If you want to get rich, why waste time selling low priced products and services?

Specifically, what steps did you take to achieve your success selling high ticket products?

This will serve as valuable info to convince people to consider making the change.

Steve Smith (poundland) and Chris Edwards (poundworld) would disagree they made £25m and £75m selling items for £1.

Someone alert app developers everywhere. They're doing it wrong.

So you're basing your condemnation of people who sell low ticket products on what you've read in books. You clearly don't know anything about selling or funnels or how selling low-priced products differ from selling high-priced products. So why would anyone listen to you? There are advantages and disadvantages to both and there is no one right way to go. They are also not mutually exclusive.

Successful Internet marketers like John Chow made most of his money from selling High Ticket items. However it is very important to know that selling high ticket items are no easy. The best approach is to set up a Sales funnel selling a low cost products and capturing visitor's emails on a capture page and selling high ticket items on the back-end.

I promote PPL (pay per lead) offers, which is basically lead generation...no credit card required, a user just has to fill out a form in order to make money.

The bulk of the leads that I generate, I make between $20-$60 each. While the dollar amount is low, since there is no sale involved (free offer), conversion rates are typically much higher that offers that requires something be purchased.

I favor offers that have a make, get or save money angle to them, as this is what has overall worked best for me, as they tend to have the highest mass appeal, so the potential to produce high volume exists.

I will admit that I cheat when it comes to generating traffic, as I acquire data (email) and the reason behind it is that I'm building assets that I then own and can market to over and over at little cost. Compared to what most marketer do and that to buy traffic that usually just turns into a bunch of one-time clicks and then never be able to market additional offers to. In case you think I'm spamming, all the data I acquire, the users know or have given permission to receive 3rd party message.

I've been doing this for a very long time and it can be extremely profitable done right. Everyone that I know that is in the business and know what they are doing, does 6-7 figures, While that's a huge range, it mostly comes down to the ability to scale and then effectively manage the infrastructure that comes with scaling.

Anyway, something to think about.

King, the makers of Candy Crush Saga and other games, reported that they made $1.3 billion from in-app purchases last year just from that one game, not including their several others. King was also recently sold for $5.9 billion.

there's no One-way of making big money, IMO, i think what really matters is quality/size of product and how many people are willing to buy or pay for what you want to sell or give them. If a person will produce and sell a product/service worth a dollar, it should be able to target a huge number of buyers, that's how most popular games/apps make so much money.

John Chow is one of the successful big ticket product seller. His blog is wonderful, which you guys can read.

The reason many marketers focus on selling low end products (at first) is that low pricing helps IDENTIFY and BUILD RELATIONSHIPS with buyers.

Get them on your list with low pricing.

Send them quality updates and those buyers can make you A LOT MORE MONEY for the life of your list.

That's how the process works.

Don't let the $7 WSOs and $1 deals throw you off.

1. Not everyone is capable of creating a product right off the bat that is worth hundreds or thousands of dollars.

2. There are not *that* many affiliate products out there that pay that much that just any beginner can start selling. The big name guys who sell thousand dollar products often don't take beginners as affiliates, only experts who already have a big list built.

Low priced products and services can still make you good money though, if the volume of conversions is high enough. Just a thought.

That silly company Wrigleys just hasn't thought BIG enough the last 100 years or so. Selling those .$25 packs of gum is preposterous ! Surely, they couldn't have made that much money selling such low priced products. What a lain brained business model

Selling big ticket or low cost stuff comes down to a simple choice that people are entitled to make for themselves.

I personally I have found that selling 'big ticket' items was easier (for me) to make money faster than just focusing on small commissions.

One of the fastest ways to get traffic to any offer is through PAID Media.

And I have found that paid ads can be quite expensive since there is a learn curve for everyone to go through just to get paid ads to start converting.

To me, paying for expensive advertising (to sell low commissioned products and get low returns) just isn't feasible.

One marketer above said that he likes the idea of introducing low ticket on the 'front' end and then up selling to higher ticket on the back end.

