Turning $7 buyers into big money spenders-Why I believe it is tough to do

People will pay top dollar for top dollar products. Period. As for what you think you can sell your stuff for, well, you get what you expect. It's all in your head, your self esteem, your confidence.

Look at the offer in your sig. 100 articles for $300. Three bucks per article. Ugh. That's poverty thinking, dude. Apparently you think that's what your time and effort is worth. And as long as you believe that nonsense, it will be true. Here's a novel idea, just charge more. Good luck.

It's simple: Don't become the dollar store

I think the assumption that everybody who buys a $7 product is broke isn't fair. You have absolutely no idea how financially sound your buyers are or what they can spend given the opportunity and the right offer. You can't "judge" them solely on the fact that they bought a cheap product from you.

I have personally bought stuff that was less than $10 but I've also been an avid buyer of products that deliver kickass value for a higher price. The point is, as long as the price is justified by the value you are delivering with your product, there's absolutely no reason why you can't convert customers who have bought a low-ticket item from you.

Also, the "conversion" factor depends on MANY factors - price just being one of them. If your copy sucks and fails to generate DESIRE to take ACTION - then selling a cheap product also becomes difficult. Or let's say you're building a buyers list but are not building a relationship with them by delivering consistent value and building "trust", then it obviously becomes difficult to convert.

Bottom line: Don't just deliver a quality product - work on delivering a high quality customer experience in every possible way. Build a relationship with your buyers and help them more than you sell. And yes, charge what you're worth - not what you think your customers can afford

The problem with the $1Store scenario is that $1Store products are crap. That's why they're $1 and everyone who buys them knows they're crap. That's the $1Store's marketing positioning. Cheap crap cheap.

That's not what you're trying to do. You're offering a "sampler" of your work at an approachable price. Unfortunately, the way you positioned your original offer may imply that your offer is cheap crap on the cheap. Or you may have positioned yourself as the "good deal" brand. So everyone expects good stuff on the cheap. In either case, you've attracted "cheap" people and it will be harder for you to convince them to purchase higher end products.

Rashell

No, I don't. It's just a "loss leader" to get buyers into your funnel. You can't put everyone in the "I only have $7 and that's all I'll ever spend" category. If you are persistent in this thinking, I recommend reconsidering the pursuit of internet marketing because that mindset will doom your business.

By the way, I've seen dollar store shoppers with $64,000 Cadillacs parked outside. Some people have money...but absolutely love shopping at cheap places.

Base from my experience if you are looking for true worth of your money you must go for products that are priced base from it's true worth. Cheap products would provide you cheap in return, if you are targeting cheap people you might just end fishing for newbies and not for professionals who are willing to spend their money no matter what the price is.

Your initial premise is wrong.

People go to a $1 store looking for cheap deals since they know the price in advance. However, they land on your site without knowing what the price will be: maybe they clicked on a banner ad, or maybe they found you through a Google search, or someone posted your link in a forum, etc. They don't know you, and you don't know them.

The truth is that you don't know what their financial situation is when they first get acquaintance with your site, nor how high they're willing to go with their bid. Therefore, your low-price entry product is nothing but a hook to direct them into your sales funnel. It's only later, when you present your high-ticket offers, that you start testing their wallet (and your marketing skills!).

The art of leading the way with entry offers (at breakeven or even at a loss) followed by a series of upsells, is one of the fundamental pillars of marketing, and a craft you must master if you want to make it big in this game.

Now, all that being said and done, I personally do not like creating $7 products. The effort vs. reward is skewed in my opinion. I prefer to start my sales funnel a bit higher up the ladder.

big money isn't chasing $7 "how to" reports.

Keep out the gettos selling high quality/high priced products. Those people can't afford it and only want to steal.

I've never tried to sell anything for as little as $7 so I don't speak from personal experience, but I can believe this may be so (obviously very variably, and depending on the niche, demographics, your continuity-process, your general communication-skills and all the rest of it).

But I'm not sure it's the point, anyway.

Isn't the point that far more will still buy a $50-$100 product from you if you've sold them a lower-priced product first than if you haven't? Even if they're still a minority. If your $7 product was good value, and they liked it, and are pleased that you recommended it, and so on? What makes them buy it, let's not forget, is mostly "how much they trust you when you recommend it to them".

I sell a lot of $97 products from ClickBank (as an affiliate) and some at higher prices than that. I sell far more of them to people who have previously bought a $27/$37 product on the strength of my recommendation than I could possibly sell to "brand new prospects".

