Deciding What Price Point To Charge With Your OTO (One Time Offer)

Using an OTO or one time offer as part of an online marketing business sales funnel has become common place amongst many Internet Marketing business strategies. A one time offer is shown to a potential customer once they have subscribed to your list and have opted in to receive your front end free information in exchange for their email address. One time offers are used by online marketers who have used paid advertising to grow their email lists and wish to recoup some of that investment at the front end of their sales funnel.

Once you get to the point of knowing you can at least make your initial investment back from your one time offer; you can then buy more ads by re-investing the money made back from the OTO and then look at making your profits by promoting your own products or recurring commission affiliate products at the “back end” of your sales funnel.

What to charge for your OTO is up to you. But here are some suggestions you can look at and use yourself if you so wish:

Price Point #1: $5 – $10 is usually the price range that online marketers set as their immediate offer someone will see as soon as they opt-in to receive their free information. $7 is one of the most popular numbers out of this price range as tests have shown that the number 7 seems to be a trigger for increasing the chances of people buying from you. The price point alone will not make you the sale. You have to make sure that your offer is of outstanding quality and will be perceived as a no brainer for someone to buy your offer.

Price Point #2: $17 – $27 are also some price points to consider but you will have to raise the bar in terms of providing enough value for your potential customer with products that can help them get to a point of which they desire. These prices are more commonly used for up-sells. When someone buys your first $5 – $10 product, they will then be offered an up-sell of around this price because the marketer now knows that this person is a hot prospect and is a proven buyer.

Price Point #3: High priced offers are rarely seen but it all depends on where you are getting your traffic from and what price points people are used to seeing. You could always start at around £300 and then use the “down-sell” system instead of the up-sell. You can keep offering a lower price to your potential customers as soon as they click away from the original offer. You can gradually offer less products and lower prices to those down-sell products until you reach the price points of methods 1 and 2 as mentioned previously.

Testing is vital for this process and that is why using paid advertising allows you to scale and be able to see what price triggers work for any given one time offer you wish to promote. Once you find a winner, you can run with it and buy even more advertising and work on improving your up-sells, down-sells, price points and of course; your back end higher priced recurring products sales funnel.