And that makes absolute sense.

But in the end, if you want to make money faster, big ticket is the way to go.

It's your choice.

If you are into low commissions and that works for you, then awesome, keep it going.

However, if you like big ticket like JC, then that's okay too.

Different strokes for different folks.

Oh no... "I am conflicted!"

Seriously though, look at "The Truth About Abs" - it's sold millions on Clickbank.

Now, look at Sean Mize's "Maven's Coaching Model" and it definitely makes one think; high ticket - top down funnels are the key to millions.

However, what I think matters more than anything else is; the ability to know your audience and give that audience what the want, need, desire, fear, or aspire to attain more than any dollar amount.

While, I often see threads of writers (for example) - which is what I aspire to succeed at over all else... writers are always complaining about low wages or 'x' amount per word, etc, etc...

However, positioning their writing is usually their biggest issue. Thus, they write for others making a few bucks, maybe even surviving by those writings...

But, if you position yourself low - I can tell you from my own offline experience, it makes the rest of the journey uphill, and a struggle to justify charging more later. At least, without having to start over with finding or striking up new clientele at a higher price point.

Once you work cheap... They expect cheap forever!

I'm going through it offline right now, and it sucks! I'm still delivering the same quality, just for less, due to my inability to be seen as I was... A top performer in my trade. My new clients see the results, know I am worth more, yet refuse to pay for it!

And, that "IS" my own damn fault!!!

However, in order to successfully sell 'high ticket' items online or offline... requires time, planning, research, skillset, and knowing the demand is high...and that you can deliver! - Something many cannot do with transparency....because, they lack the mindset, skillset, and experience to validate the offer at say $1997.

But, would you buy a product from an expert that costs $1997 in exchange for learning how to build a $100,000 per year revenue?

I know; I damn sure would!

Just like I bought a $30,000 mini-excavator to hang up my shovel, and bill out over $100k per year.

If you can't see buying high ticket items... Perhaps it's best to stick with the shovel, until you know what your business plan is?

And what's required to get you to that financial destination.

- Art

And I've went to such extremes to keep that secret!

I get some commissions as low as $1 per referral. But I get them month after month - year after year...

Please excuse my cross-thread reference, but a recent post of yours in another thread is detailed below:

I think therefore this thread was composed out of ones own self doubt which you are projecting to evaluate externally through the responsive emotions of others.

Rest assured though, you've been given a fair share of examples for you to evaluate to be able to justify consideration of the alternative low end products.

Good luck whichever you choose.

Let's play a game. I'll list two companies and you'll tell me which you think makes more money:

Coca-Cola (Average price for a 500ml bottle of Coke is $1.50 - $2)
- OR -
Moët & Chandon (Average price for a bottle of Dom Perignon champagne is about $175 - $200)


Ford (You can get a Ford Focus for about $18,000)
- OR -
Ferrari (The cheapest Ferrari is about $190,000)

IKEA (Selling couches for $400 and dining room tables for $300)
- OR -
Restoration Hardware (Selling couches for $3,000 and dining room tables for $2,000)

Look it up.

Then you'll know why I sell cheaper products.

As for this:
This is just wrong. While it may be true that it's just as easy to promote a product or service costing $1000 as it is to promote one that costs $10, actually selling the product is completely different. Which is why Coke makes more than Moet, Ford makes more than Ferrari, and IKEA makes more than Restoration Hardware.

How much money do you think they average person spends on champagne a year? Now how much money do you think they spend on soft drinks?

A taxi cab driver once told me "Fast Quarters are better than Slow Dollars any day"

al

You need a low cost item to sell...before you can upsell them to Big Ticket !!!

You sell low priced products so you can weed out the tyre kickers and freebie seekers and find proven buyers. Then you can upsell your customers on higher end products on the backend. It's called the ascension model.

The ascension model

I would say it's because there is a lower barrier of entry of someone buying a lower priced product than a higher priced one.

