Which is Better? High or Low "Ticket" Products?

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Which is Better? High or Low "Ticket" Products?

Postby Lou Abbott on Mon Jul 06, 2009 12:50 pm

It's interesting. I just read two opposite requests . . .

In a recent forum post here:

    1. "I Want To Join An MLM That Sells High-Ticket Items"

And, I got this emailed to me, as the editor of, this morning ...

    2. "I am looking for something that is affordable for everyone and or can save them enough money that would entice people to join. Plus it has to have a good pay plan so you can make some good money with the program."

Interesting, yes? Both say they are looking for the opposite criteria. But do they both have opposite goals?

It started me wondering about the best way to respond to my email sender.So I invite your comments.

Here are some starter ideas that may get you thinking:

    Which is better, high or low ticket items, and why?

    What do you think are the underlying goals that each is trying to achieve and will their stated criteria help them reach their goals?

    Are there other criteria that are even more important in light of their goals?

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Re: Which is Better? High or Low "Ticket" Products?

Postby Matt Adamo on Mon Jul 06, 2009 1:37 pm

Using attraction marketing i personally think that high ticket (500$-1500$) programs are better than low ticket programs. If a lead trusts you and they know that you will lead them to success it doesn't really matter the price as long as its not too out of the question.

The other reason high ticket products are better is because it attracts all the right people. Generally if someone is willing to pay upwards of 2-3 hundred dollars they are also willing to work hard.

And lastly there is just more money to be made in a high ticket program. If you are selling a product for 300$ and only 1% of your leads actually joins you thats still 300$. If you were in a 10$ opportunity you would need a 30% conversion ratio to make the same amount of money. (And if you ever find a company with a 30% conversion ratio, hit me up.. haha)

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Re: Which is Better? High or Low "Ticket" Products?

Postby Peter Arnold on Mon Jul 06, 2009 3:03 pm

Hey Lou:

Great question...

My own thoughts on this are as follows...

Personally, I'm associated with "both" - a Top Tier Direct Sales biz + a Network Marketing biz (although not a "traditional" one).

Mike Dillard (and others) see these two models as identical - except for their Compensation Plans - I happen to disagree slightly :-)

I see pros and cons with "each" model...


TOP TIER // Direct Sales- The primary advantage here is that you generate a "large commission" - up front - $1,000 / $5.000 / $10,000 - immediately (from the purchaser, not the company). Then, "with" that much larger commission - you can "invest" it - to produce an on-going (residual) income for yourself, instead of waiting to receive it from the company. Also, there's no need to worry about recruiting a huge "downline" - or to see them dropping out (and thus, killing your monthly checks).

However, because of the much higher (once-only) cost, up front - these Top Tier deals tend to limit the number of potential prospects - especially given the current recession. Now, the CHL ("Coffee House Letter" - which 'promotes' these Top Tier deals) would have us believe that this is a 'good' thing - as that higher cost "weeds out" the ones you don't want as partners in the first place. Hmmm...


'Traditional' MLMs- The main advantage with these is the "potential" for a higher residual income - note that I said "potential" - IF you recruit ((and 'retain')) a large downline, you can generate a sizeable monthly check. Also, with the smaller entry costs, 'traditional' MLMs will attract a larger pool of potential prospects (which will obviously include some 'tire kickers' too) - but this pool, when sponsored, can create powerful "leverage" to grow your business.

However, the business model of "traditional" MLMs is flawed - because it's primarily a RECRUITING model - not a CUSTOMER based model. A 'traditional' Network Marketing business is based on "recruiting other Distributors" - who go on monthly Autoship ("self consumption") - there's very little "Customer acquisition", unfortunately. A 'traditional' MLM therefore, has an unstable base (mostly other Distributors) - consequently, it will tend to unwind - hence, the high attrition (like the CHL says). A healthy Home Business needs a Customer-to-Distributor ratio of at "least" 75-to-1 respectively. That's very, very rare with the vast majority of MLMs ('traditional' MLMs, that is).


Our SUITABILITY? - But I believe there's a much more important factor here that few tend to consider (as to which business model above to pursue) - and that's the four (4) different PERSONALITIES.

For starters. the better we "understand" these (4) personalities - the quicker we'll learn HOW to "communicate" with others (including our spouses / partners / children / business associates, etc) - and perhaps even more importantly, the faster we'll learn that not everybody is "suited" to a particular MLM or Top Tier Direct Sales deal.

