The Truth About Big-Ticket Products

Ahhh.. information marketing.

Pure and simple, the best business in the world.

You can build a business around your passions, hobbies and expertise.

You can work from anywhere (I’m writing this post from Starbucks!).

You can live anywhere (my wife and family lived in Florida for 2 years for a change of scenery).

Oh yeah – the margins are insane.

I have re-created the information marketing funnel – and here’s the graphic (I originally posted this last month).

Today, I’d like to focus on “Big Ticket” products.

THE BIG TICKET PRODUCT MYTH

I LOVE creating (and, of course selling) big ticket products.

There is always a percentage of your customers who WANT the big full-blown training system. And they are willing to pay a premium for it.

It took me about 3 years until I fully understood this. And when I released a $200 training program over 10 years ago- I was shocked with a $20,000 payday.

But when some of my fellow “Internet marketers” talk about creating big ticket products, they usually say you can charge $2,000 (or more) without a problem in ANY niche.

And the moment someone says that, I know instantly they have ZERO CLUE what they are talking about. I’ve created a lot of products in the fitness niches – and it’s a big challenge to sell a $1k information product to consumers. And that’s the fitness/weight loss market!

I believe they are living in a fantasy world. They’re used to selling only “how to make money online” products – not softer topics. And by softer topics, I mean hobbies, personal development, etc.

A ceiling price “pure” information product (one that doesn’t include a live experience) varies wildly on the market.

Do you REALLY think you can sell a “how to knit better” DVD set for $2,000? I’m a pretty optimistic person – but even I know it would be almost impossible to pull that off.

The reality is many of the “hobby” markets will consider $200 a big ticket price. Very big.

But here’s the good news – you can still impact a lot of people AND bring in a very nice income with a $200 product as well.

Let’s look at the math.

You create a one-day workshop on a topic that resonates with your market in the gardening niche. ***That’s important – you must create something that people really, really want.***

Let’s call the workshop “How to Start Your Own Home Gardening Business”. You sell the recordings for $200.

You follow my traffic advice (and use this program).

You hustle and things start to happen.

Before you know it, you are selling ONE a day.

But, even at just selling ONE a day – you are bringing in $6,000 PER MONTH. That’s $72,000 PER YEAR. Most people would be happy with that income, and that’s just at one a day.

What if you average 2 sales a day? Or 3? Well, you can see the potential.

So whether it’s a $200 product or a $2,000 home-study course, you should start to generate ideas on how to create products for people who WANT premium.

If you want to build a true online empire, follow the chart above and create products in EACH category. And never forget BIG TICKET!

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Comments

  1. I like it that you call BS on those who say that anyone can sell $2K products in any market. I’ve always had my suspicions and you, being someone who’s had tons of experience, just confirmed my experience.

    so thank you!!

    1. Author

      Hi Andy,

      I’m just trying to share what I’ve found to be true.

      Keep on rockin
      Ryan

  2. Kick a** Ryan,

    I know you’re the truth.

    With your $1k per day, and
    Ryan Lee Method I know this
    stuff works.

    Putting it together as I write.

    And I went after the webinar like
    maggots to raw meat.

    Shout out on Thursday.

    Thanks for always hitting us
    with primo tips and news.

    …and for ALWAYS over-delivering

    1. Author

      Thanks for your ongoing support Bill (and of course, your incredible energy!)

      Ryan

  3. Thanks for this wake-up call, Ryan.

    Oh, sure – I’ve seen some $1,000.00+ sales made online, but these days, most of that is not just “info products” but rather software. Or software plus info products (like ebooks and DVDs or video downloads). I’ve even been a panelist or interview subject for people selling things like this, and by participating, I’ve helped their sales.

    But in ANY market? I agree: doubtful.

    Your funnel is a good one – hope lots of people copy what you suggest and Take Action. As Wayne Gretzky said, “You miss all the shots you don’t take.”

    The only way to make money is to take action – and TODAY is a great day to start!

    Charlie Seymour Jr
    http://DrMarcAndCharlie.com

    1. Author

      Charlie,

      The goal was just to create a very simple model that anyone can follow.

      And yes, packaging with software dramatically increases the value as well.

      Best
      Ryan

  4. Working on releasing a big ticket product right now with tons of value. Not just a training course, but one filled with tools and services to help users build their business online. We tested this via a small offer back in August and again 2 weeks ago and in both tests we converted at over 10% and as high as 18% (on warm traffic) on our $179 special offer.

    The one thing I have learned in this process is you have to over deliver. There is so much out there anymore that you have to set yourself apart from everyone else or you will fall flat. I was doing 1-2 sales per day of this product passively through a single backend on one of my sites and I currently receive an average of 1-2 emails per day asking about when my home page is going live so people can buy.

    You can be very successful with this, but the Value has to be there or the refunds will be there waiting for you on the other side.

    I have used quite a few lessons from FounderFly in what my team and I have done to make this possible. Plus I heard you speak at the CB Conference 2 years in a row now Ryan. Your advice has helped me quite a bit.

    Thanks.

    Mike

    1. Author

      Hey Mike,

      I agree 100% about value and refunds.

      It’s not what you make – it’s what you KEEP that matters.

      I’m glad you liked my CB talk.. more to come!

      Ryan

  5. Great post Ryan!

    My fitness adventures certainly have not been an easy sale at the $897 – $1499 price point.

    I recently bundled a fitness adventure with a fat loss coaching program and a photo shoot experience in Costa Rica (at the end of coaching, and beginning of the adventure) and was much more successful doing this – price point was $2000 – $2500.

    Can’t wait for your webinar!

