Within a month of working with Karen we were able to increase her prices by 10x while simultaneously delivering more value to her clients. And within two weeks of changing her price point she was able to land new clients at her new prices!
Here is how we developed Karen’s digital marketing strategy.
Karen was having great success selling $20 -$30 dollar digital products and was providing phenomenal customer service to her clients.
However, the problem with $20 – $30 dollar products is that unless you have an large amount of traffic it is tough to make enough to support business growth.
For example, if you have 5,000 visitors a month to your website and convert %2 of those you are only making $2,000 a month on a $20 product.
The other problem with cheaper products is that the cost of ads these days is getting extremely expensive so getting a positive ROI on paid traffic to a $20 dollar product is very difficult.
I remember having a conversation with a Amazon executive and I asked him how many products at a $20 price point get a positive ROI on paid traffic and he said virtually non. I have worked with a number of businesses with $20 products and I can confirm that. You can do it but it usually only works in rare circumstances. Or it can work as a secondary product to generate a bit of extra cash. For example an e-book or short video course.
So how did we go from charging $20 a month to $200 a month?
Simple really. We added more value for the client by providing one on one interaction with Karen and delivering more services.
With this higher price point we can now afford to spend much more on acquiring a customer through pay per click advertising or other means.
The extra revenue created by the higher price point will also allow Karen to have more cash to invest back in her business to keep growing it.
Now when you try to sell someone on a $200 dollar a month program totalling at $1,200 for six months or $2,400 for the year not everybody is going to be able to afford it.
This is why we worked with Karen to make a cheaper offer at $100 a month that requires Karen very little effort to maintain. That way she can capitalize off all leads that come her way even if they don’t bite at the higher price point.
With these changes to Karen’s marketing strategy and business model she is now well suited to succeed in the extremely competitive online fitness industry.
As mentioned she has already landed clients at her new price points and we are working with her on her online ads to help crank up traffic.