#1 Way To Make More Money When Selling Online (Value Ladder)

Summary

In 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

00:00

📚 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.

05:02

🌟 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.

Keywords

💡Funnel

A funnel is a marketing concept that describes the process of guiding potential customers through a series of steps or stages to ultimately convert them into paying customers. In the video, the concept of funnels is central, and Russell Brunson emphasizes the importance of understanding funnel structures and strategies, as outlined in his book 'Dotcom Secrets'.

💡Value Ladder

The Value Ladder is a core concept in funnel marketing. It represents the idea of incrementally providing increasing levels of value to potential customers, accompanied by corresponding increases in price or investment. By starting with a free or low-cost offering that delivers value, customers are more likely to ascend the Value Ladder, making larger purchases as they gain trust and perceive greater value from the business. The video extensively discusses the Value Ladder as a key strategy for successful funnel marketing.

💡Rapport

Rapport refers to the sense of trust, connection, and mutual understanding established between a business and its potential customers. The video emphasizes the importance of gradually building rapport through the Value Ladder process, by consistently delivering value and meeting customers' expectations at each stage. This rapport is essential for customers to eventually feel comfortable investing in higher-priced offerings.

💡Ascension

Ascension is the process of customers moving up the Value Ladder, progressing from lower-priced offerings to higher-priced offerings as they perceive increasing value from the business. The video suggests that if customers receive value at one level, they will naturally desire to ascend to the next level, allowing the business to offer more valuable (and more expensive) products or services.

💡Provide Value

Providing value is a central concept in the Value Ladder strategy. The video emphasizes that at each stage of the funnel, the business must offer genuine value to potential customers, whether through free content, discounted products, or premium offerings. Consistently delivering value builds trust and increases the likelihood of customers ascending to higher levels of the Value Ladder.

💡Logical Progression

The video likens the Value Ladder to a logical progression, similar to the natural progression of building relationships in everyday life. Just as relationships develop gradually, from initial meetings to deeper commitments, the Value Ladder guides customers through a systematic process of increasing value and investment. This logical progression is essential for building trust and rapport with customers.

💡Funnel Structure

Funnel structure refers to the overall design and organization of the various stages in a marketing funnel. The video highlights the importance of understanding funnel structures, as outlined in the 'Dotcom Secrets' book. A well-designed funnel structure ensures that customers are guided through the Value Ladder effectively, with each stage providing value and leading naturally to the next step.

💡Micro and Macro

The video briefly mentions the concepts of 'micro' and 'macro' in relation to funnels. This likely refers to the idea of having a micro-funnel (the initial funnel that captures leads and introduces value) and a macro-funnel (a subsequent, larger funnel that offers more substantial value and higher-priced offerings). This distinction highlights the multi-stage nature of effective funnel marketing.

💡Interaction

Interaction refers to the various touchpoints or points of engagement between a business and its potential customers throughout the funnel process. The video emphasizes that every interaction should aim to provide value to the customer, whether through free content, special offers, or other forms of value delivery. Consistent, valuable interactions are key to building rapport and guiding customers through the Value Ladder.

💡Strategy

Strategy refers to the overall plan or approach to effectively implementing funnel marketing and the Value Ladder concept. The video recommends studying the 'Dotcom Secrets' book to understand the underlying strategies behind successful funnel structures and Value Ladder implementation. Having a well-defined strategy is crucial for effectively guiding customers through the various stages of the funnel and maximizing conversions.

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.