Price Point Strategy

June 30, 2008

What is your price point strategy?

Or for many internet entrepreneurs, maybe I should be asking if you even have a strategy to your price points?

If you look at my business, you’ll see I have products at multiple different price points:

Low Priced Lead Generators

Do you really think I see www.ChooseYourMarket.com as a major income generator?

No I don’t. It’s a lead generator. The product is using the $7 secrets script so that affiliates can promote it and keep 100% of the money (all buyers are able to promote it).

As a sidenote, I originally priced it at $7. I tested it against $9.95 and $10. Ten dollars even has been the best price for it by far (I’m going to be testing it a little higher soon as well such as $12 and $15).

This product is a “self liquidating” lead generator. When I use it for any type of advertising, my only goal is to try and break even. Generate a lead for free (that’s why it comes with 100% affiliate commissions). I will have a couple of similar products offered like this soon.

Those products are not my business. They simply lead generators.

Have you ever ordered from a infomercial?

If so, you know they have a whole series of upsells (often 5 or more) once they get you on the phone. Without those sales, they’d be losing a fortune on the front end from all the leads they’re generating. The real money comes in how they follow-up on those leads with higher ticket and continuity items in the future by mail and phone.

Low to Medium Ticket Product Sales

A majority of my “products” fall into this category from the $50 to $200 range.

For example, www.MyBloggingMastery.com and www.MyEmailMastery.com are both in this price range.

These are low ticket products still, but I also consider them the “bread-and-butter” price point in my business. They can be sold directly from a website. You’ll see I often link directly to these items from my blog and in some of my advertising instead of using a squeeze page to get the email.

While at times I will have email followups in place for products like this, they’re not as essential as they come in for the next type of product.

Medium to Higher Ticket

Currently you don’t see any what I’d consider “high ticket” products being offered here. The Internet Lifestyle Retirement System is still in medium ticket range although it’s at the point where it requires more than just the sales copy to make the sale.

You’ll notice it has a free training video. Plus I give away a free report. There are email followups.

I also do interviews and/or teleconferences with others when they want to offer it to their audience. So often it’s not just a straight sell except for when my customers from the first two categories buy this as one of their backend items.

I know some of my readers probably think $500 is high ticket. It is at the very beginning of that. You’ll see many products in the $1,000 to $2,000 range. I’ve worked with some information producers who have products and seminars in the $5,000 to $10,000 range.

Once you move up to that level, now you’re moving into real high ticket products. Imagine what a $5,000 sale does to your business math. You only need 200 of those to produce a million dollar income (instead of 10,000 $100 products). Instantly you’re able to afford more on your advertising across the board.

The closest I have currently to a higher ticket in this business are my coaching services at $500 and $1,000 a month. I have clients who have been with me for 2 years straight now (although they came in at a little lower prices since I never raise the price on active clients).

Continuity

We try to put some type of continuity income in every business I work with. In this business, this is the paid monthly newsletter. You could also use a monthly membership site or even a CD/DVD of the month club.

The concept is you always have a strong income source that’s residual every single month. You know you have ______ coming in next month even before you make a single sale of one of your other products.

That is your base income in your business.

What is your price point strategy?

7 of My Favorite Blog Posts

June 26, 2008

It’s been a while since I linked out to some of my favorite posts on other blogs. These have all been collected from the past couple of weeks. Discover how to find a customer support person, sell high margin products, build a copywriting business, and improve your discipline. Enjoy!


How to Find a Good Customer Support Person (Or Any Outsourced Staff)
by Yaro Starak.

Very good post on why you need to bring in team members, and where to find them. Yaro doesn’t use the freelancing sites. Instead he does one better by going to his own contacts (both off the internet) and through his blog.

Low Margin Products vs. High Margin Products by David Bullock

David shares the same point I’ve made several times before. It’s much easier (and lower stress) to run a business where you have high margins for a good portion of your products. It simply provides you with more money to spend on advertising, outsourcing, etc. It’s a tough business trying to earn your living with $10 products unless you want to manage a large support structure.

Answers to Your Most Important Questions About How to Build a Copywriting Business by Ryan Healy

That title is a mouthful. Ryan and John Angel produced a 23 minute powerpoint presentation answering the best questions submitted to them about building a copywriting business. Very good information.

Power of Commenting on Blogs by Darren Rowse

Seven minute video using Crazyegg heat maps to show what people are clicking on blog posts. Watch this and you’ll see most of the clickthroughs are coming through links in the comments.

One Looooong-Arse Copywriting Lesson by Ben Settle

This is one long copywriting session! I’d recommend printing it out so you can read through all the suggestions Ben gives you in this post. Impressive and useful ideas.

