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Do people really only value offers they've paid for?

In this episode of the podcast, we're diving into a hot topic that fires me up: Do people really only value offers they've paid for?

This common advice can mislead your marketing and sales, so we're going to set things straight.

Shall we do it?

The impact of pricing on value

Today, I want to unpack this idea that people value offers more if they pay for them, and the secondary advice to charge for what you might usually offer for free, so that people will actually value and complete it.

I'm sure you've encountered these assertions that high ticket clients are superior and people seeking freebies are just wasting time. Some experts suggest charging for webinars rather than offering them free. While those strategies might work, they're often presented with blanket statements that carry judgment and privilege. The misconception is that if people pay, or spend more, they value it more... and therefore are more likely to complete whatever they've purchased.

Yes, there is psychological evidence that price influences the perceived value of a product, but it's not the full story.

Challenging blanket marketing advice

It's crucial to challenge these two common strategies: raising prices to increase people's perceived value, and charging for what could be free to attract "high-intent" customers.

For instance, the idea that charging $25 for a webinar makes attendees more likely to act is flawed. Correlation doesn’t equal causation—there's much more at play in customer behaviour.

Privilege and judgement detox 

Now, let's address the issue of privilege and judgment in these pricing strategies. Charging for a 5-day challenge because it supposedly attracts more committed participants can be misguided. If the free challenge isn't converting, adding a price won’t fix that. If people aren't finishing the challenge, again - charging for it won't fix the design issue with the challenge itself.

The real issue might be it fails to move people closer to readiness to purchase or the sales pitch needs work. Overloading a challenge with information and too much homework might also keep people from achieving their goals, and being ready for what's next.

Keep on reading and grab links at tashcorbin.com/439

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