$100M Offers

There are no rules.

“Make people an offer so good they would feel stupid saying no.”

What does it take to grow? Thankfully, just three simple things: Get more customers Increase their average purchase value Get them to buy more times

We are not trying to create demand. We are trying to channel it. That is a very important distinction.

They must not want, but desperately need, what I am offering. Pain can be anything that frustrates people about their lives.

The degree of the pain will be proportional to the price you will be able to charge

If you can articulate the pain a prospect is feeling accurately, they will almost always buy what you are offering.

Make sure your targets have the money, or access to the amount of money, needed to buy your services at the prices you require to make it worth your time.

I make my life easier by looking for easy-to-target markets.

Growing markets are like a tailwind. They make everything move forward faster. Declining markets are like headwinds. They make all efforts harder.

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.

Commit to the Niche I have a saying when coaching entrepreneurs on picking their target market “Don’t make me niche slap you.”

Unless you have a revolutionary way of decreasing your costs to 1/10th compared to your competition, don’t compete on price.

When you decrease your price, you … … Decrease your clients’ emotional investment since it didn’t cost them much … Decrease your clients’ perceived value of your service since it can’t be that good if it’s so cheap, or priced the same as everyone else … Decrease your clients results because they do not value your service and are not invested … Attract the worst clients who are never satisfied until your service is free … Destroy any margin you have left

When you raise your prices, you … … Increase your clients’ emotional investment … Increase your clients’ perceived value of your service … Increase your clients’ results because they value your service and are invested … Attract the best clients who are the easiest to satisfy and actually cost less to fulfill, and who are the most likely to actually receive and perceive the most relative value … Multiply your margin because you have money to invest

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.”

Charge a premium. It will allow you to do things no one else can to make your clients successful.

There are four primary drivers of value. Two of the drivers (on top), you will seek to increase. The other two (on the bottom), you will seek to decrease. (Yay) The Dream Outcome (Goal: Increase) (Yay) Perceived Likelihood of Achievement (Goal: Increase) (Boo) Perceived Time Delay Between Start and Achievement (Goal: Decrease) (Boo) Perceived Effort & Sacrifice (Goal: Decrease)

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.

As a business owner and entrepreneur I increasingly approach problems to find psychological solutions, rather than logical ones. Because if there were a logical solution, it probably would have already been solved, thereby eliminating the problem. All that’s left are the psychological problems.

Pro Tip: Frame benefits in terms of status gained from the viewpoint of others When writing copy, you can make it that much more powerful by talking about how other people will perceive the prospect’s achievement. Connect the dots for them.

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

Pro Tip: Fast Wins Always try and incorporate short-term, immediate wins for a client. Be creative. They just need to know they are on the right path and that they made the right decision trusting you and your business.

Pro Tip: Fast Beats Free The only thing that beats “free” is “fast.” People will pay for speed. Many companies have entered free spaces and done exceedingly well with a “speed first” strategy.

When you are thinking about your dream outcome, it has to be them arriving at their destination and what they would like to experience.

Just list out each core thing that someone has to do. Then think of all the reasons they wouldn’t be able to do it, or keep doing it (using the four value drivers as a guide).

Creating the solutions list has two steps. First, we are going to first transform our problems into solutions. Second, we are going to name these solutions.

I have always lived by the mantra, “Create flow. Monetize flow. Then add friction.” This means I generate demand first. Then, with my offer, I get them to say yes. Once I have people saying yes, then, and only then, will I add friction in my marketing, or decide to offer less for the same price.

For the purposes of keeping creativity high (divergent thinking), think about anything you could possibly do. Think of all the things that might enhance the value of your offer. So much so that they would be stupid to say no.

Here are my “cheat codes” for product variation/enhancement and a visual to break down the process for you from my consulting deck:

I look at the cost of providing these solutions to me (the business). I remove the ones that are high cost and low value first. Then I remove low cost, low value items.

The Final High Value Deliverable Let’s sum this up before we configure our final high value deliverable. Step #1: We figured out our prospective client’s dream outcome. Step #2: We listed out all the obstacles they’re likely to encounter on their way (our opportunities for value). Step #3: We listed all those obstacles as solutions. Step #4: We figured out all the different ways we could deliver those solutions. Step #5a: We trimmed those ways down to only the things that were the highest value and lowest cost to us. All we have to do now is… Step #5b: Put all the bundles together into the ultimate high value deliverable.

