#177 - Low ticket vs high ticket - What’s better for YOUR business right now?

Hey, hey, everybody, it's Kate here from hello, Funnels, and welcome to the Doing It Online podcast. Now, today we are going to be talking about a little bit of a battle of the offers. We're going to be talking about high ticket offers versus low ticket offers and how to know which one is going to be right for your business, which one's going to help you to drive the biggest impact. Because there is a saying, and I don't know who started it, but I. I've seen it for myself to be true, that there are two situations in business where you're deciding to add either a low ticket or a high ticket can really come in and make a massive impact. Situation number one is just when you're looking to get that next level of growth, when things have stalled and you're like, okay, I want to grow faster. So adding in again, the right one of either a low ticket or a high ticket into your office suite can be that rocket fuel to help you jump up to that next level. The other time where they really do both come into their own is when the times are a bit uncertain. The economy has gone to shit, excuse my French. So basically 2023 or anytime since the start of COVID So choosing again the right one of either a low ticket or a high ticket and adding it to your office suite can have a huge, huge impact as long as you choose the correct one. So inside this episode, we are going to dive into why that is and how to choo the correct one to be adding to your business. If you're wanting either A or B or both of those scenarios to be happening in your business right now. So you ready? Let's dive right on in.

This is the Doing it online podcast with your Host, serial entrepreneur, 6 and 7 figure funnel strategist and super nerd Kate McKibben, where every week we're here talking nerdy and sharing the things that actually work to help you do what you do online, but better, easier, and with a ton more profit too. Are you ready? Let's do it.

