WEBVTT

1
00:00:00.000 --> 00:00:04.120
Hey guys, this is another special edition collaboration between the game

2
00:00:04.120 --> 00:00:09.320
podcast and $100 million offers. Today we're going to break down the pricing and

3
00:00:09.320 --> 00:00:11.920
commodity problem. This is the number one issue that most businesses have and

4
00:00:11.920 --> 00:00:16.200
why they can't make enough profit. The starving crowd problem, which is that

5
00:00:16.200 --> 00:00:20.560
they're selling to people who don't have enough pain, who are hard to find, who

6
00:00:20.560 --> 00:00:23.640
are in markets that are not growing and there's an easy fix for that and I'll

7
00:00:23.640 --> 00:00:27.920
walk you through the process. And the third chapter we'll go over today is

8
00:00:27.920 --> 00:00:31.100
charge what it's worth. All right, this is probably one of the biggest

9
00:00:31.100 --> 00:00:33.440
unlocks for the majority of people who have listened to the book in the many

10
00:00:33.440 --> 00:00:38.360
messages and reviews that I have read of it. These upcoming chapters are heavy

11
00:00:38.360 --> 00:00:46.080
hitting and I hope you enjoy them. Section two, pricing, how to charge lots of

12
00:00:46.080 --> 00:00:51.400
money for stuff. Chapter three, pricing, the commodity problem, think different,

13
00:00:51.400 --> 00:00:57.200
Steve Jobs. Gore or Die is a core tenant at our companies. We believe every

14
00:00:57.200 --> 00:01:00.480
person, every company and every organism is either growing or dying.

15
00:01:00.480 --> 00:01:05.320
Maintenance is a myth. What this means is if your company isn't growing, it's

16
00:01:05.320 --> 00:01:10.480
dying. This is sobering reality for many of us. I learned the hard way and my

17
00:01:10.480 --> 00:01:15.280
business suffered for a long time because of it. Let me explain. The market is

18
00:01:15.280 --> 00:01:20.200
continuously growing. The stock market grows at 9% per year. If we aren't growing

19
00:01:20.200 --> 00:01:24.640
at 9% per year, we are falling behind. Maintenance in the most generic sense

20
00:01:24.640 --> 00:01:29.400
would be 9% per year growth year-to-year. Furthermore, if you're in a growing

21
00:01:29.400 --> 00:01:33.720
marketplace, then you might have to grow at 20% to 30% per year just to keep up

22
00:01:33.720 --> 00:01:38.880
or risk falling behind. So you can see how maintenance is a myth. So then what

23
00:01:38.880 --> 00:01:44.840
does it take to grow? Thankfully, just three simple things. One, get more customers.

24
00:01:44.840 --> 00:01:49.680
Two, increase their average purchase value. Three, get them to buy more times.

25
00:01:49.680 --> 00:01:54.120
That's it. Sure, there are lots of ways to acquire customers and zillions of

26
00:01:54.120 --> 00:01:57.960
ways to increase order value and purchase frequency, but simply put. That's it.

27
00:01:57.960 --> 00:02:02.800
Those are the only three ways to grow. Example, if I sell 10 clients a month and

28
00:02:02.800 --> 00:02:06.200
a client is worth a thousand dollars to me over their lifetime, through average

29
00:02:06.200 --> 00:02:11.440
card value times number of average purchases, then my business will cap at $10,000 per

30
00:02:11.440 --> 00:02:18.200
month, aka 10 times $1,000. 10 new clients per month times $1,000 lifetime

31
00:02:18.200 --> 00:02:23.080
value equals $10,000 per month in max revenue. If you want to grow, you've

32
00:02:23.080 --> 00:02:27.240
either got to sell more clients every month while maintaining suitable margins or

33
00:02:27.240 --> 00:02:30.680
have them be worth more by increasing a profit per purchase or a number of times

34
00:02:30.680 --> 00:02:36.880
they buy. That's it. Author note, only two ways to grow. To simplify this concept

35
00:02:36.880 --> 00:02:40.480
even more, there are really only two ways to grow. Get more customers and increase

36
00:02:40.480 --> 00:02:44.280
each customer's value. Increasing each customer's value has two sub-buckets.

37
00:02:44.280 --> 00:02:48.880
One, increasing profit per purchase. Two, increasing the number of times they buy.

38
00:02:49.880 --> 00:02:53.280
For the purpose of this book, I highlight both of those sub-buckets as individual

39
00:02:53.280 --> 00:02:56.760
growth paths. I did this because I think it will be easier to understand the money

40
00:02:56.760 --> 00:03:01.080
models that will come in volume three. All three, getting more customers,

41
00:03:01.080 --> 00:03:04.440
increasing their average purchase value and getting them to buy more are repeated

42
00:03:04.440 --> 00:03:08.280
themes in this book. But if you seek simplicity, both increasing average purchase

43
00:03:08.280 --> 00:03:11.120
value and increasing the number of times the customer buys results in one

44
00:03:11.120 --> 00:03:16.400
outcome, increasing each customer's value. Business terms, before going any

45
00:03:16.400 --> 00:03:19.640
further and to better flesh out the concepts that will follow, we should take

46
00:03:19.640 --> 00:03:23.800
a second to define and better understand some key business concepts. When I

47
00:03:23.800 --> 00:03:27.200
stood in that Las Vegas penthouse in my beast mode t-shirt, I was clueless about

48
00:03:27.200 --> 00:03:33.640
such terms. Let me help you be better than, well, me. Gross profit. The revenue

49
00:03:33.640 --> 00:03:38.040
minus the direct cost of servicing an additional customer. If I sell lotion for

50
00:03:38.040 --> 00:03:43.960
$10 and it costs me $2, my gross profit is $8 or 80%. If I sell agency

51
00:03:43.960 --> 00:03:48.120
services for $1,000 per month and it costs me $100 per month in labor to run

52
00:03:48.120 --> 00:03:54.000
that clients advertising, then my gross profit is $900 or 90%. Note, this is not

53
00:03:54.000 --> 00:03:59.560
net profit. Net profit is what's left over after all expenses are paid, not just

54
00:03:59.560 --> 00:04:05.320
the direct cost of fulfillment. Lifetime value. The gross profit accrued over the

55
00:04:05.320 --> 00:04:09.960
entire lifetime of a customer. This is gross profit multiplied by the number of

56
00:04:09.960 --> 00:04:13.760
purchases an average customer will make over their lifetime. Using the

57
00:04:13.760 --> 00:04:18.120
example above, if the average customer stays five months and they pay $1,000

58
00:04:18.120 --> 00:04:21.840
per month while it costs me $100 per month to fulfill, then their lifetime

59
00:04:21.840 --> 00:04:30.280
value is $4,500. Here's the breakdown. Revenue equals $1,000 per month times 90%

60
00:04:30.280 --> 00:04:37.680
gross margins times five month equals $4,500 lifetime value or LTV. Note that the

61
00:04:37.680 --> 00:04:43.880
indirect costs like admin, software, rent, etc are not included in LTV. Note, you

62
00:04:43.880 --> 00:04:47.480
will find different definitions for lifetime value depending on the source. The

63
00:04:47.480 --> 00:04:51.120
biggest difference is that some sources only count total revenue while others

64
00:04:51.120 --> 00:04:56.160
focus on gross profit over the lifespan. I focus on gross profit. You may also see

65
00:04:56.160 --> 00:05:01.000
me refer to this as LTGP for lifetime gross profit in other texts just for

66
00:05:01.000 --> 00:05:06.840
clarity sake. Value driven versus price driven purchases. This book was intended

67
00:05:06.840 --> 00:05:10.840
to be a textbook for any business that wants to grow. I spent and continue to

68
00:05:10.840 --> 00:05:14.840
spend hundreds of hours on calls and in-person meetings consulting entrepreneurs

69
00:05:14.840 --> 00:05:18.920
on crafting their offers. I've seen the ones that take off into the stratosphere

70
00:05:18.920 --> 00:05:23.520
and those that fizzle. Having a grand slam offer makes it almost impossible to lose

71
00:05:23.520 --> 00:05:28.840
but why? What gives it such an impact? In short, having a grand slam offer helps

72
00:05:28.840 --> 00:05:32.680
with all three of their requirements for growth. Getting more customers, getting

73
00:05:32.680 --> 00:05:38.000
them to pay more and getting them to do some more times. How? You ask. It allows

74
00:05:38.000 --> 00:05:41.000
you to differentiate yourself from the marketplace. In other words, it allows

75
00:05:41.000 --> 00:05:46.960
you to sell your product based on value, not on price. Commodityized equals price

76
00:05:46.960 --> 00:05:52.320
driven purchases, aka a race to the bottom. Differentiated equals a value driven

77
00:05:52.320 --> 00:05:58.120
purchase, aka selling a category of one with no comparison. Yes, market matters

78
00:05:58.120 --> 00:06:02.240
which I'll expand on in the next chapter. Commodity, as I define it, is a product

79
00:06:02.240 --> 00:06:06.200
available for many places. For that reason, its prone to purchases based on price

80
00:06:06.200 --> 00:06:09.920
instead of value. If all products are equal, then the cheapest one is the most

81
00:06:09.920 --> 00:06:13.840
valuable by default. In other words, if a prospect compares your product to

82
00:06:13.840 --> 00:06:16.920
another and thinks, these are pretty much the same. I'll buy the cheaper one.

