Would You Pay $20 For A Single Bottle Of Beer?

Last Update: September 03, 2019

In a previous post, I highlighted the idea that you can make awesome money from small commissions. The tiny $1 recurring commission ballooned to $1500 monthly passive income in about two years.

However, there's another concept to consider. This took me a long time to learn. Even though people told it to me, it didn't really sink in until I looked at my own purchasing habits.

What's the concept?

People Have Money To Spend!

Surprise surprise, people have money, and they like to spend it.

Especially as a newbie affiliate marketing, I felt like it was my job to highlight the cheapest item available. The quality of the product was like a secondary consideration after the price. Is it the cheapest? Wow, then it's the best deal!

I thought that this was how I shopped, so I figured I'd "help people" by showing them the cheapest option.

What I didn't realize at the time is that I don't always go with the cheapest option. What's more, many times I pick the more expensive option because of how I perceive VALUE.

What Is Value And How Does It Affect Your Conversions?

The concept of value is very interesting.

You can look at two items, at different price points, and see value in very different ways.

For example, let's look at two different mountain bikes. One costs $2,000, and one costs $100. Very different products, right? Which one has the best value?


The answer is, it depends.

Let's say, I go mountain biking every weekend. I push hard. I sweat. I run my bike to its full extent. In fact, I ride so fast and hard that I care about things like:

  • optimal speed
  • safet features
  • matrial durability

My life might depend on it! Because I have a job, and my main hobby is to go mountain biking on the weekend, it's really not that big of a deal to spend $2,000, as long as the bike is going to last. In fact, I'd rather spend the one-time fee and get something good rather than needing to upgrade next year, and the next, and so on.

The $2,000 bike is obviously the best choice!

Here's a second scenario though.

I want to lose weight, but hate running. Maybe biking is my thing, and it sounds pretty fun to go for a ride in the forest. I think I'll get a mountain bike and start exercising on the weekends. I don't want to fully commit a lot of money for something I'm just trying out, and I'm just riding the trails, not training for the Olympics.

Here are some of my prioritities:

  • inexpensive
  • looks cool
  • delivered by the weekend

In my case, the cheap mountain bike from Amazon is basically what I'm looking for. I definitely see more value in the $100 product.

Which one should you promote on your website? You need to look to your specific audience to make that choice. You can also direct people within your content.

$20 For A Bottle Of Beer?

Most people think I'm crazy for liking IPAs. They like beer like Coors Lite. The idea of me paying $20 for a single bottle of beer instead of a 30-pack is just unthinkable.

In my mind, it totally makes sense though. Why?

  • more flavor
  • unique ingredients
  • new beer I've never tasted
  • story behind the beer
  • learn about a new brewery
  • helps me improve my own home brewing skills
  • improved my tasting skills good for Cicerone exam
  • visually appealing bottle
  • bragging rights
  • flavor and aroma discussion with friends

As far as I see it, the only benefit of drinking a Coors Lite is:

  • get drunk

Of course, a different type of beer consumer could probably list 50 things they don't like about craft beer.

The point is, are craft breweries deceiving me? Are they causing me harm by selling me a very expensive bottle of beer? No. They are giving me exactly what I want!

Stop "Convincing" People

A mindset shift that I'm working on is to stop convincing people to spend money. During a lot of my beginner years in affiliate marketing, I thought of an affiliate promotion as a kind of battle. People had a tight fist closed around their dollars, and I had to pry it from their hands using sensational claims, or clever wording.

Nowdays, I try to look at an affiliate promotion as a kind of guidance. People want to spend money, but they also want to be confident in their decision. Buyer's remorse is a terrible feeling!

However, when you spend money on something that you are excited to buy, and it meets your expectations, it's a great feeling. I bought a new truck in 2015 and I had to drop $34k on it. I enjoy that thing every day, I'm still really happy with that purchase decision.

I'm not $34k poorer. I'm one truck richer!

My advice? Think back to your recent purchase decisions and how you felt about them. Doing that has really changed how I write content and how I view my site as a true opportunity to help people.

