The 10:1 Marketing Rule

What’s The 10:1 Marketing Rule? Simply put, it means the price at which you’re selling your product (assuming it’s a physical product vs. digital delivery) must be priced a minimum of ten times your production cost for that product to be a viable product long term.

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The 10:1 rule is one of the major reasons why information  marketing  is such a popular business model.  Info marketers routinely  get  a  ten  to  twelve  times markup or more (in many cases, much much more) over their cost to produce the product.   

The 10:1 Marketing Rule

The attractive markup is why new  information marketers come into the market every day.

No more busting your butt for a measly,10%, 15% or 20% margin over costs. The  1000%  markup  allows   you  to recoup   developments   costs   quickly, pay  affiliate  partners   a   meaningful percentage,  and  build  a  business  of real value.

So, what’s it all mean in real numbers? If  it  costs  you  $10  to  produce  your product then you should be selling it at around $100 or more.

If you follow the pricing rule of  “7” then it might be a $97 retail product. If it’s $30 to produce then it needs to be a $297 or higher product.  If it’s $100 to produce then that’s at least  a  $997 product.  And so on and so forth.

But let’s look at it from another standpoint.  What if you’re producing an info product that costs you $30, but the market you’re selling into won’t spend more than $97 on that type of information product. What should you do?

If $97 seems to be the “number” in your market then you need to figure out what you can package for them that costs you no more than around  $10.   You may have to eliminate some of the content you were  wanting  to include  in your product to bring your numbers in line.

Maybe the additional  material can  be bonus   downloadable   information   or be saved for a  separate product.   You decide  what  will  work  best  for  you. But the bottom line is you need to bring your production costs as close in line to the 10:1 rule as you can.

Now, if the product is simply a  lead generation  product  for  other   higher ticket items that you sell then you can throw  the  10:1  rule  out   altogether. Many  marketers  are  even  okay  with losing   money   on   that   initial   sale because  they   know  their  back  end conversion numbers so well they know they don’t have to make any money on that initial sale.

But if the product you’re selling is one you want to be a highly profitable cash producer for you, then make sure you follow the 10:1 rule.

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