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- Reason number six,
and this is a very interesting one.
By having higher prices
you can create what I call big paydays.
Big paydays.
If you follow any kind of internet launches
and some of these information products,
educational products,
you'll notice you hear sometimes--
How many of you follow those?
Help me out on some of those lists.
You hear some of these guys,
they do half a million dollars in 24 hours.
A million dollars in 24 hours.
Two million dollars in 24 hours or in one week.
Or five million dollars in 30 days.
Most of these launches,
most of the time they are selling at anywhere
from could be 1000, 2000 to $5000.
They sell 200 and 55 hundred or 1000 units.
And that's how they get to those numbers.
Imagine if they're doing the same launch,
but they're selling a $20 ebook.
It would be very, very difficult for them
to get those numbers.
Did that make sense?
- [Man] Yeah.
- Yeah, so you notice, observe,
most of that group
create these big paydays hyping them.
They're not selling a seven dollar thing, man.
Right, they're not selling a seven dollar thing.
And here's a big part of it,
customer funded business model.
So, a lot of entrepreneurs,
sometimes they tell me that, oh, Dan,
I need capital, I need money.
I want an investor.
An investor is the last person
you wanna go to for source capital.
If he had been in business for
a certain period of time,
if you have a customer base,
the best way, the best person
that could finance what you do
is your customers.
Go to them and sell them some stuff.
Have them fund your business.
Offer them a product.
Offer them a package.
Offer them whatever service.
Do a joint venture with somebody else
and have them promote to your list.
Customer, and they're are many, many models.
You can go to your customers and say,
I'm planning to do this program,
I'm planning to launch this product or services,
would you be willing to pre-pay for it?
Collect the money upfront
and then develop the product.
Or, well, you know,
it's just an information example.
I'm thinking of doing a membership program.
It's reoccurring.
Would you willing to be join that?
That's also them funding your business.
Okay, or it could also be something like
beta tester group as software.
They do that too.
I have an example.
I see recently a lot of ads on YouTube
and also on Facebook
by a company called MasterClass.
And how many have seen that, MasterClass?
It's pretty interesting,
masterclass.com I believe.
And it is a program.
Basically you could learn
how to perform from Usher.
So Usher create this video series
and you will learn, he will teach you.
And you will learn how to act
from some of the greatest actors
in the world from Hollywood.
How to play tennis from champions.
And, the model they have,
you can see it's $90 for the program,
and I was browsing around,
and they actually collecting money upfront.
It takes $90 and we're gonna launch the program
in two months or three months,
but you get the first dip or best price, whatever.
But you pay upfront.
So that's a very smart model.
So they're running ads.
They are still creating the product
but they're getting money upfront.
They're getting money upfront.
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