How to Create a Killer Cold Traffic Offer – to Sustain Your Business and Power Your Growth

Cold Traffic Offers

If your cold traffic funnel isn’t profitable, it isn’t always down to a failing ad campaign. Often it’s because your offer wasn’t quite compelling enough to convince total strangers to give you a shot.

Which is why I want to share a valuable lesson I learned from front-end offer masters Steve J Larson and Ben Moote – about how to stack value in cold traffic offers…so new customers can’t resist your products or services. 

Steven and Ben also taught me how to create a profitable ‘value ladder’ that will sustain your business as it grows – and put more money in your pocket.

Before I get into the nitty gritty detail, I want to define two core concepts that every online business needs to understand in order to build a profitable cold traffic funnel.

First off…

What is an offer?

This might seem like a dumb question, but defining what an offer is can help simplify your offer creation process. I mean there are so many different definitions of what an offer is, that it can be hard to know which one is correct.

Me? I go by a combination of Steve J Larson’s and John Grimshaw’s definitions:

Here’s what Steve J Larson says about what an offer is:

“An offer is a core product that provides a solution to a problem within a target market…plus – additional items that strengthen the core product’s effectiveness and usability…sold at a price that appeals to the market.”

John Grimshaw says that an offer is:

“A great product or service that’s relevant to the target market. It delivers a specific, measurable transformation, and must be bought NOW – for an irresistible price.” 

Cold Traffic Offers

For the record, I like the specificity of John Grimshaw’s definition, but I also like that Steve J Larson acknowledges the importance of bundling products together into a single offer, and adding bonuses to sweeten the deal. 

Now that we’re clear on what I mean when I talk about offers, let’s look at the idea of the ‘Value Ladder.’

What is the ‘Value Ladder?’

Russell Brunsen was one of the first online educators to come up with the idea of the Value Ladder. Essentially, it’s the steps a customer needs to take in order for you to maximise their lifetime value – and for you to stay in business.

Here’s how the value ladder normally works:

Cold Traffic Offers

You start by introducing yourself to cold audiences with a free offer. Then you move them to a lower-priced offer (normally priced between $7 and $500). Or you can skip the free offer and jump straight in with a low-ticket, self-liquidating offer which is designed to cover its own advertising costs. 

Next, you upsell buyers into a mid-tier offer (priced between $500 and $3.5k depending on the market). And finally you sell your most loyal customers a high ticket offer (priced above the $3.5k mark). 

But why bother following the value ladder in order to reach a high ticket goal? Why not jump straight in with high-ticket?

Well, in an ideal world, every business owner would meet a cold prospect and convert them into a high-ticket buyer from day 1. But that’s pretty unrealistic in the online world, where there are a lot of rogue sellers – and buyers are rightfully skeptical. 

It’s why cold prospects are much more likely to start out buying a low-stakes, low-ticket product and then move up to making bigger investments – once they know you can get them results. 

Now that we’ve got that clear, let’s dig into the details of what makes a killer offer at each stage of the value ladder. 

FREE Offers

Free offers are a low-cost way to generate leads by giving your target market a useful product or piece of information without exchanging any money. Free offers include:

  • Lead magnets
  • Quizzes
  • Pre-sell articles
  • Webinars
  • Free challenges 
  • Video series or free mini courses 
  • Free samples
  • Giveaways

What’s the key to a highly effective free cold traffic offer? 


  1. Make it relevant to your target market – Whatever you give away for free should help your target market solve a specific problem. And that problem should be a logical first step towards buying a paid product or service from you. 

In effect, free offers work to draw in quality leads AND to filter out bad leads. Which is why it’s not a good idea to run a free giveaway for something like an iPad. Why?

Because every Tom, Dick and Harry could make use of an iPad. And so people who sign up to your giveaway may end up being crappy leads who will never buy from you. 


2. Offer great value – Now more than ever, the market is saturated with offers of free information. Consumers are being bombarded with free goodies day in and day out – and they only have so much time and attention to consume all these offers.

In effect, your free product offer is an exchange for your prospect’s valuable contact information. AND their even more valuable time and attention. Which is why your freebie needs to be super high value, and worthy of your ideal customer’s time. 

Low Ticket Offers

Low ticket offers are another way to generate leads. Get that? They’re another way to generate leads. They’re NOT a way to make a profit or generate revenue to run your business. Which is where I see so many businesses getting it wrong when they run ads on Facebook.

You see, a lot of businesses think they can sell a $27 product to cold traffic…scale it up…and make a boat load of money. But I’m afraid to say cold traffic customer acquisition doesn’t work that way (at least not in 2022).

For a low ticket front-end offer to be an effective part of your growth strategy, you need to have a system for generating repeat business on the back-end. For some, that could be a continuity offer like a subscription or membership. And for others that’s allowing customers to ascend their Value Ladder, like I showed you earlier.

It means your low ticket offer serves one, single purpose. And that is to allow you to acquire new customers for the highest possible price, while breaking even. 

The key to success with a low ticket offer? 

  1. Set a price based on your customer acquisition break-even point – Most businesses create their product first and then set the price afterwards, based on what’s inside the offer.

