Understanding the Life Time Value of a customer is very important and far too often overlooked, Russell Brunson’s book Dot Com Secrets covers this in-depth, but I will do my best to explain here and in this video.
Before we move on to the Life Time Value ladder, it’s important to understand that is takes a really good funnel to achieve this, and that’s why I recommend using Clickfunnels for your LTV Ladder, or least to get your customers in the front end.
Building a really good irresistible offer on the front end of your funnel and getting that email optin is the first part, but you should continually offer value and place new offers in front of your customers, each step of your funnel is to entice your customer to take the next step in the funnel, slowly but surely increasing the profit you can make along the way, Clickfunnels does this extremely well, and if you have ever bought a product through Clickfunnels would have experienced this first hand.
However is important to remember the value of a customer even if they don’t optin to your most expensive product or service, so long as you have captured an email or made such impression on your customer, they should be loyal and come back again and again.
As you will see in the video, you may have 100 people optin at the front end of your offer, and only a small percentage may end up buy your high end expensive offer, but you can break this into the Life Time Value overall.
Too many businesses make the mistake of not wanting to give away free products or services because they believe it’s not worth the return, but this couldn’t be more wrong, if you build trust and relationship with your customer right from the very start then even if you only make a very small profit and in some cases none on front end, you can guarantee that they will come back for more, and that’s when you can upsell and offer them your high end products or services, again this is called the Life Time Value, and it’s all about how you set up your funnel.