Learn Internet Marketing > Weekly Tips > SSWT 5/05/05
 

Product Development: How Much to Charge... And When to Give it Away

   
In our last two issues we talked about Keywords, Optimization and Attracting Human Visitors to your Website... and Converting them into Buyers/Subscribers. You can view those two issues online at:

Understanding Keywords: Choosing Them & Using Them

Optimizing for Search Engines AND Visitors

 
This week it's all about PRICING. What you charge, or don't charge, has a lot to do with how well your products or services will sell. I'll share with you my own thoughts on the topic, and tips for successfully capitalizing on your niche... but the real expert on this topic is Ken Evoy, author of Make Your Price Sell! (MYPS!). It's extremely valuable information, and won't cost you a dime!

If you do nothing else, go ahead and download this book (for freee) today:
www.selfstartersweeklytips.com/perfectpricing.htm

  
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In affiliate marketing, pay-per-lead programs generally convert at 10% to 30%. Pay-per-sale programs convert much lower, between half a percent and 3% - with high ticket items generally having the lower conversion rates.

This is one of the reasons that seasoned internet marketers tell you "the money is in the list". The money isn't so much "in the list" as it is in having a solid strategy for generating qualified leads that are interested in your products and services, and having the opportunity to market your products and services directly TO that list.

When you give away information or products, you are attracting your targeted market to you. With the information or the product that you give them, you have the chance to do personal or company branding and also to establish yourself as a trusted expert in your industry.

With a "lead generation system" you can follow-up with the people who showed an interest in your topic or your product, which is something you cant do with all of the visitors that come to your site and don't choose to make a purchase.

 
- Consider your website a Lead Generator -

 
Your website is an opportunity for you to establish a relationship with p0tential customers or clients. Even if you sell tangible products, you can turn your pages into lead generators instead of merely "online stores" with a single focus of making the immediate sale.

The best advice I can offer is that you step back and ask yourself, "How can I best serve my market?" What do they need, want or need to know the most?

For example, if you sell dart supplies online you could attract dart players to your website with:

 
Providing this type of information, alongside the products that you sell, will allow you to:

 
This is the reason that those internet marketers will tell you that "content is king". Simply put, it attracts visitors - and allows you to appeal to your targeted market in a wide variety of ways (from the variety of keywords you can use, to the various marketing methods you can employ).

Most webmasters have dollar signs in their eyes though, and cannot imagine offering all of this great information or these services for FREE! Instead they want to charge people to download their tips & information. Or they want to charge a membership fee for visitors to participate in their forum. Or they may even slap a "donation request" button on their website and encourage visitors to donate money to them to support the site.

This type of webmaster asks "How can I make the most money with my site?" instead of "How can I best serve my market?"

Don't get me wrong - there is an appropriate value on everything that you do, and on everything that you offer. And yes - you must have financial goals for your eBusiness and pursue those aggressively.

However, you should put a lot of thought into your business model and your inc0me sources.

For example, on a "dart site" like the one I outlined above, you could charge a nominal listing fee for your nationwide directory for local tournaments & leagues. This would allow you to set up a source of income (advertising) and still keep your content free and attracting targeted traffic that would be interested in your dart supplies.

An open Discussion Forum, also, is likely to attract a large number of dart players and fans of the sport. You will get a much larger number of members if you make this forum free to the public, than you will if you charge a membership fee. These members will return to your site over and over again, refer your site to their friends, and will also visit YOUR pages when they are ready to order dart supplies. In addition, you will be building a large database of p0tential customers through your forum, which you can email on a monthly basis with: website updates, links to current discussions, upcoming events/tournaments... and your current specials on dart supplies.

 
You could also weave product promotions into your content areas, encouraging your visitors to see current specials or items that are specifically related to the page they are reading.

For the best information on how to capitalize on a content site, I want to refer you to an article written by Andy Williams:

http://ez-search-engine-optimization.com/blog/?p=34

When you click on that link, scroll down just a bit and look for the section titled "Slow Affiliate sales from content sites?". Andy goes into detail about how you can structure an affiliate or content site for maximum income potential.

 
The main point that I am trying to share with you is that FREE can equate to Highly Valuable when it comes to the long-term success of your website. Put some serious thought into what you will SELL, and what you will Give Away.

Will you earn more money selling your Special Report? Or will you earn more money giving your Special Report away freely and building a very large mailing list of people who are specifically interested in your topic... that you can market your higher-ticket products/services to on a long term basis?

Don't underestimate the value of building a relationship with prospects, and being able to tap into a highly targeted audience that has proven their interest - - anytime you please.

 
Your goal should be to serve your market. From there, strategically organize your information and your offers so that you are able to funnel your visitors directly into your mailing list, or to the areas of your website that generate revenue.

You do this by using a "call to action" on your web pages. Don't expect your visitors to know what to do "next" - TELL them. Lead them. Make it so insanely obvious that it's the only logical action a visitor would take when they reach that point on your web page.

 
- Another Common Pricing Mistake -

 
Many webmasters (or even eBay'ers) will grossly over-charge for shipping & handling. By doing so they increase their revenue, right? Not usually.

Instead, they discourage people from ordering from them!

As a customer, if you see a shipping charge of $20 on an item you know could be shipped for around $8... it will put a sense of distrust in your mind regarding the seller. It will also raise the total cost of your order to the point that it's no longer "a good deal" - so you are likely to shop elsewhere (where the seller is fair, and the price is reasonable).

--> On very competitive items where a person can get the same product from a number of sources, they are likely to shop for the best shipping prices across several websites before making their purchase.

 
All of this is "common sense" when it comes to eBusiness strategy... but all too often you will hear comments like "the money is in the list" and "content is king" and all of a sudden you have thousands of people running out to buy email addresses, start up safelists, generate millions of pages of junk content, etc etc etc.

Those people are completely missing the point (and junking up the web). A business (online or off) should be developed strategically, with careful consideration and a solid business plan.

Content should be written for the reader. Links should be placed to offer value to the visitor. Communication should be as courteous (and personable!) as if you were speaking in person. Pricing should be competitive and reasonable.

Do what makes sense. Instead of what makes cents. Your business will grow successfully and your profit potential will skyrocket!

 
Go ahead and download Make Your Price Sell!
(MYPS!) for free...