Change Your Pricing – How Internet Marketers Don’t Get It

So, Chris Brogan ( twitted about Seth Godin’s post on Pricing. Funny how this post came to be.

What can an internet marketer apply to pricing? How can you benefit from product pricing, if you’re just promoting somebody else’s product? There’s nothing you can do, right?


In marketing 101, you learn the 4 Ps of Marketing: Product, Pricing, Placement, Promotion. They represent basic concepts applicable to any product/service, and the 4Ps are ALL the tools you need for a successful campaign.

When promoting affiliate products, or your own product, online, pricing will determine: Target Market & Cost of Advertisement

Target Market

When considering the Placement part of your campaign, you determine the niche that would benefit from the most from your product. Pricing, however, determines who within that market will be attracted to your product, and when.

A lower price product guarantees an entry level approach, as it satisfies newcomers looking for general information, for a new experience, or that are willing to “try it out”; in internet marketing, products in this category are successfully used to start a relationship with your market. Notice I said “start” – due to its perceived value, lower price products require a much smaller decision-making process, less market research, and do not require much of a commitment from the buyer.

When marketing a higher price product, however, your market becomes much narrower, as it requires more research from your buyers, who’ll want to see customer reviews, check the competition, and educate themselves on the subject. Their decision-making process will take longer, and possibly involve a third-party. Their commitment is much greater, generates calls to your customer centers, and the perceived value of your product elevates their expectations.

Obviously, a $27 e-book sells differently than a $150 paperback book, no matter which subject. That is because of the perceived value of a $150 book; the experience provided by a book of higher value is expected to be of a much greater impact, have better quality material, and offer original content.

Advertisement Costs

When marketing lower-ticket items, a wider approach on your marketing campaigns is encouraged, as you’re expanding your presence to new customers. It is acceptable to use institutional campaigns to push that entry-level item, securing your visibility and brand equity. Such approach is advised with extreme caution, as tracking your ROI can be quite difficult (see this post)

For higher-ticket items, however, a specific, personalized, “sniper” campaign is the most effective. Your budget should focus on promoting within your customer-base, taking advantage of buyers who purchased your entry-level item, educating them to realize how they would benefit immensely from a premium/advanced/unique product. Direct-response campaigns, community building, educated support center and bonus prizes are examples of customized efforts your customers expect based on the perceived value of your product.

Next time you’re on Clickbank picking your next product-to-be, think about what marketing actions are you in position to make: are you building a list? go with lower ticket items, and blast your campaign throughout your niche. Have a huge list, evangelical customers? Grab a higher priced item, and personalize your campaign to those customers.

Pricing is key for personalization.

Leave a Reply