If you are into affiliate marketing then you must have read related articles, books, and guidelines. Almost all of them say one thing when it comes to picking the right product, and it is… “Pick a product that sells well”.
Well, they are not wrong; they are very much right, but this recommendation is made by keeping the “number of sales” in mind and not a number of dollars one is earning. Let me ask you a simple question- Do you take a purchase of $1 as seriously as you take a purchase of $10,000? The answer is NO. Why? $1 is not the money? Off-course it is, but it is way less than $10K. We make tons of small value purchases and few high-value purchases each month. Maybe, its reason is that necessary things are of low value and high-priced things are not necessary for living as such.
Now, think of a country or world level. Top 10% of adults hold 85%, while the bottom 90% hold the remaining 15% of the world’s total wealth. OMG! What a glitch! You can clearly see that number of deals made for low-priced products are SUPER high than the number of deals made for high-priced products. So, what is the point with picking high-priced products over low-priced products for affiliate marketing?
Here, are the various logics which favors high-priced products –
- Earning higher amount is the goal and not higher number of sales– Let’s do some math here. Suppose you are thinking of one high-priced product (say $10,000) and one low-priced product (say $50). Suppose your affiliate commission is 20%. Now, you’ll earn $2000 with every sale on high-priced product and $10 with the low-priced product. Obviously, your website can’t get top ranks instantly, you need to nourish it for several months. So, before your website gets ranks, you are completely dependent on social media sales. Now, what do you think will be easy… single deal of high-priced product or 200 deals of low-priced product? A normal beginner can’t even think of making 200 deals on Facebook or LinkedIn or Twitter, but yes, one deal can be making for sure.Let’s do little more maths. Suppose conversion rate for the low-priced product is quite high (say 10%) and conversion rate of the high-priced product is low (say 1%). Now, if you have 1,000 people to contact then there will be 100 sales for low-priced product making you $1000 and there will be 10 sales for high-priced product making you $20,000. What a big difference!!
- Generally, High-Priced Products have less competition – Seems price and competition are quite unrelated things. But the fact is that they are tightly related. Think of private jets. How many people are selling it? Very handful of them.Generally, the target market for high-priced products is very limited and that is the core reason behind a limited number of manufacturers of such products; and hence less competition. Take an example of personal submarines, having an average value of 1.5 Million USD. Very limited people buy it and hence even less number of people sell it.You may find some variation in this indirectly proportional equation i.e. higher the price, lesser the competition (lesser the target market), but generally, this is true.
- SEO efforts are same for both high-priced products and low-priced products – Yes, this is very much true. Google don’t see the price while positioning the websites in its organic results. Google see the quality of website and business in itself. The SEO plan for any website is exactly same when it comes to organic rank. The places of SEO work or the resources we use change according to the website, but core plan and the amount of work remain same. The e.g. high-quality website will be required, high-value content will be required, quality backlinks and good social media engagement will be required irrespective of the price of the products. So, when all efforts are going to be the same then why not pick high-priced products instead of low-priced products?
Another logic to which I would like to draw your attention here is that selling high-priced products gives peace of mind by quickly meeting your monthly financial goals. You’ll just need to make a few handfuls of deals which you can even do in a week or so time, instead of running after hundreds of sales every month (throughout the month). According to environmental psychology, working on high-priced products means working around rich people and this very environment itself will make your rich.
Generally, those who buy high-priced products don’t negotiate and give money like anything if they like the product and its quality. And that makes a favorable environment to grow rich quickly. High-value products are always recommended for affiliate marketing as well as in general.