83
00:06:16.920 --> 00:06:21.320
Then they commoditize you. How embarrassing. But really, it's one of the worst

84
00:06:21.320 --> 00:06:25.480
experiences a value driven entrepreneur can have. This is a massive problem for

85
00:06:25.480 --> 00:06:28.400
the entrepreneur because commodities are valued at the point of market

86
00:06:28.400 --> 00:06:31.960
efficiency. This means that the marketplace drives the price point down through

87
00:06:32.000 --> 00:06:36.080
competition until the margins are just enough to keep the lights on just enough

88
00:06:36.080 --> 00:06:39.640
to become a slave to their business. The business makes just enough to justify

89
00:06:39.640 --> 00:06:43.840
the owner waiting anxiously for things to turn around. And by the time that lie

90
00:06:43.840 --> 00:06:48.840
is realized, they're in too deep to pivot, at least until now. A grand slam offer

91
00:06:48.840 --> 00:06:53.240
solves this problem. But what does a grand slam offer do? All right, let's start

92
00:06:53.240 --> 00:06:56.440
by defining a grand slam offer. It's an offer you present to the marketplace

93
00:06:56.440 --> 00:07:00.600
that cannot be compared to any other product or service available, combining

94
00:07:00.600 --> 00:07:04.880
attractive promotion, an unmatchable value proposition, a premium price,

95
00:07:05.160 --> 00:07:09.720
and an unbeatable guarantee with a money model, aka payment terms, that allows

96
00:07:09.720 --> 00:07:13.280
you to get paid to get new customers forever, removing the cash and

97
00:07:13.280 --> 00:07:17.280
train on business growth. In other words, it allows you to sell in a category

98
00:07:17.280 --> 00:07:21.000
of one or to apply another great phrase to sell in a vacuum.

99
00:07:21.760 --> 00:07:24.680
The resulting purchasing decision for the prospect is now between your

100
00:07:24.680 --> 00:07:28.400
product and nothing. So you can sell it whatever price you get the prospect

101
00:07:28.480 --> 00:07:33.640
to perceive, not in comparison to anything else. As a result, it gets you more

102
00:07:33.640 --> 00:07:38.200
customers at higher ticket prices for less money. If you like fancy marketing

103
00:07:38.200 --> 00:07:43.160
terms, it breaks down to this. One, increased response rates, think clicks,

104
00:07:43.400 --> 00:07:48.720
two, increased conversions, think sales, three, premium prices, think

105
00:07:48.720 --> 00:07:53.240
charging a lot of money. Having a grand slam offer increases your response

106
00:07:53.240 --> 00:07:57.120
rates to advertisements, aka more people will click or take action on an

107
00:07:57.120 --> 00:08:00.600
advertisement they see containing a grand slam offer. If you pay the same

108
00:08:00.600 --> 00:08:05.120
amount for eyeballs, but one, more people respond, two, more of those responses

109
00:08:05.120 --> 00:08:09.760
buy, and three, they buy for higher prices, your business grows. I've struck

110
00:08:09.760 --> 00:08:13.680
gold on my fair share of offers, not because I've got some super power, but

111
00:08:13.680 --> 00:08:17.040
because I've just done this a lot of times and failed even more. I've sorted

112
00:08:17.040 --> 00:08:19.840
through the crap that chronically fails and pocketed all the stuff that

113
00:08:19.840 --> 00:08:24.360
reproducibly succeeds and put it into this book. Here's the key takeaway from

114
00:08:24.440 --> 00:08:29.760
all this. A business does the same work in both cases with a commoditized offer

115
00:08:29.880 --> 00:08:34.320
or a grand slam offer that fulfillment is the same. But if one business uses a

116
00:08:34.320 --> 00:08:38.440
grand slam offer and another uses a commodity offer, the grand slam offer

117
00:08:38.440 --> 00:08:42.840
makes that business appear as if it had a totally different product. And that

118
00:08:42.840 --> 00:08:47.520
means a value driven versus price driven purchase. If you have a commodity

119
00:08:47.520 --> 00:08:52.120
offer, you will compete on price, having a price driven purchase versus a value

120
00:08:52.200 --> 00:08:57.040
driven purchase. Your grand slam offer, however, forces a prospect to stop and

121
00:08:57.040 --> 00:09:01.520
think differently to assess the value of your differentiated product. Doing

122
00:09:01.520 --> 00:09:04.720
this establishes you as your own category, which means it's too difficult to

123
00:09:04.720 --> 00:09:09.560
compare prices, which means you recalibrate the prospect's value meter. Real

124
00:09:09.560 --> 00:09:14.520
life, grand slam offer money math before and after. Quick backstory. One of our

125
00:09:14.520 --> 00:09:17.840
companies is a software that advertising agencies use to work leads for their

126
00:09:17.840 --> 00:09:21.280
customers. Using the software, agencies transform their offer from a

127
00:09:21.280 --> 00:09:25.080
commoditized offer of lead generation services to a grand slam offer of pay

128
00:09:25.080 --> 00:09:28.880
for performance. Let me show you the multiplicative effect it has on revenue

129
00:09:28.880 --> 00:09:32.520
for business. While rounded for illustration sake, the values I will share

130
00:09:32.520 --> 00:09:36.480
with you are based on real numbers, a lead generation agency selling services

131
00:09:36.480 --> 00:09:42.080
to brick and mortar businesses experience. Old commoditized way, price

132
00:09:42.080 --> 00:09:47.640
driven, race to the bottom, commoditized offer, $1,000 down, then a $1,000

133
00:09:47.640 --> 00:09:53.200
per month retainer for agency services. I will read through the chart that is

134
00:09:53.200 --> 00:10:01.320
displayed advertising spend $10,000 impressions reach $300,000 response rate

135
00:10:01.320 --> 00:10:10.080
0.0013 appointments booked 40 show rate 75% appointment showed 30 closing

136
00:10:10.080 --> 00:10:18.520
percentage 16% appointments closed $5 price $1,000 total $5,000 row as or

137
00:10:18.520 --> 00:10:23.480
return on advertising spend 0.5 to one. Here's the breakdown. At 0.5 to one

138
00:10:23.480 --> 00:10:27.200
return on advertising spend, you lose money getting customers. But in 30 days

139
00:10:27.200 --> 00:10:31.920
those five customers will pay another $1,000 each bringing you $10,000 in total

140
00:10:31.920 --> 00:10:36.080
and breaking even. The next month, the $5,000 that comes in will be your first

141
00:10:36.080 --> 00:10:39.720
profitable month and each month thereafter will be profitable assuming they all

142
00:10:39.720 --> 00:10:44.720
stay. This is an example of a commoditized service. Normal agency work. There's

143
00:10:44.720 --> 00:10:48.480
a million of them and they all look the same. Commoditized businesses and

144
00:10:48.480 --> 00:10:51.480
offers have a harder time getting responses from ads because all their

145
00:10:51.480 --> 00:10:55.840
marketing looks the same as everyone else's. No, it all looks the same because

146
00:10:55.840 --> 00:11:00.080
they're all making the same offer. You pay us to work, we do work, maybe get

147
00:11:00.080 --> 00:11:03.520
results from that work, maybe you don't. It's reasonable but easily

148
00:11:03.520 --> 00:11:08.080
duplicated and subject to commoditization. This commodization creates a

149
00:11:08.080 --> 00:11:12.360
price driven purchase. You were forced to be priced competitively to get clients

150
00:11:12.360 --> 00:11:16.480
and to stay that way to keep them. If the client sees a cheaper version of the

151
00:11:16.480 --> 00:11:20.320
same thing, then the value discrepancy will cause them to swap providers. This is

152
00:11:20.320 --> 00:11:24.880
a dilemma. Lose this client, the rest of your clients and potential clients or

153
00:11:24.880 --> 00:11:30.760
stay competitive. Your margins become so thin they vanish. Furthermore, it's hard

154
00:11:30.760 --> 00:11:34.360
to get prospects to say yes and keep them saying less unless you're

155
00:11:34.360 --> 00:11:37.720
hypervigilant about clients commoditizing your business by staying again

156
00:11:37.720 --> 00:11:41.640
competitive. And that's the problem with the old commoditized way. They're able

157
00:11:41.640 --> 00:11:45.400
to compare. Unless you switch to a grand slam offer, your prices will keep

158
00:11:45.400 --> 00:11:49.040
getting beat down. The business eventually dies or the entrepreneur throws in

159
00:11:49.040 --> 00:11:53.080
the towel. No bueno. We want to make an offer that's so different that you can

160
00:11:53.080 --> 00:11:55.920
skip the awkward explanation of why your products different from everyone

161
00:11:55.920 --> 00:11:58.960
else's, which if they have to ask, then they are probably too ignorant to

162
00:11:58.960 --> 00:12:02.520
understand the explanation anyways. And instead, just have the offer do that

163
00:12:02.520 --> 00:12:06.200
work for you. That's the grand slam offer way. Let's dive in to see the

164
00:12:06.200 --> 00:12:11.280
contrast in sales numbers. New grand slam offer way differentiated incomparable

165
00:12:11.280 --> 00:12:17.760
value driven. Grand slam offer. Pay one time, no recurring fee, no retainer, just

166
00:12:17.760 --> 00:12:21.960
cover the ads bet. I'll generate the leads and work your leads for you and only

167
00:12:21.960 --> 00:12:25.760
pay me if people show up and I'll guarantee you 20 people in your first month or

168
00:12:25.760 --> 00:12:29.160
you get your next month free. I'll also provide all the best practices from all

169
00:12:29.160 --> 00:12:33.440
their businesses just like yours. Daily sales coaching for your staff, tested

170
00:12:33.440 --> 00:12:37.120
scripts, tested price points and offers to swipe into ploy, sales recordings,

171
00:12:37.120 --> 00:12:40.240
and everything else you need to sell and fulfill your customers. I'll give you

172
00:12:40.240 --> 00:12:44.600
the entire playbook for insert industry absolutely free just for becoming a

173
00:12:44.600 --> 00:12:48.120
client. So in a nutshell, I'm feeding people into your business showing you

174
00:12:48.120 --> 00:12:51.960
exactly how to sell them so that you get the highest prices, which means that

175
00:12:51.960 --> 00:12:55.600
you make the most money possible. Sound fair enough? It's clear that these are

176
00:12:55.600 --> 00:12:59.160
drastically different offers. But so what? Where's the money? Let's compare

177
00:12:59.160 --> 00:13:04.040
both in the chart below. Avertising spend $10,000, same as before. Impressions

178
00:13:04.040 --> 00:13:11.080
reached $300,000, same as before. Response rate, 0.0033, 2.5 times the

179
00:13:11.080 --> 00:13:14.400
response rate because you have a more peeling offer, so more people respond.

