Earning money selling low and mid-priced products can be very lucrative. If you work hard, churn out regular products, market and promote and repeat, you can make a good living. However, most business owners are leaving a lot of money on the table by not selling high-ticket products.
When it comes to promoting products, most people stop just before the high-ticket items when creating their product funnel.
Their funnel might look like this:
List subscription > freebie download > 19-dollar eBook > 49-dollar small-priced item > 197-dollar mid-priced item… and then that’s where it stops. Maybe, in their mind the $197 product is a high-priced item, but the truth is, most business owners can do a lot better. If you really want to make the big money, the life-changing money, you can’t stop there.
You need to add two more opportunities:
1. A continuity item – This type of product carries a monthly fee, either permanently, short term or long term, which is also a high-ticket item over the course of time.
2. A high-ticket product – This product sometimes can only be purchased once, takes considerable time to create or deliver, or takes personal attention (in which case it can often be purchased more than once, i.e. coaching).
Some people add in their continuity product after the mid-priced item, and then only market their high-ticket item to the people in their continuity program. It’s up to you exactly how you do it, but it is important to add high-ticket products to the opportunities you offer your audience if you really want to take your business to the next level and have long-term security.
Not only that – if you’re not offering a high-ticket item, are you truly giving your audience everything you have to offer? If you are giving them all you have to offer, you may need to look at your pricing structure because you’re undervaluing yourself.
Plus, did you know it can take just as much time and expense to market lower-cost products as high-cost products? But, due to the higher profit margins, your marketing percentage in relation to income will actually go down.
If you add high-ticket products to your offerings, you are going to automatically start earning more money. Not to mention you’ll also offer more value to your customers by adding the high-ticket product.
Benefits of Promoting & Selling High-Ticket Products
There are many benefits to selling and promoting high-ticket products (or services). Adding high-ticket items to your product funnel will automatically increase your return on investment, increase the potential lifetime value of every email list subscriber you have, and even introduce you to more serious and effective customers.
Sell Less but Make More
It’s simple math. If you need to earn $5000, and you are selling a 19-dollar information product, it’s going to take you a lot longer to make that money than if you sold a 1000-dollar product or service. It might seem like it will be harder to make those $1000 sales, but statistics don’t hold up to support that idea. Statistics support the idea that when people perceive value in an offer, even if it’s expensive, they’ll buy it.
The Marketing Remains the Same
To make $5000 selling a $1000 product means you only have to sell five – maybe six to cover the cost of marketing – compared to the plus 264 products you’d have to sell to make five grand with the lower-cost product. In fact, since the cost of marketing remains the same for the low-cost product and the high-cost product, you’d likely have to sell more than double the $19 products to cover marketing costs and make the $5000.
You’ll Make More on the Back End
Once you have made sales to higher end customers, they will – just like when you sell other products – go into a list of customers who have bought the item you were promoting. Then you can promote more to them and limit these promotions to only high-ticket products and services. They’ve already proved they’re interested, so you can make even more now.
Your Net Profit Is Higher
You would think that the cost of creating a high-end product would be expensive but the truth is, your profit is so much higher that even if you double the cost to create the product, you’re still going to make a lot more profit off each sale. This is because your markup is higher, especially if you can deliver your product digitally.
Higher Perceived Value
Believe it or not, anyone who looks at your product will automatically see it as worth more than you even charge for it. There’s something about offering high-end products that changes people’s perceptions. Think about an item such as a purse. They all accomplish the same task – whether it’s $10 from Walmart or $5000 from a fancy designer. But everyone sees the fancy designer one as having a higher value.
More Active and Serious Customer Base
Consumers who spend high dollar amounts on information products and services will put them to use. You’re going to get a lot more valuable feedback and make more connections with these customers than you will for lower-priced items. This can really make it worth it because you’re going to feel more useful.
As you add high-ticket products to your product funnel, you’ll become surer of yourself and more certain that this is the way to go if you want your business to grow. There are only so many hours in the day. If you want to truly make a difference in your family’s income and lifestyle, this is the way to do it.
Making the Shift
If you’ve been in the business for some time, you may worry that your current clientele will not be happy with you promoting a high-ticket item to them. But, the truth is, if you’ve provided high-quality products and services in the past, some percentage of your audience will want the high-ticket items. Remember, with high-ticket items you don’t have to sell as many to make a profit.
The trick is that you need to make the shift to understanding that you deserve high pay for your high-ticket items.
