# what marketers WON'T tell you about high ticket vs. low ticket

Source: https://www.youtube.com/watch?v=z4aI75fDFxg

YouTube automatic English captions. Automatic transcription may contain recognition errors.

## [0:00](https://www.youtube.com/watch?v=z4aI75fDFxg&t=0s)

Have you ever found that some customers are just infinitely better than other ones? There's a famous meme you've probably seen that shows the difference between a $500 client and a $50,000 client. The difference between a low-ticket customer and a high-ticket customer. My name's Nicholas Verge, and after working with dozens of coaches and consultants and helping them produce over $50 million by optimizing their marketing systems and the messaging surrounding their low-ticket and high-ticket products, I'd like to show you the truth behind low-ticket and high-ticket products so you can determine which one is right for you and

## [0:32](https://www.youtube.com/watch?v=z4aI75fDFxg&t=32s)

your business. Maybe you're thinking of launching a new product and you're just unsure on where it should land on the price scale. Well, this video is going to help illuminate the landscape for you and give you a different perspective so you can make a proper, informed decision. By the way, if you'd like to be able to figure out how to craft the perfect messaging for that offer, make sure after the video to check out the description down below to grab a free copy of the power copy process. This is a 97-page resource that I put together showing you everything that I know about how to craft compelling, high-converting

## [1:03](https://www.youtube.com/watch?v=z4aI75fDFxg&t=63s)

copy. So, let's go ahead and let's dive in. What we've seen over the past few years is a resurgence of what a lot of people call the low-ticket funnel. So, for years high-ticket products primarily sold through webinars, VSLs, they dominated the marketplace with figures like Sam Ovens, Alex Becker, Dan Lok, and a lot of others who were leading this high-ticket movement. But, since everyone started using the same model, the cost to acquire a customer substantially went through the roof. And as a result, there were too many monkeys for the amount of bananas that we have available. Simple way to explain supply

## [1:35](https://www.youtube.com/watch?v=z4aI75fDFxg&t=95s)

and demand. That's why marketers went back to an older model that was prevalent before high-ticket. So, small, actionable, utilitarian-based item on the front end. Usually either in the form of a book or a product that solves a specific problem and promises a clear, tangible end result. The prices range from $7 to $297 on the front end. And what follows is a series of upsells and downsells designed to provide solutions to the next set of problems that will occur after someone solved the specific

## [2:05](https://www.youtube.com/watch?v=z4aI75fDFxg&t=125s)

problem that was promised on the front end. The upsells can range from 97 to 997 with courses, tools, and other information-based products. Now, other times people will use that opportunity of an upsell to position their webinar or incentivize you to join their workshop. And plenty of business owners even develop softwares or communities to sell over recurring offer as an upsell. The whole point of this funnel strategy is to either liquidate the cost to acquire a customer entirely or to operate at a slight loss or slight

## [2:35](https://www.youtube.com/watch?v=z4aI75fDFxg&t=155s)

profit on the front end to push as many people as possible to the back end high ticket product which then makes up for the loss in the front end or the back end. Now, in theory, this works great. But here's what the marketers who sell these low ticket funnels, what they actually never tell you. So, they'll post screenshots online highlighting that maybe their cost to acquire a customer is $28 on a $48 product. But what you have to ask yourself is for how long were they actually able to maintain that CPA, that cost per acquisition. So,

## [3:07](https://www.youtube.com/watch?v=z4aI75fDFxg&t=187s)

they may be getting a $28 cost per acquisition on the first or second or third day of launching because it's fairly new. But then, what happens 7 days in, 2 weeks in, or a month in? The CPA skyrockets up to $148 and now this product is entirely in the red because the AOV is only about $100. So, it's not to say that these funnels don't work, okay? They do work and that's not to say that what I just explained always happens. But it's important to look at when people are showing you the data that they're not just highlighting a specific segment of

