Monthly Archives: February 2016

3 Quick and Easy Ways to Make More Money With Every Sale

downloadIf you’re selling most of your products or services at a single price point, then you’re missing out on a huge opportunity to make more money.

Take a look at just about any company, and you’ll see they offer consumers a variety of price points and options.

For example, go to Dell.com, choose one type of computer (such as an Inspiron), and notice how you’ll get at least three different main options, all of which have different price points. (Naturally, you’ll also have the opportunity to upgrade your options as you walk through the sales process, no matter what main option you selected.)

Now you can do the same thing and offer a variety of price points for your products and service. Now here’s the key: if you do it the right way you’ll actually be able to lead your prospects to choosing a specific price point.

That’s pretty awesome, right? All you have to do is take these three points into consideration as you develop your pricing strategy:

  1. Optimize Price Points.
  2. Over-Deliver.
  3. Offer Premium Options.

Let’s take a closer look at each of these three factors and how the psychology plays out in your prospects’ heads.

1. Optimize Price Points

The idea here is to set up a battle between your prospect’s logic and their emotions and desires.

Let’s imagine for a moment that you’re selling a self-hosted autoresponder script. You might offer your prospects a variety of price points with options as follows:

  • The lowest price point is for those who expect to have 15,000 or fewer subscribers.
  • The middle price point is for those who expect to have between 15,001 and 74,999 subscribers.
  • The highest price point is for those who expect to have more than 75,000 subscribers.

You can set it up so that customers know it’s cheaper to pick the right option now, as opposed to upgrading later.

So what happens?

The savvy shopper will spend time considering these options carefully, since picking the right one today will save them money in the future.

Logic will tell the beginning marketer he should pick the low or mid-range option, since it’s unlikely that he’ll get more than 75,000 subscribers very quickly. Logic says don’t worry about any extra money spent upgrading later, because he’ll be making a lot more money once he has a big list.

But then his ego steps in. His ego tells him his business is going to grow quickly. His ego says getting 15,000 subscribers is a cakewalk, and growing the list to 75,000 subscribers is likely since he has a plan. So he’ll pick the high-priced option because he’s convinced he’ll need it very soon.

(Spoiler Alert: The average beginning marketer probably won’t break 25,000 subscribers, so the mid-priced option would have been just fine.)

You can do the same thing with your offers: simply pit your prospect’s hopes and desires against logic. Chances are, their hopes and desires will win just about every time, and you’ll pocket a little extra cash.

Now let’s have a look at the next factor you can use to increase the value of your average sale…

2. Over-Deliver

The idea here is to offer at least two price points, with the second price point being the obvious choice because the customer gets a whole lot more value for their dollar. The trick is to make the higher price point just slightly higher, but the value is considerably more.

The cool thing about this psychological trick is that you can actually lead your prospect to the option you want them to choose. If you have two price points, you can lead them to the highest price point. If you have three price points, you can lead them to choose either the middle or highest price point.

Let me give you an example…
Let’s suppose you have two bundles of products available for sale:

  • Bundle #1 has two eBooks available for $20.
  • Bundle #2 has the same two eBooks, plus a bonus video, PLUS an in-demand software app for $27.

Now which bundle will most customers choose?

That’s right, they’ll choose the second bundle because they get a whole lot more value for just $7 more. You make one “no brainer” option, and you can bet customers will flock to that option like crazy.

Now let’s look at the last psychological trigger.

3. Offer Premium Options

Some people just want the best of everything.

Offer them two wines – one for cheap and one expensive – and they’ll choose the expensive wine.

Give them the option of a standard hotel room or an upgraded suite, and they’ll choose the suite every time.

No matter what they’re buying – from steaks to computers to cars – they’ll choose the most elegant and most expensive option.

Now here’s the clincher…

It isn’t that the higher perceived value justifies the price in their mind. In many cases, it’s the other way around. Namely, a high price creates a higher perceived value.

Researchers have shown this to be true. Give people a blind taste test of wine, and tell them one bottle is significantly more expensive than the other. They’ll choose the higher priced wine as being a finer wine, even if you just gave them the exact same wine for the taste test, or if you told them a cheap $10 bottle of wine was the $50 wine!

Likewise, marketers encounter the same thing when they test prices. Sometimes, without changing the offer or the product at all, simply boosting the price can boost sales. A high price means a higher perceived value, and thus more sales.

Now you too can tap into this desire by creating a multi-tier pricing strategy that showcases the most expensive option as being elegant, premium and exclusive.

For example, you might set up a membership site with three levels and price points. Then you name these options as Bronze, Silver and Gold. Those who value premium options will go for the Gold option because it’s the best.

