Sometimes the Payment Is Further Down the Road
Sometimes the Payment Is Further Down the Road
These are three of my favorite stories that illustrate this life and business lesson.
- James Cameron was broke and living in his car when he wrote the script for The Terminator. He sold it to the movie's producer Gail Anne Hurd for $1, with the condition that he would direct the movie.
- Sticking with the sci-fi theme, the producers of Star Wars were a bit short of cash. Alec Guinness accepted a cut in pay in exchange for a share of the profits.
- Bill Gates turned down a 1-off payment from IBM for MS-DOS, the operating system Microsoft created for the new IBM PC, in exchange for licensing it to them but retaining the intellectual rights. As a result, every PC manufacturer ended up licensing MS-DOS as their operating system, until Microsoft became a larger and more powerful IT player than IBM itself.
In each of these case, as we all know "the rest is history".
Sometimes, we have to do the same thing.
Here's a for example.
I'm creating a training course that I plan to sell for $997.
No one is going to pay that sort of money just by landing on a page that basically says "Buy this, it's great".
No, I have to use a Lead Magnet to get people to register their (possible) interest.
I have to send them a series of emails that gains their trust by sending them free content that keeps assuring them that I know what I'm talking about and that enrolling in the training course will take them on a journey that will achieve their desire.
And I need to launch the course with a series of emails and video presentations that tap into reciprocity, authority and scarcity to guide them into a purchase.
But I have to get them to land on the Lead Magnet landing page first.
Which requires an investment:
Of time, into blog posts and SEO as taught here on Wealthy Affiliate and
Of money, via Facebook, Google, Bing and Pinterest ads.
But if I get 100 people on the course, I make around $100,000 (a bit less in USD, somewhat more in AUD, which is what really matters to me).
And I'll make more the next time I (re)launch it!
So yes, sometimes you have to look at the returns that you can make further down the track.
Recent Comments
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This is encouraging. I am just starting out and would like to make enough to quit my job and supplement the household income. I've just been worried that it won't happen. I've tried so many other things that haven't worked out.Good luck with selling your course. I'm sure you'll do just fine.
Thank you for this reminder. I am almost 4 months in and although no sales yet I am seeing growth in the number of people visiting my website, social media pages and affiliate links. It's a journey.
That is amazing that you are creating products that can help others. I believe in charging your worth and you will attract people who have that growth mindset and further see the value in what you are offering. Yayy and go for it!
Pricing is always a balancing act. 10 people at $97 gives me the same return as 1 person at $970, but the course covers 12 weeks and is meant to be life changing. I believe the person who's committed a substantial amount is much more likely to complete the course and make the lifestyle change.
What I might do is offer a $97 a week payment plan to those on my list who don't purchase initially.
Great post and examples, Phil! I didn't know about James Cameron, what a success story HE became!
I completely agree. Just like the investments I recently made in paying a graphic designer to create/alter some images for my humorous t-shirt line. I'm taking a gamble that my ideas will sell down the road and that my investment(s) will eventually pay off. But there is always the chance that my ideas wont sell and investments lost, but I believe in my ideas, have conducted some public opinion research, and am willing to take the risk BECAUSE I believe in those ideas.
Kevin
Here is something to consider striking a balance. If the value of a product or service is right, no matter the amount, the potential customer will either buy it or will not. However, the seller can also give a discounted price for a period of time, thus affording those with lower income an opportunity to buy as well and then revert to the intended price. There are a variety of price strategies which can be worked on. One important thing is to have the RIGHT PRICE at the RIGHT TIME for the RIGHT TARGET AUDIENCE. In practice, this is easier said than done. Usually, some experimentation is needed.
Thanks Phil. I trust you my little contribution will help you find the right strategy and that at that time customers will reckon that THE PRICE IS RIGHT by your sales results.
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Hey Phil,
I am just curious about your 12 week course... You said it is life changing... in what way.., or what is the course teaching and how are you teaching it?
I am asking because I have been thinking of creating a course of some sort in my niche but I have not the first clue about how to create it. Like how long should it be... What sort of platform is best or what is the best delivery method to make it life changing... Is there personal interaction directly between you and the student? How do you determine if students are getting the amount of value out of it that you put into it?
I have all sorts of questions and curiosity about this! Do you mind explaining it a little better for me? Just to let you know that I understand time is very valuable, w want you to know that I appreciate any time you might spend in helping me out and I promise to pay it forward!! Also, I intend to use the information given wisely and not waste it lol!
Looking Forward to Your Reply~
Stacey B.
Hi Stacey,
The course is in the weight loss, health and fitness niche. Its aim is to help people achieve their ideal weight and fitness level, accompanied by a lifestyle change that will empower them to continue to maintain their new selves. In that sense, it's life-changing.
The course will consist of a program of diet and exercise for each day of the 12 week period and will be delivered by online video and downloadable resources. I'm also considering a weekly Zoom call to foster a self-help community.
The course will be hosted on my Happy, Fit and Slim website, using the Thrive Apprentice plugin, which is part of the Thrive Suite.
It will be fairly expensive, as I want people to make a commitment that will increase the probability that they will see it through.
You are welcome to ask any questions you want on any aspect of this.