High Ticket Vs Low Ticket Digital Products: Which Is More Profitable?

I weigh up the pros and cons of high ticket and low ticket digital products and share my recommendations on what type of product to create first.

One of the most common questions I see people asking when they are starting to create digital products is whether they should create a low ticket or a high ticket digital product.

Today you’re going to get very clear on where each of these types of products should be used and why.

Today You Will Discover

• The pros and cons of high ticket and low ticket digital products
• My recommendations on what type of product to create first

My Name is Kath Kyle.  I lead the Hustle-Less, Manifest-More Movement.

I help entrepreneurs manifest more revenue by bending their belief system, practicing Success Rituals, and creating a movement using my proven Dream Business Framework©.

What Are You Struggling With?

Are you stuck on deciding what kind of digital product to make for your business? Or maybe you’ve already created a product but didn’t get the profit you expected from it?

Let me know by leaving a comment on my blog, YouTube channel or send me a DM on Instagram @kathKyleOfficial.

Let’s change your struggles into solutions now…

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What Is A High Ticket Product?

A high ticket product means a product that has a high price point. High ticket products are usually planned and saved for in advance and customers will usually take a long time to decide whether to invest in a high ticket product.

What Is A Low Ticket Product?

A low ticket product means a product that has a low price point. Low ticket products are usually impulse purchases and customers don’t usually plan these types of purchases or have to save up for them for any length of time.

Pros And Cons Of Low And High Ticket Products

Although you will always find people keen to try and convince you to create low or high ticket products, both types of products come with advantages and disadvantages.

Here are the pros and cons of each type of product:

Pros Of High Ticket Products

• Profit margins are usually very high
• You don’t have a high volume of customer support to worry about
• Customers who buy high end products are usually much easier to work with and complain less
• Each sale can give your business a substantial boost and give you extra cash reserves to grow the business much more quickly.

Cons Of High Ticket Products

• It requires a lot more effort in terms of marketing and sales to sell high ticket products and may require a lot more time and individual attention such as 1-1 sales calls
• Sales can be few and far between
• Your business can fail or grow based on the back of just a few sales which can be very risky
• Advertising costs are very expensive to reach customers who will buy high ticket products
• You have much less customers meaning that you have less customers to buy your future products
• You will put off a lot of potential customers as they won’t be able to afford your services
• Creating high end products can take a lot more time than creating low ticket products
• It is much harder to test high ticket products to see if they will be successful as so few people will want to invest in them
• It takes much longer to warm your customers up because they need to think about whether to invest in your product, and save up for it
• It will take much longer in the customer buying cycle before your customers buy from you
• It requires you to be much more confident to sell high ticket items
• As it will be harder for you to start making sales, you won’t get immediate feedback and can’t make a decision very quickly about whether to continue selling this product or whether to create a new product
• If you don’t see very many product sales you might lose confidence in your product and give up on your business entirely

Pros Of Low Ticket Products

• It doesn’t take as much effort in terms of marketing and sales to sell low ticket products and sales can be easily automated
• Sales can come thick and fast
• Your business will be much more stable because you’ll have many sales coming in from many different people – meaning less risky
• Advertising costs are much cheaper to reach customers who will buy low ticket products as there are more of them
• You have more customers meaning that you have more customers to buy your future products
• You will attract a lot more customers as more people will be able to afford your products
• Creating low end products can be very quick and easy
• It is much easier to test low ticket products to see if they will be successful as so many people will want to invest in them
• It doesn’t take very long to warm your customers up because they don’t need to think about whether to invest in your product, and save up for it – meaning a lot of customers will invest in your product straight away even if they don’t know you yet
• The customer buying cycle before your customers buy from you is very short so you can see a return on your investment straight away
• It doesn’t require you to be as confident to sell low ticket items
• As it will be easier for you to start making sales, you’ll get immediate feedback and can make a decision much more quickly about whether to continue selling this product or whether to create a new product
• It will be much easier to sell your product much more quickly which will boost your confidence, and you’re much more likely to continue to commit to your business

Cons Of Low Ticket Products

• Profit margins can be high if you use organic methods, but they are not usually very high when you start paying for advertising
• If you start selling a lot of products, you’ll need to invest in a customer support assistant as your company emails will be too high for you to manage on your own (but in my opinion that’s a good problem to have)
• Customers who buy low end products can complain more and ask for more refunds
• Your business may grow much more slowly if you only offer low ticket items

The Front End Vs The Back End

When deciding what product to offer for sale, it is important to understand the difference between the front end and the back end of your business. Failing to understand these lessons can mean the difference between a business that succeeds or fails, so it’s very important to grasp these principles.

What Is The Front End Of Your Business?

The front end of your business is what prospects see before they buy. It can include all of your free content such as blog posts, podcasts, videos, opt-in freebies, emails, and social media posts. You will also offer your prospects something that they can buy when they first encounter your business.

This product will often be your core product – the product that you are most well known for. This product can define your whole business so it’s a good idea to choose a front end offer that defines your business well.

The product that you choose to help you acquire a customer should be something that has been proven to work for other businesses, but it should have your unique twist on it – your USP.

