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Offers

Offer Defined: It is what begins the process of getting customers and making money. It is the first thing any new customer will interact with in your business.
“Make people an offer so good they feel stupid saying no.”

GRAND SLAM OFFER

It’s an offer you present to the marketplace that cannot be compared to any other product or service available, combining an attractive promotion, an unmatchable value proposition, a premium price, and an unbeatable guarantee with a money model (payment terms) that allows you to get paid to get new customers . . . forever removing the cash constraint on business growth. (p. 26). Kindle

Example

Pay one time. (No recurring fee. No retainer.) Just cover ad spend. I’ll generate leads and work your leads for you. And only pay me if people show up. And I’ll guarantee you get 20 people in your first month, or you get your next month free. I’ll also provide all the best practices from the other businesses like yours. Daily sales coaching for your staff Tested scripts Tested price points and offers to swipe and deploy Sales recordings . . . and everything else you need to sell and fulfill your customers. I’ll give you the entire play book for (insert industry), absolutely free just for becoming a client. In a nutshell, I'm feeding people into your business, showing you, exactly, how to sell them so that you can get the highest prices, which means that you make the most money possible . . . sound fair enough? (pp. 29-30). Kindle

Massive Pain

They must not want, but desperately need, what I am offering.
The degree of the pain will be proportional to the price you will be able to charge (more on this in the Value Equation chapter). When they hear the solution to their pain, and inversely, what their life would look like without this pain, they should be drawn to your solution. I have a saying I use to train sales teams, “The pain is the pitch.” If you can articulate the pain a prospect is feeling accurately, they will almost always buy what you are offering. A prospect must have a painful problem for us to solve and charge money for our solution. (p. 35). Kindle

THE VALUE EQUATION

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Tutorial video (Part 1)
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As you can see from the picture, 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)
“Get The Bottom To Zero”
In the beginning of my career, I focused all my attention on dream outcomes and the perception of achievement (social proof, third-party edification, etc.) In other words, the top side of the equation. That’s where beginner marketers make bigger and bigger claims. It’s easy, and it’s lazy.
But as time has gone on, I have realized that these larger-than-life claims are the easiest to establish (and therefore less unique). After all, anyone can make a promise. The harder, and more competitive, are the Time Delay and Effort & Sacrifice. The best companies in the world focus all their attention on the bottom side of the equation. Making things immediate, seamless, and effortless.
I have shifted my focus to “the hard stuff” — decreasing the bottom side of the equation. And I believe the better you do this, the more you will be rewarded by the marketplace.
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. (p. 57). Kindle

1. Dream Outcome

Our goal is not to create desire. It’s simply to channel that desire through our offer and monetization vehicle. The dream outcome is the expression of the feelings and experiences the prospect has envisioned in their mind. It’s the gap between their current reality and their dreams. Our goal is to accurately depict that dream back to them, so they feel understood, and explain how our vehicle will get them there.
People generally, and our clients specifically, want:
. . . To be perceived as beautiful
. . . To be respected
. . . To be perceived as powerful
. . . To be loved
. . . To increase their status
The dream outcome value driver is most prominently used when comparing the relative value between two different desires being satisfied. In general, the dream outcome that most directly increases a prospect’s status will be the one they value most. As such, a prospect may value that entire category of vehicles that satisfy one desire more than another category that satisfies a different desire. For many men, making money is more important than being handsome. Why? Because money drives status for men more than being handsome does. So, in general, they will value all offers that make them money more than offers that help them look good.
So it’s not about the money, it's about the status (the perceived increase or decrease in relative standing when compared to others socially or professionally). Talk in terms of things your prospect believes will increase their status, and you will have your prospects drooling. (p. 61). Kindle
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.
Example: If you buy this golf club, your drive will increase by 40 yards. Your golf buddies' jaws will drop when they see your ball soar 40 yards past theirs . . . they’ll ask you what’s changed . . . only you will know. (p. 61). Kindle

2. Perceived Likelihood of Achievement

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 (p. 62). Kindle

3. Time Delay

Time delay is the time between a client buying and receiving the promised benefit. The shorter the distance between when they purchase and they receive value/the outcome, the more valuable your services or product is.
There are two elements to this driver of value: Long-term outcome and short-term experience. Many times, there are short-term experiences that occur while en route to the long-term outcomes. They happen “along the way” and provide value.
It’s good to understand both. The thing people buy is the long-term value, aka their “dream outcome.” But the thing that makes them stay long enough to get it is the short-term experience. These are little milestones a prospect sees along the way that shows them they are on the right path. We try and tie as many of these as possible into any service we offer. We want clients to have a big emotional win early (as close as possible to their purchase). This gives them the emotional buy in and the momentum to “see it through” to their ultimate goal.
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. (p. 63). Kindle

