Importance of Low-Cost Offer
The Importance of a Low-Cost Offer to Increase Conversions of Your High-Ticket Item
Your high-ticket offer will convert better if you have a low-cost offer ahead of it on your customer journey.
I explain in this video, a recording of a Facebook Live broadcast (be sure to like my Exactly Write Online Marketing page to get notifications of future broadcasts).
Getting someone to whip out their credit card and pay you thousands of dollars is pretty tough if they don’t already know, like and trust you … if they haven’t already experienced your products or services. It’s not impossible, but they’re not very likely to do it.
Conversely, if they HAVE experienced your products or services … something related to your high-ticket item, perhaps, or something similar but smaller … they’re more likely to bite off on the big-ticket item.
Think about it. Would you pay hundreds of dollars for a bottle of wine from an unknown winery that you know nothing about? Probably not. But if you’d tasted the wine before, and liked it, you might. You’re more likely to because you have some prior experience to inform your buying decision.
If you sell a high-ticket item, you need to follow the same strategy. You must give your prospect a prior experience, a small taste, something to help them feel confident in making that choice to buy.
Your Low-Cost Offer is More Than a Lead Magnet
Your low-cost offer is NOT your lead magnet! The lead magnet is a valuable freebie that your prospect receives in return for giving you their contact information. It’s at the top of your funnel.
Your low-cost offer is AFTER your lead magnet. You can offer it on the thank you page once someone’s opted in for your lead magnet, or in the follow-up emails of your drip campaign, but it is something that they actually purchase.
The folks at Digital Marketer call this low-cost offer a tripwire. Chalene Johnson calls it a baby offer. The idea is to turn your prospect into a paying customer, which changes their relationship with you.
Why is this important? Because once someone has purchased something from you — even something small — they’re more apt to buy something else.
So your low-cost offer needs to be something that moves them forward on the customer journey toward your high-ticket item, but at a no-brainer, affordable-to-anyone price. Depending on the price of your big item, your tripwire item should be in the $10-$100 range.
What Can You Offer at a Low Cost?
Some ideas of low-cost offers include mini-courses, workbooks, planning guides, books (physical or e-format), introductory level memberships, templates, etc.
When you’re deciding what to offer, think about what your prospect needs to experience to make their decision to buy your high-ticket item easier and more logical. Ideally, it should give them a taste of the results they’ll get from being your client, customer or patient.
Something that’s valuable in and of itself, but leaves them wanting even more.