Every product creator in the digital marketing arena faces the same challenge: what should I price my product at?
This post is all about answering that question, based on hard data.
First, recognize that as a product creator launching in the online marketing area, you will be seriously undervaluing your product.
There are 100+ page eBooks WITH video training out there that are complete businesses in a box (provided people take action), and they routinely sell for WELL UNDER ten bucks.
Plus there are powerful softwares that by all rights could command hundreds of dollars, routinely selling for $17 or $27. It’s absolutely nuts. Truly a buyer’s paradise.
But remember the END GAME of releasing products: it’s about building your subscriber list, plain and simple.
That does not mean that cheaper is better. It’s all about how many units get sold, and for that, you need affiliates to jump on board.
Assuming you’re offering 100% commissions on the front end (because why the hell WOULDN’T YOU?), it’s this affiliate promotion that will drive sales and build your list.
So what do affiliates want?
Obviously, to make the most income from your launch as possible.
And we’ve tested a LOT of pricing options, including:
=> $1 front end products with deep funnels
=> $4.95 front end products, priced on a dimesale that max out at $7 or $9.95
=> $9.95 front end products with just a very simple funnel (maybe 2 upsells)
=> and even $17 and $27 products
What have we found?
To consumers, ANYTHING priced under ten bucks tends to convert at about the same rate. Whether you charge $1 or $9.99, conversion rates stay pretty close. Provided, of course, your product offers amazing value.
To affiliates, the drivers of the traffic (and indirect builders of your list), the front end price point plays a MASSIVE role.
Not many affiliates out there are going to promote a $1 product UNLESS you have a sick funnel in place that can bring them some great commissions. And that usually involves multiple products, a complex funnel and thousands invested in sales copy.
More affiliates will jump on once the front end product reaches the $5 to $7 price point.
But the real sweet spot, in terms of both conversions and affiliate promotion? Right around 10 bucks.
Think about it in terms of the affiliate. Let’s say someone that promotes your product can drive 50 sales. At $5 each, they earn $250 just on front end products. At $10 each, they double that revenue. Easy math. Especially when the conversions remain pretty much the same.
For my last product, I started it at $7 on an early bird that lasted all of an hour. After that, straight to $9.97.
Now in ALL the affiliate promotion I did, I was fortunate to get a number of affiliates jumping on the early bird offer.
But once the price hit (close to) ten bucks, I got WAY more affiliates jumping on board. And why not? They’re now making 3 bucks extra PER SALE.
The real crazy part happened once the official 7 day launch closed, and I set the price at $27. That attracted a whole new group of affiliates that are still making sales at that price. So we learned that higher prices will indeed attract a wider range of affiliates interested in promoting your product.
So you can SERIOUSLY increase your list building results through product creation, just by varying your price points.
As for the data, let’s look at some figures from my last release:
=> at $7, we sold about 150 units
=> at $9.97 (price held steady for 7 days), we sold about 850 units
=> at $27 (post launch price), we sold over 100 units, and counting
So what are the key takeaways on how to price your product for maximum conversions and results?
1 – Remember there’s not much difference in conversions for ANY price point below ten bucks
2 – It’s EXTREMELY hard to really do well with a $1 product unless you have an amazingly high converting funnel, and associated sales copy, in place
3 – Buyers, even in the digital space, still OFTEN equate price with value. So as price goes up, perceived value also increases
4 – Higher prices (to a point) attract a different level of affiliate marketer, so experimenting here and being willing to push the price point can make a big difference
5 – You’ll never REALLY know until you try, so test, test, then test some more!
Wishing you the BEST of success in your product launches and we’d love to hear your thoughts and feedback. For more on how YOU can get started in the lucrative area of product creation, check out our exclusive $1 trial here.