What do you think?

[TigerSoftware]

Hi Gang,


I know it has been a little quiet around here and hopefully that will change soon.

I am in the middle of working through a company restructure. I am missing out on a lot of income because I don't have my sales system in place.

With that said, I have been looking over some of Mike Hill's stuff and his Value Trojan idea really opened my eyes to some possibilities with what I am working on.

Basically it is a continuity program for less than $5.00 but the value should be a lot higher. Most people won't think twice about the $5.00 monthly fee and will stay in the program a lot longer. Even if they don't use the product but might use it.

I know this works because I did the same thing. lol Almost a year in one program at $7.00 and I didn't use it at all. I just stayed because I was going to use it. Crazy but effective.

Mike ran some numbers and it is pretty incredible by the time year two comes around.

Now, I have been really thinking of setting this up using TSmaker.

A couple of thoughts as to why TSmaker might be a good Value Trojan option:


Huge Mass Appeal which means a lot of users.
Incredible value compared to the $5.00 price point which should increase the stick rate.
People tend to attach themselves to software they feel comfortable with which will increase the stick rate.



The cons would be support. The only solution is more videos (which was already planned) and using a forum for peer to peer support.

The forums would need moderation and I could charge extra for support. The forum is actually good for retention as well. I could set this up with a section that people could exchange programs. This also would help the stick rate.

I don't know...

While thinking about this all week I really like the idea. I just wonder if I am missing anything.


Any thoughts? :)




Thomas

[TigerSoftware]

Great conversation we got going here. hehe


Well, with this small price I would be able to bring in a lot of people that I could data mine for future sales. Another pro when it comes to this.


Bhueller, Bhueller, Bhueller? :D


I will be testing this. ;)



Thomas

[BlueSquares]

Hey Thomas. Happy New Year!!! :D

This isn't the 1st time I've read about the $5-$10 membership concept. It definitely works. I recall being signed up to a very basic PLR service that cost $5/mth and didn't cancel because I saw it delivering more value AND $5 didn't impact my bottom line. 8 months later, they made $45 from me. Angela's backlinks functions on the same idea as well. I'm sure she's banking.

I can also see "stick rate" being a big factor too. Take my iPhone for example. Nice phone...amazing Apps. In fact, I've invested so much into the apps...they've guaranteed I'll buy the next iPhone to "rollover" the apps. Ingenious marketing.

The question is, how do you plan on utilizing the $5 concept with TS?


-Jesus

[TigerSoftware]

Hey Thomas. Happy New Year!!! :D

This isn't the 1st time I've read about the $5-$10 membership concept. It definitely works. I recall being signed up to a very basic PLR service that cost $5/mth and didn't cancel because I saw it delivering more value AND $5 didn't impact my bottom line. 8 months later, they made $45 from me. Angela's backlinks functions on the same idea as well. I'm sure she's banking.

I can also see "stick rate" being a big factor too. Take my iPhone for example. Nice phone...amazing Apps. In fact, I've invested so much into the apps...they've guaranteed I'll buy the next iPhone to "rollover" the apps. Ingenious marketing.

The question is, how do you plan on utilizing the $5 concept with TS?


-Jesus

Happy New Year Jesus!

I was thinking of just setting the software up as free trial that will roll into a $5 monthly fee.


They can cancel anytime they want and the software will deactivate.

I was thinking of hitting it niche by niche. Create software files they can start using right away. Once they get familiar with the software they will be able to enhance it to their own liking. The more they change it the more they will continue to use it.

The great thing about Tsmaker is the ability to run many different programs that they can use to help run their lives. So there can be niche related but also budgeting uses, weight loss and so on...

I have been sucked in on the low fee continuity as well. hehe


Thomas

[TigerSoftware]

The numbers is what got me excited.

I attached a quick view of what the numbers would be at 10 orders per day with a 9 month retention.

I should be able to get a lot more than 10 orders per day especially at this price. :D

Also, I would bet the retention will be a lot longer. Once people get comfortable with a software program they won't let it go easily.

Especially one they can add and remove stuff to make it "theirs".

