Are you interested in selling a recurring revenue product? In this video I’m going to show you how to do just that. Hi, my name is Doug Barra and I’ve been helping business owners be successful for over 15 years now.
Whenever we are talking about selling anything, we have to start with our target market. And who are we selling to? I’m going to invest a little time talking about this here, because way too often, my experience is that entrepreneurs just want to jump into creating something without taking the time to really determine who they are creating it for. Then they have this product that they have to try and find buyers for. Does this sound familiar? There is a reason why any time you talk to a marketing person, the most important thing they want to know is who is your avatar?
Imagine this for a moment, you decide that you want to service a particular market. Let’s say the owners of rescue dogs. So you go out and interview all the owners of rescue dogs that you know, and ask what is something they wished they could get for their dog, or what have they bought and what was their experience of buying it?
Then you go out to social media sites and join whatever groups you can find for people that own rescue dogs or just dogs in general, and engage in all the conversations about rescue dogs and what people want, what they liked or didn’t like about trying to get it. When you are done, you now know some amazingly critical information. You know what the owners of rescue dogs want to buy, where they hang out so you can reach them. You know what they have liked and not liked about their experience in buying things for their rescue dogs.
And if you did it right, you’ve probably created some relatedness to your market. Now, create or find that product, create the experience that they wanted and start telling the people in those groups about it. Now, of course, that wasn’t an example of recurring revenue, but I’m sure you got the point. It’s much easier to sell to people what they want rather than trying to get them to buy something they don’t.
Now, if you do already have a product and you are creating a recurring element to it, you still want to work to relate it to what your target market wants. I talk a lot about marketing in other videos, so I’m not going to go into that now in this video.
Now let’s talk about pricing. If you’ve done your homework, you probably have seen some examples of pricing models for what you are offering. I’ll give you some of the tips that I’ve gotten over the years about pricing. First people will pay what they think it’s worth. So the better you communicate the value, the more people will pay. If it’s too cheap, then they will think it isn’t good enough. And if it’s too expensive, it will take more to get them to say yes.
It will also depend on how trusted you are. If this is a very first offering, then less is more since you haven’t created the trust. Once you’ve created the trust, you can charge more. Also remember that in a recurring model, what you are getting over time is much more than what the perception of the price is. Even though the fact that it is recurring is taken into account by the prospect. What do I mean by that? Let’s say your product is $10 or $10 a month. Your prospects will see $10 a month as more than $10, but we’ll not necessarily think of it as more than a hundred dollars, even though it’s actually $120 a year, there is another piece to this puzzle.
You have to make sure that your offering is going to be sustainable and profitable. I’ve included a link in the description of this video or in a comment, depending on where you’re watching it to get more information about doing this for your business.
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Again, I’m Doug Barra. And now it’s your turn. Follow the link, make a difference in your business and I’ll see you in our next video.