I know that for myself I don't think too long on if I should buy a $5-7 WSO or not. But when the front end WSO is $17 or more I start questioning if I should buy it or not.

Most buying is simply done on impulse. So if you make the barrier of entry low but not too low you'll most likely end up with more leads and they'll be buyer leads not freebie seekers.
By doing this you'll end up with more leads because there'll be more people who would be willing to buy a $5-7 product than a higher priced one.

So now you have a list of people who are proven buyers who you can now build trust with them through your emails. Then after building trust you can start promoting offers and making money off of the same leads again and again.

You might not make as much money upfront but as long as you do everything right you'll have a loyal subscriber who will trust you and buy the products you promote.

Making a lot of money in Internet marketing, regardless of the price of the product, requires making sales in volume.

It's easier to persuade people to buy inexpensive items than it is to persuade people to buy expensive ones.

I own a retail site where I sell a particular collectible product. Prices of products on my site range from $15 to $4000. My average sale is $191.

Perhaps I just need to ask my site visitors why they aren't buying the $4000 items?

Charlie

By selling low priced products, you can build a list of buyers. You don't make much money selling the product up front. That's not the goal.

I agree and disagree, I am a firm believer of aim higher but also that little steps make a big impact? I think its better to start with lower priced things so you are not losing a lot... testing is always crucial and why test on £1000s when you can test on lower ones?

I don't think the price of a product or service really matters. It's all about what the customer needs.

Two factors have to be considered.

The first is traffic – the more the traffic, the higher your income. Most website owners concentrate their efforts here, using the logic that 10,000 visitors make them $1,000 monthly, so doubling the traffic will double the income. In reality, visitor numbers will taper off in the majority of cases and the doubling of both visitors and income will remain a pipe dream.

The second factor is more subtle – increasing your payout for every visitor that already visits your website. Small ticket items that make you peanuts will never buy you that dream house – big ticket sales are the key to making big money online for most internet marketers.

Both are viable ways of doing business. They each have their own advantages and disadvantages. Myself I am working both angles of the market now.

Money is everywhere. Walmart Makes enough money. So does Apple.

In our experience, we started with mid-range ($47-$99) information products and did very well in this range. Over time, we added a low-end ($17) intro product to build an even larger front-end and then added a higher-end products (>$500) based entirely on demand we were getting from customer demand in the other tiers.

My belief is that you want to enter the market as quickly and as effectively as you can, once you are IN, you will see opportunities for both lower-end and higher-end products that your customers DEMAND of you...a much better place to be than spending months on a higher-end product and then missing the mark in my experience.

Totally agreed. My business mindset totally changed when I discovered backend product selling.

I highly suggest people to look into it.

I met a guy this year who made enough money to build a replica windsor castle out of blocks of pure cocaine purchased at street value in Sydney, Australia. He was doing mobile stuff, paying out < $0.5 a lead.

Big payouts ain't nothing if you're burning big money on the traffic...

^ what this guy said.

I do diet/ health/ beauty sales. It's stressful, expensive when it goes wrong, depends on a fairly small number of conversions and slow. I see friends doing $0.10 mobile stuff and making way, way more minus most of what I just mentioned!

It's all relative guys!

This reminds me of the guy that once told Ray Kroc he'd never get rich making only a few pennies from selling a hamburger.

Good point. I find that low to high ticket combo of products is the best match in a sales funnel.

If I came out of the blue and said...here's my $4997 coaching course would you buy it?

If you have the reputation and confidence that goes with selling a high priced ticket first time out the blocks then great but if you ant to build some kind of confidence and reputation then you start small and build up.

Some people on this forum are making thousands a month and yet they make their training affordable.

It's not all about ...sell 5 and make $100k some people want to actually change the lives of others. They've already made it themselves. They see well beyond the $7 stuff they are selling. How about you? I would like to think you have a story for us. We are all ears.

Thanks for your post...

