Everyone nowadays seems to be lowering their prices more and more. The internet is now full of those $7, crappy, e-books and eBay is packed full of these $0.01 products.

Rubbish! Increase your prices, don’t decrease them!

A lot of consumers are probably mad at me for saying that but seriously, if you’re a product creator, don’t start lowering your prices, increase them. Think about it. If you sell a $7 e-book you only have about $6 to spend on advertising. With that $6 you must make a sale otherwise your losing money. If you sell a $2000 course then you have $1900 to spend. Let’s do some maths.

You spend $1900 on advertising and lets assume that your getting visitors for $0.10 a click. With $19,000 , you get 19,000 visitors. If your sales page converts at just 1%, that’s 190 sales which is $380,000. Obviously that’s a slightly exaggerated example as you may not be able to get visitors for $0.10 a click and it might take you a while, but you can see my point. You should make more than 1 sale by spending $1900 advertising and so even if that’s the most sales you get, it’s still a $100 profit!

IMPORTANT: Don’t get me wrong though. It is extremely important that the quality of your product matches the price tag. So you can’t start selling your $7 e-books for such a high price. All I’m saying is focus on creating products which are worth $2000 (so full of good tactics in the form of e-books, mp3’s, videos, tele-seminars, member blogs, forums etc.) instead of creating more and more silly, little e-books. There’s no point!

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