Promoting low ticket products vs high ticket products

Hi prsaputo,

High ticket (HT) items need a different sales technique from low ticket (LT) products.

Where with LT products you can simply have a sales / squeeze page and maybe follow up emails, for HT items you need a pre-sale stage using a lead magnet, a screening stage which may include telephone call followup and then the HT sales pitch.

LB

To a skilled marketer: low-ticket, high-ticket - it makes no difference. It boils down, in either case, to presenting the right offer in the right way to the right person. In reality, though, the typical marketer will find low-ticket far easier.

If you're new to IM, Pamela, I'd recommend you consider promoting PPL (pay per lead) offers; you'll find it much easier when starting out. You'll have seen PPL offers around the net: free products or services, where you just have to fill in a form, no purchase or payment details necessary.

The affiliate marketer earns anywhere from around $1 to, in some cases (especially for foreign traffic), over $10 by simply encouraging someone to complete a free form. Have a look around OfferVault.com. Common types of offer are related to dating, gaming, surveys, freebies, retail/ shopping, MMO (make money online), and technology installs/ downloads, but you'll find many more niches covered.

If you do go this route, this type of setup (there are many) works well:

• Splash page, with opt-in form and also link to blog.
• PPL offers on the Thank You page.
• Blog on the back end.

If you take this route, your efforts are concentrated on 3 areas:

• Growing subscribers (growing your business).
• Growing traffic to the squeeze.
• Growing traffic to individual blog posts.

It's a nice, stable business model for a newbie.

- Tom

Not tried High Ticket selling myself but understand that the methods involved are quite different to selling low ticket products.

If you want to promote high ticket offer you need more work to get done but it does worth it. You need to create strong presell strategy like presell page, squeeze page, email campaign, need to test a lot with traffic to understand whom to target, what keywords to target, etc. While with low ticket offer you can even send traffic straight to sales page and start making profits. What to choose up to you, if you have time and money build strong presell strategy, if not go for low ticket offers. Cheers :-)

People are more likely to buy something that cost less especially when its the first time they have heard of you. You you put the icing on the cake so to speak with the trust factor your conversions for your higher ticket item is much greater. That is why it is so important to build an email list and make some front end sales that are under say 20 bucks then promote higher ticket item on the back end.

Hello Prsaputo

This is a really excellent question. When I began down the road to financial freedom , I had the same question. It would take the same amount of effort promoting low ticket offers and high ticket offers. The KICKER? high ticket products helps you get to that dream lifestyle you've always wanted in a shorter amount of time because you have a $1,000 dollar day instead of, say $47 dollars in one sale.

Top tier businesses focus on high ticket products that help's you increase your profits dramatically and you won't have to look for as many customers, draining yourself.
It's not difficult when you show people the value your product brings and how it will solve a problem.

Hope this helps love

i do both and it depends on the niche..

it also boils down to testing...


I sell downloadable printable games in the baby shower niche, they pay $10.99 a pop.

in the IM niche most of the products I endorse are in the $90 range...

- Ike Paz

As others are saying, TESTING is the key.

However, to expand on that . . . for selling high-ticket things, testing will take either more time or more money.

A good "rule of thumb" is that you should spend 4 times as much as the profit-potential, to test a particular funnel. This is because random events in the real world, are a LOT more clustered than people assume.

So, for example, using PPL (pay per lead), if your offer pays $500, you do not know if your specific funnels is profitable or not, until you've spend $2,000 on that specific funnel. Then you might change one word (which can sometimes double or halve the conversions), and you spend another $2,000. And so on. So doing REAL tests for high-ticket items, can easily take a lot of money, or a lot of time.

Most people don't understand testing, because they don't understand basic mathematical concepts. I've had people buy 5 leads, at a few dollars each, for an offer that will pay thousands, and say "it doesn't work", which is just ignorance.

This is a major reason why most newbies fail . . . they get the exact SAME results as the experts, and the newbies think they've "failed" and quit, and the experts know that they have to do a LOT of testing to find a profitable combination, then up-scale.

So one real answer is that low-ticket items can be much quicker and cheaper to test, so maybe get some results with those, so you have an idea how your particular funnel choices can work (such as traffic sources, squeeze-pages etc.), then when you've got some profitable funnels, re-invest some of the profits in higher-ticket items.

Chris

I can only go on my own experiences with high ticket products, but I hated selling them.

I started out promoting products in the $7 - $37 price range back in 2008 and did fantastic with it. I stuck with that for a long time and my business increased and I experienced refund rates well below 1%.

