The value ladder breakdown is one of the most critical parts to understanding the “Email Mastery Journey”. It puts you in a “bird’s eye view” of what your business will look like when it’s making $1M+ a year.
Value Ladder Breakdown
Hi, I’m Zach Miller and today I am going to break down a very unique process. Quite simply I think a lot of us as marketers or advertisers seem to forget, and what that is, is the simple idea of a value ladder. Now, what does that mean? A value ladder, quite simply broken down just simply means that you start out with your relationship with someone just opening their wall. The idea that they would even trust you with their information especially when we do online sales and e-Commerce, things of that nature, someone is trusting you with their credit card details and in a day and age where online fraud is pretty low but the idea, the stigma is still there that you could just steal this. So when someone brings out their wallet and they say yes for that first time when they purchase, that’s the initiation of the value ladder truly coming to its first step. Because when you are at base level your value is being a subscriber, and that’s always the baseline before you start your relationship, someone that is just free, they haven’t purchased anything and you are building up everything from there. So of course, naturally the time, the value that you can give is of equal measure.
Now, if it is good content and I am sure that just like this, it is being free, and you guys find extreme value from it and that you can only imagine what the next step up holds for you on the other end, which of course increases that relationship allowing me to instruct you to that very first step, opening your wallet for me, usually for a low-cost purchase, something usually under $100. Most of my free things I love are free + shipping or tripwire. Now those are things where it is the idea of being able to say it is still free. But again, you have someone’s credit card details, it’s on the system, it’s on the file. So everything that I offer them from here on out is just a one click up-sell, especially when you use Click Funnels, that really helps as a system for utilizing it. I love it and currently it is something that is truly integrated and woven throughout my business the way that I do marketing online now. It just allows you to capture these details, process it at a further date, no matter what that date is, whether it be tomorrow or 10 months from now. As long as everyone still on the list subscribe and they say yes to a purchase, it’s just one click away for you. And that makes it a lot easier because people don’t have to give you and open up that wallet again and almost rebuild that relationship. So again, once you have someone’s details you want to keep that. There are a lot of other systems out there but Click Funnels is what I use, it is the best right now. Of course, I got my affiliate link down there, you can join and you can even hack my whole funnel just by getting that link.
What I want you to really do is really associate what you can give as your baseline value for free subscribers as much as you are willing to give. I want you to establish that because that is what it is going to be – a lot of your subscribers are going to be sitting on there, that’s probably about 80 to 90% of what your list is going to be. The very fact is that a lot of people are still waiting on the edge, on the cusp, and it’s not the matter of fact that they are not willing to go and jump all the way to the top of your value ladder and spend $25,000. Or they are extremely successful, maybe they won a million dollars funnel for coaching program that you built up for them, whatever it may be, the point is that there is always that ability to jump up there. But you need to deliver value for someone that is going to stay on that side and that portion and it just learn enough about you, kind of what we call them is just lurkers – they just sit there on your email list, no open, no click through on certain things, but they really won’t make that initial first purchase.
Now, once you finally do get a product, of course that is that hot ticket, that hot button, you can convert a lot of your list into buyers. And that buyer is usually converted through a tripwire or a free + shipping. Like I said, you are building up that value up and up more as you increase the value along the lines. So what you want to do is as you step everything up, the price steps up. Now these things can range depending on what the markets are, the market always dictates what you can charge. And if you are within your own niche or you are doing your own thing, covering something no one has covered before, I suggest that you start modest. Always look for as I say for $1 in, $1 out. You’re thinking of breaking even on your first product or your first entire funnel build out including all your up-sells, that should all break you even. If you make anything, great, but you are looking to build a buyers list, because that’s that 10% or that 20%, like I said the 80/20 – 20% will be buyers, the 80% will be all free subscribers, but guess what? You are going to meet 80% of your money from those 20% of your buyers, and the other 20% is going to come from your freebie users.
