In this guide to high-ticket sales, we’ll show you what high-ticket sales are and why they are so unique. Then, we'll show you why charging more can be better for both you and your customers.
And we'll give you a 7-step guide for mastering high-ticket sales.
Are you building a high-ticket course or community? Try G2's top-rated community management software free!
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What are high-ticket sales?
High-ticket sales are the process of selling a high-ticket product or service. Unlike mass-market sales, which focus on the lowest price, sales, and buyers who are looking for a bargain, high-ticket sales appeal to a more discerning buyer--no matter the industry.
For example, look at the brand Tiffany & Co. They unapologetically sell expensive jewelry. Look at their ads and you'll rarely see them talk about "sales" or "discounts."
Tiffany's needs to be expensive, because their brand is high-end. In fact, in 2017 they released a line called "Everyday Objects." It included a $1,500 gold paperclip and a $1,000 silver soup can.
If you're thinking, "Who the heck would pay $1,500 for a gold paperclip," then it's not for you.
Look at brands like Rolex, Bentley, Gucci, or Ferrari. They ain't discounting.
These brands know that high-ticket sales work on exclusivity. Unmatched quality.
That's why people buy.
But high-ticket sales aren't just for Ferrari dealers. We see them in other areas like luxury vacations, high-end experiences, and premium events. In any arena, there are thousands of regular seats and a few box seats.
The lesson? In any part of the economy, there are some people who are willing to pay more than average for exclusivity, access, higher quality, or a certain brand. Now the trick is to make that work for you.
High-ticket sales & digital products
With the rise of the creator economy, we've seen more and more high-ticket sales go online. The internet has created an incredible opportunity to create and sell digital products with incredible margins.
And many creators have seen that racing to the bottom in price IS NOT a winning strategy.
In fact, just like Tiffany's diamonds, paying more for a digital product can signify higher quality too.
But it can also create accountability and dedication by the person paying for a transformation and experience. And for digital creators, high-ticket sales mean more profitability and the revenue to do the work they were called to do.
One cool example is Danielle Leslie. She created a high-ticket course called #CourseFromScratch that she sells for $2,497. And she's helped thousands of others launch successful online courses too.
High-ticket sales can unlock incredible results.
Why you should sell a high-ticket product or service
You'll make more
You might think, "Duh. Charging more equals making more."
But we can know this instinctively and still think the wrong way. If your revenue model requires selling millions of something to succeed, here's a tweak. How could you create a thriving business by only selling thousands? Or hundreds?
If you sell something for $5, you need to reach 200,000 customers to have a million-dollar business. If you sell something for $1,000, you can get to a million a year by selling 1,000.
Creating offers like a high-ticket product or even high-ticket coaching lets you make the money you need with way less people. Then you can focus on making sure those who do come are successful. It’s a win-win for both the entrepreneur and the customer.
You can use value-based pricing
Too many creators and businesses start by pricing things according to what they put into them. It’s a common rookie mistake, and it’s called the Labor Theory of Value.
For example, if it takes you three hours to make a course and your day job pays you $30/hr, you should sell the course for $90… right?
NOPE! Value-based pricing means pricing according to what a product is worth to a customer, not the time it took to create it. If your course helps a business owner generate an additional $150,000 in revenue this year, then it’s worth much more than $90 to them.
People will value it more
Would you believe that paying more for a product can lead to better engagement? In the psychology of consumption, people are more likely to use a product if they’re aware of a higher cost.
People value what they pay for thanks to something called the “sunk-cost effect.” When people put money into something, they’re more likely to use it. Or–in other words–people value what they pay for.
Your customers will experience more transformation
What if we told you that not charging enough can hurt your customers?
It’s counterintuitive, but paying more for something helps someone value it, which helps them use it, which helps them transform. And that’s why pricing something too low can actually hurt your members.
Do you value Tiffany's jewelry more? Or cheap, costume jewelry?
It's the same principle with online courses, communities, services, and digital products.
When people pay more, they increase their chances of success.
There has to be some kind of a commitment if you're going to have a vibrant community. People who pay, pay attention. If people pay, they implement what you say, they take action and change their lives. - Dan Miller - 48 Days Eagles
Examples of high-ticket sales on Mighty
When people do high-ticket launches, amazing things happen. You can find other examples on the internet, but here are some of our favorite examples on Mighty:
- A membership site added $40,000 in ARR with a high-ticket launch to 100 members.
- A podcaster and author sold 5,000 seats to a $977 course in 10 days.
- A community launched a 13-week add-on, high-ticket course and saw $100k in new revenue within 2 months.
- A personal finance community generated $130K in five days with their latest course.
How to master high-ticket sales
Think about this. Most human beings will buy something that's a high-ticket item at least once in their life.
It might be...
- The dream vacation they saved for.
- An engagement ring or fairy-tale wedding.
- The dream camera to capture their memories.
- An in-ground pool to make the backyard an oasis.
