a single source, nothing corroborates it
Do not expect volume to cover a lower price
Matched comparisons of the same author's cheap and expensive books produced similar launch revenue, which means the cheaper one bought proportionally more sales, more support and more effort for nothing. When the per unit payout drops the volume required can rise by orders of magnitude, and a price in the low tens leaves nothing to fund the support that buyers still expect. Higher prices also make post launch revenue more durable, because unit sales decay at a similar rate whatever the number.
The method
- 01
Do not assume a lower price makes up the difference in volume; the same revenue at a lower price means proportionally more sales, support and effort for no gain.
- 02
Recalculate the volume you need whenever your per-unit payout drops - the same monthly income can require hundreds of times more transactions.
- 03
Higher price points make post-launch revenue more durable, because unit sales decay at a similar rate regardless of price
- 04
Price high enough to afford support: personal interaction with buyers is impossible at a few tens of dollars and viable in the hundreds.
What it returned
- 72
Over matched 72-day windows, Justin's $14.99 book Jolt and his $39 book Marketing for Developers produced similar launch revenue, but it took 2.6 Jolt sales to equal one Marketing for Developers sale.
- $2,500
Earning $2,500 a month meant selling 3,623 tracks on iTunes but needed 755,287 Spotify streams.
- $9
Justin cannot justify supporting a $9, $15 or $39 customer, but at $295 he interacts with students directly.
Sources
- How I make my moneyJustin Jackson · justinjackson.ca · Online courses > books · undated
- Pricing experiment resultsJustin Jackson · justinjackson.ca · Pricing experiment results · undated
- How many units can you sell?Justin Jackson · justinjackson.ca · The importance of sales volume · undated
- $39k in eBook Sales Part 2: Design, Testimonials, and TrafficNathan Barry · nathanbarry.com · Selling with AppSumo and Dealotto · 2012-10-08
the second source
Three plays a week, for the phase you are in
No roundup of links, no news. Three tactics more than one builder arrived at separately, with the numbers each one returned and the disagreements left in.
More in pricing
- Make them pay before the thing exists8 unconnected · contested
- Decide whether a free tier earns its keep7 unconnected · contested
- Put a cheap rung below the expensive offer7 unconnected · contested
- Undercutting alone is not a position7 unconnected · contested
- Turn the service into a product with a public price7 unconnected
- Charge for the result, not the hours6 unconnected · contested