John, Personally I think everything is over priced at this point but then that’s just what I think. If the market supports the price then who am I to say On the flip side if I paid 997.00 of real money for a product and several months later saw it being given away as a bonus then a resounding YES. I’d be peeved.

But if the original product was $17.00 I don’t think I’d be as disgruntled. Maybe the answer is attached to the cost of the original product.

Guess that answers the question about whether I’d do it myself or not.

Gail

I wouldn’t be bothered myself for the following reason:

Had I bought something like butterfly marketing software back in 2006 or even 2007 – then hopefully if I’d used it I would already have made back far more than my previous investment!

If I’d only bought it in the last few months then I might feel differently – but that said , the same rule of thumb would apply… with months – it should have been put to use and the investment recouped!

Personally, I’ve not gone for Traffic Fusion for reasons stated on my blog at http://www.randolfsmith.com/no-traffic-fusion-for-me/

And the crux of that to me is the bigger worry.
Will people buy because the bonuses are worth so much?… it is a heck of a deal…BUT – will they then go on to use the products and recoup the investment?..

Or would they be better focusing on taking action rather than hoping there’s a magic button within Mike’s products due to the ways it’s sold, the packaging and the bonuses?

There’s my tuppence worth John

Randy
http://www.RandolfSmith.com

Hello John,

I’m glad you brought this up. It does bother me since I paid good money for Mike’s early products — I feel he is devaluing them now by giving them away for free. I’ve stopped buying anything he puts out, and even unsubscribed from all of his lists, but somehow I still get his messages??

I wouldn’t do that — I’d find a way to add value without devaluing my previous products. I now see others starting to do this too –giving for free last year’s $1500 packages (some folks I used to respect). We’re in an industry of copycats.

Thanks again for airing your views John, Steve

Hi,

I would be upset as well if I paid big money for a product, which was given away as a bonus 6 months – 2 years later. Longer than 2 years, then not a problem, as I should have earned my return on the product. In my mind, a discount should be offered to those who made those previous purchases.

One person I believe in and follow (and purchase from) who does this (offer discounts) is John Delavera. Right now he is offering a tremendous package deal, with very significant discounts for those who purchased previous packages from him.

Charlie Meyer
http://www.byb.charliehasit.com

John,

Yes I would be upset…maybe if it was a year old it might not bother me.

I do enjoy the dueling bonus wars between the affiliates where thousands and thousands of dollars of “Product” are used as bait…to make a sale. Kind of sad in a way.

A Farmers produce market is probably the last place on earth where the principles of economics still hold true and integrity remains intact.

Regards,
Jim

Personally, I think Mike Filsaime’s products are great, but knowing that he has devalued all his previous stuff, I think he will have a second go at selling traffic fusion, and then it will gradually get cheaper, down to free, so I’ll wait for that.
But then, I’m a newbie, my site has not really begun yet…

Hi John,

It’s not the fact that all those products are being given away free that upsets me, it’s the fact that the little guy doesn’t really get a look in. $1497 indeed – plus $249 every six months.

If, on the other hand, I were earning $1,000s a month and this product could earn me more, then I would probably be tempted. But, struggling with IM as I am, then I will just let the big earners get on with it.

Once I saw the price, I deleted every email that had TrafficFusion in it (and there were loads). I should imagine everybody is competing with their bonuses for a share in the commissions with that one.

One day….

Regards,

Gary

Hi John,

Short and to the point. I agree 100% with Paula.

That’s marketing and it happens all the time.

Mike doesn’t care or he wouldn’t do it – it’s simply a mechanism to help him make more sales, and to tip the “fence-sitters” over the edge into pulling out their credit card.

Mike won’t lose anything anyway – only the consumer WILL, IF they fail to APPLY what the information teaches. Bottom line and golden rule of Internet Marketing.

Cheers mate

Ray

There were several points made by several people that I really agree with.

I spend some time following Mike Filsaime methods, was subscribed for his newsletter and watched some of his movies – there is no doubt that he is a great marketer.

Now, would I buy his products? No, and not because I think badly of them. I think they are probably grea, although what I have seen was of a very limited value.

I believe they are enormously overpriced. Mike is pricing them based on name recognition. And the underlying idea is to sell “at any cost” so to speak. I bet that majority of his buyers buy only because of the hype and then end up not knowing what to do with the products.

So, according to his own teachings, he adds a lot of bonuses that were already overpriced when they were introduced and now couldn’t be sold at 1/10th of the original price.

