I see it happening all the time. The new online marketer gets excited about the potential of making it big online. They read a few ebooks, pick up a couple of courses, and get trying to make some affiliate sales or sell their own little product idea.
And for their first product, they create a $6 ebook…or maybe they go way out and decide to be an affiliate for a product that pays out $30. Their concept is that with such a low price, it should be easy to sell.
Sure, you may sell more at this low of a price, but what’s your overall strategy? How do you upsell them to a higher ticket item? What are the other products you make available to them?
Here’s a rule you must always remember…
Good marketing will not overcome bad maths!
You have to sell 100 copies of that $6 product to just make $600. If you want to earn at least $5,000 this month, you have to sell 833 copies…and that’s counting you as having zero advertising expenses. That’s a tough road to follow. Averaging 28 sales a day without advertising just to earn an OK income is not an easy to plan. And it’s never one I’d want to follow because frankly….. It won’t work!
Do the maths! Let’s say you plan to earn a million dollars. Sell 100,000 items at $10…or 1,000 items at $1,000.
Please note that high ticket could also mean $5,000, $10,000, $20,000 or more. These higher ticket items greatly reduce the number of customers you need to reach your goal.
What if you sell 10 of your $10 product this week, you make $100. On that $1,000 product, you made $10,000. Can you live on $100? Not likely. Can you live on $10,000 a week? I surely hope so, or we need to take a serious look at your lifestyle
How about taking care of the customers? A surprising fact I’ve found is often the higher ticket customers are less demanding. In fact I’d say nearly ALL the time! With a higher ticket item, you obviously need a lot less customers…which means less customer service on it’s own…and less staff. So less expenses in selling those higher ticket items.
You do the same marketing work for more profits. You have to create a sales letter, autoresponder messages, JV letters, etc. for either product. The sales letter for the higher ticket item might be a little more detailed and there maybe a slightly different approach, but those same details can find their way into your email messages, videos, webinars, etc. You make more money from the same work when you sell higher ticket products.
In 2009 as a pretty new marketer I actually made $207,225.53 in income, selling someone else’s high ticket product and it took me just a few hours a month to manage that income stream. In fact I actually did over 3 times that amount but most of the commissions came in via bank transfer!
(average order of $1,684!)
So what’s the purpose of a low cost product?
It’s a lead generator for your high ticket items and to help build a stronger relationship with your customers. For example I sell one of my products for just $19.95 that I could easily sell for $497 +. But I choose to sell it for next to nothing in order to gain MASSIVE trust with my customers so they magnetically will want to buy anything else that I offer them in the future knowing from there first experience it will help them!
Also if you’re selling another product first, you can move into additional marketing such as direct mail or phone to sell the higher ticket item.
So the only question left is how do you develop higher ticket products?
One key of course is by adding additional value. The real secret is always increase your value until you’re giving way more value than what you’re asking for in price.
But the absolute quickest way to start selling high ticket products is as an affiliate. If you can find a high quality high converting offers and just send targeted traffic to those offers -you can literally sit back and collect the cash! I have sold millions of dollars of products doing exactly this!
Another key is to change who you’re marketing to. Pick markets where your customer have money…seek to sell to the affluent instead of those barely getting by.
An example of this in my business is that I stopped marketing to the usual internet marketing crowd. You know the ones who all connect on Facebook talking about the next IM launch or clickbank product. And I started focusing on targeting serious entrepreneurs. People who read similar books to me, who followed REAL gurus like Robert Kiyosaki, Richard Branson Tony Robbins etc. I found targeting people this way made a lot more sense than targeting the ‘Get Rich Quick’ crowd that you typically see in the internet marketing industry.
Another great way to get confident about their being people out there who actually are prepared to spend a bit of money is through picking up a couple of magazines such as MONEY Magazine. For me, this was difficult at first since I came from the place of being pretty skint all the time and in debt. So it was hard to wrap my mind around the fact that there were a lot of niches where people had money…where they bought £3,000 golf clubs and attended £10,000 marketing conferences.
Yet, that’s one of the biggest changes you can make…a change in your mindset. In most businesses, people are willing to spend money to get what they want. And these are some of the best customers you can ever have…if you focus on them and deliver exactly what they’re looking for.
In my experience most new online entrepreneurs have no idea how to get started with selling high ticket products and for that reason I have decided to hold a FREE online Webinar to teach people exactly what they need to do!
Literally on this webinar I will be revealing what you can do to start making as much as $1000 per sale starting right away! If this interests you…. Then make sure you secure your spot right away. There is just 1000 places and I guarantee you they will go fast!
See you on there