Scarcity Marketing - An Effective Way To Increase Sales

How many times have you bought something because the headline or subject line screams something like this:

“Only 5 Items Left. Get It Now!”


    “Lock In This Great Price While You Still Can”


            “Up To 50% Off Until January 31st Only”



This is known as scarcity marketing and it is extremely effective when used properly.


THE PRINCIPLE

The principle behind this is known as supply and demand. 

If your product is seen as being in limited supply more value is immediately associated with it. This gives buyers the mentality of "if everyone is snapping this up, then I should too"!

In order for this to work effectively your offer has to be positioned correctly in the marketplace. Your end goal is to boost the desire of your customer to purchase your product.

“If your product is seen as being in limited supply, more value is immediately
associated with it.”

POSITION ‘EM!

By positioning your products with scarcity you are giving it more perceived value immediately. You need to show that you had tons of this product in stock and
due to popular demand you only have X number left. This is more effective than telling customers “I only have 25 in stock so you'd better buy now before they are gone!"

Scarcity makes your audiences crave your products more. The basic instinct of humanity is to covet things that they can’t have.

In the latter example the customer doesn't feel a sense of urgency to buy. Your customers are probably of the mindset that you only ordered 25 because you
didn't think more than that would sell. Can you see the difference?

THE TACTICS

One tactic that many online marketers use for selling digital products is to use what is known as a dime sale. This is when they run a sale where the price
increases a set amount after a certain number of sales.

When visitors arrive on the sales page they will be shown a note that says "only 2 left at this price". This adds scarcity to the offer and if they are interested,
they will hit that buy button faster to get the lower price.

Another example is reminding your customers that you only have a certain number of this item left in stock. This could apply to physical items, digital
items or even to ticket sales, if you are selling tickets to an event.

Scarcity doesn’t always work, though. It’s not a silver bullet.

Basically, if people have a higher knowledge of persuasion or are more exposed to scarcity claims, they’re less likely to value a scarce product more.

A study found that “when consumers interpreted scarcity claims as a sales tactic, the positive effect of scarcity claims on product evaluation would be diluted.”

If the scarcity is nonsense and your customers are smart, it’s going to hurt more than help.

Successful marketers will often add scarcity into an offer by including a specific date. Stating that the price will increase to X amount by a certain date can be
extremely effective. This helps to get those who are borderline shoppers and helps to turn them into an actual buyer.

THE CONCLUSION

Adding scarcity is a marketing technique than can really help increase your bottom line. If you haven't tried this tactic yet maybe it is time you did.


Want to learn more about what works and what doesn't when it comes to online marketing?

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How to Generate Traffic Using Only Free Methods

Putting up a company would of course require a lot of things, to get straight to the point, you need capital. 

To make money requires money as well. But of course, with the versatility the Internet offers, there are many ways you could find that could help optimize the potential of your site or business in generating traffic. 

While there are ways to jump start your traffic flows, many sites don’t have the resources that others have to generate more traffic for your site. 

Well, you don’t have to spend a cent; all you need is the proper mindset and a lot of eagerness. You also must have the drive and perseverance to do hard work and research to generate more traffic for your site.

How sweet it is to have more traffic for your site without spending a single cent. 

Now it’s a sure thing that many sites have articles that offer tips and guidelines in how to generate traffic using only free methods. Because it is possible, you don’t need to speed a single cent, it may take time, to say honestly, I’m not going to beat around the bush with you. You get better chances by paying for your advertisements, but at least you get a fighting chance with some of these free methods I’m about to tell you.

Take advantage of online forums and online communities. 

The great thing about forums and online communities is that you can target a certain group that fits the certain demographic that you are looking for. You can discuss about lots of things about the niche that you represent or offer. 

Another great advantage is that you know what you are getting into and you will be prepared. With online communities and forums you can build a reputation for your company. Show them what you are made of and wow them with your range of expertise about the subject, with that you can build a reputation and build trust with the people in your expertise and knowledge.

You can also make use of newsletters. 

Provide people with a catalog of your products and interesting and entertaining articles. 

The more people who signs up for your newsletter, the more people there will be that will go to your site increasing your traffic. Here’s another method:

Another great idea is trading links with other sites. 

You don’t have to spend a cent. All you have to do is reach an agreement with another webmaster. With exchanging links, the efforts both sites do will benefit both sites. Every traffic that goes to the site could potentially click on the link of your site and visit your site as well. This works well especially when both sites feature the same niche. 

Write articles! 

And pique the attention of people that have interest in your product. Try writing articles that will provide tips and guides to other aficionados. 

Many sites offer free submission and posting of your articles. When people find interest in your articles they have a good chance of following the track by finding out where the article originated. Include a link or a brief description of your company with the article and there’s a great probability that they will go to your site. 

Write excellent content for your online sites. 

Many Search Engines track down the keywords and keyword phrases your site uses and how they are used. It is not a requirement that content should be done by a professional content writer. You could do your own but you have to make content for your site that is entertaining as well as informational. It should provide certain requirements as well as great quality.


All of these methods and more will drive more traffic to your site for free. All it takes is a bit of effort and extended man-hours. Learn all you can about the methods explained here and you will soon have a site with a great traffic flow without the usual costs that come with it!


The DIGITAL MARKETING SCHOOL offers a wide variety of online marketing training courses, as well as live events. Their 3 Day Accredited Diploma Course In Internet Marketing has proven particularly popular. It teaches everything you need to know to take a business idea from concept to creation and get it online.