How Do You Make Money Selling Low Ticket Products?
When I got started online I thought…I'm going to put out a quick little report on something interesting. I didn't know what it was going to be at the time and my thought was “who wouldn't buy it for $7”? I literally thought, it's cheap and it's good value, everybody will just drop 7 bucks on this. I honestly believed that when I put it up for the very first time that I was going to get at least a million sales maybe 2 million because I knew I had a niche with a lot of people in and my attitude was really “who wouldn't buy this”?
The Real Question I Should Have Been Asking Was Who WOULD Buy This?
Here's the bottom line, you can't get rich off of low ticket products. I like to watch infomercials. I watch the Beachbody stuff. Have you ever seen the P90x commercials?
I have but I should let you know that I launched one of the first infomercials in 1985 with a guy who is now the king of the infomercial business, a guy named Jim Caldwell who's done over a hundred infomercials.
Here's what was interesting to me is I watched this P90x things and they're like it's $30 and you get a DVD and you get a band to workout with and you get all of this stuff.
Being A Marketer, I HAD To See What They Were Doing
I called them up, get on the phone with them and the program was $30 or $50 and I still couldn't figure out how they made money. As soon as I committed to that they said, "Oh, by the way, you can get the pull up bar. Why don't you grab that? I'm like, "Yeah, sure. How much is it?" It was another 20 bucks. I'm like, "Perfect." Then they said that I could get on this supplement thing. They’ll send you the pre-workout, the post-workout. It really hit me that Beachbody and P90X are NOT a company that sells fitness and workout DVD's and training programs.
I Always Thought They Were A Workout Company
They're not. They're a supplement company that gets you into the funnel with the workout stuff.
You have to look at your info product business in the same way. I mean it's cheaper to launch a product at $17, sell a couple of hundred units, maybe pick up some affiliates that we give a 100% commissions to because it's cheaper for me to do that than to run Adwords or Facebook Ads
Whoa! I heard Adwords and Facebook Ads were cheap!
They are IF you can get it to convert. We're lucky if we can get $2, $3 a click and that's before they convert. I used to think, "I don't want to give away a 100% commissions." On any product under $47, we try to give away a 100% commissions. That's because when you think about what you would have to spend and convert at with paid traffic versus somebody else sending you traffic you always come out ahead giving away the commissions.
You Are Getting A Confirmed Buyer At Zero Cost
At zero cost the whole point of it is the same as Beachbody where I want them to see my products because I know that mine are different than anybody else's in my niche. So we know they will buy more products from us. We also offer them a free coaching call.
This Is Where It Becomes Interesting
"Why would you do that?" None of this makes sense but the truth is that that's where you build that Know, Like and Trust factor that you always hear about. The way you build the know, like and trust factor is to get on the phone with them, get on Skype with them, help them do something, give them a coaching call.
We use a service called timetrade.com and it hooks up with our Google calendar so we don't manage any scheduling. What we do is go into TimeTrade and we say, "We will only do these calls on Wednesday at 10 AM, 11 AM, and 12 AM. Then people go to that and they see what we have available and then when they sign up it takes it off of that availability but then it also puts it into our Google calendar.
Your Automated Online Assistant That Books Appointments For You
Basically it becomes your automated online assistant that books appointments for you.
The cool thing about it is it works in reverse, too. If I go into my calendar and put something on there not knowing when we have availability for calls scheduled it automatically takes that off the schedule if nobody's got it. Either somebody makes an appointment and it shows up on my Google calendar or I put something on my Google calendar and it makes it unavailable for someone to schedule. TimeTrade is a fantastic service for managing this kind of thing.
You Can't Price Your Products With Your Wallet
The truth is you can't price with your own wallet and your own perceived value of your information. For me, I mean a lot of the stuff that I teach and know is simple to ME, but that's how EVERY expert is. No matter what niche you're in.
If you're the best chess player in the world, if you're the best golfer in the world, if you're the best voice over guy in the world...
You Take YOUR Knowledge For Granted
You take what you know for granted and so you devalue what your knowledge is. I think one of the things that we work most often with our coaching students is getting them to the point of realizing the true value of the information they have because it's so second nature to them that they think everybody sees it the way that they do.
Know Who Your Market And Customers Are
I also see that problem with info products where people forget that their biggest market segment is not people at their level. They don't want to know the cool things you know in your niche, they want to know the newbie and beginner stuff. If you keep your products at that level then you're way more appealing to a mass market.
Customer Results = More Sales
I always become super frustrated with people that purport to give you a system for doing something which is really just a sales pitch for the next, higher priced product. My thought was always, "If you give me something, that is step 1 through step 10 with every step filled in and it actually works and I can use it then I'll be willing to buy your next product. But if you give me step 1 through 10 but you leave out steps 2 and 7 because I have to pay for those then I'm not going to trust anything you do in the future."
Our attitude is if you do step 1 through 10 and you get the result that I promised you now I know where you're at and I know exactly what you need next. For example, we have Income Machine which teaches the basics of setting up an internet marketing system. When they get done with that we know for a fact what they have, what they know, where they've been and the way they have set everything up because it is step by step with nothing left out.
We Know Exactly Where They Are And What They Need
Since we build true step by step training it is easy for us to sell them the next thing they need. Hey, you know that you've got this, you know what you should do is x, y, z and in any niche if you look at it that way you always have another thing to sell them. I mean when you get finished with something you're never saying, "Okay, cool. You know, I've got this set up now I'm done." That's never the case, it's like, "What do I do next?" And they now trust you.