180
00:13:14.400 --> 00:13:21.160
Appointment's booked, 40 becomes 100. Show rate, 75% stays the same.

181
00:13:21.160 --> 00:13:26.720
Appointing showed, 30, goes to 75 and that's just a result of numbers flowing

182
00:13:26.720 --> 00:13:32.720
on the funnel. Closing percentage goes from 16% to 37%. 2.3 times the

183
00:13:32.720 --> 00:13:37.040
closing because there's more value, some more people buy. Appointment's closed,

184
00:13:37.040 --> 00:13:42.200
goes from 5 to 28, that's just a result of the higher closing percentage. Price

185
00:13:42.200 --> 00:13:47.120
goes from $1,000 to start to 39.97, just four times the price because we're

186
00:13:47.120 --> 00:13:51.440
charging one time V versus recurring. The total collected upfront goes from

187
00:13:51.440 --> 00:13:58.560
$5,000 to $112,000. That's 22.4 times the cash upfront collected. And the

188
00:13:58.560 --> 00:14:04.080
row as goes from 0.5 to 1 to 11.2 to 1, which means you're getting paid to get

189
00:14:04.080 --> 00:14:08.320
new customers. Breakdown. You spend the same amount of money out for the same

190
00:14:08.320 --> 00:14:11.000
eyeballs. Then you get 2.5 times more people to respond to your

191
00:14:11.000 --> 00:14:15.040
advertisement because it's a more compelling offer. From there, you close 2.5 times

192
00:14:15.040 --> 00:14:18.000
as many people because the offer is so much more compelling. From there, you're

193
00:14:18.000 --> 00:14:22.000
able to charge four times higher prices up front. The end result is 2.5 times

194
00:14:22.000 --> 00:14:27.520
2.5 times 4 equals 22.4 times more cash collected up front. Yes, you just

195
00:14:27.520 --> 00:14:34.160
spent $10,000 to make $112,000. You just made money getting new customers.

196
00:14:34.160 --> 00:14:38.560
Comparison. Remember the old way? The way you lost half the ads went up front.

197
00:14:38.560 --> 00:14:43.600
With the new way, you're making more money and getting more customers. This

198
00:14:43.600 --> 00:14:47.120
means that your cost to acquire a customer is so cheap relative to how much you

199
00:14:47.600 --> 00:14:50.880
make that your limiting factor becomes your ability to do the work you already love doing.

200
00:14:51.520 --> 00:14:55.840
Cash flow and acquire customers is no longer your bottleneck because it's 22.4

201
00:14:55.840 --> 00:15:00.480
times more profitable than the old model. Yep, you read that right. This is the part in the action

202
00:15:00.480 --> 00:15:04.720
movie where you walk away from an explosion and slow motion. This is the exact grand slam

203
00:15:04.720 --> 00:15:07.920
offer we used with our software business that serves agencies. The numbers can become

204
00:15:07.920 --> 00:15:14.320
wild fast. I know. 22.4x better sounds unreasonable, but that's the point. If you play the same

205
00:15:14.320 --> 00:15:18.000
game everyone else does, you'll get the same results everyone else does mediocre.

206
00:15:18.000 --> 00:15:20.960
You hit singles and doubles, keep the lights on, but never go ahead.

207
00:15:20.960 --> 00:15:24.880
Or remember the opening passage of this book that when you align all the pieces,

208
00:15:24.880 --> 00:15:30.320
you can nod out of the park so well that you win for good. In my first 18 months in business,

209
00:15:30.320 --> 00:15:36.960
we went from $500,000 to $28 million a year off of less than $1 million in ad spend.

210
00:15:36.960 --> 00:15:42.160
So when I say 20 to 1, 50 to 1, 100 to 100 returns, I mean it. When you get this right,

211
00:15:42.160 --> 00:15:47.920
the results are well, unbelievable. Some reports, this chapter illustrated the basic problem

212
00:15:47.920 --> 00:15:52.320
with commoditization and how grand slam offers all that. This gets you out of the pricing war

213
00:15:52.320 --> 00:15:56.720
and into a category of one. The next chapter will focus on finding the correct market to apply

214
00:15:56.720 --> 00:16:01.200
our pricing strategies to. It's one of the most important things to get right. A grand slam

215
00:16:01.200 --> 00:16:05.760
offer given to the wrong audience will fall on deaf ears. We want to avoid that at all costs.

216
00:16:05.760 --> 00:16:11.120
We must detour from pricing for a moment to learn what to look for in a market. It's an essential

217
00:16:11.120 --> 00:16:17.600
box to check before continuing on our journey. Pre-gift number one, bonus tutorial. Start here.

218
00:16:17.600 --> 00:16:21.600
If you want a deeper dive, go to acquisition.com for its less training for its less offers and

219
00:16:21.600 --> 00:16:25.520
watch the first video in the free course, starring yours truly about how I differentiate offers

220
00:16:25.520 --> 00:16:30.080
in businesses I can solve with and get them charging premium prices. I also created some free

221
00:16:30.080 --> 00:16:34.960
SOPs and cheat codes that you can download for free so you can implement faster. Enjoy.

222
00:16:35.040 --> 00:16:40.720
Pricing Chapter 4. Finding the right market. A starving crowd.

223
00:16:41.680 --> 00:16:46.560
The seed that fell on good soil represents those who truly hear and understand God's word

224
00:16:46.560 --> 00:16:51.120
and produce a harvest of 30, 60 or even 100 times as much as has been planet.

225
00:16:52.080 --> 00:16:56.640
Matthew 1323 and LT. A marketing professor asked his students,

226
00:16:56.640 --> 00:17:00.160
if you were going to open up a hot dog stand and you could only have one advantage over your

227
00:17:00.160 --> 00:17:07.520
competitors, which would it be? Location, quality, low prices, best taste. The students kept going

228
00:17:07.520 --> 00:17:11.680
until eventually they had run out of answers. They looked at each other waiting for the professor to

229
00:17:11.680 --> 00:17:17.040
speak. The room finally fell quiet. The professor smiled and replied, a starving crowd.

230
00:17:18.000 --> 00:17:21.360
You could have the worst hot dogs, terrible prices, and be in a terrible location,

231
00:17:21.360 --> 00:17:24.960
but if you're the only hot dog stand in town and the local college football game breaks out,

232
00:17:24.960 --> 00:17:28.080
you're going to sell out. That's the value of a starving crowd.

233
00:17:28.880 --> 00:17:33.200
At the end of the day, if there's a ton of demand for a solution, you can be mediocre at business,

234
00:17:33.200 --> 00:17:37.280
have a terrible offer, and have no ability to persuade people, and you can still make money.

235
00:17:37.840 --> 00:17:41.600
An example of this was the toilet paper shortage at the beginning of COVID-19.

236
00:17:41.600 --> 00:17:45.520
There was no offer, the pricing was a treasures, and there was no compelling sales pitch.

237
00:17:45.520 --> 00:17:51.040
But because the crowd was so big and so starving, roles of toilet paper were going for $100 or more.

238
00:17:51.040 --> 00:17:55.600
That's the value of a starving crowd. Selling newspapers. A good friend of mine, Lloyd,

239
00:17:55.600 --> 00:18:00.400
owned a software business that served newspapers for almost a decade. They set up digital ad services

240
00:18:00.400 --> 00:18:04.640
on newspaper websites with a few clicks and instantly helped them sell a whole new ad product.

241
00:18:05.280 --> 00:18:09.520
He only charged them a percentage of revenue he added, so if they made nothing, neither did he.

242
00:18:10.000 --> 00:18:15.040
It was pure gain for the papers and a great offer. But despite having a great offer and

243
00:18:15.040 --> 00:18:19.440
natural sales ability, his business began to decline. Being a high achieving entrepreneur,

244
00:18:19.440 --> 00:18:24.000
he tried all different angles to solve the problem, but nothing worked. He couldn't figure out

245
00:18:24.000 --> 00:18:28.080
what the issue was. It was hard for me to see him struggle with this because I think Lloyd is

246
00:18:28.080 --> 00:18:32.480
much smarter than I am. And the answer seemed obvious to me. But watching him go through this has

247
00:18:32.480 --> 00:18:38.160
been a lesson that I have taken with me for life. Before I reveal it, what do you think the problem was?

248
00:18:38.160 --> 00:18:44.640
Product, offer, marketing and sales, his team? Let's break it down. It wasn't his product,

249
00:18:44.720 --> 00:18:48.720
that was great. It wasn't his offer. He had a zero risk rev share model.

250
00:18:49.280 --> 00:18:54.000
It wasn't his sales skills. He was a natural salesman. So then, what was the problem?

251
00:18:54.640 --> 00:19:00.240
He was selling to newspapers. His market was shrinking by 25% every single year. He had looked

252
00:19:00.240 --> 00:19:04.960
at all the angles, except for the most obvious one. Finally, after he used a fighting and uphill

253
00:19:04.960 --> 00:19:08.720
battle in his market, he realized his market was the source of his problems and decided to

254
00:19:08.800 --> 00:19:12.720
downsize his company. Don't worry. The story has a second half.

