The Difference Between High Ticket and Low Ticket
The Difference Between High Ticket and Low Ticket
This is a post that was made in Laurel’s $7 program group. It’s been referenced enough times to justify an entire newsletter post.
Here’s a perspective that might be useful to some…
High Ticket vs Low Ticket Offers
First, these things don’t exist in the real world without context. “High ticket” vs “low ticket” is a linguistic convenience for marketers to explain a tactic that fits within a specific strategy.
In other words, something is low-ticket or high-ticket based on its function1, not its price.
That strategy, by and large, is to acquire customers.
The primary strategy behind, or the function of, a low ticket offer is to either (or both):
Liquidate some or all of your traffic
Get new buyers easier than will turn into repeat buyers or ascend to higher ticket stuff.
Generally speaking, a low-ticket offer is a front-end offer designed to get people to say yes without the need for a long conversation.
Which means…
If you can sell it without getting on the phone
People will buy it without needing to think about it or talk to anyone
…it’s probably a low ticket offer within your strategy.
The price point is only part of the equation.
If you have a $197 thing that is a no-brainer and people will impulse buy it straight from ads, it serves the function of a low-ticket offer.
If you have a $80 thing that people will not buy or requires a long phone conversation for them to purchase, it’s cheap - but it doesn’t serve the function of the low ticket offer. It’s just a low-priced product. (There is nothing wrong with a low-priced product, BTW, it just doesn’t serve the purpose of a “low-ticket” offer).
In some industries, people will impulse buy front-end products well over $1,000 - for those industries and those buyers, that’s a low ticket offer.
In others, it requires hours of conversation and diligence for them to spend $100.
So, from a function standpoint…
If you can sell it without a phone call or long dialogue, it functions as a low-ticket offer.
If not, it’s not functioning like a low-ticket offer. It might be cheap or affordable, but it’s not a low-ticket offer.
And that’s okay.
I just want to provide a perspective that the price of a thing does not necessarily equate to the function of the thing and when you build an ecosystem, function is what matters most.
The Purpose of a High Ticket Offer Is NOT To Make More Money
Ever seen an episode of Shark Tank?
The sharks never ask how they can make products more expensive. They look for ways to make it more affordable.
So why do high ticket offers exist?
Few reasons.
The main one is the margin.
Selling a coaching service for $12,000 gives you the margin to justify the time with the client and provides the capital necessary to build out the rest of the program.
So…
If your offer provides enough margin to cover your ad costs and improve your product with a small number of buyers (the early adopters) it’s functioning as a high-ticket offer.
Again…
If you think in terms of FUNCTION you’ll build something that functions properly.
If you focus on price, you’ll build something that is either cheap or expensive - but it may not function properly.
Function always comes over form.
Hope that makes sense.
live to learn. give to earn.
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