The bundle does three core things: Solves all the perceived problems (not just some) Gives you the conviction that what you’re selling is one of a kind (very important) Makes it impossible to compare or confuse your business or offering with the one down the street

The process of enhancing your core offer is designed to do both of these things: increase demand and decrease perceived supply so that you can sell the same products for more money than you otherwise could, and in higher volumes than you otherwise would (over a longer time horizon).

Demand for services is non-linear. Instead, I’ve found demand to be fractal (80/20). In other words, one fifth of the prospects are willing to pay five times the price (or more).

Hormozi Law: The longer you delay the ask, the bigger the ask you can make. “The longer the runway, the bigger the plane that can take off.”

The person who needs the exchange less always has the upper hand. I always try to remember that. It’s one of the negotiating and pricing principles that has best served me in my life.

Humans are far more motivated to take action to hoard a scarce resource than they are to act on something that could help them. Fear of loss is stronger than desire for gain

Total Business Cap - Only accepting….X Clients.

Growth Rate Cap - Only accepting X clients per week (on-going)

Cohort Cap - Only accepting….X clients per class or cohort

Cohort-Based Rolling Urgency For example, if you start clients every week (even in unlimited amounts), you can say: “If you sign up today, I can get you in with our next group that kicks off on Monday, otherwise you’ll have to wait until our next kickoff date.”

Rolling Seasonal Urgency In a digital setting, having actual sign up date countdowns is very useful. But make sure they are real. If they aren’t, you’ll lose credibility and just look like every other wannabe marketer

Example: Our New Year Promotion ends Jan 30! Next Month: Our Valentines Lovers Promo Ends Feb 30! Next Month: Our Sexy By Spring Special Ends March 31! Next Month: Our Fools in Love April Promo Ends April 30! The actual promotion may be the same, but naming it something different “by season” gives you a “real” differentiator that gives you a start and a finish.

Pricing or Bonus-Based Urgency This is another way of creating urgency using your actual offer or promotion/pricing structure as the thing they could miss out on (kind of brilliant!). It allows businesses that sell clients year round to still use urgency.

Exploding Opportunity On occasion you will be exposing the prospect to an arbitrage opportunity. The opportunity itself has a ticking time clock, as all great opportunities do. Every second someone delays, they miss out on disproportionate gains.

A single offer is less valuable than the same offer broken into its component parts and stacked as bonuses

Whenever trying to close a deal, never discount the main offer. It teaches your customers that your prices are negotiable (which is terrible). Adding bonuses to increase value to close the deal is far superior to cutting prices. It puts you in a position of strength and goodwill rather than weakness.

When selling one on one, you ask for the sale first, before offering the bonuses. If they say yes, then after they have signed up, you let them know the additional bonuses they’re going to get. This creates a wow experience and reinforces their decision to buy. On the other hand, if the person does not buy after the first ask, then you present a bonus that matches their perceived obstacle, then ask again.

There are a few key things to remember when offering bonuses: 1. Always offer them (you can use the bulleted bundle we came up with at the end of Section III) 2. Give them a special name that has a benefit in the title 3. Tell them: a) How it relates to their issue b) What it is c) How you discovered it, or what you had to do to create it d) How it will specifically improve their lives or make their experience i) Faster, easier or less effort/sacrifice (value equation) 4. Provide some proof (this can be a stat, a past client, or personal experience) to prove that this thing is valuable 5. Paint a vivid mental image of what their life will be like assuming they have already used it and are experiencing the benefits 6. Always ascribe a price tag to them and justify it 7. Tools & checklists are better than additional trainings (as the effort & time are lower with the former, so the value is higher. The value equation still reigns supreme). 8. They should each address a specific concern/obstacle in the prospects mind about why they can’t or won’t be successful (bonus should prove their belief incorrect) 9. This can also be what they would logically realize they will need next. You want to solve their next problem before they even encounter it. 10. The value of the bonuses should eclipse the value of the core offer. Psychologically as you continue to add offers, it continues to expand the price to value discrepancy. It also, subconsciously communicates that the core offer must be valuable because if these are the bonuses, the main thing has to be more valuable than the bonuses right? (No, but you can use this psychological bias to make your offer seem wildly compelling). 11. You can further enhance the value of your bonuses by adding scarcity and urgency to the bonus themselves (which takes this technique and puts it on steroids). a) Bonuses With Scarcity Version 1: Only people who sign up for XZY program will have access to my Bonus #1, 2, 3 that are never for sale or available anywhere else other than through this program. Version 2: I have 3 tickets left to my $5,000 virtual event. If you buy this program you can get one of the last 3 tickets as a bonus. b) Bonuses With Urgency Version 1: If you buy today, I will add in XYZ bonus that normally costs $1,000, for free. And I’ll do that because I want to reward action takers. c) With hope, you can see the subtle differences. The first two examples aren’t constrained by time. They state that if you buy the program you will get things you normally would not be able to. The bonus with urgency is about them buying today, and if they do not buy today, they lose those bonuses. Minor difference, but worth noting.