255
00:19:13.600 --> 00:19:18.640
To illustrate the power of a market, as soon as COVID hit, Lloyd pivoted. He started an automated

256
00:19:18.640 --> 00:19:22.960
mask manufacturing company. With new technology, he brought the cost per mass down below

257
00:19:22.960 --> 00:19:27.760
with people goodbye them from before from China. Within five months, he was doing millions per month.

258
00:19:28.320 --> 00:19:33.680
Same much winner, different market. He applied his same skill set to a business he had zero

259
00:19:33.680 --> 00:19:38.160
experience in and was able to win. That's the power of picking the right market.

260
00:19:39.040 --> 00:19:44.800
I give you that story as a cautionary tale. Your market matters. Lloyd is a very smart human.

261
00:19:44.800 --> 00:19:49.440
He's obviously very capable, but we can all be blinded as entrepreneurs because we don't like to

262
00:19:49.440 --> 00:19:53.920
give up. We are so accustomed to solving possible problems that we will keep ramming our heads

263
00:19:53.920 --> 00:19:58.640
into the wall. We hate quitting. But the reality is that everyone is affected by their market.

264
00:19:59.280 --> 00:20:04.720
So how do you pick the right market? What to look for? There is a market in desperate

265
00:20:04.720 --> 00:20:10.320
need of your abilities. You need to find it. And when you do, you will capitalize all while

266
00:20:10.320 --> 00:20:14.960
wondering what took you so long. Don't be romantic by your audience. Serve the people who can pay

267
00:20:14.960 --> 00:20:19.520
you what you're worth. And remember that picking a market like anything is always our choice.

268
00:20:19.520 --> 00:20:26.000
So choose wisely. In order to sell anything you need demand, we're not trying to create demand.

269
00:20:26.000 --> 00:20:30.640
We're trying to channel it. That is a very important distinction. If you don't have a market for

270
00:20:30.640 --> 00:20:36.000
your offer, nothing that follows will work. This entire book sits atop the assumption that you have

271
00:20:36.000 --> 00:20:40.880
at least a quote normal market, which I define as a market that is growing at the same rate as the

272
00:20:40.880 --> 00:20:45.920
marketplace. And that has common unmet needs that fall into one of three categories improved health

273
00:20:45.920 --> 00:20:51.360
and increased wealth or improved relationships. For example, Lloyd could have gone through this entire

274
00:20:51.360 --> 00:20:56.640
book and nothing in here would have worked for him. Why? Because he would be targeting newspapers,

275
00:20:56.640 --> 00:21:02.320
a dying market. That being said, having a great market is an advantage. But you can be in a normal

276
00:21:02.320 --> 00:21:07.440
market that's growing at an average rate and still make crazy money. Every market I've been in has

277
00:21:07.440 --> 00:21:12.720
been a normal market. You just don't actually want to be selling ice to ask a most. Here are the

278
00:21:12.720 --> 00:21:17.120
basic tenets of what I look for in markets. Let's run them before we return to the offer. When

279
00:21:17.200 --> 00:21:25.600
picking markets, I look for four indicators. One, pain, two, purchasing power, three, easy to target,

280
00:21:25.600 --> 00:21:33.200
four, growing. One, massive pain. They must not want but desperately need what I am offering.

281
00:21:34.000 --> 00:21:38.160
Pain can be anything that frustrates people about their lives. Being broke is painful,

282
00:21:38.160 --> 00:21:42.400
a bad marriage is painful. Waiting in line at the grocery store is painful. Back pain,

283
00:21:42.480 --> 00:21:47.920
ugly smile, pain, overweight pain, humans suffer a lot. So for us entrepreneurs, endless

284
00:21:47.920 --> 00:21:52.560
opportunity abounds. The degree of pain will be proportional to the price you will be able to

285
00:21:52.560 --> 00:21:57.440
charge more on this in the value equation chapter. When they hear the solution to their pain

286
00:21:57.440 --> 00:22:01.600
and inversely what their life would look like without this pain, they should be drawn to your

287
00:22:01.600 --> 00:22:07.840
solution. I've been saying that I use to train sales teams. The pain is the pitch. If you can

288
00:22:07.840 --> 00:22:12.720
articulate the pain and prospect is feeling accurately, they will almost always buy what you

289
00:22:12.720 --> 00:22:17.840
are offering. A prospect must have a painful problem for us to solve and charge money for our

290
00:22:17.840 --> 00:22:23.920
solution. Pro tip. The point of good writing is for the reader to understand. The point of good

291
00:22:23.920 --> 00:22:31.040
persuasion is for the prospect to feel understood. Two, purchasing power. A friend of mine had a very

292
00:22:31.040 --> 00:22:36.160
good system for helping people improve their resumes to get more job interviews. He was great at it.

293
00:22:36.240 --> 00:22:41.120
But tries he did, you could not get people to pay for his services. Why? Because they were all

294
00:22:41.120 --> 00:22:46.400
unemployed. This again may seem obvious, but he thought these people are easy to target. They're

295
00:22:46.400 --> 00:22:50.240
in massive pain. There are plenty of them and it's constantly adding new people. This is a great

296
00:22:50.240 --> 00:22:55.440
market. He just forgot a crucial point. Your audience needs to be able to afford the service you're

297
00:22:55.440 --> 00:23:00.560
charging them for. Make sure your targets have the money or access to the amount of money needed

298
00:23:00.560 --> 00:23:03.840
to buy your services at the prices you required to make it worth your time.

299
00:23:04.320 --> 00:23:10.320
Three, easy to target. Let's say you have a perfect market, but no way of finding the people who

300
00:23:10.320 --> 00:23:15.920
comprise it. Well, making a grand slam offer will be difficult. I make my life easier by looking

301
00:23:15.920 --> 00:23:20.880
for easy to target markets. Examples of this are avatars that have associations they belong to,

302
00:23:20.880 --> 00:23:26.320
mailing lists, social media groups, channels they all watch, etc. If our potential customers are

303
00:23:26.320 --> 00:23:30.640
gathered together somewhere, then we can market to them. If searching them out, however,

304
00:23:30.640 --> 00:23:34.160
is like finding needles in a haystack, then it can be very difficult to get your offer in front

305
00:23:34.160 --> 00:23:39.680
of any potentially interested eyes. This point is tactical. It is reality, not theoretical.

306
00:23:39.680 --> 00:23:44.240
For instance, you may want to serve rich doctors, but if your ads are being displayed to nursing

307
00:23:44.240 --> 00:23:50.160
students, your offer will fall on deaf ears, no matter how good it is. Main point. You want to make

308
00:23:50.160 --> 00:23:55.520
sure you can target your ideal audience easily. Lairifying point. There's no issue wanting to

309
00:23:55.520 --> 00:24:01.040
serve rich doctors. They are easy to find. This is just illustrative that your promotions must

310
00:24:01.040 --> 00:24:08.400
be served to the right audience. 4. Growing. Growing markets are like a tailwind. They make everything

311
00:24:08.400 --> 00:24:13.120
move forward faster. The climbing markets are like headwinds. They make all efforts harder.

312
00:24:13.120 --> 00:24:18.960
This was Lloyd's example. Newspapers had three of four makings of a great market. Lots of pain,

313
00:24:18.960 --> 00:24:24.720
purchasing power, easy to target. But they were shrinking. Fast. No matter how hard he tried,

314
00:24:24.720 --> 00:24:29.600
the entire marketplace was fighting against him. Business is hard enough and markets move quickly,

315
00:24:29.600 --> 00:24:32.960
so you might as well find a good market to give you a tailwind to make the process easier.

316
00:24:34.080 --> 00:24:40.480
Making this real. Health, wealth, relationships. There are three main markets that will always

317
00:24:40.480 --> 00:24:45.440
exist. Health, wealth, and relationships. The reason that those will always exist is that

318
00:24:45.440 --> 00:24:49.760
there will always be tremendous pain when you lack them. There's always demand for solutions to

319
00:24:49.840 --> 00:24:54.880
these core human pains. The goal is to find a smaller subgroup within those larger buckets that

320
00:24:54.880 --> 00:25:00.000
is growing, has the buying power, and is easy to target. The other three variables. So if I were

321
00:25:00.000 --> 00:25:05.120
a relationship expert trying to find my avatar, I'd rather focus on second half of life relationship

322
00:25:05.120 --> 00:25:09.840
coaching for old-timers than helping college students in relationships. Why? Because senior

323
00:25:09.840 --> 00:25:14.720
citizens who are alone are likely suffering more pain as they are near their deaths,

324
00:25:14.800 --> 00:25:19.920
have more buying power, money, and are easy to find, targeting. Lastly, at the time of this

325
00:25:19.920 --> 00:25:26.160
writing, there are more people turning 65 each year than turning 20, aka growing. That is the idea.

326
00:25:26.640 --> 00:25:30.240
Think about what you were good at in regards to health, wealth, and relationships,

327
00:25:30.240 --> 00:25:35.680
then think about who might value your service the most. AKA is in the most pain, has the buying

328
00:25:35.680 --> 00:25:41.760
power to pay what you want, money, and can be found easily, targeting. As long as those three

329
00:25:41.760 --> 00:25:47.120
criteria are strong and the market isn't shrinking, you'll be in good shape. But how important your

330
00:25:47.120 --> 00:25:52.640
success is finding a, quote, great market versus a, quote, normal market versus a, quote, bad market?

331
00:25:52.640 --> 00:25:59.280
The answer, it actually depends. Let me explain. Order of importance. Three levers on success.

332
00:26:00.080 --> 00:26:04.640
It's unlikely you're going to be in a dying market like the newspaper example. It's also

333
00:26:04.640 --> 00:26:09.360
unlikely you're going to be selling toilet paper in COVID, a buying frenzy. You'll likely be in

334
00:26:09.360 --> 00:26:13.520
a normal market and that's totally okay. There's a fortune to be made within normal markets.