The question isn't, can I sell a high-ticket item? It's, "Can I find the right high-ticket offer for my ideal customer, member, client, etc.?"
After all, if you're broke, Tiffany's couldn't spend any amount on advertising to convince you to pay $1,500 for a paperclip when you can't afford it.
The trick is to match the right offer with the right buyer. Then it's magic.
And that's the trick to high-ticket sales. Not high-pressure sales tactics to get people to buy something they can't afford. Spend the time to match the right offer to the right buyer, and you'll make magic. Mix it with a community flywheel and it will sell itself. (more on this below)
Here are the steps you can take to get the high-ticket sales right:
1. Understand your Ideal Member
Every product needs an ideal member, user, or customer–but it’s even more crucial for high-ticket sales. Nailing this is the foundation of everything else.
We learned this lesson at a recent ConvertKit conference that Mighty sponsored. One of the sessions was led by Tim Grahl--CEO of StoryGrid--who told the story of interviewing dozens (and eventually hundreds) of his ideal customers. Finally, it got to the point that he could jump on a call and say, "Let me guess. This is what you feel..."
And the shocked person on the other end would say... YES!
Tim gave us a masterclass in finding the ideal customer or member.
You obviously need someone who can afford what you’re selling, but you also need someone who sees the value and is willing to spend to get it.
And the best way to do this (that too many entrepreneurs skip) is to actually ask them.
You'll learn...
- What their pain points actually are (not what you guess they are).
- If they're willing to spend the money.
- How to position the offer.
- And what success would mean for them.
2. Get the high-ticket psychology right
We opened this post by talking about why people buy high-ticket products. And those reasons are very different from the race-to-the-bottom of discount merchandising. At the end of the day, these people are looking for more than a sale.
- People who buy Bentleys and Rolexes pay for status.
- People who buy high-ticket courses might pay for a transformation they can’t find anywhere else.
It’s important to understand why people will pay for your high-ticket product.
3. Qualify leads
Somewhere along the line, you make sure you’re selling to the right person. For example, with a high-ticket course this could be a person who needs the transformation you’re selling and who can also afford it.
Say you’re selling a social media marketing course, you might want to sell to businesses that already have a product and revenue.
Lead qualification for high-ticket sales isn’t just about making the sale–it’s also about ensuring your members have the right conditions to be successful. Because successful members will become your supers, they’ll tell the world.
You want them.
4. Build the right offer
Just because you've done the background work doesn't mean your high-ticket sale is made. You still need to build the right offer.
And yes, if at all possible, you should be building an offer to fit your Ideal Member. The offer itself needs to speak exactly to the growth point your customer or member is searching for.
It's always easier to create an offer that fits than to try to get your customers to buy an offer that doesn't.
5. Create members, not customers
One thing we're passionate about--if it fits--is creating members.
Customers are transactional. Members belong. And that’s what makes online communities so beneficial to businesses.
Imagine you sell high-end BBQs. Which is going to help you sell more? Optimizing a funnel perfectly with Facebook ads? Or creating a membership site where grillers can come together, share ideas, recipes, and talk about the product. (Of course, you might do both.)
Creating an environment where people feel they belong is what makes high-ticket sales work. That's community-led growth. Or, McKinsey calls it the community flywheel (and named it the top business model of the 2020s).
Repeat business is the bread and butter of so many thriving brands. And creating a membership can create repeat business around your high-ticket sales.
Again, this needs to fit your Ideal Members and their journey.
6. Exceed expectations
Of course, when you deliver a product or service, it’s important to make sure you exceed expectations too. The ability to create a “wow” factor is what creates the all-powerful word of mouth and drives member-led growth.
With memberships, we like to think of "the best year ever." What is it that will help your Ideal Member have the best year of their life, with results and transformation they've never experienced before?
That's what you should build. And that thing--whatever it is--is perfect for high-ticket sales.
7. Choose the right business model
It’s so simple, but true. Mastering high-ticket sales isn’t about creating the perfect sales letter or copy. It’s not about setting fake deadlines to force “urgency” or pressuring your leads. That’s the funnel approach to high-ticket sales, and it’s becoming less and less effective.
The way to master high-ticket sales is to choose the right business model to begin with.
And that makes selling a high-ticket product or service much easier. We're big on creating community flywheels. But ultimately you have to find what works for your brand.
High-ticket sales and your business
If you've done everything right from the steps above, how do you structure a high-ticket business?
There are a few different ways, but let's talk about two of the most common models for selling high-ticket items and the pros and cons of each:
The funnel
A funnel has been the dominant sales model in marketing both physical and digital products for a long time. It focuses on moving customers through four stages: awareness, consideration, conversion, and finally loyalty (which creates repeat customers and word-of-mouth promotion).
A funnel makes it easy to reach mass users through paid social media and then to convert a small number of them into an offer. But if you’re running a funnel in the 2020s, you’re engaged in a mass, high-stakes competition with similar brands AND customers are frankly aware of what’s happening.
