WEBVTT

1
00:00:00.000 --> 00:00:04.280
Hey guys, welcome to the special collaboration between the game podcast and

2
00:00:04.280 --> 00:00:08.560
$100 million offers the audio book. Today we're gonna talk about offer

3
00:00:08.560 --> 00:00:13.520
enhancers, specifically scarcity and urgency. First off, the difference between

4
00:00:13.520 --> 00:00:18.000
the two. Second off, the ethical ways of using them in business and the unethical

5
00:00:18.000 --> 00:00:21.120
ways of using it, which I highly don't recommend long-term. You'll lose money.

6
00:00:21.120 --> 00:00:24.440
So definitely use the right way and make more money. That seems like the best

7
00:00:24.440 --> 00:00:28.920
thing to do. I hope you guys enjoy and hey if this podcast has been useful to you,

8
00:00:28.920 --> 00:00:34.520
share it with a friend. You know, I took a year to write this book and it took me

9
00:00:34.520 --> 00:00:39.920
two days to record this audio book for you guys. If it takes you 15 seconds to

10
00:00:39.920 --> 00:00:43.280
click share on this and send it to a friend or share it on your stories, it

11
00:00:43.280 --> 00:00:48.080
would mean the world to me and it might even mean the world to someone else.

12
00:00:49.080 --> 00:00:55.120
Section four, enhancing your offer. Scarcity, urgency, bonuses, guarantees and

13
00:00:55.120 --> 00:00:59.120
naming. But wait, there's more. If you order today, every

14
00:00:59.120 --> 00:01:04.160
informational in the 90s. May 2019 Arnold Schwarzenegger's home after school

15
00:01:04.160 --> 00:01:08.480
All Stars fundraiser. The line of cars outside Arnold's house was around the

16
00:01:08.480 --> 00:01:12.360
corner and we were in one of them. We were sitting in our Uber when a security

17
00:01:12.360 --> 00:01:15.800
guard with an earpiece, black suit and black sunglasses knocked on the driver's

18
00:01:15.800 --> 00:01:19.400
window. It was like straight out of a movie. The driver rolled down the

19
00:01:19.400 --> 00:01:24.640
window, name Alex and Layla Hermozzi. He scanned the list on his clipboard,

20
00:01:24.920 --> 00:01:29.720
nodded, then checked off our names. Great, he said, his demeanor transformed

21
00:01:29.760 --> 00:01:33.480
from stern to inviting. Welcome to the fundraiser. Stay in this line. You'll

22
00:01:33.480 --> 00:01:36.640
make a left, then security will escort you the rest of the way. The security

23
00:01:36.640 --> 00:01:40.000
guard talked into his walkie talkie to the next post down the road, signalling

24
00:01:40.000 --> 00:01:44.480
our car was approved. Pulling in front of the estate was like entering a bond

25
00:01:44.480 --> 00:01:48.480
movie, Lamborghini's, Bugatti's, Ferraris and brands of cars that are too

26
00:01:48.480 --> 00:01:52.840
expensive to even speak of. Old guys with young, scanally clad girls, a list

27
00:01:52.840 --> 00:01:55.800
of actors, celebrities with millions of followers who were recording themselves

28
00:01:55.800 --> 00:02:00.280
as they arrived, talking to their iPhones to their audiences and us. The

29
00:02:00.280 --> 00:02:05.040
fundraiser was 25,000 per ticket to attend with an inviolest of only 100. There

30
00:02:05.040 --> 00:02:09.000
was a red carpet and all. Every year, the fundraiser culminated in a big

31
00:02:09.000 --> 00:02:12.480
auction for memorabilia and items, some of the business owners in the audience

32
00:02:12.480 --> 00:02:16.280
gave away for charity. We walked around looking at the entertainment stations

33
00:02:16.280 --> 00:02:20.720
purposely devised to get donors in the giving mode. We saw $10,000 scotches,

34
00:02:20.720 --> 00:02:24.200
$500 cigars, pre-released items from major brands that wouldn't be

35
00:02:24.200 --> 00:02:27.880
available to the public until months later. And of course, the most expensive

36
00:02:27.880 --> 00:02:31.720
cuisine you could imagine. Laylin and I were just soaking it all in. It was a

37
00:02:31.720 --> 00:02:35.760
wonderful night. We definitely felt like cool kids. Ben, the CEO of the charity,

38
00:02:35.760 --> 00:02:39.720
saw us looking lost and walked over. He took me by the arm and introduced me to

39
00:02:39.720 --> 00:02:43.000
some of the other donors. These were all men who were older than me, donating

40
00:02:43.000 --> 00:02:46.840
$100,000 and up without a second thought. The man he introduced me to was one of

41
00:02:46.880 --> 00:02:50.400
the charity's biggest donors. He had built an ultra high in jewelry and watch

42
00:02:50.400 --> 00:02:55.320
business. I'm talking $100,500, $2 million plus rare status symbols that people

43
00:02:55.320 --> 00:03:01.640
buy, only so other 0.001%ers know they belong. He had donated upwards of 700,000

44
00:03:01.640 --> 00:03:05.760
in merchandise as prizes for the fundraiser that evening. Alex and Layla meet

45
00:03:05.760 --> 00:03:09.280
George, Ben said. He's been very generous with his time and money to the

46
00:03:09.280 --> 00:03:12.600
cause. George, this is Alex and Layla. They're donating a million dollars

47
00:03:12.600 --> 00:03:15.640
tonight to afterschool starts. I figured you are both good people and wanted

48
00:03:15.640 --> 00:03:21.280
to connect you to. Nice to meet you. George said with calm and weathered eyes. He

49
00:03:21.280 --> 00:03:25.880
was in his late 60s tall and sturdily built. Here's Eastern block origins in his

50
00:03:25.880 --> 00:03:29.360
accent. He sounded like a man who had fought tooth and nail to be here, but had

51
00:03:29.360 --> 00:03:33.040
softened his demeanor for gathering such as these. But the tiger with the teeth

52
00:03:33.040 --> 00:03:36.040
and claws remained under the surface ready to be called upon at a moment's

53
00:03:36.040 --> 00:03:41.080
notice. I felt like I understood this guy. Ben broke the ice. So George was the

