I want to thank Yanik Silver for this great piece of work as he wrote most of it this article. I have personalized it for my situation, since our stories are very similar. If you boil down my biggest profit windfalls in my business (and the most astute marketers I observe) it has come down to selling premium products and services at premium prices. That’s how my business has leapfrogged from 5-figures to 7-figures in the last 3 years I really love high priced products and you’ll see why in a moment…

Personally, I’ve sold everything from $5,000 websites to $18,000.00 “Business In Box.” And lots in-between. My most recent high-end product is an $11,000 program for people who love to travel and want severe discounts.

Stick with me and I’ll share with you a few of the things I’ve learned…

First, let’s say you want to make an extra $1M this year - then you’d have to sell 20000 copies of your ‘doohickey’ at $50. Or it could be 2000 copies at $500. Or better still 200 copies at $5000. It’s a lot easier dealing with 200 customers than 20,000. Think of all the customer service and infrastructure, etc.

That’s why I wanted to share with you my newest insights about how to dominate the marketplace selling high priced products and services…

Yanik put together 7 reasons why selling high-priced products makes so much sense:

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Reason #1: More Profits
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Okay no surprise here. When you sell for higher prices you make more profits. Very few companies have been able to sustain a “low price” position in the marketplace. Sears couldn’t. K-Mart couldn’t. And now it remains to be seen what Wal-Mart does with that position. (Actually if you study Wal-Mart you’ll notice they are bringing in some significantly high-priced, high-margin products.)

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Reason #2: Better Customers
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Price qualifies your customers more than you might realize. The ones that pay $7 for an ebook are going to be the ones that whine and complain the most! They’ll tax and strain your customer support team. But in comparison the customers who spend significant amounts of money are surprisingly easier to deal with and less demanding.

A perfect example of this was last week when I took my Aston Martin into the shop for some minor work. I dropped off the car and needed a loaner. Usually they provide Mercedes loaners for their customers but they didn’t have one available. I told my service manager, Eric that I really didn’t care what I drove out with. He laughed and said the Aston customers are the easiest ones - just like
me they could care less what kind of loaner they get. But the C-class (cheapest model) Mercedes customers were the worst because they would rant and yell if they did not get a Mercedes loaner.

What’s more the fact that your customers spent more money means they’ll be more compliant and actually do what you tell them to do. As another example I’ve been to $500 seminars and I’ve been to $15,000+ seminars. Which ones do you think I pay more attention to and make sure I extract more value from? Of course - the more expensive one.

Think about the last time you gave free advice to someone - what happened? That’s right. Nothing. But if you had made them pay you for consulting - they would have taken it to heart.

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Reason #3: Psychology of Price Works In Your Favor
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We’ve always been taught “You get what you pay for”. It’s not uncommon for a prospective customer to discount a product or offering because it’s “too cheap”. If the price is not in line with what it should be you’d think there is something wrong. If I could buy my Aston Martin from the dealer for $25,000 - I’d immediately be working overtime on what could possibly be wrong with the car. There are certain products that artificially keep their prices at significant premiums because price is so highly correlated with value.

What’s more, you also gain instant respect and recognition. Only a “true” expert would charge high prices - so that puts you in that category immediately. (Of course, you better have the goods to back it up.)

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Reason #4: Can Deliver More Value
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Ultimately the value you provide will dictate the profits you receive from your customers. Increase the value and your revenues go up. By selling high-profit products with high-margins you have lots more wiggle room to deliver sensational value. You can really “WOW” your customers and buyers. Not only can you throw in high-value extras but you can afford to deliver truly unique unadvertised bonuses and follow-ups.[Jeff] – This is what I do for both my Coastal Vacation Club customers and also my Mortgage Acceleration Plus Customers.I throw on the value and bonuses, totaling over $30,000 in free stuff, when they buy $5000 worth of stuff from me. It seals the deal, makes me difference and allows me to stand out as providing the better service and value, and then makes me the only choice in a very crowded and competitive marketplace.–
Reason #5: Some Buyers Will NOT Buy Low-Priced Items
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It sounds crazy but some customers are only premium buyers. If you gave them a discount it would actually decrease the response. Plus, some customers are only comfortable buying in the high-end range. I was shocked when I discovered with my first high-priced offering. My Apprentice program was $14,500 and at the time this was head and shoulders above any other marketer.

I thought my best prospects for this program would be customers who had already bought from me and were happy. Surprisingly about half of the people in this program had *NEVER* bought anything from me before. Their comfort level was a premium offer.

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Reason #6: Create Big Paydays
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All the big numbers you’ve seen highlighted in the marketplace have all come from creating high-priced offerings. You’ve seen some of the numbers…$1M in a day, $900,000.00 in 8 minutes, $3.5M in one week, etc. etc. It’s way easier to hit these kind of big paydays by only having to sell to a small handful of customers at a premium price point.

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Reason #7: You Will OWN The Marketplace
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I think this is the biggest reason of all…

There are 2 big parts to this. First, you can afford to make big payouts to affiliates to push your product. Listen, if an affiliate has a choice between 2 relativelyequal products but one pays them significantly more – in most cases that affiliate will go with the higher commission.

With high-priced product you got the room to give affiliates such a significant commission that you’ll see a feeding frenzy of activity. (When they’re getting a big affiliate check the affiliates pull out all the stops themselves like incredible free bonuses, etc to make the sale.)

