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Unknown
For the longest time, my wife and I have only sold low ticket digital products online because of. Well, for many reasons. First of all, we didn't think people could afford our products, but it was really our scarcity mindset around money. Then we introduced high ticket products, and along the way we kind of made a mess. We created so many products, we didn't know how to connect them together, and we spent years trying to put them all together in a way that was easy to manage.
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Unknown
So the endless battle, low ticket versus high ticket, which one is best? Let's discuss.
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Unknown
Hi friend. This is Iacopo and Alessia.
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Unknown
And
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Unknown
spoiler alert
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Unknown
low ticket. High ticket. None of them is best. There is something else that I'm going to share at the end of it. That to me is the winner. With between the two. And I'll see you in a bit about this.
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Unknown
Let's talk about low ticket products.
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Unknown
First of all, let me tell you that
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Unknown
you can make a fortune with just low ticket products, okay? That's what we've been doing for years with the brand latest answer tapes. At the end of the day, that was a hobby niche. There wasn't much pain involved in there, so we couldn't quite charge more.
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Unknown
And also unless you had never really wanted to do 1 to 1 to to have a higher level of delivery just because she didn't want to do it. So it's good when you put boundaries on your business, so you know how to judge why you have to do
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Unknown
We basically created lots of mini products, low ticket products.
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Unknown
It worked fantastically. But I want you to understand one crucial thing
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Unknown
we've had a huge YouTube channel on the back of everything.
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Unknown
So since we started having 100,000 subscribers on YouTube, we sent our people on our website every time we had a new product and the response was immediate and on volume. So this is what the big channel is also do.
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Unknown
If you see big channels selling maybe just a $27 product, a $97 product, it's because as soon as they create a new video, they release a new video where as soon as they send an email to the email list, hundreds of thousands of people will see it. And even if 1% of people buy it, they make a fortune.
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Unknown
The problem with low ticket only product is that
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Unknown
you would have a problem that we've had for our membership as well. Three, four years in, we had a goal of building our membership to a thousand members,
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Unknown
and we came very close to that during Covid.
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Unknown
But guess what? There was a Covid effect, right? What we didn't know about that is that, well, first of all, a 1000 paying member is an incredibly difficult goal
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Unknown
to achieve. But when you grow your membership or your course member based to above founding member, so the members they have, maybe if they've been pioneers, they followed you since the beginning.
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Unknown
They immediately bought when you released the offer after these people have already are already in your group, one of the other people are not going to be so resilient. So you're going to see something that we started dreading after a few years. It's called churn rate. Churn rate, basically the rate at which your members leave every month. And this rate, it's not linear, it's almost exponential, at least in our experience.
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Unknown
At the beginning you have 60, 80 people. They're all pioneers. They love you. They stayed there for months and months and months. And you think, this is incredible. Every month I get new members and they stay for months. How are we going to be rich in six months?
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Unknown
But then the more people they get in, the more people every month decide to leave. For whatever reason, we introduce so many measures to try and keep our members in. We gamified the membership, we added the community, we added the live sessions, we added everything we could possibly think of. We reduce the churn rate to a limit, but we never managed to reduce it to a zero.
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Unknown
That means that if you want a thousand members a month paying you every month, you're going to have, I don't know, a hundred people leaving every month, which means that just to stay in equilibrium, you need to be able to produce 100 plus new members every single month. This is the big problem with low ticket. If you're relying on one product, even if it's a recurring revenue like a membership,
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Unknown
You need to be able to create this volume power of new clients, new customers coming in every single month. And if you don't have that, if you don't have a social media that can sustain it, it's gonna drain out your soul. I know because we've been there. We tried to grow a niche that wasn't as big, like ballet for adults is not a huge niche.
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Unknown
I've seen different niches, maybe more in the general fitness, maybe more in the hobby fitness. But our niche never really worked that well because of so many other reasons that I'm not going to explain right now. But I want you to have a perspective that if you only go low ticket, you have to have to have a huge social media channel to feed your product with new members every single month.
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Unknown
Now let's move into I think it.
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Unknown
What I consider a high ticket is anything above 2 or $3000.
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Unknown
The great thing about high ticket is that you don't need as many clients to make a substantial amount of money.
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Unknown
the counter side of that is that you need to provide a lot of value in exchange of that amount, because otherwise you're just trying to scam people.
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Unknown
But on the other hand, you can give a great service because somebody paid you lots of money to fix a problem that they have, and you can maybe be more hands on, do live coaching 1 to 1, or group coaching.
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Unknown
The problem with high ticket is that yes, you will need few people to, let's say, arrive to ten K a month, $10,000 a month.
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Unknown
But the gap that there is from somebody discovering you on social media and jumping on to a three, 4 or 5 K offer or more, it's huge compared to somebody that just found you and is going to buy a $27 product,
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Unknown
And I
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Unknown
So the buying cycle for high ticket might be longer. People might need way more time to get to know you properly before they decide to invest with you.
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Unknown
Here's when it starts to become a bit complex. This is why so many businesses become this big monsters that eat you alive.
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Unknown
Maybe you start with low ticket and you add the AI ticket to it. Or maybe you start with the high ticket only and you want to add the low ticket products to it.
