Pricing Your Digital Product

"How much should I charge?"

This is the question that keeps most people stuck. Today, we're answering it.

THE PRICING PSYCHOLOGY

Most people underprice because they're afraid no one will buy.

But here's the truth: Price isn't about what you think you're worth. It's about the value you're delivering.

A $7 ebook and a $97 course can have the same content. The difference? Packaging, positioning, and perceived value.

THE VALUE LADDER

Think of pricing in tiers:

LOW TICKET ($7-$27)

  • Impulse buy, no-brainer price
  • Easy to sell, high volume
  • Good for lead generation

MID TICKET ($47-$197)

  • Requires some consideration
  • Sweet spot for most digital products
  • Balance of price and volume

HIGH TICKET ($297-$997+)

  • Premium positioning
  • Lower volume, higher profit per sale
  • Requires trust and proven results

Where should you price YOUR product?

Ask yourself:

  • How comprehensive is my product?
  • What transformation does it provide?
  • How much time/money does it save them?

A simple checklist? $7-$27. A detailed workbook with templates? $47-$97. A full course with video lessons? $197-$497. A coaching package? $997+.

THE PRICE-TO-VALUE RATIO

Your product should deliver 10x the value of its price.

If your product saves someone 10 hours of work, and their time is worth $25/hour, that's $250 in value. You could charge $97 and they'd still get a great deal.

If your product helps them make their first $1,000 online, it's worth $1,000+. You could charge $297.

Always think: "What's this worth to my customer?" not "What's my time worth?"

PRICING STRATEGIES

STRATEGY 1: COMPETITIVE PRICING Check what competitors charge. Price similarly or slightly higher/lower depending on your unique value.

STRATEGY 2: PREMIUM POSITIONING Price higher than competitors. Position as the premium option with superior quality/results.

STRATEGY 3: INTRODUCTORY PRICING Launch at a lower "beta price" to get initial sales and testimonials. Raise price later.

STRATEGY 4: TIERED PRICING Offer multiple price points:

  • Basic ($47): Just the ebook
  • Standard ($97): Ebook + templates
  • Premium ($147): Everything + bonus

This maximizes revenue by letting customers choose their level.

COMMON PRICING MISTAKES

MISTAKE 1: Pricing too low $7 products attract bargain hunters. $97 products attract serious buyers.

MISTAKE 2: Overthinking it Just pick a price and test. You can always adjust.

MISTAKE 3: Forgetting platform fees If you're selling on Gumroad/Teachable, they take 5-10%. Factor that in.

MISTAKE 4: Never raising prices Your first 100 customers can get a discount. After that, raise your price.

THE CONFIDENT PRICING FRAMEWORK

Stop asking "Is this too expensive?"

Start asking "Does this deliver $X in value?"

If your $97 product saves someone 5 hours of frustration, it's worth it. If your $197 course helps them make $1,000, it's worth it.

Price for the transformation, not the content.

YOUR ASSIGNMENT

Set your price. Write it down. Commit to it.

Then write your value statement:

"My [product] is priced at $[X] because it helps [customer] achieve [specific result], which is worth $[X] to them."

Example: "My meal planning guide is priced at $47 because it helps busy moms save 5+ hours per week, which is worth $500+ in time and stress reduction."

Own your pricing. Tomorrow: Competitor research and positioning.

LESSON 5: COMPETITOR RESEARCH & POSITIONING

Your competitors aren't your enemies. They're proof that your market exists.

Today, we're studying them to make your product better.

WHY COMPETITOR RESEARCH MATTERS

Competitors show you:

  • What's already working
  • What's missing in the market
  • How to differentiate yourself
  • What price points people pay

You're not copying them. You're learning from them and finding your unique angle.

HOW TO RESEARCH COMPETITORS

STEP 1: Find 5-10 competitors Search:

  • Etsy for physical/digital products
  • Gumroad for digital products
  • Amazon for ebooks/books
  • Instagram/TikTok for creators in your niche
  • Teachable/Thinkific for courses

Find products similar to yours.

STEP 2: Analyze their offers For each competitor, note:

  • What's their product?
  • How much do they charge?
  • What's included?
  • What do reviews say? (What do people love? What's missing?)
  • How do they market it? (Sales page, social media, emails)

STEP 3: Find the gaps Ask yourself:

  • What are customers complaining about?
  • What's not included that should be?
  • What's confusing or overwhelming?
  • What could be done better?

Those gaps are your opportunities.

DIFFERENTIATION STRATEGIES

You don't need to reinvent the wheel. You just need to make it YOUR wheel.

