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Sweet Spot refers to the optimum price point. This is found by calculating items sold times resulting profit and comparing volumes. We can see from the chart that if a product performs according to Scenario A, then $25 would be the "sweet spot" but if it performs according to Scenario B, then $30 is the "sweet spot."
| Scenario A | Scenario B | |||||||
| Sale Price | $20 | $25 | $30 | Sale Price | $20 | $25 | $30 | |
| Production Cost | $10 | $10 | $10 | Production Cost | $10 | $10 | $10 | |
| Net Profit | $10 | $15 | $20 | Net Profit | $10 | $15 | $20 | |
| Quantity Sold | 500 | 400 | 250 | Quantity Sold | 600 | 500 | 400 | |
| Profit Volume | $5,000 | $6,000 | $5,000 | Profit Volume | $6,000 | $7,500 | $8,000 |
It is worth noting that in Scenario B, even though the fewest items were sold at $30, the total Profit Volume was greatest, making it the "sweet spot." A really wonderful thing about downloadable electronic products is that production costs are low enough to allow authors to increase total profit volume through affiliates. By giving away around 40% of your profits you can push your Quantity Sold into the millions.