Are High Ticket Affiliate Programs Scams? Read This Warning.
High ticket affiliate applications are quite common to run into as of late. They provide methods to make huge commissions, however is there a rip-off beneath the chance?
Before, I used to be within the center, despite the fact that I by no means really helpful certainly one of them however in the present day, I’m slowly slipping into believing that they might be and with sure occasions which have taken place in the previous few years, specifically the FTC shutting down a few of the largest ones that have been on the helm of excessive ticket affiliate applications on the market, I’ve sturdy causes to imagine that it was solely the start and it’s fully potential that within the close to future, excessive ticket applications could also be categorised as schemes.
And additionally as a result of I do become profitable on-line program evaluations, previously few years, almost 50% or extra of the applications I encounter are of the excessive ticket type, and almost each single time I’ve reviewed them, they’ve turned out to be extraordinarily overpriced and thus you’ll seemingly by no means see me advocate one.
Now I do know there’s many followers on the market who’ve signed up with and made cash selling the numerous excessive ticket programs in existence who will 100% disagree with me, however my argument towards these programs has nothing to do with the cash being made from it. It has every part to do with the way in which the system is ready up and I do imagine there’s something incorrect on the core of this entire business.
Here is how excessive ticket affiliate applications work (earlier than I clarify if it’s a rip-off):
There are 2 classifications of excessive ticket applications so far as I’m involved, and it’s necessary that you realize each so that you perceive how one is 100% legit whereas the different is probably going not:
The legit variety:
You enroll with a daily associates program like Amazon Associates and so they allow you to promote ANY product you need.
You can even elect to advertise their costliest applications with out paying a cent to take action.
The solely factor you pay for is a processing payment should you become profitable and so they ship you a examine.
You can join free and begin selling it without cost and that is really a key element as entry to this chance doesn’t value you something. I’ll point out a number of locations shortly.
The questionable and probably illegitimate variety:
There exist excessive ticket programs, that are usually become profitable on-line alternatives (coaching applications with regards to getting cash on-line) that normally help you see a preview of what they’ll train you, both without cost, or for a small payment.
Then as soon as inside, what you normally get is a gross sales funnel into attempting to get you to purchase way more costly coaching packages.
What could begin as a free trial or perhaps a tiny funding can steer you down right into a checkout cart to purchase coaching packages for $1,000’s and in some instances $10,000’s of .
Very little if nothing is taught within the decrease finish areas (the place you enter without cost or pay little to see). You are mainly informed that the “real training” and “secrets” are additional up within the package deal tiers.
Now the important thing promoting level is that the precise affiliate alternative with these applications solely actually comes IF you purchase the upper tier packages. This is MANDATORY.
Furthermore, the precise factor you’re shopping for is technically entry to a possibility whose coaching teaches you find out how to promote the exact same system as an affiliate to become profitable from. Some would argue that that is the enterprise mannequin of a pyramid scheme and I’ve to be sincere, it’s arduous to argue towards that time from what I’ve seen…
In addition, additionally, you will discover very excessive, and arguably SLEAZY gross sales strategies akin to shaming or “reverse psychology” used to get you to really feel nugatory or responsible should you don’t the upper packages. I’ve seen and encountered this and whereas I perceive that I’m primarily being tricked, most people who find themselves unfamiliar with how excessive ticket applications work legitimately and illegitimately.
But it’s essential that you simply perceive, that on this article, I’m overlaying the crimson sorts of excessive ticket programs, not the legit sorts and simply so you realize the distinguishing qualities, let me provide you with examples:
An instance of the reputable variety:
An individual indicators up with Amazon Associates and decides to advertise one thing that prices $1,000’s of . Say a luxurious watch (By the way in which, I element this and different excessive ticket niches right here). Suppose a watch there prices $5,000. The affiliate would make about 5% fee of that which might be $250 a sale.
