I am not arguing. I agree that natural scarcity can make you lots of money, provided:

1. The product is really good
2. The pre-launch hype is fantastic.
3. One of the above
4. Both.

With John Reese I suspect it was option (3). Or may be even option (4). I am not debating anything.

The niche is a valuable market if my offerings are tailored for the purpose. For those of us, looking at a larger market, it is just that – a niche.

Funny, you mentioned scarcity as a technique. I tend to think of it as an advantage – fair or unfair, is situational. And there are those that can create scarcity – like the prodigal salesman who sold an ice-box to an Eskimo or the prodigal comb to a bald guy.

And doesn’t the free copy of the Viral Report contradict your scarcity hypothesis?

Regards,
Shri.

Shrikant, some of the most profitable one day information sales have come due to using natural scarcity — John Reese limited the sale of his Traffic Secrets home-study product to 1,000 only, sold them all in one day, at $1,000 each (thanks to a brilliant launch campaign). That’s a million dollars in one day. My dog would be eating pretty well.

Scarcity is one of the hardest techniques to get your head around, but it’s also one of the most powerful. It’s the basis of economics itself, after all.

I’ve got a lot of other examples that were beyond the scope of this article, and I’ll share those with a select few people.

…building natural scarcity and exclusivity into your offerings is a very smart business strategy that can pay off handsomely.

Natural scarcity in an age of (un)healthy competition seems unlikes. It’s a dog-eat-dog world out there, Brian. But, I don’t have to tell you that.

As for creating scarcity artificially, It reminds me of the South Park episode “Cartmanland.” If you ever get a chance to watch it, ensure that you drop your latest customer like a hot potato and watch it.

If you already have watched it you’ll know what I am talking about.

Regards,
Shri.

I do, however, think that viral promotion through the use of “limited time” offers like Brian spoke about will become the most effective marketing tools of savvy businesses. This limited availability will lead to the piracy, which will only further extend whatever popularity was gained in the initial run of the offer.