Why Would You Spend $100 To Make A Sale Of $29.95?

high ticket commissions
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We're not about to teach you or your grandmother to suck eggs – as you're likely aware of this stuff already, so, we'll approach it from a different angle.

We've just been working out our numbers this morning – like all happy marketers do 🙂

And although we use a spreadsheet, you don't need to have any Accounting skills like Fiona – even though she's forgotten how to do sums in her head so needs a calculator!

Now that's settled, we've got a question for you:

high itcket



Maybe, you're thinking: “Greg & Fiona, I didn't come down in the last shower of rain!”

Well, we didn't either BUT we'd happily spend $100.00 to make a sale of $29.95!

And . . . we'll do it day in day out, till the cows come home!

And there's a very good reason why.

Because we know our AVERAGE LIFETIME CUSTOMER VALUE. Which is an important metric in any online business.

What is average lifetime customer value?

Roughly speaking, it's the expected income a customer will generate for you in their lifetime.

The lifetime value calculation can get complex (see this KISSmetrics example for Starbucks), but we simply take our actual commission income over the past three months, and divide it by the number of customers who generated that income for us. Which is a bit of a crude way to calculate it, but it's preferable to have a benchmark figure, than have no idea at all.

And of course, you have to have a minimum of three months data to work out an average, so it's statistically significant. Therefore, it's not something you can calculate when you're just starting out.

The point is, because we promote what's known as a high ticket offer or a top tier offer, it makes complete and utter sense for us to pay $100.00 in advertising to make a $29.95 application sale. Because we KNOW from our rough calculation, that ON AVERAGE, each customer is worth $1,633.59 to us over their lifetime.

Where else would you get that kind of return on your money in a 45-60 day timeframe?

Hopefully, you can understand our logic now?

Let's Talk A Bit More About High Ticket

Let’s say you plan to earn a million dollars – which looks more in numbers doesn't it: $1,000,000.00

Which is better:

  • having to sell 100,000 items at $10, or
  • selling 1,000 items at $1,000, or
  • 250 items at $4,000?

The last option involves much less effort on your part and you obviously need way fewer customers . . . which means a lot less advertising effort too.

The fact is, you do the same marketing work for MORE PROFIT.

The sales process for the higher ticket item might be a little more detailed and there maybe a slightly different approach required, but that can be easily incorporated into your marketing messages etc (which we can help you out with).

You make more money from the same work when you sell higher ticket products. Simples.

This is why being a member/affiliate/student of Six Figure Mentors and Digital Experts Academy MAKES SO MUCH SENSE, because they’ve already done all the hard work for you, AND you can start marketing today!

What's more – you don't have to do any of the selling as Six Figure Mentors do all that for YOU so you can literally focus on finding targeted prospective customers!

So you may be asking: “What’s the purpose of a low cost product like the $29.95 application offer?”

Well, it’s a lead generator for our high ticket items.

Six Figure Mentors choose to sell an application pack because it allows them to turn away the wrong type customer for their products so we don't waste their time or our time. PLUS it allows you to work out if Six Figure Mentors is the right fit for you. You're in the right place to make an INFORMED DECISION whether their education, training and systems is a GOOD MATCH for you, allowing you to grow and generate online profits so you can:

>>> be location independent,

>>> set your own hours, and

>>> be in total control of your life

So the only question remaining is: “How Do You Develop High Ticket Products?”

The KEY is simply to add extra additional value.

The REAL SECRET is to always increase the value you provide until you’re giving way more in value than what you’re asking for in price.

Another key is to change who you’re marketing to. Pick markets where your customers have money . . .  seek to sell to the serious buyers instead of those barely getting by.

An example of this in our business is, we stopped marketing to the usual Internet Marketing crowd. You know the ones who connect on IM forums bitching and moaning about the next IM launch, the new secret Magic loophole system or next big Killer product.

Instead we started focusing on targeting serious entrepreneurs like you. People who read similar books as us, who follow REAL business leaders like Robert Kiyosaki, Richard Branson, Napoleon Hill, Tony Robbins, Stuart Ross and Jay Kubassek etc.

We found targeting people this way made a lot more sense than targeting the ‘Get Rich Quick’ crowd you typically see in the Internet Marketing industry. (Because there is NO big ‘Get Money' red button lurking on the internet anywhere!)

Proof There's High Ticket People Out There

When we first started out it was difficult to grasp the fact there are people in the world who are happily willing to pay top dollar for first class training and experiences, as we were pretty broke after we got laid off. So it was hard to wrap our minds around the fact that there were a lot of niches where people had money . . . where they bought $5,000 golf clubs and attended $20,000 marketing conferences and workshops.

A great way to get confident about knowing there's people out there who are actually prepared to spend a bit of money, is to pick up a couple of magazines such as MONEY Magazine, SUCCESS Magazine, and ENTREPRENEUR Magazine.

Yet, that’s one of the biggest changes you can make . . . a change in your thinking, in your mind, in your beliefs.

In most businesses, serious people are willing to spend money to get what they want. And these are some of the BEST CUSTOMERS you can ever have . . . when you focus on them and deliver exactly what they’re looking for, the profits naturally follow.

It’s for this very reason Six Figure Mentors deliver valuable training to people who are willing to invest in education.

Oh and by the way, did you know as a SFM Business System Student you can qualify to get paid $1000, $2000, $4000 and $8000 commissions PER sale!!

How do you like that for an easy quick way to get high ticket income into your earnings model!!

And be over the moon to pay $100.00 in advertising to make a $29.95 sale?

what is high ticket


Finally, watch and hear Stuart explain:

How To Change The Way You Make Money… Forever 


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Facebook Comments:

  1. Jan and Alicia 8 years ago

    Great post guys. It really put’s investing in marketing and your potential ROI into perspective. Thanks!

  2. Author
    Greg Fiona Scott 8 years ago

    Thanks you two – it really does pay to know your sums and go for an Adventure in Numberland 🙂

  3. Barbara Okpala 8 years ago

    Oh man, I am so blessed to be part of the digital experts academy and six figure mentors. Thanks for breaking it down Greg and Fiona Scott! Awesome awesome founders call yesterday!

  4. Author
    Greg Fiona Scott 8 years ago

    it’s a pleasure Barbara – and, yup, we feel the same way 🙂

  5. Valerie Cuell 8 years ago

    A really informative post that makes it really easy to understand why selling ‘high ticket’ items is so powerful.
    I certainly wonder why more people in the internet marketing world haven’t grasped this!

  6. Author
    Greg Fiona Scott 8 years ago

    Yeah, we’re with you on that one Valerie. It’s mainly that people don’t know what they don’t know we suspect – so we’re on a mission to inform and educate 🙂

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