2: NORMAL PERSON sells it for $1997 (no sales)
CASE 3: CELEB sells it for $1997 (sells well)

Here is my question and I this this answers why. Why do normall people (99%) buy from celebs and don't buy from normall people the identical product?

Answer that and you will know why.

Higher end customers I have aren't necessarily the ones with more money, they are the ones that are more SERIOUS about applying what they buying.

In their mind, they are 110% in and know that if they execute on the information they buy - it will help them to reach their objective...so it's totally worth it in their mind to make the leap, if they have the full amount or not.

I've had many customers with high financial means that are not what I would consider high-end of the market because they aren't TOTALLY committed to taking action in the market - so the $2000 product sits on the shelf and never gets used.

Jeff

Higher end, lower end - most of the time it's a matter of self-perception.

Look, even in situation where a financial investment is required people have consistently defied the norm.

Of course, we're all at different stages but usually what moves us forward it the decision to go the next level.

Circumstances and where you go, who you meet with can change your life in an instant - take a look at the movie "Being there".

The read Robert Ringer's"Winning through intimidation".

It's like high school - the cool kids decided they were cool, everyone else agreed and accepted mediocrity as their standard.

Every now and then, another kid decides to start their own clique and disregard the reign of the current cool kids. Soon, they become the top kids.

It wasn't that they were different - they were willing to be the cool kids.

Is Rihanna the most beautiful girl in the world? The best singer? The best dancer? Hell no!

So who would be the higher end customer amongst musicians? The one who says "I'm a star?" or the one who says "Can I be a star please?"

Every successful person has had to take a leap at some point - in that regard everyone is a higher end customer when they decide to be.

I think the difference is how much access you get to the product creator.

For example, Frank Kern will provide coaching for 5000 dollars. If you just want to buy some of his ebook and informational courses where you never really get access to him, that is a 50 to 100 dollars.

I think this is true for most high ticket marketing products.

What a valuable thread!

That's it, I'm spending my whole week's quota of thanks, right now!

Sorry, still haven't got the $1000000 to pay for the transformational value right here!

Hope to get there soon.

Great job, guys!

I'll let you copywriters talk about all this rolls royce stuff. There's a market for higher priced, perceived higher quality stuff. I'm not big on high-end products anymore. Maybe it's my learning style, but I get more out of a well edited and well presented book on a topic, than by some rambling series of videos.

The mid-2000's were an interesting time. You take away that Syndicate and nobody is buying $2000 products. They were successful at leveraging some early successes and letting others join in the chain. Jeff Walker did some 6 figure launches, he shows John Reese, Reese does the seminar with every guru in site in the audience, he uses those gurus to launch traffic secrets, sets price point at $997, does $1M in a day, legends grow, and then every launch they touch is run with the same formula. John reese was such a legend for a few years after that launch, that just being associated with him was gold.

Until everything collapsed. Sure, there are still high-end products. But there is no getting away with a $37 product being sold for $2999.

wow some good replies in this thread.

1) There is a different mentality to the buyers here. We sell the $7 dollar ebook that sell well on ppc, on forums, blogs, affiliates who want 100% commish.

2) The higher end products do not usually sell so well to these users however, you have to go a few links up in the chain to sell the higher priced products. They are normally craving for them. I wrote a post on this a while ago.

Nowadays it is easier to sell higher priced products, well maybe not eaiser but it takes the same effort to sell a $2000 product than it does to sell a $7 product. Why you ask? well you just have to find the right audience and target them. They are two different ends of the spectrum you have remember that.

Really good questions. I believe the answer lies somewhere in-between being exclusive and allowing everyone to get on the band wagon. If you have an exclusive service or product, (like an exclusive forum,) often you pay more just for the exclusivity.

When pricing our product, we took a lot into consideration, (merchant limits was one as is true with Clickbank,) but also who our market is, and how big we would like to grow.

Every day we now grow a little bigger instead of more exclusive, which was always our goal.

Cheers!
Andrew