WD

I have created/sold many different types of software or methods. I have used low price items and high priced items. In my experience using lower prices I have sold many copies, whereas with my higher priced items the sales were much slower. I would rather sell many low priced items than only a few high priced sales. I have made plenty from doing this over the years. It really all depends on your products, traffic, and personal preferences.

Its the Volume which is deciding factor.You get huge return if volume is higher even if prices are low.Also, marketing for both types is never same.You need to do something extra to capture high end clients.

Hello Neil

What is the purpose of your posts?
This is the second post that I have seen where you have said that you have read this in a book! You seem to be reading a few ebooks, believing everything they say, then coming on here stating it as gospel.

If you want to enter a book reading competition with us you will surely lose, we would spend US$10-15K a year buying anything we see that might be interesting, ebooks, courses, print books etc., so we likely have a $100,000 Plus library by now. (Likewise with software) You only have to learn one new thing or get one new idea from any book to make it a worthwhile purchase, but any book is someone's own thoughts or beliefs, an that doesn't mean they are always right.

Sooo, to your advice to me an others - " I'll tell you why....you don't think big enough and you don't believe in yourself enough to charge big money".

The advice of thinking big an believing in yourself is one that I would echo, but that is where any sensibility of your post ends.

We do sell some high value services. We are now mainly involved in providing services to Offline Business's and do have a high value service with monthly recurring income. We call it TMS or Total Marketing Solutions, it is a £10,000 a month service on a 12 month contract, so around US$15,000 a month. Currently servicing 4 large British Companies so US$720,000 per year in sales at this point. Our aim is to add 2 more Companies per year for this service, so another 2 clients an we will be making over $1 Million from 6 sales. Those sales are great but they were far from easy. What was a lot easier was getting smaller sales in higher volume, they give us around $11 Million a year, an growing each year in the Offline market.

Now if you want to come down to much smaller sales, say from Affiliate Marketing, well we do that too. It's the smallest part of our Business now but we still make around US$3 Million a year in Affiliate Commissions. An we go right down to selling guitar picks, likely 2 to 5 cents commission each on them lol. But it is volume that adds up to those millions in commissions.

You say "why waste time and effort focussing on low ticket products". Can I jus answer that by saying - THREE MILLION DOLLARS!!!

The real answer of course is that it is much easier to sell low ticket items, an there is a much larger market too.

A second answer, and I will point this directly at you, is that I very much doubt you have the knowledge or experience required to market high ticket items.

Neil, you don't seem to have much experience, if any, in Internet Marketing. Do you make any money at all from IM?

I would say you are more in IM Kindergarten, you are a long long way from graduating IM University. An thats fine, we all started there. But for gosh sakes, use your time in the WF to learn, rather than trying to tell others with so much more experience that we are doing it all wrong.

Cheers

Lindy

Rememeber little drops of water makes the mighty ocean., isn't affordable pricing will
help more people buy your product and service you offer and in thelong run you will be
making more profits than high ticket items..
rueben

This is a great discussion and it will be never finish. Nobody will win in this kind of discussions. But it is good too know the both aspect of the business.

I love WF.

Selling low priced items is only a waste of time if you cannot sell enough of them lol. I know others have had success with high ticket items but myself personally, I have had WAY more success selling small ticket items. In my case it was a high quality seo service where people were locked into a monthly recurring charge.

Because its easier to sell a $50 product to 1000 people in a week than to sell a $1000 product to 50 people in a week.

I'm not sure it's right to make a conclusion of absolute advatange of selling expensive produts.
High priced ticket is about one term big payment, when low one means stable average income.
Both systems works: selling a few expensive products to a few people as well as making a lot of sales of cheap ones.

I've understood your point from the book that it takes no more effort to sell an expensive or cheap product or service, but I can't agree with that. Yes, you'll put the same effort and although the number of clients will be different depending on the price of the product, the income can be the same (but not bigger with high priced ticket).
Whatever works for you

First thing first....Create social profiles and engage the audience there for few niches. Update all of them regularly. Follow them, they will follow you back, re-tweet their tweets, they follow you, Like their pages, they like your too.

