Price Your ClickBank Products for Maximum Profit

Choosing the right price for your digital products is one of the most critical, yet difficult, aspects of your business strategy.

Most merchants understand that over-valuing a product kills sales. It is also fairly well understood that under-pricing cuts the unit revenue without any guarantee of a significant gain in sales volume. But few people are aware of a third (but equally important) pricing observation; that compromise pricing can be as harmful as either of the other two blunders.

To understand why this is the case, we need to examine the principles that lie behind effective pricing strategy. In general, merchants adopt one of two key philosophies when they price a product. They either set the price at a low level (which produces a low margin but high sales volume), or they choose a high price level (which trades off volume in order to gain margin).

These two approaches are known respectively as "penetration pricing" and "pricing for profit." The former strategy is typically used by new competitors in a market, or by existing retailers that need to quickly establish a position of dominance after a product launch. The latter technique is favored by established businesses with mature products, where the objective is to earn the maximum profit yield from an existing dominant market position.

It is clear that, whether the strategy is to price low or high, going too far in either direction can be self-defeating. But mid-way pricing is equally ineffective, as it compromises both strategies; it unnecessarily discounts the product without doing so sufficiently to generate a significant improvement in volume.

As a vendor of digital merchandise, you are at a distinct advantage over traditional merchants, since there are no marginal costs associated with your business. Regardless of how low you choose to price your product, you are still guaranteed to show a gross profit on every sale. In contrast, a merchant of physical goods has real fulfillment costs (product manufacturing, damaged and unsold inventory, storage, shipping and handling) that impose a fixed lower price limit below which each sale represents a loss. This advantage affords you great flexibility in your pricing, but even if you use this flexibility to pursue a penetration pricing strategy, you should still be aware of the risk of counter-productive price-cutting.

Some ClickBank merchants use an experimental approach to pricing. Their aim is to establish the most profitable price through trial an error. Although this is understandable, even logical, it can be a customer-relations nightmare. You should think carefully before over-pricing a product and subsequently being forced to reduce the price in order to stimulate demand. Nobody likes to return to a website and see that a product they already purchased is now being offered at a lower price.

The opposite approach is to steadily increase prices from a low level, and is usually less of a cause for concern. Some merchants launch their products with a deliberately low introductory price - a benefit that they emphasize in their sales pitch. The time-limited, or volume-limited, nature of this technique can be a powerful incentive to buy, and it also allows the merchant a trial period in which to observe sales behavior before setting a definitive price to meet his longer-term strategic objectives.

About The Author

Copyright © Tim Coulter. All rights reserved.

Tim Coulter is a consultant and software developer who helps netpreneurs to harness marketing technologies.

He is also the author of "ClickBank - The Definitive Guide" The Ultimate ClickBank Tutorial & Reference Manual.

http://www.clickbankrevealed.com/

In The News:

