How does high ticket closing work?
If you’ve been following my work for awhile, you may have noticed I use the term high ticket closing very frequently in my videos, blogs, and social media posts. A lot of you out there have asked me exactly how high ticket closing works, and why it is such a valuable skill to have.
I’ve provided a simple explanation before in the past, but recently it has struck me that some of you are looking for a more in-depth explanation on the concept of high ticket closing. That’s why today, I’m going to explain to you exactly how does high ticket closing work, and how you can use it to your advantage in both the business and entrepreneurial world.
High Ticket Closing 101 – What Exactly Is High Ticket Closing?
The best way to explain this concept is with an example. Let’s say you are selling a product or service, and your goal is to generate a million dollars. Now there are many ways you can do this, but for now let’s talk about two ways to do this.
The first way is what I call the volume game. This method focuses on selling many items to many people, at a lower price. For example, you could sell something for $100 and sell it to 10,000 people in order to generate a million dollars.
The second way is what I call the margins game. This method is the opposite of the previous method – you sell fewer items to fewer customers, but at a significantly higher price.
Now imagine that you are a business owner or entrepreneur, and you decide to use the margins game, or selling high ticket items, into your business. Your focus is selling a $10,000 product to 100 ideal clients to generate a million dollars. Would you agree that a $10,000 product would be quite difficult to sell just through an email or Facebook post? Most likely.
Humans Are By Nature Social Animals
Humans are by nature social creatures. Research shows that when we are born, human touch is one of the most crucial factors that determines whether or not we survive. Besides food, water and shelter, they came upon a shocking discovery: According to a study, 35% of babies who are not held, nuzzled, and hugged enough can stop growing, and if the situation lasts long enough, even die.
Humans need social interaction in their lives and have a preference for it above any other means. This may seem hard to believe – especially given the fact that there is a wide disparity between introverts and extroverts. But ask yourself this question, if you were going to make a purchase that involved tens of thousands of your hard earned dollars, would you be more likely to make that purchase through an automated robot or machine, or would you prefer to talk to another live human being first?
They Are Going To Have Questions Anyway – Why Not Close Them As Well?
The first question in your mind would probably be why exactly the product is so costly. You would have questions such as what the product can do, how beneficial it can be and what the justification for that price is. Your customers are going to feel the same way. If you are a business owner and selling a $10,000 product, your customers are going to have questions and want to talk to someone before they make their decision.
This is why high ticket closing is such an advantageous skill – your customers have questions and want to talk to a human being. During those conversations with your prospects, a business owner who has the skill of closing can find out the greatest desires and objections the customer has. And once you have that information, you can influence and lead the prospect to see your perspective, and help them overcome all of their objections and make the sale. That is how the skill of closing works.
Take this skill to the highest level of business and you have high ticket closing, which strictly focuses on high ticket items. These are things like designer clothes, expensive jewelry, watches and luxury cars that cost anywhere from thousands to hundreds of thousands.
More Sales, More Revenue, Less Expenses?
Selling high ticket products comes with many benefits. Because you are catering only to a very specific audience – affluent customers who are wealthy and can afford your products, you have less things to worry about.
If you were running a business that focused more on volume of sales – lower priced products with a high volume of customers, there are more things to take into consideration. Wal-Mart is a good example of a business that sells at high volume and low prices. They are known for providing the lowest cost goods to their customers, and as a result cater to a larger audience than other retailers. They have to worry about things such as storage space, renting warehouses, making sure goods don’t spoil, making sure their prices are competitive to everyone else, and ensuring that there is a certain number of customers every single month.
Because they have to sell so many more products to make the same amount of revenue compared to a business that uses a high ticket model like Apple, they have a lot more things going on. They need more employees, more delivery trucks, more managers, more producers, more shopping outlets and more containers. These are all expenses that cut into their bottom line, costing them money.
High Ticket Items Make More Money In The Long Run
Apple uses a high ticket business model. For them, they need to sell only one iPhone 11 to generate $1,000 in revenue. How many products would a low ticket business model like Wal-Mart need to sell in order to make the same amount?
High ticket businesses are also more reliable. Taking again Wal-Mart as an example, since they have many more processes to keep track of, there is a higher chance something goes wrong. Assuming that the average Wal-Mart customer buys $50 worth of groceries, Wal-Mart would need 20 customers a day to match Apple’s revenue. Now here’s the issue most people don’t see: Of those 20 customers, what is the likelihood that some of them will be unsatisfied and make a return?
Because low ticket business models like Wal-Mart focus on volume, quality is less of a concern for them. Their focus is to have a high turnover rate in their business, and to sell a lot of goods at a low price. But for Apple, they use a high ticket business model and price their products much higher. This means that quality is of higher importance – leading customers to be more satisfied overall with their purchase and make less returns.
Being A Business Owner And A High Ticket Closer
At this point you may be wondering just exactly how beneficial the skill of high ticket closing is in your own business. And it is true – some of the most successful business owner’s today are high ticket closers and understand how closing works.
If you were to do the closing yourself, you would get on the phone with a potential prospect, and have a business meeting with them. Your goal would be to close them towards your high ticket product, which could easily cost as much as $10,000, $20,000 or even $50,000. Making one successful sale means that you would generate more revenue than most full time employees make in a month. But there is an issue.
