Greetings from Cape Verde, everyone. What a crazy trip it’s been. Over the weekend I’ll return to the U.S., visit Pittsburgh for their TedX event, and make it to Chicago for the beginning of Empire Building week.
One week from yesterday (yikes), I’ll launch my biggest business project of the year while riding the Amtrak rails home to Oregon. If you’re new to AONC or just want to catch up, check out these entries:
1. Recruitment of Case Studies
2. Synchronicity and Empire Building
3. Win a Free Copy “Ultimate Comment Edition” Post
4. Contest Results and a Comment on Comments
***
This brings us to today. The EBK is almost finished (I’m doing a few more case study interviews from the road) and ready to launch out into the world. But first I thought I’d ask an important question… how much do you think it should it cost?
Yes, I really do want to know what you think. You can post your opinion here in the comments, and there’s no wrong answer—just say what’s on your mind and we’ll see what everyone has to say. But if you need more information about it, keep reading.
Where We’re Going
The big question when planning “the next step” for any community is to ask, what is the most natural progression? Where are we going, and how does this step fit into the overall mission?
In terms of the business side of things here, almost everything in the Unconventional Guides store is deliberately under-priced compared to the value it provides. We have a 28-day community group for $100 while plenty of other people in this field charge $150+ for one phone call. We have a Frequent Flyer guide that guarantees at least one free plane ticket for just $49. And so on.
This pricing model has served me well, but it has its skeptics. Every time I raise the price of something, it ends up selling more right away. Strange but true. In Austin recently, I was fortunate to receive business advice from all kinds of people I respect and trust. Every single one of them said: “Don’t underprice this thing! An Empire Building Kit shouldn’t be low-budget.”
(The eminent Copyblogger said to me in a roomful of people who all nodded their approval: “We love you, Chris, but you need to charge more for your stuff.”)
The Goal: Build Your Own Empire
First, here’s the goal: to help aspiring emperors build a successful lifestyle business in one year by doing at least one thing every day. I define lifestyle business as a project that produces at least $50,000 a year in net income with few (or zero) employees, doing something you love that other people are thrilled to pay for.
My preference is for online businesses that can be run from anywhere, since that’s what I do, but the case studies include all kinds of people doing all kinds of things.
There are two “killer apps” to this project. The first is the collection of no-holds-barred case studies, and the second is the step-by-step, one-year plan. Emperors will get the case studies right away, and the 365 steps, tips, and reminders in daily emails for an entire year.
A Chicken for Every Pot
I’ll have three options for the EBK—one on the budget side for people just getting started (“Emperor-in-Training”), one for experienced entrepreneurs who want to take their business to the next level (“Alexander the Great”) , and one in the middle that I think will serve most people the best (“Hail Caesar!”). None of them will be extremely expensive, but none will be cheap either.
All three empire-building options include:
- Numerous (10+) case studies in a range of formats—video interviews, audio interviews, transcripts, and PDF compilations
- A detailed overview of the lifestyle business. What it is? What should you know right from the beginning? How can you create your own empire like all of the case studies have done?
- Additional instructional videos (with key lessons included in text form as well) dealing with specific topics or common questions
In each case study, I talk with the other entrepreneurs all about money—remember, these are people who make $50,000+ a year without employees and by doing something that they love. I ask them: “How did you make this happen? What was your best decision and your biggest mistake? What do you wish you had known when you were first getting started?” And so on. The focus of every conversation relates to this question: “How can other people do what you’ve done, in their own way?”
The middle and premium versions each include a number of materials related to product launches, including a 43-step checklist I use every time I produce a launch. The premium version takes the transparency further by providing a detailed breakdown of the entire Unconventional Guides business—exactly how much money comes in for each product, lessons learned from each launch, copies sold, challenges ahead, and so on.
Anyway, you can view a complete list of everything that’s included next week—for now, I just wanted you to have a good overview. And by the way, if it’s out of their price range, no one should feel any pressure whatsoever about buying the EBK. I’m thrilled that I can publish 90% of my work for free (like the 100 articles a year I post here) or for very low cost (like my upcoming print book, which will hit the stands this fall with a retail price of less than $15).
