"value ladder" "growth strategy" "money making business"
These are some of the elements I look for when I'm deciding if I should enter a market. I only want the Red Ocean's where the cards are truly stacked in my favor. Here's how…
Today, I’m gonna teach you the method I use to make sure that my value ladder crushes it…
And “Yep, you’ve guessed it.” There’s a science behind the way I make sure that I have the right products at the right price points to sell at. If you want a money making business… and not just an expensive hobby, then listen up!
There’s gonna be a bit of Papa Larsen love, and I hope it’ll help you understand why your business may not be doing that well - even though you seem to have all the pieces.
...Just picture me in a Santa Hat, if it helps to ease the blow.
THE VALUE LADDER
Hacking The Value Ladder was a specific section that I taught during my recent live event OfferMind.
If you don't know what a value ladder is…
A value ladder is a way to design a business and map out your customer:
In college, I was encouraged to write monstrous 35-page business plans, which were not even that executable by the time you were finished plowing through them.
Now, what you may not know is that the value ladder was kinda pioneered by Russell Brunson who did a whole lot of work to help figure out how to plot all those things on one graph - value ladders are a huge deal.
I never write business plans; I ‘value ladder.’ It’s a way to simplify everything I'm doing.
HACKING THE VALUE LADDER
I have a value ladder for both of my businesses which means I know the exact next step I’m building at all times - which is cool because it also means I know exactly what I'm NOT building as well.
If you’re thinking, “Ok, Stephen, value ladders are awesome, but they’re nothing new...”
I want to show you the specific order I use to attack a value ladder that allows me to create cash flow and build my business at the same time as acquiring customers.
But first, I’m gonna cover the basics…
Traditionally, a value ladder looks like this:
There are value ladders with more steps, but typically we draw them with three steps...
There are two axes:
On one side we have "value" and the other side we have "price."
Now, you might be a bit confused by this if you're brand new in this game... However, Price and Value are NOT the same thing.
(This is a completely different topic which would be fun to rant on about sometime in the future.)
The more value you give, the more money you can charge moving up the top.
So when I'm planning how to actually tackle a red ocean, I always look at:
To do this, what I like to do is tier the price points that are already in existence inside the market I’m hacking.
I look at three different categories inside the market, and ask:
Let’s take a look at a hypothetical value ladder...
A REAL ESTATE VALUE LADDER
Let’s say I look at the three price points inside the real estate category and I find that:
Now I have my market and the different price points that the industry is used to bearing...
Next, I look to see, “How frequently does the average real estate agent make a sale inside each of those categories?"
Based on what I discover, I can work out, “How much can I expect to make if I enter that market?
If you’re sitting back thinking, "Oh crap, this is really, really simple." It is, but, “Man, I'm shocked at the number of people that don't do this.”
They start selling some freaking knick knack and then ask, "How come I'm not making any money?"
I'm like:
Your funnel's great, your sales message is awesome, your offer is fantastic, but the industry you went into is not used to the price points that’ll actually make a lifestyle for you.
I swear if someone tells me they're selling “Homeopathic Life Coaching” to College Students, I'm gonna go nuts!
This exercise helps you to determine whether or not you even want to enter a particular market.
Just because I could enter a market, it doesn't mean I should. If that market isn’t a good fit for the lifestyle that I want, then I won’t go there.
I'm not trying to throw rocks here, but I am trying to get your freaking attention.
A “CHANGE YOUR WORLD” VALUE LADDER
A quick story…
