Yes and no. I did oversimplify it, and I agree that a customer needs a little more commitment than a $5.00 product. I should have used the word “buyer.” And while the numbers are arbitrary in your example and mine, there is a type of consumer out there that will not spend any money until they’re 200% convinced they should. There is another type of consumer that will pay a small amount to test the waters.

This is the consumer I’m talking about, the ones that are willing to “pay to try.” And the idea behind this methodology is that if they’re willing to spend a few bucks –so long as they are satisfied with the product/service– they are likely to spend more money sooner than later. This is why it is important to segment those people in your lists.

I like the video, very informative as always. I don’t necessarily subscribe to the fact that if a prospect buys a $5 product from you that they will buy a $50 product product from you (these numbers are arbitrary, but they help illustrate my point). Sure it increases your chances, but most likely they will continue to read your blog posts and emails which help build the relationship. Once that relationship is established, and they trust you it’s then that they will not only buy the $5 product, but pretty much anything you are offering them. Anyone can buy the $5 product, but that does not mean they will be a “customer.” A customer is someone who buys multiple products from you over an extended period of time.

Kurt