Alex Hormozi - 100M$ Offers

jacobspannagel
Jan 21, 2023
41 min read

Quotes:

When people are saying they are reinvesting in their business it means they are not profitable.

Wealthier people choose higher leverage opportunities.

Everything is growing or dying. Maintenance is a myth.

If there are two ways to take something and one of them upsets you, “Round up for me”

“He who said money can’t buy happiness, hasn’t given enough away.”

“The point of good writing is for the reader to understand. The point of good persuasion is for the prospect to feel understood.”

“The pain is the pitch.”

“We question all of our beliefs, except those that we truly believe. Those we never question”

Naval Ravikant: “Desire is a contract you make with yourself to be unhappy until you get what you want.”

“Do not cast power to your excuses. Own your circumstances because noone else will.”

“Deadlines. Drive. Decisions.”

4 C’s of leverage:

Cooperation - Other peoples labor

Capital - Other people's money

Content - Other people’s attention

Code - Use a machines time

Definitions:

LTV - Lifetime Value

Greatness: When reality exceeds expectations.

Love is “how much are you willing to endure to keep it”

Low capital expense businesses - Services that don't cost more at scale. Ex:

Insurance - geico, business is just math and risk
Banking

Getting married

Great hack to saving money.
Don't spend money chasing tail.
Knowing it felt secure. It made it more stable.
Took some of the risk away.
Trade novelty for loyalty.

Advice to younger self:

Patience Works:

Define your terms: what is healthy, what is happy,

Smell the flowers more

CLOSER: baseline assumption is they want what you have. Goal is not to get them to buy. Its to get them to decide.

C - Clarify why they are there
L - Label them with the problem
O - Overview their past experiences
S - Sell, hit 3 points,
E - Explain away concerns
R - Reinforce the prospects decision

How people explain away their power:

Circumstances
- Time
  - Macro
  - Micro
  - when/then
- Money
- Fit
Other People
- Partner - Do they know you have this problem? Do they want you to continue to have that problem?
Self
- Burn you twice
- What are you afraid of?
- You are 6 inches from gold. You have done all these things to be here right now.
- What do you need to see from us to.
- The reason you are using to say no is the reason you need to say yes.

3 yeses you need to move forward:

Do you believe the product or service will get you where you want to go the way you want to get there? – YES

Do you want to work with us? – YES

Do you or someone you know have the access to the money to get started? YES

Ask if the program was perfect would you do it?

What's the difference between what we’ve got and perfect?

3 Skills to make a million:

Sales
Sales
Sales

Find the most expensive thing you can possibly sell

Sell in the highest volume realm possible.

3 truths to give people if everything else went away:

Give first and without expectation
If you can't do it forever, don't do it for a day
If nothing matters, then you get to decide what matters, so choose wisely

3 things to grow:

# of customers
Average purchase value
Buy more times

Notes from the book:

Section I: How We Got Here The Ugly Truth

The secret to sales: Make people an offer so good they would feel stupid saying no.

The only way to conduct business is through a value exchange. The offer is what initiates this trade.

In a nutshell, the offer is the goods and services you agree to provide, how you accept payment, and the terms of the agreement.

Section II: Pricing How To Charge Lots of Money For Stuff

What does it take to grow?

Get more customers
Increase their average purchase value
Get them to buy more times

Gross Profit: The revenue minus the direct cost of servicing an ADDITIONAL customer. If I sell lotion for $10 and it costs me $2, my gross profit is $8 or 80 percent. If I sell agency services for $1,000/mo and it costs me $100/mo in labor to run that client's advertising, then my gross profit is $900 or 90 percent. Note: This is not net profit. Net profit is what’s left over after all expenses are paid, not just the direct costs of fulfillment.

Lifetime Value: Gross profit multiplied by the number of purchases an average customer will make over their lifetime. Gross profit accrued over the entire lifetime of a customer. If the average customer stays five months, and they pay $1,000/mo while it costs $100 per month to fulfill, then their lifetime value is $4,500.

Having a Grand Slam Offer helps with all three of the requirements for growth: getting more customers, getting them to pay more, and getting them to do so more times. It allows you to differentiate yourself from the marketplace. It allows you to sell your product based on VALUE not on PRICE.

Commoditized = Price Driven Purchases (race to the bottom)

Differentiated = Value Driven

A business does the same work in both cases (with a commoditized or a Grand Slam Offer). The fulfillment is the same. But if one business uses a Grand Slam Offer and another uses a “commodity” offer, the Grand Slam Offer makes that business appear as if it has a unique product — and that means a value-driven, versus price-driven, purchase.