But.. that’s how millionaires are being made. If your product’s actual value is $20, but you created enough hype to sell it for $500, why not? It is just “creative” marketing. And if you can overprice your next product by offering free bonuses, it’s creative marketing too.

Alexei http// azsystems.net/blog

Hi John,

Personally I think this is probably a matter of timing. If I had bought a relatively high-priced item the week before Filsaime started his whole campaign, I’d probably either be mad or contact him, trying to cut some deal

But I think Randy raises a very legitimate concern about this trend. Being a smaller guy in launches like this, is a bit like being a rabbit trapped in the headlights of an oncoming car. You’re absolutely mesmerized by this tremendous bonus. Only, if you buy the product you’re probably still mesmerized for a long time afterwards, trying to tell head from tail on all the stuff you just bought – which is essentially a bad thing for you, as you should be spending your time doing something to alleviate your current situation, not prepare for what your situation might be years from now. (And don’t forget that Mike’s bonus wasn’t the end of it – we’ve all seen the insane extra bonuses from all the affiliates).

In the end, those who already know what to do with a product like Traffic Fusion (and know they have the infrastructure, know-how, and capacity to do it) would buy the product without this huge bonus. Which leaves a lot of those who’ll never (for now) use the product effectively, but who buys because of the bonuses (which they’ll also not use effectively for some time to come).

Whether that’s ethical or not – well, it’s all up to your own conscience right. Isn’t something I’d want to be remembered for, but it’s also worth noting that it’s part of a trend – and talk about snowball-effects!

Didn’t buy the product myself – would probably have half a year ago, but I’ve begun frequenting sensible people since then 😉

Morten

Hi John,

Thought provoking post. For sometime now I have wondered what people thought when they saw something they had paid good money for going out free. (Whether for a bonus or for list building) Don’t you just hate it when the day after you purchase something the store has a sale 50% off. That’s life though.

I personally don’t think the price is the issue. I think it is the lack of regard for the existing clients and despite the big prices being touted for the bonuses I think that they now have far less value. (and not just because of the age of the product) I know we could all list at least half a dozen others doing the same thing with their own launches. Some of the bonuses are possibly obsolete -some remain excellent products but we live in a fast paced world and the internet changes by the minute.

Being on many lists (for all the great free content as well as learning from the marketing campaigns) I have received all the email about this bonus and that bonus as well. None of it affects me personally because I rarely put my hand in my pocket (so much great free stuff) and I certainly don’t buy anything in MF price ranges. (I often wonder though, how many other IM marketers have been car sales people? No offence to the car industry is intended but having been through some of the training I see some similarities.)

I am slowly removing myself from all of these type of lists (they won’t miss me as I never give them any money) the lack of respect in much of their marketing is beginning to offend me and more to the point bore me.

It is a given I am staying on your list of course.
Keep up the good work and keep having fun,
Sandra

It bothers me enough that i dont buy anything he sells.

And i think some of his stuff is pretty good.I had a simular

experience a few years ago Spent hard earned money on a product

and about 6mths later it was a give away in his next big sale .

If it had been 15or 20 bucks i might not have as mad but the

result would be the same I think most of his stuff is good .

but i have trouble spending three or four figures for

something that can be outdated in a few months.

he reminds me of Cory Rudle cory always had pretty good stuff

and it had to be because of his prices .just my 2c

Yes, this bothers me. There are actually several things that bother me regarding Mike’s method of marketing. I’m not saying he’s a bad marketers with bad products. I’ve personally bought several of them, but nothing for close to 2 years.

Besides the bonus issue, I think he’s charging too much for his products. What’s with charging a recurring charge or charging for updates? Just because you can do something doesn’t mean you have to. All of these high-ticket sales are bumming me out. When I make it big, I will not do that!!! :0)

And I don’t like it when marketers push a product in the beginning like it’s the next best think since bread, and then 3-6 months later it’s as if the product doesn’t exist. I’ve personally experienced not being able to get answers to help desk submission because the support staff is too busy with the next project.

And what’s with marketers sending 2nd or 3rd emails saying their link was broken in a previous promotional email? I just unsubscribed from someone today who did that – he sent 3 emails promoting the same thing. The 2nd and 3rd emails said a link in the previous email was wrong, but I checked, and they were all good. Shame on you! I don’t have time for this kind of crap. 😉

Hi John,

Definitely one to think about. Personally, I’m with Gary on this. Normal every day folk without that kind of cash didn’t stand a chance. I found the free videos interesting, certainly useful, but once I saw the price and the daft game being played, I started deleting every single email that mentioned it.
Maybe it is just what marketing’s about it seems rather unethical even if it is legal.