Charge $7 for your initial product.

Then have immediate upsells in the order process, and on the thank you page.

Maybe a $27, $97, $197, $497, $1997 upsell.

Simple as that.

I've found the total opposite to be true.

I used to sell a cd for 5.77 or 11.77 and put over 1,200 people
in to workshop from it. They all paid up to 5,500 to attend.

It worked so well many of the big name gurus of today modeled
it and added there spin because of the success I had from it. I only
stopped because I got worn out doing the events every month so
I sold the recordings of the workshop and retired the event.

However, I had a sales team selling the buyers via phone and I
believe two of my past employees are teaching it today. :-)

But....why not continue to consistently hit them for that same $7? If you can do that, you can at least establish some sort of cash flow. Think in terms of low price, high volume. You may not make a lot per sale but if a lot of people are buying at that low price point, you're still doing good.

The key component to CLOSING sales is trust.

Of course, you need attention. Yes, you have to engage emotion and transfer enthusiasm...

...but in order to get the majority of your readers to actually go all the way and pull out their credit card, they've got to trust you.

And trust is EARNED.

The easiest way to build trust with an audience is to overdeliver, bigtime... on a product that involves very little risk to them for initially saying, "Yes".

So, in essence... what I'm saying is while it may be "tough to do", it's well worth it to spend a HUGE amount of effort gaining trust in the early stages through free and low-cost entryways to your marketing funnel.

There's plenty of time to graduate that sale to the next and next after that.

Brian

If you wanted to convince yourself that you can't do it, good job. Other people are doing it and I'm sure will be for some time to come.

Selling reports for $7 or for a very low price point can lock you in with a certain group of buyers. If you move away from the Warrior Forum where the vast majority expect all WSOs to be priced low, you may be able to garner more for your product(s).

Here on the WF, we have come to expect low price points on almost EVERYTHING! Many product creators get all types of flack over the prices of their OTOs or upsells, no matter how great they are. But when you stand back and analyze things, the amount of time, effort and information captured is worth at least 10 times what they're asking.

The folks who will pay more for it are out there. They pay a lot more for the same product on ClickBank or their own website. Finding those folks and getting them on your buyer's list is the challenge.

This turned out to be a ver insightful post. The warriors really came out on this one.

Something I've noticed is that products are getting back to $97, $297 and $997 again. A friend of mines has a mastermind product for $997.

He makes $xxx,xxx from Facebook so he knows his worth and people know it too so they come out in droves to pay what he asks.

It's all about knowing your worth

I usually sell my most expensive product, or my cheapest product. The in between products are sold too, but not as much as the most expensive and the cheapest one. I don't know if these statistics can help you.

Many times those who buy my cheapest product or another one in the middle buy my most expensive one, or all my products, but it doesn’t happen everyday.

I don't think you can conclude that people who buy cheap products will never buy expensive ones. There are many types of buyers as many others have already mentioned in this thread.

If you were not successful when you tried to sell more expensive products to the same list, you should look for different reasons for this failure, without believing that the price difference was the main responsible.

I do not place the label on them. I try to put into action what I have learned here. I guess what I asking is how do you get to the next step of selling a higher priced items? What type of value are people looking for if they pay a nice chunk of money for an info product?

Listen, Pheonix44, when it's all said and done the truth of the matter is this...

It's tough for YOU because YOU believe it is.

Period.

I've found the other way to be way more effective - sell the big item first, then offer smaller low priced items as upsells. I can usually double order values this way.

It's a tough jump to go from $7 to $50 or $100. But if you target the right buyers and they're OK with spending $100, what's another $7?

Have you ever went to the "dollar store" and bought something for $5 or $10 or $20? I know that I have. Even the dollar stores have "upsells" in place...

Now, I've also released WSOs that started at $1 and a majority of my "front end" products are priced under $10. So the bulk of my "buyers lists" are "low ticket" items...

However, I have sold both $497 and $997 packages to these "low ticket" buyers on more than one occasion.

For me, the low ticket items are just a way to get people introduced to the quality of products that I produce. Many of them can't wait to get more information or another piece of software from me. This leads to a very loyal and hungry group of buyers.

If people like what you offer they will buy from you at just about any price! But you have to get them to like you first.

Good luck.