54
00:03:41.080 --> 00:03:45.320
one who got me to raise the price from 15,000 particular to 25,000 dollars. We

55
00:03:45.320 --> 00:03:48.400
had more demand than ever this year, but I took his advice. I cut the amount of

56
00:03:48.400 --> 00:03:52.840
tickets we sold and raised the prices. That's right. George said content that his

57
00:03:52.840 --> 00:03:57.080
stage business advice had been followed when demand increases cut supply. He

58
00:03:57.080 --> 00:04:00.360
perked up slightly as we started talking about money. This man had built his

59
00:04:00.360 --> 00:04:03.000
business from nothing and had found ways to sell things for extraordinary

60
00:04:03.000 --> 00:04:07.040
profits by understanding human psychology. I had long learned about supply and

61
00:04:07.080 --> 00:04:10.600
demand, but this guy was using its psychological underpinnings to fuel a

62
00:04:10.600 --> 00:04:14.200
fundraising. You could take the tiger out of the jungle, but not the jungle out

63
00:04:14.200 --> 00:04:18.880
of the tiger. People want what they can't have. People want what other people

64
00:04:18.880 --> 00:04:23.480
want. People want things only a select few have access to. He was dead right.

65
00:04:23.480 --> 00:04:27.520
They had raised an extra one million dollars that night before the event

66
00:04:27.520 --> 00:04:31.560
had even started by cutting the supply of tickets and raising the prices. On top

67
00:04:31.560 --> 00:04:35.280
of that, all the people were more qualified than ever to be big donors. The

68
00:04:35.280 --> 00:04:37.680
night ended being of the most successful night in the charity's history,

69
00:04:37.680 --> 00:04:43.920
raising nearly $5.4 million from only 100 people. That's $5,400 ahead. Each of

70
00:04:43.920 --> 00:04:47.920
the items was auctioned off as a one-of-a-kind item. And if you missed it, you

71
00:04:47.920 --> 00:04:51.400
never have a chance to buy it again. Aren't we even threw in some bonuses when

72
00:04:51.400 --> 00:04:53.960
two people would get high enough in the bidding, allowing the charity to get

73
00:04:53.960 --> 00:04:57.800
both donations? It was a masterful display of human psychology at work in a

74
00:04:57.800 --> 00:05:01.240
setting where people knowingly overpaid for products. The products remained

75
00:05:01.240 --> 00:05:05.000
unchanged, yet within this setting, an item that wouldn't sell at a different

76
00:05:05.000 --> 00:05:10.120
venue for $10,000 sold for $100,000. That's how powerful scarcity, urgency, and

77
00:05:10.120 --> 00:05:13.520
bonuses are. And breaking down how to use them to further increase demand for

78
00:05:13.520 --> 00:05:16.360
your offer without changing your offer is the purpose of this section.

79
00:05:16.360 --> 00:05:22.560
Author note. Other persuasion powers apply. Scarsity, urgency, bonuses, and

80
00:05:22.560 --> 00:05:25.480
guarantees were not the only persuasion tools being employed to get

81
00:05:25.480 --> 00:05:28.520
egregious prices at the fundraiser. They also use commitment and

82
00:05:28.520 --> 00:05:31.880
consistency, status, peer pressure, goodwill, celebrity endorsements,

83
00:05:31.880 --> 00:05:35.520
competition, et cetera. However, scarcity, urgency, bonuses, and guarantees

84
00:05:35.520 --> 00:05:38.280
are the four that I'll be breaking down in this book, as I believe they're the

85
00:05:38.280 --> 00:05:41.280
ones that belong with the offer and less with the actual selling, which I will

86
00:05:41.280 --> 00:05:45.560
talk about more in depth in acquisition volume four, $100 million sales. The

87
00:05:45.560 --> 00:05:46.560
delicate dance of desire.

88
00:05:47.800 --> 00:05:51.880
Pictured in the book is a supply and demand curve. Fundamentally, all marketing

89
00:05:51.880 --> 00:05:55.200
exists to influence the supply and demand curve. We artificially increase the

90
00:05:55.200 --> 00:05:57.760
demand for our products and services through some sort of persuasive

91
00:05:57.800 --> 00:06:01.960
communication. When we increase the demand, we can sell more units. When we

92
00:06:01.960 --> 00:06:06.080
decrease the supply, we can sell those units for more money. The perfect profit

93
00:06:06.080 --> 00:06:10.880
combination is lots of demand and very little supply or perceived supply. The

94
00:06:10.880 --> 00:06:14.680
process of enhancing your offer is designed to both of these things. Increased

95
00:06:14.680 --> 00:06:18.480
demand and decreased perceived supply. So you can sell the same products for more

96
00:06:18.480 --> 00:06:21.600
money than you otherwise could and in higher volumes than you otherwise would

97
00:06:22.040 --> 00:06:25.840
over a long enough time horizon. The new supply demand curve. Pictured in the

98
00:06:25.840 --> 00:06:30.480
book is the curve that has been shifted to the right by bonuses, scarcity,

99
00:06:30.480 --> 00:06:34.560
urgency, guarantees, and naming so that you can get more units sold at higher

100
00:06:34.560 --> 00:06:38.640
prices. Author note, this assumes a regular business who is not trying to gain

101
00:06:38.640 --> 00:06:41.200
mass market penetration for some other strategic advantage.

102
00:06:42.480 --> 00:06:46.400
Desire comes from not getting what you want. In fact, I heard this quote that I

103
00:06:46.400 --> 00:06:50.040
love from Naval Robocon. Desires a contract you make with yourself to be

104
00:06:50.040 --> 00:06:53.560
unhappy until you get what you want. It follows, therefore, that we only want

105
00:06:53.560 --> 00:06:57.560
things we do not have. As soon as we have them, our desire for them disappears.

