One of the most difficult decisions for any internet marketer is how to price their products.  I’m sure you have seen, for example, ebooks sold in bundles for $7.00.  On the other hand their are single ebooks being sold at $97.00.  There are internet marketing courses that sell for $97.00 and there are internet marketing courses that sell for thousands of dollars.  What is the right price for your product?

Pricing your product is an extremely important decision. There are only two things that determine your revenue.  How much you sell and at what price do you sell it.  If you price your product too low, you will be leaving a lot of profit on the table.  If you price it too high, your sales will be poor.

There are some general guidelines that seem to be unwritten laws when it comes to pricing.  One generally accepted guideline is you can sell an ebook for up to $97.00  There are not a lot of $97 ebooks out there and there certainly aren’t many if any at all above that.  The most popular price range for ebooks is between $27 and $67. 

The second unwritten rule is, audio products are worth more than ebooks and video products are worth more than audio products.  If you sell an ebook for $27 then an audio of the same ebook should be at least 10 to 20 dollars more.  A video of the same material would generally be higher than that.

The biggest factor in determining your product price is to look at your competition.  If you are selling the same or similar product to others in your niche, and they are all selling at $37 you may have a hard time selling yours for $97. 

If you can define a point of differentiation between your product and your competitors you may be able to sell it for more money.  If you can’t, you are not going to get away selling much higher than the competition.

Another component in the price decision is, what kind of bonus package are you offering with your product.  If you are an expert in your field, and part of your bonus is a one on one consultation with you, that could justify getting a high price for your product.  It depends on your niche and your personal reputation within your niche.  If your bonus package is similar to everyone else’s, then you can’t really justify much of a price differential. 

There is one more component to the pricing puzzle.  Your exposure and traffic versus your competitions. If you have a number one ranking in Google for all of your search terms, you can probably successfully sell your product for more than your competitor.  The sheer volume you have, versus the non exposure your competitor can many times justify a higher price.

Pricing is an important part of you internet marketing strategy. You need to look at all the factors involved to determine the best price.  One thing you need to keep in mind though, you can always change your price.  Testing how one price works versus another price is, in the end, what will determine your best selling price.