I’m sure you know about John Reese’s Traffic Secrets and how he sold over 1000 copies for $997 in one day. That $997 price tag was a huge part of his strategy.
Because it cost $997, affiliates were begging for a chance to promote it. A $500 dollar commission is a powerful incentive to promote someone’s product, despite the content.
But that’s not the only advantage the price gave him. The price also set the perceived value of his product.
Naturally, people perceive a $997 product as being more valuable than a $97 product.
Having the highest price among your competitors is actually a good thing when the customer is looking for the best available product.
High Price Advantages:
- Higher Perceived Value
- More Attractive to Affiliates
- You can pay more in advertising for each customer
Obviously, a high price demands a quality product. But the price it’s self often makes the product appear more valuable.
If you pay $7 for a Marketing Course, you are less likely to use the information given and thus get less value from it.
If you pay $997 for a Marketing Course, you will most likely try to get everything you can from the product and apply more of it to get your moneys worth.
In many cases, its the price that sets the value of the product. Not the other way around.
This is a crucial part of marketing strategy. Price is often the deciding factor in whether a product succeeds or fails.
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