- Alright, welcome back. Now in the last video we talked about "What is a funnel? ".
And by the way, if you haven't had a chance to read the Dotcom Secrets book, I would recommend it cause this is where we go deep into like "what is a funnel", the whole concept that whoever spends the most money to acquire a customer wins is all talked about in here. We talk about funnel structure and like, it's a really good book to understand the strategy behind funnels if you don't have it yet. So click on the button down below.
There will be a page you can go get the book. I think it's $7. 95 shipping & handling.
But that's what this is all about, help you understand funnel structure better. Now one of the core concepts inside of here that I want to share with you because it's such a key to understanding how funnels work. It is a concept called the Value Ladder.
So, the way the Value Ladder works, if you look at this image right here, on the left hand axis you have value. This is how much value you're giving someone. As the arrow goes up, the higher the value is.
On the bottom axis, it has price, and as you go to the right it gets more and more expensive. Now, most business owners like, the most ideal thing would be able to provide the most amount of value for somebody and get the most amount of money, right? Like for example, we have a coaching program, we charge a million dollars to create someone's funnel for them.
And that's amazing right? Like in a perfect world, I could go to every single person and be like, "It's a million dollars but I'll create a funnel for you and it's going to be awesome. " The problem is, if I walked up and saw you on the street for the first time, and like "Hey, my name is Russell Brunson, I know I look like I'm 11 years old.
But if you give me a million dollars, I will build a funnel for you. " You're going to think I'm insane, right? Because I provided zero value to you at this point.
Yet that's what a lot of as business owners are doing, we're coming, we're pitching our most expensive high thing, and shooting for the fences, but people have not received value from us, so they don't want that. So if you look at how businesses work, it moved to this thing called a Value Ladder, where initially when someone first comes in to your world, they're kinda testing the water and feeling things out. So what you want to do is provide value for them right there, for free.
And if they get value, the tip of their toe in the water, and they're like, "Wow, that was really really cool, I had a good experience with so-and-so" and they received value, us as humans, we naturally will want more. And we start sending up. Well, that was a really good experience, what else do you have?
And we'll move up the Value Ladder, where you have a chance to offer them more value, but they'll give you more money. And then if they receive value at that level, they'll naturally want more and they'll keep moving through this ascension until you stop selling them something or till you offend them. And that's how business works.
And so, for you that's understanding this process of the Value Ladder. And you know, listen, in the real world, right, if someone came to you the first day and said "Hey, what do you do for a living? " You would tell them, and you'd try to explain some stuff and try to give them something that's like "Aw, cool, that's awesome.
" And you build some rapport, and they're would be some value there, and then the next thing you can do is offer them something else, okay? It's the same thing like, if and when you met your spouse, the first time you met them, you know the first thing, you ask them on a date. And you provide value, if they have a good time on the date, then you go on a second date, and it keeps going on until you get married.
There's this logical progression. Yet, for some reason, online, we all forget that, all these common sense rules fall out of the world. "Oh, they're pixels and they're things and it's traffic" And, no, it's people.
You have to understand that. So what happens is, every single funnel is a Value Ladder. When someone comes to my very first page, I'm saying "Hey my name is Russell Brunson, "I want you to give me your email address.
" If I stopped there, you receive no value. Like "Why would I give you my email address? " Kay, you come to the page and I'm like "Hey my name's Russell, and I wrote a really cool report called blah blah blah blah blah, whatever it is.
" And say I'll give you this report for free, just give me your email address and I'll send it to you. And you're like "Oh, okay. " You give me your email address.
I send you this report, you get the report, you get some value, like "That was really really good, "Russell's a cool dude. " Then on the next page in the funnel, then it's like, "Hey I just sent you a report "Go check it out. I think you're really going to love it.
" But while you're here, I want to make a really special offer to you, and then I try to provide value again. Normally, I sell this thing for blah, but I'm going to give you a special discount cause you're here right now. Or, whatever that thing might be, because you're a first time subscriber, normally, the first thing I want to sell you is this thing.
A lot of times, in my business, I sell books for really really cheap or we do, if you're an off-line business, maybe it's a free exam, or whatever it is. But it's something you're providing value Okay, if someone gets that, they buy the next thing, and the next page is like "Hey, you just bought my book "for $7. 95", on the next page, it's like hey, your book's coming, you're going to love it.
But some people like to learn in the classroom situation, I have a home study course that's This, or whatever that thing might be. Same thing works with e-commerce. Cause people always tell me "Well that works in Information, but not in e-commerce.
" But the same thing works in e-commerce. One of our number one quick funnel sellers right now, he built a huge funnel, it was one of the most successful funnels I've ever seen. And it started with a flashlight.
"Hey, this is a tactical flashlight, "would you like to buy it? " And people bought the flashlight, and started thinking "How else can I provide value to this person? " And started bringing through a value ladder, he said "Look, you bought a flashlight for this price, "how would you like a second one for 50% off?
" And boom, like half the people said yes. Things like, "Hey now you have this flashlight, you want a kit, like a carrying case you can put it in? " "Oh yeah, sure, yes.
" And boom, took the next thing. And he kept thinking how else do I provide value. "Hey, do you want rush shipping?
" Yes. "Hey, do you want this? " Yes.
And so the value ladder is always thinking about that. So every time I'm working on a funnel, I'm thinking about this is like, they see an ad, they see something, they click on something, they come to my page. The first page of my funnel, and I'm thinking "How do I provide this person value?
" What do I want in return? I want their email address, maybe want their credit card, maybe want them to register for a webinar, whatever the action is on that page. I'm thinking how do I provide value to this person?
And if I do it in a cool way, and they connect and they have a good experience, guess what? They're going to want to buy again. And again.
And that's how you build a business the right way. Okay? And so as we do more and more of these trainings, we'll go more into value ladder, because value ladder is happening in a bunch of different places.
It happens inside of your funnel. Every page in your funnel is the next step of a mini value ladder, okay? Also, and I'm going to talk about this in the next major training, after you go through your first funnel, then usually you have a second funnel, and usually that's a bigger piece of the value.
So it's kinda like a micro and the macro. But for right now, it's my thinking about that, it's like every single interaction I have with someone, I need to provide them value. And then if they like that, they will naturally ascend up and they'll want more value.
And I can charge them more and if they like that I can provide the more and we can keep taking them through this process. Okay? That's how I can go right now and get people to pay me a million dollars to build a funnel for them.
Because I provided value to all these levels. I provided value through my books, through my software, through my training, through my events. Now when it comes to there, it's like, "Yes, I trust Russell.
I have rapport with him, he's awesome. I believe that he will do what he's going to do. " And now they're willing to invest the big money.
And your business is the same thing, so you've got to start thinking through that. And so I want you guys to just understand that concept of the value ladder. The other thing is if you don't have a copy of this book yet, I highly recommend, we'll have a link down below to go get it.
Again, this will teach you all about funnel structures, it will teach you about value ladders and a whole bunch of other things. This will help you understand the strategy of funnels in a much deeper way. So, get the book if you don't have it yet as well.
Thanks so much, and we'll see you on the next training.