4. Effort & Sacrifice

This is what it “costs” people in ancillary costs, aka “other costs accrued along the way.” These can be both tangible and intangible.
looking at the marketing of plastic surgeons, these are the exact pain points they hit on when they say things like: “Tired of wasting countless hours in the gym. . . . tired of trying diets that just don't work?”
This is why when you sell fitness, you have to spend an hour arm-wrestling a client to give over 1/10th to 1/100th of the amount of money they pay for surgery. There's just not a lot of perceived value because the perceived likelihood of achievement, the time delay to achievement, and the effort and sacrifice are so high.
So even though the outcome is the same, the value of the vehicles are dramatically different, hence the difference in price.
Decreasing the effort and sacrifice, or at least the perceived effort and sacrifice, can massively boost the appeal of your offer.
Our goal as marketers and business owners is to increase the value of the dream outcome and its perceived likelihood of achievement, while decreasing the time delay of achievement and the effort and sacrifice one has to put in to get there. (pp. 65-66). Kindle

VALUE OFFER: CREATING YOUR GRAND SLAM OFFER PART I: PROBLEMS & SOLUTIONS

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Tutorial Video (part 1)
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Step #1: Identify Dream Outcome

I had heard of weight loss challenges, so I started there. Lose 20lbs in 6 weeks. Big dream outcome - lose 20lbs. With a decreased time delay - 6 weeks. Note: I wasn't selling my membership anymore. I wasn’t selling the plane flight. I was selling the vacation. When you are thinking about your dream outcome, it has to be them arriving at their destination and what they would like to experience.

Step #2: List Problems

When listing out problems, think about what happens immediately before and immediately after someone uses your product/service. What's the “next” thing they need help with? These are all the problems. Think about it in insane detail. If you do, you will create a more valuable and compelling offer as you’ll continually be answering people’s next problem as it manifests..
So, let’s go ahead and list out the problems from a prospect’s perspective as you think about them. What points of friction exist for them? I like to think in the sequence that the customer will experience each of these obstacles. Again, channel insane detail (the more problems the better!).

Example Problem: Weight Loss

First thing they must do: Buying healthy food, grocery shopping
Buying healthy food is hard, confusing, and I won’t like it
Buying healthy food will take too much time
Buying healthy food is expensive
I will not be able to cook healthy food forever. My family’s needs will get in my way. If I travel I won’t know what to get.
Next thing they must do: Cooking healthy food
Cooking healthy food is hard and confusing. I won’t like it, and I will suck at it.
Cooking healthy food will take too much time
Cooking healthy food is expensive. It’s not worth it.
I will not be able to buy healthy food forever. My family’s needs will get in my way. If I travel I won’t know how to cook healthy.
Next thing they must do: Eating Healthy Food (etc.)
Next thing they must do: Exercise regularly (etc.)
Now we’re gonna go full circle here. Each of the above problems has four negative elements. And you guessed it, each aligns with the four value drivers as well.
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Dream Outcome→ This will not be financially worth it
Likelihood of Achievement→ It won’t work for me specifically. I won't be able to stick with it. External factors will get in my way. (This is the most unique and service-specific of the problem buckets).
Effort & Sacrifice→ This will be too hard, confusing. I won’t like it. I will suck at it.
Time→ This will take too much time to do. I am too busy to do this. It will take too long to work. It won’t be convenient for me. (p. 78). Kindle



List out all the problems your prospect has. Don’t let these buckets, which are just meant to get your brain going, constrain you. If it’s easier for you, just list out everything you can possibly think of.
What I showed here isn’t just four problems, though. We have 16 core problems with two to four sub problems underneath. So 32 to 64 problems total. No wonder most people don't achieve their goals. Do not get overwhelmed. This is the best news ever. The more problems you think of, the more problems you get to solve.
So, to recap, 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). Now we get to the fun part: turning problems into solutions. (pp. 76-78). Kindle

Step #3: Solutions List

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.
What we’re going to do is simply turn them into solutions by thinking, “What would I need to show someone to solve this problem?” Then we are going to reverse each element of the obstacle into solution-oriented language.
Simply adding “how to” then reversing the problem will give most people new to this process a great place to start. For our purposes, we are giving ourselves a checklist of exactly what we are going to have to do for our prospects and what we are going to solve for them. (p. 78). Kindle