That might be OK for warm traffic, but if you’re running ads to scale your business – you probably want to break even as quickly as possible. Which is why I suggest you flip the offer creation process on its head. Here’s what I mean…

First, calculate where your break-even price is likely to be based on your past customer acquisition costs (or based on what your peers are telling you, if you don’t have that data available for your own business).

Then set the price of your low-ticket offer so it sits around that break-even point. That way, you know your advertising costs are covered in full by sales of your low-ticket product.

For example, if your average CPA is $42…sell your low-ticket offer for $42ish. Simple!

2. Create an offer that provides a ton of value at your break-even price – But what if your current low ticket offer isn’t worth $42? Then you probably need a new offer!  

Or you need to take your current offer, and stack on some more value until the $42 purchase price feels like a no-brainer. Here are some additional easy-to-add products you could throw into your offer to ramp up the value:

  • Past webinar recordings
  • Recordings of past speaking gigs
  • PDF guides
  • Cheatsheets
  • Checklists
  • EBooks
  • Audiobooks
  • Audio guides
  • Fill-in-the-blanks templates 

In fact, you could throw in almost any useful piece of content that you find gathering dust on your hard drive.

In short, build your offer around the price. Don’t set your price around the offer. But remember, that your offer stack should complement your core offer by helping your prospect achieve their desired result more easily, or more effectively. 

3. Sell your offer using the right type of funnel – The type of funnel you use to sell your low-ticket offer will depend on the complexity of your product, and the price. But in most cases a simple funnel should work well to convert new customers.

Lead magnet funnels, direct-to-product-page funnels, sales page funnels, VSL funnels work great.

Click HERE to learn more about how to choose the right funnel for your offer. 

Mid Tier Offers

I’ve just explained why it’s super important to take a back-to-front approach to pricing your low ticket offers. You’ll be glad to know it’s no different with Mid Tier Offers.

The only difference is that your Mid Tier offer should not be priced to break even on your ad spend. It should be priced to cover the day-to-day running costs of your business. That means expenses like:

    • Software
    • Consultant fees
    • Employee salaries 
    • General overheads
    • Hardware costs 
    • Your salary 
    • Or anything else you need to spend money on to run your business day to day

In the infoproduct world, a mid-tier offer is usually priced between $500 and $3.5k. And in general, you won’t need to close your sale with a phone call. There are a couple of funnels you can use to sell mid-tier offers:

  1. Webinar funnels
  2. Quiz funnels
  3. Video series or mini course funnels 
  4. Challenge funnels

Here are some things to think about when crafting your mid-tier offer. 

  1. Set your Mid Tier offer price based on the cost of running your business day to day – Steven J Larson uses a simple rule of thumb when setting the price for his mid-tier offers. He calculates the daily running cost of his business, and bases his offer price on that number – so that his running costs are covered if he sells one unit per day.

So, if for example, your business running costs equal around $500 per day, your offer should sell for at least $500. That way, a single sale per day is enough to keep you in business. And any additional revenue becomes profit.


2. Add value to your offer so it’s a no-brainer at the price you set – similar to your low-ticket offer pricing strategy, it’s a mistake to create your offer and assign a price based on what you think the market will tolerate. 

Instead, you should set a price and then look at what others in your niche are offering around that price point. And once you know what the competition is offering, figure out a way to make your offer MORE attractive than anything else in the market. You can do that by:

  • Creating a core offer which satisfies an urgent problem in your market
  • Providing a clear, and compelling guarantee – which gives buyers confidence that they’ll get results (or their money back)
  • Stack plenty of value in the form of:
    • A core program
    • A quick win add-on (e.g. “sign your first client in 2 weeks action plan”)
    • Support community
    • Live Q&As
    • 24/7 email or text support 
    • PDF guides
    • Cheatsheets
    • Checklists
    • EBooks
    • Audiobooks
    • Audio guides
    • Fill-in-the-blanks templates 
  • Provide objection-busting bonuses 

High Ticket Offers

Having a high ticket offer should be like the icing on the cake. You’ve covered your ad costs. You’ve covered your business costs. And now you have an offer which is designed to be pure profit for the entrepreneur to take home or reinvest in the growth of their business.

A high ticket offer is anything priced above $3.5k. And it normally requires some kind of application or phone funnel to close the sale. In most cases a high ticket offer happens AFTER customers have purchased your lower price offers, so they’ve already bought into you and your process. 

That said, some businesses run successful high ticket funnels without selling lower ticket offers on the front end. They do this mainly through a webinar to phone sales funnel.

So what makes a solid high ticket offer? Most high ticket offers include one or more of the following: 

  • Small group coaching
  • One on one coaching
  • Done-for-you services 
  • Offsite retreats
  • Small group seminars

With this type of offer, there’s a much greater focus on live hand-holding, customisation and closer contact to the visionary/visionaries at the top of the business.  

That’s almost a wrap!

If you spend time studying different offers and value ladders in your niche, you’ll see patterns emerging in the products, services and prices that sell.

So why not use these patterns to guide your own offer creation process – with the added clarity that your offers should fit into a strategically tiered Value Ladder.

You should price lower ticket offers based on the needs of your business, and focus on stacking value to meet your desired price…instead of creating an offer bundle and guessing at the price you think your market will tolerate. 

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