Furthermore, it’s hard to get and retain prospects unless you’re hypervigilant about clients commoditizing your business by staying competitive. That’s the problem with the old commoditized way. They’re able to compare. Unless you switch to a Grand Slam Offer, your prices will keep getting beaten down. The business eventually dies, or the entrepreneur throws in the towel.

Make an offer that’s so different that you can skip the awkward explanation of why your product is different from everyone elses and instead have the offer do that work for you. That’s the Grand Slam Offer way.

Pricing: Finding The Right Market -- A Starving Crowd

When picking markets, look for four indicators:

1) Massive Pain They must desperately need what I am offering. Humans suffer a lot. So for us entrepreneurs, endless opportunity abounds. The degree of the pain will be proportional to the price you will be able to charge. 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.

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.

2) Purchasing Power - Prospects must be able to buy your product/service

3) Easy to Target - Make sure you can target your ideal audience easily

4) Growing - Growing markets are like a tailwind. They make everything move forward faster

Three main markets that will always exist:

Health
Wealth
Relationships

Think about what you are good at in regards to health, wealth, and relationships. Then think about who might value your service the most (is in the most pain), has the buying power to pay what you want (money), and can be found easily (targeting). As long as those three criteria are strong and the market isn't shrinking, you’ll be in good shape.

Order of Importance: Three Levers on Success

Starving Crowd (market) > Offer Strength > Persuasion Skills

Commit to the Niche

Niching down will make you far more money.

Reason: you can literally charge 100x more for the exact same product.

Author Note - When To Broaden

Niching down will make you more money until you fulfil your total addressable market (TAM).

Be ‘the guy’ who services ‘this type of person’ or solves ‘this type of problem.’ And even more niched ‘I solve this type of problem for this specific type of person in this unique counter-intuitive way that reverses their deepest fear.”

“Charge as high a price as you can say out loud without cracking a smile.” — Dan Kennedy

Price to Value Discrepancy:

The simplest way to increase the gap between price to value is by lowering the price. It’s also, often, the wrong decision for the business.

“Getting people to buy is NOT the objective of a business. Making money is.”

As Dan Kennedy said, “There is no strategic benefit to being the second cheapest in the marketplace, but there is for being the most expensive.”

Why You Should Charge So Much It Hurts

Premium pricing is not only a smart business decision, but a moral one. Furthermore, it’s the only choice that will allow you to provide the most value, a unique and strong position in the marketplace.

Virtuous Vs Vicious Cycle of Price

Higher Price Means Higher Value

In a blind taste test, consumers rated three wines: low, medium, and expensively priced. The participants rated the wines with the prices visible. They rated them in order of their price, with the most expensive “best,” the second most expensive “secondbest,” and the cheapest option being rated as “cheap wine.”

The tasters didn’t know that the researchers gave them the exact same wine all three times. Yet, the tasters reported a wide discrepancy between the “high priced” wine and the “cheap” wine. This has deep implications for the direct relationship between value and price.

In essence, raising your prices can directly enhance the value you provide.

Be so high that a consumer thinks, “This is so much more expensive, it must be entirely different.”

That is how you create a category of one. In this new perceived marketplace, you are a monopoly and can make monopoly profits.

If you offer a service where a customer must perform in order to achieve the result, they must be invested. The more invested they are, the more likely they are to achieve positive results. Therefore, if you care about your customers, get them as invested as possible. Price your product/service such that it stings when they buy. That sting will focus their attention and investment in your product/service. Those who pay the most, pay the most attention. If your customers are more adherent, and if they achieve better results with your service than your competition, then you are providing more value than anyone else.

You must outwork your self doubt. You must be confident in your delivery, because you have experience, and know this person will succeed.

Charge a premium. It will allow you to provide unique support to your clients success and more value than anyone else in the industry. Charge on a fraction of what the clients make. The clients will still get a deal. The gap between what they will pay and what they will get will be massive. As a result, the virtuous cycle will continue to spin. In my gyms, We charged the most money, provided the most value, remained the most competitive, made the most money, had the latest and best acquisition systems, and had the support to implement them at lightning speed.

That is the power of value. It unleashes unlimited pricing and profit power to scale your company.

The Value Equation

Four primary drivers of value:

The Dream Outcome (Goal: Increase)
Perceived Likelihood of Achievement (Goal: Increase)
Perceived Time Delay Between Start and Achievement (Goal: Decrease)
Perceived Effort & Sacrifice (Goal: Decrease)

Beginner marketers focus their attention on dream outcomes and the perception of achievement. It’s easy and lazy. Larger-than-life claims are the easiest to establish. Anyone can make a promise. The harder, and more competitive, are Time Delay and Effort & Sacrifice. The best companies in the world focus their attention on the bottom side of the equation. Making things immediate, seamless, and effortless. The better you decreasing the bottom side of the equation, the more you will be rewarded by the marketplace.

