MBA2671 Three Low Priced Products I Recommend Selling

0:00Today we're getting into something I rarely recommend, selling low priced products. Generally, low-priced products means low margins, more customer support headaches, and a tough road of real revenue ahead. But there are three exceptions, three specific types of low-priced products under$100 that I do recommend. They scale beautifully, they have high margins, and they convert better than most free opt-ins. Let's dive into all three right now.

0:38Welcome back to the$100 MBA show. I'm your host, Omar Zinhome, where I deliver practical business lessons three times a week, Monday, Wednesday, and Friday to help you start, grow, and scale your business. Before we get started, I just want to take a quick second to say thank you for being here. You're a learner. You're a doer. You're my kind of person. And if you want to join people just like you in our growing community of entrepreneurs, hit follow right here in your podcast app. You grow, we grow, we all win. Thanks. Number one, short challenges or boot camps. These can range between$29,$99, even as low as$19 if you want.

1:19These are three-day or week-long challenges designed to help your customer achieve a clear result in a short amount of time. Here are a couple examples, a three-day social media content challenge for service providers. Or when I was running my software company, Webinar Ninja, we had a challenge called the Automated Webinar Challenge, and it challenged people to create, you guessed it, an automated webinar. What makes these challenges special is that they're pretty high leverage. You build it once, you record the content for each day of the challenge, and you run it over and over again to your audience.

1:56They're also a high margin. There's almost no delivery cost once you build it once. You know, once you have created the content and all the pages on the site, all you got to do is just get more customers. And every time you get a new customer, it doesn't cost you any more money. And finally, they build trust fast. You are able to help someone get a quick win for a low cost in a short amount of time. That's the best sales pitch for anything you have to sell next. And in my opinion, these challenges are pretty versatile. The model works whether you're selling software or coaching or digital products or even services.

2:32So say, for example, you teach people how to create great valuable social media content in your challenge. And then your service, which is your high ticket offer, is offered to them after the boot camp, which is maybe taking care of all the scheduling and the publishing of their content on social media. If your challenge delivers real value to your customers, people will want more. The next offer, your high ticket product or service, will convert much easier because they've already tested the waters. And as they say, a paying customer is the best customer. So they've already paid a little bit of money for the challenge.

3:11And therefore, they're happy to pay you more if you've proven yourself in the challenge that you can get them a result. Let's say you run a$49 challenge for a thousand people. You just generated$49 ,000 in revenue. You also built a massive warm audience that are likely to want to continue with you in the future. You've created this great pipeline of buyers that can then buy your$500 to$5 ,000 to$10 ,000 offer. And because it's all pre-recorded and lightly facilitated, it's scalable. And you can run ads to it. You can bundle it. You can license it. The sky's the limit. The second low-priced product I recommend is a book.

3:52Typically books are about$10 to$30, right? I always say that a book is still one of the most underrated marketing and business tools out there. It's a low cost for the buyer, about$20, and yet it can position you as a thought leader, an authority, and even get you a lot of free press, whether it's locally or on podcast interviews or on YouTube. I want you to look at the best-selling nonfiction authors that you love, okay? Whether you buy their books on Amazon or whatever it might be. Dig into their personal websites, whether it's, you know, James Clear from Atomic Habits, or it's Ryan Holiday, you know, Obstacles Away and all his great books on stoicism.

4:32Go to their websites, go to whoever you like, you know, and you'll see that they're selling high ticket offers off the back of that book, you know, whether it's selling consulting or courses or speaking engagements. You know, I just did a must read episode on The Let Them Theory by Mel Robbins, if you go to her website, she gets paid lots of money for speaking. Some of them run masterminds. Some of them spend a day with a sports team to get their mind right before a, you know, playoff period. The book is the front end, is how it introduces themselves to the world as an authority, as an expert, and it allows people to get to know them at mass.

5:15It works really well because people actually pay attention to something when they've purchased it. So even if it's just$10 for that book, they are invested in what you have to say. Also, if the book delivers and gives lots of value, the reader assumes your paid offer is going to be 10 times more valuable. If they got even access to you as a coach or something like that, then they know that even if it's expensive, it's going to be worth it. It also opens lots of doors, like I mentioned, when it comes to media, when it comes to speaking engagements and conferences, partnerships, sponsors. This all becomes easier with a best-selling book or even just a book that you could point to and say, hey, I am an author.

6:00I'll publish author. Check it out on Amazon. And here's the kicker. It's evergreen. Some of my favorite books have been publishing for decades and they keep earning money. They keep earning trust with their audience, whether the author is still around or it's moved on to their family. Once you have written the book and it's published, especially if it's self-published, you could sell it again and again for years. Same effort, reoccurring return. Now, the margins. The margins are not massive, but not terrible either, especially if you sell direct or bundle it with another offer or again, self-publish.

