Building Your Company Value Ladder

Are you looking to build a converting sales funnel? Or are you trying to jot down what value you provide to your customers with every product or service purchase they make?


Value Ladder is where you need to start. As simple as it sounds, I recommend that you pull out a piece of paper and draw a very simple diagram with only two variables as below:

  • VALUE on the vertical axis
  • PRICE on the horizontal axis (or the other way round if you prefer)

The Value Ladder shows exactly how the products or services you offer, and price associated with their purchase increase, as you provide more value to your customers. One step at the time.

Before implementing any converting sales funnel it is essential to draw your company value ladder as it closely ties in to your sales funnel.

Insert the VALUE on the vertical axis and PRICE on the horizontal axis. The dollar sign “$” in the top right corner is exactly where you eventually want to bring your customer. This is where you provide them with the highest possible value but at the same time charge them premium for the product or service.

In regards to gyms for example, the highest value product could be personal training services (together with diet planning and annual membership). In my specific case, for example, it is consulting and building converting sales funnels for companies where I can provide them with the highest possible value. Because of it, I can charge them the highest amount of money as well. They get the most value, I get the highest remuneration. Win-Win.

In an ideal world, what all of us would like to do, is to take every single customer all the way to the dollar sign “$” straight away but the truth is that most of your customers won’t go there, at least not at the very beginning. Why is that?

It is simply because don’t know you and you haven’t provided them with any or much value just yet. So far you provided them with a free eBook or showed them a free education video and this is how you got their email address and got them onto your website. This is a great start but certainly not the time to take them straight to the dollar sign “$” at the top right. It won’t work. This must be a gradual process that may take time depending on your business, strategy and actual value your customers get as they ascend your value ladder.


So let’s get back to the gym example and assume you are a gym owner. Let’s assume that your lead magnet was a free eBook on “10 Most Powerful Workout Routines”. This eBook qualified your leads as clearly someone who downloaded this eBook and gave you their email address in return is interested in working out and could be your potential gym member. The key here is to make sure that this eBook is well written and provides a lot of great info. You gave it away for absolutely FREE and as long as your customers perceive this eBook as a great resource they will be more inclined to open their wallets and pay for other services you provide.

As a gym owner, with the free eBook you could throw in 1 free training session and the next step on the value ladder would be a 1-month membership. To incentivize them you could throw in free consultation with a personal trainer as well to discuss their goals. No additional sell here.

If they are happy with your facilities and free consultation they received, if this brought them enough value, they will keep ascending your value ladder further all the way to the annual membership; additional classes and diet planning and eventually personal training where they don’t only pay you annual membership fee but also pay you for personal training services you can charge very high margins for. This is exactly where you want each and every one of your gym members end up.

Of course 70-80% of your customers may not be able to pay for or may not be interested in personal training services but some definitely will. Not all of them will get to the top but many will while others will ascend 2-3 steps just because you gave them a FREE eBook!

The key to a successful value ladder that helps your customers go up 1 step at the time is to make sure that at every step you provide them with great value. This will automatically make them keep opening their wallets. Now incentivize your customers and ask to bring their friends for a free workout and right away you will get additional gym members without paying a penny to acquire them.


Now you are probably thinking how the Value Ladder applies to your business. If you are selling any type of services or products, there definitely is a Value Ladder even if you cannot see it just yet. If you sell just 1 product or provide 1 service, you need to think how you can add more products or services to provide additional value and maximize your revenue from each customer.

If someone is willing to pay you $100 for consulting work, there is probably a service you can provide so that they pay you $1,000 or even $10,000. It all depends again on how much VALUE you can provide them with.

Let’s say you are in internet marketing niche, you are just starting and you have great SEO skills. You decided to help individuals and SMEs with their SEO at a small fee of $37 for optimizing their website (one-off service).

If your business is new and you don’t have many contacts, it may be difficult for you to acquire new customers. You need to provide them great value first. Write an eBook about “20 Best Performing SEO Strategies on WordPress” with case studied of your own work and offer it absolutely FREE in exchange for an email address.

You can then start establishing your relationship and pitching your next offer – optimizing their website for $37 one-time fee. This doesn’t sound like much but hold on. If they are happy with your service and noticed improvements in their website performance you can then start offering them continuous SEO services at a monthly fee of $97 per month. It completely removes your customer’s headache and it is still a reasonable fee to charge. As you improve your relationship with your customer you can start educating them about additional services you offer or it is very likely they will ask for additional help themselves.

For instance, you can offer a complete website revamp and ongoing SEO, Social Media and Email Marketing services at $997 per month (a fee that is much lower than hiring a Marketing Manager) or $10,000 paid upfront annually. A lot of these processes can be put on auto-pilot with very little time spent on your behalf. You can also hire freelancers who will take care of these for you so that you can focus on expanding your customer base and growing your business.

There are many different approaches to designing value ladders and yours may be very different, depending on your niche and strategy. However, in order to build a converting sales funnel, I do recommend that you create your own value ladder, connect the dots and watch your leads convert to the highest paying customers, just because you gave them something for FREE!



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