BUSTING the $997 Myth | #039
In the world of digital marketing, there seems to be this myth of the $997 product. People think that this is the Holy Grail to build their business off of. Most of the time people think that their audience wants to buy a $997 product. Understanding this crazy myth of the Holy Grail of digital marketing is going to completely transform your business. It’s not that you don’t sell courses and things. The fact of the matter is in the world of marketing, you have to understand how big of an ask you’re making people invest with you and shift with you to commit to learn whatever it is that you’re teaching them through webinars or through any different medium. The investment amount isn’t necessarily the barrier. The main issue is the commitment level for somebody to actually participate in this training, in this opportunity, should be great enough to commit internally in addition to the investment of their time, effort, and energy.
Busting The $997 Myth
I just hopped off a very important message, a very important solo podcast for you that talks about the big myth in the info marketing space. The $997 myth. I broke this down because you have to understand some very important things if you’re going to be successful with selling your courses through webinars or through any different medium. Understanding this crazy myth of the holy grail of digital marketing is going to completely transform your business. I went on a little bit of a rant but it’s super important. I see far too often over the past year or so people coming to me thinking that this was their ticket to freedom and when I challenged them on it, they didn’t have a good answer. That’s what I talked about in this episode. At the end of the episode, if you liked this episode, hit me up at Joel@TheWebinarAgency.com or ping me on Facebook and give me some feedback. Spread the love. Engage with this episode and I’d love to get your feedback.
I’m going to rip off another solo episode for you. I want to talk about something that’s extremely important that I’ve been seeing trending over the course of the past year and a half to two years, especially when I get people inquiring to work with me privately or to inquire about reviewing one of their existing webinars, particularly in the information marketing space, in the course creation space. A lot of times people will come to me and they’ll say, “Joel, I want to work with you or I want to do a webinar,” or whatever it is, “I want this webinar to sell a $997 product.” A lot of times they take a step back and I say, “If that’s what you want to do, I totally get it, that’s fine. Possibly we can think of a way to do that.”
Here’s what is grinding my gears, is that in the world of digital marketing, there seems to be this myth of the $997 product. People think that this is the holy grail to build their business off of. While I’ve worked with lots of people who have done $997 products to cold traffic, and I totally get it, but most of the time people think that their audience wants to buy a $997 product. When I start asking them questions, I said, “Why do you want to sell a $997 product? Where is this coming from?” They tell me, “I see lots of other people selling a $997 product,” and they’re not actually saying they’ve seen a lot of other people do it but they’re like, “I want a webinar that can sell a thousand-dollar product.”
I start going to more and more details and they’re like, “I want to send cold traffic to a webinar. At the end of the webinar, I want to pitch a thousand-dollar offer and then I want to send unlimited traffic to make it work.” I’m like, let’s take a step back here. What’s the root cause of why you want to do a $997 product? Does your audience even want a $997 product? They’re like, “I don’t even know. You’ve done it before. Can you help me do it?” The answer is not “Can I help you do it?” It’s, “Does your audience even want a $997 product?” There’s this underlying myth or misconception that people think that every audience will buy a $997 course. The fact of the matter is that’s not entirely true. If it’s not entirely true, then it’s false.
Here’s the thing. When I’m working with clients and depending on where their traffic source is coming from and how warm their audience is, can you sell $997 product? I don’t know. The people are leaving much money on the table by trying to go for the home run with the webinar. I wish every single client could have $1 million per month business with a webinar as their main engine. I wish that it could happen, even $100,000 per month. I wish that could happen for everybody, but the fact of the matter is in the world of marketing, you have to understand how big of an ask are you making people invest with you and shift with you to commit to learn with whatever it is that you’re teaching them.
How big of an ask is it? Let me give you an example because I’m not just talking about the investment price. I was working with a client a while ago in the house flipping space. He’s like, “We’ve got a webinar. I want to sell a $997 program. That was their whole goal. I took him on as a client and worked with them, rewrote the Webinar, and I was pitching it for him who’s an awesome, awesome webinar. They were driving cold traffic to it and I was pitching it for them live on the webinar. By the time I got to the end of it, I felt so confident. I felt so confident that we were going to open the car and we’re going to have dozens and dozens and dozens of sales and it was going to be the freaking home run.
