And Why High Ticket Approach is Better?
What is Affiliate Marketing? In this article we will answer that question and also explain the difference between a good and bad affiliate program.
As we briefly explained in our last article, Affiliate Marketing is simply placing yourself between a buyer and a seller and being paid a commission for that service. This means you can leverage other companies products, until you can develop your own. This is an important point. You can get started now, easily with affiliate marketing and don’t need to wait, as you would in a traditional business to develop a product or service. Further, you don’t have to purchase inventory, deal with customer support, or worry about restocking returns. This makes it one of the most scalable online businesses.
It turns out that most companies online have an affiliate program. For example, Amazon, Walmart, Target, all have affiliate programs. However, not all affiliate programs are created equal. Some, have lower profits than others, others pay once, while others pay over and over.
Low Ticket Items
Many affiliate programs are for low-ticket items, items that cost less than $1000. Those items may start as low as $1 and may indeed approach the higher end. However, unless they are digital products, those programs will often pay lower profit margins.
For example, Amazon, Walmart, and Target have both low priced and high priced items, but they normally pay about 1–4% commissions, which means you have to make many sales to establish a living.
High Ticket Items
Digital products, particularly high-end training are often high-ticket items, meaning they cost $1000 or more. Also, digital products often have higher margins, upwards of 40–70% depending on the product. Those products may also start on the lower end, with $1 to $30 or $99 products. However, the difference is that with digital products, there is normally higher end options and also higher profit margins. Therefore, higher-ticket items require less sales to make a living.
You Have to Decide
In order to illustrate the differences, we will present an example. Let’s suppose we look at promoting a pair of $49 shoes on the Amazon Affiliate Program, which pays 3% ($1.47) per pair sold. In order to make $1000/month, you would have to sell 681 pairs of shoes. On the other hand, supposed you sold a digital product, for example a high ticket webinar that cost $1000 and you received a commission of 40% ($400). You would have to sell 3 tickets to the event, to exceed $1000/month commissions. Now, you see the power of high-ticket items, when it comes to affiliate marketing.
If you decided to get into affiliate marketing, be sure to seek out the highest level of training you can find.
If you want to learn more about this subject, I would refer you to my preferred source of digital marketing training, check it out here.
You may also follow me on my Youtube Channel. Please take a moment to follow me here, comment below and give me your thoughts on this topic and send this article to a friend that may need it.
Dr. Allen Harper
Financial Freedom Hacker
There are affiliate links in this blog post. If you decide to make a purchase after clicking through one of these links, I earn a small commission for that. It does not change the price for you whatsoever. Prices do not change regardless of where you buy.
Any income claims, or claims of success are not necessarily true for everyone. Just like any other career or business venture, hard work and persistence is required. Many people succeed…and many fail as well. It is up to YOU to determine your fate.