Shanli Liu uses a hairstylist's business to show why a $2,000 course beats a $15,000 coaching program as your entry offer. The cheaper product has a 30:1 profit ratio versus 12:1 for the expensive one, and reaches way more people. Sell the easy thing first, then move customers up to higher-priced services.
So I had a lady a couple months ago, and so she did hairstyle stuff. And so she's like, okay, I can teach hairdressers how to do this particular type of cut. So that was her low-ticket thing. She's like, or I've got this business coaching thing that's like $15,000. So one thing was $15 grand, the other was $2 grand. I just asked, what's the LTV to CAC ratio for each of these products? And so for the $2K product, it was 30 to 1, and for her $15K product, it was 12 to 1. But this one was more money. Well, we've got Bigger LTV to CAC here. So the only reason I wouldn't do this is if there's way fewer of these clients. But there's way more hairstylists that just want to learn a new style than people who want business coaching. I was like, okay, so we have a way bigger market and a bigger discrepancy in LTV to CAC. Well, let's just do as much of this as humanly possible and then take this thing and put it behind so you acquire customers as profitably as humanly possible, and then your focus goes on ascension. If you have one thing that's really, really easy to sell, use that as the front end, and then basically your focus as the entrepreneur is on the ascension for those people who then become qualified to buy the more expensive one.
