In order for your business to be successful, you need to increase the value of every sale you make in your business. What would you need to do in order to increase your profit 10%, 20% or even 100%? This is what a great value ladder can do for your business.
“A value ladder is a method of mapping out your product/service offering visually in ascending order of value and price. The value ladder allows you to cater to your client’s needs no matter where they are at”.
The bottom of the ladder is where you give a free gift in order to get an email address. This can't just be any free gift like a PDF or some sort of training. You are competing with thousands of marketers who are doing this same thing, so you have to make sure you are giving the best free gift that you can.
As your customers go up the ladder, the value increases as well as the price. If you map out your product in this way, you are able to offer up-sells and down-sells with each product or service that you are selling.
You need to make sure you are providing the most value to your customers, this of course will increase how much money you are going to make. Most marketers do not use this type of model. I was one of them! I would only offer one product at one price and was leaving a lot of money on the table.
You sell your product for $49. You have four customers that want to buy that product. Customer one has the $49 and purchases the product. That is great right? You made a sale.
Customer two has $97 to spend and without a value ladder you lost this sale. If you offered a $97 upsell you would have made a second sale.
Customer three has only $27 and if you offered a down-sell you would have made a third sale.
Customer four has $500 to spend. If there was an upsell in your value ladder you just made a fourth sale.
There are going to be customers that are going to spend $7, $47, $97, $497, $997, $1997 and even $4997. If you don't have a value ladder that offers these up-sells and down-sells you are leaving a lot of money on the table.
The biggest mistake most marketers make is they focus on the price and not the value they are giving to their customers. That is why this is called a Value Ladder not a Price Ladder. You need to focus on the customer. The price and making more money is a plus. This will happen automatically when you focus on your customer and their needs.
There are a lot of different ways that you can build a value ladder. First you need to find your perfect client and find out what they need from your product or service.
The next step is you need to map out your value ladder. The first step in the ladder is your lead magnet where you give a quality free gift to get the customers email.
The second step on the ladder is your initial offer usually low in price like $17.
The third step in the ladder called the 1st Tier which would be a higher ticket offer like $97.
The fourth step in the ladder called 2nd tier is where you increase it to a higher ticket offer such as $997
The fifth step would be the 3rd tier this would be a down-sell, maybe $47. You can continue this up and down giving up-sells and down-sells.
The last step is your top tier which could be a very high ticket mastermind training for $1997 or higher. This ladder or funnel can have 3 steps, four steps, five steps or more. This will depend on the product or service you are selling.
The most important step in this whole process is you need to deliver the most value to your customers and you will make more money. Isn't that the point?