Here are other words you can attach to your highest-price option:

  • Diamond
  • Platinum
  • Elite
  • Exclusive
  • Inner Circle
  • Premium

Put a price point to match these premium options, and you may just get a surprising number of sales.

Now let’s wrap things up.

Conclusion

Single price points are useful at times and should be part of your overall marketing strategy. But a multi-tier pricing strategy actually introduces psychological factors that lead your prospects directly to the price point you want them to choose.

Here are the three main factors:

  1. Optimize Price Points. This is where you pit your prospects’ desires and emotions against logic. (Emotion usually wins.)
  2. Over-Deliver. Here’s where you create one “no brainer” price point that offers a whole lot more value for very little extra expense. Most people will choose this option.
  3. Offer Premium Options. Here’s where you use a high price point to create high perceived value, which can spur sales.

You can use each of these strategies separately in order to boost your conversion rate and/or guide your prospects to a specific option. In some cases, you can even combine these strategies, such as by pitting emotion against logic AND creating a premium option.

You don’t need to take my word for it that these pricing strategies work. All you have to do is start testing these options immediately. I think you’ll be surprised by the results!

 

How To Set Up A Membership Website

The one huge benefit when you create a membership website is receiving a steady income, month in, month out. Even if traffic drops off from your website for a month or two, you still have income from your existing subscribers. Here are the 6 steps to creating a membership website.

1. Know What Your Audience Wants

What you have to do first when you create a membership website is determine if you have an audience that’s willing to pay well for access to your site. If you’re thinking about starting a membership website in a specific niche, but you can’t find other websites in the same niche, that can be a warning sign that the market is too small or that people are not interested.

2. Check Out Your Competitors

When you have a niche in mind, you’ll want to check out other successful membership sites. Knowing what works well in your niche can position your site for success.

3. Build Your Website

You can build a membership website using software like WordPress and a plugin like S2 Membership. This will help to control your costs, particularly when you start out. Use a payment processor that can handle recurring payments, like PayPal, ClickBank, 1ShoppingCart or Authorize.net. Back-end management is the most challenging part when you create a membership website. You can outsource this to membership management software like aMember Professional.

4. Market Your Membership Website

You’ll need a marketing plan for your membership site. You have to continually grow it, bringing in new members in order to grow your income. Drive traffic to your website through SEO, PPC, social media or through various online communities.

5. Offer Something Free In Return For A Prospect’s Email

When a prospect firsts lands on your website, they are unlikely to join your membership website there and then. So you have to give them a taster of level of value that membership to your website provides. Offer something of value for free in exchange for their email address. You could provide an eBook, report or video that will give a good indication of what you get for your membership You can then also follow up that prospect via email, giving them more benefits about joining or providing them with a special introductory joining offer.

6. Continue To Provide Value

Customers will only remain members of your website if you continue to provide value. You can create a membership website ahead of time that drip feeds information to your customers when they sign up. Then you can spend the bulk of your work hours on marketing and promotion

7 Tips to Help You Profit More From Your Online Business

Business owners always want to earn profits. It’s always the goal, no matter how big or small your business is. Earning good profits can be a challenge, but it’s very possible. Just be willing to study the tactics to earn good profits online. With that in mind, here are 7 tips to kickstart your profit-earning from your online business.

1. Give Back to Your Customers

Your customers will surely feel valued if your business has a loyalty or rewards programme. Giving back to your customers builds loyalty with them, and so they will keep on buying and buying your products in the long term. Maybe you can reward your customers every time they buy, say, more than £100 worth of your products. Alternatively, you could give bonuses to customers who refer your business to other people they know.

2. Hold a Christmas / Holiday Term Sale

Holding a sale for holiday seasons like Christmas is one of the best ways to make money online. Don’t worry about selling your products at a discount, because in the end you’ll drive traffic to your site, attract more customers, and make more sales. It’s also a good way to promote your business to others, as people are always attracted to products sold at cheaper prices.

3. Talk to Your Customers (via Chat Room)

Put up a chat room on your website, where your customers can talk to you, ask questions, and voice their concerns. It gives them the chance to get their questions answered immediately. As a result, your clients will feel that your business is always accessible. This way, they will trust your business even more.

4. Be Sociable (in Social Media)

Of course, having an online business means having social media accounts. Get comfortable with Twitter, Facebook, Instagram, Pinterest, and other social networks. Use these tools to market your products. Leverage the power of crowdsourcing: allow your followers to do the advertising for you! Your followers will make your product known through shares, retweets, and reviews on their personal accounts. The further your reach in social media, the more products you’ll sell, and the more money you’ll make. And if you get lucky, next thing you know a celebrity is already endorsing your product through their social media accounts!

