Activating This Resident Glory

The initial start-up cost of online business is crucial to your success in a home based business. Many people only think of themselves when starting a business. Many people that are able to jump into high ticket programs do so because they have the financial ability to do so. But we must think about the ’average person’ that is hungry to make money from the comfort of their own home.Call it what you want – “price point”, “start-up cost”, “price threshold” (the initial fee to get registered and started in an online opportunity), but it is crucial that this amount is not priced too low, or too high.

High Ticket Programs
There are a couple problems with businesses that are too highly priced. When deciding on a home based business, you must view each opportunity from the perspective of the ‘Average Joe’. Think about the school teacher, the car salesman, the stay at home mom, the police officer, etc. With a high ticket program, you will have tremendous fallout. What is fallout, you ask? This means that the majority of people that view your opportunity will be immediately disqualified because of the price. I believe the ‘price threshold’ is $1000. Anything over $1000 is way to much for a business. Maybe it is not too much for you or me. But the average person does not have more than $1000 to start an online business. Another problem is that most people that are looking for a home based business have never ran on online business before, or if they have they probably don’t know what they are doing, or else they wouldn’t be looking. They would already be successful in their own niche. These kind of people don’t know or understand the costs of running a successful online business. They don’t understand the costs of continual advertising, maintenance fees, websites, hosting etc. Even if people look at an opportunity that is $3000, most normal people think that is all they need to get started making money. Here is a secret most people don’t know. The number 1 most important thing to running a successful online business is not a great product, but knowing how to drive quality traffic to your website. There are people that don’t even have a good product, but they are making thousands a week off the internet because they know how to drive tons of traffic to their websites. Here is an example: If a business costs $1000 to get started, and you make $1000/sale, it might costs $100-$200 in advertising to get one sale. And it might only take you 200-300 visitors to your site to make that sale. If this same program costs $3000, it might take you $1000 in advertising to get that one sale. And it would take 800-1300 visitors to get that one sale.Here is one other thing to think about. How many people do you know that would invest over $1000 to join an opportunity without speaking to someone? If you join a program that is over $1000, you will more than likely have to be great on the phone.
Low Ticket programsThere are also a couple problems with low ticket programs. I have been involved in a number of low ticket programs. They are very difficult to make any kind of life-changing income. Think about it, why are people looking to start a home based business? They want to change their life! Making a $25 fast start bonus never changed my life. I made a little bit of money with small ticket items, but never enough to get me out of the cycle of my ‘JOB’. Plus, it takes the same amount of time and money to market a low ticket item as it does a high ticket item. As I have tested this over and over again, I spend the same amount of money in advertising costs to make $1000 sales consistently as I do to make $70 sales. This might blow your mind, but I make way more sales at a $1000 price point than I do at a $70 price point.

In my opinion, the best price point for starting a home based or online business is between $300 - $1000.  Check out my site, www.AvgJoesEarnBig.com for more information!

Filed under: Home Based Business