Now the unique thing is that, Dan Kennedy told me this, and it was something that just runs so true, so deep inside of me and it gave me a haha moment. He said, “A buyer is a buyer is a buyer” and it seems simple but we forget that, we forget that someone who has bought from you has now opened up their wallets, they are now willing to buy the next thing, the next thing and the next thing. You just need to give them the next amount of value that shows, “Hey, here is why you should pay me this much more because I am giving this much more time and dedication into this product or service right here.” And you are building them up of course, through time. And sometimes like I said, people will do the job but it is usually a very natural progression. People start out with your opt-in, they will see you about 10 to 12 times because people don’t usually buy on the first time, they will actually buy after they have seen you 12 times; that’s what I found out. That’s a very natural number actually; that’s why you have re-target hitting or that’s why you have your email list especially, that’s why email is number one on my marketing agenda for anybody who is first starting out online. An email that you collect can end up making you who you are, you don’t know who that person is on your list, it could be one person. Take for example, I had an email list only 1000 buyers when I first started delivering my SEO in larger contracts, charge anywhere from 5 to $1,000 a month and issuing anywhere from one to two year contracts. I could get contracts from my list of just 1000 buyers, and guess what? Those buyers, just $5, that’s all, they opened up their pockets. And the fact that they opened up their pocket that qualified them, that they trusted me; from that trust I was able to sign very large contracts. And the same can be said across any genre, any niche, any industry; it can be applied with the exact same formula.
The value ladder allows you to lift up that value to people. You get to explain it to them over time and let them know, “Here is who I am as a person, here is what I do, here is what I love to give out just because I love to give”, honestly that should be a very core thing of who you are as a person. If it isn’t then I definitely suggest that you check out some of my NLP videos and some of my podcasts regarding that, because with NLP we can definitely make a core part of you being a person because you should feel good when other people feel good and succeed because that’s your success and, you know, it spins. And when things spin, emotions spin, you can spin good things out of control, and then when you actually do have control of good emotions then you can spin them even faster. It makes you feel better and it makes you motivate towards things where you want to give as much as you can up front so that people know who you are, how much you are willing to give, give that value so that they can have success immediately.
And usually what I suggest doing is giving the best things you can, usually 80% of your best because you don’t want to give everything, you don’t want to cloud people’s ideas and minds with 100 different things that they can do. No, you usually want to focus. Just like you keep listening to me you will have heard a lot of the things that I touch on and talk about, and if they are a lot of the same core features that I cover inside my courses. Inside my courses I break them down, I go in depth – we’re talking case studies, we’re talking what matters; the core, efficient things. But here I am giving you all the same ideas, but I am just casting a wide net and giving you ideas and letting it more free flow and let you guys know, “Hey, this is value ladder, here’s how you can apply it to any industry over here or there.” But when I actually get into the courses it goes, “Here is exactly what you’re going to do, here are these price points that you should be giving, here is what you should be offering at these points in time, here are the type of funnels that you should be using when you are at this point in the value ladder.” I go very in depth, very laser targeted so that it’s hyper success oriented; and that’s what happens inside of the courses. But here, again, it’s just a wide net, I want to you just to free form and flow and understand and think and get your mind really just going, “Oooh, aaah, yeah.”
With the value ladder you are understanding that, “Hey, I am going upwards, I am able to increase that price.” You can charge people $12,000 but you have to establish why $12,000 is worth $12,000. It’s not just $12,000 that you get when you get my coaching and I build out funnels and my team and staff helps you with your scripts and everything. It’s not just that; it’s the fact that you understand the applications behind what is being delivered inside of someone’s hands. And if you can give that message clearly and it should just be one thing at each step inside your value ladder, if you can deliver that one core idea, just make it one thing, you will be much, much more successful.
Perry Belcher told me the second that he introduced two or more ideas inside of a sales letter or any side of email blast or send that he ended up doing to his buyers list, it didn’t work, it wasn’t successful. The second that he focused on just one idea, one thing, one benefit, one reason, this is it, here is why, with this it shows you how to, without having to ________. You want an ‘how to benefit without the pain point’, usually what it takes to get said benefit. Again, your product should just have some simple tweak. Everyone can think about a tweak inside of your system that goes “Aaah”, this haha moment. It doesn’t have to be everything inside of your system. Guess what? Inside of my email mastery course I have almost two hours of my best content, but most reasons why people buy is my 100 clicks a day video, my formula which shows you here is how it’s all truly possible, here is how you are going to fill in the blanks for this formula and make it your own. And that, that simple thing, I only touch on that and it takes about 15 – 20 minutes – out of the two entire hour course, my best materials. But that’s the point, it’s that you are focusing on one single thing, that’s what you’re building every touch point inside of the value ladder – one idea, one thing, repeating, repeating.
