Firesale is a type of sales promotion where you start selling a product at a very low price and then after some amount of sales the price is raised a couple times until the offer is finally closed. This method is popular for selling digital products or info-products. For example there's an e-book where the creator sell it for $17 for the first twenty sales and then for the next twenty sales the price is raised to $27 and so on.
Many players in the internet marketing world have used this method to make money online. Some internet marketing gurus even managed to sell thousand-dollars online courses and coaching program using firesale method. These gurus offer their courses at a very low price and when the early birds have completed the course and start telling everyone how great the course was the price is increased. People who read about the course and see that the price has actually been increased from its initial price tag won't wait another day to join the course. They know that waiting means they must pay more for it in the future.
If you are interested in starting your own firesale you will need to do it step by step to ensure its success. Here's how you do it:
Step #1: Start with a great product.
Yep, without a great product you firesale will be a major flop. Note that you don't have to create the product all on your own. You can hire someone to do it or bundle some closely-related Private Label Rights (PLR) products or buy products with resale right and bundle them.
Step #2: Decide how many copies you want to sell.
Do you want to limit the sales to 200, 300 or 500 copies? Make up your mind from the start. Will you be comfortable with the profits if you only sell 200 copies or do you think 500 will do it?
Step #3: Pricing - big discount is mandatory.
If you think your product worth $47 sell it for as low as $17. People like to buy cheap products and you want as many people to get the word out about your product so it's ok if you "lose money" in the beginning.
Step #4. Get the buzz out.
Go to forums related to your product. Approach the high-profile members and offer to give your product for free in exchange for an honest review. I've seen this method used over and over again in many internet marketing forums. Members are reluctant to buy a new product until some highly-respected members come and share their reviews.
Step #5: Increase the price tag.
Once sales are pouring in and all the buzz is out it's time to increase the price. Your previously $17 info-product is now sold for $27. Do remember to limit the sales at this price point. After some numbers of copies are sold (say 30 or 50 copies) increase the price once again. Every time you increase the price make sure you get the word out so those who haven't buy it understand that you're telling the truth and you will keep increasing the price over time.
Step #6: Stop.
Remember step #2? When that limit is reached stop selling! Mention that is your sales page, remove the "Buy Now" button, spread the word on forums and inform all previous buyers that you are now officially close the offer. Don't be greedy and keep selling it once the limit is reached. If you want to make more money start with a new product idea and do it all over again. Your second product can be a completely different product from the first one or it could be complement - that's your choice.
An exception to this point is when someone returns your product and asks for a refund. In this case you can resell the copy to another person. A common way to do this is to make a waiting list. On your sales page instead of the "Buy Now" button you place a small form where any interested prospects can submit their email address and opt to enter the waiting list. If someone ask for a refund send an email to the first on the list. Tell him that you have one copy a available and if he's still interested in the product he have 24 hours to get it or else you'll pass it on the next person on the list.
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That's it, six simple steps in starting your own firesale. You should note that these steps aren't written in stone. Sprinkle your own creativity along the way. Everyone is unique so having a unique firesale will only make you stand out from the firesale crowd and that's a good thing in case you haven't noticed.