What is a high ticket business model? A high ticket business model is one which uses high ticket items. These are higher than average cost items. For affiliate marketing, a high ticket item will pay much more than the average affiliate product.
A standard affiliate product might cost $100, whereas a high ticket product will sell for $1000 or above. High ticket affiliate products are good for affiliates because they offer a greater return. A high ticket affiliate product could be a physical product, such as this submarine:
But also high ticket products are things like training and mentorship courses for business owners and those venturing into entrepreneurialism. These are the most expensive products you’ll likely find to promote as an affiliate. They also offer the highest levels of commission.
High Ticket Business Model – Why Use One?
With affiliate marketing, affiliates promote and sell other people’s products online for a share of the profit. But most products only pay tiny commissions. Amazon, for example has some of the lowest levels of commissions for affiliates. See Amazon affiliate marketing commission. Amazon pays affiliates between 1% and 11% on products they successfully sell for the company.
Other products can pay as much as 100% commissions if they are attached to a product range. These tend to be digital product courses. Sales of higher level training courses and mentorship programs can allow companies to offer huge commissions on entry level products within a product range.
This is great for affiliates, especially new affiliates because it means they can make much larger commissions on the front end of their sales funnel. This means they can break even on their advertising early, or even make a profit, and make more profit later when a higher value product is sold to a previous referral.
High Ticket Business Model
A high ticket business model contains multiple products with which affiliates can benefit. For example, the SFM Digital Business system contains multiple products to help people build an income online from scratch. The first product in the range of a high ticket business model is priced as an “entry level” product which is affordable for more people. An entry level product might give you a sales funnel and training and coaching. As you go further into the high ticket sales funnel, you see products which offer higher value, e.g.
Highest level coaching and mentoring products offer the most value to those seeking to build an income from the internet.
Why Use A High Ticket Business Model?
If you’re planning on starting an online business, high ticket business models offer the best opportunity for fast business growth and scalability. With a low value product to promote, your opportunity for using paid marketing strategies, and still turning a profit are vastly reduced. Low value physical products pay the least in commissions to affiliate marketers. To promote these kinds of products is more difficult because it requires cheaper strategies which take more time and effort.
With a high ticket business model however, you can sell high value mentorship programs for $10,000 and above and make 30% commission on these kinds of sales. You can also use recurring income affiliate programs and high ticket products to help generate revenue. This means that scalable marketing strategies are much more within your reach, since you’ll more easily recoup advertising budget and make a profit on your sales.
Cheaper non scalable marketing strategies require months of hard work and of course you can’t scale your business as quickly using these methods. With paid marketing, you can increase your budget and reach more people – like turning a tap!
Summary
A high ticket business model can offer multiple high value products and services within a sales funnel. The best model for affiliates are those which offer the highest value and most desirable products but also pay the highest levels of commission.
These are high value digital business training and mentorship courses. Digital products pay far more than physical product to affiliate marketers, and although there are also high value physical products, the commission structure tends to be lower with a physical product.
With a product range, like the SFM Digital Business system, you have the added benefit of multiple products within a series of related products. Refer the “entry level” product and you can even benefit from a built in sales team, who close high ticket sales on your behalf.
Access a free video series here to learn more, or get started online with the Mentors All In program.
