Info products with low price point (5)
Hi there, is anyone selling at a decent scale info products at a low price point? We run CPA campaigns directly to landing page for $27-37, lifetime value on average is $25 because of VAT (mainly EU customers and the cut from the payment platform), so we can't afford to spend much on a conversion. Only success we can get is if we put a low CPA in the ad sets but then we don't get a lot of volume.
Just curous if it is possible to successfully and profitably sell info products at low price point.
Why not add some up-sells to increase LTV? Less pressure to break-even on the front-end
Yes of course, we have an order bump and 3 upsells + email sequence to promote further products but that is all included in the LTV of $25.
For example: Main offer $27, Order Bump $17 (25% take it), Upsell 1 $37 (10%), Upsell 2 & 3 (<5% takers, not really relevant). Given 20% VAT is included in the price point and payment platform fees (10%), the money that lands in our account at the end is roughly $25.
0.7 * (27+0.25*17+0.1*37)
Even if we improve upsell funnel, let's say we could reach $30 LTV, that's still low so question remains the same.
A question from me: Do you own this offer?
If so, did you test various price points?
I did a lot of tests with info and membership products in the past and surprisingly, I was able to convert some of them better at a higher price.
This worked very well with products that had time-limited access.
So for example, 1month of access was $30... the average membership duration was 1.5 months, which would be $45 revenue per member. And I was able to make more by offering a 3-month access at $59.95. The amount of sold memberships was pretty much the same and the average income per users increased imediately.
Now, I'm not sure what's your setup and whether something like this would be possible, but definitely try to play with the pricing a bit... in quite a few cases, the clients are not THAT price sensitive.
It's about price optimization. Say for instance you cannot sell a T-shirt for $10,000 as you won't get customers. And selling it too low for $1 may not give you the profits. It's about testing various price points and increasing or decreasing by a small value say $1 or $5 depending on the price of your product and have the price for the maximum revenue. But again making it easy for the customer and overcoming barriers helps. It explains why sellers having $1 for the first 14 days or free trials make way more sales and revenue than sellers who don't. 
And of course the core product can be priced low to break even and then you make most of the money from upsells. That's what amazon does with its lucrative offers because they are just brilliant with upsells after acquiring a customer.
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