106
00:06:57.560 --> 00:07:01.560
Therefore, if we seek to increase the demand or desire, we must decrease or

107
00:07:01.560 --> 00:07:05.560
delay satisfying the desires of our prospect. We must sell fewer units than we

108
00:07:05.560 --> 00:07:10.600
otherwise can. Let that sit with you for a second. Consider this example. We

109
00:07:10.600 --> 00:07:14.200
promote some two-day workshop that is upcoming. First, we whisper that it's

110
00:07:14.200 --> 00:07:17.800
coming, then we tease it with some benefits, then we shout that it's launching

111
00:07:17.800 --> 00:07:21.960
in a week. Then, when we launch this amazing workshop, we have two supply

112
00:07:21.960 --> 00:07:27.240
demands scenarios. Scenario 1. We sell 10 units at $500 each. Sell the entire

113
00:07:27.240 --> 00:07:31.800
pyramid of demand at a price that everyone says yes to. Scenario 2. We sell

114
00:07:31.800 --> 00:07:36.600
two one-day workshops, 101 for $5,000 each. We skim the top of that pyramid

115
00:07:36.600 --> 00:07:39.560
with 80% of people not being able to purchase or choosing not to.

116
00:07:40.280 --> 00:07:43.640
It's worth noting that each of these prospects have different buying thresholds.

117
00:07:43.640 --> 00:07:48.040
In my experience, demand for services is nonlinear. Instead, I found a man to be

118
00:07:48.120 --> 00:07:52.920
fractal, aka 80-20. In other words, one fifth of prospects are willing to pay

119
00:07:52.920 --> 00:07:57.000
five times the price or more. In the example, I might have 10 people willing to

120
00:07:57.000 --> 00:08:01.400
pay $500, but two of them willing to pay $5,000. So it would make more, have

121
00:08:01.400 --> 00:08:05.240
lower costs, aka more profits, provide more value, and increase the demand in

122
00:08:05.240 --> 00:08:08.760
the remaining prospect base by selling fewer units. Think about how

123
00:08:08.760 --> 00:08:12.840
exclusive Scenario 1 versus Scenario 2 would feel. Think about all the people

124
00:08:12.840 --> 00:08:16.600
who would want to purchase but would not be able to. Would this increase or

125
00:08:16.680 --> 00:08:21.720
decrease their desire? It would increase it, of course. On top of that, if people see that

126
00:08:21.720 --> 00:08:26.120
others who were able to get in or loving it, it would further increase their desire.

127
00:08:26.120 --> 00:08:29.880
And the next time, they would act with more urgency and be willing to pay more for

128
00:08:29.880 --> 00:08:34.280
the same thing than they originally did. So now, in the aftermath of our second scenario,

129
00:08:34.280 --> 00:08:38.360
we would still have eight people who have unsatisfied desire. This increases their

130
00:08:38.360 --> 00:08:42.520
desire further. And to boot, we now have new prospects who weren't in the original pool,

131
00:08:42.600 --> 00:08:47.720
and now want all we have. The next time we promote Scenario 2, we then open up three spots

132
00:08:47.720 --> 00:08:52.600
at the same price and sell them all, still leaving some prospects with pent-up demand.

133
00:08:52.600 --> 00:08:58.520
This is a continuous theme. Conversely, if we were to promote Scenario 1 again, the $500

134
00:08:58.520 --> 00:09:03.240
price point, we would probably sell fewer slots the second time around. Why? We have no pent-up

135
00:09:03.240 --> 00:09:08.280
demand. All desire has been fulfilled. When you, quote, pull the trigger too early, each

136
00:09:08.280 --> 00:09:12.280
successive instance we promote, we sell even fewer. Eventually, we run out of sufficient

137
00:09:12.280 --> 00:09:17.000
demand to even make a single sale. This is the sad state many businesses find themselves in,

138
00:09:17.000 --> 00:09:19.880
always trying to generate more demand to make another quick sale.

139
00:09:19.880 --> 00:09:25.320
Promosy law. The longer you delay the ask, the bigger the ask you can make. The longer the runway,

140
00:09:25.320 --> 00:09:29.880
the bigger the plane that can take off. We must endeavor to keep our supply and satisfaction

141
00:09:29.880 --> 00:09:35.160
of desire under the demand that we are able to generate. This maximizes profits and keeps desire

142
00:09:35.240 --> 00:09:38.840
ravenous in our customer base. This is the real key to never going hungry.

143
00:09:39.560 --> 00:09:44.600
Summary points. The reason I titled this subsection, delicate dance of desire, is that supply and

144
00:09:44.600 --> 00:09:50.520
demand are inversely correlated in theory. If you satisfy zero desire, aka provide zero supply,

145
00:09:50.520 --> 00:09:55.080
you will not make money, and eventually people will leave feeling rejected. No, it takes much

146
00:09:55.080 --> 00:10:00.040
longer than you think. Conversely, if you satisfy all the demand, you will kill your golden goose

147
00:10:00.040 --> 00:10:03.720
and not know where your next meal will come from. Mastering supply and demand comes from the

148
00:10:03.720 --> 00:10:08.600
elegant dance between the two. If you sleep with your significant other every day, they have less

149
00:10:08.600 --> 00:10:13.080
desire than if you haven't slept with them for a week. We want the ravenous prospect, not merely

150
00:10:13.080 --> 00:10:18.120
the aroused. Therefore, understanding the interplay between these variables is key to enhancing

151
00:10:18.120 --> 00:10:22.840
the offer and the amount of profits you will make over time. Up to this point, we have covered all

152
00:10:22.840 --> 00:10:27.080
the things inside of your offer that can make it immune to price comparison and transform regular

153
00:10:27.080 --> 00:10:31.880
services and products into things that people will find a way to pay for. It would follow that

154
00:10:31.880 --> 00:10:36.440
the next variable that can make your offer more desirable is how it is presented. In other words,

155
00:10:36.440 --> 00:10:41.640
the outside variables that position the product in your prospect's mind. These forces are often

156
00:10:41.640 --> 00:10:46.920
more powerful than your core offer. In the next section, enhancing your offer, I will show you how I,

157
00:10:46.920 --> 00:10:52.040
one, use scarcity to decrease supply to raise prices and indirectly increase demand through

158
00:10:52.040 --> 00:10:57.640
perceived exclusiveness. Two, use urgency to increase demand by decreasing the action threshold

159
00:10:57.720 --> 00:11:03.240
of a prospect. Three, use bonuses to increase demand and increase perceived exclusivity.