If you do not believe in yourself and what you offer, it’s going to be a hard road to convince anyone to pay you more than they do now.
Value Your Offerings
Create or find solutions for your audience that is worth the price and then some. A high price is only high when it doesn’t deliver the promised solution.
Value Your Experience
Your years of experience within your niche is an important component of being able to command higher prices.
When you accept in your own mind that the product is worth the price (and then some), and you are proud of the product, it will show in your marketing efforts. You will easily be able to overcome any backlash that occurs among your current customers when you start promoting higher-priced products.
Accept That You Deserve to Make Money
Your education, experience, and ideas have worth and value. If you have the ability to share that with others, you deserve to earn a living from it. You have no obligation to give it away. Plus, people really do not appreciate things given freely as much as they do the ones they pay for.
Build a New Willing Audience
Your current audience is a good starting point to promote your high-ticket items, but you will need to start working on gleaning that audience, and venturing out for the right people to promote high-ticket items to.
Limit the Number You’ll Sell
A great thing about selling high-ticket products is that you can build in exclusivity by limiting how many you sell. A good rule of thumb is that the more personal time your product requires, the fewer you should sell and the higher the value as well as the price.
Once you’ve shifted how you think about yourself, you’ll be much more likely to do a good job promoting the high-ticket products you’ve decided on, whether you created them or you choose to promote someone else’s products. Plus, once you see how simple it all really is, as long as you’re offering something truly valuable to your audience, you’ll want to do it more and more.
Selling High-Ticket Products in Five Steps
Once you get on board with creating and promoting high-ticket products, you’ll need to know how to promote them. But, like any product or service, the key to truly successful promoting is to develop an understanding how the high-ticket product solves problems and for whom it solves problems.
1) Identify a Problem
In order to identify a problem you’ll need to understand your audience. Who are they and what do they truly need? Do they know what they need? More importantly, if you could offer them exactly what they need, will they be willing and able to pay the cost? Whatever it is? If you’ve done a good job of identifying the audience and their problem, you’re partly there.
2) Find or Develop a Product that Solves the Problem
Your audience really doesn’t care about price as much as you may think they do. They care about solutions. If you have the solution to a problem that has bothered them for years or even decades – and now you can give them the answer that will solve that problem forever – why wouldn’t they want to pay for it?
3) Set Up Lead Generation Systems
It’s important to understand the type of lead generation systems that work well with high-ticket products. Currently, one of the most popular ways to promote a product and to generate leads is to offer a high-value webinar. You can offer the webinar free, or for a small fee, but a good 40-minute to one-hour webinar that will provide real answers to real questions to real problems, and which also features a limited opportunity to grab your no-risk solution, is the very best way to generate leads and sell your new high-ticket product.
4) Promote Your Solution
When you collect leads via the webinar system, many will purchase right after the webinar, but some will not. To those, you will want to develop an automatic promoting system via email that ensures they will not forget about the opportunity you’ve given them. You can even send recordings of the webinar to people who signed up and did not show up. The important thing to take away is that without promoting your solution, it could be the best thing since sliced bread – but no one will know about it.
5) Follow Up
When you make a sale or any conversion (for example: someone signs up for your email list), it’s important to always follow up. It’s even more important to follow up when someone has spent a lot of money with you. Thankfully, you can automate and personalize most of the following up that needs to be done using the technology available. The follow up is going to be a key force in improving your bottom line and selling more high-ticket items to your audience.
As you can see, promoting a high-ticket item is just like promoting a smaller priced item. You still have to understand who your audience is, the problems they have, and either create or find a solution that will solve their problems. Then, you have to promote it, build relationships, and follow up.
Identify a Problem and Develop a High-Ticket Solution
Before you can start making high-ticket sales, you’re going to need to identify the types of problems your audience has that can be solved with a high-ticket product. You’re not going to create a high-ticket product in 24 hours. It’s going to take some thought, some expertise and a little bit of perfectionism to create a product that includes enough bells and whistles as well as real solutions for your audience.
Understand Your Audience and Their Problems
It’s pretty obvious that you need to know who your audience is, including all their psychographics and demographics, how they live their lives, what they can afford to spend on extras, and what they consider necessities in their lives.
Plus, you need to identify problems that your audience has which fit in with your niche and which you can create solutions for, or find solutions for.
Look for Turnkey Solutions
You have the choice to find good solutions that someone else has created. These should be high-ticket items where you will make a high commission for selling them.