As a student of the (4) Personalities myself (some term them as - RED - GREEN - BLUE - YELLOW) - I have learned of the great strengths ((and weaknesses)) of each personality type. We all have some of "each" of the (4) traits - but we also have "one" dominant trait. Once we learn of this, within ourselves and others, I believe we'll be far better equipped to become successful - in life.

-- Reds = 15% of the population
-- Greens = 35% of the population
-- Blues = 15% of the population
-- Yellows = 35% of the population

Top Tiers - For example, I now know, very well - that "I" am not suited to a TOP TIER Direct Sales biz at all, personally. It takes a certain type of personality to be really "successful" with a Top Tier deal - and that's one whose personality is primarily "Red". Yes, Attraction Marketing skills, and a good Marketing 'System' [like CCP or RFS] can help - but otherwise, you'll need aggressive "closing" talents [a term I dislike] to win. I'm mainly a "Green" - Greens [and Yellows] will almost "never" build a Top Tier Direct Sales biz successfully :-)

Until we become knowledgeable about these important personality differences, I believe we'll continue to get involved with businesses that we're most likely entirely unsuited for.


Anyway Lou - that's my own .02-cents worth (Canadian).

I appreciate you (and your '')

Sincerely / Peter A.
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Re: Which is Better? High or Low "Ticket" Products?

Postby Jerry Chen on Mon Jul 06, 2009 3:23 pm

louabbott wrote:.

Here are some starter ideas that may get you thinking:

    Which is better, high or low ticket items, and why?

    What do you think are the underlying goals that each is trying to achieve and will their stated criteria help them reach their goals?

    Are there other criteria that are even more important in light of their goals?

Lou Abbott

Hey Lou -

I think it depends on the target audience.

If the target audience are existing network marketers, for the most part, it'll take a while to get these prospects on board because they are likely in an existing deal. In this scenario, a "high ticket" offer, most likely direct sales or biz opp of some sort will probably be more appealing to the prospects because they don't seem to directly compete with their current MLMs. That being said, the high price will translate into lower conversion, but it pays well so it works.

If the target audience are people looking for business opportunities a more affordable deal is probably the way to go to gather enough numbers to make it work.

So the superficial goal of both is the same, which is to make money. The products and services are built around the idea that people want business opportunities to create income.

High-ticket offers, say GPT (get paid today), give hefty commission generally rely heavily on one-time purchases.

More affordable offers rely on auto-ship and continual purchases, such as diet pills, juices/potions, skin care etc. Smaller streams but a bit longer lasting (relatively).

Which is better? It's all a matter of opinion. I think how attraction marketing is taught today direct the students to target existing network marketers... hence we see and hear people make good affiliate commissions from ancillary products like MS, Renegade Network Marketer but not really sponsoring a whole lot of people into their MLM. It's "better" postured to get people to buy into a high ticket direct sales model.
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Re: Which is Better? High or Low "Ticket" Products?

Postby Jackie Ulmer on Mon Jul 06, 2009 4:29 pm

I think the key word to avoid is "better>" It's a dangerous "lumping" of everything into one or the other. What is "better" for you may not be "better" for another.

The key is find what is the best fit for YOU and then focus your target marketing around others who may fit that as their "best" profile.

It's important to be confident and have a very solid posture and belief when speaking to prospects offering a high ticket item. If your own belief is not there, or you are not confident in what you are offering, it will come through to your prospects and you will not be successful.

Become a student of what you are offering and make sure you are sold yourself, whatever you choose, and then go for it.
EXPECT Success!

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Re: Which is Better? High or Low "Ticket" Products?

Postby Lawrence Bergfeld on Mon Jul 06, 2009 5:34 pm

It does not matter if high or low ticket products are better. You have to have an excellent product that people are raving for and share with belief third party testamonials. You cannot share things that are to your own advantage because then people will act skeptical towards you. For example if you are asked if the product you sell is going to last for a long time you might answer "My next door neighbor used one for four years and it is in good condition." Your next door neighbor is answering the question for you even though he is not around.

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Re: Which is Better? High or Low "Ticket" Products?

Postby Forest Marie on Mon Jul 06, 2009 6:38 pm

High ticket.

