Sales, Goodwill, and Long-Term Thinking (The 4-Step Process)
Warren Buffett’s handshake is worth billions...
With over eight decades of high-integrity investing under his belt, he’s built one of the strongest reputations on the planet.
And to understand why (and why you should care), you need a solid understanding of goodwill.
You see, compound interest applies to more than just money...
When you become known for consistently providing value and keeping your promises, you gain access to deals and information that most people could only dream of.
But as Buffett said himself: “It takes 20 years to build a reputation and five minutes to ruin it”.
Which begs the question: how can you build a great reputation for your community, without making the common mistakes that’ll ruin your credibility?
Luckily, it’s actually pretty simple. Let me explain...
In the short term, you can make money by being dishonest.
You can pull the wool over peoples eyes, make a few sales, and stack your first bit of cash.
There’s just one problem: it won’t be long before your reputation is destroyed. The market will chew you up and spit you out, leaving you in a worse position than the one you started in.
The solution? Learn to sell your offer in a way that builds your reputation (instead of ruining it).
And to do this, there are 4 important principles you should keep in mind:
#1: Always, Always Overdeliver
If you’re serious about succeeding in business, breaking your promises is out of the question.
At minimum, your offer should reliably deliver the promised results. But realistically, you should work to become so good that you dramatically exceed your clients’ expectations.
The sooner you master this, the faster your reputation compounds, and the more opportunities will present themselves to you.
Which leads us nicely into this next point:
#2: Give Without Expectation Of Receiving
There’s a common misconception amongst beginner entrepreneurs:
People feel that their work is inherently valuable, like they deserve compensation for their time.
In the mind of an employee, this makes perfect sense — after all, if you’re being paid by the hour, then minutes worked equates to dollars earned...
But I’ll let you in on a secret: the market only cares about outcomes. In the beginning, we all lack the skills necessary to drive results, so it’s difficult to get paying clients.
The solution is simple (but not easy):
Become a permissionless apprentice.
Provide value to people in your community, without asking, for free. Make it as easy as possible for them to benefit from your work. Then give it all to them, and ask for nothing in return.
At minimum, this gives you opportunities to sharpen your skills. But over a long enough time horizon, you’ll build up so much goodwill that selling your paid offer will feel effortless.
It’ll be difficult at first, but persist through this initial chapter, and there’s no telling what waits for you on the other side.
One crucial caveat:
#3: Only Sell People You Can Help
Here’s a confusing fact for you: if you sell a paid product to an unqualified prospect, it costs you money.
Why? Because if the client isn’t ready to benefit from your help, you won’t be able to generate exceptional results. And if you can’t do that, it’s only a matter of time before you run your business into the ground.
Never, never trade long-term reputation for short-term money.
We’ll get into the specifics in a second, but for now, keep this fact in mind.
Finally:
#4: Never Stop Improving
Complacency is the enemy of compounding.
If you want to build a sustainable business and reach financial freedom, you need to be constantly improving your skills.
While others stagnate, you need to stay focused on becoming undeniable. To paraphrase Hormozi, you need to become so good that it would be unreasonable for you to fail.
You should always be working on improving one aspect of your business, even when sales are climbing. The better you get, the happier your customers will be, and the more money you’ll make over the long term.
Which only leaves one question:
How Can You Tactically Apply This Information?
If you get the steps above correct, you don’t need to get bogged down too much in the specifics. But broadly, the process goes something like this...
First, talk with a member one-on-one, and try to understand their specific situation. The more you can grasp their exact circumstances, the better you’ll be at helping to solve their problems.
Next, determine if the prospect is qualified. Ask yourself, honestly: can you help this person? Are they in a good position to benefit from your offer? Or, instead, could you provide them with some free value now, so that - later - they’re ready for your paid offer? If you need a reminder, re-read Rule #3 above.
Then, if the prospect is qualified, offer your help. Your solution should sound so appealing that the prospect is excited to accept your help. At this point, you might offer to hop on a call with the prospect, so you can resolve any concerns that they have before purchasing.
Once they buy, overdeliver like mad, and collect feedback afterwards. You can then use this feedback to sharpen your offer, removing the less helpful parts and doubling down on the better ones. Follow this process after every client, and it won’t be long before you’ve got a durable, world-class offer on your hands.
And above all, give more than you take. Throughout this whole process, you should still be providing free value to your community. The more value you provide, the more people will join, the more people will buy your offer, the more feedback you’ll collect, and the better you’ll become at helping your avatar. It’s a positive feedback loop that skyrockets your reputation and fills your bank account. Pretty cool, right?
It’ll only take 10 sales of a $999 offer to hit your first $10,000 month. Assuming 1 in 10 of your members converts, that’s 100 new signups per month to hit your goal.
And if you follow all the advice we’ve discussed previously, that’s well within your reach.