With the power of social media, anyone can be a rock-star entrepreneur. And get paid like one if you’re willing to try a new pricing model. Micro-pricing!

An Internet Gutenberg

When Gutenberg invented the printing press he set the written word free. One of my favorite authors, Stephen King, became one of the first self-published authors on the internet. King did something similar. He set authors free.

How? King published each chapter of his book for just $1. Definitely not the traditional publishing model that takes years before you see fame or fortune. He removed his publisher as the middleman and went straight to his adoring fans that were eager to consume more of his content. (Note: King’s books are like literary crack. Once you turn the first page you don’t stop til it’s done. 800 pages-boom. Then, you’re jonesing for more. What genius!) .

First day yielded over 41K downloads. Do the math, people. That’s $41,000 in one day. I’ll have some of that. You can be a published author and make money from your talents, too.

Build Your Own Money Machine

A little dramatic? Heck yeah, but true. You can turn a part of your expertise into a mini-product and sell it at a micro price like Stephen did.

True, he’s Stephen King, a famous and popular author blah, blah. But the same principles can be put to good use in your small biz, too. I especially like this ‘tiny is powerful’ pricing now for two reasons.

1. Micro-price your product/service and grab more attention and sales. Entrepreneurs are always counting pennies, especially now in these recessionary times. That sounds like bad news unless you realize that some problems just don’t go away. They MUST be fixed or the business dies. If your solution is essential, easy and well-priced, small business owners will buy. Not Stephen King sales.

But steady I-can-pay-for-a-VA sales. Yes, this thinking goes against conventional wisdom that encourages you to price for positioning in the market, i.e. be the BMW, not the Hyundai. I’m zigging- this is what works now.

Case in point: Guy Kawasaki self-published his latest book, What the Plus?, on iTunes for $2.99. I bought it (easy download) to learn what Google+ (new biz essential?) is about and I bet I’m not the only one. Find, create and revise a product that you can micro-price today. What’s a good price? Play around. Typically, I’d buy anything that seemed relatively useful if it were under $100. Now, it’s more like under $40. If it’s under $10 it’s an immediate sale. You can start where you’re comfy and test higher price points with each new version.

2. Entrepreneurs are incredibly loyal to solutions that work. I love when something works like it said it would, don’t you? Easy and reliable are two words every entrepreneur or small biz owner wants to hear. It’s a simple formula. Customers purchase & love your bite-sized, mini-priced solution + you provide more & better solutions they purchase = A very satisfied pair. Viola, a profitable business built on micro-pricing.


Worried this won’t work? Think this is basically a volume play? I understand but don’t agree. Here’s a study and article that helped convince me. Basically, consumers won’t stiff you if they like what you’ve offered. They’ll pay because they are satisfied, they have the cash and they feel compelled to respond to ‘getting a deal’. It’s only fair.

Here’s a goofy example. I just purchased some airplants for my guest bath. Wonderful, sculptural things they live on a little water and air. However, I’m not sure how best to care for them. Oh, they came with instructions- just not good ones. I’d pay up to $10 for an audio or written guide on how to care for and propagate these beauties.

Where can you use this concept in your business?

Putting my two cents where my mouth is

I really like this idea so I’m running a test. I’m creating a solution for a very specific business need- how to price higher. Just the beginning step, though, how to write an effective survey that gathers data and promotes you. I plan to micro-price and see what the reader reaction is (that’s you).

If you want in, sign up for my ezine you’ll get insider news and my mini-course, Let Yourself Price What you Deserve, to keep you busy in the meanwhile. I’ll report my findings on the blog.

This is pretty controversial stuff. I’m up for a little debate.

Would micro-pricing work for your business? Why or why not?

Views: 304

Comment by Jeanne Heflin on March 29, 2012 at 2:45pm

Dina, I think that is a fantastic idea and one I would definitely be open to trying, however, I am curious about what website you would sell this on? Your own or like amazon or something similar? Thanks for the great article and I will be signing up for your e-zine right away!

Comment by Dina Eisenberg on March 29, 2012 at 3:54pm

Great, Jeanne.  I'll be selling my mini-product, Survey Sherpa, on my own site for the test.  But you'd not limited to that.  If you did an ebook, you could sell it via iTunes or one of the other ebook sites.  Amazon works.  You might partner with those with like audiences.  I talk about  how to find those businesses that  surround your customer in my ezine freemium.

Today I'm writing the sales page which is a crucial step, and probably the hardest part.  Keep me posted if you try micro-pricing!

Comment by Dina Eisenberg on April 3, 2012 at 11:01am
Ok just for fun here's the sales page. What do u think? Http://SpeakupPowerfully.com/survey-Sherpa-3-2 ( hope I'm not breaking any rules)
Comment by Kate Rose on May 17, 2012 at 10:51am

Thanks for the post, Dina! I did sign up for your ezine.

Comment

You need to be a member of Small Business Bonfire to add comments!

Join Small Business Bonfire

About the Small Business Bonfire

The Small Business Bonfire is a social, educational and collaborative community founded in 2011 for entrepreneurs that provides actionable tips and tools through a small business blog, a weekly newsletter and a free online community.

Subscribe to Our Newsletter

Members

© 2020   Created by Alyssa Gregory.   Powered by

Badges  |  Report an Issue  |  Terms of Service