Thursday, December 13, 2007

Promotion strategy - STRATEGY

Two directions;

The first one is the traditional advertising, ads, etc.

The second is talking about your products in a more active way. This is what you have been trying lately, right?

You have as well two sets of prices the first price around $19. The second around $49

What justifies a $49 higher price is if your structure needs to employ another person, pay fees to affiliates or spend a lot in advertising.

In these case, you still don't earn more, the structure is simply heavier.

In the first price case, the whole approach is more user's friendly. Visitors might refer your product more easily because they perceive a more user oriented value and maybe less money making product.

Now, both approaches are valid of course.

Right now the site works with a ceratin structure and pricing.

That's great! There is no reason to change that one.

All you need to do is get more targeted traffic so that those who do look for you really find you! Right now, only a small fraction of users know about you.

Your impact and online presence simply need to become stronger.

That's it!

Along that line of idea, if you increase the price, you won't really earn more because the extra goes to affiliates or ad campaigns.

You have to consider a possible drop in sales as well by experience maybe of 40% or even more.

The ones who will benefit from this rise of price are the ones who provide the ads or the affiliates.

Neither you or your customers actually benefit from that raise. 40% of those who would have bought your product might not get it now because of the higher price.

So, what is the conclusion to all that?

And more importantly, what happens if you don't raise the price? What if you simply keep on promoting the way you did and simply increase the buzz + quality of your product + online exposure?

All that creates more sales, more response without increasing an affiliate system or ads.

PS: none of these are final! Strategies can shift any time and setting up an effective affilaite system is still a possible way to go :)

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