PPC Advertising for B2B Organizations: Foundational Considerations  Business 2 CommunityPay-per-click (PPC) advertising for B2B can be a highly effective marketing tactic when done correctly. Adopting a PPC strategy has numerous benefits, but they ...
10 Amazing Tips to Write Better Mobile PPC Ads  Search Engine JournalReaching and converting your audience on mobile devices can yield big results. Use these 10 tips to start writing better, mobile-friendly PPC ads.
Can AdWords' advertising clubbed with social media marketing do wonders for MSMEs?  Economic TimesSimply put, the combined efforts of paid search and social media can be very helpful when you are starting off with limited budgets.
How To Integrate SEO and PPC to Growth-Hack Your Digital Marketing Results [infographic]  Digital Information WorldDigital marketing has evolved significantly over the last couple of decades. The days when you could stuff your *content* with keywords and rank on top of the ...
SEO vs PPC: Which One Works Better? [Infographic]  Social Media TodayTo increase the visibility of your website in search engine results, the two main strategies you can consider are search engine optimization (SEO) and ...
Pay-per-click (PPC) Advertising Market 2019 – Google, Bing, Yahoo, Ask.com, AOL.com  Worldwide MarketThe Global Pay-per-click (PPC) Advertising Market Report 2019-2025 includes a comprehensive analysis of the present Pay-per-click (PPC) Advertising Market.
10 questions to ask marketing automation vendors  Marketing LandYou've decided to implement a marketing automation platform…great! Discover 10 key questions to ask vendors, such as: Do they require long-term contracts or ...
Pay-per-click Advertising Market Detail Analysis focusing on Application, Types and Regional Outlook 2025  Market Research GazetteGlobal Pay-per-click Advertising Market Overview: The latest report up for sale by QY Research demonstrates that the global Pay-per-click Advertising market is ...
Podcast ad market to surpass $1 Billion in the US  PPC LandIAB and PwC US this month released a study forecasting $1 Billion in revenue for the podcast ad market in 2021, in the US. This is the double of the revenue ...
Are Your Landing Pages Built For PPC?  Business 2 CommunityIf you run your own marketing campaigns, then you probably are already aware of the importance of landing pages. Often these pages are responsible for ...
Xandr launches Xandr Invest, a new programmatic platform for advertisers  PPC LandXandr today announced the launch of Xandr Invest, a new buying platform that offers programmatic guaranteed, enabling buyers to reserve access to supply ...
Spotify gains dominance in Honduras, Slovakia, Hungary, Finland, and Indonesia  PPC LandSpotify is consistently gaining dominance on new markets, threatening the worldwide dominance of Apple on audio listening. Spotify is already the leader in ...
Why SMBs Should Use Paid Search  MarketingProfs.comPaid search or pay-per-click (PPC) advertising is an effective way to drive search traffic quickly and consistently. Here's how it works and why small and midsize ...
eLama Releases Facebook Ads Optimization Tools  PRNewswireSINGAPORE, May 28, 2019 /PRNewswire/ -- eLama, worldwide PPC marketing solutions supplier, has released new Facebook Ads optimization and ...
Pay-per-click (PPC) Advertising Market Overview by Technological Growth and Scope 2019 to 2025  MajoReportsThe Global Pay-per-click (PPC) Advertising Market report provides information by Top Players, Geography, End users, Applications, Competitor analysis, Sales, ...
How to Use Keyword Intent to Boost PPC Performance  Search Engine JournalThe choice to actively target a keyword versus allow associated queries to happen naturally through other terms is a constantly evolving equation of:.
Why Referrals Are The Most Valuable Form Of Marketing (And How To Get More)  ForbesWant quality sales leads and prospects for your business without spending a lot of money on acquiring them? Here's how to win with referral sales.
3 Reasons You Should Outsource Your Digital Marketing  Business 2 CommunityRegardless of the size of your business deciding who will handle your digital marketing needs is a standard question. Digital Marketing encompasses the Social ...
How To Track Phone Calls From Your Google Ad Campaigns  ForbesEverything you need to know about setting up Google call extensions and call tracking.
Why You Shouldn’t Ignore Brand Awareness in PPC  Business 2 CommunityIn my last article on this blog, I described how brand awareness in PPC is sometimes viewed as less important than PPC performance. Unfortunately, too many ...
8 Low-Key Ways Ecommerce Brands are Using Competitor Insights to Spy on You  Business 2 CommunityIf you've every watched a sports movie, then you're familiar with the scene where the underdog team watches video of the competition and freaks out a little ...
Frederick Vallaeys on why digital marketers will still have jobs and what they’ll look like in an AI world  Search Engine LandWe all know automation is dramatically changing the way we approach PPC. From setting up to managing and optimizing campaigns, our roles are evolving.
Things you wanted to know about SEO (but were afraid to ask)  Inside ImagingAs we noted last week, SEO is a real conundrum for small businesses wanting to derive maximum value from their websites. This week we ask Patrice Hugron ...
How to Develop Your PPC Strategy  Search Engine JournalA successful PPC campaign begins with a goal-oriented strategy. Learn five of the most common PPC goals and what you can do to accomplish each one.