Cheers,
Coby

Considering that you are saying ebooks then I would say Yes. People's expectations of ebooks are getting higher and higher while they have come to expect that value at a lower and lower price. Ebooks have the lowest perceived value of any type of medium of information delivery online, although some ebooks can cost a few hundred bucks but these ones are normally full courses, seminar transcripts, or some other high level course that someone has put a lot of work into.

If you want to sell low priced products I would suggest offering 100% commissions, building a buyers list like you said, and then developing an offer of your own for a higher priced video or audio product, and then offer that to your customers of your lower priced product

I have some serious seven figure income marketers who buy
every product I put out (I notice these things).

And the price of the product doesn't seem to matter too much
to them.

There is some truth to what you're saying...if you have a list of
people who've paid $7 for a product it's not as good as having a
list of people who've paid $1,000 for a product.

But it's still a valuable list and you certainly can sell higher priced
products and services to the lower priced buyers.

You usually need a bridge though...a way to get them to trust
you enough to buy the higher priced products.

There are many ways of doing that including really delivering on
your lower priced products and by following up with high quality
useful content.

Selling higher priced products and services is more of a process.

Kindest regards,
Andrew Cavanagh

I believe I see how this progression works. The higher the price gets the more powerful the information has to be at showing people step by step how to achieve a certain result. But more important it has to actually produce, otherwise the buyer would not be driven enough to buy the next product that would cost more. Am I warm?

The products that would cost hundreds, these do not have to be elaborate do they? What I mean is if I tried to sell a product for $297.00 what would make that product worth it would be what it could produce and not how fancy I could make it look. So essentially if I sold a single 5 page PDF report for the price mentioned the value would be in it ability to deliver a strong result. It would not have to be hundreds of pages with a fancy cover and a bunch of hype would it?

I've attracted people with cheaper $10 products and I've sold them up to $90+ products shortly afterwards. I've even had some people email me saying they missed the $90+ product email I sent and want to buy it.

People WILL spend top dollar for value. I know I do.

I have bought products myself where the initial cost was only a few bucks and then I paid hundreds for a follow up product. This was with mail order though.

You are focused too much on price point.

There is nothing wrong with selling $7 priced products. Both Walmart and Louis Vuitton are very successful companies. If you try to sell $1000 fashion products to the "people of walmart" you probably won't do so well but I am sure at least someone will still buy.

Same vice versa. If you try to peddle some Walmart brand clothes to someone who is a Louis Vuitton shopper, they probably won't be interested. But sure I think a few will go for it still.

The key thing I am saying is figure out who your audience is, you cannot change them, only maximize their potential. Key things like age, gender, household income are very important in terms of how much money they will spend on your offerings. You probably don't know these stats about your audience but I guarantee you have more of one kind of demographic than others (your offer to get them on the list is going to seem more attractive to one demographic over another naturally). But you do need to figure out if your users are People of walmart or Louis Vuitton.

I disagree with the whole premise many are saying, sell high quality stuff for high value. Well if your users on average are only making $30,000 per year, they probably aren't going to be making $1000 eProduct purchases. Sure in GENERAL don't underprice something (usually a bad idea) but in terms of YOUR users, you need to offer them something attractive.

turning a $10 buyer into a $1000 customer isn't that hard you just need a process to send people through

I sell lots of different products at $7 - $17 and once they are a buyer I offer them my membership course and also I include links to my coaching and of they sign up which many do I then speak to them personally and convert many of them

When I first started my coaching some people I spoke to were charging just $297 which was stupidly cheap

I charge a lot more than that

You have to charge what you think your time is worth and also it depends on how much value you think your knowledge is worth

A lot of it comes down to trial and error and experience, my best advice is to just push forward and try different things until you find a system or a way that suits and works for you

What works for me may not work for you and vice versa :-)

Paul

I believe this is very important and it should be focused on.

I don't believe that's true. Obviously, you 're not going to convert all your $7 product buyers into $97 product buyers; that's just not going to happen. But, even if only a small % of them buy your $97 product, you'll still make a lot of money.

There'll always be high ticket buyers, even among $1 product buyers. You just have to know how to reach them, and how to convince them that your high ticket product is worth it.

You've done half the work already. You brought them into your funnel. They already bought from you, sampled your knowledge, so they know what you can offer. The ones who know that they need to pay to get the good stuff will definitely go for your offer. You just have to wait till that happens. Patience and perseverance is very important in any business.

