Does it Cost You To Sell Cheap Products?
Do you produce cheap products? A 20-page ebook? A 5-minute video? The sort of stuff that can be seen on sale all day long at $1-$10.
We all know that cheap products are aimed at the newbie market. Those who want to know better but can’t afford it (yet). But do they have a hidden cost? One that cannot be seen up-front. One that is costing YOU, the product creator or vendor!
The trouble with newbies is that they are, well, new to the game. As such, they need lots of guidance, lots of hand holding and see more value in volume than precise direction. That need for guidance means that you have to spend your time on support calls and emails. That need for volume means that you have to push the boat out for more and better ‘bonus extras’. And almost inevitably, it means more refunds as 2-day wonders (try the product for 2 days and wonder why it doesn’t work for them) want their small amounts refunded to them. Those who get as far as reading and acting upon the info in the first place.
What can you do about it?
Pack more info in, making it as ‘stupid-proof’ as possible. That’s a cost to you in more of your time? Outsourcing the support? Still a cost to you of course, and if you’ve paid out 100% to affiliates for a front-end product, where’s that money coming from to pay for your VAs?
There are a few ways of avoiding, or at list mitigating the problem.
One method is to only be an affiliate. Get out of the product creation game altogether at least for long enough to build a decent income from other sources first. Then support is somebody else’s problem and you can be the one collecting 100% of another person’s efforts.
Another method would be to make your products so simple that no one could get it wrong. Except that somebody always will. And it’s always someone who has the loudest mouth and is willing to blacken your name from one end of the internet to the other.
My final offering as a solution is to up your game a little and change your target market.
Yes, there is always a fresh supply of newbies, but that also means there is a fresh supply of human stupidity to trip you up.
A lot of people, spending a small amount of money can make you a small and probably decent income.
But could you aim a little higher, at people who have as much or maybe even a little more knowledge than you, but who appreciate how much work actually goes into a well-researched project? People who know that knowledge does cost time and money but are still willing to let someone else do that research for them. People who are willing to pay that little bit more.
A good $47 to $97 product where the information or research is well laid out should do very well as the opening product. The price is high enough to make a newbie think twice before adding to his credit card without making an experienced marketer think twice as it would be easily covered by his own earnings.
By targeting the more experienced person, straight away you will have far less effort in support. Experienced people know the basics and probably know where to find any more info that they need.
At these price points, affiliates are ‘only’ expecting 50% of the purchase price, but that’s still more for both of you than you’d get off a $7 offering. Sure, there’d be fewer sales by quantity, but it would be worth far more to you in the longer run (and you’re getting a percentage of the front-end price and not relying on back-end sales to make your income).
Higher prices tend to mean a more evergreen product. Something that will sell for much longer. It will seldom be the product-of-the-day, but your product will be there for a long time after the POTDs have been forgotten.
So what is stopping you from creating these higher priced items? Is it confidence in your knowledge? You probably know more than you think you do. A quick look around at many forums and groups will give you a level of comparison. The same places will provide you with ideas for your product’s main theme, if you’re lacking in that department.
I might even suggest that if you are lacking in confidence then should you be creating any products, let alone the mid-level ones I’m suggesting here. However, creating is as much about YOU learning as your customers, so why not just go for it anyway? And if the worst comes to the worst and you don’t feel that your new creation is up to being a stand-alone product, at least you’ll have an upsell for your next $7 release.
What’s your opinion? I want to know so tell me below.