If we’re being honest, the smart among us are only really interested in the high-ticket clients.
The people who are ready, willing, and able to spend big bucks.
Thing is, the prospects ready to drop that kind of cash right now with you is like 1-3% of your entire market.
In other words, they’re hard to find, the competition for them is high, and they’re almost spoilt for choice.
We were speaking about this in the GM+ office hours call the other day.
A lot of folk get caught up chasing the wrong folk, so I wanted to break down the different parts of your audience and how you should be looking at them.
Before I do, my mate Chris Orzechowski is running a free training on the system he used to find, nurture, and convert the right leads for his business.
Guy knows his stuff, he turned it into a 7-fig business in just a few years.
You can join Chris for the training on Monday by signing up here.
Now, let's break down the levels in your audience.
The different levels within your audience
I’ll kick this off with a disclaimer.
A lot of your audience has the potential to become a high-ticket client/customer one day.
I’ve had people sign up for free info and then hire me up to 2 years later.
Thing is, this is getting harder due to the increase in noise out there (people used to upsell themselves a lot, now happens basically never), and most of the people I speak to cannot afford to carry the costs of acquisition for 6+ months before making a return.
Speed to payback is the goal. And here’s how the levels break down so you can work to that.
Tier 4 leads - Your entire TAM
In the largest tier you’ve got the entire addressable market.
Everyone you could target and who could, potentially, be a client for you one day.
Most people are able to build sizeable lists of these people with free lead magnets, or doing things like co-promos to freebies, summits, giveaways etc.
The problem you find is, they very rarely buy. And that’s down to 2 reasons.
Free information is not valued
People will collect it, store it, and forget about it.
They’ll grab it cause it’s nice to have, not because they need to have it.
And as a result, consumption of that information is down meaning you can’t build trust.
Check your unsubscribe reasons for people who came from free lead magnets. A lot of people will say “I never signed up for these emails”.
When they don’t have skin in the game, it’s an impulse decision which has nothing to follow on from it.
Free leads attract people who want stuff for free
A while back I was consulting a guy who had a great business and offer.
He was giving away some incredible info in the form of a free book.
We then started promoting paid offers and about 80% of the people who took the book for free unsubscribed almost immediately.
They didn’t want to be sold to, and so would just leave.
He’d spent thousands on ads to promo that free book, but didn;t make a penny back from the people.
We repositioned the book as a $7 offer and scaled it to around $200 / day profit within 2 months.
Long story short, free leads are getting more expensive to attract, harder to upsell to, and will take up more of your time.
Drop ‘em.
Tier 3 - Low ticket buyers
Low ticket is where it’s at right now.
Look at all the biz opp ads out there and you’ll see that everyone is talking about low ticket.
Reason being, low ticket self-liquidates quickly.
You can throw $100 into ads today, and potentially make it back tomorrow.
With that kind of cashflow, you can scale faster and spend more aggressively cause you don’t have to carry the cost for months and months before seeing money flow back.
Here’s the thing that most get wrong though.
Low ticket is not about profit - yeah, you want to run them profitably, but this isn’t the focus of the strategy.
Low ticket will appeal to maybe 50-70% of the target market. The people who will see it and think “you know what, I might as well spend $7-$47 to solve this little problem”.
It’s job is tri-fold…
To filter serious from time-waster people
The filtering bit is obvious.
People who pay, will pay again.
Freebie seekers want more stuff for free.
To liquidate spend quickly
These offers have very short sales cycles. So, you can get your cash back quick, enabling more confident scale.
To pay for you to reach the high ticket buyers
There’s still people running ad → webinar → sales call type funnels.
Which can work, but the economics of them are bad because…
… You’re not filtering so get a lot of time wasters
… You have to eatc costs for weeks before payback in most cases
… People need to have more trust now to spend high ticket money
… You can’t just target that 1-3% of your market with ads
And it’s that last point I want to focus on.
One of the reasons the economics here don’t play out is because you cannot say to Meta or Google, “only target people willing to spend big money today - thank you”.
Ad creative and copy can help guide that, but really, any ad is going to be seen by a big portion of your TAM.
And if the offer is only good for the 1-3% who need HTOs right now, you’re spending to reach 97-99% of people who will never buy that offer.
Huge waste of spend and just not a smart way to do it.
Tier 2 - Mid ticket buyers
Mid-ticket buyers are an incredible revenue addition for your business.
These are the people who will come into your biz and pay up to $500-$999 for offers like one-time deals, workshops etc.
You can run ads to these kind of offers, but the CPA is a lot higher due to the higher fee.
Personally, I like to offer MTOs to people through ongoing nurture for 2 reasons.
- A lot of people will top out at mid ticket, so give them somehting that will help them at their budget
- A lot of high-ticket people wil buy mid-ticket which will then act as a stepping stone for high ticket
More paid offers are a great way to increase consumption of your expertise and further filter for those who need extra help.
Tier 1 - High ticket buyers
The big money makers.
They demand more, but they also give more.
Most stats say that 1-3% of your audience is ready for high ticket at any one time.
The right system though can increase those numbers a little as you can position your main offer as the perfect next step. I tend to see about 5-10% of low ticket buyers becoming high ticket clients in short order.
(You're gonna want to join Chris workshop to understand how to do this well).
All roads should point here, but it needs to have the right system behind it.
Low ticket is the filter.
Don’t think big time leads don’t buy low ticket. If anything, I’ve seen they buy more as they’re always looking for more info, takes, approaches, and strategies to learn from.
I’ve had people who make 9-figures buy my $7 offers.
After the purchase, you need a quick ascension to build trust and position the high ticket as the fastest route to success.
Around 5-10% of your low ticket will then take action on that.
For those that don’t, you continue to run mid-ticket offers to add another revenue stream and act as the stepping stone back to high ticket as well.
Done right, you can have an automated system that offers that natural progression to the higher ticket items.
In short, understand that there are different tiers to your audience.
And really, the point of low ticket buyers is not to make the big bucks, They’re paying for the ad spend so you can bring in the small percentage of people who actually want to spend big money.
Your job then is to position your high-ticket offer in the right way and use your email sends to get them to sign up.
If you feel like you've got the audience but not the sales, then you're gonna want to join Chris's training on Monday.
The guy has built a 7-fig business primarily thorugh email.
And he's sharing everything you need to do the same.
Sign up for it here.
Pete "Levels" Boyle