I think this is going to come down to what people value. The key is knowing what it is. For instance, I like chicken patties. There is a store that sells 3 of them for $1.00. When I go to the main grocery store they have the good stuff "Tyson" all white meat chicken patties for almost $4.00(same quantity). The Tyson chicken patties taste better, are heartier and just better quality. How much I am willing to spend depends on what I value, sometimes at the moment. If I am hungry and broke I go for the cheap patties. If I have money I go for the higher quality stuff.

This is really simple. If people are not buying your more expensive stuff then it's just not good enough. People will happily spend x amount of money all day long if they feel they are getting 2x amount of value in return. If you are struggling to sell a product then it means the value proposition is just not good enough. You need to make it a no brainer where people will feel like they are missing out on a huge opportunity if they turn their back to your product. Until you do that you will always struggle to sell.

I believe this is unfair to say. How would people know how good my product was or was not if they did not buy it in the first place to find out. If anything it goes back to what an earlier warrior said about a product not having enough perceived value if anything. Maybe I might not present it well enough or maybe the sales page does not sound hyped up enough. It is not that people are buying and then refunding, which would be one way to know that the product was not good.

This thread and the responses are completely absurd. You're concerned about locking yourself into a price point by selling lower priced products!? Most people begin their relationship with their audience by giving shit away for free. Are you not more concerned with this when you give products away for free to build your list? It's a lot harder to turn freebie seekers into any kind of paying customer than it is to turn buyers into repeat customers.

But how often is that free whatever it is really something of true value? How often is the end result something people are so impressed by they are willing to spend money(rather it be a small amount of a large amount) to get another product from that person? One of the best reports I ever read was free(20 ways to make $100 a day). It helped me a lot and it was how I found this forum. The issue was when this same guy tried to sell me a high priced product I just did not see enough value in getting it because the value I had gotten for free was enough for me. In order for me to spend anything at that point the price would have had to be so low as to make it an impulse purchase.

I think the OP is approaching this the wrong way.

Your ability to convert High ticket items has no relation to the price point by which that customer was first introduced to your business.

As mentioned above, most people start the relationship building process with a free giveaway.

So I'll say this.

(1) Your ability to move your prospects through your sells funnel is solely based on your marketing skills and your ability to build trust and rapport (which is ironically accomplished with good marketing).

(2) You have to know the type of business you're willing to run. I have consulted with multiple businesses all over America And I remember doing work with an insurance company in Ohio (my home state)...They would only do business with people who were "excited" by their cheaply priced insurance because they found that those types of customers were more susceptible to their marketing and as a result -- they made more purchases. However, they also made more refunds (lol, it was my job to lower that, yes great marketing can and in many cases will save a poor product)

I also did some marketing work with a carpet cleaning company, also in Ohio -- They found (through trial and error) that they were more comfortable doing business with those customers who were willing to do business at higher price points. The customers made less purchases, but when they did they spent alot. They also had less refunds.

My point is this -- This business isnt about fixating on price points. (With good marketing, You can take any $7 WSO and sell it for $97+ elsewhere).

BUT...you should be thinking about the type of customers you want to do business with moving forward. (95%+ of WSO customers are attracted to the american dream and easy prosperity tricks/hacks/techniques) So if you plan on providing real business/finance/marketing systems that really make a business grow -- You'll have an extremely difficult time.

However, If you take your $7 WSO (jam packed with google seo hacks, and make $$ on fiverr ideas) to people who are serious about running a business, They might laugh in your face -- because they aren't interested in tricks -- theyre interested in sound principles.

So f**k price points. Know your market. Know your audience. Know what really gets their motor churning (what they desire or expect to gain, what pain they want to avoid, what pleasures do they want to avoid losing, and what pains have they experienced in the past)...The trick is to keep your mouth shut and your eyes open, you'll quickly discover what your audience truly values.

(I will also add this, the type of customer you have is largely determined by how you've "captured" them in the first place...think about that for awhile)

People will buy anything as long as you have created an environment that offers them a good enough reason too.... just look at these two FB games that do over $2 million dollars per day with In App Purchases.

The $2.4 Million-Per-Day Company: Supercell - Forbes

Hope it helps.

PS....I've seen products so bad that the owner had a hard time giving them away for free...

People aren't set in stone what they buy, if there is a service they need they will get it.

There is no such thing as "7 dollar buyers", a buyer is a buyer.

Every person has the potential to whip out there card and make a purchase.

It's how you market to them and how you provide solutions to there problems that counts !

How you provide solutions to their problems is key. The question is how do you do it without selling hype? The comment someone made on perceived value comes to mind again.