The revenue is in blue.



Edited: I also think the price will low enough to keep them from worrying about the monthly fees.


Thomas

[BlueSquares]

w.o.w.

And I don't mean the game.

That is impressive. Stick-rate is a no-brainer with a solution like this. Just make sure you appeal to the simpler masses by offering immediate monthly solutions (PLR maybe) in case they don't go the "developer" route.

Other concepts to expand your mind:

Offer a "CD" of the month as an Upsell. For $9.95/mth, they get mailed a "Thomas-approved" CD every month with rebrandable software you can't find online. The CD itself costs $4 to ship via Kunaki. The full lead capture is priceless. ;)

[TigerSoftware]

w.o.w.

And I don't mean the game.

That is impressive. Stick-rate is a no-brainer with a solution like this. Just make sure you appeal to the simpler masses by offering immediate monthly solutions (PLR maybe) in case they don't go the "developer" route.

Other concepts to expand your mind:

Offer a "CD" of the month as an Upsell. For $9.95/mth, they get mailed a "Thomas-approved" CD every month with rebrandable software you can't find online. The CD itself costs $4 to ship via Kunaki. The full lead capture is priceless. ;)

Thanks for the input my friend.

I am thinking the upsell will depend on the niche I am targeting. For instance, I will be targeting real estate investors. I will set up some upsells directly for them.

I could upsell IM'ers on a viral software or allow them to create their own viral software for a monthly or flat fee. ;)

There is a lot of markets I could hit. Honestly I don't even know all the markets yet. lol

The data mining will be fantastic as well. There will be people that come in from real estate that could be cross sold internet marketing materials for their business. :)


That is why I was getting excited about this.


Thomas

[TigerSoftware]

I forgot to mention that I am working on a web solution that does something similar to TSB and TSmaker. Now that will be a fantastic upsell.



Thomas

[howdab2]

I thinkits a winner, Thomas.

I myself have done the same, just because the price was low.
I have been in a monthly membership for business ideas for 2 years now, its only 9.99 a month!
And I rarley login to use the site LoL, but I will use that info.. someday...

I also stay in because I occassionally get invited to to beta tests for the marketer,
and I have gotten access to some cool paid tools (for free!) because I was "in the loop"...

There is a lot of value in the monthly, and thats also why I stay. I think you offer the same, so

Go for it!



Howard

[TigerSoftware]

I thinkits a winner, Thomas.

I myself have done the same, just because the price was low.
I have been in a monthly membership for business ideas for 2 years now, its only 9.99 a month!
And I rarley login to use the site LoL, but I will use that info.. someday...

I also stay in because I occassionally get invited to to beta tests for the marketer,
and I have gotten access to some cool paid tools (for free!) because I was "in the loop"...

There is a lot of value in the monthly, and thats also why I stay. I think you offer the same, so

Go for it!



Howard

Thanks Howard. I paid $7 a month for close to a year just because I was planning on using the membership. I never did. lol

I know the low payments will work. hehe

The TSB Pro users will still be able to be affiliates for TSmaker. One of the benefits of being a TSB Pro user. It will be up to the individual as to whether they want to for this price point. I really never thought about a low price point for continuity it until I ran the numbers.

This may be something some of our users think about when constructing their own offers.


Thomas

[fortesque]

Thomas:
really interesting concept. Here's another example, although different conditions. I use Max Registry Cleaner. Initial price is $29.95. For an additonal $9.95 I get all updates. However, when the annual subscription expires, they bill me $39 and change because they charge me for four years subscription to updates (4x$9.95). Now, I could change to another reg cleaner but why would I? It would cost me close to the $39+ for one year and they already have me hooked in for the next four years. So, on their initial sale they got their price plus a subscription renewal fee. Not bad marketing.
John B

[TigerSoftware]

Thomas:
really interesting concept. Here's another example, although different conditions. I use Max Registry Cleaner. Initial price is $29.95. For an additonal $9.95 I get all updates. However, when the annual subscription expires, they bill me $39 and change because they charge me for four years subscription to updates (4x$9.95). Now, I could change to another reg cleaner but why would I? It would cost me close to the $39+ for one year and they already have me hooked in for the next four years. So, on their initial sale they got their price plus a subscription renewal fee. Not bad marketing.
John B

Great marketing!

