Why Money-Making Products Are Expensive?

36 replies
Well, I think this is more like a rhetoric question...

Actually, I think my objective is to help to the vendors. Sometimes when we develop a new product to make money, we forgot the main problem of the client: "The client has not enough money".

Let's be realistic, people who has money is not surfing on internet looking for products to make money; actually a big part of this kind of products are young people and even teenagers, of course there are also employers with a low salary. But my point is that they are looking for a solution for their problem and even if they find your money-making product maybe that system will not work for them; so they are not able to spend more than U$50 dollars trying different products.

In this way, I think that all the vendors, creators and developers of money-making products should think about that when they are setting the price of their product and they could sell more copies and have a lower refund rate if they sell their program, system or software at a lower price.

What do you think?
#expensive #moneymaking #products
  • Profile picture of the author RedShifted
    I think they need to RAISE THEIR PRICES.

    Prices are often a result of competition. There is so much competition in the IM niche right now that many folks are ALREADY being FORCED to charge less than what they should.

    I don't think your realize how much time it takes to make some of these products. I'm talking about good products btw. There are absolutely horrible products that shouldn't even be allowed to be sold. But I also see many marketers busting their rear to make quality products, and charging ridiculously low fees.

    So me and you kinda look at this backwards.

    Here is what I recommend ok? Go MAKE a quality product. Try testing offers. Try marketing it. Try selling it. Then come back and tell me marketers charge too much.

    -Red
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  • Profile picture of the author sbucciarel
    Banned
    I agree RedShifted. Some dynamite products are being sold here for dirt cheap. Some of these products have taken months to develop. As for the comment that some buyers are teens ... I would never market IM products to teens. They aren't my target market by any stretch of the imagination.
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    • Profile picture of the author Alex Greene
      Originally Posted by sbucciarel View Post

      Some dynamite products are being sold here for dirt cheap.
      Can you give me some link of them? I want to get them now if possible. :confused:
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      • Profile picture of the author UAS Mayhem
        Originally Posted by Alex Greene View Post

        Can you give me some link of them? I want to get them now if possible. :confused:
        Hahaha good reply.I would also like to view some of those dynamite products.It won't kill me to check it out anyways.
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      • Profile picture of the author sbucciarel
        Banned
        Originally Posted by UAS Mayhem View Post

        Hahaha good reply.I would also like to view some of those dynamite products.It won't kill me to check it out anyways.

        Originally Posted by Alex Greene View Post

        Can you give me some link of them? I want to get them now if possible. :confused:
        What I need for my business may not be what you need for your business. I don't buy magic buttons, systems, methods, etc. I buy tools that I need for my own businesses. 99% of the WSOs that I have purchased have overdelivered on what was promised in the sales letter. 1% have made me say ... wow, got taken on that one.

        Not only do I not buy WSOs that are systems or methods, I buy from respected members of the forum ... people that I actually know from their contributions and have come to respect them for the same. So the products I buy and the way that I buy may be quite different from others.
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  • Profile picture of the author Dan Allard
    Originally Posted by ericktrejobts View Post

    Let's be realistic, people who has money is not surfing on internet looking for products to make money
    Most people I know that make money online continue to purchase new products to learn more and stay updated on market trends, techniques, etc.

    It really depends on your market though. I see what you're trying to say, don't market a $50 product so someone who doesn't have $50. But in general should prices for IM products be lower? I don't think so at all, in fact I think they should be higher.

    A higher price tag usually means more commitment. If a poor person spends $50 on a product, they'll be more committed to following through than if they had only spent $5.
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  • Profile picture of the author Mike Hill
    Originally Posted by ericktrejobts View Post

    Well, I think this is more like a rhetoric question...

    Actually, I think my objective is to help to the vendors. Sometimes when we develop a new product to make money, we forgot the main problem of the client: "The client has not enough money".

    Let's be realistic, people who has money is not surfing on internet looking for products to make money; actually a big part of this kind of products are young people and even teenagers, of course there are also employers with a low salary. But my point is that they are looking for a solution for their problem and even if they find your money-making product maybe that system will not work for them; so they are not able to spend more than U$50 dollars trying different products.

    In this way, I think that all the vendors, creators and developers of money-making products should think about that when they are setting the price of their product and they could sell more copies and have a lower refund rate if they sell their program, system or software at a lower price.

    What do you think?

    You couldn't be more wrong... and this line of thinking is what's keeping people broke. If a product is cheap then people buy more of them and try none of them.

    As far as refund rates go, in my experience the higher the price the fewer the refunds (provided you deliver what you promise of course) because you attract a different kind of customer.