DIFFERENTIATION OPTION 1: Better targeting Generic: "Budgeting templates" Niched: "Budgeting templates for single moms"

DIFFERENTIATION OPTION 2: Better format Everyone has ebooks? Make yours a workbook with fill-in sections. Everyone has videos? Add printable quick-start guides.

DIFFERENTIATION OPTION 3: Better outcome Generic: "Learn social media" Specific: "Get your first 1,000 Instagram followers in 30 days"

DIFFERENTIATION OPTION 4: Better support Include email support, a private community, or bonus coaching calls.

DIFFERENTIATION OPTION 5: Your unique story You're the only YOU. Your experiences, voice, and perspective are unique.

Share your journey. People buy from people they connect with.

POSITIONING YOUR PRODUCT

Positioning = how you want customers to perceive you relative to competitors.

Are you:

  • The premium option? (Highest price, highest quality)
  • The beginner-friendly option? (Simplest, most accessible)
  • The comprehensive option? (Most complete, all-in-one)
  • The fast results option? (Quickest transformation)

Pick your positioning and own it.

EXAMPLE: POSITIONING IN ACTION

Let's say you're creating Instagram templates.

COMPETITOR A: $12, 30 templates, basic designs COMPETITOR B: $29, 50 templates, trendy designs COMPETITOR C: $47, 100 templates, custom branding guide

YOUR PRODUCT: $37, 50 templates designed specifically for health coaches, with caption prompts + hashtag lists included

You're not cheaper. You're more targeted and valuable to your specific niche.

YOUR ASSIGNMENT

Research 5 competitors. Fill out this framework for each:

  1. Product name: _______________
  2. Price: _______________
  3. What's included: _______________
  4. What customers love (check reviews): _______________
  5. What's missing: _______________

Then answer:

  • What makes MY product different?
  • What's my unique positioning?
  • Why would someone choose MY product over theirs?

Write it down. This is your competitive advantage.

NEXT WEEK: We start building! Week 3 is all about creation and production. Get ready to bring your product to life.

Lesson Summary

Here's the uncomfortable truth; having multiple income streams may sound appealing, but it's often the primary reason why many entrepreneurs fail. It's important to know when to focus and when to diversify to build an empire systematically:

  • Establish one business at a time over several years rather than all at once.
  • Focus first on building a solid foundation before diversifying.
  • Ensure your first income stream meets specific criteria before starting a second.

The "One Business First" Rule outlines five criteria that a business should meet before you consider diversifying:

  • Consistent Revenue
  • Systematized Operations
  • Predictable Client Acquisition
  • Time Efficiency
  • Mental Capacity

Common mistakes to avoid when considering multiple income streams include launching too many businesses simultaneously, diversifying too early for perceived security, and starting new businesses out of boredom. Instead, use a strategic diversification framework:

  • Complementary Services
  • Geographic/Market Expansion
  • Vertical Integration
  • Service to Product Transition

When ready to incorporate more income streams, prioritize based on Return on Investment and time investment. Ensure that side projects align with your primary business and set clear milestones before venturing into new income streams. Remember, patience and focus play key roles in building a successful empire.

Lesson Summary

"How much should I charge?" This question often leaves people stuck when setting prices for their products or services. To help answer this question and set appropriate prices, consider the following key points:

  • The Pricing Psychology:
    • Price based on the value delivered, not just personal worth.
    • Consider packaging, positioning, and perceived value to set prices effectively.
  • The Value Ladder:
    • Low Ticket ($7-$27): Easy impulse buys, good for lead generation.
    • Mid Ticket ($47-$197): Balanced price and volume for most digital products.
    • High Ticket ($297-$997+): Premium positioning, higher profit per sale.
  • The Price-to-Value Ratio:
    • Products should offer at least 10 times the value of their price.
    • Consider the transformation, time, or money saved to determine pricing.

Consider various Pricing Strategies such as competitive pricing, premium positioning, introductory pricing, and tiered pricing. Avoid common pricing mistakes like pricing too low or never raising prices. Build confidence in pricing by focusing on the value delivered and not solely on the cost.

  • The Confident Pricing Framework:
    • Focus on the value your product delivers to customers.
    • Set a price that aligns with the transformation your product offers.
  • Competitor Research & Positioning:
    • Competitors provide insights into what works, what's missing, and price points.
    • Analyze competitors to find gaps and develop differentiation strategies.
    • Position your product relative to competitors based on your unique strengths.

Remember to prioritize building one successful business at a time before diversifying. Focus on meeting specific criteria for success before expanding into multiple income streams. Utilize a strategic diversification framework to grow a successful empire systematically.

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