As a financial advisor, you may find yourself investing thousands of dollars on front-end seminars, hoping to attract potential clients, set appointments, and close business deals. Unfortunately, this strategy is high-stakes, similar to gambling, and can put you in a precarious financial situation, especially if you fail to attract clients. The solution to this problem is to introduce a concept called the “value ladder.”
The “value ladder” is a marketing strategy that allows you to scale your business and generate leads without risking all of your profit and revenue on high-ticket, high-commitment, backend product sales and services. In simple terms, the value ladder entails offering smaller, less expensive services to attract leads and gradually build trust with clients.
To illustrate this concept, consider the example of McDonald’s. The company figured out that it could spend $1.91 in advertising to sell a $2.29 hamburger, resulting in an 18 cent profit. However, instead of relying solely on selling hamburgers to make a profit, McDonald’s introduced smaller, less expensive products such as fries and a Coke. Although the profit from each of these items was significantly lower than the profit from the hamburger, the cumulative profit from the fries and Coke was eight times that of the hamburger.
To apply this strategy to your financial advisory business, you need to introduce smaller offers that you can charge for, such as an introductory consultation or a subscription service. By breaking even or making a small profit on these smaller offers, you can recapture your marketing budget and scale your leads infinitely, knowing that you are likely to break even or make a small profit.
In conclusion, the value ladder is a revolutionary concept that can help financial advisors scale their business and generate leads without relying solely on high-ticket, high-commitment, backend product sales and services. By offering smaller, less expensive services to attract leads and gradually building trust with clients, you can recapture your marketing budget and scale your leads infinitely.