SHOW NOTES

 

Today I want to talk through the purpose of lower ticket offers because lately I’ve been seeing a lot of success with what we call “SLO” or self liquidating offer funnels.

This success didn’t just pop out of thin air…
My team implemented specific strategies from the start in order to make our lower ticket offers profitable in the long run.

Why is it so important to strategize your SLOs?

Because you’re either making or breaking your customer’s trust when they purchase your SLOs.
So if you don’t deliver, then it will be harder to gain your customer’s trust back and the chances of them purchasing something higher ticket will be significantly lower.

If you’re interested in maximizing the success of your SLOs, listen to this episode where I’m going to go over:

  • Why you should over-deliver with your low ticket offers
  • The steps you can take to make your offers more profitable
  • Exactly what you should avoid when working with SLOs

Listen in, and then SHARE with your best-business-friends! (Tag @emilyhirsh on Instagram for a quick shout out in stories!)

And if you want access to reports like this from a Team who knows their stuff, head to HelpMyStrategy.com to apply to work with Team Hirsh!

 

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Emily Hirsh

Hello, welcome everybody back to the podcast. Today, I am excited to dive into lower ticket offers and some strategies and what to expect with them. I’m seeing a lot of success lately with what we call SLO or self liquidating offer funnels, where basically you sell a $27 or $37 product on the front end with upsells on the backend. And we actually have one ourselves. It’s the Facebook Ad Toolkit. And we have several clients who have one, but I want to talk through the purpose of those and the goals with them. And some things to be careful with, like what I would call low ticket offers, which are those lower priced, really anything under, in my opinion, I don’t know, $300 or even up to 500, like is a lower ticket. And the reason why is it’s harder to profit from it. And the reason why it’s important to know that is because you need to have strategies to get it profitable and to use that really strategically. So I want to talk through strategies and kind of expectations with this type of funnel and what we’re seeing. Because we have several clients running it, we’re running it ourselves and it’s actually really successful. 

So first I want to talk about the concept behind it. And so you can decide if it’s something that you want to incorporate in your business. So we’ve seen a lot of success with people using a product where you run ads straight to a $27, $37, maybe up to $47 product, but probably not more than that, usually a digital product. And it’s really kind of like an eCommerce product funnel because you’re running ads straight to that product, to that sales page where you’re offering, asking for the sale, vs just an opt-in, and then typically on the backend, once they buy there’s either order bumps, things they can add on to their order or an upsell on the thank you page to make more money off of that overall sale.

Now, the key with making this successful and number one key is that what you’re offering for whatever price ours is actually we’ve tested all different prices. I think right now we’ve got it at $47 and it’s working well, we started lower, but we raised it as we went. Regardless of, you know, whatever price that you’re asking, it should be worth like 5X that value maybe even 10, like it should be so valuable, such a no brainer purchase, and that will create its success. Honestly. People are buying things right now, like tools and spreadsheets. I’ve seen a lot of like content ideas, social media posts, you know, templates. Ours is a toolkit of calculators and ad tracking sheets and like very valuable tools, actionable tools that people can go and implement. That’s what’s really working because it’s like an amazing deal and a no brainer purchase that it’s going to get somebody results and help them see progress if they buy it and implement it in their business or in their life.

So, that’s the main key to making this successful is honestly that the product you sell is extremely, extremely, extremely valuable. That’s the first thing. Now let’s talk about expectations with this because it’s called “self liquidating offer” for a reason. And that means your goal is that you’re just paying for your ad spend with the purchase of that self-liquidating of that first product. And then maybe your upsells are profitable. Hopefully your upsells are profitable, that is the goal. So you’re not expecting to make money with that first 27 37 $47 offer at all. Like if you just pay for your ad spend you’re golden and then you’ll make money on your actual upsells, but you probably won’t make like a ton of money. You’re not going to make a hundred thousand dollars a month. I mean, I guess it depends on how much you spend, but I believe there should be a bigger picture with this type of a funnel and like, what are you sending people to next?

So let me talk about our thought process of our own self liquidating offer funnel. We sell high ticket, and so it’s a pretty big jump to go from like free webinar or free whatever to signing up to work with us in our agency, either are done with your done for you services. The lowest price is $2,497 for our course, if you get it at our, at our special price, $2,500 to $3,000, is that cost. So it’s a pretty big jump to go from free sometimes to that. So what I wanted to do was, was create a product that we could sell for this low price. So this is our toolkit, our slow funnel, that the point of the product would be to convince people to come and sign up with us as a client because the actual product delivery would be so good that it would build trust in just the consumption of what they bought.