It's the same work anyway, so why not get paid more...
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Re: Which is Better? High or Low "Ticket" Products?

Postby Erik Shear on Mon Jul 06, 2009 6:59 pm

I am of the opinion that high ticket items are better to sell simply for the fact that the margins are better and your initial commission is much more substantial. Given the attrition rate in any MLM is astronomical why would you work your butt off for meager earnings. Lets say you and your buddy have attraction marketing licked and you are able to generate 100 qualified leads per month all dying to see your offers. You both get a very good response and you convert 10% of those people and sign them up into one of two opportunities:

You represent Company A which sells a high dollar product that pays a $1,000 commission.
Your buddy represents Company B and sells a product which pay's $30 on a two unit purchase plus a cycle bonus of $20 per 10 units sold.
Assume that each company has a residual component and bonuses to there pay plan.

If you convert 10% of your leads that means you sponsor 10 people every month...
Company A pays $1,000 x 10 = $10,000
Company B pays $50 x 10 = $500

Holy Smokes!!! that's a huge difference...
Now consider the average cost per lead from a PPC advertising campaign. prime keywords cost anywhere from $0.70 cent to over $5.00 bucks per click. But let's say you are a PPC genius and are getting 0.50 cents a click.

1000 leads x 0.50 = $500.00

What does you paycheck look like now?
Company A nets: $9,500
Company B nets: $0.00

But what about other bonuses and overrides? Well Company A pays you a matching $1,000 for all sales made by your front line distributors. Company B pays out of pool based on cumulative volume. Depending on what those are you will most likely come out ahead but with attrition rates higher than 90% which means that you can never stop recruiting if your in Company B...EVER! and since your overrides are based on volume your income is greatly influenced by the average stick rate of a common distributor. So after a year of hard work you both have sponsored 120 new distributors of which 12 have stuck around that are active in the business. It has cost both $6,000 in advertising and netted the distributor in Company A $114,000 and $0.00 for the distributor in Company B in straight commissions. If you add in the money made from your downline given the senerio I gave then it is no contest.

The choice is clear to me that if you want to have the most success the fastest then selling higher ticket items are the way to go. You need fewer people to generate your desired target income and since you are payed upfront you don't have to worry about attrition as much if at all. The one thing that most MLM companies sell you on the vision of a legion of loyal distributors beneath you making you this god like 6 figure a month earner while you sip coronas on the beach. The cold hard truth of the matter is that attrition and the internet makes that dream nie impossible to attain. For 99% of the people you sponsor most will not make it past 90 days in the business.

There is always exceptions to this but I feel this is about par for the course.
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Which is Better? High or Low "Ticket" Products?

Postby Lawyer Marketer on Mon Jul 06, 2009 7:24 pm

Hey Eric,
You got it! I would rather spend my marketing budget and time to find those ten people that are willing to purchase the high ticket item in the top-tier program, and get my large commission immediately, then spend my time and budget gathering 100 prospects to purchase product for 1/10th of the value (or price - hopefully they are about the same), only to have that organization wither away because no one makes any money.

The double bonus is that those people who have invested in the business at the higher level are MORE MOTIVATED to stay with the team and build the business. Once your team members are INVESTED, both financially and emotionally, they will be much more likely to put in the time to make the business work. (and if anyone didnt know, yes, it takes WORK to be successful as an entrepreneur!)

So, now you only have 10 people, OH NO!, but you earned $50,000 in commissions, and each of these individuals is motivated to build their business and duplicate your success.

Ill stick with the "high ticket" products and services.

Read the Coffee House Letter for more information on the benefits of the "Top-Tier" Companies.
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Re: Which is Better? High or Low "Ticket" Products?

Postby David Medina on Mon Jul 06, 2009 10:03 pm

I dont know if one is better than the other. I would question though why the desire for high ticket items vs low. Of course, if you are an experienced marketer and just looking to diversify, I suppose it might make sense.

However, I believe that with one or the other, the monetary success is generated more with the ability to duplicate your process as a leader. After all, the cost of the items does play some role, but ultimately your organization succeeds on the value of your teachings, the value you bring as a person. I think you could probably do just as well in a "low ticket" biz as a high one. The ticket to success is your ability to properly mentor and teach. I appreciate the opportunity to contribute.
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