3 Questions Your Copy Must Answer to Succeed by James Chartrand

Where Ben gives you a long copywriting lesson, James gives you a very simple one with the 3 questions your copy must answer to succeed. I’d write out the 3 questions as a final checklist to make sure your copy answers all three (no matter how long or short it is).

Why Do Entrepreneurs Struggle With Discipline? by Monika Mundell

Discipline is always an issue for entrepreneurs. It’s so easy to waste time or simply not stay on track with your projects and goals. Monika gives a bullet list of suggestions on how you can win the discipline battle.

Internet Scams

June 23, 2008

I’m sure you’ve seen and heard the promises.

“Earn $538,000 In Your First Year Online”

Or:

“Make $39,463 Each Month Working Only 1 Hour a Week”

I could continue on for pages with the types of promises made about internet businesses.

In some cases, those statements are true about the authors. They really did accomplish that or they really do earn that much with little work now.

The problem is those numbers are nowhere close to the truth for the average beginner. And it puts unrealistic expectations in their head.

One of the first things I ask any of my coaching clients is about their goals.

Most of my clients have really good goals I get behind them on and help them work towards. But once in a while, I run into that brand new business owner who tells me their goal is to make $100,000 in the next month. Woah! They’ve been listening to the scams, and we’re in trouble before we even started.

Is that possible? Yes, it’s possible. Is it likely? Not for a brand new beginner. They don’t have the experience, the contacts, or the lists to make it happen that quickly.

A much better goal is to replace your work income the first year (that has been done many times). This gives us enough time to get a campaign rolling, test, and possibly even fix problems that may occur.

Don’t believe the hype of fast money with no work.

Take a look at this site my friend Fred Gleeck recently put up about making billions in minutes:

http://www.billionsinminutes.com

It’s a parody by the way in case someone doesn’t get it.

Here are a few characteristics to know you about to be scammed…

1. Big Promises of Specific Amounts of Money Quickly

Yes, you can earn quite a bit online. In some cases they have even earned that much money. Although income claims like that always make me a little suspicious anymore after seeing how many of them simply tell you their gross sales numbers (so what if you sold $200,000 in your 3 month product launch when you spent $190,000 on fulfillment, affiliates, etc.).

They’ve made money online, and you can do it too.

How long did it really take them to get to the point where they could make that kind of money quickly? How many hours did they invest first? How much did it cost?

Here’s the thing about overnight successes. They often take years to grow in the background. It’s kind of like planting a seed. You plant the seed and may not see anything for weeks or months. Then all of sudden it seems to grow up overnight.

Those overnight success stories often have the same foundation.

2. Tons of Pictures of Their Wealth

These are often shown just to get your “greed” worked up. Look at all these awesome things I own that you could have to if you buy my product.

On some sales pieces I’ve seen, almost the entire thing is about all the items they own. It’s not about what they’re offering you at all.

Sure, part of copywriting is showing the dream. In business opportunities though, it’s often taken to extreme excess.

Here are the yachts, mansions, etc.

Where’s the substance?

3. No Work Required

That’s a funny one…lots of money with no work.

Here’s the fact. If you don’t create value for others, they’re not going to give you their money. It takes work to get the ball rolling in your internet business. Yes, you can live an Internet Lifestyle where you work when you want. You can even automate or outsource large portions of your business, but it takes time to put those systems in place.

It’s kind of like the space shuttle. Notice how much power it has to put out during liftoff. The boosters are required to get the space shuttle up, but they’re dropped off.

It’s a lot of work getting your internet business going (you need those boosters starting out). But then as you eventually start plugging in all the systems in place the work required begins dropping off.

Here’s some of the text from my Internet Lifestyle Retirement System…

You’ll notice I don’t shy away from the word, “work.” Business opportunity sellers will tell you how you don’t have to do any work. They say, “All you have to do is push this button, and money comes out…”

Come on. If someone tells you that you never have to do any work, they’re scamming you. I had to work to get my business started. You’ll have to work as well. You’re just not paid for the hours you work. It’s not about trading hours for dollars.

You’re paid for the value you create for others. Create that value. Put business systems in place to spread your message automatically. Follow the system again to build additional income streams and grow your business.

What If Its Not Working?

June 19, 2008

There will be times where your projects don’t go the way you want. The project you’ve worked so hard on doesn’t produce instant results and people don’t come rushing to your website to buy what you’re offering. Everyone has something go wrong at times, and the project isn’t as a profitable as you wanted or expected. What can you do in these situations and where do you look to first?