If you make the bottom part of the equation zero, No matter how small the top side is, anything divided by zero equals infinity. Given this postulate, a prospect would purchase something from you, and the moment their credit card was run, it would become their reality. That is infinite value.

Perception is reality.

It’s not about how much you increase your prospect’s likelihood of success, or decrease the time delay to achievement, or decrease their effort and sacrifice. That in itself is not valuable. The Grand Slam Offer only becomes valuable once the prospect perceives the increase in likelihood of achievement, the decrease in time delay, and the decrease in effort and sacrifice.

Pro Tip: Logical vs Psychological Solutions

Most people try and solve problems using logical solutions. But the logical solutions have usually been tried. All that’s left are the psychological problems.

“Any fool can sell a product by offering it for a discount, it takes great marketing to sell the same product for a premium”

#1 Dream Outcome (Goal = Increase)

People have deep, unchanging desires. This is what marriages are lost over, wars are fought over, and people will willingly die for. Our goal is not to create desire. It’s to channel that desire through our offer. The dream outcome is the expression of feelings and experiences the prospect has envisioned. It’s the gap between their current reality and their dreams. Our goal is to accurately depict that dream to them, so they feel understood, and explain how our vehicle will get them there. The dream outcome is where the value gets enhanced or detracted.

Talk in terms of things your prospect believes will increase their status, and you will have your prospects drooling.

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

#2 Perceived Likelihood of Achievement (Goal = Increase)

People pay for certainty. They value certainty. I call this “the perceived likelihood of achievement.” In other words, “How likely do I believe it is that I will achieve the result I am looking for if I make this purchase?”

#3 Time Delay (Goal = Decrease)

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 the value/outcome, the more valuable your product/service 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.

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

People who experience a victory early on are more likely to continue with something than those who do not.

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.

#4 Effort & Sacrifice (Goal = Decrease)

Using the fitness versus liposuction example, let’s look at the difference in effort and sacrifice:

People who help others (with zero expectation) experience higher levels of fulfillment, live longer, and make more money.

Life hack: if you introduce something valuable to someone, they associate that value with you.

Convergent & Divergent Thinking:

Convergent problem solving is where you take lots of variables, all known, with unchanging conditions and converge on a singular answer. Think math.

Life will pay you for your ability to solve using a divergent thought process.

With divergent thinking, you can have multiple right answers, and one answer that is way more right than the others.

Value Offer:

Creating Your Grand Slam Offer Part I: Problems & Solutions

Step 1: Identify Dream Outcome

Step 2: List Problems

Think about what happens immediately before and after someone uses your product/service

Step 3: Solutions List

Transform our problems into solutions
Name these solutions

Value Offer: Creating Your Grand Slam Offer Part II: Trim & Stack

The second half of making an offer is breaking down tactically what to do/provide for the client.

The offer must be attractive and profitable. If this is your first Grand Slam Offer, it’s important to over-deliver like crazy. Make some sales, then think about how to make it easier for your clients. You want them to think to themselves, “I get all this, for only that?” In essence, you want them to perceive tremendous value. Everyone buys bargains, some people buy $100,000 things for $10,000.

Live by the mantra, “Create flow. Monetize flow. Then add friction.”

Generate demand first. Then, with the offer, get them to say yes. Once people are saying yes, then, and only then, add friction in marketing, or decide to offer less for the same price.

Practicality drives this practice. If you can’t get demand flowing in, then you have no idea whether what you have is good.

To business owners: 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.

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

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?
- (DIY) Do it themselves - figure out how to do it on their own
- (DWY) Do it with them - you teach them how to do it
- (DFY) Done for them - you do it for them
What environment or medium do I want to deliver it in?
- In-person
- Phone support
- Email support
- Text support
- Zoom support
- Chat support
How do I want them to consume it?
- Audio
- Video
- Written
How quickly do we want to reply?
- On what days?
- During what hours?
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?

Step 5: Trim & Stack

Having enumerated our potential solutions, there is a gigantic list. Next, look at the cost to me of providing these solutions. Remove the ones that are high cost and low value first. Then remove low cost, low value items.

If you aren’t sure what’s high value, 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 high value, “one to many” solutions.

