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Buy Teaching Sells for $1 and the Psychology of the Dollar Offer


photo credit: Gaspa

Teaching Sells was already excellent value but I just heard yesterday that you can sign up now for $1! If you were thinking of trying before but didn’t make the leap you should get in now before they put the price back up.

Why on earth would they give you all that for one dollar? Especially when people stampeded to get the courses at full price? Here we have a useful lesson in marketing.

$1 is News

Teaching Sells Report Cover
First of all is the most obvious benefit to the customer; $1 is a bargain. In fact $1, £1, one loonie or whatever is so associated with “bargain” that it has been adopted by bargain stores around the world.

Customers like a bargain, which means you get more attention. Bargains are news. You can see this if you ever use Google Adwords advertising, you can often compete with entrenched advertisers just by using price as your weapon.

Obviously some items can be sold at a markup for $1 but that is not the case here. How do you make money selling your product for nearly nothing?

From Free to Full Price and Beyond

When selling you have the opportunity to sell various products and services at various price points. Different price points attract a different kind of customer in a different way. Price is a key component in your sales strategy but it isn’t just about selling low and gaining volume.

Supermarkets often have cut price offers as loss-leaders. These are products sold at cost or at low profit in order to get customers through the door in the hope that they will buy higher profit items to make up the difference. This actually works pretty well.

Another option is to sell a low profit item but bolt-on profitable items. For example you can put out a HD television at a huge discount but get the customers to buy the most expensive cables. Anyone who has been to a fast food joint lately will likely have been persuaded to bolt-on profit with an upsell; “go large?”. That’s not the case here either really, as what you are buying is effectively the same product as is sold at full price.

0% financeIf there is no way to sell low then bring on additional profit then you need to find other ways to make the original offer easier to agree to. That’s where payment plans, credit and 0% interest come into play.

What you get with this offer is a trial. Brian and Tony are counting on a high percentage of customers becoming satisfied enough that they take on additional months. The $1 pricing shows they are confident that they are offering a valuable service.

Why Not Free?

If they are so confident, why not give it away? Why $1 and not $0?

There is a real psychological difference between $1 and $0 that might not be immediately apparent. With $1 you are making a financial transaction. You are making a purchase with all that entails.

Yes with free you offer something of value (your email address) for something of value (a free report or whatever). But even $1 on your credit card is an increase in commitment. When you use your paypal account or credit card there is a raised trust requirement on the part of the customer. It is a bigger barrier and therefore a more serious commitment.

What is given away often has lower perceived value than even something sold at $1. Something that is sold, even of only at $1 qualifies the customer, plus also shows the offer has value.

In fact there is a free item in the Teaching Sells marketing, the ebook.

Teaching Sells Free Report

When subscribers get the free ebook the commitment is much lower than if it was sold, but more than if anyone could simply download from the page. After reading the ebook the customer will understand the offer more and be more willing to take up the $1 price. If they get a good experience from the $1 pricing they will be motivated to take the full price.

The Profit Elevator

EscalatorToo many businesses try to strike gold at first try. The amount of selling and trust involved in landing the big deal means the odds are stacked way too high, even if what you are offering is great. It is far easier to offer something easy to agree to and show your worth and incrementally ratchet up to the big offer when the trust and positive experience is there.

This is a lesson that can be used in any business. You will see I have services that range in price but I actually make the majority of my income from longer term clients. I could advertise hoping to land those but it is far easier to attract someone with a small, contained commitment. The risk is lowered for both of us and either party can walk away happy with a small transaction. Where appropriate these smaller jobs lead to larger jobs.

Summary

Think about your own marketing and see if you can create your own product ladder, from free download, to low priced item to higher priced items. What journey could you take your customers on? If you are currently only blogging, what could you offer readers that could make them customers?

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Comments

  1. Do you know how long this offer is good for? I’m leaving town tomorrow for a few days, but I’d definitely like to take advantage of this offer when I return this weekend.

    Thanks for the heads up.

  2. Do you know how long this offer is good for? I’m leaving town tomorrow for a few days, but I’d definitely like to take advantage of this offer when I return this weekend.

    Thanks for the heads up.

  3. I think once you sign up you get the course for seven days so better off signing up when you get back

  4. I think once you sign up you get the course for seven days so better off signing up when you get back

  5. Just a small comment – I’ve been with Teaching Sells since the start, and one thing I wish for is an ebook of the courses so that I can read offline and take the course with me. The content is fantastic.