What Is PPC & How Paid Search Marketing Works  Search Engine JournalThis post will introduce you to the basics of paid search marketing and what you need to know about how pay-per-click (PPC) advertising works.
10 Winning Higher Education Marketing Strategies for 2019  Pacifc54 BlogLet's dive into 10 of the most important foundations and tactics for a successful higher education marketing plan that drives results.
Amazon acquires Sizmek adserver  PPC LandAmazon this week confirmed that is acquiring the Sizmek adserver together with the DCO capabilities. Amazon said they have signed an agreement on May 31 ...
A Complete Guide to PPC Ad Formats  Search Engine JournalPPC ads come in many shapes and sizes. They also change frequently, which means it's nearly impossible to provide a truly comprehensive guide for every ad ...
A Complete Guide to PPC Ad Targeting Options  Search Engine JournalIn the world of PPC advertising, there are many different targeting options available, each designed to create a unique way for advertisers to reach their target ...
5 Ways to Use AI to Make Your PPC Ads More Effective  Business 2 CommunityGetting the most from pay-per-click (PPC) ads is a priority for nearly every marketer. No doubt, the investment you channel into PPC ads is already sizeable.
Comparing SEO to PPC  Practical EcommerceSearch engine optimization is different than pay-per-click advertising. While they share the goal of driving searchers to a website, you can't expect the immediate ...
You’re Doing PPC Ad Tests Wrong – This Script Will Help  Search Engine JournalAd testing can be a time-consuming part of the PPC optimization process. This Google Ads script can help you do PPC ad tests the right way.
Get more conversions by deconstructing your PPC ads  Search Engine LandChefs have been playing with improving the presentation of food by deconstructing meals into their components before recombining them into dishes that are a ...
What is PPC?  Startups.co.ukPPC is the advertising hack that makes sure your ads are in the right place at the right time. Learn how it works, and how to implement it here.
How to Optimize Your Paid Search Keyword List in 3 Steps  Search Engine JournalWhen you optimize your keyword list correctly, you're also optimizing your offer, audience, and conversion rates. Here's how to do it.
SAPO adopts AppNexus full stack, Adserver, SSP and DSP  PPC LandAppNexus today announced that SAPO, one of the biggest online media companies in Portugal, will adopt AppNexus full suite of products, including AppNexus ...
PPC 2018 in Review: These changes will have the biggest impact on advertisers in 2019  Search Engine LandMajor changes in SEM made waves throughout 2018 and are redefining nearly every aspect of paid search marketing. There were a number of momentous ...
The North Face booed by SEO community after manipulating Google image search results  Search Engine LandLast week, outdoor clothing brand The North Face and its ad agency Leo Burnett Tailor Made, came under fire after the agency updated images on Wikipedia ...
5 Strategies for Customer Uploads in PPC Campaigns  Search Engine JournalCustomer upload lists are not new to the PPC toolbox, but are often underused. Here are five strategies to use them in your paid search campaigns.
Developing a Sustainable PPC Strategy: What You Need to Know  Search Engine JournalWant to develop a sustainable PPC campaign that drives results? Here are some key considerations and insights you need to know.
Display vs. Search vs. Social Ads vs. PPC in Paid Advertising  ThomasNet NewsPay-per-click (PPC) advertising and other forms of paid advertising have become popular — and effective — marketing tools for many manufacturing companies.
10 Amazing Ways to Harness the Power of PPC Remarketing Campaigns  Search Engine JournalTake advantage of Google and Bing's powerful display ad networks to serve remarketing ads. Here are 10 types of remarketing you can do on Google and Bing.
What You Need to Know About PPC Budgets & Bidding  Search Engine JournalLearn three methods to estimate your PPC budget and the different bidding strategies that advertisers can test on search campaigns.
4 Things to Do When Your PPC Campaign Isn’t Generating Leads  Search Engine JournalAre your PPC campaigns not generating leads? Can't find a solution? You can still save a failing PPC campaign. Here's what you should do.
5 Less Obvious PPC Testing Ideas That You Should Try  Search Engine JournalLooking for new PPC features and ideas to test aside from your usual landing page, ad and audience tests? Here are five PPC testing ideas for you.
What is paid search (PPC) and why do you need it?  EconsultancyPaid search marketing affords businesses the opportunity to advertise within the sponsored listings of a search engine by paying either each time their ad is ...
Using automation to boost PPC performance  Search Engine LandThe number of advertising networks, features and management tools available to PPC marketers is continuously expanding and making PPC management ...
10 Key Steps To Building A Great Small Business Website  ForbesIf you are looking to build a new startup website or make your current site more effective, here are 10 key steps to getting started and helping your small business ...
5 Ways to Optimize PPC Advertising to Improve the Customer Experience  Search Engine JournalWant to develop a relevant, sustainable, and scalable advertising strategy that prioritizes customer experience? Focus on these five key areas.