Step #1: Determined client's dream outcome

Step #2: Listed all the likely obstacles (our opportunities for value)

Step #3: Listed those obstacles as solutions

Step #4: Investigated all the ways to deliver those solutions

Step #5a: Trimmed ways down to only 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 conviction that what you’re selling is one of a kind (very important)
Makes it impossible to compare your business or offering with the one down the street

We went through this entire process to accomplish one objective: create a differentiated offer. 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.

Now that we have our core offer, the next section will be dedicated to enhancing it.

Section IV: Enhancing Your Offer

Enhancing The Offer: Scarcity, Urgency, Bonuses, Guarantees, and Naming

Scarcity, urgency, bonuses, and guarantees are not the only persuasion tools. There are also commitment and consistency, status, peer pressure, goodwill, celebrity endorsements, competition, etc. However, scarcity, urgency, and bonuses are the only three I will be breaking down in this book as I believe they belong more with the “offer” and less with the actual “selling,” which I will talk about in depth in Acquisition: Volume IV $100M Sales.

The Delicate Dance of Desire

Fundamentally, all marketing exists to influence the supply and demand curve. We artificially increase the demand for our products and services through some sort of persuasive communication. When we increase the demand, we can sell more units. When we decrease supply, we can sell those units for more money. The “perfect profit combination” is lots of demand, and very little supply,

Enhancing your core offer is designed to 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).

Author Note: This assumes a regular business who is not trying to gain mass market penetration for some other strategic advantage.

Desire comes from not getting what you want.

Therefore, we only want things we don’t have. As soon as we have them, our desire disappears.

Therefore, if we seek to increase the demand (or desire), we must decrease or delay satisfying the desires of our prospects. We must sell fewer units than we otherwise can.

It’s worth noting that each of these prospects have a different buying threshold. In my experience, 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.

We must aim to keep supply (and satisfaction of desire) under the demand we can generate.

This maximizes profits and keeps desire ravenous. This is the real key to never going hungry.

Mastering supply and demand comes from the elegant dance between the two. If you sleep with your partner everyday they have less desire than if you haven’t slept with them for a week.

We want the ravenous prospect, not merely the aroused.

The next variable that can make your offer more desirable is how it is presented.

Use scarcity to lower supply. Raise prices and demand with perceived exclusiveness
Use urgency to increase demand by decreasing the action threshold of a prospect.
Use bonuses to increase demand (and increase perceived exclusivity).
Use guarantees to increase demand by reversing risk.
Use names to re-stimulate demand and expand awareness to my target audience.

Scarcity is one of the most powerful and least understood forces to unlock unlimited pricing power. If you want to learn how to sell air for millions of dollars, then pay attention. The reason an authority (like a doctor), a celebrity (like Oprah), or a celebrity authority (like Dr.Oz or Dr.Phil) can charge egregious rates is because of implied demand. People assume that there is a lot of demand for their time, and, therefore, not a big supply of it. As a result, it must be expensive.

If I have a rare problem, and I must solve this problem for my own pursuit of happiness, it will consume all of my attention.

By the nature of my problem being specialized, there will be very few people who can solve it. This means there is not a large supply of solvers. In many cases, I will perceive only one possible “solver” (Supply = 1).

Beyond that, if solving this problem speeds up my achievement of a goal by a year or two, or immediately results in me making hundreds of thousands of dollars, or millions of dollars, that solution becomes far more valuable,

So there are two components to the value:

Rarity
Value provided

Specialized consultants are paid millions of dollars to solve problems worth tens of millions to clients. The client pays for all the experience and expertise the expert has and avoids the cost of errors (time and money).

That’s how these guys can charge so much . . . because they don’t need it. The person who needs the exchange less always has the upper hand.

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 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.

The idea that you can never get it again makes it more desirable.

Humans are far more motivated to take action to hoard a scarce resource than they are to act on something that could help them.

Three Types of Scarcity

Limited Supply of Seats/Slots: in general or over X period of time.
Limited Supply of Bonuses
Never available again.

But how do you use this properly without being phony? Some real world examples:

Physical Products

Having limited releases is a tried and true method using psychological bias to your advantage.

You can have limited releases for flavors, colors, designs, sizes, etc.

Important point: to properly utilize this method you should always sell out.

Here’s why: it’s better to sell out consistently than over order and fail at creating that scarcity. This method stacks in effectiveness if it is done repeatedly over time (just not too often). Once a month seems to be the sweet spot for most of the companies that I know who do this with regularity.

Second Important Note: 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.

Services

With services, especially if you want to consistently get customers, it can be a little trickier to use scarcity.

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.

a) 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 have used this method since the beginning of my business. 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.”

