#1 Way To Make More Money When Selling Online (Value Ladder)
Summary
TLDRIn this video script, Russell Brunson introduces the concept of the Value Ladder, a crucial element in understanding how sales funnels work. He explains that the Value Ladder represents the relationship between the value provided to a customer and the price they pay. By initially offering something valuable for free, businesses can attract potential customers, build trust, and then gradually ascend the ladder by offering increasingly valuable products or services at higher price points. Brunson emphasizes that every interaction with a customer should aim to provide value, creating a natural desire for more. He draws parallels with real-life scenarios, illustrating how the Value Ladder mirrors human behavior and the path to building lasting relationships.
Takeaways
- 📘 The speaker recommends reading the 'Dotcom Secrets' book to gain a deeper understanding of funnels and the Value Ladder concept.
- 🌡️ The Value Ladder illustrates how providing increasing value to customers allows you to charge higher prices as they move up the ladder.
- 🆓 Initially, businesses should provide value to customers for free to get them started on the Value Ladder.
- 💰 As customers receive value and move up the ladder, they become willing to pay more for additional value.
- 👫 Building rapport and trust with customers is crucial, just like in personal relationships, before asking for larger commitments.
- 🎯 Every interaction with a customer should aim to provide value, as this encourages them to ascend the Value Ladder.
- 🔄 The Value Ladder concept applies to various business models, including information products and e-commerce.
- 🏦 By providing value through different offerings (books, software, training, events), businesses can eventually charge higher prices.
- 🧭 Funnels should be designed as a series of value-adding steps that guide customers up the Value Ladder.
- 🚶♂️ Understanding the Value Ladder is key to building a successful business by gradually increasing the value provided to customers.
Q & A
What is the Value Ladder concept?
-The Value Ladder concept suggests that when someone interacts with your business for the first time, you should provide value to them for free. If they appreciate the value, they will naturally want more and be willing to pay for additional offerings, allowing you to keep ascending the Value Ladder by providing more valuable products or services at higher price points.
Why is the Value Ladder important for funnels?
-The Value Ladder is crucial for funnels because it allows you to gradually build trust and rapport with your audience by providing value at each step. As they move up the ladder, they become more willing to invest in your higher-priced offerings, as they have already experienced the value you provide.
How does the Value Ladder apply to different types of businesses?
-The Value Ladder concept applies to both information businesses (e.g., selling books, courses, coaching) and physical product businesses (e.g., e-commerce). The key is to start with a low-priced or free offer, provide value, and then upsell to higher-priced products or services as the customer moves up the ladder.
What is the role of a funnel in the Value Ladder?
-A funnel is essentially a representation of the Value Ladder, with each page or step in the funnel designed to provide value and move the customer to the next level. Every interaction in the funnel should aim to provide value, leading the customer towards higher-priced offerings.
How does the Value Ladder relate to building trust and rapport?
-The Value Ladder is closely tied to building trust and rapport with your audience. By consistently providing value at each step, you demonstrate your expertise and build a relationship with your customers, making them more likely to trust you and invest in your higher-priced offerings.
What is the significance of the "Dotcom Secrets" book in relation to the Value Ladder?
-The "Dotcom Secrets" book by Russell Brunson is highly recommended in the script as it dives deep into the concepts of funnels, the Value Ladder, and the overall strategy behind successful online businesses.
How does the Value Ladder apply to personal relationships?
-The script draws a parallel between the Value Ladder and personal relationships, suggesting that just as you wouldn't propose marriage on the first date, you shouldn't try to sell your most expensive offering to someone who hasn't experienced any value from you yet. Building a relationship and providing value is a gradual process.
What is the importance of providing value at the initial stages of the Value Ladder?
-Providing value for free at the initial stages of the Value Ladder is crucial because it allows potential customers to experience what you have to offer without any risk or commitment. If they find value in your free offering, they will be more inclined to move up the ladder and invest in your paid products or services.
How can the Value Ladder be applied to upselling and cross-selling?
-The Value Ladder can be effectively used for upselling and cross-selling by offering related or complementary products or services after the initial purchase. For example, after buying a product, you could offer a discounted bundle, an accessory, or a higher-tier version of the same product, gradually moving the customer up the Value Ladder.
What is the role of pricing in the Value Ladder?
-Pricing plays a significant role in the Value Ladder. As customers move up the ladder, the offerings become more expensive, reflecting the increased value being provided. The key is to start with a low-priced or free offering to build trust and gradually increase the price as the customer experiences more value.
Outlines
📚 Understanding the Value Ladder Concept
This paragraph introduces the concept of the Value Ladder, a core principle in understanding funnel structure. It explains that the Value Ladder represents the relationship between the value provided to a customer and the price they pay. The goal is to initially offer something of value for free to attract potential customers, and then gradually ascend the ladder by offering more valuable products or services at higher prices. This process allows customers to experience value first and build trust before committing to larger purchases. The paragraph uses examples like the author's coaching program and a tactical flashlight funnel to illustrate how the Value Ladder works in practice.
