Product Pricing- Is it Time For a Change?

Isn’t it about time that we as Internet Marketers took our heads out of the sand and started to think like Apple arguably the worlds most successful company?

For years companies like Microsoft and Apple have charged premium prices for software, I think Windows 7 is about $119 – $219 depending on version and Mac OSX 10 Snow leopard will cost $129 as an upgrade. These prices have been justified because of the cost of producing CD’s and distribution. However since I switched to an iMac 2 months ago i’ve noticed a trend. Apple are unbundling their applications and charging much less for them if they deliver via the Mac App Store..i.e online

For example I could continue to use Microsoft office on the mac as they make a mac version it costs $279 Like all bundled apps there are parts of it I probably wont use. When I look at Apples iWork tools (the office equivalent) I get the option to buy Pages (word) for $19.99, Numbers (excel) $19.99 and Keynote (powerpoint) $19.99

On my PC I bought Camtasia for $299 but as a download from the Mac App Store Screenflow a rival product costs just $99… as does Camtasia for mac!

I watched the keynote speech from the Apple developer conference yesterday where they announced that the next Mac OS called Mac OSX Lion would cost just $29.99 and would only be available from the Online Mac Store – and you can use that 1 purchase on all the macs you have registered at the App store!!!

Now compare that to Pricing in the IM sector, the Guru’s Increase prices all the time in the past 4 years the benchmark prices seem to have been $497, $997, $1997 and now $2,997 although that last one may just have been a step too far as they seem to have stepped back to $1997.

Now answer me a question (either hypothetically or please feel free to use the comments) how many of you bought Video boss for $2000? If it had been priced at lets say $67 how many of you would have bought it? Would Andy Jenkins have made 30 times more sales? Maybe not, But I suspect he would have had far fewer refunds and a lot more buyers on his mailing lists to which he could have sold further related products.

Of course the big question is how many of his “Good Buddies” would have promoted for $30 in commission? Probably not many but on the other hand I can think of hundreds if not thousands of other marketers who would have promoted it via blogs and forums.

So where am I going with this…

Once you make a product and set it up for download whether you sell 1 copy or 1 million copies It doesn’t affect the cost on the time spent of the original product. So why not take the lead from Apple and sell it cheaply, forget $197, $67 or $57 try $17 $27 or even $7. When you sell a product at $67 you need to pile on value so that it looks like a no brainer, I do this myself by adding updates , bonuses and usually a forum.

If I was to sell the same product at $27 or even $17 I wouldn’t need to add so much value I could add the value items as further low cost items to the download page. So instead of having a forum for beyond commission and another for Video creation mastery I could offer access to 1 combined IM forum for a low monthly cost for all my products then it is in the buyers hands as to whether they want the added value or not.

Look at the Warrior Forum people sell hundreds, sometimes thousands of copies of their products at $5-$17  If they are good and get good feedback they sell if they are bad they don’t sell it’s a simple as that. Thats a market that works with low prices, my last WSO sold almost 500 copies in a few days Beyond Commission which I feel is one of my best product still hasn’t sold that many.  That begs the question which is more valuable $ in the bank or confirmed buyers on a mailing list?


There are 3 big problems here as I see it.

1. We don’t have something as integrated as The Mac App Store available

2. Affiliates won’t promote for $8 or $12 a sale

3. Buyers equate low cost with poor quality.

While it’s true that there isn’t something like the Mac App Store available for IM products at the moment there are alternatives, I use Digiresults to sell some of my reports cheaply it works well and it’s easy to use. It’s also growing all the time. On top of that It also helps with the affiliate problem.

I’ve found that despite what many people think the lure of instant affiliate payments is powerful and people will happily promote low cost products through Digiresults simply because they get paid instantly and don’t have to wait 3 or 4 weeks to see the results of their promotion.

In the past few days alone i’ve had someone sell 30 or so copies of one my products as I give 75% on that product he’s probably earned about $300 and I’ve maybe only made $100 what!  it’s $100 more than I would have earned selling it at $47 and I have 30 new buyers who are now subscribers.

Now thats what I call Win Win

The last point will take time and education and thats where all you guys reading this come in, if you buy a low cost product and the content is good them it’s up to you to spread the word, tell people it’s good, recommend it , even promote it. Start spreading the word that low cost doesn’t mean it’s crap! It’s in your own interest as you my friends will be the beneficiaries in the long run.

