ProBizTips Newsletter
** ISSUE #260 **

September 12th, 2003

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4 Reasons Pricing Products Low COULD Be A Good Move for You
by Harmony Major

UN·DER·PRICE:

1. To price lower than the real, normal, or APPROPRIATE value.
(Source: The American Heritage® Dictionary of the English Language, 4th Ed.)

Ugh. Doesn't sound very appealing, does it? I mean, who REALLY wants to be thought of as being worth "less than is appropriate?"

When you price your products lower than "normal," you're automatically introducing *yet another hurdle* for the consumer to overcome.

The "why-the-*!#^#%$^-is-this-so-cheap-there-must-be-something-WRONG-with-it!?!" defense.

Sound familiar? ;-)

But, as we all know, there are two sides to every story.

Like all else, the issue of pricing just can't be explained away in only one argument. So even though I'm totally partial to pricing for what you're worth, there ARE some* benefits in pricing your products low.

Here are my top four:

1. To build up a large customer base by overdelivering like crazy, then backending them with higher priced wares.

Think Ken Evoy of MYSS (Make Your Site Sell: $17) fame on this one.

The plan was to offer so much value in that first cheap product, existing customers would be falling over themselves to buy the next product in line -- at *any* price -- whether they were cheapskates at heart, or not.

The plan sounds good, but in my opinion, there are too many"flaws" and variables.

First, you still end up with a customer base *largely* made up of cheapskates.

Second, this option just may not be feasible -- or effective-- for you if you don't have the money or manpower to launch a massive promotional blitz.

Ken had THOUSANDS of affiliates and lots of established JV partners to help him out. A lot of whom played a major part in his financial and "branding" successes.

Third, and perhaps most importantly, you can still achieve this goal WITHOUT short changing yourself in the process. How? By creating a medium-priced product (say, $47 to 97 or so) to offer on the front end, then backending a $197-$297+ product, for instance.

The same result, but you're playin' it much safer.
(And likely increasing your cash flow on the front end.)

2. May be easier to convert first-time visitors.

As you well know, it's lots easier for most folks to buy a low or moderately priced product than a high-end one on the first visit to a website (unless you're selling computers and the like, I'd assume. But even then, I'd expect first-time visitor conversion rates to be similar).

So if you can offer your product at a price that doesn't get your impulse buyers to question their judgment ... that's a good thing.

Even so, you could always combat this -- at least to some degree-- by splitting the cost of a higher end product into payments.

3. To build your brand (and reputation) quickly and increase exposure *lightning fast*, making it all the more likely you'll be considered an expert in your field.

Let's use Ken Evoy as the guinea pig here, too. (Sorry, Ken! :-)

As you know, the more publicity and exposure you get, if you present yourself right and get *most* of your facts straight ... the more people come to think of you as an expert (whether you know your stuff or not).

Yes, Ken got lots of exposure in the beginning, and still gets steady exposure now, I'd say. But as far as branding himself as one of the TOP players online ... DID IT WORK?

When you think of Internet marketing's major players, does his name spring immediately to mind?

It doesn't for me.

Not even in the top 10.

Although, that could just be because I'm not usually in the market for products in his niche. Either that, or it could just be because that's the way it is. After all, I never got my own copy of MYSS. (Oh wait ... I think I did. From a relentless affiliate. ;-) It's that I never got THROUGH it.)

Anyway, you might feel differently about his status in the marketplace -- but HOWEVER you feel, take those feelings into account when deciding if this point is a plausible reason for pricing YOUR product(s) low.

4. To get steady income -- or ANY income -- coming in FAST.

Normally, it's loads easier to create a small product. Just throw together a related panel of experts for an hour long teleseminar, draft an outline for a special report, or create a quick, fill-in-the blanks software app if you're a programmer-- then you're good to go.

If you're experiencing an emergency and you need money FAST, this option could be the way to go. Heck, it might be the only way you CAN go.

