Digital Scarcity: Does It Still Convert?

Scarcity is a tactic often used in copywriting to create a sense of urgency and convince the “on-the-fence” customer to make a purchase decision. Above all, the goal is to prevent prospects from procrastinating.

As online consumers become wise to these direct-response copywriting tactics, one question often arises:

“What about digital products and electronic downloads, like ebooks and software? How can you create a sense of urgency for something that, in itself, is limitless (or perceived as such)?”

Here’s how to use scarcity selling effectively with digital products:

Limit The Offer

Many people use this strategy ineffectively. They say the offer will only last until midnight, however when a visitor returns to the website the next day, the offer is still up.

Another bad example is to follow through on the promise and the offer is no longer available on that particular website, however it is available on another website, through affiliates, or via another internet marketer.

Consumers are more sophisticated than ever before, and they tend to not appreciate this tactic. It lessens your credibility as a business person, and makes any other offer you promote suspect.

However, one of the ways to add scarcity to a digital download is not by actually limiting the quantity or the time, which can be seen as irrelevant for a seemingly “unlimited” product, but rather by limiting the offer, its many components, or the promise of its availability.

For example, rather than placing a limit on the quantity or putting a deadline on the offer, you say that the package, the price, the premiums, the guarantee, or any additional services (such as support, upgrades, consulting, etc) is only guaranteed through a specific date.

You continue by stating that if they wait and come back after that date, the offer may change or may no longer be available. If they don’t buy now, they run the risk of losing out.

(Of course, give a believable, logical reason to justify your sense of urgency. I’ll come back to this with some examples.)

Now, here’s how this tactic is different and you don’t lose credibility:

Even if your product is still available after that date, you’re not contradicting yourself because you only guaranteed that it would be available until then.

You didn’t promise that it wouldn’t be available after that limit or deadline is reached. You only raised the potential risk of losing out on the offer, at least as it currently stands, if they ever procrastinated.

For example, you can tell potential customers that the price is limited to the first 1,000. After 1,000 copies are sold, you may change the offer by raising the price or removing the premiums, or even stop offering it altogether…

… At any time, without warning or notice.

Update The Product

Take advantage of the features of digital products.

Digital products have something in common: they are constantly being updated. It’s the nature of technology. Software keeps updating with new versions all the time, and ebooks can operate in exactly the same manner.

So don’t be afraid to put a version number on your digital product, just like you would on a piece of software. When a new version comes out, the older one no longer becomes available or becomes obsolete by default.

The good thing is that updating a book is as easy as editing or adding a few paragraphs, inserting an interview, attaching an updated chapter, including a guest contribution, or upgrading the resource list — especially websites.

(We all know how websites and bookmarks change all the time. Some URLs can change, move, or become unreachable. By upgrading the resource list, your list stays fresh and your links accessible.)

Let’s not forget the ubiquitous “alpha” and “beta” stages most software products go through. These can be applicable to ebooks and digital information products just as well.

Plus, they don’t have to be applied to an entire product. They can be used with specific chapters, add-ons, premiums, tools, or even membership sites.

Additionally, they don’t have to be called “alpha” and “beta.” Use your imagination. For example, you can call it a “pre-release version,” “launch edition,” “introductory version,” “2007 format,” “early bird deliverable,” “advanced copy,” “pre-market issue,” etc.

If you sell an ebook with “free updates,” then THAT is the element that’s scarce. To add more scarcity to the offer, you limit the bonuses or the free updates for a specified quantity and/or time, and not the actual product itself.

Make It Time-Sensitive

The third tactic is to add a chapter or a bonus that’s time-sensitive. I’m talking about content that’s timely and more valuable based on its freshness rather than content that is released with a deadline.

This can be done practically with every information product out there.

For example, if you’re selling a principled or theory-based ebook (like one on success or general marketing strategies), add a few extra pages, like a list of resources or specific tactics that are relevant at the time of writing the product.

The best way to do this is to include information that, by its implication, makes it scarce. For example, it can also be something tied to a specific event, activity, or news item. (If not, you specify it in the copy.)

Say you sell a book on how to grow bigger, redder tomatoes. Your book can have a chapter that talks about how to enter a certain, well-recognized, and very popular “tomato-growing contest,” which has a set date.

This information is extremely time-sensitive because, if they buy the book after the contest, then the product holds little or no value.

Another way to make it time-sensitive is if it relates to a season or period of the year, such as a book on how to coach youth basketball. The book will have a time-sensitive element a few months before basketball season starts, and little or no value once the season is over.

Ultimately, think of how you can add scarcity to the product itself by adding either content or add-ons (like premiums or bonuses) that are time-sensitive in themselves — without having to limit the offer directly.

