Leading with a Premium Product First

This topic contains 23 replies, has 8 voices, and was last updated by  Yvonne A Jones 6 months, 4 weeks ago.

  • Author
    Posts
  • #44758

    In the past, I used to create lower-priced products/courses and sell them at $27-$97. Then, the market changed and I was selling info in the self-publishing niche for around $10 to $15.

    Fast forward to today, I decided to sell products and coaching in a different niche.
    This time, I created an $800 coaching program first. It’s a 90-day program. Even though I only launched it a few days ago (with a lead-in workshop), I’m already getting ready to start building out a series of $97 products… and then maybe a few cheaper ones.

    I’ve found it much, much easier to work backwards like this. When you’re first getting started, you can find yourself putting hundreds of dollars worth of information into a low priced product. Then, you struggle to create the higher-priced product because you can’t figure out what else to add to it.

    By starting with a premium product, it’s much easier to use the larger outline to create the smaller products. It’s easier in a practical sense and psychologically, it feels more like I’m climbing down a mountain now than climbing up it.

    Hope everyone is doing well!

  • #44776

    My main offering is a premium training at $850, I recently added a $97 group coaching program and I’m now working on lower-priced products.

    Like you, I launch with a free lead-in workshop or training.

    I think we can do this because we already have an audience and we have experience in product creation and delivery.

    Some people just starting out could take this approach, some would find it overwhelming.

    The danger of taking this approach would be to offer a higher priced product without first finding out whether it’s something people want and are willing to pay for… people could find themselves investing a lot of time and effort into something people don’t want to invest in.

    Lynne Lee
    Life Breakthrough Coach Trainer
    Training Christians how to transform their lives from the inside out and equipping them to coach people to breakthrough. You can visit her at www.ChristianLifeCoaching.co.uk

    • #45730

      Yes, the are pros and cons to the approach. I’m finding it easier to find what people want during the course of “regular” conversations with them. By “regular,” I mean – in contrast to taking a formal survey. When I’ve done those, people still didn’t buy what they told me they wanted to buy. Now that I’m more focused on developing a deeper empathy for the people I’m connecting with, I’m finding my product creation process to be more intuitive for me than it’s been in the past.

  • #44858

    Having paid Sean for his product pricing ideas, I am following his suggested outline.

    My initial offering is a 90-page home-study course for $9.95, accompanied by an 80-page free bonus.
    (Huge over-delivery at minimal cost!)

    My first upsell is another 90-page home-study course at $37

    My second upsell is a year-long home-study course, consisting of 60 modules, one of which will be delivered each week, at a one-off cost of $297
    However, I might offer the modules individually at $9.95 each, because they can stand-alone – but maximum benefit will be derived by studying one module each week for a year.

    Coaching will be available at $297 each month.

    I expect to be uploading all of this into the new Coach Builder platform before the end of this week.
    If the platform is still not ready, I shall have to go with my own websites, which will be more than disappointing!!

    with all good wishes
    Robert Mason
    Free Spirits Coach

    • #45738

      I like that approach, Robert. What are you selling? Is the information at the different price points basically the same but with more depth as the prices goes higher? Or do you touch on subjects in your more expensive products that you don’t talk about in the basic $9.95 product?

  • #45177

    By starting with a premium product, it’s much easier to use the larger outline to create the smaller products. It’s easier in a practical sense and psychologically, it feels more like I’m climbing down a mountain now than climbing up it.

    Jim, as far as planning goes, I think it is easier to imagine what would be the ultimate product with everything included, then deduct some things for a lesser product and so on.

    Carol

    Helping you share your story through technology.

  • #45205

    Carol,

    I agree with your view of creating the best and then branching off with teaser products at a lower price. My top product is a book, which is still in the works but moving along. It ties in with my coaching focus on niche marketing for young seniors. The more I work on these two–the more I keep coming up with side things that can be included in my coaching program and also sold separately. I loved your webinar today. Thank you so much. It was really helpful and so professional.

    Sincerely,
    ShariLee

  • #45745

    Yes, that’s exactly how I’ve approached it.

