Summary & Resources:
In this episode we discuss the importance of warming up your cold leads with a value ladder that will help step people up to your ultimate offer.
In this episode:
- Why you can’t offer your main service outright
- The importance of building a value ladder for your business
- 2 examples of value ladders
- Getting started on a value ladder for your offering
Hello, this is Justin Coleman with The Master Sales Funnels Podcast, and this is Episode 14. Today, I wanted to talk about making your value ladder.
The value ladder is a concept that I learned from Russell Brunson. You’ll hear a lot in my podcast about things I learned from him. He’s kind of my funnel guru.
And what I learned is that it’s really… the value ladder is really the power behind sales funnels. It’s stepping people up, gaining their trust, starting them with a free offer, showing them a solution to a problem that they may have, and then guiding them further with more value to solve their next problems.
When you solve one problem for somebody, another problem naturally arises and you have the opportunity to fulfill that with either more free training. Eventually you want to get to the point where people are paying you for the answer to the next part of their problem. So if you think about it in a context, that of something maybe you’ve purchased in the past, you’ve maybe bought a training online on how to run Google Ads and you go through the training and then you have another problem of what am I going to sell?
So if you’re walking somebody up your value ladder, if you’re the one selling the training on Google Ads, you might start with, say, a free blog post that kind of ropes them in. If you’re good at SEO, the free blog post can introduce them to Google Ads and what benefit Google Ads will have to their business. And then within that blog post, say at the end, you have a call to action where they can download a more in-depth guide on how to get their first ad up and running.
And then maybe at the end of that guide, you have what they would want next. So maybe they want to know tips and tricks on how to optimize that ad and really get niche and find the people that they’re looking for. And then maybe you have another training after that one where, maybe it’s a done for you thing where you’re like, well, now you know how to do all the ads, but it takes a lot of time. And we’ve spent, you know, x millions amounts of dollars on ads and we have all the answers. So pay us and we’ll run the ads for you.
The point of the value ladder, as you can see from that example, is you’re stepping people up. You can’t just walk up to your customers and say, hey, buy this ten thousand dollar coaching program from me. You have to get people from not knowing you, from cold traffic, warm them up through a series of free and paid offers at lower levels until you finally walk them up to the point where you can charge them the big bucks.
And this really encapsulates the whole purpose of sales funnels. You’re adding value to people who need value. It’s really a win-win situation. You’re getting money from people and people are getting value from you. And that’s really the important thing to remember in this. And it makes it easier to sell if you keep this in mind. You want to be making it a mutual exchange. You’re not being salesy. You’re not ripping people off. You’re not being the slick haired salesman.
You’re providing actual value to people that they can use to get them from point A to point B. Think about where your target audience is now and where you want to take them and then create a series of offers based on that journey and take people through that journey.
One example that I’ve used in a course that I taught recently is a travel agency. Kind of hard to think of offers or ways to sell like, say, a personal travel guide where the example was in Italy. So selling a trip where you get there in the guide has your whole trip planned out and they personally take you around and get you all the deals and that kind of thing. But as you can well imagine, that would be an expensive offering. You can’t just go around and offer people that, especially in hard financial times now with the pandemic and people not wanting to travel as much.
But you can flip that on its head. Maybe people are starting to think about where they will want to go once the pandemic’s over. Maybe people are starting to book their trips now because they’re cheaper. So maybe we can create a value ladder to walk people up to wanting to purchase that, basically done-for-you vacation that’s all planned out and fully guided for you.
So for a free offer, you might start with a blog post on Italy Hot Spots and at the end of that you’ll have a call to action for a free opt-in where they give you their email and get on your email list and you will give them the Secret Hidden Gems of Italy that not that many people visit, because obviously there’s a million blog posts out there with hot spots, but you can have the insider information so you can give them that and a free guide. It’s enticing. People will want to get that from you.
Once they get that from you, then maybe there’s an advertisement at the end of that short guide that gives them the Ultimate Italy Travel Guide where it’s just, you know, full blown travel guides that you’ve seen that you can purchase that kind of going to a little bit of the language and the culture.