    The people who purchase higher priced products are interested in investing in their business.

    There is a place for high value cheap products but that should be the entry level into your sales system. Using the cheaper products to increase your customer base and introduce yourself to a crowd of people who may have never heard of you. In this case you will obviously continue to market your higher priced products.
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  • Profile picture of the author UAS Mayhem
    I also agree that product prices should be higher.I had written an eBook, which took around 150 hours of hard work, research, investigate, testing and for what?Only to sell it for $7.99...I am basically getting payed almost nothing and with the current competition even an eBook which took 150 hours to write doesn't sell fast...
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  • Profile picture of the author Tim3
    Hi UAS
    I recently put together a product that took me 496 hours to produce, how much do you think I should charge for it?

    If it were your product, how do you value your time?
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    • Profile picture of the author Mr. Ken Russell
      Evaluating a product cost comes down to more than how much time and effort it took someone to make. You have to consider all of the variables that come with selling/buying a product.

      Does the product work?

      The price is up to the vendor entirely. It doesn't matter if it's a high ticket item, if there is a buying market, go for it. It all depends on who you are targeting.
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  • Profile picture of the author Paul Gram
    Here is a fact: People will value something they spend lots of money for much more than something that was $7 or free (in most cases).

    By pricing your products low, you are actually doing a dis-service to those people you are trying to help because it decreases the chances and likelihood of they actually USING your product/service and putting it into action to change their lives.
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  • Profile picture of the author ericktrejobts
    I think most of you are right guys... But, let's be honest... There are a lot of crap products being sold in more than $50... I know, that to make a really good product requires a lot of work and time; but if your product is good enough you will get a lot of sales....

    Maybe is like some of you say... the audience is different, but then we have a new niche here... there are people between 15 and 25 years old trying to make money online. We can see that many of the new millionaire websites have been created by teenagers:

    Fred De Luca
    Matt Mullenweg
    Anand Lal Shimpi
    Carl Churchill
    Farrah Gray
    Romero Bryan
    and the list is really big...

    The kids are growing up in a technological age and they know it is possible to make money online. And sometimes they don't have the money to buy a product of U$50 on internet, even if they asked money to their parents and they explain what is the money for... Many parents will think like "ohhh come on kid, don't spend the money on internet because that is scam and bla bla..." of course some adults are very old fashioned and doesn't know the power of internet. But my point is that maybe creating a good product and giving it to a reasonable price reaching that kind of users we could make more sales....

    About what RedShifted said.... I created a product some years ago, when I was starting and to be honest I didn't put enough effort and I made just a few sales but now I have been working 5 months in the new version, so I know how much work is involved but my concept is to give a real, powerful and useful product to people who wants to make money online without taking off too much of what they have less...

    Thanks for your responses. It helped me to get a better idea of what I want to do.
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    • Profile picture of the author shane_k
      Originally Posted by ericktrejobts View Post


      The kids are growing up in a technological age and they know it is possible to make money online. And sometimes they don't have the money to buy a product of U$50 on internet, even if they asked money to their parents and they explain what is the money for...
      Well if they don't have enough money to buy a $50 product, then they can come here to the WF and buy one of the WSO that sell for $5-$20.

      If they can't afford that then they need to get a job.

      and then once they have a job they can use some of the money from that to put toward learning IM.

      instead of saying that Internet marketers need to lower their prices, you need to instead ask yourself, "What can I do to come up with the money I need?"

      Look for solutions, not the easy way out
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  • Profile picture of the author Randall Magwood
    When it comes to "make money online" products or "pre-made businesses" with resell rights.... you have to analyze the price of other home business opportunities. To get a franchise would cost you $50,000+... but a ready to go information products business at $497 isn't really high when you consider the price of the other home business opportunities out there online.
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  • Profile picture of the author marketwarrior06
    Banned
    High Price + High Commission+ Low Sell
    Low Price + Low commission+ High sell.
    So you have to technically check these out. You can run both type of campaigning. Then decide what to do.
    thanks
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  • Profile picture of the author Tayman
    Price equals perceived value.
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  • Profile picture of the author retsced
    Let's make it easier for the opportunity seekers by giving away the products for free.
    It's not as if there aren't enough people out there thinking it's a doddle making money online. Let's build all our lists with more freebie seekers.
    Let's take time out of our own business and carry them to success.
    Let's not give them the impression that they must be resourceful enough to make things happen for themselves at all costs.
    Let's all hold hands, sing Kumbaya, cuddle the bunny rabbits and suck on our thumbs until we're all super successful entrepreneurs.

