Should You Use a Funnel for High Ticket Products?

Question

Hey, Jon. This is Chris from Austria. I have a question about the right funnel strategy for high ticket products on Meta. We sell 700 Euro hardware consumer products via D to C, and currently have about 90% of our budget going into a lead ad where we capture newsletter signups on our homepage to get a discount. And then 10% of our budgets goes into retargeting. So my question, is this new setup the recommended setup? What is your advice?

Answer

Thanks for your question, Chris!

So this is a common challenge. My general recommendation is to always go for the action that you want, which in this case would be the purchase.

But when you’re selling a higher priced product, that may not be effective, especially if your budget is limited. That said, it still might be the most efficient approach, even if you think it can’t work.

I assume you’ve already tried it or tried it recently, but I would not give up on going straight for the purchase. Experiment with different ad creative, angles, and personas, and make sure you give it suitable budget to at least give it a chance.

The funnel approach can work, but it requires everything goes right in that funnel. It starts with attracting the right people at a reasonable cost.

I’m not sure that sending people to your home page where they might request a 10% discount is the right play. Would your ideal customers, who would buy a higher ticket product, be motivated by a 10% discount in the first place?

Now, I’m going to assume that this method isn’t working for you or you wouldn’t ask this question.

But if you’re going to try the funnel, I’d instead use instant forms or send to a landing page for a very specific lead magnet. This should be tightly connected to the high ticket upgrade, but just a taste. That way, you attract the right people into your funnel.

Your current approach assumes that a small discount is what would attract people, but this completely ignores an important group.

What about the people who would buy this product without the discount? They don’t fall into your funnel.

So you could still offer the discount eventually, but I wouldn’t make a slight discount like that the entry into your funnel.

While I’m not big on remarketing these days, the high ticket offer where you have limited budget is one of the rare exceptions.

Your email automations should still do the heavy lifting, but you can run ads that echo many of the same messages they’re getting via email. This way, the emails help your ads and your ads help your emails.

These big purchases need a little extra pushing, so such an approach can make sense.

But the danger is that you’ll focus your efforts on building a funnel with the wrong leads, which makes the whole thing collapse.

While leads are easier and cheaper to get, it’s not necessarily easier and cheaper to convert those leads at an acceptable rate.

Start with the purchase, then move to the lead and funnel approach. But make sure you’re attracting the right leads and obsess over your messaging when they’re in your funnel.

Good luck, Chris!