🌟 Applying the Value Ladder to Build Successful Businesses
This paragraph reinforces the importance of the Value Ladder concept in building successful businesses. It emphasizes that every interaction with a customer should aim to provide value, and if the customer perceives that value, they will naturally want more and ascend the ladder. The paragraph encourages thinking through the Value Ladder for every page of a funnel, as well as across different funnels and product offerings. It also recommends reading the 'Dotcom Secrets' book to gain a deeper understanding of funnel strategies and the Value Ladder concept. The key takeaway is that by consistently providing value and nurturing customers through the ladder, businesses can eventually earn their trust and willingness to invest in higher-priced offerings.
Mindmap
Keywords
💡Funnel
💡Value Ladder
💡Rapport
💡Ascension
💡Provide Value
💡Logical Progression
💡Funnel Structure
💡Micro and Macro
💡Interaction
💡Strategy
Highlights
The concept of a 'Value Ladder' is introduced, where businesses provide increasing value to customers as they move up the ladder, in exchange for higher prices.
Initially, businesses should provide value to customers for free, to get them engaged and interested in receiving more value.
As customers receive value, they naturally want to ascend the Value Ladder and pay more for increased value.
The Value Ladder concept applies to both information products and physical products like e-commerce.
Every interaction with a customer should aim to provide value, so they want to continue ascending the Value Ladder.
Each page in a sales funnel represents a step on the mini Value Ladder, providing value to move customers to the next step.
After the initial funnel, there is usually a second, bigger funnel that offers more value at a higher price.
The goal is to provide enough value through books, software, training, and events, so customers trust and are willing to pay premium prices.
Recommends getting the 'Dotcom Secrets' book to understand the funnel structure and Value Ladder strategy in depth.
Analogizes the Value Ladder to dating, where you start by providing small value and work your way up to marriage if each step provides more value.
Contrasts online business approaches that often skip establishing value and rapport, unlike common sense practices in the real world.
Provides an e-commerce example of selling a flashlight, then upselling cases, rush shipping, etc. by continuing to offer more value.
Emphasizes that every funnel and interaction should focus on providing value first, before asking for anything in return.
Suggests that building rapport and trust through a Value Ladder allows charging high-ticket prices like $1 million for funnel creation services.
Encourages thinking through how to provide value at every customer touchpoint in your business using the Value Ladder concept.
Transcripts
- Alright, welcome back. Now in the last video we talked
about "What is a funnel?".
And by the way, if you haven't had a chance to read the
Dotcom Secrets book, I would recommend it cause
this is where we go deep into like "what is a funnel",
the whole concept that whoever spends the most money
to acquire a customer wins is all talked about in here.
We talk about funnel structure and like, it's a really
good book to understand the strategy behind funnels
if you don't have it yet. So click on the button down below.
There will be a page you can go get the book.
I think it's $7.95 shipping & handling.
But that's what this is all about,
help you understand funnel structure better.
Now one of the core concepts inside of here that I want
to share with you because it's such a key to understanding
how funnels work. It is a concept called the Value Ladder.
So, the way the Value Ladder works,
if you look at this image right here,
on the left hand axis you have value.
This is how much value you're giving someone.
As the arrow goes up, the higher the value is.
On the bottom axis, it has price, and
as you go to the right it gets more and more expensive.
Now, most business owners like, the most ideal thing
would be able to provide the most amount of value
for somebody and get the most amount of money, right?
Like for example, we have a coaching program,
we charge a million dollars to create
someone's funnel for them. And that's amazing right?
Like in a perfect world, I could go to every single person
and be like, "It's a million dollars but I'll create
a funnel for you and it's going to be awesome."
The problem is, if I walked up and saw you on the street
for the first time, and like "Hey, my name is
Russell Brunson, I know I look like I'm 11 years old.
But if you give me a million dollars,
I will build a funnel for you."
You're going to think I'm insane, right?
Because I provided zero value to you at this point.
Yet that's what a lot of as business owners are doing,
we're coming, we're pitching our most expensive high thing,
and shooting for the fences, but people have not received
value from us, so they don't want that.
So if you look at how businesses work,
it moved to this thing called a Value Ladder,
where initially when someone first comes in to your world,
they're kinda testing the water and feeling things out.
So what you want to do is provide value
for them right there, for free.
And if they get value, the tip of their toe in the water,
and they're like, "Wow, that was really really cool,
I had a good experience with so-and-so" and they received
value, us as humans, we naturally will want more.
And we start sending up. Well, that was a really good
experience, what else do you have?
And we'll move up the Value Ladder, where you have a chance
to offer them more value, but they'll give you more money.
And then if they receive value at that level, they'll
naturally want more and they'll keep moving through this
ascension until you stop selling them something
or till you offend them. And that's how business works.
And so, for you that's understanding this process of
the Value Ladder. And you know, listen, in the real world,
right, if someone came to you the first day and
said "Hey, what do you do for a living?"