    Cutting prices to pander to the opportunity seekers is just plain wrong. It undermines the integrity of this industry and sends the wrong message. If there are people out there that can't afford to buy a product that they need, they simply have no right setting up an online business in the first place.

    It's true a lot of products out there are garbage, but in no way should a quality product have to be perceived in the same way. I've bought crap. You've bought crap. They'll buy crap. It's process we have to learn from.
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  • Profile picture of the author CalinDan
    Originally Posted by ericktrejobts View Post

    Well, I think this is more like a rhetoric question...

    Actually, I think my objective is to help to the vendors. Sometimes when we develop a new product to make money, we forgot the main problem of the client: "The client has not enough money".

    Let's be realistic, people who has money is not surfing on internet looking for products to make money; actually a big part of this kind of products are young people and even teenagers, of course there are also employers with a low salary. But my point is that they are looking for a solution for their problem and even if they find your money-making product maybe that system will not work for them; so they are not able to spend more than U$50 dollars trying different products.

    In this way, I think that all the vendors, creators and developers of money-making products should think about that when they are setting the price of their product and they could sell more copies and have a lower refund rate if they sell their program, system or software at a lower price.

    What do you think?
    There are a lot of people willing to pay a lot of money for IM and make-money products, as long as these bring real value.

    Some examples might be businessmen who want to take their business to the next level or expand online/offline; others might be people willing to make a change in their lives and pursue other options; some might just want to work from home or switch careers, etc. ...you get the point.

    Price should always reflect quality, value and why not, brand.

    My opinion is that some should charge a whole lot more, and some should pull their products off the market.

    Regards,
    Dan



    Originally Posted by retsced View Post

    Let's all hold hands, sing Kumbaya, cuddle the bunny rabbits and suck on our thumbs until we're all super successful entrepreneurs.
    Kumbaaayaaa ...LOL

    You made my day!
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    • Profile picture of the author Jill Carpenter
      Originally Posted by ericktrejobts View Post

      "The client has not enough money".


      What do you think?
      The client is an entrepreneur.

      The client is supposedly wanting to start or run their own business.

      Starting a business costs money.

      Yes, it costs less to do on the internet, but still some investment is needed.

      Who says the client has no money?

      My target market is the clients who have money and are serious to invest in their business.

      It's all a matter of perspective. Just because you might not have any money doesn't mean no one else does.
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  • Profile picture of the author tayuyaa
    Well according to Alexa's ranking and Quantcast, the average warriorforum visitor is between 45 to 65+ years old and an income of 0-€50k per year , so no, teens are not the buyers on this forum (they are mostly on BH sites).

    And there is already plenty of WSO's on this product priced very low ($4-$9) where you get valuable information that can make you a lot of money if you actually implement the tasks.

    It depends to whom you market. A lot of people are not afraid to spend $50 on an infoproduct, actually some marketers start their sales funnel with $50 product and then they keep pitching higher priced products on the back end.


    Price doesn't really matter to savvy marketer....

    It's ALL about the ad!
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  • Profile picture of the author Geekgirl01
    When pricing I always think of my target market.
    I would rather 100 people buy my product for $1.99 = $199
    Than 20 people buy at $5.99 = $119
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    • Profile picture of the author tayuyaa
      Originally Posted by Geekgirl01 View Post

      When pricing I always think of my target market.
      I would rather 100 people buy my product for $1.99 = $199
      Than 20 people buy at $5.99 = $119
      What about 5 people at $499? = $2,495
      5 people at $2,000? = $10,000
      5 people at $5,000? = $25,000


      .......this post is non-sense.
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      • Profile picture of the author Geekgirl01
        Originally Posted by tayuyaa View Post

        What about 5 people at $499? = $2,495
        5 people at $2,000? = $10,000
        5 people at $5,000? = $25,000


        .......this post is non-sense.
        Its not nonsense its what I PREFER :rolleyes:
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      • Profile picture of the author Geekgirl01
        Originally Posted by tayuyaa View Post

        What about 5 people at $499? = $2,495
        5 people at $2,000? = $10,000
        5 people at $5,000? = $25,000


        .......this post is non-sense.
        Oh and just to mention once you have your little 5 people at $2000 good luck re-selling to them on a regular basis to create regular income.

        100 people at $100 = $10,000 is a 100 people to re-sell to - so people can have a regular income, thats 100 people on your email list
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        • Profile picture of the author tayuyaa
          Originally Posted by Geekgirl01 View Post

          Oh and just to mention once you have your little 5 people at $2000 good luck re-selling to them on a regular basis to create regular income.