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. Pairing them with clear scarcity or fixed amounts, seats, or spots will rapidly drive up the demand. Always remember 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.

Honest Scarcity (The Most Ethical Scarcity) The easiest scarcity strategy is honesty. Right now, you probably couldn't handle 1,000 clients tomorrow. How many could you handle? 5? 10? 25? Well, you might as well define a number 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 will move people over the edge to buying from you. Scarcity 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.

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. 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).

Pro Tip - Once You’re Out, You Can Never Come Back You can create scarcity by also capping your service level and saying that if they leave than can never return. This type of scarcity makes people think extra hard about leaving. I started doing this with my gyms early on. Then I was in a mastermind that employed this. Then I started using it in my higher level of Gym Lords.

This works best with small groups. As groups become much bigger, the tactic loses teeth.

Enhancing The Offer: Urgency

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.

Frequently, scarcity and urgency are used together.

Alex’s 4 favorite ethical urgency tactics:

1) Rolling Cohorts

2) Rolling Seasonal Urgency

3) Promotional or Pricing Urgency

4) Exploding Opportunity

1) 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.”

If you wanted to juice it up a little bit, you could say: “I actually had a client who signed up a few weeks ago drop out, so I have an opening for our next cohort that kicks off on Monday. If you are pretty sure you’re gonna do this sooner or later, might as well get in on it now so you can start reaping the rewards sooner rather than paying the same and waiting.”

Those two tweaks above have pushed so many sales over the edge by just reminding a potential customer that if they sign up, they will be starting on Monday, and if they do not, they will have to wait a week. It’s small things like this that nudge people to take the action they know they should take anyways.

Obviously the less frequently you kick off new customers, the more powerful this is.

Just like guarantees, there is always a fear that you will make less money by employing this strategy. Fear that we will lose sales we would have otherwise made. Every experienced marketer will tell you - it is an unfounded fear.

The biggest sales on a week-long campaign or launch happen in the last 4 hours of the last day (up to 50-60%). That means that the last 3% of the time allotted creates 50-60% of the sales...that’s completely illogical, and unmistakably human.

So, just like a guarantee, you will make more money from the many people who decided to take action than people who missed out because in reality, those people were never going to buy

What to do if you just started a cohort and someone wants to buy.

You have two options:

1) You can offer them a speedy personalized onboarding to get them up to speed as a “bonus” for signing up today and still get them in. Or, my preference,

2) You can explain to them that since the next group starts in a little, they will have the advantage of having more time to review the materials, talk to their employees (for b2b products) or family members ( for b2c products). On top of that, they can have a more extended payment plan that you can only make available to them since the start date is so far out . . . an advantage that most clients do not get. In the end, remember, you always have the advantage because you are the one who calls the shots.

2) 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.

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.

Pro Tip - Local Businesses: This is my number one strategy for local businesses. They must vary their marketing more frequently than national advertisers. Putting a new wrapper with a date on the same core service gives you urgency and novelty that will consistently outperform the “same old” campaigns.

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 (kind of brilliant!).

It allows businesses that sell clients year round to still use urgency.

For example, “Yes, let’s get you started today so you can take advantage of the discount you came in for. I’m not sure how long we will be running it as we change them every 4 weeks or so, and this is one of the better ones we have run in a while.”

This creates some fear of missing out on the promotion (or discount or bonuses), rather than your actual service.

It would be a lie to say that if you own a roofing business you won’t service them if they buy after the date. But, 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.

Pro Tip - Clean Your Pipeline With Every Price Change: If you ever really are planning on raising your prices (hopefully soon if you are reading this book!) then 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.

4) 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.

Example: If I was explaining an arbitrage opportunity between buying products on ebay and selling them on amazon, this market inefficiency would over time correct itself.

The sooner someone acts the better it will be for them. This could be true for selling someone on the opportunity of trading crypto currencies, buying a stock, getting into a new platform to advertise before competitors jump on the bandwagon. Highly competitive job environments often get job offers that are “exploding offers” everyday they wait to take the job, their pay or bonuses decrease.

This forces prospects to make fast decisions rather than wait to see if they get a better offer.

Enhancing The Offer: Bonuses

What to offer, how to pick them, how to value them, how to present them, how to price them.

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 (see image). The entirety of our offer we came up with at the end of the last section. 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.

They would not use these techniques unless they were effective, as every second of air time costs money and must be justified with ROI. You’ll also notice that if you watch those old infomercials, they would sell one knife for $38.95 then include 37 other knives, sharpeners, pans, and guarantees to beat the prospect into submission. 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 and we snap the rubber band in their mind that is holding their wallet in their pocket.

