But first, did you know the very first eBook I sold in the Internet marketing niche (I’d sold others outside it) was priced at $197?
Wow – that’s an outrageous price for a 90-page ebook, huh? (in full disclosure it also included a very cool script and a support forum too)
I sold 521 copies in 3 weeks – and then I took the product off the market, forever. I promised to limit sales to 500 copies and when I went to bed that night we were 489. When I got up at 6:30 AM the next day 32 copies had sold overnight!
Now, that book was special at the time – the information was extremely unique and I still employ some of those techniques TODAY.
But here’s the truth – I never EXPECTED to sell that product for $197.
My pricing strategy was this – price the book at $197 and offer $100 off because that seemed to work for other people. And IF I’d followed my lemming approach I would have lost A LOT of money because –
The bloody thing sold like crazy at $197!
This was a powerful lesson – and since then I have challenged myself to price almost everything I sell for twice what I feel comfortable selling it for.
No – I don’t use a formula. I consider “What price feels comfortable for this?” – And then I double that.
Does it work every time? No – but you can also make that killer offer later, if needed.
Is a Drip the Same as a Drop?
Here and there you run into people, or marketplaces that have a pricing mentality. If you’re not careful you’ll adapt that same mentality. Because one market doesn’t agree with the value you place on your product that doesn’t mean game, set, match.
One marketplace is not the whole market – it’s a fraction – a glass full in the bucket, a drop in the drip – as hard as that might be to believe.
And when people tend to spend most of their time in ONE world, they believe that’s just how the WHOLE world is.
Oh my friend, that is DANGEROUS THINKING.
The problem I’ve observed in places like the Warrior Special Offers Forum is that people tend to take on this discount mentality.
I think many put everything in this one market, and WAY undervalue what they offer.
Businesses built on “we’re cheap” cannot win in the long run – so only use “cheap” to accomplish an objective.
Yes, The Company We Keep
There’s a saying that your income will reflect the average income of your 5 closest friends –
In my experience, that’s spot-on true.
First, consider the customers who come with a price point –
Second, consider the affiliates or joint venture partners who come with a price point –
Now, I’m not saying to get all elitist but, you know, given the choice who’d you rather spend your time with? A bunch of people who are like “Dude, you could have found all this stuff for free instead of paying $7 (if you spent your entire weekend surfing the Internet ) – you chump” – or – people who recognize the value, the true value, of what you provide?
The thing about cheap is the quality of customers shifts.
You’ve heard of the syndicate? Guess who bought my $197 ebook? The customer list was populated with a virtual who’s who of IM gurus including Kern, Fortin, The Rich Jerk, Deiss, Baxter, Woo-Ming, Says, Johnson, Chaperon, Comm, Brunson – and that’s just off the top of my head. A lot of them became friends, even business partners (but to be clear, I’m no syndicate guy) .
A product *can be* more than a money-maker – it can be the calling card that opens doors.
Have a pricing objective
My objective is to skim the cream off the top – good people to know, good future business partners, good employees (Sancho, my long-time TRUSTED support provider and much more, was a serial customer), good affiliates – even good friends.
We aren’t talking about all customers, by any means, and you might notice my tone is a bit … rough in the sales process.
Why? I assure it’s by design; calculated by experience –
It’s that way because I want great customers to work with and serve. That tone, coupled with a fair price, has done the trick over the years. (And I do need to stress “fair price” because although my products have been priced high I deliver tactics, strategies and ideas that aren’t found in the mainstream.)
This stuff matters, to me at least, just as much as the bottom-line. I want cool people around – everyone else, go away.
Of course, one of my core philosophies in marketing is that polarization is a good thing, a necessity – you want to make a quick splash in a market? Be the contrarian.
1. Whatever you feel your product is worth, double that price. You can discount later (not recommended) or add value to the offer (recommended).
2. Think about “why” you’re pricing the way you are – is it because that’s what everyone else does? Or is there some other reason – some other ultimate objective?
And, of course, don’t forget about affiliates –
All the best to you – John