Plus, the other piece of the puzzle is you can spend more on your own to acquire a customer. This is huge! If I’m in the same marketplace and I’m competing against someone who only has $100.00 product at the end of their funnel and I have a $10,000.00 offering - there’s going to be almost no contest.  I can spend more on Pay-per-click, more on advertising, more on affiliate pay-outs, more on offline
follow-up, more on testing unusual advertising places, etc. etc.

And I can make bad results work for me. If I’m direct mailing for a high-priced product I only need a fraction of a fraction of a fraction of the response for a low-priced product to make me money.

Fact is, the business owner who can spend the most to acquire a customer will WIN.

Period.

End of story.

(Please tape that quote somewhere where you can focus on it!)

Most people are undercharging for what they provide. My rule of thumb and one of my values I look at it every morning in my planners says “I get rich by enriching others 10x - 100x what they pay me in return”.

That’s a big deal for me. If you pay me $1000 for a product - I want to make sure it delivers $10,000 in value for my customers. I suggest you consider something similar. If your product isn’t good enough for you to raise your price on it - make it better! [Jeff] – When I first joined Coastal Vacations, back in March of  2004, I knew the value in the product would save me countless $1000’s off in my travels.Now, 3 years later, that $1295 investment, has returned over $14,000 in savings on incredible and memorable trips with friends and family members that I still cherish and have the pictures to remind me of.The incredible news is that, already, in 3 years, I have got my money back it seems, 10 times, in value from using the trips.

And I am just getting started, traveling the world and have a whole lifetime ahead of me to continue to save. I estimate, that by the time I am 50, I will have saved over $100,000 in cash savings from that one time $1295 investment.Here are just some of the high-end products I’ve successful sold:
* Designed a Peer-Advisory MasterMind Group. In the first year 18 individuals paid $15k to be part of this group which met 3x/year. In the second year I’ve added one more group and raised the bar up to $20k per person. (Just these
2 groups alone are worth an extra $440k in NET profits.)

I love MasterMind groups because if done right they require significantly less personal time and can create disproportionate profits for you. The big secret is when you bring the right people into your MasterMind group they’ll end up doing the heavy lifting and it actually works out better than any type of one-on-one coaching or mentoring.

* Sold-Out a $14,497 “Apprentice” program (Yes, before Trump!) and created a wait list using nothing more than email. Side note: Participants not only paid the hefty program fee but also a 12% ongoing royalty on sales!

* Initiated a group coaching program for $7,500 per student. Allows you to get paid more by going away from one-on-one coaching.

* Held numerous small workshops on specialized topics ranging from $4k to $5k per person. (What’s more, I packaged up the DVDs/Audios from these events for hundreds of thousands in additional profits that’s still selling strong.)

* Developed multiple high-end “e-classes” which were $2k for tuition and always sold out with days of announcing each new class. (One of the best ways of getting
significantly more for roughly the same content but only giving limited access to students via email homework assignments.)

* Created the “Underground Online Seminar(tm)” which was sold out every year weeks in advance of the actual event. (This single event has exceeded 7-figures in income each year.)

* Modified an existing information product (kit) for Cosmetic Surgeons into a high-priced, done-for-them service type business. Went from a $900 sale to a $43k+ per year revenue stream from those doctors.

* Licensed existing content Internationally and for other marketplaces where I’m not currently involved in for extra 5-figure and 6-figure windfalls.

[Jeff’s High End Product Successes}

* I sold Mentors in Motion for $500 per sale, and this was my first attempt to sell any products or services online for over $100. At first I thought I was crazy for doing it. My wife thought I was nutzo for putting $500 more debt on our credit card. But that $500 payment turned into about $90,000 in revenue. www.mentorsinmotion.com

* I sold a $1495 Mastermind Course on Internet Marketing. It was a short lived product and I was in a partnership with some other marketers, and I chose to go a different path.

* I sold $5000 website portals on one 75 minute conference call, amounting to over $75,000 in sales immediately.

* I have sold over $1.5 Million Dollars of Coastal Vacations Memberships in 3 years and have become one of the top sellers and marketers of their product. My costs are minimal, and the selling and fulfillment are all done for me by my call center! www.coastalvacationclubblog.com

* I have filled a room with 35 people all paying about $997 to attend my own Internet Marketing Conference, called the Midwest Super Conference and I am anticipating that I can double or triple the size of the event, this coming September with about 80-100 attendees. www.midwestsuperconference.com

* I have created a how to podcast course with my friend Paul Colligan, that sells for $697 and we sold many of them to newbie podcasters, showing them how to make money with their great content. www.podcastcreationmastermind.com

* I have sold many Mortgage Accelerator Plus products, which teach people how to legally and with real straight up math, pay off their home loans in about 7-12 years and really, truly become debt free! This product sells for $1295. www.FastMortgageEliminator.comWhen you understand how to sell big-ticket items it’s no big deal to create a 6-figure or 7-figure windfall practically on demand. It’s easy once you have the formula figured out.
And don’t think high-priced products can only sell if you are selling ‘how to make money’ related products. I have students and friends doing very well selling high priced products to the fitness marketplace, the dating markets, small niche obsessive-compulsive markets, self-help, career marketplaces and many more.

Now a lot of people think selling high priced products are a lot tougher than low-priced products. Not true. You usually spend about the same effort trying to sell a high- priced product as a lower priced product - but the rewards are significantly bigger!

You see, the real hidden wealth in your business is selling high-priced products and services to a select group of qualified customers. Just hold your breath and add an extra zero to your price

Now, how can Jeff Mills help you achieve your dreams and goals with a high ticket product that you can sell, running your own business from home?

Pick up the phone and give me a call for a free 10 minute consultation! 651-309-1091