Book Notes: $100M Offer

Intro:

  • The secret to sales: Make people an offer so good, they would feel stupid saying no.
  • “When your company isn’t growing, it’s dying.”
  • To grow:
    • Get more customers.
    • Increase their purchase value or have them purchase more.

Pricing

The Commodity Problem

  • ⭐ You need to create an offer so good that it can’t be compared to any other product in the market. 

Pick the Right Market

  • Find the right market. The right market is a “starving crowd.” 
  • ⭐ If you’re in a bad market, nothing will work. 
  • Market > Offer > Persuasion Skills
  • Indicators of great markets:
    • Massive Pain (“In sales the pain is the pitch”) 
    • Purchasing Power
    • Easy to Target
    • Growing
  • Commit to one market/niche. If you’re very big, at some point, you might have to expand your market, however, that will be at around $10 Million, $30 Million, or even more. If you’re at $2 Million revenue, you need to be better at what you’re doing, not expand your market.

Charge What It’s Worth

  • Charge properly for your services 

Value:

  • ⭐ Charge as much as people are willing to pay, not what’s “fair”. 
  • Master the value equation
    • The best companies in the world focus on getting the bottom parts close to 0.
  • People value their status. Framing offers about creating status can be a highly effective advertising method.
  • Create a good offer by:
    • Step #1: Figure out our prospective client’s dream outcome. 
    • Step #2: List out all the obstacles they’re likely to encounter on their way (our opportunities for value).
    • Step #3: List all those obstacles as solutions.
    • Step #4: Figure out all the different ways we could deliver those solutions.
    • Step #5a: Trim those ways down to only the things that are the highest value and lowest cost to us. 
    • Step #5b: Put all the bundles together into the ultimate high value deliverable.
  • ⭐ Create an offer that solves every problem of the buyer and that is impossible to compare to others due to the value it creates/what it includes.
  • ⭐ “You must resolve every obstacle a buyer believes they will have to convert the highest amount of people. E.g. for Blogtec that were the free white-label proposals.”

Enhance the Offer:

  • Strategy 1: Scarcity
    • Fear of loss is stronger than desire for gain.
    • Three types of scarcity:
      • Limited supply of seats/clients accepted.
      • Limited supply of bonuses.
      • Never available again.
    • Tip: Provide limited access for higher ticket services.
    • Always have less spots available than you think, so that people remember that you sold out quickly.
  • Strategy 2: Urgency
    • Cohort-Based Rolling Urgency
      • “If you sign up now, you can start with our next group on Monday. Otherwise you’ll have to wait another week.”
      • “If you sign up now, I can give you a personal onboarding.”
    • Rolling Seasonal Urgency
      • Summer sale for example
    • Pricing or Bonus-Based Urgency
      • “If you buy this week, I will give you a free SEO audit.”
    • Exploding Opportunity
      • Take it now or the offer will expire.
  • Strategy 3: Bonuses
    • Use bonuses instead of discounts whenever possible.
    • Can be tools, checklists or other resources that don’t take your time.
    • Always add a price tag to them. 
    • Should address a customer’s pain point.
    • You can use third-party provider services/products as bonuses.
  • Strategy 4: Guarantees
  • Strategy 5: Naming
    • Use the MAGIC formula to name your offer when advertising it.
      • M: Magnet Create a magnetic reason for the offer, such as a discount, free offer, or seasonality. 
      • A: Avatar Target specific customers. 
      • G: Goal Articulate a specific and tangible goal for the prospects. 
      • I: Interval Define the time frame for achieving results.
      • C: Container Word Complete the formula with a container word.

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