How To Price Your Low Ticket Offers To Get Better Results - LowTicketBook.com

The other thing that I want to share with you is that how important it is front-end pricing for funnel math in general. And I'm going to share my screen because I did some notes here for one of my clients. Here are some notes that I took for one of my clients. And this is a client that it's spending close to $1 million a month in ad spend. Now, most of that ad spend is going and has been going to YouTube. And, uh, and most of that ad spend has been going and it is still going to a VSL funnel, right? But here's the problem, or here's some of the challenges that they've been going through, is that they scaled to this level of ad spend over the past, I want to say, 12 months. Okay, so since the end of last year, and they've been consistently scaling. And of course as you scale that much, your costs will start going up. And that's exactly what's happening right now to this client where, you know, there's a couple of other challenges in terms of they haven't been refreshing creatives enough. There's a couple of other challenges that we are addressing. But the first challenge that I came in and tried to address was the fact that they only had one source and one way to generate leads. And if you've been around, you know, what we've been doing for a while, if you read my book and whatnot, you know that I'm a big fan of having more than one way of generating leads and sales for your business, right? So, you know, we went into this, they created this book, and it's basically, it still is in its infancy. If we compare what we spend on this book versus what we're spending on YouTube for the high-ticket funnel, this is still very much in its infancy, but I want to share with you some of the results that we've had for this book specifically because we are testing, or we have been testing, different price points on the front end. So I wanted to share with you this because I think it's really enlightening and really, really interesting how things are performing here. Now mind you, this is a book and they only have a book and an order bump, right? They don't have any upsells or anything like that, which of course leaves the ground for a lot of opportunity, right? That is something that I'm working on. They're putting together a challenge, they're putting together a couple of other things that my intention is to put this as upsell. So it's just the book and an order bump and that's it. And then they offer people to book a call with their sales team. So these are the results that we've been getting for the past 30 days since the beginning of September. Now we tried 3 price points, okay? Uh, in reality we tried 2 with a decent degree of, you know, spend, and then we are trying a 3rd one which I'm hoping to be the best one based on what I'm seeing on some other funnels. But anyways, we started with a $27 version of a book, right? It is an ebook, right? That there's no like shipping, so It's just an ebook for $27. And, and that's how I received the funnel. And then the founder had the idea to sell it for $7 because he wanted to get more people in. Okay. So, you know, so we run it at $27 for a little bit, then they wanted to run it at $7 for a little bit. And then I say, why don't we run it somewhere in the middle at $14? Right. So because it was basically in the middle, it was in between, you know, under $10, $10 to $20, and, you know, over $20 or $20 to $30. That's kind of— those are kind of the ranges, right? So anyways, from September 1st to September 18th on this book funnel, this is the $27 version. As you can see, let me zoom in a little bit so you can see better. We spent $12,000, $12,541.41. We got 133 new buyers at a cost of $94.29 per buyer. Out of these, we generated 12 new calls. Again, super simple book funnel, right? Like front-end book, order bump, and then book a call. 12 new appointments, a total cost per net new call of $1,045.11. And then out of these, they close 5 new members on a $6,000 program at around $2,500 CPA, right? But this is where it gets really interesting. This is where it gets really interesting. Of course, CPA matters, but what also matters is this, is the average order value. The average order value for this funnel is, again, we don't have much, so it's $2,700 and some change. It's $2,817. Right? But the immediate liquidation, if we compare the cost per net new buyer versus the average order value, the immediate liquidation is around 30%. It's close to 30%. So we have a 0.3 ROAS on this funnel. Now, if we back it out a couple of weeks later, 3 weeks later, 2 to 3 weeks later, this funnel has an actual— has almost a 3x ROAS. It's you know, at 2.8 ROAS right now at this price point, right? Now the buyer-to-call ratio, that means 9% of front-end buyers end up booking a call, and then 3%, 3.76% of front-end buyers end up buying the high-ticket program. Okay, so this is when it comes to this $27 version. Now we focus on this $7 version, and we run that from 19th of October— 19th of September to October 5th. So we just, you know, we just turn it off. And we spent considerably more. We spent $29,000 on the $7 version. We got 481 new buyers at a total, you know, cost per buyer of $60.83. So that means that our CPA went down by around 30 to 40%, right? Right here. But here's what's interesting is that out of these 481 buyers, We only got 15 calls at a cost per call of $1,950, and we closed 7 new members at $4,180, right, for a $6,000 program. The AOV on this funnel is $10.44. The immediate liquidation, if we compare the cost per net new buyer versus the average order value, was of 17%. So this The ROAS on this funnel immediately, right, was 0.17, right? Not even 0.2. The buyer-to-call ratio was much, much smaller, 3.11%, and the buyer-to-member ratio was 1.46%. So what does this tell us if we compare '27 to '17 is that while our cost to acquire a customer was higher here, right? Right? Well, their cost to acquire customer, and by the way, this is a funnel that is not optimized. They haven't done a lot of split testing. The sales page looks kind of crappy. So I'm working with them to optimize this, and most importantly, we're using a tool called Convert, convert.com, convert.com, convert.com, that allows us to split test not only on the front end, but it allows us to see which of these pitches are generating higher average order value, but also higher calls, you know, and higher back and close rates, right? And we're also using Hi-Rez for this. But if we take a look at this, if we only go after cost per new buyer, of course the $7 version worked better. If we only go by volume, of course the $7 version worked better, right? 