You know one model I tried to use was to give away a portion of a product I might have, but then try to get them to buy the rest. This was tricky to do, but I believed it was a model that worked. I have not tried it for a while though.

You're saying that in most cases it's hard to turn a $7 buyer into a $50 or $100 buyer, and I say that's simply not true.

I've turned lots of $7 buyers into $50 to $100 buyers right away through immediate OTO's in the cases where I'd had a $7 product.

I've also had plenty of $7 buyers buy products ranging in price from $1k to $3k.

The problem is that you have to have the perceived value there for them to buy that. If you're trying to sell two reports on "how to get traffic" (just to use an example), you're right -- it'd be very hard to get them to pay more. But if you sell the $7 report on traffic and then sell the $100 software tool or the $300 service to get traffic, it's MUCH easier because the perceived value is there.

- Brian

Yea it may be a little tough because youve already "POSITIONED" yourself as the $7 guy. Your product and price point will attract a certain group of people.

Charging more prices is about MASSIVE value, perceived value and positioning. If you wish to be the low price guy fine. If you wish to move into premium prices then you must position yourself as so.

Tell you the truth, people will make excuses about products being too high.
But if you and your product are THAT good. People will MAKE a way to afford your stuff. You cant stop people from buying what they want. You must make TRULY believe in you and your product!

Then they will spend more money with you. Its ALL about positioning my man!

Nothing screams confidence like a copywriter who doesn't think they can convert traffic.

You're only as good as the mindset you're in OP!

Go read Allen Says "money & power" in the war room, the interview will inspired you.

Actually i like the $7 price point, if you can deliver outstanding product and only sell at $7, you product will convert like crazy and your wso might get product of the day and further boost your sales. i have seen a seller sell a very high value product at just $7 (OTO developer license $47) and he have sold over 6000+.

if you have got 6000 people from a $7 sales, do you still feeling up sad because you can't sell higher price? launch another $7 product that have a $100 value and most likely all 6000 client will come buy again.

6000 x $7= $42,000

Here's my answer:

People don't pay for value (as they cannot translate your value in terms so they can undertsand, unless you do it yourself, which should be the scope of your sales copy)

Stop thinking buyers pay for products because they're getting XXX number of pages worth of value or XXX number of tools worth priceless...

People would rather pay for results. If you know how to write copy that speaks about results, you can charge $97 and more even for a 2-page report.

Try it and you'll see.

Fear is for whiners.

Remember:
"Winners never quit, quitter never win!"

Writing copy seems to be what I struggle with. I guess I got to start looking at some material on how to do this better. There is plenty of information, even some templates.

I agree about finding out who your true audience is, that's for sure!

There are books that I have read that speak on this, but they do it in a way where you try to focus your entire sales page on that. In most cases these books tell me to focus on creating what is called hypnotic copy. This is tough to do and if it was a skill I had I would definitely be selling it as well as benefiting from it myself. Such copywriters are able to charge four figures just to consult with a product owner.

Firstly, the price largely depends on the market (or even the segment of the market) you're in.

Secondly, providing that you are in the right market, low price products are used to qualify prospects.

Thirdly, you should check out your sales funnel (up-sell/down-sell) path to see if you got it right for your target market.

And the last but not the least, if you are unsatisfied with your pricing, work on your positioning as an authority or a brand to charge higher prices, or at the end find more lucrative market.

Cheers,

Veo

That was the original point I was trying to make. Since then I have been told a lot of stuff and it makes sense. I just wanted to know does anyone ever worry about being stuck is all.

They pay a lot more for the same product on ClickBank or their own website. Finding those folks and getting them on your buyer's list is the challenge.

It all depends whether your $50-$100 product is worth that much money, I've brought $7 and $100 products off the same person and had people to the same to me.

Anyone have any stats on this?

"A buyer is a buyer is a buyer." Dan Kennedy. Look, if you get them to pull out thie credit card once it's much easier to sell to them over and over again. The key is delivering VALUE. Make sure that $7 product is worth $47 or $97 and then they will have no problem buying from you again. Undersell and Overdeliver.

Where I live several jewelry stores have closed up. However, the dollar store is doing super. In fact, they just had a major expansion. Bought a much larger space. Their parking lot is full and it spills over. What about their prices. They are cheaper than Goodwill store, plus dollar store stuff is new.

Value must exceed price. If your former customers do not want to buy from you any more... Well, that speaks volumes to me.