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 00:01:24.880 --> 00:01:29.680 nodded, then checked off our names. Great. He said his demeanor transformed 21 00:01:29.680 --> 00:01:33.440 from stern to inviting. Welcome to the fundraiser. Stay in this line. You'll 22 00:01:33.440 --> 00:01:36.640 make a left, then security will escort you the rest of the way. The security 23 00:01:36.640 --> 00:01:39.920 guard talked into his walkie-talkie to the next post down the road, signalling 24 00:01:39.920 --> 00:01:44.400 our car was approved. Pulling in front of the estate was like entering a bond 25 00:01:44.400 --> 00:01:48.400 movie, Lamborghinis, Bugatti's, Ferraris and brands of cars that are too 26 00:01:48.400 --> 00:01:52.320 expensive to even speak of. Old guys with young, scanally-clad girls, 27 00:01:52.320 --> 00:01:55.280 eyeless actors, celebrities with millions of followers who were recording 28 00:01:55.280 --> 00:01:58.480 themselves as they arrived, talking to their iPhones to their audiences, 29 00:01:58.480 --> 00:02:02.720 and us. The fundraiser was 25,000 per ticket to attend, 30 00:02:02.720 --> 00:02:06.640 with an inviolous of only a hundred. There was a red carpet and all. 31 00:02:06.640 --> 00:02:10.240 Every year the fundraiser culminated in a big auction for memorabilia and 32 00:02:10.240 --> 00:02:14.080 items some of the business owners in the audience gave away for charity. 33 00:02:14.080 --> 00:02:17.360 We walked around looking at the entertainment stations purposely devised to get 34 00:02:17.360 --> 00:02:21.360 donors in the giving mode. We saw $10,000 scotches, $500 35 00:02:21.360 --> 00:02:24.480 cigars, pre-released items for major brands that wouldn't be available 36 00:02:24.480 --> 00:02:28.240 to the public until months later. And of course, the most expensive cuisine you 37 00:02:28.240 --> 00:02:31.280 could imagine. Laylin and I were just soaking it all in. 38 00:02:31.280 --> 00:02:34.480 It was a wonderful night. We definitely fell like cool kids. 39 00:02:34.480 --> 00:02:37.680 Ben, the CEO of the charity, saw us looking lost and walked over. 40 00:02:37.680 --> 00:02:40.800 He took me by the arm and introduced me to some of the other donors. 41 00:02:40.800 --> 00:02:43.760 These were all men who were older than me donating $100,000 42 00:02:43.760 --> 00:02:46.800 and up without a second thought. The man he introduced me to was one of the 43 00:02:46.800 --> 00:02:50.320 charity's biggest donors. He had built an ultra high in jewelry and watch 44 00:02:51.120 --> 00:02:55.840 business. I'm talking $100,500, $200,000 plus rare status symbols that people buy. 45 00:02:55.840 --> 00:02:59.040 Only so other 0.001%ers know they belong. 46 00:02:59.600 --> 00:03:03.360 He had donated upwards of 700,000 in merchandise as prizes for the fundraiser 47 00:03:03.360 --> 00:03:07.120 that evening. Alex and Layla meet George. Ben said, 48 00:03:07.120 --> 00:03:09.760 he's been very generous with his time and money to the cause. 49 00:03:09.760 --> 00:03:12.400 George, this is Alex and Layla. They're donating a million dollars 50 00:03:12.400 --> 00:03:15.600 tonight to afterschool stars. I figured you are both good people and wanted to 51 00:03:15.600 --> 00:03:19.200 connect you to. Nice to meet you. George said, 52 00:03:19.200 --> 00:03:23.440 with calm and weathered eyes. He was in his late 60s tall and sturdily built. 53 00:03:24.000 --> 00:03:27.680 Get here's eastern block origins in his accent. He sounded like a man who had fought 54 00:03:27.680 --> 00:03:31.360 tooth and nail to be here, but had softened his demeanor for gathering such as these. 55 00:03:31.920 --> 00:03:34.400 But the tiger with a teeth and claws remained under the surface, 56 00:03:34.400 --> 00:03:37.840 ready to be called upon at a moment's notice. I felt like I understood this guy. 57 00:03:38.560 --> 00:03:43.040 Ben broke the ice. So George was the one who got me to raise the price from 15,000 58 00:03:43.040 --> 00:03:47.600 per ticket to $25,000. We had more demand than ever this year, but I took his advice. 59 00:03:47.600 --> 00:03:51.280 I cut the amount of tickets we sold and raised the prices. That's right. 60 00:03:51.280 --> 00:03:54.400 George said, content that his stage business advice had been followed. 61 00:03:54.400 --> 00:03:59.360 When demand increases, cut supply. He perked up slightly because we started talking about money. 62 00:03:59.360 --> 00:04:02.480 This man had built his business from nothing and had found ways to sell things for 63 00:04:02.480 --> 00:04:06.960 extraordinary profits by understanding human psychology. I had long learned about supply and 64 00:04:06.960 --> 00:04:11.280 demand, but this guy was using its psychological underpinnings to fuel a fundraising. 65 00:04:11.840 --> 00:04:14.640 You could take the tiger out of the jungle, but not the jungle out of the tiger. 66 00:04:15.440 --> 00:04:19.440 People want what they can't have. People want what other people want. 67 00:04:19.440 --> 00:04:23.440 People want things only a select few have access to. He was dead right. 68 00:04:24.240 --> 00:04:28.080 They had raised an extra one million dollars that night before the event had even started 69 00:04:28.080 --> 00:04:31.840 by cutting the supply of tickets and raising the prices. On top of that, 70 00:04:31.840 --> 00:04:34.480 all the people were more qualified than ever to be big donors. 71 00:04:35.040 --> 00:04:38.080 The night ended being of the most successful night in the charity's history, 72 00:04:38.080 --> 00:04:43.520 raising nearly $5.4 million from only 100 people. That's $5,400 a head. 73 00:04:43.520 --> 00:04:46.800 Each of the items was auctioned off as a one of a kind item. 74 00:04:46.800 --> 00:04:49.280 And if you missed it, you'd never have a chance to buy it again. 