It’s true.
A good example of a successful premium (free bonus) was in the Ginsu knife infomercials. If you’re familiar with the old Ginsu knife infomercials… you will remember how they’d use the “pile-on-technique” to get you to order. Can you remember, it went something like this…
“But wait, that’s not all! If you order immediately… you’ll not only receive the entire 36-piece set of Ginsu knives, I’ll also send you a second set absolutely free. And, you still get the free steak knife, the free cutting board… and… etc., etc., etc.”
Anyhow, the reason they did this… and the reason just about every infomercial uses the “pile-on-technique” is this: It works!
But the lesson here is: Whatever your product or service is, you should always include free bonuses to increase the perceived value of your offer and increase your sales and profit margins. Just use your imagination and I’m sure you can think of quite a number of ways to use high-perceived value premiums.
By the way, marketing wizard, Jay Abraham is the master at using the “pile-on-technique” to get people to buy. If you buy any of his stuff (which I highly recommend) you’ll be on the receiving end of a first-class education in how to use the “pile-on-technique”. He’ll sell a $5,000 seminar and “pile-on” over $10,000 worth of premiums if you sign up for the seminar.
Anyhow, if you’re not already, I suggest you use the “pile-on-technique” to boost your sales and profit margins. And the key to doing that by getting the prospect thinking: “Wow! I get all that valuable stuff for FREE? Damn, I’d have to be a moron not to get in on that offer!”
Look: You shouldn’t just aim to satisfy your customers. You should aim to astonish them! And the easiest way to astonish the customer is to deliver more than they pay for.
A few other important points to remember to successfully boost your sales using premiums (free bonuses):
* Always quantify the value of each premium (free bonus), both in real terms and perceived value. For example, you may offer a free bonus report that has a real price of $49.97… but… in the right hands could make somebody $10,000. Make damn sure you sell and educate the prospect about what you’re doing for them. Don’t give away $1,000 worth of free stuff without making sure the prospect knows exactly what you’ve just done for them!
* With already touched on this but it’s worth mentioning again: Your premium(s) must be desirable, of good quality, and have a high perceived that enhances the overall value of your main product. If you give away junk… not only will it not have any positive impact on your sales… in all likelihood it’ll backfire on you and hurt your sales.
* You can (and should) use premiums as a compel prospects to act fast and order your product or service right away. Maybe you’ve got a limited number of premiums you can give away. Maybe there’s a time-deadline on your premium offer. You get the idea. This is a scarcity tactic and the more a prospect feels that there’s a very real chance that if they stall they’re going to miss out on possessing the premium(s)… the faster they’re likely to order!
* As a general rule of thumb, offering 3 – 5 premiums is optimal. Offering too many premiums (say 10 – 12) sends up a “red flag” in the prospects mind because they start thinking to themselves, “Gee, if they’re giving away all those free bonuses I guess they’re a bit embarrassed about the quality / price of the main product.” Too many premiums are overkill – it will backfire on your sales conversion.
* The very best low-cost / high-perceived value premium is INFORMATION. For example, it costs next to nothing to create a simple report / CD / DVD etc.,… yet… the information itself can be immensely value… maybe even life-changing!
Okay, that about wraps up this article.
If you’re not using and capatilizing on proven power of premiums… shame on you!
Till next time.
Dan Lok
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