5. Welcome Media Exposure

Don’t pass up any opportunity to get interviewed. This way, you can show people your expertise in your field, especially if you’re running a consulting business. Once people know you as someone who is very good at what you do, they will look up to you and trust your business. This will surely build up your customer base quickly.

6. Make Use of Webinars

Webinars are great sources of passive income. Take advantage of this and sell your products online through live webinars, where many people are listening. And if you’re in a webinar with trusted people, just like #5, people will likely trust you as well. Thus, this is another great way to expand the reach of your business.

7. Advertise on Google

You’ll have the whole world as your audience when you run an ad on Google. Nearly everyone uses Google daily, and people use Google more than any other site. Your reach will be massive!

Follow these top 7 tips to boost your earnings from your online business now! You’ll never regret them.

 

6 Simple, But Powerful Ways to Make People See You As an Expert in Online Business

Over 3 billion people are on the internet worldwide, searching for something: the best answers, the best solution, guides, prices, etc.

You work hard every day in front of your computer screen to get their attention. You pay for ads and practice every SEO technique in the book. You spend even more hours promoting your page on the social media. And at last they begin to pay your website a visit.

But when they arrive and see what you have to offer, they are filled with doubt and begin to question your authority and expertise.

Believe it or not, more and more people will judge you based on what appears online about you.

Once you are perceived as an expert online, your value rises instantly. Google takes notice also and begins to honour you with high ranking for your website and profile in their search results.

Your income will also increase as your reputation increases. You will get more clients, people will step over each other to be the first to grab your product and services.

In the midst of the large number of online professionals and sources of information, if you own a website or blog and you seriously care about what impression your audience and potential employers and clients might have about you online, you might want to check out these strategies.

1. Put a spot light on your remarkable milestones and endorsements:

This action automatically stamps a huge mark of endorsement and authenticity on your brand. It dispels doubts instantly and assures them you are up to the task as it regards online businesses and deals.

Just above the fold on his website, Timothy Sykes boldly declares how he turned $12,415 into $4,430,000 Trading Penny Stocks.

Also when people can associate you with a third party name they can trust, even in their dreams, most of the mental barriers stopping them from trusting and accepting you crashes; for example, getting featured on CNN or appearing on New York Times Bestsellers list.

On landing to his homepage, Ramit Sethi immediately tells you, ” Get the best of my New York Times Best seller for free

If these big names have endorsed your quality, achievement and expertise, a stranger will have little resistance to trusting your ability to deliver. But you must work hard in secret to get the attention of these big brands.

2. Be extremely honest:

If you don’t live in a civilized and secure society like America, don’t go online like Pat Flynn, John Dumas and others to tell the world how much gets credited into your bank account monthly. Such extreme show of honesty could be your greatest undoing in such environment.

However, as much as is possible, go the extra mile to show honesty in your dealings. This might not be convenient sometimes, you might be scared that sharing some negative experiences you are not so proud of will lower your reputation. It will actually have the opposite effect. So be honest both when the going is bad and when it is good.

3. Know a lot about a particular thing you are known for and share it free.

Timothy Sykes knows a lot about Trading Penny Stocks, Glen Allsopp knows so much about Viral Marketing. Pat Flynn is the crash test dummy of online businesses.

Know a lot and share the knowledge freely like Ramit Sethi does. He gives out over 90% of his premium course for free.

That’s a great way to give and since givers never lack, guess what you will receive in return among other things… a recognition as an expert.

4. Get a niche and mine it deep like a gold mine.

Be known for something and stick with that identity.

Carter for a particular need of a particular group of people and be so good at solving it that once they think of that need you quickly come to mind.

Rank high in the search engines for a particular keyword in a particular location such that when people type those keywords in the search bar you appear on the first page of Google’s search results.

There is always the temptation to spread your tentacles and offer more, but you are more likely to have success in that if you have an already established reputation than when you have none, and simply want to be so many things to so many people (that doesn’t equate to so much money).

5. Believe in yourself:

“I am not good enough”, “nobody will listen to me”, “my idea sucks”, are all lies that build a wall between you and the life of your dreams. Whatever you believe about yourself becomes true instantly. If you think you can, you definitely can but if you think otherwise, then you are sucked. People will notice such thoughts and respond accordingly.

Embrace your fears and self-doubts and move on. That’s how great men succeed and become experts and authorities in their fields, including online businesses.

6. Fake it until you make it

Emotions are contagious. People respond to social cues. When you are happy, confident and enthusiastic, these feelings rub off on people, to an extent. They just pick up on your demeanor, and consciously or not, adjust their own to be more similar. So by appearing confident and happy like an expert, you are also conditioning other people to associate those emotions with you.

Thank me later for the results. But for now feel free to share your opinion on the comment section.