This comprehensive manual on high ticket sales is for all professionals and entrepreneurs engaged in consultative selling. This gives the principles, processes, scripts and techniques to selling premium offers to affluent clients.
- What is High Ticket Sales and Closing?
- Why You Should Learn The Art of Closing
- Principles of High Ticket Sales
- The Psychology of High Ticket Sales
- How To Attract More High-End Clients
- Conversion Mechanisms
- Discussing Fees, Compensation and Terms
- Handling Customer Objections
What is High Ticket Sales and Closing?
High ticket sales is the art of closing upscale contracts. It’s the negotiation and sales process of leading a prospect towards a purchasing decision on a service, product, or contract at a premium price.
Typically a high-ticket offer is priced from $3,000 up to $1,000,000 or more. Some examples of high-ticket offers include real estate, coaching programs, marketing campaigns, web design packages, luxury goods, information products, courses or business partnership agreements.
How high ticket sales differs from traditional sales
There’s a very big difference between conventional selling and high ticket sales. The psychology between them are worlds apart. High ticket sales involves a sophisticated approach when persuading a prospective client towards making a commitment.
A traditional salesperson, usually thought of as a ‘snake oil salesman’, have negative associations with using scammy, overly persistent, manipulative, sleazy, or aggressive tactics to push you into fraudulent, unhelpful or regrettable purchases. They’re known for only doing things to get a commission out of you.
High-Ticket Closers™ are professionals, industry experts or authority figures that influence you towards a purchase that helps you solve a significant problem, or an exceptional service experience. They sell products and services that have real value in a marketplace. A good closer makes the customer feel thankful after a sale. They feel thankful for being helped towards making a decision that’s right for them.
High-Ticket Closers™ don’t chase clients. Instead the clients come to them for help, usually after a qualification process to see if they are a good fit to work with or not. High-Ticket Closers™ are positioned as influencers in their fields, so they have an obligation to serve their clients with integrity and high business standards.
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Why You Should Learn The Art Of Closing
Most people don’t know how to communicate. Fewer people know how to sell, and almost no one knows how to close. Closing in high ticket sales requires a higher level of finesse and intellect, so to be excellent at it you need to understand human psychology on a deeper level. You have to be able to read any prospect’s personality, and even get to know them better than they know themselves within minutes of talking to them.
1) Turn any negotiation to your advantage. When you gain the high income skill of closing, you can change objections into sales, even when your prospect gives you a lot of resistance. If you want to be a business owner or manager, your ability to sell enhances your leadership because you become more influential. This skill can also be used in your personal life where you have to persuade your significant other, family, friends or even strangers to agree with you.
2) Have more control over your life. When you learn the art of high ticket sales and are able to close big deals, you can define your income and lifestyle goals and actually have the ability to reach them faster than any other career.
3) You can build a successful consulting business model on your own terms. When you are an effective closer, you can choose to work with only the high-paying clients that also want to deal with you (no clients from hell), work anywhere that you want, and create a schedule that actually gives you more free time. You can build a life with minimal stress where you’re not forced to tolerate anything you don’t want.
4) Higher marketplace demand for closers. There is a rising and urgent demand for great salespeople in many companies. Corporations often value their sales department more than others because they have the highest revenue-generating employees. Different industries need more high-ticket closers than ever, especially women in high ticket sales. Many women are strong at listening and building relationships. These traits are why women in high ticket sales are successful.
A career in sales is often a profession that is looked down upon, but in fact, some of the highest paid people in our society are great salespeople. For example, Warren Buffet, Elon Musk, or Steve Jobs. They all had to be great closers to talk about their vision to shareholders and the public. They often make sales presentations on what they do to persuade and influence people to invest in their company stocks.
The art of closing is used in every facet of your personal and business life.
By mastering this high income skill, you can adapt to fluctuations in the economy and job markets, influence people to support your big ideas, have the strong relationships that you want, and overall become a valuable person.
Why you should do high ticket sales
There are many ways to make $1 million, like selling a million units of a cheap product to the masses. But the high-ticket formula is about selling less for more. Entrepreneurs are conditioned to always strive for more sales, higher revenue, bigger office space, more market share, etc.
But more doesn’t necessarily mean it is better. You can reach your income goal with less volume by charging higher prices. In terms of your life and business, think about your reasons for wanting more – is it driven by a purpose, a desired lifestyle, or your ego? Think about how you can hit your income goal and live a life of total freedom with fewer clients, products or contracts.
Here are some reasons why “less is more” when it comes to high ticket sales:
1) You get more profit with less hassle. When you do high ticket sales, you make higher profit margins. Think about how most competitors in the marketplace are not comfortable selling (or don’t know how to sell) at a high price. While there have been commercially successful companies that have sold low margin products, recent history has shown that this business model isn’t profitable forever because competing with low priced products are not a sustainable advantage.
For instance, after being in business for 125 years, the department store chain Sears, which was once the biggest retailer of USA, is now on the verge of filing for bankruptcy. Their sales have been in a steady decline for more than a decade, and its last profitable year was 2010. Kmart, which once made $37 billion in sales and had 2,156 stores at its peak year in 2000, have since experienced a 72% drop in sales to $10 billion and closed over 1000 stores in 2016. Meanwhile, Walmart is struggling with its online sales which have significantly slowed down, raising the fears that they aren’t able to keep up with Amazon.com.
Businesses that do high volume operations also require a more complex infrastructure to serve all their customers. They often have higher costs for acquiring customers in greater quantities. When reconsidering your business model, think about and compare the different ways to make $1 million such as selling a…
- $25 product to 40,000 customers
- $50 product to 20,000 customers
- $100 product to 10,000 customers
- $1,000 product to 1,000 customers
- $10,000 product to only 100 customers
By keeping a “lean, mean and simple” business model that focuses on margins (transaction size) instead of volume, you can reach your financial goal serving way less customers.
2) BIG pay days. There have been many launches for digital products and programs where they are making $500,000 to $1 million within 24 hours to 1 week. Or $5 million in 30 days. These businesses are never selling low-ticket offers. Most of these launches are selling 200 to 1000 units for $1,000 – $5,000 each to get those numbers. You cannot get the same numbers as easily from selling a $20 e-book.
3) You own the marketplace. By having a high-ticket offer, you can afford to be more generous with your promoters, sales people or affiliates. When you have a high profit margin, you can pay out higher commissions, which automatically makes you more appealing to promote than a competitor that sells low-ticket offers. It makes a big difference if they can make a $1,200 commission from a $2,000 product sale versus a mere $10 commission from a $20 product.
Instead of just growing more, keep your business flexible, simple, and easy. This is the key to achieving absolute autonomy, which means confidently and securely doing what, when, where, with whom, and at the price and terms that you want.
Principles of High Ticket Sales
How to be a High-Ticket Closer™
What does it take to become a great salesperson in high ticket sales?
The master salesman is a master of others because he is a master of himself.
In order to be a great salesperson, you should never represent, act, talk, or dress like a typical salesperson. This is because conventional salespeople have a lot of negative associations in people’s minds. Many people have bad experiences with salespeople where they were talked into buying something that they later regret.
Conventional salespeople are thought of as fraudsters who are only motivated by a desire to make quick profit off others.
Conventional sales tactics have taught that you should always be very excited about your offer. If you show little enthusiasm about your product or service, that won’t inspire your prospect to buy either. Typical sales conversations involve making small talk (pretentious bonding) with a prospect, even though nobody really cares.
One of the most annoying sales tactics involve making excessive follow-ups where you are constantly chasing sales prospects over the phone.
This approach is the kind of bad positioning that takes away from your credibility, and will force you to tolerate customers and situations that make life harder.
