High-ticket products beat subscription models because they're more profitable and predictable. A $300 weighted vest generates enough margin to spend $90,000 monthly on ads and still profit. One big sale is easier to manage than chasing repeat customers you might never see again.
So there's 2 metrics that make up a successful brand. One of them is average order volume. The next one is lifetime value. So lifetime value is mostly like in supplements or any subscription-based model that you go ahead and purchase, right? Let's say you go ahead and purchase something every single month, every other month, every 3 months, right? That's lifetime customer as far as you trying to go ahead and figure that out. The other one is average order volume. How many people are going ahead or what's that price tag that people are shopping for every time they purchase your brand? You see, a lot of people think that the most valuable thing you can have is a subscription-based model, right? A supplement, something that they purchase over and over and over again. But if you have a high average order volume, I would rather take that business 10 times out of 10. Why is that? Well, you really have to calculate the lifetime value of this actual customer because a lot of people go into the negative trying to acquire a customer because they know in the long run, they'll eventually be profitable, but there's no guarantee you're gonna make it in the long run, right? Like, I sell a weighted vest, for instance, right? And the weighted vest can go all the way up to around $300 to $380 for a weighted vest. I would much rather go ahead and have that type of business because I know that if somebody spent more than $300 on a weighted vest, I can sell them anything else with that brand because now they trust it. They went ahead and put money behind it, and they're going to keep on coming back over and over and over again. And not to mention that I'm able to compete way more in advertising. I'm willing to spend so much more. I have a brand like Maverick that we spent over $90,000 every single month because we know we're so profitable that it's well worth it. So again, don't focus so much on the lifetime value because not only is it really hard to go ahead and, you know, find a metric to actually know that exact number, you're going to be spending so much money just for in the long run to be profitable.