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Suzay Premium
Nathaniel,
learned a lot from this post and enjoyed it very much! You are an excellent writer and have learned your skills well.
Cicerone vs. Adolph Coors, Real Mountain. bike vs. Walmart Wonder if it'll Break, with you on it... Getting by vs. treat yourself with something you love and enjoy, so you desire to reach and do more that you desire and enjoy and rock this world.
Hot stuff starts with an N! I'm recommending to a few people who desire more than to just fog a mirror, including myself.
Thank you, Suzay
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boomergp08 Premium
I think $12.50 was the most I paid for a bottle of Dogfish Head 120 Minute IPA. What $20 bottle did you have? LOL Coors Lite is NOT beer! It's flavored water with a wee bit of alcohol.

At every NY Giants tailgate parties it is tradition that we only bring / drink craft beers and select quality imports. We have been called snobbish, but we always get visitors asking to try our ales..

The ales pair well with all of the steak, ribs, pork loin, salmon, venison chili, fried turkey and other high class food. Sometimes we have a sushi platter. No hamburgers or hot dogs allowed.

Another tradition we have is that everyone who brings a charcoal grill, we normally have two and a gas grill, the charcoal grill owner brings a tall can of Coors Lite to dowse the hot coals before we go into the game.
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cld111 Premium
My son is a mountain biker and he would say the $6000 bike is the best! lol

But you're absolutely right. He had a nice bike that was about $1900. He upgraded to one that's over $2500. It sounds crazy. And it was to us at first too since we paid. (Eek.)

However, the differences are huge, and he performs so much better on the pricier bike because it's just better.

So to him, that is a much better value. Better performance, and it'll last much longer too.

Great thoughts!

- Christina

P.S. I keep thinking of getting into the mountain biking niche because there is so much money to be had in it. I know from personal experience. (Eek again.)
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SaraPoyner Premium
Great post! As you say who are we to judge what someone spends their money on? Our perception of cost and value will be very different to another. I am happy to spend extra for good quality and 'lastability'. Also I value ethics and sustainability, so I am more than happy to pay sometimes double or triple for something that is natural, sustainable or organic, whereas many of my friends look at me like I am crazy.

Just as readers sometimes buy products we have criticised. The key is offer choice and leave it up to the reader to decide.
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nathaniell Premium
Organic food is another great example. I always avoid the organic section because I don't see value in that, but every store has a section like that, because many people do.
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Helfrink1989 Premium
There is a market for luxury foods, including expensive beer. Actually, cheaper domestic and common imported beer cater to a different market than $20 craft beer.

Because ImBev/A&B, MillerCoors and Heineken already has the cheap beer for the "Joe Sixpack" at-quitting-time market taken care of, an affiliate marketer would probably do much better selling expensive gourmet beer to more discriminating customers who have a lot of money on them.
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YanFellow Premium
Coors - yeuck!
:-)

You in the US? We get craft and IPAs for not much more that a Coors but you can spend a lot more on certain brews if you want. Don't think I've seen one for $20 tho :-)

Anyway, great adrticle. It basically comes down to helping rather than selling.
Great way to look at value.
Ian
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nathaniell Premium
Yeah, I'm in the US. Definitely can get an inexpensive IPA, but some of those triple IPAs or imperial stouts really are quite expensive!
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YanFellow Premium
I'm gonna look for expensive IPAs now :-)
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DaliborT Premium
Excellent article! I've heard about this before, that people want to spend money, but in a different kind of way. It was for more aggressive marketing. But I totally agree with you: give the people exactly what they want.

Regarding your bikes example: would it be good practice that you do a review of both products? Or maybe even comparing them in same article and point out the benefits of both? That way the article would be covering both offers
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nathaniell Premium
It really depends on your audience. If your audience is full-on hobbyists and professionals, then I wouldn't bother with reviewing the cheap bike.

If my audience was parents going out with their kids, I would still review the expensive one. You know how dads get, wanting to spend money on toys LOL
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KenShaddock Premium
Thank you Nathaniell. We tend to promote or buy on our shallow values. Takes thought to make the journey to higher cost and its value.
People do want to spend and their desires are what we need to match up with in promoting anything.
Takes effort to get out of your own head I believe.
Ken
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nathaniell Premium
People will be happy spending money if the product is good!
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skmorrow Premium
I have my eye on a new full suspension mountain bike and yes, I will be very happy when I finally get my hands on it.

