$100M Offers
Outsized returns often come from betting against conventional wisdom, and conventional wisdom is usually right. Given a 10 percent chance of a 100 times payoff, you should take that bet every time. But you’re still going to be wrong nine times out of ten … We all know that if you swing for the fences, you’re going to strike out a lot, but you’re also going to hit some home runs. The difference between baseball and business, however, is that baseball has a truncated outcome distribution. When you swing, no matter how well you connect with the ball, the most runs you can get is four. In business, every once in a while, when you step up to the plate, you can score 1,000 runs. This long-tailed distribution of returns is why it’s important to be bold. Big winners pay for so many experiments.”
Do you want to know the secret to sales?”
No offer? No business. No life. (View Highlight)
Bad offer? Negative profit. No business. Miserable life.
When these models are used in the real world, business owners just barely “get by.” They essentially “buy themselves a job” and work 100 hours a week to avoid working 40. Crappy trade. My guess is that if you’re anything like me, you signed up for something better. (View Highlight)
So, then, what does it take to grow? Thankfully, just three simple things:
Tags: #wealth
Commoditized = Price Driven Purchases (race to the bottom)
With new technology, he brought the cost per mask below what people could buy them for from China. Within five months he was doing millions per month. Same entrepreneur. Different market. He applied his same skill set to a business he had zero experience in and was able to win. That’s the power of picking the right market. (View Highlight)
There is a market in desperate need of your abilities. You need to find it. And when you do, you will capitalize, all while wondering what took you so long. Don’t be romantic about your audience. Serve the people who can pay you what you’re worth. And remember that picking a market, like anything, is always our choice, so choose wisely. (View Highlight)
This entire book sits atop the assumption that you have at least a “normal” market, which I define as a market that is growing at the same rate as the marketplace and that has common unmet needs that fall into one of three categories: improved health, increased wealth, or improved relationships. (View Highlight)
They must not want, but desperately need, what I am offering. Pain can be anything that frustrates people about their lives. Being broke is painful. A bad marriage is painful. Waiting in line at the grocery stores is painful. Back pain … ugly smile pain … overweight pain … Humans suffer a lot. So for us entrepreneurs, endless opportunity abounds. (View Highlight)
The degree of the pain will be proportional to the price you will be able to charge (View Highlight)
Purchasing Power
Easy to Target
Growing
There are three main markets that will always exist: Health, Wealth, and Relationships. The reason that those will always exist is that there is always tremendous pain when you lack them. There is always demand for solutions to these core human pains. The goal is to find a smaller subgroup within one of those larger buckets that is growing, has the buying power, and is easy to target (the other three variables). (View Highlight)
I have coined the term “niche slap” to remind entrepreneurs in my communities to commit once they pick. All businesses and, all markets, have unpleasant characteristics. The grass is never greener once you get to the other side. If you keep hopping from niche to niche, hoping that the market will solve your problems, you deserve to be niche slapped. (View Highlight)
You must stick with whatever you pick long enough to have trial and error. You will fail. In fact, you will fail until you succeed. But you will fail far longer if you keep changing who you market to, because you must start over from the beginning each time. So, pick then commit. (View Highlight)
But simplicity and ease may not be enough to sway you, so let me illustrate why honing in on one niche will make you more money.
The purpose of this chapter is to reinforce two things. First, don’t pick a bad market. Normal markets are fine. Great markets are great. Second, once you pick, commit to it until you figure it out. (View Highlight)
If you try one hundred offers, I promise you will succeed. Most people never try anything. Others fail once, then give up. It takes resilience to succeed. Stop personalizing! It’s not about you! If your offer doesn’t work, it doesn’t mean you suck. It means your offer sucks. Big difference. You only suck if you stop trying. So, try again. You’ll never become world class if you stop after a failed attempt. (View Highlight)
In order to understand how to make a compelling offer, you must understand value. The reason people buy anything is to get a deal. They believe what they are getting (VALUE) is worth more than what they are giving in exchange for it (PRICE). The moment the value they receive dips below what they are paying, they stop buying from you. This price to value discrepancy is what you need to avoid at all costs. (View Highlight)
“Price is what you pay. Value is what you get.” (View Highlight)
Getting people to buy is NOT the objective of a business. Making money is. And lowering price is a one-way road to destruction for most — you can only go down to $0, but you can go infinitely high in the other direction. So, unless you have a revolutionary way of decreasing your costs to 1/10th compared to your competition, don’t compete on price. (View Highlight)
When you decrease your price, you …
When you raise your prices, you …
Tags: #wealth
In essence, raising your prices can directly enhance the value you provide. What’s more, the higher the price, the more allure your product or service has. People want to buy expensive things. They just need a reason. And the goal isn’t just to be slightly above the market price — the goal is to be so much higher that a consumer thinks to themselves, “This is so much more expensive, there must be something entirely different going on here.” (View Highlight)
“We question all of our beliefs, except for the ones we really believe in, and those we never think to question.” (View Highlight)
What will I make? (Dream Outcome)
In other words, if you can reduce your prospects’ true time delay to receiving value to zero (aka you realize your immediate dream outcome), and your effort and sacrifice is zero, you have an infinitely valuable product. If you accomplish this, you win the game. (View Highlight)
Perception is reality. It’s not about how much you increase your prospect’s likelihood of success, or decrease the time delay to achievement, or decrease their effort and sacrifice. That in itself is not valuable. Many times, they will have no idea. The Grand Slam Offer only becomes valuable once the prospect perceives the increase in likelihood of achievement, perceives the decrease in time delay, and perceives the decrease in effort and sacrifice. (View Highlight)
Tags: #wealth
The biggest increase in rider satisfaction (aka value) was never from faster trains to decrease wait times. Instead, it was from a simple dotted map that showed them when the next train was coming and how long they had to wait. The dotted map, which only cost a few million dollars, decreased the riders’ perception of time delay and sacrifice (being bored waiting) more than actually making the trains faster (which costs billions of dollars to do). Isn’t that cool? This is how we need to think about our products. (View Highlight)
As such, as business owners, it is up to us to communicate these value drivers with clarity to increase the prospect’s perception of these realities. The extent to which you answer these questions in the mind of your prospect will determine the value you are creating. Only then, will we truly be able to realize the actual value of our product to the marketplace, and by extension, the egregious prices we want to charge. (View Highlight)
below.
People generally, and our clients specifically, want:
Talk in terms of things your prospect believes will increase their status, and you will have your prospects drooling. (View Highlight)
#2 Perceived Likelihood of Achievement (Goal = Increase) (View Highlight)
Then I realized people pay for certainty. They value certainty. I call this “the perceived likelihood of achievement.” In other words, “How likely do I believe it is that I will achieve the result I am looking for if I make this purchase?” (View Highlight)
Tags: #wealth #business #customer
People value this perceived likelihood of achievement. Increasing a prospect’s conviction that your offer will “actually” work for them, will make your offer that much more valuable even though the work remains the same on your end. So to increase value with all offers, we must communicate perceived likelihood of achievement through our messaging, proof, what we choose to include or exclude in our offer, and our guarantees (more on these later). (View Highlight)
#3 Time Delay (Goal = Decrease)