Our Guest:
Keith Perhac runs delfi-net.com, an online technical marketing agency that helps clients build evergreen funnels. They assist clients in building educational, evergreen funnels that turn leads into customers. Keith uses tools like LeadPages to guide prospects into his clients’ Infusionsoft and Drip email lists.
A Quick Preview of the Podcast:
- How to use one tactic to instantly increase revenue
- Why this tactic works even when you have little time
- How to offer your customers options they will be willing to buy
Tim Paige: Your pricing structure is one of the most important elements of your product’s success amongst a million other things. But what can make it more difficult is that there’s a lot of nuance when it comes to testing, pricing and pricing structures. But today’s guest, is here to take away a little bit of mystery when it comes to pricing structure because he was able to increase revenue for a client by 200% by incorporating to your pricing. You’ve seen it all over the place but now you’ll get a chance to learn how to implement it for your business and understand the psychology behind why it’s worked so well for Keith’s client.
I’m Tim Page, the senior conversion educator here at LeadPages and this is ConversionCast.
All right. Keith, let’s start out with the results. Can you share with us the results you were able to get from today’s case study?
Keith Perhac: Yeah. So we’re looking at about a 200% increase in revenue and generally just overall huge increases in revenue whenever you try out this tiered pricing thing.
Tim Paige: I love that. I love when we can say just a huge increase in revenue.
Keith Perhac: It’s just printing money.
Tim Paige: Yeah.
Keith Perhac: Let’s just call it what it is. It’s printing money.
Tim Paige: I love it. All right. We need to kind of the foundation so if you could tell us a little bit about who you are and what you do and what your company does.
Keith Perhac: My name is Keith Perhac. I run DelfiNet which is an online technical marketing agency. We help people build evergreen funnels using tools like LeadPages to bring people into their email system like Infusionsoft or Drip and run them through an evergreen education funnel but turns leads into customers.
Tim Paige: Love it. Perfect. Okay. And so what we’re talking about today this is what you applied this tactic for your business, correct?
Keith Perhac: For our clients, yes.
Tim Paige: For our clients’ business. Okay, got it. All right. Cool. So why don’t you tell us a little bit about maybe the before and the after and what you ended up doing?
Keith Perhac: Okay. So we’re going to talk about tiered pricing which if people don’t know is when you’re not offering one product at one price. So I’m not offering an e-book at $40. What I’m doing is I’m offering an e-book at $40. I’m offering the e-book plus maybe some videos at $120 dollars and I’m offering an e-book plus maybe an online mentorship class for $400. So the idea is that you are saving people time by letting them pay more money. Everyone has a difference between how much time they’re willing to invest versus how much money they’re willing to invest. And when you’re doing a low priced product only, you’re leaving on the table all that extra money that people who have little time but lots of money want to pay you.
Tim Paige: Right. Yeah, that’s a great point. So can you kind of give us an idea of maybe somebody that you’ve done this with and kind of outline what it looked like?
Keith Perhac: I can’t say any client name. I can say I have worked with clients like Eben Pagan, SCD Lifestyle, Ramit Sethi, the whole kit and caboodle. Every single client I’ve ever worked with as well as clients I haven’t worked with. My friends who do this as well used tiered pricing because it’s the number 1 way to increase your revenue with very little extra work.
Tim Paige: Got it. And how do you determine what the tiers are and what– Obviously it’s based on having more time or having more money. But how do you determine like what goes in each tier?
Keith Perhac: The biggest thing you need to think of is first of all how much time are you willing to invest in extra stuff. So if you have no time, easiest way to get additional items and bonuses to put in those higher tiers are things like interviews. So reach out talk to people who are in your space who people’s names will know that you can kind of borrow their fame and do an interview with them. Another way is checklist or work list anything that makes people gets success faster is going to be a great thing to add into a higher tier. A great example of that, Nathan Barry back when he was doing more info products put together a– He had a e-book on how to build apps and then his higher tiers had the actual PSD, the Photoshop templates that he used to build those apps. So now you don’t have to start from scratch. You can just use his templates and be started in 5 minutes. Right? So you saved probably 20 to 30 hours by paying an extra $100.
Tim Paige: I love it. And if somebody is not in the info space, how can you apply this the same kind of tactic?
Keith Perhac: So if you’re in like SAS products?
Tim Paige: Sure.
Keith Perhac: So if you’re in something like SAS products features, what are the features that make people more successful, more profitable? Is it inviting extra people? is it more people on the team? You want to be able to price so that you are growing with your customer. Right? so your customer as they succeed and as they get better, they have more money to pay you more money and they’re going to get more success from whatever you are offering at that higher tier.
Tim Paige: I love it. so it all comes down to not only just– People say often you need to give them more value and then ask for more money for the value. But It comes down to what is that value equate to is somebody looking to get more done in a shorter period of time and of course the willingness to spend money on that or maybe they’re a little bit more strap for cash and it’s a little more kind of do it yourself.
[0:05:15]
Keith Perhac: Right. And it’s interesting. The more successful people are and the more money they have to spend on things like that the less time they have. There’s a very direct correlation between time or money. Just imagine when you were a college student and you were doing all the– You were pirating like Adobe and all that stuff because you had to money. You didn’t have $1000 to use on Photoshop. But now the amount of time it would take me to download, deal with cracks, deal with all that stuff for every single person in my company is mind blowing. It would cost way much more than it would for me to buy the software so I just buy the software plus it’s the right thing to do.
When I was a college student, I had 60 hours in order to try and download crack Photoshop and deal with that every time an update came out. Now, how has 60 hours to deal with that? Right?
Tim Paige: Yeah. This is good. That’s a really big insight and I know there are other places that you could apply that knowledge but it’s definitely true.
Thanks, Keith. I appreciate you sharing this with us. And if anybody wants to check out your company, how can they find you?
Keith Perhac: You can find me on the web at keithperhac.com or developyourmarketing.com.
Tim Paige: I love it. Thanks again.
Keith Perhac: Thanks so much, Tim.