160
00:11:04.040 --> 00:11:09.320
Four, use guarantees to increase demand by reversing risk. Five, use names to re-stimulate

161
00:11:09.320 --> 00:11:14.840
demand and expand awareness of my offer to my target audience. I will define each and give you

162
00:11:14.840 --> 00:11:18.760
examples on how to use them. We will use all of these variables to enhance our offer and

163
00:11:18.760 --> 00:11:23.800
shift the demand curve in our favor, leaving our customers always wanting for more. We will start

164
00:11:23.800 --> 00:11:28.520
by tactically stimulating fear of missing out aka FOMO through scarcity.

165
00:11:53.800 --> 00:11:55.800
Out on Amazon, if not, keep an enjoying.

166
00:12:23.800 --> 00:12:28.120
A lot of demand for their time, and therefore not a big supply of it. As a result, it must be

167
00:12:28.120 --> 00:12:32.120
expensive. That being said, it's hard for most businesses to understand what it's really

168
00:12:32.120 --> 00:12:36.680
like to have an uneven supply demand curve until you've experienced it. I'm going to try and walk

169
00:12:36.680 --> 00:12:39.880
you through what it felt like for me for the first time I experienced it in order to give you a taste

170
00:12:39.880 --> 00:12:44.600
of the power. When I got in this world of acquisition, I saw mentors of mine selling days of time

171
00:12:44.600 --> 00:12:49.800
for $50,000 plus. My mind was blown for two reasons. First, because I didn't understand how they

172
00:12:50.040 --> 00:12:53.640
could make so much money for a single day. Second, because I didn't understand who in the right

173
00:12:53.640 --> 00:12:59.160
mind was buying it. Over time, I learned. I'll start with the buyer. If I have a rare problem,

174
00:12:59.160 --> 00:13:03.720
and I must solve this problem for my own pursuit of happiness, it will consume all of my attention.

175
00:13:03.720 --> 00:13:07.800
By the nature of my problem being specialized, there will be very few people who can solve it.

176
00:13:07.800 --> 00:13:12.360
This means there is not a large supply of solvers. In many cases, I will perceive only one possible

177
00:13:12.360 --> 00:13:19.000
solver. AKA supply equals one. Beyond that, if solving this problem speeds up my achievement of a

178
00:13:19.000 --> 00:13:23.640
goal by a year or two, or immediately results in me making hundreds of thousands of dollars or

179
00:13:23.640 --> 00:13:28.120
millions of dollars, that solution becomes far more valuable. Does it not? Of course it does.

180
00:13:28.760 --> 00:13:34.440
And so it would follow. If I can pay someone $50,000 for a day of their time and see an increase

181
00:13:34.440 --> 00:13:39.320
of $500,000 per month in revenue within three months because of the insights and strategies

182
00:13:39.320 --> 00:13:43.880
revealed, that would be a however return on investment, right? So there are two components

183
00:13:43.880 --> 00:13:49.160
to value here. First, how rare the sources are. Second, the actual value being provided.

184
00:13:49.160 --> 00:13:53.000
The value and rarity compound to create some truly breathtaking profits.

185
00:13:54.040 --> 00:13:57.800
Specialized consultants are paid millions of dollars to solve problems worth tens of millions

186
00:13:57.800 --> 00:14:03.080
to clients. The client pays for all the experience and expertise the expert has and avoids the cost

187
00:14:03.080 --> 00:14:07.800
of errors, time and money. In short, they skip the bad stuff and go straight to the good stuff

188
00:14:07.800 --> 00:14:12.360
more quickly and for less money they don't cost to figure it out on their own. A beautiful economic

189
00:14:12.360 --> 00:14:16.760
exchange. I personally experienced this for the first time when I had two different people

190
00:14:16.760 --> 00:14:22.040
offer me $50,000 for a day of my time after speaking at an event. They were scaling an education

191
00:14:22.040 --> 00:14:26.680
business in a niche, not too dissimilar from my own, and could not get past the million dollar per

192
00:14:26.680 --> 00:14:32.120
month mark. As someone who was doing one million per week in the same business type at the time,

193
00:14:32.120 --> 00:14:36.760
I was a very specific type of person with the keys to their problem. So what happened you ask?

194
00:14:36.840 --> 00:14:41.160
Drum roll? I didn't accept the offers. Why? Because I was making more than 50,000

195
00:14:41.160 --> 00:14:43.320
a day in profit in my business and didn't want the distraction.

196
00:14:44.200 --> 00:14:49.080
Author note. It was years later that I started acquisition.com to help these very people.

197
00:14:49.080 --> 00:14:53.000
But instead of charging a day rate, I simply became an equity holder in the company to completely

198
00:14:53.000 --> 00:14:57.000
align interest for short and long term, and so I could see the implementations through.

199
00:14:57.000 --> 00:15:00.360
And as my time is limited by the laws of physics, for everyone else below the three to ten

200
00:15:00.360 --> 00:15:02.920
million dollar per year mark, I make all these materials for free.

201
00:15:03.720 --> 00:15:08.120
After the event concluded and I was speaking with Laila, I realized how I had somehow become one

202
00:15:08.120 --> 00:15:12.920
of those people I had always wondered about. It was very surreal for me. I finally understood how

203
00:15:12.920 --> 00:15:17.960
premium prices were truly made. Simple supply and demand. There is little that substitutes for

204
00:15:17.960 --> 00:15:22.440
incredible demand. You can try and fake it, but there's a special type of zero fox given vibe

205
00:15:22.440 --> 00:15:25.640
that's hard to replicate when you truly don't need a person's money or even want it.

