Price Points For Digital Products – What You Need to Know

Having your own digital product is an excellent concept because it allows your buyers to instantly gain access to your product without the disadvantage of having to wait for it to be delivered via mail. They also gain access to the information right away so that they can instantly begin putting it to work for them. This is a huge advantage especially if you’re offering a “how-to” type of product or offering a product where you’re teaching your buyer something. Digital is the way to go not only do you gain something out of it by getting instant sales with very little effort, but the buyer also gains by not having to wait for the product. They can begin using it as soon as they pay. Think about this, imagine you are selling a marketing product to other online businesses. You know how quickly the internet changes. Imagine offering them access to proven tools and strategies that they can instantly use to grow their business.

If you’re offering a very good product with a strong offer, I bet most of those businesses would not hesitate one second to buy from you. They’d want to instantly put into action your strategies right away so that they can begin making more money as soon as possible. Digital products would allow them to do this. The instant download would allow them to implement what it is you teach within minutes and not have to wait a week or two for your product to arrive in the mail. That one or two weeks of waiting could cost them hundreds or even thousands of dollars simply because they’d be losing time – the time they could of spent implementing the strategies you teach with your digital product.

Of course, you’ll also have to price your digital product well in order to gain sales. So, what’s the best rule of thumb for determining the price point for a digital version of a tangible product? If your tangible product is let’s just say $997, what should you sell the digital version for? Well, the first thing you need to realize is that if you have a tangible product, and if you can create a digital version, this can work to your advantage.

What you can do is strategically create two different price points. For the tangible product that you’ll send them in the mail (which will take them a bit longer to receive), but they’ll have the convenience of having the hard good with them anywhere they went. They could comfortably read it on the sofa, relax at a local cafe or take it to the beach. They’ll have the convenience and comfort of the hard copy. So, you could offer it to them for $997. A lot of people place more value on hard tangible goods.

You could then offer those people on your list who refuse to buy a discount of 50% if they decide to purchase the digital version. So, you’re offering it to them for $497 – a $500 discount off of the retail price because you’re giving it to them digitally. That’s what I recommend since you’ll be able to make sales off of those customers who initially refused your offer because it seemed too expensive to them. The digital version gives them the option to still gain access to the product although they won’t have the advantage and convenience of the hard good. That’s actually how I did it on one of my product offerings.

What I did was I sold this package for $997. I made the offer online. I said, “…hey, this package is $997.” And then if they said no to it, what I did was I dropped it down to the digital version and they got it for half-price and they got it instantly! And I just realized I should’ve done that for all of my product offerings because that’s just quick digital cash! I’m just hitting myself right now for not using this strategy on all of my products, but better late then never.

So, if you want to tap into a market that may not have the ability to pay for your initial product offering, if you have a hard good consider a digital version. You’ll be able to gain access to cash that would have otherwise been lost. Look at all of your options and look at your market from every angle. There may be opportunities that you never knew existed.