Example: PROBLEM→ SOLUTION

PROBLEM: Buying healthy food, grocery shopping
. . . is hard, confusing, I won’t like it. I will suck at it→ How to make buying healthy food easy and enjoyable, so that anyone can do it (especially busy moms!)
. . . takes too much time→ How to buy healthy food quickly
. . . is expensive→ How to buy healthy food for less than your current grocery bill
. . . is unsustainable→ How to make buying healthy food take less effort than buying unhealthy food
. . . is not my priority. My family’s needs will get in my way→ How to buy healthy food for you and your family at the same time
. . . is undoable if I travel; I won’t know what to get→ How to get healthy food when traveling
PROBLEM: Cooking healthy food
. . . is hard, confusing. I won’t like it, and I will suck at it→ How anyone can enjoy cooking healthy meals easily . . . will take too much time→ How to cook meals in under 5 minutes
. . . is expensive, it’s not worth it→ How eating healthy is actually cheaper than unhealthy food . . . is unsustainable → How to make eating healthy last forever
. . . is not my priority, my family’s needs will get in my way→ How to cook this despite your families concerns
. . . is undoable if I travel I won’t know how to cook healthy→ How to travel and still cook healthy
PROBLEM: Eating healthy food
. . . is hard, confusing, and I won’t like it→ How to eat delicious healthy food, without following complicated systems (pp. 79-80). Kindle


VALUE OFFER: CREATING YOUR GRAND SLAM OFFER PART II: TRIM & STACK

Sales to Fulfillment Continuum

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The ultimate goal, is to find a sweet spot where you sell something very well that’s also easy to fulfill.
“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.
Create cash flow by over-delivering like crazy at first. Then use the cash flow to fix your operations and make your business more efficient. (p. 85). Kindle

Step #4 Create Your Solutions Delivery Vehicles (“The How”)

The next step is thinking about all the things you could do to solve each of these problems you’ve identified. This is the most important step in this process. This is what you are going to deliver.
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. What could you do that someone would immediately say, “All that? Seriously? Yes, I'm in.”
The goal here is to push your limits and jog your brain into thinking of a different version of the solution you’d normally default to. This is where you get to flex your entrepreneurial creativity.
Reminder: You only need to do this once. Literally one time for a product that may last years. This is high-value, high-leverage work. You ultimately get paid for thinking. (p. 85). Kindle

Example Problem: Buying Healthy Food Is Hard, Confusing, and I Won’t Like It

If I wanted to provide a one-on-one solution I might offer . . .
In-person grocery shopping, where I take clients to the store and teach them how to shop
Personalized grocery list, where I teach them how to make their list
Full-service shopping, where I buy their food for them. We’re talking 100 percent done for them. In-person orientation (not at store), where I teach them what to get
Text support while shopping, where I help them if they get stuck
Phone call while grocery shopping, where I plan to call when they go shopping to provide direction and support
If I wanted to provide a small group solution I might offer . . .
In-person grocery shopping, where I meet a bunch of people and take them all shopping for themselves
Personalized grocery list, where I teach a bunch of people how to make their weekly lists. I could do this one time or every week if I wanted to.
Buy their food for them, where I purchase their groceries and deliver them as well
In-person orientation, where I teach a small group offsite what to do (not at store)
If I wanted to provide a one to many solution I might offer . . .
Live grocery tour virtual, where I might live stream me going through the grocery store for all my new customers and let them ask questions live
Recorded grocery tour, where I might shop once, record it, then give it as a reference point from that point onwards for my clients to watch on their own
DIY grocery calculator, where I create a shareable tool or show them how to use a tool to calculate their grocery list
Predetermined lists, where each customer plan comes with its own grocery list for each week.
I could make this ahead of time so they have it. Then they could use it on their own time
Grocery buddy system, where I could pair customers all up, which takes no time really, and let them go shopping together
Pre-made, insta-cart grocery carts for delivery, where I could pre-make insta-cart lists so clients could have their groceries delivered to their doorstep with one click (pp. 85-87). Kindle


Product Delivery Cheat Codes

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What level of personal attention do I want to provide? one-on-one, small group, one to many
What level of effort is expected from them? Do it themselves (DIY) - figure out how to do it on their own; do it with them (DWY) - you teach them how to do it; done for them (DFY) - you do it for them
If doing something live, what environment or medium do I want to deliver it in? In-person, phone support, email support, text support, Zoom support, chat support
If doing a recording, how do I want them to consume it? Audio, video, or written.
How quickly do we want to reply? On what days? During what hours? 24/7. 9-5, within 5 minutes, within an hour, within 24 hrs?
10x to 1/10th test. If my customers paid me 10x my price (or $100,000) what would I provide? If they paid me 1/10th the price and I had to make my product more valuable than it already is, how would I do that? How could I still make them successful for 1/10th price? Stretch your mind in either direction and you’ll come up with widely different solutions.
Remember, it’s important that you solve every problem. I can’t tell you the amount of times one single item becomes the reason someone doesn't buy.
Don’t get romantic about how you want to solve the problem. Find a way to solve every problem a prospect presents with. When you do that, you make an offer that’s so good, people just can't say no.
Note: You must resolve every obstacle a buyer believes they will have to convert the highest amount of people. That’s not to say that if you don't, you won’t sell people. But you won't sell as many people as you otherwise could have. And that’s the goal, to sell the most people, for the highest possible price, with the highest possible margin. (pp. 88-89). Kindle

