| Price point is something that most of us did | | | | |
| not even think of when looking at a | | | | These business opportunities have a different |
| homebusiness oportunity. I know I didn't. The | | | | problem than the preceding. Most of the |
| reason I didn't look at this was because I | | | | typical low end programs cost as little as |
| was so new to a business venture, especially | | | | $10 and up to say $100. These products are |
| something online that I did not even know | | | | very difficult to result in any serious |
| what to ask when looking at the opportunity. | | | | income potential. You can get into "back end" |
| | | | products but we will leave that for another |
| The other reason is the opportunity I looked | | | | article topic! |
| at never really mentioned this key aspect to | | | | |
| me. I will offer you my views on this based | | | | Ebooks are a good example of such low end |
| on a years experience running my home based | | | | products. What most people don't realize is |
| online business. | | | | it takes the same effort to make a $10 - $100 |
| | | | sale as it does to sell something for 10 |
| Price Point, can be referred to in many ways | | | | times more. Often you will spend as much as |
| but basically it is the start up costs you | | | | the low end item's cost in advertising, which |
| willincur when starting your business. | | | | then creates a problem with needing a back |
| Knowing what the real start up costs are and | | | | end product, or at least some trick to lessen |
| being able to meet those demands can be the | | | | your advertising costs. |
| "make or break" for you in whether you | | | | |
| succeed or fail in your business start up. | | | | The average pay per click cost for the |
| | | | Business Opportunity category of product is |
| Any way you look at it, this "price point" | | | | in the range of $0.75 to maybe $1.50. There |
| must be priced just right for you to see | | | | are free advertising methods as well but paid |
| success and profits. Too high or too low- | | | | tends to be much more targeted and results in |
| either way you will most likely fail or | | | | a more definite sale per "hit" ratio. |
| struggle at best. | | | | |
| | | | I personally started selling an ebook for |
| High End Price Point Opportunities: | | | | $19.95. I thought for sure I would sell |
| | | | dozens a day initially, and I'd easily cover |
| There are many opportunities that are priced | | | | my advertising cost. WRONG! I found that |
| quite high and in the range of $2000 to | | | | maybe every 100 visitors bought,but that |
| $10,000 and more. The people that join these | | | | barely covered the advertising cost. Profit |
| programs tend to have more financial backing | | | | margin was very minimal w/o a back end sale, |
| but they too can run into unforseen costs | | | | and those did not come often enought for me. |
| that if not planned for, may result in a lot | | | | |
| of struggles to make a profit. | | | | I then tested a new product line that had |
| | | | what I feel is a perfect price point. What is |
| Advertising is your number one cost that will | | | | this price point range? $300 - $1000 seems to |
| be a continual expense in running your | | | | be the perfect price for the masses to find |
| business.The ongoing costs of your business | | | | affordable. The effort to make a $300 - $1000 |
| or the cost to acquire one customer with this | | | | sale is the same as that $19.95 ebook, and |
| High End price point business opportunity can | | | | the advertising cost is easily "covered" in |
| be as much as $1000- $4000. If your product | | | | the selling price. |
| sells for say $3000,your initial sales may | | | | |
| not even cover your costs! | | | | Using the $0.75 cost per click for |
| | | | advertising, and say every 100 visitors |
| The other issue with High End price point | | | | results in a sale, your advertising cost is |
| programs is your prospect base is drastically | | | | $75 and your profit is $1000 - $75 or $925. |
| lowered to where you really need to know | | | | Not bad! Even the $300 level product with |
| where to look for the people that can afford | | | | these figures is a net profit of $225. |
| such business investment and start up costs. | | | | |
| | | | One thing to note is selling a product over |
| If you take the initial cost, add in your | | | | the $1000 price will often require you to |
| cost for your first sale, then add in on | | | | spend some telephone time with a prospect. |
| goingadmin type costs or fees, you can | | | | Most people will want to talk to someone |
| quickly see that this high end price point | | | | before they shell out more than $1000. I get |
| can run into some serious costs.I'd say | | | | many sales below $1000 without ever talking |
| anywhere from $5000 - $12000 or more! | | | | to my customer! |
| | | | |
| The bottom line with High End price point | | | | My opinion is to look for products in this |
| home business opportunities can be great if | | | | $300 to $1000 range. |
| you are prepared for the initial start up | | | | |
| costs. As I mentioned earlier most people | | | | Next time I will offer ways to cut |
| don't even know what questions to ask let | | | | advertising cost using PPC to pennies on the |
| alone ask the correct questions before | | | | dollar anddiscuss the pros and cons of a back |
| getting involved with any online opportunity. | | | | end product vs. ensuring your profit in your |
| | | | "front end" sale. |
| Too Low Price Point Opportunities: | | | | |