Louise

Hi John,

The point Sandra makes is the most telling from my point of view,

“I am slowly removing myself from all of these type of lists (they won’t miss me as I never give them any money) the lack of respect in much of their marketing is beginning to offend me and more to the point bore me.”

Sounds like this new bonus system may be a recipe for reducing lists.

While I found valid points in everyones replies the bottom line for me in this latest marketing technique is that it’s becoming more of a turn off to buying than an incentive.

I think it’s because this “Bonus” system will make more people “fence-sitters” and less people willing to purchase now. If I truely believed I would never be able to get it in the future, I would have considered getting it now and hanging on to it for later.
As it is, I’m with Marge and Ray. Why waste money today when I won’t implement it yet, and will be able to get it for free when I am ready.

Just adding my thoughts,
kerri-raluna
http://www.kerriraluna.com

Hi John

It’s John, The Infotainer

You’ve received views on both ‘sides’ … which doesn’t surprise me. I’ll start by saying that I don’t like it. I think it’s disrespectful … but that’s a choice the seller makes and it’ll cost them in the long run. However, I DO think that IMs who act like this cannot care (deep down) and that they are happy to cream off what they can whilst having a pretence of caring.

One of the problems is this now accepted use of ‘value’. VALUE $997? Who said so? COST $997 maybe, but the VALUE to me is something only I can determine!

Part of this initial ‘value’ is the fact that the price will make it considerably more limited in its use and thus of higher value to the user (given it has some merit). To then lower the price, especially to give it away, TOTALLY DEVALUES IT and means it is now worthless. Sure we can all benefit from items that are free and have intrinsic value for us … but when the original seller does this as part of a carefully orchestrated marketing plan to sell the ‘next big thing’ …. it leaves a very nasty taste in my mouth.

So now when I read “Only $447 .. doors will close on Thursday, it’ll never be sold again” … I read that to mean ….”but I will be GIVING IT AWAY soon for zilch”. And THAT has to harm everyone.

WHY create and reinforce an image of IM as sharks who manipulate? The double glazing, used car salesmen, cell phone services etc all have a tarnished image …. do IMarketers want to be seen as spivs too?

“Pssssst … wanna buy some manuscripts?”

John Gordon
The Infotainer
http://www.theinfotainer.com
http://www.meetthecheat.com

.

I think that this is ultimately devaluing his own products. To me it is saying actually its not as great as my previous products so I will throw in all this other stuff to make it worth your money. And if you haven’t got his previous products then this would probably represent good value – if you are going to do something with it.

But it would make you think twice before splashing out $1000 – $2000 on his next one. How is he going to up the anti for his next launch? And if you had bought these bonus products at their full price would you not have the same concerns about future value?

I’m sure that Mike knows this and is two steps ahead of the rest of us. May be the days of a high price piece of software/report are coming to an end?

I haven’t bought any of his products but you have to admit that he is good at what he does. He doesn’t force anyone to buy his products and offers a generous money back guarantee policy so thousands of people have discovered value in his products.

But as everyone has said things move very fast in the world of IM, with the current trend to be to give away high value product for the price of a regular monthly magazine eg Mike’s 2Best Dam Newsletter” (which wasn’t) and now StomperNet’s Net Effect. Rich Schferen and Michael Chenney are using live video streaming…. marketing is evolving at break neck speed.

The real value to us aspiring Marketers is not neccessarily in their PRODUCTS but their METHODS of promoting them.

If we can study, interpret and impliment these methods into our business, before they become too ‘old hat’, then that is what will make us more successful in what we are trying to achieve.

Cheers John for a thought provoking topic,
Alan

I think I saw a comment or two sayiny that they thought that a lot of things are overpriced and in some cases overpriced.I aggree with their observation in most cases.And I think that that the reason that they post the new releases sometimes overprices is because they know that it will not take that long for oversaturation to occur.By this I mean that as far as the people that have bought it and are then trying to promote the affiliate link themselves they will notice that it is posted all over the place and when people see this they are a little turned off by the whole thing because they think it’s allready sort of old hat and no longer a valuable tool.As far as me personally I have frustrated a lot of the so called big time marketers because I told them not to feel very bad about their ability to sell just because I didn’t buy because I was the toughest person in america to sell to.
Anyway John your prices are allways fair in my oppinion but as far as new people getting into the aspects of both producing and selling new informational products this segment is starting to get very competitive and this during this economic downturn period in the US to make them even harder to sell.But you seem to have done quite well so I wish you good luck and continued success.
Steve

Sometimes I think IM Marketers need to get out into the real world! In any retail environment you will find items on sale at one price, and perhaps a month or two later find them on sale at a substantial discount. If you purchased at the full price it may irate you that you missed a substantial discount, but you would not consider it unethical. Our general tendency is to want things NOW rather than wait for them.