As a High-Ticket Closer™, you should behave and talk like a professional. Similar to a doctor, you should have a calm and neutral presence instead. In your tonality, speak with conviction and authority.
Don’t be attached to the sale. It’s okay if you don’t get the sale. When you’re not desperate, your prospects will open up to you. They can tell that you actually want to help them instead of just going after a commission check.
Don’t chase, rather be a problem-solver.
As a professional, you ask questions to discover your prospect’s needs. You should re-frame your high ticket sales conversations so they’re more about learning how to help the customer and provide value.
“Tell me a little bit about your situation.”
“Can you tell me more about your business?”
“How can you and I do business?”
“What were you hoping to get from me today?”
In high ticket sales, to sell your way and get what you want in life, you have to first help others get what they want. When you act like a true professional, your prospects will respond differently to you.
How to close more high ticket sales even if you hate selling
As an entrepreneur, you’re in high ticket sales. Even if you’re not an entrepreneur, you’re in sales. Everything that comes out of your mouth is sales. You’re either attracting people to do what you want, or you’re repelling them.
There are four things you’re selling as a high-ticket closer: A product, a service, your ideas, or yourself.
When it comes to high-ticket offers, you have to sell something you believe in and that makes you feel good. Sell something that you know would help and enhance the lives of your customers.
If you truly believe in your offer’s potential to help people, then you have the moral obligation to sell, otherwise it will be a disservice to the marketplace.
It’s not just about money. If you’re not doing everything you possibly could to help people, or you’re not doing everything you possibly could to sell them, then you’re not serving anybody.
Selling to high-end customers
There are four types of customers that you will come across in your business, but when it comes to your high ticket sales and marketing efforts, you should only focus on appealing to the sophisticated and affluent.
These are great customers to work with because they have money, are educated, and know exactly what they want and what they’re buying. They’re very clear, they’ve done the research, and have talked to a few people already before approaching your business.
Sophisticated buyers look at their transactions as making an investment, so they will appreciate your information especially if you know what you’re talking about. By educating them it establishes expertise and builds trust in your relationship. Sometimes they need time to make a buying decision. They will ask a lot of intelligent questions and take a close look at the written details of your terms as part of their research, and when they finally make a decision, they commit to it.
There is about 10-15% of people in the marketplace that only buy premium products, and there is a unique psychology involved when selling to these customers. Their buying criteria is based on how they “feel” about the product or service and overall buying experience. Sometimes they don’t even have to know all of the features and benefits of an offer, but they will purchase because they simply love the appeal, exclusivity or luxury of what they’re buying. They can appreciate a salesperson who gives them a superior buying experience.
A lot of entrepreneurs make the mistake of trying to appeal to this type of customer by offering them a discount, but this “cheapens” the offer and takes away from the customer’s buying experience. Another mistake is trying to over-educate them, when they’re not really looking for information.
These customers buy based on emotion and would often buy things that they don’t even need. As long as they appreciate your salesmanship, and you sell them on a premium price, you can close them.
Reading people and buying signals
Tune up your ability to listen closely and read people so you can be steps ahead in your high ticket sales conversations. Most of the time, if you’re getting resistance, it can be narrowed down to your tonality and posture. Does your customer feel like you’re actually getting them? Can they trust that you know what they want and can solve their problem?
Most people are used to not being listened to and being around others who don’t know how to ask questions. So during your consultations, you have to be a great listener that’s 100% in tune and sincere with your prospect. When you listen and ask meaningful and thorough questions, people will tell you all kinds of deep information that will help progress the relationship.
When you’re talking to affluent customers, they can accept you and your suggestions when they can feel that you have the etiquette or the right vernacular to speak with them.
You can also understand your customers more closely through what they don’t say. It starts with knowing how to read and observe people, sometimes from a distance, and instantly knowing something about their mood or intention. You have to pay attention to their body language. Are they opening up to you and are receptive to bonding? Or are they closed off?
By reading people, it will help you recognize buying signals when they show up. Some buying signals can be someone nodding their head attentively as you demonstrate your product, or if the prospect is touching and looking really closely at the merchandise.
Verbal Buying Signals
- Asking specific details about a product, such as the available units left of a certain size or color.
- Imagining and talking about how things would go, feel, or look like if they purchased the product or service.
- Having logistical questions about price, discounts, or financing options.
- Asking about delivery and start date.
- Having fear based questions that focus on minimizing risk, such as the return policy, warranty, or customer service.
Understanding human nature
When it comes to being persuasive and having the upper edge in negotiations, the most important thing to know is that people are often self-centered. They are constantly thinking, “What’s in it for me?”
So if you want to have influence, your strategies should focus on fulfilling your prospect’s core, self-serving needs.
One focus is on a major pain or problem. This helps if you offer services that help people with their wealth, health, relationships, or personal and spiritual growth.
In high ticket sales, you don’t just sell information, you sell transformation.
Using psychological triggers
These advanced techniques should be influenced with integrity. Always deliver quality services and products to people with the best intentions.
1) People are motivated by the fear of loss instead of potential of gain.
2) Collection rarity. Using the status, symbol or glamour associated with limited quantity collectible items, exotic cars, art, watches, pens, liquor, or fashion.
3) Premium prices. People enjoy paying for the things they value and it seems that the more they pay, the more they enjoy it. A shortcut to buying decisions is assuming that things that are more expensive are usually of higher quality. Give your clients the simple pleasure of paying a premium rate for your products and services. People buy with emotion and justify it with logic. So make sure every part of your offering and marketing matches the needs and image that the premium buyer is looking for.
4) People enjoy having the “exclusive privilege” to an offer that has a “limited membership”. This is successful with luxury brands that put customers through an application process and lengthening their buying journey because it generates a lot more desire.
5) Takeaway Selling. Similar to above, people don’t want something until they know they can’t have it, or other people want it as well. This means being put through a qualification process, application process, or wait list. The more hoops your prospects jump through before you do business with them, the more they will value the experience.
6) Provide a sense of belonging to a certain group. People enjoy their niche communities because that’s where they reference their sense of identity.
7) It is human instinct to see social proof in things that are popular.
Providing unforgettable experiences in high ticket sales
Don’t just sell products and services, sell experience. Think about how you can increase the level of the perception on your offer and brand. How can you increase the level of service and experience? What are some things that you can do so that your clients feel that he or she gets more than what was expected? How can you deliver that “wow” experience? Sometimes it doesn’t cost a lot more to deliver at an exceptional level, it actually just takes some creativity and some thought.
People are always paying to be entertained and to get an exclusive, premium experience. So how can you create that for them?
When engaged in a high ticket sales presentation or conversation, think about crafting a truly amazing experience that appeals to all senses: visual, auditory, smell, taste and touch.
Think – How do you deliver an experience to all five senses?
The Psychology of High Ticket Sales
How prospects perceive your value
Regardless of what prospects say, the main reason why they don’t buy from you is not because of money. The real issue is they don’t see the value in your offer.
If they have the ability to pay but they don’t want to, it’s because you haven’t communicated your value well. Most of the time, it’s not really about their ability to pay, it’s about their desire to pay for your programs, products or services. People can always find the money to afford what they want.
People don’t do business with you because they know how smart you are. They do business with you because they believe that you can solve their problems.
If you’re positioned well, you can create the demand for yourself. Clients come to you, instead of you chasing clients. If you’re not positioned well in the marketplace, you have to rely more heavily on your closing skills.
You have to use the law of supply and demand in your favor. This means communicating that you are not easily accessible, by limiting the amount of clients you can accept at a time, or by having a waiting list. If you take on as many clients as possible, this will tell the marketplace that there is an infinite supply of your time and services, but there is no value in doing that.
