2 builders who never spoke to each other
Ship three tiers instead of a single price
A single price caps every buyer at the cheapest thing you sell, including the ones who wanted more and would have paid for it. Across ebooks, courses and software the same pattern shows up: escalating packages roughly double or triple what one edition would have earned on the same traffic. Differentiate the upper tiers with a different kind of thing rather than more of the same, and the top one can sell as a partial preorder while the extra material is still unrecorded.
The method
- 01
Offer three price points at launch rather than one, so buyers who want more can pay more and average revenue per customer rises.
- 02
Price the finished product for the value it ended up carrying, not the number you guessed at the start, and offer several tiers - the most expensive one may outsell the cheapest.
- 03
Offer three price tiers rather than a single price so readers who want more training can spend more, instead of being capped at the cheapest option
- 04
Always offer more than one price point, and three if you want the anchoring effect.
- 05
Offer three priced packages with escalating extras rather than one price: the upper tiers roughly double what a single cheap edition would earn.
What it returned
- $9
Adam considered charging $9-$12, and shipped tiers at $29, $59 and $135 for a 160-page book plus four hours of screencasts; the priciest tier outsold the entry tier.
- $29
$29 book was 48% of copies but 19% of revenue; the $199 complete package was 31% of copies and 61% of revenue; a book-only launch would have grossed $12,780 against the actual $36,297, a 2.8x difference; earlier books saw 2x and 3x lifts from tiering
Applies to ebooks, courses and SaaS alike; both worked examples in the article beat single-tier pricing.
Both authors call multiple price points the change that mattered most
Sources
- The power of Tiered PricingFlorin Pop · florin-pop.com · What is tiered pricing? · 2024-09-09
- Adam Wathan's $100k product launchJustin Jackson · justinjackson.ca · You ended up writing a pretty big book, and doing screencasts as well! · undated
- Join me as I create & launch a product in 24 hoursNathan Barry · nathanbarry.com · Current status… · 2014-12-01
- $36,297 in 24 hours: behind the scenes of The App Design Handbook launchNathan Barry · nathanbarry.com · Selling in multiple packages · 2013-11-11
- Making $12,500 in 3 months with a book on ember.jsNathan Barry · nathanbarry.com · How were the revenue and sales from the book? · 2015-06-03
- What I learned selling $6,000+ of my ebook today.Nathan Barry · nathanbarry.com · The Sales · 2012-09-04
- Lessons from building a blog to 10,000 subscribers in a year (video course)Nathan Barry · nathanbarry.com · The Lessons · 2013-08-19
- Should you launch more than once? I’ve got $58,332 as evidence.Nathan Barry · nathanbarry.com · Launch #1 – January 14th, 2014 · 2014-02-28
- How a music teacher used Authority to make $34,500Nathan Barry · nathanbarry.com · What were the most valuable lessons you learned from Authority? · 2015-06-02
- How Nathan Barry and Sacha Greif Sold $39k Worth of eBooksNathan Barry · nathanbarry.com · Pricing Strategy · 2012-10-03
- Self-doubt and launch statsNathan Barry · nathanbarry.com · Sales stats · 2013-05-28
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