How do you accurately price your product to make sure it sells? How can you utilize resources to best achieve maximum results?
In the “Internet Marketing” world, so many people get caught up on the “Internet” aspect.
They get caught up on how to get websites up, how to get payment processes running, how to check PayPal accounts.
Instead, you need to concentrate on the “Marketing” aspect. Just because something is online doesn’t mean that it’s not subject to the same rules in the open marketplace.
How to Approach Pricing
This applies to both Software Products and Digital Information Products.
Software: anything where a customer logs on and a service is up and running. It can be anything from a WordPress plug in to a social media site.
Digital Information Product: anything else that a customer might purchase from you online, such as training videos, E-Books, PDF reports, etc.
You need to look at the objective you’re trying to reach. You’re not going to get to a $1 million dollars selling $7 products but you’re not going to get there by only selling 1 really expensive product to 5 customers either. That’s why you need to find the gaps in the marketplace and you should ideally have 3 different levels of products.
Lead generation products: this could be something that you give away but Lance considers anything priced under $47 as a lead generation tool. This means that he can spend money on these products in order to generate those leads who will buy more expensive products later. An example of this is The Paper Template Sales Letter Plugin.
Mid- level products: these are your products from approximately $47 to $200. You will make some money on these but you’re not going to get rich.
90% of your customers are going to take your lower end products.
7- 8 % are going to take your mid-level products.
1 % are going to buy the high- end products.
Finding the Gaps
When deciding where your product should fall in the above 3 categories, you need to find the gaps in the market and take advantage of them.
We’re going to use Lance and Robert’s Backup Creator WordPress Backup Plugin as an example.
When they realized that there was a need and a want for this product and decided to develop it, they sought out their competitors.
What did the competitors’ products DO and how much were they selling for?
They noticed that there were about 3 competitors that seemed to be doing well. The interesting thing was that they all did basically the same thing and were all priced around $197-$297 “one time” and $150 to $300 recurring yearly. They saw there was a huge gap in the marketplace. Why?
Because all of these competitors had a huge customer base and would not be able to lower their prices for future customers without alienating their current customers.
New competitors could not sell it for as inexpensively as Lance, who priced the basic model at $7, because they were missing out on the secret that, for Lance, this was a lead generation product. It was not MEANT to make significant profits.
Because the initial “basic” model was priced so low, he now had room to do ANYTHING else with the product between $7 and $197, which gave him the opportunity to expand and develop the “Ultimate” version at $47.
How to Start Selling Now!
Now that you have thought about your product and your goals and know how to approach your product’s pricing, here are a couple of ways to avoid spending a lot of time figuring out if you have a product that sells.
There are ways to get products made so that you can test the market and then you can enhance them.
On the software side, there is “Private Label Development”-this is when developers write software code and then sell it to you.
www.codecanyon.net: This is a marketplace for developers to develop and sell their software, including the rights. Then, you can do whatever you want to do with it-you can sell it as your own product, give it away as a bonus, etc. You can even the developers to make changes to and maintain the software.
On the digital information product side, it’s “Just Do It”
It’s never going to be done “perfect” so make sure it’s good enough and then get it out there. The marketplace will tell you what it wants and you can continue to make upgrades and improvements.
You can also outsource many aspects of digital product creation.
If you don’t write (i.e. blog posts, E-Books, etc.), the simple solution is to record all of it and then have it transcribed.
On O-Desk (now www.upwork.com), you can get transcription services for $20 for 60 minutes of audio. And, now you have your audio AND your book that you can package together.
Did you know that there’s one secret that every single business on the planet uses
to increase sales, keep customers coming back
and guarantee growth?
Everyone starting a new business is told the same clichés over and over by the “gurus”-
“The Money’s in the List”
“People only buy from who they know, like, and trust”
This where a lot of the “disconnect” happens when people try to come online and build a business.
Let’s Talk about “Know, Like and Trust”
While this old adage may be true, the real question is “how do I get someone to know, like and trust me? How do I build that relationship with my brand and my customers?”