For instance, can the value or perceived value of the product depreciate over time or after a certain number of downloads? If not, how can you incorporate this element (whether it’s through extra content, premiums, or add-ons)?

Use your creativity, here.

In my experience, practically every digital product, no matter how timeless or evergreen it may seem, can be made scarce or urgent in some way that’s independent of any limits you otherwise impose.

Time Or Size Limits

This is a very compelling and clever use of scarcity. Why? Because you are using technology or time against itself.

For example, you can tell prospects that the item is limited because you need to conserve bandwidth. Many hosts limit accounts by filesizes or allocate a certain number of bytes transferred per week, month, or year.

As a result, you may need to revise the offer or raise the price to cover your costs at a certain point in the future, as greater resources are consumed. Not only that, but there are maintenance and support costs, too.

“Of course,” you might say, “everyone knows that.” True. But they don’t necessarily realize this may directly affect the offer, the price, or the availability of the product altogether.

So the idea is to specify it in your copy. Tell your readers that, as more and more people buy and download your product, the costlier it becomes to maintain.

Price increases are inevitable, and therefore they must act now to take advantage of such a “low price.” (Either that or the product may be taken off the market to conserve resources.)

And you can even specify a certain date or quantity sold where you will revise your offer to appropriately reflect and cover your costs.

Now, while that might seem logical for software, sometimes this tactic might not be as convincing in the case of digital products. (Especially in the case of a very short ebook.)

In this case, try to make your digital book dynamic.

Again, this doesn’t have to apply to an entire product or to the product itself. Certain parts, chapters, or bonus add-ons only can be made dynamic.

For example, some PDFs now have forms and flash video. Some ebooks contain streaming audio and video, too. Others are compiled as standalone executables but pull dynamic content from the Internet.

(And let’s not forget membership or password-protected websites that are included with some digital products as well.)

Nevertheless, dynamic content obviously uses more resources than simple one-time downloads. The goal is to communicate this to your prospects.

But aside from the products themselves, the most obvious and scarcest resource of all, of course, is time. There are only so many hours in the day or so many clients you can serve at any given time, right?

Therefore, if your product comes with, say, free consulting or coaching, such as critiques, reviews, email consultations, etc, you could then say:

“Due to growing demand, I can only accept a certain number of individuals. So I can only guarantee that the next 10 clients who buy this product will get [add-on service].”

Bottom line, and pardon the pun, but don’t just limit yourself to the digital product proper. Look at the features or parts of your product, the delivery method, the add-ons, the offer, or the service-based components.

Digital scarcity works quite well, even when the product may seem to be limitless. Because the possibilities are only as finite as your creativity.

About the Author

Michel Fortin is a direct response copywriter, author, speaker, consultant, and CEO of The Success Doctor, Inc. Visit his blog and signup free to get tested conversion strategies and response-boosting tips by email, along with blog updates, news, and more! Go now to http://www.michelfortin.com.

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Posted by Michel Fortin on December 15th, 2007. Filed in Articles, Copywriting, Selling. Tagged as bonus, content, conversion, Copywriting, deadline, digital, download, dynamic, ebook, limit, Marketing, offer, premium, sales, scarcity, Selling, urgency. Follow responses through the RSS feed. Leave a response, or trackback from your own site.

30 Replies to “Digital Scarcity: Does It Still Convert?”

Comments

From Ambar Hamid

Hi Michael,

Thanks so much for the tips. I have always wondered on what are the best techniques on building scarcity for electronic information. Most people are slightly immune with all the tricks these days. Getting bombarded with another sales copy day after day certainly does not help either.

Thanks for the tips.

I will give it a go.

Thanks Mike,

Ambar Hamid
Reply Quote

Author's Website December 16th, 2007
From Barnabas Ng

Hi Michel,

Great post…loved the tips

I have been thinking about this for awhile.

Can guarantee be used as scarcity tactics? Meaning if you buy now…you will have
a guarantee of up to ..maybe 360 days from your purchase… and if you invest in it after a particular date, the guarantee drops to 180 days and then 60 days? …OR a guarantee should stay fixed.

Thanks

Barnabas Ng
Reply Quote

Author's Website December 16th, 2007
From Mark

WOW! Best info on how to increase sales conversion I’ve ever seen.

This is fantastic!

Thanks Michel!

Mark
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Author's Website December 16th, 2007
From Ken Cal.houn

Brilliant ideas, Michel - I especially liked the idea of tying the product and/or bonuses to specific current events, so that there is a defined time limit from an externally-defined event. Another tactic I use is to “rotate” my bonuses, say every quarter, so that there is a specific deadline, after which return visitors see the bonuses truly are gone, from the prior promo…

Countdown timers etc for things like consulting hours/email bonus/webinar access and other events are also super to use. Your point about updating the versions of the product is a good one too, and can provide income for repeat buyers like software upgrade fees do, for digital products, as in “Latest (your niche) Trends for 2008 Update” ebook/video/etc. I hadn’t thought about that, re versioning digital products, so thanks. I’ll be doing that for my dvd products, eg releasing the 2008 update release (eg one or two extra DVDs to upsell to prior customers, as well as a new time-limited bonus for new customers).