By limiting your client list, you can focus on delivering value and exceeding expectations.
The best time to do marketing is when your client pipeline is already full and you have more clients that you can handle. This will drive up the demand and momentum for you even more, and you will have the autonomy and power to charge what you want. This position works in your favor because you are not “desperate” for more clients and will not be pressured to lower your prices just to have more prospects.
For example, Nicolas Kuzmic, the highest-paid Facebook strategist, takes on only 10 clients a year. If you want to work with him, there is a minimum marketing budget of $100,000 with Facebook per month. If you don’t have a million in marketing budget, he’s not working with you. Because he gets $15,000 per month or 15% of the deal. He’s not accepting as many clients as possible. Instead, he only accepts 10 clients a year. This shows he understands supply and demand.
Another example, Tony Robbins charges $1 million per client for one-on-one coaching. Because he has the reach of millions of people per year, supply and demand gives him the autonomy to run his business on his own terms by taking only five clients annually.
Success in high ticket sales as a consultant
High-ticket closing is very beneficial for professionals in the consulting business or anyone engaged in consultative selling at high fees or transaction sizes (such as copywriting, digital marketing, financial advisory services, software systems, real estate, investments, etc).
To improve the quality of people you attract means improving yourself and your business. You attract clients that are similar to you. If you’re cheap, flakey, or a difficult person to work with, so will your clients. Your business is a reflection of you and your personal life.
If your home is disorganized, your business will be too. When you’re not good at managing money in your day-to-day life, your business will have cash flow problems. If you don’t know how to deal with people or your friends, then you won’t know how to deal with customers.
To change this and get better clients, you have to make some internal adjustments to yourself and your self-image.
Those who are afraid to buy, are always afraid to sell. You have to be a congruent person of value. If you want your clients to make large investments on you, you have to be a high-ticket client yourself too. Commanding premium prices for your products and services means that you must also be willing to pay premium prices to someone else. It doesn’t work for you to be a cheap person while trying to sell to the affluent at the same time.
Dressing for success is very critical, especially if you still have a long way to go until you reach your income and lifestyle goal. You only have one chance to make a first impression. Unless there’s a particular strategy to dress more casually so you appeal to a specific audience, you have to dress to impress. Wouldn’t you perform better if you look and feel good anyway? You can’t get rich looking poor.
You have to be attentive to every detail in your life and personal development to have absolute confidence and certainty in negotiations. For you to have no hesitation asking for big money, you need to have invested the same amount of money on various high-ticket items.
To succeed in high ticket sales, you also need to have invested in your own education and training to stay up-to-date, be knowledgeable and be in the cutting edge of your industry.
Changing your self-image and expanding your comfort zone
A great way to expand your comfort zone is to constantly immerse yourself in an environment where luxury is common. Start subscribing to and reading more magazines that are meant for an affluent audience, such as the Robb Report or Fortune Magazine.
This changes your concept of wealth and money. When you look at these things and realize that there are people – affluent clients – that are spending that kind of money, it changes your mindset.
In the magazines, pay attention to the language they use and the way they run the ads. You’ll realize that they never make low-value offers such as “30% off” anywhere. It’s a completely different verbiage, down to the way they do their graphic design.
Practice your “script” and refine your body language and tonality in front of a mirror until you are comfortable replying to the question, “How much do you charge?” You should be able to ask for BIG money with no hesitation or doubt.
Practice until what you think is a lot of money no longer feels like a lot of money. This will make the environment of high ticket sales feel more natural for you.
Surround yourself with giants
Remember that there is always another higher mountain you can climb. One way to expand your horizons is to be around other entrepreneurs who are more successful than you.
Instead of talking to people at the same level or at a lower level to feel good about yourself, have meaningful conversations with people who are a hundred times more successful because they will pull you up and help you see a different world.
It is one of the best ways for you to evolve in high ticket sales and as an entrepreneur. You will be inspired by the big problems they’re solving and at their different ways of thinking.
Selling to players with money
If you want to build a successful high ticket sales business, you have to design it to attract the best and repel the rest. The worst clients in the world are cheap clients, because they are often the most demanding, difficult, unprepared and unreasonable. It won’t help you to do business with people who have no money and who will also waste your time and energy.
When you sell to the sophisticated and affluent, or to serious entrepreneurs, your life gets easier, less stressful and your clients will get better results. Selling to players with money means working with clients who are ambitious and already successful and want to move to the next level of success in their lives.
Clients like this understand the value of what you provide and have the work ethic to cooperate with you until you get results. Knowing this key piece of information allows you to create a very profitable high-ticket business.
The key to good client selection in high ticket sales is understanding that you are in the business of helping winners win more. When you filter this way, you get more clients that will appreciate and value your time.
Ultimately the secret to making a great income from your business is simple – Do not sell to people who can’t afford you and don’t want to deal with you.
In high ticket sales, you’re not just selling “products or services”. You’re selling certainty in an uncertain world. Most people are skeptical and worried after being disappointed way too many times in their lives. This is why they would pay premium for your certainty. You want to be able to assure that what you’re offering is going to work to solve their problems.
It’s your job to communicate and persuade influence with absolute certainty. You’ll be surprised at how well the marketplace would react.
There’s a lot of people out there that need your products and services, but their lives won’t be enhanced if you don’t go out in the marketplace to promote yourself, sell and get your prospects to commit.
If you truly believe in what you do and what you’re offering, then you have a moral obligation to sell it. Otherwise you would be doing a disservice to the marketplace.
You are in the best position to help if there is a commitment to your client’s success, you’re good at what you do, can deliver the results, can articulate your value, and close that sale.
Your prospects will all have a different perception, background, programming, limits, and beliefs, so you can’t guarantee to everyone that they’ll get 100% of the results. What you can guarantee is your methodology and their commitment to actually doing it.
Much like when you’re working with a personal trainer who has an exercise and diet plan for you, you’re only going to see results if you stick with the plan and actually show up for every training session.
What you’re guaranteeing as a High-Ticket Closer™ is having the confidence that if your prospect does what you’re suggesting and follows your instructions, they will get the results they want.
There is a place and time for a money back guarantee depending on what kind of product or service you’re offering. If you’ve positioned your business well enough that the guaranteed result is already implied, you don’t really need to do that.
Sell your prospects on the results they want. For example, if your prospect wants more sales, you can say, “I’m going to increase your sales percentage by 65% and give you 10% increase in customers visiting your website for $25,000.”
Everything needed to make the results happen, such as the marketing strategy, is a means to an end to your customer so it’s not really the most important thing to talk about. What they really care about is the guaranteed outcome.
How To Attract More High-End Clients
Advanced Client Acquisition Systems
Doing cold calls to get clients will usually result in people hanging up on you. So the first step is to construct a business life so that high-end clients keep finding you.
When business is not finding you, it’s usually because you’re not out there in multiple ways in front of people who could hire you. And you’re spending too much time hunting instead of farming.
Business is about who you know, and how many people know you. Farming is a better strategy than hunting if you want to widen the network of people that know about you on the Internet.
Prospectors are the salespeople who manually “hunt” for opportunities. This is the conventional strategy that a lot of entrepreneurs do, especially those who are new. They do a lot of the manual work of attending networking events, offering free consultations, prospecting, cold calling, cold emailing, doing proposals or passively hoping for referrals to come their way.
This is what a lot of business owners think they have to do. They think it’s easier to hunt to get clients.