  • #45806

    I like the way everyone is talking about this. I’ll just add my two cents. When people buy your products, I think we are dealing with beginners in that niche or goal to achieve. So, by writing your products and focusing on communicating at an eighth grade level (like the everyday newspaper does) it will make products easier to sell.

    It does seem to be true that your program needs to talk to a beginner in your niche and build upon knowledge from there. Has anyone else seen this pattern?

    Beverly

  • #45827

    Hi Jim and everybody

    My initial offering is huge content at a very low price.

    However, that initial offering is what is so very important – if people bought nothing more, they would still have the most important training – the golden nugget of living a fulfilled and satisfying life.

    My first upsell takes people further in a particular direction, building on the initial offering.

    My second upsell, which is a huge program, takes people on a detailed inspection of many different aspects of their life, one aspect each week.

    But, it is the initial offering which is the essential practical solution to transforming lives.
    Upsells one and two add hugely to the bigger picture, to the wider perspective.

    But it is the initial low-cost offering that is by far the most important element of my teaching.

    I have been given the task of transforming the lives of one million people.
    Money is not the objective – but when I achieve my life purpose, money will flow like an unstoppable river.

    That is my unspoken contract with universal spirit.

    with all good wishes
    Robert Mason
    Free Spirits Coach

    • #45898

      Robert,

      Please know that the following questions are from a customer perspective (which may or may not be appreciated) and also from concern…

      1. My first reaction to seeing your model was to ask why someone would buy a 90 page book with a bonus 80 page book for $9.95 and then buy another 90 page book for $37. The two do not compute for me.

      2. If your highest-valued product in terms of results is the lowest-priced, what will there be to compel people to buy more of your products that will get them a smaller return (assuming my understanding is correct)?

      If my understanding is incorrect, then I will urge you to make your copy crystal clear about the benefits of all your offers. They say a confused mind doesn’t buy, and this has been borne out again and again in marketing. Right now I am very confused.

      This, BTW, isn’t to try to make you change your offerings. I am truly trying to understand. From a customer/prospect perspective (with albeit very little information on what you’re offering), because I try to approach all marketing from that very perspective, I want to be clear on your offers. Hopefully some part of this is helpful to you, and if not, I apologize.

  • #45940

    Suzanne,

    I really like approaching all products from the customer point of view as opposed to writing what “we think” the customer “might” want. By walking in their shoes during the creation process–we have a much better chance of producing products that sell because they speak to the customer.

    Thanks for the valuable insight.

    Sincerely,
    ShariLee

  • #45980

    You’re welcome, ShariLee. I’m often unpopular in IM circles because I speak like this, so it’s nice to know it is appreciated somewhere. 😉

  • #46022

    Years ago Sean taught a model I can only think of now as a Top/Down model. Basically, it was to create a high-end product, perhaps a coaching program and put that on your website, $5-10K.

    Even if no one purchased it, it positions you as someone who has something to offer at a high value.

    Then you take portions from that high-end and create another level down, and do the same for perhaps two more levels. You’re seen as as an expert of sorts and it elevates you in the eyes of your market.

    It’s easier to go top to down than down to up. I really liked that model.

    What I now view with curiosity is that many top named marketers who used to have very expensive offers (and they still do) are using low-end offers to attract new customers and clients. Yes, It may be a loss leader. However, I’m curious to know why they’re using this method. Is it that people are more resistant to purchasing high-end products right off the bat? Any thoughts?

    Helping highly motivated entrepreneurs & professional women 50 and Wiser who are frustrated with their results get inspired, motivated, and empowered to create the business they LOVE and have FUN doing so.
    www.50andWiserCoaching.com
    To be successful you must have passion for what you do. But is it enough? Claim your copy of "Fifty and Wiser: 5 Common Reasons 'Passion to Profit' Businesses Fail and What do Do Instead" www.50andWiserCoaching.com/commonreasons/

    • #46052

      I think there will always be three buying tiers. Low, medium and high. Some people will never buy a premium training. Others don’t want cheap products because they view them as low value. Others always seem to buy in the middle. I think about my own buying habits. I own an Android Phone and would never consider buying an iPhone. To me they’re overpriced. Some people won’t spend $20 for a book for the same reason, but they’ll drop $100 on dinner. When you have products with all the different prices ranges, you can attract buyers all along the scale. That’s another way to look at it.

