Russell Brunson introduced the idea of the value ladder to get businesses to create increasingly more valuable product offerings.
The concept states that if a customer has purchased a product from you, they may be interested in a more expensive item; therefore, you should offer it to them.
Key Takeaways:
- Both online and brick-and-mortar companies can use value ladders
- Russell Brunson’s value ladder is designed to increase the lifetime value of customers
- ClickFunnels 2.0 can be used to create value ladders
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What Is Russell Brunson’s Value Ladder?
The founder of ClickFunnels, Russell Brunson, coined the term “value ladder” to describe the series of increasingly expensive purchases a customer makes.
For example, a customer may start by purchasing a book, then buy a course, and finally, one-on-one coaching.
With each purchase, the customer moves up the value ladder as the products become more expensive.
The great thing about the value ladder is that there is no upper limit to the offers and prices you can charge. After a customer has purchased something, you can always offer them the next product on the value ladder.
At the top of Russell Brunson’s own ClickFunnels value ladder is his $250,000 inner circle mastermind.
Why Do Businesses Use Russell Brunson’s Value Ladder?
Since Russell Brunson started promoting the value ladder concept, it has been adopted by businesses across all industries because of many reasons:
- Increase Revenue – If you start offering more products at higher price points, then it’s likely that you’ll see an instant increase in sales and orders.
- Appeal to Different Market Segments – Each customer is unique and has different needs and price points; therefore, by creating a value ladder, you can cater to different demographics.
- Customer Growth – If your company sells B2B, then it’s likely your clients are always growing. Therefore, you’ll likely need to offer an upgraded version with greater capacity or features to them as they grow.
How Businesses Can Use Russell Brunson’s Value Ladder
Both online and brick-and-mortar businesses can use Russell Brunson’s value ladder.
Dentists
Russell Brunson gives an example four-step value ladder for dentists:
- Teeth cleaning
- Teeth whitening
- Retainers
- Cosmetic work
In addition to the increasingly more expensive services, he includes a continuity offer with a check-up every six months to generate recurring revenue.
Restaurants
The restaurant value ladder uses promotions and discounts to increase revenue:
- Get a free cocktail or drink with every meal.
- Receive a discount if you bring a friend to eat with.
- One child eats for free with every full-paying adult.
- Large parties can use the private dining area.
Each step contains a different offer, and they get progressively more expensive.
Accountants
ClickFunnels also details a value ladder that accountants can implement:
- Free tax report in exchange for a potential customer’s contact information.
- Completing and submitting a tax return.
- Ongoing bookkeeping and tax optimization.
E-Commerce Companies
E-commerce can be extremely competitive. Increasing the lifetime value of the customer is essential for success.
Here’s a value ladder e-commerce companies can create to increase their lifetime value:
- Sell a product.
- Offer a course or PDF downloadable, teaching people how to get the most out of their product.
- Sell one-on-one coaching for the product.
Another revenue stream ideal for replenishable products is a subscription package. For example, a supplement company could deliver protein powder to customers every month.
A Russell Brunson Value Ladder Example
Russell Brunson created a value ladder when he released his book Dotcom Secrets.
We’ve analyzed this value ladder and broken it down for you.
Dotcom Secrets Value Ladder:
- Step 1 – A free quiz to understand the customer’s wants and the products they’re interested in.
- Step 2 – Offer the customer a free book and just get them to cover the shipping costs.
- Step 3 – Invite them to attend the Invisible Funnel Webinar, where they can pitch ClickFunnels software.
- Step 4 – Customers may be interested in purchasing courses and training to get the most out of the software.
- Step 5 – Russell then introduced the most loyal customers to the Inner Circle offer, where they can join to receive coaching.
Frequently Asked Questions
What Is Russell Brunson’s Value Ladder Concept?
Russell Brunson’s value ladder concept is the idea that every customer purchasing from you may also want to buy a more expensive item. Therefore, businesses should create more valuable product offerings to sell to customers.
What Platform Can I Build a Russell Brunson Value Ladder on?
ClickFunnels 2.0 is a great platform to build a Russell Brunson Value Ladder on. The platform allows you to create funnels to offer customers upsells, subscriptions, and products.