Wrap-Up
This probably isn’t the most strategic pre-launch message—I’m supposed to be telling you how amazing the EBK is and why you should buy it—but I decided it would be better to hear what people think about the pricing issue first. I’ll cover the rest of the pre-launch on Monday, as long as I get some time away from everything that’s going on in Chicago.
By the way, if you think that making money is outrageous and that I’m a bad person for doing so, then you can go ahead and tell me that here too. I know there are some people who feel that way, so let’s get this out of the way so we can all move on.
For everyone else, I’ll look forward to serving you, either through the Empire Building Kit, something else in the store, or (most important of all) through everything related to the non-profit side of AONC.
But First, the Question
After thinking about it for several weeks and getting input from everyone in Austin, I have a fairly good idea what the price of the EBK should be…. but I’d love to know what YOU think. Nothing is set in stone yet, so I’ll pay very close attention to your responses in making the final decision.
Don’t think about it too much, and don’t worry about giving the “right” answer.
How much should the Empire Building Kit cost? Feel free to provide a specific number, a range, or any general input on price and value.
###
Update: Thanks for all the feedback! There is a huge range of views in the comments — it shows what a diverse crowd we have. I’ll be in Chicago tomorrow and getting ready for the launch on Wednesday.
Image: Olivcris
April 1, 2010
JtotheA
Different models. Those familiar with your blog and work would pay a flat fee, since they know the brand. Have no idea what others would pay, but usually when it doesn’t end in a 0 or it goes to some odd pennies, people are more likely to pay. Others who are new to your material or on the fence about spending money are a different model. Do the decreasing margin on releases, but make it ridiculous. let’s say it is dividing into 365 days. Make the first 70 a flat huge fee. Then the remain in decreasing increments, and allow people to buy those in advance. The final chapters are always “the butler did it” or have the eureka moment..but it’s the meat and journey that people will want.
April 1, 2010
waldfalke
Charge less or avoid taking money. As it was mentioned above good idea is to sell it as a service and share income (depends on user’s free will and fair trade understanding).
Don’t forget to make discounts for groups, startups and local entrepreneurial communities in developing countries.
April 1, 2010
Ezgi
I agree with Greg Blencoe’s thoughts. You should definitely be making money.
I would love to buy this kit when it is out and try for myself – but currently I’m an intern and I’m not getting paid a dime. So I probably won’t be able to afford anything more than 25$-30$ at the moment(Remember that the international audience has to convert $ to their own currency too).
Since there are 3 levels as you explained, maybe you could start them of affordably and then increase the price?
Another thing that comes to my mind is setting a deal. You could set a standard price and a deal version. The deal would let people buy it cheap but when they complete the year they would pay you accordignly depending on their business? I think it makes sense – I want to pay you but I don’t have any money, so if I succeed in this business, I will be able to thank you properly. You may think people would give up, but maybe putting some conditions in the deal like reporting what they’re doing could work.
April 1, 2010
Rick Kitagawa
I think you should definitely be charging more than your other work, but I also think that having an option to pay monthly (or quarterly, or some way of making payments) would be super cool. Additionally, I think it would be kind of neat and fun to offer a lower priced-option that has buyers sign a contract that if they do make a $50k business in one year that they have to either pay you 5% of their net profits or donate that 5% to charity.
April 2, 2010
claire
Hey Chris,
I think it’d be cool if you had upgrade options for people who buy the basic package but decide later they’d like to know more from the mid or highest levels. It’d be awesome if the upgrades were just the difference in price between kits, but if that would mean a lot more work/hassle for you, I’d understand adding $5-$10 for upgrades.
As someone new to developing a business, I’m very conscious of where I put money in an effort to build my empire. The quandary becomes what class or resource or… will give me a good return for my investment? I’m torn between understanding you need to make a living and what I can afford. Gut says: $59-$79 for basic, $79-$99 middle, $99-$149 for top of the line.
If after a year of following the EBK steps, a lot of people who bought it are making good livings based on it, then you could raise the prices by $100-$300.
