“Yes, always test higher prices. Sometimes higher prices actually increase sales volume while obviously increasing revenue. Test multiple price points on every launch - even a 10% price increase that maintains conversion rates can double your profitability.”
About Profit Maximization
Profit maximization is not about charging the highest possible price, but about strategically optimizing the entire customer value chain to create systematic, repeatable wealth generation. Like baking a cake, it requires combining specific ingredients (pricing, backend sales, cross-selling) in a specific order to create a business that generates more value than it consumes.
Eben demonstrated this by lowering his ebook price from $39.95 to $19.95 and seeing increased overall profitability through higher-value backend sales. He teaches that 10% price increases maintaining conversion can double profits, and proper cross-selling/upselling can double business profits.
Misconception
“Maximize profits by charging the highest price the market will bear”
Maximize profits by optimizing the entire customer lifecycle and value chain, sometimes through strategic price reductions
Relevant Clips34
- Teaching
Always Test Higher Prices on Every Launch
Yes, always test higher prices. Sometimes higher prices actually increase sales volume while obviously increasing revenue. Test multiple price points on every launch - even a 10% price increase that maintains conversion rates can double your profitability.
- Teaching▶ 3:38
Profitable as a Perpetual Motion Machine of Value
Profitable means generating more value than you consume. Unlike physical laws, businesses can create a perpetual motion machine effect by throwing off more money or value than they use, including financial, social, emotional, and intellectual profit.
- Teaching
Optimization as the Core of Business Success
Business success is fundamentally about optimization - getting everything you can out of the time, effort, and energy you put in through tweaking, fine tuning, and finding efficiencies to squeeze every possible bit of value from your investments.
- Teaching▶ 0:30
Verbal Commitments Create Accountability After the Coaching Conversation
In business, you're attempting something theoretically impossible like perpetual motion - putting in time, work, brain power, and money while trying to get more out than you put in, which is more challenging than most people think.
- Teaching▶ 5:49
How Successful People Set Up Systems Instead of Individual Goals
Successful people systematically set up various things in their life that all work together in concert, creating a combination approach rather than focusing on individual goals.
- Teaching▶ 6:36
The Right Combination and Order Behind Successful Goal Setting
Instead of just setting goals, focus on knowing which things to set up in combination and in which order, like baking a cake with specific ingredients in a specific sequence.
- Teaching▶ 2:17
Back-End Product Launch Doubled Revenue Overnight
Adding a higher-end back-end product can double your business overnight, as demonstrated when releasing the first audio product doubled revenue the day it launched.
- Teaching
Integration Marketing — $80K Extra from 5 Minutes of Work
Integration marketing can generate massive additional revenue with minimal effort - one case study produced $80,000 extra in 13 weeks from 5 minutes of work
- Teaching
Most Business Activities at Fortune 500s Fall Under Expenses, Not Revenue
Most business activities in Fortune 500 companies and small businesses don't actually make money - they fall under expenses rather than revenue generation
- Teaching
Price Testing Can Increase Both Sales Volume and Revenue Simultaneously
Price testing can dramatically increase both sales volume and revenue simultaneously, defying conventional wisdom about price-demand relationships
- Teaching
Hit Product First Then Sell Additional Solutions
Use a hit product to capture a large customer base, then sell them additional solutions rather than trying to reach everyone with one product
- Teaching▶ 5:57
Integration Marketing Stacks One Process Inside Another
Integration marketing involves integrating one marketing process into another of your existing processes to dramatically increase profits
Show 22 more
- Teaching▶ 8:56
Skipping Upsells Throws Away Half Your Profit
Not implementing upselling and cross-selling to existing customers means throwing away at least as much profit as you're currently making
- Teaching
Linking Products in a Curriculum for Progressive Development
Link products together in a curriculum format to guide customers through multi-step development rather than offering isolated solutions
- Teaching
Integration Marketing on Partner Thank-You Pages
Advanced integration marketing involves partnering with other businesses to place your offers on their underutilized thank-you pages
- Teaching▶ 0:12
Track Front-End and Back-End Sales on Spend Separately
Track sales on spend (SOS) in two variations: front-end SOS for immediate purchases and back-end SOS for long-term customer value
- Teaching
Most Businesses Miss Lifetime Value Differences Between Channels
Most businesses fail to understand lifetime value differences between traffic sources, missing massive compounding opportunities
- Teaching▶ 1:39
Reference Live Training Prices to Justify Digital Pricing
Reference your live training prices to justify lower digital product pricing - 'If this was live training, I'd charge $2,000+'
- Teaching
Retention Costs Five Times Less Than Acquisition
Customer retention costs 5x less than acquisition while generating higher profits through repeat sales and referrals
- Teaching
Backend Sales Drive the Majority of Business Profits
The majority of business profits come from backend sales after the initial purchase, not from the first transaction
- Teaching
Price Testing Reveals Counterintuitive Customer Behavior
Price testing is a fundamental marketing strategy that can reveal counterintuitive results about customer behavior
- Teaching
Backend Sales Drive Real Business Revenue
The real money in business comes from backend sales to existing customers, not front-end customer acquisition
- Teaching
75% of Thank-You Pages Are Untapped Partnership Opportunities
75% of businesses do nothing with their thank-you pages, creating massive untapped partnership opportunities
- Teaching▶ 3:25
Repeat Customers Are Where Business Profit Lives
Most business profit comes from the second, third, fourth sales to the same customer, not the first sale
- Teaching▶ 4:17
Profitable Means Generating More Value Than You Consume
Profitable means generating more value than you consume, creating a perpetual motion machine effect
- Teaching▶ 6:51
Making Money Requires Specific Ingredients in Specific Order
Making money requires specific ingredients combined in a specific order, just like baking a cake
- Teaching▶ 6:01
10% Price Increase With Same Conversion Rate Can Double Profitability
A 10% price increase that maintains conversion rates can double the profitability of an offer
- Teaching
Higher Prices Can Increase Both Sales Volume and Revenue
Testing higher prices can dramatically increase both sales volume and revenue simultaneously
- Teaching
Cross-Selling and Backend Selling Can Double Profits
Cross-selling and backend selling to existing customers can double your business profits
- Teaching▶ 7:34
A 10 Percent Price Increase at Steady Conversion Can Double Profitability
A 10% price increase that maintains conversion rates can double your profitability
- Answer▶ 0:49
Growth Plus Profit — Both Required for Health
A healthy business needs two essential elements: growth and profit. This means growing in size and sales while making more money than it spends. When businesses lack either growth or profitability, they become less enjoyable and engaging to run.
- Answer▶ 5:32
A 10% Price Increase Can Double Profitability
Even a 10% price increase that maintains the same conversion rate can double your profitability, since the additional revenue goes almost entirely to profit margins rather than covering existing costs.
- Quotable▶ 1:37
Most Businesses Still Don't Think in Lifetime Value Terms
I'm still blown away at how many businesses just don't even think in terms of lifetime value
- Quotable▶ 4:20
Profitable Means Generating More Value Than It Consumes
profitable means that it generates more value than it consumes