75 00:04:49.840 --> 00:04:52.960 Aren't we even threw in some bonuses when two people would get high enough in the bidding 76 00:04:52.960 --> 00:04:57.520 allowing the charity to get both donations? It was a masterful display of human psychology at work 77 00:04:57.520 --> 00:05:02.000 in a setting where people knowingly overpaid for products. The products remained unchanged, 78 00:05:02.000 --> 00:05:06.320 yet within this setting, an item that wouldn't sell at a different venue for $10,000 79 00:05:06.320 --> 00:05:11.040 sold for $100,000. That's how powerful scarcity, urgency, and bonuses are. 80 00:05:11.120 --> 00:05:14.560 And breaking down how to use them to further increase demand for your offer without changing 81 00:05:14.560 --> 00:05:19.600 your offer is the purpose of this section. Author note. Other persuasion powers at play. 82 00:05:20.480 --> 00:05:25.120 Scarcity, urgency, bonuses, and guarantees were not the only persuasion tools being employed 83 00:05:25.120 --> 00:05:29.440 to get egregious prices at the fundraiser. They also use commitment and consistency, 84 00:05:29.440 --> 00:05:33.280 status, peer pressure, goodwill, celebrity endorsements, competition, etc. However, 85 00:05:33.280 --> 00:05:37.120 scarcity, urgency, bonuses, and guarantees are the four that I'll be breaking down in this book 86 00:05:37.120 --> 00:05:40.800 as I believe they're the ones that belong with the offer and less with the actual selling. 87 00:05:40.800 --> 00:05:44.640 Which I will talk about more in depth in acquisition volume 4, $100 million sales. 88 00:05:45.280 --> 00:05:46.480 The delicate dance of desire. 89 00:05:47.680 --> 00:05:52.240 Picture in the book is a supply and demand curve. Fundamentally, all marketing exists to 90 00:05:52.240 --> 00:05:56.080 influence the supply and demand curve. We artificially increase the demand for our products and 91 00:05:56.080 --> 00:06:00.800 services through some sort of persuasive communication. When we increase the demand, we can sell more 92 00:06:00.800 --> 00:06:06.000 units. When we decrease the supply, we can sell those units for more money. The perfect profit 93 00:06:06.000 --> 00:06:11.600 combination is lots of demand and very little supply or perceived supply. The process of enhancing 94 00:06:11.600 --> 00:06:16.640 your offer is designed to do both of these things. Increase demand and decrease perceived supply 95 00:06:16.640 --> 00:06:20.560 so you can sell the same products for more money than you otherwise could and in higher volumes 96 00:06:20.560 --> 00:06:24.720 than you otherwise would over a long enough time horizon. The new supply demand curve. 97 00:06:25.280 --> 00:06:30.320 Picture in the book is the curve that has been shifted to the right by bonuses, scarcity, 98 00:06:30.320 --> 00:06:34.880 urgency, guarantees, and naming so that you can get more units sold at higher prices. 99 00:06:35.520 --> 00:06:39.600 Author note. This assumes a regular business who is not trying to gain mass market penetration 100 00:06:39.600 --> 00:06:45.760 for some other strategic advantage. Desire comes from not getting what you want. In fact, I heard 101 00:06:45.760 --> 00:06:49.920 this quote that I love from Naval Robocon. Desire is a contract you make with yourself to be 102 00:06:49.920 --> 00:06:54.320 unhappy until you get what you want. It follows, therefore, that we only want things we do not have. 103 00:06:54.960 --> 00:06:59.440 As soon as we have them, our desire for them disappears. Therefore, if we seek to increase the 104 00:06:59.440 --> 00:07:04.640 demand or desire, we must decrease or delay satisfying the desires of our prospect. We must sell 105 00:07:04.640 --> 00:07:09.760 fewer units than we otherwise can. Let that sit with you for a second. Consider this example. 106 00:07:10.400 --> 00:07:14.960 We promote some two-day workshop that is upcoming. First, we whisper that it's coming, 107 00:07:14.960 --> 00:07:19.280 then we tease it with some benefits, then we shout that it's launching in a week. Then, 108 00:07:19.280 --> 00:07:24.480 when we launch this amazing workshop, we have two supply-demand scenarios, scenario one. We sell 109 00:07:24.480 --> 00:07:29.600 10 units at $500 each. Sell the entire pyramid of demand at a price that everyone says yes to. 110 00:07:30.160 --> 00:07:36.240 Scenario two. We sell two one-day workshops, 101 for $5,000 each. We skim the top of that 111 00:07:36.240 --> 00:07:41.440 pyramid with 80% of people not being able to purchase or choosing not to. It's worth noting that 112 00:07:41.440 --> 00:07:45.600 each of these prospects have different buying thresholds. In my experience, demand for services 113 00:07:45.600 --> 00:07:52.240 is non-linear. Instead, I found a man to be fractal, aka 8020. In other words, one fifth of prospects 114 00:07:52.240 --> 00:07:56.880 are willing to pay five times the price or more. In the example, I might have 10 people willing 115 00:07:56.880 --> 00:08:02.720 to pay $500, but two of them willing to pay $5,000, so would make more, have lower costs, aka more 116 00:08:02.720 --> 00:08:07.120 profits, provide more value, and increase the demand in the remaining prospect base by selling 117 00:08:07.120 --> 00:08:12.560 fewer units. Think about how exclusive scenario one for scenario two would feel. Think about all the 118 00:08:12.560 --> 00:08:17.200 people who would want to purchase but would not be able to. Would this increase or decrease their 119 00:08:17.200 --> 00:08:22.960 desire? It would increase it of course. On top of that, if people see that others who were able 120 00:08:22.960 --> 00:08:27.600 to get in or loving it, it would further increase their desire. And the next time, they would act 121 00:08:27.600 --> 00:08:32.160 with more urgency and be willing to pay more for the same thing than they originally did. So now, 122 00:08:32.160 --> 00:08:36.560 in the aftermath of our second scenario, we would still have eight people who have unsatisfied 123 00:08:36.560 --> 00:08:41.440 desire. This increases their desire further. And to boot, we now have new prospects who weren't in 124 00:08:41.440 --> 00:08:46.720 the original pool and now want all we have. The next time we promote scenario two, we