Six Tips For Effective PPC Advertising  Forbes NowEvery client is different. While some request incredibly granular search ads, others leave it up to their agency's discretion. Typically, though, most clients who ...
PPC advertising: How retailers can dominate Black Friday in 2018  EconsultancyBlack Friday is still the busiest day for retailers with more than 137 million people in the US going out shopping over the four-day weekend, representing more ...
Three Reasons to Hit Pause on Your PPC Campaigns  ThomasNet NewsPay-per-click (PPC) advertising is an effective tool among many industrial manufacturing companies looking to expand their outreach and to connect with new ...
Who still clicks on ads anyway  App Developer MagazinePeople click on search ads that directly respond to their search queries, especially on Google. Businesses can use PPC advertising data to optimize their search ...
7 Terms You Need To Know About PPC Marketing  ThomasNet NewsPay-per-click advertising can be a critical — and highly successful — component of your industrial marketing strategy. However, many manufacturers remain ...
Is your IT company running short of work? Meet new clients on Applancer.  TechstoryApplancer is a global platform designed to allow potential clients to post their projects that an IT company can then bid to complete.
Should You Choose a PPC Agency or In-House PPC Management?  Search Engine JournalThere are pros and cons to both in-house PPC management and working with PPC agencies. But by developing a hybrid solution, you can actually get the best ...
5 PPC Calls-to-Action Tips & 4 Gotchas You Need to Know  Search Engine JournalA new year presents a new opportunity to review and maximize search and social PPC accounts goals as well as the calls-to-action (CTAs) we use to engage ...
5 Surprising Ways Great Content & PPC Can Help Each Other  Search Engine JournalLearn how you can use *content* marketing to improve your PPC performance (and vice versa) and create high-performing PPC ads to maximize your *content* ...
How SEO and PPC advertising go hand in hand  Media UpdateAccording to the Digital School of Marketing, search engine optimisation (SEO) and pay-per-click (PPC) advertising both share a common function: getting ...
Do you still need a PPC tool with the new Google Ads?  Marketing LandOn the surface, it's easy to wrongly conclude that Google and Bing are automating PPC pros right out of relevance. Basic PPC tasks can now happen with very ...
7 Most Frequently Asked PPC Questions (And...  Vertical MeasuresDo you oversee your businesses PPC advertising but don't manage the day-to-day PPC activities? Here are the top 7 questions and answers we hear from our ...
7 Retail & Ecommerce PPC Copy Tactics to Give You the Extra Edge  Search Engine JournalHere are seven ways to improve your ecommerce PPC and get more qualified searchers with high purchase intent to click on your paid search ad.
Reddit Jumps Into Pay Per Click, Performance Advertising 01/30/2019  MediaPost CommunicationsReddit built a strong foundation for advertisers based on engagement and brand awareness campaigns. Now the company will focus on performance ...
Pros and Cons of PPC  BBN TimesPay per click, aka PPC, is one of the most effective ways to reach an audience that is looking for products or services offered by a business. PPC ads are ...
Media.net partners with White Ops to avoid bots  PPC LandMedia.net this month announced it has selected White Ops' pre-bid prevention product, MediaGuard, to provide advertisers with fraud protection. Media.net says ...
3 Tips for Surviving 2019, the Year of Automated PPC  Search Engine JournalThese three high-level action items related to automation and tools should be on your agenda to consider for greater PPC success this year.
PPC and Me: My Eye-Opening Pay Per Click Experience  Business 2 CommunityIf you've spent any amount of time online looking for marketing help, you will inevitably find yourself over-inundated with terms and acronyms that probably seem ...
Why You Should Pair Programmatic Advertising with Paid Search  Search Engine JournalHere's why you should consider pairing programmatic advertising with your existing PPC, SEO, and other digital marketing strategies.
The Best Feature in the New Google Ads Editor: PPC Audits  Search Engine JournalHere's why Google's free PPC auditing tools – like the new Ads Editor and the Reports tab of Google Ads – are worth a try.
Top 3 New(ish) PPC Features to Increase Your Paid Search ROI  Search Engine JournalReady to increase your paid search ROI? Check out these three Google and Bing Ads features and tips on how you can use them right now.
How The Law Niche Proves Expensive PPC Can Pay Off  Forbes NowAs the law niche proves, no matter the price, PPC can really pay off.
How to Turn PPC Failure Into Success: 4 Lessons Learned  Search Engine JournalIn the world of PPC marketing, everyone fails at some point. It's inevitable. In fact, it will probably happen to you. Many times. But you can learn a lot from your ...
What Does PPC Have to Do With Website Design?  Search Engine JournalA great website is crucial to great PPC. Learn six elements of website design that can have a major impact on your PPC performance.
Forget me not: 3 steps to make your PPC ads more memorable  Search Engine LandWhat makes some ads stick in your mind, while others are instantly forgotten and relegated to the trash heap of online noise we're exposed to every day?
Boost Google Ads' Quality Score for PPC Success  Practical EcommerceGoogle Ads' quality score is a bid multiplier that can make purchasing ads on the popular pay-per-click advertising platform less expensive. A high quality score ...
