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High Ticket or Low Ticket?

by obin94
27 replies
Im interested in what normally becomes more profitable in the end. Promoting high ticket items or low ticket.

Obviously high ticket items have lower conversions but one sale could make up for 50+ sales of a lower ticket item.

Does anyone have experience with both? Which has been working better for you?

Thanks
Robin
#high #low #ticket
  • Profile picture of the author HelpingYouBeAnExpert
    low ticket first then high ticket on back end
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  • Profile picture of the author Henry White
    My product lists has something for virtually everybody in my evergreen niches - interest, knowledge, experience, and price. I've put a lot of time and effort into these sales funnels and they've benefited all concerned - including my so-called "competition"!

    Depending on the niche, I think there's a glass ceiling on what that target audience will pay, but I wouldn't want to put any hard and fast limits until I know them much better. It cost nothing to simply ask them - problem solved.

    Either way, you're going to have to decide whether you're going to create custom products or rely on others to come up with enough good stuff to keep your offers fresh over the next 6-12 months.

    To me that's really a no-brainer but I see a LOT of people undermining all their time and hard work because they just can't see the value of quality products, repeat customers, and loyal fans. These crappy offers are generally the main reason I unsubscribed from their list - but they remain totally clueless, chasing money instead of long-time customers.
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  • Profile picture of the author NewAge29
    High gross low grief.

    If you're selling low ticket items to build a list that's one thing. But in the long run, high ticket brings in the cash.
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  • Profile picture of the author Alexa Smith
    Banned
    Originally Posted by obin94 View Post

    Obviously high ticket items have lower conversions
    To me, that isn't necessarily quite as "obvious" as people sometimes make out.

    I don't suggest that it's "entirely wrong", of course. Just that "it's not quite as simple as that", for a few reasons.

    One promotes high ticket items in different ways, and to different people. They're often previous buyers of less-high-ticket items who now trust you, because you've been valuable to them in the past and they're pleased with what they've already bought on your recommendation (almost an essential!).

    The size of the pie might be a lot smaller, and identifying it might be harder and different work, but one's "relative slice" (conversion rate) of it doesn't necessarily have to be smaller.

    Originally Posted by obin94 View Post

    Does anyone have experience with both?
    Some.

    Not nearly as much (with "high ticket items") as I'd like, which I'm gradually changing.

    I don't find it trivially easy to identify high ticket items which present no payment difficulties/problems to affiliates.

    Originally Posted by Henry White View Post

    I see a LOT of people undermining all their time and hard work because they just can't see the value of quality products, repeat customers, and loyal fans. These crappy offers are generally the main reason I unsubscribed from their list - but they remain totally clueless, chasing money instead of long-time customers.
    I agree unreservedly with this.
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  • Profile picture of the author dadhere
    I've made 80-90k over the last 5 years by giving away good items and building a good list. When it was ready I began promoting a recurring charge website and I've been getting checks every month since then.
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  • Profile picture of the author Randall Magwood
    I know a guy who only sells $2,000+ information products. He makes a killing with it. And isn't a fan of low cost products. It all depends on your goals... are you looking to make $200,000 or more... or are you good with $40,000 a year with a low priced product that's basically on autopilot?
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  • Profile picture of the author GorillazGoods
    If you haven't had much experience yet in either, I would highly suggest starting low first. The reason being is that due to the fact that it's much easier to make conversions, it will give you the much needed experience needed to be successful in selling or marketing products. Once you have had experience in the ins and outs of selling, your confidence in your abilities will become much higher (it will definitely show out).

    This confidence will enable you to be able to sell higher prices products. Who knows, if you're good enough you may be able to sell high priced products with really high conversions.....meaning a lot of $$$
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  • Profile picture of the author sdentrepreneur
    I agree, have a low ticket offer, $7 to $20 Range, that will assist it list building and gaining credibility with your list. Then offer a $1K to $5K product or coaching course on the back end. I have been do that for close to 5 years now. Works very well :-)
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    • Profile picture of the author Alexa Smith
      Banned
      Originally Posted by sdentrepreneur View Post

      I agree, have a low ticket offer, $7 to $20 Range, that will assist it list building and gaining credibility with your list. Then offer a $1K to $5K product or coaching course on the back end. I have been do that for close to 5 years now. Works very well :-)
      I was hoping you'd post, James. You were one of the first people I thought of when I saw the thread's title.
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      • Profile picture of the author JohnMcCabe
        Originally Posted by GorillazGoods View Post

        If you haven't had much experience yet in either, I would highly suggest starting low first. The reason being is that due to the fact that it's much easier to make conversions, it will give you the much needed experience needed to be successful in selling or marketing products. Once you have had experience in the ins and outs of selling, your confidence in your abilities will become much higher (it will definitely show out).

