There are two schools of thought on this. Now, the bottom line is this. It comes down to maximizing your earnings potential. Whether you charge $1 or $100 for it, it’s about maximizing your earnings potential.

The first school of thought is that you should raise your prices for a number of reasons. The first reason is that you don’t have to sell as many copies to make your maximum amount of income.

Another reason is that you can bid on higher priced keywords. Another reason is that your affiliates will make more money or you can give them a higher percentage of the sales. You can also have the higher perceived value effect.

The other school of thought is this. If you lower your prices, you can have some advantages. One is that your sales page doesn’t have to be as good because it won’t take as much convincing.

Another is that people might whip out their wallet quicker because it isn’t as much money to give up.  Plus the lower point allows you to build your mailing list quicker. Another is that you can upsell, after people buy your cheaper product.

To me, it’s all about what you want to accomplish. You have to figure out what your priorities are with this product and how you plan on promoting it.

Is your biggest priority building your mailing list?

Is it about making some quick money?

Are you more interested in the up-sell?

The way that you promote your product is also very important. If you are going to rely heavily on affiliates, then you better take that into consideration when you’re pricing.

You have to prioritize what your main priority is. After you figure that out, then you can start to figure out what price you want. You can take all of the information that I talked about, earlier in the article.

Of course, in the end it comes down to what you feel like the product is worth. If you don’t think it’s worth that much, then lower it. If you think it’s worth more, then raise the price. You’re the one making the decision, so in the end you have to make the decision yourself.

One thing that you can always do is test the price. That is my best advice for you and your situation. If you can’t settle on a price or if you want to find the best price, do some testing on your own.

© Neil-Harvey.com