## [3:38](https://www.youtube.com/watch?v=z4aI75fDFxg&t=218s)

time that benefits their argument. So, I would say there's actually a lot of good things about these funnels. In fact, I would say one of the main advantages of a low ticket product is the fact that you get a much faster feedback loop with paid traffic compared to a high ticket product because it's a lot easier for someone to commit to buying a $26 product and not have to get on a phone call than someone having to actually book a call in for a product that they know will likely be between $5,000 and $15,000. Because of this, you can see what messaging is working and not

## [4:10](https://www.youtube.com/watch?v=z4aI75fDFxg&t=250s)

working on your ads on a much faster timeline. That's where a low ticket product is better than a high ticket product. But, it should also be mentioned that there's a substantial amount of effort to actually even get this type of funnel to break even. For you to be able to actually liquidate will require someone to be constantly optimizing your upsells and your downsells all the time to be able to make sure that you're able to squeeze out the most profit. You may be profitable, but then you step away from the funnel for a month, and then guess what? You come back and suddenly you're not profitable anymore. So, it's this

## [4:40](https://www.youtube.com/watch?v=z4aI75fDFxg&t=280s)

constant iteration cycle that is necessary to make this funnel work. But, even further, there's no way to predict how long it's going to take for someone to turn into a high ticket customer. So, while you may be profitable on the front end with a 2x average ROAS with an order value of $190, you may also end up squeezing so much out of your audience and because you gave them so much material in all of your upsells, now they do not have a need for the high ticket product or they will never have a need for the high ticket product because you just gave them everything they

## [5:11](https://www.youtube.com/watch?v=z4aI75fDFxg&t=311s)

needed in the upsells. So, as you can see, there's a lot of nuance to the topic of low ticket and high ticket and plenty of marketers teach it with a very dogmatic approach. So, what I'd like to do is give you a balanced approach that helps you see things for what they are and not what they appear to be so you can see past the smoke and mirrors from most marketers. So, every market really has three sections. There's the broad majority, the enthusiasts, and the elite. The broad majority are the people who are just getting started or have just discovered this market. They're beginners. They're They're kind of just

## [5:42](https://www.youtube.com/watch?v=z4aI75fDFxg&t=342s)

figuring things out in a sense. What they're looking for is information. And so, that's why books, courses, paid newsletters, all these types of things, they work so well for these people because it's serving the core need that they have, which is a desire for information. So, some examples include someone who's just looking into affiliate marketing. Maybe it's a wife who's trying to get started inside of a sourdough and baking bread. Or maybe it's even someone who's just getting started on their journey to weight loss and wants to find out more about all the

## [6:13](https://www.youtube.com/watch?v=z4aI75fDFxg&t=373s)

different approaches to keto and like wants a recipe cookbook or whatever. So, that's the first section, the broad majority. Now, the next segment of every market is the enthusiast. These guys are a little bit more sophisticated. They've been in the market for some time and they have accumulated a lot of information, but truly what they're looking for now is actionable material and the best material. They've read enough books and they're ready to go deeper into applying what they've learned. And these are the people who are going to buy a program ranging from $2,000 to $10,000. They're going to buy

## [6:45](https://www.youtube.com/watch?v=z4aI75fDFxg&t=405s)

events, they're going to buy workshops, they're going to buy much more expensive products because usually they're a little bit better in terms of a financial position than the broad majority. And the only reason they buy these products is to help them start seeing better results. Some examples, if we're going to these exact same ones, just to use the bread baker example, let's say someone has actually already started now baking bread and now they want to start selling it at a farmers market and they want to find out more about how they can actually run that business and all the details for it. And so, someone has a course that's all about how to start your own bread baking business or bakery, cuz that's what it's

## [7:16](https://www.youtube.com/watch?v=z4aI75fDFxg&t=436s)

called, right? And then you could go and you can buy that, it's a $1,000 program. That would be an example of someone who's an enthusiast. So, they're not completely in the dark on information, but they are a little bit more sophisticated, a little bit more aware, I should say, of the actual niche itself. So, that's that second the category. And the last category, we have the elite. So, this is your higher end of the market. These are the people who are most likely to be able to purchase a very high-end experience. The elite are willing to drop upwards of $20,000 to $100,000 to have their problems solved

