Understanding When Higher Prices Work Better

Get ready to skyrocket your sales with webinars and smart pricing strategies. If you’re using webinars, you’ll love this advanced tip of offering multiple pricing options in the same session. Imagine giving your audience choices like $500,  $1000 and $3000 for the same product. Surprisingly, many choose the higher priced options, we’ll share real life examples like a recent promo, where most sales were for the higher priced products even with cheaper options available. We’ll discuss why this happens and how it can enhance your marketing. Plus, we’ll compare webinars to sales and text sales pages, highlighting when each works best. You’ll also learn about the importance of pre-sell content to warm up your audience, and how conditioning your list can boost sales. So even if you are new to webinars or looking to improve your strategy, this episode is full of insights to help increase your conversions and revenue. Let’s get started.

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I’m Igor Kheifets and this is the List Building Lifestyle. The podcast for anyone who wants to build a wildly profitable email list working from home. If you’d like to make six figures, travel the world and help people improve their lives in the process, this podcast is for you. I also invite you to claim a free copy of my best selling book, the List Building Lifestyle Confessions of an Email Millionaire at igorsbook.com. Get the free book plus $3,000 Bonus packages that includes my best capture page templates, email swipe files, and traffic blueprints. Visit www.igorsbook.com for details. And now it’s time to claim your list building lifestyle.

1:49  

One of the reasons why I really love webinars is definitely because you can present a higher priced option, then more an advanced tip. If you’re already doing webinars actually, you can present on the same webinar, you can present two or three options of the same product. So you can present one option for $500 and another option for $1,000 and then one more for $3,000. And then people in the webinar will actually decide for themselves what they want to do. I just ran a promotion, given it wasn’t actually a webinar, it was a VSL and the long form sales page but it was under $300. To be fair, where the offer was two fold, one option was I think $200 or $250. And the other one was $297 or $497. So the consumer actually picks and chooses right, now what’s really interesting is that I made like 25 or 30 sales. But the vast majority of the sales were higher priced. This was very surprising to me.

So most people seeing the two options said you know what, I don’t want to take the cheaper option, I’ll opt in for the more expensive option. So when presented with the options, consumers tend to go for the more expensive option, then they can surprise you. Your list, your audience, your followers may surprise you when you just present them with the options. In fact, what’s really interesting is that we have another thing where the options are on a much higher level. So we’re talking like, you know, high four figures, even five figures and double digit five figures. And a couple of weeks ago, I knew we had somebody who was thinking of getting in, and they really wanted the most expensive option. This happens quite a bit. They like, I want the most expensive option to which we say look, because it requires a lot of work. We can only do it only for so many people for a particular time frame. 

And just so what happens that we don’t have it available to you right now. And we say do you want to opt in for the lower priced option? And the consumer says no, if I can’t have the most expensive one, I don’t want it at all. Now think how absurd it is from a marketer’s perspective. You know, it’d be like, hey, I’m offering you this cheaper option, and you’re not taking it. But in the mind of a consumer, you know, some consumers are just like, who have this, I guess ability will not buy a Toyota in spite of Toyota being a great, reliable, amazing car that, you know, doesn’t require a lot of maintenance, can really serve you for many years and be great value for money. They will opt in for a Porsche. But they, you know that it’s all in spite of Porsche costing more money, being more high maintenance, I can tell you from experience, I was just actually listing my Porsche for sale, because as I’m going to be moving to Bulgaria and don’t need it anymore. So I have two of them. And the one that I’m driving is a GTS, I’m listing it for sale, and my mechanic told me hey, why don’t you list it in the ad? Why didn’t you list all the things you got done with like all the parts you replaced in the last 12 months? Just so whoever’s buying it knows that you’ve taken good care of it. 

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And you know, I was crying when I was listing all the parts of the suspension, and you know, hydraulics and the gearbox, oil changes and the filters and the brake pads. By the time I was done listing that thing, I think it was like $15,000 or $20,000 on a car that costs less than 50 grand. And it’s like, why am I even doing this, but when I’m buying the car, I don’t think about it. When I’m buying the car, I’m like, I want a Porsche, I want the GTS, I want the black on black, period. And that’s like, that’s what I’m going for. So in almost any industry, in almost any niche, you’re going to have people like that, who will pay you more money, who will be less likely to reject this idea. 

So webinar campaigns for those reasons, probably my go-to, the second go-to, especially for products and services under $300 that’s going to be a VSL- video sales letter, you guys see me do those a lot. And the reason being is that something about delivering my message, using audio, text, and video at the same time, just somehow converts better for me. So some people want to listen, some people want to watch, some people want to read, it just seems to work. Again, especially for prices under $300. That’s 100% you know, what the media should be using, if it’s anything under 100 bucks, I think it is just a plain text sales page, no video necessary. Just kind of listing here’s what this is, here’s what this is, who this is for, here’s what it’s going to do for you, here’s the outcome you’re going to get, and here’s how to order. That’s it, that’s all you need. 

It just really comes down to that because under $100, the price is just too low for people to really sit there. And really think about it, it’s more of what I would call an impulse buy, meaning that the consequences of buying the wrong thing in this case are not great. Less than 100 bucks, no matter what your income is, is not a lot of money, we all know that the $100 is no longer unfortunately, it’s no longer a lot of money. So the plain old tech sales page is good. Now when it comes to increasing conversions on any of these, by the way, now the strategy I teach is to also have some kind of a pre-sell content, really warming them up towards it. In fact, I was just speaking to a joint venture partner of mine, who ran eFarming last year. And he did like almost 200 units. So that’s pretty crazy. But so this guy ran it again last week. And he basically usually runs them with some kind of pre-sell content for like a week before the actual sales presentation. This time, he just mailed directly to the sales presentation. And compared to his usual results, the results were really low. So I think he actually ended up conditioning his list to always have some pre-sell content, some kind of video, educational or interview whatever, before actually sending people to a presentation. This is really interesting because while I can sit here and tell you that webinars are the best. It actually does come down to what your list is conditioned to receive from you and how your list is conditioned to make decisions.

8:16  

Because for some people, you know, some JV partners, I had them email the webinar campaign, which I know works. I mean, at this point, I ran it so many times I know it’s like bulletproof. Okay, like I know that the sun rises in the east, sets in the west, and that this webinar campaign is an absolute killer, but they didn’t do well. So I used to think, oh, that means they got a crappy list. But I actually started kind of brainstorming about how do people get under lists? Like what are they usually mailed? 

Do they ever do well for other people, for other offers, and being that I’m very active in the JV space in our community, I asked around and I know that sometimes these people do well, like, I’ll be talking to somebody, it’ll be like, oh, yeah, last week, this and this promoted me and they did this much in sales. I was like, really? That’s like 15 times more than they did for me. What do they promote? And so I look into the offer. And so eventually, I realized that some offer types work better for some lists, some campaign types work better with some audiences. And so now instead of just having a webinar campaign, I’ll have a CPL campaign, and I’ll have a VSL campaign. So depending on what that list does better with how I’ll have the JV partner mail that. 

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Thank you for listening to the list building lifestyle, get access to the previous episodes transcript of today’s show, as well as other exclusive content at listbuildinglifestyleshow.com. Also remember to claim your free copy of my best selling book at www.igorsbook.com. It explains how I made millions with list building starting from scratch. Plus, I’ll give you $3,000 worth of free bonuses, including my best landing page templates, email swipe files, and traffic blueprints. Go to www.igorsbook.com now to claim your free package.