Step #5: Trim & Stack

Now that we have enumerated our potential solutions, we will have a gigantic list. Next, 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.
If you aren’t sure what’s high value, go through the value equation and ask yourself which of these things will this person:
Financially value
Cause them to believe they will be likely to succeed
Make them feel like they can do it with much less effort and sacrifice
Help them accomplish their goal and see the result they want with far less time investment.
What should remain are offer items that are 1) low cost, high value and 2) high cost, high value.
If there’s one type of delivery vehicle to focus on, it’s creating high value, “one to many'' solutions. (p. 90). Kindle

Example: One to Many Solution

When I was running my gym, I went through this exercise and created: bulking blueprints, an eating-out system, a travel eating and workout guide, meal plans for every body weight and gender, a grocery list calculator, plateau busting meal plans (for when they got stuck), fast cooking guides partnered with meal prep services, and did in-person nutrition orientations with every client one-on-one.
Many of the “one to many” solutions require more up front work. Once created, however, they become valuable assets that create value in perpetuity. It’s worth putting in the time to create these because they will create high margin profit for years to come.
Real talk: the meal plans I made for my gym have been used by 4,000+ gyms now and literally hundreds of thousands of people. They are simple and easy to follow. So they have provided ample return for the week or two of dedicated time I spent making them.
And if you ever have the desire to build a repeatable business model, something that scales, these assets you create will become the bedrock.
All we have to do now is… Step #5b: Put all the bundles together into the ultimate high value deliverable.
Format Note
I’m going to display each problem-solution set as: Problem → Solution Wording→ Sexier Name for Bundle . Then, underneath, you will see the actual delivery vehicle (what we’re actually gonna do for them/provide)
Buying food→ How anyone can buy food fast, easy, cheaply → Foolproof Bargain Grocery System . . . that’ll save hundreds of dollars per month on your food and take less time than your current shopping routine ($1,000 value for the money it'll save you from this point on in your life)
1-on-1 Nutrition Orientation where I explain how to use…
Recoded grocery tour
DIY Grocery Calculator
Each plan comes with it’s own list for each week
Bargain grocery shopping training
Grocery Buddy System
Pre-made insta-cart grocery carts for delivery
And a check-in via text weekly.
Cooking→ Ready in 5 min Busy Parent Cooking Guide . . . how anyone can eat healthy even if they have no time ($600 value from getting 200 hours per year back — that’s four weeks of work!)
1-on-1 Nutrition Orientation where I explain how to use…
Meal Prep Instructions
DIY Meal Prep Calculator
Each plan comes with it’s own meal prep instructions for each week
Meal prep buddy system
Healthy snacks in under 5 min guide
A weekly post they make to tag me for feedback
Hormozi, Alex. $100M Offers: How To Make Offers So Good People Feel Stupid Saying No (p. 93). Kindle Edition.
Eating→ Personalized Lick Your Fingers Good Meal Plan . . . so good it’ll be easier to follow than eating what you used to “cheat” with and cost less! ($500 value)
1-on-1 Nutrition Orientation where I explain how to use…
Personalized Meal Plan
5 min Morning shake guide
5 min Budget Lunches
5 min Budget Dinners
Family size meals
A daily picture of their meals
1-on-1 feedback meeting to make adjustments to their plan (and upsell them)
Exercise→ Fat Burning Workouts Proven To Burn More Fat Than Doing It Alone . . . adjusted to your needs so you never go too fast, plateau, or risk injury ($699 value)
Traveling→ The Ultimate Tone Up While You Travel Eating & Workout Blueprint . . . for getting amazing workouts in with no equipment so you don't feel guilty enjoying yourself ($199 value)
How to actually stick with it→ The “Never Fall Off” Accountability System . . . the unbeatable system that works without your permission (it’s even gotten people who hate coming to the gym to look forward to showing up) ($1000 value)
How To Be Social→ The ‘Live It Up While Slimming Down” Eating Out System . . . that will give you the freedom to eat out and live life without feeling like the “odd man out” ($349 value)
Total value: $4,351 (!) All for only $599
Can you see how much more valuable this is than a gym membership? 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
(pp. 91-94). Kindle


