Would You Spend $100.00 To Make A Sale Of $29.95?

Why would you spend $100.00 to make a $29.95 sale?

Would to Pay 100

These are great questions don’t you think?

They might be a little confusing at first, but when you read further in this article it will all make perfect sense. I promise!

So, I’ll ask the question again… Would you spend $100.00 to make a sale of $29.95?

Is your answer a YES or a NO?

You are probably thinking this is a trick question but it’s not really.

Allow me to delve a little deeper into the question for a moment.

You see, every business owner needs to work out their numbers. They need to understand their bottom line, their profit and loss. And we are no exception. And as accountants in our former corporate life, we fully understand the importance of working out our numbers.

And this is where we realised something very interesting.


So what is the average customer lifetime value? It is the expected income you will receive from a customer over the lifetime of that customer.

It can be complex to work out this metric but we have taken our commission earned over the past 3 months and divided it by the number of customers who generated the income for us. This is a simple way to do this and it gives us a benchmark to work from.

In our business we promote what is termed ‘high ticket’ or ‘top tier’ offers and so it makes perfect sense for us to spend $100.00 to make a sale of $29.95, knowing that our ‘average customer lifetime value’ is $1552.73 based on our recent calculation. (For more information on Average Customer Lifetime Value, see KISSmetric’s example on Starbucks.)

You would have to agree that $1522.73 is a great ROI (return on investment) in a 45-60 day window!

So let’s talk High Ticket sales.

Now your goal might be to earn $1,000,000.00. So we are going to break this down for you with numbers and illustrate high ticket sales.

To earn $1M you would have to sell

  • 100,000 items at $10
  • 1000 items at $1000
  • 250 items at $4000

The last option requires less effort and less customers to attain the sales and reach your goal.

With this model, you create more profits for the same marketing effort.

In other words, you make more money for the same effort when you sell high ticket offers.

That’s why being a member of The Six Figure Mentors (SFM) and Digital Experts Academy (DEA) makes so much sense. They have done all the hard work for you and you can start marketing today!

And what is also great about this, is you do not have to do any selling because SFM take care of all that for you so you can focus on finding your prospective customers.

Now to tie all this back to the $29.95 mentioned above at the beginning.

This $29.95 is a low entry level application pack used as a lead generator to the high ticket sales. And the reason for this – it gives everyone (the customer and SFM) an opportunity to see if this model suits the customer and if the customer suits SFM.

As a customer, it allows you to get a feel for the company so you can make an informed decision and see if the education, training and systems are a match for you and your goals so you can grow and start generating income online.

Are you ready to get onboard with the Six Figure Mentors and Digital Experts Academy?

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