PROFITABILITY, Part 2
Does it set up future sales? Yes / No
It's valuable to invest your time in products that, when used, create the need for either more information or more products.
If you have read this far you will recognize these as Feeder Products. Making them part of your marketing mix is one of the most valuable things you can do for your business.
Will this support a healthy mix of higher and lower priced products? Yes / No
Marketing a combination of both higher and lower priced products offers a few big advantages.
First, you expand your customer base. I can guarantee there will be people in your niche who simply can't afford high price tags. They're still viable, valuable prospects, and by offering a variety of product price points, you don't leave those prospects out in the cold.
In my 15 years I’ve had hundreds of people say to me they have been on my list for 2, 4 and even 6 years before buying anything. In many cases, they have now spent thousands with me.
Was nurturing them with great free content (on my blog and in email) worthwhile?
I believe it was! Not only because of the money but because they now have a real plan and hope of achieving it.
Offering multiple products also means you can create repeat customers much more easily.
Someone who purchased an expensive product from you won't think twice about buying something cheaper to support the investment they've already made.
On the flip side, if a new customer purchases a cheaper product from you but has a positive experience, you've just built a level of trust with them that will encourage bigger sales down the road. Win-win!
Do they offer a split payment option? Yes / No
Split payments lower the barrier of entry for your prospects.
Many people can't afford $2000 today, but will be much quicker to say yes to $200 monthly payments, for example. Split payments make a higher priced product more approachable and greatly expand your customer base.
You get the same commission, just paid out over time.
Could this be an impulse buy? Yes / No
A product having a low price means that you can use more emotional language in your sales copy and sales will happen more quickly.
Remember, people are 10 to 20 times more likely to buy the second time.
So by all means promote low-cost impulse buy products, but only if you are doing so for the purpose of setting up the next sale.
While I am all for $7 products and 100% commissions, very few can build a sustainable business that way. The sheer number of products alone (much less the amount of buyers) mean your returns will usually be quite small.