Friday, January 16

Internet Marketing Pricing Strategy

Massive Change in Internet MarketingImage by websuccessdiva via Flickr

Has Internet Marketing become more Expensive?

Over the years, some internet marketers have increased the price of their products a few times including their membership fees. Some has even doubled their prices! This may add barriers to entry for newcomers to the internet marketing arena. Newcomers have to pay more to start their internet marketing business compared to those that started earlier.

For example:

  • Turbo Membership was only $67, now $97 and there is an announcement that it will increase to $147 in December 2008!
  • Niches In A Box was $97, now with additional Elite Membership at $147
  • PLR Pro was $127, now upgraded to Project Green Button @ $147 which will increase in stages to $167 and $197

The three products above are monthly membership sites that provide members with new products monthly. Some packages even include features like web hosting and autoresponder. Their prices have increased over the years and are set to increase again soon.

Comanding Higher Price in Internet Marketing

This is actually an internet marketing strategy being used by many seasoned internet marketers where they have learned to increase their sales by adding value to their products and memberships and increasing their prices at the same time.

This kind of strategy actually works if the internet marketers can continually improve on their products and add value to their services. It will also increase loyalty of early members as these members find more valuable reasons to keep their membership. This is because, early members can continue to enjoy improved features at the same lower price when they first joined the membership which new members have to pay more at the new higher price.

With such practice, early members will not think of skipping any months’ payment for fear of losing their membership at the lower price. If their membership are being canceled, they will have to re-join at the new higher price.

This is a good strategy to learn from, however, one must be sure to be able to deliver or “over” deliver by adding more products, features and ultimately more value on a continuing basis. As such, new members will then be willing to pay the higher price for what he/she will be receiving in return. If this is not achieved, the products and services of the internet marketer will risk becoming too costly to new customers.

So the question internet marketer need to ask is “Can I create enough value to command a higher price?”

The three memberships mentioned above have certainly achieved that successfully and from observation, the new standard price seems to be around $147…

Find out more about these memberships, such as Niches in a Box how they package their products and services to command a higher price and more on Internet Marketing Pricing Guide

Download more Free tools, softwares and Ebook on Internet Marketing at Internet Marketing Consulting website

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