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The Value Ladder Explained

Ever come across the term Value Ladder? Well, if you are a business owner, then I GUARANTEE you that you need to know this. To become a(n even more) successful entrepreneur, this is a basic building block of knowledge you have to have. Let me also tell you this (without wanting to scare you): If you intend to have a sustainably successful and profitable business, read further and find out more…

Ascension Model

Remember this: One of the main aspects of any truly profitable business – especially an online business – is a Sales Funnel. I will be talking about sales funnels a bit more in the future. And your understanding of what the funnel is, and how it works will become super-easy if you grasp the concept of the value ladder.

The value ladder and sales funnels are based on what is called ascension model.

The Ascension Model is where a visitor (prospective customer/client) to your business is put through a process where they ascend up certain levels. At each level is a carefully chosen selection of one or more product and/or service offerings. A percentage of the visitors continues to ascend up through to the next level until a (typically smaller) percentage of visitors ascends all the way to the top-level offering.

So what does all this have to do with a business, or particularly an online business?

The Value Ladder

Here’s the thing. If you have just one offering or product, then you’d constantly need to look for new customers for that one product. If, however, you have increasingly more value to offer through your products and you them up in the levels of ascensions, then you can do these two things:

  1. You can sell your carefully lined up products one-after-the-other to the SAME customer, AND
  2. Continue to look for new customers to buy the entry-level product and keep offering them thereafter to ascend through the levels.

Do you see the power in this? The raw power it has to grow your business is amazing. In fact, using the ascension model, and not using it, might also be the difference between being profitable sustainably for some online entrepreneurs, and being broke for others.

It is that critical!

Effectively, and based on the Ascension Model, the value ladder is a way to structure your business – and your products and offerings – to appeal to your target audience at different phases of their growth and development.

As a business, it gives you a sustainable basis and competitive advantage. And it does so by getting you to ensure that you have products and/or services to continue to serve the needs of your buyers as the develop and grow with you.

value ladder internet marketing online entrepreneurship

The Steps of the Value Ladder

A value ladder will mean different things to different businesses. And depending on the business, value ladders could also have different numbers of steps. For the purpose of explanation, let’s take a value ladder of a well-established and thought-through online business that has 5 Steps.

Remember this: The value provided INCREASES as one progresses to the next level. Consequently, the price-tag associated with each increasing level increases, too. And this is totally legitimate and logical: More the value, higher the price. And higher the price, higher the return (profitability) for your business,

which means

 Ascension Model > Value Ladder > Sales Funnel

You cannot build a Sales Funnel without a Value Ladder. Only with a value ladder can you decide which products you can/will include in the levels of the sales funnel.

Here are the 5 Steps, explained in brief (I will go into a lot more detail in another post)

  1. Ethical Bribe: Offer something relevant of value in exchange for your lead’s email address
  2. Front-End Offer: This is an offer for high-value, low-cost (low barrier-to-entry) product. The aim is to turn your lead into a buyer by offering this.
  3. Upsell: The upsell provides even more in value, brings them closer and maximizes the value of a customer. The content of the upsell needs to perfectly compliment the front-end offer The aim here is to turn your customer into a repeat customer.
  4. Recurring Income Membership: This offers REGULAR value, such as in monthly intervals. This turns the now repeat customer into a member.
  5. High-Ticket Product: This is the quickest route to your customer’s desired outcome. For the business, it is also the offering with the highest return.

Why start with the lowest priced/value offering

This is a matter of prior trust, credibility and knowing the one selling the product. If you or your business is not known to your buyer, the likelihood that your buyer brings all their trust to the table is very low. You need to build the trust FIRST. And you do this with a low-priced, low barrier-to-entry product. However, you will need to ensure that even the lowest priced product (free is the lowest price you can ask for) needs to be very valuable. It CANNOT be crap.

“The company that can pay most for their customer wins” – Dan Kennedy

Which means that deeper your funnel (or higher the value ladder), the more you can afford to pay for your customer to take the first step in your value ladder.

Free Web Class

free What has been shared above is critically valuable information. And if you’d like to know more about it, I really encourage you to take a look at this free web-class I have put together. It is only some minutes long but provides MASSIVE value and information. You don’t want to miss it. Click here to get your Free Web-Class.

The Big Commission Blueprint

I often get asked what I have used to learn the things I know (and teach further). And I invariably recommend to check out the Big Commission Blueprint course. Big Commission BlueprintFrom what I have learned out of it, I would easily have paid someone anything in the tune of $20,000 to learn all that. And as I don’t want to spoil the fun by divulging what this little course really costs, I want you to find out on your own – you are in for a very positive surprise (you might even laugh your head off – haha).

This system has allowed even complete newbies not just put in viable a new online business in place but also generate 4-figure paydays in some cases.  You’ll not regret having taken the few minutes – they might well prove to be life-changing.

Over To You

If you are an entrepreneur – offline or online – what does your value ladder look like? Do you use the ascension model and value ladder to structure your offerings, too? If not, why not? I’d LOVE to know more in the Comment box below.

Also, please Share this with your friends on Facebook, Twitter and Google+ using the buttons on this page. I really appreciate you helping me spread my message.

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Sameer
 

Dr. Sameer Joshi is on a mission, which is to provide you with ethical, useful, easy-to-implement insights on how to grow your online business. Insights which will help you get set up the right way, drive traffic and increase conversions. Sameer has created this blog with you in mind and writes most of the posts here. Read more about Sameer here.

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