        This confidence will enable you to be able to sell higher prices products. Who knows, if you're good enough you may be able to sell high priced products with really high conversions.....meaning a lot of $$$
        I'm going to agree with your recommendation, but for different reasons.

        I know I'm generalizing here, but when selling big-ticket items you are usually selling to buyers with big-ticket budgets. And people accustomed to big-ticket budgets often have different expectations as far as product quality, service levels, etc. than those accustomed to lower budgets.

        So, I'll say that starting with lower ticket items will, while not necessarily easier to convert, will put you on the field with people who are much easier to satisfy.

        I'll add a caveat to that, though. Going after the lowest rungs on the budget ladder can put you with people who expect everything and a side of chips while paying next to nothing for it. You'll get more headaches dealing with people who simply can't afford more than the very cheapest anything in your market than you will dealing with the top-end buyers.

        So I'd say to begin with lower-ticket items while avoiding the bargain basement, and keep an eye to moving up the ladder as your experience, confidence and ability to satisfy increase.

        Plus, the pool's a lot deeper on the low-ticket end. There's just a lot more potential buyers to learn from.
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      • Profile picture of the author sdentrepreneur
        Thanks Alexa....one thing I would like to add, after selling $1K up to $10K Top Tier Products online, their is a huge relationship building and branding of yourself before anyone will buy products in that range. Build your Social Media Following, create lots of blogs, articles and videos to brand yourself as a leader and expert. When someone is buying top tier, them will perform their due diligence on you.



        Originally Posted by Alexa Smith View Post

        I was hoping you'd post, James. You were one of the first people I thought of when I saw the thread's title.
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        • Profile picture of the author infogenius
          Originally Posted by sdentrepreneur View Post

          Top Tier Products online, their is a huge relationship building and branding of yourself before anyone will buy products in that range. Build your Social Media Following, create lots of blogs, articles and videos to brand yourself as a leader and expert. When someone is buying top tier, them will perform their due diligence on you. Better google your name and see what comes up :-)
          Very much agreed, people buy from you at whatever price because of your impact in your industry. The more the impact the more the rewards, and of course little impact , little rewards. Pretty plenty of work ahead as the price to be paid but the dividends at the end of the day is very enomous.
          Thanks James for this chip in.
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          • Profile picture of the author VegasVince
            Interesting.... and the status quo would say start 'em small and then mug 'em on the upsell or back end.

            While I have nothing against that approach, I have never sold a $7 ebook in my life and have no intention to. I use my radio show and other methods to establish an authority status on a specific niche and position myself as someone whose info is far too valuable to give away for kibbles and bits. But that's just me.

            In my mind, it comes down to positioning. Establish yourself as a real bad ass in one niche and you don't need to devalue your brilliance in order to rope in the clients. Rather you create a scenario where the client is predisposed to do business with you on your terms and on your price tag and it aint cheap.

            People buy Mercedes every day.....$100K and then some.....not a cheap sled by any means. They don't need to be started with a 500 dollar rusty beater because they KNOW WHAT THEY WANT.....and price is not an object...and the salesman really doesn't sell....he just writes the friggin' order. That's as it should be.

            Mercedes has established itself as a take it or leave it proposition. More marketers should have the wavos to back up their products.....or not put them out to market.

            peace, Vegas Vince
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            • Profile picture of the author myob
              What I do is promote low ticket products to build lists of prospective buyers for my flagship affiliate products. As the marketing cycle progresses, incrementally higher end products are promoted, leading up to the big whopper.

              This hybrid marketing model accomplishes a lot on several levels; it fairly quickly qualifies prospects, establishes trusting relationships on the history of mutually beneficial transactions, weeds out time-wasting freebie-seekers, and makes the sometimes very long prospecting process for the main objective quite profitable.
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              • Profile picture of the author fin
                I'd go high ticket PPC. That's my future goal, but not in MMO information products.
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  • Profile picture of the author Miguelito203
    Originally Posted by obin94 View Post

    Im interested in what normally becomes more profitable in the end. Promoting high ticket items or low ticket.

    Obviously high ticket items have lower conversions but one sale could make up for 50+ sales of a lower ticket item.