      With the top named marketers, you have to wonder how many of them have burned out their lists at this point? I used to be on many of their lists, but their appeal to me personally has run its course over the years. Maybe they’re struggling to bring in “new blood?”

    • #46328

      Jim,

      It’s a strong possibility that they’ve burned their lists. I hope it’s really a little
      more heart-centered than that. My hope is that they realize that for years they have
      ignored the people who could not afford their expensive courses. At the same time, I’m
      not naive enough to believe they’ve had a change of heart en masse.

      More Of us need to copy those strategies though because they work. Give you an example:

      I purchased a physical book recently for $6.00 that promised me great information. There
      was an upsell for $20. Not bad, right. There was another upsell which I ignored.

      On the $20 products (which came in the mail) there were four opportunities to make additional
      purchases. Within a few weeks you could easily spend almost $500 if you accepted the upsell offers,
      but because they’re spread out over a longer time you don’t notice it as if it were presented as a one
      time $497 offer.

      Sean has always encouraged us to watch what other marketers are doing. Thoughts?

      Yvonne

      Helping highly motivated entrepreneurs & professional women 50 and Wiser who are frustrated with their results get inspired, motivated, and empowered to create the business they LOVE and have FUN doing so.
      www.50andWiserCoaching.com
      To be successful you must have passion for what you do. But is it enough? Claim your copy of "Fifty and Wiser: 5 Common Reasons 'Passion to Profit' Businesses Fail and What do Do Instead" www.50andWiserCoaching.com/commonreasons/

    • #46332

      I like the idea of spreading certain things out over time. When I launched my $800+ training last week, I knew my first group of buyers would be the kind of people ready to take immediate action. They’ll also help me fill in some of the blanks along the way. By “blanks,” I’m talking about some of the specific issues they’re facing that may have not been fully addressed in the initial training. Working with the group will provide me with some great source material for bonuses, upgrades and/or additional products.

      The key is the coaching, though. All roads lead to it with my approach because without the support and interaction, people seem to fall by the wayside regardless of whether they’ve purchased low or high end products.

      Having someone there to answer a few questions really makes a huge difference when you’re trying to do something for the very first time.

  • #46131

    Yvonne, I think Sean called it his Reverse Funnel – I have his training course somewhere in one of many ring binders of Sean’s teachings!!

    I wonder if the reverse funnel is more acceptable in the ‘make money’ business, which IM is generally about, whereas the upwards (increasing value) funnel is more appropriate in the life-enhancing business.

    People who desire to make money are likely to be more open to a higher financial investment up front – whereas people who are less materialistic and perceive different values in life might prefer to start off more gently.

    Just a thought!

    with all good wishes
    Robert Mason
    Free Spirits Coach

    • #46326

      Robert,

      Exactly – the Reverse Funnel. Like you, I have lots of notes on that topic. It was
      great to find those notes as they serve as a reminder that each product, say the $10
      and the upsell should not only be connected to each other, but must also be connected
      to our ultimate objective/goal/vision as a whole.

      Thanks,
      Yvonne

      Helping highly motivated entrepreneurs & professional women 50 and Wiser who are frustrated with their results get inspired, motivated, and empowered to create the business they LOVE and have FUN doing so.
      www.50andWiserCoaching.com
      To be successful you must have passion for what you do. But is it enough? Claim your copy of "Fifty and Wiser: 5 Common Reasons 'Passion to Profit' Businesses Fail and What do Do Instead" www.50andWiserCoaching.com/commonreasons/

    • #46333

      Good conversation. You can see why everything needs to be connected, whether you go from high to low, or low to high.
      That way, each piece relates to another and everything works within the same context or framework.
      This is what you don’t see with many of the gurus.
      One day they’re talking about making videos. The next, selling webinars. The next, buying SEO software.
      Sure, it’s all online business, but the offers are loosely connected at best. There isn’t a clear path. It’s like opening a storage container with odds and ends. They just jump from thing to thing, and then show bank deposit graphics.