Great conversion strategies as always, thanks for sharing them.

To profit,

Ken
Reply Quote

Author's Website December 16th, 2007
From Michel Fortin

@Barnabas:

Exactly. You can make the guarantee scarce rather than product itself. You can make any part of the product or the offer scarce. Remember to add a good “reason why” to back it up.

@Ken:

Thanks, brother! I appreciate the kind words and extra tips, as always.
Reply Quote

Author's Website December 16th, 2007
From Bill

Hi Mike

Your new picture has you smiling.

I like it.

Thanks for everything.

Peace, Love, Prosperity

Bill
Reply Quote

Author's Website December 16th, 2007
From Irimia

I have used those tactics till now…limited time bonus……and after some time I removed it….. I made a version 2.0 and you can offer that bonus to your existing customers if there’s only an update and they will love you for it ……but remember to recommend them another of your product that you will give at a discount maybe ……or offer them a bonus specially for those who bought version 1.0 . I did some discounts the same day you release a version 2.0 and recommend the new product ……it worked for me pretty well
Reply Quote

Author's Website December 16th, 2007
From C.S.Radhakrishnan

I tend to agree with the analysis of the situation and your remedies. But have some reservation on the concept of limiting the Guarantee period as a pressure tactic.This is because any playing with the Guarantee erodes credibility of the guarantee itself! Why invite an unnecessary casualty, when we have plenty of options to play with?
Reply Quote

Author's Website December 16th, 2007
From Michel Fortin

@C.S.:

Precisely, which is why I said you need to add a logical, believable reason why. Without one, your tactic will be suspect.
Reply Quote

Author's Website December 16th, 2007
From Kenny

Michel,
This is an excellent article.
I was thinking about it when I popped a Disney DVD in with my daughter earlier tonight.
Disney was showing that they are releasing a new DVD set - but only for a limited time, and then it will go back into the ‘Vault’.
In reality, they never give a reason why they have a vault - but most consumers just accept the fact that Disney has a vault, and they buy the movies accordingly…
That said, I’m not ‘disney’, so I’ll take your excellent advice.
Thanks,
Kenny
Reply Quote

Author's Website December 16th, 2007
From Barnabas Ng

Hey C.S

I am not sure if anyone tested on guarantee as a scarcity…you said “This is because any playing with the Guarantee erodes credibility of the guarantee itself!”. Not sure if you have tested it before.
.
I am not suggesting you to remove the guarantee but to give a longer guarantee period if you take fast action and subsequently reduce to your standard guarantee period.

The best answer would be to test it and let the market gives you the answer if that works. Like michel said, you need to add a logical, believable reason why.

barnabas
Reply Quote

Author's Website December 17th, 2007
From Howard Tiano

Hey Michael,

Great article, and perfect timing! Was re-evaluating my offer (digital products) and will definitely be using some tips from here. Plus using them in combination can add extra power!

Thanks again!
Howard
Reply Quote

Author's Website December 17th, 2007
From Caleb

This is what Burger King is doing now.If you notice their new commercials where there’s no more whoppers for people to buy and they all start “tripping”….when you take something away -or make it seem like its about to be taken away-,this makes it more important/valuable!
Reply Quote

Author's Website December 19th, 2007
From Matt MacPherson

Awesome post man. How does the following sound:

“WARNING: My advertising expenses are going WAY UP, so I’ll be increasing the price of this package from $47 to $67. I honestly don’t want to do this, but I regretable have to if I want to prevent this website from losing money. You only have a few days left to order at the current price of $47.”

I’m posting that line between my order button and P.S’s.

Let me know what you think mate.

Kudos,
Matt
Reply Quote

Author's Website December 20th, 2007
From Michel Fortin

@Matt:

It’s OK, but you need to be careful. For one, I wouldn’t say “prevent this website from losing money.” That makes you look bad. People will say, “I guess he ain’t selling much, which is why he’s losing money and spending all that money on advertising!”

I would rather than “cover my costs” instead of “prevent loss of money.” Also, you might want to reword it so that people understand why you need to advertise so much. (Give a logical reason why. Again, it’s all about BELIEVABILITY.)
Reply Quote

Author's Website December 20th, 2007
From C.S.Radhakrishnan

Yes, Barnabas!
The option of increasing the Guarantee period as an incentive is perfect, but not a threat to reduce the Guarantee period from what is the industry standard.
Reply Quote

Author's Website December 20th, 2007
From Colin “Free Traffic Report” McDougall

My friends,

Scarcity tactics are a must.

