How To Price Your First ebook

Instructor and students studying a map, Meacham Field, Fort Worth, Tex. (LOC)
Ever wondered what’s the right price for selling an ebook?

This is one of the dilemmas when selling your first ebook or an information product. You want to price it so that tempts customers into hitting the Buy button. But if your price it too low, you reduce the profit margin, whereas if it’s too high customers may look elsewhere. The trick is to know what price your target customers are willing to pay and then develop eBooks that fill their immediate needs.

What’s the Best Price To Sell ebooks?

You need to work backwards. What I mean is that right price is the price that suits your customer. For some, $9.99 is the most they will pay. For others, especially those who have a company credit card and have a larger budget, you can charge several hundred dollars and they will buy – if the product solves an immediate problem.

I’ve learned how to do this mostly from reading Jeremy Shoemaker (aka Shoemoney) and how he leverages Facebook to drive traffic to sales pages.

Here are some more ways to position your ebook.

Try to persuade your customer that their immediate needs are more important that their short-term wants. See how Yaro does it here.

I bet you see this in supermarkets all the time when you add things to your shopping basket that you didn’t really need. But at the time it made sense.

Work on your customers’ emotions, for example, by creating limited editions or a sense of urgency that spurs them into action.

There is a strong urge in humans to have something that others can’t afford, is unique, or hard to find.

Once you understand how these emotional triggers work, you can experiment with different pricing strategies.

How to Price ebooks?

I you forced me… I’d say the best price is between $9.99 and $33.99.

I’ve seen exceptions to this but the best selling ebooks are in this range.

Why?

  • If it’s less that $9.99, it’s seen as low-value and not worth the effort. The subtext in the customer’s mind is that if I do a Google Search, I’ll find a similar product for free.
  • If it’s less $19.99, customers think about buying the product. It has to be something of high value that solves an immediate problem.
  • If it’s around $33.99, then it has to be more valuable that the hardback (if it’s an ebook) and something they can justify to their boss, for example, when they claim it as an expense. Look at how SEOMoz develop a tiered pricing structure.

With this in mind, you need to understand your customers and what triggers them into hitting the Buy button:

  • Sense of urgency – does your product solve their immediate need? If so, you’re in a very strong position.
  • Immediate problem – can they use your product immediately or do they need to take some training, have a qualification, install other software. You need to stress (and stress it repeatedly in different parts of your sales page) that they can use the product the moment they get it. A series of courses sent with advanced email software is another way to do this.
  • Justification to others – assume they have to justify their decision to buy the ebook or digital download. How will they be able to do this with confidence? Put yourself in their shoes and you’ll see why they might be reluctant to buy.

Is there really money in selling ebooks?

This bring us back to the question of whether there is really any money to be made selling ebooks or information products. My philosophy is very simple.

If you build a quality product, understand your target audience, get a trusted ecommerce partner, and have the right tools to sell ebooks online, then it will work.

The mistake is to try to compete against other low-priced products in a crowded market. Look at markets that are under-served and where there is an immediate need for books, tutorials, guides and others information that will resolve problems.

Once you’ve identified this, price is less of an issue. Customers only want to know if you can solve their problem. If you can do this, then you will start to sell products online quite successfully.

Have a question? Drop me a line.

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