What to Do If You’ve Built a Low Tier Offer but Are Getting No Money?
Mar 24, 2021
Do you have a low-priced offer (aka a “tripwire” offer)?
It’s something that sells for less than $100 and is meant to give paying clients a sample of your expertise.
But is this low-priced offer actually making you enough cash?
The problem is that unless you have a high-ticket offer to sell on the backend (ex: a $2,500+ coaching program, mastermind, service or seminar) it’s impossible to earn enough with a low-priced offer and keep your business moving forward.
The thing is, a lot of the “gurus” taught our industry to start with a low-price offer to get going.
And while that worked years ago, it’s no longer valid.
Why?
Because ad costs have skyrocketed.
So, to recuperate your ad spend, you’ll need to build that big ticket offer that you can upsell. That’s where the money (profits) starts to come in.
Now, don’t get us wrong. You do need to have a low-price offer as part of your business model. But the catch is that the low-priced offer should come AFTER you have something more expensive to offer so you can hit cash flow (you’re actually making a consistent profit).
No cash flow, no business!
So how do you get to a point where you’re hitting a consistent cash flow? Well, there are 3 strategies.
Here are 3 strategies that will help you change all that:
#1: Add More Value
First, if you have a low ticket offer and you really want to start generating more cash flow in your business, you can add more value to that offer so that you could justify raising the price.
For instance, many of our fitness clients start out with simple programs that are really just a system of how to think about food, fitness, and feeling good. These programs aren’t really high priced offers until our clients decide to offer more access to themselves. By adding on more value, in the form of access to group coaching, our clients are able to raise the price.
So, the best way to add more value, and not eat up all your time, is to offer Group Coaching Calls. This will allow you to scale your coaching (reach more people) and increase the value and price of your offer! It’s a win win!
#2: Add Profit Maximizers on the Backside
Second, the easiest (but most costly) way to flood your online expert brand with fresh leads is to run ads.
However, if your offer is under $100, then you’ll probably end up spending that (or a whole lot more) on ads. So you’ll be losing money day by day. Which simply won’t work.
What you want to do is add what we call ‘profit maximizers’ (or upsells) on the backside of a low ticket offer.
So, if you spend $150 to get someone to buy your $47 low-price offer, but they buy the $500 course you offer as the upsell, and you get 33% of your buyers to take it, you start to make a profit.
- $150 x 3 to acquire 3 buyers (Ad costs) = $450
- 3 sales @ $47 = $141
- 1 sales @ $500 = $500
Sales ($141 + $500) - Ad Costs ($450) = $191 in profits!
#3: Extend the Duration
The third thing that you could also do is extend the length of your course.
For example, you could convert your three-week program into a three-month transformation program. So it's no longer just this little product…now it’s a memorable lifestyle change!
And when you do that, that requires a high ticket offer. That's something that someone will need to be fully ready to invest in.
If they want that result and they want that transformation, they'll be willing to invest in that process.
It's just a bigger promise, more results, and a longer duration of time. That allows you to start charging over $2,000. That's going to help you start generating a lot more money so you can start things up without breaking a sweat.
Need help mapping all this out?
Click here to check out the 8 steps to building a high ticket online coaching program.
It'll help show you how to be more profitable as an online business and help you get started the right way.
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