UN·DER·PRICE:

1. To price lower than the real, normal, or APPROPRIATE
     value. (Source: The American Heritage® Dictionary of
     the English Language, 4th Ed.)

Ugh. Doesn't sound very appealing, does it? I mean, who REALLY wants to be thought of as being worth "less than is appropriate?"

When you price your products lower than "normal," you're automatically introducing *yet another hurdle* for the consumer to overcome.

The "why-the-*!#^#%$^-is-this-so-cheap-there-must-be-something-WRONG-with-it!!?!" defense.

Sound familiar? ;-)

But, as we all know, there are two sides to every story.

Like all else, the issue of pricing just can't be explained away in only one argument. So even though I'm totally partial to pricing for what you're worth, there ARE *some* benefits in pricing your products low.

Here are my top four:

1. To build up a large customer base by overdelivering like crazy, then backending them with higher priced wares.

Think Ken Evoy of MYSS (Make Your Site Sell: $17) fame on this one.

The plan was to offer so much value in that first cheap product, existing customers would be falling over themselves to buy the next product in line -- at *any* price -- whether they were cheapskates at heart, or not.

The plan sounds good, but in my opinion, there are too many "flaws" and variables.

First, you still end up with a customer base *largely* made up of cheapskates.

Second, this option just may not be feasible -- or effective -- for you if you don't have the money or manpower to launch a massive promotional blitz.

Ken had THOUSANDS of affiliates and lots of established JV partners to help him out. A lot of whom played a major part in his financial and "branding" successes.

Third, and perhaps most importantly, you can still achieve this goal WITHOUT shortchanging yourself in the process. How? By creating a medium-priced product (say, $47 to 97 or so) to offer on the front end, then backending a $197-$297+ product, for instance.

The same result, but you're playin' it much safer. (And likely increasing your cash flow on the front end.)

2. May be easier to convert first-time visitors.

As you well know, it's lots easier for most folks to buy a low or moderately priced product than a high-end one on the first visit to a website (unless you're selling computers and the like, I'd assume. But even then, I'd expect first-time visitor conversion rates to be similar).

So if you can offer your product at a price that doesn't get your impulse buyers to question their judgment ... that's a good thing.

Even so, you could always combat this -- at least to some degree -- by splitting the cost of a higher end product into payments.

3. To build your brand (and reputation) quickly and increase exposure *lightning fast*, making it all the more likely you'll be considered an expert in your field.

Let's use Ken Evoy as the guinea pig here, too. (Sorry, Ken! :-)

As you know, the more publicity and exposure you get, if you present yourself right and get *most* of your facts straight ... the more people come to think of you as an expert (whether you know your stuff or not).

Yes, Ken got lots of exposure in the beginning, and still gets steady exposure now, I'd say. But as far as branding himself as one of the TOP players online ... DID IT WORK?

When you think of Internet marketing's major players, does his name spring immediately to mind?

It doesn't for me.

Not even in the top 10.

Although, that could just be because I'm not usually in the market for products in his niche. Either that, or it could just be because that's the way it is. After all, I never got my own copy of MYSS. (Oh wait ... I think I did. From a relentless affiliate. ;-) It's that I never got THROUGH it.)

Anyway, you might feel differently about his status in the marketplace -- but HOWEVER you feel, take those feelings into account when deciding if this point is a plausible reason for pricing YOUR product(s) low.

4. To get steady income -- or ANY income -- coming in FAST.

Normally, it's loads easier to create a small product. Just throw together a related panel of experts for an hour long teleseminar, draft an outline for a special report, or create a quick, fill-in-the blanks software app if you're a programmer -- then you're good to go.

If you're experiencing an emergency and you need money FAST, this option could be the way to go. Heck, it might be the only way you CAN go.

Sure -- the product might not be your BEST work (or even related to your niche), but if it means the difference between keeping your lights on, or heating up cans of soup on the car engine ... I'm sure you'd choose the obvious.

NOTE: IF you have a choice, I don't recommend doing this for a first product. If prospects and customers remember your *ENTRY into the marketplace* being a cheap product, you could be creating lots of re-branding issues down the line as you try to up your prices.