Learn Internet Marketing > Weekly Tips > SSWT 8/17/07
 

  
Ever since the $7 Report epidemic swept the world wide web, we've been seeing hundreds of inexpensive info-products. This current trend means you can get reports and ebooks, and even software or scripts, for $5-$15 (example: http://www.clicknewz.com/7dollaroffers.htm) .

I for one love this new wave - not only do you generally make 100% commission on referrals as an affiliate, but many of these products are coming with Master Resale Rights (aka MRR). Not to mention you get some great products at VERY low prices!

While I am enjoying this trend from all 3 angles (as a buyer, an affiliate and a reseller), there is some debate on the topic. Some people are concerned that the "cheap report trend" is devaluing info products across the board...

I disagree.

The "$7 craze" is nothing more than a new twist on loss-leaders and viral marketing. With MUCH better results.

The mistake people are making is in comparing a $7 or $10 report with a $47 or $97 ebook. There has been talk that the lower price points are devaluing info products across the board, affecting sales of higher priced products.

Instead, the comparision should be made against the traditional free report (i.e. a loss leader to funnel leads into your system). Viral Marketing strategies have been taught for years, and done online very successfully.

You give away a free report, a free trial or other free product in order to attract your target market to your website... and then follow-up with them via email. In both cases of course, the quality of your product directly affects the response rate of the list that you are building.

This new twist is simply a qualifier. When you give something away, you attract "freebie seekers". When you offer a great value on a quality product, you build a list of buyers that have proven they have a genuine interest in you and your products.

Weigh the value of that for a moment. All mailing lists are valuable, but how much more valuable is the list of people who have taken action and that readily make online purchases.

I recently did a market test between a free report and a low-cost report. The test was to determine the dollar value per subscriber as well as the responsiveness of each group of subscribers.

While I am still analyzing the results, the initial stats have been quite revealing. Both groups were given the same options, including a second freebie and a backend offer.

Those that paid a very low price for the information were worth 150% more, on a dollar value per subscriber basis. Even the response rate to another (very related & compelling) free offer... was incredibly low for those that downloaded the original product free.

You'll find that if you charge as little as $5 for your report or "loss leader", you will get much better results in regards to backend offers and overall responsiveness of your mailing list.

Again, this is in contrast to giving it away free - not using a higher price point.

The argument that some people make against the "$7 Craze" is that low-quality products are being thrown together and sold for $7 or $10, polluting the information landcape. Truth be known, this same phenomenon ocurred with $47+ products, and has for years.

The requirements for quality and value are at an all time high - no matter what the price point.

The goal with the low-cost product is to gain exposure and to funnel leads into your system. It should be considered a loss-leader, and not your primary source of income. The true revenue opportunities are in the upsell, backend sales, and in the list that you build.

Someone who buys a $7 report from you that is worth far more than the purchase price, would be much more likely to order a $47 product from you in the future. So do I think that "cheap reports" are devaluing info products as a whole? No, certainly not. I think they serve as an excellent qualifier, and an excellent method for reaching your buying market...

 
I'd love to hear *your* thoughts on the topic. You can leave your comments here --> http://www.clicknewz.com/967/7-dollar-craze-debate/

 
Check out some examples of $7 products that you can earn 100% commission on at http://www.clicknewz.com/7dollaroffers.htm. You can also list your own $7 products at that same site - free of charge (free advertising!).

 
Best,

p.s. Join us on the SSWT Discussion Forum if you have any questions or need help with your website or online business idea. See you there!