    Scott

    1. Author

      Nice way to bundle it all together Scott. That’s why you continue to kick butt and your customers love you.

      Ryan

  6. Hi Ryan, I dig it! Is there any chance you could make the graphic a little bigger tho? Hard for my old eyes to read.

    1. Author

      Justin,

      I do think there’s still a market for $2k – but it’s gotta be tremendous value!

      Ryan

  7. Thanks for the reality check. We have been bombarded into believing we have to create these high ticket items to succeed, you have deflated that bubble. While I have attended many of these high priced seminars, I must tell you I have forgotten more than I have retained. Sometimes a one day event is better than three days of overwhelmed and paralysis.

    Thank Ryan

    1. Author

      Hiram,

      I still love big ticket – but the reality is that some markets are tougher to sell premium.

      And I agree with shorter events – I love doing one-day workshops!

      Ryan

  8. with this road map, How an affiliate in personal development niche can find traffic. any suggestion?

    1. Author

      etna – traffic is an entirely different discussion. I’ll cover that in other posts.

      Ryan

  9. Good tip Ryan – plus keeping the price affordable means you’ve got room to ‘underpromise and overdeliver’!
    Like your new resource Hire Jill – you even managed to have her with a UK accent (! – unless your software recognises where we’re from and does a local UK accent just for us UK folks??!!!)

    1. Author

      Hi Tanya,

      You must always overdeliver.

      And she does have a UK accent – everyone hears the same voice.

      Ryan

    1. Author

      Jonathan,

      This was actually pretty tame. I just wanted to disprove the idea that it’s easy to sell $2k products. And then give some actionable advice.

      Compared to my previous stuff, I felt pretty calm and controlled (with no cursing!)

      Ryan

  10. Nice honesty – Ryan. I always thought the idea of selling info only products above $1,000 a bit of a stretch. I do not doubt some people do it when their reputation is huge, but it is a lot easier to work in the mid market.

    1. Author

      Ron,

      Many markets CAN support a $1k product – but it better solve some big, time problems.

      Ryan

  11. What are your thoughts on recurring revenue being a category 1 item? Should they be separate revenue streams?

    1. Author

      Hi Sara,

      I believe they are separate programs (one-time vs. recurring revenue) and should remain separate.

      Most people should START with a one-time product as it tends to be easier to create, distribute and sell.

      Ryan

  12. Thanks, I blog about self development and I’m sure tired of the ‘make money online’ crowd talking about big ticket items in the thousands of dollars.

    I have trouble believing they are in the real world.

    A problem I have though is that they are the people who disclose how much they make. For those of us who are in other kinds of business it is awfully hard to know if people make money and if so how much.

    $200 sounds much more realistic than $2K in my market.

    Critique is good by me. You have my gratitude for being negative about nonsense.

    1. Author

      Even,

      It’s true most people are not 100% transparent about their numbers – and I think there are some instances when it’s ok to play things close to the vest.

      Again, many markets WILL support a $2k product, it just has to be the right fit.

      Ryan

  13. Thanks for redoing this to better reflect reality for those of us who are not offering “make money online” products.

    Something I always forget, and often gets overlooked, in the excitement of “$200 a day, $6k a month, $72k a year” is the fact that these are gross numbers, not net.

    Products of all kinds require a financial investment to generate steady sales, both for infrastructure and marketing. Even supposedly free marketing strategies, once the time required to do them are translated into an average hourly wage, represent a financial subtraction from those lovely round tallies above.

    Being responsible as a business person means calculating expenses as well as income in one’s profit projections, does it not? (And heaven help you if you forget to calculate the taxes!)

    1. Author

      Jen,

      Yes, I was giving gross numbers.

      BUT – if you follow many simple free marketing tactics and work from home, the profits can get pretty damn close to 100% (much closer than traditional businesses)

      Ryan

  14. Great post, Ryan. I have felt for quite some time that selling a $1000 product in the typical sports, crafts and hobby niches was practically impossible.

    The gurus don’t tell you that. Instead they try to sell you a product that shows you how to do it.

    Also, I heard that the average refund rate on most of these $2000 products is around 50%. Although, at $2000 per I could probably live with that.

    Thanks for showing us the right way to do it.

    Dave

    1. Author

      Dave,

      You CAN go premium in hobby markets – but it usually requires you packaging something else with it.

      And no, the only time I hear about refund rates of 50% are with people who are overselling and underdelivering. I’ve sold premium priced products and even with the high prices, my refunds are usually under 5-6%.

      Ryan

  15. I am still very new to “making money online”.

    Thanks to Ryan, I have all the resources at one place. Keep up the good work. And thanks for the simple but meaningful infograhic.

    It captures the main steps that I need to do in order to be big!

  16. Hi Ryan,

    Great post on how to do things right using what I call the power for Strategic Intelligence! It’s also about having the most engaging and compelling copy on your sales page that not only convinces but positions you as the ‘go-to-person.’

    Thanks, Ian

    1. Author

      Thanks Ian – although I didn’t do it purposefully, I’ll take it!

      Rock ‘on
      Ryan

  17. Great post Ryan and thanks for the traffic tip using ‘Hire Jill’.

    Everyone here knows that you always over deliver.

  18. Dear Ryan,

    I am glad that I participated in the webinar. I have a few ideas floating around that I will be implementing. Thank you for detailing the steps to conduct one and multi-person seminars. The only thing left for me to do is carry out the vision. Thanks for the push. See you soon.

    Regards,

    David

  19. Hi Ryan,
    To sell information products you have to get a website and marketing funnel set up, which product you recommend? Do you use Kajabi?

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