I also laughed at having to pay a yearly fee at Sam's Club just so I can go there and purchase more stuff. :D


Thomas

[TigerSoftware]

Here is another number crunch.

It is 30 orders a day or 900 a month. I am still using 9 month retention but do believe it will be a lot longer.

Check the attached file.

The first year is the top blue highlighted number. The second year is the second blue highlighted number.



Thomas

[nealtucker]

Here is another number crunch.

It is 30 orders a day or 900 a month. I am still using 9 month retention but do believe it will be a lot longer.

Check the attached file.

The first year is the top blue highlighted number. The second year is the second blue highlighted number.



Thomas

That's a lot of dosh Thomas, and an interesting concept which be could be followed in a round about way with pro users, It's like the iphone apps market with high quality software for $1.00 the guy who made the ocarina wind instrument app, sold over 1 million, I seen it on the TV and the next day told my friend about the news story and with that he got out his iphone and down loaded it for him self, the thing is he's never
played an instrument in his life, I said why do you want that, he said well it's only a $1.00 or £0.65p England

[TigerSoftware]

That's a lot of dosh Thomas, and an interesting concept which be could be followed in a round about way with pro users, It's like the iphone apps market with high quality software for $1.00 the guy who made the ocarina wind instrument app, sold over 1 million, I seen it on the TV and the next day told my friend about the news story and with that he got out his iphone and down loaded it for him self, the thing is he's never
played an instrument in his life, I said why do you want that, he said well it's only a $1.00 or £0.65p England

I think it will be easy to sell when it comes to value versus price.



Thomas

[tlevell]

sounds good to me and now I think im gonna do the same thing with some PLR products!

[Debbie]

I hate to be the naysayer in the crowd. Unless I'm misunderstanding what you intend to do, I think it devalues your software, Thomas.

And if it doesn't work as you wish, it will be hard to bring the price back up and expect people to buy in.

And many people find that assumptions about retention rate just don't work out.

With the right marketing... and the right prices, I think you could make a lot more than the numbers you're posting here.

A low price makes TSMaker a commodity. Personally, I don't like to compete on price or deal with low-price buyers.

Just my 2 cents. Don't mean to offend.

Debbie

[TigerSoftware]

I hate to be the naysayer in the crowd. Unless I'm misunderstanding what you intend to do, I think it devalues your software, Thomas.

And if it doesn't work as you wish, it will be hard to bring the price back up and expect people to buy in.

And many people find that assumptions about retention rate just don't work out.

With the right marketing... and the right prices, I think you could make a lot more than the numbers you're posting here.

A low price makes TSMaker a commodity. Personally, I don't like to compete on price or deal with low-price buyers.

Just my 2 cents. Don't mean to offend.

Debbie

Hi Debbie,


Thanks for your input and no, you didn't offend. I wanted to hear your opinion which helps a lot.

Here was my thought process. Right or wrong. :D


I have looked at the perceived value and am not too worry about it. I think the software will show its true value.

If I were to do this, I am more worried that the value is CONSIDERABLY higher than the monthly fee. So much that it will hurt them to stop paying just in case they might use it later.


Here was my plan to offset the value problem:

The main site will have it priced higher. I was thinking $20.00 a month. I know from past experience that people will think twice, even three times at that price. Users will do the math and realize they will be paying $240.00 each and every year.


This should set the value higher.


I will develop what I call feeder sites that lead into TSmaker. These feeder sites will help me break down the niches and sub niches. On these sites, I will offer a discount where they can lock in the lower price. Of course people will be interested in the normal retail price and check it out at the main site.

This will do a few things. It will set a higher perceived value of the software. They can see the higher price on the main site.

It should also help retain customers. If they don't continue with the low locked in for life monthly fee, then they will have to pay full retail price if they want to use the software again.

Just thinking about this now but it will also help in price changes. That is if I wanted to raise the price. I just stop using the discount codes or lower discounts on the monthly fee.



