I had a friend tell me the other day that reality is 90% perception. This is a school of thought that I subscribe to myself, considering that we each approach any given thing from our own individual frame of reference. Those references might include past experience, personal investment, assumptions made through association of others' experiences, etc.

In regards to Internet Marketing, you hear a lot of talk of perceived value. That talk is mostly from the sellers end, discussing the benefits of a higher perceived value on digital or information products that are sold online...

The concept is that if you place a higher ticket price on your info product, the buyer will subconciously place a higher value on that product in regards to quality. The pricing factor alone can also lend to the level of respect that visitor develops for the seller, or an assumption of expertise and/or authority status.

But there are two sides to this coin of perception, and the one I want to discuss today - in this post - is how that perceived value plays a part in the results you get from the info-products that you buy online.

For the record, I am not a big fan of high-ticket info products. Particularly when the affiliate commission is set to 50% and when that commission rate is public knowledge. You can read my full rant on that here (published in early 2005).

Obviously there are points on this topic that can range from the stance of seller, to affiliate, to buyer. But the point that I want to discuss here is how perceived value can play a part in the products that you buy. "You" meaning you, me, and anyone else reading along.

It came up earlier this week in a conversation about Stompernet, due to the price point of membership - which is almost $800/month. I did not directly promote the membership given my stance on high-ticket affiliate promotions, but several people did ask my take on the pricing - and whether I thought it was worth every penny, or just plain ridiculous.

So here's my official take on that:

When a person pays $800/month to learn somethingâ€¦ they will match that dollar with their attention, and actually work harder to launch their successful venture - based on that one motivating factor alone (their investment in it).

Take two people - Person A and Person B. Person A chooses to join Stompernet to learn the ropes, and Person B chooses to learn Internet Marketing on their own - through a variety of free or inexpensive sources.

All other things being equal, Person A is more likely to succeed. Spending $800/month creates a sense of urgency within that person that is a driving force to actually complete Step 1, Step 2, Step 3 and so on.

Basically, it induces follow-through.

That's not to downplay the value that Stompernet offers their members, not by any means. Its not your typical membership site. I'm merely using it as an example since its been such a hot topic lately.

But stop for a second and consider the value of follow-through. Try to put a price tag on the benefits of achieving the number goal in your life at this very moment. That puts it in a whole new light, doesnt it?

Consider this second comparison:

You talk to a close friend about once a week about your most personal thoughts and feelings. They offer advice and together you come to some reasonable conclusions and possible solutions.

You talk to a coach or therapist each week, at a rate of $175/hour. Together you come to some reasonable conclusions and possible solutions.

Which scenario is more likely to induce action? The second, of course. Even if both conversations are equal in all other elements, you are more likely to take forward action when you have a substantial investment involved. Period.

For that reason, the price tag alone can be more of a positive than a negative. Its simply a mentality, or a perception, but it holds true.

Ask yourself this: How often are you going to spend more than $100... without making sure that you get value out of that investment?

And so, it could be said that the value of a product is actually entirely up to you . The perceived value is directly related to the results you get from that product - whether it be a service, an ebook, or even an event. And those results are generally based on your investment in that product.

Let that one sink in.

If you look at the price on a product, specifically a product that involves an investment in self, and you choose to pass based on price point alone... that may be more an indication that you are not ready to move forward than it is a perception about the value of the actual product.

There are a lot of psychological factors involved with pricing - on both ends. Just consider the story from the popular One Minute Millionaire book 😉

Your thoughts are of course welcomed...

Best,

