High ticket digital products are online products or services that are priced at $1,000 or more. They cater to a specific niche audience and provide high value and transformation. The high price point reflects the amount of time, energy and expertise required to create these comprehensive products.
Why create high ticket digital products?
There are several key reasons why a business may choose to develop high ticket digital products:
- Higher profit margins – with lower volume but higher prices, profit margins can be significantly higher than lower priced products.
- Attract premium customers – customers willing to pay higher prices tend to be more invested and loyal to the brand.
- Develop authority – higher pricing reinforces the depth of knowledge and expertise you offer.
- More capital to reinvest – with higher revenue per sale, there are more funds to reinvest in growing the business.
What types of high ticket digital products are there?
There are many different types of high ticket digital products and services on the market today, including:
Online courses and coaching programs
Comprehensive online courses and coaching programs are very popular high ticket offers. These provide in-depth training, expert guidance and community support. Examples include business coaching courses, health and fitness programs, and skill development courses in areas like writing, design, and marketing.
Software as a Service (SaaS)
High value software tools and platforms fall into the high ticket category. These offer robust functionality, integration, analytics and great customer support. High ticket SaaS products cater to businesses and freelancers. Examples include SEO tools, CRMs, payment solutions, feedback management tools and social media management platforms.
Member communities and masterminds
Paid access to an exclusive community centered around a specific interest is considered a high ticket digital offer. These provide tremendous value in terms of connection, insider advice, and sense of belonging. Masterminds take this a step further with intimate peer groups for accelerated learning and growth.
Virtual summits and conferences
Virtual events around popular topics allow attendees to learn from world-class experts. The production value, quality of content and speakers warrant the high ticket price.
Done-for-you services
Any specialized done-for-you service priced over $1000 would be categorized as a high ticket offer. This may include copywriting services, PR services, lead generation services, business coaching and consulting, and more. The high price reflects the level of customization and personalized delivery.
Elements of a high quality high ticket digital product
The best high ticket products deliver tremendous value and transformation for customers. Here are some key elements to include:
- Extremely comprehensive content – No stone is left unturned in exploring the topic and empowering customers to achieve results.
- High production quality – High end design, technology, and delivery platforms.
- Expert instruction – Access to top experts who genuinely want to share their knowledge.
- Community connection – Bonding with peers for collaboration and further learning.
- Engaging experience – Keeping customers interested through compelling content formats.
- Ongoing evolution – Continually improving and expanding the product through customer feedback.
- First-class support – Timely, individualized customer support via email, chat and forums.
- Results-focused – Clear frameworks to work through to achieve desired results.
How to price high ticket digital products
Pricing any product or service can seem like a mysterious art. Here are some strategies used to arrive at appropriate pricing for high ticket offers:
- Cost-plus pricing – Calculate your total costs, add a profit margin, and reach your minimum price point.
- Value-based pricing – Determine the full monetary value customers will receive and price accordingly.
- Benchmark competitors – Research pricing for similar top competing products.
- Segmented pricing – Offer tiered pricing, entry level to premium access.
- Customer perceived value – Survey prospective customers on what they consider fair pricing.
- Price anchoring – Introduce add-ons and upsells priced higher to make base seem like a deal.
Choosing the right price
It takes testing and iteration to find the optimal pricing. Some key factors to consider:
- Production costs – This forms the floor price for viability.
- Competitor pricing – You must be in the same ballpark.
- Customer demographic – Consider income levels of your target customers.
- Benefits offered – The more value you provide, the more customers will pay.
- Marginal utility – At what point does a higher price not yield more profit?
- Psychological cues – Certain price points like $1000 seem more justified.
Finding the perfect balance between maximizing profit while still appealing to customers takes thorough market research and testing.
Typical price range
While there are exceptions on both ends, most high ticket digital products fall roughly in these pricing tiers:
Tier | Price range |
---|---|
Entry-level | $1000 – $2000 |
Mid-tier | $2000 – $5000 |
Premium | $5000 – $10,000+ |
Validity of the high ticket pricing model
The high ticket model is validated by these key factors:
- Customers invest more when they pay more – Higher participation and completion.
- Higher lifetime value of each customer.
- Lower acquisition costs relative to revenue.
- Reduced need for hard-selling.
- Customers self-select based on motivation and means.
- Opportunity to specialize and dominate a niche.
- Rewards extensive expertise development.
Should you develop high ticket digital products?
Here are some signs that shifting to high ticket products could be right for your business:
- Your lower priced offers attract tire kickers more than ideal clients.
- You’ve maxed out capacity selling lower priced services.
- Your clients often ask for more customized solutions.
- You have deep knowledge worthy of premium pricing.
- You want to reduce client churn and increase retention.
- Your business has grown to support higher production costs.
- You seek fewer but more profitable transactions.
- You’re established enough to command authority via price.
Challenges with high ticket digital products
Developing a high ticket product has unique challenges including:
- Niche market – Smaller target audience limits growth potential.
- Longer sales cycle – Buyer hesitation means a slower path to revenue.
- Higher customer expectations – Greater time investment required to over-deliver.
- Churn management – Proactive retention is paramount with higher revenue loss.
- True expertise required – Mediocre content quickly exposed at premium price point.
- Will not appeal to the masses – Those seeking a quick fix will be deterred.
- Tech investment – Higher production costs for platforms, design, delivery, etc.
Tips for successfully selling high ticket products
Marketing and selling premium priced products requires special care. Here are some best practices:
- Offer payment plans to improve affordability.
- Highlight social proof and testimonials from satisfied clients.
- Communicate the immense value received.
- Personally engage with prospects to build trust.
- Share client success stories and transformations.
- Offer generous trial periods with no risk.
- Pitch to interests not demographics – find your tribe.
- Remain patient through longer sales cycles.
- Create urgency with time-limited offers.
Conclusion
High ticket digital products provide tremendous upside for both businesses and customers. Customers receive highly customized solutions and life changing value. Businesses realize stronger profit margins and a loyal customer base. However, the model also comes with unique challenges in terms of niche expertise, production costs and time investment required. With the right product targeted to the right audience, high ticket products can be a lucrative niche.