So that was my goal with it. And so whatever your business is, you should ideally have a next step. I don’t recommend just selling, like, you know, a max price of $200 of your highest price product is that amount. You’re going to have a hard time making a lot of money. There are exceptions, membership sites, people in the fitness and health industry sometimes need to price things lower. And then you have to get high volume to be very profitable. But my suggestion is that you have something higher priced on the backend that you’re, that’s like part of the bigger picture. So you’ve got this self liquidating offer it’s $27, and then it goes to an upsell that’s maybe $97. And then maybe you have one more upsell. That’s $200 and that’s that funnel. That’s not the end all be all. 

Now, what do we do? What do we add on the backend that send those people to that’s like a thousand dollars or more. And so that is the big picture. So one situation that I ran into with somebody was so they actually had another scenario of this could be you have an optin that’s free. And then on the thank you page, you’re selling something which would be called a trip wire. Again, the point of those is to make back your ad spend, not necessarily be extremely profitable. Maybe if you add multiple upsells, you can be profitable, but it’s not like a moneymaker. You can’t run a business with just a trip wire. You’ve got to have something else on the backend. So I was talking to someone who, their strategy was opt-in to trip wire. The trip wire was $97 and they were actually profitable, like marginally profitable on their ad spend, but they were frustrated about it.

They were like, well, we need to make more money. It’s, it’s not working. And my ad spend isn’t working. And I was like, yes, it is like the, the, the purpose of your trip wire is to actually just pay for your ad spend. And you’re actually making money off your ad spend. Now, what we need to do is actually add something to the backend of what you’re doing to send those people to next, to really truly make your funnel profitable. The good news is these people had added 7,000 people to their list. Through that opts-in, sold, I forget the percentage. I want to say it was like 10% of people were taking that trip. Wire sold a lot of trip wires for the $97. Were profitable, but not as profitable as they wanted to be. And I was like, well, now you’ve built a list of 7,000 people that you’ve paid for with this trip wire offer. And you have higher level services. They actually have had higher level where they could send somebody to book a call to purchase their higher level services. 

So I said, the next step for you is to add that on the back end of your funnel, because you’ve proven people want to opt-in. They want to buy your tripwire. And now we need to make this even more profitable than it already actually is and sell people your higher ticket offer. So a really good strategy if you’re dealing with lower ticket offer funnels, like I’ve been describing is to look at it and decide how do I actually build on what I already have to make it more profitable? How do I send people to my application, to book a call with me, to a webinar for my $997 product, those would all be options. And the benefit of combining it with your self liquidating offer funnel is you’re going to be sending it to people who have a lot of trust already, because they’ve already purchased something from you and people who have already purchased something from you are really, really likely to purchase something else from you, especially if you over-delivered on what they purchased originally.

And that’s why that’s so important. Like here’s what I do not want you to do. And I don’t think a lot of my audience would do this, but don’t be like, oh, I’ve got to get a self liquidating offer, find a lot because everybody’s doing it. And I see all these $27 offers. So I’m just going to throw this together and throw this together. And it’s like, it’s okay, but it’ll do for now and get it out there and have a delivery that you don’t feel amazing about the product delivery. Like, truly that is the key with these offers is that you way, way over deliver on the product, because you should actually see the consumption of your small priced offer like that as part of your nurturing. And so if somebody consumes that product that you’ve put out there, they are being nurtured to your next level products.

And they might buy one in a month from now, a couple of weeks from now, a year from now. You don’t know, but people who buy it from you, like you’re either making or breaking their trust right there. And if they have a poor experience from buying from you for that low ticket offer, where you put out there, the chances of them coming back and buying anything or nothing, they won’t, you’ve lost their trust. But if they are like, wow, this was way worth my money and such a great product, what else do they have? That’s how you want people to feel. So I have personally tested this out where we had people, cold traffic, buy our toolkit for $47, buy our upsells, which at the time of recording this equal $97, but we’re actually upgrading it. But even $97, they spent cold traffic with me. Then sign up for one of my free trainings, then fill out an application to become a client, then become a client. That is the, you know, that is my journey that I wanted them to take. 

So let me recap here, what I want you guys to do. One, if you haven’t considered a self liquidating offer, you could for your business, make sure that your product is very, very good that you do put together that it’s also attracting the person that you want to come in for your higher ticket offer. Don’t see a self liquidating offer as like I’m going to make bank with this. See it as it’s a stepping stone in my big picture customer journey. So for if you don’t have one, that’s something to consider if it’s right for your business. And if you think that you could serve your audience in this way, if you do have one, what I want you to look at is actually go back and try to get data on the people who purchased your offer and what are they doing after that?