When it comes to selling an info product such as an ebook, it can be tough to create scarcity however a membership site is much easier to create scarcity.

Limited members to keep support costs low etc…

Back to ebooks, the best scarcity tactic I have used is to set price increases and act on the price hike. Show a path that you will increase the price by $XX every 48 hours and do it.
Reply Quote

Author's Website December 20th, 2007
From Lan

Hi Michel - What a TIMELY post. We’re just launching a new PPC landing page for a software product and needless to say, this post of yours has given me tons of ideas for the site regarding offers. Money-back guarantees and “special discounts till midnight” don’t really cut it anymore on this market as everybody’s doing it so thanks for the ‘other ways’ we can try to make our site stand out.

All the best,
Lan
Reply Quote

Author's Website December 20th, 2007
From John

Thanks for a post.))))))
Reply Quote

Author's Website December 23rd, 2007
From Omar

Absolutely awesome post Michel!

I thought I’d share another way to use “time” as a scarcity item… Say that you must limit downloads in order to ENSURE customer satisfaction. This has two effects:

1. You’re telling people that you care about your customers and want to ensure that each person receives dedicated attention.

2. You’re telling them that because of your concern and genuine interest in your customer, you can’t keep the price like this for long because eventually there will be too many customers to handle.

You can even tie this in with your guarantee.

=)
Reply Quote

Author's Website December 23rd, 2007
From Bill Barrett

Just wanted to wish you and your family a Merry Christmas and a Happy New Year.
Sincerely, Bill Barrett - Big Seminar
Reply Quote

Author's Website December 23rd, 2007
From Michel Fortin

@Bill:

You too, brother! Both to you and Robin.
Reply Quote

Author's Website December 24th, 2007
From Utusan Malaysia

Merry Christmas bro and Happy New Year .. btw nice post bro, i agree that product musn’t go stale and must be created on urgency factors..i’ve bought them also many times before, so i think that kinda work
Reply Quote

Author's Website December 24th, 2007
From Shem

Hi Michel,

Sir, I’ve visited your blog many months ago and this is the first time I will make a comment. What can I say, what a truly awesome post. You know, you are right when you said that limiting the offer and not keeping the promise ruins the credibility of the seller. I’ve seen many sellers who ‘urge’ on their sales letters to act now on this specified date, or else the price will go up. But after some days later when I visit that sales letter again the date has changed, and that ‘limited’ offer is still there. It really wears the ‘urgency tactic’ off, that’s why when I come across such offers I tend to doubt because all these offers seem the same - they just keep changing the date. But I believe there are sellers who really stick to their word, and buyers must be warned of these sellers.

Merry Christmas, and keep making useful posts.
Reply Quote

Author's Website December 28th, 2007
From Lindsey Humpal

Michel,

Good advice. I agree that offering something additional for a limited time works well. I especially like the notion of offering a gift card for $10-$25 when they purchase for a limited time. This not only gives the consumer that sense of urgency, it also gives them a very big incentive to shop with you again.

Lindsey
Reply Quote

Author's Website December 28th, 2007
From Bobby Handzhiev

Great article, Michel. It’s nice to see ideas that make sense rather than just “order now or the price will go up!”.
One thing I’ve seen on a website was something like “The price is good only until xxxx, after that I am moving along with my marketing strategy”. What do you think about such kind of offer?
Reply Quote

Author's Website December 28th, 2007
From Michel Fortin

@Bobby:

Not bad. I would point out what that marketing strategy is, though. Again, it’s all about “reasons why” advertising.

If you say, for instance, “my marketing strategy is to cover my costs” or “to use my profits to market to and penetrate new markets” or “to update my product to the latest edition,” etc, then it makes more sense.

Bottom line, the more reasons why you add to your message that gives a logical explanation to justify and backup what you are doing (or plan on doing), the more believable and credible you become.
Reply Quote

Author's Website December 28th, 2007
From Christian Bowman

Great post Michel, i’ve taken at lot of your ideas on board for my digital product marketing…
Reply Quote

Author's Website January 8th, 2008
From Franck Silvestre

Hi Michel,

There was some gems in this article. I save it to my hard drive. By the way, I tell to all my coaching clients that they should read your blog on a daily basis.

they like it. These people are offline people who don’t have a clue about online marketing.

Thanks.
Reply Quote

Author's Website January 8th, 2008
From Agi

Thanks for the many fantastic infos! I want to make a time limit offer tomorrow for my subscribers.
Thanks for the ideas, Michel!
Reply Quote

Author's Website March 8th, 2008

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