Business Owner’s Are Extremely Busy
Visualize yourself as a business owner. Do you think you would have a lot of time to spend talking to prospects and closing them? Or would you already have a lot of responsibilities to tend to on a daily basis? You would probably have to juggle things like leading your team, managing people, hiring people, focusing on customer satisfaction, developing new products, tending to legal issues and accounting issues. There is a lot on your plate.
Theoretically you could block out time in your schedule and be the person to get on those closing calls with prospects yourself. But the problem happens when you run out of time. You can only handle so many prospect calls a day, and when you eventually hit that ceiling where your schedule is so busy and there is no time to do anything else, what happens to those prospects that are waiting to give you their money?
You don’t have time to get on calls anymore because your schedule is so full. You don’t get on those calls and close prospects, which means you don’t make sales and generate revenue. Now you’ve stagnated your business – preventing it from growing because there’s only so much revenue you can generate from sales.
When You Don’t Have Time To Take Their Money
At this point, you would need to make a choice. Do you keep handling these closing calls yourself, or should you hire a professional to help you out?
You’re already doing marketing, generating leads and have tons of prospects coming in every single day. These prospects want to buy from you. They have already expressed interest in your product and want to know more. The biggest issue is that you do not have the time to close them.
The easiest solution to this problem is to hire a team of professional closers. Your personal high ticket closing sales team, that can help you close prospects and free up your time to do other things. Instead of having your business growth be bottlenecked by a lack of closers, your sales team is here to help. The best part, is that you will never run into an issue of not having enough closers again. If at any time you have too many prospects coming in, you can simply just hire more closers to handle those calls.
It’s A Win-Win Situation For Everyone Involved
Every deal that your sales team of professionals closes, is another $10,000 in revenue that you as the business owner generate. Every time your prospect says yes – and remember, your sales team is handling all of the work, you make more money.
The only responsibility you have is to pay your sales team. And the amount you pay them, comes directly from the sale made. Your product is priced at $10,000 – of that total amount, would you be happy to pay someone 10%, 15% or even 20% on a commission basis to continue closing prospects for you?
Any smart business owner would be more than thrilled at this arrangement. You’re now able to close more prospects, and all you have to do is pay a small commission to your closer for all of their hard work. You walk away with $9,000 and pay the closer $1,000. You’ve done none of the actual work yourself, and now have much more time freed up to focus on growing your business.
A Business Model With No Money Down And No Risk
As a business owner, you are only paying results. Because you have a sales team that closes on a commission basis, you don’t have to pay them unless they make the sale. If they close the prospect, you are happy because those are sales you wouldn’t have gotten in the first place if it wasn’t for their help. If they don’t close, you don’t have to pay them anything – you lose nothing in the process.
That is the entire concept behind high ticket closing, and how it works. High ticket closing benefits both business owners and entrepreneurs. As a business owner, if you want to scale your revenue and grow without any limitations and free up your time, you need a sales team. You need a team of closers to help you close sales on a professional level to make more sales.
And as an entrepreneur, if you have the skill of high ticket closing, you can offer that skill to other business owners, companies and entrepreneurs around the world. You bring value by helping them with their sales and generating them more revenue. In return, you get a nice fat commission every time you close a sale.
From Starting Entrepreneur To Billionaire Business Owner
For those that wonder how does high ticket closing work, there are multiple options. Because high ticket closing is such a valuable skill, many business owners actually start off as entrepreneurs closing for other companies. By beginning their career as a closer, they gain the experience necessary so that when it comes time for them to start their own business, they already know what to do.
They’ve been there and done it, and know how to close deals for themselves. Entrepreneurs are people that understand the value of investing in themselves and learning valuable skills. They realize that they can eventually use those skills to their own benefit, once they’re ready. And because they’ve been in the marketplace for so long, they have the connections and knowledge to hire additional closers for their business to help them scale faster.
Steve Jobs is an example of a business owner who started out as an entrepreneur with the skill of closing. After being fired from his own company in 1985, he went on to start many other businesses, which Apple would eventually buy over. It wouldn’t be long before Steve would reclaim his title as CEO of Apple and revolutionize the way people communicate using technology. Even with the prestigious title of CEO, Steve would continue to use his marketing and closing skills during product presentations. His intriguing style of communication and presentation is how he has earned the respect of so many people around the world, and is a byproduct of the many cumulative years of learning and investing in the one asset that he deemed most valuable – himself.
High Ticket Closer’s Are High In Demand
The ability to close deals, free up time and generate more revenue is an invaluable skill. Business owners that are too busy to hop on prospect calls themselves, rely on high ticket closers to help them close more deals.
As a high ticket closer, you get to choose what company you want to add value to. You have the freedom to work from anywhere in the world, on your own time. You have no overhead to worry about, no products to develop, no marketing strategy to think about, and no employees to look after. It is a very simple process that allows you to have the comfort of working from your own home, or spending that time with your family and loved ones.
If you want to know how does high ticket closing work, and how you can use it at the business or entrepreneurial level, click the link here to join my free masterclass, and discover the high income skill of closing to live the life that you were meant for.