Summary Points

We went through this entire process to accomplish one objective: to create a valuable offer that is differentiated and unable to be compared to anything else in the marketplace. We are selling something unique. As such, we are no longer bound by the normal pricing forces of commoditization. Prospects will now only make a value-based rather than a price-based decision on whether they should buy from us.(p. 95). Kindle
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Tutorial Video (Part 2)
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Offer Creation Checklist
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ENHANCING THE OFFER: SCARCITY (Quantity)

Creating Scarcity

Creating Scarcity When there’s a fixed supply or quantity of products or services that are available for purchase it creates “scarcity” or a “fear of missing out.” It increases the need to take action, and by extension, purchase your offer. This is where you publicly share that you are only giving away X amount of products or can only handle Y new clients.
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.

Three Types of Scarcity

Limited Supply of Seats/Slots: in general or over X period of time.
Limited Supply of Bonuses
Never available again.
Having limited releases is a tried and true method of using this psychological bias to your advantage.
Important point: to properly utilize this method you should always sell out. Here’s why: it’s better to sell out consistently than over (sell) and fail at creating that scarcity.
Second Important Point: When using this tactic, you must also let everyone know that you sold out. That is part of what makes it work so well. This way, even people who were on the fence, when they see that it was sold out, it gives social proof that other people thought it was worth it. And now that the choice has been made for them, they desire it more because there is no way they can get it. So the next time you make the offer they will be far more likely to take you up on it. (p. 106-107). Kindle

Scarcity when Offering Services

1. Total Business Cap - Only accepting….X Clients.
Only accepting X clients at this level of service (on-going). This puts a cap on how many clients you service but also keeps them in it. You create a waiting list for new prospects. The moment the door opens, they jump right in and price resistance disappears. Periodically, you can increase capacity by 10-20% then cap it again. This works well for your highest tiers or service levels.
This is like saying “My agency only will service twenty-five customers total. Period.” Over time you can increase your prices and squeeze the lower performing accounts out and bring in new more profitable accounts, or, you can periodically ‘open slots’ as your capacity allows (always leaving some demand unmet).
2. Growth Rate Cap - Only accepting X clients per week (on-going)
“We only accept 5 new clients per week and we already have the first 3 spots taken. I have 6 more calls this week, so you can take the spot or one of my next calls and you can wait until we reopen.”
I always knew what my capacity was per week, and simply chose to let our prospects know how many openings we had left. This banks on the fact that you can only handle a certain amount of new clients anyways, on a regular basis, so you might as well let them know it.
3. Cohort Cap - Only accepting….X clients per class or cohort.
Similar to the above, except done on whatever cadence you desire. Only accepting X amount per class or cohort over a given period is another way of thinking about it. Imagine you only start clients monthly or quarterly. This helps you get some cadences in place in your business operationally while also allowing your sales team some legitimate scarcity.
Example: “We take on 100 clients 4 times a year. We open the doors then close them.” Etc. (p. 107-108). Kindle

Pro Tip: Provide Limited Access For Higher Ticket Services

These scarcity tactics work especially well for higher ticket upsells. If you want to create one off workshops, trainings, events, seminars, consulting, etc. These are things that by their nature take time and provide more access.
Paring them with clear scarcity or fixed amounts, seats, or spots will rapidly drive up the demand. But always remember to have less spots available than you think you can sell . . . so that when you want to do it again in the future, everyone will remember you sold out . . . fast. This is a compounding strategy that increases in effectiveness over time. One of the few in the marketing arsenal. (p. 109). Kindle

Example: Honest Scarcity (Create Your Own Scarcity)

Define a number of clients that you are willing to take on in a given time period, then advertise that. Simply letting people know that you are three-fourths of the way to capacity this week will move people over the edge to buying from you. Or letting people know that you are 81% to capacity in your total business, will make people more likely to sign up with you “before they lose the chance.” Scarcity also implies within it, social proof. If you are 81% to capacity then a decent amount of people made the decision to work with you, and the closer you get to your arbitrary fullness, the faster the spots will disappear. But only you get to draw where that line is “full.”(pp. 109). Kindle

Pro Tip: Extreme Scarcity

If you don’t hate money, sell a very limited supply of 1-on-1 access. You can do that via any of the mediums described in “Delivery Cube.” Direct message access. Email Access. Phone access. Voice memo access. Zoom access. Etc. There are lots of ways you can do this. But I promise you this - if you want to immediately make a lot of money, create a very exclusive service level based on access to you (yes, unscalable), that you cap at a tiny number. Price it very high. Then, tell people. You will make more money than you thought possible. These also tend to be some of the best clients. And limit your delivery to something that you don’t hate. For me, I hate emails and messages but dont mind zoom calls. Make it work for your working style. The cream of the crop (the 1% of 1% will adjust and take action).
Hormozi, Alex. $100M Offers: How To Make Offers So Good People Feel Stupid Saying No (p. 110). Kindle Edition.

