There’s one thing I really do not like about the WSO Forum – and it’s not (only) the collection of jaded pricks that can be found there. 😉
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)
Well, as fate would have it Allen Says was my 6th customer – he loved it, promoted it on the WF (when that rarely happened) and 3 weeks later the doors closed at 521 sales.
Why 521? 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.
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 –
But 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.
I sold this WSO for Fast Path to Cash for $17 – that’s what felt comfortable, and it’s a definite discount over what it will sell for at $37 or higher.
Does it work everytime? No – but you can also make that killer offer later, if needed.
Is a Drip the Same as a Drop?
Which leads us to the WSO thing I hate.
That’s an important market, but it’s not the whole market by any means – 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 the WSOF is that people tend to take on this discount mentality. Seriously – this product you paid $17 for will sell for $37 – and by simply adding a few videos of me reading the book with some PowerPoint slides I could push it up further.
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 pretty darned 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 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 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 of the Forum – good people to know, good future business partners, good employees (Sancho, my 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, consider doubling that price.
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 –
Here’s a great write-up Chris Munch shared, if you want guidelines for the WSO Forum (but don’t limit yourself to that – and they’re only guidelines to be considered in the decision for YOUR business).
All the best to you – X