    • #46336

      That’s the truth, Jim.

      This is why I like to use a MindMap to see what the ultimate
      goal or place I want to lead people to and have the pieces/
      products (if only an idea at the moment). Keeps me focused.

      Have a good evening!

      Helping highly motivated entrepreneurs & professional women 50 and Wiser who are frustrated with their results get inspired, motivated, and empowered to create the business they LOVE and have FUN doing so.
      www.50andWiserCoaching.com
      To be successful you must have passion for what you do. But is it enough? Claim your copy of "Fifty and Wiser: 5 Common Reasons 'Passion to Profit' Businesses Fail and What do Do Instead" www.50andWiserCoaching.com/commonreasons/

  • #46194

    Suzanne

    Thank you for your comments.

    I am treating this place as a discussion forum, not as a marketing forum with sales pitches.

    I was simply trying to describe what I am doing. I know it is different from what more sales-oriented members might be doing.

    I tried, unsuccessfully, to describe how I am working to change the lives of one million people, which is what I am here to achieve.

    Money is important, but it is not my priority. I know that the money will come when I focus on changing so many lives.

    My initial offering is what is important – the core message. The upsells are there to help people who wish to widen or deepen their awareness and understanding.

    Thank you again for your contribution. It is very healthy to have contrasting views on a discussion forum.

    with all good wishes
    Robert Mason
    Free Spirits Coach

    • #46322

      Robert,

      I’m sorry if you thought I was asking you to promote your offer. I’m not really sure how I communicated that in what I was asking, but nevertheless if that was what you took from my questions then I am sorry that is what you got from it.

      I was merely trying to understand your offer structure, and to suggest that when you are writing your sales pages or having someone write them for you, that you communicate very clearly what exactly your main offer and upsells are. As one who writes copy, I can tell you that your prospective buyer must be clear on the offer or chances are they will click away.

      Obviously the discourse wasn’t helpful to you, so I will leave it here.

      As for your comment to Yvonne about IM vs non-IM products, most IM products start off small and have increasingly larger upsells, including continuity offers. They do so to make more money, and to engage more affiliates, often offering 100% commissions for loser-priced products in the $7-$9.95 range and then lowering commissions as they move up the ladder in price.

      The folks who are more lifestyle-oriented actually have higher-priced programs, and hardly ever offer low-priced products unless they are using it as a loss leader or a way to generate a buyers list, to which they will market their higher-priced programs. I think if you do some research you will see this in play. I think you may actually have the opposite perception of how the IM and non-IM marketers work.

      All the best with your offers and your marketing!

    • #46329

      Suzanne,

      You made some excellent observations regarding the price point differences between IM and non-IM niches.

      It’s interesting how they work. My thought as to why the IM side has more of expectation to lower prices
      is that many people who are in the MMO nice fool themselves into thinking that the information is readily
      available all over the internet so they should not have to spend a lot to get started. Totally wrong concept,
      of course, as we know.

      On the other hand, people who are seeking help in non-IM niches seem to expect more specialized assistance,
      and they’re generally correct. This is one of the reasons I believe coaching has earned a ‘bad name’ in
      recent times. People are expecting value and transformation from coaches and many complain they’re not
      receiving it. This makes it harder for the rest of us.

      So anyway, that’s my one or two cents on the topic.

      Yvonne

      Helping highly motivated entrepreneurs & professional women 50 and Wiser who are frustrated with their results get inspired, motivated, and empowered to create the business they LOVE and have FUN doing so.
      www.50andWiserCoaching.com
      To be successful you must have passion for what you do. But is it enough? Claim your copy of "Fifty and Wiser: 5 Common Reasons 'Passion to Profit' Businesses Fail and What do Do Instead" www.50andWiserCoaching.com/commonreasons/

You must be logged in to reply to this topic.