206
00:15:26.280 --> 00:15:30.200
That's how these guys can charge so much because they don't need it. The person who needs the

207
00:15:30.200 --> 00:15:34.760
exchange less always has the upper hand. I always try to remember that. It's one of the negotiating

208
00:15:34.760 --> 00:15:39.240
and pricing principles that has best served me in my life. But Alex, how are you going to show me

209
00:15:39.240 --> 00:15:42.360
how to use scarcity to increase the amount of people who want to buy my offer when currently

210
00:15:42.360 --> 00:15:47.400
no one does? Great question. Let's attack some real world in the trenches strategies to reliably

211
00:15:47.400 --> 00:15:53.720
create scarcity. Creating scarcity. When there's a fixed supply or quantity of products or

212
00:15:53.720 --> 00:15:58.760
services that are available for purchase, it creates scarcity or a fear of missing out. It increases

213
00:15:58.920 --> 00:16:02.920
the need to take action and buy extension, purchase your offer. This is where you publicly share

214
00:16:02.920 --> 00:16:07.480
that you are only giving away X amount of products or can only take Y new clients. For example,

215
00:16:07.480 --> 00:16:11.880
if a musician drops a limited edition hoodie and says he only made a hundred and they will never

216
00:16:11.880 --> 00:16:16.680
be made again, are you more or less likely to buy it than one that is always available? More likely,

217
00:16:16.680 --> 00:16:21.320
naturally. The idea that you can never get it again makes it more desirable. This is an example

218
00:16:21.320 --> 00:16:25.960
of scarcity. It is the fear of missing out on something. It pulls on our psychological fear of

219
00:16:25.960 --> 00:16:30.440
loss and gets us to take action. Humans are far more motivated to take action to hoard a scarce

220
00:16:30.440 --> 00:16:35.240
resource than they are to act on something that could help them. Fear of loss is stronger than

221
00:16:35.240 --> 00:16:39.880
desire for gain. We will wield the psychological lever to get your clients to buy in a frenzy all

222
00:16:39.880 --> 00:16:47.880
at once until you are sold out. Three types of scarcity. One, limited supply of seats or slots

223
00:16:47.880 --> 00:16:54.440
in general or over-experative time. Two, limited supply of bonuses. Three, never available again.

224
00:16:54.440 --> 00:16:58.200
But how do you use this properly without being phony? I'll try and give you some real-world

225
00:16:58.200 --> 00:17:02.920
examples. Physical products. Having limited releases is a tried-and-true method of using

226
00:17:02.920 --> 00:17:07.080
psychological bias to your advantage. You can have limited releases for flavors, colors,

227
00:17:07.080 --> 00:17:12.200
designs, sizes, etc. This month we are releasing one hundred boxes of mint chocolate cookie-flavored

228
00:17:12.200 --> 00:17:17.880
protein bars. Important point. To properly utilize this method, you should always sell out.

229
00:17:17.880 --> 00:17:23.080
Here's why. It's better to sell out consistently than over-order and fail at creating that scarcity.

230
00:17:23.080 --> 00:17:28.280
This method stacks in effectiveness if it is done repeatedly over time, just not too often.

231
00:17:28.920 --> 00:17:32.840
Once a month seems to be the sweet spot for most of the companies that I know who do this with

232
00:17:32.840 --> 00:17:38.440
regularity. Second important note. When using this tactic, you must also let everyone know that you

233
00:17:38.440 --> 00:17:43.080
are sold out. That is part of what makes it work so well. This way, even people who are on the

234
00:17:43.080 --> 00:17:47.800
fence, when they see that it was sold out, gives them social proof that other people thought it was

235
00:17:47.800 --> 00:17:53.000
worth it. And now that the choice has been made for them, they desire it more because there's no

236
00:17:53.000 --> 00:17:57.160
way they can get it. So the next time you make the offer, they will be far more likely to take you

237
00:17:57.160 --> 00:18:02.920
up on it. Fun fact. Chanel, a brand that has maintained insane margins and pricing for over a

238
00:18:02.920 --> 00:18:08.600
century, is a master of scarcity. They send only one to two of each piece to each store so every

239
00:18:08.600 --> 00:18:13.000
store has a different selection and every item is the last or second-last item in stock.

240
00:18:13.000 --> 00:18:17.480
This allows them to price far above market and turn buying impulses into purchases.

241
00:18:18.280 --> 00:18:23.080
Services. With services, especially if you want to consistently get customers, it can be a

242
00:18:23.080 --> 00:18:27.480
little trickier to use scarcity. But I will show a few very simple ways to employ scarcity

243
00:18:27.480 --> 00:18:32.360
ethically to increase your take right on offers. These all have similar elements with very slight

244
00:18:32.360 --> 00:18:36.600
tweaks. I'm enumerating these because one of these might mentally fit your business model

245
00:18:36.600 --> 00:18:43.720
more than others. Number one, total business cap. Only accepting X clients. Only accepting

246
00:18:43.720 --> 00:18:48.840
X clients at this level of service ongoing. This puts a cap on how many clients you service,

247
00:18:48.840 --> 00:18:53.560
but also keeps them in. You create a waiting list for new prospects. The moment your door opens,

248
00:18:53.560 --> 00:18:59.000
they jump right in, and price resistance disappears. Periodically, you can increase capacity by

249
00:18:59.000 --> 00:19:03.240
10 to 20% than cap it again. This works well for your highest tiers or service levels.

250
00:19:04.200 --> 00:19:11.080
A. This is like saying, my agency only will service 25 customers total. Period. Over time,

251
00:19:11.080 --> 00:19:15.080
you can increase your prices and squeeze the lower performing accounts out and bring in new

252
00:19:15.080 --> 00:19:19.720
more profitable accounts. Or you can periodically open up slots as your capacity allows,

253
00:19:19.720 --> 00:19:27.160
always leaving some demand on met. Two. Growth rate cap. Only accepting X clients per week

254
00:19:27.160 --> 00:19:32.520
ongoing. We only accept five new clients per week. We already have the first three spots taken.

255
00:19:32.600 --> 00:19:36.360
I have six more calls this week, so you can either take the spot or one of my next calls can,

256
00:19:36.360 --> 00:19:41.000
and you can wait until we reopen. I have used this method since the beginning of my business.

257
00:19:41.000 --> 00:19:44.680
I always knew what my capacity per week was and simply chose to let our prospects know

258
00:19:44.680 --> 00:19:48.440
how many openings we had left. This banks on the fact that you can only handle a certain

259
00:19:48.440 --> 00:19:51.720
amount of new customers anyways on a regular basis, so you might as well let them know.

260
00:19:53.240 --> 00:19:59.960
Three. Cohort cap. Only accepting X clients per class or cohort. Similar to the above,

261
00:19:59.960 --> 00:20:06.120
except on whatever cadence you desire. Only accepting X clients amounts per class or per cohort

262
00:20:06.120 --> 00:20:10.520
over a given period is another way of thinking about it. Imagine you only start clients monthly

263
00:20:10.520 --> 00:20:14.600
or quarterly. This helps you get some cadence to some place in your business operationally

264
00:20:14.600 --> 00:20:19.320
while also allowing your sales team some legitimate scarcity. Example, we take on 100 clients

265
00:20:19.320 --> 00:20:25.000
four times a year. We open the doors and close them, etc. Pro tip. Provide limited access for

266
00:20:25.000 --> 00:20:30.200
higher ticket services. These scarcity tactics work especially well for higher ticket upsells.

