How to make money selling cheap products on YouTube ads. You need high lifetime value and average order value to stay profitable, especially in e-commerce. The speaker breaks down the math that makes low-ticket offers actually work.
Now here's what works on YouTube. Okay? Low Ticket works. Mid ticket works, high ticket works. Everything can work. It's just about how you structure it. Low ticket can work. In fact, I've spent millions of dollars on low ticket offers all the way from 7 to $97. The key here to making low ticket work is having a high AOV of above $50 or more because of the cost per sale to get the customer. And if you sell E Com, for example, you have to have a high LTV because you're probably going to spend more than actually what your product's worth on the front end and you're gonna have to keep them longer on the back end to be able to make the profit back. This is why most people don't have success with low ticket offers on YouTube. They don't have a back end, they don't have a high ltv. Therefore they need to make profit on the front end. And then when it doesn't work or they're not profitable, they're saying, well, YouTube ads doesn't work. No, it is. It's just that your offer isn't priced and packaged positionally for the unit economics to make sense.