Whether a digital product or not, if you don’t have to spend the time making it, or shipping it, or worrying about anything else but promoting it, becoming an affiliate for someone else can be a great solution – if they have the ideal product and solution for your audience.
However, you’ll need to work harder to ensure people get and remain on your email list and as your customers. Because once they buy from the person you’ve been promoting, they become their customer too.
Create Your Own Products
Buckle down and brainstorm in order to develop a product for your audience yourself. Creating your own products isn’t as hard as you might think. Look at your competitors’ products to determine what type of products you might develop but with your own flair and of course, just a little bit better than theirs.
When you create your own products there is a certain amount of pride that will also develop within you as you truly solve your audiences’ problems. Plus, you keep the customers as your own and you’re not sending them to your competition. This means you can promote future products to them, too.
If you choose the latter decision to develop your own products then you also have the option to outsource the product creation to others. You can get help. You don’t have to do it all alone. There are professionals who have created products like the one you want before and who will, for a fee, create a product for you with your ideas.
You can find people to develop your product ideas – whether it’s an information product, a software solution, or something else entirely. The sky is the limit and only your imagination and budget can get in your way.
Set Up a Lead Generation System
Setting up a lead generation system is imperative if you want to promote any type of product, but if you think you’re going to promote high-ticket items you’ll need to get your lead generation system set up and working flawlessly. The best way is by using the right technology. But again you need to understand your audience and create interest with blogs, reports, webinars, freebies or low-cost bait to attract buyers.
Use Awesome Technology
You’re going to need an email marketing system like AWeber.com, and also something to make sales pages that convert. You can also use WordPress to easily create sales pages, but if you invest in technology made for sales pages and combine it with a full-featured email marketing service like AWeber, you’ll experience a lot more success with their tried-and-true templates and methods.
Create Interactivity for Buyers
Buyers like pages with easy-to-notice and click-on buttons that also offer communication besides “click here”. Try to use some humor and fun in your button language and interactivity to connect better with your buyer on an emotional level. Do keep your audience in mind, as well as the seriousness of your products and services before putting anything too informal on a button or in the language of your sales page.
Ask for Less Information
Consumers dislike having to enter in too much information to get anything. Collect just an email and a name at the most to get them to sign up. The best thing to do is just ask for an email address and leave it at that. You can always get more information in other ways later once they’re on your email list. But, at first, remember that less is more.
Make Your Link Bait Easy to Share
On your offer page when you offer the freebie or low-cost item to get your audience to sign up for your email list, make it simple to share. Give your target audience more freebies as they share with Twitter, Facebook, and other social networks. Having the right technology will make it easy for you to create the process. LeadPages.net offers templates that make doing this a no-brainer.
Fewer Clicks Mean More Subscribers
The less you make your target audience members click on things, the more likely they are to sign up for an email list. Don’t make it a long, drawn-out process to complete or they will abandon the process and you’ll miss out on new subscribers that may have actually been interested but have little time to keep doing things that require more clicking.
Give Them Something of Value
Whether you provide your audience with a freebie or a low-cost item to get them on your list, you need to provide them with something of value. They need to get more than they think they’ll get. This will ensure that they can truly imagine the value of the high-ticket item you ultimately wish to promote to them.
Use Your Entire Social Network
Don’t just make a sales page and call it quits. Use the tools you have available on social media like promoted posts on Facebook, and mentioning on Twitter to get the word out about your email list and eventually your product, too. Using all means to market your freebie or low-cost item, and then use your email list to promote your high-ticket item. Remember, everything should lead to your email list. That’s where you’re most likely to make a high-ticket sale.
Optimize Your Subject Lines
When it comes to emails, sales pages, and really any “title” to anything, it’s important to give it a lot of thought so you can optimize it – not only for social media but also for your audience. The words you use have to strike curiosity and emotion in your audience while being authentic, honest and speaking to what’s inside.
Setting up a lead-generating system needs to attract your targeted audience to sign up for your email list in a way that they feel thankful for the opportunity. You want it to be simple, for the technology to work, and then once they’re on the list you need to start promoting to them.
Promote High-Ticket Products to Your Email List
Once your prospects sign up for your email list, they’ve usually already seen a sample of your work. They purchased a low-cost item, went to a webinar, signed up for a teleseminar, or downloaded a freebie report. This has given them some indication of what type of work that you do and how good your products are.