The particular person looking for to advertise these watches want solely enroll with Amazon Associates and get accepted to advertise their stuff to do that. No financial funding is important.
Examples of the place yow will discover this:
Your aim with these locations can be to search out excessive ticket objects and promote them (Need coaching?) to audiences most definitely to purchase them (area of interest audiences). The motive these locations are legit is as a result of signing as much as the associates program for these locations is FREE and selling any product inside these networks is ALSO free.
An instance of the possibly illegitimate variety:
An individual indicators up with a excessive ticket cash making alternative. It provides 5 coaching packages:
Level 1: A free trial membership.
Level 2: A $100 a month membership.
Level three: A one time $1,000 package deal.
Level four: A $5,000 package deal and…
Level 5: A $10,000 package deal.
With the exception of the free trial membership (degree 1), the commissions for the opposite four packages (ranges) are 50%, so should you can:
Level 2: Sell a $100/month membership, you’d make $50 a month.
Level three: Sell a $1,000 package deal, you’d make $500 one time.
Level four: Sell a $5,000 package deal, you’d make $2,500 one time.
Level 5: Sell a $10,000 package deal, make $5,000 one time.
But you’ll be able to most likely already predict the “catch” and the place that is going by now. If not, that’s OK, as a result of that is the place the scheme can probably exist:
If you need to promote the extent 2 packages and better, guess what? You want to purchase them.
And if you may get somebody to enroll beneath you, to ensure that any degree 2 and better package deal to pay you a fee, they too want to purchase it. So simply shopping for the next degree membership solely entitles you to the chance to promote it and this can be a enormous deal as a result of you’re making an enormous funding.
So briefly, it’s my opinion that if a excessive ticket associates program requires you to pay an enormous sum to advertise their merchandise, you’re seemingly getting concerned with an illegitimate form of associates program and I’d strongly advocate you not be a part of it. I’ll present examples of most of these applications beneath, ones which have been taken down by the FTC.
5 arguments that say this can be a scheme:
The subsequent time you run right into a excessive ticket associates program and alternative, use the above instance of what it might appear like it’s illegitimate and these 5 following arguments to see if it’s legit:
1) There is not any free approach to promote the chance until…
You too turn into part of it, and pay $1,000’s to be eligible.
2) The manner many of those programs are designed, they don’t actually disclose every part.
Instead, they train and market in a manner that leaves the “good stuff” for costlier coaching packages, which in fact you should purchase to disclose. Everything within the decrease tier package deal solely seeks to hype the upper tier packages and nothing extra.
So you find yourself being trapped into shopping for extra, for the promise of creating lots on the finish of all of it.
three) Many of them are additionally referred to as get wealthy fast schemes as a result of…
Most of the individuals who personal most of these applications and the associates who promote them solely are inclined to deal with the potential alternative to become profitable.
For instance, many excessive ticket programs are promoted by way of advertisements and webinars and also you’re sure to see a bunch of them on YouTube and being promoted on blogs.
99% of the gross sales pitch talks about how one can make $100’s and $1,000’s in commissions, neglecting to say the necessities of truly shopping for it and in addition neglecting to elucidate simply how HARD it’s to promote these items.
Again, it’s not arduous to see an enormous distinction between these “opportunities” and the “opportunities” you see pitched with pyramid scheme applications. There is a VERY shut resemblance between them. However, there’s a distinction and I argue each programs are 2 various kinds of pyramid schemes.
Traditional pyramid schemes are normally revolving round MLM applications which have recruitment funnels and downlines that stretch to infinity ranges. Get 1 particular person in, they get another person, and also you receives a commission for all of that (it goes deeper than that).
High ticket programs are one tier kind pyramid schemes in my view as a result of you’ll be able to solely receives a commission per 1 referral, and from that time, if that referral will get another person to purchase the system, you don’t get something from that. BUT the entrance finish costs are so jacked as much as be a part of, that it compensates and even “makes sense” to put it up for sale when you may make a lot, even whether it is questionable.
