You may have heard the saying…”it’s just as hard to sell a $27 digital product online as it is to sell a $1000 product”
While that is not ALWAYS true and is definitely NOT the way to think about your business, you typically DO want to have high-end products in your portfolio and so it is important to think about digital products to sell online that you can price at more than $1000
Why is it important to have high-end products?
- Every viable market you enter will have a range of buyers, some who will only buy intro-level, low-cost products (tire kickers), but will also have highly motivated buyers who will pay much higher prices to help them reach the life transformation they seek – if you don’t fulfill it, someone else will
- Serving the higher-end of your market is easier than serving the lower-end. The reason is that those willing to pay higher prices for more in-depth products are serious, they are self-starters, and they are already sold (predisposed) to you, your business and your products so they will often be much easier clients to deal with
- Higher profit means you can reach a broader market. The simple math goes something like this…if it costs you $2/lead to reach your audience and you convert 4 out of 100 leads into customers, your customer acquisition cost is $50 per customer. With a $27 product you will lose money which means you have a limited ability to reach your market. With a market where you sell 75% low-end products and 25% high-end products (assuming the same conversion – so 3 of your sales are $27 while 1 is $1000) you are now sitting with a very nice profit margin (more than 80% to be exact). What this means is you can place ads all day long (even paying more for those ads if necessary) and scale your business MUCH larger and faster
- Gives you room to scale. Many entrepreneurs start their own business so they can eventually scale and have more time freedom and financial success…that is ONLY possible if you build a business that scales otherwise YOU will always be the critical path and that simply means you have created another JOB for yourself rather than a business. With high-end products you can truly build a business
- Having high-end digital products to sell online is a primary method of branding yourself one of the top players in your market…not only will this get you more attention, it gains you credibility and will improve your conversions.
Ok, so now that we understand the importance of having your own digital product to sell online that are high-ticket (over $1000 in this example), what are the best types of niche digital products that will get you there?
3 EXAMPLES OF HIGH-TICKET DIGITAL PRODUCTS TO SELL ONLINE
While there are many examples of high ticket digital products to sell online, the 3 we have experienced the most success with are membership (continuity) sites, software and coaching programs/events.
Here is a closer look at each of these digital product types.
Membership Sites (Also Known As Continuity Programs)
Membership sites define a method of payment that recurs multiple times, typically for the life of the customer and are billed at regular increments (most commonly monthly, quarterly or annually). Membership sites contain many types of digital products including video content, written content (manuals, pdf’s, guides, summary sheets, etc…), audio content (archives of audio interviews or podcasts for example) and often also include private discussion forums where the membership site owner and other members can discuss or ask questions about their specific niche market. Some of the keys to running a successful membership site are identifying the strong desire for ongoing information (multiple training, ongoing assistance, frequent updates, access to current information, etc…); a capability to set up flexible recurring billing policies and charge a customer’s credit card accordingly; the ability to “wall-off” content (potentially by membership level) so that your content is protected and available to paying customers
Membership sites do require frequent updates, maintenance and attention – but given the right topic, is a very attractive high-end digital product to sell online that can easily bring you $1000 or more
Software
Software is another example of a high-end digital product to sell online that can range from $100’s well into the $1000+ range. Software today can often be sold as hosted (or Software as a Service) where you bill for use on a monthly basis and maintenance and updates of the software are well in your control as they are hosted where you have full access.
The key to success with software is to understand how to provide a very high-value experience where you can shorten or simplify the route of your customer toward achieving their desired outcome. This often takes a very deep understanding of your market to get right, but starting with something and working through iterative approaches is a great way to get immediate market feedback.
Digital Courses Or Programs
We tend to call these the “bread-and-butter” digital products as they typically make up the majority of the sales and value in a digital entrepreneur’s product portfolio.
With this class of digital products to sell online we include digital video courses, home study courses, digital product bundles (manual, online video course and coaching); personal and group coaching and of course, live events or live events that have been recorded and turned into evergreen products.
Digital entrepreneurs from Grant Cardone to Frank Kern, Jeff Walker to Eben Pagen all have $1000 + digital training programs they offer to their motivated niche markets often offering multiple options from static programs or courses at $1000 to $10,000+ private coaching or inner circle programs.
In each niche market there are opportunities to identify demand for one or more of these high-end digital products to sell online. Often the choice comes down to what type of business you want to build (beyond a basic ebook or affiliate marketing online business which you may have already built online)
Understanding each one of these business models at a deeper level is necessary so you understand the motivation/goal; operations and ultimately the structure that is involved in setting up these powerful niche businesses online.
Have a question about launching your own digital product to sell online – regardless of whether you are just getting started or are looking to move into high-ticket offerings, head over to Information Marketer’s Zone where our detailed methods, experiences, tools and help are provided so we can turn you into the next online digital entrepreneur as we’ve done for so many others.