I am going to start to test this with some of my products in the next few weeks I’ll take some of them remove all the bonuses zip up the videos and PDF’s and add them to Digiresults at a much lower price and see how it goes. I realize that it might annoy some people if they bought recently but I’ll sort something out. Stay tuned I’ll let you know if it works or is a total failure.

I would love your comments more than ever on this post, Am I raving mad or do I have a point, could this be the start of something or are people too entrenched in their views please let me know by commenting below.


  1. says

    Well, you should always test your prices. We do with our info-products.
    However as you quite rightly point out “Buyers equate low cost with poor quality.”
    And people like to think they can afford the best.


  2. says

    I think you might be a voice in the wilderness on this. There are just too many people in IM hyping each other up and talking BS about over delivering. I just bought a WSO with loads of great feedback and I thought it was overpriced at $13.50. Very little original content.

    I believe that your Video Creation Mastery is 100 times better value than Video Boss but good luck convincing anybody of that. I don’t think that people will stop buying overpriced garbage any time soon.

    Talking of overpriced garbage, I hear that Video Boss is about rear it’s ugly head again. I heard this from a marketer whose opinion I have previously respected. Might have to rethink that.


  3. says

    You are right, people equate low prices with poor quality. If you remove forum, what happens if the buyer has doubts, ‘ the total satisfaction factor’ will be missing. I liked beyond commission only because it had a forum, i saw value in the investment. Just a pdf would have been incomplete.
    Newbie’s buy cheap products, serious buyers always look for value



    Kishor, BC would always need to have videos with it, as you can explain things in a pdf but you can demonstrate them much better with video.


  4. says

    I have yet to understand why an ebook shouldbe more expensive than a physical book. As you say Mark, prices have risen gradually. 10 years ago, a $27 price point shocked people, now $67 or $97 is “low-priced” and $197 is “normal”. Well, not to me it isn’t! I can’t imagine ever paying $1997 for a product that only teaches one aspect of marketing – I would much rather spend that money on one-to-one coaching with someone I trust.

    I notice there is some resistance in the market now. Some of the more recent high-priced launches haven’t done as well as in the past.

    I also object to paying twice as much as a product is worth, just so some affiliate gets half of my money for basically doing nothing. If a physical store marks up an item by 100%, I accept it because they provide me with a real service. Some affiliate blasting my inbox with promotion after promotion isnt’ giving me any service at all;, certainly nothing worth $1000.


  5. says

    Hey Mark,

    The question of pricing is a very important one. And as Mark stated in the first comment, the crux of it is that we’re hard-wired to associate high value with high prices.

    I have an entire mini-membership site filled with all of the free products that I’ve created. I can guarantee you (and feedback from my members confirms this) that most of my freebies are of better quality than a lot of products that you can buy for two- or even three-figure sums.

    I can also tell you, from looking at the analytics, that very few people invest more than a few minutes in a free product, no matter how good it is. On the other hand, a much larger percentage of people will watch beyond the first video and even consume all of your content if they had to pay for it first.

    Also: I’m sure you can guess that I have far more people as paid customers than there are people signing up and using my free products.

    I’ve never sold anything at a ridiculous price like $2K, mind you and neither am I planning to. But it seems to me that prices in the region of $50-$100 are best in terms of getting people to actually take your content seriously and actually invest some time with it.

    That’s just my 97 cents. ;)




    Hi Shane,

    Good point, I’ve noticed that with free products as well, people don’t pay as much attention to them as they do if they have to pay some money for them… people are strange :)


  6. says

    Hi Mark ,
    Many programs are grossly overpriced.
    Lazy affiliates have got used to high commissions….
    There’s a recession !
    I have sold software since 1982
    When I first started I used to commute to the USA weekly and import games at $25 each that would cost 5 times as much today.
    If software companies charge too much then they should expect a similar situation to the music industry where piracy is commonplace.


  7. Bill Smith says

    Good thinking Mark – and when everyone realises there is a free MS Office look-alike out there (Open Office) perhaps greedy MS will be forced to lower their prices.

    For the rest of us – somewhere there’s an optimum price and you find it by testing.,

    Testing is something people talk about a lot but generally we aren’t too good at it.

    Putting those laughably over-priced and over-hyped IM products to one side for a moment – when pricing ‘normal’ products, a whole lot surely depends on how useful a product is.

    If your eBook is about making lampshades from recycled bits and pieces – you had better be ready to sell at a very low price. If your product is written by a guy with singed eyebrows who offers a foolproof way to survive a forest fire – and your target audience all live in dry forests – you can probably up the price a tad.