However, hunting puts you in a bad positioning as an authority figure because it doesn’t create trust. When you approach a customer first, they have more of the power. Hunting will be constantly giving off the stench of desperation. Don’t forget that as a high-ticket consultant, the clients must come to you first.
Farming is the modern strategy of making this happen. It means having brand omnipresence through the use of your Personal Media Platform. If you have positioned yourself well, prospects who are seeking a trusted advisor will approach you themselves because they have come to trust you at their own pace over time and through multiple exposures and experiences. When farming, you never have to hunt again.
Personal Media Platform
There’s no better time to expand your business and market your brand on various media platforms than now. To attract high-end clients that you want, you have to strategically craft and publish your message, story and persona out there so that people can find out who you are and what you do.
In order to build a long term sustainable business, you need to market a personal brand around your skill, performance, and excellence. Then have the conversion mechanisms in place to turn the attention you get into serious revenue.
For high ticket sales, the most powerful strategy is to have omnipresence, which means being everywhere on the Internet. The buying journey for sophisticated and affluent customers is not a linear, “one contact” approach. They will bounce across different channels and platforms for some time before they can trust you.
They have to research and consume a lot of your content at their own pace before they finally decide to do business with you. Eventually one or a few things that you’ve published will resonate with them, and that could be the point that pushes them to finally contact you for a purchase.
It’s very important to have that omnipresence to aid in the customer-buyer process, as prospects will want to research everything that you’ve done online very closely.
Social media is now replacing traditional media. Twitter has replaced the gossip or entertainment news tabloids. Instagram has replaced photo albums. Snapchat has replaced reality TV. YouTube has replaced regular cable TV. Podcasts have replaced radio. Blogs have replaced newspapers. LinkedIn has replaced resumes and business cards. And Facebook has replaced letters, birthday cards and diaries.
How many of these social media platforms are you on? While you don’t have to be on all of them, you need to have significant influence on some of them – this means having a lot of content and subscribers.
You can master one platform first, then decide to expand to another one after you’ve generated significant traffic and revenue from it. This is a great strategy if you want to stack your success.
Your personal media platform is your own sales department. Having omnipresence is important because it allows your prospects to eliminate all of the doubts they could have in their minds to choose you as the expert to help them.
Do you use copywriting to promote your social media platforms? Click here to learn the fastest ways to create an unstoppable flow of leads for yourself.
The Law of Consumption
For every $1,000 you want people to spend with you, they need to consume at least one hour of your content. If you think of it from that general rule of thumb, whether people watch your content on Facebook, Instagram, or YouTube, it doesn’t matter if it’s one hour, or five minutes here, then six minutes there. Those still add up to several minutes of your content being consumed.
Most of the people who would spend over $10,000 with you would have watched many hours of your content. And most of them would have bought something cheaper before they went and bought another product or service.
This is the gradual process of making one small commitment to a bigger commitment. The consumption theory is about directing your prospects to consume your content, and then for example, lead them towards your Facebook page which could then lead them to more of your YouTube content. This process builds trust overtime as they get to know you.
Social media, blog, podcasts, books, and public speaking
Out of all the platforms right now, what do you focus on the most? This will depend on your purpose, your content, and what you want to achieve.
The advantage of YouTube is that it’s more conducive to long form content, and videos there will get views forever. On the other hand, while it’s easier to have your videos go viral on Facebook, their lifespan is shorter because it’s not search-engine based.
YouTube is less search engine based now, but your videos can still come up in recommended videos. Your video “assets” can be marketed 24/7 and you can keep them for the long term. It’s also a place where people can consume content at their own pace.
With Facebook, there’s more interruption so it’s better to use shorter videos just to get your brand out there, and scale very quickly with paid traffic. You can spend money to get a lot of followers, however there is less fan engagement. One advantage on Facebook is that you can target your audience, so one strategy is to target people who have watched an hour of your video.
Other ways to expand your omnipresence is by hosting or attending events, running a podcast, having endorsements from other industry leaders, publishing books, public speaking engagements, and doing close up interviews.
A customer journey can go in this order as they bounce back and forth between your media platforms until they finally have enough information to decide on you.
The Value Of YouTube
A YouTube subscriber is worth more than a Facebook fan or Instagram follower. Even with a lot of followers on the latter, you won’t make as much money on those platforms because people haven’t consumed as much content.
However, even if you have a big following on Facebook, or have a LinkedIn, if you don’t have a lot of content or subscribers on YouTube, people are not going to build that trust with you. It doesn’t mean your business is no good, but it’s human psychology to measure social proof this way. If you have a big following in all platforms, you must be good.
A YouTube customer is more valuable because they spend more time with you. They make better customers because a more intimate relationship has been built from them investing more time consuming your content. They know all of your stories. People are also more likely to recognize and remember you from your videos over your other media platforms.
You should have a lot of videos for your audience. It’s a good strategy to do daily videos. Even if your videos don’t do well, they’re still going to get some engagement forever.
Your first 10,000 subscribers or first 100 videos are the most difficult. Once you have uploaded 100 videos consistently, that’s when you will start to notice a momentum in your growth. YouTube will start noticing that you’re a serious content creator, and will give your content a boost. People liking and engaging with your videos will eventually have a snowball effect.
Products and services are all commodities. Unless you have something proprietary, chances are that somebody else out there is selling something similar. So when you are promoting your content, remember that you’re not actually selling products and services, for most people you’re actually selling trust.
If your audience sees that you have been consistent with producing content, they will assume that you’re probably consistent with your business operations too. If you’re seen making small promises, then uploading a video every single day with great value, and you have been improving, then chances are whatever you’re selling will also be the same. You communicate the standard on how you operate. Subconsciously your viewers will think that your fulfillment and delivery will be good.
A consumer that is choosing between experts will more likely buy from a guy who has a YouTube channel with 500 videos over someone who only has 5, even if they have the same amount of subscribers.
YouTube is the platform that powered Dan Lok’s rise from a local businessman to becoming an international mentor to millions.
Creating High-Value Content
Keep in mind too that algorithms change all the time. Strategies definitely change – what works this year might not work next year when it comes to social media. But principles still hold. A main principle is to always give high quality value on social media.
You have to build content with the end goal in mind, which is building your business, so create content that your customer will want. Your content should solve problems for people and help them. Some of the people who consume your content will want more, and eventually go through your funnels. As they want more, they’ll find and have something they can download or purchase.
There are many ways to create content that captures attention. If you want to get the right kind of attention, and be taken seriously, you have to create content that is both entertaining and educational. This is called edutainment. You can’t create change and impact if you aren’t getting attention, but if you do things just to get attention (like clickbait), that’s not good either.
Always be thinking of ways to make your content better, come up with new ideas, experiment and test them.
Referrals and Reputation
The usual way of asking for referrals involves asking existing clients, or giving business cards to people in the hopes that they will know someone that needs your products or services.
These techniques don’t work because prospects aren’t able to directly interact with you to develop a relationship. This doesn’t give them enough incentive to contact you. Occasionally accidental referrals do happen, but it’s not enough to build a sustainable business on.
Entrepreneurs still get most of their business from referrals, but they pay the least attention to them. So you should be putting strategic systems in place so that you’re creating more referrals on purpose rather than relying on hope.
But to dive deeper into the topic, think about why your referrals are not working for you. Are you not following up enough? Do you simply not have a good network? Do you feel like you deserve referrals? And why is that? Think about what this information means to you and how you’re going to take direct action.
There are four common mental barriers that stop most entrepreneurs from asking for referrals.
1) Fear that you haven’t provided enough value yet. You keep waiting for a good time to ask until your relationship with your client has developed a bit more. So you wait several months or years to feel comfortable enough to ask.