About a year or so ago, I decided to give "high ticket" products a chance. I had developed the marketing skills by that time since I'd been in the business for about 8 years, so I figured why not give it a go?

Now by "high ticket," I am referring to products with a commission of $250 or more for the FE product alone. For me, that was a big jump since I'd always promoted products that paid anywhere from $5 - $25 on the FE, and of course if other products in the funnel were bought it would mean as much as another $100 in commissions. So I was promoting products that paid in the range of $5 - $125 in commissions for the entire funnel.

Everything started out well. I was making less sales but when I did make a sale it was at least a $250 commission. I usually made at least one FE sale per day, sometimes more, and many times they would buy products in the funnel as well. Some days all I had to do was have one customer buy the FE product and maybe a couple of products in the funnel and I could make $500-$750 on that one customer.

At first I thought it was fantastic. I didn't have to add as many leads to my list, so I was even able to let up on my paid advertising budget.

Then reality hit. REFUND CENTRAL. Now people can say it was the product, etc, etc, but I tried several products, and I always bought them myself first to check them out, and they were excellent. These products were thorough and taught REAL online business tactics.

Turns out it was an absolute nightmare for me. My refund rate shot up from less than 1% to around 20%. I quit shortly thereafter and went back to my original strategy which had always and still does work great for me.

I promote quality software and plugins and tutorials in the $7 - $37 range and my refund rates are back around 1%. Last month I had almost 800 affiliate transactions and only 9 refunds.

Maybe I was doing something wrong, I don't know. All I know is that I learned that when it comes to high ticket products, it's definitely not for me.

People that make commissions of $1000 or more on FE products and have very few refunds must be magicians, because that was not the case for me.

I have to say, though, that the reason I stopped promoting ClickBank products 5 years ago was because of the ridiculous refund rates, even on lower priced products.

I surely don't have all the answers, but one thing I do know is that I have something that works, so I'm just going to stick with it. Maybe high ticket are good for some people, but it's certainly not my thing.

Great post! To be honest high or low ticket offer its the same amount of effort to sell, I've been in companies that use a low ticket tripwire to intise the higher ticket sale

There is only one thing you should care about and that is your ROI. All other metrics are proxies to what really matters which is how much work do you need to put into something to make money. If you are going with paid traffic, ROI is more than obvious, if you are going with free methods you should factor in how hard it is to get visitors to the offer and how much are you making from those visitors (per visitor).

So don't disqualify either, sometimes low ticket products will give you a higher ROI, sometimes high tickets ones will. Just keep testing new things, measuring your results and optimizing them. Repeat and improve what's making you money and stop what isn't, it's as simple as that.

You need to sell BOTH... some of the market only buys low-end (PAYLESS), some of the market only buys high-end (LOUIS VUITTON), and the majority of the market are in the middle.

If you can find a way to sell both in a funnel, you'll end up making more revenue...

I have done $5400 USD total sales last week.

here is the skinny.

Low price - more conversions, more requests, more support required. Easy to sell.

High price / high ticket - Easy to sell. But, need a different audience, less support required, and a different customer mentality.

You are not going to find the customers for both in the same audience. So its not hard to sell, when you have the right person.

Also, a high ticket you might need to get on the phone first, but its not required.

It takes the same effort to sell a $7 ebook, than a $1300 course, or ready made marketing system, like I have.

The more you tell, the more you sell. As they say....and its true.

But my main message is that you need to find these customers for both, in different ponds.

A low ticket will be someone with a job, and wants to learn.

a high ticket, I have found are biz owners, or people who already market and do ok, but want to lift up their income levels.

But I cannot stand when people say..... its takes more effort to SELL high ticket stuff. I have proved this over and over. You just have to find these people in the right place.

If you are having trouble, and cannot get sales in HIGH ticket stuff, you are searching in the wrong pond....so to speak. When you search in the right pond...and that is what I do, you get high ticket sales....like i do...for $1000 and $2000 over and over, and actually think....wow.... that was not hard to get that sale.

Again, high ticket sales, come easy when you talk to the right leads, and they already have the money to spend.

Same with low ticket, some people cannot even afford $7 and are broke, so they are worthless as a leads.

Its about the money they have, and their problems, if you can connect the dots, help them, you can succeed and create any amout or monthly income you want.

The best part of BIG TICKET stuff, like my product which is $1300.... you only need 1 or two sales per month....yes....per month to make a full time income. SO think about that. :-) Less work, for more income, if you work SMART.

Hope this helps someone.