    There are many variables but need and utility have to be pretty important drivers in your pricing I would have thought.



  8. Sherrie St. Cyr says

    I think you are absolutely right. Although there is always a new batch of people who think they have to spend a lot of money to get good info, there is also a new batch of people who have learned that high dollar doesn’t necessarily mean high value. I count myself among the latter and I welcome your approach.


  9. says

    Maybe I’m alone on this, but I’ve found something that works for me and the ‘shiny things’ aren’t all that shiny to me anymore. I’m not going to shell out even $37 for a product, because no matter what it is, I know I do not need it.

    However, if I get an email from a marketer I respect promoting a $7 or $11 WSO, then I’m more apt to mindlessly hit the buy button because it is so cheap. And I’m definitely not going to return it. $7? Pfff…

    Honestly, I’ve gotten a great deal of value out of cheap WSO’s recently. I prefer the 4 pages of hard information to the 48 page report packed with fluff.


  10. says

    my thoughts:

    1. some products are overpriced … i have bought many such products over the years and i can safely say that

    2. i would rather pay a smaller price for a product that did not come with bonuses as sometimes the bonuses are of no use to me and i just want the product

    3. some marketers use unethical techniques such as promoting a free product that requires your email address to get your hands on it … and then you find out that the product is actually a free restricted version of a product they actually want you to buy … i totally hate this!!!! and have complained to these marketers … my point honesty and being upfront works better if you want repeat business from your customers … 2 famous marketers use this dubious tactic and have promised myself to never buy anything from them … so it is not just the price that is important

    4. i dont equate low prices with low quality as i have bought great products at very affordable prices

    hope this helps



  11. says

    Hi Mark,

    You wanna know something? I just downloaded Andy Jenkins videos yesterday and as I was sitting here watching them I was thinking to myself “you know, these are very good, but I think that Beyond Commission explains things even more in-depth”. Granted, his were free and yours were cheap, but I just felt like you gave so much more in your product and his were a lead in to a $2000.00 product.

    That being said, Mark, I don’t think that significantly reducing prices on all items is a smart move. By driving prices down you make it harder for affiliates to earn money promoting your products. Giving out 75% is nice, but 75% of $17.00 is only $12.75 and not hardly worth the time for most affiliates, especially if they’re using Pay Per Click!

    You’re buddies with Andre Chaperon, right? Have you asked him what he thinks?

    In many cases I’d turn my nose up at promoting something with a $17 commission simply because if I earned a 50% return, after PPC costs I’d still only get $8.50. The odds are great that I wouldn’t touch it with it being priced so low. Why? Because there are way too many other quality products I could promote and make $10-$20.00 or more per sale!

    It would be different if you were creating and selling products in the $17-$27 range and giving your affiliates 100% commission, while you built a list of buyers on the backend. That way they can make a living too. This is what Kim Roach did recently with her $27.00 traffic product. She gave a 100% commission and had several big name marketers promoting for her! Last I heard, Kim was close to 1000 new buyers from that product alone PLUS she just did a $1000.00 12 week coaching program. In my mind, THAT is how it’s done!

    Remember, just as you must take care of your customers, you must also take care of your affiliates because both are your lifeblood.

    Finally, customer perceived value has to come into play. Pricing things too low can be a bad thing because many people won’t see quality in the offer because of the price tag.

    I do think that pricing most information products above $500.00 is heading into dangerous territory, however, I have three courses sitting on the shelf behind me that I’ve paid over $500.00 (I’ve bought more) for and two of them have paid for themselves over and over again!

    By the way, that brings me to another point. How many people are actually going to use the products they buy? Reducing prices will let many more “tire kickers” in and could potentially cause you a customer service nightmare in the long run. Do you recall the 80/20 and 90/10 rules? It WILL happen, I promise you!

    I think that it’s best to keep things at a certain “middle of the road” price point for all concerned. Don’t hurt your affiliates, don’t hurt your customer perceived value and keep most of the the “tire kickers” out of the equation.

    My two bits.





    Joe, With regards to your comments about affiliates and low commission payments. I actually thought that before until I released some low cost products and found i actually made more sales in the long run. I didn’t pick up big name affiliates but i had lots of people mention the products in forums and on their blogs. Plus people love the instant affiliate payments I’ve found that many will take $9 instant payments over $20 delayed payment, I suppose it’s just human nature

    Just look at what James Jones is doing with his $7 deals on weekends probably well over $100,000 a year from 1 email every friday.


