How To Create A Value Ladder For Your Sales Funnel

Value ladder

Before you start working on your sales funnel, it’s crucial to take some time and create your value ladder – your products and services mapped in ascending order of value and price.

The value ladder will help you bring structure into the variety of your offers and figure out how to cross-promote them in the best way.

General Concept Of The Value Ladder

So what is a value ladder?

Simply put, a value ladder represents all the products/services you offer to your audience in ascending order of price and value.

In a perfect world, you would immediately find your dream customer and talk them into buying your high-end offer. But in reality, it’s hardly possible because they don’t know you and you haven’t provided any value to them yet.

The value ladder helps to make money and stay profitable while identifying your dream clients who can afford your highest offer. Moreover, it lets you provide value to each customer at the unique level of service that they can afford.

In the Dotcom Secrets book, Russell Brunson explains the concept of the value ladder in more detail providing examples of value ladders for dentists, chiropractors, coaches, and more.

You can get your FREE copy of the Dotcom Secrets book (only pay for the shipping) that is, in general, a must-read book for anyone who is doing business online.

If you’re not sure that the book is the right choice for you, you can read our complete Dotcom Secrets review first.

Tiers Of The Value Ladder

Value Ladder

As you can see on the diagram, when your customers “ascend” your value ladder, you offer them more valuable products/services. The prices of your offers also grow.

Your value ladder may consist of fewer tiers than the one on the image above. However, offering multiple value tiers at various prices gives you a higher chance to meet all the expectations of your customers.

Let’s go through all the tiers of the value ladder!

1. Lead Magnet

This level includes some free materials you give away to attract your potential customers and grow your email list (AKA lead magnet).

The ultimate purpose of this tier is to qualify and capture your leads. As a lead magnet, you can use a checklist, cheat list, video, free sample of your product, trial, coupon, and more.

Feel free to check out our article that shows how to easily come up with a lead magnet and provides you with some more ideas for lead magnets.

2. Initial Offer

It’s a low-end product you offer that ideally should cover the cost of advertising. If your leads buy this product it means that they’re willing to spend money to solve their problem with your product.

The price of the initial offer ideally should be less than $10 or “Free plus shipping”. A book, short course, or product can be your initial offer.

3. 1st Tier

For your first tier of the value ladder, you may use low or middle-range products and services. Their main goal will be to generate profit and build trust between you and your customers as they receive more value from you.

At this level, you may sell a course, low or middle-priced product or service.

4. 2nd Tier

Products from this tier serve to generate profit for you and ideally recurring revenue from membership or continuity programs. Courses, membership, custom service, or products from this level should be priced less than $1,000.

5. Top Tier

This level includes the best product or service you have and which you’ll price more than $1,000. It can be done-for-you services or masterminds, which will increase your profit even further.

It’s quite easy to structure all your offers into a value ladder if you offer your clients some digital products or services. Many times, businesses that sell physical products can’t “ascend” customers the same way as digital and service-based businesses can.

Therefore, if you sell physical products, the approach will be slightly different. For physical products, you can use the Hub and Spoke model of the value ladder.

The Hub And Spoke Model Of The Value Ladder

Hub and Spoke Model

If you sell physical products, the Hub and Spoke model of the value ladder might work better for you than a traditional one.

Your core product will be the hub, and all the accessories and peripherals that supplement the core product will be spokes.

Let’s imagine you’re selling cars. It shouldn’t be challenging to come up with an idea for a lead magnet.

You may even find a product under $10 to sell as an initial offer. But after that there’s not much you can do – you have to sell a car.

However, after your customer buys a car, they’ll need a lot of additional stuff – accessories, maintenance, insurance, etc. That’s what you can sell as supplementary offers.

Applying the Hub and Spoke model, the car is a hub, and the additional products/services are the spokes.

Offer Continuity

It may take your customers weeks or even months to go to the next level of your value ladder.

Some of them will only buy a product from one tier and leave. This is where offering a continuity program will give you an advantage as it’ll help accelerate ascension. What you can offer:

  • A car dealership can offer oil changes as any car needs them.
  • Digital products businesses can offer a community and/or premium support as a recurring offer.
  • Dentists can offer 6-month check-ups.

Downsells Hack

One of the best ways to help people ascend your value ladder quickly is to reduce the entry price to the next tier. You can do this by offering payment plans to your customers.

For example, instead of selling your product for $147, you can split the price into three payments of $49.

Conclusion

To sum up, while working on the creation of your offer take some time to map out your value ladder.

It’ll help you to get more leads, better market and cross-promote your offers, and as a result, sell more. Offering multiple value tiers at various prices gives you a higher chance to meet all the expectations of your customers.

If you’re selling physical products, you may use the Hub and Spoke model of the value ladder.

In the Dotcom Secrets book, Russell Brunson explains the concept of the value ladder in more detail providing examples of value ladders for dentists, chiropractors, coaches, and more.

You can get your FREE copy of the Dotcom Secrets book (only pay for the shipping) which is a must-read book for anyone who is doing business online.


Value Ladder F.A.Q

What is value ladder?

Value Ladder

Simply put, a value ladder represents all the products/services you offer to your audience in ascending order of price and value. The value ladder helps to make money and stay profitable while identifying your dream clients who can afford your highest offer. Moreover, it lets you provide value to each customer at the unique level of service that they can afford.

What book explains the value ladder concept?

In the Dotcom Secrets book, Russell Brunson explains the concept of the value ladder in more detail providing examples of value ladders for dentists, chiropractors, coaches, and more.
You can get your FREE copy of the Dotcom Secrets book (only pay for the shipping) which is, in general, a must-read book for anyone doing business online.
Want to learn more about the content of the book? Read our complete Dotcom Secrets review!


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