267
00:20:30.200 --> 00:20:34.680
If you want to create one-off workshops, trainings, events, seminars, consulting, etc.

268
00:20:34.680 --> 00:20:37.880
These are the things that by their nature take time and provide more access.

269
00:20:38.440 --> 00:20:42.840
Pairing them with the clear scarcity or fixed amounts, seats or spots will rapidly drive up to

270
00:20:42.840 --> 00:20:47.800
mid. But always remember, have less spots available than you think you can sell, so that when you

271
00:20:47.800 --> 00:20:53.320
want to do it again in the future, everyone will remember you sold out. Fast. This is a compounding

272
00:20:53.320 --> 00:20:57.880
strategy that increases in effectiveness over time, one of the few in the marketing arsenal.

273
00:20:58.600 --> 00:21:03.320
Let me give you a real world example of scarcity to enhance the value of a free lead magnet.

274
00:21:03.320 --> 00:21:06.840
If I were to tell you right now that I have a checklist that you can download for free,

275
00:21:06.840 --> 00:21:10.120
that has all these materials for you in this book and bulleted format,

276
00:21:10.120 --> 00:21:13.400
you might be inclined to put this book down and go there to download it now.

277
00:21:14.120 --> 00:21:19.960
But if I told you I have it set so that every week the page only allows 20 new people to download it,

278
00:21:19.960 --> 00:21:23.640
you'd be far more likely to go and see if you can grab it. And even more so,

279
00:21:23.640 --> 00:21:26.760
if when you try, you see that it has already run out for the week.

280
00:21:26.760 --> 00:21:31.160
Result? You join a list that notifies you the next time 20 or more checklists become

281
00:21:31.160 --> 00:21:35.400
available for download. What happens next? When you get that notification, you'll hit the

282
00:21:35.400 --> 00:21:38.360
link on your phone and you'll go to the page because you don't want to miss out again.

283
00:21:38.360 --> 00:21:43.640
By employing scarcity, we make what would otherwise be a neat free download into a desirable thing

284
00:21:43.640 --> 00:21:48.920
that not everyone has access to. You also, by extension, would be far more likely to consume it

285
00:21:48.920 --> 00:21:52.840
when you do get your hands on it all because of how we control supply. Cool, right?

286
00:21:54.360 --> 00:22:01.080
Honest scarcity. The most ethical scarcity. The easiest scarcity strategy is honesty. Wait, what?

287
00:22:01.080 --> 00:22:05.720
Let me explain. I'm sure right now you probably couldn't handle a thousand clients tomorrow, right?

288
00:22:06.200 --> 00:22:11.800
But how many could you handle? Five, 10, 25? Well, you might as well define a number that you're

289
00:22:11.800 --> 00:22:16.200
willing to take on in a given period of time and then advertise it. Simply letting people know that

290
00:22:16.200 --> 00:22:20.280
you are three-fourths the way to capacity this week will move people over the edge to buying from

291
00:22:20.280 --> 00:22:25.080
you or letting people know that you're 81% of capacity in your total business will make more people

292
00:22:25.080 --> 00:22:30.040
likely to sign up with you quote before they lose the chance. Scarcity also implies within it

293
00:22:30.040 --> 00:22:34.760
social proof. If you are 81% of capacity, then a decent amount of people made the decision to

294
00:22:34.760 --> 00:22:39.240
work with you and the closer you get to your arbitrary fullness, the faster the spots will disappear.

295
00:22:39.240 --> 00:22:44.440
But only you get to draw where that line is quote full. Neat, right? Some points.

296
00:22:45.240 --> 00:22:49.720
Employ one or multiple methods of scarcity in your business. You will drive a faster purchasing

297
00:22:49.720 --> 00:22:54.440
decision from your prospects and at higher prices. Just let them know your limits and let psychology

298
00:22:54.440 --> 00:22:58.520
do the rest. Now that we've covered some of my favorite scarcity tactics that you can use

299
00:22:58.520 --> 00:23:04.040
your around, what else do you do to increase demand without changing anything about your offer?

300
00:23:04.040 --> 00:23:11.560
Increase urgency. We will cover that next. Protib. Extreme scarcity. If you don't hate money,

301
00:23:11.560 --> 00:23:17.000
sell a very limited supply of one-on-one access. You can do that via any of the mediums

302
00:23:17.000 --> 00:23:22.120
described in the delivery queue, direct message access, email access, phone access, voice

303
00:23:22.120 --> 00:23:27.080
memo access, zoom access, etc. There are lots of ways you can do this, but I promise you this,

304
00:23:27.080 --> 00:23:31.240
if you want to immediately make a lot of money, create a very exclusive service level based on

305
00:23:31.240 --> 00:23:37.880
access to you. That you cap at a tiny number, price it very high, then tell people. You will make

306
00:23:37.960 --> 00:23:42.200
more money than you thought possible. These also tend to be some of the best clients,

307
00:23:42.200 --> 00:23:47.400
and limit your delivery to something that you don't hate. For me, I hate emails and messages,

308
00:23:47.400 --> 00:23:51.720
but don't mind zoom calls. Make it work for your working style. The cream of the crop,

309
00:23:51.720 --> 00:23:57.880
the 1% of the 1% will adjust and take action. Protib. Once you're out, you can never come back.

310
00:23:57.880 --> 00:24:01.400
You can create scarcity by also capping your service level and saying that if they leave,

311
00:24:01.400 --> 00:24:05.640
they can never return. This type of scarcity makes people think extra hard about leaving.

312
00:24:05.720 --> 00:24:09.720
I started doing this with my gyms early on, then I was in a mastermind that employed this,

313
00:24:09.720 --> 00:24:13.960
then I started using it in my highest level at gym lords. This works best with small groups,

314
00:24:13.960 --> 00:24:18.200
like the above example, as groups become much bigger at the tactic loses some of its teeth,

315
00:24:18.200 --> 00:24:28.280
speaking from experience. Chapter 12, enhancing the offer, urgency, deadlines, drive decisions.

