Bundle first, create new products later
While most of the publishers I work with were not in the video production business five years ago, virtually all of them are today. In some cases, the sales of video content now account for as much as 20 percent of their total revenue. In addition to sourcing third-party video, many have also built their own production studio and are creating dozens of new titles this year.
Whether you have 10,000, 100,000, or 1 million e-mail subscribers, your email marketing program still has a limited number of slots. Most of the publishers I work with focus on two to five products, or offers, each week. Those who have seen revenue per e-mail subscriber increase over the past few years pay close attention to the performance of the products and offers occupying those precious email promotion slots.
Bundle first, create new products later
One of the most successful offers I’ve seen work repeatedly is the video and book bundle. This offer is yet another variation of the triple play offer I wrote about a few weeks ago. In this variation the book is option one, the video is option two, and the bundle is option three.
While there are many pricing variations, the one that seems to work best most often offers the book and the video at the same price point, let’s say $20. The bundle is then offered for $30, creating an implied half-price deal on the secondary component in the bundle.
Every good direct marketer loves to test, and also learns which tests are most likely to produce the most meaningful lift in revenue. it surprises many people to learn that the order of the products influences which offer is chosen most often, and the total revenue generated.
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Three tips for maximizing revenue with the triple play bundle
1. Lead with the bundle.
2. Place the weakest component, most often the book, in the middle.
3. Place the strongest component, usually the video, in the third position.
As you can imagine, the triple play offer presents many other test variables. While the combination and price points I’ve described above have worked best more often than others, the real message here is test, test, test.
I see a lot of special interest publishers creating complicated digital products that include text, photography, video, and other interactive elements. While I do believe this should be part of your product marketing strategy, don’t forget to leverage the books and videos you’ve already created to increase your revenue per subscriber, and discover more about which offer components are most appealing to your customers.
