Ravens_Shadow
THE TRUTH IS OUT THERE
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WHAT'S YOUR HATER TO BUYER RATIO?
*I dislike the word hater, but it gets the point across.
Something I’ve learned when selling a product (software in my case): For every one person that publicly complains and denounces your pricing, value, licensing model, product usefulness, etc, hundreds of people will happily support you and pay you what your product or service is worth. There are people who complain about our pricing because it's $239.99 and it's a subscription. They think that they deserve to get our product for $10 at most or better yet, they want it for free. Similar to what @MJ DeMarco says about someones hate against him/his books not changing his reality, the vocal minority do not change our reality (how much money we're making).
At our pricing ($239.99) it takes 4,167 buyers to generate $1 million in revenue. We have a hater to buyer ratio of approximately 1:200. So for every 200 people that purchase, 1 person complains about our pricing or the fact that it's a subscription. So for every $1 million dollars we stand to make, roughly 21 people will complain about our pricing. Whether they buy or not we will have 200 happy customers to give us reasons why we're worth what we say we are. Is pricing your product higher, but creating 21 new haters worth it if it generates $1 million in revenue? You're damn right it is. People who hate on you and your products are inevitable anyway.
It’s hard to see potential users lashing out against your product that you've put so much effort into, but in the end it’s better to spend your energy talking to customers who easily see your value. If you have hundreds of sales for every one complaining person you’re doing great. If everyone is complaining and you have little to no sales, you need to rethink your strategy or your product offering.
THE GREAT FILTER.
Higher pricing is a filter that prevents you from getting low quality customers.
Say it with me: "Higher pricing is a filter that prevents me from getting customers that I do not want."
The people that are complaining about your pricing are the same exact customers that are making your life a nightmare when you're pricing your product too low. These are the customers that email you 15 times a week because they want you to spoon feed them the answers to all of their problems. They don't want to read documentation, they don't want to follow instructions, and they certainly won't stay subscribed with you for long. The return on your time investment is negative when dealing with these customers, so don't bother. Why would you fight these customers in long email chains just to make $20? F*ck that.
Price your products higher and increase your value skews to ensure that you can charge more. Apply the great filter to your business and enjoy dealing with less undesirable customers.
----------
Ensure that you’re providing immense value with your product, great customer support, and stand by your worth. It sucks to see people dissing your hard work, but it’s water under the bridge and it will not matter a week from now. You are going to get frustrated but it's something you need to learn to deal with.
So whats your hater to buyer ratio, and are you filtering out the customers that you don't want by pricing higher?
*I dislike the word hater, but it gets the point across.
Something I’ve learned when selling a product (software in my case): For every one person that publicly complains and denounces your pricing, value, licensing model, product usefulness, etc, hundreds of people will happily support you and pay you what your product or service is worth. There are people who complain about our pricing because it's $239.99 and it's a subscription. They think that they deserve to get our product for $10 at most or better yet, they want it for free. Similar to what @MJ DeMarco says about someones hate against him/his books not changing his reality, the vocal minority do not change our reality (how much money we're making).
At our pricing ($239.99) it takes 4,167 buyers to generate $1 million in revenue. We have a hater to buyer ratio of approximately 1:200. So for every 200 people that purchase, 1 person complains about our pricing or the fact that it's a subscription. So for every $1 million dollars we stand to make, roughly 21 people will complain about our pricing. Whether they buy or not we will have 200 happy customers to give us reasons why we're worth what we say we are. Is pricing your product higher, but creating 21 new haters worth it if it generates $1 million in revenue? You're damn right it is. People who hate on you and your products are inevitable anyway.
It’s hard to see potential users lashing out against your product that you've put so much effort into, but in the end it’s better to spend your energy talking to customers who easily see your value. If you have hundreds of sales for every one complaining person you’re doing great. If everyone is complaining and you have little to no sales, you need to rethink your strategy or your product offering.
THE GREAT FILTER.
Higher pricing is a filter that prevents you from getting low quality customers.
Say it with me: "Higher pricing is a filter that prevents me from getting customers that I do not want."
The people that are complaining about your pricing are the same exact customers that are making your life a nightmare when you're pricing your product too low. These are the customers that email you 15 times a week because they want you to spoon feed them the answers to all of their problems. They don't want to read documentation, they don't want to follow instructions, and they certainly won't stay subscribed with you for long. The return on your time investment is negative when dealing with these customers, so don't bother. Why would you fight these customers in long email chains just to make $20? F*ck that.
Price your products higher and increase your value skews to ensure that you can charge more. Apply the great filter to your business and enjoy dealing with less undesirable customers.
----------
Ensure that you’re providing immense value with your product, great customer support, and stand by your worth. It sucks to see people dissing your hard work, but it’s water under the bridge and it will not matter a week from now. You are going to get frustrated but it's something you need to learn to deal with.
So whats your hater to buyer ratio, and are you filtering out the customers that you don't want by pricing higher?
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