If you are purchasing a product to help your business and it helps you generate income, then it is a bargain. If for example you purchased the Butterfly script for $997 and in the three months prior to it being offered for free it earned you $2000, then the purchase was worthwhile. If on the other hand, you just purchased it because of all the hype and did nothing with it, then it is not surprising you would be irritated if you then saw it offered as a free bonus.

Personally, when I am buying something for the business, whatever it is, I check it out on the internet to see if I can get it cheaper, and then before purchasing, try and determine if it will help me generate income. If I am not sure, I don’t buy it. Simple and less stress.

Hi John,
No I don’t agree with what he did, and yes it would make me upset. I would not let him know that I am upset. I would act as nothing happened and the next time you get the chance to do it to him, DO IT!!!! Only really stick it to him. Maybe he will learn from it and won’t do it again.
No way would I ever do that to my Marketing Friends and Co-Workers. I would not do that to total strangers I think that is un-ethical. Lucille

Hi John,

It’s a great question.

In this particular case it doesn’t bother me, but that’s primarily down to the fact that I haven’t stumped up huge amounts of cash for any of Mike’s products in the past – although I will admit I am getting his monthly newsletter at the moment.

The whole situation reminds me of one of the biggest issues I used to have with the mobile phone operators – the old new vs existing customer promotions. I used to get sick of coming to the end of my contract and learning that if I was a new customer I could have the latest and greatest phone for nothing, but as someone who had spent £500+ over the last 12 months I’d end up paying a small fortune for my ‘upgrade’.

Thankfully this situation seems to have changed as a lot of the mobile operators offer the same deals regardless of who you are, and in the case of Traffic Fusion I do recall that Mike gave me an opportunity as a subscriber to his monthly newsletter to get it for half price – so credit to him on that front.

I think the biggest risk in this scenario is to ensure that at least some of the bonuses haven’t been released before, I mean if I’ve been a loyal customer who has stumped up for everything Mike (or anybody) has sold in the past and all that they’ve done is make them the bonuses then they will hold no value for me whatsover.

Of course the bonuses shouldn’t be what sell the product, but like most people in my case they can certainly help me to hit the ‘buy now’ button if I’m wavering for any reason. So if I already have all the bonuses and I’m on the fence about the new product you are going to have to do an amazing job with the salesletter to sell it to me, rather than rely on the old ‘with all these bonuses how can you say no?’ technique!

Anyway, that’s my two pence worth – at the end of the day these guys are making millions every year so they must be doing something right.

Stefan

I already posted my comment once and came back to read more of readers’ comments.

It looks that the majority of respondents think that Mike’ products are overpriced. I absolutely agree.

If you watch his videos, that’s what he teaches – how to build a better mousetrap with a better bait and how to be enormously greedy about everything. Does anybody remember Ferengi from Deep Space 9 (Star Trek)? Profit, profit profit!

Onr would think that with all these millions Mike makes, he could be more reasonable. But.. that’s how he is making millions – the bait is there, get in and get trapped.

This reminds me about the mortgage crisis we are now in,

I personally unsubscribed from all Mike’s lists and any offer that comes from him goes directly into the trash, where it belongs. I won’t support greed, even if it profits me.

I wish more people do the same, but: “Nobody ever got broke underestimating… ” and so on

Alexei http://azsystems.net/

Hi John,

Like you, I bought BFM when it first came out and so I know first hand what a powerful script it is. Does it bother me that it’s now being given away as a free bonus? In a word, no! It’ a tactic that many business use both on and offline because it works.

If I buy a product and pay full price for it then I do so conciously and with a view to using it and getting maximum value out of it. What happens to the product after I’ve bought it has no impact on my original decision to buy. I know some people will get upset and feel ripped off but you can’t change the past so my advice is to keep looking forward, not back.

On the other hand, if I am buying a product and it comes together with loads of bonuses then I am even better off. But, I would never buy a product just to get the bonuses. Either I want the product and I’m prepared to invest the asking price in it or I’m not.

Great question to pose though!

Best regards,
Dave Ovenden
http://MyTurboHQ.com