Sure -- the product might not be your BEST work (or even related to your niche), but if it means the difference between keeping your lights on, or heating up cans of soup on the car engine ... I'm sure you'd choose the obvious.

NOTE: IF you have a choice, I don't recommend doing this for a first product. If prospects and customers remember your *ENTRY into the marketplace* being a cheap product, you could be creating lots of re-branding issues down the line as you try to up your prices.

---------------------------------

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How to Speak the Customer's Language

Have you ever been to a foreign country where everyone seems to be speaking any language but yours? Well, that's how many people feel when they surf the Internet. Business and technical websites are often so full of jargon that they may as well be speaking a foreign language to their customers.

In order to avoid filling your website with meaningless blather and, let's face it, complete BS, follow these essential guidelines:

1. Run the "BS Detector" to check for obscure marketing, business and technical speak. It will help you simplify your copy so customers can read it instead of decipher it.

2. Invite visitors to act. Every page should contain at least one clear call to action, indicating the next step your visitor is supposed to take. You'd be surprised at how many people click away from a site, not because they aren't interested, but because they don't know what to do. If your visitor doesn't know that he/she is supposed to buy, then that is a problem.

3. Get to the point. Visitors don't come to your site for a little light reading. They scan web pages for the information they want, but they do not read every word carefully. To cut words and make copy more persuasive, use action rather than passive verbs.

Example:

Passive: Jimmy was eating the cookie.
Active: Jimmy ate the cookie.

4. Show the visitor you are out to benefit THEM by using "you"and "your" at least five times more than "we" and "our." Using those words too many times sounds egocentric.

5. Search engines are your friend, so incorporate a lot of good keywords, especially near the top of the page and in the first sentence. Don't waste this space with filler copy.

------------------------------

Kevin WRITES your professional copy--web site copy, sales
letters, ads, press release and more! See http://DrNunley.com.
Reach Kevin at kevin@drnunley.com or 801-253-4536.

Is Success Supposed To Happen For You?
by Gary Baker

Hello to all of you future home business successes out in'Netland.

One common thread that runs through all of you who are just starting out with a home business is "Why can't I seem to make anything happen?"

You put in extra hours busting your butt to get your business up and running so why are you NOT making any money yet?

You have done all the right steps... Picked a great cutting edge product, put up a very nice website with a strong sales letter, placed some ads, etc...

But nothing seems to be going on.

You start to get frustrated and then you second guess your product, website, advertising, and just about everything else.

You read story after story about how this person made thousands of dollars in a month and by golly they are just like you, so why can't you seem to do the same.

Then it happens... You tell yourself that maybe you are just NOT cut out for home business success.

Yep, you wake up one day and tell yourself it just is not supposed to happen for you.

OH PLEASE! You know what I say about that...

"Horse Hockie!"

You can and will succeed. You just need to keep going and DO NOT QUIT!

One of the main reasons others have succeeded is they kept at it.

Just when things seemed to go wrong, these successful individuals did one very important move that separates them from the failures...they did not did not give up.

You will need to do the same.

Treat each new day as if it were the very first day of your business.

Keep up the excitement that first spawned you on to wanting a home business.

Try something different and new when you feel as though you are becoming stale.

Keep up the belief that you WILL be a success.

Remember the only person who can stop you from ever becoming a success is YOU!

Now allow me to put a answer to the title of this article..."Is Success Supposed To Happen For You?"

You bet it is!

Never Stop Believing.

---------------------------------

Gary is a formerly indebt broke ex-factory worker that has been
working full-time from his home for over 10 years. Subscribe to
his "no fluff & bull" ezine "The Home Workers' E-Gazette" and
get his FREE 5 Day E-Course titled: "How To Start Your Very Own
Money Making Home Business In 90 Days Or Less And Tell Your Boss
To Kiss Your Hiney!" mailto:subscribehweg@getresponse.com?subject=071

**We're interested in your comments, questions, and suggestions.
Do you enjoy this ezine? Do you have an Internet marketing or
e-commerce related question? If so, feel free to submit it to us.
We may publish your question and response in the next issue.

