Price points: Why you're still failing to create a multi-million dollar income!

I've been doing some reading around and noticed that people still struggle to create any of what I call REAL money online and not just pocket money for MacDonald’s and the cinema.

Lower price points DOES NOT mean that you’ll sell more FACT. Take the iphone for example when it came out it was priced sky high, Apple really wanted to see what they could push and get away with testing the water with their price points. I think when the 3G came out it was priced someone north of $700 maybe more I don’t really know. What I can remember though is the incredible demand for the product even though it was one of the most expensive mobile phones on the market.

Why the demand you may ask? Well there's a few reasons really, the main one is the fact it's made by Apple so they have what's known as 'brand equity', this is incredibility valuable and it is what makes your products or services desirable and wanted by everyone, people associate things like product quality with a brand and personal experience the company creates a kind of legacy to it’s name basically.

Ok, so what does that have to do with making millions online? Well on a smaller scale this is exactly what you want to be incorporating into your online business when ever you set up a new blog website or whatever you want to stand out form all the notice on the internet, people try and be like each other, for Christ sakes please don’t! Please try and be unique and brand yourself in your own little niche.

So why do some people simply crush it with not just one but dozens of multi million dollar online business’s, NO it’s not that they have some back door dealings going on with Google or anyone else they may only have less than a 5,000 UV’s a month and still managing to gross over six figures a year.

People really don’t help themselves with what it is they are doing! If your monitizing your website with a program that pays you cents at a time then right there dead in the water is your problem, you need to become more of a obnoxious person and say right if it doesn’t pay $XX – XXX –X,XXX per qualified whatever Click, Lead or Sale then it’s not even worth my time, my time is valuable I am master of the universe I dominate the cyber space, start changing the way you think and THINK like a successful person does. Give yourself some credit, YOU ARE WORTH MORE THAN 30 CENTS!!!

So what’s the big secret, why do you struggle to ever make any money online while others are simply CRUSHING IT online!?

It’s pricing points!!

Let’s do some math….

The higher the price point the less you need to sell to make $1,000,000, profit margins are larger and it just makes more sense as there's less people who need customer support and you don't need a bazillion visitors to your website!

$7 X 142,858

$70 X 14,286

$700 X 1,429

$7,000 X 143

It’s not as hard as you may think… companies make it so EASY for you look! Just take a look at web hosting company Hostgator for example pays $100 - $120 per sale for a $5-10 a month service and even then customers can get the first month pretty much free, the only reason they charge 1 cents is to make sure that they can charge the card when the fees do come.

This industry basically PRINTS MONEY… I mean if you sell 10 cents worth of web hosting with Hostgator within 24 hours you’ve made $1,000 (ONE THOUSAND DOLLARS) ummm HELLOOO?!?!

Adsense is the biggest killer of earnings online because you’re always getting short changed for someone to make a profit out of the content network, why don’t you research what type of ads appear on your website and go hunting for affiliate programs to replace your adsense, SPLIT TEST people!!!! I don’t see enough people doing it!!

Now your going to ask well people won’t spend high amounts of money online…. and you’re wrong!! Just take a look at Jeff Walker with PLF 2 he must of sold 1,000 – 2,000 copies of his $3,000 course in 48 hours, I’ll let you work out the maths on that one!

People have got to be able to see the value in what you’re offering them and you have got to make people feel like their getting real value for money out of what it is they are buying like for example Jeff Walker was offering $15,000+ of content and material for only $3,000. Just give people INCREDIBLE VALUE FOR MONEY so much value that their competitor’s mouth drops when they see what it is exactly they are offering.

I write this post in the hopes it’ll help atleast someone.

 

Great read, that does make sense. I can say that my mind set was exactly of what you were trying to get at. We all think that if the product is cheaper, or the lead is semi-par and I send enough traffic I will sure to make enough money. The thing is, what if nobody buys that product? <-- thats everyones mindset.

