What is the Value Ladder?
Value Ladder – A value ladder is often a vertical step ladder of products and/or service laid out in the ascension of cost and value. For example, cold traffic joining your list would be at the bottom of a value ladder exchanging their email for your lead magnet.
The value ladder is all about guiding your customers through a sales funnel that extracts maximum revenue from each of them, whilst providing value at the same time. As you can from the diagram, users enter a sales funnel by being baited into a free product, where you obtain their email address. Using an automated mailing system like the one included in ClickFunnels ® you can push easily push them further and further up your value ladder. The higher your customers are on the value ladder, the more money you are charging them for higher ticket items.
Always Have Continuity
In business, many of the rich say that “a business without continuity, isn’t a business at all”. I have to say that in most cases, they’re right. If you can put yourself in a position to charge customers regularly (monthly/annually etc) for a product that they end up relying on, then you are onto a winner. If somebody relies on value from a subscription product, then the pressure to cancel their subscription is higher. Some examples of subscription products could be software or exclusive membership access to a community. These days you can get software designed online for a few hundred bucks via one of the many outsourcing sites available. Let’s say you took the outsourcing approach and launched a software product that managed web statistics for a customers website, when product gets traction and your customer base grows, you can always use the money earned to hire a team of developers to redevelop your product if that’s what you’d prefer. You do not need to understand how to code, instead just an idea and the will to execute. I’ve seen this done many times with MASSIVE success. Lock those customers in.
High Ticket Items
As you ascend your users up to your value ladder, you should always have a high priced item in mind, because there WILL be a subset of customers that are willing to pay a lot of money for the right value. An example of this could be an event or one to one training with you. I’ve had clients pay as much as $5000+ for 3 days training with me using this exact method. Not every customer has this budget, and that’s fine, but throughout your sales funnel process sales funnel, a subset of these customers will have the disposable income to buy-in. Take advantage of that and make sure you provide value. Give them their money’s worth.
Best Chance of Succeeding with a Value Ladder
Creating a highly profitable value ladder is easiest when you have the tools that save time. I fully recommend a product called ClickFunnels ® to build out sales funnels and carve out money-making value ladders. The growth of this product is booming, I genuinely believe it is changing business forever.
Is your company in need of help? MV3 Marketing Agency has numerous Marketing experts ready to assist you in creating your Funnel. Contact MV3 Marketing to jump-start your business.« Back to Glossary Index