You would tell them, and you'd try to explain some stuff
and try to give them something that's like
"Aw, cool, that's awesome." And you build some rapport,
and they're would be some value there, and then the next
thing you can do is offer them something else, okay?
It's the same thing like, if and when you met your
spouse, the first time you met them,
you know the first thing, you ask them on a date.
And you provide value, if they have a good time on the date,
then you go on a second date, and it keeps going on until
you get married. There's this logical progression.
Yet, for some reason, online, we all forget that, all these
common sense rules fall out of the world.
"Oh, they're pixels and they're things and it's traffic"
And, no, it's people. You have to understand that.
So what happens is, every single funnel is a Value Ladder.
When someone comes to my very first page,
I'm saying "Hey my name is Russell Brunson,
"I want you to give me your email address."
If I stopped there, you receive no value.
Like "Why would I give you my email address?"
Kay, you come to the page and I'm like
"Hey my name's Russell, and I wrote a really cool report
called blah blah blah blah blah, whatever it is."
And say I'll give you this report for free, just
give me your email address and I'll send it to you.
And you're like "Oh, okay." You give me your email address.
I send you this report, you get the report,
you get some value, like "That was really really good,
"Russell's a cool dude." Then on the next page
in the funnel, then it's like, "Hey I just sent you a report
"Go check it out. I think you're really going to love it."
But while you're here, I want to make a really special offer
to you, and then I try to provide value again.
Normally, I sell this thing for blah, but I'm going to give
you a special discount cause you're here right now.
Or, whatever that thing might be, because you're a first
time subscriber, normally, the first thing I want to sell
you is this thing. A lot of times, in my business,
I sell books for really really cheap or we do,
if you're an off-line business, maybe it's a free exam,
or whatever it is. But it's something you're providing value
Okay, if someone gets that, they buy the next thing,
and the next page is like "Hey, you just bought my book
"for $7.95", on the next page, it's like hey, your book's
coming, you're going to love it.
But some people like to learn in the classroom situation,
I have a home study course that's This,
or whatever that thing might be.
Same thing works with e-commerce. Cause people always
tell me "Well that works in Information, but not
in e-commerce." But the same thing works in e-commerce.
One of our number one quick funnel sellers right now,
he built a huge funnel, it was one of
the most successful funnels I've ever seen.
And it started with a flashlight.
"Hey, this is a tactical flashlight,
"would you like to buy it?"
And people bought the flashlight, and started thinking
"How else can I provide value to this person?"
And started bringing through a value ladder,
he said "Look, you bought a flashlight for this price,
"how would you like a second one for 50% off?"
And boom, like half the people said yes.
Things like, "Hey now you have this flashlight, you want
a kit, like a carrying case you can put it in?"
"Oh yeah, sure, yes." And boom, took the next thing.
And he kept thinking how else do I provide value.
"Hey, do you want rush shipping?" Yes.
"Hey, do you want this?" Yes.
And so the value ladder is always thinking about that.
So every time I'm working on a funnel, I'm thinking
about this is like, they see an ad, they see something,
they click on something, they come to my page.
The first page of my funnel, and I'm thinking
"How do I provide this person value?"
What do I want in return? I want their email address,
maybe want their credit card, maybe want them to
register for a webinar, whatever the action is on that page.
I'm thinking how do I provide value to this person?
And if I do it in a cool way, and they connect and they
have a good experience, guess what?
They're going to want to buy again. And again.
And that's how you build a business the right way.
Okay? And so as we do more and more of these trainings,
we'll go more into value ladder, because value ladder
is happening in a bunch of different places.
It happens inside of your funnel. Every page in your funnel
is the next step of a mini value ladder, okay?
Also, and I'm going to talk about this in the next major
training, after you go through your first funnel,
then usually you have a second funnel, and usually
that's a bigger piece of the value.
So it's kinda like a micro and the macro.
But for right now, it's my thinking about that,
it's like every single interaction I have with someone,
I need to provide them value. And then if they like that,
they will naturally ascend up and they'll want more value.
And I can charge them more and if they like that I can
provide the more and we can keep taking
them through this process. Okay?
That's how I can go right now and get people to pay me
a million dollars to build a funnel for them.
Because I provided value to all these levels.
I provided value through my books, through my software,
through my training, through my events.
Now when it comes to there, it's like,
"Yes, I trust Russell. I have rapport with him,
he's awesome. I believe that he will do
what he's going to do." And now they're willing to
invest the big money. And your business is the same thing,
so you've got to start thinking through that.
And so I want you guys to just understand that concept
of the value ladder. The other thing is if you don't
have a copy of this book yet, I highly recommend,
we'll have a link down below to go get it.
Again, this will teach you all about funnel structures,
it will teach you about value ladders and a whole bunch
of other things. This will help you understand the strategy
of funnels in a much deeper way.
So, get the book if you don't have it yet as well.
Thanks so much, and we'll see you on the next training.
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