SMM or PPC Marketing – Which One Should You Use?  Business 2 CommunityWhen it comes to gaining traffic to your website, you can use different approaches. The three main methods to use are SMM, PPC, and SEO. Each of these three ...
How to Use Life Event Targeting in PPC & Social Ads  Search Engine JournalAn individual's life events will no doubt trigger actions that marketers deem valuable: *content* consumption or purchase decisions. With each life event, there are ...
3 Ways PPC and SEO Teams Can...  Vertical MeasuresCombine the forces of PPC and SEO for the betterment of your business. Check out our top 3 ways to start bridging the gap between SEO and paid media teams.
6 Tips to Improve Your PPC Landing Page Experience (& Quality Score)  Search Engine JournalWant to improve your landing page experience? Focus on your users. Make them happy. Use these top tips to optimize your landing pages.
SearchCap: Google SEO, Bing Ads incentives & PPC  Search Engine LandBelow is what happened in search over the past week, as reported on Search Engine Land and from other places across the web.
How To Determine The Right PPC Advertising Budget  Forbes NowOne of the top questions I hear from clients and prospects is, “How much should our budget be for pay-per-click advertising?” The answer to identifying the ...
How do you measure a good click-through rate (CTR) for PPC?  ClickZYour click-through *content* can help you understand what people think of your ads and your *content*. How to understand the definition of good CTR along with ...
How Mastering the Art of PPC Yield Management Can Boost ROI  Search Engine JournalHow can a PPC yield management program garner stronger returns on your PPC advertising efforts? We offer insights on the right tools for success.
How to Do PPC Keyword Research in 2019  Search Engine JournalIf you're looking for the latest strategies in PPC keyword research, there's something you should know: Google was never designed to be about keywords.
Apply These 8 Tips to Improve Your Amazon Marketing Ads  Small Business TrendsCheck out these important tips on Amazon marketing ads.
What Is Click-Through Rate & Why CTR Is Important  Search Engine JournalLearn what click-through rate is, what a good CTR is, how it impacts your ad rank and Quality Score, and when a low CTR is OK.
Ad Group Best Practices: How to Create & Structure Your Ad Groups  Search Engine JournalAccount structure is a critical element for ensuring paid search success. These best practices will help you set up campaigns and ad groups effectively.
Law Firm Marketing Execs Finding Local SEO Outperforms Pay-Per-Click  FinSMEsIf you are starting a new marketing campaign on Google, then you have two ways to go. Either the Pay-per-click (PPC) marketing strategy or local SEO. In order ...
Paid Search Spend Grows 10% Globally Year-Over-Year  Search Engine JournalA new report on digital advertising in Q4 2018 reveals that paid search spend grew 10% year-over-year.
5 Reasons Your Facebook Ads Aren’t Converting & How to Improve Them  Search Engine JournalFacebook advertising is one of the best tools available for audience research and promoting your brand. But even experienced digital marketers can run into ...
Microsoft Advertising is the New Bing Ads  Search Engine JournalBing Ads has been officially rebranded as Microsoft Advertising, marking an evolution in the platform's offerings.
Google to accept PPC advertising from Swedish operators but not affiliates  EGR GlobalGoogle will allow paid search advertising from gaming operators in Sweden from the end of April, but will block affiliates from the same privileges, the search ...
SearchCap: Google Discover ads, YouTube engagement metric & PPC tools  Search Engine LandYouTube now counts 'engagement' for YouTube for action ads at 10 seconds, not 30. Oct 15, 2018 by Ginny Marvin. Google says the new attribution will better ...
Nine B2B companies using clever PPC copy to target competitors  EconsultancyTargeting your competitors with some clever PPC copy is one way to stand out in a crowded marketplace. Here are nine companies doing it effectively.
10 PPC Copywriting Best Practices for Extra Effective Text Ads  Search Engine JournalRunning PPC ads can be extremely profitable – or it can be a waste of time. What makes the difference? Much of it has to do with your ad text. Writing great copy ...
PPC Geotargeting Best Practices Guide  Search Engine JournalHere are the top benefits of using geotargeting on your PPC campaigns, along with hands-on tips on avoiding common geotargeting pitfalls.
Upper Funnel Advertising: How to Use Display & Video Ads to Boost Awareness  Search Engine JournalLearn the common advertising tactics used to target customers at the top of the purchase funnel and build awareness of your brand, product, or *service* .
No Pay, No Gain: Four Key Benefits Of PPC Marketing  ForbesWhether you've spent time working on digital marketing or have just started to look into it, you will no doubt have heard of pay-per-click advertising. A popular ...
How to Build an Executive/KPI Dashboard to Prove Your PPC Value  Search Engine JournalMarketers aren't always sure how to prove their value and keep their job. This post will help you figure out what your bosses care about and how you can show ...
6 tactics for PPC marketers to save time, reduce stress and improve performance  Marketing LandAs PPC marketers, everything we do revolves around structure and organization. Sure, there's a huge amount of unstructured work as the result of performance ...

