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Jan10
Why Saturation Is A Myth And Why Scarcity Isn’t Needed
No CommentsA lot of people ask me this same question whenever I offer something at a limited amount.
If X number of people get it, won’t there be saturation?
This is a common question, and I guess if you are new, it’s understandable.
So let me put the saturation myth to rest and show why scarcity, while certainly a good motivator for making sales, isn’t even necessary.
Let’s say you’re selling a product revealing a niche and providing supporting products such as articles, reviews for products and so on.
Let’s say the main keywords for the niche get 10,000 monthly searches and there are only 100,000 competing sites.
Let’s compute the KEI.
(10,000)/(100,000)X 10,000 = 1,000
Now, a good KEI is anything over 100.
Let’s say that 200 copies of this product went out and all 200 people used it. We know this doesn’t happen, but let’s say 200 additional sites went up.
Our new formula is now:
(10,000)/(100,200) X 10,000 = 998
With 200 units sold, our KEI dropped by 2.
2.
To get the KEI to drop to 100, we need to do some Algebra to figure out
how many competing sites we’d need first.(monthly searches)/(competing sites) X monthly searches = KEI
We need to get competing sites on one side of the equation.
So we first multiply both sides by competing sites.
We then get:
monthly searches X monthly searches = KEI X competing sites
Now, to get competing sites alone, we divide both sides by KEI.
We now get:
monthly searches X monthly searches / KEI = competing sites.
Now, let’s plug in the numbers in order to get competing sites:
(10,000) X (10,000) / 100 = ?
? = 1,000,000
So, if we start with 100,000 sites and need to get to 1,000,000 sites to
drop down to a KEI of 100, we need to sell:900,000 copies of this product and EACH person has to put up a site.
And even then, this would be a viable niche to tackle.
So as you can see, saturation is a myth and so is scarcity as far as a
real incentive for buying something.Nobody really has to limit the number of something. It is simply done as a
marketing tactic but has no real basis in any kind of reality.To YOUR Success,
Steven Wagenheim
Want to see more of this series? Watch my REAL Truth Videos at http://www.stevewagenheim.com/downloads.html and get the REAL truth about making money on the Internet.
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