The biggest difference between being you being poor and your business succeeding
Is whether what you sell is perceived as a good deal
Here’s how you make your offer one that can’t be refused
THREAD
Is whether what you sell is perceived as a good deal
Here’s how you make your offer one that can’t be refused
THREAD
Before we dig into HOW, we need to understand why we reject some offers
Ultimately it comes down to fairness and how we perceive value
Let’s deal with fairness first
Humans, and even apes, have a very clear understanding of fairness or parity
We know what is fair & what isn’t
Ultimately it comes down to fairness and how we perceive value
Let’s deal with fairness first
Humans, and even apes, have a very clear understanding of fairness or parity
We know what is fair & what isn’t
My favourite example of this is the one with the monkeys
A study showed that when they’re paid unfairly for the same task even capuchin monkeys get pissed off
youtube.com
When we can see that we’re getting ripped off, intuitively we react badly
A study showed that when they’re paid unfairly for the same task even capuchin monkeys get pissed off
youtube.com
When we can see that we’re getting ripped off, intuitively we react badly
When you make an offer to a prospect, they weigh up whether they feel it’s fair or whether it isn’t
If it isn’t fair, they’ll reject it
If it is fair, they’ll accept it
Seems sinple
But it begs the question...
If it isn’t fair, they’ll reject it
If it is fair, they’ll accept it
Seems sinple
But it begs the question...
What is fairness?
We call something fair when all parties benefit equally / as close to equally as possible
If asked to split $10 between two people
Anything more than a 6/4 split = unfair
People would rather lose $3 and blow up the deal than let the other person get $7.
We call something fair when all parties benefit equally / as close to equally as possible
If asked to split $10 between two people
Anything more than a 6/4 split = unfair
People would rather lose $3 and blow up the deal than let the other person get $7.
This thread is only going to focus on value and price.
The best way of imagining their relationship is as a see-saw
In any offer, you are exchanging value for the price you have set.
At perfect equilibrium, you get something like this
The best way of imagining their relationship is as a see-saw
In any offer, you are exchanging value for the price you have set.
At perfect equilibrium, you get something like this
In reality, perfect equilibrium never exists
There is always one side more heavily weighted
If you want people to never refuse the offers you make
You HAVE to make this the value side
There is always one side more heavily weighted
If you want people to never refuse the offers you make
You HAVE to make this the value side
When we stack the value side of the equation, you get what @AlexHormozi calls Grand Slam Offers
They fundamentally require 4 things:
- An attractive promotion
- An unmatched value proposition
- A premium price
- An unbeatable guarantee
They fundamentally require 4 things:
- An attractive promotion
- An unmatched value proposition
- A premium price
- An unbeatable guarantee
@AlexHormozi How do you stack the value side of the equation?
They have to feel like they’re the ones getting a 70/30 deal
They have to feel like they’re stealing a deal from you
A lead gen offer with no set up, pay on performance + a guaranteed number of calls per month?
The equation =
They have to feel like they’re the ones getting a 70/30 deal
They have to feel like they’re stealing a deal from you
A lead gen offer with no set up, pay on performance + a guaranteed number of calls per month?
The equation =
@AlexHormozi But, what happens when you try to add a premium price to a mediocre offer?
$5K a month retainer for 10 leads guaranteed per month?
Well, now the equation looks like this
wHy Don’T peOpLe bUy mY seRVicEs
$5K a month retainer for 10 leads guaranteed per month?
Well, now the equation looks like this
wHy Don’T peOpLe bUy mY seRVicEs
@AlexHormozi @AlexHormozi talks about adding a premium price to an exceptional value proposition the guarantee & the promotion stacks the value side of the equation
Value = even more worth it because you get all these extras When you have such a value heavy offer, a high price is acceptable
Value = even more worth it because you get all these extras When you have such a value heavy offer, a high price is acceptable
@AlexHormozi When the value part of the equation is so heavily stacked it becomes impossible to say no
We call these kinds of offers Godfather offers
It’s one of the criteria we have for accepting new clients
Don’t currently have one but want to build one?
DM me we'll see if we can help
We call these kinds of offers Godfather offers
It’s one of the criteria we have for accepting new clients
Don’t currently have one but want to build one?
DM me we'll see if we can help
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