Setting pricing for your Internet Marketing product could be difficult. Information products are non-tangible so it can be difficult to determine what the best pricing strategy is.
Of course you’ll take into consideration how much it cost you to create the product so you can recoup your costs and earn some profit but there are other considerations as well.
Here are some tips that can help you:
Investigate Competitors
Look for products that are similar to yours and see what their price is. You’ll probably find pricing that’s very high and that’s lower as well. You might price your product somewhere in between. Pricing too high or too low can both be ill advised.
Run A Promotion
When you launch your product, create a low price for a limited time and then raise it later. This will help you build buzz and get some buyers sooner. Creating urgency by offering a discount is a great Internet Marketing sales method!
Product Timing
Is the product going to be timeless or will the information only help out for a short period of time. This can help you see whether or not you’ll have clients buying in a flurry and then stopping or whether your product will be an earner for you for a long period of time.
Product Support
Are you going to support the product? Free support sounds like a great idea but if you’re including lifetime support you will need resources to help you in case the product gets really successful. If this is the case, be sure you’re putting a surcharge in to help you cover your costs.
Future Upgrades
Will you upgrade the product in the future? A monthly membership fee might be a great way to support that type of effort.
Know Your Demographic
How much money does your demographic want to spend? If you’re marketing to business people versus teenage web surfers then you can conceivably charge more.
A big aspect to successful Internet Marketing is to learn about your market and that way you can maximise your earning potential. Don’t rush into anything when setting your price. Instead, take some time to survey the landscape and know your target customer and that can help you sell plenty of product.
About Sean Rasmussen
Hi Sean,
I’m nowhere near needing to worry about this yet. When I do though, I will probably check what my competitor’s are selling their stuff for. I think if I get the pricing right, it will go a long way to producing sales.
Also, I need to make sure I know what my demographic wants and what they’re willing to pay for it. Just because I think something is worth a certain amount doesn’t mean they will agree.
You have to be so careful when pricing your product as you don’t want to make it too cheap which may cause your competitor to lower their costs and there’s a race to the bottom. As you have said, you really have to look at your potential customer and what they can afford to pay for it.
Pricing too cheap may also say that the content is cheap! Some advise that we should put a high price on it and then lower it. But Sean’s launch ideas also is good – low at first and then raise it.
It also depends on the product – some are just expected to be inexpensive.
I find it interesting how many online products are priced at $97 or $47 – and I have no idea what these prices are based on.
I guess to start of you have to know what similar products go for, and then place yourself in the same area.
Hi Sean
This information is very timely for me as I have an eBook that I am just fixing up after it has been through an editing check.
I have been looking at prices etc. If I was famous I could sell my book for at least 5 times more than I am going to but I like the idea of having a promotion and I will start working on that now using the ideas you have presented here. Thank you.
How to price my e-books – not sure if this helps or not, but it some good ideas! I mean how do I create a sense of urgency about a book on growing roses made easy! LOL
Now that’s going to take a fair bit of thought Peter
. Is there a certain time of year that you simply must plant your roses?
It does pay to mull over the other comments here too! I just got a really good idea on both pricing and promotion in one!