Below are a list of 8 strategies you can use to turn your failing project into a winner. All of this assumes you’re using the strategies such as market research, probes, sales letter websites, email follow-up, PPC ad testing, etc. This is not an extensive list of things to look for in creating a winner project, but it gives you the same starting point I use when I look at client’s projects.

Strategy #1: Improve the Copywriting

For many sites, the single best investment they could ever make is to hire a professional copywriter to either do the copy or at least review and edit the copy. A website which has a conversion rate of only 1% will be beaten by a website with a conversion rate of 3% every time in every type of marketing if they’re selling a similar priced product in the same niche.

People often look here last, but it’s one of the primary keys to creating a successful site. Create a pitch which focuses on people’s emotions and then justify their buying decisions with a logical presentation to support it.

Strategy #2: Do a more extensive probe campaign.

Concept is more important than copy. All your words can be correct, but if they’re not focusing on what your visitors really want to buy, it simply won’t work. If you have an extremely well written site which isn’t pulling, you may need to go back to the drawing board to make sure you’re focusing on the right buttons which cause visitors to buy now.

Put up another probe campaign and ask a different set of questions. Find out directly from your visitors about where you’re missing it. Success is created by finding out what people want and selling it to them. If what you have isn’t selling, you must not have found out what people want!

Strategy #3: Examine your email follow-up messages.

Do you have an email follow-up series in place to keep bringing visitors back to your website? If you don’t, you need to work on that today. If you do have a series, but people still aren’t buying, take another look at your email follow-up messages.

A mistake I see a lot of people make is to have the wrong sales/content mixture. You need to have enough content in your series to keep people interested in reading, but don’t give away so much content that people don’t need your product anymore. The purpose of the content is to give visitors a “teaser” and a taste of the product you sell. It’s simply the appetizer and not the main course.

Strategy #4: Specialize your sales process to tighter niches.

You might find you have good sales copy, a good email series, and you’ve hit the right hot buttons, but your product still isn’t selling. At this point you should take a look at specializing
your sales process. This means taking some of your highest traffic keywords and creating a sales site just for them. Focus your headline exclusively for those visitors.

Make sure the stories they see relate to them. Bring testimonials which would speak to them closer to the beginning of the presentation. The Internet is not a general market. It is composed of tens of thousands of tiny little sub-niches for you to focus and sell to.

Strategy #5: Research the competition to find out what they’re doing.

If your competition has been around a while and consistently outbids you on keywords, what are they doing differently? How can they afford to spend more than you and still make a profit? How is their sales site? What kinds of email follow-ups do they send? Where are their price points? What do they offer on the backend?

You don’t have to reinvent the wheel. Find out what successful competitors are doing and how you could emulate it in your own business.

Strategy #6: Refine your keywords & bidding process.

You may find some keywords are extremely profitable while others are losing money. Focus on the successful ones and find more similar keyword phrases you can use. For the ones losing money, try using quotes/brackets or changing your bids.

Test different ads constantly. Some of the keywords you expected to work may never work and will eventually need to be eliminated. If 50% of your advertising is working and 50% isn’t, then keep running with what works and eliminate the rest. My own past experience tells me that 50% or more of first ads don’t work. This business is all about testing until you keep only the things which are working.

Strategy #7: Modify Your Offer.

You may need to lower or raise your price. Some products sell just as many copies at $97 as they do at $47. Other items increase sales 10 times by dropping to $19.95. Pricing can sometimes be a difficult issue, but you can find the right price for your offer. You can also test offering payment options such as 3 payments over the next 3 months instead of the whole fee upfront.

You may even consider a “trial offer” where someone pays a token amount such as $1 or simply the shipping expenses and the rest of the product price won’t be charged for 30 days. They get to test out your product and then decide if it’s right for them or not (this approach has doubled or tripled sales in many markets, but it always includes higher return rates).

Strategy #8: Add in a backend offer.

You may try everything and still lose money on the first sale to a customer. It’s still not over! If you lose $10 off every new customer but your average customer buys $100 in backend items over the next year, you’re running a VERY profitable business.

It’s all about having a system in place to continually sell other items to your clients. This is where the real money is made. Create your backend email follow-up series and begin selling other items to your current clients to turn your unprofitable business into a profitable one.

2 Day Special Coupon

June 16, 2008

The special coupon has expired but the product is still available currently.

Fred Gleeck has done over 700 products from interviews.

Recently he shared with me his entire system of how anyone can create their own information products using other people’s information, credibility, and experience.