$20 for a beer? Have you been to a ballpark lately, it's easy to spend that much.

Glad to hear you are happy with your truck, I just sold mine and can't wait to buy another one soon.
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nathaniell Premium
Oh ya - forgot about beers at stadium events. Ridiculous. No wonder people try to sneak in alcohol.
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YumaBloggers Premium
Jim Rohn sums this up perfectly in his tale of a teacher. He was going to college and was angry one day because the cost of the things he wanted in life was so damned high. The professor asked him if the problem was that the items were too expensive or just that he couldn't afford them? It changed Jim's thinking about money and value.
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nathaniell Premium
Absolutely Andy!
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NWTDennis Premium
Well I'm not really much of a beer drinker, especially IPAs which taste very bitter to me. But no worry ... I live in the wine country.

Have you ever tried Pliny the elder Nathaniell? I don't think it's $20 a bottle, but I'm really not sure. Right here in wine country we have a craft brewery that makes a single batch (a large batch) of Pliny The Elder IPA every year.

Beer lovers line up around the block and wait in line over night for the release of that annual batch. Admittedly I don't get it, but then I'm a Bud Light kind of guy when I want a cool one. :-)
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nathaniell Premium
Huge fan of Pliney the Elder. Bought a case just a couple weeks ago. I'm not too far from you. I'm about 3 hours from Santa Rosa.

The lines you're thinking of is probably for Pliney the Younger actually. That's the seasonal release which is super hard to get! I've never had the time or energy to stand in line for it though!
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NWTDennis Premium
Oops ... got my Plineys a little mixed up. :-) It would be worth the trip some time, not to stand in line, but to try some Pliney the Younger. Then you could go wine tasting ... ha, ha,ha.
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AlexEvans Premium
Classic, I know a guy who collects bottles of red and is just getting into collecting beers, his pride and joy is this ancient bottle of unopened Guinness, his wife thinks he is barking mad.

He thinks he got the bargin of the century.

The value is in our purpose of use.

The hardest struggle can be to shift out of our own head space and view the world as others see it.

Thanks for giving me some thought fodder.
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nathaniell Premium
Wish him luck with his beer collection! I'd love to have a beer cellar some day. Would be an interesting construction project.
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ExpatMark Premium
Great post Nathaniel. So many good points to consider when writing our reviews especially. In my niche, I would not pitch home gyms to workout newbies. I would not pitch weight-loss supplements to endurance athletes. I would not pitch weight gain supplements to obese people.

You are so right, people work hard to have money because they like spending money. We all put more value into individual things we enjoy.

What did that Roman dude in the toga say? "To each his own".

I would not pay $34K for a truck, but I did pay $50K for a Mercedes that is ready for the Autobahn. All I would do with a truck is carry ice and $20 beers in it anyway.

Thanks for your always insightful and bookmarkable(is that a word) blogs.

Make a living, spend a lot of money, make a difference.
Mark
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nathaniell Premium
People spend crazy amounts of money. I'm pretty frugal, and am constantly surprised at how my friends spend money.

It's hard to remember that not everyone is as frugal as me (except when it comes to beer, obviously).

The Mercedes vs truck thing is a perfect example of how each person sees "value" in different ways.
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dylanrieger Premium
Same thing happened to me. The post that brought me the most money was a product that cost $400 that I never in a million years thought someone would buy. I debated not writing it and then finally decided to just do it.

It exploded and later created an entire niche around it.
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nathaniell Premium
Ha. Glad it worked out for you man. Now you just gotta do that 1000x more, and you'll have it made ;)
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YumaBloggers Premium
People pay $75 for a glass of champagne or $120 for a glass of wine every single day so hell yeah.
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nathaniell Premium
Wow, and I thought I was bad! LOL.
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mstewardit Premium
Excellent point of view. This is a belief that I have tried to pass on to many of my staff over the years. I get quite worked up when we employ a buyer who just thinks "GET IT CHEAPER" value can be found in any product or service. It is a point of view. I like to Mountain bike over here in the UK. That is what my niche is about. I have been giving honest reviews on bikes and accessories. Great Post .