  12. says

    I’ve said it before. Mark, I bought your WordPress Goldmine product about a year and a half ago. It was very thorough, detailed and did a good job of providing a start to finish way of choosing keywords, creating sites and marketing those sites. It was the last good product I bought. The guys who created the Warrior forum are geniuses. They have created an environment that allows experienced marketers to create “products” and sell them to neophytes looking to make it rich in IM. Each “product” more overhyped than the next while I’m sure the site owners collect tidy little commissions on every posting and sale. It is IM narcissism at its finest. This is the truth that I am afraid most internet marketers shy away from. The real money in internet marketing is in selling “products” to eager newbies to teach them how to do internet marketing. The detrimental effects of the Warrior mentality permeate search results. As a person learns more about this type of internet marketing they become acutely aware when surfing the internet that much of the information that comes up when searching particular keywords contains links to sites that are pure garbage. Useless collections of “information” designed only to please the search engines and provide fertile ground to plant Adsense ads with the hope of collecting a buck or two each day.

    So I guess in a sort of long-winded way I’m saying the price is irrelevant. Until the image of internet marketing returns to the idea of working hard creating high quality, useful sites and how best to leverage that quality to generate income then the question of price is purely rhetorical if the products are essentially the same.


  13. Marc says

    I’ve been burned enough times on over priced info-crap on a CD. The idea that you can put something on a CD and overprice it because it’s a “physical” product has been abused to death. Whenever I see a sales page with a photo of mountains of CD’s at the bottom, I’m out of there!


  14. says

    I just bought a $9.00 WSO and I have to say that it is by far the best course that I have ever bought with helping me get my LOCAL offline consultant business off the ground. The pdf’s and 2 videos of instruction were right on the money and within 3 hours I had a marketing strategy up and running. The best thing is now I have a template set up and it is now wash, rinse and repeat. This new marketing strategy is an excellent door opener for new and recurring business.

    I really had a hard time deciding to get this product because of the price, but once I bought the product and devoured the content all up, it all made sense and is really a great, great product! So, Mark, yes you are correct that people do judge a product by its price, like I did, but people really miss out because they assume that because the price is so low, that it’s not even worth looking and that in itself is a mistake and also they pass it right over and buy the $197 to $497 to $997 products that are shit products rehashed from some other guru’s regurgitated garbage!

    Again, it is with great honor to follow you once again down this road of how the IM Community of so called Guru’s keep shoving down our throats these FANTASTIC product launches after product launches after product launches and OH KNOW, WAIT! Do you mind waiting a couple days for my product launch because my friend Amit is launching his new ONE PUSH BUTTON SOFTWARE, which by the way will compliment my new product, and we don’t want you poor bastards putting your wallet away so you can now get my new OVER HYPED 10 DAY PRODUCT LAUNCH at $2997.00 the REAL VALUE is 2 MILLION DOLLARS! YES THAT’S RIGHT FOLKS 2 MILLION DOLLARS YOU CAN MAKE RIGHT NOW WITH MY NEW 1 BUTTON SUPER DUPER HYPER SOFTWARE – ALL YOU NEED TO DO IS CLICK ONCE AND ALL THE MONEY WILL BE IN YOUR PAYPAL ACCT. CAN’T YOU HEAR THE KACHING, KACHING, KACHING IN YOU PAYPAL ACCT. WAIT the hyper buyer comes down from the hype and now checks his/her wallet and you better half is wondering where all the money went! Sound familiar!


  15. says

    I’m going to go against the flow here. With the information overload that exists in the IM space, I like to buy inexpensive products that solve a SPECIFIC problem, which is the problem I’m having RIGHT NOW. Yes, that solution is probably within one of the huge products I bought awhile back, when I was just getting started, but wading through all those videos and pdfs and webpages to find it is daunting, and really time consuming. So whether it’s building a custom facebook page, or learning how to make a simple screen capture video using a free tool, or leveraging online tools to create backlinks, the IM product that answers the need I have RIGHT NOW is likely to be the one I buy, providing I can find it, it’s affordable, and it’s got good reviews in various places.

    I, for one, have had it with the expensive everything but the kitchen sink along with ten bonuses I’ll never have time to even look at products. Especially since many of them are rehashed crap.

