The product ladder framework. Despite this product ladder framework and the product segmentation framework do share certain similarity. But this is totally for a different objective. This product ladder framework is to enable businesses like you to have a better understanding and clarity on the product range serving different needs and budget of a customer. So the ladder begin with a strong lead magnet item at the bottom and gradually we increase the price and intensity as we move up the ladder. So every single business want to capture a customer contact and particularly the email resist resist, which is really important for us to keep continuously communicate with our customer.

So we need to capture customer email. But why would a customer or prospect give you the email in prior so normally in any marketing approach, we will Rama Li give away a custom lead magnet item on a magnet product in exchange for their email contacts. So what kind of thing that you can give away in insertion as a lead magnet? Normally, people will give away a simple two to three pages ebook, a video to teach a customer to do something, or a simple sample that you want to give away. So the objective here is to allow a customer to opt in to your email list. That's where you capture their email list.

But after capturing a customer email list, they may not immediately buy something from you because there is lack of trust. So the second layer is where can you create a Trust Bank? What kind of product can you give away in order to increase engagement and build trust in order to advance the sale so in this area, the product normally give away it could be a better detail ebooks or a regular newsletter that you update what You're what what do you do, and, or even a video testimonial or whatnot. So in terms of a lead magnet and trust me, you want to make these two type of products as cost free as possible meaning that if you can do this one time or digital product, you give it away for free, you'd be really ideal. So and also you another area you want to look into is to make this automated when up when whenever whenever there is a customer or in the email, the ebook will be automated forward to the customer whereby you as a business owner will not require to do much, this will be the very idea case.

So once a customer has enough trust with you, that's where you want to start selling the product or services to the customer. The third layer is where we look into the entry product. The entry product is a small ticket item for our customer to buy and build confidence. So you don't want to be Begin your expensive product to sell immediately. So you just want to sell some small ticket item, make it comfortable with you and join your service by experience and whatnot, make them feel comfortable with you. So, just begin with the entry level product, then only you move into the core product or the high product, the differences is the chi the high product basically is a much higher value product while the core product is your normal price product.

So, you do have some normal product and some premium type of product. So the objective here is to generate question cash flow and also increase your profit. And ultimately, you do have your ultimate product which is your goal that you want to sell and for example, that this is something that you can offer for your dream product to be sold. So this is how you go ahead and design your product ladder based on different level and pricing and also intensity. So, you must miss a Maxwell kind of your customer, what will be their budget How can you slowly gradually sell your customer from a lower pricing product to your most ultimate product, I just share with you my example what I do inside my small fish because we are a business coaching firm. So, as you can see from here from that example, on the lead magnet side, normally I will give away as I say just now a we do a template to page Ebro or turski infographic or something which is entirely free.

So in order when a customer comes into my email list and get in touch with me on Facebook or whatever platform that I have, then I will continue give my customer values. So by giving them regular education, update more ebooks, testimonial consultation, some time even though our webinar so I always give this kind of product away for free. Just to give enough trust until a customer will come in and buy my lunch my entry level products. So you can buy a small fish bowl or small fish game that help on your business. Or you can just sign up like this online course or Udemy costs, which is on the valley low value item. Then I do sell my core product for any coaching and consultation and finally, I want to sell my one to one coaching which is is which is my high product.

And finally, I'm looking forward into future whether people would they want to franchise to buy a small fish franchise and to start the coaching business or any joint venture opportunity. So very, very clearly I know that what kind of product, what type of customer that I'm targeting, and what type of product will be suitable to this particular customer. So I hope that you also design your product ladder and you have absolute clarity in the range of product that you are Selling and passive income. So in the next video, we're going to talk into the actual marketing how we're going to begin our marketing process. See you in the next video.