## [7:47](https://www.youtube.com/watch?v=z4aI75fDFxg&t=467s)

because they know none of the other options will really help them since they know more than the person that's actually providing the lower-level options out there. So, going back to our bakery example, let's say now the person has actually successfully scaled their farmer market business and they've also started to get into local grocery stores, but they actually want to open up bakeries all across the US in major cities. And so, they have a program that shows people how to open up food stores and how to actually scale them successfully and turn them into a franchise model for a hundred grand for

## [8:18](https://www.youtube.com/watch?v=z4aI75fDFxg&t=498s)

a year access to the program. That's an example of an offer for an elite person in the elite segment of the category for someone that fits into that elite section of the market of bakers. And you can even categorize these three customer segments and the products they buy into do-it-yourself, done-with-you, done-for-you, and so on. That kind of matches almost perfectly to the different segments of the market. So, I've helped scale multiple DIY, DWI, and DFY offers across the board. And

## [8:49](https://www.youtube.com/watch?v=z4aI75fDFxg&t=529s)

what I've seen is that the most successful ones did not create a dogmatic approach that only thought about everything in terms of economic units and scale, but rather what they optimized for was covering the most surface area of a market, which really just means that they wanted to take up the most space and be talked about the most by being the loudest voice in the market. And what we've discussed so far today is really what's referred to as an ascension system, right? And this is one thing where it's easy to fall into that trap of the dogmatic economic approach

## [9:21](https://www.youtube.com/watch?v=z4aI75fDFxg&t=561s)

to an ascension system. If it's not profitable, we kill it right away. And unfortunately, what people are convincing you is that you can control a system like this ascension system, but truthfully, my friend, you can't control You have no control over how long it's going to take for someone to buy a high-ticket product that just bought a low-ticket product. And sure, you can create optimizations to help speed up the process, but that isn't controlling a system. That would be the act of dancing with a system. And as I've already touched on before in this video and in previous videos, if you don't

## [9:52](https://www.youtube.com/watch?v=z4aI75fDFxg&t=592s)

have someone full-time dancing with the low-ticket system, it likely won't perform to the degree that you want it to. You may have one good run with it, but then immediately after that the next month is not the same, and the next month after that's not even in close to the first month. And so, you realize, "Oh, this is actually a lot more effort than I was led to believe." So, if you really are focused on, let's say, elite high-paying clients, does it really make sense to put all that time and effort into creating low-ticket products like books and courses, or would it be much more useful to just create highly

## [10:23](https://www.youtube.com/watch?v=z4aI75fDFxg&t=623s)

valuable content and drive everyone to a VSL with your high-ticket offer? You could simply just spend more time providing value to those people, speaking at events, engaging with them, and realizing that the people who are going to spend 50 thousand dollars with you more than likely are going to come from some level of a personal relationship or a referral. So, if that's the case, it would probably make more sense for you to prioritize the social connection side of things and networking, like joining masterminds, and making a concerted effort to actually provide value to those people. That's one way to think about it. Or if

## [10:55](https://www.youtube.com/watch?v=z4aI75fDFxg&t=655s)

you're going after the enthusiasts, maybe it would be a better use of your time to actually spend more of a concerted effort on showing how you are different from everything else out on the market. And maybe that's pushing them into something like a challenge funnel so you can have two days with them to really show them specifically how you go about your process or whatever it is. So, a challenge or a workshop to help people better understand what specifically it is that you do and how it's different from everyone else. And so, that way they can actually see like, "Oh, I was able to

## [11:26](https://www.youtube.com/watch?v=z4aI75fDFxg&t=686s)

get this specific transformation over the course of two days with this person. I can only imagine what everything else would be like. Sure, here's my credit card, etc., etc. But maybe on top of that, you do want to go after the broad majority. If that's the case, then sure, low ticket it up and go all in on just focusing entirely on selling low ticket products. But what you'll see is people get confused across these three different topics, not knowing specifically where to allocate their attention and where to focus what they're doing. And what I say to people is it really just depends on what you're trying to achieve. No two people's goals