Thanks

Mark
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nathaniell Premium
Good luck with your mountain bike site Mark!
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EddySalomon Premium
I am so glad you wrote this. I have struggled with this mentality as well with my own business. And its only of recent where I'm started to change the mentality.

People dictate what is valuable and what they're willing to pay for and how much. Our job as affiliates is to give them all the legit options and let them decide for themselves what is best.

For years I've purposely avoided promoting things that are considered "high ticket" because I just assumed people can't afford or don't want to invest that type of money.

But I was projecting my own biases instead of giving people the legit options and letting them decide. And I know I've left a lot of money on the table because of this mentality. And I probably robbed my visitors of other choices that may be a better fit for them.

So this article really speaks to me and provides another perspective when people bash the idea of promoting things that they may perceive as being too expensive.

Everyone has things they are willing to spend more money on then others depending on their perception of value.

As affiliates we need to keep our own biases and assumptions in check and provide people with all the legit options that may help them.

And the key there is providing LEGIT options. Something doesn't loose legitimacy because you wouldn't pay that amount. So you have to be objective when thinking about this. Thanks for another insightful and objective post!
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nathaniell Premium
You are right that it's really hard to get away from our own biases in our writing. There's an advantage to that - it's our own voice - but at the same time we could be losing sales because we think we're right.

It's hard to keep a balance of having a strong opinion that people follow, but also allowing room for understanding that other people may resonate better with a different product than we have chosen as "best".

Great points Eddy! You always have some interesting insight.
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EddySalomon Premium
Agreed. My biases are helpful in some ways with my audience and in other ways they aren't. So you're right that we have to find balance. And I think the best way to do that sometimes is to test by putting things out there and let your audience decide.

Thanks again for the great post!
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Bald Eagle Premium
Excellent post Nathaneill.
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nathaniell Premium
Thanks Lawrence!
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TDomena Premium
I agree with your post. I look at my job as an affiliate as the person who compiles all of the data and makes the buying decision as easy as possible for the end user. I know when I make purchases, some are tough because the copywriting isn't that great, I feel like details are missing about the product, or I'm uncertain it will achieve my goal.

I personally am turned off by hype, clever claims, or feeling too directed towards a product or service. I like to hear all the details and make a decision based on my buying motives. I don't want a motive pushed on me.

It's kind of frustrating to make a buying decision without all of the info clearly laid out. Sometimes, I don't buy because I'm too nervous about taking the risk. If there were more affiliates who presented sound information and made that buying decision as easy as possible, then I'd make more online purchases: cheap and expensive ones.

Alot of times, people make the expensive buying decisions in a store because the information isn't laid out clear enough online. As affiliates, I think we need to make their online experience as parallel to a top-of-the-line physical experience as possible and we'll have great conversions.
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nathaniell Premium
You make another excellent point - that we as affiliates often drop the ball by not providing enough information, or the right kind of information. I catch myself saying, "Why won't people buy Product X", and the reality is, it's my fault! I'm not doing my job right.

There's always a lot to learn in the world of affiliate marketing, and you have to look internally to find what those improvements can be.
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TDomena Premium
I agree we have to look internally. I’ve seen many of your posts though and you do a great job.
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Feochadan Premium
VERY good points. Often we highlight the free part of Wealthy Affiliates rather than the value of premium membership. Its all in the perception of value!
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nathaniell Premium
Exactly! Focus on an enthusiastic audience, who wants to pay for a good product.
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texasprinces Premium
great points! Thank you!
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nathaniell Premium
Thanks for reading Alisha!
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emekaejiogu Premium
great content nathaniell! well done
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nathaniell Premium
Thanks for reading Emeka!
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Richard153 Premium
I could not have said it better. I totally agree. I am new, 3 weeks into this and I still need to be reminded of what you said. I appreciate you. Thanks.
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nathaniell Premium
Nothing wrong with a little reminder :) Even I need to be reminded sometimes!
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