How Much Should I Sell My Product Or Service For On My Webinar?
There is a lot of information and differencing opinions when you ask people “how much to sell for on my webinar?” and this post will break it down for you.
The world of webinars is a crazy place sometimes, with offers ranging from $97 to $9,997.
As a rule of thumb, anything under $497 probably doesn’t need a webinar (and might actually lose sales from using one)
On the top end, anything over $2,997 will require a zoom call / phone sales call.
We are going to cover 3 key points that will make your pricing strategy crystal clear.
Pricing On Your Webinar Is Based On Outcome.
Why Most Entrepreneurs / Small Businesses Fail, And How To Avoid It.
The #1 Rule With Pricing on Your Webinar
Once we go over these, I will give you a simple framework to follow that will answer the question ” how much to sell for on my webinar?”
Let’s jump into it.
Outcome Based Pricing Should Determine How Much To Sell For On The Webinar.
The first point I want to get clear on is that you are pricing on the outcome of what you sell, not the time spent on something or the product itself.
A lot of times coaches, consultants, small business owners and entrepreneurs we see our superpower as common place. This can lead to undercharging for what we are selling.
Always look at what the outcome is worth to the person buying it.
This starts by looking at the pain points you are solving for them.
When I build a webinar with someone, this is the very first thing we start with.
The pain points determine what you are selling, and how much you can sell it for.
Here is a real world example for you:
“Sick of not being able to fit in your favorite clothing
…Running out of energy mid day…
or maybe you are tired of not landing the dates you want.
Let me help you lose 10lbs with an easy to follow diet, fast workout routine, and mindset meditation proven to change lives”
Just losing 10lbs sounds good, but does not drive home pain.
Looking at the pain points will always show you the outcomes that you get for your clients. From there it’s just about asking “what is fixing this worth to them?”
Another thing people just getting started tend to do is price based on hours vs outcome that it gets the client.
That’s ok, it’s not your fault! This programing comes from years of being taught that in school and the workforce.
Let me ask you a question:
Which would you rather have?,
- A maid that comes to your house and takes 8 hours and cost $120
- A team of maids that comes to your house to clean and takes 1hr and costs the same $120
People pay for an outcome, not the time spent on the outcome.
Pricing this way is how businesses and entrepreneurs think.
To be successful, you need to think the same.
To summarize this point, we should base price on the pain you solve and what it is worth to the market, nothing else.
Pricing Your Product Too Low Is The Fastest Way To Being Out Of Business!
One of the biggest reasons that entrepreneurs and businesses fail is because they are not selling enough of their products or services at high enough costs…
“but Steve,” you might be saying, “what does that have to do with pricing on my webinar?”
Here it is…
You have to be able to pay to get people to your webinar.
Most people starting out miss this very important point.
Marketing costs money, and you have to be able to spend this to make a sale.
Dan Kennedy said it best “The person who can spend the most to acquire a customer will have the best business.”
I could spend a lot of time on this, but just think about it for 1 second.
if you can only spend $1 to get a customer, and your competition can spend $100, no one will even know who you are.
What this has to do with webinars (and any pricing of product) is that you have to add in the cost of marketing to the price of the product to be successful.
Here are some hard number breakdowns.
$497 product vs a $997 product.
This assumes industry standard conversion and costs. ($10 per registration, 20% show up rate, 5% close rate)
See why it’s IMPARATIVE that you charge enough to market?
Last rule coming, then the framework for pricing.
The #1 Rule When It Comes to “How Much To Sell For On My Webinar?”
“Sales is the transference of certainty and enthusiasm about what you are selling from you to the buyer.” ~ Zig Ziglar
A lot of people are on the struggle bus here. They price their product too low because they don’t feel good about what they are selling.
part of this is what we covered in point 1.
Additionally, some people go too far and put the price higher than they feel comfortable, so when it comes time to sell it, they don’t exude the confidence to sell it, and it falls flat.
So how do you fix this?
Look at what other offers in the marketplace are selling for. Sell yours for the same thing.
Don’t compete on price, Instead compete on value.
What people are buying on your webinar is YOU.
- Your Energy…
- Your Certainty…
- Your Belief in the product.
If other similar items are selling for $997, you should have no problem selling for that.
So, “Should I sell for $997,” you are asking?
Pricing Framework For Webinars
I hope that by now you understand the “WHY” of “how much to sell for on my webinar”
I know it can be a bit much, but if you are like me, you need to know the “why” before moving forward with any meaningful project.
Now that you do, here is the general framework that applies to 99% of webinars.
Walk before you run -> run a 5k -> run the marathon
Start running it at $997
Do it live 15 to 20 times to get it perfect and dialed in.
This does 3 things:
It will give you time to get some sales and testimonials which are very important to raising conversion.
This will also give you time to tweak the follow-up sequence and get it perfect. (remember 50% of webinar sales comes from the follow up)
Gives you the confidence and swagger to offer it at a higher price (this will also drive a sales bump when you say “the price is going up” to you list”
Raise the price to $1997.
Continue to do it live until you have done it 50 times live. This will make sure you are getting the max conversions before turning it evergreen. It will also give you a chance to split test stories, testimonials, and different bits.
As an added bonus, you can now start training in groups and paying a JV split, as you have enough profit in the sale.
most people stop here, but there is one more level.
Raise it to $2,997 and above.
This isn’t for everyone. Most businesses and entrepreneurs will do very well selling a $1,997 product or service on a webinar and save the high ticket sales for an application funnel…
…but some have the right offer and are ok with running a sales team to close at higher numbers. (Tony Robbins, Brendon Burchard, and a handful of other Hight Ticket Coaches follow this)
At this point you either have to be in the top 1% of presenters or move to phone sales.
Almost everyone I have seen move to this pricing with a straight sale from a webinar has seen a significant drop in conversion. (Russell Brunson is the only person I have seen maintain even close to the same conversion percentage)
The good news is that if you have a proven converter at $1,997, you probably know the pain points enough to add to the stack and charge more.
Add more to the stack and drive people to phone sales.
By moving to phone sales, you can raise the price up to $4,997, $9,997 or more!
At this point I would hire out the phone closing, as it’s a very specific skill set in itself.
As a rule of thumb, you pay 20% or more in commission for a closer.
We have covered a lot when it comes to how much to sell for on your webinar…
Truth is that there is a lot there…
A Webinar is the most powerful tool to you when it comes to sharing your message online!
If you need help to get started, make sure to check these out: