WEBVTT 1 00:00:00.000 --> 00:00:06.400 Welcome back to episode three of $100 million offers, the audio edition and 2 00:00:06.400 --> 00:00:12.400 collab with the game podcast. Today's episode is the most famous chapter that I 3 00:00:12.400 --> 00:00:15.360 wrote in the book, the value equation, it's probably the most retweeted, the 4 00:00:15.360 --> 00:00:20.760 most shared, the most posted concept. This concept changed my life and changed 5 00:00:20.760 --> 00:00:24.880 my businesses and I hope it does the same for you and at the very end I've a 6 00:00:24.880 --> 00:00:27.920 special call to action that would mean the world to me if you got value from 7 00:00:27.920 --> 00:00:31.840 this free content. It takes a second and again, it would mean the world. 8 00:00:33.840 --> 00:00:39.640 Section three, value, create your offer, how to make offers so good, people feel 9 00:00:39.640 --> 00:00:46.840 stupid saying no. Chapter six, value offer, the value equation. We question all of 10 00:00:46.840 --> 00:00:50.720 our beliefs except for the ones we really believe in and those we never think 11 00:00:50.720 --> 00:00:56.320 to question. Orson Scott card. I want to be abundantly clear, the goal should be 12 00:00:56.320 --> 00:01:00.480 to charge as much money for your products or services as humanly possible. I'm 13 00:01:00.480 --> 00:01:04.240 talking heinous amounts of money. That being said, anyone can raise their 14 00:01:04.240 --> 00:01:08.400 prices, but only a select few can charge these rates and get people to say yes. 15 00:01:09.280 --> 00:01:12.800 From this point forward, you must have been in any notion you have about what's 16 00:01:12.800 --> 00:01:16.400 fair. Every enormous company in the world charges you money for things that 17 00:01:16.400 --> 00:01:20.080 cost them nothing. It costs pennies for the phone company to add an additional 18 00:01:20.080 --> 00:01:23.280 user, except they don't mind charging you hundreds of dollars per month for 19 00:01:23.280 --> 00:01:27.280 access. It costs pennies to manufacture pharmaceutical drugs, but they don't 20 00:01:27.280 --> 00:01:30.880 mind charging hundreds of dollars per month for it. Media companies charge 21 00:01:30.880 --> 00:01:34.480 advertisers a king's ransom for your eyeballs and it costs them next to nothing to 22 00:01:34.480 --> 00:01:38.080 get you to like kid and photos on social media. You need to have a big 23 00:01:38.080 --> 00:01:42.000 discrepancy between what something costs you and what you charge for it. It is the 24 00:01:42.000 --> 00:01:46.320 only way to become unreasonably wealthy. Many entrepreneurs believe that 25 00:01:46.320 --> 00:01:50.960 charging too much is bad. The reality is yes. You should never charge more than 26 00:01:50.960 --> 00:01:55.280 your product is worth. You should charge far more for your product and services 27 00:01:55.280 --> 00:02:00.480 than it costs to fulfill. Think up to a hundred times more, not just two or three times more. 28 00:02:00.480 --> 00:02:06.080 And if you provide enough value, it should always still be a steal for the prospect. 29 00:02:06.080 --> 00:02:10.960 That is the power of value. It unleashes unlimited pricing and profit power to 30 00:02:10.960 --> 00:02:15.680 scale your company. For example, one of my private clients whose company I have equity in 31 00:02:15.680 --> 00:02:20.560 in our portfolio is in the photography space. Over two years implementing the tactics 32 00:02:20.560 --> 00:02:23.760 outlined in this book, the owner was able to increase the average ticket from 33 00:02:23.760 --> 00:02:28.000 three hundred dollars to fifteen hundred dollars. That's a five x increase gasp. 34 00:02:28.720 --> 00:02:33.760 Even cooler, they now spend less time per customer and have higher customer satisfaction. 35 00:02:33.760 --> 00:02:38.560 The five x increase in average ticket, thirty eight x the profit of the business, 36 00:02:38.560 --> 00:02:42.560 it went from making a thousand dollars a week in profit to thirty eight thousand dollars per 37 00:02:42.560 --> 00:02:47.520 week in profit and continues to grow. As a result, the company was finally able to continue 38 00:02:47.520 --> 00:02:51.520 to scale to multiple locations and provide meaningful work to great employees. 39 00:02:51.520 --> 00:02:55.520 And a fun benefit, we were able to donate even more money to children's charities, 40 00:02:55.520 --> 00:02:59.440 which is something the owner and I have in common, almost a million dollars at the time of this 41 00:02:59.440 --> 00:03:04.560 writing. But none of that would have been possible without figuring out what people valued most, 42 00:03:04.560 --> 00:03:09.840 tripling down on it and ruthlessly eliminating everything else. A five x price increase may 43 00:03:09.920 --> 00:03:15.040 seem crazy to you. But clients voted with their dollars that what the company provides now is far 44 00:03:15.040 --> 00:03:19.760 better than what it did before. Cracking value opens up the world of unlimited profit, 45 00:03:19.760 --> 00:03:24.800 impact, and possibilities. Those who understand value are the ones who will be able to charge the 46 00:03:24.800 --> 00:03:29.760 most money for their services. The good news is that there is a repeatable formula that I have created, 47 00:03:29.760 --> 00:03:34.160 I've never seen it displayed elsewhere, to help quantify the variables that create value for 48 00:03:34.240 --> 00:03:40.560 any offer. I call it the value equation. Once you see it, you can never unsee it. It will operate 49 00:03:40.560 --> 00:03:44.640 in your subconscious running in the background, calling out to you. It's a new lens through which 50 00:03:44.640 --> 00:03:51.520 to see the world. The value equation dream outcome times perceived likelihood of achievement 51 00:03:51.520 --> 00:03:56.480 divided by time delay times effort and sacrifice equals value. 52 00:03:57.440 --> 00:04:01.520 Free gift number four value equation bonus tutorial and free downloads. If you want to know 53 00:04:01.600 --> 00:04:05.440 high breakdown businesses core offering into something more valuable, go to acquisitions.com 54 00:04:05.440 --> 00:04:08.560 forward slash trainings, forward slash offers, and select the value equation video to watch 55 00:04:08.560 --> 00:04:13.440 your tutorial. I also included downloadable checklist. My goal is to gain your trust and deliver 56 00:04:13.440 --> 00:04:19.840 value in advance. As such, it's absolutely free. Enjoy. So as you can see, or here, there are four 57 00:04:19.840 --> 00:04:24.720 primary drivers to value. Two of the drivers, which are the top two parts of the equation, 58 00:04:24.720 --> 00:04:29.200 you will seek to increase the other two on the bottom of the equation. You will seek to decrease. 59 00:04:29.840 --> 00:04:36.080 So one, yay, the dream outcome, our goal is to increase. Two, yay, perceived likelihood of 60 00:04:36.080 --> 00:04:42.080 achievement, our goal is to increase. Three, Boo, perceived time delay between start and achievement, 61 00:04:42.080 --> 00:04:47.440 our goal is to decrease. Four, Boo, perceived effort and sacrifice, our goal is to decrease. 62 00:04:48.000 --> 00:04:50.800 If you notice the questions in the last section that my father asked me, 63 00:04:50.800 --> 00:04:56.160 you'll see the corresponded with these pillars. What will I make, dream outcome? How will I know 64 00:04:56.160 --> 00:05:01.120 it's going to happen, perceive likelihood of achievement? How long will it take? Time delay? 65 00:05:01.680 --> 00:05:07.360 What is expected of me? Effort and sacrifice. Get the bottom to zero. In the beginning of my career, 66 00:05:07.360 --> 00:05:11.840 I focused all my attention on dream outcomes and the perception of achievement, social proof, 67 00:05:11.840 --> 00:05:17.200 third party edification, etc. In other words, the top side of the equation. That's where beginner 68 00:05:17.200 --> 00:05:22.320 marketers make bigger and bigger claims. It's easy and it's lazy. But as time has gone on, 69 00:05:22.400 --> 00:05:26.400 I have realized that these larger than life claims are the easiest to establish and therefore 70 00:05:26.400 --> 00:05:31.440 less unique. After all, anyone can make a promise. The harder and more competitive are the time 71 00:05:31.440 --> 00:05:36.160 delay and effort and sacrifice. The best companies in the world focus all their attention on the 72 00:05:36.160 --> 00:05:41.520 bottom side of the equation, making things immediate, seamless and effortless. Apple made the 73 00:05:41.520 --> 00:05:45.920 iPhone effortless compared to other phones at the time. Amazon made purchasing a single click of 74 00:05:45.920 --> 00:05:50.560 a button and made purchases arrive almost immediately. Maybe by the time you read this, 75 00:05:50.560 --> 00:05:55.200 they'll be sending drones to our doors within 60 minutes. Netflix made consuming television 76 00:05:55.200 --> 00:06:00.160 immediate and effortless. So, the older I get, the more I have shifted my focus to the quote 77 00:06:00.160 --> 00:06:04.720 hard stuff, decreasing the bottom side of the equation. And I believe the better you do this, 78 00:06:04.720 --> 00:06:10.160 the more you will be rewarded by the marketplace. Final note. The reason this is a division 79 00:06:10.160 --> 00:06:14.720 equation and not addition is that I want to convey one key point. If you can make the bottom part 80 00:06:14.720 --> 00:06:19.680 of the equation equal to zero, you are golden. No matter how small the top side is, 81 00:06:19.680 --> 00:06:24.720 anything divided by zero equals infinity, which is technically undefined for math nerds. 82 00:06:24.720 --> 00:06:29.840 In other words, if you can reduce your prospects true time delay to receiving value to zero, 83 00:06:30.400 --> 00:06:35.360 aka, you realize your immediate dream outcome and your effort and sacrifice is zero, 84 00:06:35.360 --> 00:06:39.920 you have an infinitely valuable product. If you accomplish this, you win the game. 85 00:06:40.640 --> 00:06:45.040 Given this postulate, a prospect would, in theory, purchase something from you, 86 00:06:45.040 --> 00:06:49.680 and the moment their credit card was run, it would immediately become their reality. That is 87 00:06:49.680 --> 00:06:54.640 infinite value. Imagine clicking the purchase button on a weight loss product and instantly 88 00:06:54.640 --> 00:06:59.040 seeing your stomach turn into a six pack. Or imagine hiring a marketing firm and as soon as you 89 00:06:59.040 --> 00:07:04.560 sign your document, your phone begins to ring with new, highly qualified prospects. How valuable 90 00:07:04.560 --> 00:07:09.360 would these products or services be? Infinitely valuable. And that's the point. I don't know if we 91 00:07:09.360 --> 00:07:13.360 entrepreneurs will ever get there, but that is the hypothetical limit we should all strive towards 92 00:07:13.360 --> 00:07:19.600 and why I structured the equation this way. Perception is reality. Perception is reality. 93 00:07:19.600 --> 00:07:23.520 It's not about how much you increase your prospects likely to have success or decrease the 94 00:07:23.520 --> 00:07:28.800 time delay to achievement or decrease their effort and sacrifice. That in and of itself is not 95 00:07:28.800 --> 00:07:34.000 valuable. Many times they will have no idea. The grand sum offer only becomes valuable once the 96 00:07:34.000 --> 00:07:38.720 prospect perceives the increase in likelihood of achievement, perceives the decrease in time 97 00:07:38.720 --> 00:07:44.080 delay and perceives the decrease in effort and sacrifice. A prime example of this happened 98 00:07:44.080 --> 00:07:49.440 on the London tunnel system. The biggest increase in rider satisfaction, aka value, was never from 99 00:07:49.440 --> 00:07:54.320 faster trains to decrease weight times. Instead, it was from a simple dotted map that showed them when 100 00:07:54.320 --> 00:07:58.640 the next train was coming and how long they had to wait. The dotted map, which only cost a few 101 00:07:58.640 --> 00:08:03.760 million dollars, decreased the rider's perception of time delay and sacrifice, aka being 102 00:08:03.760 --> 00:08:08.400 bored waiting, more than actually making the trains faster, which cost billions of dollars to do. 103 00:08:08.400 --> 00:08:11.120 Isn't that cool? This is how we need to think about our products. 104 00:08:12.240 --> 00:08:18.960 Pro tip. Logical versus psycho-logical solutions. Most people naturally try and solve problems 105 00:08:18.960 --> 00:08:24.640 using logical solutions, but the logical solutions have already been tried. Because they're logical, 106 00:08:24.640 --> 00:08:28.800 it's what everyone would have tried to. As business owners and entrepreneurs, I increasingly 107 00:08:28.800 --> 00:08:33.440 approach problems to find psychological solutions rather than logical ones. Because if there were 108 00:08:33.440 --> 00:08:37.520 a logical solution, it probably would have already been solved, thereby eliminating the problem. 109 00:08:38.080 --> 00:08:43.520 All that remains are the psychological problems. Example inspired by Rory Sutherland, CMO of 110 00:08:43.520 --> 00:08:48.240 Ogilvy advertising. Any fool can sell a product by offering it for a discount. It takes great 111 00:08:48.240 --> 00:08:54.000 marketing to sell the same product for a premium. Logical solution, make trains faster to increase 112 00:08:54.080 --> 00:08:59.120 satisfaction. Psychological solution, decreased the pain of waiting by adding a dotted map. 113 00:08:59.120 --> 00:09:03.600 Psychological solution, pay models to be the hostesses on the trip. People would wish it took longer 114 00:09:03.600 --> 00:09:09.920 to get to their destination. Logical solution, make elevator faster. Psychological solution, 115 00:09:09.920 --> 00:09:13.600 add floor to ceiling mirrors so people are distracted staring at themselves and forget how long 116 00:09:13.600 --> 00:09:19.360 they were on the elevator. Logical solution, make it cheaper. Psychological solution, make fewer of 117 00:09:19.360 --> 00:09:24.480 them and raise the price which would cause more people to want it. Often, most logical solutions 118 00:09:24.480 --> 00:09:29.120 have been tried and failed. At this point in history, we must give the psychological solutions 119 00:09:29.120 --> 00:09:33.920 a shot to solve problems. As such, as business owners, it's up to us to communicate these value 120 00:09:33.920 --> 00:09:38.720 drivers with clarity to increase the prospect's perception of these realities. The extent to which 121 00:09:38.720 --> 00:09:42.800 you answer these questions in the mind of your prospect will determine the value you are creating. 122 00:09:42.800 --> 00:09:46.640 Only then will we truly be able to realize the actual value of our product to the marketplace 123 00:09:46.640 --> 00:09:51.760 and by extension, the egregious prices we wish to charge. It's difficult to separate four 124 00:09:51.760 --> 00:09:55.600 value drivers from one another, as most vehicles combine many of these elements together, 125 00:09:55.600 --> 00:09:58.400 but I will do my best to isolate and clearly explain each one below. 126 00:09:59.360 --> 00:10:05.920 Number one, dream outcome, our goal, increase. People have deep, unchanging desires. This is what 127 00:10:05.920 --> 00:10:10.480 marriages are lost over, wars are fought over, and people willingly die for. Our goal is not to 128 00:10:10.480 --> 00:10:15.280 create desire. Our goal is simply to channel that desire through our offer and monetization vehicle. 129 00:10:15.920 --> 00:10:19.600 The dream outcome is the expression of that feeling and experiences the prospect has envisioned 130 00:10:19.600 --> 00:10:23.600 in their mind. It's the gap between their current reality and their dreams. Our goal is to 131 00:10:23.600 --> 00:10:27.360 accurately depict that dream back to them so they feel understood and explain how our vehicle 132 00:10:27.360 --> 00:10:31.680 will get them there. The dream outcome is simple. It's the getting there where the value gets enhanced 133 00:10:31.680 --> 00:10:37.280 or detracted. People generally and our clients specifically want to be perceived as beautiful, 134 00:10:37.280 --> 00:10:43.280 to be respected, to be perceived as powerful, to be loved, to increase their status. These are all 135 00:10:43.280 --> 00:10:48.160 powerful drivers, but multiple vehicles may accomplish the same thing. Take the desire to be 136 00:10:48.160 --> 00:10:52.000 perceived as beautiful, for example. There are a lot of things that touch on this desire. 137 00:10:52.000 --> 00:10:57.200 Make up, anti-aging creams or serums, supplements, shape wear, plastic surgery, fitness, 138 00:10:57.200 --> 00:11:02.720 all of these vehicles channel the desire to be perceived as beautiful. And we further unpack 139 00:11:02.720 --> 00:11:07.520 the idea of a desire to be beautiful. We see that it may be a surface level declaration of a deeper 140 00:11:07.520 --> 00:11:13.120 desire to achieve higher status in one social group. The dream outcome value driver is most 141 00:11:13.120 --> 00:11:17.760 prominently used when comparing the relative value between two different desires being satisfied. 142 00:11:18.400 --> 00:11:22.800 In general, the dream outcome that most directly increases the prospect's status will be the one 143 00:11:22.800 --> 00:11:28.240 they value the most. As such, a prospect may value that entire category of vehicles that satisfy 144 00:11:28.240 --> 00:11:33.440 one desire more than another category that satisfies a different desire. For many men, 145 00:11:33.440 --> 00:11:38.080 making money is more important than being handsome. Why? Because money drives status for men 146 00:11:38.080 --> 00:11:42.720 more than being handsome does. So in general, they will value all offers that make them money, 147 00:11:42.720 --> 00:11:47.360 more than offers that help them look good. I once heard Russell Brunson tell a story about this concept. 148 00:11:47.360 --> 00:11:51.280 He explained how his wife called it at first hearing the status concept rejected it. 149 00:11:51.280 --> 00:11:56.160 She claimed she wasn't driven by status and would never want a Lamborghini. Instead, she favored 150 00:11:56.160 --> 00:12:01.200 her minivan. But after talking further, she revealed it was because driving a Lamborghini would 151 00:12:01.200 --> 00:12:05.200 decrease her status amongst her mom friends while driving a minivan would show that she was a good 152 00:12:05.200 --> 00:12:10.800 mom increase in status. So it's not about the money. It's about the status. The perceived increase 153 00:12:10.800 --> 00:12:16.000 or decrease in relative standing when compared to others socially or professionally. Talk in terms 154 00:12:16.000 --> 00:12:19.760 of things your prospect believes will increase their status and you will have your prospects drooling. 155 00:12:20.560 --> 00:12:25.760 Pro tip frame benefits in terms of status gained from the viewpoint of others. When writing 156 00:12:25.760 --> 00:12:29.680 copy, you can make it that much more powerful by talking about how other people will perceive the 157 00:12:29.680 --> 00:12:35.360 prospect's achievement. Connect the knots for them. Example. If you buy this golf club, your drive 158 00:12:35.360 --> 00:12:40.480 will increase by 40 yards. Your golf buddies, jaws will drop when they see your balls sore 40 yards 159 00:12:40.480 --> 00:12:45.840 past theirs. They will ask you what's changed, only you will know. That being said, when comparing 160 00:12:45.840 --> 00:12:50.720 two products or services that satisfy the same desire, the value from the dream outcomes will cancel 161 00:12:50.720 --> 00:12:55.120 out since they are the same. It will be the other three variables that drive the difference in 162 00:12:55.120 --> 00:13:01.280 perceived value and ultimately price. For example, if we had two products or services that both help 163 00:13:01.280 --> 00:13:06.640 make someone beautiful, it will be the likelihood of achievement, time delay, and effort required 164 00:13:06.640 --> 00:13:11.920 that will differentiate the perceived value of each offer. Simply put, if two things make someone 165 00:13:11.920 --> 00:13:18.160 beautiful, what makes one worth $50,000 and another worth $5? Answer the extent of the other three 166 00:13:18.160 --> 00:13:24.000 value variables. Number two, perceived likelihood of achievement. Our goal increased. 167 00:13:24.880 --> 00:13:28.480 This was the last of the variables that I added when trying to think through this framework a 168 00:13:28.480 --> 00:13:34.160 few years ago. I just felt like something was missing with only the other three. Then I realized 169 00:13:34.160 --> 00:13:40.320 people pay for certainty. They value certainty. I call this the perceived likelihood of achievement. 170 00:13:40.320 --> 00:13:44.640 In other words, how likely do I believe that it is that I will achieve the result that I am 171 00:13:44.640 --> 00:13:50.000 looking for if I make this purchase? For example, how much would you pay to be a plastic surgeon's 172 00:13:50.000 --> 00:13:56.880 10,000th patient versus their first? If you are a normal, same person, a lot more. I mean heck, 173 00:13:56.880 --> 00:14:00.880 you might even ask them to pay you if you are their first patient ever. So you can see even from 174 00:14:00.880 --> 00:14:05.680 this simple example that while the service you are receiving is technically the same, the only 175 00:14:05.680 --> 00:14:10.160 thing that changes is your perceived likelihood of getting what you want. Both surgeons take the 176 00:14:10.160 --> 00:14:15.600 same amount of time to do the surgery. If anything, the guy who has done it 10,000 times would likely 177 00:14:15.600 --> 00:14:20.480 get it done faster and still charge more. The more experienced surgeon has a track record of 178 00:14:20.480 --> 00:14:26.160 achieving result, which incentivizes their desired ability. People value this perceived likelihood 179 00:14:26.160 --> 00:14:30.880 of achievement. Increasing a prospect's conviction that your offer will actually work for them 180 00:14:30.880 --> 00:14:35.360 will make your offer that much more valuable, even though the work remains the same on your end. 181 00:14:35.920 --> 00:14:40.640 So to increase value with all offers, we must communicate perceived likely of achievement 182 00:14:40.640 --> 00:14:46.000 through our messaging, proof, what we choose to include or exclude in our offer and our guarantees. 183 00:14:46.000 --> 00:14:53.120 More on this later. Number three, time delay. Our goal, increase. Time delay is the time between 184 00:14:53.120 --> 00:14:57.360 a client buying and receiving the promised benefit. The shorter the distance between when they make 185 00:14:57.360 --> 00:15:01.680 the purchase and when they receive value, slash the outcome, the more valuable your service or 186 00:15:01.760 --> 00:15:07.840 product is. There are two elements to this driver of value, long-term outcome and short-term 187 00:15:07.840 --> 00:15:12.560 experience. Many times there are short-term experiences that occur and route to the long-term 188 00:15:12.560 --> 00:15:17.920 outcomes. They happen along the way and provide value. It's good to understand both. 189 00:15:17.920 --> 00:15:23.120 The thing people buy is the long-term value, aka the dream outcome, but the thing that makes them 190 00:15:23.120 --> 00:15:28.000 stay long enough to get it is the short-term experience. These are the little milestones 191 00:15:28.000 --> 00:15:32.960 on a prospect sees along the way that shows them they are on the right path. We try and tie as many 192 00:15:32.960 --> 00:15:39.120 of these as possible into any service we offer. We want clients to have a big emotional win early 193 00:15:39.120 --> 00:15:43.840 as close as possible to their purchase. This gives them the emotional buying and the momentum 194 00:15:43.840 --> 00:15:50.160 to see it through to their ultimate goal. For example, it takes a while to add an extra $239,000 195 00:15:50.160 --> 00:15:54.000 per year to a gym, but that's what they're buying. So once they have purchased, we need to create 196 00:15:54.000 --> 00:15:58.160 emotional wins fast. One of the ways we do this is to get their ads live and get them to close 197 00:15:58.160 --> 00:16:02.720 their first $2,000 sale within their first seven days. By doing this, their decision to work with 198 00:16:02.720 --> 00:16:07.440 us is reinforced and they immediately trust us more. This makes them more likely to follow the 199 00:16:07.440 --> 00:16:13.760 rest of our systems and get to their ultimate destination. Pro tip, fast wins. Always try and 200 00:16:13.760 --> 00:16:17.520 incorporate short-term immediate wins for a client. Be creative. They just need to know that 201 00:16:17.520 --> 00:16:20.560 they're on the right path and they made their right decision trusting you in your business. 202 00:16:21.200 --> 00:16:24.640 Let me give you another example. If I sell someone a bikini body, 203 00:16:24.640 --> 00:16:28.880 their time to lay to realize that outcome may be 12 months or even longer. Along the way, 204 00:16:28.880 --> 00:16:33.840 though, as they change their bodies, they may experience higher sex drive, more energy, 205 00:16:33.840 --> 00:16:37.840 and an increased community of friends. They aren't initially buying those things, 206 00:16:37.840 --> 00:16:41.920 but those things may become short-term benefits that keep them in the game long enough to achieve 207 00:16:41.920 --> 00:16:46.160 their ultimate outcome. They buy the dream, but they stay for the benefits they discover 208 00:16:46.240 --> 00:16:50.240 along the way. The faster and more clearly you can demonstrate those benefits, the more valuable 209 00:16:50.240 --> 00:16:55.680 your service will be. For a weight loss customer, we would get them to meet someone else so they 210 00:16:55.680 --> 00:17:00.560 immediately had some social benefits from the program. And we usually give them a more aggressive 211 00:17:00.560 --> 00:17:04.800 diet in the beginning. Why? Because we wanted them to have a big, fast emotional win, 212 00:17:04.800 --> 00:17:09.120 so we could get them to commit to the long term. This is also backed by science. People who 213 00:17:09.120 --> 00:17:14.160 experience a victory early on are more likely to continue with something than those who do not. 214 00:17:14.240 --> 00:17:19.760 That being said, having to wait 12 to 24 months to get you what you want is a long time when you 215 00:17:19.760 --> 00:17:25.360 can do liposection in the afternoon. This just shows one of the reasons people pay $25,000 for 216 00:17:25.360 --> 00:17:29.920 liposuction with a tummy tuck, while people will barely pay $100 a month to join a bootcamp. 217 00:17:29.920 --> 00:17:34.480 But that's not the only reason is it. That leads me to the last driver of value, effort and sacrifice. 218 00:17:35.200 --> 00:17:41.680 Pro tip. Fast beats free. The only thing that beats free is fast. People will pay for speed. 219 00:17:41.680 --> 00:17:46.560 Many companies have entered free spaces and done exceedingly well with a speed first strategy. 220 00:17:46.560 --> 00:17:53.040 A few notable companies, the MVD versus the DMV, wait in line forever or pay $50, you can skip the 221 00:17:53.040 --> 00:17:58.800 line and get your license renewed privately. That x versus usps, when it absolutely positively has 222 00:17:58.800 --> 00:18:05.040 to be there overnight. Spotify versus slow free music, Uber versus walking, fast beats free. 223 00:18:05.040 --> 00:18:10.640 Many will always be willing to pay price for the value of speed. So if you find yourself in a market 224 00:18:10.640 --> 00:18:18.000 competing against free, double down on speed. Number four, effort and sacrifice. Our goal, decrease. 225 00:18:18.000 --> 00:18:23.360 This is what it costs people and ancillary costs, aka other costs accrued along the way. 226 00:18:23.920 --> 00:18:28.480 These can be both tangible and intangible. Using the fitness liposuction example, 227 00:18:28.480 --> 00:18:33.120 let's look at the difference in effort and sacrifice. Fitness effort and sacrifice. Wake up one 228 00:18:33.120 --> 00:18:38.160 to two hours earlier in the morning, five to ten hours per week of time lost, stop eating the foods 229 00:18:38.160 --> 00:18:42.320 you love, constant hunger, physical soreness, feelings of embarrassment and not knowing how to 230 00:18:42.320 --> 00:18:48.640 exercise, risk of injury, literal nausea working out, meal prepping, new groceries, more expensive 231 00:18:48.640 --> 00:18:54.640 groceries, new clothing, fear of gaining it back after all this effort, aka impermanence, etc. 232 00:18:55.280 --> 00:19:01.840 Liposuction effort and sacrifice. Fall asleep, wake up thin, guaranteed, be sore for two to four weeks. 233 00:19:02.800 --> 00:19:06.800 Massive difference, right? In fact, in looking at the marketing of plastic surgeons, 234 00:19:06.800 --> 00:19:10.960 these are the exact pain points they hit on when they say things like tired of wasting countless hours 235 00:19:10.960 --> 00:19:15.440 in the gym, tired of diets that just don't work. This is why when you self fitness, you have to 236 00:19:15.440 --> 00:19:19.280 spend an hour arm wrestling a client to give over one tenth or one one hundredth of the amount of 237 00:19:19.280 --> 00:19:23.520 money they pay for surgery. There's just not a lot of perceived value because the perceived 238 00:19:23.520 --> 00:19:27.680 likelihood of achievement, the time to lay to achievement and the effort and sacrifice are so high. 239 00:19:27.680 --> 00:19:31.840 So even though the outcome is the same, the value of the vehicles are dramatically different, 240 00:19:31.840 --> 00:19:35.760 hence the difference in price. Decreasing the effort and sacrifice, or at least the perceived 241 00:19:35.760 --> 00:19:40.720 effort and sacrifice can massively boost the appeal of your offer. In an ideal world, a prospect 242 00:19:40.720 --> 00:19:45.360 will want to simply say yes and have their dream outcome happen with no more effort on their behalf. 