The 4 Things You Need To Know Before Creating High Ticket Digital Products
High ticket digital products are incredibly lucrative and easy to sell to the right audience. Here is what you need to know about high ticket digital products.
Hi Trish Davies here, founder of Build Your AU. When you start a new digital product, you may think it will be easy to get people to buy from you. For many businesses, this is true. However, when you start looking at paying customers things get more complicated.
There are four key factors to consider before creating a high ticket digital products that will help your business succeed and maximize profits. They are –
- Customer segments
- Targeting customer segments with limited budgets and resources
- Pricing strategy and cost-cutting tactics
- Scaling up your sales team or hiring one
4 Things You Need To Know Before Creating High Ticket Digital Products
#1: Customer Segments
Making sure that you are able to target your customers is crucial. More than likely, you will have a variety of different customer segments in your target audience. You'll need to make sure that you have the right customer segments and understand their buying behaviours in order to be successful with a high-ticket digital product.
#2: Targeting Customers with Limited Budgets and Resources
Your ability to target customers with limited budgets and resources is critical if you want to sell digital products at a high price point. You'll have to analyse what your potential customers like, what they're looking for, and where they spend their money so that you can create a product specifically for them.
#3: Pricing Strategy
Pricing strategy is important when it comes to selling a high-ticket digital product. In order to find out how much your potential customers are willing to pay for the product, you'll want to figure out which pricing strategy will work best for them. The most important thing about pricing is understanding who your competition is and how much it costs them as well as understanding how many people would actually buy the product before deciding on a price point.
#4: Scaling Up Your Sales Team
When scaling up your sales team you must have the right people on board. There are many factors to consider such as training, the target audience, the products that you sell.
The Importance Of Customer Segments
Is your business focused on one niche market? If so, it's likely that you are able to produce a high-quality product without a lot of complications. In fact, many companies with a single focus and limited resources have been able to achieve great success in spite of the complexity.
However, if you are looking to produce a high-quality product that can help your business grow and reach millions of customers, customer segments will be key.
A customer segment is defined as an individual or group of individuals who share similar characteristics. Ones that make them appropriate targets for your digital marketing efforts. Your business needs to create different segments so they can be targeted with messaging specific to their needs.
For example, if your company is producing a fitness app for millennials, you would need to create different segments for this audience. Those who want information about workouts; those who want information about nutrition; those who want workouts with modifications for their injuries; etc.
When you create these different segments, you can then go after them with different messages. Messages tailored specifically for them through digital marketing campaigns.
In addition to targeting specific customers through customer segments. Creating ones within your target market will allow you to determine what the market is asking for and how much it's willing to pay.
Targeting Customers With Limited Budgets And Resources
You're just starting out and you don't have access to a big budget or tons of resources. Therefore you may be thinking that there's no way to reach a lot of people. That doesn't have to be the case. There are many ways to target customers with limited budgets and resources.
One option is using an affiliate marketing program like ClickBank. This will allow you to earn commission on sales made by your affiliates. Affiliates can share your product with their audience through email marketing and social media marketing campaigns.
Another alternative is using paid advertising such as Google AdWords or Facebook Ads. These options can cost less than $100 per sale, but they do require some upfront work and time investment in order to get up and running.
However, if you want to run paid advertising on a large scale, something like Amazon Affiliates is beneficial for scaling up your sales team or hiring an outside agency for the project.
High Ticket Digital Products – Pricing Strategy And Cost-Cutting Tactics
When you are looking at pricing, it's important to consider the lifetime value of your customer. This is how much you can expect them to spend with your company over their lifetime, including the cost of acquiring new customers.
This is a tool many businesses use when they are considering pricing for a digital product.
The reason this is important is because it helps you decide whether or not it's worth it to spend an extra $10 on each sale in order to increase your lifetime value. If you were looking at building a digital product that would cost $50,000, you might be able to sell more than 5,000 units for that amount.
In order for your business to recoup the investment, you would need about 150 units. A lot of companies have found success in selling products priced under $10. Then earning profit from the average customer who spends more than $10 on each purchase.
Another way some businesses cut costs is by choosing not to hire employees for their digital product launches. Instead of hiring salespeople and team members, these companies let customers do the work themselves. They leverage automated chatbots or email marketing campaigns sent out via automations software like InfusionSoft.
Scaling Up Your Sales Team Or Hiring One
When scaling up your sales team, you have to be strategic about it. Make sure you're hiring the right talent for the product and that they are trained correctly to handle customers that are in this stage of growth. This is where customer segmentation comes into play.
However, before scaling up your sales group, you need to decide what type of product you want to sell. What kind of customers do you want to target? It would be helpful for your business if you could clearly identify who these customers are and what their needs are before scaling up your sales team.
Another factor to consider when scaling up your sales team is pricing strategy. If a product is very low priced or has a low barrier-to-entry, it's easy for people to buy. However, those customers may not be loyal enough because the value they receive is not high. Or they don't see any reason why they should buy from you again (and again).
Therefore, it's important that you create high ticket digital products with great value and utility so that people will want to purchase from you again in the future.
High Ticket Digital Products – Online Courses
I have shared with you some insights on high ticket digital products. Online courses are perfect examples of high ticket digital products. For more information check out my Build Your AU program.
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Trish Davies
Build Your AU
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