Okay, guys. So as I mentioned in the intro, when the economy is not doing amazing, when clients and customers are a little bit more hesitant, a little bit more reserved, you could say, with their buying choices, then you need to shake things up. You need to usually add something different into the mix to kind of counteract that problem. And adding in either a low ticket or adding in a high ticket. Traditionally, in times of economic, economic uncertainty, those two pro, like low, low ticket and high ticket, they both thrive when the economy is shaky. Now for those of you who have more of a mid tier. So that's anything sort of thousand, $2000ish kind of mark, who's listening to this crap? Like I have those things and you know, maybe your sales have slowed down. Maybe you're, you're seeing this already. This is where this, this is what this episode is really for is to help you to go, okay, well yes, I'm not saying get rid of your mid ticket at all. It's still going to make sales. They're just probably going to be a bit softer than in other, you know, other times. So if you are wanting to grow or if you are needing to reboost that revenue, then that is what this is all about is where we're going to talk about the low ticket, the high ticket and which one is going to be. And so what I'm basically do guys is for each I'm going to go through the pros and the cons. So we're going to start with the low ticket. And by low ticket guys, I mean really anything under $200, it doesn't have to be your fully like tiny offer or mini but mighty offer or micro offer as we call them. So you know, it could be A$7, A$27, even A$97 offer. Particularly if traditionally your office suite has been in the multiple hundreds, if not thousands. This really does just open up a whole new market. The fact that it is that more bite size investment. Sorry, bite size investment does mean that there's going to be people who've probably always wanted to work with you but haven't been able to, who are going to be able to take that first step. So the pros and the cons obviously. Let's start with the pros pros. It's great for list building. So when you have that, that lower priced offer, particularly if you can put some ads behind it and get it to self liquidate, it's, you know, that's a great way of going out there and building an audience. Same as if you're going to be doing live launches to that lower ticket offer. Again as long as you can keep that of an ROI of one or more or keep it even better profitable right up front. It gives you a great lever to be able to be list building without spending a whole lot of cash on ads and not knowing when it's going to come back. So it's something you can be out there promoting organically. You can promote it through paid. But either way, because it is that lower Ticket offers. You know, you can go out there and say, hey, I've got this great thing. It's only $97 and it's going to get not just your existing audience, existing list excited, you're going to get a bunch of new people as well. The next one is you usually don't need anything too fancy to be able to sell a low ticket offer, particularly if it's something under $100. Even under $50, you can usually sell it with a few emails. You might need to throw it in an early bird discount here or there, but you're not needing to spend weeks and weeks creating, you know, convoluted different setups or honing and wrestling with a webinar or trying to map out like the perfect challenge. That's not going to over teach, but it's also going to provide enough value that people stay through to the end. So really, you know, you can get rid of all of that with a lower ticket offer. Sure, you can have them as well if you want to do that, but you can usually convert pretty decently off, you know, you bare minimums of marketing and sales strategy. So that's, that's a big win. And even better if you're just sort of getting started in the space, it means that you can kind of kick things off with a bit of a bang. We, for those of you listening who don't have a product at all, you know, inside our programs, we talk about creating a toe dip offer which is really that too good to be true, almost priced lower ticket entry point that just sort of helps you to, you know, dip your toe in the water, see what it's like, you know, start to sharpen up a bit of your marketing chops, see how you set everything up and then you'll have a lot more sort of confidence going forward and creating other programs. But that's another tangent. The next thing, and this is actually one of my favorite parts of a low ticket offer, is that it gives people a taste test of what it's like to work with you. Now we found this time and time again, particularly as you know, we traditionally sell more sort of premium level offers is that when you go back and you actually dive into the stats, dive into, you know, this is why we're all about tracking and tagging and all that kind of stuff. When you actually go and have a look particularly for a more premium offer, you know, most people, and not everyone, but a good percentage of people who come through the majority have had multiple touch points with us before they've purchased. So they've maybe watched a webinar, they've joined a little workshop that we've run. They've done something else. Like they've done multiple things. They might have even bought a lower ticket product, which I'm talking about. So they've been able to jump in, have a taste test, get that initial experience of what it's like to work with you, your team. So see how you teach, see how you connect, see how you actually give support. And if they like that and you've been able to help them, you know, then when the time is right, they're going to want more and they're going to be more likely to then be sort of excited about your other offers. Now this is not, this is a long term strategy. This is not a like hey, get them in and then next week go and sell them something else. This is for those people who, you know, potentially take 6, 12, 24, 36 months on your list to have that enough coins in the trust piggy bank to be ready to take that next step with you. The other thing that I love about a low ticket offer, particularly in more stressful times when you want to be able to be more agile, you want to be able to have the energy, the brain space and the resources to be able to be testing new things and to be pivoting whenever you need to, is there is a very low time commitment from you. Once you've got it set up and running, usually make, maybe it's just, it's a single workshop and you sell that recording, maybe it's a community and you're going in there answering some questions for like 5, 10 minutes a day and doing a monthly Q and A, whatever it is, you know, and make sure you please don't over deliver too much on a lower ticket offer. But the time commitment, it's very leveraged. It's, you know, it's a lot lower and it does just mean that you, while yes, still being able to connect with a lot of people to make some great revenue, you're not having to fill up your diary with one on ones and, and lots of more intense things or even intense sales activities like sales calls and things like that. Okay, cons is, cons is going to be that, you know, you need to sell a lot to earn a lot. You know, funny, funny that, right? So traditionally to get a low ticket offer or lower ticket offer to be profitable and not just to be like an extra little line item in your, you know, in your budget, you need to have an existing engaged audience, the bigger the better. And, or you need to be, have the resources to be able to, or the skills to be able to run ads and be happy to run them probably, you know, at a fairly high spend to start with. While things are kind of kicking off, you're getting enough people in, you're getting testimonials, all that kind of thing. So that might sound a bit counterintuitive, but if, you know, particularly if you're building up something like a membership where you're expecting people to stay on for multiple months, you know, the, you really want to make sure those first couple of months you're getting as many people in as possible so it gets buzzing as quickly as possible and then you're going to have that nice recurring revenue reflected months in, months to come. But if you don't have that ability to get, you know, 100 or so people off your list or you know, even more from Facebook ads, then it might just be, it's a lot. It's still, you know, there's still effort to sell it, there's still effort involved. But, and if you're only going to be getting a handful of them, maybe that doesn't, you know, maybe that calculation, that sort of time, energy, effort, ROI doesn't add up. Then another big con, excuse me, and this is always something to be aware of is again, when you are going and selling something that's potentially going to have hundreds if not thousands of customers, you then have usually a big uptick in your customer service time. So you definitely want to make sure you have someone on your team who is answering login requests, answering refund requests, all that kind of stuff. Because with that