Cherie Ang is the owner of http://www.SGProfitSite.com. To find the best home based business ideas and opportunities so you can work at home visit: http://www.SGProfitSite.com
You are finally ready to market your product and chomping at the bit to get moving. The affiliate marketing network software package you designed has been tested, tweaked, tested again, and is finally ready to be debuted to the general public and hopefully also eager network marketers who are willing to spend a pretty penny on this little bit of code that will make life so much easier for them! How to determine the price for your affiliate marketing network software package, however, is a hurdle you have not yet been able to overcome and even though the site is ready, you have spent the last three days agonizing on what to charge for your software package.
You might have had a figure in mind – early on – but after perusing some competitors’ sites and finding out what they have to offer, you might no longer be so sure of yourself. After all, if you are charging too much money, you will virtually drive your customers, whom you just painstakingly convinced of their need for your affiliate marketing network software package, to their websites and pretty much closed their deals for them. Conversely, if you fail to charge enough to make a profit, then you might as well just quit now before you spend another dime that you will not recuperate since you are thinking of selling your product at a loss.
While there is no hard and fast rule that establishes how to determine the price for your affiliate marketing network software, there are some general tips to consider:
1. Even though your competition’s pricing structure should have a marginal influence on your pricing decisions, it should not be the driving force.
2. You need to make enough money to cover your overhead and then still bring in a little extra, which is referred to as your net profit. Since the net profit is the money you will use for expansion and also for your personal salary, you want to charge sufficiently to ensure that it falls within the agreed upon limits of your marketing plan.
3. If you find that your markup is higher than that of other software developers, find a way to sell the consumer on your product by offering a little something extra that will not cost you a lot of money. This could be free technical support for three months, a subscription for technical support services for a year, an e-book on the advantages of using affiliate marketing network software to increase the marketers’ profit margin (by far the least expensive option), or any other little commodity that will set your product apart from the rest.
As you can see, how to determine the price for your affiliate marketing network software package depends in large part on your marketing plan and your ability to up-sell your services. Measuring yourself against the yard stick of the competition, especially the big box stores, will not only tempt you to sell yourself short but may seriously jeopardize your ability to turn a profit, and thus expand your business, within a reasonable period of time.
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