Three Strategies For Selling Digital Products or Services

How do you price your product or service? Do you know the best strategy for pricing your products?

There are several pricing strategies that can be effective, but the key to finding the best one for your business is understanding your overall strategy. Once you have a clear understanding of your business plan, you will be able to determine the most appropriate pricing strategy for your products.

This post is here to help you get started with the most common strategies. It doesn't cover every single strategy, but it does give you a solid foundation to build upon.

By following the strategies outlined in this post, you can gain a better understanding of the fundamental principles and techniques that are crucial to success. From there, you can customize and adapt these strategies to fit your own goals.

Remember, the key to success is to start small and build upon what you learn. Don't try to implement every strategy all at once, but instead, focus on mastering one or two tactics at a time. As you become more comfortable with these techniques, you can gradually add new ones.

Let’s start with the following three seller examples.

Seller 1: Alex

Let's say there's a seller named Alex.

Alex's business strategy is all about creating and selling a bunch of products to bring in revenue from frequent sales. He's not so much interested in big profit margins but rather in making as many sales as possible. Basically, Alex loves creating lots of different products, putting them out there in the market, and then getting right back to creating more. He's counting on making tons of sales by offering a wide variety of products.

Alex's best pricing strategy is to set his product prices at or near the market value. This way, he can attract more buyers and maximize his sales volume. It's important for Alex not to overprice his products because his success lies in the high volume of sales rather than high-profit margins.

This strategy allows Alex to continue growing his business by loading up his inventory. Since he has the creativity to produce, he feels this is the best option for him.

Seller 2: Bob

Bob takes a different approach. He wants to sell subscriptions for his newsletter, service, podcast, and more. Bob creates a moderate amount of content each week around his niche, which he believes he can charge for based on his knowledge and experience. His goal is to convince people that his content or service is valuable and worth the cost.

So, Bob's strategy is to offer free products like lead magnets and free trials to allow potential customers to try out his service. Bob is willing to give away some of his content for free in exchange for generating recurring revenue. He is confident in the quality of what he provides.

Bob relies on generating regular income. Therefore, his best strategy is to offer low-cost or free products to attract paying subscribers. Since Bob aims for a monthly recurring revenue (MRR) model, he knows that the challenge lies in getting people to subscribe. Hence, Bob provides high-value lead magnets such as e-books, templates, free episodes, or free trials. He might even offer a simplified version of his paid newsletter so that readers can determine if it provides the information they’re looking for.

This strategy lets Bob create a handful of free products that help convert his audience into paying subscribers. This also allows Bob to focus on his weekly content.

Seller 3: Charly

Charly spends a lot of time creating valuable products. Charly doesn’t create many products, but when he does, they're among the best on the market. He aims to solve larger problems requiring much more research and time. But Charly knows there is not a lot of competition at the level that he works in.

Charly's strategy is to set prices higher than the market because his products are far more valuable than most others. So, Charly doesn’t bank on too many sales, but his sales do have high-profit margins.

Therefore, Charly's best strategy is to create exceptional products so he can charge more for them. This way, Charly can ensure that the products reflect their actual value and deliver a premium experience to customers.

Charly's best strategy is to invest time in crafting premium products for premium prices.

Know Your Strategy

There are other factors to consider when pricing your products/services. Once you have the strategy in play, then you still have to consider things like

• Saturation

• Complexity

• Competition

• Market demand

• Level of pain point solved

among a few others.

You don’t have to limit yourself to just one strategy. Having multiple strategies becomes more complex, but it can also be rewarding. Knowing your business strategy is key when figuring out how to price your products/services.

Just make sure you at least have a strategy.

There are plenty more strategies you can implement, I just provided you with three examples. There are some simple ones and complex ones, but most of them derive from these three here.