Have you ever asked yourself what the price of your digital course, home study course or coaching program should be?
In this episode, I will tell you my exact strategy that I use to price my products the right way every time I do a product launch.
And as a bonus tip, I’ll show you some hacks that you can use to increase sales during your launch.
Welcome to the show. Today's a rainy day in Panama. I moved here a couple of months ago because it's very nice here. The weather's always nice and sometimes it rains for 30 minutes or an hour or so. But I really need to get across this message to you because I get asked a lot, "What should I price my product when I launch it?"
And so in this episode I want to break down everything I know about pricing a product, for digital products like video courses and coaching programs. And today I really want to give you not only the pricing strategy I use to build my online businesses and create new products, but I also want to give you a tactical strategy that you can use, or that I use, to multiply my sales revenue by five to ten times, because we get people to take action. And so this is what the whole episode's about.
And let's start with the pricing strategy in general. Because, when you create a product and you have a small email list... Everybody starts out small, right? So we need to go with the higher price point than let's say, somebody with an email list of 10,000 people or 100,000 people or even a million people. Some people even have more. It depends on the market they're in and how long they do business there.
So we need to start with... Let's say we have zero people on our list and we want to build it up to a hundred or to 200 and then start launching our first product. That means that we have at least the price point of $297, or euros. Depends on where you're selling. I always use euro, because I mainly sell in Europe, because my home country is Germany and now I'm expanding to an international audience and provide value to you as well.
So, if I want to start from scratch, my price points are way higher than, let's say, if my audience is bigger. So I would start with a product for at least $297, at least, if it's a presale or if the product isn't created yet. And if the product is created and I want to launch it, I wouldn't sell it for less than $997, and the market has become accustomed to selling products for 1000 bucks. That's standard right now. So don't go below $997.
In Europe I do like 497 euros, that's like $600 or so. But that's because people aren't used to buying high ticket stuff. But they have the buying power, of course, because let's face it, Germany is one of the richest countries in the world, right? And they don't mind spending money if it's worth it, but they're not used to doing it on a webpage or... So, if you want to close them on the phone, you can do that, and they pay anywhere from 1000 to 50,000 over the phone. That's okay for them, but not on a webpage. So, if you're selling in Europe, try a price point about 497. And if you're selling internationally, go on 997.
And some people told me... A good friend of mine, Oliver Jolo, he's in Jeff Walker's Mastermind premium group, the Platinum Master Mentors. So, I don't know the name exactly, but he told me that when he launches products, he always does 2000 euros to start with. And that's a heavy price point and I've never done a product launch for 2000. I'm kind of afraid right now from this but if he's saying that it's working for him, I trust him because he's doing a great job in it and I saw what he's doing and his launches are amazing.
So what worked for me is 297, 497 and 997. I once did like a summit and a ticket... I had two price points. One was 497 and one, 997 and 1997, was $2,000, was taken just once and 500 was all the way through. So for me, 2000 doesn't work as well, but it could be that my marketing at the time wasn't as good as it is today.
So if you're going to start, just pick 497, 297 or 997. It depends on where you start. But where you are selling... But my recommendation is always 997 because you can always take, with this price point, do webinars, and launch your product with that. And you can even run paid ads and it's worth it because the margins are so high. I mean, creating a digital product or coaching program is basically for free. So when you're advertising and it costs you even $600 to make a sale and you have 400 in profits and you have to be really dumb. Really, really, really dumb, if you can't make a sale for a 997 product with $1,000 ad spend. So if you break even all is good, when advertising.
But if you want to launch in a big fashion way, do what I told you in the last couple of podcast episodes and do the waiting list strategy. That will help you to get started for free and then you don't have to spend your hard earned money on advertising. But can start with a small list and when you make your first sales you can reinvest it in some ads or so and build your brand from there. So that's my advice on this topic.
And now the 10x growth hack for your product launches. Obviously the four types of what to plan in your business are your sales revenue and there are three or four? I think four.
The first one is telling people that your product or offer goes away. Be honest about that because if you lie to people, they don't trust you anymore, right? So when they buy, because you use these tactics I'm going to explain to you and you lied... You say the product goes away and it doesn't go away, then that's the only purchase this customer will ever make from you. So, and that's very bad because you want to have a customer buying stuff from you over and over and over again. So this whole... That's the purpose of a business, right?
You want to be a... You have to want to get the lifetime customer. Not one that buys one and then never again, because he was disappointed, because you lied to him. So the first thing is telling people that your offer goes away. The second thing is the price goes up if they don't buy. So you can combine it very good, but you always need to have something.
You need to tell people why the price goes up or why the offer goes down. So what I always use... I say, yeah, I need to focus on the group. That's why I'm closing down this program. And because it's an early bird launch or so, it's 50% off and after the introductory price, the price goes up. So I have both and I didn't lie. Notice it? I didn't lie.
So, the next thing is you have limited spaces, so you're giving away a limited amount of copies. So let's say you limit your coaching program or your group to around 100 people and then after these 100 people, you need to close down the group. And if you don't want to lie to the people about pulling down your course and unpublishing everything so you can't sign up anymore, just say you're reopening in six months and they have to wait six months to go in the next group. And while everybody else is getting results, you have to wait. So that's very powerful and a good strategy.
And the last thing is, I don't really remember. What's the last thing we have? The price goes up, we have the offer goes away. Oh yeah. They're missing out on bonuses. It's the last one.
So when you create your offer, you announce your core product. And every core product has, let's say like parts that are for free in it. So if you don't have any bonuses yet, you can create one extra or a couple of ones, extra. That's okay. But the easiest way is to do it like the people from Poland. When Steve Carson sells it in parts, it's the same thing you can do, but except yours is legal and theirs isn't. You can just take your course or your coaching program and say this master class is this value and this is contained and here are all the parts and then the parts become your bonuses.
So my course on drop shipping teaches you how to build the drop shipping stuff from scratch. Even if you're a beginner blah, blah, blah, blah, blah. And as a bonus, you get my Facebook ads tactics and then as the next bonus you get my product research tactics. And then after that you get my YouTube strategy and then you get my email strategy worth, blah, blah, blah, blah, blah, blah, blah.
So what I’ve done here is basically, that’s everything that is in the course. Obviously that’s all the modules in the course but I framed it as a bonus. So, you say in your messaging, if they don’t act now, two of the bonuses go away. Let’s say it. Okay. So if you don’t act now, the next time the Facebook ads bonus goes away or something, and then you have those triggers or those hacks that can multiply your sales revenue and they work because they can be combined every time and that’s really strong.
So combine everything, make good pricing, add good bonuses, create value, and then your course will sell like crazy.
So if you liked this episode, please rate and review this podcast. Let me know what I can do in the next one. So go on iTunes. Type a little review. Leave a five star rating. And if you want to go more in depth about this topic, I encourage you to go to my website. It’s in the show notes. I linked it to you in the show notes. It’s marketersociety.com and there you can join the waiting list for a free workshop where I show you exactly how to create, launch and sell your own digital course or your own coaching program.
So, that’s it. See you in the next one.