Digital Scarcity: Does It Still Convert?

Digital downloads and scarcityScarcity is an effective tactic often used in copywriting to create a sense of urgency in order to convince the on-the-fence reader to make a purchasing 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 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 even be no longer available. So if they don’t buy now, they run the risk of losing out.

(Of course, always give a believable, logical reason to justify your sense of urgency. This is important, so 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 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, 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.

Technological or Resource Limits

This is a very compelling and clever use of scarcity, 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.” Yes, but they don’t necessarily realize this may directly affect the offer, price, or 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, among others.)

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 the growing demand on my time, I can only accept a certain number of individuals. So I guarantee that the next 10 clients only 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.

Last 5 Posts by Michel Fortin

About the Author


Share
This post was written on Saturday, December 15th, 2007. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Secrets From Masters of Copywriting

Secrets From Masters of Copywriting

New! Advice from top moneymakers Yanik Silver, Joe Sugerman, Dan Kennedy, Clayton Makepeace, John Carlton, Joe Vitale, and 38 others! Click for more »

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

    This is fantastic!

    Thanks Michel!

    Mark
  • 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
  • @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.
  • Bill
    Hi Mike

    Your new picture has you smiling.

    I like it.

    Thanks for everything.

    Peace, Love, Prosperity

    Bill
  • 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
  • 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?
  • @C.S.:

    Precisely, which is why I said you need to add a logical, believable reason why. Without one, your tactic will be suspect.
  • 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
  • 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
  • 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
  • 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!
  • 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
  • @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.)
  • 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.
  • 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.
  • 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
  • Thanks for a post.))))))
  • 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.

    =)
  • Bill Barrett
    Just wanted to wish you and your family a Merry Christmas and a Happy New Year.
    Sincerely, Bill Barrett - Big Seminar
  • @Bill:

    You too, brother! Both to you and Robin.
  • 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 ;)
  • 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.
  • 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
  • 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?
  • @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.
  • Great post Michel, i've taken at lot of your ideas on board for my digital product marketing...
  • 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.
  • Agi
    Thanks for the many fantastic infos! I want to make a time limit offer tomorrow for my subscribers.
    Thanks for the ideas, Michel!
  • What do you think of the way Robert Plank uses scarcity? He uses dimesales, where the cost of the item goes up a small amount with each purchase. It would seem to combine both price scarcity with time scarcity, and packs in social proof with it. Problem is, you're screwed if you don't actually get that many sales. I'd think you really need a number of near guaranteed sales to get the ball rolling.
  • I so agree with your suggestions. When I see an offer saying that a digital product will no longer be available after a set date, it just irritates me and I will not buy because it seems so fake.

    I don't mind if the price changes or the bonuses go away - that seems real.

    Thanks for addressing this issue, Michel
  • Dear Michel,

    it MAY be that I read this post with a different interest because I am just in the way of publishing my first digital product, but anyway: This post is your best!
    I am glad I have started reading it because the scarcity argument in the headline almost prevented me from doing so. FORTINately you did the twist with the question...
    Thank you so much
  • I haven't worked much on the wording, but this is a concept idea. With most businesses there is a need to train support staff.

    Bonus #3

    Over the last 6 months I took 10 ordinary people through the system to ensure that every aspect works as planned... and I have retained them as your personal guides and mentors.
    These people have already achieved XYZ, so as successful people their time isn't unlimited.
    To ensure they can dedicate enough time to your specific problems, only XYZ members will have a personal mentor who has been through the system (X new members per mentor)

    You can always hire more support staff, train them, and sell to more customers.
  • @Andy Beard - Absolutely! Great point and good example.
  • Diagoras
    This is one of the best articles on scarcity I've read. I've been a salesperson for many years and have always used scarcity as an incentive to make a decision. All of these suggestions are GREAT, except the first one about limiting the offer.
    I've been around online for years now and have seen product launch after product launch where the guru tells some long-winded story about why he must limit the availability of his product. I'm sorry, but that dog won't hunt. There is no real justification for arbitrarily limiting the sale of a product. Planned obsolescence or truly limited constraints are one thing, but all this hype about "we'll have to close our doors in 30 minutes" is just crap. Every normal consumer (except "opportunity seekers") can see right through it, and then you as a seller are forever suspect.
    All your other suggestions are spot on, though, and I've definitely copied them down for future use. The most important thing we have in doing business over the internet is truth -- and relationships.
  • @Diagoras - While I respect (and appreciate) feedback, keep in mind that limiting the offer doesn't mean limiting the availability of the product.

    (That is one thing that peeves me alot. When I see someone saying "we can only sell 500." I thinking, "What? You meant to tell me your server is going to automatically shut down at 501?")

    The point of limiting the offer is limiting the offer in its entirety. Meaning, as it stands -- with the very specific bundle of benefits, bonuses, price, etc.