    There’s a reason that Apple and other big companies are modularizing their offerings. Why buy a huge bloated wordprocessor/spreadsheet/powerpoint/drawing/database program when you only want a tool to work with spreadsheets?


  16. says

    My PERCEPTION of Warrior products has been the the products must not be that great because of the low pricing!

    With that said the 4-5 products that I have purchased there were well worth the money and the support was better that the better know STUFF. So you may be on to something…

    I think it will take some time for the vast majority of the buying market to get used to this idea.

    I think the bottom line is buyers are tired of all the hype…

    P.S. Just purchased Beyond Commission yesterday so can’t wait to see what I can buy it for over at Digresults???



    Ron, you’ll have a long wait to see BC in Digiresults maybe if i do a BC 2.0 :)


  17. says

    The prices sure have gotten ridiculous. I feel like there are a lot of poor saps losing their family’s money on a product that they pay $1997 for and then never make a dime. There should actually be more regulation on products.

    Also, I hate it when people offer all these value-added bonuses to their products. Usually it’s just some .pdf file that is trying to sell you something else. Instead I would prefer some free articles written or maybe something else tangible.


  18. Phil says

    Hi Mark

    Very Interesting post. I agree too that when an application is produced the cost remains the same regardless of how many actually sell.

    However there is one cost that can continue to add to the initial cost, and that is the cost of supporting the product. I’m now full time involved with Internet Marketing and have a foot in both camps, that is site building and promotion etc, and also in software development.

    As an example to my point about support costs, I wrote a program that I use almost daily and did consider initially that it was going to be a commercial product, but this soon changed when I realised just how often I had to update it because the website it was using constantly changed and I had to keep updating the program to work with these changes. Multiply this with several versions of Microsoft Windows in use, several browsers each with different versions too, and trying to support other users would be a nightmare!

    Some programs for IM, like for example Market Samurai, face similar issues. But that’s why they must build in an element of ongoing support costs in to their initial pricing structure.

    After all, who want’s to buy a piece of software that might stop working next week, no matter how much, or little, it costs?



    Another good point Phil, I usually have to spend an hour or so a day answering support questions (the answer is usually …see this knowledgebase article ;) or Did you read the install document :) ) I am happy to do that myself but I suppose that if i was making more sales I would need to hire some extra staff to answer the calls …. although I believe thats what 17 year old daughters are for!


  19. says

    Hi Mark-

    I definitely went this route, and it IS hard to get affiliates to promote lower cost products, particularly when they don’t offer continuity programs to make “easy money” for affiliates.

    Far too many affiliates are lazy, don’t write their own content, and have gotten away with it in the past. I firmly believe the recent changes in the Google Adwords and search algorithm products is going a long way toward wiping these lazy IMs’ income streams out.


  20. says

    Did I buy Video Boss at $1997? No. Would I have bought it at $67 or $97? Most likely.

    I suspect that Andy would make almost as much, if not more, by pricing it in that range but it would introduce a couple of things that I don’t think he would want to deal with – an ongoing sales process and more customer service.

    I don’t think he could make as much with a lower price point by doing a typical launch – pre-launch hype, big splash then shut it down after a few days. He’s probably have to sell it on an ongoing basis, which seems to be something the gurus are dead-set against. And he’d have a lot more customers which means he’d actually have to provide customer service.

    I don’t really think you can use the “guru” launches at the $1997 price point as a comparison to anything. For the most part, they don’t have ongoing businesses – they just make a big splash two or three times a year and promote each others’ stuff in between.

    Cutting the price would mean building a real business, with products that continue to sell and might even get updated regularly, and it would mean dealing with a lot of affiliates rather than leaning on a dozen or so buddies to really push the big numbers, with all the smaller affiliates helping to provide the social proof (and maybe sending a reasonable number of sales in the process).

    The comparison to Microsoft and Apple is interesting though. Microsoft gets the bulk of its revenue from Windows and Office so they have to keep updating them every couple of years, even though there really hasn’t been anything absolutely necessary to justify the upgrades (for Office especially) in years. That sounds a little bit like the guru model of releasing “version 2″ of some $2000 course every year or two.

    Apple, on the other hand, is a hardware company that sells software to drive its hardware sales. So the software is more like a cheap front-end product in our world, one that gets people into your funnel so you can sell them more down the road. And Apple’s hardware is at the high end of the price spectrum, but most people who buy them feel very happy that they got their money’s worth, similar to us selling a high priced product and then actually *delivering* that amount of value.


  21. says

    I definitely believe that somewhat lower pricing would help everyone involved.