335
00:26:14.080 --> 00:26:18.960
My single point here is that you can't be in a bad market or nothing will work. That being said,

336
00:26:18.960 --> 00:26:22.720
here's the simplest illustration of the order of importance between markets offers and persuasion

337
00:26:22.720 --> 00:26:29.760
skills. Starving crowd is more important than your offer strength, which is more important than your

338
00:26:29.760 --> 00:26:35.360
persuasion skills. Let's say you were to rate these elements on a scale of great, normal, and bad.

339
00:26:35.360 --> 00:26:38.800
You could essentially move down the line from left to right in order of importance.

340
00:26:39.360 --> 00:26:44.640
A, quote, great rating on a higher order piece overpowers anything else lower on the priority

341
00:26:44.640 --> 00:26:50.720
scale. A, quote, normal rating moves the buck to the next part of the equation. A, quote, bad stops

342
00:26:50.720 --> 00:26:56.000
the equation unless a grade from a higher order component nullifies it. Here are a few examples.

343
00:26:56.640 --> 00:27:01.680
Example one, even if you had a bad offer and are bad at persuasion, you're going to make money

344
00:27:01.680 --> 00:27:05.840
if you're in a great market. If you're on the corner, hocking hot dogs when the bar closes up at

345
00:27:05.840 --> 00:27:10.880
2 a.m. with mobs of starving drunk folks, you're going to sell out of your hot dogs. Example two,

346
00:27:10.880 --> 00:27:16.560
most of us, if you were in a normal market and have a grand slam offer, you can make tons of money

347
00:27:16.560 --> 00:27:21.440
even if you're bad at persuasion. This is most people reading this book. That's why I wrote it.

348
00:27:22.080 --> 00:27:26.400
To help you maximize your success by learning to really build a grand slam offer.

349
00:27:27.360 --> 00:27:31.840
Example three, let's say you're in a normal market and have a normal offer.

350
00:27:31.840 --> 00:27:36.880
In order to be massively successful, you would have to be exceptionally good at persuasion.

351
00:27:37.520 --> 00:27:41.280
Then and only then would you succeed with your persuasive skills serving as the

352
00:27:41.280 --> 00:27:46.160
full-crumb for your success. Heck, many empires have been built by exceptional persuaders.

353
00:27:46.720 --> 00:27:50.160
It's just the hardest path to follow and requires the most effort in learning.

354
00:27:50.800 --> 00:27:55.120
Nailing your offer helps you shortcut this path to success. Otherwise, you will just have

355
00:27:55.120 --> 00:27:59.440
a normal business that takes exceptional skill to be successful. Nothing wrong with that,

356
00:27:59.440 --> 00:28:03.840
we're probably not what you sign up for. Commit to the niche.

357
00:28:04.720 --> 00:28:09.280
I have a saying when coaching entrepreneurs on picking their target market. Don't make me niche

358
00:28:09.280 --> 00:28:15.600
lap you. Too often, a new entrepreneur half-heartedly tries one offer in one market, doesn't make

359
00:28:15.600 --> 00:28:21.040
a million dollars, then mistakenly thinks this is a bad market. Most time, that's not actually the

360
00:28:21.120 --> 00:28:26.080
case. They just haven't found a grand slam offer yet to apply to that market. They think,

361
00:28:26.080 --> 00:28:31.680
I'll switch from helping Dennis to helping chiropractors. That's it. When in reality, both of those

362
00:28:31.680 --> 00:28:37.680
are normal markets and represent billions of dollars of revenue. Either would work, just not both.

363
00:28:37.680 --> 00:28:43.200
You must pick one. No one can serve two masters. I have coined the term niche lap to remind

364
00:28:43.200 --> 00:28:48.400
entrepreneurs in my communities to commit once they pick. All businesses and all markets have

365
00:28:48.400 --> 00:28:53.280
unpleasant characteristics. The grass is never greener once you get to the other side.

366
00:28:53.280 --> 00:28:56.960
If you keep hopping from niche to niche, hoping that the market will solve your problems,

367
00:28:56.960 --> 00:29:01.280
you deserve to be nid slapped. You must stick with whatever you pick long enough to have trial

368
00:29:01.280 --> 00:29:06.320
and error. You will fail. In fact, you will fail until you succeed. But you will fail far

369
00:29:06.320 --> 00:29:11.760
longer if you keep changing who you market to because you must start over from the beginning each time.

370
00:29:11.760 --> 00:29:18.080
So pick and commit. Riches earn the niches. The other reason to commit to the niche is because of

371
00:29:18.080 --> 00:29:22.240
how much more you will make. Simply put, niching down will make you far more money.

372
00:29:22.880 --> 00:29:28.320
Author note. Went to broaden. Advice for most people. For most, if you were under $10 million

373
00:29:28.320 --> 00:29:32.880
per year, niching down will make you more money. After that, it will depend on how narrow the

374
00:29:32.880 --> 00:29:38.960
niches or what is called tam, total addressable market. A business can only grow to meet the total

375
00:29:38.960 --> 00:29:43.360
addressable market. That being said, for most people, getting to 10 million per year is already a

376
00:29:43.360 --> 00:29:50.320
0.4% achievement. Only one in 250 businesses achieve this. So for 99.6% of readers below 10 million

377
00:29:50.320 --> 00:29:55.040
dollars per year, it's almost always easier to serve fewer clients more narrowly. But if you want

378
00:29:55.040 --> 00:29:59.600
to go beyond that, you may, depending on the size of your tam, have to broaden your audience by going

379
00:29:59.600 --> 00:30:04.720
out market, down market, or into an adjacent market where your existing services can provide value.

380
00:30:04.720 --> 00:30:10.240
For context, many companies expanded to 30 million dollars plus per year serving a single niche.

381
00:30:10.320 --> 00:30:15.200
Carp Actors, gyms, plumbers, solar, roofers, salon owners, etc. If you were at $1 million

382
00:30:15.200 --> 00:30:20.480
or $3 million per year, thinking you have capped and must expand, you are wrong. You just need to

383
00:30:20.480 --> 00:30:26.240
be better. When I truly grasped how much more profit I was leaving on the table, it changed my life.

384
00:30:26.800 --> 00:30:31.600
It was what took me from doing acquisition for anyone to teaching it to a specific avatar.

385
00:30:32.160 --> 00:30:37.360
In my instance, I decided on a micrgemoner with 100 members assigned to lease, at least one

386
00:30:37.360 --> 00:30:42.080
employee and wanted to help clients lose weight. That's pretty specific compared to

387
00:30:42.080 --> 00:30:46.960
quote small business owners, or my favorite quote, anyone who will pay me, which is common.

388
00:30:46.960 --> 00:30:51.600
And I was very specific. In that business, gym launch, we turned down and still do anyone

389
00:30:51.600 --> 00:30:56.880
who is not the avatar. That means no personal trainers, no online coaches, etc. Could I have

390
00:30:56.880 --> 00:31:00.880
helped them? Of course I could have. I mean heck, the majority of our portfolios comprised of

391
00:31:00.880 --> 00:31:05.840
non gym companies. But in order to maintain product focus and high converting messaging,

392
00:31:05.840 --> 00:31:11.360
knowing exactly who the product was for was a game changer. It helped us know exactly who we

393
00:31:11.360 --> 00:31:16.160
were speaking to at all times and exactly whose problems we were solving, but simplicity and ease

394
00:31:16.160 --> 00:31:21.200
may not be enough to sway you. So let me illustrate why honing in on one niche will make you more money.

395
00:31:21.840 --> 00:31:27.680
Reason, you can literally charge 100 times more for the exact same product. Dan Kennedy was the

396
00:31:27.680 --> 00:31:31.760
first person to illustrate this for me, and I will do my best to pass on the torch to you in these

397
00:31:31.760 --> 00:31:40.000
pages. Nitching product pricing example, product and then price, time management product, price

398
00:31:40.000 --> 00:31:48.880
$19. Time management for sales professionals, price $99. Time management for outbound B2B sales,

399
00:31:48.880 --> 00:31:57.920
price $499. Time management for outbound B2B power tools and gardening sales reps, price

400
00:31:58.000 --> 00:32:02.400
$1,997. Dan Kennedy taught me this and it changed my life forever.

401
00:32:03.120 --> 00:32:07.680
Let's say you sold a generic course on time management, unless you were some massive time management

402
00:32:07.680 --> 00:32:12.240
guru with a compelling or unique story, it would be unlikely it would turn into anything significant.

403
00:32:12.880 --> 00:32:18.880
What do you think, quote yet another, and quote time management course is valued. $19.29,

404
00:32:18.880 --> 00:32:23.120
sure, nothing right home about. Let's just say $19 for illustration sick.

405
00:32:24.000 --> 00:32:28.480
Now we shall unleash the power of niche pricing in various stages on your product.

406
00:32:28.480 --> 00:32:32.960
So let's imagine you make the product more specific, keeping the same principles and call it

407
00:32:32.960 --> 00:32:38.000
time management for sales professionals. All of a sudden, this course is for a more specific type

408
00:32:38.000 --> 00:32:43.600
of person. We could tie their increase to even one more sale or one more deal, and it would be

409
00:32:43.600 --> 00:32:49.280
worth more. But there are a lot of sales people, so this might be a $99 product. Knee, but we can

410
00:32:49.440 --> 00:32:54.640
do better. So let's go down another level of niching and call our product time management for B2B

411
00:32:54.640 --> 00:33:00.560
outbound sales reps following the same principles of specificity. Now we know our sales people probably

412
00:33:00.560 --> 00:33:05.920
have very experienced deals and commissions. A single deal would easily net the salesman $500

413
00:33:05.920 --> 00:33:12.720
or more. So it would be easy to justify $4.99 price tag. This is already a 25x increase in price

414
00:33:12.720 --> 00:33:17.520
for almost an identical product. I could stop here, but I'm going one step further.

