Putting a value on your information product can be a tricky business and it largely depends what you are using it for. Many internet marketers choose to give away information products in exchange for customer details to add to their list, or as a bonus for subscribing to their membership site.
If you’re not going to give it away then you need to set a price. Price it too high and people won’t want to buy it. Too low and it is deemed unworthy. So what is the right answer? Here are 4 ways to determine the price of your product.
1-What is your product’s perceived value?
The perceived value of your information product will depend on two combined factors:
- The amount of unique information rich content
- The additional revenue streams you have included
The perceived value of your information product will be quite low if you have very little original content, and you have lots of additional revenue streams such as affiliate links and upsells throughout the product. The perceived value will be higher if you have a large amount of well researched original content, and you are not relying on affiliate programs or further sales to make a profit. Of course, your product will probably not fit neatly into one of these two categories, but will sit somewhere in between.
2-Check out the prices for similar products
If you are setting up an online business, you will probably have a good idea who your competitors are and what they are doing. Make a list of those that are selling e-books or other information products and find out what they are charging. It is particularly useful to check out your competitors that are using AdSense or AdWords advertising. You can be fairly sure that they are making sales if they can afford to pay for advertising.
Once you have discovered what information products in your field are selling for, you can establish a range within which your products should be priced. If there are similar products to yours on sale for $67, there is no point in pricing yours at $27. It will be seen as inferior by your customers and is unlikely to sell very well.
3-Choose your “magic number”
We all know that the number nine is crucial in offline sales. As rational people we are all aware that $69.99 is not actually cheaper than $70, but we are more likely to buy something with the first price as somehow it seems less extravagant. Well online the magic number is seven. Products priced at $37 or $67 will often sell better than products priced at $39 or $69.
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