then open 125 00:08:46.720 --> 00:08:51.840 up three spots at the same price and sell them all. Still leaving some prospects with pent-up 126 00:08:51.840 --> 00:08:58.480 demand. This is a continuous theme. Conversely, if we were to promote scenario one again, the $500 127 00:08:58.480 --> 00:09:03.200 price point, we would probably sell fewer slots the second time around. Why? We have no pent-up 128 00:09:03.200 --> 00:09:08.720 demand. All desire has been fulfilled. When you, quote, pull the trigger too early, each successive 129 00:09:08.720 --> 00:09:13.280 instance we promote, we sell even fewer. Eventually, we run out of sufficient demand to even make a 130 00:09:13.280 --> 00:09:18.160 single sale. This is the sad state many businesses find themselves in, always trying to generate more 131 00:09:18.160 --> 00:09:23.360 demand to make another quick sale. Promosy law. The longer you delay the ask, the bigger the ask 132 00:09:23.360 --> 00:09:28.320 you can make, the longer the runway, the bigger the plane that can take off. We must endeavor to keep 133 00:09:28.320 --> 00:09:33.840 our supply and satisfaction of desire under the demand that we are able to generate. This maximizes 134 00:09:33.920 --> 00:09:38.800 profits and keeps desire ravenous in our customer base. This is the real key to never going hungry. 135 00:09:39.600 --> 00:09:44.640 Summary points. The reason I titled this subsection, delicate dance of desire, is that supply and 136 00:09:44.640 --> 00:09:50.560 demand are inversely correlated in theory. If you satisfy zero desire, aka provide zero supply, 137 00:09:50.560 --> 00:09:55.120 you will not make money, and eventually people will leave feeling rejected. No, it takes much 138 00:09:55.120 --> 00:10:00.240 longer than you think. Conversely, if you satisfy all the demand, you will kill your golden goose and 139 00:10:00.240 --> 00:10:04.080 not know where your next meal will come from. Mastering supply and demand comes from the elegant 140 00:10:04.080 --> 00:10:09.040 dance between the two. If you sleep with your significant other every day, they have less desire 141 00:10:09.040 --> 00:10:13.200 than if you haven't slept with them for a week. We want the ravenous prospect, not merely the 142 00:10:13.200 --> 00:10:18.240 aroused. Therefore, understanding the interplay between these variables is key to enhancing the 143 00:10:18.240 --> 00:10:22.960 offer and the amount of profits you will make over time. Up to this point, we have covered all the 144 00:10:22.960 --> 00:10:27.120 things inside of your offer that can make it immune to price comparison and transform regular 145 00:10:27.120 --> 00:10:32.000 services and products into things that people will find a way to pay for. It would follow that the 146 00:10:32.000 --> 00:10:36.480 next variable that can make your offer more desirable is how it is presented. In other words, 147 00:10:36.480 --> 00:10:41.680 the outside variables that position the product in your prospect's mind. These forces are often 148 00:10:41.680 --> 00:10:46.960 more powerful than your core offer. In the next section, enhancing your offer, I will show you how I, 149 00:10:46.960 --> 00:10:52.080 one, use scarcity to decrease supply to raise prices and indirectly increase demand through 150 00:10:52.080 --> 00:10:57.680 perceived exclusiveness. Two, use urgency to increase demand by decreasing the action threshold 151 00:10:57.680 --> 00:11:03.200 of a prospect. Three, use bonuses to increase demand and increase perceived exclusivity. 152 00:11:04.080 --> 00:11:09.760 Four, use guarantees to increase demand by reversing risk. Five, use names to restimulate demand 153 00:11:09.760 --> 00:11:15.200 and expand awareness of my offer to my target audience. I will define each and give you examples 154 00:11:15.200 --> 00:11:19.360 on how to use them. We will use all of these variables to enhance our offer and shift the demand 155 00:11:19.360 --> 00:11:23.920 curve in our favor, leaving our customers always wanting for more. We will start by 156 00:11:23.920 --> 00:11:28.480 tactically stimulating fear of missing out aka FOMO through scarcity. 157 00:11:49.360 --> 00:11:55.040 They don't print books for free. If that sounds good to you, go check it out on Amazon. If not, 158 00:11:55.040 --> 00:11:55.760 keep an enjoying. 159 00:12:19.360 --> 00:12:24.240 Can charge egregious rates is because of implied demand. People assume that there's a lot of demand 160 00:12:24.240 --> 00:12:29.520 for their time and therefore not a big supply of it. As a result, it must be expensive. That being 161 00:12:29.520 --> 00:12:33.520 said, it's hard for most businesses to understand what it's really like to have an uneven supply 162 00:12:33.520 --> 00:12:37.440 demand curve until you've experienced it. I'm going to try and walk you through what it felt like 163 00:12:37.440 --> 00:12:41.440 for me for the first time I experienced it in order to give you a taste of the power. When I got 164 00:12:41.440 --> 00:12:46.240 in this world of acquisition, I saw mentors of mine selling days of time for $50,000 plus. 165 00:12:46.320 --> 00:12:50.000 My mind was blown for two reasons. First, because I didn't understand how they could 166 00:12:50.000 --> 00:12:53.680 make so much money for a single day. Second, because I didn't understand who in the right 167 00:12:53.680 --> 00:12:57.120 mind was buying it. Over time, I learned. I'll start with the buyer. 168 00:12:57.920 --> 00:13:01.840 If I have a rare problem, and I must solve this problem for my own pursuit of happiness, 169 00:13:01.840 --> 00:13:05.760 it will consume all of my attention. By the nature of my problem being specialized, 170 00:13:05.760 --> 00:13:10.080 there will be very few people who can solve it. This means there is not a large supply of solvers. 171 00:13:10.160 --> 00:13:12.800 In many cases, I will perceive only one possible solver. 172 00:13:16.400 --> 00:13:20.720 Beyond that, if solving this problem speeds up my achievement of a goal by a year or two, 173 00:13:20.720 --> 00:13:24.800 or immediately results in me making hundreds of thousands of dollars or millions of dollars, 174 00:13:24.800 --> 00:13:28.160 that solution becomes far more valuable. Does it not? Of course it does. 175 00:13:28.720 --> 00:13:33.520 And so, it would follow. If I can pay someone $50,000 for a day of their time, 176 00:13:33.520 --> 00:13:38.720 and see an increase of $500,000 per month in revenue within three months because of the insights 177 00:13:38.720 --> 00:13:42.880 and strategies revealed, that would be a hell of a return on investment, right? 178 00:13:42.880 --> 00:13:47.520 So there are two components to value here. First, how rare the sources are. Second, 179 00:13:47.520 --> 00:13:52.960 the actual value being provided. The value and rarity compound to create some truly breath-taking profits. 180 00:13:54.080 --> 00:13:57.920 Specialized consultants are paid millions of dollars to solve problems worth tens of millions to 181 00:13:57.920 --> 00:14:03.120 clients. The client pays for all the experience and expertise the expert has and avoids the cost 182 00:14:03.120 --> 00:14:07.760 of errors, time and money. In short, they skip the bad stuff and go straight to the good stuff 183 00:14:07.760 --> 00:14:12.320 more quickly and for less money they don't cost to figure it out on their own. A beautiful economic 184 00:14:12.320 --> 00:14:16.720 exchange. I personally experienced this for the first time when I had two different people 185 00:14:16.720 --> 00:14:22.000 offer me $50,000 for a day of my time after speaking at an event. They were scaling an education 186 00:14:22.000 --> 00:14:26.720 business in a niche, not too dissimilar from my own, and could not get past the million dollar per 187 00:14:26.720 --> 00:14:32.160 month mark. As someone who was doing one million per week in the same business type at the time, 188 00:14:32.160 --> 00:14:36.800 I was a very specific type of person with the keys to their problem. So what happened you ask? 189 00:14:36.800 --> 00:14:41.120 Drum roll? I didn't accept the offers. Why? Because I was making more than 50,000 190 00:14:41.120 --> 00:14:43.280 a day in profit in my business and didn't want the distraction. 191 00:14:44.160 --> 00:14:49.120 Author note. It was years later that I started acquisition.com to help these very people, 192 00:14:49.120 --> 00:14:52.960 but instead of charging a day rate, I simply became an equity holder in the company to completely 193 00:14:52.960 --> 00:14:57.040 align interest for short and long term, and so I could see the implementations through. 194 00:14:57.040 --> 00:15:00.560 And as my time is limited by the laws of physics, for everyone else below the three to ten million 195 00:15:00.560 --> 00:15:04.960 dollar per year mark, I make all these materials for free. After the event concluded and I was 196 00:15:05.040 --> 00:15:09.600 speaking with Layla, I realized how I had somehow become one of those people I had always wondered about. 197 00:15:10.160 --> 00:15:14.800 It was very surreal for me. I finally understood how premium prices were truly made, 198 00:15:14.800 --> 00:15:19.440 simple supply and demand. There is little that substitutes for incredible demand. You can try and 199 00:15:19.440 --> 00:15:23.840 fake it, but there's a special type of zero fox given vibe that's hard to replicate when you truly 200 00:15:23.840 --> 00:15:28.240 don't need a person's money or even want it. That's how these guys can charge so much because 201 00:15:28.240 --> 00:15:33.120 they don't need it. The person who needs the exchange less always has the upper hand. I always 202 00:15:33.120 --> 00:15:36.480 try to remember that. It's one of the negotiating and pricing principles that has best served me in 203 00:15:36.480 --> 00:15:40.880 my life. But Alex, how are you going to show me how to use scarcity to increase the amount of 204 00:15:40.880 --> 00:15:45.200 people want to buy my offer when currently no one does? Great question. Let's attack some real 205 00:15:45.200 --> 00:15:51.920 world in the trenches strategies to reliably create scarcity. Creating scarcity. When there's a fixed 206 00:15:51.920 --> 00:15:56.560 supply or quantity of products or services that are available for purchase it creates scarcity, 207 00:15:56.560 --> 00:16:00.800 where a fear of missing out. It increases the need to take action and buy extension purchase 208 00:16:00.800 --> 00:16:04.880 your offer. This is where you publicly share that you are only giving away X amount of products 209 00:16:04.880 --> 00:16:10.240 or can only take Y new clients. For example, if a musician drops a limited edition hoodie and says 210 00:16:10.240 --> 00:16:14.240 he only made a hundred and they will never be made again, are you more or less likely to buy it 211 00:16:14.240 --> 00:16:19.280 than one that is always available? More likely, naturally. The idea that you can never get it again 212 00:16:19.280 --> 00:16:24.240 makes it more desirable. This is an example of scarcity. It is the fear of missing out on something. 213 00:16:24.240 --> 00:16:28.560 It pulls on our psychological fear of loss and gets us to take action. Humans are far more 214 00:16:28.560 --> 00:16:32.720 motivated to take action to hoard a scarce resource than they are to act on something that could 215 00:16:32.720 --> 00:16:38.320 help them. Fear of loss is stronger than desire for gain. We will wield the psychological lever to 216 00:16:38.320 --> 00:16:43.920 get your clients to buy in a frenzy all at once until you are sold out. Three types of scarcity. 217 00:16:44.720 --> 00:16:51.760 One, limited supply of seats or slots in general or over-experative time. Two, limited supply 218 00:16:51.760 --> 00:16:56.240 of bonuses. Three, never available again. But how do you use this properly without being 219 00:16:56.320 --> 00:16:59.760 phony? I'll try and give you some real-world examples. Physical products. 220 00:17:00.560 --> 00:17:04.800 Having limited releases is a tried-and-true method of using psychological bias to your advantage. 