Devaluing Content Is A Bad Move Right Now

by Paul Colligan on October 30, 2008

First of all, I have to start off by saying this is a killer deal. Anyone wearing a thinking cap will know that some of the sessions are worth more than others but the little “Vault Sale” over at Podcast Academy is a good deal (for you).

No, this isn’t an affiliate link
.

Now for TNC New Media and Gigavox, let’s talk strategy.

152 sessions (let’s say they’re an hour each) for $99.95 means each session is less than 66 cents a track.

Personally, my three (which I guess are all in the pack) are my finest three hours of content (not available in Podcast Secrets) and I’m a little biffed that they’re cheaper than an Americano at Starbucks but … that’s Tim’s choice.

But, bigger picture.

Some folk in our space are panicking.

Bad move.

We are in more control of our content than we’ve ever been.

“Big Media” is falling apart even quicker in the midst of this corporate chaos.

Keep the faith, own your stuff, don’t devalue what your doing and keep producing content of value.

I know the argument will be “hey, $99 ain’t chump changed and if Tim can get it, more power to him.

I’d agree but, … packaging it as a higher level product (I’d bet good money) marketed correctly would resulted in a bigger net, albeit with less sales.

But then I could at least say my content costs more than an a cup of coffee.

I realized something today that really hit my fancy. It’s kinda on topic – kinda not. Cornelius Fitchner is currently selling his PMPrepcast Product for $49.99 a pop. That’s a FORTY-NINE-THOUSAND-DOLLAR effective CPM.

What’s the CPM on this one?

Should this kinda thing be our goal?

Is “how cheap can we sell this?” really a good idea?

If you want the content, grab it, before Tim wises up.

At least, let’s hope he does.

Thoughts …?

  • Hey Paul,

    Good stuff as usual.

    I have to admit, your post got my attention because I've always had a love-hate relationship with cheap and free.

    My membership website, www.motivationtomove.com, has been producing premium content for three years. Last year, I decided to sell my archives on DVD and decided to put a price of $97 on it. I'll never do it again.

    On the surface it was great to sell almost $10,000 worth in a matter of a couple of days. It made Christmas better that's for sure. But then something happened.

    Almost right away I noticed more cancellations. Suddenly all of my 19.95 per month members realized they could buy three years worth of content and not have to pay as they went. That's a problem if you run a membership website.

    I also realized that I could easily sold my archive shows for triple the amount to my raving fans who wanted it "because" they were fans and would still remain a member.

    My model is to stay on the low end at 19.95 months for lots and lots of folks. I offer a great product that they truly value but doesn't take any more work from me no matter how many members I have. On the other end, I go for high end, high priced products for few people. But... my real goal is stay out of the middle - and that is what the $97 price point was. The middle cuts margins, increases service demand and in general makes me grumpy. :)

    One more thing on the economy.

    Based on a previous post you made, I have not cut my prices at all and have increased my membership over the last couple of weeks by 25%. How? I just made the decision to focus all of my time and money on marketing my business and only marketing my business. Everything else can wait until times get better. I have to admin - I'm sleeping a lot better.

    Thanks for you thoughts,

    Scott
  • Interesting announcements coming within the next two weeks - and I'm not just saying that. Not trying to be coy - just getting everything into place.
  • And, buddy, what's up with the Expo next year? Minds want to know ...

    Paul
  • Sure, but why not have the best of both worlds? Revenue AND lead gen. Plus there's the whole argument about "free" - I would be that if we did give it away for free, those who downloaded it probably wouldn't listen to it because, "how good could it be if they just gave it to me for nothing?"
  • If the content is lead gen, then why not release as a free podcast over the year. you'd probably make more money in the combo of ad-inserts and lead gen (more people will listen) than you'll make selling these off cheap?

    5 more (paid) tickets as a result of this audio series has got to make you more money than this fire sale will.

    That angle I could see.

    Paul
  • Good conversation starter as always Paul. But here's the thing - I'd agree with you if content was my end-all, be-all revenue source. But I'm in the unique position of being able to use content in a hybrid of marketing tool and revenue generator for a business.

    The value in selling the content for "a steal" is that someone who might not otherwise go to our conference, might say, "What the heck - for that price I'll give it a listen." They are then so excited and impressed by that content that they decided to get on a plane the next year and head to the show. And do so every year thereafter - that's the real value of the content for us.

    So I guess what I am saying is that the value is always different for each individual. The value in attending the Expo for some is the learning - for others - the networking. In the case of the audio recordings, the major value to me is the promotion it gives the show. And if we make a few dollars as well - even better.
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