How would you like to work less, make way more money, build a huge following and eventually become a millionaire? Sounds great doesn’t it.
Well, that’s exactly what you can do when you start selling high ticket items. A high ticket item is a product that sells in the range of around $600 – $5,000. The product should also have a profit margin of at least 40%.
I Admit It, I’m Guilty…
…of not selling high ticket items.
Most of my products are between $30 to $297. These types of lower end products make great “front end” products, but they don’t BRING HOME THE BACON. Big ticket items bring home the bacon!
NOTE: One of my strategic goals for 2011 is to sell more high ticket items.
Sell Less, Make More
With high ticket items, you can sell a lot less and make a lot more. It doesn’t take a lot of sales of high ticket items to make a lot of money. Imagine offering a $2,000 product.
If you could just sell 10 of those products a month, you would be grossing $20,000 a month! I don’t care who you are, that’s a lot of money.
Offset Your Lead Generation
This is a BIG ONE!!!
When you sell high ticket items, it allows you to offset the cost of your lead generation, and then some. I have a friend that has a $5,000 event that he puts on twice a year.
He did some Facebook advertising and lost his shirt! After looking at the numbers, he was losing money on every lead he generated.
But after a month of doing advertising, he noticed that three of the leads that came to him through his losing Facebook ad campaign, had purchased his $5,000 event. All of a sudden, he made a lot of money on that ad campaign.
You see, if you want to build a huge list through online advertising, just offer a high ticket back end product(s) that converts, and it will more than offset your lead generation costs.
Better Customers, Lower Hassle
I was having a conversation with a friend of mine, Perry Lawrence. He offers a very high ticket video production product.
He said to me, “Dave, you know since I started offering my $20,000 program, I find that my clients are a lot less demanding and much easier to work with.”
That kind of shocked me because I thought if someone spends a ton of money, they will automatically want to “own” your time.
Big ticket customers are higher end clients and are much easier to work with.
Way Higher Return On Effort (ROE)
It doesn’t take a whole lot more effort to create a big ticket item or sell a big ticket item than it does to sell a lower ticket item.
So the return on your effort (ROE) is a lot higher selling big ticket items.
Big Ticket = Less Effort + More Money
More Affiliate Sales
Let’s face it, it’s much more attractive to an affiliate to sell a high ticket item that converts, than a low ticket item. If they stand to make more money, they’ll be more inclined to promote it.
More affiliates = more profits
You Become a Millionaire
I’ve been around the information marketing business for a long time. I’ve noticed that those that sell high ticket items are the people who go onto become millionaires in this business business.
It’s a fact. I’ve seen it happen over and over.
If you want to become a millionaire in the information marketing business (or any business), you really need to have some high ticket products.
CAVEAT: You can make a lot of money selling low ticket CONTINUITY products as well (but that’s a topic for another article).
If you need to create a big ticket item, then listen to this interview I recently did where I explain how to create mega high perceived value for your product and service so you can sell them at a big ticket price level.