221 00:17:04.800 --> 00:17:08.880 You can have limited releases for flavors, colors, design, sizes, etc. 222 00:17:08.880 --> 00:17:13.120 This month we are releasing 100 boxes of mint chocolate cookie-flavored protein bars. 223 00:17:13.120 --> 00:17:18.800 Important point. To properly utilize this method, you should always sell out. Here's why. 224 00:17:18.800 --> 00:17:23.040 It's better to sell out consistently than over-order and fail at creating that scarcity. 225 00:17:23.120 --> 00:17:28.240 This method stacks in effectiveness if it is done repeatedly over time, just not too often. 226 00:17:28.960 --> 00:17:32.640 Once a month seems to be the sweet spot for most of the companies that I know who do this 227 00:17:32.640 --> 00:17:38.160 with regularity. Second important note. When using this tactic, you must also let everyone know 228 00:17:38.160 --> 00:17:42.880 that you are sold out. That is part of what makes it work so well. This way, even people who are 229 00:17:42.880 --> 00:17:47.360 on the fence, when they see that it was sold out, gives them social proof that other people 230 00:17:47.360 --> 00:17:52.320 thought it was worth it. And now that the choice has been made for them, they desire it more 231 00:17:52.320 --> 00:17:56.080 because there's no way they can get it. So the next time you make the offer, they will be 232 00:17:56.080 --> 00:18:01.600 far more likely to take you up on it. Fun fact. Chanel, a brand that has maintained insane margins 233 00:18:01.600 --> 00:18:07.440 and pricing for over a century, is a master of scarcity. They send only one to two of each piece 234 00:18:07.440 --> 00:18:11.520 to each store so every store has a different selection and every item is the last or second 235 00:18:11.520 --> 00:18:17.440 last item in stock. This allows them to price far above market and turn buying impulses into purchases. 236 00:18:18.240 --> 00:18:23.360 Services. With services, especially if you want to consistently get customers, it can be a little 237 00:18:23.360 --> 00:18:28.160 trickier to use scarcity. But I will show a few very simple ways to employ scarcity ethically 238 00:18:28.160 --> 00:18:33.120 to increase your take right on offers. These all have similar elements with very slight tweaks. 239 00:18:33.120 --> 00:18:36.880 I'm enumerating these because one of these might mentally fit your business model more than 240 00:18:36.880 --> 00:18:44.320 others. Number one. Total business cap. Only accepting X clients. Only accepting X clients at 241 00:18:44.320 --> 00:18:49.600 this level of service ongoing. This puts a cap on how many clients you service, but also keeps 242 00:18:49.600 --> 00:18:54.560 them in. You create a waiting list for new prospects. The moment your door opens, they jump right in 243 00:18:54.560 --> 00:19:00.000 and price resistance disappears. Periodically, you can increase capacity by 10 to 20% than 244 00:19:00.000 --> 00:19:06.320 capital again. This works well for your highest tiers or service levels. A. This is like saying, 245 00:19:06.320 --> 00:19:12.240 my agency only will service 25 customers total. Period. Over time, you can increase your prices 246 00:19:12.320 --> 00:19:16.480 and squeeze the lower performing accounts out and bring in new more profitable accounts, 247 00:19:16.480 --> 00:19:21.200 or you can periodically open up slots as your capacity allows, always leaving some demand unmet. 248 00:19:22.160 --> 00:19:29.440 Two. Growth rate cap. Only accepting X clients per week ongoing. We only accept five new 249 00:19:29.440 --> 00:19:33.920 clients per week. We already have the first three spots taken. I have six more calls this week, 250 00:19:33.920 --> 00:19:37.520 so you can either take the spot or one of my next calls can and you can wait until we reopen. 251 00:19:38.480 --> 00:19:42.640 I have used this method since the beginning of my business. I always knew what my capacity per week 252 00:19:42.640 --> 00:19:46.960 was and simply chose to let our prospects know how many openings we had left. This banks on the 253 00:19:46.960 --> 00:19:50.800 fact that you can only handle a certain amount of new customers anyways on a regular basis so you 254 00:19:50.800 --> 00:19:59.360 might as well let them know. Three. Cohort cap. Only accepting X clients per class or cohort. Similar 255 00:19:59.360 --> 00:20:05.360 to the above except on whatever cadence you desire. Only accepting X clients amounts per class or 256 00:20:05.360 --> 00:20:10.080 per cohort over a given period is another way of thinking about it. Imagine you only start clients 257 00:20:10.080 --> 00:20:14.560 monthly or quarterly. This helps you get some cadence to some place in your business operationally 258 00:20:14.560 --> 00:20:19.520 while also allowing your sales team some legitimate scarcity. Example, we take on 100 clients four 259 00:20:19.520 --> 00:20:25.520 times a year, we open the doors and close them, etc. Pro tip. Provide limited access for higher ticket 260 00:20:25.520 --> 00:20:31.040 services. These scarcity tactics work especially well for higher ticket upsells. If you want to create 261 00:20:31.040 --> 00:20:35.760 one-off workshops, trainings, events, seminars, consulting, etc. These are the things that by their 262 00:20:35.760 --> 00:20:40.960 nature take time and provide more access. Pairing them with the clear scarcity or fixed amounts, 263 00:20:40.960 --> 00:20:45.920 seats or spots will rapidly drive up to mid. But always remember, have less spots available than 264 00:20:45.920 --> 00:20:50.320 you think you can sell. So that when you want to do it again in the future, everyone will remember 265 00:20:50.320 --> 00:20:55.920 you sold out. Fast. This is a compounding strategy that increases in effectiveness over time, 266 00:20:56.000 --> 00:21:01.120 one of the few in the marketing arsenal. Let me give you a real-world example of scarcity to 267 00:21:01.120 --> 00:21:05.680 enhance the value of a free lead magnet. If I were to tell you right