Market Research Means Money

I recently made a critical mistake in my progression towards... Read More

Keywords, How to Find Them, and Use Them Effectively

To be a successful affiliate marketer takes a ton of... Read More

Googles Wonderland: Trouble In Paradise?

The fairy tale existance of Google is starting to experience... Read More

AdSense Secrets - Joel Comms Google AdSense Guide Reviewed

Joel Comm is the best-selling author of a book called... Read More

Click Fraud ? Threatening the Internet Economy

One of the most popular forms of Internet advertising is... Read More

The Fastest Way to Get Traffic to Your Site

Lots of people would like to get their Web site... Read More

How to Increase Your AdSense Revenue Stream

Google's AdSense program is one of the best, if not... Read More

The Long Term Benefits From Pay Per Click Advertising

Businesses are starting to look closely at the long-term benefits... Read More

99 High Paying Keywords: The Secret Is Out!

Incorporating high paying keywords into your site is critical to... Read More

What is Google AdSense?

AdSense may be one of the fastest and easiest ways... Read More

Internet Advertising Options

Your online business will likely require more advertising than a... Read More

Top 5 Secrets to Making Money with Adsense

Did someone tell you you can make money easily with... Read More

What is Google AdSense?

In the mid 1990's websites used to earn income by... Read More

Creating Revenue Without Much Effort, Set It And Forget It Online

Earning more revenue from your website is the goal of... Read More

The Basics Of Pay Per Click Search Engine Advertising

Not long ago, Forbes magazine has reported that pay per... Read More

Google for Resellers: Leveling the Resell Playing Field

With so many people trying to make money on the... Read More

How To Win The War of Pay per Click Advertising.

Do you know what is the most important question among... Read More

Using Google AdWords to Increase your Adsense Profits

I had been using Google's Adsense program to generate some... Read More

Contextual Ads

These are simply advertisements related, in theory and often practice,... Read More

Paying for Website Visitors: The Allure of PPC for Small Biz Owners

There are good reasons why many webmasters and website owners... Read More

Pay Per Click Search Engines - A Fundamental Overview

Forbes magazine reported that pay per click ads accounted for... Read More

Pay Per Click Advertising Can Be Very Risky Business

Click fraud is an unfortunate byproduct of the pay per... Read More

What You Need To Know About Googles New AdWords Affiliate Policy

A lot of affiliates are selling other people's products with... Read More

Managing PPC Campaigns Inhouse

Pay-per-click search engine advertising has generated ample interest in the... Read More

The Sensible Way To Earn Money With Google AdSense!

Dear friends,Google AdSense has rapidly gained a status of an... Read More