$5 Digital Product or $50 eBook | Which is Better?
There are tons of people out on social media giving business advice. Some of it is good advice, but most of it isn’t good. In this new series watch CapForge’s owner react to different advice videos. He’s an expert in all things business and has 20+ years of experience under his belt. Some of the things he reacts to might even surprise you!
CapForge Founder and Owner Matt Remuzzi reacts to a suggestion of how a higher-priced product would be better to sell than a cheap product.
Video Transcript:
Alright, so here’s a suggestion for making money from Brit Hutchings Creative. Her suggestion is instead of selling a Canva planner on Etsy, a digital planner, that you’d sell the rights to for 5 bucks. People download it from Etsy for you. Her suggestion is that – she said that barely made you a hundred bucks last year, that’s her experience – try selling this done-for-you ebook for $49 a Month or $49 an ebook. And that with two sales a day is $2,800 a month, great. So I think the missing – I think the suggestion here is that you can sell something cheap or you can sell something a lot more expensive that only takes a little more time and effort to create, but you’re gonna make a lot more sales. So the problem with that assumption is we have no idea if selling a product $49 is more attractive or is going to generate more sales than the $5 product. I think it comes down to what are people looking for. What are they willing to spend? And where are they looking for it? Etsy may not be the right venue for selling a $49 planner in the first place. Or people might look at it and say that one’s 49 bucks but there’s another one for 39 or 29 or 19 or whatever or there’s a million variables here. So just selling something that is more expensive than the cheap version, yes, math tells you you don’t need as many sales of the more expensive product to make the same total amount of money. But that by itself is not helpful because whether or not you can sell more – the more expensive product has everything to do with what you’re selling, and who you’re selling it to, and whether or not they perceive that price is making sense. So it’s a very basic suggestion that ignores everything else about doing a business or creating a product to sell other than just, “Hey, sell it for more and you can make more money.” And if it was that easy, right, everybody’s goal would just be to raise all their prices and everybody would make more money. It doesn’t really work like that so this suggestion is sort of arbitrary and not super helpful. But thanks for trying Brit.
