The current trend - give it away - WHY?

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The following are the opening paragraphs of a report I have written. I think the report has a good solid value (one young lady made $3,100 in one week by doing what I suggested). The current internet marketing trend seems to be to devalue everything by giving it away or selling at ridiculously low prices.

I am trying to find a way to market this report with the help of another warrior but is the current mentality going to devalue it before anybody else reads it?

So, you want to start selling of line, do you?

I suppose I can guess what has prompted this decision. You've been reading all those emails about the off line cash cow, haven't you?

You really believe that there are businessmen out there literally salivating in their eagerness for you to walk into their domain and take $1,500 off them, don't you?

You really believe that a businessman without a web site is going to weep in gratitude that you have finally condescended to enter his emporium and explain how you are finally going to grant him his heart's desire, a web site of his very own!

I hate to disappoint you, but it isn't like that.


Businessmen are not as stupid and ignorant as many of the cash cow promoters would have you believe. If they have survived in business for more than a year, they will almost certainly know more about business, their own business in particular, than you will ever learn as an internet marketer.

It could come as a great shock to you but maybe the man you are talking to about web sites hasn't got one because he simply doesn't want one! Maybe he has looked at the costs and benefits and decided that benefits do not begin to outweigh the costs. Maybe he can't actually see that there are any benefits!

I'm talking out my hat, of course.

You've read all those inspirational posts in the various forums you read and subscribe to. You know the sort of thing - 'This offline cash cow is HOT!' followed by the story of how the author walked into a business and walked out half an hour later with $1,500. How many times have you seen that sort of story?

How many times did you see that same story enhanced when the author repeated his success? Not many? Really? I wonder why?

But you still believe those posts, don't you?

Not only do you believe them, but you naïvely believe that the story is simply the opening shot in the author's offline battle to earn a huge income.

I'm sorry, but in the vast majority of cases I am prepared to accept that this one off success was the first and final result. This one off success is what anybody would have expected if they had simply walked into every business they could find in a week and simply said, "I build web sites - do you want one?" It's an aspect of the law of averages.

You have much to learn, young Barachim

Before you can sell to an offline business you must know what makes such a business tick. You need to understand what drives the owner to get out of bed each day and continue to pump his life's blood into it.

Even more, you need to know what affects the flow of traffic through the front door to the cash desk. You need to know this because this is the one aspect of his business that every businessman genuinely desires above all else.

Once you know what affects the flow of traffic, you need to be able to present a viable, affordable and demonstrable innovation that will impact favourably on the traffic flow.

Now, traffic flow is good but it needs to be accompanied by a cut in expenses if it is to be as effective as possible in securing you a client.

What does that mean?

What that means is that you have just discovered the two part Holy Grail of small businesses.

More customers and less expense!

What were you going to offer him?

Well, as I said, you've been reading all the emails so I would guess that you were going to offer him one or more of the following:-
  • A web site
  • S.E.O. services
  • Lead capture
  • Email marketing.

These are good services to offer but how do they answer the Holy Grail requirement?

1. A web site gives him more visibility and credibility
2. S.E.O. gets him more visitors to his web site
3. Lead capture allows him to know who his visitors are
4. Email marketing allows him to address his visitors

Where are the new customers? Visitors might be converted to customers with some effort but none of these four factors will produce a new customer as the prime result of being.

Where is less expense? Certainly, you are not going to provide a web site, S.E.O. services, lead capture and an email marketing system for nothing so, not only have you not shown him a new customer, you are increasing his expense. Do you suppose you will sell him?

If you started to read a report that started like mine, would you be
  1. Intrigued enough to read more
  2. Offended by the language and inferences
  3. Inclined to simply ignore it
  4. Read it but ignore it
  5. Assume that I did not know what I was talking about
My report is a good tool to help market to offline businesses and has seen success already (not surprising since it is what I was doing about five years ago before I had to stop working) so why this obsession with giving things away or selling at way below value?
  • Profile picture of the author Jared Alberghini
    Where are the new customers? Visitors might be converted to customers with some effort but none of these four factors will produce a new customer as the prime result of being.

