Don't miss the next email

Get weekly ideas on writing, thinking, and entrepreneurship delivered fresh to your inbox.

    3 simple ways to scale your digital product revenue

    By Kieran Drew
    💡
    This is an edition of my old newsletter Digital Freedom.

    It's lightly edited but otherwise untouched. I've kept them on the site to show how the journey has evolved.

    Last week I hopped on a podcast with Jay Clouse of Creator Science to discuss the launch of High Impact Writing.

    One topic we dived into was pricing - how creators can increase their product revenue (without more reach).

    There’re 3 strategies I used to make an additional (estimated) $30,000-$50,000.

    This one’s a 6-minute read.

    Let’s dive in.

    Strategy 1: Stop playing it safe

    “The easiest way for most small businesses to make more money… is to simply charge more money.”

    - Alex Hormozi

    As a creator you’ve likely spent a year (if not more) adding value to your audience.

    But when it comes to pricing we often undervalue ourselves. Sure it’s scary as hell putting a price tag on your knowledge.

    You worry you’ll launch to the sound of crickets and look silly because you put yourself out there.

    But on a long timeframe, undercharging is more risky than over.

    Here's why.

    CUSTOMER QUALITY

    I’m sure you’ve seen the meme about the $500 client vs $5,000. It's paradoxical but generally the more someone pays you the less fussy they are.

    If cheap pricing is your differentiator you attract people who think the same.

    This means more questions, complaints, and refunds - costing time and energy that you could invest in business growth.

    CUSTOMER RESULTS

    When someone invests in their education it’s a signal they’re serious about their success.

    And the more they pay, the more they pay attention. But the inverse is also true. A cheap product is rarely top priority.

    Pricing leads to framing. And framing completely alters the customer experience.

    Higher prices, higher completion rates, better outcomes, more results to share.

    PRODUCT QUALITY

    "The bitterness of poor quality remains long after the sweetness of low price is forgotten."

    - Benjamin Franklin

    My original plan was to charge $150 for High Impact Writing because that’s ‘what everyone else is doing’.

    Instead I charged $297.

    When only 5 people bought in the first 2 hours I was ready to crawl into a hole and pretend the product never happened. But ultimately it sold 500 copies in 4 days.

    The price was an important factor.

    Why?

    Because it forces you to deliver. Yes it’s scary. But fear is an indicator you’re taking action most don’t.

    When customers picked up High Impact Writing they received an email asking to share their thoughts on Twitter.

    If the product was average, the response would've been too.

    But on the final day I was retweeting every 10 minutes (and that day grossed over $70,000 alone).

    The social proof flywheel can be incredibly powerful.

    flywheel

    I can’t tell you what to price your offer but I can give 3 lessons from the launch.

    1. Ask your customers. Run the product as beta-coaching then ask what they’d pay.
    2. Ask your peers. A tight network of straight talkers is important to get out of your own head.
    3. Be uncomfortable. If you’re not a little uncomfortable, you’re charging too little.

    And remember.

    You can either race to the bottom or set yourself apart by being higher.

    Like Dan Kennedy said, “There is no strategic benefit to being the second cheapest in the marketplace, but there is for being the most expensive.”

    Strategy 2: Tiered Pricing

    “When you only have one price for your product, you leave a lot of money on the table.”

    - Nathan Barry

    For every 10 customers you create there’re likely 2 who want to pay more.

    Think of it like going to the cinema.

    Sure, most people are just there to enjoy the movie. But others come for the hotdogs and popcorn (guilty). And the superfans want merchandise.

    The mistake is not offering a way for your audience to pay you more. If they don’t invest in you they’ll invest in your competition.

    The answer is tiered pricing - offering more value at different price points.

    This strategy also creates a price anchor. You can gently ‘push’ people toward a purchase by playing with the numbers. For example, a $100 product is more appealing compared to $1,000.

    There’re various ways you can set up tiers.

    You could have the basic offer, more resources, and then an additional bonus - like Nathan Barry did for his App Design Handbook:

    Nathan Barry App Design Handbook tiered pricing

    But for your first launch this can be confusing (for you and your customer). And confusion kills sales. So here’s what I’d suggest instead:

    SCALE YOUR ACCESS

    Use your time to create one (or two) more offers. For example, you could use a medium tier for asynchronous coaching (like voice notes or Loom recordings) and a higher tier for 1-1 synchronous coaching.

    level of access

    But price accordingly.

    Of course people will buy the higher tier if you’re selling $50 calls. But you’re building a product. You’re here to disconnect your time from money.

    The whole point is not to fill your diary.

    For High Impact Writing I used two tiers. $297 for the core product and $997 for a 1-1 call plus content review. This grossed $10,864 in additional revenue.

    But aside from money, the ‘access strategy’ has the advantage of close customer contact.

    Not only will they tell you what needs improving in your current product (from the questions they ask), they’ll also tell you what to build for your next one (from the desires they share).

    Strategy 3: The Upsell

    The difference between an upsell and tiered pricing is the upsell happens after someone has purchased your product.

    It’s powerful because the best time to sell someone something is immediately after they buy. You’ve already committed to a decision. What’s one more?

    It’s why Mcdonald's will ask if you want a shake with your order (the answer is always yes).

    So what do you upsell?

    Well, the mistake people make is offering more of the same.

    For example.

    If you’re a fitness creator who’s just sold a new exercise program for weight loss, it’s a bad idea to sell another exercise routine. You can only lift one weight at a time.

    Instead you could offer a nutrition guide to help get washboard abs by summer. Then pitch them the next program 90 days later.

    The perfect upsell is faster and/or easier results.

    For High Impact Writing, if I sold another writing guide once you purchased you’d wonder:

    • Why would I need this?
    • What’s wrong with the current offer?
    • What’s missing from what I’ve just bought?

    This poor framing leads to buyer’s remorse - more refunds.

    Instead, I offered the Viral Inspiration Lab (a swipe file) as a one-time bonus offer.

    VIL bonus

    This grossed an additional $8,350.

    This is also my first taste of layering leverage.

    And I’m not gonna lie my friend, it tastes pretty damn sweet.

    Aside from 30 minutes writing the salespage it took no extra work. Not a bad hourly rate. And going forward, two digital products will compound revenue much faster than one.

    But it’s worth noting I no longer advertise the Lab for general sale.

    Two front-end offers can be confusing. What’s more, High Impact Writing is the perfect product to start the customer journey.

    (P.S. I used Thrivecart to build the course and funnel pages. Highly recommend for any creator building their business).

    What game will you play?

    "Perhaps the reason price is all your customers care about is because you haven't given them anything else to care about."

    ​- Seth Godin

    Most creators think building their business is about improving reach: how many customers they can create.

    But these 3 strategies shift your focus to how much each customer is worth.

    Ultimately it’s more fulfilling as an entrepreneur to serve your fans instead of churning through followers.

    So charge what you’re worth and build something worth talking about.

    Speak soon,

    Kieran

    charge your worth


    Kieran Drew

    About Kieran

    Ex dentist, current writer, future Onlyfans star · Sharing what I learn about writing well, thinking clearly, and building an online business