Teaching

Formula Selling Information Products

Formula Selling Information Products

Eben Pagan reveals the fundamental formula for selling information products online by focusing on results and value rather than the product itself. He explains how understanding the customer's valuing process and positioning specific, tangible outcomes can transform $20-50 products into high-ticket offers worth hundreds or thousands of dollars.

Formula Selling Information Products

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The Information Product Advantage

Eben opens by explaining why selling information products online puts entrepreneurs in an advantageous position. Unlike traditional businesses, information product creators can test rapidly with minimal investment, iterate quickly when something doesn't work, and pivot completely without major financial losses.

The Core Formula: Results Over Products

The fundamental insight that customers don't want products - they want results. Eben reveals that while customers think they're buying information or coaching, they're actually buying specific outcomes and value, which is the abstract driving force behind all purchasing decisions.

Understanding Value as a Process

Eben explores the concept of value as a nominalization - not a static thing that exists, but a dynamic process of humans valuing things. He emphasizes understanding the customer's internal valuing process, including their emotions, mental pictures, and feedback loops when considering solutions.

Creating Products That Sell Themselves

When you match your expertise to the customer's highest value point, you create products that require minimal marketing. Eben warns against 'putting lipstick on a pig' - using marketing to sell mediocre products instead of creating genuinely high-value offerings first.

The Power of Specific, Tangible Results

Customers want observable, measurable outcomes rather than abstract improvements. Eben explains how positioning specific results like losing 20 pounds or achieving a zero credit card balance dramatically increases perceived value and pricing potential from $50 to thousands of dollars.

Questions This Episode Answers

How can I increase the price of my information products from $50 to thousands of dollars?

If you just try to create an information product and sell it, you might be able to sell it for $20 or $50. If you're selling a result, a tangible, measurable result that the person can expect to experience in the real world and that's what they think they're buying, you dramatically increase your chances of selling that information product... you increase your probability of selling much higher priced and higher value information products that could be in the hundreds to thousands of dollars

Eben Pagan2:37

Focus on selling results instead of products. When you position your information product as delivering a specific, tangible result that customers can expect to experience, you dramatically increase pricing potential from $20-50 to hundreds or thousands of dollars.

What do customers really want when buying information products?

The formula is that customers don't want products. What they want is results... The customer doesn't want a product. They don't want coaching. They don't want techniques. They want a specific outcome.

Eben Pagan1:23

Customers don't want products, coaching, or techniques - they want specific outcomes and results. Behind that, they want value, which is the abstract driving force behind all purchasing decisions. The key is understanding that they're buying the result, not the information itself.

How do I create information products that sell themselves without heavy marketing?

if we can find that thing that really is where all the value is, and then take all of our knowledge and all of our experience as experts, as professionals, and apply it to that one thing, that's when we create a product that sells itself

Eben Pagan9:49

Find the highest value thing you can create for your customer by understanding their internal valuing process. When you match your expertise to their specific challenge in a way that creates maximum value, you create a product that customers want to buy as soon as they hear about it.

What type of results should I promise to customers?

The highest value types of results are specific, tangible, physical, out here in reality, observable... if there were a a jury sitting around here at a table in a circle, they would all look at it and say, yep. That happened.

Eben Pagan15:40

Promise specific, tangible, physical results that can be observed and verified. Customers want measurable outcomes like losing 20 pounds, having a zero credit card balance, or finding a romantic partner - not abstract improvements like 'feeling better.'

What is the biggest mistake people make when creating information products?

what most people are trying to do is put lipstick on a pig... their marketing is the lipstick. We don't wanna do that... We wanna create super high value products that are tailored specifically for the prospect

Eben Pagan10:39

The biggest mistake is trying to 'put lipstick on a pig' - using marketing to sell mediocre products instead of creating genuinely high-value products first. You should create super high-value products tailored specifically for your prospects before focusing on marketing.

How do I understand what my customers really value?

ask, okay, how are they valuing the challenge that they're dealing with right now? How would they value the solution to the challenge that they're dealing with? And what's what's that internal strategy or process that they're using?

Eben Pagan9:14

Study your customer's internal valuing process - how they think about their challenges, what emotions arise, and what feedback loops get created. Ask how they're valuing their current situation and the solution, then drill down to find the highest value thing you can offer them.

How to sell information products for premium prices

A framework for transforming low-priced information products into high-value offers by focusing on results and understanding customer psychology

  1. 1

    Shift from product to results focus

    Stop positioning your offering as an information product and start positioning it as a specific, tangible result the customer will experience.

  2. 2

    Study customer valuing process

    Understand how your prospects think about their challenges, what emotions arise when they picture problems, and what internal feedback loops get created.

  3. 3

    Identify the highest value point

    Find the one magic leverage point where all the value is for your customer - the specific outcome they most want to achieve.

  4. 4

    Make results specific and observable

    Promise outcomes that are tangible, physical, and measurable - results that a jury could unanimously agree occurred.

  5. 5

    Match expertise to value

    Apply all your knowledge and experience to that one highest-value thing to create a product that sells itself.

  6. 6

    Avoid the lipstick-on-pig trap

    Create genuinely high-value products first rather than trying to use marketing to sell mediocre offerings.