    Where is less expense? Certainly, you are not going to provide a web site, S.E.O. services, lead capture and an email marketing system for nothing so, not only have you not shown him a new customer, you are increasing his expense. Do you suppose you will sell him?


    Art, very intriguing... these last two paragraphs are brilliant, they left me hanging, thinking, "I've got to hear the rest of what you have to say... I've got to learn these Secrets"

    As for your question about people practically giving stuff away, here's my take on it... Number one, there is a lot of crap out there, a great deal of re-hashed PLR stuff that was written by someone who doesn't even know what they are talking about in the first place. This is usually the throw away "bonus" crap that people use as "bait".

    The "bait" is usually followed up by a higher ticket item on the backend/upsell.

    However, there is some genuinely great stuff that is (in my opinion) way too cheap, so it's perceived value is much less than a product of lesser quality with a higher price.

    There is also the other end of the scale, where some big ticket items for $1997 aren't worth the CD's/paper it's printed on, but because of the well known person(s) that's pimping it, it's percieved to be very valuable.

    I believe what you have written above is very tasty looking bait.

    I would say for your report, offer two options... the first option, just the report, then option two would be to include full support... option two you could charge double, if not even triple. Coaching is very lucrative, and there are plenty of people looking for 'offline coaching'.

    Do you have a price point in mind for just the report by itself?

    Jared
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    • Profile picture of the author oneempowered
      For your poll, I would be inclined to choose both #1 and #5.

      I would "be intrigued to read more," because you demonstrated an understanding of some marketing principles and professed to have a good solution. Also, kudos for bringing up cost savings, because that's something that hasn't been discussed enough.

      I would also "assume that you didn't know what you were talking about" because you betrayed that you may not have a firm understanding of other direct-marketing principles. For instance, "getting new customers" is only one of 3 basic ways to increase revenue. It's also the least productive way, the most expensive way, and the toughest way. Don't get me wrong, it's still an important way and the internet can make getting new customers a lot less expensive than traditional advertising.

      These are principles that advertising salespeople rarely ever learn.

      So, I would read more to see what value your report contained.


      As for your question about giving it away and why some people do that ...

      the purpose for giving something away is:
      • Lead generation
      • To invoke the principle of reciprocity

      If you had several products in the same niche, it might make sense to give it away. Or, if you really wanted to create an arsenal of products in the niche, giving something away now would be increase your long-term results.

      It's similar to the Loss Lead strategies used by retail stores when they sell an advertised item at below cost to draw customers with the knowledge that most will buy other items too.


      If the report is all you have to offer (and it provides sufficient value), then don't give it away. By all means charge for it.

      If you want to test the FREE strategy, then find something else to give away related to the niche, and sell your report as the OTO.


      Hope this is helpful.
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  • Profile picture of the author artwebster
    I would also "assume that you didn't know what you were talking about" because you betrayed that you may not have a firm understanding of other direct-marketing principles. For instance, "getting new customers" is only one of 3 basic ways to increase revenue. It's also the least productive way, the most expensive way, and the toughest way. Don't get me wrong, it's still an important way and the internet can make getting new customers a lot less expensive than traditional advertising.

    Since I have only been training salespeople and telemarketers for twenty years or so, I suppose there could be direct marketing principals of which I am not aware.
    While running my own businesses (offline) for thirty years, I do not recall EVER a sales person who came to me and said "I will cut your expenses and probably find you more customers." Everybody wanted me to give them money! Now I am able to train people to give money back to the prospect while increasing the probability of finding new customers.

    Unless the laws of commerce have changed radically, businesses still rely upon cash customers for all of their revenue. It would be fascinating to learn the two basic ways to increase revenue that do not involve customers.

    As for the internet being a less expensive way of getting new customers, in the local market that is not true. The internet can probably find online visitors - a visitor is nothing unless he becomes a customer. With the charges being bandied about within the OLCC streams, I very much doubt that the internet is even the third or even fourth least expensive method. My report shows where the potential customers are, in real life, and how to grab them.
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    You might not like what I say - but I believe it.
    Build it, make money, then build some more
    Some old school smarts would help - and here's to Rob Toth for his help. Bloody good stuff, even the freebies!

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