    Does anyone have experience with both? Which has been working better for you?

    Thanks
    Robin
    Here's what I think. Regardless of whether you're promoting high or low-ticket items. The work is the same. It really comes down to conversion rates. I mean, you can have a high-ticket item that pays out more per sale but a lower-priced item that has a much high conversion rate and ultimately makes you more money. I've also learned that it's not about the actual value of something but the perceived value - how much someone believes the product is worth. If something is expensive but will solve a life-long problem or something that will last for years, it'd be worth it to them.

    Joey
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  • Profile picture of the author paul nicholls
    low ticket is always your best way to generate a buyer

    then once you know someone has the "ability to pay" and is serious about improving there education you can then introduce higher ticket products

    i like to sell my low ticket products for around $5 - $17 and then increase the product price as they go deeper into my funnel

    everyone has slightly different ways of doing things but generally using low ticket products as your front end product is usually the best way to go

    paul
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  • Profile picture of the author Jason Kanigan
    If you're selling in WF, then go low.

    Outside WF, go high.

    There's a huge perceived value thing in the outside world that will laugh you out of the room or off the call if you're selling a $17 solution. But here, that's OK.

    http://www.warriorforum.com/offline-...ml#post5727652
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  • Profile picture of the author obin94
    It seems like many people sell low ticket upfront and then high ticket on the back end.

    Is this the first OTO, or is it best to have multiple OTOs. For example: $17 on the front end then $1k on the back end. Or $17, $57, 500, 1k.
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  • Profile picture of the author Randall Magwood
    Even if you do sell low priced items... you could always add a yearly seminar to your marketing strategy. 100 people at $1,000 will gross you $100,000. For a 3 day seminar, this is pretty good. This is called a "slack adjuster".
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  • Profile picture of the author Walter Parrish
    Originally Posted by obin94 View Post

    Im interested in what normally becomes more profitable in the end. Promoting high ticket items or low ticket.

    Obviously high ticket items have lower conversions but one sale could make up for 50+ sales of a lower ticket item.

    Does anyone have experience with both? Which has been working better for you?

    Thanks
    Robin
    I would do both. Most companies are doing both these days.
    Avis/Budget Dollar/Thrifty same companies same cars High End / Low End.

    On a personal level I do however prefer the High End customer.
    More respectful, they know what they want, really don't complain and will communicate with you if they have any issues.

    Low end well lol. These are the ones who most likely roll out of bed after midday, don't have their lives together, and are looking for someone blame for all of their problems. I don't know how this works in IM though but for local business it tends to hold true.

    I have seen some interesting WSO threads where my theory seems to hold true. If you read through some you will notice that most of the complainers tend to be the ones who purchase the WSO late, are incapable of reading and understanding the copy as to what they are getting. And often expect some type of refund. In all fairness I will say this holds true for some of the WSO sellers as well. They will be the one's slow at responding to customer issues, slow to approve affiliate offers or not approve at all, and will skip all the serious questions.

    My vote goes for High End, but if you want to stay on top of your Game do Both.
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  • Profile picture of the author MichaelNech
    Before deciding on the type of promotion, you should really consider the niche you're going to be selling to.

    For example it's quite difficult trying to sell yet another registry cleaner program to someone who just acquired one and thus has resolved the issues the pc was having.

    On the other hand, niches such as make money online, health, dating etc are perfect for repeat sales and this is where you'll be able to make lots of backend sales.

    People buy from people they know and trust and having your visitors/subscribers purchase a $2,000 product right off the bat will prove to be more difficult than having them go through an "increasing" type of sales funnel.

    Mike.
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  • Profile picture of the author inhomeincome
    In my experience it is good to offer both low and high ticket items. That way you are able to have a lot of small ticket conversions that essentially help you fund your advertising budget. The big ticket items then become your take home!
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  • Profile picture of the author Mark T Lucas
    I agree with Mike's statement. People will generally buy from people they know and trust. Building a relationship with your potential customers is key.
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  • Profile picture of the author marcuslim
    Use low ticket as your foot in the door. Having a list of buyers is always more valuable than having a list of freebie seekers, even if the purchase is only for a low-cost product. They are so much more likely to take up your high-ticket offer.
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  • Profile picture of the author KickAss Marketing
    I would go for Low ticket first then when you think you have already gained credibility from you target market you can go for the high ticket. But if you think you are ready and you think you can start with High ticket then go for it.
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