243 00:19:45.360 --> 00:19:49.200 This is why done for you services are almost always more expensive than do it yourself, 244 00:19:49.200 --> 00:19:53.040 because a person doesn't have to do all the effort and sacrifice. There's also component of 245 00:19:53.040 --> 00:19:57.280 perceived likelihood of achievement difference as well. People believe that if an expert does it, 246 00:19:57.280 --> 00:20:00.480 then they will be more likely to achieve the outcome than if they try on their own. 247 00:20:01.200 --> 00:20:05.360 My hope is that you now have a foundational understanding of the components of value 248 00:20:05.360 --> 00:20:09.040 and how the interplay between each of the components creates or detracts from the value someone 249 00:20:09.040 --> 00:20:14.720 might be willing to pay, putting it all together. As I said earlier, these elements of value don't 250 00:20:14.720 --> 00:20:19.680 happen in a vacuum. They happen together in combination. So let's look at a few examples that 251 00:20:19.680 --> 00:20:24.720 utilize all four components of value of once. In an effort to quantify the value, I'll rate them 252 00:20:24.720 --> 00:20:30.960 on a binary scale of zero or one, one being value achieved zero being missing. Then I will add 253 00:20:31.040 --> 00:20:35.600 all four together to give you a relative value rating of a type of service. Our goal as marketers 254 00:20:35.600 --> 00:20:39.360 and business owners is to increase the value of the dream outcome and its perceived likelihood of 255 00:20:39.360 --> 00:20:43.680 achievement, while decreasing the time delay of achievement and the effort and sacrifice one 256 00:20:43.680 --> 00:20:48.160 has to put in to get there. To start, I will do a side-by-side comparison of two vehicles with 257 00:20:48.160 --> 00:20:54.480 identical dream outcomes, meditation and Xanax, both offer the buyer relaxation, decreased anxiety, 258 00:20:54.480 --> 00:20:58.640 and feelings of well-being. I will demonstrate how the other three variables dramatically shift the 259 00:20:58.640 --> 00:21:05.600 value of delivering that dream outcome and ultimately the price. Meditation versus Xanax. 260 00:21:07.360 --> 00:21:12.400 So I'm going to read the chart below to compare relative scores on each of the four value drivers. 261 00:21:13.920 --> 00:21:21.040 Meditation, dream outcome, relaxation, decreasing anxiety, feelings well-being, score one out of one, 262 00:21:21.040 --> 00:21:25.040 perceived likelihood of achievement, low since most people get distracted and don't actually 263 00:21:25.040 --> 00:21:31.360 think they'll follow through with daily meditation. Score zero out of one. Time delay. Long time 264 00:21:31.360 --> 00:21:35.760 to yield long-term results. Some immediate benefits after 10 to 20 minutes, assuming you don't 265 00:21:35.760 --> 00:21:42.000 get frustrated. Score 0.5 out of one. Effort and sacrifice. Physical discomfort, 266 00:21:42.000 --> 00:21:46.080 numb body limbs often, mental discomfort, feeling like you are feeling constantly. 267 00:21:46.080 --> 00:21:51.440 Time sacrifice, you have to set aside time every day to do this. Score zero out of one. Overall 268 00:21:51.440 --> 00:21:58.320 value score for meditation. Low. 1.5 out of four. Now let's look at Xanax. Dream outcome. Same 269 00:21:58.320 --> 00:22:03.360 as meditation. Relaxation, decreased anxiety, feelings well-being, score one out of one. 270 00:22:03.360 --> 00:22:07.760 Perceived likelihood of achievement. High since most people are confident that if they take the pill, 271 00:22:07.760 --> 00:22:13.120 it will make them feel more relaxed. Score one out of one. Time delay. 15 minutes for effects to be 272 00:22:13.120 --> 00:22:20.080 felt. Score one out of one. Effort and sacrifice. Swallowing a pill. Score one out of one. Overall value 273 00:22:20.080 --> 00:22:25.680 score. High four out of four. And that is why Xanax is a multi-billion dollar product, 274 00:22:25.680 --> 00:22:30.640 while I know of almost no multi-billion dollar meditation businesses. Value. I'm not here to 275 00:22:30.640 --> 00:22:34.960 argue about whether meditation is better than Xanax. Obviously it is, but that doesn't mean it's perceived 276 00:22:34.960 --> 00:22:40.320 as more valuable. This is also the reason that supplement industry, 123 billion, according to 277 00:22:40.320 --> 00:22:45.440 Grandview Research, is twice the size of the health club industry, 62 billion, according to HRSA. 278 00:22:45.440 --> 00:22:49.200 They both accomplish the same perceived objectives, being healthy, losing weight, looking good at 279 00:22:49.200 --> 00:22:55.440 increasing energy, etc. But one is perceived as more valuable because it has lower costs. People 280 00:22:55.440 --> 00:23:00.880 are more willing to pay $200 for supplements than they offer a $29 per month membership. 281 00:23:00.880 --> 00:23:05.920 Taking a pill or drinking a shake is so much faster and easier than going to the gym every day, 282 00:23:05.920 --> 00:23:11.440 hence valued. Crazy world we live in. And you can either sit there and make 283 00:23:11.440 --> 00:23:15.760 complain posts about how people ought to be a certain way, or you can take advantage of the way 284 00:23:15.840 --> 00:23:20.320 people are and capitalize. This book is for those people who want to be victors not victims of 285 00:23:20.320 --> 00:23:24.960 circumstance. You can either be right or you can be rich. This book is for getting rich. If that 286 00:23:24.960 --> 00:23:28.960 bothers you, you can put this down and go back to arguing against human nature, hence you're not 287 00:23:28.960 --> 00:23:34.400 going to change it. Now, that being said, knowing what people value versus what is good for them is key. 288 00:23:34.400 --> 00:23:38.160 It means you can find ways to monetize the things that people value in order to give them what they 289 00:23:38.160 --> 00:23:42.880 really need, win, win. You can make your dent in the universe while making your profit. 