Summary Points

Employ one or multiple methods of scarcity in your business. You will drive a faster purchasing decision from your prospects, and at higher prices. Just let them know your limits and let psychology do the rest. (p. 110). Kindle

ENHANCING THE OFFER: URGENCY (Time)

Scarcity is a function of quantity. Urgency is a function of time. This is where you only limit when people can sign up, rather than how many. Having a defined deadline or cut off for a purchase or action to occur creates urgency.
4 Types of Urgency
Rolling Cohorts
Rolling Seasonal Urgency
Promotional or Pricing Urgency
Exploding Opportunity.

1. Cohort-Based Rolling Urgency

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.”
Remind a potential customer that if they sign up, they will be starting on Monday, and if they do not, they will have to wait (until the next session.) It’s small things like this that nudge people to take the action they know they should take anyways.
The less frequently you kick off new customers, the more powerful this is. For example, if you only start clients two times a year, people will be very inclined to sign up, especially as the date approaches. Even starting new clients every other week can confer this urgency nudge.

2. Rolling Seasonal Urgency

In a digital setting, having actual sign up date countdowns is very useful.
Display the dates of a promotion on landing pages and in copy- Make visible everywhere. The nice thing is that you can always fire up another ad campaign and a new landing page with new dates. You will see your conversions go through the roof, and it takes maybe five minutes of editing — well worth the time investment.
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. Deadlines drive decisions. By simply having these, you can point to them and let human beings push themselves over the edge so as not to miss out. (p. 113). Kindle

3. 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. It allows businesses that sell clients year round to still use urgency.
This creates some fear of missing out on the promotion (or discount or bonuses), rather than your actual service.
If you talk specifically about the promotion you can often elicit the same urgency on buying in the prospect while maintaining your integrity — win-win. You can interchange a pricing promotion, discount, or added bonuses like free install or free onboarding or an extra workshop (valued at $1,000) if they buy now. These are all things you can swap around your core offer to create urgency. (p. 114). Kindle

Pro Tip - Clean Your Pipeline With Every Price Change:

If you ever really are planning on raising your prices, you can always clean out your pipeline by letting people know “The price is going up! So get in now!” Never raise your prices without letting people know. It shows a position of strength and will give you a nice little influx of cash from the people in the pipeline who were on the fence. (p. 114). Kindle


4. Exploding Opportunity

The opportunity itself has a ticking time clock, as all great opportunities do - It decays over time. Every second someone delays, they miss out on disproportionate gains. This forces prospects to make fast decisions rather than try and “wait it out” to see if they get a better offer.
Hormozi, Alex. $100M Offers: How To Make Offers So Good People Feel Stupid Saying No (p. 115). Kindle Edition.
Hormozi, Alex. $100M Offers: How To Make Offers So Good People Feel Stupid Saying No (p. 115). Kindle Edition.

ENHANCING THE OFFER: BONUSES

The main point I want you to take away from this is that a single offer is less valuable than the same offer broken into its component parts and stacked as bonuses
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This section is about how to present those pieces in what order. For example, I may in fact do lots of things in my service, but until I enumerate them, they are unknown. This is why every infomercial of all time continues on with “but wait….there’s more!”
They establish the price, then they expand upon it until you feel it’s such a good deal it would be stupid to pass it up. The reason this works is we are increasing the prospect’s price-to-value discrepancy by increasing the value delivered instead of cutting the price. We anchor the price we tell them to the core offer. Then with each increasingly valuable bonus, that discrepancy grows wider and wider until it's too big to bear
We are now going to present that “stack” of deliverables that we assembled earlier in a way that makes them irresistible. (p. 117). Kindle

Pro Tip: Add Bonuses Instead of Discounting Whenever Possible on Core Offers

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.