          Those 5 people actually are just part of a well-oiled sales funnel, so you can have 5 clients at 2,000 that's 10K a year just from 5 people, and you have several others clients ranging from $7 to $499 etc.... residual income as well
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      • Profile picture of the author ericktrejobts
        Originally Posted by tayuyaa View Post

        What about 5 people at $499? = $2,495
        5 people at $2,000? = $10,000
        5 people at $5,000? = $25,000


        .......this post is non-sense.
        Wowww, do you really think you will reach the same number of buyers with a product that costs $499 than with one that costs $2,000....

        Then I would like to know why we can not see the same number of Ferrari cars than VW cars in the streets.

        It has non-sense. Maybe you can sell to 5 people your product of $2,000 but I am sure a product of $499 you could sell it to 100 people. In this way your profit would be much higher.

        If your price is high, your sales will be much less than a product with a lower price. This is basic.
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  • Profile picture of the author GregtheWriter
    Originally Posted by ericktrejobts View Post


    Let's be realistic, people who has money is not surfing on internet looking for products to make money; actually a big part of this kind of products are young people and even teenagers, of course there are also employers with a low salary. But my point is that they are looking for a solution for their problem and even if they find your money-making product maybe that system will not work for them; so they are not able to spend more than U$50 dollars trying different products.
    There is probably close to at least a million people online every month searching for how to make more money or some form of that subject.

    People WANT to make more money, it's almost like an endless craving.

    Also, I have sold products far above $50 in the make money niche - no questions asked and usually no interaction either outside of my email autoresponder lol.

    This includes products in the $1,000 range.

    I'd say the average person who searches how to make money online ranges mainly from the young to the very old, as in... you never really know what you're going to get. Least from my own experiences.
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  • Profile picture of the author bradx
    simply.. because people will pay.

    sometimes having a more expensive product will actually get you MORE sales, due to the fact that the more expensive product seems like it would have more value.
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  • Profile picture of the author Troy_Phillips
    Originally Posted by ericktrejobts View Post

    Sometimes when we develop a new product to make money, we forgot the main problem of the client: "The client has not enough money".

    What do you think?
    It has been my experience the majority of the people who contact me wanting a product or service for free or reduced price actually has money but just doesn't want to spend it.

    I have also noticed the people who really do not have the money to spend but are determined to succeed will come up with the money or offer something of equal value in trade. They just don't let not having money stand in their way.
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  • Profile picture of the author hbhanot
    Try to put yourself into the shoes of buyer. Once you were a buyer and now vendor. If you have reached a level where you consider your self retired then try helping other who are going to start. Whatever price tag you want to charge you can because it will sell if it is giving value. Top affiliates will sell your product only if it's good and priced well.
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  • Profile picture of the author celente
    not really sure of the points made by OP but I do hear him.

    I have seen $27 products better than $500 dollar products, and then again I have seen kick ass $500 products better than 10k programs. I guess you can see what I am getting out.

    at the end of the day Its all in the marketing really. But if you have a good product no matter the price it can go viral.
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  • Profile picture of the author CrisisCore08
    Actually,I think that if the product is REAL GOOD [very rare] then the price should be high,you need to remember that the internet is cold dark place,small websites and blogs will do everything to be ranked at the top.so who is willing to invest more?

    pre-made sites [asuming that they actually work] can make money,if you work really hard maybe alot,so if a lot of people will buy,it will be hard for 1 person to earn money.
    although if I had my own money making product I would never sell it unless I get a better one
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  • Profile picture of the author Will Edwards
    Price --- Value --- Perception

    An interesting triangular relationship. We all know the relationship between cost and quality and hence perception is often that lower prices mean poorer quality.

    For years, I laboured under the misaprehension that lower prices would lead to more sales - I can tell you from experience that it is a false premise.

    Mike (above) is spot-on: higher prices mean you engage with a different type of customer and, generally, they are the ones you want - not entirely because they are prepared to pay.

    Will
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  • Profile picture of the author cpa-money
    some prefer to sell less but on high price rather then to mass around with too much clients that everyone pays only few bucks.
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  • Profile picture of the author Bruce99
    If a product works and everyone agrees about it, then everyone would buy it. The problem with a lot of automated software, even the likes of senuke, is that a lot of people say there are things that are wrong with it, even after all these years, and the big cost.

    A free trial period can only go so far, particularly if comments on the net say that they charge you the first month regardless of you cancelling your credit card number.

    Theory of online competition pricing suggests that all prices eventually go to ZERO and are subsidised by ads or whatever, so how can seo automation software still be so expensive? Seems that even with the bugs, its very difficult to beat google, and s/w needs to be continually updated. I wonder if there are other reasons?
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