now that I have a checklist that 268 00:21:05.680 --> 00:21:10.160 you can download for free that has all these materials for you in this book and bullet it format, 269 00:21:10.160 --> 00:21:15.760 you might be inclined to put this book down and go there to download it now. But if I told you I 270 00:21:15.760 --> 00:21:20.560 have it set so that every week the page only allows 20 new people to download it, you'd be far 271 00:21:20.560 --> 00:21:25.360 more likely to go and see if you can grab it. And even more so, if when you try, you see that it has 272 00:21:25.360 --> 00:21:30.560 already run out for the week. Result? You join a list that notifies you the next time 20 or more 273 00:21:30.560 --> 00:21:35.200 checklist become available for download. What happens next? When you get that notification, you'll 274 00:21:35.200 --> 00:21:38.400 hit the link on your phone and you'll go to the page because you don't want to miss out again. 275 00:21:38.400 --> 00:21:43.280 By employing scarcity, we make what would otherwise be a neat free download into a desirable 276 00:21:43.280 --> 00:21:48.880 thing that not everyone has access to. You also, by extension, would be far more likely to consume it 277 00:21:48.880 --> 00:21:52.800 when you do get your hands on it all because of how we control supply. Cool, right? 278 00:21:53.760 --> 00:22:00.800 Honest scarcity. The most ethical scarcity. The easiest scarcity strategy is honesty. Wait, what? 279 00:22:00.800 --> 00:22:05.680 Let me explain. I'm sure right now you probably couldn't handle a thousand clients tomorrow, right? 280 00:22:05.680 --> 00:22:11.600 But how many could you handle? Five, ten, twenty-five. Well, you might as well define a number that 281 00:22:11.600 --> 00:22:15.840 you're willing to take on in a given period of time and then advertise it. Simply letting people 282 00:22:15.840 --> 00:22:19.840 know that you are three-fourths the way to capacity this week will move people over the edge to 283 00:22:19.840 --> 00:22:24.080 buying from you. Or letting people know that you're 81% of capacity in your total business will 284 00:22:24.080 --> 00:22:29.200 make more people likely to sign up with you quote before they lose the chance. Scarcity also 285 00:22:29.200 --> 00:22:33.920 implies within it social proof. If you are 81% of capacity, then a decent amount of people 286 00:22:33.920 --> 00:22:37.600 have made the decision to work with you and the closer you get to your arbitrary fullness, 287 00:22:37.600 --> 00:22:41.520 the faster the spots will disappear. But only you get to draw where that line is quote full. 288 00:22:42.160 --> 00:22:48.160 Neat, right? Summary points. Employ one or multiple methods of scarcity in your business. 289 00:22:48.240 --> 00:22:52.240 You will drive a faster purchasing decision from your prospects and at higher prices. 290 00:22:52.240 --> 00:22:54.960 Just let them know your limits and let psychology do the rest. 291 00:22:55.600 --> 00:22:58.960 Now that we've covered some of my favorite scarcity tactics that you can use your around, 292 00:22:59.520 --> 00:23:04.080 what else do you do to increase demand without changing anything about your offer? 293 00:23:04.080 --> 00:23:07.600 Increase urgency. We will cover that next. Protib. 294 00:23:08.400 --> 00:23:15.040 Extreme scarcity. If you don't hate money, sell a very limited supply of one-on-one access. 295 00:23:15.040 --> 00:23:18.640 You can do that via any of the mediums described in the delivery queue, 296 00:23:18.640 --> 00:23:24.240 direct message access, email access, phone access, voice memo access, zoom access, etc. 297 00:23:24.240 --> 00:23:28.320 There are lots of ways you can do this, but I promise you this, if you want to immediately make 298 00:23:28.320 --> 00:23:31.840 a lot of money, create a very exclusive service level based on access to you. 299 00:23:32.880 --> 00:23:38.400 That you cap at a tiny number, price it very high, then tell people. You will make more money 300 00:23:38.400 --> 00:23:43.600 than you thought possible. These also tend to be some of the best clients and limit your delivery 301 00:23:43.600 --> 00:23:48.480 to something that you don't hate. For me, I hate emails and messages, but don't mind zoom calls. 302 00:23:49.040 --> 00:23:54.240 Make it work for your working style. The cream of the crop, the 1% of the 1% will adjust and take 303 00:23:54.240 --> 00:23:59.280 action. Protib. Once you're out, you can never come back. You can create scarcity by also 304 00:23:59.280 --> 00:24:03.120 capping your service level and saying that if they leave, they can never return. This type of 305 00:24:03.120 --> 00:24:07.680 scarcity makes people think extra hard about leaving. I started doing this with my gyms early on, 306 00:24:07.680 --> 00:24:11.600 then I was in a mastermind that employed this. Then I started using it in my highest level at gym 307 00:24:11.680 --> 00:24:16.400 lords. This works best with small groups, like the above example, as groups become much bigger 308 00:24:16.400 --> 00:24:19.280 at the tactic loses some of its teeth, speaking from experience. 309 00:24:22.400 --> 00:24:28.240 Chapter 12. Enhancing the offer. Urgency. Deadlines drive decisions. 310 00:24:29.520 --> 00:24:36.320 Scarcity is a function of quantity. Urgency is a function of time. This is where you only 311 00:24:36.320 --> 00:24:42.800 limit when people can sign up, rather than how many. Having a defined deadline or cut off, 312 00:24:42.800 --> 00:24:49.520 or purchase or action to occur creates urgency. Frequently, scarcity and urgency are used together, 313 00:24:49.520 --> 00:24:54.000 but I will separate them out for you to illustrate the concepts. I'm going to show you four of 314 00:24:54.000 --> 00:24:59.840 my favorite ways of using urgency on a consistent basis, ethically. One, rolling cohorts, 315 00:24:59.920 --> 00:25:05.520 two, rolling seasonal urgency, and three, promotional or pricing urgency, four, 316 00:25:05.520 --> 00:25:11.360 exploding opportunity. They will employ urgency in your business without being phony. My favorite 317 00:25:11.360 --> 00:25:16.320 way of doing this is having cohorts of clients start on a regular cadence. This has the added 318 00:25:16.320 --> 00:25:20.640 operational benefit of helping you create a choreographed onboarding experience for new clients. 