Author’s Note: I wrote the original article for this in 2006. While the concept remains the same, some of the prices may have changed. Most likely they have increased!
One of the most valued things in business is Information. Big businesses pay a lot for the right information at the right time. They rely upon experts to provide this information. They hire trainers, consultants, speakers, and data miners – all to be sure they have the right information when they need it.
But something happens when it involves an online business. Suddenly information becomes a commodity in the minds of most people. But just because there is a lot of information doesn’t mean that it’s all equally valuable.
For example, if you’re involved with Internet Marketing you’ve probably settled into a comfortable rut of “free” teleseminars and webinars. After all, they’re used to promote products, services, and events.
So it may be a jolt to find out that the rest of the world isn’t doing them free. In fact, they are charging handsomely for them!
Take for example, SoundView Executive Summaries – the company that sends out the executive summaries of books for those of us too busy to read the full book. I just looked at one of their teleseminars. Keep in mind it’s a 90-minute audio conference with a best-selling author. Their prices:
Audio Conference & CD Recording – $258.00
Audio Conference only – $199.00
CD Recording only – $199.00
Now if that doesn’t make you sit up and take notice I don’t know what will!
And consider – they are not going to open up the line for your individual questions – and I’ll bet they didn’t even offer an ASK campaign for your questions prior to the call.
And that’s not the only one! I get regular notices from The Competitive Advantage.net. Here are their prices for a 90-minute audio conference:
Audio Conference Only – $159
Audio Conference & CD Combo – $209 (plus $20 CD shipping)
CD Only – $159 (plus $20 shipping)
Yikes! Now count how many people were on your last teleseminar. How much money did you lose by offering it as a “complimentary” teleseminar?
Can you charge those prices? It depends on your market and your topic.
If you market to CEOs, conventional business managers and sales professionals, you generally can charge well for the information you provide. Not only do they have the money to pay for it, but they recognize the value of good content – and regularly invest in their professional development.
On the other hand, if you market to those seeking to start a home business or a second income, they may not be able or willing to pay those prices. Traditionally, these markets are very cost-conscious.
Then let’s consider the topic – your content. If your primary purpose in offering the teleseminar is to teach a topic, then you should charge for it. If you don’t put a value on your information, no one else will either. However, if your primary purpose of a teleseminar is to sell a product, service or event, then you generally don’t charge.
Could that change in the future? I think so. The quality of the information provided on preview teleseminars, for example, leading to a seminar is extremely valuable. Why not charge a small fee – to weed out those who have no intention of registering for the event? After all, either you need to sell a ticket to the event or you need to charge for the content.
The same should be true of a product or service. If you’re offering a valuable amount of information, at least charge $10-20 to indicate the value and to reimburse you for the expenses and time of a teleseminar. In 90 minutes you will easily reveal that amount of information – and probably more!
The trend starts here. If each of us who provides quality content in our (previously) complimentary teleseminars or webinars starts to charge a small fee, the trend will catch on.
So ask yourself: What is my information worth?
Fear – that is what stops most people from charging what they are worth. Too many people fear that no-one will want or buy their services if they raise the price, and so keep themselves in a poverty cycle.
Here’s my experience with pricing..
In 1974 when I was still living in London, England, I was charging 25 British pounds for a one hour Reflexology session. I got so busy that I decided to double my price – thinking that I would lose half my customers, but keep the same level of income. Wrong!! What actually happened was that I retained 95% and added a whole lot more who figured if I was charging 50 pounds I must be better than those only charging 25 pounds! I actually doubled my price 3 more times before being forced to hire staff to help me out with all the new clients who kept arriving at my door!
I had bought into the theory that people were price driven. However, I learned that although that may be true for a minority, the majority of people prefer quality and results driven outcomes.
You see I could help my clients recover from health issues in just a couple of sessions, so they were actually saving money in the long run, because they only came once or twice. These clients were so pleased with the speed of their new health, that they did tell all their family, friends and even people they met on the bus and cinema line-ups about me, which is how my business exploded in a way I had never anticipated!
Don’t let fear hold your business back – get paid for what you are actually worth – not just what you “think” you are worth!
Great story, Lauren! And something we all need to remember.
I think both fear and lack of “value” hold people back. Many of us have a hard time “justifying” the price because we haven’t built the value of the product to the customer.
It also comes down to your audience. Some people prefer working with those on a limited budget, so they price their products accordingly. In some cases you may be purposely providing a low-cost item to provide a service to others.
Thanks for your contribution to the discussion.
You’ve talked about teeaesminlrs before, and there are plenty of products to help you arrange them, but, are they JUST for people with information products or high-end items?Unlike most online marketers/guru followers, I sell a physical consumable item that not many people know about. (Chia Seeds- the superfood) They’re not expensive/high ticket, but they have loads of benefits and uses. But would anyone listen? I know a lot of teleseminar listners go for little freebie info bits or something they can use for their biz. (then, if it sounds good enough, buy) But you can talk yourself hoarse over ChiaSeeds and 0 people will benefit from any of the blather or type unless they eat them because they’re a physical product. Would anyone bother with such a thing?Just curious of your opinion on this
Norlan – You can absolutely use online presentations for selling physical products. In fact, I just wrote a full article for you on doing that: Teleseminars and Webinars For Physical Products
In your case, I wouldn’t worry about giving away a “freebie” – unless it’s a coupon for your product or a special 2-for-1 deal of some time. Most people listen to presentations for the information – not for the “free gift” they might get. Time is more valuable than that!
With a consumable product like yours, it will be particularly important that you offer multiple presentations on the benefits of eating the seeds – so that they are reminded repeatedly to actually consume the product!
I don’t have a problem with the prices, if they are in my range. The criteria for price is quality deliverance for the price paid. Under promise, over deliver is the ground rule for success in my estimation.
I have personally paid thousands of dollars to people who over promised and under delivered. Last time I heard, they were not doing well in their business.
So, Jeanette, you are right, quality deserves to be paid. If you are involved, I know it will be quality.
Thank you, Cynthia! I appreciate the compliment. I’ve worked many years to be sure that that expectation is met repeatedly.
I agree – it’s quality for the price. And I understand that sometimes our customers can’t afford the quality solution and have to take the low-priced version. But WE must be willing to charge what our product is worth.
I always think of furniture stores. We all know the cut-rate places where the furniture looks pretty good, but may not last for more than a few years. And we also know the “quality” furniture stores with furniture that looks similar and lasts forever (or until you get tired of it).
The furniture stores have made a conscious effort to decide which category they fit – and then fulfill those expectations. We should do the same.
Thanks, as always, for stopping by to add your ideas.