How To Create The Perfect Value Ladder For Your Business

Written by on 02/13/2019

In this article, you’re going to learn how to create the perfect value ladder for your business.  By the end of this article, you’ll have a step-by-step plan and a solid value ladder that you’ll be excited about and ready to begin working on.

So for starters, you probably have a great product that you’re really excited about.  It’s very affordable and you believe that if you can get it in front of the right consumers, you should be able to get a ton of sales, right?  Unfortunately, most small business owners have this “great product” but the majority of business owners run into a few problems.

Problem #1

They have failed to build a list of potential consumers.  This is the first step in how to create the perfect value ladder.  The first step involves generating the lead, or as also called “capturing the lead.”  Now don’t worry, you’re not actually capturing potential customers and holding them hostage until they buy something from you.  You’re capturing information from them like their email, name, phone number, address….etc.

We’ve all been online, or most of us have, where we saw something that interested us such as a free guide, free video, free sample, free trial, or a free download.  And to get it, we usually had to give something up for it like our name and email address.

So for the first step, you need to create something free to figure out who could possibly be interested in your product.  So for example, if you’re a chef and you want to sell your master cookbook, perhaps your first step would include giving away a few easy recipes as a download.  Or if you’re a fitness coach, maybe you give away a diet plan, or a free workout video.  Whatever it is that you give away, make sure it’s something worth your market giving up their information for.  But then again, I know I’ve given out my email for some pretty basic stuff in the past.

Problem #2

There is no initial offer.  If you have a product that is more than $20, $50, $100,  $1000 or even more, you should have an initial offer.  This is why most companies lose their list just as fast as they create it.  Their is no rapport building between the company and the potential customers.  They just say “hello” and then immediately “buy my stuff!”  The consumers lose trust in the company and run away.  So you want a product that is very low ticket, preferably less than $20, and if you can, make it less than $10.

For this step, using the fitness coach for example again, you might give a one-month membership access for only $10 (or the full fee per month is only $10) with the ability to cancel after 30 days. You might sell a coaching session or a consultation, weight loss program, supplement samples, home workout video series, books, a workout calendar………

Whatever it is, make sure it’s not more of the same thing that you gave away for free.  Each step in the value ladder must be in the same niche, but solve a different problem.  That’s what gives each step more value than the last.  And each solution/product that you sell solves a tougher problem, again giving it more value.  That’s why the steps in the value ladder go up, and not down. It’s tougher to go up steps than down steps.

Problem #3

Your first tier product is your last tier product.  The ultimate goal in creating the perfect value ladder is to not only sell your product and make more money, but you should continue to have products for the customers who have already purchased from you.  You not only want to increase your profits, but you want to turn your customers into recurring customers.  So this product should not be your last.

However, the ideal, perfect first tier product should be less than $100.  So if you sold your book for $12 in the last step, maybe you sell an .mp3 player with your book already downloaded on it in this step for $49.97.  Or, maybe you sold membership access for $10 to your fitness website, but sell two 30-minute gym workouts with in-person coaching for $97 per month.

Now what?

Now you need a 2nd tier product, which is usually less than $1000.  This is something like a membership course, “inner circle membership,” physical fitness retreat/bootcamp, live cooking course, live event of some sort….   This is like going for a Masters Degree in college.  You’ve gone through the first two steps, and they took some work, but this one is really going to be big and this one is going to put your customers over the top, to where they are at the peak of whatever niche they are in.

For example, I saw Russell Brunson speak at Grant Cardone’s event.  He had products for every level I’ve mentioned so far.  But then I saw him sell a $1000 product to 3,000 people in 90 minutes.  Yeah, do the math on that one and it’s a pretty good payday.  And the kicker is that he had the rapport already because of the levels and the value he already had in the previous steps.  So now he also has a $25k, $100k, and a $1M product.

Now that you’ve got your Masters degree (sort of), what about your Doctoral? You should always have a product to sell for those that have already purchased from you, either as a one-time payment, or recurring payments.  This would be your Mastermind class, top chef class, how to become a great fitness instructor course…..etc.

No matter what you’re selling, or what you have to sell, you can always turn that one product into multiple products with the perfect value ladder.

Now the only question is….

How do you get all these offers in front of your potential clients?

Well, you set them up in a sales funnel!

Next Article: Sales Funnels For Beginners

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Jeff Demers

Host of The Motivated Mindset



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