Are you looking for a way to increase your revenue and earn more income? If so, you’re not alone. Creator educators are always searching for new ways to maximize their earnings, and one of the most effective strategies is through a value ladder.
In this blog post, I’ll discuss what a value ladder is, how to create one, and how it can help you grow your business.
Skip ahead:
- What is a Value Ladder?
- How to Create a Value Ladder
- Benefits of a Value Ladder
- Using a Value Ladder for Your Business
- Implementing a Value Ladder
What is a Value Ladder?
A value ladder is a marketing strategy that is designed to take customers on a journey from a low-priced entry-level offer to a high-priced premium product. The goal is to create a series of products or services that are progressively more valuable, with each step building on the previous one.
How to Create a Value Ladder
To create a value ladder, you need to start with a low-priced, entry-level offer that provides value to your customers. This could be a free e-book, a low-priced course, or a small service that you can provide. Once you have your entry-level offer in place, you need to create the next step on the ladder, which should be a higher-priced product or service that builds on the value of the previous offer.
For example, if your entry-level offer is a free e-book, your next step could be a low-priced course that expands on the information in the e-book. From there, you could create a higher-priced coaching program, a membership site, or a mastermind group. The key is to create a series of offers that are increasingly valuable and that provide your customers with more and more benefits.
Benefits of a Value Ladder
The benefits of a value ladder are numerous. It allows you to:
- create a series of products or services that appeal to different segments of your audience. Some people will be interested in your low-priced offer, while others will be willing to pay more for higher-priced products.
- increase your revenue without constantly acquiring new customers. By offering more products or services to your existing customers, you can increase your revenue while also providing more value to your audience.
- build a loyal customer base. By providing value at every step of the ladder, you can create a community of customers who are invested in your brand and who will be more likely to refer you to others.
Using a Value Ladder for Your Business
Now that you understand what a value ladder is and how it works, let’s talk about how you can use it for your business. The first step is to identify your market and the problem you are solving for them. You need to offer information that is a solution to their problem and not just information for the sake of information.
Once you have identified your market, you need to create a value ladder that caters to their different willingness to pay and the severity of their pain points. This means you need to offer products at different price points that offer varying levels of features and benefits. By doing so, you can price discriminate and capture customers who are willing to pay more for better results.
Related: How to Price Your Online Course (Complete Guide to Course Pricing)
An Example of a Value Ladder in Action
Let’s say you are launching a new course for real estate agents on how to close and negotiate more deals faster so they can make more money. Your audience is salespeople, and they are interested in using your techniques to make more money. The pain point you are solving for is that they are not good at closing deals, not closing enough, not making enough money, or leaving money on the table.
To create a value ladder for this product, you could offer different products at varying price points, such as:
- A playbook at a low price point of $97
- An asynchronous course at a medium price point
- A group course with an expert instructor at a higher price point
By offering different products at varying price points, you can cater to different customers and capture those who are willing to pay more for a tailored solution. So, if you’re looking to grow your business, consider creating a value ladder that offers different products at different price points to cater to your customers’ needs.
Related: 5 Steps Towards Financial Freedom For Online Course Creators
The North Star Principle
The first step in implementing a value ladder is to define your North Star Principle. This is the overarching principle that drives your business and guides your decision-making. It defines your core values, beliefs, and goals. Your North Star Principle should be something that your team believes in and is passionate about.
Define your Core Tenets
Your core tenets are the beliefs that drive your business. They should be aligned with your North Star principle and provide a foundation for your value ladder. Some examples of core tenets might include a belief in the power of sales or the importance of time management.
Delivery Vehicles
The next step is to identify the delivery vehicles for your North Star Principle. These are the different products or services that you will offer at different price points. Each product or service should be designed to help your customers achieve a specific goal or solve a specific problem.
The delivery vehicles are the stops on the value ladder. Your goal is to help your customers climb the ladder by offering them more value at each step.
For example, if your North Star Principle is to help people achieve their fitness goals, your delivery vehicles might include:
- A free guide with tips on healthy eating and exercise
- An asynchronous course on how to design a workout plan
- Personal group training sessions
- One-on-one coaching
The key is to offer more value at each step of the ladder. As customers climb the ladder, they will become more invested in your brand and more likely to purchase your higher-priced products.
Implementation
Once you have defined your North Star Principle and identified your delivery vehicles, it’s time to implement your value ladder strategy. The best way to do this is on one platform. Thinkific is an excellent platform that offers a variety of tools for different delivery vehicles.
Gamification is an essential element of a value ladder strategy. You need to help your customers see the game of checking off each level as they go. Think of it like a step stool ladder, where each step represents a different product or service.
As you implement your value ladder, keep in mind that you need to add more value at each level. You can’t offer the same lessons or material at each level, or customers won’t be motivated to climb the ladder.
With the right marketing strategy in place, your value ladder can be a powerful tool for driving revenue and growth for your business.
If you want to learn more marketing trends and strategies to grow your business, sign up to watch this free on-demand webinar series.
