Setting Price and Commission for Your Product
Locked in a room in Cleveland.
That’s where I am.
Not with Betty White though.
Instead, I’m at a Dan Kennedy seminar with almost zero time to access the Internet and answer emails.
Fortunately, I knew this was going to be the case, and so I prepared this QnA in advance.
Once I bust my way out of here and sneak back into Canada on Saturday, it will be time to enjoy a well-earned holiday weekend…
…so no email until Tuesday. If you’re waiting to hear from me, please have patience. I’ll get back to you next week.
And if it’s an emergency, you can call my dog. His number is:
Woof-Woof-Woof-Bark-Bark-Bark-Yelp-Yelp-5-Yelp.
OK, your questions about tricky little website issues like pricing your product, managing your time, and setting affiliate commissions…
Q: Do you have a good strategy, or way to price an eBook? I’m currently stuck on how much to sell my eBookch to sell my eBooks for. If you can shed some insight on this I’d appreciate it. – Erik
Answer:
It’s a combination of factors, including, but not limited to:
a) What value does it offer customers?
b) What’s the purpose of making the sale?
c) The amount of money you want an affiliate to be able to earn
with each sale
For b), if the purpose of the sale is simply to get a customer (i.e. to launch your business), then price on the low end.
You should then have upsells in place to increase the average
transaction value.
There are a lot of factors that go into deciding on a final price, but most importantly, just price it and get it to market.
You can always increase the price later.
Plus, you could immediately start testing the price, offering two different prices via A/B split-testing using the free Google Web Optimizer tool.
If anyone happens to see both offers (and few people will), just be honest and tell them you are testing the price.
And make sure you read my $100K in 12 months report here for more info on getting started:
=> www.InternetIndependence.com
Q: Are there any tools that you use to manage tasks, task management, that you’d recommend?
Answer:
Keep it real simple.
I just have this Word document that I’ve been using forever.
And I just put “Here’s the main to do’s”.
I have a spreadsheet that I use for contacting people. I have people’s names down one column, the last time I contacted them down another column and the next one is like a running column of things to contact people about.
Then I color code it. If it’s blue it’s not important, if it’s green it’s going to help them and if it’s red I need to contact them soon.
I also have a list of major projects that my team is working on and the due dates for each.
That’s it.
Don’t let planning become your procrastination. I see that way too much where people put more effort into their white boards than into working on their business.
I’ve had a lot of questions about productivity lately, so make sure you read my Politically Incorrect Time Management strategies in this classic article here.
Q: Should I give more than 50% commission with my digital information product? I see you give 75% commission with Turbulence Training.
Answer:
Yes, as we did in the 24-7 Fat Loss launch (where some affiliates even made 85% – as I’ll explain in the Launch Autopsy available as a bonus to all FIM subscribers).
Recently a friend answered this question on a private Google discussion forum. It was a great answer and I want to pass it on to you.
“Go to 75% commission and you’ll never look back. You’ll start crushing everybody else in that niche if they aren’t paying well. And 50-60% commissions in this day are basically unfair in my mind.
“If you think about it, if an affiliate only gets 50% commissions, that means you both get equal money, but the vendor gets to keep all those new customers for future revenue.
“Think about it another way, a monster affiliate does $100k in gross sales, and you pay 50% commissions, then you each make $50k. But then you go and take all of those customers and make another $100k over the next year or two.
“Sd the affiliate only made $50k. BAD deal for the affiliate compared to what you got. That’s why 75% to affiliates makes for a better deal.
“The other side to this is if you want affiliates buying traffic to even stand a chance, you NEED to pay 75-90% commissions, or they don’t even stand a chance at profiting.”
*****
Hope these answers solve your tricky little website issues,
Craig Ballantyne
Build others up, it will only make you more successful. If you don’t have social support, take charge as the leader to start creating and attracting the support you need.