User Power
Value/Post Ratio
19%
- Oct 4, 2007
- 1,385
- 265
Matt (and matt and matt),
Here's a suggestion...
You seem to believe that the information you can provide is worth $20/month to practicing realtors. If that's the case, why don't you create a single newsletter, and email it to 5,000 realtors (you can get these email addresses off the MLS).
For 1000 of these realtors, offer them a free subscription to the newsletter for 12 months; all they need to do is register at your site.
For 1000 of these realtors, offer them a subscription price of $1 per month for 12 months.
For 1000 of these realtors, offer them a subscription price of $5 per month for 12 months.
For 1000 of these realtors, offer them a subscription price of $10 per month for 12 months.
For 1000 of these realtors, offer them a subscription price of $20 per month for 12 months.
The cost to you is only your time to write the first newsletter, obtain the email addresses, and send them. But, in return for that effort, you'll get a reasonable idea of how valuable your potential customer base finds your newsletter to be.
If you find that a couple realtors are will to pay $20/month, great! If you find that many realtors sign up for $5/month, but few pay $10/month, perhaps that's your "sweet spot." Or, if you find that the realtors who are offered the free subscription don't even bother to sign up, perhaps it's a good indication that the information isn't worth much to them.
You can even scale the trial to 10K or 50K realtors and use this first newsletter as your marketing tool...
This reminds me so much of RealOG's "Value Pricing Strategy" presentation at the B&P - you'll have to ask him for the details, but it pretty much goes hand in hand with what JScott is saying - segment your market, find out where the bulk of your purchases are going to come from (at what price point), then create value for the other segments of the market that aren't currently buying - enticing them to buy (usually at a higher price point), and determining your net costs of doing business will help you decide which segment of the market to begin with.
Like I said, RealOG can explain the value pricing strategy much better - I was in awe of his presentation, it seems so simple and makes so much sense it makes you wonder why you never thought of implementing something like it before.