Thanks for the info, good work man.

 

Well you start off low say $47 is a good price point then once you have the ability to increase the value and quality of your products then you may go up to $447. Trust me getting customers isn't hard people make it hard because they don't understand the customer, there's billions of people out there that all want something you've just got to be there to understand what that something is and sell it to them.

I heard of a guy that wished to remain nameless that managed to add 1.2 million people into a $10 a month continuity program, so gaing customers isn't as impossible as you think it is internet marketing isn't hard or rocket science, the only person that makes it hard is the person sitting staring into the computer screen.

 

Actually i think when you compare apple to other brands that develop phones, apple is behind from technology stand point, however, Apple has only one phone, the iPhone, they branded a single phone with a uniqe brandable name, iPhone. other brands don't do that, they just develop many many phones and spread their budget on many campaigns for diffrent phones, their phone names are nothing like a quick "iphone" name to remember. so i think apple did well, by focusing on one product, and pushing it all the way, and afterwards its just a word of mout marketing with newspapera , etc.

 

Yeah exactily so it just shows you the power of a strong brand, there also very clever at leveraging social media and the web I mean just take the leaked article of the iphone 4, millions upon millions of people saw that and it was all free advertising for Apple driven by the new social media trend of sharing content with offers via Twitter, Facebook and other platforms. Apple understand how viral leaking the phone would be so they set the whole thing up, and next thing they know they have 500,000+ pre-orders for their new product. But that wouldn't have been possible if it wasn't for the strong brand that Apple have created.

Brands are built on the back of trust and the i______ (whatever device) 'i' is a trust symbol created by Apple you instantly know if it has an 'i' before its name it can be trusted company (did come a trusted company) so that's why it's powerful I mean if you've had a good experience with the iphone it's highly likely that you may also want the ipad aswell.

 

Thank you for that post - it set a few things spinning in my mind!

I have noticed with Google Adsense before - if you leave it be you quickly end up with some ropey ads pulling in little. People be brave and go direct to companies for affiliate schemes. I have even put the idea in some (very small) companies heads in the past.

Like Jack Canfield says - if you don't ask, you don't get and the worst thing that can happen is that you are in the exact same position that you started from before you asked...

 

Become (easily) a millionaire from the internet is such a fairy tail.

If you are smart and really dedicated and you have a good product to sell then you can earn some real money but millions nah not that easy defiantly not within a year or so..

 

You make it as hard or as easy as you want, money in the first place helps. But like investing in any business why not spend $100K of a bank loan setting up an internet business. I think most people online scrub around the floor hopping to find a a few cents, little adsense site nobody cares about. The guys that get it are the guys that have 5 peope in a small office packaging up sunglasses all day with there new internet retail site continues to turn over $1,000+ a day. There's a big devision online from the mega rich and the super poor. I was reading how Intela the company behind the silly $1 incentive offers stands to turn over $20m this year, look at all the privately owned companies that attend Ad Tech and AS there's thousnads of companies that attend those events and most of those companies make millions a year.

Making money isn't hard people love to buy crap, that's what earning money is all about spending it at some point. You've just got to stick something attractive infront of lots of eyeballs and hope that they can feel the value in it keyword there is (value), they've got to be getting lots of it.

But ingnorance will always keep you on one side of the fence, mainly the losing side...

 

I can't agree more. I am a marketing/web guy in the "5 people in a small office" group. We aren't the leaders of our e-commerce industries for our sites, but we do well. Nickel and diming your internet business is a sure-fire way to hit burnout fast. Very few people will make enough to pay their own bills, let alone a staff payroll if you ever want to expand. E-commerce is an industry that is growing exponentially - go get some!

 

I mean a business that employs 5 people and sells real products will have a high turnover because even if they take $1m a year after all expences and taxes you may only be left with $150,000 NET profit. You as the owner and CEO of the company may be on a payroll too so say $50k a year sallary for yourself and $100k goes back into the business.