I just learned a valuable lesson about assumptions!

7 replies
I had to share this with you guys. Last year on November 16th I released a home study vocal training course. I did it as a 6 month continuity membership. My niche is notoriously "frugal" about spending money, so I thought if I set it up with a low monthly payment the course would be more appealing and more affordable.

On the anniversary day of the product's release I decided to run a birthday sale promotion. I discounted the course 10 percent, threw in another product free for everyone who purchased on the anniversary day, and for the first time, added a one-time payment option.

I'd never offered an option to just buy it all at once before, because I assumed people would balk at the price. Well imagine my surprise when the first two people to sign up went with the lump sum option! In fact more people have gone with the lump sum option at $145 than the 6 payment option at $27!

This really speaks volumes to me about not only offering people a choice, but not assuming too much. It also, I believe, gives my course more credibility somehow. I can't help wonder how many more sales I would have made by now had I had the option available from the beginning. I'm still wrapping my head around generating traffic so my site gets a modest amount, mostly organic.

But in two days with nothing more than a couple of e-mails to my list and a facebook post pinned to the top, I've managed to make over $500 from only a handful of sales thanks to people opting for the lump sum option.

Man was this an eye opener! I thought you guys would appreciate this story. Took me a year to figure it out, lol!

Take care everyone.
#assumptions #learned #lesson #valuable
  • Profile picture of the author John J M
    I've had similar experiences before. I always prefer the ongoing kind of income, but I've found that when people are looking to invest their money, they're sometimes more willing to do it all at once. When thinking about some of the bigger purchases I've made online, I guess I can see why. There is almost always a deal associated with the one time payment option.
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  • Profile picture of the author WillR
    6 payments is a lot to be paying off. I don't want to still be paying for something I bought today in 6 weeks or even 6 months time. By that time I;ll probably be over the thing anyway.

    That's my take on it and obviously others out there are agreeing. I'm always more interested in spending money I have, not money I don't have.
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  • Profile picture of the author timpears
    Assuming always makes an ass out of u and me. Ass-u-me.

    Sorry, I couldn't resist.
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    Tim Pears

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  • Profile picture of the author MusicMinCoach
    I've heard that once or twice Tim, lol! Yeah Will I guess I never looked at it that way, but a bill, no matter how cheap, is still a bill. Several people have indeed taken the payment option over the last year but I wish I'd had the lump sum option there from the beginning. Lesson learned for sure.
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  • This is why testing is so important and the absolute easiest way to increase your profit is by increasing your conversions. You'd be amazed at what even just a SINGLE word change or headline swap can do on a site.

    So... when ya gonna start testing different pricing for both options? *hint, nudge*
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    "Smile, if you're still breathing... it's a good day!" :)

    "Stop Being The Same in A World of Sameness"
    :)
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    • Profile picture of the author MusicMinCoach
      Originally Posted by Mr Unconventional View Post

      This is why testing is so important and the absolute easiest way to increase your profit is by increasing your conversions. You'd be amazed at what even just a SINGLE word change or headline swap can do on a site.

      So... when ya gonna start testing different pricing for both options? *hint, nudge*
      You know, I did do some testing on price a while back, man. But I used a popular recommended plugin to do it, and frankly it didn't work very well for me. And since I didn't even have a lump sum option at the time I tested the monthly price.

      I've done some searches since then but everyone keeps recommending this same free plugin. So I confess, split-testing is one of those things I'm still learning. Nobody teaches this stuff, lol!
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  • You can also do some surveying. Ask your customer base and/or your list what they thought/think about your price. What bonuses they'd like to see etc. It's also free and easy.
    Signature

    "Smile, if you're still breathing... it's a good day!" :)

    "Stop Being The Same in A World of Sameness"
    :)
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