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