You can find out more about it here:
http://www.myinfomastery.com

Here are the 8 steps we covered…

Step One: How to Choose Your Hot Subject

Step Two: Track Down Experts for Your Interviews

Step Three: Recording Over the Phone and/or In Person

Step Four: How to Come Up with the Right Questions to Ask

Step Five: Become Comfortable on the Interview Itself

Step Six: How to Package and/or Duplicate the Product

Step Seven: Selling It Online

Step Eight: Make Even More Money From the Interview

An mp3 version and a 4 CD version are available.

Go to: http://www.myinfomastery.com

Click on the link as your normally would to order. Look to the right of the order page where it says: “Coupon Code (optional)” right underneath the “Hacker Safe” logo on the right.

Click here now to find out more about the Ultimate Interview Product Solution…

Fred Gleeck Interviews

The Truth About Traffic

June 12, 2008

What is the number one traffic generation strategy of many business owners? Sometimes it’s good to not just listen to what people say, but to also keep an eye on what they’re doing to promote their business. Here’s a short video where I talk about this very subject.

35 Ways to Increase Web Profits

June 9, 2008

Would you like 35 ways to increase your web profits?

Some of these techniques involve blogging. Others are focused on conversion. And still others revolve around the safety of your business and search engine strategies. Which one will be the breakthrough you’re looking for in your business?

A couple of weeks ago I was out in Vegas with Fred Gleeck. During that period we recorded two new products.

One of those products was about how to become an Interviewing Pro (Fred has done over 2,000 products and 700+ of those are interviews). I’ll do a special on it soon.

The 2nd one is all about the 35 ways to increase your web profits. I had considered doing a special here, but I decided on something a little different.

Instead I’m combining it with the June Monthly Mentor Club newsletter.

This month the newsletter also covers all 35 strategies in a cheat sheet format. It’s perfect for keeping on your desk and generating profitable ideas one after another.

Plus you will get the entire 2 hours and 49 minutes of Fred interviewing me about these strategies in mp3 form.

PLEASE NOTE: Only the print edition sent out on June 10th a 9 AM Eastern contains the link to download the mp3 audio interview. If you are not subscribed at that time, you will NOT get the interview (and all the additional tips that come out as Fred is constantly taking notes to apply these strategies to his own business).

You will be able to buy the interview separately online within the next week, but I plan on testing it closer to a $50 price for the mp3 version (the newsletter is only $19.95 plus includes a load of bonuses just for trying it out).

Here are just a few of techniques you’ll discover:

– The easy way to write your own book and receive feedback on it before it’s even published (Strategy #3).

– A simple change to make to all of your websites that can quickly boost response by 25% to 50%…and very few marketers even test this (Strategy #9).

– Another very easy change to your websites that has been proven to increase conversion by 10% to 15% each time I’ve used it (Strategy #11).

– My #1 Free Traffic Generation strategy that has improved the results of all my sites ever since I started using it (Strategy #18).

– Why the majority of internet marketers find themselves working for peanuts and how you can turn this around (Strategy #24).

– A JV Strategy that bonds your partners to you where they turn a one-time promotion into a long-term promotion of your products and services (Strategy #31).

And many more…

All of them are very simple to apply and use. It’s just many business owners don’t think about them or test them. Which one of these 35 strategies will be the one that takes your internet business to the next level?

Subscribe today:
http://www.monthlymentorclub.com

Note: There are actually 36 techniques included in the newsletter!

Easy Profit Increase

June 5, 2008

Want to increase your profits by 20% to 50% today?

It’s easy.

Simply add an offer to the thank you page of anything you give away or sell.

When someone subscribes to your list, offer something on the thank you page. You could even set it up as a one time offer or limited time offer.

The easiest method for limited offers is through setting cookies although that method most definitely isn’t perfect as some people delete cookies. See here for a simple free script… You can also find more advanced scripts out there that work off IP addresses and databases.

When they buy any of your products, your thank you page is prime real estate for the next offer.

Every thank you page should have an offer for another related item.

What happens after they buy the next item? It’s another thank you page with an offer.

What if you don’t have any other related products? That’s simple. Find someone who does…and offer their product on your thank you page. If you have a large number of sales coming through on your item you can easily setup a special joint venture with someone else to sell their product on your thank you page. If any of my products would be a good fit and you have a lot of sales coming through, I’m sure we could work something out.

If you’re just getting started in the market or your item isn’t producing a lot of sales, you can easily join an affiliate program. Write a recommendation for the product and post that to your thank you page along with your affiliate link.

You might say, “But I don’t want to be seen as a pushy salesperson!”