2) Fear that you will hurt the relationship. You don’t want to come off as “salesy” or impose any obligations on your client.
3) Fear that you will look unprofessional or needy. You assume that by asking you would come off as pushy or desperate. You feel like you should look successful and like you don’t need referrals at all, so you don’t even ask.
4) You think that your clients should “just know” that you need more clients to pay your bills without you having to ask.
Build your refer-ability factor
To get more referrals, you have to be referable. The prerequisite is that you need to be reliable and able to deliver great service and products. You need to have an outstanding reputation. Think about your ‘refer-ability factor’. How referable are you?
Your referral partners need to trust that not only can you provide great products and services, but that you are consistent. People value consistency because they don’t like to change a lot. So are you consistent in living up to high business standards?
If you’re not getting referrals, start doing an honest self-audit. It’s critical to do a self-audit with the following questions to have a critical view of your business and to think about your clients’ perceptions.
- Are you delivering unique and massive value?
- Are you providing exceptional products and services?
- Can you really deliver what you say you will deliver? Do you keep your promises?
- Are you consistent in following up and having a system of regular communication with clients?
- Are you consistent in building your practices, ensuring that clients get value and your pricing doesn’t vary between different people?
- Do you have consistent billing?
- Do you have a 100% satisfaction guarantee?
- How much do you do to demonstrate that you are the best in your niche to handle your client’s particular problems?
- Do you live up to your brand? When and how do you communicate with clients, how do you promote yourself, and how do you show up at a networking events? Are you prepared, on time and well presented?
- Are you a constant high performer, or are you a high performer only once in a while?
- What are some areas where your service delivery is inconsistent or has room for improvement?
- What service delivery standards do you currently or consistently uphold?
- And, what business standards are you willing to create and commit to deliver if you want more referrals?
Why people don’t refer you
People will not refer others to you if they aren’t confident that the result is going to be positive. Someone giving you a referral is almost as big as making a purchase. So there is still a risk they have to deal with on their end. They can compromise their own relationships with the people they refer to you, if in case you under-deliver.
Just because they know you doesn’t mean they’ll refer people to you. Naturally, people don’t want to refer because it’s a risk they don’t want to take.
So even if you provide good service and a lot of value, people still won’t want to refer. You can’t assume that doing a good job is enough to get them, so you have to do more. You have to be more proactive about getting your referrals, rather than passively waiting for them to come your way.
Delivering a superior client experience is not enough to guarantee referrals, but it’s a prerequisite. You don’t get more referrals because you want it, demand it or desperately need it, you only get referrals when you deserve it. In fact when you actually deserve it, you don’t even need to ask, they will come to you.
Strategies to get more referrals
Start with having the belief that you deserve referrals and make sure you have a strong refer-ability factor. The following are seven proven referral strategies that will send your profits soaring.
1) Move your clients up the loyalty ladder as quickly as possible. Take them from being a prospect, to a customer, to (regular) client, then finally to a member.Spend some time to think about how you can move prospects to being members or raving fans of your business as quickly as possible. Giving referrals deepens the commitment of the client, which extends the life of that client and increases their spending activity. The more the client refers, the longer they stay. As they can refer again and again inside your business circle, the more actively engaged they are so the more they spend.
2) Give people an interesting story to tell and provide good tools to your referral partners. For example, instead of a business card, you can use a book you published as a referral tool to give your clients.
Facts tell, stories sell. A lot of people feel that straightforward referring is kind of awkward and uncomfortable, as if it’s a sales pitch. But everyone likes to tell interesting stories to others all the time. So think about what stories can other people tell about you? You want to provide tools so it’s easy for them to direct others to you, with a simple way for those referred to learn more about you.
This works best when there is some immediate benefit to the referred person. This means that the story being told about you is also being helpful to the person receiving the information. A book, website or video are tools you can provide which will feel easy and non-threatening for the referrer to give a referee. These tools should be free and have a zero barrier to entry.
When you offer this kind of information, you don’t have to actively seek out referrals, plus your customers or referral partners can give out something that allows you to control the story. The kind of information you give away should be something your ideal prospect didn’t have before and has a high perceived value, such as an insight that helps them get more clarity on an issue.
3) Use powerful testimonials to generate referrals. Control the story by using as much photos, audio and video as possible, because they communicate emotion. Make them as specific as possible. A 30-60 second video testimonial is good way to start, however, the higher the price of your offer, the longer the video should be.
The more testimonials the better, so you can overwhelm your prospects with proof. You can also use reference letters or speaker kits. Another way to do this is to provide value to someone that has a higher reach, deliver on the results they want and ask for their testimonial and referral.
4) Send other people referrals. Deal with high level people that get the referral concept and that get your venture. High-level entrepreneurs do more than just “ask” for a referral – they collaborate, work together, mastermind, and brainstorm. Send clients to partners who also send you clients.
You can also waive certain fees for referred clients which provides a special deal for everyone involved. You want to become a connector or a hub, that is known as someone who would refer business to other people. Being this kind of influencer is the reputation you want to have.
5) Reverse prospecting. This simply means to reverse engineer your clients’ network of contacts. Then presenting them with a list of people you know she knows or at least is likely to know.You can use this script: “I would like to help more people in _____ group. Who on this list do you think we should send your gift / referral to?”
The typical referral scenario involves you asking, “Do you know anybody who needs a____?” Then after the client thinks about who they know, and if they don’t know anyone, they would say, “no one comes to mind, but I’ll keep my eyes open.” Then the end result is nothing, no referrals. Instead of doing it this way, go to your client and present them with a list of people that you’ve already researched.
“I know you’re connected to them on Linkedin / Facebook. These are five people I’m looking to reach out to, can you make an introduction?”
This makes things easier because you’ve already done the work of researching ahead of time and making a very specific request. At this point, depending on your relationship, you’re waiting for a yes or a no.
6) Plant the referral seed by letting your client know upfront that you’ll be asking for referrals later on.
Use this script, “Hello, my name is ____. I’m the owner of this business. Before we get into what it is that you need, I would like to let you know how I work with our clients, would that be okay?
(If they say yes, say…) Sure, you know I get about 80%of my business from referrals. And I like working with people just like you. What I would like to ask you is that if you believe you get value from working with me, you’ll refer at least two people to me who are just like you. I’m not asking you for them now. But at some stage when you believe you’ve received great value, would that be okay?”
This is a “trial close” to get a small commitment from your client, and to get their permission. So then when you go back to them, it’s not a surprise. Small commitments leads to bigger commitments overtime. Asking for 2-3 referrals is a good number. When it’s actually time to ask for the referral and you go back to them, you strategically ‘take it away’ and create urgency.
“I’ve been giving it a second thought. I’m beginning to think that I may have been overly hasty in asking for a referral from you. You see I’ve been inundated with referrals lately. And quite honestly I only want to take on referrals if I can guarantee the same fantastic level of service that my current clients like yourself enjoy. I would hate to disappoint new clients by not being able to live up to their expectations. If you know somebody, now is a good time.”
The language and psychology here is raising the demand for yourself, and you accepting a new referral will feel like special treatment.
7) You can use a Commitment Statement, which makes giving you a few referrals a condition of doing business with you. This is a document that outlines as a business what you would do for the clients in return for them making certain commitments to you. Part of the document can say, “As a client, I am committed to sending referrals of at least two people.”
You can also use a video instead that outlines your work, how you work with new clients and why they should give you referrals. This is easy because it can be automated and repeated over and over.
In your new client intake, you can say, “Hey, watch the video first.” Explain “Hey, here’s how we work with clients… I only accept clients who are referred by current clients.”
