High Ticket Versus Volume Niche Selection
As an online marketer, you have to formulate a strategy for your profits whenever you begin promoting other peopleís products ñ or even those of your own. There are two paths you can take.
One involves developing or promoting high ticket products with a big payoff. For example, you might promote or create a course that costs $1,997 and a 50% commission level.
The thinking is, youíd only have to sell one of those for a commission of almost $1,000 ñ whereas with a smaller priced product, youíd have to sell a lot more. If you promote a $7 product, at 50% commission, youíd have to convert over 285 buyers to make the same amount of money.
But donít mistake that glaring figure for proof that itís easier, because itís not. The amount of trust and value required to convert a consumer into a purchaser of a product costing almost $2,000 is much higher than it is to convince them of a no brainer $7 purchase.
As a seller, you might find it harder to get high ticket affiliates onboard, too. Their list might go for low or medium prices products, but fewer affiliates will be confident that someone on their list will buy a $2k item.
On the flip side, just about everybody would be able to find consumers on their list who could effortlessly fork over $7 without hesitation. So attracting joint venture partners is one reason to consider approving low to medium priced items.
If youíre an Amazon Associate, then youíll know that volume is a big deal when it comes to your commission rate. You start out in the 4% range, and Amazon tells you exactly how many more sales you need to reach the next level of commissions ñ up to and beyond 7%.
If you have a blog that mainly promotes big ticket items, such as treadmills, donít forget to supplement that with no brainer low cost promos, too. Those would be water bottles, treadmill track lubricant, and more.
If Amazon says you have to sell 75 more items to reach the next level of commission, you donít want to be plagued with having to convert 75 treadmill buyers at a cost of $1,500.
Itís much easier to sell 75 treadmill mats or other accessories and see your commission rise with the volume of low priced items sold. Thereís nothing wrong with mixing both high and low cost promotions, but just make sure youíre not shooting yourself in the foot by ignoring accessories and products people donít even have to think twice about buying.