Monetization Playbook #9: Always consider 3 ways to sell the same product
Three ways to sell the same product
Digital products represent some of the highest margins of internet-based products. Once formulated, you can syndicate the same product at close to 80-90% gross margin.
A one-price strategy is a norm. However, the leading ideapreneurs are using two or three ways to sell the same product.
We simplify this into the vertical down, horizontal, vertical up VHV framework.
Vertical down - content
Horizontal - content + context
Vertical up - content + context + contact
So how does this work? Let's break down selling an educational info product.
Vertical down: The baseline product–will sell at the lowest price. This core content must deliver the product's value prop–so it represents excellent value for the purchaser and gives the seller some upgrade/upsell room.
Horizontal: The recommended product––could sell for 2X-5X the baseline price. Why? In addition to the content, you now offer context.
The addition of multiple mediums is a good MO for this paradigm.
For instance, additional packaging of videos, personal audio/podcasts, and other materials used in creating the book will add increased context to the user.
Vertical up: The premium product––sells for 10X plus the baseline. In addition to the contextual information, contact is thrown in.
Done at scale, this may involve group conference calls, community, and other member style interactions.
An exciting variant of this tranche is the emergent cohort-based courses and academies offered by the leading ideapreneurs.
To conclude, Jack Butcher says it perfectly. "Build Once, Sell Twice."