A client sent me an email recently announcing…
“We sold $28k with just one email!”
That’s a pretty good day, but it was the additional insight he added that stood out the most…
“This business really is all about the high ticket and digital products are almost lead gen and we can probably live with 30-40% front-end ROI as long as our onboarding is good and we have enough high ticket offers.”
This 28k in extra income came in for him was from one of his higher ticket offers.
He’s in a ‘consumer market’ and sells a lot of lower cost digital products using a mixture of organic and paid traffic.
And he’s come to the realization that his $47 offers are essentially lead generation.
He’s buying customers.
This is a big deal, because it’s tough to consistently earn a profit on the front-end with paid advertising in his market.
Advertising is expensive. And it’s only gotten more expensive over the past few years.
While a recession might lower ad prices for a little while…that’s not a long-term trend I’d bet on. The cost of advertising will continue to increase over time.
In some markets, especially if you’re highly specialized or outside the US, you can earn a great return on the front-end. I have clients who were making $10 for every $1 invested in ads (or even higher), but that doesn’t apply to most markets.
And often the numbers decrease as you scale to a broader audience.
This client’s ad campaigns have been heavily tested and optimized, but he is happy when he is doing 70% ROI or better with high volume ads. That means getting back $7 for every $10 invested.
His comment above reveals the secret.
His front-end sales are essentially lead generation.
He could live on 30% to 40% ROI as long because of his high ticket offers on the backend.
What about you?
Are you relying on low ticket offers?
Would you be able to go ‘negative’ on the front-end, because you have high-ticket offers bringing in the cash on the backend?
Perhaps it’s not necessary in your market yet.
But what happens when you have competitors willing to invest significantly more than you on buying new customers?
Eventually, as the Internet keeps expanding, that’s what happens in almost every market.
It’s NOT about what you earn on the first sale.
It’s about your entire business…especially the higher ticket offers that make up a large percentage of the net profits.
Next week I’ll be releasing my brand-new course which will help you put together higher ticket offers.
It will show you how to implement high value offers…no matter your audience or market.
Plus, you’ll discover the secrets behind positioning, packaging, and pricing your offers for maximum income and impact (truly make a difference in the lives of your customers and clients).
- None Found