    It doesn't mean you're going to stop selling it after you've reached a certain number. But you can limit, say, a specific bonus, which came from a third party since you have no control over those -- if you have physical component to your offer, such as a hybrid offer, all the better.

    Or, as I submitted, limit the guarantee of its availability. That way, if the offer is still up after it reaches a certain quantity of timeframe, you're still OK.

    The objective is to limit the offer as it is right now, with its specific price, bonuses, payment options, etc -- or limit the guarantee of its availability (i.e., "if you wait, you run the risk of losing out on this offer 'as it stands' right now... The price may go up," or, "[x] bonus might be gone," or, "the two-payment option might be removed," etc.
  • Diagoras
    @Michel Fortin -

    Thanks for the clarification! I see now what you were trying to convey about legitimate and truthful ways to limit the offer. Limiting an offer as specifically packaged is a great idea. I'll definitely have to figure out how use that in my own marketing. I appreciate you making that distinction much clearer for me, and I appreciate your freely sharing your expertise.
  • Michel,

    You make great points, but I don't really understand what is wrong with a quantity limit on digital products, as long as it is honest.

    If I say I'm only selling 1000 copies of this ebook or 500 memberships to a site, what's the problem? To me it would only be a problem if I sold more than I promised to.

    As a customer, a limit is especially meaningful on a resale rights license. For example, if only 100 licenses will be sold, and nobody can sell or transfer those rights, a license would be much more valuable, assuming the seller sticks to the limit.

    Just because there is an "infinite" supply of a digital product shouldn't mean you can't limit the sales of it.

    For that matter, most physical products aren't really limited, either. If my printed book sells out, I can print more copies. Of course if I'm selling books autographed by a deceased author, obviously I can't get more.

    Another thing you can do is make a statement like "If you order today, you get these bonuses..." which does not say tomorrow the bonuses will be gone, so it's true and implies that the offer may not be available forever.
  • @Chris Lockwood - Chris, I think we speak the same language. My intent with the article was to create scarcity with a product that might seem limitless, and how to circumvent something that often makes digital offers suspect.

    In other words, it is a suggested alternative, not a replacement nor a claim in which I discount basic, honest scarcity. Plus, my suggestions are based on test results, too. And a test result is truly the final judge, as Claude Hopkins would say.

    Nevertheless, the first line of your comment says it all, when you said, "what is wrong with a quantity limit on digital products, as long as it is honest."

    "As long as it is honest" is the key, here. Often, people's perception is that it isn't. Or it can cause them to procrastinate believing that the scarcity is not "written in stone."

    In other words, sure physical products can be replenished when out of stock. But to the impulsive, buy-now prospect, waiting for stocks to be replenished can lose the sale. They want it now.

    You really can't do this with digital products.

    Again, it's the perception.

    So I agree with you 100%. There's definitely nothing wrong with it. But to me, it's not a question of what is right or wrong, but what is perceived right or wrong. Or more importantly, that one can be be perceived as more credible.

    Thanks for your comment.
  • Common sense as always presented in great narrative (note you are like me with your fondness for the word "however"!). You are quite right that using time limitation as a prompt to action needs careful use in digital media. The suggestion re limiting after sales service is a good one - not least as we may really not want to be dealing with calls months after the event anyway. Thanks for the post.
  • Thanks for this insightful post, Michel! It's very timely for me as I'm currently working on the sales copy and associated offers for my new product!

    Kind regards,
    -John.
  • chrisinprague
    Another really excellent post, Michel. thanks for drawing my attention to it on FB. Incidentally, a lot of so-called marketing gurus do precisely the things you criticise, yet don't know how to avoid them, as you do. IMHO, you're just as much a marketer as a copywriter (and, again, IMHO, you're an excellent copywriter but, then, I wouldn't claim any expertise in that area, just an intelligent interest).
  • Terrific stuff Michel,

    it never ceases to amaze and impress me with the amount of detail you go into with such posts/articles. Very relevant and extremely useful strategies and solid psychology behind them.

    This issue of digital scarcity is one in which most marketers unwittingly embarrass themselves with the silly and futile methods that they apparently think are so believable.

    Keep up the great work!
    Russell C Hall
  • Michel,

    it's amazing how much relevance this post has, even though it was written so long (digital ages!) ago.

    Digital scarcity works well why you explain WHY its scarce even though it is digital.

    What do I mean?

    how about "since this report offers techniques that are so successful BECAUSE they are not widely used, I have no choice but to limit this report to 100 copies at this time so the market doesn't quickly saturate with this new technique all at once..."
blog comments powered by Disqus
Pinpoint Hungry And Highly Profitable Markets

Pinpoint Hungry And Highly Profitable Markets

New! Streaming video lessons show you how to identify hungry niches online and how to "read their minds!" Discover what your market wants and how to sell more to existing markets. Click for more »