Congratulations! Every week, you are receiving more email subscribers.

Now… What are you going to do with them?

Russel Brunson’s New York Times bestseller Traffic Secrets explains how an average entrepreneur can expect to make approximately one dollar per month from each email in their list. (Imagine having 10,000 subscribers). Many entrepreneurs have thousands or hundreds of subscribers to their email lists and don’t know what to do with them. They’re missing huge passive income every month.

If you are able to establish a relationship with your email lists and begin implementing passive income streams, then you can make serious money within a few months. It is easy to master the three stages of using your email list successfully: the nurture sequence, the value ladder and the high-ticket sale.

Phase 1: The Nurture Sequence

A nurture sequence simply refers to the first few emails you send to new subscribers after they sign up. This is the first impression. It is the most crucial part of your relationship with them. This will lead to massive passive income if you do it right.

This is an important time in your relationship with new subscribers. They want to get to know you, your values, and what they share in common. Research shows that the first week of an email list is the most important time period to sell. These are people who have said yes to learning more about you.

Many email lists are subscribed to by me. I don’t usually subscribe to these lists for personal reasons. Instead, I am just interested in learning about the activities of other entrepreneurs in my industry.

I have subscribed to many email lists and can confirm that most entrepreneurs don’t know how to make a connection with their audience.

Most often, I receive email from entrepreneurs who send me dry newsletters, business updates and occasional sales letters. None of these messages are of any real benefit to me. I don’t want to know more about their products, or buy their products.

Sometimes, however, I find a winner. I find someone who has a great nurture program and instantly feel a connection with them. I am interested in their products and message. These are the entrepreneurs who make a huge passive income every month.

Many entrepreneurs don’t care about building a relationship with their audience. Instead, they either jump right into sales or simply throw you in their weekly emails. There are a few successful entrepreneurs out there who can do it right and make a lot of money.

A nurturing sequence that works has four essential ingredients: a compelling story and a main character who is authentic, a personal epiphany and an urgent call to action. According to the marketing cliché, facts tell. Stories sell. No matter your industry, you must learn how to create great stories that connect with your readers.

In the last few years, I have gained almost 100,000 subscribers to my email list. They all see the same nurture sequence. It is a personal story about me and my addiction. I also share what I have learned and the self-improvement program I offer. Because I was able to build a genuine connection with new subscribers, I have seen an increase in sales conversions over the years.

It is important to establish a genuine connection with your audience using the tried-and true strategy of the hero’s journey. People are often afraid to admit their mistakes, failures, and flaws. These are the things that make people connect with you most.

Every hero has flaws. But that’s what makes them heroes. Create a nurturing sequence that reflects who you are and what you have learned. This will inspire your subscribers to ask for more.

Phase 2: The Value Ladder

You must sell something if you want to make money .

However, if you are looking to make a lot of money, you will need to use the value ladder.

The value ladder is a listing of the products and services you offer in your business. Your products/services will be more expensive and valuable if a customer climbs up your ladder.

Many entrepreneurs and creators attempt to sell random products and services without any apparent connection. This was me. I sold many products over the years about writing, personal development, entrepreneurship and podcasting. My readers didn’t have any understanding or connection to my products, so it never worked. My products didn’t work together, and didn’t make any sense.

Once I aligned all my products, things started to work. Everything became much easier to automate, and I was able to make more passive income. Your products and services should be aligned so that you can make consistent sales and huge passive income.

Your smallest and cheapest product is the first step on the ladder. As a first step on a value ladder, I have seen journals, videos trainings, consulting calls and blog templates. A short course online on behavioral change is available for $37. Information products are what I love the most (online courses and recorded trainings, books, classes, etc.). Because they are 100 percent passive and infinitely scaleable (one million people could purchase it with no extra work).

Your second step on your value ladder should be more focused and in-depth than your first product. Each step should be an improved, bigger version of the previous. You can’t have more of the same; people don’t want to spend money on the same products. They want new products that solve new problems.

It is interesting to note that each step on your value ladder presents new problems for your customers, which you can solve.

You can sell audio versions to people who buy your book if they don’t have the time.

You might need extra tutoring or help from someone who buys your online course.

You might find that someone who buys your coaching call doesn’t know what they should do next. If this is the case, then sell them a group coaching package.

Does this make sense? You’ll make more money solving more problems. Your products solve the problems you create. You must ensure that your products solve the right problem and that they are all connected in a value ladder.

Each step should increase your value and price by five to ten percent. Your first product should cost $20. Then, your second product should cost between $100 and $200. This is how you can start making passive income by automating a sales process that makes sense to you and your readers.

Value ladders can go up to $25,000 for one product/service, which I have seen (more details in a moment). It’s easy to automate through your email list, which is the best part. Next, you need to create a nurturing sequence. Each subscriber must be able to see the first product in the value ladder at each step of the nurture sequence. It’s then easy to get more subscribers.

One to three percent conversion rate is a good rule of thumb. This means that for every 100 subscribers, one or three will purchase the first product on your value-adjusted ladder. Then, approximately five to ten per cent of these buyers will purchase the second product on your value ladder.

Your value ladder will determine whether your business survives or fails.

Phase Three: The high-ticket sell

Once you’ve created your value ladder, let me tell you a little industry secret.

Beginners and amateurs focus on the first step of the value ladder: the simpler, cheaper products.

True professionals, however, focus on the last steps of the value ladder: high-ticket items.

When you have a solid value chain with high-ticket items (in the $25,000 to $25,000 range), most of your income will come from these high-ticket products. A single high-ticket sale is worth more than 50 or 100 low-ticket ones and requires less mental energy.

Selling high-ticket items via email is a challenge. Most readers will require more detailed training and sales pitches in order to purchase something at this price. To sell this large item, I recommend webinars, video trainings or in-person speaking events.

To reach this level, you will need to have a strong nurture sequence and the first steps in a value ladder. Every part of your messaging and products must be priming your subscribers to spend money with you. Building trust must begin from the beginning. Everything must align from day one.

You must start selling high-ticket products if you want to scale up and earn a lot of passive income. You don’t need one to start making money. You can make a lot of money quickly if you have a high-ticket item.

In conclusion

Automating your business via your email list is the best way to go. Each email sent from your list should earn you at least $1 per month.

Automating your processes every month is another way to squander huge potential income.

Create a nurturing program. Tell your story and reveal your faults. Your readers should know that you are a real person and can understand their feelings.

Next, tie in a natural and logical first product to complete your story: Your epiphanies, lessons, knowledge, or tools.

Next, turn that first product into an integrated value ladder that continues to offer your readers better and more comprehensive solutions in naturally ascending stages. You’ll eventually have the knowledge and expertise necessary to create a high-ticket item that will bring you huge passive income every month.