Your front end product is your most important product by far, and you might need to test many different products before you find something that sells well.

Although your front end product will be your highest selling product by far, it will probably be your least profitable product if you are paying advertising costs to acquire a new customer

What Is The Back End Of Your Business?

The back end of your business is what additional products your customers see for sale before they buy for a second time.  

It can also include all of your free content such as blog posts, podcasts, videos, opt-in freebies, emails, and social media posts as it’s important to keep your customers engaged with your brand.

Your back end products will not be what you are most known for, but it often helps to take your customer on a journey to get a complete solution to their problem. 

Your back end products can either involve offering your customers more of the same thing they’ve already bought, but just to give them more of it, or more support with it. 

Or you can offer your customers additional products that help them solve their problems from different angles.

You don’t have to find a unique USP for your back end products because your customers already know, like, and trust you so they are much more likely to buy any other products that you offer.

Your back end products should give good results to your customers but they do not need to be constantly tested as long as they are selling well enough.

Your back end products will give you the highest amount of profit because you don’t need to pay for advertising costs to acquire a customer.

What Type of Product Should You Start With?

Your only job when you start a new business should be to find a product that you can offer on the front end to generate a large group of customers for your business

When you have started to build up a database of customers for your business, you can start to offer them additional products on the back end to boost your profits

If you price your front end products high you will attract a very small pool of customers to your business.  This is a risky business model because it depends on either word of mouth marketing, or a certain advertising cost – but if either of these changes, your business will likely fail because you don’t have enough customers on the back end of your business to keep your business profitable.  You are not as likely to be able to scale your business if you can’t continue to find high end customers on the front end of your business.  

If you price your front end products low you will attract a much bigger pool of customers to your business.  Your business will be much more stable because you’ll be able to acquire new customers a lot more easily and cheaply, and you’ll have a big pool of customers on the back end ready to buy your other products. 

Therefore I recommend that you start your business by offering low ticket products on the front end. 

Only when you’ve found a product that is selling well on the front end should you move on to creating more products on the back end for the big group of customers that you already have in your business.

How To Scale Up Your Business

When you’ve got a big group of customers that have got results and loved your front end product you can start to create other products to offer them. 

Your back end products should be either higher ticket products, or a recurring payment style product which is the best way to keep your business stable.

You should focus all of your efforts on selling your front end product when you first start your business, but after it’s selling well you should turn your attention to creating a suite of new products on the back end.

For my business, Green Thickies, my front end product is my 7 Day Detox.  

This product is similar in nature to things that are already selling well. There are thousands of 7 day detoxes already on the market because they are one of the most popular weight loss products.

My USP is that my 7 Day Detox is based on Green Thickies. 

Green Thickies has its own USP which is a formula for creating homemade healthy weight loss shakes that provides all nutrients, is the right number of calories for weight loss, tastes delicious, is quick to make, and the ingredients can be found locally.

This is my highest selling product and it is the only product I offer on the front end.

On the back end I sell other recipe books, bundles and my weight loss system which is a membership that offers 12 months worth of meal plans.

I have also offered further high ticket items such as coaching.

Next Steps

I was just wondering, have you been struggling to get your online business off the ground because you’re not sure what to offer for sale?

Or maybe you struggle to take time off work because you’re a coach, freelancer, or service provider?

Do you have expertise, or knowledge in a particular subject area that you know could benefit other people?

Have you ever thought about creating an online business selling digital products?

I’ve built all of my businesses on the back of selling digital products and they give me high revenue and a great amount of freedom in my life to look after my kids and enjoy life. 

Are you interested in creating digital products but you don’t know how to get started, you think it’s too time-consuming and you’re scared of the tech?

What if I told you that you could create your first info product in just 3 hours using FREE easy-to-use tools, and even have students using it in less than 30 days?

I am walking you through all of the steps to creating your 6-figure digital product in 30 days, even if you don’t have an audience, an idea, a team, and are terrified of tech, using my proven 4 Step “Fill In The Blanks” Profitable Info Product Process inside my signature course, Dream Business Product.

Click here to discover more about Dream Business Product

And if you want me to walk you through the exact steps to coming up with a digital product idea, deciding what type of product to create and figure out what price to charge, you’re going to want to take my masterclass. 

This masterclass worth $77 is called 100K Product Creation and it’s part of my Dream Business Product program, but for a limited time only I’m giving you free access to it.   

The information that I’m sharing in this action-packed masterclass is so valuable you are going to want to take notes.

Click here to get FREE access to my 100K Product Creation Masterclass for a limited time only

Now it’s your turn to go and put your STAMP on the world.

Conclusion

Business is a massive passion of mine, and I have many more posts and videos to help you reach your goals so stick around and see what else I can help you with by checking out the links below. 

Related Resources You Will Love

• High Ticket Vs Low Ticket Digital Products: Which Is More Profitable?
• How To Make 6 Figures Online (How I Did It Selling Low Priced PDFs)
• 6 Common Mistakes Selling Digital Products Online And How To Avoid Them
• 30 Day Digital Product Creation Master Plan To Create Products That Sell

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