You could even do these thank you sales messages very gentle. For example, look at how gentle this one is after someone buys the Internet Lifestyle Retirement System: http://www.internetlifestylesystem.com/thankyou.html

All I do on that page is thank you for your order and then say, “You may also be interested in Blogging Mastery – setting up and profiting from your own blog…”

Talk about being gentle! That’s much more gentle than the majority of my thank you pages, but it is still convincing 18% of customers to buy the next product (being more aggressive on some of my other sites has higher rates).

You might say to me, “Terry, this is all just too simple. I was expecting a deep secret.”

Often it’s the basics we end up forgetting. While writing this post I reprimanded myself for forgetting this on several of my products! And if I’m forgetting to do it at times, it’s pretty likely many of my readers are as well.

3 Rules for Making Offers

June 2, 2008

You probably notice at times I run special offers here in this blog and my email lists. I run limited time specials when each new product is released. I’ll also run other limited time specials at times.

If you’re not doing the same, you’re missing out on a good portion of your blog and list profits.

There are always at least three parts to any special offer.

If you don’t have all three of these in place, your offer won’t produce the results you’re looking for.

Here are the three key areas:

1. Big Additional Benefit

You might offer a discount off the normal price (most of my product launch specials are this type). You can also offer additional extra bonuses, payment plans, package deals with other products, etc. What is the big incentive people will receive now that they can’t get later?

Most of my product launch specials are 50% or more off the normal price which is obviously a huge benefit to jump in then. Other specials I’ve run have included several products together for the price of one and add-on bonuses (such as a web review along with the product purchase).

2. Scarcity

If people don’t have to take action now, they won’t. They’ll think about it. And eventually they’ll forget about it.

There has to be some deadline to make them take action now. I’ve spoken to many workshop promoters who’ve said the largest number of attendees sign-up within 2 days of a price increase. You’ll also notice the majority of the blog specials here are 1 to 3 days in length (and the shorter ones have often done better in my tests).

You have two options for scarcity. You can limit the time frame of the special or you can limit the number of packages available at a certain price. Or you could combine the two as I did when I released the Internet Lifestyle Retirement System.

I limited elements of the special to the first 200 customers and then we also had a hard deadline of one week for the next part of the special. It worked extremely well for each part. After the first 200, the price when up. At the end of the special period, the price went up again.

Are you limiting your special offer by time or by number?

3. Reason Why

Why are you offering this incredible deal?

I learned from Jay Abraham a long time ago to always tell your customers why you’re offering a special. In the case of a new product, it’s because it’s a new product release you want to share with your loyal subscribers and customers. Or it may be because you want more testimonials. Or it could be because you’re celebrating a birthday.

Maybe You had 15 returns that you can’t sell as new so you’re going to release them at a deeply discounted price in a scratch and dent sale. In fact, I know of a couple of businesses which had such success from their scratch and dent sale they dented a few more items.

Or perhaps your friend gave you 100 books, coupons, bonuses, etc. that you are including with the package (obviously you only have 100 available if that’s all you received).

Other Elements

There are other elements we can add in as well such as risk reversal (full money back guarantee completely spelled out) or social proof (testimonials, endorsements from well known authorities, etc.).

I would recommend these in a majority of your promotions, but the BIG 3 are the basics you must always have in every promotion. You have to give people a big benefit for purchasing now. You might give them a $100 discount or a 25% discount. You might give them an additional bonus not available at any other time.

If you’re doing an affiliate promotion where you’re promoting someone else’s product, you may be giving an additional bonus you add in with the package. No matter what you’re offering, there needs to be some benefit customers receive for purchasing now that they won’t receive normally. They can’t get this if they wait till next week for example.

Next, there has to be a scarcity to what you’re offering. You may only be making this offer for the next 3 days OR it might only be for the first 50, 200, or 500 who take
advantage of it. Whatever special you’re offering needs to be limited or else it doesn’t provide people any incentive to take action right now.

Finally, there has to be a reason why you’re offering this incredible deal. It may be because you purchased too many of the product and need to get rid of this excess inventory. It could be because an affiliate negotiated with you until you ran the special. It may be because it’s tax time and you have inventory tax coming up. It could be a scratch-and-dent sale where you’re offering a special discount because the merchandise has blemishes on it. No matter what you use…there has to be a real reason why you’re making this incredible offer.

This post is an excerpt from the “The Beginner’s Step-By-Step System to Building and Profiting From Your Own Email List” Are You Sick And Tired of All the Internet Marketing Hype?
Finally Discover the Truth About Building a List, Growing Your Relationship With Your Subscribers, and Turning It Into Instant Money-On-Demand at http://www.myemailmastery.com