Support:

Support will be limited to peer to peer forums, help documentation and videos. I could charge a yearly fee for support which is the norm in the software industry.

I won't really know the retention rate until I test it. I do have some experience when dealing with software and monthly fees. Most people do no like it. Monthly isn't standard even though yearly upgrades is sort of the same thing. :)

The peer to peer forums will help in retention. People love to be creative and by giving them a way to swap software programs will help that creative side. Any type of social atmosphere will help retain customers.

Continual development will help in retention as well. I really can't lose in this because I plan on further enhancements to TSB Pro and I can simply port some of those over to TSmaker. No more work really but people see that they are getting more and more for that small monthly fee.

I do know, from experience, that people do get attached to software. Especially once they are familiar with it. There is a lot more pressure on buyers to understand the software quickly at higher price points. So much that it is a lot easier to get "buyers remorse". I am hoping to alleviate that problem with a lower price point.



What am I doing here:


I want them to get used to the way the software works. It will then be far easier to up sell them on my website builder which will be priced considerably higher with a monthly hosting fee. They will be able to build their own CRM web based systems. Then I can offer seo, ppc and all those llovely IM services as another monthly fee. As you can see, there is a lot of possibilities here. :)

The true power is in the data mining. This will give me many possible ways of making more money with cross sales and up sells. TSmaker has mass appeal which is a great thing. People do have a lot in common when it comes to certain things and with proper surveys it will allow me to tap into a lot of other products.




Hopefully this makes sense. I have been putting a lot of thought into this and I definitely understand your reservations, Debbie. I considered a lot of them but the more I think about this the more I like the idea.



There won't be any way of knowing until I really test this.



Thomas

[TigerSoftware]

sounds good to me and now I think im gonna do the same thing with some PLR products!

That is why I wanted to discuss this. :) I think a lot of people may be able to use these Value Trojans. You can add these pretty quickly if you have other sales funnels setup. Simply add it as a free trial when the purchase from your other sales funnels.

Or you can use add other affiliate continuity products to your current sales funnel. ;)




Thomas

[nealtucker]

That is why I wanted to discuss this. :) I think a lot of people may be able to use these Value Trojans. You can add these pretty quickly if you have other sales funnels setup. Simply add it as a free trial when the purchase from your other sales funnels.

Or you can use add other affiliate continuity products to your current sales funnel. ;)




Thomas

Using the strategy of maine site true high price $995.00 or what ever will keep the value high, this is used by a few internet marketers like Jeramey Glislasen and a few of his partners, most of there sites are member sites, one of which is for software and PLR products set at $995.00 life time membership or $395.00 silver access for the year. then as I have, if you purchase some thing from one of his partners you get silver access free for a year with the up sell of $395.00 life time member ship or $27.00 silver life time membership.

I think the line "life time Membership " sounds very powerful. may be you could use that strategy as well T. :)

[TigerSoftware]

Using the strategy of maine site true high price $995.00 or what ever will keep the value high, this is used by a few internet marketers like Jeramey Glislasen and a few of his partners, most of there sites are member sites, one of which is for software and PLR products set at $995.00 life time membership or $395.00 silver access for the year. then as I have, if you purchase some thing from one of his partners you get silver access free for a year with the up sell of $395.00 life time member ship or $27.00 silver life time membership.

I think the line "life time Membership " sounds very powerful. may be you could use that strategy as well T. :)

Great post Neal. The thought crossed my mind for a one time, lifetime fee as an up-sell. I do like the sounds of a "life time membership" better. ;)

I really do love this marketing stuff. So many ways to make money.

[nealtucker]

Great post Neal. The thought crossed my mind for a one time, lifetime fee as an up-sell. I do like the sounds of a "life time membership" better. ;)

I really do love this marketing stuff. So many ways to make money.

