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When the penny drops (… how much should you charge?)

It’s funny how lots of key concepts and fundamental
skills take a while to ‘sink in’ and make sense.

During the daytime I teach martial arts to both
adults and kids.

Quite often I explain something to an adult but don’t
really expect them to ‘really get it’. Occasionally
I meet a bright spark who can connect the dots instantly.

Have to confess… my success has always been based
on persistance and consistency.

As the saying goes:

Hard work beats talent when talent refuses to work hard

The other day I came across a question asking about
pricing and how much is the right amount.

How long is a piece of string? Depends, right?

This is where the penny dropped…

If your game plan is to use affiliates then you have
to see the world as they see it.

Now the small fry will say “I only promote products
that make me over $10 a sale” or something like that.

The BIG affiliates, the one’s you really want on-board
look at how much they will earn PER CLICK.

Serious affiliates look at the bigger picture, it’s
why lots of bigger affiliate networks show the earnings
per click (EPC).

Imagine an affiliate sends 100 clicks to a product
that pays them $10 per sale and converts at 5%.

The affiliate makes $50 from that email or 50 cents per click.

Now imagine the affiliate sends 100 clicks to a product
that pays them $5 per sale and converts at 15%.

The affiliate makes $75 or 75 cents per click.

Back to pricing…

You want to recruit the best affiliates and the serious
ones look at Earning Per Click.

If you can see the bigger picture you realize it’s
less about how much your product pays and the commission
you give away.

It’s a combination of price and conversions so you can
get the highest EPC and recruit the best affiliates.

Classic 80:20 rule where you now attract the 20% of affiliates
who do 80% of the selling. Happy days and hoards of
traffic.

Last example, I promise…

Using the Warrior Special Offers Forum, which do you think
is the easiest to create?

  • The 10 dollar offer than converts at 10%
  • The 5 dollar offer that coverts at 20%
  • The 20 offer that converts at 5%

They all work out at $1 earnings per click. Good enough
to please a lot of affiliates but which do you think
YOU can achieve.

And which will benefit you the most?

I’m going to shut up there, let you ponder, crunch the
numbers and weigh up the other factors…

… like which would add the most buyers to your list?

Bottomline, when it comes to working out the ‘best
price the only true answer is ‘it depends‘.

On whether you trying to attract the best affiliates,
make the most money or build the biggest buyers list
possible.

All of which depends on where your business is at right now.

Food for thought? Comment below, let me know your
thoughts… even if you disagree!

Take care,

Alan

P.S. If there’s one guy who talks numbers and sales
funnels more than anyone, it’s cRaZy Marlon

A good guy to listen to if you’re into Old Skool fundamentals and marketing 101.

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