Next, let’s look at your Sales Target, the number of products you expect (need) to sell.
This is the most variable of our variables and you can play around with it based on your own numbers
Should you offer tiered pricing for your digital goods?
Tier pricing lets you price items differently for higher quantities. For example: you sell expensive cakes and you want to create a promotion where customers who buy three boxes of cakes save money compared to buying just one cake.
You can also offer a bronze, silver, and gold model, which is very effective if you’re selling membership sites or access to online courses.
Let’s say that you’re selling a product which has a standard, regular, and premium offering. For example, AgileWords.com offers this.
Using a tiered pricing system, you can offer customers are entry-level product and then, if they are pleased with this, move them up to the premium offering. However, there are a few areas to be aware of when pricing like this.
- Bronze – most customers will start here. This means you need to develop a way to upsell, ie suggest that the customer should move to the next product, after a certain amount of time. This takes some trial and error to determine when you should make this offer. If you do it too soon, it makes the customer feel uncomfortable as you probably come across as pushy. However, if you leave it too late, they may have unsubscribed or cancelled their subscription. One way to address this is to sign up with competitors and examine how and when they make upsell offers. Create a project folder on your PC and save all their materials in here, including email sales letters. You can use these for inspiration later on.
- Silver – once you have moved the customer to the mid-level product, you have at least two choices. The first is to recommend another ‘partner’ product, something that compliments but doesn’t compete when your product. Let’s say you’re selling a course about learning Latin, then you could recommend some books you’ve found useful, for example, books on grammar. Of course, you can sell them using the Amazon Associates program and make a modest affiliate fee. It all adds up.~
Note: The second option is to begin the process of moving them to the Gold product offering level. One way to ‘warm up’ the customer is to send emails (plain text emails often work the best) including interviews with other Gold level customers. Interviews are very persuasive as it gives the potential customer an opportunity to listen to someone who was probably facing the same issues as themselves. If the interview is structured correctly these fears should reduce the customer’s anxieties.
- Gold – once you have the customer at the Gold level, you have the following options. The first is to make sure they stay as a customer. You don’t want to lose them after all this hard work. So, that means finding ways to engage with them, keep in touch to see if everything is going fine (with no sales agenda), and also trying to learn from them. What do they like most from the product? What could you change? What other types of products should you develop?
Of course, you can also offer other partner products to this customer in time. The skill is to make the offer at the right time and also to keep them engaged. One tactic is to offer special offers or exclusives before they go on public sale. This makes the customer feel privileged to be in the inside track, especially if it’s a significant release.
A final suggestion is to send free, no strings attached, products to your customers as a small Thank You. Of course, you can suggest that they ‘give this a tweet’ to their Twitter friends.