In any case, each programs are illegitimate in my view and it’s why that I, as an affiliate marketer NEVER promote them. If I do assessment them (which occurs usually), I solely refer individuals into reputable applications like this.
four) Value of data is very inflated.
Because most of those illegitimate excessive ticket applications are usually become profitable on-line programs and coaching on that topic, the worth of that coaching is fairly nugatory on the very backside (the most cost effective) and whereas it might probably probably be superb on the larger ranges, and the highest, the reality is that the worth of the knowledge is VERY inflated.
I’ve but to come back throughout ANY costly excessive ticket system that really teaches certainly one of a form coaching on getting cash on-line. I discover that my recommended program, Wealthy Affiliate, for reasonable costs teaches the identical/extra issues.
But the purpose right here is that fairly often the “promise” of excessive commissions distracts the one that is pondering of getting concerned with the excessive ticket program to cease fascinated about if it’s really inflated data.
They see that they will make say $5,000 a sale and instantly suppose 2 issues:
“Oh wow, $5k commissions, this must really be good stuff that they teach, why else would they charge this much?”
“Oh I can make $5k?! Let me parrot that information to other people so they can buy it too”.
In neither certainly one of these methods of pondering is important pondering really concerned, it’s all masked by phantasm. Think about that…
Here’s one other factor to contemplate for level four:
What is the true worth of this system?
This is an add on to level four, but it surely’s not simply necessary to notice when data has an inflated price ticket on it, it’s additionally necessary to know what the value of it ought to actually be and if the true worth is simply too removed from the inflated one, then the inflated one is a rip-off.
Let me provide you with an instance with a water bottle…
You can usually purchase a single bottle of water for simply $1.
If the value tag for a similar actual bottle was upped to $10, would you purchase it? Probably not.
But this instance completely illustrates how excessive ticket schemes function. The reality is that almost all if not each single bit of information and “secret training” they pitch for the insane costs are issues you’ll be able to most likely Google and get information on or do a YouTube search on.
Secrecy sells with these schemes…
As an individual who does on-line enterprise by online marketing, I do know nearly every part there may be about e mail advertising, paid advertisements, search engine optimisation, getting cash and so forth, so after I see excessive ticket programs attempt to promote me issues by “Secrecy” which is a typical sleazy tactic they use (purchase this costly crap and we’ll provide the actual information), I can inform it’s none sense.
But most individuals can’t. So let me let you know this:
High ticket programs declare to have the secrets and techniques of their higher tier packages for getting cash on-line. You can discover that very same information in free sources.
However, as a result of there’s a lot data, you should know which is actual, up to date and works (which of them to belief mainly). For that I’d recommend a program like Wealthy Affiliate because it does train nice issues on every part on-line advertising associated.
The solely distinction between these sources and what excessive ticket schemes do in my expertise is that they take this similar data, promote it as if it’s secret and unknown to the world, then make you purchase it in hopes you may make the large commissions. That’s a serious scheme.
High ticket applications additionally don’t present a lot apart from coaching of their packages. So you purchase schooling primarily, which is inflated. They may even usually evaluate how schools are costlier to push their system on you, and I’d argue that each are scams and simply because one is costlier, doesn’t excuse the cheaper one from charging a lot…
5) Pitches of “mentoring” and “coaching” turning out to only be hustles for extra extra.
Another argument and warning signal I’d argue you need to search for is that the excessive ticket scheme applications use the time period “coaching” and “mentoring” to secretly push extra up-sells onto prospects.
Time and time once more the plethora of excessive ticket applications within the MMO world I run into pitch some form of mentoring or teaching promise that you simply get “for free” when you enroll on the decrease finish of this system.
What finally ends up occurring almost each single time is that this supposed mentor or coach is only a gross sales one who makes cash IF you improve and purchase the additional memberships and what they do is that within the name, skype name or nevertheless they schedule a “session” with you, they may attempt to hype up the “opportunity” of how a lot you may make should you put money into the upper tier memberships.