April 2, 2010
Raye
I have been following you for awhile your work is excellent and of great quality, I’m thrilled you are launching a new product and book this year. Pricing for EBKs should be no lower than $500. This launch is probably a major turning point in some way for your business, so go BIG! People want what you have to offer and there will be an audience happy to pay whatever price you decide to charge.
God bless you Chris!
April 2, 2010
Randy O
Interesting responses to a tough question. I think you have two schools of thought. Group one: “it’s a book w/ ideas.” Group two: “it’s consulting specific to me.”
I am a CPA (tax practice). I own my own practice w/ 1000+ clients. I don’t exist b/c of the product I offer (a tax return) but rather my expertise in the area of tax law and saving my clients money while (hopefully) helping them make more.
Group one above is setting the price below $100 and rightfully so. Group two is setting the price much higher. I agree w/ group two IF I am truely getting consulting. Consulting is specifically geared towards an individual client not a one-size-fits-all product. I’m not convinced EBK is consulting.
Ultimately, I’m an emperical data kind of guy so I want to know something works b/4 I spend $$$ on it.
For these reasons, right now I’m in group one. But I am intrigued!
Question: Will the EBK address “key dropping” for businesses both w/ employees and w/out?
April 2, 2010
Kevin M
Perhaps you should just let people pick what they will pay – a la Radiohead.
I’d price it at $399, that eliminates people that aren’t really interested but will buy it because they’re a fan. Those are the people that usually require the most hand-holding as well. If you’re in for that, by all means lower the price, but that means less time for the serious folks.
April 2, 2010
Ridlon Kiphart
Hey Chris, pricing psychology is interesting isn’t it? Here a some rapid fire thoughts:
- don’t ever price something a certain way because that’s how everybody else does it.
- price doesn’t necessarily reflect somethings true value.
- price is more than just about an amount. It says something about your product.
- you’ve cornered yourself a little with a history of dramatically underpricing your products relative to the value they produce.
- disregard the previous statement because that can always be changed.
- who is your target audience? That will make a difference as well.
Some more concrete ideas? $199 for the intro product – $499 for the high end. Even better, do a multi payment plan. Even better, make it a subscription based or monthly service since you are providing updates and ongoing support and information. These ideas effectively lower the price point and make it more palatable.
April 2, 2010
Ridlon Kiphart
Lastly Chris, it sounds like you get pounded from people that object to you charging anything for your work. I’ve seen this in several of your posts so I’m guessing it bugs you. My guess is that it does so because you provide so much value and give away so much of your time, energy, talent and heart that it’s an a-whoop when you get an email like that.
There is nothing more noble in this world than making a decent living by doing something we passionately love that genuinely helps a large number of people.
And that is exactly what you are doing my friend.
Update: OK, one last comment and then I’m really done…. but I can’t stand by and not say something when people say all they can afford is $25 or $50. Be real people. You spend that much or more on your cell phone bill, a pair of jeans, a round of drinks, dinner, cable bill or a tank of gas.
Life is all about choices and choices are all about priorities. We know what our and others’ true priorities are only by looking at the choices that we have made. $100 too much money for you for the EBK? Well then you’re just not that serious about making a change are you?
April 2, 2010
Christy
Sorry, just another thought on the guarantee… I’d much rather have a – “If this doesn’t work for you shoot me an email, tell me where you’re stuck, I’ll see if I can help. If not, I’ll give you your money back.” But that depends on whether or not you have the time to answer emails like that.
April 2, 2010
Justin P Lambert
This is something I’ve wanted to recommend to many other authors, with the caveat that I can’t say with any experience what the viability of this idea is from a financial standpoint, so thank you for the opportunity to throw it out there:
Why not supply an “inverted guarantee”? Provide access to one or two of the case studies and a “Table of Contents” of the 365 daily tips, all for free. Then, after tips 1-7 have hit their inbox, send a purchase link with options to buy the whole thing, another week’s worth of tips and another case study, or just leave with what they already read… Obviously, the best value would be for the whole thing, but let the consumer decide at what point they’re ready to commit? Then, there’s no hard sell, and we get to test drive the product first!
That said, I’d go with $149 for the full product, or $5 for each week (with case studies peppered in at a reasonable rate like one every three weeks, or whatever.)