My ‘Stupid’ Marketing Idea That Led to a $25,000,000 Launch

        Imagine being able to pull one tiny lever in your business today that could skyrocket your conversions by tomorrow. When I tell you what this is, you're probably going to think that I'm cuckoo clock, just like everyone in the room in the Cayman Islands thought I was insane. But this one move led to a $25 million launch, and it goes against everything you've been taught about pricing and conversions. So, if you're ready to challenge what you think you already know about selling, smash that like button, subscribe for more money-making wisdom like this. And let me take you back in time to 2015, Cayman Islands, beautiful weather, crystal blue water, and I'm sitting on the beach with every other top affiliate in the internet marketing space at the time. And we're all there because Jason and Matt, the guys behind the amazing selling machine, are about to launch their program now for the fifth time in three years. Now, if you don't know what ASM is, it's a course that teaches people how to build private label Amazon business. And it's been wildly successful. And these guys are smart. They know that the key to a massive launch is getting affiliates on board early. So, they fly us all out to the Cayman Islands. They whine and they dine us. They show us the upgrades to the next launch, get us excited, and then they ask us this question. What can we do to make this launch better for you as affiliates? And most people on the beach are giving standard answers, different bonuses, different guarantees, more value, you know, the usual stuff. And then it's my turn. I say boldly, raise the price. And you could hear a pin drop. And I could see Jason and Matt looking at each other. Is this guy serious? See, in the internet marketing space, there was this unwritten rule at the time that when you're selling a course one to many, meaning you're not doing it on the phone, you're just selling a program, then the pricing selling is about $2,000. That's somehow the magic number. When you go above that, a conventional wisdom says that your conversions tank. And the course that they were planning on selling was already $3,500, which was way higher than every other course in the space at the time. And I was sitting there suggesting that they raise it even more to 5,000. Almost everybody thought that I was crazy. They're like, "Well, you're already at the high end. Uh, if we go to 5K, we're going to price oursel out of the market." And I get it. I understand where the fear comes from because the conventional wisdom made sense on the surface that higher prices equal fewer people can afford it equals fewer sales. Right? Wrong. And this is where most business owners get it completely backwards. And here's how I close these guys on the idea. I said, "Dudes, you've launched this thing four times already. This is the fifth launch. Let me ask you a question. Has the program gotten significantly better?" And they say, "Yes, of course, cuz we've done this, this, and this." I say, "Okay, so if the course is so much better than it was all four previous times, how are customers going to believe it's better if you've kept the price the same for the last 3 years?" And I went on to explain, "That's in congruent. If something gets better, the price should reflect it. If you tell me your course is better, but the price is the same. As a customer, I'm going to assume that you're lying or the improvements aren't really that significant." So, you can see the light bulb moment go off, but they're not still fully convinced. So, Jason says to me, he goes, "Okay, I see your point. So, we'll raise prices, our conversions will go down somewhat, but we'll net more money because we're making more per sale." And I said, "Uh-uh, that's probably not what's going to happen." I say, "When you raise your prices, one of three things can occur to your conversion rate. One, it can go down. Two, it can stay the same. Or three, it can actually go up." And here's what most people don't realize. Of those three options, it is more likely conversion rate will stay the same or go up than it is to go down. And I can speak of this because I've seen this happen across dozens of launches. And in fact, there's an 80% probability that your conversions will stay the same or improve when you raise your prices in these circumstances. So, let me explain the psychology here because this is super crucial. When you raise your prices, you're not just changing a number. You're changing the entire perception around your product. If I show you two bottles of wine and one cost $15 and the other $150, what do you assume is better? The $150 one, obviously. Now, if you blind taste test, you might not be able to tell the difference, but that's not the point. The point is that price communicates value. So when something costs more, we assume that it's worth more. I mean, this is basic human psychology here. And it works the same in business. When you price your program at the same level as everyone else, you're saying this is similar to everyone else. And when you price it higher than everyone else, you're saying this is a premium kind of product. And so the perception completely changes. And here's where it gets even more interesting. Higher prices attract better customers. The person who's willing to pay 5K for your course is more committed than the person who's only willing to pay 2K. They're more likely to actually go through it, consume it, implement it, learn from it, and get a result because of it. And when they get those results, those results became case studies, which then makes your marketing even more effective, which means you can then charge even more. It's a virtuous price loop. Lower prices on the other hand, they attract tire kickers, people who just want to try it out, people who are not really fully committed, and people who are more likely to ask for refunds. So, not only do you make less money per sale, but you're also dealing with more difficult customers. So, it's a negative feedback loop. So, here's what happened. These guys took my advice. They raised the price from 3500 to 5K. They did $25 million in launch. We referred 9.8 million from our promotion alone as an affiliate, which is still the biggest record in internet marketing history. And you know what happened to the conversion rate? It went up. It didn't stay the same or go down. It went up exactly like I thought it would because when they raised the price, it's not that they were just charging more. They were signaling that the best product on the market got even better. And we can justify that. And the people that were super serious about Amazon, they wanted the best. They didn't want the cheapest or they didn't want pretty good. They wanted the option that was going to give them the best chance of success. And they were willing to spend a little bit more for an increase in that rate of success. So here's my challenge to you. Stop underpricing yourself. I know it's scary. I know you think that if you raise your prices, you'll lose customer. But usually the opposite is true. Higher prices equal higher perceived value equals more buyers equals better customers. And if you're sitting there thinking, Jason, but my market is different. It isn't. This works in every market that I've tested it in. B2B, B toC, high ticket, low ticket, doesn't matter. The psychology is the same. So take a look at your pricing right now and ask yourself, am I undercharging because I'm afraid? The answer is yes. It's time to raise your prices and you can thank me later. Now, if you found value in this video, like and subscribe so you don't miss any future videos.