Charging for your Product, Service, or Process
Friday, December 14th, 2007I’ve been in a very small discussion regarding how best to charge customers for ones product, service, or process. Granted we’re all discussing this inside a Plaxo Pulse discussion area called Blogging for Business, but the issue is valid and I’d like to take a moment to provide insight into my current predilection.
Scott Andrews, the CEO of ARRiiVE Business Solutions, posited the following:
“I’m offering a training program and access to a resource center filled with downloads, screen prints, slides/audio recordings, links to helpful widgets, tools, code, and methods to make money with blogs and grow traffic to blogs.”
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“I’m trying to determine the best way to position the price for this program …”
I suggested that Scott think of offering to his customers a price break for his product in return for ad space and a share of revenue. This seems like an affiliate program at first glance. However, an affiliate program is not tied to the purchase of a product or service, just the real estate on the page. I’m suggesting he charge less for his product with the intention of being able to tie the success of his product to a share of the profits his customer attains.
The product, service, or process one sells as a package in essence provides your client a big benefit. Why not provide them the opportunity to share a percentage of the back-end value instead of paying 100% up front? This is important because now you’ve got skin in the game by not charging them too much. Any increase in their traffic, which also provides proof that what they bought from you truly works, in turn pays you both back, handsomely.
Look at it this way: you are making your client successful and you both share in that success. As your product proves itself, taking them from nothing to something, they have invested a modest amount and you’ve shown your commitment to your product and their success.
And, for an internet business, this is like promising to help the farmer clear the weeds, by hand, if your product fails. It’s a solid and sound hand shake.
TAGS: Plaxo, Plaxo, revenue, affiliate, commitment, internet business, StaffITRight, efficiencies, Intelligent Business Resourcing







