In this article, I’m going to cover exactly what is high ticket affiliate marketing and give some pretty compelling arguments as to why it’s a great business model to get into.
Picture this….
You’re on the Googs having a bit of a search for ‘How to make money from home?’ or ‘How to make money online?’
But you’re dumbfounded to see there’s over 3.7 Billion search results.
How can anyone work out exactly where to start and exactly what they need to be doing in order to build a business online?
First, let’s dive into what high ticket affiliate marketing is.
The dictionary definition is as follows;
“a marketing arrangement by which an online retailer pays commission to an external website for traffic or sales generated from its referrals.”
we’re getting to What high ticket affiliate marketing is soon…
Umm, okay in English please….
Here’s what that means:
Ever had the experience of buying a car? Or at least are familiar with the idea that people buy cars, right?
Well if someone goes to a car dealership and buys a car through someone, the dealer can receive a commission for making the sale of the vehicle.
That’s the same as affiliate marketing. You refer someone to a product and if they choose to buy it via your referral, you earn a commission.
This is done via an ‘affiliate link.’ That is, if someone clicks on your specific tracking link and buys the end product, you can earn a commission. Sometimes as high as 100% of the sale!
To give another illustration – think of a real estate agent. They sell properties and when they refer clients who buy the properties, they make a sale based on the price of the property. Depending on the country and the structure of fees, these could be 2% or more.
What are some benefits of being an affiliate marketer?
The cool thing about affiliate marketing is;
- It’s a $12 Billion dollar industry
- It has low or no overheads to get started compared to traditional businesses
- You can literally get setup in the next 30 minutes as an affiliate
- It doesn’t impact the purchase price of the items for sale
- There are millions of products you can be an affiliate for
- It’s a simple business model and has a low barrier of entry, meaning it’s great for people looking to start out or create a side hustle
To give some more context around affiliate marketing, let’s say you’ve been wanting to buy something for a while.
You decide to conduct some research in order to see the reviews…
You type in [product name] review.
Guess what?
See all those results?
Yep, affiliate marketers.
You’ve probably bought many items through affiliate links before. In fact, did you know Amazon is actually the largest affiliate network in the world?
Cool huh?
What types of products are there?
So affiliate marketing covers the sale of physical products, but my preference and what I encourage everyone to jump into is;
Digital products.
For example, things like courses, coaching programs, software and services.
Still with me so far?
but not without its complexities.
Now things start to get a little more fun.
Why digital products vs physical products?
Look, there are many ways to slay a dragon and I know many people that do exceptionally well out of selling physical products as affiliate marketers.
However, consider the actual commission rates you might get from promoting something through the likes of Amazon.
You’re receiving a commission for each sale of sometimes less than 2%.
Meaning if you sell a book as an affiliate with a value of $10, you’d receive…
what for it….
$0.20!
Ouch!
Probably not going to make a ton of cash to start with unless you’re able to get A LOT of people to see your links.
With digital products, the commission rates go from 10%, right through to 100%.
Why would anyone pay 100% commission on the sale of a product you may ask?
Well, in simple terms, they want to build a list of buyers so they can sell to those people again in future.
What is high ticket affiliate marketing?
Now that we have a firm grasp of what affiliate marketing is, let’s see what high ticket affiliate marketing is and why it’s a crucial component of your success online.
In simple terms, high ticket affiliate marketing is selling items that pay in excess of $500+ per sale.
Think of the mathematics behind this;
Most people promote products that pay under $100 per sale (low ticket affiliate marketing). While there’s nothing wrong with that, the numbers don’t stack up unless you have a large audience and are able to push volume.
Say for example you’re receiving a commission of $1000 for a single sale of a course you’re promoting.
If your goal is to make $10,000 per month as an affiliate marketer, you would only need to find 10 people to buy each month!
Contrast that with a product where you make just $100 per sale.
You’d need to sell 100 products each month just to hit $10,000!
Now, I know from experience it’s a lot easier to find less people (and is way better for your state of mind when you’re starting out).
I covered a few misconceptions about affiliate marketing in my post Top 3 Affiliate Marketing Myths & Why You Need To Do The Opposite To Succeed.
The reality is, it’s a lot easier to hit your income goals when you’re selling high ticket items.
This is the same principle taught to over 700 students and if you’d like to get the free case study on how I was able to go from $0-$1k in just 7 days, click here to join our free community.