And once someone gets that idea they purchase, they open up their wallet because that is what they are there for. And that is your dream customer, your dream client, your dream student, whatever you want to call them, your tribesmen, your clan, your client, it doesn’t matter. That becomes the initial core ideas, getting them in to that simple buy, and then you can explain the next benefit, reel them up and reel them up and make it a bigger and bigger value for them so that they understand when it comes to, “Hey, I am going to fly out, and I am going to spend 3 days with you. And you are going to teach me all this cool stuff, all the inside things. I am going to get to see how you do what you do because honestly I want to see the way you breathe when you work.” And there are people that want to see that, there are so many people that want to see how do you just walk and move inside your home when you work and how do you do it, and what does your setup look like? Is it amazing is it… No, it’s pretty simple. But those are the inside details that are high up on the value ladder because people built up their interpersonal relationship with you and your story and who you are.
So again, just think about that, that you can increase the price as you increase the value, and that’s the value ladder, that’s where you build up. You cannot charge people instantly out of the gate $5,000 for something. Yes, maybe 1 in 1000 people will convert and that is great, you can even have a decent ROI with that, but it is not going to build lasting relationships, it is not going to build a lasting business for years to come because when you have a clan you can rely on maybe just a couple thousand or even 1000 because that’s all it takes, people. Then when you have that and you introduce your next thing and every one of those thousand people are having success with what you do because they are doing what you do and they are manipulating it for their own needs in the sense that they grow their business or their health or they lose weight. Whatever it may be, people are constantly, constantly there looking for the next way they can increase that next level.
And as long as you are there saying, “Hey, here’s the next level that I offer”, people are going to be willing to say “Yes, I want to be there with you no matter how much it costs.” No matter how much, people are willing to pay millions of dollars to spend time with you as long as you have the story that makes it cool to spend time with you or that makes it a reason that you would help build their business or shape their life in the way they think or their health and give them a whole new makeover. Whatever it is, you can build that value if you already know, you’re thinking it inside your mind even now as I say these words. So just get your value ladder together, think about what you want, what you would step people up with. Like I would say, the very top is what you would charge people the most for. Don’t be afraid, I think the minimum should be $5,000. For me the haha moment was $12,000 for my industry, my niche where people are just really… you can tweak them, you can make them hyper successful; you don’t just want successful people, right? That’s not your dream client; you want hyper successful people, you want to make them hyper, hyper successful, that’s what it’s all about.
So again, that’s your idea, that’s your dream, what you are willing to charge. At the very bottom that’s where you need to focus because that’s where everyone is coming through, that’s the top of your funnel, the very bottom of your value ladder. And what you are willing to give, for people that are going to stay there basically almost as if they were there forever, but you are trying to convert them obviously, that is always the goal. But what is that value? How much are you willing to give? What are those topics? They should stay core topics and you should really just focus on that, don’t try and give them too many ideas at once; you can introduce other things down the line. Maybe one month you are covering just Facebook, or one month you are covering just how to do weight loss or ab workouts or this supplement or this dietary plan or whatever it is, how to. Each month focus on that one thing for your list that you are giving to those free subscribers to step them up because there is always something that you can push them up with, a very simple “Here is a $7 thing that I spent 30 minutes doing, I made a video, this could be a $7 offer explaining the ladder.” Something like that, just give it out and that just helps increase that value and you identify who is willing open their pocket and go, “Okay, I trust you now.” And once they trust you, that’s a tribesmen, a clan, a client, a customer, a student; whatever it is, that’s the person you are going after and that’s the list you’re building.
So value ladder, I hope that helped, I am going to let you guys go. If you enjoyed become a subscriber below. See you guys later, bye bye.