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Affiliate Marketing: To Discount Or Not To Discount
by James Schramko, Jam
If you ask someone if they would prefer to pay $10 or $20 for a movie ticket, they'll surely answer $10. It's the same movie after all, isn't it? Why pay more for the same experience.

Plus, from a marketer's point of view, the numbers even out. Despite the fact that you receive less profit from each sale, that you get more sales will make up for this.

Anti-discounters also have a compelling argument. The cornerstone of their reasoning is that by offering discounts, you are effectively gathering a customer list of only those who want cheap products and incredible bargains.

While this may get you sales for the initial product, every time you want to go back to that list, you are less likely to get sales. The bargain hunters won't care about doing business with you personally, because they can just do a web search and find somebody else who discounts a little bit more than you, and then buy the product from that person.

Also central to the anti-discounter argument is that excessive price cuts devalues the product, and related products, as a whole. If you discount an $80 product down to $50, then you have devalued that product.

If you try to sell a related product in the future that costs more, then customers will say to themselves, "Why bother with this new product, when there's that $50 one that seems just as good?"

Also, the original producer of that product has had his or her work devalued and will find it harder to sell that work at a good price later on.

So if you don't discount, how can you still sell products? Use your bonus offers to entice customers. If you offer a high-quality bonus, then you can make more sales. Remember that movie ticket example from above? Well what if I told you that the $20 dollar ticket included a seat and a bag of popcorn and the $10 ticket was standing room only with no refreshments? Still the same movie, but the added value of the seat and food makes paying full price worth it.

Have a good bonus and everybody wins: the customer is satisfied with his or her purchase; you get a good customer to add to your list who may buy another full-priced product in the future; and the maker of the product retains the product's value.
James Schramko has sinced written about articles on various topics from Marketing, Affiliate Programs and Wrinkles. Hear my free with the emerging internet masters, the innovative thinkers.. James Schramko's top article generates over 27100 views. to your Favourites.
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