So mainly the coach and mentor is only a hustler whose attempting to get you to BUY MORE and doesn’t actually train you something.
And must you determine to not improve, I’ve personally seen greater than as soon as, how these similar false coaches/mentors will try to make you’re feeling responsible for not upgrading and can even be completely impolite to you.
I’ve had this occur lately to me, after I informed a supposed coach I wasn’t eager about upgrading and JUST wished information on how what else I’d have to purchase within the excessive ticket program I used to be trying out (since this was not disclosed).
The dude ended up sending a nasty e mail response about how I wasn’t “coachable” and that he didn’t need to waste time with me. It mainly confirmed that I saved time from a gross sales pitch, not precise mentoring…
On that topic although, you’ll discover good teaching from me personally should you examine that out right here. But as for top ticket applications, be careful individuals, this occurs VERY usually.
2 excessive ticket schemes shut down by the FTC. An indication of issues to come back?
I didn’t need to point out any present excessive ticket applications I discover questionable on this publish (I’ve reviewed many!), however I did provide you with sufficient information on how they work that will help you establish if they’re schemes.
Either manner, the next 2 applications that have been shut down by the FTC are formally labeled as scams, so there’s no debate on this anymore and right here they’re:
Think concerning the package deal mannequin I gave above which progressively bought costlier. Digital Altitude took this to an entire new that means and charged as much as $60,000 for all it’s packages which mainly simply supplied an increasing number of “opportunity” for every new monetary gap you stepped into.
Naturally, most individuals didn’t make their a reimbursement on this scheme and finally, sufficient dangerous rumors bought the FTC concerned into this program too and right here is the official report from them on it. Either manner, good riddance to this rip-off.
I imagine this excessive ticket program was a pioneer in what would later turn into an entire business (the excessive ticket associates program one). This system was not simply costly ($50,000+ in prices for it’s packages), but it surely additionally bullied individuals like myself and different bloggers who tried to name them out on what they have been doing by threatening them with lawsuits.
In truth, my very own really helpful firm for studying on-line enterprise the reputable manner, Wealthy Affiliate bought into with them as a result of MOBE was additionally suing them, however as a result of Wealthy Affiliate wasn’t going to be bullied round, is reputable and had sufficient proof to show it’s factors towards MOBE (the sort I’m making on this publish towards excessive ticket programs normally), they finally received (right here is the story) an extended battle towards them.
And as soon as the FTC stepped in (data right here), that was the ultimate conclusion to this rip-off.
My last ideas:
Now I’m pointing to those 2 firms as a result of they’re case research on how the FTC is beginning to look into excessive ticket firms that function this fashion and since I’ve come throughout so many different excessive ticket programs through the years that do function like MOBE and Digital Altitude, I strongly imagine there’ll come a second, quickly the truth is, during which the FTC will formally designate these firms as scams and begin shutting them down in droves.
These are simply the case fashions they used to assist them in later instances they’ll seemingly convey onto different firms prefer it.
So general, that concludes my ideas on excessive ticket applications and which of them are schemes. I’d advise those that are nonetheless it from a viewpoint of how a lot it’ll make them in the event that they get gross sales to contemplate how a lot they’ll should put in and the way they’ll most likely have to tear others off to affix them, to them have them undergo the identical course of.
This is in my view not how one ought to succeed on-line and I personally discover no satisfaction in recommending that folks be a part of such schemes. This is why I’ve at all times stayed away from these applications, and at all times will.
Update: More information on find out how to spot the dangerous excessive ticket schemes…
One of the individuals who skilled me to turn into an affiliate marketer has a really related and I’d argue extra detailed viewpoint on this topic that he talks about right here.
While we share the identical viewpoints on this topic, I personally have pals on this subject who disagree with me and I’d additionally ask that should you do as nicely, or maybe agree with me to debate this beneath.