Why Cheaper Products Are Actually Harder to Sell

The Growth Insight 🌱

Stop me if you've heard this one: "I'll just create a $99 course instead of my $10K service. It'll be easier to sell because it's cheaper!"

I used to think the same thing. And I was dead wrong.

Here's a mind-bending truth I learned from Alex Hormozi's "$100M Offers": The easier your product is to deliver, the harder it becomes to sell. It's like a cosmic joke of business, but understanding it could be worth millions.

Let me paint you a picture that'll make this crystal clear:

Imagine you're a busy founder making seven figures. You need to build a social media presence, like, yesterday. You've got two options:

Option A: Pay $10K/month for someone to handle EVERYTHING. They guarantee 10K followers and 20 qualified leads monthly in 6 months, or your money back. You just show up for one strategy call.

Option B: Buy a $100 course for a 60 hour course that teaches you everything. Spend 10+ hours weekly implementing it yourself. No guarantees.

Seems obvious when you frame it like that, right? But here's where it gets fascinating...

The Value Equation (Hormozi's Secret Sauce):

1. Dream Outcome (bigger = better)

2. Likelihood of Achievement (higher = better)

3. Time to Results (faster = better)

4. Required Effort (less = better)

Let's break down why the $10K option actually feels like a bargain:

• Dream Outcome: Guaranteed results vs. "maybe if you work hard"

• Likelihood: Money-back guarantee vs. "good luck!"

• Time: Starts next week vs. months of learning

• Effort: Just show up vs. become a part-time social media manager

Real-world example that blew my mind: A client of mine built AI software for law firms. They had two choices:

1. Sell it for $200/month as self-serve software

2. Charge $5K/month to manage everything for the lawyers

They chose option 2 - more work for them but wildly more successful.

Why? Because busy lawyers would rather write a bigger check than learn new software.

Here's the plot twist: You can break these rules, but only if:

• You're drowning in demand

• Your product is stupid-easy to use

• You've got social proof coming out of your ears

• You're ready to serve both ends of the market