## [11:58](https://www.youtube.com/watch?v=z4aI75fDFxg&t=718s)

are the same and what's possible varies industry by industry. So you could have an industry filled with elite people that just aren't really going to buy low ticket products cuz it doesn't really make sense. Or it could make sense. Like for instance, in the coaching and consulting industry, plenty of people buy low ticket products just to see what other people are doing. But that does not mean that the person's going to buy your high ticket package. So be very cautious of the people who promise these types of things. Oh, a bunch of people are going to come and turn into buyers for you. There's no way to control that. We can test it and see it and optimize it further. But anyone who's

## [12:29](https://www.youtube.com/watch?v=z4aI75fDFxg&t=749s)

guaranteeing that to you is likely full of So for me personally, I only want to work with high-level business owners who are doing a minimum either high six figures a year, seven figures a year, or eight figures a year. I don't really want to work with low ticket beginners or anything like that as I've already done that and it wasn't super fulfilling for me. My business is very high intimacy, which means I have high touch with my customers. I have to spend a lot of time with them. But I'm okay with that because that's what I'm willing to do to grow my business. Now, for someone else, let's say a single

## [13:00](https://www.youtube.com/watch?v=z4aI75fDFxg&t=780s)

mother who doesn't have a lot of time on her hands outside of when kids are at school, a high touch point business may not be possible. She may be better off just selling low ticket products and going after a lower segment of the market. And so what I tell people is to focus on what's the lifestyle that you want to live and create the business that matches that. So I see people advocate for a business model that requires you to run a low ticket funnel, a mid ticket funnel, and a high ticket funnel simultaneously. And my personal thoughts are that is quite the operation

## [13:32](https://www.youtube.com/watch?v=z4aI75fDFxg&t=812s)

that you're going to be running cuz you not only have to manage the logistical intensity of three different funnels and all the customer support tickets and all the ascension paths. It's just a mind-boggling amount of work and optimization and data tracking and people that you need to bring on. It's just It's a lot. And a lot of business owners look at the guys at the top and they say, "Well, they're selling everything and so I should sell like that as well." But again, they have a team of 20 to 30 people. But on top of that, what you don't see, and I've been able to actually see this being inside of these people's lives and their

## [14:02](https://www.youtube.com/watch?v=z4aI75fDFxg&t=842s)

businesses and knowing a lot of them, is most of people I've met who run their business that way, their lives are completely miserable. While they may make eight figures a year in profit, they're making a ton of cash, no doubt about it. Again, it's it's it's impressive what they're doing. But often times, these people hate their life. They are miserable people. They have a scowl on their face at all times because they are constantly bogged down because of the amount of effort that it requires for them to run their business. And I don't want to put limiting beliefs onto anyone. Truly, you can do anything that you set your mind to and focus on. But

## [14:34](https://www.youtube.com/watch?v=z4aI75fDFxg&t=874s)

what's most important is that you design your business realistically from the start and not let these wild numbers that you see online with claims confuse you. So, someone could be doing $2 million a year. Yet, because of the infrastructure that is required for them to be able to produce that, they're actually netting maybe $200,000 a year. Now, on the other hand, you could have four customers each paying you $10,000 a month with no staff and you're making more than the person doing $2 million per year because revenue is not profit. And this is what

## [15:05](https://www.youtube.com/watch?v=z4aI75fDFxg&t=905s)

most people don't show because it doesn't help them sell more of their program or their services because they don't want to reveal the truth behind the numbers. And so, I personally believe that if you really want to be able to know what type of product you should sell, it starts with understanding what your ideal day looks like and what's the exact life that you want to live. If you want to be on calls all day long, and you don't want to have any resemblance of a life whatsoever, then by all means create all three models and just run with it. If you want to have it where you don't have any calls and you're completely detached

## [15:36](https://www.youtube.com/watch?v=z4aI75fDFxg&t=936s)

entirely, and you don't have to have any connection whatsoever with your customers, and you can simply focus entirely on marketing and running the business, I would say go all in on low-ticket products. If you want to focus on being able to have it where you have some calls and some of the time is spent with customers, then maybe the mid-ticket product is best for you. But, if you want to go for the high-ticket product, you need to realize that a big part of what is required there is a high capacity for intimacy, and not in a sexy kind of way. I mean that the person needs to feel like you genuinely care