6:36More importantly, it acts like a trust machine. It's very, very low costs on your side to build that massive amount of trust. When people finish your book or even read a lot of it, right, most of the book, they're going to say, wow, if this is what I got for just$15, imagine what they would give me if I paid$500. You know, what kind of impact would it make on my life if I paid them for their coaching program or for their consulting or for, you know, their services? Or I got them to come and make an impact for my whole team if I invited them to our conference or whatever it might be. This is why so many speakers and coaches and business people and even actors have books.

7:19They've published books because they know it has such an impact on people and can really move the needle when it comes to the authority piece and the trust building piece for whatever that comes later in their career. Third low priced product, live group coaching. You can run a two to three hour live group coaching call for$49 or$99. And this is one of my favorite models because if you sell services or coaching or consulting, this is a no-brainer way to get your customers to get your clients to pay you big bucks for your bigger programs again let's say you charge 49 or 99 for a two to three hour zoom session where you teach and coach and answer questions live on this call it's a low risk for the buyer and it's high leverage for you let me explain let's say you're a coach for airbnb hosts you run live sessions showing them how to boost their income by$500 a month with just a few tweaks they can do to their listing.

8:21If you deliver on that promise, your attendees will beg you for your higher price package because they just got an ROI. So they just paid you, let's say,$100 for this session, and now they're making an extra$500 a month every month. They're going to be like, okay, hey, please, I want more of that. You just proved you know your stuff. Now, here's where it gets really fun. Let's say, for example, you have 150 people that attend your live coaching session and you charge$99. So that would be$14 ,850 in a single day for that three-hour session. I mean, zero fulfillment after, other than maybe if you want to offer a replay, the recording of that session, you get a bunch of warm leads, In this example, 150 warm leads for your bigger ticket item, your offer that shows how they can earn more or how they can do better with whatever you teach.

9:20The margins, absolutely great. It's low stress. It's very high impact for them as the customer where in three hours they've got so much out of it. And in return, you get an incredible amount of trust built, but also you get a lot of people that are going to be interested in what else you have to offer. Now, maybe not all 150 are going to buy your high-priced offer or your consulting package or whatever it might be, but a good number of them are going to be really interested because they are ready to buy and you've already proven to them in the session that you can deliver. It's scalable too, because if demand grows, just run it quarterly or monthly.

10:03And with technology now, with Zoom, you can have hundreds, even thousands of people on a call. This works incredibly well if you already have an audience, even a small one. You don't need 10 ,000 followers to get 100 buyers. Now, before I wrap up, let me give you some insights that I think can really help you when it comes to these low-priced products. Remember, whatever you decide to sell that's low-priced, make sure it covers these three areas that you see these as like criteria, checkboxes you have to tick. Number one, is it scalable? Meaning, can you sell more and more of this thing to more customers without having it cost you more and more money every time you sell to a customer?

10:46So in all the examples, you produce something once or you do it once and you are able to fulfill that product to many people over and over. The second tick box you need to tick is make sure that it's high margin, meaning what's the difference between how much it costs you to fulfill this product to your customer versus how much you're actually earning. So whether it's time or effort or money, you want to make sure that the difference is huge. So in the example with the challenge, you know, you're going to spend maybe a week, you know, building out the challenge, you know, recording the videos, putting up the pages, and then marketing it to your audience.

11:26Now, I can sell this challenge over and over for years to come. So remember that the amount of money you make is going to increase over time as well. So this is a very high margin product because I'm going to be able to sell it over and over without having to produce anything every time, as well as the fact that when I get a customer, it's pure profit. It doesn't cost me too much money to supply this challenge to our customer. And number three is a great conversion tool. Make sure that it helps you or it's aligned with your higher price product or service. This is called a value ladder where you have something for free and then you have something paid that's this lower price product we're talking about.

12:12And then you move them up the ladder with something that's a little bit more money, a little bit more expensive, more of an investment. but they're going to get more of a return on investment. So make sure there's something for them to graduate to and it's aligned. You want to make sure that when somebody consumes your low price product, the next logical step in their head is to buy your higher price product, because that's going to help them further beyond the short term, small and low price product. So again, scalable, high margin, great conversion tool, right? So if you've been sitting on a big product idea right now and you feel stuck, one of these could be a launchpad.

12:54Choose one of the things I just mentioned today, whether it's doing the challenge, whether it's writing a book, whether it's doing a live coaching call. These are a great way to, one, sell your product, but two, to validate your product. Validate to see if somebody actually wants to buy that thing because if the mini version people are not interested in for a lower price, then might mean you need to tweak what you're actually offering your audience. Remember, a customer who pays even$29 is 100 times more valuable than a free subscriber who never engages. This is somebody who transacted with you.

13:30They're a customer and they're more likely to buy from you again. So build something small, deliver real value, and get your customers a win fast. That's how you build trust, confidence, and momentum for both them and you.

14:10free. And it's a way for you to commit to growing your business. And now that you've subscribed, I'll check you in the next episode.