Ad Space
by Bob Osgoodby

Ad space in an ezine or on a web site, is just that - space, and the web has no magical powers. If you write a bad ad, you will not get responses. The same ad in a print publication, such as a newspaper or magazine, would yield the same results. You can't blame the space provider, if your ad doesn't produce.

Many people have fantastic results with this type of advertising, and they all have a few things in common. They are selling a quality product or service at a reasonable price, and have taken the time to develop a good ad. They also realize that the only purpose of the ad is to get someone to request more information. They all have a web site that gives complete details, and where they make the actual sale.

Just having a quality product or program at a reasonable price is not the only thing you need. You must advertise it in an intelligent manner. The ad you place is referred to as the"tease". If this is done properly, it gets you to the next step in the sales process, and that is the "education" stage. People want information about the product or service they are about to buy.

When people get to your web site, or ask for further information, it is because they are interested. This is the case where "more is better". The more information you can give them, the greater the chances you have of making a sale.

A very common mistake is to confuse the "tease" with the "education stage". If the web site gives little or no information, it is in effect just another "tease". You can't expect people to buy if you do this. You must provide solid information on how they will benefit from your offer. Others mix up the "education" stage with the "tease", and try to give too much information in their ad. Neither approach will produce good results.

The final stage in this process is referred to as the "close". This is where you give the person a reason for becoming your customer. This can take various forms, but every good ad campaign has one.

All of these elements from the "tease" to the "close" must be in place if you hope to be successful in your internet marketing. Miss anyone one of them and you will join the ranks of the "also rans".

If your ad doesn't produce, examine each of the three stages to see if it would get you to buy. Have a disinterested person look at your sales effort. Sometimes you might get so close to the process, you can't honestly evaluate what you're trying to accomplish.

You must of course get ad space that is reasonably targeted to your potential market. The ad for your product or service should appear in places that your target market will likely visit. Don't forget that it might take 5 to 7 exposures to your ad before someone bites. Don't be discouraged if immediate results are not forthcoming.

Above all, don't blame the space provider - that is simply a copout. They did their part by making the space available and disseminating it to their subscribers - did you do yours?

---------------------------------

Did you know that subscribers to Bob Osgoodby's Free Ezine the
"Tip of the Day" get a Free Ad for their Business at his Web
Site? Great Business and Computer Tips - Monday thru Friday.
Instructions on how to place your ad are in the Newsletter.
Subscribe at: http://adv-marketing.com/business/subscribe2.htm

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>> Change Your Life in 8 Weeks at the Movies

** Refer to the Email for Access Info **

Two sisters, one blonde and one brunette, inherit the family ranch. Unfortunately, after just a few years, they are in financial trouble. In order to keep the bank from repossessing the ranch, they need to purchase a bull so that they can breed their own stock.

The brunette balances their checkbook, then takes their last $600 dollars out west to another ranch where a man has a prize bull for sale.

Upon leaving, she tells her sister, "When I get there, if I decide to buy the bull, I'll contact you to drive out after me and haul it home."

The brunette arrives at the man's ranch, inspects the bull, and decides she does want to buy it. The man tells her that he can sell it for $599, no less. After paying him, she drives to the nearest town to send her sister a telegram to tell her the news.

She walks into the telegraph office, and says, "I want to send a telegram to my sister telling her that I've bought a bull for our ranch. I need her to hitch the trailer to our pickup truck and drive out here so we can haul it home."

The telegraph operator explains that he'll be glad to help her, then adds, "It's just 99 cents a word."

Well, after paying for the bull, the brunette only has $1 left. She realizes that she'll only be able to send her sister one word.

After thinking for a few minutes, she nods, and says, "I want you to send her the word, 'comfortable.'"

The telegraph operator shakes his head. "How is she ever going to know that you want her to hitch the trailer to your pickup truck and drive out here to haul that bull back to your ranch if you send her the word, 'comfortable'?"

The brunette explains, "My sister's blonde."

"She'll read it very slow."