ok guys it is a different model totally let me explain.
you have a $997 product ok, you have hundreds of people visit your site, but you might sell 1 or two of them = $997
with this $7 thing is going to sell more - high volume sales becuase of the cheaper price. i.e. more sales same traffic but in the end he would be selling the equivalent = $997 also. So you would be making the same amount anyway. Plus its alot more work doing all the back end, payment processing, refunds etc etc.
A good model idea, but with all the buzz and eveyone saying wow...this is new and different, it makes me chuckle, he is just a good marketer thats all. A good idea, but nothing new. But he must be commended for the way his done it and the word of mouth getting around. A classic example of viral approach too.
The oto was talked about in the butterfly marketing manual - Mike Filsaimes report and it works well I have used it on occasions and it works fullstop. He is such a good marketer and his techniques are priceless.
But I think alot of people miss out on mike filsaimes interviews that he makes about 75% - 90% of all his sales just on affiliates sales. THAT RIGHT! I was totally asstounded when I first learnt of this and went out and created an affiliate program of my own....and guess what happend....YES i pretty much tripled sales litteraly overnight without having to lift a finger.
Just watch and learn how this guys does it and go and apply his strategies to your niche / market. Nothing new just solid marketing strategies. Awesome stuff.
Cheers. 
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