19: Myth Busting: The Truth About Low Ticket Products and Ad Costs

Summary

In this episode, Stacy Covitz debunks the myth that low ticket products lead to low advertising costs. She explains the reality of ad spending for low ticket offers and emphasizes the importance of having a strategic approach to marketing these products. Stacy encourages business owners to understand the true costs involved and to consider the potential for profitability through effective advertising strategies.

Takeaways

Low ticket products do not equate to low ad costs.
A successful launch often involves significant ad spending.
Many entrepreneurs have unrealistic expectations about low ticket offers.
Strategic planning is essential for marketing low ticket products.
Building an email list can be a benefit of low ticket offers.
Breaking even can be a valid strategy for customer acquisition.
Understanding the ad spend is crucial for profitability.
Low ticket offers can lead to upselling opportunities.
It's important to have a clear strategy for running ads.
Consulting with an expert can help optimize ad performance.

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Transcript

Stacy Covitz (00:01)
Hello, thank you so much for joining today. Today's episode is a myth busting episode. And it might be a series depending on how it goes. today.

Here's the myth. Low ticket product. a low ticket digital product, $9, $27, $37, whatever it may be, is going to equal low cost ads. That is not true. So, and you know, it, makes sense. It makes sense that

So just because your product only costs $9, it makes sense that you might think ads won't cost very much, but...

That is not true. What you don't know or what you might not know is when you see online businesses, course creators, or people that are doing, talking about, made a hundred thousand dollars on my last launch. Those kinds of things. Right. And you think, my gosh, yeah, I'm going to do that. And if you're like me.

You figured out how to do it and then you found out, no, that's not going to happen unless I have a certain strategy. Now, what you also might not know is a hundred K launch using just a $27 product.

If you knew how much was spent in ads, holy cow, holy cow, you'd be amazed. So 100K launch doesn't necessarily and most likely does not equal 100K profit. A lot of times you'll find out that they spent $80,000 on ads.

Now are we going to poo poo a $20,000 launch? Heck no. But it is a little bit misleading, isn't it?

I can't tell you how many people have come to me with the hope and the goal of selling their $27 product, their $97 product and making a killing. And they want to spend $200 or $300 on ads. And then we have the conversation.

and it's disappointing. And my mission is always to make sure that business owners aren't running ads for their business that don't make sense or that are going to waste a lot of money. And thinking that you can spend $200 on ads and have a very large launch with a low ticket offer.

is understandable why you'd think that, but no, that's not going to happen. Now, am I saying low ticket offers aren't worth it? Heck no. They're an amazing offering that you could have in your online business, but it needs to be intentional and there needs to be a strategy behind it.

And we need to know the reality of how it actually works and how business owners are actually making them profitable. They have a lot of great, there's, so many great reasons why you should have a low ticket offer. You could build your email list. You could have products on the back end that you upsell to which

if you're going to run ads is a great strategy. You could.

Maybe you're willing to break even. Maybe you're willing to break even with your low cost product because you just want people in your world because you know you have this amazing program on the back end.

So people get frustrated and disappointed when they think I'm going to create this $27 product and I'm going to get rich. All I have to do is run some ads and I'm going to sell out and it's going to be amazing. And I don't want to discourage you. you have now, this is good news. If you have a low ticket offer.

and you think you want to run ads to it now that you've heard this episode and you know that you can't do that for $200 but it is a good strategy. I am happy to talk to you about it. I know how to do it. I know how to get ads running so they could actually make you money in your business but there's a whole entire strategy behind it.

If want to have a conversation about it, reach out to me. I would love to do that. And again, thanks so much for listening, watching, and I will see you next time.