The psychology here is that you advertised the fact that this special offer is only for people who have been referred to you. This gives you an air of exclusivity, which in itself makes certain people want to do business with you. From this semi-special offer, your existing clients will go to their network and say how this is only for people who are referred by existing clients. Not for the general public. This kind of process is used in high-level selling.
8) Use events to create referral opportunities. An event is one of the easiest ways to make the referral process less threatening for people. You don’t have to be the speaker. You can be the organizer or host. Getting clients to talk about you favorably to others is not enough to get a great result. There are many potential ways that their message could be tuned out, because people can either be distracted, pressed for time, or have their mind elsewhere when your client is discussing you.
An event is the best way to give your clients a reason to talk about you and actually bring their referrals directly to you. An event also offers an activity where friends can bring friends. It also has a time commitment and a deadline, which creates urgency. By applying your focus on referrals from people who you have built trusted relationships with, you will no longer need to do any cold marketing for high ticket sales.
The High-Ticket Client Buyer Journey
Most consultants bring in their clients the wrong way which is why they struggle. Their strategy was wrong from Day 1. When you’ve positioned yourself well with your personal media platform and referral network, you are already off to a better start as a ‘farmer’. The client’s experience in discovering and contacting you could look like this:
1) The prospect discovers you on one of your personal media platforms and watches your content for some time. The client is first introduced to your content – via books, podcasts, videos, social media, etc. Overtime as they watch more of your content, they mature as a client. This period could take up to 2-3 years.There might have been a referral involved. But it starts with a constant drip of continuing exposure.
Eventually you become the “top of mind” contact when an opportunity presents itself.By being out there a lot, in different ways, and in different media, you attract all kinds of opportunities. And you don’t have to do anything overt or direct. You were just farming. You would not find these opportunities as a hunter.
2) They come across one of your conversion mechanisms and either enter their emails to your newsletter, or they finally try to contact you by phone, email or direct message on social media.
3) A discovery call is scheduled to directly speak with the prospect. In this call you attentively learn their goals and challenges, and figure out if they are a good fit for you or if you are a good fit for them.
4) The prospect books a paid consultation.
5) After the initial consulting, if you all decide on working together on a long-term basis, you move forward with closing the contract, receiving a payment, and setting up an automated payment system that will charge them on an ongoing schedule.
6) You focus on solving their problems and over-delivering on results.
At some point in a prospect’s buyer journey they will come across one of your conversion mechanisms, which could either be a book, sales page, video sales letter, sales funnel, a webinar, a phone call appointment, an in-person visit, or one of your events. Here are some essential mechanisms to consider when it comes to high ticket sales:
If people are contacting you over social media, email or through booking a phone call, they want to find out more information, so here’s what you want them to do.
First, you want to get them to call you instead of you calling them. That’s because when you call them, you are the salesperson. But when they call you, you are the expert. This also ensures that they are actually ready for the call, instead of you gambling with the chance of catching them off guard or interrupting their day.
If you do this, you’re already starting off on the wrong foot. Also, when you call them, your tonality would be like what most salespeople do. It’s bad positioning which would make you lose the sale already in the first 2 seconds.
But when they schedule a time and they call you, chances are, if they show up for the call, you have their full attention. And at this point, you’ve won half the battle already.
When you answer the call, respond with, “Oh hi, this is ______. What can I do for you?” In this positioning, you are not the one selling. It’s your prospect that wants something from you. They have a problem, and they need your product or service to solve it.
This is a simple psychological tactic that you could use to turn the tables around.
Implement this same strategy with emails, proposals, social media or any other inquiries that you get. With whatever message you get, implement scheduling so your prospect can book a time with you. You can use scheduling software like Calendly or ScheduleOnce, it doesn’t really matter which one.
Get your prospects to book a time for a call, and have them call you.
If you give them a scheduling option, and they don’t book the call, that tells you that they’re not serious. You don’t have to waste time going back and forth.
If they do schedule the time, and they do call you, this shows that they have buying intent. They’re much more serious and committed. Now you have the power, and you can implement high-ticket closing techniques over the phone.
There are several other reasons why you should reframe the high ticket sales call from the very beginning, such as making sure your prospect is the right fit, doesn’t lie or give excuses. They can have many diversion tactics, so the point of your discovery call is to find out what they really want or what is really holding them back from buying.
Successful entrepreneurs and influencers often leverage automated webinars for their business. Your webinar is your bridge between your potential clients and your high ticket offer. It’s the vehicle to make them understand that you have this great offer that could help them. It should leave the prospect feeling inspired, excited, and driven to take action.
Webinars can be the most profitable lever in your entire business, especially for service professionals. They convert prospects better than almost any other sales media. In high ticket sales, you will find that you can make a lot of sales and gain subscribers if you deliver an effective sales pitch.
They also help you establish yourself as an authority in your field. When you’re doing a webinar, you present information that establishes your reputation with your audience.
Automated webinars run 24/7, which gives you a system to close prospects around the clock. Unlike many types of content marketing, webinars can lead quickly to high ticket sales. There’s an art and science to doing your high ticket sales pitch in a natural, comfortable, and respectful way which guides your prospect to think that your high-ticket offer is the next logical step.
A low-ticket offer’s marketing funnel gives prospects a free product in exchange for their information, and then leads them to a bunch of upsells.
This outdated strategy no longer works because it takes prospects too long to upgrade, and the client acquisition costs are too high for you to break even.
The affluent, players with money are not going through this funnel. If the content from your personal media platform provides them enough value, they will make the decision at their own pace to purchase your high ticket sales offer directly.
Discussing Fees, Compensation and Terms
How you get paid as a consultant
- Per hour: This model is used for time-based transactions such as consultations. But they are not ideal for a sustainable business model.
- Per term: This involves contracts with companies that require a time period longer than 3 months.
- Project-based: Regardless of time required, it involves the completion of a task or a series of tasks.
- Monthly or Annual Retainer: This is the ideal way to go so you are spending less time chasing after the client for payment. If you’re solving a major business or life problem, it will take some time. A lot of issues need more than 30 days to solve, and if you are helping your clients on a regular basis you might need to close a 12-month minimum ongoing contract. It’s better to have a longer agreement with your client so that they can be set up for success. A retainer will also help in making you focus more time on serving the client and delivering results. Use an automated payment system, or if you have to invoice at least get 50% deposit upfront.
- Fees + Other compensations: An example is doing revenue share. At the highest level of your high ticket sales business, you can request this.
When you invest a lot of time, energy and resources into accumulating the knowledge you need to eventually help your clients, you should be charging for your time – even for consultations. If you have a prospect who is asking you a lot of questions, you need to discuss your consultation fee right away before continuing.
You can still provide free value to your audience by producing content that they can read, watch or listen to, as long as it doesn’t take away from your time.
Free trials and discounted rates
Most entrepreneurs lower their prices because they are not good at selling themselves. A lot of business models try to get customers to upgrade to a higher price point after giving them a “free trial” or discounted rate on their products or services, but this instead creates a disconnect and lack of incentive.
You can’t jump from being “free” to a premium price, no matter how good your results are. It’s very difficult to convert customers who are not qualified from the beginning. This model simply tries to make up for the lack of ability to close well.
Sending proposals puts you at a disadvantage because the prospects have more of the power. By sending a proposal, you’re still trying to convince a prospect to do business with you. Usually there is a long waiting process after sending it, and if you follow up too much, you appear desperate. But if you don’t follow up, you lose the sale.
Instead, do a Terms of Agreement only after you’ve received a financial commitment from your client. Collect their payment information and then send a one-page document that outlines your terms. The contract is officially signed after they have paid.
