Free Business Tool: Value Ladder
Get clear on the products you offer, how the correlate to one another, and how to price them to encourage your followers to buy multiple times.
This post is inspired by Dot Com Secrets by Russell Brunson and contains a modified tool from the authors work.
Tired of struggling to get your product line in order?
Try using the Value Ladder to get a grasp on where your products lie in correlation to one another.
This concept was introduced to me by Russell Brunson, author of Dot Com Secrets. This diagram/tool allows entrepreneurs like you visualize all of the ways you provide value to your audience. This tool implies and requires that your offerings come in a sequence. Sequence meaning there is an inherent order that you are presenting to the client. Businesses are encouraged to grab their audience attention and wet their pallets with a low risk, valuable offering. Once here, it is easier for businesses to move their customers up to higher end products that generally carry a higher price tag.
Drafting a value ladder will help you identify if and where you can diversity or concentrate your offerings for your audience. This is because the entrepreneur is able to see the entire product landscape from free offerings (A) – down to your most luxurious products (Z).
Why this tool works!
Personally, for me it was transformative to take my products and product ideas from my head down onto a workable and meaningful framework that has real business application and impacts on prospects and personal ideas around implementation. Also supports the real notion that social media activity is not business, in and of itself. It is merely the publicizing and media marketing of your business dealing and offerings.
Follow the jump to see how to develop your own Value Ladder.
HOW TO USE:
a. Create a diagram similar to this one. The number of rungs is up to you. Understand that as you go up your value ladder you need to be increasing the price of your products. And in my opinion, the higher you are on the ladder, the less time the entrepreneur needs to spend on the product creation and implantation.
• If you’re unsure how to create one yourself feel free to click the link here to download the sample I’ve created for you.
b. Using pencil, begin to fill in your value ladder. Be willing to erase and re-arrange as you see fit. I began including price points for reference which of course changed.
Notes: Everything doesn’t need to live on one ladder. You may have different companies or varying products. For instance, I have two distinct ladders for my health and fitness related products and another separate ladder for entrepreneurial products and offerings.
I’ve put together a video describing how to use the value ladder for your own business and creative ideas. The goal of this platform is to figure out ways to create and share the tools you need to change the world!
Go ahead and start drafting our your own Value Ladder. The moment I did this my entire company made sense to be honest. I can see how the varying arms of my business, Leadership Development and Health & Fitness, interact and support each other. I can also see how I need to market and drive the products independently from one another.
Give yourself a few hours to sit down and brainstorm what your products are. How they connect and impact one another. How they feed each other, and can siphon energy away from one another. And how their proximity and value impact overall pricing.
If you’re unsure how to draft your own Value Ladder, and would like to download a free sample. Drop your email here to get a pdf version of the one embedded here.
Once finished, drop a comment below about any reflections or ah ha’s you experienced drafting yours out.