481 new buyers versus 133. The cost per buyer here is $94. The cost per buyer here is $60. Right? But if we take a look at the overall ROAS, like money in, money out, we are at almost 3x ROAS, 2.5, 2.8x ROAS here on the $27 version, including backend versus, I don't know, 1.3, 1.4, right? Because it's a $6,000 product. And I decided to launch the $27, the $14 version, right? Kind of in the middle, hoping that we'll get the best of both worlds. Because the founder of the company was really interested in getting these books in the hands of the most amount of people, which makes sense, right? But of course, I'm a direct response marketer, and I want to generate as much ROI as possible. So I told him, okay, why don't we do something in the middle? And this is an early test that we are running, because we've only spent $3,000. We're pushing more volume. Over this funnel. But here's the interesting part: over a $14 version, $14 front-end price point, we spent $3,200— $3,220, right? Some change. We got 44 new buyers. The cost per buyer went down from $90-something to $73. So it stays a little bit higher. It goes a little bit higher than the $7 version, not by much though, right? But here's the thing. We got 4 calls. Look at the cost per call, $805 per call. And we got 3 members out of those 4 calls, right? So we're getting the highest quality so far. Again, low scale, but we're getting the higher quality. We're getting the best cost per new member. This is a 6 to 7x ROAS with a $14 product. Okay, we didn't change anything else. We didn't change the ads, we didn't change the targeting, we didn't change Anything else? The average order value sits in the middle between this and this, right? Higher than the, the average order value here. The liquidation, it's better than our $7 product but lower than our $27 version. The buyer-to-call ratio is around the same than our $27 funnel, so 9%, 9.9%. But what really makes the difference is that the buyer-to-member ratio went from 3% to 6% with a $14 product. So I don't know how much you're playing with price points, but price points on the front end might make all the difference. That might be the key that you're looking for to turn an unprofitable funnel into a profitable one. Now, how do you do this, right? How do you split test this? Because front-end price point will change everything. It's not as simple as just doing a split test. Right? It's not as simple as just doing a split test, but because not only you want to check what the front-end conversion rate looks like, you want to check what the CPA looks like, you want to check what the upsell take rate, because most of you are running a more complete funnel like my client here, right? So you're running, you know, you're running upsells and downsells and all that, which it's the way you're supposed to run these low-ticket offers. Um, but the way you split test this is you, you set different campaigns and you set different funnels for each of these. These are different funnels with different tagging, and this is data that comes from GoHighLevel, right? Because we wanted to see net new buyers. Of course, we're running warm audiences, so Hyros will actually tell us that our funnels are doing better than they— that they are, and they are, right? But we wanted to see what was the net new impact on the business. And by changing just that front-end variable from $7 to $27 to $14, we changed the average order value, of course, but we most importantly changed these metrics that you do want to be able to track when you're selling something else on the back end, right? And the thing with price point, when you're selling something else on the back end, when you have a sales goal or when you have, you know, a recurring option, or you may— you might be selling something that is mid-ticket, not necessarily high-ticket on the backend, but mid-ticket and whatnot. The thing with this is that you need these funnels to back out. So you want to have that into consideration, right? So that's why we're taking a look at, okay, what happened at the beginning of the month? What's happening here with this funnel? I'm going to keep on tracking these leads that came in because maybe some more calls will come in from these leads that just came in last week, right? But all in all, right now the $27 version is working the best, and the $14 version is the one that's showing the most promise in terms of, uh, in terms of ROAS, right? Actual ROI on this campaign. So of course, as we scale, our numbers will get worse. That's completely fine. We want to start high so that as we scale, if our numbers drop down It's not a big deal and we're able to scale. And not only this is super promising for the business, but also this gives us a secondary way to attract people that might not be ready to invest $6,000 with them right now, might not be ready to sit on a 40-minute VSL that they have right now, right? They might not be ready to go through the whole process. They might not be wanting to talk to anyone. They just want to have a book, right? And that they can read on their own, and that's fine. And that's why we have these options as well. We're still running VSL. We're still— that's the biggest spender still. But this is showing us some other possibilities for us to attract customers, right? So I just want to share with you how important it is, front-end price point. So once your funnel is dialed in and you understand your metrics, this is important when you do this, right? How do you do this? You split test funnels. So you launch one funnel at 7, one funnel at 14, one funnel at 27. You tag contacts differently so you can see how they behave on the backend. That's important. But when you do this, well, you do this once you have the benchmarks on the first funnel. I wouldn't recommend that you do this if you're just launching your first funnel, if you're just collecting data, if you don't know if your frontend conversion rate is there, if your upsells are still developing, if you don't have the full funnel ready. I I wouldn't recommend you do this. Focus on developing that because that will give you a base for you to compare against once you have these other price points ready to go and coming in. Okay, so run some traffic, actually get some traffic, get some benchmarks in one funnel, and then you can start split testing price points. But if you have that data already, if you have that data, I think that, you know, it's a missed opportunity if you're not Playing with price point on the front end, so that's that's basically what I want to say. I'm excited about this because it's showing a lot of promise, if that makes sense.