Unfortunately, it didn’t happen. We made one sale on that Webinar and it was complete dud, complete and utter failure. I started thinking like, “What is going on here? What is going on?” This didn’t happen overnight. This isn’t something that I just discovered at the end of that webinar, “It didn’t work. Sorry. It is what it is. We’ll chalk it up. We’ll try next time.” I tried a bunch of times and that Webinar did not convert to cold traffic and like, “What is going on here?” Then I started to think about the offer. I started to look at the audience and what they were pitching was a business opportunity to learn how to purchase and flip real estate homes, cold traffic to a Webinar into a $997 course.
What I understood and what I came to realize was that the investment amount wasn’t necessarily the barrier. Because that’s the first thing that we all look at. It’s the cost of the course, the investment of the course, and the training. That’s got to be the problem. No, wrong. The main issue that I discovered years later was that the commitment level for somebody to actually participate in this training in this opportunity was far too great. Most of these people were still working a day job. Maybe some of them were entrepreneurs and they had their own business but flipping real estate, buying a home and flipping it and hiring contractors to do all of the work for you, that is a lot of work. Not necessarily a lot of work, but that’s a big shift that people had to commit to internally in addition to the investment, their time, their effort and their energy.
They have to commit to saying, “This is going to be my full-time gig. I’m going to go all in with this,” and they haven’t been warmed up to me yet. They haven’t been warmed up to my client yet. They’ve only seen the webinar and they only know that in order to be successful with flipping real estate into flip your house, here are all the pillars that need to be involved. What I’d made a terrible mistake with was assuming that by the end of the webinar, they’d be willing to completely pivot their careers and invest into real estate full-time.
The reason why that they weren’t ready to commit was it was too big of an ask. What do we do differently? How do we solve this? The answer is much simpler than you think. If you think about it in terms of your customer journey, your buyer’s journey, your audience’s journey, if you have a lot of content and there are a lot of work involved to get them to be successful in whatever it is that your positioning, don’t think that a thousand-dollar course is your ticket to freedom.
What we started doing in the meantime for lots of these types of clients is rather than selling a thousand-dollar offer for the course or for the training, we framed it as, “How can I get them in on a lower commitment level, but still giving them access to all the training because it’s important? They have to learn it to be successful, but I need to get them in at a lower commitment and then work on ascending them if I’m going from cold traffic and I’m not warming them up aside from the webinar?” What we would do now is in these types of instances where we have in depth work that the customer needs to go through is we get them in on a month to month membership site where they pay to play.
If you think about it, letting them pay to get access to your course, all of your content is already created. That’s additional trust that they get to build with you when they’re consuming your content. The more trust that they have with you, the more likely they will be to ascend into higher level programs. While people seem to think that the holy grail is that $997 offer, it’s not because your audience might not want a $997 offer. Think about different ways that you can get them in on a different type of offer so they can start to educate themselves more.
They might actually be sold on house flipping or whatever your opportunity is. They might actually be sold on it, but they still need time to commit to it. Don’t be afraid to give them the content you’ve already created and continue to sell them inside of your course. When I say sell them inside of your course, I simply mean leverage your expertise and leverage your educational content to sell them that they made the right decision.
Let your teaching do all of the sales for you and then reach out to them and ascend them into the next level program, higher intimacy, and more one on one focus or more additional support. Reframing it into a monthly membership site is a great way to grow your customer base and to explode your business if your audience doesn’t want that holy grail of a $997 offer. Does that make sense? I hope it does because it’s important that if you’re struggling. I want you to think how big of an ask, how big of a transformation for your audience to make that commitment? Assuming money was no issue, money was no object, how else can you convert them?
How else can we educate them and how else can you get them to sell themselves, leveraging content you’ve already created? Go implement this, rethink your offers, rethink your content, rethink everything that you’re talking about inside of your webinar. I guarantee you, the gears will start to churn. I do feel like this is a super important topic to uncover and hopefully you’ve got a lot of value on this. If you liked this episode, please spread the love. Connect with me, send me a message, Joel@TheWebinarAgency.com. Tell me if this made sense to you and I’ll see you on the next episode. Take care.
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