You may be wondering…What is high ticket affiliate marketing and why do I need it to make a profit?? What is the difference between high ticket affiliate marketing and low ticket affiliate marketing, how does it work?
I hope to answer all of these questions in my blog today.
What is high ticket affiliate marketing exactly and how does it work?
Basically, affiliate marketing is a sales process where you as an affiliate connect buyers with a product that you are promoting. In order to get “traffic” people to the offer you start out with a capture page, squeeze page, landing page, or a lead magnet. High ticket affiliate marketing is where you would promote a product that is $997 and above. The percentage that you are paid as an affiliate can vary a great deal so make sure that you do your research on the program/software that you want to promote.
The funny thing about human nature…people will think that a high ticket affiliate product is more valuable and will do the work because they have “skin in the game”. A lower-priced product might offer the same information but many people will not do the work because they have not invested an uncomfortable amount of money. There is less on the line.
All of these are pretty much the same thing. They are different names for a type of web page that is used to capture people's email address by using an ethical bribe. What I mean by this is that you give them something in exchange for the email address. Many times it is a free webinar or a free PDF (lead magnet). The item should be free or very low cost so that it has what we call a “low barrier to entry”.
High ticket affiliate marketing is still a sales process but after the low-priced entry product, there may be one or more higher-priced products later in the sales process.
If you are considering high ticket affiliate marketing you will really need to research the product. I do a lot of reviews of affiliate products, tools, and software on my YouTube Channel.
One of the main questions you will want to ask is: Is this a “pay to play” program? What does this mean? Pay to play means that you have to purchase the same level that you want to receive commissions for. So, if you want to be paid on a $5,000 product you would need to purchase that $5000 product for yourself first otherwise whoever uses your link and buys will then pass you up and the commissions will go up to the next person who has purchased that level. This is not my favorite type of program because I think it preys on your fear of loss.
My favorite program is one that allows you to earn high ticket commissions without having purchased them yourself. You are rewarded for bringing people into the ecosystem. They tend to be more educational platforms. Click here to see my favorite high ticket program and learn how to start your own profitable online business.
What happens when someone lands on your sales page?
The person sees that free PDF or wants to attend this free webinar. And in order to do so, they will have to enter their email address. That gets them into your system. When they enter their email address two things happen.
1: In the background, their email address is sent on to your autoresponder (database software).
2: They are then forwarded to a “bridge page” where you explain the benefits of the product/software or they get sent directly to the item.
Then if a product is sold this is when you make your commission. If you are interested in learning more about affiliate marketing I have another blog article that explains what it is in great detail.
For the purpose of this article, I will say that the lead magnet is typically free or anything under $10.00. A low ticket item I would categorize as anywhere under $500. Mid-ticket is between $500 and $997. High-ticket is typically $997 and above. Then when you get into masterminds and island get-a-ways it can go up to $20, $30, $40 thousand dollars. I have not attended any masterminds or island get-a-ways so I will not be discussing those in this blog. 😀
Now some funnels or sales processes get very, very complicated.
Some will have order bumps, one-time offers (OTOs), and five, six different upsells, then down-sells. For the purpose of this blog, I will not go into the complicated funnel set up. You don't really need it to understand what high ticket affiliate marketing is. What I'm doing is just giving you a very basic overview of how a high ticket affiliate marketing funnel works.
Many people do not purchase on the first go-round so you may need to present the offer to them more than once. This is where it is so important to have an autoresponder. If someone does not purchase, then you follow up. In fact, it is advised that you follow up even if they do purchase.
With many autoresponders, you are able to customize your emails depending on if the customer purchased or not. This is a pretty advanced strategy. If you're just starting out with affiliate marketing right now, I wouldn't worry about that particularly, you can always add that in once you get going. Read more about the importance of autoresponders in this article.
The main thing is that you're collecting the email addresses so that you can follow up with emails. For myself, I don't typically purchase the first time I see something. So it might take me a little while of hearing more information about it or just kind of getting used to the idea of the product before I actually purchase. This is why having follow-up emails is so important. In your emails tell a little bit about yourself so that your subscribers can get to know like and trust you so that they're more likely to purchase.
One of my mentors Russell Brunson has written a book called DotCom Secrets. In this book, he describes the two main types of emails that people use in their autoresponder email series.
#1: The Soap Opera Sequence
The soap opera style emails are where you tell a story with your emails. The stories are open-ended similar to a soap opera. Because the stories are open-ended your subscribers are interested in opening the next email just so that they can find out what happens.
So in the first email, you may set the stage. The second email may be a high drama or a back story. Then the email with your epiphany and the final email in the series may be your call to action (CTA). There is no set length to the number of emails. It all depends on how many emails it takes to tell the story.
#2: The Daily Seinfeld Sequence
With the daily Seinfeld emails you are just talking about your daily life. These emails are about nothing. They are random episodes and entertaining stories. the thing to remember is that you are still trying to lead people back to whatever you are selling.
Many affiliate marketers will do what is called offer stacking. Once you're done with the follow-up on the first product then because you still have their information you can send them to a different offer. Maybe the new product will be a better match. So, you are stacking one offer on top of the other.
So what is different with high ticket affiliate marketing?
Many people when they first start out in affiliate marketing they are afraid to ask for the sale so they just go for lower-priced products/services. I will tell you that it takes the same amount of effort to sell a low priced product as it does a high priced product. If there is no higher-priced offer later in the sales process you will end out losing money, getting burned out, and quitting the affiliate marketing space.
Would you rather sell 100 units of a $30 product or 2 units of a $1500 product?
High ticket affiliate marketing is important because if you are purchasing traffic with ads, solo ads, Facebook ads, or Google ads, you're spending money to get these people to your capture page. Most times, you will lose money and or just barely break even at this step. This is where a lot of people get discouraged, especially if they don't have the higher-priced product/ service on the back end. It's very unlikely for you to make a profit here on this front end by just doing a low-cost offer.
Many people who are new to affiliate marketing will spend money getting traffic (people to their offers) but they don't have anything on the back end of the funnel or sales process to generate a profit. This is the point at which they get discouraged. If they had been set up properly with a high ticket offer on the back end that would be where all of the profit is made.
This is what McDonald's does.
McDonald's has made a fortune using this system. If everyone just bought the burger with no extras, McDonald's would break even and may even lose some money on each order. Their profit is made with the upselling of higher-priced items on the back end. ie… do you want to supersize that order? or would you like fries and a soft drink? It's all about the sales process, funnel, and value ladder.
Most people will lose money on the front. Most of the profit is made on the back end. There is a wide variety of funnels. You can find ones that are super complicated with all the different levels, upsells, down-sells, and many different priced products. Or, you can find ones that are fairly straightforward with a low-cost entry. Any sales funnel that you enter, expect a few upsells in the sales process. This is all part of the sales process.
If money is tight then look for a company that is not “pay-to-play” and learn how to promote effectively. If you want to learn how to set up and grow your business the right way join the Legendary Marketer 15-Day Business Builder Challenge Here.