## [16:08](https://www.youtube.com/watch?v=z4aI75fDFxg&t=968s)

about them, because if they don't feel intimacy with you, and they're probably spending upwards of $50,000 with you, well, they're not going to want to do that, because it's a lot of money and they could spend it elsewhere. On average, my customers spend anywhere between $40,000 and $100,000 with me over the course of their lifetime, which is known as well as LTV. And people will tell me, "Nick, you need to run a low-ticket funnel so you can acquire those customers for a cost of, let's say, five grand, and then since you know your LTV, you know you'll make more in the long run." But, let me just pose a a

## [16:40](https://www.youtube.com/watch?v=z4aI75fDFxg&t=1000s)

thought or a scenario to you. Let's say, for instance, I go to an event and the event ticket costs $2,000 for the ticket, and then there's $3,000 for the flight, for the hotel, and everything like that to make sure that I'm comfortable. So, if I land a client while I'm there, is that not the same as an acquisition cost on Facebook that costs $5,000? And most marketers will say something along the lines of, "Oh, well, it's different because you get to stay at home and you can scale it further." And that is true, but I want you to think about the connection of the person that meets me in person versus

## [17:10](https://www.youtube.com/watch?v=z4aI75fDFxg&t=1030s)

someone who just bought over the phone. There's no connection really to anyone who just buys off of a random Facebook ad, you know? They're going to stay inside of the program for like 3 months and then leave. However, someone that you met in person, they could be happy to stick with you for a year or 2 years as a customer because they have that bond and that intimacy with you. And so, what I'm really trying to communicate to you guys is there's no one way to do this. And there's trade-offs with every single model. And the truth is that figuring out what model resonates the most with you is the main task that you

## [17:41](https://www.youtube.com/watch?v=z4aI75fDFxg&t=1061s)

should focus on. So, for me, I found a lot of fulfillment in simply just attending events, connecting with people, making a really concerted effort to help as many people as possible with high-value content, and by actually reaching out to people and providing help to them whenever they needed it, and just doing that on a consistent basis and selling high-ticket products to those people on a one-on-one basis. Now, is that saying that I'll never run a low-ticket funnel? Absolutely not. Is that saying I'll never run a high-ticket mastermind or a group coaching program or anything like that? Absolutely not.

## [18:11](https://www.youtube.com/watch?v=z4aI75fDFxg&t=1091s)

The offer that you choose varies a lot based on the season of life that you're in and how much time and capacity you have to run these offers. Yet, what I think is very important is to break out of the dogmatic approach that you must do all three or that this one works better than the other. When the truth is is what works the best is the one you focus the most attention and energy on. Very rarely, my friend, is someone going to buy a $19 product and then proceed to give you $50,000 right after. Sometimes, that could happen, right? That that that

## [18:42](https://www.youtube.com/watch?v=z4aI75fDFxg&t=1122s)

could be the case, but that's a rare exception. But if you want to make sure that you're focused on growing your email list and growing the influence that you have in your audience and everything like that, then maybe the low-ticket product is the way to go. Or, you could just double or maybe even quadruple down on your content so that all you attract is high-level buyers. It's all about your time, your energy, and the trade-offs you're willing to make because we all have the same amount of time every single day. So, I hope this video helped you and you can see that there really is no one-size-fits-all solution to this.

## [19:12](https://www.youtube.com/watch?v=z4aI75fDFxg&t=1152s)

Rather, you need to think about it from what do you want. And it starts again by just choosing which one is best for you based on the life that you want to live. So, here's the thing, if you like this content, you probably will love my newsletter and I'd like to invite you to join by offering you my life's work in a Google Doc which I called the power copy process. This is a 97-page document that breaks down everything that I know about writing compelling copy that speaks directly to the soul of your ideal customer. If you'd like to grab your copy, you can simply just click the link below in the description. All righty,

## [19:43](https://www.youtube.com/watch?v=z4aI75fDFxg&t=1183s)

all the best. See you in the next video. Bye now.