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Unknown
The more different products you add to your ecosystem, the more difficult it becomes because your marketing gets diluted. Your message gets diluted, and you don't know what to promote all the time. Like, should I promote my higher ticket? Should I promote my ticket? Should I promote my ticket? Or I don't know what to do? It becomes complex. You get overwhelmed and things crumble.
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Unknown
I'm in a phase of my life where I have struggled a lot in all of my careers that I've had so far, and I've been working like crazy almost with no breaks for years because I just, I had the belief that
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Unknown
you can earn only if you work hard.
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Unknown
And now I'm trying to simplify everything I do. So everything I want to share is to help you simplify as well.
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Unknown
I don't care if you are at the beginning or already advanced. There's always a way to put boundaries in your life and on your business to be designed around your life and what I discovered recently is something called Proximity Offers, which is for me, a beautiful way to only have one single offer
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Unknown
but in different level of fulfillment.
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Unknown
This way you can create a free and made low ticket, high ticket offers just by having one offer.
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Unknown
And this makes everything so simple
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Unknown
that you wouldn't want to go back after you've done it.
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Unknown
Here's what we done.
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Unknown
We've put together a year a long path for our ideal client. Starting from where they at two. Where we want them to be.
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Unknown
Let's say build an online business that generates multiples of six figure a year, starting from somebody that is just growing on social media, that has a few offers that not quite working.
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Unknown
So that's a starting point in this. The end point.
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Unknown
If I wanted to sell that program as a 12 month program for, let's say, ten K, it would be really, really hard for me to do so because people usually lose steam. And even though it's going to take them more than a year, frankly speaking, it like weight loss you is not going to take you a week to lose a lot of weight.
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Unknown
You're going to take years for that. But if I sell it like that, nobody will sign up. So what do we do?
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Unknown
What you can create is a 12 month pass, just to have all of the biggest milestones for your clients already set in stone. It's your curriculum, by the way. It's what you would coach people through when they hire you. But your offer, let's say your high ticket offer could be just a 16 weeks, which is a slice of their longer 12 month pass, where you take people from where they are and make them achieve maybe 1 or 2 bigger milestones.
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Unknown
They have way more after they've achieved those two, but you only make them commit to maybe, I don't know, 16 weeks for a specific price tag.
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Unknown
After they've gone through the 16 weeks, they can decide whether to continue because they have more problems to fix and continue achieving more milestones because you've designed a longer path,
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Unknown
Or they can go below one tier.
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Unknown
This is the beauty of proximity offers. You can have the exactly the same offer, but just change how people are close to you. That's why it's called proximity. You are the focus. You are the guide. So the closer people can work with you, the more expensive everything is working. 1 to 1 is your highest good offer, and you can come up with, 16 weeks high ticket offer as a 1 to 1.
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Unknown
But nothing stops you to have exactly the same offer but in a group setting. So you would do exactly the same thing. But instead of having 1 to 1 calls, you're going to have group calls. Same curriculum, just a different proximity. You can go even lower and remove the calls altogether, and only have a community group where you can chat and reply, to questions on a community forums like school, like Kajabi and stuff like that.
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Unknown
You can take slices of the curriculum and give them out as workshops. They become low ticket offers. But what you do is essentially the same. One thing is just the pricing tiers that you put in place.
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Unknown
What we like to do is to first create a high ticket offer to test the process and the curriculum 1 to 1 with people. Then once you dial it in, you see that people gain results and you are in flow.
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Unknown
every time you jump on a coaching call, you feel energized. You know that this is working for your life as well.
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Unknown
You're going to enjoy doing this. Once you've streamline the process for 1 to 1, then you can introduce a group level of proximity instead of the 1 to 1.
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Unknown
So you know that you just might you might just need a new community around it, maybe a VA to manage the interactions. And that's it. You're not adding complexity too much of your business, but you have a lower tier of pricing.
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Unknown
And if you want to promote your products, you just take a slice of your longer curriculum and give it out as a low ticket workshop every now and then to get people to know you, to get people to invest in you, and then ascend and get closer to you eventually. It's kind of like a value ladder, but as in a smarter way.
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Unknown
If you want.
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Unknown
Now every business is different, so I don't know if you can do this. Like, we couldn't do this with Lady Dancer tapes because of the boundaries that we put on a business. Unless you didn't want to do 1 to 1 coaching, she didn't even want to do group coaching because because of the nature of the niche.
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Unknown
So you've got to be aware that if you want to charge for high prices, you need to come up with a way of delivering high level of service. And if your niche or your or the way you want to run your business is not there, well, maybe that's a problem on your model
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Unknown
and maybe that's the moment you need to realize the need to change things.
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Unknown
Because I've known people that have incredibly great products, maybe they're only low ticket and they're struggling to scale, but they really believe in it like we did.
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Unknown
But because of the nature of the model, because of the nature of this process is never going to scale because of it. But if you find a way to add a high ticket offer that you can
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Unknown
have tiered pricing around it,
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Unknown
that is the best offer we found that allows you to have joy, joyful life, because it's easy to manage a great business model because you're basically doing one thing,
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Unknown
giving the right amount of service to the right amount of people that
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Unknown
paid you the right amount of money.
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Unknown
And I wish I knew this years ago.
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Unknown
And I
