You should always be focused on growth when it comes to your business. One way to grow your business is through vertical growth. Vertical integration growth is growth by creating offers at new levels for your customer. By having vertical growth integrated into your business it will allow you to take your customer through a deeper relationship.
Think of this when you go to the gym and you just do the regular fitness workouts. When the sales representatives at the gym may offer you DVDs as another level to take your workout to the next level. Soon after they could offer you group classes and this would be a bit higher price of purchase. After that, the trainer may offer you private training lessons, and the process continues.
This level of an increase could technically go for a longer period of time. You can think of this as a hierarchy level where people first connect with you for free… This could be on your blog, YouTube, podcast, Facebook, or Twitter.
After people connect with you, then you find out who your fans are. These fans are now taken to a small purchase. Sometimes people are just dabbling into a category, just getting started, or do not trust you.
Your best way to win them over is to give them massive amounts of value for what they pay. In terms of a digital product business, this could be a book when they just pay shipping. This is a great way to connect with them further and allows them to purchase something. It could be an amazing offer for your 3-hour course for just $5 bucks. (Again another steal).
When you connect with buyers and give them such massive value it allows you to see who are the people that buy. Who wants your product or service?
Of course, you can continue this process further. With each level, you can take people to the next price of purchase or a higher level. The prices in this example are all relative to a digital internet product business, but you can change the prices and apply it to your business based on your product prices.
In essence, your goal is to transition someone from each level to the next level. Not everyone will go to the next level, but just continue taking people further.
I always like to say if there are people that are buying your highest price product or service then you can always offer a higher priced solution!
Here is a diagram of different levels:
Here is a diagram in a triangle form:
The number of visitors to your website that you need to get to a higher level
If I think in theory that very few people are going to get my high priced or premium items then that means even fewer people will connect with me deeper in my coaching program. Think of this as how many true or actual friends you have versus the friends you have on Facebook or Twitter… The deeper the relationship the less of those things you have (think husband and wife right?)
I assume that you understand that you need to build your customer up to a higher priced purchase. You can’t just propose to them and ask them if they want a $5,000 seminar with you… it just doesn’t work that way…
Why would they want it if they don’t even know who you are?
However, if they’ve been reading your blogs and ordered your products before multiple times they may be a candidate for a seminar or a higher level.
The only problem with this is that at each level you will have less and fewer people. This is just because fewer people will be experts in a field or their focus is on something else. Maybe you are selling dancing videos, but some people just dabble in dancing whereas others want the intensive course. In the end, you will have fewer people interested in the intensive course.
So as far as numbers as concerned you need to be constantly increasing your traffic and bringing new visitors to your website. These visitors will them move to small time purchasers, then low tier product purchases and so forth. However, it all starts from the bottom and then you work your way up. Here is just a rough concept diagram of what I am talking about….
Constantly keep taking your customer to that next higher-priced purchase level. If someone is buying your highest dollar product – then you should have another higher price or another level.
Remember that if you want to do high-end consulting or offer a high-end product to your customers it may be wise to have lower priced products and services because it takes time for people to build that relationship. Otherwise, you may need to add value to them for free or at a discount until they are ready to purchase your pedigree product (which could take some time). So instead, have products at multiple price levels your line up.
However remember that the added value must match or exceed the price point :)
Resources & Helpful Tools
[thirstylink linkid=”5545″ linktext=”” class=”afflink” title=”Business Launch Pad Book”]
[thirstylink linkid=”6003″ linktext=”” class=”afflink” title=”Build Your Business Brick by Brick”]