When deciding what to charge, coaches proudly wave a flag of charging “high-ticket” prices. Only a few even consider a low-cost, subscription-based business.
Think about it…
Have you ever heard of a coach brag about their coaching being “affordable”? Or that “anyone can get it”?
Prob’ly not. And if you did, for every coach who told you they make their coaching “cheap”, you know 20 other coaches who sell their coaching for “high-ticket”. Am I right?
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Do you know what to charge for your services?
True, it’s a super-sexy thought to make thousands of
Personally, I was suckin’ the kool-aid on the high-ticket end when I started.
At one point I was charging anywhere between $2,000 and $10,000 to help someone build a marketing campaign. In that world, it was easy to justify the Godzilla-sized pricetag because I did all the work.
But in these new crystal waters of helpin’ experts write books, I got face-smacked with a new dilemma:
The majority of work didn’t fall in my hands, but in the hands of my client.
Do I still charge high-ticket for that?
I “Pssh, Yeah Right”-ed at the idea of charging less than 2,000
Deciding what to charge is not an easy decision.
You know that when you charge small, you attract small. And whoever buys ain’t even gonna take you seriously.
…And to heck with that, right!? You’d never let some penny-pincher kick your
Stuck, I sat. Pondering what the heck am I was gonna do with these powerful book-launching strategies that have catapulted businesses like clockwork.
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- Have a buncha offers?
- Package everything into a single, comprehensive course?
- Build tripwires and upsells?
- Sell via group coaching?
- Keep it strictly one-on-one?
If you’re lookin’ for the best model to use in your business, whether you choose a subscription-based business or a high-ticket one, you won’t find a one-size-fits-all solution (ask a buncha different coaches and they’ll give you a buncha different answers).
Here you’ll get the 3 reasons why I made the switch. It’s not a direct answer but you’ll be able to toss these around in your brainbox for a bit so you can make the best decision.
3 reasons to start a subscription-based business
- Predictable monthly revenue
- Give value to more people
- Follow in the footsteps of top marketers
1. Predictable Monthly Revenue
When you charge high-ticket, it can feel like a hope game.
You need consistent clients but that doesn’t always come easy. Especially when your traffic comes JV partnerships and you don’t know where the traffic originates from.
For example, can you sell a $2,000 package to a person in Pakistan where they’re living off of $500 per month? Maybe you can, but should you do it?
When you have a subscription-based business, you aren’t hoping on making big sales every month. Instead, you’re getting a bunch of compounding sales and are growing a predictable monthly revenue.
The predictability of monthly revenue means you never start from zero.
2. Give Value To More People
When you have a high-ticket business, yes, you work with the most serious clients who are ready for change. But you’re also immediately saying no to 99% of people who have the will to change but not the financial means.
When you have a subscription-based business, you may attract some nickel-and-dimers, but at least you give everyone an opportunity. The knowledge is there for them to do what they want with it.
That on its own helps me sleep because I know I’m giving more people a shot and for some people, that’s all they’re looking for, a chance to change to change their lives.
3. Follow In The Footsteps of Top Marketers
I won’t even try to pretend that I’m some untouchable goo-roo who’s got no need for mentorship. I keep role models and mentors now and intend to for the life of my career. Mentorship is that important.
And when everyone I follow adds a monthly recurring revenue stream to their existing business, I’m paying attention. Especially when these guys have long made a living on selling high-ticket…
I ask myself, “What do they know that I don’t?”
Then I ask them directly, “Why the move to a subscription-based business?”
Here’s a sample set of the reasons offered:
- Simplify what you sell
- No need to make a ton of products
- Predictable revenue (as mentioned)
- Focus on continuously improving one product
- Automatic customers
- And a big one… Selling subscriptions don’t mean you can’t sell high-ticket (you can do both)
I made the switch. Not for any one reason, but for all the reasons above, I’ve been ‘suaded.
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So far the move has left a burning hole in my pocket. The good thing is that I followed a mentor’s advice and prepped for the dip in revenue.
While the revenue hasn’t matched up, the simplification has. Business is easier. My offering, easy to explain and keeps me focused on the single goal of helping my clients launch their books.
This pivot is already paying off and I’m excited to serve more people and make a wider impact.
What’ll you do? Will you follow my move to a subscription-based business or stick with high-ticket?
Building a pricing model and figuring out what to charge is one of the most frustrating tasks in your business and no one can answer this question for you. But from this guy’s experience, it’s a move I wish I made a long time ago.