Pricing Digital Products

7 Strategies For Pricing Digital Products

Have you got strategies in place for pricing digital products or are you just shooting in the dark. Price points are important, but you must have structure in place.

Hi Trish Davies here again and I want to talk about something that has always driven me. That is money and generating as much as possible. Payment notifications are the icing on the cake to all the hard work you put into creating an online business.

It doesn’t matter whether it’s an email, text or those funny cash register sound on your phone. As long as you are making regular sales in your business that is what it’s all about.

Saying that though if you have the mindset of chasing money then those notifications will be slow. One thing that I have realised over the years is that you must put purpose before profit. That purpose is to serve your audience in the best way you can.

There is a simple formula to follow when it comes to creating monetary transactions. That is to simply add value to your audience. The more value you provide the more money you will receive in return. Always have that in the forefront of your mind.

Now you have landed on this webpage because you want some help on pricing digital products. What I going to share is 7 strategies to pricing digital products to help you get as many payment notifications as possible.

Before I do that let’s just take a few moments to define what digital products are.

What Are Digital Products? 

Digital products can be created very easily using many of the features you have on your device. They are inexpensive to create and fulfil when people purchase them. Therefore, profit margins are very high as opposed to physical products because of all the overheads involved.

Digital products can be downloaded or accessed instantly after payment has been received. This gives instant gratification to the purchaser as opposed to waiting days for a delivery. Therefore, the purchaser has a great user experience which epitomises what I said earlier regarding serving your audience.

Types Of Digital Products 

When is comes to digital products you are only limited to your imagination. Below are some of the most popular digital products that you can create and sell for huge profit margins.

• eBooks
• Video
• Audio
• Photographs
• Music
• Tutorials & Guides
• Software
• Apps
• Podcasts
• Tools, Resources & Calculators
• Online Courses
• Coaching Packages
• One On One Online Consultation

That really is scratching the surface, but they all provide a service and solution for your audience. You will know your business makeup and which ones fit nicely into your business model.

Build Your AU is a program that helps individuals create an online coaching business. As you can see the majority of this list can be applied to this business model. If this is something that you would like more information on then please click here.

The reality is that you can make a nice side, or fulltime income when you leverage digital products. Now let’s get back to the purpose for this post which is pricing digital products.

7 Strategies For Pricing Digital Products 

Hopefully you can see how potentially digital products can grow your business whether it is new or existing. Now it is all very well me saying how great digital products are the simple fact is you need to sell them.

Level of product quality is always a great barometer to whether a business is successful or not. The price is just as important and there are many different factors that go into pricing digital products.

Strategy #1 – Know Your Market & Price Competitively 

You must know the landscape of your industry. To do this you must research your competitors and define where they position themselves in the marketplace. The at the very least you must position yourself against your competition, you want to be on the playing field!

Build Your AU helps you create a personal brand which sets you apart from your competition. You can leverage your uniqueness and exclusivity sometimes to charge slightly more because of the unique value that you provide.

Strategy #2 – Consider Tiered Pricing 

Depending on your business model you may be able to offer a tiered pricing strategy. For example, offer a Bronze, Silver or Gold package . Now for this strategy to work you must demonstrate the difference between each package.

Many companies do this to great effect on when they show a comparison grid on the webpage. The grid system works very well because you have all the features and benefits listed on the left hand side.

Then working across the grid from left to right you can checkmark what is included in each package. This is a perfect way to show the value you are providing in relation to the price that someone will pay.

Strategy #3 – Offer A Free Trial 

Now this again depends on which business model you have but free trials are a great motivator. Typically, free trials last for 7, 14, 21 or 30 days. My advice is that you collect the credit card details at the front end which then kicks in when the free rial ends.

Also have an email messaging system in place that makes the customer aware when your free trial ends. What happens here is that you send notifications leading up to the date the free trial ends.

Maybe consider offering an incentive to sweeten the deal. Offer a bonus product or service if the customer conforms their payment before the free trial ends.

Strategy #4 – Visual Pricing Psychology 

Your product or service will have a price tag attached. However, you can play some mind games when it come to pricing digital products. You want to build the perception that the person is receiving a bargain.

For example, you may have digital products which you feel are valued at $100, $200 or $500. Instead of marking them up at those prices consider bringing them down just under each threshold.

Therefore, pricing them at $99, $199 or $499. It may be only a slight reduction but when people are in the purchase decision stage it could make all the difference. Psychologically they think they are getting a bargain.

Strategy #5 – Offer A Bonus

Digital entrepreneurs do this a lot because it creates a bigger perceived value in the eyes of the customer. When you adopt this strategy think of it as though you are building an offer, some people refer to it as an offer stack.

Here you have you main core product, but you add in other products and services that are relevant to the core offer. They add more value which is what you customer is looking for.

Now it is up to you how many bonuses you offer to build up that perceived value. One word of caution is don’t throw everything you have because it can make you seem desperate.

Look at what high quality bonuses you have that compliment the core offer. Give them away for free, you only charge for the core offer at the current retail price. The objective here is to make an irresistible offer, something your potential customer simply can’t refuse.

Strategy #7 – Offer A Money Back Guarantee 

What you must understand is that all customers have objections to making a purchase. Some more than others  admittedly but a money back guarantee removes the last objective anyone may have.

It goes without saying that your digital products must be of a high quality. If you have belief and trust in your products then back it up with a long guarantee. The biproduct of this is that you will get a very small percentage of refunds. Quality always prevails.

Long money back guarantees give the customer peace of mind, and they develop trust in you.

Strategy #7 – Test, Test & Keep Testing 

Everything I have shared with you works but there is not a one size fits all pricing strategy for digital products. Get creative with your marketing, your offer, your price points.

Mix and match advertising material, know who your customer is, add more perceived value. Eventually you will find the winning formula for your products and services which will generate more leads and more sales.

Hopefully you have more clarity on pricing digital products and ideas on what packages you can create. The Build Your AU program helps you create irresistible offers for your audience so please check out my free 9-step program by clicking here.

Helping you build your authenticity, authority and audience.

Trish Davies

Build Your AU