High Ticket Commissions vs. Low Ticket Commissions
High ticket commissions vs. low ticket commissions. Does it matter?
Some will say yes.
Some will say no.
What do YOU say?
Well, it depends on what you’re objective is.
You have many options to choose from out in the home based business arena. You’ll find commission points in all ranges.
With my real life high ticket commission example, ONE sale a month generates $3,000. TWO generates $6,000 a month.
With business models utilizing mid range pricing, you’d have to make 10 sales a month at $300 commissions to generate the same $3,000.
With a low ticket product pricing, you’d have to make 100 sales a month at $30 commissions to generate the same $3,000.
Additionally, what I’ve found is that with a mid to low ticket commission product, there’s oftentimes an autoship (meaning the customer has to repurchase every month in order for you to be paid or they fall off the books).
With a high ticket commission product, you’re done and paid upon purchase.
Note: Rather than get all wigged out about direct sales not creating residual income, simply take your larger commissions and go invest them. That’s an easy fix.
Do you think it’s more doable to sell 1, 10 or 100 of something?
Personally, I like the idea of making one sale month vs. 10 or 100 sales a month. Just the thought of having to produce 10 – 100 sales a month is exhausting and doesn’t put me in a good frame of mind.
What would you do if you could generate the SAME income making just 1 sale once a month verses having to make 10 or 100 sales a month? (Same income – different variations of sales needed to acquire that.)
Look at this fun math for income replacement of a $3,000 a month job paycheck.
I’m going to use an example you can all probably relate to because just about everyone I know has bought and/or sold a house before. If not, know that the average commissions paid are 6% and the buyers agent and sellers agent each get 3%.
My wife sold real estate for 13 years and earned a $3,000 commission on every $100,000 home she sold.
I compare THAT to making $3,000 by making 1 product sale online and leveraging automation to do the presenting for me.
So let’s use $3,000 commissions to make my point and comparison for a couple of reasons.
1) It’s a true example
2) Most people would be happy with just an extra $3000 a month and aren’t focused on “millions”. Heck, I talk to a lot of people and they just want security and being in control to ensure that, never mind what an upgraded lifestyle can do for them.
So, one sale a month using my real life example can go along way towards that end and gives them a travel product where they can enjoy resort style vacationing for as little as $398 for the entire week. They get the best of both worlds.
3) $3,000 is equal to or more than most people make a month and this would bring mom or dad home to be with the kids, buy a newer car, buy the house they’ve talked about for years, finally take vacations, pay for college tuition, etc.
In other words, it makes a BIG difference.
Take a look with my real life $3K home based business model. I make $3K for every sale.
1 sale a month is $36,000 a year.
2 sales a month is $72,000 a year
3 sales a month is $108,000 a year
4 sales a month is $144,000 a year (that’s just 1 sale a week)
Now let’s go the OTHER way.
Let’s say you made ONE sale every other month. That’s still an extra $1500 a month that goes into the family. That’s just 6 sales a year.
Just need an extra $500 a month? That’s just 2 sales a year. A year!
It’s the SAME TIME, SAME EFFORT, SAME MARKETING to affect a sale of any kind.
So many people get caught up on JUST the commissions or the cost of getting started and give NO thought to the time, energy, effort, strategy and ad spend to effect a sale.
Most people think it’s harder to make a high ticket sale than a low ticket sale.
Just watch any home shopping channels on TV and you’ll see the perfect example.
During a one hour show, a bazillion dollars are being spent by customers excited about buying! The hosts do the same work for any product. You’ll see the showcasing a $49.97 item just the same as the $4,997 item.
Yes or yes?
People have money and they love to buy. They hate being sold but they love to buy.
With that being said and all things being equal, which would you prefer?
Do the work and get paid $30?
Do the same work and get paid $300?
Do the same work and get paid $3,000?
Well, you may say say:
“Gosh, if it’s the same effort, same time invested, and same marketing strategies but I only have to make ONE sale vs. THIRTY sales to make the SAME MONEY, of course I’ll just do ONE.”
Those are my sentiments exactly. You have to decide for yourself.
All the best,
My wife and I … um.. somewhere in Mexico
Home Business Coach and
PS: ONE commission, ONE sale, pays for a couple vacations. Just ONE.