Create an Autoresponder Series to Whet Their Appetite
Once people sign up for your autoresponder, they need to get information from you. An educational series of at least seven emails explaining their problem is a good way to get started. You can start promoting the high-ticket item right now, or you can lead them to a mid-priced item, moving them from this list to a new list where you start over doing the same thing but promoting only the high-ticket items.
Send Subscribers to Your Blog for Education
Each time you write a blog post, also write an email with some information relating to the blog post, and then link them to the blog post and tell them to click through to read the important information on this blog post. Load that up into your autoresponder too, or if the blog post includes a limited one-time offer, send it out in a scheduled one-time broadcast.
Send Them to Your Social Media Accounts
Cross-promote your social media networks, groups, and pages via email. Invite them to connect with you on Pinterest by asking them to add to one of your Pin Boards. Ask them to answer a question on LinkedIn that you’ve posed to your group. Whatever you can do to interact with your subscribers, the closer they’ll feel to you, the more trust that will develop between you and the more likely they are to purchase your high-ticket product.
Invite Them to Exclusive Events
Plan a monthly teleseminar or Google Hangout On Air, and invite them. Anytime you have another webinar, if they’ve not purchased yet, invite them. With proper list segmentation you can market specifically to the right people at the right time with the right products. The people on the list are primed for what you are offering and the longer they are on the list, the more likely they are to purchase.
Keep the Information Flowing
Do not SPAM your list; ensure that every message has a good reason to go out to them, as well as a call to action (CTA). The CTA will let your reader know what the next step is to get the information they desperately need to solve their problem. That information is, of course, your high-ticket product.
Promoting high-ticket products is not just a way to make more money. It’s a way to also connect with a different type of customer – a customer base that is excited, motivated and serious about following the suggestions you make to them about their problems. They are more likely to follow the steps and see success than people who purchase lower-cost products. In this way, you will get a lot more emotional satisfaction from your business, plus you’ll make more money. It’s a win-win situation, all the way around.
Make Even More Money Later
Believe it or not, when you finally sell a high-ticket item to a customer, it’s not over. You will now segment that customer and those who follow to a new customer email list who are most definitely interested in higher stakes and products. This means you’ve opened up a whole new market and increased the lifetime value of each customer.
Depending on what type of product they purchased, you can now build on that and sell them other products that are either more expensive, or even less expensive. Anytime you have a sale, or a new product, no matter the price point, it’s a great idea to promote it to the people who have shown great trust in you by buying the high-ticket product. Not only that, you can still promote other people’s products to them as well, as long as it solves a problem that they have.
Another idea is to offer coaching to them. Sometimes, people will purchase a high-ticket item and try to put the ideas into action, but due to blocks of some kind they have trouble. You can make it easier for them by offering something extra such as a continuity program consisting of a members only forum, telephone coaching, Skype coaching, or something else that they need to help push them forward. The happier you make them, the better.
The Lifetime Value
What’s more, happy customers can become happy fans and affiliates of your products and services and in turn promote them to their connections, friends and family. This is an excellent way to stretch the lifetime value of a customer, as well as the relationship. If everyone is making some money, and/or solving their problems, everyone is happy. This will give you a great source of testimonials, interviews, case studies, and more content in general to use to create and promote your products and services even more.
The truth is, when you provide a high-value product, no matter the ticket price, your customers will thank you for it. But, you’re going to have to build that relationship with them, and ask for what you want. You’re going to have to follow up with them so that they will fill out a survey giving you a positive testimonial, tell them about your private members only forum, let them know you offer coaching to help with implementation and more.
Get Started Selling High-Ticket Products
Finally, if you want to get started promoting high-ticket products, it’s imperative that you follow these steps and get to know your audience like never before. Create or source the perfect high-ticket product that solves problems for your audience. Then, start promoting. Use every resource at your disposal and you’ll soon find that you are more successful than you thought you could ever become.
When you promote high-ticket products, you’ll make more profit, increase your bottom-line and become a true mover and shaker in your niche and industry. As you become more successful, you’ll get more ideas about more high-ticket products and your business will snowball into a huge success. You can do it!
If you are wondering right now, “Why me?” you’re not alone. But, the truth is, the people who are selling high-ticket products right now aren’t better than you. Each person has their own unique twist to everything they do. You have your own thing that makes you special, adding a twist to any product you make or find that no one else can do. The only difference between those who do and those who don’t is the word not.
Let go of the not doing something and transform yourself and your business into a business and a business owner who does things – today.
If you’re struggling and don’t know the best course of action for your business, we need to talk now.
Your success is my business,