Discounts: An Overlooked Internet Marketing Tactic

Internet buyers LOVE discounts, yet most info marketers don’t use them nearly enough.

A case in point: on 4/9/09, we sent an e-mail to my list offering one of my e-books at the cover price of $79.

It generated 32 orders and $2,528 in revenues — not great, not bad.

Thursday of this week we sent the identical e-mail to the same list but added a P.S. offering the book at $49 — a $30 savings — if they ordered by midnight Sunday.

While orders are still coming in, we have already sold 155 copies at $49 each, generating $7,625 in revenues so far.

Does it bother me to let people have a $79 product for only $49?

Of course not. What’s important is not profit per sale, but profit per e-mail blast … which the discounting tactic will more than triple before the weekend is over.

P.S. Of course, discounting works with products where you have a large enough margin to sustain it — and in the case of e-books, the margin is close to 100%.

I wouldn’t do this with my own services, because discounting would lower my revenue per hour.

While my supply of e-books is limitless, time is not: you only have so many hours in the day to work, and when you work for less per hour, you are working harder to make less money.

Who wants that?


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