All Teachings 10

TeachingEmpowering0:31

Information product businesses have unique advantages including rapid testing capabilities, minimal investment requirements, and easy iteration when something doesn't work

Eben explains that unlike traditional businesses, information product creators can test quickly with little investment, modify products easily, reformat content, test new niches, and pivot completely without major losses

TeachingEmpowering1:23

Customers don't want products - they want specific outcomes and results, with value being the abstract driving force behind all purchasing decisions

Eben states the core formula: customers don't want coaching or techniques, they want specific outcomes. Value is the abstract thing behind results that acts like 'the person behind the curtain running the machine that gets people to make decisions'

TeachingEmpowering2:37

Selling results instead of products dramatically increases pricing potential from $20-50 to hundreds or thousands of dollars

Eben explains that if you just try to create and sell an information product, you might sell it for $20-50, but if you're selling a tangible, measurable result that the person expects to experience in the real world, you dramatically increase chances of selling much higher priced products in the hundreds to thousands of dollars

ReframeEmpowering7:02

Value is a nominalization - an abstract concept that doesn't actually exist as a static thing, but rather represents the dynamic process of humans valuing things

Eben's mentor Wyatt Woodsmall explained that value is a nominalization in neurolinguistic programming - an abstract noun taken out of the world and frozen into a concept. Value comes from and is the result of humans valuing things, not a static unchanging thing

TeachingEmpowering9:14

Understanding the customer's internal valuing process - their emotions, mental pictures, and feedback loops - is key to finding the highest value thing you can create for them

Eben recommends exploring how customers value their challenges and solutions by understanding their internal strategy: what emotions arise when they picture problems, what thoughts those emotions trigger, and what feedback loops get established

TeachingEmpowering9:49

When you match your expertise to the customer's highest value point, you create a product that sells itself without requiring extensive marketing

Eben explains that when you find the thing where all the value is and apply all your knowledge and experience to that one thing, you create a product that as soon as the customer hears about it, doesn't require a lot of selling because if they knew it existed, they would want to buy it

ReframeEmpowering10:39

Most people try to 'put lipstick on a pig' by using marketing to sell mediocre products instead of creating high-value products first

Eben quotes Ralph who taught him that most people are trying to put lipstick on a pig, where their marketing is the lipstick. Instead, you want to create super high value products tailored specifically for the prospect that meet their needs

TeachingEmpowering13:22

Customers want specific, tangible, physical results that can be observed and verified by others, not abstract improvements like 'feeling better'

Eben explains that while teachers assume customers want to feel better, customers actually want observable outcomes: the debt collector to stop calling, losing 20 pounds by taking one pill, getting a credit card balance of zero, or holding hands with a romantic partner in public

TeachingEmpowering14:49

John Carlton's 'Appeal-O-Meter' shows that the less work and time required, the higher the appeal and perceived value, with customers wanting 'magic' solutions

Eben references John Carlton's graph showing that more work and time equals lower appeal and perceived value, while less work and time equals higher appeal, reaching the category John calls 'magic' - which is what people really want

TeachingEmpowering15:40

To maximize value, become more specific rather than more abstract, focusing on tangible external results that a jury could unanimously agree occurred

Eben instructs to drill down into specificity, not become more abstract, and think about things that are tangible and external - results where if a jury sat around a table they would all look at it and say 'yep, that happened' and agree on it

Episode Tone
3 foundational4 intermediate3 advanced

Key Teachings 10

Information product businesses have unique advantages including rapid testing capabilities, minimal investment requirements, and easy iteration when something doesn't work

0:31

Customers don't want products - they want specific outcomes and results, with value being the abstract driving force behind all purchasing decisions

1:23

Selling results instead of products dramatically increases pricing potential from $20-50 to hundreds or thousands of dollars

2:37

Value is a nominalization - an abstract concept that doesn't actually exist as a static thing, but rather represents the dynamic process of humans valuing things

7:02

Understanding the customer's internal valuing process - their emotions, mental pictures, and feedback loops - is key to finding the highest value thing you can create for them

9:14

When you match your expertise to the customer's highest value point, you create a product that sells itself without requiring extensive marketing

9:49

Most people try to 'put lipstick on a pig' by using marketing to sell mediocre products instead of creating high-value products first

10:39

Customers want specific, tangible, physical results that can be observed and verified by others, not abstract improvements like 'feeling better'

13:22

John Carlton's 'Appeal-O-Meter' shows that the less work and time required, the higher the appeal and perceived value, with customers wanting 'magic' solutions

14:49

To maximize value, become more specific rather than more abstract, focusing on tangible external results that a jury could unanimously agree occurred

15:40

Counterpoint 4

Claim:Customers want your information products, coaching, or techniques

Reframe: Customers don't want products - they want specific results and outcomes, with value being the underlying driver

Claim:Value is a fixed, measurable thing that exists in products

Reframe: Value is a nominalization - it doesn't exist as a static thing but represents the dynamic process of humans valuing things

Claim:Customers want to feel better and know their problem is solved

Reframe: Customers want specific, tangible, physical results they can observe and verify

Claim:Good marketing can sell any product effectively

Reframe: Most people try to 'put lipstick on a pig' - using marketing to sell mediocre products instead of creating genuinely high-value products first

Quotable Moments

customers don't want products. What they want is results.

Eben Pagan1:23

if we can find that thing that really is where all the value is, and then take all of our knowledge and all of our experience as experts, as professionals, and apply it to that one thing, that's when we create a product that sells itself

Eben Pagan9:49

what most people are trying to do is put lipstick on a pig

Eben Pagan10:39

The highest value types of results are specific, tangible, physical, out here in reality, observable

Eben Pagan15:40

That's what they want. That's what they think they want is magic.

Eben Pagan14:49

Topics

Coaching Strategies

coaching sessions

Business Frameworks

Appeal-O-Meter

Common Mistakes

putting lipstick on a pig

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