Locate the Pricing Sweet Spot : 2 Tips that Max Profits AND Boost Subscriber Numbers What’s the perfect price to maximize member registrations? I’m talking about the price at which you have the best conversions and the highest profitability. How do you find that sweet spot? The short answer is, the price doesn’t matter anywhere near as much as you think – at least it doesn’t if you follow what I’m about to share. Let me explain… In the beginning, It takes a willingness to test and try different price points. HOWEVER… You CAN mess this up. And that’s why it’s important to follow these best practices for pricing. It’s easiest to explain by using a real-life example. So, let’s take a look at Karen’s question and then I’ll break down how to approach the mystery of membership pricing. Karen asked, “Hey Stu, I opened my membership at $27 a month for founding members, and then raised it to $47. I’m doing a launch now, and I’m trying to decide if I should go up to $67 or $79. One pro told me I should be charging $297 for my program, but I don’t want to cut anyone out due to price. Can I get your advice? I feel like it’s worth more than I’m charging.” – Well, Karen, my friend, you are not alone with your pricing dilemma. So where do you start? Well, the first pricing lesson is: Start low and incrementally raise your prices Up to this point, Karen has nailed it. She started at $27. Then went to $47. Now, she is contemplating going up to $67 or $79. Before I tell you what I think she should do, what do you think? $67 or $79? My advice is to go to $67. Then you can go up from there. Why not make the jump all the way up to $79? It’s always easier to raise your price than reduce it. And going up to $79 is a pretty big jump from $47. And whenever you increase the price, you want to gauge the market to see how your audience is reacting (and buying). Because here’s the thing… You never want to go too high and then be forced to reduce your price. That stinks! Think about it… Everybody who paid the higher price is now going to feel like a schmuck because they paid the higher price. You may even have some people come back and ask for a refund for the difference. It’s a support nightmare. But, if you start low, and you raise your price high, guess what? All of your early adopters, feel like they got a good deal. Instead of complaining, they’ll be singing your praises. It’s a subtle difference. But it’s MASSIVE when it comes to the buying experience of your clients and customers. All it takes is the decision on your end to start low and go high, which Karen has done, and I want to commend her for that. The key is to be patient with each increase. BTW – If you have a membership site, lock your early members in at the lower price. The “grandfathered pricing” is an AWESOME retention strategy… because people don’t like letting go of a good deal 🙂 Ok, so here’s where I throw you a curveball. You ready? After a while, your price should become somewhat irrelevant. Whaaaaaattt? I know…. you’re thinking “Stu’s has hit his head one too many times”. Let me explain… Remember when Karen said she felt like it was “worth more than I’m charging”? Whenever we are creating our own products and programs, it’s almost inevitable that we feel like it is worth more than what we’re charging. Why? Because we know all the hard blood, sweat, and tears that go into creating and producing that program, right? But here’s what I want you to remember… People get the real value when they get results The truth is, the real value comes from the results that you’re able to help people get. For example, let’s pretend you gave me $100 and in exchange, I share with you a bunch of proven marketing strategies to help you maximize sales. And after applying those ideas, you get a return of $500 – which can be directly connected back to those ideas. What’s the true value from this exchange? It’s at least $400 right? ($500-$100). And some would say $500. But you could even make an argument that the value is even greater than both of those combined because now you have the knowledge to produce the same result over and over again. So the “return” continues long after the initial $500 gain. It’s like the gift that keeps on giving 🙂 That’s the real value. And that’s what makes the initial $100 feel almost insignificant. That’s why the $1,997 we charge for our TRIBE membership training course is a no brainer. When you compare it to the results that so many of our clients get with their membership, purchasing TRIBE becomes an easy decision. The majority of people who follow what we teach make the investment back within the first month of when their membership launches (we’ve even got examples of people generating 14X their initial investment within the first month). And the cool part is, because a membership site is recurring, that’s just the return on “month 1”. The real value begins to compound when you factor in the revenue from their membership each month thereafter. So the value calculation is pretty simple… Give me $1,997 and get that back (and likely more) after the first month of launching your membership site. It’s a no brainer. DISCLAIMER: Results will vary. Not everyone will get a return because not every does the work. Just because you bought it doesn’t mean that magic happens. You still have to implement 🙂 Here’s the key… The real (no brainer) value only comes if someone gets a result with what you provide. Let me say that again… The real (no brainer) value only comes if someone gets a result with what you provide. But the HUGE upside for you is that the more results you produce, the more valuable what you’re sharing becomes – and the easier it is to sell. This whole approach is something I call “The Circle of Awesomeness” and it looks like this: So the second lesson of pricing is: Help people get results, and your price almost becomes irrelevant We may always feel like what we are producing is worth a lot more, but I always like starting low and then I raise my prices over time. Then just stay hyper-focused on helping people get results. If your products, services or trainings produce the results people are after, it won’t be long before you’ll be able to quickly raise your prices (and will likely be able to exceed the initial price points you envisioned). And then selling at the higher price point becomes almost effortless. To price your site for maximum subscribers Start pricing on the low end and incrementally raise it higher over time. Smaller increments are better. Help your clients get results. The more results you get, the more you can raise your prices. Do you have a question that you need answered? I’d love to help you with that. Please be sure and leave your question in the comments below.
