Sean: Okay. Do you have a five hundred dollar product?

Caller 5: No, thats where it ends.

Sean: Thats where it ends okay thats fine, that’s what we’re on this phone call for. Okay, and folks I could spout my conversion rates all day long, but I really like to get other people who are on this phone call because then you guys can see real numbers, and so I encourage you, if there is anybody else on this call that is selling products, speak up because it will help everybody see some real numbers. Caller 5’s numbers are very very close to mine, as I say I range anywhere from 4 % on up to if I print tonnes of urgency for a one time deal, maybe 20%, but on average, say somewhere between 4 and 7% on a $10product, on a 40$ product 3% is about right, and I’d go down just a tad, I’m probably closer to 2.5% maybe 3% on a 100 product.

So my numbers are pretty close to Caller 5’s, but I’m going to use his numbers though, just because I think that, I just want to use his numbers, they’re very similar. So if Caller 5 has a thousand visitors, and please, let’s everybody help me out with this, if Caller 5 has a thousand visitors, and he sends all of those thousand visitors to his $10 page, and it converts at 5%, how many sales are we going to have?

Unknown: Fifty.

Caller 5: I don’t do no math.

Sean: Okay, we’re going to have fifty sales, and at ten dollars we’re going to make how much?

Unknown: Five hundred dollars.

Sean: Five hundred dollars. Okay, now, if we have 1000 visitors, and we send those 1000 visitors to a $40 page and they convert at 3% let’s start out with how many sales are we going to generate?

Unknown: Thirty.

Sean: We”re going to have thirty sales, and at $40, we’re going to have how much volume?

Unknown: $1200.

Sean: $1200. Okay, so if we just look at these two numbers, the $10 product made us $500, the $40 product made us $1200. Let’s move up to the hundred dollar product. Okay,1000 visitors. Conversion rate of…I’m going to drop that to 3% for this example. I’m going to drop that to 3% so once again, 3% of a 1000 would be what? How many sales?

Unknown: Thirty.

Sean: Thirty times a hundred dollars would be how much volume.

Unknown: 3000.

Unknown: 3000.

Sean: 3000. Okay, what kind of trend are we seeing here?

The first trend we’re seeing, is what’s happening to the conversion rate when we go from $10, to $40, to $100. What’s happening to the conversion rate?

Unknown: Down.

Sean: It’s going down. Is it going down as fast as the price is going up?

Unknown: No.

Unknown: No.

Sean: Okay, so it’s not going down as fast as the price is going up. If we were to say that it had some standard level of degradation and we said that the fist one was 5 %, and the next one was 3% and then maybe the next one was, say, 2.5%, then we might be able to say that in the course of each jump we lose… well the first jump we lost 40% in conversion rate, the next jump we lost, what is that… 16%, if we looked at it out of a hundred, if we took the two and a half out of three we’d have 16% drop. If we were to drop to a $200 product, does anybody have a $200 product on this call? If we had a $200 product and we had the same degradation, what do we think that conversion rate might be?

Unknown: 2.% or 1.5%.

Sean: Okay lest say it’s 2% okay, lets say its 2%. So, we’re going to have how many sales? 2% of the thousand is how many sales?

Unknown: Twenty.

Sean: Twenty sales okay, twenty sales at $200, is how volume at this same 1000 visitors.

Unknown: 4000.

Sean: $4000, so our conversion rate continues to drop, our total revenue goes up. Okay, now, my experience has been that there is very little degradation in conversion rate between $200 and $500. If there is nobody on this call that has done that, then we don’t have anything to compare with, and here’s why I think it is. Now, I don’t have proof, okay, this is what I suspect though, is that a $200 purchase is not an impulse purchase, nor is a $500 purchase an impulse purchase. A $200 to a $500 purchase is generated because somebody has already developed trust in you, and they really need what you have. They can’t get it anywhere else, so you are teaching something that nobody else on earth is teaching, or at least you are the only person that it’s pretty easy to buy from online. Okay, does that make sense right there, that the reason that people will spend between $200 and $500 is that they have high trust, and that they really need what you have, Does that make sense?

Unknown: Mmhhhmmm

Sean: Think about your own purchases, how easy is it to spend fifty bucks online?

Unknown: Pretty easy.

Sean: Pretty easy! It’s fifty bucks, you know, hopefully you’ll learn something, but if not, you’re out fifty bucks. You know its a big deal,k but its not a big deal. Okay, but how easy is it to spend $200 online.

Unknown: Not as easy.

Sean: It’s not as easy. There is like a huge degradation there, okay, but if you trust somebody, so assuming that you trust somebody enough to spend $200 with them, would it be much harder if they really had what you wanted, to spend $500 instead?

Unknown: Somewhat, but not a lot.

Sean: Okay, a little bit, but not a lot. And what if they had a payment plan where you could make two or three payments so you didn’t have to put the whole 5$00 out right away? Do you think it would be almost as easy to buy the $500 as the $200?

Unknown: Especially with a money back guarantee.

Sean: Yeah, especially with a money back guarantee! You’ll get your money back before you’ve even made your second payment. That right there is why I personally believe its almost as easy to sell a $500 product as it is to sell a $200 product. But for the skeptics here, let’s use 1.5% conversion rate rather than the 2%. So let’s have the conversion rate go down a little, so if we have 1000 people, at 1.5% conversion rate, how many sales are we going to have?

Unknown: 15.

Sean: 15 sales times $500 is how much revenue?

Unknown: $7500.

Sean: Okay, for those of you who are writing this down, are there light bulbs that are going off in anybodies head?

Unknown: (laughter)

Sean: Any light bulbs today?

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Sean Mize is an internet marketing strategist who teaches internet marketers how to increase their income by creating high ticket classes and coaching programs.

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