316
00:24:29.240 --> 00:24:36.840
Scarcity is a function of quantity. Urgency is a function of time. This is where you only limit

317
00:24:36.840 --> 00:24:42.760
when people can sign up, rather than how many. Having a defined deadline, or cut off,

318
00:24:42.760 --> 00:24:48.760
or purchase, or action to occur, creates urgency. Frequently, scarcity and urgency are used

319
00:24:48.760 --> 00:24:53.640
together, but I will separate them out for you to illustrate the concepts. I'm going to show you

320
00:24:53.640 --> 00:24:59.880
four of my favorite ways of using urgency on a consistent basis, ethically. One, rolling cohorts,

321
00:24:59.880 --> 00:25:06.120
two, rolling seasonal urgency, and three, promotional or pricing urgency, four, exploding

322
00:25:06.120 --> 00:25:11.560
opportunity. They will employ urgency in your business without being phony. My favorite way of

323
00:25:11.560 --> 00:25:16.840
doing this is having cohorts of clients start on a regular cadence. This has the added operational

324
00:25:16.840 --> 00:25:21.640
benefit of helping you create a choreographed onboarding experience for new clients. As you scale,

325
00:25:21.640 --> 00:25:28.520
this will become increasingly important. Number one, cohort-based rolling urgency. For example,

326
00:25:28.520 --> 00:25:33.880
if you start clients every week, even in unlimited amounts, you can say, if you sign up today,

327
00:25:33.880 --> 00:25:37.160
I can get you in with our next group that kicks off on Monday. Otherwise, you'll have to wait until

328
00:25:37.160 --> 00:25:41.640
our next kickoff day. If you wanted to juice it up a little bit, you could say, I actually had a

329
00:25:41.640 --> 00:25:45.400
client who signed up a few weeks ago drop out, so I have an opening for our next cohort that kicks

330
00:25:45.400 --> 00:25:48.680
off on Monday. If you're pretty sure you're going to do this sooner or later, it might as well get

331
00:25:48.680 --> 00:25:52.360
on it now, so you can start reaping the benefits sooner rather than paying the same in waiting.

332
00:25:52.920 --> 00:25:57.000
Those two tweaks above have pushed so many sales over the edge by just reminding a potential

333
00:25:57.000 --> 00:26:00.200
customer that if they sign up, they will be starting on Monday, and if they do not, they will have

334
00:26:00.200 --> 00:26:04.440
to wait a week. It's small things like this that nudge people to take the action that they know they

335
00:26:04.440 --> 00:26:10.200
should already take anyways. Obviously, the less frequently you kick off new customers, the more

336
00:26:10.200 --> 00:26:15.720
powerful this is. For example, if you only start clients two times a year, people will be very

337
00:26:15.800 --> 00:26:20.440
inclined to sign up, especially as the data approaches. Even starting new clients every other week

338
00:26:20.440 --> 00:26:26.600
can confer this urgency nudge. What if I lose sales by turning business away? Just like guarantees,

339
00:26:26.600 --> 00:26:30.760
there's always a fear that you will make less money by employing the strategy. We are afraid that

340
00:26:30.760 --> 00:26:35.160
we will lose sales that we would otherwise have made. Every experienced marketer on the planet will

341
00:26:35.160 --> 00:26:40.040
tell you it is a fear and it is unfounded. The biggest sales on a week long campaign or launch

342
00:26:40.040 --> 00:26:45.320
happened in the last four hours of the last day, up to 50 to 60 percent. That means that the last

343
00:26:45.320 --> 00:26:49.480
3 percent of the time allotted creates 50 to 60 percent of the sales. That's completely

344
00:26:49.480 --> 00:26:56.040
illogical but also unmistakably human. So, just like a guarantee, you will make more money from the

345
00:26:56.040 --> 00:27:00.440
many people who decided to take action than people who already missed out because in reality,

346
00:27:00.440 --> 00:27:04.360
those people were never going to buy. Heck, they didn't even buy when they had their feet to the

347
00:27:04.360 --> 00:27:10.040
fire. So, why would they buy now? Good to remember. What to do if you just started a cohort and

348
00:27:10.040 --> 00:27:15.400
someone wants to buy? You have two options. One, you can offer them a speedy personalized onboarding

349
00:27:15.400 --> 00:27:20.040
to get them up to speed as a bonus for signing up today and still get them in. Or, my preference,

350
00:27:20.040 --> 00:27:23.880
you can explain to them that since the next script starts in a little, they will have the advantage

351
00:27:23.880 --> 00:27:28.840
of having more time to review the materials, talk to their employees for a B2B product, for example,

352
00:27:28.920 --> 00:27:34.360
or families for a B2C product. On top of that, they can have a more extended payment plan that

353
00:27:34.360 --> 00:27:39.640
you can only make available to them since the start date is so far out and advantage that most

354
00:27:39.640 --> 00:27:44.040
clients do not get. In the end, remember, you always have the advantage because you are the one who

355
00:27:44.040 --> 00:27:51.640
calls the shots. Two, rolling seasonal urgency. In a digital setting, having actual sign-up date

356
00:27:51.640 --> 00:27:57.480
countdown is very useful. But, make sure they are real. If they aren't, you'll lose credibility

357
00:27:57.480 --> 00:28:02.200
and just look like every other wannabe marketer. This is very common with internet businesses that

358
00:28:02.200 --> 00:28:06.200
use launch models. I personally love having the dates that I am running a promotion through

359
00:28:06.200 --> 00:28:11.480
on my landing pages and in my copy. I want it to be visible everywhere. The nice thing is that

360
00:28:11.480 --> 00:28:15.400
you can always fire up another ad campaign and a new landing page with new dates and be right as

361
00:28:15.400 --> 00:28:20.280
rain. You will see your conversions go up through the roof and it takes maybe five minutes of editing,

362
00:28:20.280 --> 00:28:26.360
well worth the time investment. Example, our New Year promotion ends January 30th. Next month,

363
00:28:26.360 --> 00:28:32.360
our Valentine's Day lover promotion ends February 30th. Next month, our sexy by spring special

364
00:28:32.360 --> 00:28:38.760
ends March 31st. Next month, our fools in love April promo ends April 30th. The actual promotion

365
00:28:38.760 --> 00:28:43.640
may be the same, but naming it something different by season gives you the real differentiator that

366
00:28:43.640 --> 00:28:49.640
gives you a start and a finish. Deadlines drive decisions. By simply having these, you can point to

367
00:28:49.640 --> 00:28:55.320
them and let human beings push themselves over the edge so as not to miss out. Pro tip for local

368
00:28:56.280 --> 00:29:00.200
businesses. This is my number one strategy for local businesses. They must vary their marketing

369
00:29:00.200 --> 00:29:05.560
more frequently than national advertisers. Putting a new wrapper with a date on the same core service

370
00:29:05.560 --> 00:29:09.480
gives you urgency and novelty that will consistently outperform the same old campaigns.

