7 builders who never spoke to each other · contested
Put a cheap rung below the expensive offer
A buyer who has already paid you once and got value has far less resistance to a larger number, so the cheap product is an acquisition step rather than a revenue line. Builders across consulting, courses, newsletters and software describe the same ladder: something free or near free to attract, an entry product priced for impulse approval, then the expensive thing gated by application so hobbyists rule themselves out. Aim for the front end to cover its own acquisition cost and the margin lives at the top.
Where this splits
Most contributors build the cheap rung first, while Hickman argues downsell products pull you away from the high margin service and should be left until much later.
side 01 · 17 claims
Build a cheap entry product below the expensive one
Brennan Dunn · Dru Riley · Janelle Allen · Justin Jackson · Kevin Whelan · Nathan Barry · Tyler Tringas · Wes Bos · Zach Swinehart
- 1Sell a cheap first product before the expensive one, because a buyer who has already paid you once and got value has far less resistance to a bigger price.
- 2Set the entry engagement at a price a business can approve on impulse, so a prospect with no prior relationship can try you out before the expensive decision.
- 3Set the price of the premium offer high enough, and gate it behind an application, so beginners and hobbyists rule themselves out.
- 4Put a ladder of products above your service work so buyers who cannot afford you still buy something and your credibility compounds.
- 5Lay out a value ladder that opens with something free and steps buyers up in price, with one offer built for each stage of the buying journey.
side 02 · 4 claims
Skip the cheap rung and protect the high-margin service
Greg Hickman
- 1Leave cheaper downsell products until later, because building them pulls you away from the service you are good at, and use the expertise you accumulate to create them afterwards.
- 2Prefer a high-margin service over a higher volume of a cheaper course, because the margin buys you room to spend on getting each lead.
- 3Let the price decide how elaborate the funnel needs to be: a cheap product needs far more re-engagement sequences, split tests and upfront ad money than a high-ticket one.
- 4Add a longer program alongside the short one so the recurring revenue covers the advertising bill before it falls due, and track how many people move from one to the other.
What it returned
- $49
Brennan describes a step ladder from a $49 entry product up to a $1,799 workshop.
- $297
Jake sold Dunn a $297 YouTube ads assessment: an hour on Skype plus a shared spreadsheet putting Dunn's own figures next to typical click costs and click-through rates. Retaining him outright would have run to thousands per month.
Rungs named across consultants: Kevin Whelan's Fundamentals Playbook course, Craig Watson's Product Buffs group coaching, Gene Maryushenko's SaaS Blocks templates, and Paul Millerd's book The Pathless Path.
Launch House runs two membership tiers with one requiring an application, and Legit Check by Ch prices three tiers according to the luxury item being authenticated.
Sources
- 3 Reasons You Should Be Roadmapping - Double Your FreelancingBrennan Dunn · doubleyourfreelancing.com · Reason #3: Roadmapping lands you more paying clients, and they end up paying you more · 2016-04-12
- [Coaching: Maia #20] Funnel for a High-Ticket Offer, Nurturing Community Members + the Balance Between Free vs Paid Content - Double Your FreelancingZach Swinehart · doubleyourfreelancing.com · AI-Generated Summary: · 2024-04-17
- My First Year Teaching: How I Built My Audience - Double Your FreelancingBrennan Dunn · doubleyourfreelancing.com · Segment Your Audience · 2013-08-15
- S02 Episode 3: How to Value Your Funnel with Greg Hickman - Double Your FreelancingGreg Hickman · doubleyourfreelancing.com · S02 Episode 3: How to Value Your Funnel with Greg Hickman · 2018-05-01 · dissenting
- My embarrassing iTunes receipt – exploring the customer journeyJustin Jackson · justinjackson.ca · I bought $26 of digital products on my iPad · undated
- Pricing experiment resultsJustin Jackson · justinjackson.ca · Pricing experiment results · undated
- How to cheat at online businessNathan Barry · nathanbarry.com · A product eco-system · 2013-08-06
- Email Courses: Types, Tips, Examples - Trends.vcDru Riley · trends.vc · What are the benefits of email courses for students? · 2023-06-21
- Micro-Education Businesses: AI Assistants, Micro-Courses, Content-Format Fit - Trends.vcKevin Whelan · trends.vc · 🔮 Predictions · 2023-08-23
- Lead Generation: Strategies, Lead Generators, Expected ReturnsDru Riley · trends.vc · 🔑 Key Lessons · 2020-08-27
- Consulting: Product Ladders, Scalability, ReferralsDru Riley · trends.vc · ☁️ Opportunities · 2021-08-27
- Education Platforms: Gamification, Income Share Agreements, UpskillingJanelle Allen · trends.vc · ☁️ Opportunities · 2022-05-07
- Conversion Rate Optimization: Social Proof, User-Generated Content, HeadlinesDru Riley · trends.vc · ☁️ Opportunities · 2022-09-01
- Digging in to the Open Startups List - Tyler TringasTyler Tringas · tylertringas.com · Average revenue per user (ARPU) and Pricing strategy · 2015-04-24
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
- 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
- Copy the going rate, or refuse to on principle6 unconnected · contested