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 vs Group Selling There are key differences between pitching to a group versus a single person. Group selling is beyond the scope of this book. But I want to at least address when a bonus would be brought up in a 1-1 selling scenario. 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. Don’t feel weird about asking 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.

If you recall from our “Trim and Stack” chapter, each of those deliverables is now being weaponized and presented at the perfect time. We’re going to provide all these bonuses to them anyways, but it increases the perception of our offer’s value by layering these bonuses one at a time.

Bonus Bullets

There are a few key things to remember when offering bonuses:

1. Always offer them

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 (stat, past client, or personal experience) to prove this thing is valuable

5. Paint a vivid idea of their life imagining they 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 (effort & time are lower; value is higher)

8. Each should address an obstacle in the prospect’s mind about why they won’t be successful

9. This may be the next logical obstacle. 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. Enhance the value of bonuses by adding scarcity and urgency to the bonuses themselves

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. As long as they are not direct competitors, you can get some brownie points, secure some future referral IOUs, and make your offer more valuable at the same time. If you secure enough of these relationships, you can justify your entire price in the savings and additional true-to-price bonuses.

Negotiate a group discount and a commission to yourself. This is exactly what we did with our supplement company. Our gym owner clients who use our sister supplement company Prestige Labs sponsored athletes get a 30% discount on our products, on top of that, the sponsored athlete gets paid 40% of all sales netted after the applied discount. So it’s a win-win for everyone. Their clients get it for 30% less than our main site. They get paid for giving away exclusive discounts. And we get customers in exchange for the commission paid. Everyone wins.

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 takes 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 cost time or money to create, but can be given away endless time is a perfect fit for a bonus.
Beyond that, record every workshop, webinar, event, interview and use them as additional bonuses
Proactively 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).

The longer you are in business the more of these bonus assets you will have at your disposal.

All of these things are valuable. Put them in a vault and keep them in your back pocket to sprinkle into an offer to get the deal closed.

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.

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. Many times you have so much “stuff” you will be providing your customers (good thing) that valuable nuggets can get lost in the mix. You want to take the most distinct ones that can almost stand on their own and pull those out to highlight them. This is especially true for things that are short in length but high in quality or value. Checklists or infographics can condense a lot of information into a small space. Someone might not feel justified paying lots of money for a product launch map (for example) but as a bonus would be perceived as very valuable.

Enhancing The Offer: Guarantees

The single greatest objection for any product or service being sold is 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.

How much more attractive can a guarantee make an offer? Jason Fladlien once stated that he had seen the conversion on an offer 2-4x simply by changing the quality of the guarantee.

Four types of guarantees:

Unconditional
Conditional
Anti-Guarantee
Implied Guarantees

Always hit your guarantee hard even if you don't have one. Say it boldly and give the reason.

But won’t people take advantage of a crazy guarantee? – Sometimes, but not usually.

Warning: While guarantees can be effective sellers, people who buy because of guarantees can become shitty customers. A person who only buys because of a guarantee is a person who may not be willing to put in the work necessary to see success with your product or service.

To reverse risk and get customers the best outcome, tie your guarantee to the things they need to do to be successful.

Pro Tip: High Cost Services Warning If you have a tremendous amount of cost associated with your product or service, you likely want to employ a conditional guarantee or an ANTI guarantee, as you will have to eat the cost of the refund AND the cost of fulfilling.

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, 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
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.
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. Revshare, profitshare, 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.

Wording: I heard Jason Fladlien, who I referenced earlier, pitch his unconditional guarantee on a webinar and I thought it was unbelievable. These are 100% his words and not my own. I take no credit for this but have included it for completeness.

“I’m not asking you to decide yes or no today...I'm asking you to make a fully informed decision, that is all. The only way you can make a fully informed decision is on the inside, not the outside. So you get on the inside and see if everything we say on this webinar is true and valuable to you. Then, if it is, that’s when you decide to keep it. If it’s not for you, no hard feelings. You will then, after signing up at URL be able to make a fully informed decision that this isn’t for you. But you can’t make this decision right now for the same reason you don't buy a house without first looking at the inside of it. And know this...whether it’s 29 min or 29 days from now...if you ain’t happy, I ain’t happy. For any reason whatsoever, if you want your money back you can get it because I only want to keep your money if you’re happy. All you have to do is go to support@xyz.com and tell use “gimme my money” and you got it, and in short order - our response times to any support request average 61min over a 24/7 time period. You can only make such a guarantee when you're confident that what you have is the real deal and I'm fairly confident that when you sign up at URL you’re getting exactly what you need to BENEFIT.”