371
00:29:10.600 --> 00:29:17.080
3. Pricing or bonus based urgency. This is another way of creating urgency using your actual offer

372
00:29:17.080 --> 00:29:21.960
or promotion slash pricing structure as the thing they could miss out on, kind of brilliant.

373
00:29:21.960 --> 00:29:26.680
It allows businesses that sell clients you around to still use urgency. For example,

374
00:29:27.320 --> 00:29:31.160
yes, let's get you started today so you can take advantage of the discount you came in for.

375
00:29:31.160 --> 00:29:34.760
I'm not sure how long we'll be running it as we change them every four weeks or so,

376
00:29:34.760 --> 00:29:38.840
and this is one of the better ones we've run in a while. This creates some fear of missing out on

377
00:29:38.840 --> 00:29:43.880
the promotion or discount or bonuses rather than your actual service. It would be a lie to say that

378
00:29:43.880 --> 00:29:47.880
if you own a roofing business, you won't service them if they buy after the date. But if you talk

379
00:29:47.880 --> 00:29:52.600
specifically about the promotion, you can often elicit the same urgency on buying the prospect

380
00:29:52.600 --> 00:29:57.720
while maintaining your integrity when win. You can interchange a pricing promotion, discount or

381
00:29:57.720 --> 00:30:03.880
added bonuses like free install or free onboarding or an extra workshop valued at $1,000 if they buy

382
00:30:03.880 --> 00:30:07.720
now. These are all things you can swap around your core offer to create urgency.

383
00:30:08.920 --> 00:30:14.360
Pro tip. Clean your pipeline with every price change. If you ever really are planning on raising

384
00:30:14.360 --> 00:30:19.000
your prices, hopefully soon if you're reading this book right now, then you can always clean out your

385
00:30:19.000 --> 00:30:24.600
pipeline by letting people know the price is going up so get in now. Never raise your prices without

386
00:30:24.600 --> 00:30:29.960
letting people know. It shows a position of strength and will give you a nice little influx of cash

387
00:30:29.960 --> 00:30:35.240
from the people in the pipeline who are on the fence. 4. Exploding Opportunity

388
00:30:35.880 --> 00:30:40.840
On occasion, you will be exposing the prospect to an arbitrage opportunity. The opportunity itself

389
00:30:40.840 --> 00:30:45.880
has a ticking time clock as all great opportunities do. Every second someone delays they miss out on

390
00:30:45.880 --> 00:30:52.680
disproportionate gains. Example. If I were explaining an arbitrage opportunity between buying products

391
00:30:52.680 --> 00:30:56.760
on eBay and selling them on Amazon, this market efficiency would correct itself over time.

392
00:30:57.640 --> 00:31:01.640
The sooner someone acts, the better will be for them. This could be true for selling someone on

393
00:31:01.640 --> 00:31:06.520
the opportunity of trading cryptocurrencies, buying a stock, getting into a new platform to advertise

394
00:31:06.520 --> 00:31:11.560
before competitors jump on the bandwagon or anything else like that. Highly competitive job

395
00:31:11.560 --> 00:31:16.920
environments often get job offers that are exploding offers every day. They wait to take the job,

396
00:31:16.920 --> 00:31:22.280
their pay or bonuses decrease. This forces prospects to make fast decisions rather than try and

397
00:31:22.280 --> 00:31:27.160
wait it out to see if they get a better offer. All of these examples show opportunities that decay

398
00:31:27.160 --> 00:31:31.640
with time, so if you find yourself in front of an opportunity like this, make sure to emphasize it.

399
00:31:32.520 --> 00:31:37.880
Summary points. Adding a deadline and incorporating one or multiple forms of urgency will get more

400
00:31:37.880 --> 00:31:42.520
people to take action than otherwise. I have employed all four of these methods with great effectiveness.

401
00:31:42.520 --> 00:31:45.240
I suggest you do the same. Next up, bonuses.

402
00:31:46.280 --> 00:31:50.520
Free gift number seven, bonus tutorial, how to ethically use scarcity and urgency.

403
00:31:50.520 --> 00:31:54.040
If you want to walk through some live ethical examples of scarcity and urgency with me,

404
00:31:54.040 --> 00:31:58.600
go to acquisition.com for slash training for slash offers and select scarcity and urgency to watch

405
00:31:58.680 --> 00:32:03.320
a short video tutorial. You'll also be able to grab my scarcity and urgency checklist that I use

406
00:32:03.320 --> 00:32:06.040
when creating offers. As always, it's absolutely free. Enjoy.

407
00:32:28.600 --> 00:32:32.280
print out or just use on your computer to start executing this stuff in the real world.

408
00:32:32.280 --> 00:32:35.080
Because the end of the day, if you don't do anything, nothing is going to change.

409
00:32:35.080 --> 00:32:40.200
And next episode, we're going to talk about two more offer enhancers, bonuses and guarantees.

410
00:32:40.760 --> 00:32:46.440
Can't wait to see you there. By the way, share this favor of you. That makes you an awesome person.

411
00:32:50.520 --> 00:32:55.800
Acquisition.com volume one, one hundred million dollar offers. How to make offers so good?

412
00:32:55.800 --> 00:33:00.040
People feel stupid saying no. Written and performed by Alex Hermosi.

413
00:33:00.600 --> 00:33:07.320
Copyright 2021 acquisition.com audio production copyright 2021 acquisition.com