Predictably Irrational - Chapter 3: The Cost of Zero

[maricellaskoog]

Darn, this is nice. Share more people have not found this.

[martls6]

I would love to sell for FREE and make the money on shipping. How can people ask for warranty is they got it for free?

[angelwhite]

Difficult to accept this one without more knowledge. It could just be that the site doing the selling orders by price, so the free one pops to the top, and no one ever sees the $5 one. It could be that they do see it, but never click it to see the shipping cost, because they are only presented with $5 vs $0 for cost. So there could be a lot of factors that would alter behaviour and prevent complete information, making the results difficult to accept without more knowledge.

[MarkProffitt]

@angelwhite He said it was a split test. Different customers, selected at random, were offered different prices. There is a statistical calculation for determining the validity of split testing. This is a very common technique and his results are well documented.

[angelwhite]

@MarkProffitt Maybe he said that in his book or something, but I just rewatched twice and didn't hear him say that in this video.

[MarkProffitt]

@angelwhite I knew when I wrote that comment someone would argue "he didn't say that word" The process he described is a split test. It is a standard marketing technique. It is so common that Google Analytics offers a free A/B split test. There are much more sophisticated version such as Taguchi Method. And the experiment he described has been done under controlled conditions so often it is well known in the industry that offering free items drastically increases purchases.

[da083810]

Great video. Especially after reading the book. The videos bring the book to life and increased my understanding of what your message is. Thanks

[Dayvit78]

those two comments were not the lessons at all. the lesson is simply a way to improve marketing in terms of deciding pricing and promotions. i don't see anywhere in there where it says everything HAS to have strings attached.

[cid420cid420]

crack dealers need to see these videos

[metalhaze1982]

Lesson to be learned... nothing is truly free in life, everything comes with strings attached!

good vid Dan