In this guide to high ticket sales, we’ll explain the high ticket sales that exist and why they’re distinct. In the next section, we’ll explain how charging more is more beneficial for your business and your customers.
We’ll also give you a 7-step guide for mastering high ticket sales.
What are high ticket sales?
High ticket sales are the process of selling high-ticket products or services. Unlike mass-market sales, which are focused on the lowest price and sales, customers searching for the lowest price and high ticket sales attract an upscale buyer, no matter the sector.
Are you building or selling?
There are two ways to earn money from high ticket sales:
- Build and sell. You’re creating your premium product or service and then selling it.
- Selling only: if you’re good at selling. Selling another’s premium product or service may be the best fit. You’ll earn a commission for each sale, while another person will take care of the construction, delivery, and customer support.
How Much can you make from high ticket sales?
Offering your products or services
Mighty is the website that has the largest number of communities with a value of $1 million. We have incredible data about high ticket sales for memberships and courses.
Numerous communities and courses make high ticket sales earn anywhere from $20,000 to $100,000 per month.
Here are a few examples of using a few of the numbers we’ve looked at:
- A program for medical professionals sold 40 memberships for $7,000, which equals $280,000.
- A community designed to help financial advisors succeed. They offer a membership fee of $1,000 per month. The current membership is 30 = $30,000/mo
- A spiritual group with various levels of membership, with the most expensive being $1,000, which is $600,000
- An online health entrepreneur community has 55 members. An annual membership of $1,800, which is $99,000.
- Author and blogger, a podcaster, has sold a $997 course to 5,000 people, or nearly $5 million!
These are real figures from real classes and members. They reveal the huge potential for selling products with high value that you create and sell.
Also read: Top 14 Referral Marketing Software to Increase Your Sales
Selling for other people
Salespeople who are making high-end sales of luxury goods or other products made by others. The amount you make is usually contingent on the commission structure and the value of the product that you sell. Although there are lots of methods to arrange commissions and many variables to consider but here are a few common examples:
Commission only.
Here are a few rough examples of products:
- Premium products and services are available online for 10%-30% of the sale price
- Luxury real estate 3.5-5 percent of the sale price
- Luxury cars earn 15 to 35 percent of the profit
- B2B and Enterprise Software 5-12% of the sale price
Base Salary + Commission
Some salespeople make an initial salary, and then earn commissions in addition. This is a typical practice in the luxury retail industry, which has an average of $40K to $80K, plus 3-10 percent commission.
Can high ticket sales be a side hustle and business?
High ticket sales can be an excellent side business as well. However, it’s more beneficial to sell your products or services. This will give you greater control over how you earn and when you work. Selling other people’s goods requires a significant amount of time to build clients and to nurture.
Here’s an illustration of how a costly side hustle might work:
- An HR professional begins a coaching program on the side to help young people in management on how to get to the top of the line. It is priced at $1,800 for six weeks of coaching classes.
- A seasoned boat salesperson creates an online course for selling boats. It helps new salespeople increase their sales by a third. The cost is $7000 for the pre-recorded class that includes mastermind sessions every month.
What makes high ticket products succeed?
What can our data reveal about high-ticket products? What we’ve observed:
- Certain (not all) high ticket sales on Mighty can be for digital products that are targeted to businesses rather than individuals. If you move up vertically, you can charge more.
- A lot of the top-ticket sales for people are items and services that are geared towards individual excellence, for instance, health, financial entrepreneurship, spirituality. These are the areas where consumers are willing to pay more for the highest quality.
- A lot of high-end physical items are sold because of exclusivity, quality.
- A small customer base for an expensive product could produce substantial revenues.
Many high ticket sales of Mighty are for specific knowledge (as opposed to general). This is the reason you must get your ideal member perfect!
Digital products and high ticket sales
With the growth of the creator economy, we’ve seen increasingly high ticket sales going online. The internet has given us an amazing opportunity to develop and sell digital products with amazing margins.
Many creators have realized that trying to get the lowest price in price is not an effective strategy.
Just like Tiffany’s diamonds, the cost of paying more for digital products can indicate higher quality as well.
It can also lead to an obligation and commitment from the person who is paying for the transformation and experience. Additionally, for the digital artists, the high ticket sales translate to higher profits and the money to carry out the tasks they were asked to perform.
How to master high ticket sales
Take a look at this. A majority of people will purchase an item that is expensive once in their lives.