Pro Tip: Name Your Guarantee Something Cool

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 #2 (Great): You’ll get our famous “Club a Baby Seal Guarantee”After 30 days of using our services, if you wouldn’t club a baby seal to stay on as a customer, you don’t have to pay a penny.

Pro Tip: Unconditional vs Conditional Based on Business Type Bigger broader guarantees work better with lower ticket B2C businesses (many people just won't bother taking the time). The higher the ticket, and the more business oriented it is, the more you want to steer towards specific guarantees.

[Conditional] Outsized Refund Guarantee:

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.

This 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:

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, CD showing up to workouts, weighing in, reporting data, etc.

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.

[Conditional] Modified Service Guarantee:

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.

[Conditional] Credit-based Guarantee:

Client Gets: You give them back what they paid in a credit towards any service you offer.

My Take: This is best used during an upsell process to seal the deal on a service they are unsure they will like.

They already like what they have, you are trying to sell them more of that. Worst case, they can apply it to the thing they already like. So it maintains goodwill with the customer.

[Conditional] Personal Service Guarantee:

Client Gets: You work with them one-on-one, free of charge, until they reach X objective or result.

My Take: This is absolutely one of the strongest guarantees in existence. It’s like a service guarantee on crack. You will definitely want to add conditions, though: they must respond back in twenty-four hours, they must use the products you tell them to, they must XYZ. Only if they do that, will you keep working with them one-on-one.

This is especially powerful as you scale and become more edified as a business owner. Can you imagine one of my sales people saying, “Alex will personally work with you until your offer converts”? Right. It would work. It would also be a nightmare. So I would probably put contingencies like, “Provided you've already spent $10,000 on your existing offer using our structure, the offer you ran was for lead generation, and it was a free offer. These are things that would make it unlikely they would not succeed. If for some reason they hadn’t with those stipulations in place, I could probably fix their problem in ten minutes just looking at it.

[Conditional] Hotel + Airfare Perks Guarantee:

Client Gets: If you don't receive value, we will reimburse your product and your hotel + airfare.

My Take: This is technically a “refund of ancillary costs” from our first example. I just love it a lot for workshops and in-person experiences. Normally the event would cost more than the hotel and airfare, so it's like adding an extra $1000 to a guarantee but way more tangible. It’s original enough that people like it.

[Conditional] Wage-Payment Guarantee:

Client Gets: You offer to pay their hourly rate, whatever that may be, if they don’t find your call/session with them valuable.

My Take: This is also an ancillary cost guarantee, just a very original one. If someone ever actually asks for the wage payment, just ask them for their tax return and divide it by 1,960 (number of working hours at 40hrs/wk for a year). But no one asking for a refund will actually do that, so you will never actually have to give one of these out. Like ever.

[Conditional] Release of Service Guarantee:

Client Gets: You let them out of their contract free of charge.

My Take: This voids a commitment or cancellation fee. If you have a business that has enforceable commitments, contracts or clauses, this can be a powerful guarantee. Better yet, if you are in a business that does not enforce your contracts, then you have nothing to lose by adding the guarantee.

[Conditional] Delayed Second Payment Guarantee:

Client Gets: You won’t bill them again until after they make or get their first outcome.

My Take: I like this a lot, especially if you have a very systematized process for getting the first result. It gets the prospect thinking in fast action terms and gets them moving. It will also focus your team on activating your client. This is a great one when you know what metric or action drives activation.

[Conditional] First Outcome Guarantee:

Client Gets: You continue to pay their ancillary costs (ad spend, hotel, etc) until they reach their first outcome.

My Take: Just like the delayed second payment, just centered around a different cost.

[Anti-Guarantee] All Sales Are Final:

Client Gets: Access to super exclusive very valuable service/product. Likely, this is a very powerful thing that once seen cannot be unseen, or once used cannot be taken away. Example: a line of code to improve your checkout experience on a website. Once someone received this code, they could try and use it without paying you. Things that are very valuable but incredibly easy to steal after they’ve been seen/understood.

My Take: This can enhance the persuasiveness of the sale and the value of the product or service. It essentially implies that the client is going to use it and see an immense benefit thereby exposing the business to vulnerability. Lean into the fact this thing works so well, and is so easy to copy, you must make all sales final. The more you can show real exposure, the more effective this will be.

Anti-guarantees can also work very well with high ticket products and services that require a lot of work or customization. “If you're the type of customer who needs a guarantee before taking a jump, then you are not the type of person we want to work with. We want motivated self-starters who can follow instructions and are not looking for a way out before they even begin. If you are not serious, don’t buy it. But if you are, boy are you going to make a killing.

