| High Priced Selling - Why You Should Sell Your Product For More, Not Less Part I |
|
How many of you have experience with a $5,000 product? If we were to look at some conversion rates on a $5,000 product, let's take a guess at a conversion rate on a $5,000 product, and there's going to be one caveat I'm going to put in there, and that is you generally don't sell a $5,000 product from a one-time sales page. When we're thinking of a conversion rate on a higher ticket product like this, we're really thinking of a conversion rate on kind of a per subscriber base.
How many of you have experience with a $5,000 product? If we were to look at some conversion rates on a $5,000 product, let's take a guess at a conversion rate on a $5,000 product, and there's going to be one caveat I'm going to put in there, and that is you generally don't sell a $5,000 product from a one-time sales page. When we're thinking of a conversion rate on a higher ticket product like this, we're really thinking of a conversion rate on kind of a per subscriber base. Really, when we look at that $500 product, that 0.5% to 1% is probably closer to a subscriber conversion rate or a unique visitor conversion rate. We're not just looking at all kinds of random visitors to that web page. What kind of conversion rate do you think you might be able to expect, given all of these other numbers are in line, on a $5,000 product? Caller: 5%? Sean: Ok, any other guesses here? Caller: 0.1% Sean: 0.1%, ok. Any other guesses? What I'm going to do with this one - we've got one guess at 0.1%, we've got another guess at 5%. My personal experience is right in the neighborhood of 1%. Obviously if you're in the camp that thinks it's 0.1% I'm giving you a number that's probably really really high, and I'm to work through some numbers here in a second on that. I'm also going to show you what would happen at 0.1% and it will still be a very nice number. I could use 0.1% in this demonstration and it would be a perfectly fine number. I'm probably not going to use 5%, although I will agree that in highly targeted, very nicely built relationships I think it could go as high as 5%. I want to go back to the beginning. We've kind of created this grid. The way I've drawn it, I had my numbers in a line - 50, 100, right on down. The second line I've written down the percentages that we talked about in these ranges. In this third column, above the column - so if we're thinking of this as a spreadsheet - above the column write 1,000 visitors. |
