I love the people who enter my little world online, and I always want to find ways to keep them in my world! That’s the beauty of a value ladder.
The concept of a value ladder is not my own, I got it from my mentor Russell Brunson who shares information about the value ladder concept in his book Dotcom Secrets. It’s something I think about a lot in my own business, and one I teach others when they are looking for ways to grow and scale. It’s basically a way to look at the products you offer people as if they are steps on a ladder, slowly building in price and value.
Today I want to tell you what a value ladder is, and how it works wonders for any business.
What is a Value Ladder?
Your value ladder is a way to look at your business and create offers so that your customers can take steps through your business model that both benefit them and increase sales for you. Ideally your dream customer (or avatar) starts at the bottom where you offer free content, and steps up each rung of the ladder. Each rung has a new product tier that steadily increases in value and price. At the very top, you can create the highest ticket product. These tiers, products, and prices will change over time as your business grows.
One great way to increase sales is to expand your value ladder. This will help increase your average cart value by providing a variety of price points and products for your customers. This will also help with understanding how a person moves through your ladder so that you can better estimate the costs you’re willing to pay in order to get a person to enter your ladder. Those costs might be for ads, time spent creating free content, or for hours spent with marketing efforts. Even if you have a product or service based business, a digital product can be a great step in a value ladder.
Help Your Customers
Fleshing out your value ladder also does wonders for ensuring your customers are supported. One thing I always try to remember is that if I don’t create more products to fulfill my dream customer’s needs, someone else will. And I don’t want my customers to have to find value somewhere else because I’m not offering it. Each tier on your ladder should offer more. More time with you, more in-depth content, more community, more of the how, etc. You can work on creating more digital products, or different types of digital products along your ladder. As you create more rungs up the ladder, both you and your customers will benefit.
One of the hardest parts of business is acquiring customers and making a sale. By building out your ladder, you’re finding more ways to retain the customers you’ve already worked so hard to acquire. Not only that, but they bought from you for a reason. Your avatar likes buying from you because they like you, you match their values, and they trust you. By creating more products, you’re making more money by retaining customers longer. For example, I love Brene Brown. I love her personality, her values, and everything she teaches. I need her to keep making podcasts, writing books, and doing talks so I can hang out on her value ladder forever!
Your value ladder gets people in with a free offer, and gradually walks them through your business via steps on a ladder. Each step gradually gets higher in price and value. A value ladder is important for you in order to keep customers and increase sales, and it’s valuable for your customers to ensure they are supported.
Do you have a value ladder for your business yet?
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