How to Increase the Perceived Value



Free information is perceived to have a low value, especially free blog posts with ads way off in the corner.

Listen to this.

Perceived value is everything. Water used to be only free, but now you can buy a Dasani out of a Coke machine for a buck. It's the same water you can get for free with a cheap filter attached to your sink. Yet bottled water now has a perceived value of up to $1.

As for digital products online:

* Ebooks have a perceived value of $7 to $28.

* mp3 products are generally perceived at around $47.

* Downloadable videos are perceived up to $97 a piece.

* Software is perceived anywhere between $97 to the $1,000s.

These are estimates based on studying marketing and observing prices.

Let's take a free ebook and make some real money...

I'd take this quality ebook and turn it into another form of media with a higher perceived value.

* Ebook = $27 per sale

* Ebook > mp3 Audiobook = $47 per sale

* Ebook > mp3 Audiobook > Screen Captured Video = $97 per sale

Turn your ebook into a form of downloadable media with higher perceived value. You can do it yourself or hire someone to do it cheaply at Elance. If you want to do a screen captured video, use Camtasia or a cheaper program like it.

But it doesn't end there!

How the Right Packaging Increases Perceived Value

Let's say you took your free ebook and turned it into a 4-hour-long screen capture instructional video course and you're selling it now for $97. If you offer 50% commissions to affiliates, you'll have a ton of Super Affiliates promoting the quality product that has high value and high perceived value for $43.50 per commission. The affiliates will also be building your e-mail list for you.

What if I told you that by making two minor adjustments that you could triple the cost of this product and it'll still have value?

Here's what you do.

1) Call it a ?course.?

2) Go to your graphics guy and tell him, ?Instead of creating a graphic for just one 4-hour-video, make it look like 5 DVDs in a bulk package.?

Infomercials have proven time and time again that bulk packages out-pull single packages 5 to 1, because of higher perceived value.

Now you have a bulk package that you could sell for even $247 to $297 or more. If it's a course in bulk, the perception of your product will be that it's an investment by which there will be a return.

A Drop in the Bucket

At this point your prospects are salivating over this high perceived value video course on how to do whatever it is that you teach. But they aren't quite ready to buy. They want to whip out that credit card, but they need you to give them another big reason why.

You need to make it look like your product's price is a drop in the bucket compared to the benefits that the prospect is getting.

So we do two things:

1) Pile on quality bonuses like audios, reports, interviews, you name it. This increases value. You can buy Master Resale Rights to products for practically nothing. Just make sure the license says you can give it away as a bonus.

2) You need a USP, a Unique Selling Proposition. You'll need something of high perceived and unique value to close the deal. In your case, you could offer mentoring from your own online mentoring school.

These two things significantly increase the perceived value as well as the actual value of your product and now service as well.

A serious entrepreneur would be willing to invest $297 as a one-time fee for $1,000s of dollars worth of products and services on your topic.

The great news is anyone can do this with a how-to ebook.

What if we flip flopped it?

Say you don't feel comfortable with charging this much money.

So what can you do?

We flip flop. You instead charge $47 per month for your mentoring service and as a bonus tack on your $297 video course. This will build a solid stream of residual income.

Affiliates will still be pleased with pushing your service because they will be getting residual income as well.

There you have it.

So there's how you go from giving away a free ebook to making an easy $180.50 per day or more on the internet (and that's just 100 visitors to your sales page per day).