Which is Better for a Home-Based Business, Big Ticket Items or Small?

There is a debate in the home-based business world. Is it better to sell a few big-ticket items or to sell more low-cost items? What's the answer?You want to start a home-based business. You love the idea of making money from home. No alarm clock to get up to every morning and no boss to answer to. You call the shots. But there seems to be this big debate. Some people say that big ticket items are better because you only have to sell a few every month to earn a decent check. Other people say that you need inexpensive products because they are easier to sell. Which is true?

Arguments can be made for both, and they are. That is what makes it so confusing. How do you choose the best company to start your network marketing business with?

The Big-Ticket Home-Based Business

There are many companies that sell big-ticket items, things that cost hundreds or even thousands of dollars.

The more something costs the harder it is to sell. First you have to find prospects who have the extra funds to purchase your product. Your prospects have more questions. They want assurances that it is a good investment. Therefore the selling process can take a lot longer.

Think of buying a car. You probably don’t just go to the dealership, point out the car you want, and drop down your credit card. No. You might do some research online first. Then you go to a few different dealerships and test-drive some cars to see how they feel. You are only ready to buy after you know exactly what you want and have checked it all out.

The nice thing about big-ticket items, the thing that gets people interested in selling them, is that you don’t have to sell very many to make a lot of money.

A real estate agent who sells million dollar houses only has to sell 4 homes in a year at a 3% commission to make a six-figure income. Sounds very good, right?

The Small-Ticket Home-Based Business

There are also many companies that sell small-ticket items, things that cost from a few dollars up to a hundred dollars or so.

The less something costs the easier it is to sell. Your target audience opens up more because you don’t have to target only wealthy people like you do with the big-ticket items. People don’t ask as many questions about less expensive items and the sales process can be much shorter.

With less expensive items people are willing to take more of a chance to see if it will work for them or not. If it doesn’t,  it isn’t a big deal because they aren’t out much. If it does work, great! It was money well spent.

Consumable items can be even better. If they like it after the first purchase they may continue to purchase it on a regular basis. That builds a recurring income month after month.

Of course, less expensive items means less income generated per sale. You have to sell a lot more every month to generate a decent income.

Which Is Better for Your Home-Based Business?

It’s one of the questions that makes network marketing hard, right? It really depends on you and your experience in selling.

If you are new to network marketing and your home-based business then I would recommend lower-cost items. Like I already said, they are easier to sell. Heck, your family and friends may buy just to get you to quit bothering them.

As you get more experience and learn how to actually sell your product successfully to people that you don’t know then you can move up to more expensive items.

For an experienced network marketer who is comfortable with selling the choice comes down to a preference of one product over the other. You can sell any product as long as you have a passion for it. The price doesn’t really matter.

Why Choose? Pick a Company With Both

That’s one of the many things that I like about the company that I am with. They have a large catalog with prices ranging from $15 to almost $1500. You can combine a few items that work well together to create packages to sell for even more.

That leaves the door open for new people to gain experience by selling the less expensive items and work their way up to the more expensive. Experienced people can come in and immediately sell the bigger-ticket items immediately if that’s what they prefer.

The price range also keeps your prospect pool open because you have a solution that just about anyone can afford.

I mentioned consumable items too. When you get people on a monthly autoship you create a base income so that you aren’t starting at $0 every month.

How I’m Doing It

I’m building my network marketing business online. I give the same amount of attention to each of the products that my network marketing company offers, so I get a mix of big-ticket and small-ticket orders. Obviously I get more orders for the low-priced items but I also get orders for the more expensive items mixed in.

I think one good approach is to introduce new customers to the product line with the inexpensive items and work them up to the more expensive ones as they gain experience with the products and the company.

Further, I can introduce the business opportunity to the customers who really enjoy the product and might be open to building their own business.

What’s Your Choice?

If you are in a home-based business, which do you prefer to sell? Do you like to sell a small number of big-ticket items or a lot of lower-priced products? Or somewhere in the middle with a mix like I do?

Share your thoughts in a comment below, and I always appreciate it when you share my posts with your followers on Facebook and Twitter.

Thanks for reading.

 

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2 Responses to Which is Better for a Home-Based Business, Big Ticket Items or Small?

  1. Hi Ben
    Thanks for this really topical post, and so well-explained. You are spot on that recurring income is the gold dust of successful marketing – not the high end ticket sales.

    But…right now I am testing out some free content products as a way of building rapport and trust with people. I will make a podcast about this soon, but it seems to be the way that ethical online markets are going – where you offer massive value with your free introductory content right from the start and always over-deliver by ten times. People start to love what you create, and that trust leads to sales all the way through the funnel.

    In my experience, when we are offering genuine solutions to peoples’ problems, they will always be OK buying our products even at the high end of the funnel. Some marketers are over-cautious about offering high ticket products at the end of their funnels, because they don’t believe people will want them. But it really is where your income becomes serious when you can convert these sales. The old equation – which makes more sense? 500 x $10 or one x $5000? In my experience 500 sale a month is far more hard work that one… what’re your thoughts on this? Richard

    • Hi Richard. Thanks for the comment. You’re absolutely right. Trust is the key. Everything you do in marketing is to build trust and then keep it through your entire relationship with your customer.

      I don’t see any reason to be worried about offering high ticket items at the end of the sales funnel. You aren’t forcing people to buy anything. It’s an offer. They get to choose whether the offer is right for them or not. If you really have their trust then the high price of a single offer shouldn’t harm that trust. They have received benefit from what they have purchased and will likely stay around regardless.

      The question of 500 x $10 or 1 x $5000, I say both. If you get the $5000 sale then the $10 sales make for nice bonuses. If you don’t get the $5000 sale this time then the $10 sales help you bridge the gap until you get the next one.

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