    Obviously, the end user would be able to afford more of the products they want (need ?), which would also mean the product creator is selling more product.

    I do realize that most affiliates may lean towards the bigger payouts of more expensive products, but I believe if they started realizing many more sells of more affordable products, that may change.

    I’ll very quickly drop $17, or even $27 for quality information, but I very, very rarely spend $97 or more.


  22. says

    Mark — you mentioned something that I think would make a really valid business model:

    Create low-priced (high-value) reports. Minimalist in nature. Focus is on the content. It doesn’t include “support” (live Q&A etc).
    Create a low-priced subscription “membership” (community) forum. It’s there to “support” your products, services, and customers (tribe members).

    I think it’s a solid framework for a stable online business. You have one-off reports. There’s backend continuity. Something for everyone.



  23. says

    I think you’re absolutely right – it’s better to sell more at a lower price, getting more subscribers as a bonus, than selling to fewer at a higher price.

    This would work for affiliates also, selling more of a lower priced item with a higher percentage should be just as effective as selling fewer at a higher price.

    Although, I don’t necessarily equate a higher price with a higher quality product. I judge a product on my trust and confidence in the seller, and I would be much more inclined to buy a product I want at a lower price.

    And, it may not be related, but it is annoying when I go to a sales page of a product I’m interested in and have to search high and low to find the selling price – this is just a waste of time. A marketer can tell me everyone in the world loves the product and have tons of testimonials, but if I can’t afford it, I just can’t afford it. Why not begin with the price and then try to convince me it’s worth it.


  24. says

    I would personally never spend 2K or 3K on a download product. If I wanted to learn how to make videos at professional level for instance I would simply go to a commercial learning institution to get the skills I need. I would certainly not spend that amount on an IM marketing product. O’reilly’s have one of the best physical books you can get on SEO. It’s only $97 and it’s one of the most in depth reads I’ve ever seen on the subject.

    There is certainly a misconception about $7 and $17 products out there. Like others here I have learnt just as much or more from a $7 product as I have from a $97 product. Personally it’s the money back guarantee that enables me to buy quite a few. I might balk at buying one without that. I’ve never asked for a refund though as I’ve always managed to find one little tidbit that makes my business more effective or easier.

    Take your Fresh Approach for instance. Most of the stuff in there I learnt elsewhere but the one tip about using a link to bypass the sales page of the product creator is something I have never read anywhere else which I found to be very odd considering how much stuff I have read on the subject. That little tip alone made it to be a worthwhile investment.

    As for Apple my kids have an iPod and a Nintendo DSi. I find it hard to believe that Apple can have a game for 0.99c or I can go to a store and buy a physical product for $50 or $60 for the DSi to get exactly the same game but with inferior graphics. Guess which one I go for?

    Being able to purchase a fantastic operating system for so cheap on a Mac will hopefully give Microsoft a kick up the bum. I have Windows 7 on my desktop and starter on my Netbook but I’m expected to pay the same amount of money to upgrade my Netbook to the full Windows system that I did on the desktop and it’s a downloaded product. Needless to say I haven’t bothered.

    By the way thanks for the incorrect link to the blog like reveal. I think it’s an awesome idea. Ended up buying the developers licence.


  25. says

    This is an excellent topic. I think we need to remember that what is being sold is the information, not the book, CD or pdf file. Obviously, physical products have a higher overhead and distribution cost.

    When you go into a Chapters bookstore, most of the computer programming books will be priced from $50 to $100. A few are cheaper. Some are much more. The content is what is valuable to me. I can find a bargain basement novel for under $5, but a bestseller will run $12 or more even in paperback.

    Value is in the applicability of the content to the consumer. How will it help them in their business or personal life? How hard would it be for them to find the information on their own? How much time would it take them?

    I’ve seen Andy Jenkin’s Video Boss shown as an example here. I don’t think I’d spend $2,000 on it since I’m not getting that heavy into video — yet. I’ve learned some from his free “promotional” videos that I’m applying to my own videos that I’m working on. If I was going to get seriously into creating video content (and I may some day) then I might consider it. Whether the course would be worth it or not I can’t say since I’ve not seen it.

    The bottom line has to be a balance between 2 questions:
    What is the product worth to your target audience?
    What is a reasonable ROI for you to produce it?

    I’d like to see a lot less bonuses offered on products (1 or sometimes 2 is okay, but 6?) and the hyper valuations need to go as well.