Be transparent and discuss your fees upfront. Get the money conversation out of the way, so you can focus on what’s important, which is solving your client’s problem and helping get a result that they want.
Using an automated and recurring payment system
It’s critical to also establish that you are not a bill collector. Sending invoices and then chasing your clients for money ruins the relationship. So in your transaction, you have to set up an automatic and recurring payment system. Then you should go back to focusing on delivering value and solving their problem.
Why you should raise your prices (even if you’re new)
You must charge premium prices from Day 1 of your business and communicate your value well, because the market perceives you based on how you value yourself. When you undercharge for your product or service, it seriously harms your business and your life. Charging a low price will result in the marketplace perceiving you as cheap.
You will make things more difficult for yourself for the following reasons:
1) Short client engagements. Because you don’t charge enough, you will have a hard time paying bills and will have to constantly be looking for new clients.
2) Because it takes time to get a result, your clients will only get minimum results from you. Your time restriction will keep you from delivering the best quality service that you can.
3) Your clients will value you less and will not show enough commitment for you to create results. People vote with their wallets – the more they pay for something, the more they will value it.
4) You will always be in selling mode. Since the income you get from each client is so low, you need to be selling to more clients to reach your goal. You will be stuck selling all the time, instead of serving your clients. You should be spending 90% of your time on serving them instead of selling.
5) New clients make a very little difference. A guilt kicks in when neither you or your client care that much. You will fall into a cycle of constantly feeling stuck with doing something that you don’t want to do, because it’s not making you enough money, but you’re also forced to be constantly seeking new high ticket sales.
6) Working with clients who are penny pinchers tend to be more demanding, need more maintenance, need more babysitting, and complain a lot more.
Your clients are paying you to solve a problem for them. Even if you’re new to the market and feel like you don’t have enough credibility, as long as you can solve their problem, you can charge for your worth. You have to think from the angle of how much it is costing them to keep the problem they have.
Deliver excellent results
This is the overall underlying principle. As you raise your prices, you have to always deliver value. No fee is too high for success and almost any fee is too high for failure.
Will your clients get the results they want when you provide a service, deliver your work, provide your expertise, and they also follow through and take responsibility on their end? If not, it means you need to improve what you’re doing. If yes, then you should definitely charge what you’re worth.
You have to set the criteria that you want. Who are you looking for? What will you tolerate, or won’t tolerate? Who is your ideal client? You can’t lower your own expectations, because when you start low in the marketplace, your reputation will get stuck there. Your clients will get used to their perception of you, and will not respond positively to a “sudden” increase in prices.
For example, if you were trying to resell a Chanel bag to someone for $20, they would probably think that it’s a fake. But if you say that it usually retails at $2,500 but you’re reselling it for $2,000, then they would think it’s more legit.
Pricing itself, when done properly, is a marketing strategy. A lot of people in the marketplace perceive higher price as higher quality.
Higher prices lead to a better experience. A higher price might get you fewer customers, but they would be better customers.
Remember that your competition does not set your prices, you do. You’re the one that comes up with the price for your offers, and you have the final say on what price you declare on your website and the marketplace.
If you’re charging market rates, you’re basically letting your competitors set your rates for you. It’s not a good idea to look at what your competitors are charging and price your products or services based on the marketplace “average”. Don’t make the mistake of pricing low and thinking you can make up for it in volume. If your competitors are not good at communicating their value and are attracting the wrong kinds of clients, you don’t want to be doing the same thing for your business.
Your value is unique, so what your competitors charge has nothing to do with you. Your price depends more on how you do your marketing, how you package, your positioning, and how you do your high ticket sales.
All price resistance is in the mind of the business owner, not the client.
If you’re not getting any resistance when you tell people how much you charge, it means you’re charging too low.
When you’re getting a lot of resistance, then that means you haven’t built up the value enough.
But if you have some resistance, but they still pay for it, then you know you’re charging the right price.
Price cutting is a self-inflicted wound. Your competitors or clients don’t lower your prices – you do. It’s all in your mind.
Reflect back on a time when you cut your prices to be competitive. What was the experience like? Did your client appreciate the discount or did they feel they got what they paid for? And did they enjoy your work? Now think of a time when you may have charged a higher premium price, than you were used to. What was that experience like?
Common mistakes when making premium offers
1) Selling a premium offer at a low price. It doesn’t make sense to be selling a luxury item at a discount because this will make your prospects very skeptical of the quality. The perception is, if it’s that cheap, there’s a gap between the price and the perceived value.
2) Selling a low-value offer to a premium crowd. Always sell high quality offers at a premium price to sophisticated and affluent customers.
3) Making a premium offer in a low-value setting. It’s important to intentionally set up the right environment for your sale, because 80% of a deal is based on perception. When negotiating a high ticket sales contract, you should be dressed in your business attire and hold your meetings at a professional setting. Always think about what kind of setting or environment that you want to create in order to sell the price that you want.
4) Making a premium offer to a low-value crowd. This is the most common mistake entrepreneurs make, and unfortunately is what makes them doubt the value of their offers. They are simply the wrong people to sell any high-ticket offers to.
5) Making a premium offer with a low-value mindset. Most start-up entrepreneurs who are new and struggling don’t have confidence or belief in their offers, so they would subconsciously project their energy and values onto their clients. They have a scarcity mindset that makes them uncomfortable with the premium price they’re offering, and they think their clients think the same way. What you can afford should not stop you from selling an offer at its premium price.
Setting prices on the value you deliver
There is a different value proposition between clients that simply want information, and clients that want transformation. The clients who want transformation don’t mind paying a big amount for your service or product, as long as it works in solving their problem.
Don’t charge by the hour, because you’re not selling your time. You’re not even selling your knowledge or expertise. You’re selling the value of the outcome you deliver. As an entrepreneur you don’t get paid for your time. You get paid for the value you bring to the marketplace, and the results you deliver to your client.
It’s your job to figure out exactly what is the value and what is the outcome you’re delivering. Dig a little bit deeper into your client’s needs. Don’t just read into their technical needs. What are their emotional needs that you’re solving and fulfilling?
Principles for charging higher prices
Most of the time, the issue with charging higher prices is not strategy but just limited belief. It only takes you a second to raise your prices, you just have to be comfortable doing it. Here are some factors to consider when deciding on your price.
1) Price based on value. People pay for their value not yours. What you think is valuable might not be valuable to your prospects at all. So make sure to deliver something that they care about.
2) The greater the pain, the more you can charge. This means that the more pain someone is in, the more they are willing to pay. Think about the difference between a product or service that is “nice to have” versus being a “must have”.
3) Provide ROI or money at a discount. The bigger the result, the more you can charge. An example of a turn on investment: If you charge $2,000 a month at $24,000 a year for your digital marketing services, but have the ability to help your clients make $250,000 a year, then you are making 10 times the return. This is selling money at a discount.
4) Contrast pricing. You can raise the perceived value of an offering by contrasting it to a comparable higher end offer.
5) If you charge market rates, you are letting your competitors set your rates for you.
6) Provide payment terms for higher prices.
7) Guarantees. This means how much you stand behind what you sell. What kind of guarantees do you have? Is it a no questions asked type, a conditional guarantee, or no guarantee at all?
8) Results-driven results. The more performance-based, the more you can charge. This can be an arrangement where your clients pay you something upfront and then pay you the rest after they get certain results.
9) People afford what they want to afford – don’t judge before you ask thorough questions.
10) Stop discounting and start adding more value to your offer. Sometimes you can strategically discount in instances where there is a bulk purchase. You should instead start thinking of ways that you can add value to your offer rather than discounting.