It could have to be…
- The dream vacation they’ve been saving for.
- A fairy-tale engagement ring or an engagement wedding.
- A coaching program that will transform your life
- The dream camera to capture their memories.
- An in-ground pool that will make your backyard into a paradise.
The issue isn’t: is it possible to sell an expensive item? It’s, “Can I find the right high-ticket offer for my ideal customer, member, client, etc.?”
This is the secret trick to high ticket sales. There aren’t any high-pressure sales tactics used to convince people to purchase things they cannot pay for. Make sure you make the perfect offer to the right person, and you’ll create magic. Combine it with a community flywheel and it’ll sell by itself.
1. Understand your Client
Every product has a perfect customer or user. But it’s even more essential for the most expensive sales. This is the base of everything else.
It is obvious that you need a buyer who is financially able to buy what your offering is worth, but requires a buyer who understands the value and is willing to spend money to acquire it.
The most effective method to accomplish this (that so many entrepreneurs miss) is to approach them.
You’ll learn…
- What their issues are (not the things you would think they are).
- If they’re willing to invest the amount.
- How do you position your offer?
- And what would success be for them?
2. Give the high-ticket psychology right
The first part of this article began by discussing the reasons consumers buy high-ticket products. These reasons are extremely distinct from the race-to-the-bottom of discount retailing. In the final analysis, these shoppers are seeking more than a bargain.
- Customers who buy Bentleys or Rolexes have to pay for status.
- The people who take advantage of expensive programs may be paying for an upgrade they cannot get elsewhere.
- The reason people join a premium mastermind may be interested in exclusivity.
- It is important to know the reason people spend on your high-ticket product.
3. Qualify leads
In the end, you must ensure that you’re selling your product to the correct person. It could be someone who needs the change that you’re selling and can be able to afford the cost.
If you’re selling a social media marketing course, it’s possible to market to companies that already have products and revenues.
Lead qualification for high ticket sales isn’t just about selling the product; it’s about ensuring that your members are in the proper conditions for success. Since the successful members will turn into your top performers, they’ll be telling the world about your company.
Also read: 10 Sales Promotion Ideas to Boost Your Sales
4. Make the best offer
The fact that you’ve done the research does not mean that your high-ticket sale has been made. It is still necessary to create the right offer.
Yes, if at any point you can, you must develop an offer to fit your Ideal Member. The offer itself must be specific to the level of growth your customer or member is looking for.
It’s easier to design an offer that is suitable rather than trying to convince your clients to purchase an offer that isn’t.
6. Exceed expectations
Naturally that when you offer the product or service, it’s crucial to ensure you surpass your expectations, too. The ability to generate the “wow” factor is what is the basis of the word-of-mouth and fuels the growth of members.
As a member, I want to imagine “the best year ever.” What will ensure that your ideal customer has the most successful year of their lives with the results and change that they’ve never seen before?
This is what you need to build. Whatever it is, it’s the perfect fit for high-end sales.
7. Select the right business model
It’s so easy, yet is it true? The art of mastering high ticket sales isn’t just about crafting the perfect copy or sales letter. It’s not about establishing false deadlines to create “urgency” or pressuring your prospects to make a purchase. This is the funnel method for high ticket sales, and it’s getting less and less efficient.
The key to mastering the art of selling high-value items is to choose the most appropriate business model at the start.
How to make digital high ticket sales
If you’ve taken care of everything in the previous steps, how do you organize a high-value enterprise?
There are several alternatives to sell your products, but let’s look at two well-known designs for selling expensive items and the advantages and disadvantages of each
Funnel strategy
The funnel is the most popular sales strategy for selling digital and physical products for many years. Its focus is on guiding customers through four phases, including awareness, consideration, conversion, and lastly loyalty (which results in repeat customers and word-of-mouth marketing).
Community flywheel
A community flywheel is a new business model that is focused on getting your supermembers to join your community, and letting the discussions and members’ engagement create brand awareness and increase sales. It was McKinsey who suggested this flywheel model as being the most effective method of building an image in the years to come.
It all boils down to this. Your aim should be to always convert your followers, subscribers, followers, or any other name you call them, into members.
Conclusion
This article should get you well-prepared for your next high ticket sales. If you can get the basics right, it will be an easy task. The outcome is a 6-figure launch and well-balanced balance sheets. But keep in mind that no amount of advertising or funnels can fix an offer to the wrong person.
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