  26. Maria Redman says

    IM is certainly a painful and expensive learning curve in my experience. Buying VERY expensive programs at “Entrepreneur Events” and the like initially make you feel you are buying into a REAL business. A lot further down the line and somewhat wiser, I tend to only buy low cost products which tackle specific areas, and which save time and effort etc. I also look for thorough reviews on WF and buy only from trusted individuals or if a product is endorsed by trusted people. If it costs $7 on WF tho’… got to be worth a punt especially with some decent reviews to back it up. One thing I really can’t be bothered with is the big packages with endless hours of videos most of which are only 50% content if that. Yawn…. On the subject of support, many times i have found that expensive products have very poor support. I ask a very specific question about a particular problem or bug and receive a generalised answer which references a pdf instruction manual which i already stated that I had read and which hadn’t solved the problem. There is nothing more frustrating than poor support – especially for high priced products.


  27. says

    I have become very cynical over the 7 years online and would never buy a product over $499. Whsat could anyone possibly produce that’s worth more that anyway?

    I also prefer digital products as being in Australia, physical products are harder to return. I also unsubscribe if I get too many emails about a product that are exactly the same – lazy affiliates is so true.

    I too have bought a couple of good WSOs lately one for $17.99 and the other for $9.99 – great value.


  28. says

    Mark when you mention James Jones and his Friday $7 specials, you’re right on point. I’ve bought a lot of those and I’m certain so have many others, because if it didn’t work James Jones wouldn’t do it …

    I do a lot in gardening and other “offbeat” niches like specialty liquors and some fitness stuff and I have had much more luck selling an ebook on my topic for far less than the usual $19 or $17. Like half those price points roughly. The best part? Practically nil refund rate. Yes they provide quality info, no fluff, get right to the point etc. but I have had a few buyers tell me at the price I charge they say “why not?”


  29. Mike says

    I recently received emails from 3 marketers arguing the exact opposite to what you’re saying. Their reasons were; how can you imagine to get anywhere near the knowledge and value from a $7, $17 or $27 products when you know exactly what you’ll be getting from a $500 plus product.
    I have bought my fair share of high ticket products. To tell the truth only 1, the original Commission Blueprint, was worth the price tag. I also has a wso folder that is full of pdfs and products that I’m interested in and all cost under $30. I refer to this folder constantly.
    Oh and BTW, the 3 marketers bagging cheap products, I received emails from them promoting Video Boss a weeks or so later. Perhaps those previous emails emails were part of the affiliate swipes. Anyway they’ve been unsubscribed. Which brings up another gripe for another day. Marketers that just change you over to a different autoresponder when you unsubscribe. GRRR.


  30. Neil says

    Hi Mark,

    Great topic and interesting to see responses.
    The search for the perfect answer is always going to be an exciting challenge filled with many frustrations and some successes, not perfect but feels like it at the time.

    My five cents worth is a product costing around $7-$10 with great headline and straight to point short info about the value offered is the way. When I encounter such a product that has got my interest, I buy.

    That price range is no big deal for many of us, so no great loss if it didn’t deliver , at least you would avoid the author next time.
    However there will be thousands of people trying to make it online that even $7-$10 is a lot of money but maybe still within their reach, beyond that it is just a dream.

    A stand alone product that delivers real value and sells for $10 or less would surely lock that buyer a a loyal customer for anything else you may offer, even if it costs more.

    Keep up the good work,



  31. says

    Hi Mark!

    I think you are 100% right on this!

    I bought a product for $997 and it wasn’t good at all…. I felt like I got ripped off, but there wasn’t much I could do about it, unfortunately. I should have saved my money and invested in things that I knew would work, like your products!

    Oh well…


  32. says

    I notice that Video Boss 2.0 went live yesterday. Is it just me or has this been a very low key launch this time. I have heard virtually nothing about it. Maybe the times are changing after all.



    All the “usual Suspects” were promoting it…sounds like you got off the right lists :)


  33. says

    I have bought a few products on the warrior forum, for less than $10 and they have all been good value.

    I’ve said it before and i’ll say it again, if I could afford to splash out $3000 on a product, I probably wouldn’t need it, i’d be making enough money already.


  34. says

    This is a good post with lots of excellent comments!

    The most I’ve ever paid for an online product is $297.00, and that was a one-time thing. I bought X-SitePro website builder, along with the video course. It was money well spent! I would have to look long and hard before paying more than $97.00 for an internet marketing product.