Implied Guarantees: Performance Models, Revshares, and Profit-Sharing:

Client Gets: If you do not perform, they do not have to pay. If you perform, your compensation has been determined based on an agreement decided upon before you begin working.

My Take: Performance, Revshare, and Profit-shares aren’t guarantees “per se”, but for all intents and purposes, they are. There is an implied guarantee whenever you enter into a revshare or performance partnership: if you dont make money, you don't have to pay me. In my opinion, this is one of, if not THE most desirable setup. First because it makes you accountable to your clients' results. Second, it weeds out low performers. The drawbacks are tracking and collection. So if you can find a way around that...you’ve hit a gold mine.

You can also pair a revshare or performance setup with a minimum. It would be like saying “we get the greater of $1000 or 10% of revenue generated.”

Or saying we get $1000/mo for the first 3 months, then after that, it switches to 100% performance.

These types of offers work well when you have quantifiable outcomes. The stronger, of course, is no guaranteed payment without performance.

Create Your Own Winning Guarantee:

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.

That being said, 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.

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.

Now all we have to do is put a bow on this puppy and actually name it. Naming an offer correctly determines how well your advertising converts, how big of a response you get from outbound emails/cold calls/texts, and how many inbound responses you get from organic comments.

Enhancing The Offer: Naming:

Having a Grand Slam Offer will not make you money if no one finds out about it.

Over time, offers fatigue. And in local markets, they fatigue even faster. Why? In a local market, it costs relatively little to reach an entire population.

Important disclaimer: reaching an audience one time in no way means an offer is fatigued.

Most people don’t even notice an offer on the first mention.

That’s why you need to create new creative (videos, images) and new hooks, stories, and copy around the same offers. You can still use offers for a long time. But when we’re talking about years of use, not months, offers can eventually fatigue.

Over time you can rename the offer to refresh it. This one concept will get you leads forever. I mean it. So pay attention. We are not changing the actual offer. We are only changing the wrapping paper.

Here’s the simplest formula I’ve come up with for this process:

Important Note: Not all these components are mandatory. You will typically use three to five of them in naming a program or service.

Important Note: Not all these components are mandatory. You will typically use three to five of them in naming a program or service. If you can fit them all in, great, but it’s likely the name will become too long. The shorter and punchier the better. So it's a balance between brevity and specificity. The only way to really know what works is to write the names out and test them.

Author Note: Marketing Theory

If you like understanding the concepts behind my chosen M-A-G-I-C formula. Each roughly translates to: Attention (M-Magnet), Discrimination (A-Avatar), Purpose (G-Goal), Timeline (I-Interval), and Method (C-Container).

Pro Tip: Find Time To Rhyme

Pro Tip: Alliteration

Furthermore, you don't need to do them in the M-A-G-I-C order.

Now that you have several working names for your offer, you can use two to three of your best names in your advertising campaign.

Quickly note the winner, then use that as a control to test against with new names.

Pro Tip - Name Sub Items & Bonuses

What Happens When Offers Fatigue:

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)

Once you’ve monetized an offer, rarely should you change it. Just rinse and repeat over and over and over again. This can be hard because we are entrepreneurs and love change. Change here usually just creates inefficiency and operational drag, costing you money. No bueno.

Author Note - Marketing Local Businesses

Ironically, local business marketing is both easier and harder than national level marketing. It’s easier to get to work, but harder to keep working or scale. And the reason is - in local markets, it’s easier because there’ is trust in the familiar. So selling in- person at higher prices in a local market is inherently easier. It means you will convert a much higher percentage of your leads. This makes marketing work most of the time. The downside of local marketing is that offers fatigue rapidly because there is only a limited radius that a local business can serve. To reference an earlier concept, the TAM (total addressable market) for a brick & mortar is only its immediate radius (most times). So by extension, the smaller the radius, the faster offers fatigue. This is the double-edged sword of local. Learning to rapidly variate my offers, headlines, and creative when I had my local businesses was a cornerstone skill that made my expansion to national level advertising much easier for me. So if you are in a local market, just remember you aren’t going to change the value stack of your offer. You are just going to change the way it looks to the marketplace in your marketing.

Section V: Execution How To Make This Happen In The Real World

Entrepreneurship is about acquiring skills, beliefs, and character traits. To advance, I find that we must determine which skills, beliefs, and character traits we lack. Most times, we simply need to improve. And the only way to do that is through learning from experience and/or high quality sources.