319 00:25:20.640 --> 00:25:26.880 As you scale, this will become increasingly important. Number one, cohort-based rolling urgency. 320 00:25:27.440 --> 00:25:32.720 For example, if you start clients every week, even in unlimited amounts, you can say, 321 00:25:32.720 --> 00:25:36.560 if you sign up today, I can get you in with our next group that kicks off on Monday. Otherwise, 322 00:25:36.560 --> 00:25:40.160 you'll have to wait until our next kickoff date. If you wanted to juice it up a little bit, 323 00:25:40.160 --> 00:25:44.320 you could say, I actually had a client who signed up a few weeks ago drop out, so I have an opening 324 00:25:44.320 --> 00:25:47.840 for our next cohort that kicks off on Monday. If you're pretty sure you're going to do this sooner 325 00:25:47.840 --> 00:25:51.040 later, it might as well get on in it now, so you can start reaping the benefits sooner, 326 00:25:51.040 --> 00:25:54.880 rather than paying the same in waiting. Those two tweaks above have pushed so many 327 00:25:54.880 --> 00:25:58.320 sales over the edge by just reminding a potential customer that if they sign up, they will be 328 00:25:58.320 --> 00:26:02.240 starting on Monday, and if they do not, they will have to wait a week. It's small things like this 329 00:26:02.240 --> 00:26:05.840 that nudge people to take the action that they know they should already take anyways. 330 00:26:06.640 --> 00:26:11.520 Obviously, the less frequently you kick off new customers, the more powerful this is. 331 00:26:11.520 --> 00:26:16.720 For example, if you only start clients two times a year, people will be very inclined to sign up, 332 00:26:16.720 --> 00:26:21.840 especially as the data approaches. Even starting new clients every other week can confer this urgency 333 00:26:22.800 --> 00:26:27.360 nudge. What if I lose sales by turning business away? Just like guarantees, there's always a 334 00:26:27.360 --> 00:26:31.680 fear that you will make less money by employing the strategy. We are afraid that we will lose sales 335 00:26:31.680 --> 00:26:35.840 that we would otherwise have made. Every experienced marketer on the planet will tell you it is a 336 00:26:35.840 --> 00:26:40.480 fear and it is unfounded. The biggest sales on a week long campaign or launch happened in the 337 00:26:40.480 --> 00:26:46.320 last four hours of the last day, up to 50 to 60%. That means that the last 3% of the time 338 00:26:46.320 --> 00:26:51.920 allotted creates 50 to 60% of the sales. That's completely illogical but also unmistakably human. 339 00:26:52.640 --> 00:26:57.920 So, just like a guarantee, you will make more money from the many people who decided to take action, 340 00:26:57.920 --> 00:27:02.640 than people who already missed out because in reality, those people were never going to buy. Heck, 341 00:27:02.640 --> 00:27:05.600 they didn't even buy when they had their feet to the fire. So why would they buy now? 342 00:27:06.640 --> 00:27:11.920 Good to remember. What to do if you just started a cohort and someone wants to buy? You have two 343 00:27:12.560 --> 00:27:16.480 options. One, you can offer them a speedy personalized onboarding to get them up to speed as a 344 00:27:16.480 --> 00:27:21.040 bonus for signing up today and still get them in. Or, my preference, you can explain to them that 345 00:27:21.040 --> 00:27:24.880 since the next group starts in a little, they will have the advantage of having more time to 346 00:27:24.880 --> 00:27:29.920 review the materials, talk to their employees for a B2B product, for example, or families for a 347 00:27:29.920 --> 00:27:35.120 B2C product. On top of that, they can have a more extended payment plan that you can only make 348 00:27:35.120 --> 00:27:40.480 available to them since the start date is so far out and advantage that most clients do not get. 349 00:27:41.040 --> 00:27:44.720 In the end, remember, you always have the advantage because you are the one who calls the shots. 350 00:27:46.720 --> 00:27:52.240 Two, rolling seasonal urgency. In a digital setting, having actual signup date countdown 351 00:27:52.240 --> 00:27:57.840 is very useful. But make sure they are real. If they aren't, you'll lose credibility and just 352 00:27:57.840 --> 00:28:02.240 look like every other wannabe marketer. This is very common with internet businesses that 353 00:28:02.240 --> 00:28:06.240 use launch models. I personally love having the dates that I am running a promotion through 354 00:28:06.240 --> 00:28:11.520 on my landing pages and in my copy. I want it to be visible everywhere. The nice thing is that 355 00:28:11.520 --> 00:28:15.440 you can always fire up another ad campaign and a new landing page with new dates and be right as 356 00:28:15.440 --> 00:28:20.320 rain. You will see your conversions go up through the roof and it takes maybe five minutes of editing 357 00:28:20.320 --> 00:28:26.320 while worth the time investment. Example, our New Year promotion ends January 30th. Next month, 358 00:28:26.320 --> 00:28:32.320 our Valentine's Day lover promotion ends February 30th. Next month, our sexy by spring special 359 00:28:32.320 --> 00:28:38.720 ends March 31st. Next month, our fools in love April promo ends April 30th. The actual promotion 360 00:28:38.720 --> 00:28:43.600 may be the same, but naming it something different by season gives you the real differentiator that 361 00:28:43.600 --> 00:28:49.520 gives you a start and a finish. Deadlines drive decisions. By simply having these, you can point 362 00:28:49.520 --> 00:28:55.280 to them and let human beings push themselves over the edge so as not to miss out. Pro tip for local 363 00:28:55.280 --> 00:29:00.160 businesses. This is my number one strategy for local businesses. They must vary their marketing 364 00:29:00.240 --> 00:29:05.520 more frequently than national advertisers. Putting a new wrapper with a date on the same core service 365 00:29:05.520 --> 00:29:09.520 gives you urgency and novelty that will consistently outperform the same old campaigns. 