    Lately, I’ve purchased several $7.00 and $9.00 products – but, even there, I’ve curbed my spending somewhat. Why? Well, because it’s easy to get into the harbit of buying the next shiny $7.00 Warrior Special. In other words, my folder is bulging, and I may have fallen into the old information overload dis-ease again. Of course, this just proves that low-priced products are big sellers, doesn’t it! :)

    So, yes, I agree with your anlaysis on pricing strategy.

    All the best,


  35. says

    I would much prefer a $7 – $10 price point for focused information opposed to $80 for the same info with “bonuses”. A quick read, or view, that addresses ONE micro-issue/topic would be fantastic.

    I would additionally suggest a different price structure. Take the ancillary bonuses and price them for $5 – $10 each. Anyone recall “add-on” sale ? Ever go to Mcdonald’s, order a hamburger and drink? Does the attendant ask if you want fries with your order – make it a Combo for only $.75 more?

    Add-on sales also take advantage of “Loss-leaders” Milk advertised at cost and placed next to bread and cookies encourages add-on sales.

    Consider convenient stores which sell gasoline. The profit on gas runs 2-3CENTS per gallon but is a HUGE traffic generator. Taking advantage of the traffic convenient stores also sell “add-ons” such as drinks, snacks, etc. these generate the vast majority of profit, not gas sales.

    Consider the “Convenient Store” marketing plan.

    All the best!


  36. John says

    I like and agree with your logic. I am an affiliate for a couple of the so-called Gurus and it is blatantly obvious that a load of them work on the premise “you scratch my back…” regardless of what the product is they are promoting. Let’s be hones – at the end of the day, the vast majority of these products are basically little more than a “variation on a theme” and the “value” quoted is really only in the eye of the beholder.

    I have bought a fair few items through WSO and generally find them good value AND more important, easy to understand. I do not have 10-15 hours to sit down and learn a process that really only takes a tenth of that time. I have only had one let down with WSO that I can recall and that was on a WSO for $7 which basically told me that if I wanted to dictate my typing, I should buy Dragon V10 – a bit disappointing since I already use V11 and am awaiting V11.5!!

    Ah well, there we go – can’t win everything!!



    John, I think I bought that WSO myself :)


  37. Tess says

    Having recently bought e-books on several topics (from philosophy, business and fiction) to read on my Kindle Ipad app, I don’t see any reason for spending more than £10 on an e-book. Often the price is less than that. The e-books usually contain links to find out more or to buy more similarly modestly priced books.

    A few years ago, an academic book on E-marketing would have cost around £15-20 – usually written by a reputable person in the sector. Why pay hundreds and thousands of dollars on flashy salesmen’s courses?

    Many gurus/teachers of IM have profited from those eager to be first on the early adoption curve – and therefore willing to pay the premium price. It’s the way of things. Now, we are into the mainstream and no-one needs pay a premium (unless it’s exceptional or cutting edge).

    I don’t think people mind ‘gambling’ $7 (the price a glass of wine in a central London pub) for an e-book and will be prepared to pay a little bit more for something meatier.


  38. Gail says

    I think that a lot of the pricing has to do with your target market. For example, if you are marketing to a niche where the norm is less than $15, then it behooves you to stay within the target price of your audience (in this case, $15).

    That being said, I think the IM world has gotten out of hand with the $197, $1997, $2997 deals. The bigger question is this: how much is a single person going to make you, long term?

    If you price something at $17 and get 50 buyers, or $7 and get 100 buyers, what’s the value of that person long-term? If they are on your list, you can market to them in the future. And in my book, 100 people on my list is better than 50 or even 1!

    Personally, I would rather have a lower cost for the product and less “fluff” (which includes bonuses). I can’t tell you how few bonuses I really read…well maybe I can. I think I’ve read one bonus.

    I do think IM selling has gotten ridiculous. And I think a lower price point isn’t necessarily looked at with suspician these days, not by anyone who has been in IM for more than a month or two. And while I will still on occasion look at a higher-priced item (over $100) if I discover it’s a great value, I tend not to buy them (unless I discover through research that is is really valuable).

    My vote is no bonuses, lower cost and lose the fluff (although Mark, I don’t consider you to give any fluff to begin with). More buyers = more people on the list = more future buyers.

    Off my soap box now! :)



    Gail do you want to write my Videos scripts?/ (yeah like i script my videos!!! :) ) I just said almost the identical thing in a video I just recorded


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