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?