We want to employ bonuses because they expand the price to value discrepancy and get people to purchase who otherwise wouldn’t.

What should be a bonus vs part of the core offer if I am the one fulfilling it? Short answer: Wow Factor - in other words - something you wouldn’t want someone to miss.

What makes a guarantee have power is a conditional statement: If you do not get X result in Y time period, we will Z.

Unconditional are the strongest guarantees. They’re basically a trial where they pay first then see if they like it. This gets a LOT more people to buy, but you will have some people refund,

Pro Tip: Name Your Guarantee Something Cool If you are going to give a guarantee, spice it up. Instead of using “satisfaction” or some other “vanilla” word, describe it more strongly. Generic Example (Bad): 30 Day Money Back Satisfaction Guarantee. Creative Imagery Example #1 (Good): In 30 days, if you wouldn’t jump into shark infested waters to get our product back, we will return every dollar you paid.

[Conditional] Service Guarantee What the Client Gets: You keep working for them free of charge until X is achieved.

Reversing risk is the number one way to increase the conversion of an offer. Experienced marketers spend as much time crafting their guarantees as the deliverables themselves. It’s that important.

Guarantees are enhancers. They can enhance the magnetism or attraction of any offer, but they cannot make a business. If a guarantee is used to cover up a poor sales team or a poor product, it will backfire into lots of refunds. No bueno.

We are not changing the actual offer. We are only changing the wrapping paper

Make a Magnetic “Reason Why” We start the name with a word or phrase that tells people the “reason why” we are running our promotion.

Examples: Free, 88% off, Giveaway; 88% off, Spring, Summer, Back To School; Grand Opening; New Management; New Building; Anniversary; Halloween; New Year.

Announce Your Avatar This component calls out your ideal avatar: who you are looking for and who you are not looking for as a client.

Give Them A Goal This is where you articulate your prospect’s dream outcome.

Indicate a Time Interval You’re just letting people know the duration to expect here. This gives an example of how long your results will take to achieve.

Complete With A Container Word The container word denotes that this offer is a bundle of lots of things put together. It’s a system. It’s something that can’t be held up to a commoditized alternative. Examples: Challenge, Blueprint, Bootcamp, Intensive, Incubator, Masterclass, Program, Detox, Experience, Summit, Accelerator, Fast Track, Shortcut, Sprint, Launch, Slingshot, Catapult, Explosion, System, Getaway, Meetup, Transformation, Mastermind, Launch, Game Plan, Deep Dive, Workshop, Comeback, Rebirth, Attack, Assault, Reset, Solution, Hack, Cheatcode, Liftoff, Etc.

You don’t need to do them in the M-A-G-I-C order. Do what sounds punchier to you.

What Happens When Offers Fatigue As you market offers, you will need to create variations over time as the tastes of the market change over time. Here’s the order in which you will change things to keep lead flow consistent. Change the creative (the images and pictures in your ads) Change the body copy in your ads Change the headline - the “wrapper” of your offer Free 6 Week Lean Challenge to Free 6 Week Tone Challenge Holiday Hangover to New Year New You Change the duration of your offer Change the enhancer of your offer (your free/discount component) Change the monetization structure, the series of offers you give prospects, and the price points associated with them (Book II)