290 00:23:45.840 --> 00:23:49.520 Hey guys, if you're struggling to keep track of this or you like highlighting, 291 00:23:49.520 --> 00:23:53.280 you're like writing notes in the margin, or you like seeing the frameworks, you might not know this, 292 00:23:53.280 --> 00:23:58.880 but I actually hand drew every single framework inside of this book. And I think there's at least 293 00:23:58.880 --> 00:24:04.800 50 hand drawn images and frameworks inside this book that I painstakingly put together to make 294 00:24:04.800 --> 00:24:09.520 the consumption easier and so that it stores in more parts of your brain. And so if that sounds 295 00:24:09.520 --> 00:24:13.280 at all interesting, you can go to Amazon and grab the physical copy or the Kindle version of that if 296 00:24:13.280 --> 00:24:20.240 you prefer either of those formats that are available to you. Chapter 7. Pre-Goodwill. 297 00:24:21.120 --> 00:24:26.320 Key who said money can't buy happiness hasn't given enough away. Source unknown. 298 00:24:27.600 --> 00:24:32.400 People who help others with zero expectation experience higher levels of fulfillment, 299 00:24:32.400 --> 00:24:37.840 live longer, and make more money. I'd like to create the opportunity to deliver this value to you 300 00:24:37.840 --> 00:24:42.320 during your reading or listening experience. In order to do so, I have a simple question for you. 301 00:24:43.200 --> 00:24:47.920 Would you help someone you've never met if it didn't cost you money, but you never got credit for it? 302 00:24:48.720 --> 00:24:53.280 If so, I haven't asked to make on behalf of someone you do not know and likely never will. 303 00:24:54.160 --> 00:24:59.040 They are just like you, or like you were a few years ago. Less experienced, full of desire to help 304 00:24:59.120 --> 00:25:03.120 the world, seeking information, but unsure where to look. This is where you come in. 305 00:25:03.680 --> 00:25:08.320 The only way for us at Acquisition.com to accomplish our mission of helping entrepreneurs is first 306 00:25:08.320 --> 00:25:13.200 by reaching them. And most people do, in fact, judge a book by its cover and its reviews. 307 00:25:13.920 --> 00:25:17.920 If you have found this book valuable thus far, would you please take a brief moment right now 308 00:25:17.920 --> 00:25:22.400 and leave an honest review of the book and its contents? It will cost you zero dollars and 309 00:25:22.400 --> 00:25:27.120 less than 60 seconds. Your review will help one more entrepreneur support his or her family. 310 00:25:27.120 --> 00:25:31.360 One more employee find work they find meaningful. One more client experienced a transformation 311 00:25:31.360 --> 00:25:35.200 the otherwise would not have encountered. One more life changed for the better. 312 00:25:35.840 --> 00:25:39.840 To make that happen, all you have to do is, and this takes less than 60 seconds, 313 00:25:40.480 --> 00:25:45.280 leave a review. If you're unottable, hit the three dots on the top right of your device, 314 00:25:45.280 --> 00:25:49.040 click and rate and review, and then leave a few sentences about the book with a star rating. 315 00:25:49.520 --> 00:25:53.520 If for some reason they have changed the functionality, you can go to the book page of Amazon, 316 00:25:53.520 --> 00:25:56.320 or wherever you purchase this and leave a review right on the page. 317 00:25:57.440 --> 00:26:02.320 PS, if you feel good about helping a faceless entrepreneur, you are my kind of people. 318 00:26:02.320 --> 00:26:06.640 I'm that much more excited to help you crush it in the coming chapters. You'll love the tactics 319 00:26:06.640 --> 00:26:12.640 I'm about to go over. PPS, Lifehack. If you introduce something valuable to someone, 320 00:26:12.640 --> 00:26:17.680 they associate that value with you. If you'd like goodwill, directly from another entrepreneur, 321 00:26:17.680 --> 00:26:22.240 send this book their way. Thank you from the bottom of my heart. Now back to our regularly 322 00:26:22.240 --> 00:26:24.800 scheduled programming, your biggest fan, Alex. 323 00:26:52.240 --> 00:27:03.440 If you could leave the book a review on Amazon, it took me two days to record this. If you could 324 00:27:03.440 --> 00:27:09.040 take 60 seconds to do it, it would just mean a lot to me and maybe even change someone else's life. 325 00:27:09.040 --> 00:27:12.400 So if you could do that, that would be awesome. And you would be awesome too. 326 00:27:22.320 --> 00:27:29.920 You could say no. Written and performed by Alex Hermosi. Copyright 2021 acquisition.com audio 327 00:27:29.920 --> 00:27:33.040 production copyright 2021 acquisition.com