Read Brad Callen’s lesson titled “Creating A High-Value, High-Priced Product (Part 1)”.


Callen’s lesson is reprinted here.

Player’s Guide – Lesson 7

Creating A High-Value, High-Priced Product (Part 1)

In the past few lessons we have talked about the basics of a successful AdWords marketing campaign – keyword research, ad writing, landing pages and tracking your ad performance. Now before we go into further detail in each of these topics, I want to take out some time and focus on the most essential part of the whole package:

The product that you are selling.

It may sound elementary, but there is a lot work that goes into product creation / selection – or at least there is a lot that should be involved in the product selection process. In today’s lesson I’ll take you through the strategies and steps you should consider when you are deciding which market to target and which product to sell. The wrong offer can make the best market seem unprofitable, whereas the right product can turn a profit even in the most difficult niche.

We start with the most basic of steps – profitability.

Will Selling This Product Make me Money?

This is the first question you should be asking yourself – whether you are promoting an affiliate product or thinking about creating a product to sell on your own.

Typically, what internet marketers will teach you is to look at demand and supply – to find out which keywords have a good demand/supply ratio and then base your decision on those numbers.

But if you are serious about your online business then you must also consider these equally important factors:

* How much money are people spending in this niche?

A product / niche can have a high demand with people not willing to spend a lot on it. A classic example is the demand for ‘free stuff’ online – free music, free software, etc. There’s a lot of demand here but the market isn’t monetizable – people don’t pay too much in this niche.
* How valuable / profitable are ‘related products’ in this niche?

If you are selling weight loss solutions to young ‘on-the-move’ adults, what else can you sell to them? Fitness programs? Expand on the tangents of a niche, and you will know if a market is worth exploring or not.

Another example is the dating niche – you can sell information products on self-confidence, pickup lines, comedy etc – there’s a whole host of related topics that can be very profitable.
* How important is ‘product quality’ in this niche?

Is the market satisfied with ‘getting the job done’ or do they differentiate between degrees of quality? This is where services-based businesses are very successful. By offering superior quality you are able to charge a much higher premium for your time. The key though, is being able to offer the increased quality / value (something we discuss later on).

In other words, you have to look beyond the basic demand/supply numbers to make a decision.

Is it Niche Enough?

Are you targeting your product properly? This is a common problem with a lot of new businesses and even with those ‘veterans’ who have been online for a couple of years.

You want a tightly-focused, laser-targeted market to pitch your product at.

Why?

Because that’s the sort of market that will allow you to:

* Charge a high premium for your product

* Deliver a tailored product that consumers will value more

* Test the market before you branch out to related niches

Avoid droves of competition that are selling ‘generic’ products and establish your brand as an authority in your topic.

For example, let’s say you want to get into the weight loss niche. It’s a highly competitive market, but you’ve established that it is profitable, a long-term investment and that you can bunch it together with fitness products to create a diverse income stream. It comes back to the ‘related products’ we discussed earlier.

So how do you make your idea niche enough?

* Pick a profitable niche.

An easy way to determine a profitable niche is when you find advertisers paying high costs in their AdWords campaigns.
* Find an ultra-profitable sub-niche that has little competition.

Picking a narrow niche will allow you to differentiate your product and focus on a specific market (and thus reach them directly, as opposed to other generic products.

The next step is to create a high-value, high-priced product. A targeted niche which is profitable will always allow you to set a higher price.

What Can I do it increase the Value?

A question I often get asked is:

How do I justify increasing the price of this product?

I think that the motivation behind that question is unsound, and therefore, will hurt your business rather than help it.

What you should be thinking about is:

How can I increase the value (to the consumer) of this product?

Because once you increase the value, the consumer himself will justify the increase in price. All you have to do is demonstrate how and what you have done that makes your product more valuable, and as a result your prospects will themselves know that your product is justifiably priced higher.

Some tips on increasing value:

* If you are selling an info-product, consider converting it into a physical product – turn your e-book into a printed manual. Record additional material – a walk-through – on a set of audio CDs.

* People value a continuing service (i.e. a membership site) more than they value a product – plus you have the chance to earn revenue multiple times from the same individual as opposed to a one-time deal.

The key to a membership site is to build a critical mass of customers to make it profitable for you to provide a monthly service (whether you are proving reports, individual consultation or updates to a software / product). An AdWords campaign can help you gain that initial set of customers quickly and easily.

* Specific, targeted knowledge (or services) is more valuable than a ‘generic’ solution. Think niche.

* Returning to the services vs. products debate, you can also choose to frame your product as a ‘time-based service’ – i.e. frame it as part of a consultation package. A common strategy that big name marketers such as Perry Marshall and John Carlton use it to include AdWords account reviews and sales letter critiques (respectively) as part of their product offers.

This type of ‘personal attention’ automatically increases value and for a small investment of your time you can profit much more from the same market.

This is basic stuff, but it’s surprising how few people take up these options – mostly it’s a question of putting in the effort to increase the value of their products. If you do more than what 99% of your competition is doing, you will automatically increase your profits and sales (as well as charge a higher price because of the higher value you are delivering).

Usually people want to make the least amount of effort to make money. The thing is – without putting in any serious effort your product will lack quality, and what’s worse, this lack of quality will show through to your customers. Nothing kills off a new business quicker than bad press, and if you are delivering low-value, low-quality products your customers will become your worst enemies.

Lesson? Focus on two things: finding the right market, and providing high value in your product.

In the next lesson, I’ll show you how you can use Keyword Elite to do the following:

* Find profitable niches

* Select sub-markets within those niches that are ultra-profitable and have little competition

In addition, I’ll also tell you how you can use AdWords to quickly and cheaply test any product idea to evaluate its profitability.

All the best,

Brad Callen
PPC Marketer
http://www.bradcallen.com/
http://www.keywordelite.com
Updated Keyword Elite

Related IMNewswatch Post

Callen Updates ‘Keyword Elite’

*IMNewswatch would like to thank Brad Callen for granting exclusive permission to reprint his lessons.

 

 

 

 

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