Episode 54: How to be profitable with low-priced products

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A lot of people tell you to raise your prices and “go premium” – but is it possible to build a profitable business while still keeping your products affordable? The answer is a definite YES, and there are many examples of companies that have done so – including my own. In today’s episode, I describe five important principles to keep in mind if you’re committed to selling lower-priced products.

Highlights:

  • Examples of businesses succeeding with cheap or free products (3:05)
  • What you MUST be willing to do in order to build this type of business (6:22)
  • A common fallacy about low-priced products (9:47)
  • How to prevent yourself from working too hard for too little money (10:54)
  • Why your customers might surprise you (13:45)
  • How to deal with fans/followers who will never buy anything (18:22)

Links:

  • RockYourRetirement

    This was a great episode. You are right. Most of the “gurus” advice people to increase prices to a place where most people can’t afford them. Thanks for showing us that we CAN make a profit on low priced products!

  • Thank you so much for this episode, Shayna! I listened twice to make sure I fully caught all of your insights. I feel reassured that I’m on the right track – I’ve focused my attention on content marketing and automation since the beginning. I really valued what you said about the product ladder – I’m now planning to offer a range of products at various price points to serve different members of my community. And you’re totally right, your customers may surprise you – I just created a number of lower-priced courses and was pleasantly surprised to see people buying before I even created funnels and autoresponders to sell the products! What I can definitely do better is to encourage my audience to share my content more and to get in front of new audiences. It also really helps to ask your paying clients for feedback regarding pricing – I’ve interviewed students who have told me to charge more to accurately reflect the value of my courses and incentivize people to complete the course! Thanks again for your insightful episode!

    • You’re welcome! It’s a great sign that your students started buying before you even set up the promos, and good tip about asking paying clients for feedback on pricing.

      Another thing I forgot to get into is the idea of pricing/naming logic – for example, all my “e-books” are $15, all my “courses” are $30-$45, and my “complete program” is $247. Sometimes if you have a “course” at $20 and a “course” at $75 and another “course” at $199, people have a hard time understanding what’s different and why some are priced low and others are high – whereas if you decide to differentiate the names (“course” vs. “workshop” vs. “program” vs. “seminar” etc.) it makes it easier for people to understand – ex. “Oh okay, the quick workshops are $20, and the full-length courses are $75, and the big seminar/program is $199”) – you know?

      • Oooh, thank you for sharing this “bonus” tip. That is such a good point – especially with non-native speakers who may be confused by the lingo! I usually use the word “workshop” for longer, more detailed videos to distinguish them from the free lessons, courses for a collection of workshops, and programs for a more transformational course that has more guidance (either with me involved or through the way its structured). I am definitely going to keep this in mind as I continue to offer more digital products. Once again, many thanks!