Presenting Bonuses 1-on-1 Selling

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. You simply agree with the prospect, add the bonus, and ask if this consolation was “Fair enough.” People have a hard time rejecting reciprocity, so adding a bonus to accommodate, then another, then another, and people will feel almost obligated to buy from you. (p. 118). Kindle

Bonus Bullets

1. Always offer them (you can use the bulleted bundle we came up with at the end of Section III)
Give them a special name that has a benefit in the title
Tell them:
How it relates to their issue
What it is
How you discovered it, or what you had to do to create it
How it will specifically improve their lives or make their experience
Faster, easier or less effort/sacrifice (value equation)
Provide some proof (this can be a stat, a past client, or personal experience) to prove that this thing is valuable
Paint a vivid mental image of what their life will be like assuming they have already used it and are experiencing the benefits
Always ascribe a price tag to them and justify it
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).
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)
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.
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,
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).
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.
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.
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.

Advanced Level Bonuses - Other People’s Products and Services

You can get other businesses to give you their services and products as a part of your bonuses in exchange for exposure to your clients for free. This is free marketing for them, and high value products for you at no cost. Businesses will do this because you are going to give their business exposure for free to the highest quality prospects, your customers. If you secure enough of these relationships, you can literally justify your entire price in the savings and additional true-to-price bonuses.




Summary

We want to employ bonuses because they expand the price to value discrepancy and get people to purchase who otherwise wouldn’t. They massively increase the prospects' perception of the value of our offer. So here’s what to do:
Create checklists, tools, swipe files, scripts, templates, and anything else that would take lots of time and effort to create on one’s own, but is easy to use once created. Anything that you can invest in one time that clearly costs time or money to create, but can be given away endless time is a perfect fit for a bonus.
Record every workshop, every webinar, every event, every interview and use them as additional bonuses (as needed to crush a perceived obstacle).
Negotiate group discounts and a referral commission with adjacent businesses that solve needs your customer will have as a result of beginning this process with you. What’s the next natural thing they might want? Go to those businesses, get a deal for them they could never get for themselves (because you are negotiating with the purchasing power of all your customers at once, very powerful).
Information products work very well here because they have high perceived value, low cost, and zero operational effort besides giving an additional login. Tickets to virtual experiences or events work too. Same goes for a higher level of service that has a fixed cost like giving someone VIP service for a month (which also doubles as a way of upselling them into that level of service to keep them on it.) (p. 123). Kindle

ENHANCING THE OFFER: GUARANTEES

The single greatest objection for any product or service being sold is...drum roll...risk. Risk that it doesn’t do what it’s supposed to do for them. Therefore, reversing risk is an immediate way to make any offer more attractive. You will want to spend a disproportionate amount of time figuring out how you want to reverse it.
From an overarching perspective there are four types of guarantees:
Unconditional
Conditional
Anti-Guarantee
Implied Guarantees.

Types of Guarantees

What makes a guarantee have power is a conditional statement: If you do not get X result in Y time period, we will Z. To give a guarantee teeth you have to decide what you’ll do if they don’t get the result. Without the “or what” portion of the guarantee, it sounds weak and diluted. Note: This is what most marketers do.
Bad Example: We will get you 20 clients guaranteed.
Better example: You will get 20 clients in your first 30 days, or we give you your money back + your advertising dollars spent with us. This is a simple, but strong guarantee.
Unconditional Guarantees 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, especially as consumer culture continues to shift towards entitlement and zero accountability.
Conditional Guarantees ​Conditional guarantees include “terms and conditions” to the guarantee. These are the ones you can get VERY creative on. In general, you want these to be “better than money back” guarantees. Because if they are going to make an investment, you want to match their investment psychologically with an equal or higher perceived commitment. These also can have a very powerful effect on getting clients results. If you know the key actions someone must take in order to be successful, make those part of the conditional guarantee. In a perfect world, 100% of your customers would qualify for a conditional guarantee, but will have achieved their result, and therefore will not want to take it. That is an ideal we can all aspire towards. And just fyi - if given the option of getting a refund or getting the outcome they were promised the vast majority of people will take the outcome.