One of the things Lance always likes to do when talking about marketing is to look at offline companies. Look at the brands that we’re all familiar with, who actually implement the same types of strategies, and then look at how you can apply them to your own personal business.
MODELING: looking at what a company is doing that is already successful and incorporating it into your business
So, let’s take an example: think about your favorite restaurant chain. Why are they so popular? It’s because when someone goes there they’re all going to look the same no matter what geographical area you’re in–it’s familiar (the “know”). There are dishes you want and every storefront has the same menu (the “like”). When you order, you can almost be guaranteed it’s going to taste the same (the “trust”). This is the same way in almost any industry-i.e. Target has the same store layout all across the U.S.
How can you implement this in your online business?
If you have multiple products, you want to make sure that the sales funnels are the same across the board.
For example, Lance uses PayPal across the board for payment options.
Ensure that the sales/landing pages look the same across the board and that navigation through your pages is the same. Lance uses a software product called www.papertemplate.com
Always deliver with the same look and feel.
You want your products to come similarly packaged. If you have multiple digital information products you deliver online, try to ensure they all have the same number of modules, for instance. If you deliver a physical digital item, make sure you use consistent labeling and packaging.
But, How Do You Get That First Sale?
So many people miss out with their internet marketing business-they have a great idea, a great message, and a great product but for some reason they can’t seem to make sales or they can’t get over that hump of making repeat sales.
When Lance first started out, the internet marketing business really appealed to him because he thought he could hide behind the computer. He thought all he had to do was put up a web page with a buy button and the sales would start rolling in.
What he found out really quickly was that was not the case at all. He found that he could easily build up Facebook fans and Twitter followers, but what he couldn’t do was convert them to buyers and get them to pay attention to his message.
There are a couple strategies he employed that changed the game for him pretty quickly.
One Little Optin Page Tweak
At a time when many people have just an Opt-In page with an “enter your email here” box, he added a video he made himself with a webcam. He introduced himself and he invited his potential customers to contact him personally via his email.
This showed that he was a real person. If you show your face and say your name, they will recognize you in the future. (Here’s “The Know”)
A Free Training Webinar
He even did this when he still didn’t have his own product yet!!! So, he took another person’s product and walked through the use of the entire thing. In this case, his business partner Robert had a great product, “Action Pop-Up”, but he didn’t have any training videos for it and some of the functionalities were not even documented. So Lance put on a free webinar using GotoWebinar showing how to use it, then directed people to his blog and affiliate link.
This accomplished a couple of things. Yes, people bought but it and he made money, but more importantly, it made him seem human. He didn’t have anything planned out, he made a couple of mistakes, he was answering their questions live. They could connect with him. (Here’s “The Like” and “The Trust”).
This also builds a “know, like, and trust.” People can connect with him, they can hear his message, and it’s a fast easy way to get a lot of traffic.
Stitcher and iTunes get massive traffic without a lot of competition in the field.
This is much less tiresome than “playing the Google game”, i.e. trying to get your website listed and ranked. What happens with that? You’re back to square one. If someone doesn’t know you and they find you in Google and see your page, big deal. But, now if they search you and you have a podcast-they can see your face, hear your voice, and you have an opportunity to demonstrate your authority. They can really build a relationship with you.
Have you ever been presented with an online product sales pitch that’s left you feeling so confused you have no idea what it is that’s actually for sale?
Lance gives you a major tip that will help you avoid this problem in your own product sales and increase your conversion rate.
It’s called The One Sheet (or The Stack) and you need to be implementing it in everything that you are selling online.
Frequently, online product sellers will present a webinar, a sales video or a sales page that will go on and on with bonus after bonus after bonus.
The seller is attempting to use a strategy that in all those things, they’re hoping something will stick and it will be the one thing that you really want to buy. Unfortunately, it doesn’t work and all this does is confuse the buyer.
What is The One Sheet (The Offer Stack)?
It is literally ONE sheet (or webinar slide or sales page) that lists EVERYTHING in your product/program.
