All year long: "Give me $27" Now, suddenly, "Give me $497" -- why?

DownloadDan 15 years ago

I've noticed it too. It's not your imagination. I thought $47 for a 20 page ebook was bad but now I get offers for training courses in the $500 to $2000 range.
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Tyrus Antas

15 years ago

Actually have noticed the opposite. People who used to charge thousands for training packages now selling their stuff for under 100$.

Tyrus

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joncrx

15 years ago

Often times price communicates value and perhaps it is simply trying to niche themselves differently in the market, I've noticed it too.

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jasonl70

15 years ago

Here's my recent experience with promoting higher ticket items to my list(s)...

I make about the same number of sales when I send a promotion for a $47 product, as I do when I send a promotion for a $497 product. Same amount of 'work' required, but one of them pays me a LOT more for my time/effort (and has a lower refund rate). You can probably guess which one I prefer to promote now

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mastermoog

15 years ago

Originally Posted by jasonl70

Here's my recent experience with promoting higher ticket items to my list(s)...

I make about the same number of sales when I send a promotion for a $47 product, as I do when I send a promotion for a $497 product. Same amount of 'work' required, but one of them pays me a LOT more for my time/effort (and has a lower refund rate). You can probably guess which one I prefer to promote now

Wow nice approach, i might consider the same. These are still information products right?

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Jon MacPherson

15 years ago

So many threads in the WF keep reminding me of the importance of testing.

As to the offers, I read the emails to the email address that I use to opt in with about as often as I go to the north shore of oahu.

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cheeze69

15 years ago

It seems that every podcast I listen to on IM is touting "higher priced items" and there has been a really prominent rash of high dollar things like the Product Launch Formula/some $2000 membership site thing/etc. which are everywhere you look.

I'm guessing that many people are seeing these higher numbers and are gravitating towards making their products more expensive as well.

Personally, you had better have *really* impressed me at the $40-100 level before I'll even *think* of spending $500 and up. I have bought one $500 product before and since found-out that the same information (or better) is available in much lower-cost items. I'm not sour about it, but it has taught me a lesson that I probably don't need to spend that much to get any information. And, even if I like your stuff, $500+ is big chunk of money to me and I really, really think hard before I spend that much on anything.

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ONOFFMarketing

15 years ago

As long as you have quality leads, selling a $500 product or a $50 product makes little difference. That excludes of course the profit for the affiliate.

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JayXtreme

15 years ago

The Guru who shall go un-named here... recently encouraged this massively in his mastermind... Told everyone to hike the price..

Of course, he also talked on how to increase value, perception etc..

He has a long reach in this field and it appears many listened.

Peace

Jay

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Alan Petersen

15 years ago

Moving people on your list to higher priced products is a normal progression. Especially the big dogs they use the $27 product to get you into their sales funnel so they can sell you more expensive products (DVD's, webinars, coaching, etc.).

Now of course you have to make sure the price is justified not just slapping a high price on junk. That won't cut it long term.

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WilliamM

15 years ago

I just picked up Jimmy D. Brown's AffiliatePayRaise yesterday. His first of 27 ways to increase your affiliate income is...

1. Look for Larger Profit-Per-Transaction Offers to Promote

He goes on to explain.

A $20 product ($10 commission) coverts at 5%. That means that for every 100 people who see the product, five buy... and that puts $50 in your pocket.

A $100 product ($50 commission) converts at 3%. That means for every 100 targeted visitors who see the product, three buy... and that puts $150 in your pocket.

A $500 product converts at a scant 1%. For every 100 targeted visitors, one person buys... and you put a fast $250 into your pocket.

Example three from above is 500% more profit for you than example one for the exact same amount of traffic!

It seems there is a good reason for promoting high ticket items.

William

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Star Riley

15 years ago

Originally Posted by WilliamM

I just picked up Jimmy D. Brown's AffiliatePayRaise yesterday. His first of 27 ways to increase your affiliate income is...

1. Look for Larger Profit-Per-Transaction Offers to Promote

He goes on to explain.

It seems there is a good reason for promoting high ticket items.

William

Amazing you should mention that Jimmy D. Brown is my hero I've noticed many high ticket Guru product is a remake of his classic and still highest value stuff. The new "Guru's " just add video, audio and bling to it and call it another name.

Take Russell Brunson's micro-niche program and put it along side Jimmy's Membernaire and you will be amazed. What I love a Jimmy D. Brown and many other original marketers is the value to the investment ratio has been way higher.

We all love Frank Kern but I discovered a NLP mind control marketing thing by accident online from years and years ago and when I read it closed my eye and imagine some comedy and video's etc for less than $100 it felt like Frank bought it and made the videos and what have you then $1997 price tagged it and voila.

It is not their "fault" nor is it wrong to sell high ticket items but for people buying "hope" the gimme $497 deals are hard to swallow.

Another thing is the everything is a membership deal , just take a simple training (Blank) and turn it into a lifetime money sucking virus.

A possible niche idea that may be of value is creating products that you can buy that gives you the exact method you are interested in learning without having to pay 497 and or 97 a month for access to a forum, that allows people who bought your 497 crap to help each other while your bank account grows niche.

I've been busy for the last few years in some big Guru's forums and It is so cool to be back at the Warrior forum with all it's faults, the slick folks who hang out for a week looking for prey by posting rants then releasing a crappy WSO. (side note I'll be releasing a WSO on how to spot guy's like us in a week for $497 with a monthly membership at a discounted $97 for Warriors only)

End of rant.

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RichardLindner

15 years ago

Originally Posted by Alan Petersen

Moving people on your list to higher priced products is a normal progression. Especially the big dogs they use the $27 product to get you into their sales funnel so they can sell you more expensive products (DVD's, webinars, coaching, etc.).

Now of course you have to make sure the price is justified not just slapping a high price on junk. That won't cut it long term.

I think Alan is 100% right, its all about getting them into your funnel. Your always going to get more front end sales at $27 than at $497. Not to mention the fact that your conversion rate on the $497 upsell to people who have already bought the $27 offer is going to be WAY higher than you could ever hope for if you were sending leads straight to a $497 front end offer.

I have tested (recently) front end prices of $17, $27, $39.95, and $47 not only to find out which converts better on the front end but also which has a higher "session value". So at which front end price point is a customer more likely to immediately spend money with me by purchasing upsells.

Just so you know $27 won every time from EVERY traffic source.

Hope this info helps someone out the on the WarriorForum!

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bannor32

15 years ago

Ironically in tough economic times people are probably willing to spend more money in the hope they will make more money. Desperation, rather than greed is probably motivating buyers. Savvy marketers have taken notice and are taking advantage...

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DonDavis

15 years ago

It's because the recession is over and everybody has money to burn. Haven't you heard?

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All year long: "Give me $27" Now, suddenly, "Give me $497" -- why?

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