Pile 'em High, Sell 'em Cheap

In the non-virtual bricks-and-mortar world of marketing the strategy of "Pile 'em High, Sell 'em Cheap' is arguably one of the most succesful in the retailing arena (after all it's what makes WalMart America's #2 company). But, almost without exception, internet marketers use the 'Premium Product' model to market their products. They treat them as if they were premium commodities and charge high prices expecting low-volume sales. So an eBook can retail for anything between $39 and $300; a software system will retail for anything between $97 and $997.

However this strategy goes against the way that most people think of 'value for money' where, at a psychological level, most buyers think that anything below $10 is cheap (hence the profusion of $9.99 offers on the high street). Anything below $30 is considered 'reasonable' as long as there's a reason to buy it, but anything over $30 is 'expensive'. This is why internet marketers selling their products as 'high ticket price items' need the employ the hard sell technique to shift their products. Even then they only sell afew items every month and this is why their products have to be so expensive.

If a technique works in the real bricks-and-mortar world where overheads are much higher then the same technique can definitely be applied to the virtual world of internet marketing. At least, on a conceptual level I was certain of that. It was only when I began the research for my article on models of internet sales businesses that I saw how scarce this sales model was in the virtual world. Then I came across the $7 Secrets eBook by Jonathan Leger. The eBook costs just $7 and it comes with php software that allows you to easily start marketing your own $7 products and the whole package is more than worth it for the software alone. So, I urge you to have a look at the $7 Secrets page now. Remember, just buing this for the software that comes in the package will more than make up for the $7 cost.

There is also the 7 dollar offers sites that sells other peoples' information products for $7 a pop. On this site affiliates make 75% of all sales with 25% going to site manager. There are almost no overheads for the hosting site as the products themselves are hosted by the original author.

What you see in the site described above is the WalMart marketing process in action. The model being: gain as many products as possible, sell them all cheaply as you can and take just a small margin yourself. You affiliates do the hard work of promoting your site and the money you make is pure profit with little or no intervention on your part.