Yes, the Life time membership option has a certain pull, just to add to the previous post the $995.00 is aimed at the IM section and there is a lot of plr books and software which.. to be honest won't set the world on fire but the draw is you can sell all this stuff and keep %100 commission, the lower bronze and silver is less content and %50 commission, the thing is for the $27.00 life time membership up sell, you get full use of the products on offer and can sell them for %50.. good for both party's. As for updates they seem to offer 1 or 2 software products and about 3 plr books to sell a year,
Plus on there site they are promoting there partners products as well

Just a bit more sauce for the pot, Thomas :)

[howdab2]

I think with the economy and people tightening their spending,
the low monthly fee is defintely a good strategy and wouldn't devalue the
software at all.

Being able to access such a product at that low monthly
price would be an incredible value in the current economy.


Howard

[TigerSoftware]

I think with the economy and people tightening their spending,
the low monthly fee is defintely a good strategy and wouldn't devalue the
software at all.

Being able to access such a product at that low monthly
price would be an incredible value in the current economy.


Howard

Exactly what I am hoping for, Howard. :) Hopefully it will build some brand loyalty as well.



Thomas

[TigerSoftware]

Yes, the Life time membership option has a certain pull, just to add to the previous post the $995.00 is aimed at the IM section and there is a lot of plr books and software which.. to be honest won't set the world on fire but the draw is you can sell all this stuff and keep %100 commission, the lower bronze and silver is less content and %50 commission, the thing is for the $27.00 life time membership up sell, you get full use of the products on offer and can sell them for %50.. good for both party's. As for updates they seem to offer 1 or 2 software products and about 3 plr books to sell a year,
Plus on there site they are promoting there partners products as well

Just a bit more sauce for the pot, Thomas :)

Lots of different ways of spinning this. :)


Thomas

[nealtucker]

Lots of different ways of spinning this. :)


Thomas

Yes, T. I think your onto some thing good here with a mix of ideas thrown in, only my opinion but go with your Trojan model, especially in todays economic climate, I'm in a software club with PLR content but seriously thinking of pulling out at $30.00 a time, when time was good It seemed a good opportunity
with new software every month to sell and use, but out of all the products I've only used 1 or 2..... Ahh now here's the draw with this one, for some daft reason I keep on hoping the software they bring out this month is going to be just what I'm looking for :confused: and every month it never is.....it's the small bit of excited expectation I cling on to, Daahhhhh.

As for the other $995.00 model I'm sure they hardly get any takers as they offer the same deals in emails for a fraction of the price. also the point being you have some great software title's which come to light now and again with one's I've not herd of Re- website builder? I do have your PDF software which I purchased
over 2 years ago from a marketer....great piece of software, long before I new about Tiger software and Mr.T. Point being.... your software rocks...end of :D

[TigerSoftware]

Yes, T. I think your onto some thing good here with a mix of ideas thrown in, only my opinion but go with your Trojan model, especially in todays economic climate, I'm in a software club with PLR content but seriously thinking of pulling out at $30.00 a time, when time was good It seemed a good opportunity
with new software every month to sell and use, but out of all the products I've only used 1 or 2..... Ahh now here's the draw with this one, for some daft reason I keep on hoping the software they bring out this month is going to be just what I'm looking for :confused: and every month it never is.....it's the small bit of excited expectation I cling on to, Daahhhhh.

As for the other $995.00 model I'm sure they hardly get any takers as they offer the same deals in emails for a fraction of the price. also the point being you have some great software title's which come to light now and again with one's I've not herd of Re- website builder? I do have your PDF software which I purchased
over 2 years ago from a marketer....great piece of software, long before I new about Tiger software and Mr.T. Point being.... your software rocks...end of :D

HEHE Thanks Mate! I am blushing.

It is all about expectations which is why you kept waiting for that elusive software product each and every month. I know we all have done something similar and will continue doing the same thing over and over again.

The website builder is something that I am working on right now. It is still in research mode but I should be able to create it similar to TSB and TSmaker.

I promised myself to only work on bugs until I get the marketing down for these other products. lol

Then I will continue with enhancements to TSB, TSmaker and work on the website builder. Right now I am doing a massive keyword research and getting tons of ideas for software creations. I am going to use those software products to point back to TSmaker.

I finally get to use TSB myself. :D



Thomas