Hey coaches, in this post we’re going to be going over a concept called the value ladder and how you can correctly implement it in your coaching businesses.

1. What exactly is a value ladder?

A value ladder is a clear and concise structure for your business designed to make you the most money possible while serving your clients at the highest level possible.

2. Frontend

It is important to understand that businesses are divided into a Frontend and a Backend. The Frontend primarily focuses on acquiring customers and breaking even on advertising costs. It is essential to have an attractive bait offer to attract your ideal customers. Here I recommend you start offering a free private lesson as your Frontend offer. Now you may be hesitant and confused and that’s ok, but I promise you you will start getting more clients. First, it is psychologically proven that people LOVE the word free, which means lower acquisition cost. Second, it gives you the opportunity to provide value to your client first, and in return they will feel obligated to give value back, the start of a beautiful relationship. So start offering free lessons today.

3. Continuity

Having a continuity program is an absolute necessity today, I wouldn’t start a business without it. Being able to depend on predictable recurring revenue coming in every month is crucial to growing and scaling any business. Being in the tennis industry we have the luxury of our primary services we offer being continuity programs(group/private lessons). Here is where you ascend customers from the free offer to, and continue to grow the customer relationship.

4. Backend($$$)

Backend is where businesses typically make the bulk of their profits. This includes continuity and other high ticket offers you may have in your business. These offers are for your most loyal customers. It can be an item or service you sell at a high price, such as a course or training program. But keep in mind when charging a higher price, you need to insure the value you’re providing goes above and beyond the price you are asking. Create something valuable for your most loyal customers and charge more for it.

5. Customer Lifetime Value (LTV)

LTV is what ties all this together to make it work. Lifetime Value is the total amount a customer will spend with your company. It’s crucial you figure out the customer LTV in your business as it will influence decisions on the Frontend. Let’s say your business has an average LTV of $1000. That means every customer is going to spend about a $1000 with your company. And it costs you $50 to sign a customer up for a free lesson. It may appear that you are losing money on the Frontend, but if you know your LTV, you’ll know that you’ll be making way more money in the long run. And that’s what really brings all of this together, is knowing the numbers in your business.

I want to thank you for reading if you made it this far:)

Please like this post for other coaches to see and to let me know to make another post like this. ❤️

Ask any questions in the comments below and I’ll do my best to answer them! 🙂