Chapter 5. High Ticket vs. Low Ticket
They have a low production cost and commission structure. When you join an affiliate program of a retailer like Walmart, the items you'll be offering may be worth a few hundred bucks at best, with the vast number of their items range going far below that. And with a 5% commission fee, you'll make a lot of revenue.
But on the other hand, if you were to affiliate with a company that sold products worth thousands, if not millions of dollars, and had a commission rate to about 40% (or higher), this will take far fewer sales to make the same amount of money, and your scalability would be greatly enhanced. Those will be extraordinarily high ticket sales. Price tag, commission, and value are both greater.
Would not you just invest your time focusing on things that will help in the long run? It takes about the same amount of effort and money to market a $25 item as it does to market a $2500 item.
If you'd like to partner with a high-ticket affiliate marketing firm that not only allows certain kinds of transactions on a daily basis, but also has the guidance, tools, and community outreach to help you understand how to do the same, then sign up today to begin your path toward financial independence with scalable and flexible High Ticket Affiliate Marketing.
5.3. Which is more beneficial: a high ticket or a low ticket?
Anything you may offer for a comparatively significant sum of money is referred to as a high-ticket object. This is your ‘big fish,' and based on the piece, a single sale might give you lots enough money to survive on for a week, a month, or a year! However, since several people begin operating remotely, they may not see large-ticket products as an alternative. Instead, they concentrate on low-ticket items such as eBooks, which they market for $10 or $50. However, marketing high-ticket items are how you earn big money, and it's something that a lot of advertisers might profit from.
Why is a High Ticket too Expensive? So, what's the big deal with selling high-ticket products? Why concentrate on these types of goods rather than offering cheaper, easier-to-manufacture items? There are many explanations for this, but the most apparent advantage to selling a high-ticket item is that you will generate a far larger return on much fewer purchases.
Let's imagine you're offering an eBook for $20 right now. That may be a fun little side hustle for you, but you'll have to sell 1,500 copies to make a living wage (around $30k minimum). That's a large number of sales to manage, and it's not likely to be fast. Quite likely, you'll do that by making a website. After that, you'll begin directing more traffic to your website, and after a few years, you could have 1,000 new visitors per day. Considering the average click-throughs rate for ads you put on your blog is about 1–10%, and the average expected return for your product pages is about the same, you should hope to make one sale per... 1–100 days. And this is all while concentrating very hard. Sure, if you have a lot of merchandise, a good marketing strategy, and a big promotional budget, you will make a profit selling low-cost goods. Similarly, if you are already a well-known blogger in your field, you could be able to supplement your income by selling a few goods or marketing affiliate items. However, if you're only getting started and want to make serious profits fast, you'll need to make a massive return with each deal.
Let's imagine you're offering a commodity for $2,000 and you're making a $2,000 profit. To make the same $30K, you now just need to sell 15 copies of the commodity. That ensures you have a whole year to make 15 profits, which makes it a lot smoother. And it's no longer just conversion ratios when it comes to pricing high-ticket goods like this. It's all about your ability to convince, develop confidence, and establish a partnership with your customer now.
There is stuff you should start doing right now. As long as you can meet a few customers, you'll be able to focus all of your efforts on convincing them to purchase the items. There are additional advantages of marketing high-ticket pieces. One advantage is that you'll be able to focus all of your efforts on making that one thing. As a result, you'll be able to create something you're genuinely proud of and happy to encourage because you truly believe in it.
This makes a huge improvement and gives me a wonderful feeling. Imagine feeling that what you've created is valuable enough for customers to pay that much for it — it's very satisfying! As a result, the clients would be a lot happier. In reality, operating a company that sells high-ticket goods is a lot easier than running a business that sells a number of things on a daily basis. What is the reason for this? Since you now have fewer buyers because you have fewer goods. It's a lot better to keep 15 consumers satisfied than it is to keep 15,000 customers happy.
In fact, the more money a consumer invests, the less likely they are to complain! Customers who spend a lot of money are always the safest, while those who purchase the smallest goods can always cause you the most hassle and want to get discounts. This may sound counterintuitive, but it is an assertion made by Tim Ferriss in The Four Hours Workweek, and it is absolutely accurate for the most part.
Expect customers, call for a refund, and simply be awkward if you sell an eBook for $5. If you charge $2,000 for a lesson, you'll just get serious clients who are able to part with their money in exchange for value, which makes your life a lot simpler. On any of these benefits, selling a high-ticket item is equivalent to selling a low-ticket item. You'll spend less time selling yourself and optimizing your landing page and more time establishing confidence and authority, delivering excellent support, and honing the product to be the best it can be.
You'll get a few high-paying clients who will be very pleased with the support you provide. With a few deals, you'll be able to survive comfortably for the next year. What happens if the product is a success? And the sky is the limit in terms of how much money you will make. Will you want to increase your earnings by a factor of two? Going from 15 to 30 transactions is a lot better than going from 15,000 to 30,000!
We are seeing the Internet's rapid expansion; it is just a matter of time before it connects every single human on the planet. It now serves as the primary source of knowledge and reports. The Internet can also be viewed as a vast marketplace where every kind of product can be purchased. Affiliate email marketing is one of the most effective ways to increase revenue while still promoting the brand, and it has made selling services and goods much simpler than it was previously.