Episode 036 – What Everybody Ought to Know About the Consulting Business

High Ticket Sales Secrets | Coaching & Consulting Business / Personal Branding / Sales Training / Marketing / Get Clients

Welcome to another episode of High Ticket Sales Secrets. This is Dan Lok – your host, your guide and your mentor.

Today I want to share with you something that I think is extremely critical. It would also give you a better understanding of why I exclusively focus on high ticket sales when it comes to coaching and consulting business – that is the power of transaction size.

The Power of Transaction Size

So let me ask you this question. Let’s say your goal is to be a million dollar coach or consultant. Let’s say that’s your goal. And to get there, there are many ways. You can have many, many different programs and different products. And a lot of experts have that. Personally, I think their motto is a little bit outdated.

So let’s say you sell a $10 e-book and you sell 100,000 of them, you make a million dollars. Or you can sell a $100 program and if sell a lot of them, you also make a million dollars by selling 10,000 of them. Or if you sell a $10,000 program, you only need to make 100 sales in order for you to hit your one million dollar goal.

Let me ask you this question. Is there a difference between serving and working with, and selling to a hundred people – a hundred clients, versus ten thousand clients or a hundred thousand clients? You better believe it. Is there a quality in terms of the clients? The $10,000 clients versus the $100 clients. Is there a difference? Absolutely.

Let’s Break it Down

And that’s the power of transaction size. When you are selling a high-ticket offer, you need a lot fewer clients to hit your financial goal. So if you think of it, you sell a $10,000 program and you divide that up and you say, “You know, how many do I need to sell?” A hundred of them to make a million bucks. And you just divide that and say, “Well, you know what? If every month I sell eight or nine or ten – let’s say ten, that’s $100,000 a month. Just ten. And that’s actually $1.2M a year. Let’s say there are expenses and overhead and all that stuff. But let’s just keep it simple, right? Eight or ten, that’s ever $1M a year.

And when you further break it down, well actually, basically that means I need to sell two or three a week. Not ten, not twenty. Two or three a week! That’s it. You only need to make two or three sales a week. And you further break it down. If you are any good at all on the phone and you apply what I teach you – how to sell on the phone, the positioning, a lot of high-ticket sales methodology, that, “Okay, so if I can talk to ten people…” Let’s say your closing percentage is 1 out of 10, hypothetically to sell a $10,000 program.

“Well, so if I talk to twenty people per week, I would get my two or three sales. Twenty people per week, if I divide that by five working days, I only need to talk to a handful of people everyday. I talk to four people. I only need to talk to four people every single day to hit my $1M a year business goal.

Simplicity is the Ultimate Sophistication

You see how simple that is? Versus if you have so many different fucking steps and funnels. I’m not saying don’t have a funnel. I’m saying don’t have a 37-step funnel and you have 35 offers and you have 17 ads and you have 97 landing pages. You know what I’m talking about?

Simple. Keep it simple. I will share with you a quote with my students. Simplicity is the ultimate sophistication. It’s not easy to make things simple. It’s not easy to make things simple. But keep it simple. That’s why the transaction size makes your life easier by having a high dollar value, by having a high ticket offer, it makes your life very, very simple.

You don’t need to have, “Maybe I’ll sell them a free thing and then sell them a $7 thing, and sell them a $30 thing, then sell them a $50 membership, then maybe I sell them a $2000 other thing and hopefully drive them to a live event – a 3-day thing, and 3 days, then I spend a lot of money and hopefully I convert them to a $10,000, $20,000 thing.

Just Sell it Front End

Oh my goodness! Just sell the $10,000, $20,000 thing! Front end. Just have a better positioning, have better strategies upfront and just sell that. Get them on the phone and just sell that. It keeps your life so simple and your clients would appreciate that much more anyway because they are much more invested into it and you eliminate all the wannabes and people who don’t appreciate what your offer and just work with great clients.

I believe this is the single most important thing that everyone ought to know about a consulting coaching business. The transaction size. Just think about the clients you have now. If, let’s say you have different programs you are offering. Assuming let’s say you have some low ticket stuff, some free stuff, some high ticket stuff.

Reflect and Ask Yourself

Ask yourself. The people who pay you the most amount of money, how are they? Are they easy to work with? How are they like? The people who pay you the least amount of money – who buy your cheap low ticket stuff, what are they like? What are their behaviors like? How do they respond to you? Just think about it? I think you can answer your own question.

So keep it very simple. And maybe your goal is not to make $1M but just to make half a million dollars. Great! That’s even easier and it’s faster. And you keep it simple that way. The power of simplicity – I cannot stress this enough. And that’s why I’m focusing exclusively on high ticket sales working with players with money, working with affluent clients. It makes my life simple. They’re easy to work with and not a pain in the ass.

I suggest you do the same.

Remember: change your offer, change your life.