415
00:33:18.320 --> 00:33:24.400
Let's just niche down one last level. Time management for B2B outbound power tools and gardening

416
00:33:24.400 --> 00:33:29.680
sales reps. Boom, think about it for a second. If you were a power tools outbound sales rep,

417
00:33:29.680 --> 00:33:34.800
you would think to yourself, this is made exactly for me. And would happily fork over maybe a

418
00:33:34.800 --> 00:33:38.880
thousand or two thousand dollars for a time management program that could help you achieve your goal.

419
00:33:38.880 --> 00:33:44.080
The actual pieces of the program may be the same as the generic $19 course, but since they have

420
00:33:44.080 --> 00:33:50.240
been applied and the salesmatchesing could speak so much to this avatar, they will find it far

421
00:33:50.240 --> 00:33:55.440
more compelling and get more value from it in a real way. This concept applies to anything you

422
00:33:55.440 --> 00:34:02.560
decide to do. You want to be the guy who services this type of person or solves this type of problem.

423
00:34:02.560 --> 00:34:08.080
And even more niched, I solve this type of problem for this specific type of person in this unique

424
00:34:08.080 --> 00:34:13.200
counterintuitive way that reverses their deepest fear. That's why a fitness program for generic

425
00:34:13.200 --> 00:34:18.080
weight loss might be priced only at $19, while fitness program design and marketed only to

426
00:34:18.080 --> 00:34:23.840
shift nurses might be priced at $1,997. Even though the core of the program is likely similar,

427
00:34:23.840 --> 00:34:29.680
eat less, move more. And result, the market matters, your niche matters. And if you can sell the same

428
00:34:29.680 --> 00:34:35.200
product for a hundred times the price, should you? I'll let you decide. Some points. The purpose of

429
00:34:35.200 --> 00:34:40.080
this chapter is to reinforce two things. First, don't pick bad markets. No markets are fine,

430
00:34:40.080 --> 00:34:45.840
great markets are great. Second, once you pick, commit until you figure it out. If you try 100

431
00:34:45.840 --> 00:34:51.760
offers, I promise you will succeed. Most people never try anything. Others fail once, then give up.

432
00:34:51.760 --> 00:34:56.720
It takes resilience to succeed. Stop personalizing. It's not about you. If your offer doesn't work,

433
00:34:56.720 --> 00:35:02.000
it doesn't mean you suck. It means your offer sucks. Big difference. You only suck if you stop trying.

434
00:35:02.000 --> 00:35:06.240
So try again. You'll never become more class if you stop after a failed attempt.

435
00:35:07.200 --> 00:35:12.240
If you find a crazy good market, ride it and ride it hard. If you pay a grand slam offer

436
00:35:12.240 --> 00:35:17.200
with a crazy market, you'll likely never need to work again. Seriously. So have this skill set,

437
00:35:17.200 --> 00:35:21.520
the ability to accurately assess markets by taking into account pain, money, targeting,

438
00:35:21.520 --> 00:35:26.240
and growth in your back pocket so that when lightning strikes, you can make sure it strikes twice.

439
00:35:27.040 --> 00:35:31.520
Having established how to nail a market, let's get back to pricing. The first step to making

440
00:35:31.520 --> 00:35:37.840
crazy money is charging premium prices. Three gift number two, bonus tutorial, winning markets.

441
00:35:37.840 --> 00:35:41.440
If you want to know more about how I pick markets and find niches that are profitable,

442
00:35:41.440 --> 00:35:46.720
go to acquisition.com forward slash training, forward slash offers. Then watch winning markets for

443
00:35:46.720 --> 00:35:51.840
a short video tutorial. I've also included a free checklist to see how your market or niche

444
00:35:51.840 --> 00:35:53.840
measures up. It's absolutely free. Enjoy.

445
00:35:54.320 --> 00:36:02.240
Hey guys, hope you guys are enjoying the $100 million offers collaboration episode with the

446
00:36:02.240 --> 00:36:08.080
game. You may not know this, but we have a physical copy available on Amazon and a Kindle version.

447
00:36:08.080 --> 00:36:13.040
And if you're like me, I get pretty ADD really easily. And I prefer to consume in multiple formats

448
00:36:13.040 --> 00:36:17.280
at the same time. You remember it longer, it gets stored multiple places in your brain, lots of

449
00:36:17.280 --> 00:36:23.040
science stuff, but either way, it ultimately helps you retain it and use it. So if that's useful,

450
00:36:23.040 --> 00:36:24.880
use it. If not, keep enjoying.

451
00:36:26.320 --> 00:36:32.000
Chapter five pricing. Charge what it's worth. Charge is higher price as you can say out loud

452
00:36:32.000 --> 00:36:39.520
without cracking a smile. Dan Kennedy. January 2019. All I could see was black.

453
00:36:40.240 --> 00:36:45.200
My eyes felt glued shut. I was a week, but the fatigue in my temples felt like a five pound weight

454
00:36:45.200 --> 00:36:51.120
was duct taped to my skull, dragging my eyelids back down. I had to concentrate forcibly to open

455
00:36:51.120 --> 00:36:57.200
them. The details of the dimly lit room beamed in. I rolled over to the edge of the hotel room bed,

456
00:36:57.200 --> 00:37:02.160
feeling each and every muscle on my body as my weight shifted. Punched on my side, I could see my

457
00:37:02.160 --> 00:37:07.040
clothes scattered on the floor. I was so beat the night before that I didn't even remember taking

458
00:37:07.040 --> 00:37:13.120
them off. I had just finished a five day gauntlet of keynote after keynote presentation. Two days

459
00:37:13.120 --> 00:37:17.520
of presentations for a high level clients, immediately followed by spending two days planning with

460
00:37:17.520 --> 00:37:25.040
our entire company, 135 plus employees. I had missed a FaceTime call from my father that day before.

461
00:37:25.040 --> 00:37:30.000
I didn't have anything on my agenda for the morning, so I crickly got up, slid into a hoodie,

462
00:37:30.000 --> 00:37:35.360
and some sweats, and walked into the hallway to call him back. After the initial pleasantries,

463
00:37:35.360 --> 00:37:40.240
he immediately dove into why he was calling, parental concern. I saw the picture you posted of all

464
00:37:40.240 --> 00:37:45.280
your clients. He said, but in an unusually concerned tone. I thought the event was for all your

465
00:37:45.280 --> 00:37:49.120
highest paying clients. I didn't know it was a big event. It looked like you had a thousand people

466
00:37:49.120 --> 00:37:54.240
there, alone in the hallway and struggling to shake the heavy weight of exhaustion still. I tried

467
00:37:54.240 --> 00:37:58.960
to gauge where his concern was coming from and what he was getting at. I'd explain this to him

468
00:37:58.960 --> 00:38:04.800
already. It was only for our highest level clients. That wasn't all of our clients, I said, just the

469
00:38:04.800 --> 00:38:10.080
ones who pay 42,000 year are gymlords, like I told you. Every single person in that picture paid you

470
00:38:10.080 --> 00:38:16.560
$42,000. He sounded almost frightened at the idea. Yeah, wild, right? My voice was forced from

471
00:38:16.560 --> 00:38:21.600
days of speaking and thousands of 20 second conversations. Is it legal what you're doing? Yes.

472
00:38:22.320 --> 00:38:27.040
Wow. That escalated quickly. I thought to myself, do they know you're paying you that much?

473
00:38:27.920 --> 00:38:32.320
Yes, it's legal. And of course they know. It's not like a magically siphoning money.

474
00:38:32.960 --> 00:38:35.840
That's a lot of money. I hope what you're giving them is worth it.

475
00:38:36.800 --> 00:38:40.880
I contemplated whether it was worth the effort to dive into this or just ignore it.

476
00:38:40.880 --> 00:38:44.720
But knowing this was going to be a thing, I took a deep breath and began to explain.

477
00:38:45.280 --> 00:38:53.280
If I made you $239,000 extra this year, would you pay me $42,000? I asked using $239,000 because

478
00:38:53.280 --> 00:38:57.280
it was the average increase in top line revenue of a gym using our system for 11 months.

479
00:38:57.840 --> 00:39:03.200
For sure, he said, I mean, if I knew I was going to make that back, but what would I have to do?

480
00:39:03.840 --> 00:39:09.920
About 15 hours a week of work. And how long would it take me to make the $239,000?

481
00:39:10.640 --> 00:39:14.880
11 months. And how much of the $42,000 would I have to pay you up front?

482
00:39:15.440 --> 00:39:19.600
Nothing. Just pay me as you start making money using the system. I watched it click.

483
00:39:19.600 --> 00:39:25.520
My dad got it. Oh, he said, well then yeah, I would do it. And that's why they do it too.

484
00:39:26.480 --> 00:39:30.960
Making shit loads of money breaks people's minds. It literally stretches their minds so far

485
00:39:30.960 --> 00:39:34.960
past what they can believe is possible. They assume you're doing something wrong or illegal.