And maybe that’s a free plus shipping book. So they give you $9.95 for shipping and you give them the Ultimate Italy Travel Guide.
And as you’re selling them the travel guide on the back end of that funnel, maybe you have a full immersion course where you have video lessons, where you teach them about cultural norms in Italy, maybe you even teach them Italian, teach them how to, you know, get around how to drive around, traffic laws, what they really need to know about food and dining etiquette and, you know, the best places to visit.
And you can sell that full cultural immersion course at a premium because, yeah, they have the book, but, you know, your video course is really going to go more in-depth on all of this and really give them an easier to ingest experience.
And after your full immersion course, then you can offer them what we wanted to offer them originally, which was the personally guided vacation. You can offer them, like I said, the full itinerary. You can give them a personal travel guide that will actually take them around to the different hot spots, the secret hidden gems that you’ve showed them. Basically a full planned out vacation where they can get the most out of their time.
And also, maybe your company knows how they can get a ton of discounts or maybe you’ve brokered deals with all of these places that you’re taking people and you can get them that special discount that they can’t get anywhere else. So it’s possible if you do something like that, that you could save them money by hiring your company. So basically, they’re going to save more in discounts than they’re going to pay you. So why wouldn’t they pay you for this exclusive offering of you guiding them around Italy?
The value ladder works in pretty much any business that you can implement a funnel, which is pretty much any business. You want to be thinking about, how you can step people up to your main offer. You don’t want to just shove your high ticket offer in their face. And there are a ton of different ways that you can build out funds for this. I mean, obviously in our example, you can have just the guide for the secret Hidden Gems first.
And then in the guide you can have the advertisement to the Ultimate Italy Travel Guide. But really, you want to set it up in a continuous funnel and then you can bring people back to your other offers later.
So they opt in for your guide, you immediately hit them with the ultimate travel guide. They opt-in for the Ultimate Travel Guide or they pass on it and you immediately offer them the full immersion course and then you immediately offer them your high ticket personal travel guide service.
So you’re offering all of this in one funnel in the beginning. And then what you do is see where people drop off and then you can email them about other offers later, figure out about how long it takes them to read the first guide, the free guide, and then send them an email about the ultimate guide that’s just free plus shipping and then figure out about how long it takes people to read that and then send them an email about the course that you’re going to sell.
So what we get out of this is follow-up is important. And making them the offer right away is important. If you have a buyer that’s ready to go, you want to make that offer while that lead is a hot lead. You don’t want to let that cool if possible.
If they don’t want the rest of the stuff you’re offering right now, they’re just going to go ahead and pass through everything, another good tip is to put steps on each page so people know how many more things you’re going to be offering them so they don’t get lost in the funnel thinking they’re never going to get out and you’re just going to keep offering them things all day. That gets annoying to people. So make sure you have some kind of progress bar or step bar at the top.
And also try and be true to your word. So if you’re full cultural immersion course that you’re offering is a one-time offer, don’t offer that in any other funnel. You want to make sure that if you have a timer on something, usually once it hits zero and your sales actually over, you want to stop offering that sale. If you say you’re never going to offer something again, I mean, that makes it really exclusive. That makes people want to buy it. But you need to stick to your word. People will trust you more if they know you’re sticking to your word.
If they see an offer that they didn’t get and there’s an hour timer on it and then they see that offer again somewhere in like a week. They’re not going to trust you. They’re going to know that you’re trying to game them into getting things. So, again, you want to make your value ladder, provide value to people, and you you want to be honest in what you’re doing. I mean, the point is, yes, to make money.
But you also really want to be creating raving fans. You want to be helping people. That’s the point of the business that we’re doing is helping people.
I’m going to post an image of the travel agency example on the show notes for this episode. And I’ll also post a link to a video training where I kind of talk more about sales funnels and the value ladder.
These resources can be found in the show notes at mastersalesfunnels.com/014. If you have any questions about value ladders or you want some help brainstorming, maybe what a value ladder could be for your type of business I mean, I’m always open to listening to you and giving some advice, helping out where I can just let me know.
Thanks for listening and as always, Keep Funnelin’.