The Price Is WRONG, B*@%H!

product creator

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.

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Mark Tandan

Mark Tandan

“The Goofball”, is the oldest member of The Rebels but still thinks he’s a kid. He started in affiliate marketing and moved quickly into product creation, again teaching only methods proven to work. With numerous award-winning products in affiliate and email marketing, he continues to practice what he preaches. He ghost writes emails and sales copy for some very big names online, and has worked extensively in affiliate recruitment for other highly successful marketers.
www.im-rebels.com
Mark Tandan
About The Author

Mark Tandan

“The Goofball”, is the oldest member of The Rebels but still thinks he’s a kid. He started in affiliate marketing and moved quickly into product creation, again teaching only methods proven to work. With numerous award-winning products in affiliate and email marketing, he continues to practice what he preaches. He ghost writes emails and sales copy for some very big names online, and has worked extensively in affiliate recruitment for other highly successful marketers. www.im-rebels.com

4 Comments

  • Sherri ONeal

    Reply Reply July 31, 2015

    I particularly like the part where you said you can’t undervalue your customers.

    In my experience of selling children’s portraits, I quickly learned that the ladies dripping in diamonds rarely spent more than the promotional package eprice of $15. Where I got the $200 sales were from the ones coming in that appeared to have trouble paying the light bill. These people are the ones particularly interested in capturing memories as opposed to fulfilling an obligation to get pictures to grandma.

    See the difference?

  • Terry Jenkins

    Reply Reply July 31, 2015

    That’s some great marketing information you are sharing there Mark. It would be interesting to know if the platform you were marketing on (Warrior, JVZoo, Clickbank) makes any significant difference to pricepoints.

    • Mark Tandan

      Reply Reply July 31, 2015

      Hey Terry, glad you enjoyed. The platform I was marketing on was W+. Typically, JVZoo sees more software products and W+ gets more info products, as this was.

      That’s not a hard and fast rule, but a pretty standard generalization. As such, JVZoo often sees higher front end price points with softwares commanding a higher investment.

  • Taco Verhoef

    Reply Reply August 1, 2015

    Sounds great as I will be launching my first product soon.

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