486
00:39:34.960 --> 00:39:40.320
They literally can't even. Why? Because they think to themselves, they can't be that much smarter

487
00:39:40.320 --> 00:39:44.720
than me or work that much harder than me. So how's it possible for them to make a thousand times

488
00:39:44.720 --> 00:39:49.040
more than me? Enough money that it would literally take 10 lifetimes for me to make what they make

489
00:39:49.040 --> 00:39:55.120
in a year. In the three years leading up to me writing this book, I took home over $1.2 million

490
00:39:55.120 --> 00:40:01.840
per month in profit every single month. That's more than the compensation for the CEO's of Ford,

491
00:40:01.840 --> 00:40:09.840
McDonald's, Motorola, Yahoo, combined every year as a kid in his 20s. It angers those who believe

492
00:40:09.840 --> 00:40:14.400
that life is unfair. It confuses others who cannot comprehend and believe that there must have

493
00:40:14.400 --> 00:40:19.520
been a mistake. It inspires to select few who are bound for greatness. I hope that you were in

494
00:40:19.520 --> 00:40:24.560
the last category because that is who I am writing this for. You can do this. You just need to learn

495
00:40:24.560 --> 00:40:30.800
how and I'm going to show you. Price to value discrepancy. Quote, I hope what you're giving them

496
00:40:30.800 --> 00:40:36.320
is worth it. End quote. Those words would probably sting for most, but when my dad said them to me,

497
00:40:36.320 --> 00:40:41.200
I just knew he didn't understand the value we were providing. What I want to show you is how to create

498
00:40:41.200 --> 00:40:46.640
and communicate value, aka the worth itness of an offer. In order to understand how to make a

499
00:40:46.640 --> 00:40:51.920
compelling offer, you must understand value. The reason people buy anything is to get a deal.

500
00:40:52.000 --> 00:40:56.160
They believe that what they are getting value is worth more than what they are given in exchange

501
00:40:56.160 --> 00:41:00.880
for it. Price. The moment the value they receive dips below what they are paying, they stop buying

502
00:41:00.880 --> 00:41:06.880
from you. This price to value discrepancy is what you need to avoid at all costs. After all,

503
00:41:06.880 --> 00:41:10.480
as Warren Buffett said, price is what you pay, values what you get.

504
00:41:12.320 --> 00:41:17.360
The simplest way to increase the gap between price to value is by lowering the price. It's also

505
00:41:17.440 --> 00:41:22.320
most of the time the wrong decision for the business. Getting people to buy is not the objective

506
00:41:22.320 --> 00:41:27.600
of a business, making money is. And lowering price is a one-way road to destruction for most.

507
00:41:27.600 --> 00:41:32.240
You can only go down to zero, but you can go infinitely high in the other direction.

508
00:41:32.240 --> 00:41:37.120
So unless you have a revolutionary way of decreasing your cost one-tenth compared to your competition,

509
00:41:37.120 --> 00:41:42.720
don't compete on price. As Dan Kennedy said, there's no strategic benefit to being the second

510
00:41:42.720 --> 00:41:46.000
cheapest in the marketplace, but there is for being the most expensive.

511
00:41:46.960 --> 00:41:51.840
So the goal of our grand slam off will be to get more people to say yes at a higher price

512
00:41:51.840 --> 00:41:57.440
by increasing our value to price discrepancy. In other words, we will raise our price only after

513
00:41:57.440 --> 00:42:01.920
we have sufficiently increased our value. This way, they still get a great deal,

514
00:42:01.920 --> 00:42:06.880
think buying $100,000 for the value for only $10,000. It's money to discount.

515
00:42:07.360 --> 00:42:11.520
Free gift number three, bonus tutorial and free downloads, charge what it's worth.

516
00:42:12.080 --> 00:42:16.880
If you want to know how I create value discrepancies for B2B or B2C products, go to acquisition.com

517
00:42:16.880 --> 00:42:21.440
for slash training for slash offers, course, and then watch charge what it's worth for a short

518
00:42:21.440 --> 00:42:25.360
video tutorial. My goal is to gain your trust and deliver value in advance. As such, it's absolutely

519
00:42:25.360 --> 00:42:31.040
free. Enjoy. Why should charge so much it hurts? Most business owners are not competing on price

520
00:42:31.040 --> 00:42:35.920
or value. In fact, they're not actually competing on anything at all. Their pricing process typically

521
00:42:35.920 --> 00:42:41.920
goes something like this. Step one, look at marketplace. Step two, see what everyone else offers.

522
00:42:41.920 --> 00:42:48.400
Step three, take the average. Step four, go slightly below to remain quote-competitive. End quote.

523
00:42:48.400 --> 00:42:52.080
Step five, provide what their competitors offer with a little more.

524
00:42:53.200 --> 00:42:58.800
Step six, end up with a value proposition of more for less. In the big secret, those competitors

525
00:42:58.800 --> 00:43:04.480
they're copying are dead broke. So why on earth copy them? Pricing where the market is means

526
00:43:04.480 --> 00:43:09.840
you're pricing for market efficiency. Over time, in an efficient marketplace, more competitors enter

527
00:43:09.840 --> 00:43:15.120
offering a little more for a little less until eventually no one can provide any more for any less.

528
00:43:15.120 --> 00:43:19.680
At this point, a market reaches perfect efficiency, and the business owners participating make

529
00:43:19.680 --> 00:43:24.320
just enough at the end of the month to keep going. The bottom 10 to 20% of operators get washed out

530
00:43:24.320 --> 00:43:29.200
or lose the will to fight. Then, fresh business owners enter with no idea and repeat the process

531
00:43:29.200 --> 00:43:34.240
of their forefathers and around and around they go. In plain words, pricing this way means you're

532
00:43:34.240 --> 00:43:39.360
providing a service at just above what it costs for you to stay above water. We are not trying to

533
00:43:39.360 --> 00:43:43.520
barely stay above water. We are trying to make egregious amounts of money that will have your

534
00:43:43.520 --> 00:43:48.400
relatives asking if what you do is legal. Again, we are not trying to get the most customers. We

535
00:43:48.400 --> 00:43:53.520
are trying to make the most money. That being said, since there is no strategic benefit to being

536
00:43:53.520 --> 00:43:58.960
the second lowest priced player in your marketplace, allow me to give you a brief overview of why I see

537
00:43:58.960 --> 00:44:04.560
premium pricing as not only a very smart business decision, but a moral one. Furthermore,

538
00:44:04.560 --> 00:44:09.280
it's the only choice that will allow you to truly provide the most value, a unique and strong

539
00:44:09.280 --> 00:44:14.800
position in the marketplace. Let me introduce you to the virtuous cycle of price. I've used this

540
00:44:14.800 --> 00:44:19.120
framework in most of the materials I release because it needs to be consistently reinforced.

541
00:44:19.120 --> 00:44:23.520
The forces of the marketplace will grate on your belief system. You must stay strong and ignore

542
00:44:23.520 --> 00:44:27.920
them. Here is the basic premise of why you need to charge a premium if you want to

543
00:44:27.920 --> 00:44:33.600
best serve your customers. When you decrease your price, you decrease your client's emotional

544
00:44:33.600 --> 00:44:38.000
investment since it didn't cost them much. You decrease your client's perceived value of your

545
00:44:38.000 --> 00:44:42.160
service since it can't be that good if it's so cheap or priced the same as everyone else.

546
00:44:42.160 --> 00:44:45.840
You decrease your client's results because they do not value service and are not invested.

547
00:44:46.400 --> 00:44:50.320
You attract the worst clients who are never satisfied until your service is free.

548
00:44:51.120 --> 00:44:54.640
And you destroy any margin you have left to be able to actually provide an exceptional

549
00:44:55.360 --> 00:44:58.960
experience, hire the best people, invest in your people, pamper your clients,

550
00:44:58.960 --> 00:45:03.760
invest in growth, invest in more locations or more scale, and everything else you had hoped in

551
00:45:03.760 --> 00:45:06.960
the goal of helping more people solve whatever problem that is that you solve.

552
00:45:07.680 --> 00:45:12.720
In essence, your world sucks. And to make matters worse, your service probably sucks because you

553
00:45:12.720 --> 00:45:17.040
were squeezing blood from the proverbial stone. There's just not enough money left over to make

554
00:45:17.040 --> 00:45:21.360
something exceptional. As a result, you fall in line with the armies of average businesses that

555
00:45:21.360 --> 00:45:25.920
raise to the bottom. I've lived that life. It's terrible. If you love your customers and your

556
00:45:25.920 --> 00:45:31.200
employees, please stop short-changing them when there is a better way. Here's the reverse. This is

557
00:45:31.200 --> 00:45:35.840
what happens when you raise your prices. When you raise your prices, you increase your client's

558
00:45:35.840 --> 00:45:40.320
emotional investment. You increase your client's perceived value of your service. You increase your

559
00:45:40.320 --> 00:45:44.800
client's results because they value your service and are invested. You attract the best clients who

560
00:45:44.800 --> 00:45:49.680
are the easiest to satisfy and actually cost less to fulfill and who are most likely to actually

561
00:45:49.680 --> 00:45:54.800
receive and perceive the most relative value. You multiply your margin because you have money to

562
00:45:54.800 --> 00:45:59.760
invest in systems to create efficiency, smart people, improve customer experience, scale your

563
00:45:59.760 --> 00:46:04.160
business, and most importantly, to keep watching the number in your personal bank account go up

564
00:46:04.160 --> 00:46:08.960
month after month, even with reinvesting in your business. This allows you to ultimately enjoy the

565
00:46:08.960 --> 00:46:14.560
process for the long haul and help more people grow rather than burning out and triveling into

566
00:46:14.560 --> 00:46:19.280
obscurity. To swing the argument even further in favor of higher prices, here are a few interesting

567
00:46:19.360 --> 00:46:24.320
concepts. When you raise your price, you increase the value the consumer receives without changing

568
00:46:24.320 --> 00:46:31.360
anything else about your product. Wait, what? Yes. Higher price means higher value, literally.

