Today I want to discuss four successful online business models. I will also explain why high ticket is better.
As I have explained previously, affiliate marketing is where you put a product in front of people, and you are paid for the referral or for the sale. You do not need to come up with your own product. In many ways, this is very similar to a franchise. A franchise is a pre-built system. For example McDonald's, Subway, Anytime Fitness… It is done for you (DFY).
What I mean by this is that the marketing plan has already been put together. The business plan has been developed. You are following along with someone else’s proven track to success. You are trained on how to run the business. It is a proven business and a proven business model. Affiliate marketing is very similar to this.
Usually, the product owner will already have a sales funnel established. You are not having to create anything. You do not need to handle customer support, refund requests or returns. You are following along someone else’s track. You are just putting the offer in front of people who may be interested and then you are paid either for the referral or for the sale.
Digital Products is where either you or others have created a video/audio/written material. These are typically education products of some kind. Many digital products are considered e-learning which I have heard is going to be a 325 billion dollar industry by 2025. There is a huge market for this. As technology improves more and more people are participating in online classes or e-learning.
Coaching and consulting is a business where there is coaching either one on one or with a group. The great thing about this business model is that there is no overhead. It is possible to create a lot of money because it is high leverage. People are paying you for your expertise.
What you say carries a lot of weight because people are paying you for your opinion. You can create an increase in your income by doing group coaching. Instead of being one-on-one you are coaching/consulting one too many.
Events and Masterminds are usually very high ticket with very high leverage. In affiliate marketing, high ticket means that the product is over $1000. With events and masterminds, the products can be as much as 5000, 10,000, 25,000 dollars or more.
Events take a lot of initial outlay of cash in order to get the venue, hotel, speakers, etc.. but the payoff is much higher. You are selling to people who are already your customers. They have paid to get to the event, plane tickets, hotel rooms, food etc… It is easier to sell to someone who is already a customer.
I will relate this to affiliate marketing just because that is where my experience is. I do not have experience with creating my own products, coaching or events.
If you are an affiliate marketer and you are selling a $7 product, your commission may be around $3.50 (50% commission). If you want your affiliate business to replace your income from your job, do the math. You would need to sell over 285 units at $3.50 to make $1000. As you can see you will need to sell a ton of that product in order to create sufficient income to leave your 9–5 job.
On the other hand, if you sell a $1000 product and your commission is $500 (50%), then it may only 2 sales to make $1000. What could you do with $1000 dollars? It’s much easier to make 2 sales than it is to make 285 sales.
It is ok, in fact in affiliate marketing it is recommended to have a low ticket as an entry-level offer but there needs to be a high ticket on the back end in order for it to be lucrative. It takes the same amount of work to sell a high ticket product as it does to sell a low ticket product. The difference is in the payout. If you are going to work why not get paid more for your time?
If you would like to learn how to build a high-ticket online business check out this 15-day business builder challenge. My mentor Dave Sharpe will teach you how to set up your business the right way.
This is an education platform that has a low dollar entry product (15-day Business Builder Challenge which is $7.00) In order to be an affiliate you really need to complete the challenge and apply. Once you are accepted you then have the ability to earn high ticket commissions. This program is not a get rich quick program. You need to learn and apply what you learn.
If this is something you are interested in click the link below.15-Day Business Builder