366 00:29:10.640 --> 00:29:16.320 Three, pricing or bonus based urgency. This is another way of creating urgency using your 367 00:29:16.320 --> 00:29:21.040 actual offer or promotion slash pricing structure as the thing they could miss out on. Kind of 368 00:29:21.040 --> 00:29:26.720 brilliant. It allows businesses that sell clients you around to still use urgency. For example, 369 00:29:27.280 --> 00:29:31.120 yes, let's get you started today so you can take advantage of the discount you came in for. 370 00:29:31.120 --> 00:29:34.720 I'm not sure how long we'll be running it as we change them every four weeks or so. 371 00:29:34.720 --> 00:29:38.800 And this is one of the better ones we've run in a while. This creates some fear of missing out on 372 00:29:38.800 --> 00:29:43.840 the promotion or discount or bonuses rather than your actual service. It would be a lie to say that 373 00:29:43.840 --> 00:29:47.840 if you own a roofing business, you won't service them if they buy after the date. But if you talk 374 00:29:47.840 --> 00:29:52.560 specifically about the promotion, you can often elicit the same urgency on buying the prospect 375 00:29:52.640 --> 00:29:57.040 while maintaining your integrity when win. You can interchange a pricing promotion, 376 00:29:57.040 --> 00:30:02.480 discount or added bonuses like free install or free onboarding or an extra workshop valued at 377 00:30:02.480 --> 00:30:07.760 $1,000 if they buy now. These are all things you can swap around your core offer to create urgency. 378 00:30:08.960 --> 00:30:14.400 Pro tip. Clean your pipeline with every price change. If you ever really are planning on raising 379 00:30:14.400 --> 00:30:18.880 your prices, hopefully soon if you're reading this book right now, then you can always clean out 380 00:30:18.880 --> 00:30:23.760 your pipeline by letting people know the price is going up so get in now. Never raise your 381 00:30:23.760 --> 00:30:28.880 prices without letting people know. It shows a position of strength and will give you a nice 382 00:30:28.880 --> 00:30:31.600 little influx of cash from the people in the pipeline who are on the fence. 383 00:30:33.200 --> 00:30:35.200 4. Exploding Opportunity 384 00:30:35.920 --> 00:30:40.560 On occasion, you will be exposing the prospect to an arbitrage opportunity. The opportunity 385 00:30:40.560 --> 00:30:45.200 itself has a ticking time clock as all great opportunities do. Every second someone delays 386 00:30:45.200 --> 00:30:51.760 they miss out on disproportionate gains. Example. If I were explaining an arbitrage opportunity 387 00:30:51.760 --> 00:30:56.000 between buying products on eBay and selling them on Amazon, this market efficiency would correct 388 00:30:56.000 --> 00:31:01.040 itself over time. The sooner someone acts, the better will be for them. This could be true for 389 00:31:01.040 --> 00:31:05.200 selling someone on the opportunity of trading cryptocurrencies, buying a stock, getting into a new 390 00:31:05.200 --> 00:31:09.680 platform to advertise before competitors jump on the bandwagon or anything else like that. 391 00:31:10.400 --> 00:31:14.960 Highly competitive job environments often get job offers that are exploding offers every day. 392 00:31:15.360 --> 00:31:20.480 They wait to take the job, their pay or bonuses decrease. This forces prospects to make 393 00:31:20.480 --> 00:31:24.240 fast decisions rather than try and wait it out to see if they get a better offer. 394 00:31:24.800 --> 00:31:28.000 All of these examples show opportunities that decay with time, 395 00:31:28.000 --> 00:31:31.680 so if you find yourself in front of an opportunity like this, make sure to emphasize it. 396 00:31:32.480 --> 00:31:33.280 Summary Points 397 00:31:33.920 --> 00:31:38.160 Adding a deadline and incorporating one or multiple forms of urgency will get more people to 398 00:31:38.160 --> 00:31:42.480 take action than otherwise. I have employed all four of these methods with great effectiveness. 399 00:31:42.480 --> 00:31:45.280 I suggest you do the same. Next up, bonuses. 400 00:31:46.240 --> 00:31:50.560 Free gift number seven, bonus tutorial, how to ethically use scarcity and urgency. 401 00:31:50.560 --> 00:31:54.080 If you want to walk through some live ethical examples of scarcity and urgency with me, 402 00:31:54.080 --> 00:31:58.240 go to acquisition.com for slash training for slash offers and select scarcity and urgency 403 00:31:58.240 --> 00:32:02.640 to watch a short video tutorial. You'll also be able to grab my scarcity and urgency checklist 404 00:32:02.640 --> 00:32:06.000 that I use when creating offers. As always, it's absolutely free. Enjoy. 405 00:32:07.760 --> 00:32:11.440 Hey guys, hope you enjoyed scarcity and urgency and are already thinking about ways you can 406 00:32:11.520 --> 00:32:17.040 use it in your business so you can sell more stuff to more people. I have a visual course version 407 00:32:17.040 --> 00:32:21.840 of this on my site. Acquisition.com for slash training. It's absolutely free. You don't even have 408 00:32:21.840 --> 00:32:27.920 to give me your email. It's purely yours and it comes with downloads and checklists and things 409 00:32:27.920 --> 00:32:31.680 that you can immediately print out or just use on your computer to start executing this stuff 410 00:32:31.680 --> 00:32:35.120 in the real world. Because at the end of the day, if you don't do anything, nothing is going to change. 411 00:32:35.120 --> 00:32:38.640 And next episode, we're going to talk about two more offer enhancers. 412 00:32:38.640 --> 00:32:45.280 bonuses and guarantees can't wait to see you there. By the way, share this favor of you. 413 00:32:45.280 --> 00:32:46.400 That makes you an awesome person.