What people are willing to pay more for
How can you provide five to ten times the value for any customer of your high ticket sales offer? And what can you do that would absolutely amaze them? Not just the bare minimum, but what would actually amaze them.
How can you get your customers the end results they want on a silver platter?
Most people are inherently lazy and are getting even lazier as the Internet and modern technology evolves. So think about how you can provide “done for you” services where you do most of the work and provide the final results they want. Instead of teaching them how to do something, you can charge for doing most of the work alongside them and for them. This means walking them through every step of a process until the end results without them lifting a finger.
Sample script to finalize the payment
“I’d like to talk about your expectations, but before that I would like to get the money topic out of the way. Let’s take care of that so we can focus on what’s important, which is helping you get results. Our contract will be paid on a monthly basis, and I will have your credit card on file. That will be automatically billed, and that will be done my merchant account or Paypal.”
Handling Customer Sales Objections
The reasons why people don’t buy from you
Even after giving your best shot at selling your products and services, and explaining everything well where it makes perfect sense, you’ll still have prospects that won’t buy from you. And some of them you won’t even hear from again. There are a few reasons for this:
1) Despite how great your product or service is, your prospect has no need for it, or might not need it now. You can’t convince someone if they don’t think that they need your product or services. There’s nothing you can do with these type of prospects, it’s better to cut your losses and save your time. Qualify and then disqualify them very quickly and then you move on.
2) There is no urgency to buy your offer. And delay kills the sale. When your prospect says “I’ll get back to you”, they don’t have any urgency to buy, and you’ll never hear from them again. This is because you haven’t given them a reason to do it right now.
3) There is no desire to buy the offer. People don’t buy what they need, they buy what they want. If there is nothing compelling or irresistible about the offer to your prospects, there is no sale.
4) The prospect doesn’t have the money or budget available right now to buy what you want to offer to them.
5) If they do have the financial capability to buy your offer, but are still not buying, they don’t see the value. This is likely because you didn’t articulate the offer in a compelling way where the value and price make sense.
6) People don’t buy from you because of the lack of trust. They don’t believe you, they don’t trust you, they don’t trust your product and services, and they don’t trust your company. Sometimes it’s because they don’t trust themselves.
Communicating your value
Look at the way that you close and the way you’re doing your marketing. If you’re unable to close your prospects, think about what you can do about the following:
- Are you creating trust in the marketplace?
- How can you communicate and articulate your value so people can see that it is totally worth buying what you have to offer?
- What irresistible offer can you provide so people desire what you’re selling?
- How can you create that sense of urgency so they buy right now and not tomorrow?
- What solutions can you provide based on what they need?
Common customer objections
“Let me think about it” – There are two approaches to this objection. What this response actually means is they don’t think you can help them. Or they don’t know if your offer is the right solution to their problem. Or they don’t know if they can trust you. They are skeptical and afraid to take action.
Set the agenda before the sales conversation starts
How you set up and frame the beginning of your interaction is critical. If you had been chasing the prospect, contacted them first and you act and sound like a typical salesperson, it’s very easy for the prospect to say they need to think it over. But then you usually never hear from them again.
So in the beginning of the call or meeting, you need to ‘set the agenda’ and pre-frame the conversation.
“Mr. Prospect, the purpose of this meeting today, or the purpose of this phone call today is to see whether if it’s a good fit for you and I to work together. By the end of our conversation, there are three things that you could say to me. First thing you could say is a yes, and you and I think it’s a good fit. And we’re going to move forward and we’re going to do business. And that fine, that’s it, that’s good.
The second thing that you could say to me is a no. And I want you to know it’s perfectly okay to say no to me. The third thing that you could say but that I don’t want you to is, ‘I want to think about it’. Because I’ve been doing this a long time and usually when people say they want to think about it, what they really mean is a no.
I would just prefer, just tell me a straight no. No hard feelings whatsoever. So, before we get started, before we proceed, can we make a simple agreement? You’re only going to tell me one of these two things, either a yes or a no, is that fair?”
Be direct at the end of the conversation
If you didn’t frame the meeting or sales call at the beginning, and you get this objection at the end, don’t be afraid to be direct and get the truth out of your prospect. Don’t let them get away with their diversion tactics.
“You know what Mr. Prospect, when people say to me that they want to think about it, what they mean is actually a no. You just don’t want to hurt my feelings. Isn’t this the case here? Before I get off the phone, Mr. Prospect, why did you call me in the first place? Is it the price? Well, let’s just pretend I could finance this for you or let’s just pretend we could offer multiple payments, we can break this up. Would that make a difference? Well, let’s talk about it then.”
You have to circle back to the core of their problems, then with absolute conviction and certainty, offer an alternative solution.
“Send me more information” or “I want to do more research” – When prospects say this, it means you have not given them enough information or you have not properly qualified them. You have not found out their needs, and that’s why they are stalling the sale. They don’t want to take action. They don’t see the reason on why they need to take action. If you can’t close on the phone, it makes no sense to send more information. Look past their smoke and mirrors and figure out the truth to this response.
“You know what Mr. Prospect, I’d be more than happy to send you more information, exactly what do you want me to send you? …
Well Mr. Prospect, let’s pretend I could give you the summary, the case studies, the testimonials, and references. And you talk to those people and you like them and you like what they have to say, and you like me, and we decide to do business, are you ready to do business today? Is the budget an issue? Do you have the money right now? Are you comfortable spending what we were talking about to solve the problem that you have?
… Okay so, it’s not really about the information now is it? It’s the money isn’t it? Well then let’s talk about the money. What can I do to solve this?”
“Send me a proposal” – Proposals are a waste of time. Usually you never hear back from your prospect when this objection comes up even after you send what they’re asking for. If you can’t close them on the phone, a proposal won’t save the deal. Instead of proposal, use a terms of agreement or terms of engagement instead.
“What were you hoping to see from the proposal? Let’s pretend I send you the proposal, and you like what you see, what’s going to happen next? Are you and I going to do business? Is that within your budget?… How are we going to work together?”
Find out early before you write down a single word. Get some kind of financial commitment before ever signing a terms of agreement. The proposal itself is not designed to sell or close the prospect. It simply spells out all the terms.
“Your price is too high!” – The goal here is to let him justify his own value.
“Is it a question of price or value? There were a lot of different options cheaper than me, so why didn’t you go to them? Why are we talking on the phone today? Why do you think people pay me that kind of money? Are you looking for a cheap price, or results? Does it matter if I charge you $10,000, $50,000, or even $75,000? At the end of the day, you’re going to double the sales of your company. What do you want to do here? Do you want to double the sales of your company? And you want my help. How much is that going to be worth to you?
I want to make sure that I’ve heard you correctly, is this something that you want to do, yes or no?”
Learn How To Handle More Objections and Resistance in Dan Lok’s 7-Week High-Ticket Closer™ Certification Program
As you’ve learned, the best approach if you want to close more sales at premium prices in your business is to apply High-Ticket Closing™. Once you understand its nuances and psychology, you’ll see how this outperforms conventional sales techniques.
Dan Lok leveraged High Ticket Sales to become one of the most highly paid consultants in the world. Later, he taught the same methodology to thousands of entrepreneurs, coaches, and consultants to help them succeed in their businesses.
Today, Dan Lok is the founder of the High-Ticket Closer™ Certification Program – a global movement of men and women from 100+ countries who help businesses close high-ticket offers.
Together, Dan Lok and his High-Ticket Closers™ have closed tens of millions of dollars in high ticket sales across dozens of industries.
To learn more about High Ticket Sales and the High-Ticket Closer™ Certification Program, watch the preview webinar here.