Put yourself in the position of the buyer when you are buying a car. When you go to the lot, the salesperson doesn’t come up and start listing for 20 minutes all the features of the vehicle. INSTEAD, all of the car’s options and features, along with their prices, are listed on ONE sheet in the window.
Then, at the bottom of the one sheet, there is a bottom line price and then a YOU PAY TODAY price that is less expensive.
Why is this tool so effective?
Ask yourself: when does any buyer purchase something?
What really makes someone buy a product is if they are paying less than what they perceive the item is worth.
Although Lance may have a product with several slides, at the end of each module, he does a One Sheet that shows everything in ONE place. A buyer needs to know everything they are getting in one package.
For webinars: put at least one slide over and over between bonuses, etc. that shows EVERYTHING on it that you’re offering. Your potential customer can see how it adds up.
For video sales letters use the same thing.
For sales pages, you DO want to have a link after every bonus that they can click on. BUT, then when it drops down to the order form, there should be one table that stands out that lists every single component.
**There is a perfect example of this at www.membershipcube.com
Do NOT confuse your customer. If you can’t show them everything in one place that you’ve talked about, they will end up not believing you, feeling less comfortable and trusting of you, and this will decrease your conversion rate.
Your job is to make it crystal clear what you are offering, what they are receiving and what the value is as compared to what they are paying for it. THAT will encourage faith in you, your product and will result in an increased conversion rate.
Episode Sponsored By: Setup Your Own Online Membership Site Today!
Do you wonder if anyone actually lives the internet marketing lifestyle?
In today’s podcast, Lance tells you about 2 significant tools to help you manage and excel at productivity.
One thing that everyone wants is time. Although a lot of people get into internet marketing because they say they want money-the REAL draw is time. They essentially want the money that will ALLOW them to have the time to do things they enjoy-such as being with their family, engaging in their hobbies and doing other things that they enjoy.
Too many of us are “working to live”. This means we are spending ever increasing times working so that we can live but then we have to work to sustain that lifestyle. Lance wants to show you how you can get your internet marketing business successful so that you can cut back and/or omit that “9 to 5” and have more time to yourself while making money.
Productivity Helper #1: The Rule of Four (4DT)
What are the 4 most important things I have to do TODAY to keep my business up and running?
- Change the way you think about your tasks
- Trust that you know what needs to happen to be successful in your business
- Stop planning every minute of every day ALL day. If something goes awry or takes longer than anticipated, your entire plan is shot. This is not effective for you and your business.
INSTEAD, choose 4 tasks each day.
Choose 4 things that need to get done. 3 of these are going to be things that you can do at one sitting that take approx. 45-60 minutes all together.
Then, your 4th item is a “gimme”-something that’s real quick and easy.
This means even if you do nothing else all day, you got FOUR things done toward moving your business forward
Time and again, Lance has seen the evidence that the magic number IS four-people that don’t stick to the 4 things get burned out. No burn out=MORE PRODUCTIVITY!!
When you break down all of your responsibilities, business obligations, etc. , into four per day, at the end of the month you’ve done 120 things!!! Imagine how successful and motivated you will fee!!!
Note: Not everyone’s four tasks will be the same. Some people are better at certain tasks than others. Break them down until you have 3 that you know won’t go beyond the 45-60 minutes. As you advance and learn more, you will find that something that took you 45 minutes at the beginning of your business, might only take you 10 minutes by the time your 30 day time frame has gone by.
Productivity Helper # 2: Google Calendar
This is for things you don’t want cluttering up your head but that you want to remember
Ex: Dr’s. appointments, kids’ sports activities
Do not overstuff it with “tasks” and notes-then you will never look at it and it defeats the purpose.
This is only supposed to be so you can remember essential activities and make sure you do not over-schedule
Additionally, if you have a business partner, you can have a shared Google calendar it automatically syncs to both of you
Now you don’t have to have a meeting about an upcoming meeting! You just know where and when to be there and voila-cleared up your head so you can move on with other things.