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Scarcity is an important law of persuasion that we should not overlook. If people think that what you are selling is on limited supply, then expect the implied value of that product will increase.

Scarcity triggers something in your customers, this is the time wherein they are willing to either pay more to buy your product or take more risk to buy your product quickly to avoid missing the chance to buy it. Wonderful is it not?

Scarcity can be seen or can be done in numerous ways. One of the most notable phrases wherein scarcity is seen would be, “while supplies last”. This statement acts like mental trigger, it tells a prospect that they need to act fast and seal the deal the soonest possible time.

A lot of humans possess an inherent fear of scarcity. The mere thought of not being able to purchase a product they are interested in can help create a tipping point, driving them on to investigate and purchase.

If you carry out the law of scarcity well then you would be able to create a sense of urgency among your customers and prospects which will cause them to pull out that credit card and make the purchase right here, right now!

And here are the guidelines that I use when incorporating scarcity tactics into my marketing efforts:

1. Creating scarcity starts by making sure you are offering something of true value. As an online entrepreneur it is your responsibility to ensure that you are offering quality products to the right people.

If you are gunning for a long term business success, it makes absolutely no sense to offer products or services that are anything less than the best you have to offer. Offering quality products will keep your customers coming back.

2. Marketing using scarcity involves exclusivity. Exclusivity is a key element when persuading wealthy consumers to buy certain products.

People living in households which earn an annual income of $100,000-plus are more inclined to purchase products that set them apart and make them feel special and unique, so by limiting your production volume or access to your offerings they understand that they need to take action immediately.

3. Scarcity creates a stir among your buyers, it creates excitement. Provide advance reviews in key publications and on relevant Web sites when a new product is in limited supply can build substantial demand prior to a full roll-out. You might as well try using scarcity to generate excitement among your existing customer base.

4. Make sure that you use your scarcity strategy on appropriate people. Who are you marketing these products to? If you have no idea what is the answer to this question then you are in serious trouble.

Have a clear picture of who your market is and make sure you market to them. You should also consider testing your target market if your return rate is much higher than 5% you probably need to tweak your marketing strategies to ensure that you’re marketing to and attracting the right types of customers.

5. Make sure that scarcity is for real. Nothing ruins a business faster than building lies. You should not go about creating artificial scarcity because that would ruin your business’s credibility.

How many times have you seen a sales page with an offer such as “Today only the price is 50% off” only to discover, when you go back a few days later that the price and the offer is exactly the same.

If you are going to use scarcity marketing, make it real, and take the time and effort to put the technical pieces into place so that it truly is a one-time-offer. Check out your shopping cart and modify it so that it sets an automatic expiration for coupons (if applicable).

6. If you are to use scarcity in your marketing efforts do not forget to include a money back guarantee. Before I forget you should not only offer a money back guarantee you must also honor it.

When you use scarcity in your marketing, no matter how clear you are in your sales copy, some people who are not suitable will end up pulling the trigger and purchasing your product or service. If you are going to use scarcity tactics to create a sense of urgency that causes people to buy, you must be willing to back it up with a strong guarantee.

7. If you are going to use scarcity tactics make sure you have a clear reason as to why.

Why is this scarcity in place? Why is the product you are offering limited? Why will the price go up after a specific time period?

If your reason is not believable then you have failed and you have lost your credibility. Again make it real. There are a lot of acceptable reasons as to why you would place a limitation on a product or service.