So how do we go about creating a premium version? Let’s run through a few tips.
Remember, your premium version will be costing more. So it must offer your customer more. The clever bit is that the rise in price is always much more than the rise in effort and time needed to produce it, so you’re always the winner!
These are all good ideas:
1. Make it longer
Add more pages and more words. This really is a no-brainer way of producing a premium version.
2. Have more detail and quality in your premium version
For example facts, figures, case histories, interviews and useful contacts. Again easy.
3. Bundle in free products
Normally, customers of the ‘basic’ versions of your product have to buy these. By adding in freebies, your premium customers can then clearly see the benefits of paying extra.
4. Include more features.
Including software is a great way of doing this. Another way to do this is to create your premium version first then strip it down into a basic version. You could even produce a free, basic version to promote the premium version.
5. Offer more services
You can offer such value-added services as consultancy or mentoring.
6. Put in video and audio elements
Perhaps add in some DVDs, teleconferencing, or other extra digital content. These are the future and they add real clout to your premium version.
7. Offer more status
Upgrade your premium customers to an ‘inner circle’, ‘platinum membership’ status or similar. With this they can get personalised service, or even direct access to you.
Now this is where it starts to get exciting. Let’s have a look at the financial benefits to you when you produce a premium version.
Let’s say you are selling a course that costs £199. Your course has done pretty well over the last year. You’ve sold 500 courses netting you £99,500 – not bad for your first year in information publishing. That should be enough to tell you that you’re onto a winner, and that producing a premium version is the way forward.
So you produce your premium version: Add in some extra length, information and detail. Throw in a few extra services, such as e-mail, telephone, or Skype consultancy. And maybe a DVD or two, as well as some extra content they can download on your website. Things that offer big benefits to your customers but aren’t difficult to provide.
Using the rule of thumb above you decide to offer your premium courses at £599 a pop. That seems a big jump. But remember the rule suggests that a third of the 500 people who bought your course in the first year probably thought your product was far too cheap. And wanted to pay you a lot more!
So in your second year look at what happens: You market both courses simultaneously. A third (166 people for the sake of argument) buy the premium version while 332 buy the basic version. This what your turnover will be in year two:
332 x £199 = £66,068
166 x £599 = £99,434
TOTAL = £165,502
(In actual fact you will probably sell a lot more courses now you’re established. But to illustrate the point let’s estimate things on the low side.)
Total turnover for the year: a very healthy £165,502! Sixty five percent more turnover from much the same thing. In fact, you’ve made 50% more money from selling half as many premium courses alone!
Another very appealing aspect of producing and selling a premium version is that in the unlikely event it doesn’t work you still have your basic version to rely on. So there is really nothing to lose by trying it.
In this example is a course. But you can use the same principles with any information product: Publish a book then publish a premium hardback book. Publish a newsletter then a premium newsletter for your inner circle. Set up a website and then have an exclusive members area that costs more. Do seminars, then do premium seminars lasting several days or a weekend. The sky really is the limit.