We all know the feeling of being sold to–and the “this is your last chance” messages don’t work like they used to.
Brands liked funnels because of their predictable revenue. For example, if you know you have a 2% conversation rate and you push 20,000 people through your funnel, you can be reasonably confident that 400 people will buy.
Funnels have their place, but there’s a way better method.
What is a high-ticket sales funnel?
A membership site sales funnel moves your ideal customer through a series of steps, losing people at each one until you serve up an offer to the percentage of people who make it through.
The community flywheel (better)
The community flywheel is an emerging business model that focuses on getting your supermembers into community with you and letting the conversations and member engagement build the brand and drive sales. It was McKinsey that identified the community flywheel as the best way to build a brand in the 2020s.
It comes down to this. Your goal should be to constantly be converting your subscribers, followers, customers, or whatever, into members.
All those things are transactional. But members belong. Businesses who choose a member-led approach see a huge benefit in growth.
According to McKinsey’s study, flywheels require five things: Entering into community with your members, choosing “hero” products, bringing in a powerful brand story, and co-creating content with members, all of which lead to effortless transactions.
Unlike funnels, community flywheels can experience rapid member-led growth as your supers become your biggest promoters. AND unlike funnels, a community flywheel is a content engine that you don’t have to run (at least not entirely), since your members show up and create content and conversation for free–or even pay to do it.
If you’ve experienced thriving brand communities, you might have experienced a community flywheel.
For example, the women’s apparel brand Oiselle created a member community, Oiselle Volée, as a place for runners to come together and get inspired. The result is a community of 3,500 members who show up, support each other, create content, learn, and even generate new product ideas.
A community flywheel is the secret to building a thriving member-led business, and you can unlock it by giving your members something to belong to.
Funnels vs. Flywheels: Which is better for high-ticket sales?
What happens to prospects who don't buy?
- Flywheels: Members stay in your ecosystem and buy when they’re ready OR find other offers they love.
Who does the selling?
- Funnels: You do.
- Flywheels: You and your members are both involved, thanks to member-led growth and word of mouth.
How does the sale happen?
- Funnels: Through a high-pressure offer or slick marketing copy.
- Flywheels: Effortless sales because your members are in your ecosystem ready to buy.
Customers move in a…
- Funnels: Straight line (until they drop off)
- Flywheels: Circle (staying engaged)
How do additional sales happen?
- Funnels: Upsells or finding new customers
- Flywheels: Engaged members look for more products and services (sometimes they even ask for them).
How does customer acquisition work?
- Funnels: Keep spending money to fill the top of the funnel.
- Flywheels: Member-led growth means that it grows organically through word of mouth.
Conclusion
We hope this post has you ready to rock your next high-ticket sale. If you get the fundamentals right, it can be a breeze. The result is 6-figure launches and comfortable balance sheets.
But remember, no amount of marketing or funnels will fix the wrong offer to the wrong person.
If you're looking for a place to build and sell high-ticket products, come build on Mighty Networks! It's got everything you need to sell high-ticket memberships, courses, events, coaching, masterminds, and more. You can bundle any of these to build a business that fits your brand.
And it's all on a platform G2 has ranked as the best online community management software.
Try it free for 14 days!
A few more FAQs
What are high-ticket items?
High-ticket items are products or services that have a large cost to purchase but are really valuable to the person buying. Unlike lower-priced products or services you pay for all the time, people usually buy high-ticket items infrequently (e.g. a car, an all-inclusive vacation, a house). This means that high-ticket items are special, and we often value them more because of the high price we pay for them.
Usually, we think of a high-ticket item as $1,000 or more.
By the same logic, a high-ticket product costs a lot but offers a lot of value. This is true for the examples we gave above, like your bike or that luxury vacation. But high-ticket products are also common online, as people create high-ticket digital products to share what they know. More on this in a minute.
What are some examples of high-ticket items?
- houses
- cars
- boats
- degrees
- vacations
- retreats
What are high-ticket digital products?
A high-ticket digital product is a high-ticket item that’s delivered in a digital form; examples of digital products include a high-end digital course, a coaching package, or a high-end virtual event. There’s a huge explosion of tech solutions and platforms for delivering digital products and services–the Digital Media market is projected to hit $627.7 bn in 2023. As a subsection of this, high-ticket digital products are growing fast too as more and more of us are comfortable with paying for high-end digital experiences or personal transformation.
High-ticket products in the digital space can also create a more profitable business for the creator or entrepreneur. A lot of online creators are trying to monetize by coming up with a cheap offer and selling thousands of them. This leaves them scrambling to get people in the door. And even if they do end up with the thousands of customers they need to make a living, they’re stuck providing customer service to those thousands of people, which they can’t afford to do because they charged so little.
High-ticket digital products fix this problem by providing stable revenue from a smaller customer base.
