I was reading a blog post this week which talked about earning big bucks and what you had to do to achieve it. Essentially the blogger was arguing that you’re never going to make $1million selling $7 ebooks. If you want a larger income, sell more expensive products.
Well, yeah. Obvious really. But then I started thinking about it, and decided that actually there’s more to it than that.
If you want to be a millionaire, you’re more than likely going to need to sell some high ticket items. But if you’re just looking to earn a decent living, rather than the odd trickle here and there, knowing your market and working smarter could also do the trick.
You see revenue’s not only a product of what you’re selling, but how you’re selling it.
Take Amazon. Many “gurus” tell you not to bother promoting anything selling for less than $100, because at 4% commission it’s just not worth it. But what many people don’t realise is that the commission rate often increases with the more items you sell.
So, if I sell £1,000 watch, which may take a fair bit of marketing, I earn £40 commission. But if, in the same month, I also sell six £5 books, which could be quite easy, my commission rate jumps to 6%. So now I’m paid £60 for selling the watch, plus of course the “worthless” commission on the books.
Likewise, if I can increase my conversion rate for any given product I’ll increase my revenue, even though the price hasn’t changed. I’ve just tested a squeeze page and got 100% more optins from the page with the yellow button than the one with the blue button. No kidding. Must be the same for sales pages as well?
I could also increase revenue by providing more purchasing options. So, for example, my £297 product may be out of the reach of many, but by also offering the option of three £99 payments, I may well get more takers.
And here’s another thing, it costs you just as much to get someone to a sales page with one payment option as it does to get them to a sales page with alternative payment options.
And it costs just as much to get 100 prospects to your sales page and convert 4% to customers, as it does to convert 8% to customers.
So while your revenue’s increasing, your costs remain the same.
More bucks in the bank…
Work smarter, not harder.
Over To You: Are you struggling to earn decent money, but only putting out low ticket items? Selling a product but not including an OTO? Or maybe you’re a successful marketer and can add a few more tips to the discussion? Either way, I love to hear from you.