    So when you said “free ebook”, I was all “YESSS!!” Ummm but there’s no free ebook, Chris. It’s the free report that has been promoted since day one.

    It’s a good idea to be consistent and stick with what the item is always called, otherwise it may leave people feeling a little disappointed that there wasn’t a free ebook.

    Now. I must go nag Brian to make an ebook so I can finally become a traditional offline reader again 🙂

  6. Just a small comment – I’ve been with Teaching Sells since the start, and one thing I wish for is an ebook of the courses so that I can read offline and take the course with me. The content is fantastic.

    So when you said “free ebook”, I was all “YESSS!!” Ummm but there’s no free ebook, Chris. It’s the free report that has been promoted since day one.

    It’s a good idea to be consistent and stick with what the item is always called, otherwise it may leave people feeling a little disappointed that there wasn’t a free ebook.

    Now. I must go nag Brian to make an ebook so I can finally become a traditional offline reader again 🙂

  7. Yes, sorry, I meant the free ($0) pdf (ebook) 🙂

  8. Yes, sorry, I meant the free ($0) pdf (ebook) 🙂

  9. Nice analysis, Chris. I haven’t ever thought about how much difference can $1 really make :).

    I noticed this offer before but was turned away by the fact that I had agree to autocharge my Paypal account after 1 month or so. Seemed to me like a trick to get money from the people who don’t notice that they are agreeing to autocharge their Paypal.

  10. Nice analysis, Chris. I haven’t ever thought about how much difference can $1 really make :).

    I noticed this offer before but was turned away by the fact that I had agree to autocharge my Paypal account after 1 month or so. Seemed to me like a trick to get money from the people who don’t notice that they are agreeing to autocharge their Paypal.

  11. That’s just how these things work because otherwise you would likely have to set up a new account after the trial, which would certainly lose otherwise happy customers.

  12. That’s just how these things work because otherwise you would likely have to set up a new account after the trial, which would certainly lose otherwise happy customers.

  13. Interesting to hear the $1 argument — Wired has a great article out today arguing that $0 might be the way to go. I’m not sure I agree with all the points, but it makes for great reading.

  14. Interesting to hear the $1 argument — Wired has a great article out today arguing that $0 might be the way to go. I’m not sure I agree with all the points, but it makes for great reading.

  15. I joined at the “founder” rate. That means I paid $97 for access to a bare bones Moodle installation. I watched other participants complain in the forums about the lack of content, so I know I wasn’t the only one who was disappointed.

    Don’t cry for me…. I got my $$$ worth by learning a VALUABLE lesson. My “membership” site won’t launch until the content is robust and membership is considered by members to be a VALUE instead of overprice (apparently by $94).

  16. I joined at the “founder” rate. That means I paid $97 for access to a bare bones Moodle installation. I watched other participants complain in the forums about the lack of content, so I know I wasn’t the only one who was disappointed.

    Don’t cry for me…. I got my $$$ worth by learning a VALUABLE lesson. My “membership” site won’t launch until the content is robust and membership is considered by members to be a VALUE instead of overprice (apparently by $94).

  17. I took a look, but I was turned off by both the paypal autocharge and the fact that I gave them my email address for the free report and it never showed up. I don’t like giving out my email address as it is; I’m much less likely to trust giving them my paypal details if they can’t even send me a free ebook correctly.

  18. I took a look, but I was turned off by both the paypal autocharge and the fact that I gave them my email address for the free report and it never showed up. I don’t like giving out my email address as it is; I’m much less likely to trust giving them my paypal details if they can’t even send me a free ebook correctly.

  19. I am not joining teaching sells
    but your article was a good insight into marketing techniques.

  20. I am not joining teaching sells
    but your article was a good insight into marketing techniques.

  21. Jack, did you check your spam folder for the link to the report? That sometimes happens with autoresponders.

    If you don’t find it, email me from the contact page on Copyblogger and I’ll get it to you.

    As for the PayPal thing, this is how membership sites work. Luckily, PayPal puts subscription management in your control, so you never have to rely on the site owner to cancel your subscription. It’s a much more user-friendly approach than your typical merchant account.

  22. Jack, did you check your spam folder for the link to the report? That sometimes happens with autoresponders.

    If you don’t find it, email me from the contact page on Copyblogger and I’ll get it to you.

    As for the PayPal thing, this is how membership sites work. Luckily, PayPal puts subscription management in your control, so you never have to rely on the site owner to cancel your subscription. It’s a much more user-friendly approach than your typical merchant account.