After sometime you will have plenty of followers in all social media profiles. Now whatever you promote they buy it, because you created some trust. Choose the right niche (that never get saturated and provide affiliate offers, especially CPA offers that pay you $30 - $50 per each action) or else promote free giveaways that pay $1 - $6 per each zip submit or email submit CPA offer every month. Guess if you have 20000 - 30000 followers in all your social profiles (i mean in all niches you created). Just calculate.

This method will take time, but its really a long term revenue. As long as you engage your audience, you get lot of money.

Thanks.

IM tradition still holds on to low end products for good reasons. It can very much help you build a list, for one; and people at this point in time in our internet history are not that ready yet (90 percent of over a billion users) to dispose that big amount online.

@Original Poster
There is tons of ways you can get rich. Getting up cheap products is only one method. But surely, you can get rich selling anything. It depends how much sales you make. You can have the crappiest product but if you make it look like gold and sell it in the thousands you can make a pretty decent amount of cash.

Do you know what's most interesting about business? I'll tell you...

What seems blindingly obvious to one person is obviously not
true to others who actually take a moment to think about it...

For example... a guy named Bill Wrigley amassed an enormous
fortune selling chewing gum for a nickel a pack. That fortune exists
and increases to this day.

So... it seems blindingly obvious to me that the price of the item sold
is not indicative of how much money one will earn.

There must be something else... what do you think it could be?

Hmm... I wonder what Sam Walton ( the creator of Wal-Mart) would say to that? Wal-Mart sells an estimated $350 Billion dollars a year selling low end products. Other department stores and higher end supermarkets do in the range of $5 or $10 Billion and some less than that.

Before the days of Wal-Mart was Wolworths. In the days when Wolworths was king, the creator of that business was considered a champion among champions in the business world.

Some people also question the value of giving away products for free. But the fact is that free and low cost products that offer quality training or useful software are great ways to bring in new customers.

Once they have purchased one or more of your low priced products and gotten a lot of value from it, they are then more open to considering your higher end products.

This type of marketing has proven to be effective for at least the last 100 years, if not longer.

If there is any pitfall to this type of marketing... it is only when the marketer forgets to actually give value for these free or low cost products.

Smart marketers will continue to create awesome free and low cost products that make the customer feel they just stole a crown jewel and got away with it. Giving that kind of value will build solid trust and open the customer to consider other offerings that come with a higher price tag.

Customers will gladly give you some of their money when they are certain what they are getting is worth much more than the what they will pay.

Merry Christmas

"Work harder on yourself than you do your job" - Jim Rohn

I learned in business school simple formula higher price smaller buyer base , lower price bigger buyer base so I think that's why people are selling low priced items

Jeez, guys...go read DeMarco's The Millionaire Fastlane.

And learn therein the different paths to getting rich.

The two main ones are:

1 - serve a ton of people by solving a common problem at a low price

(McD's hamburgers)

2 - serve a few people by solving a very important, specialized problem at a high price

(Defense lawyer)


For #1 to work, you need a DISTRIBUTION CHANNEL.

Watch Shark Tank?

That's what the Sharks have. Access to distribution channels. That's how they make the product creators who pitch on the show rich.

If you don't have access to a distribution channel, it doesn't matter how good your product is.

Yes it is easy as you said but selling HighPrices Tickets you need HighQuality and HighlyTargeted visitors who will be willing to paymore..
secondly selling for less helps building trust and healthy relationship with customers.
As I mentioned All is about traffic, if you are targeting for "BIG SHARKS" you won, if not you need setup medium or low prices.

While I do focus on big ticket, I do also market lower end products, primarily to build lists of proven buyers, and to keep my pipeline filled. It really depends upon your business model though. I DO have friends who lead with their highest priced products, instead of using the traditional funnel model, and it works beautifully for them.

I have led with $10k - $25k products at time, but those are best sold via live presentations.

Interesting discussion...

Willie