Anti-Guarantees Anti-guarantees are when you explicitly state “all sales are final.” You will want to own this position. You must come up with a creative “reason why” the sales are final. Typically, you’ll want to show a massive exposure or vulnerability on your part that a consumer could immediately understand and think “Yes, that makes sense.” These types of guarantees are especially important with items that are consumable or massively diminish in value once given.
Implied Guarantees Implied guarantees are any offer that is a performance-based offer. This comes in many different forms. Rev share, profit share, triggers, ratchets, monetary bonuses, etc. are all examples. The end all concept is the same, if I don't perform, I don’t get paid. Unique to this particular structure, it also confers the upside of “If I do a great job, I will be very well compensated.” These only work in situations where you have transparency for measuring the outcome and trust (or control) that you will get compensated when you do perform.
Stacking Guarantees An experienced salesman understands that, like bonuses, you can actually stack guarantees. For example, you could give an unconditional 30 day no questions asked guarantee then on top of that give a conditional triple your money back 90 day guarantee. That would be an example of stacking an unconditional with a conditional guarantee.
You can also stack two conditional guarantees around different (or sequential) outcomes. For example, you’ll make $10,000 by 60 days, $30,000 by 90 days as long as you do things 1, 2, and 3. This future paces the prospect into an outcome they now believe is far more likely (since you will be deliberately spelling it out in a conditional guarantee with a timeline for achievement). Doing this shows the prospect you are serious about getting them results and convinced that they will achieve what they want. This shifts the burden of risk back from them onto us...a very powerful strategy. (p. 125-126). Kindle
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.
Creative Imagery Example (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.
[Unconditional] Satisfaction-Based Refund Guarantee
What the Client Gets: If at any time they're not satisfied with the level of service they're receiving from you, they can request a refund (at any time) for the program.
My Take: Believe it or not, this was my guarantee when I sold weight-loss programs. Besides being an irresistible offer, I guaranteed satisfaction. I used the strength of my guarantee to close a lot of deals.
It works perfectly with a best-case/worst-case close. “Best case you get the body of your dreams and we give you all your money towards staying with us to hit your long-term goal. Worst case you tell me I suck, I write you a check, and you get six weeks of free training. Both options are risk free. But, the only thing guaranteed not to help you is walking out of here today.” If you are good at what you do, you can use a guarantee like this to push a lot of people over the edge.
Satisfaction/No questions asked is the highest form of guarantee. It means we could do everything right and you could still ask for your money back. As long as you know the math, you will typically make up for the refunds in spaces with higher and faster closing on the sales side. But you have to be good at fulfilling your promises. If not, steer clear. I believe this offer works much better in lower-ticket situations. It becomes very risky as you go into higher-ticket services with higher costs of fulfillment.
[Conditional] Outsized Refund Guarantee
What the Client Gets: Double or Triple their money back, or a no-strings-attached payment of $X,XXX (or another amount that’s far more than what they paid).
My Take: This is for when you sell something with high margins. And this is a guarantee to add with a consumption condition. That means they must do a variety of things to qualify for this guarantee. A world class affiliate marketer Jason Fladlien (who did $27M in a single day) recently used an amazing guarantee for a course he sold. He said “if you buy this course and spend $X on advertising your ecommerce store using the methods herein, and don't make money, I will buy your store from you for $25,000 no questions asked.” He claimed that an additional $3M in sales came from this crazy guarantee on a $2997 course. What’s more, he only gave 10 of these $25,000 refunds out. So the refund generated $2.75M in extra sales. That’s what a crazy guarantee does for you.
In general, a very strong guarantee like this will definitely drive more sales. This really serves the purpose when you need a lot of stuff to be done by your prospect, and, assuming those things are done, there’s a low chance of the result not being achieved.
[Conditional] Service Guarantee
What the Client Gets: You keep working for them free of charge until X is achieved.
My Take: This is probably my personal favorite guarantee of all time. It essentially guarantees they will achieve their goal, but it eliminates the element of time. You are never at risk for losing the money. The guarantee is around the outcome. To add further flavor to it, you can make this guarantee conditional on them doing key actions linked with success: setting up a web page, attending calls, showing up to workouts, weighing in, reporting data, etc.
Real Talk: Since I have been advising businesses to use this particular guarantee, I have yet to have a single person say a client took them up on it. Realistically, if someone actually does everything you asked them to do and doesn’t achieve the result by the time you had said, one of two things usually happens:
Seeing your client’s commitment, you happily keep working with them until they achieve the desired result It gets dropped. Your client is likely very close to the goal, which means satisfied. Also, it’s likely the sales conversation with the guarantee was months earlier. What may have been important in the sales conversation is a distant memory now, replaced by their affection towards you/your business.
[Conditional] Modified Service Guarantee
What the Client Gets: You give them another Y-long period of service or access to your product/services free of charge. Generally, Y should give them at least twice the duration.
My Take: This is like the service guarantee, but it ties a specific duration to your extended work/involvement. So instead of being on the hook “forever,” you’re only on the hook for an additional Y period of time.
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.
The key is to identify a client’s biggest fears, pain, and perceived obstacles. “What do they not want to have happen if they pay you? What are they most afraid of?” Reverse their fears into a guarantee. Think of the time, emotion, and outside costs associated with any program or service. The more specific and creative the guarantee is, the better.
My advice: Start selling service-based guarantees or setting up performance partnerships. This will make all sales final (so no fear from refunds). Most importantly, it will commit you to your customers’ results and keep you honest. (p. 136). Kindle

ENHANCING THE OFFER: NAMING


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