I used to do big seminars and I used to get people to buy my material. I would get frustrated because they buy my material and they wouldn't anything with it. My next step was to go the smaller boot camp where I'd have up to 6 people. I did that for a number of years and got frustrated because nobody did anything there either even though they're paying a lot of money.
Then I moved to what I call The Fred Personal Boot Camp to get people who are willing to spend 3 days with me one-on-one and I give them an intense training. I've seen an increase in the number of people who actually do something with the training and take action. It went from very few to a little bit more to now with the one-on-one.
50/50 Profit Split Model
I do not take on any clients in which I don't have a vested stake in their business. The only clients I now take on are people in which that person, who is the subject matter expert and I split the profits 50-50.
You take a lot of this marketing knowledge that we all take for granted whether it's setting up websites or knowing what pieces need to get done and then having somebody else do them but then taking it to mass market niches.
A great example is what Fred and Bill DeWees are doing in the voice over niche.
It's something that Bill could've probably never coordinated or even thought about and there's a ton of people. I work with a golf pro that's the same type of thing where he's tired of teaching golf lessons at the course. It takes him too long and he doesn't have any idea of what to do as far as online marketing goes. It's so obvious to us but to these people have never heard of it and they could never accomplish it so to say, "I want 30, 40, 50% of whatever this generates," I mean it's a no brainer for them.
How It Works
This is what happened, and I think this progression will be interesting to our listeners, which is, first off he came to one of my multi-day boot camps. After spending a week with this guy I had a really good feeling for him and that's we could work well together. I did say, "Hey, if you want to we can take this to the next level." I said, "Here's my one-page agreement," and basically it says ... By the way, everybody who sees my one-page agreement usually says, "Are you crazy? I wouldn't sign this." I say, "Fine. Then great because 50% of something is better than a whole lot of a 100% of nothing."
He looked at it and agreed. I said, "Under one condition. That you understand that it's going to take 3 to 5 years in order to build you a business that will be making as much as you are from your main business." This year he got a quarter of a million dollars in voice over work, he got a quarter of a million dollars in info products worth related to that business of which I have 50-50.
There's a million niches like this out there and there's millions of people out there that are subject experts. It doesn't take much. It takes a basic internet marketing education to be able to go to somebody that has nothing and do this.
You Need A Book
The thing that I find with books is that it's nice to be "the guy that wrote the book on..." I have a book on The Income Machine, I'm the guy that wrote the book on The Income Machine. Nobody can ever take that away from me. I think you need to have a book for that instant credibility and it's so easy these days. What I see people getting hung up on is that overthinking writing the dang book. My book and the stuff that we put out is usually edited transcripts from things that we're doing anyway. Whether it's blog posts, webinars or podcasts, it's not extra work to write a book. I think that people think they need to write this amazing life-changing novel and you don't.
Here's How To Do It
We sat down and basically went through an outline for about 4-5 hours. We then handed that transcript to a ghost writer who wrote the book for us, the whole thing took less than 45 days.
I want to tell you about this because traditionally good transcripts are expensive or you could do outsourcing sites and it's hard when you're managing that whole process. Instead use Rev.com and upload your audio file. It's $1/minute and they deliver a near perfect transcript in a couple of hours. They even tell you the name of the person that transcribed it so you can rate them and they'll either keep giving you that person or they'll give you another.
If you take just the transcript and use that as the book I found that it doesn't quite work as well so it is worth it to hire someone to clean it up. No surprise to you there are writers out there that are willing to do this for very little money.
Buying And Selling Domains
Along that route one of Fred's niches early on was the self storage industry. Fred wrote the book on self storage marketing, used to speak at all the conventions, etc. Very, very early on he bought domains like PhiladelphiaSelfStorage.com, Torontoselfstorage.com, etc. He just sold BostonSelfStorage.com.
He has all of these domains so he told his web master to setup something so that I can have these domains for sale in one place." I own selfstoragedomains.com and I set it up with a plug in, WP Auctions which is an auction plug in site, so at selfstoragedomains.com I can now have one site where I can advertise in a magazine to anybody who wants a premium selfstorage domain.
Low Hanging Fruit
The low hanging fruit is that you can do this in any niche and find buyers for them online. There's a lot of directories like Angie's List that have a bunch of contractors. You can find where these people are at and then you just contact them. I mean you're allowed to send them an email and say, "Hey, I've got this website. It's bostonstorageunits.com and there's a website on it. I'm sending it out to all of the people in the Boston area. I've only got this one so whoever wants it can take it." You build in that scarcity right off the bat. What I like about it is you can start with one domain, one city and one niche. I mean it takes you $8 for a domain and $10 for a wordpress site and then you start calling dentists and say, "I've got this site, are you interested?"
- Google Calendar
- Income Machine: Your Internet Business Setup In 3 Days
- The Income Machine
- Fred Gleeck Personal Boot Camp
- Premium Self Storage Domain Names
If you have a question, comment, show idea or just want to get in touch with Lance, you can contact him here. He loves to hear from his listeners!
Episode Sponsored By: Podcast Crusher
Today’s episode is sponsored Podcast Crusher. Are you ready to increase your visibility, reach and audience? I'll show you EXACTLY how you can get your own podcast setup and broadcasting today… Step by step with NOTHING left out.