- by Rory Ramsden
It’s not the value that you put on your offer that matters. What does is the perceived value that your potential customers see in it. Ultimately, the more relevant and supporting resources you bundle into your offer the higher it’s perceived value. But there is another equally important factor that is rarely mentioned in this context.
Before I go into that, lets take a look at what Dan Ariely – Professor of Psychology and Behavioral Economics –wrote on the subject in this book Predictably Irrational, there is a fundamental economic truth: most people need to see a product in context to get a sense of its value.
Context is synonymous with positioning
First you have to position your offer in the market place so that it will gain the maximum traction in the least possible time. And second you have to position yourself as the expert authority in your micro-niche.
Doing a product launch without being able to communicate a core concept that sets you apart from your competition will make your life very difficult. Your offer has to disrupt the status quote through the introduction of a new and innovative concept. Positioning yourself on the cutting edge will attracted the early adopters who will help you influence the rest of the market.
It is these early adopters who have to see you as a credible authority before they will buy your product. You may be an expert and seen as such by your peer group but if your target audience don’t know who you really are, there is no way in the world they will value your advice and therefore will not pay a dime for your offer however good it may appear.
Positioning yourself as the authority adds value to your offer
Building your personal brand so that you are liked, trusted and respected is key to being able to charge top dollar and have your customers thank you for the opportunity to doing business with you. Here is the 7 step process that will help you get your offer and yourself launch ready
Step #1: Discover a hungry market with a proven desire to pay for your solution
You may be an expert in your field so think you can just develop a product and people will buy it. Sadly that is not the case. You have to apply your expertise to provide a solution that a small part of your overall market is prepared to pay top dollar for. The more you focus your product the more people will be prepared to pay for it.
For evidence, just look at the professions – law and medicine – which continue to splinter into ever smaller pieces with practioners in each able to charge more because they are specialists and therefore are recognized authorities. Bringing a new and innovative solution to an old problem is perhaps the easiest way in. Think what the Ipod did to the Sony Walkman
Step #2: Core Concept
This is the one key benefit that your product or service brings to the market that no-one else does. Be careful when you choose yours because this is what you are asking your prospects to pay for above all else.
Step #3: Slice & Dice
Deliver your digital product is many different ways. Some of your people may prefer to read. Others may learn better by looking at video. Others still may not have time to do either of these so will prefer to consume your product by listening to MP3s. Make it as easy as possible for as many of your prospects to consume your product and you will make more sales.
Plus… the perceived value will be higher especially if you bundle it with a series of check lists, work books, resource guides and transcripts of expert interviews.
Step #4: Create a Crushing Offer
Your offer is a lot more than the features, advantages and benefits included in your product. You have to remove the risk that your people run in buying. You have to offer a guarantee. You have to offer choice in payment methods. Some may want to pay in full right there and then. Others may feel more comfortable paying over a several months.
Offering a multi-pay option will boost your conversions by up to 5 times. The bottom line is that you have to make it as easy as possible for people to buy from you
Step #5: Test different pricing points
Testing different price points is a science that Dan Ariely refers to in his book as ‘Decoy Pricing’. The gist of the technique is to make two offers very similar and a third very different.
He quotes an instance where the Economist made three offers
- Internet Subscription only $59
- Print only Subscription only $125
- Print and Internet Subscription together $125
Testing showed that 84% bought the combined offer and 16% took the internet only subscription with zero people buying just the print only option
Test your offers using this strategy and you’ll quickly come up with the combination that will boost your ROI to the max.
Step #6: Create Your Core Myth
People love a good story. After all that is what having a good gossip is all about. A well told story engages your audience. It tells them why you are doing your product launch. You can embed the powerful tips you discovered on the way to creating your finished product. You can invite them to try these tips for themselves and prove they work for them too. This builds excitement and anticipation.
Your core myth is the glue that will hold all the different parts of your product launch together. It is a parable and an essential part of any product launch
Step #7: Provide Proof
No product launch will position you as the expert authority in your niche unless you can provide layer upon layer of proof. Proof that you are who you say you are. Proof that you can teach your new customers. Proof that people worse off than your prospects have succeeded using your system. Proof that even big brands use a similar technique. The more layers of proof that you can weave into your pre-launch sequence the more you will build you credibility and your authority.
This seven step process is fundamental to the success of your first product launch. Every subsequent launch that you do will build on the momentum from the last, from its success and from the positioning that you have created. It is this positioning that allows you to charge top dollar. It is this positioning which will allow you to sell more at a higher price. It is this positioning that will convince people to buy from you not necessarily because of what you know but because of who you are.
If you have not done a launch before or even if you have and now realize that hiring a launch manager would be a smart thing to do, you may be wondering how much hiring a product launch manager will cost. The quick answer is not as much as you might expect. Our aim is to structure a win-win sort of a deal with clients. We get paid when you get paid. That is we work on a percentage of the ‘pre-return’s gross’ revenue that your product launch makes. Naturally, you have to pay a fee to get on our calendar. We can only take on 2 or 3 clients per year so our time is valuable and we must know what our schedule is well in advance. It would be unfair on our other clients if we didn’t insist on this. Find out more by booking a free consultation with me now