much larger intake of clients, you're going to have much larger intake of customer service needs. And it does just seem to go hand in hand that when someone has invested a much smaller amount there, there generally is a larger amount of customer service, percentage wise requests than something that is a higher ticket, the next one. And again, this is probably more for our introverted people listening like myself is to just be aware that even though the, you know, you can set it up to be as leveraged and systemized as you want, that you're only jumping in for a little bit here and there. The, there is still a toll energy wise on holding the space for a community of that size that's got hundreds of people in it, you will feel some sense of responsibility about keeping it buzzing, making sure like all of these people, it's like you're hosting a party in your house, you Want to make sure everyone's having a good time. And that's a lot of people. Like that's not a party, that's like a massive, massive wedding kind of thing. You know, just, just be aware of that. If that's not something that's going to vibe with you long term, then, you know, don't, don't commit to it now. Don't, you know, take on this strategy because there's no point. I don't believe in trying to grab little quick fix strategies, particularly if it's like creating a community or whatever. Because that, you know, you want to be, you know, you want. The strategies you want to be grabbing onto are ones you want to be able to hold onto for a long time. Ones that you're going to be able to reap the benefits of for many years to come. Ones you're going to be able to, you know, take the time to master and get better at and improve and improve and improve. Rather than going, okay, I'm going to try this didn't work. Okay, I'm going to try this didn't work. Okay, I'm going to try this didn't work because that's really, really exhausting as well. Okay, so that's low ticket. Now let's talk about high ticket. So high ticket, I'm really talking about anything sort of like $5,000 and above. So high ticket, you know, has kind of, it's almost like the opposite in everything. So pros, you don't need to have a huge audience to be very profitable. If you're selling one $5,000 thing a month, that's 20 grand a month. And you know, I haven't got the calculations right on top of my head, but you know, go and run the numbers of how many lower ticket items you would need to sell to make 20 grand at it. You know, just that number alone can be enough to scare people away. And next, usually with high ticket, because traditionally there's a bit of a filtration system built in, like whether it's application, whether it's sales call, whatever it is, there's usually a bit more back and forth. You get to actually be choosy with who you work with. It's much harder to put in any barriers at a lower ticket when people can just buy and jump right in and you've got this big community. So you could end up with some personalities that, you know, you don't jive with. Versus if you're going to be working with someone in that more sort of direct space and direct way then you definitely want to make sure that you are only working with people who you're going to really enjoy working with and you have that ability to do that when it's at a higher ticket. Usually again as I said exact opposite as with a low ticket usually people who are willing to invest at that higher level, they're usually a more experienced customer and to usually have been in the game, whatever that game is, right. Whether it's business, whether it's health, whether it's, you know, relationships, whatever it is, you know, to. They're no longer a beginner, they're probably not even intermediate, probably more of an advanced they to stay the, what's the, what's the word I'm looking for to stay the course for, you know, any kind of amount of time. Particularly if it's been, you know, they've been doing whatever it is for years. Like maybe it's health, like you know, you might be helping trying to solve this problem for a long time. They usually have some other qualities that beginners just haven't, you know, they don't have yet because they haven't really had to grow them or find them within themselves that again make them just traditionally not always an easier client. So you know, these are things like they might be a self starter, they usually are coachable. They should know that about themselves at this point. They usually just, if you know, they've taken the time they've to make sure they've chosen the right thing for them, then they're going to, they really, really value the investment that they've made. So they're going to go and do what you ask them to do. So they're going to get better results. So you know, usually again it's a, you know, there is that sort of stigma attached to both ends of the pricing scale. But it, it has proven to be, I mean not always but proven to be majority true. They can just be a, you know, a bit of an easier client to work with but again not always. Cons obviously at a higher level and depends on the investment and depends on your setup and your team but it does require some level of one to one or just some sort of higher time and energy commitment throughout your week. And it usually also needs a more sophisticated sales either skill set or just system so, or even you know, often sales calls. So again that's your calendar kind of filling up there which if you hate that then it's probably not going to be the right choice for you. And the final one, I say this is not a Con, but just something to be considerate of and something that I'm very, very passionate about. But you know, a higher ticket offer is not for beginners. You know, you can't come out of the gate and not have already got a bunch of, you know, runs on the board and not be really, really good at what it is you do and getting the outcomes that you help people with to be able to charge those prices. Well, you shouldn't like just you know, to be able to sit in good conscience. The, you know, the higher ticket is for people who've been around the block a few times, they've really honed and mastered what they do so they know that they with a really good level of certainty that they are able to give people the value that those people have, you know, handed over that higher level of investment for. So if again you're trying to think which one should I go for? A higher or a lower if? And I don't like this isn't talking about, you know, your self talk around worthiness or perfectionism or anything like that. You should know deep down whether or not you can and have already got been able to help people well with this problem. And if you're still getting started, you're still figuring stuff out, you're still testing different things, you haven't found your own specific way of doing things yet, then maybe the lower ticket might be a really great testing ground for you versus going you know, higher ticket and having a whole bunch of, you know, feeling like a fraud and potentially not being able to give people that experience that they've paid for before. So that's kind of like the pros and the cons. So I will leave it up to you now to really weigh up which one would make most sense to add into your business right now. But neither of them. And the kind of, the other thing I should say is a pro, I think of both is that whereas you know, usually your mid range programs, like your DOI style programs, even your group level programs, they usually have a lot of curriculum that needs to be created which is quite time consuming. However, your higher ticket and your lower ticket both generally have less curriculum because they're more about the support or they're more about the one on one advice or they're more just because the fact that they're a lower ticket, you know, the expectation is they are a small, you know, it's A1 training, it's, you know, it's three little videos. It's a much simpler thing to create. So both of these are actually quite easy and simple usually to have up and running and be able to deliver creation wise. Which is why I think in times like this when you're like, okay, what can I do? I need a new strategy. I need to do something radical to shake things up, to really make a big difference in the second half of the year. You're choosing one or the other and using that one which is going to make the most sense for you can make a huge impact. So I would love to know, as always guys, if you are thinking about doing either a low ticket or a high ticket if we've helped you to make up your decision. If you have any other questions, just DM us over at hellofunnels or pop a comment below the video. Otherwise guys, I will see you same time next week. Have an awesome week guys and see you then. Bye.

Thanks so much for listening to the Doing it online podcast. If you love this episode, don't forget to subscribe and leave us a review. And if you're ready to take your online course sales to the next level with your own six or seven figure funnel, let Kate show you exactly how today@stealmyfunnel.com.

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