Are they moving? You know, are you giving them options to move into your higher ticket offers that you have? And ideally you do have them. And if you don’t, you know, you should definitely be thinking about that. Even if it’s a $500 offer, $1,000 is totally fine, but you’ll just create a much more profitable business, easier if you’re not just trying to sell, you know, $300 and below products. Now, again, there are exceptions, like, especially in the health and wellness industry. Sometimes you have to go for that volume with low ticket, because that is the space. If you know me, you know, I’m, I never preach cookie cutter strategies. There’s always a way that you have to mold your business to what’s right for your customer and your offers. 

But for the most part, you know, the example I just used of somebody who had the opt-in had the tripwire for 97 and they thought they were going to make a ton of money from it. That was kind of the mistake they were making until they talked to us. Because I was like, you’re, you’re actually doing really well with what you have. And the next thing you have to do is add something on the backend where you can make more profit. And the good thing, like the really good thing is that you’ve added all these people to your list. Like it becomes a snowball effect because all those people now are free on your list. You can market something else to them. If a couple of people buy, you know, it’s pure profit from what you’ve already run. So if you have something like this now existing, that’s a lower ticket offer. I want you to look at, how do you really maximize your strategy so that those people going through it are going through an intentional journey? So even in the product delivery, like if someone consumes one of our products in the backend, we are linking to our client application because for me, that’s the next step for them to go to.

So, even in the actual consumption and delivery of the product, like what is the journey that this person is supposed to go on? Because most likely just giving them this small, low ticket offer isn’t enough to solve all their problems. So what else do you need to do to solve, you know, to serve them and to solve those problems for them. And that’s what you should be looking at and deciding. So looking at that and really trying to maximize your strategy on the backend will help you. The other thing you can do, and the other strategy we’ve talked to clients coming in about and helping them adjust is really playing with the prices. So if you started out like, so we started out with ours is $27 and we’ve raised it slowly up to $47, but you know, sometimes you raise a price $10 and it doesn’t affect your buying percentage at all, but it just gets that cart value a little bit higher.

This is why I said, it’s kind of like an eCommerce funnel because with e-commerce and physical products, what you’re paying attention to is the max I can pay to acquire a customer, is whatever it is. And, you know, I can get as many customers as I, you know, infinity. Essentially not really because of people’s stock and how much they have in, in that they can sell. But, you know, if I have a $30 product and I know my cost of doing business, my cost of producing that product is whatever. Then I can pay $10 to acquire a customer and I’m just ballparking. But for digital products, you don’t really have a cost to deliver it. And so for me, like I can pay $47 to acquire somebody to buy a $47 product because 65-70% of people are taking our upsell.

So I know I can pay $47 cost per acquisition of somebody buying my toolkit because I’m making plenty on the upsells and I don’t have a cost of delivery. Now, if you’re a physical product, do you have a cost of delivery, so you have to lower that cost, but testing your pricing sometimes, like, for example, when I started, I just wanted to pay $27, because that was the price of my tool kit. Well, we’ve slowly raised it and tested it and it hasn’t impacted our sales, but it’s increased our average cart value. So what are things you could do to increase that overall average cart value? That means the average amount somebody’s spending. So if you have, you know, three different products and upsells or four different products and upsells within that funnel, what’s the average amount of money you’re making between all of your sales?

Because some people might spend $27, some people might spend $100. some people want to spend $200 when you put all those together, what’s the average cart value. And how could you increase that cart value? Could you raise your price a little? Could you add an order bump to the order form, which is like a little check box where they could add that to their order, like really looking at that strategy. This goes back to looking at a funnel and just constantly optimizing it. We launched our own self liquidating offer. I want to say two months ago, and we’ve made several reiterations and adjustments to it since then. And we are still doing so, and it’s been profitable and working the whole time. And that’s one of the keys with marketing is like it’s working and it’s profitable, but I still see room for improvement based on data and getting our ideas I have for shifting it or for increasing my cart value and increasing the overall profit I can get from that.

So if you have something or you’re thinking about something right now, like once you put it out there, continually ask yourself, how do I increase that average cart value? How do I squeeze more value out of the money I’m putting into this offer? So that’s what to expect with lower ticket offers, kind of what they’re used for. They should be part of a bigger customer journey. They shouldn’t be your end, all be all in my opinion, unless you’re one of the exceptions, but they should be used for a bigger ticket strategy. They should over-deliver build relationships, build trust with your leads and help you, you know, be a stepping stone in your ladder in that value ladder of offers that you have, if you want support and strategizing one of these for your own business and looking at yours and creating it better or making it more strategic, like we’re really, really good at these and have come up with several funnels for our clients that kind of implement this. So you can go to help my strategy.com to see if you qualify to work with team Hirsh and either a done with you capacity or a done for you capacity. Thanks so much for listening today, guys, and I will see you on the next episode.