How to Sell Products at a Ridiculous Markup

I’d love to call this a case study, but I don’t have enough info to do that. What I can say is that this must be making money or they wouldn’t keep doing it.

Lately, my Adblocker isn’t always working correctly on YouTube, which is why I suddenly see ads appear before my videos, and it’s been a real learning experience for me. If you have an ad blocker, you might disable it for a few days to see what you’ve been missing.

Recently I watched a YouTube video while researching Tinnitus, which is likely why I was shown an ad for a single product – an ear cleaning device – with an equally simple ad. It was a bunch of short video clips (mostly stock footage) assembled with background music and words on the screen – no audible narration of any kind.

They were selling this “revolutionary doctor-invented, doctor-endorsed” soft little plastic corkscrew device with a handle. Imagine a disposable toothbrush - only for your ears - and you get the idea.  And you could buy one for $44, or 2 for $69, or 3 for $93 or something like that. The prices were HIGH. And of course, they only had seven available for my area, and these prices were 50% off but only available for the next 7 minutes (yeah, right.)

Following a hunch, I went to Amazon and looked for the same device and found it for about ten bucks. Taking a wild guess, wholesale, it’s probably about $2-$4 in quantity.

Here’s my point: If someone has an urgent problem and you have the solution, you can pretty much charge as much as you can get away with. If your advertising is done right and creates urgency and makes the product seem exclusive, then it’s a fair guess that most people aren’t going to go to Amazon to see if they can get it cheaper as I did.

If you can find a product that:

  • Is the low cost to you
  • Can be made to appear to be worth much more than it costs
  • Solves an immediate and urgent problem
  • Can be targeted to the right audience on YouTube

Then you can make a simple video ad for YouTube and test it out. This might take a few tries to get right, but if you hit upon a winner, you can make some SERIOUS money doing this. I’ve seen the same system used by the equal company for a portable air conditioner and a vacuum cleaner attachment, and I’m sure they’re doing this with many other products as well.

The beauty of placing your ad on YouTube is people are on there looking for SOLUTIONS, and you do not have the competition of hundreds of other sellers like you do on Amazon.

The video ad itself was simple enough that almost anyone could create it. This leads to a sales page, which leads to an order page. And while I can’t show you the videos, here are the sales pages for…

The ear cleaner:

The portable air conditioner:

The vacuum cleaner attachment:

Spend some time on YouTube without your adblocker, and you’ll eventually run into this type of video ad. This is an easy system that can be duplicated multiple times for multiple products. It’s not hard to imagine that these guys are pulling in 6 or 7 figures doing this.

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