569
00:46:32.080 --> 00:46:38.000
In a blind taste test, researchers ask consumers to rate three wines, a low price wine, a medium price

570
00:46:38.000 --> 00:46:42.640
wine, and an expensive wine. Throughout the study, the participants rated the wines with the prices

571
00:46:42.640 --> 00:46:47.680
visible. They rated them unsurprisingly in order of their price with the most expensive being the

572
00:46:47.680 --> 00:46:52.560
best, the second most expensive being the second best, and the third cheapest option being rated

573
00:46:52.560 --> 00:46:57.280
as a cheap wine. What the tasteers didn't know is that the researchers gave them the exact same

574
00:46:57.280 --> 00:47:02.320
wine all three times. Yet, the tasteers reported a wide discrepancy between the high priced wine and

575
00:47:02.320 --> 00:47:06.640
the cheap wine. This has deep implications for the direct relationship between value and price.

576
00:47:07.360 --> 00:47:13.040
In essence, raising your prices can directly enhance the value provide. What's more, the higher the

577
00:47:13.040 --> 00:47:17.600
price, the more lower your product or service has. People want to buy expensive things. They just

578
00:47:17.600 --> 00:47:22.640
need a reason. And the goal isn't just to be slightly above market price. The goal is to be so

579
00:47:22.640 --> 00:47:28.240
much higher that a consumer thinks to themselves, this is so much more expensive, there must be something

580
00:47:28.240 --> 00:47:33.280
entirely different going on here. That is how you create a category of one. In this new perceived

581
00:47:33.280 --> 00:47:39.520
marketplace, you are a monopoly and can make monopoly profits. That is the point. One final point

582
00:47:39.520 --> 00:47:44.160
I want to drive home. If you offer a service where a customer must do something in order to achieve

583
00:47:44.160 --> 00:47:50.320
the result or solve the problem you say you solve, they must be invested. The more invested they are,

584
00:47:50.320 --> 00:47:55.040
the more likely they are to achieve the positive result. Therefore, it follows that if you care

585
00:47:55.040 --> 00:47:59.760
about your customers, you should get them as invested as humanly possible. Ideally, this means

586
00:47:59.760 --> 00:48:05.200
pricing your services or product in such a way that it stings a little when they buy. That sting

587
00:48:05.280 --> 00:48:09.520
will force and focus their attention and their investment in your product or service.

588
00:48:09.520 --> 00:48:14.000
Those who pay the most pay the most attention. And if your customers are more adherent and follow

589
00:48:14.000 --> 00:48:18.240
through and if they achieve better results with your service than your competition, then you are

590
00:48:18.240 --> 00:48:23.520
in a very real way providing more value than anyone else. This is how you win. But I know this is

591
00:48:23.520 --> 00:48:28.960
an easy and it shouldn't be. Your product must deliver. So many wish to shortcut the real work.

592
00:48:28.960 --> 00:48:34.400
Do that and you will fail in the real world to have the quote gonads to charge big ticket prices.

593
00:48:34.400 --> 00:48:38.880
You must out work yourself out. You must be so confident in your delivery because you have done

594
00:48:38.880 --> 00:48:44.240
it so many times that you know that this person will succeed. Experience is what gives you the

595
00:48:44.240 --> 00:48:49.040
conviction to ask for someone's entire your salary as payment. You must believe so deeply in your

596
00:48:49.040 --> 00:48:53.280
solution that when you look at yourself in the mirror at night alone, your conviction remains

597
00:48:53.280 --> 00:48:58.000
unshakable. So let me bring this section to home with my personal experience, my premium price

598
00:48:58.320 --> 00:49:03.680
experience. In my first niche consulting business, Jim launched I teach owners a better business

599
00:49:03.680 --> 00:49:10.000
model. Before proxysing my consulting services, I flew out to 33 gyms in 18 months to do full gym

600
00:49:10.000 --> 00:49:16.080
turnarounds. We would fly out, fix everything in gym and relaunch it in 21 days. We would average

601
00:49:16.080 --> 00:49:23.680
an increase in $42,000 in additional sales in 21 days. It was wild. My fee was 100% of the revenue

602
00:49:23.760 --> 00:49:29.040
I would bring in. At our peak, we were turning out eight gyms a month. This quickly became a logistical

603
00:49:29.040 --> 00:49:33.440
nightmare. After the wear and tear of living in motels month after month after month, I thought

604
00:49:33.440 --> 00:49:37.520
to myself, there has to be a better way to do this. One month, there was a gym we were scheduled

605
00:49:37.520 --> 00:49:42.320
to go fly out to, but I simply didn't want to do it. So I told them we were going to cancel the

606
00:49:42.320 --> 00:49:47.920
engagement. The gym owner practically threatened me to help him. So I said I would help him,

607
00:49:47.920 --> 00:49:52.640
but he would have to do all the work, but I would show him how. Within 30 days, this gym made almost

608
00:49:52.640 --> 00:49:58.800
$44,000 in new upfront cash collected, which was four times their previous month. As soon as I saw

609
00:49:58.800 --> 00:50:03.520
that my process could be duplicated from afar without me having to fly people in, our business

610
00:50:03.520 --> 00:50:07.760
exploded. I had found the missing link because my travel schedule was no longer a constraint.

611
00:50:08.320 --> 00:50:13.200
We went on to sell 4,000 plus more gyms over the next few years and counting using a

612
00:50:13.200 --> 00:50:19.440
done with you rather than done for you model, but back to premium pricing. When I entered the space,

613
00:50:19.440 --> 00:50:24.800
low price competitors offered full service marketing solutions for $500 per month,

614
00:50:24.800 --> 00:50:28.320
with a single high price competitor charging $5,000 for his product.

615
00:50:29.040 --> 00:50:34.160
I wanted to be the premium price leader. I wanted to be so expensive that it created a lure around

616
00:50:34.160 --> 00:50:38.880
what we were doing. So we came in at three times the highest price player and 32 times more than

617
00:50:38.880 --> 00:50:45.440
the lowest price player. A price of 16,000 for 16 week done with you intensive. Then we

618
00:50:45.440 --> 00:50:50.320
upsold 35% of those people to a three year $42,000 per year agreement for us to help them grow their

619
00:50:50.320 --> 00:50:57.120
gyms. For context, the average gym owner makes $35,280 per year and take home profits. If that's

620
00:50:57.120 --> 00:51:01.360
the average, it means half make even less than that. So for many of them, they were committing

621
00:51:01.360 --> 00:51:06.800
to half of their yearly salary or more to buy our program. And I was selling this to grown men

622
00:51:06.800 --> 00:51:11.440
as a kid in his 20s, telling them I was going to help them make more money. This was possible

623
00:51:11.520 --> 00:51:16.480
because my conviction was stronger than their skepticism. How, based on a voluntary survey taken

624
00:51:16.480 --> 00:51:22.160
at our last full company event with 158 gyms responding, we found that a gym launched gym who

625
00:51:22.160 --> 00:51:26.000
has been in our program for 11 months will experience the following average improvements.

626
00:51:26.960 --> 00:51:33.840
Top line revenue growth of $239,000 per year, recurring revenue growth of $160,000 a year,

627
00:51:34.560 --> 00:51:41.920
bottom line growth, aka profit from $2943 per month to $8940 per month. That's 3.1X increase.

628
00:51:42.960 --> 00:51:48.320
Average client growth of an additional 67 clients, churn, aka percentage of clients who leave each

629
00:51:48.320 --> 00:51:57.120
month, drops from 10.7% before to 6.8%. Retail sales and additional $4400 per month in retail sales

630
00:51:58.080 --> 00:52:03.760
after they started working with us. Prices, on average, went from $129 per month to $167 per

631
00:52:03.760 --> 00:52:08.480
month in average revenue per gym member. Their survey just proved what I already knew.

632
00:52:09.200 --> 00:52:13.760
I had complete conviction in our product. I knew it worked. I had outworked myself out.

633
00:52:14.400 --> 00:52:18.720
Summary points, what should you take from this? First and foremost, charge a premium.

634
00:52:18.720 --> 00:52:22.800
It will allow you to do things no one else can to make a client successful. We were able to charge

635
00:52:22.960 --> 00:52:27.280
a premium because we provided more value than anyone else in the industry. In a real way,

636
00:52:27.280 --> 00:52:30.960
we were charging only a fraction of what our clients made using our system.

637
00:52:31.600 --> 00:52:37.680
This is important. Our clients still got a deal. The gap between what they paid, price,

638
00:52:37.680 --> 00:52:44.160
and what they got, value was massive. As a result, the virtuous cycle continued to spin.

639
00:52:44.160 --> 00:52:49.040
We charged the most money. We provided the most value. Our gym for main the most competitive,

640
00:52:49.040 --> 00:52:52.720
made the most money, always had the latest investment acquisition systems,

641
00:52:52.720 --> 00:52:56.640
and had the support to implement the meant lightning speed. We made many mistakes along the way,

642
00:52:56.640 --> 00:53:01.200
but our pricing model was not one of them. It allowed me the room to make big bets without

643
00:53:01.200 --> 00:53:06.880
losing the farm. The truth is that 99% of businesses need to raise their prices to grow, not lower

644
00:53:06.880 --> 00:53:12.800
them. Profit is oxygen. It fuels the fire of growth. You need that if you want to reach more people

645
00:53:12.800 --> 00:53:17.520
and make a bigger impact. In order to charge so much, though, you must learn to create tremendous

646
00:53:17.520 --> 00:53:19.120
value. Let's head there next.

647
00:53:47.600 --> 00:53:53.600
The single most famous chapter in the book, The Value Equation, and I'll have a special

648
00:53:53.600 --> 00:53:58.000
little secret surprise at the end of that episode as well. I hope you guys enjoyed it as much

649
00:53:58.000 --> 00:53:59.120
as I enjoyed making it for you.

650
00:54:17.520 --> 00:54:20.640
Production Copyright 2021 at acquisition.com