	https://www.youtube.com/watch?v=F3NyhOtRpOE

1 00:00:00.000 --\> 00:01:00.000 i was able to take home more in a year
than the ceo of mcdonald's ikea ford motorola and yahoo combined as a
kid in his twenties so for those of you who don't know me my name is
option rosie founder and ceo of acquisition.com i have absolutely
nothing to sell you for those of the mostly nation that's here what's up
um except for this book you can get on on amazon for 99 cents um i i
priced it that way just because i just want everyone to be able to have
it um and it's a fun side note for those of you guys who are marketers
in the audience this book in the last three months has sold 75 000
copies which is pretty wild um and i have run no ads i have zero funnels
and i just made one post on instagram which i don't have a big instagram
um and that was it and so i think that as much as we like to talk about
all of the things that come to marketing and making offers and direct
response and all of that jazz the biggest companies in the world are so
big because they build products that people want to buy and want to tell
their friends about and if you make your product so good

2 00:01:00.000 --\> 00:02:00.000 that people can't help but tell other
people about it build the fortunes that you desire and so um i say this
just as a reminder because you know i think a lot of people could tell
that when i wrote the book it was out of love it's 99 cents and i think
that if we can if we can work from that place you will create things
that are more magical than all the people who are trying to create
things out of scarcity only to make a buck and so anyways just as a side
note so you guys want to hear something totally insane like completely
out there wild i was able to take home more in a year than the ceo of
mcdonald's ikea ford motorola and yahoo combined as a kid in his 20s
that equated to 1.2 million dollars per month in dividends for nearly
the last half decade honestly no one is more surprised than i am about
that and so me expressing this fact early on in this presentation in
some people will create envy um it'll

3 00:02:00.000 --\> 00:03:00.000 create anger in other people it'll
create skepticism in most and confusion in old folks and hopefully it
should inspire a select few and so if that was you then you are the
people that i'm making this presentation for all right because i know
exactly where you're at um because i have been there and i'll walk you
through that so i was um i was talking at an event not that long ago and
they had like levels to entrepreneurship and level seven was what they
called me which was like the highest level which is kind of silly for me
because i you'll see in a second why just a couple observations for
everyone kind of like from outside looking in that may be valuable for
you the first one is that everyone wants you to do well just not better
than them and i think that's something that we can all recognize like
some of you probably have experienced that other you will experience
that if you have people rooting for you as an underdog sometimes that
will change as you become more successful second accept that no one
actually wants you to

4 00:03:00.000 --\> 00:04:00.000 be rich except for you and so it's only
going to be up to you to get there and the nice thing about success
habits and wealth and business is that even if you don't deserve it in
terms of your character etc if you still do the actions success does not
care so success is colorblind success only cares about the work that is
done third point that i've kind of found in my in my time money only
solves money problems and then you're left with problems that money
can't solve and so i know a lot of you um maybe maybe in a situation
where like another you know more money feels like it will solve all your
problems and i can tell you um it won't it'll just solve the ones that
money can solve you'll realize which is uh point four is that you don't
actually arrive ever you just enter a new club as the smallest member
and so in the building that i live in it's almost exclusively eight nine
and ten figure entrepreneurs so eight is ten million nine is 100 million
and ten is a billion the guy who lives directly above me so literally
the unit directly above me he actually owns

5 00:04:00.000 --\> 00:05:00.000 the entire building and last year he
did 3.8 billion in sales top line he took home 930 million dollars in
income and so all that ends up happening is you you just get into a new
new club as the smallest member there's just levels to the game and um
i'll just leave you with this one last thing for those of you uh who see
what i see on the internet world and the instagram flexes is that
everyone talks about the laptop lifestyle having a business that spits
out cash flow for you passive income blah blah blah this last year i did
almost nothing work wise and our businesses generate a tremendous amount
of cash flow i can tell you that i was very miserable i think that we
need as a community to make work cool again because we kind of i see it
all over the place especially in the entrepreneurship of demonizing the
grind demonizing the hustle demonizing putting the hours in um and
saying that like if your business requires you that it's not a real
business and i think that it's a load of bs because after having now

6 00:05:00.000 --\> 00:06:00.000 exited the business uh at multiple
businesses now i can tell you it's not fun and i feel like what my my
end result of this entire process for me is that i sought out freedom
thinking that freedom and i didn't i had all my time when what i should
have been pursuing was options and so if you enjoy the work you do you
have arrived and so i can tell you right now and what i'm doing in 2022
is basically repositioning myself to get back 100 into the grind because
i choose to and so anyways i wanted to just give you guys that because i
know a lot of people are in different different places but i just wanted
to share some things that i wish i had heard earlier on so who wants to
hear about some stuff that can shortcut your path to material success so
you can ponder the purpose of achieving it to begin with let's rock and
roll all right so here's a quick framework that i have for making offers
all right and the reason that we're gonna focus on offers is because i
believe that they are the fastest shortcut to material success in a
business if i'm going to take a business over i'm going to take a a
chunk of a business as an investor the first thing i'm going to do is
look at the offer stack which is what are the things what

7 00:06:00.000 --\> 00:07:00.000 are the sequence of offers we're going
to make to the customers and prospects over their journey with the
business now there's a lot of things that i cover in the book and i like
i said earlier i could have covered every single one of them but instead
i'm going to cover four main ones okay so these are the main things that
i look at in the business and some of the issues that most business
owners deal with one is the commodity problem so the goal is to
de-commoditize it the second is making sure that we're actually
targeting the right avatar who we think is going to be able to generate
us the most long-term lifetime revenue all right the third is that we're
going to make sure that we can charge a premium price for the the
services and products that we sell and then fourth i'm going to cover
the value equation all right because it's probably the biggest takeaway
of the book and it is probably it is the concept that the book is based
around all right scarcity urgency bonuses guarantees and naming are all
things that will enhance the effectiveness of your offer um and i'll
tell you at the end some some easy resources that i can i can give you
guys for those all right cool so we're going to cover these four and so
let's rock and roll so here's the problem right now if your ads are not
converting well so clicks

8 00:07:00.000 --\> 00:08:00.000 and opt-ins uh and or your sales team
has trouble scaling so it means it takes too long to ramp up new new
reps um then adjusting your offer is usually the issue it's usually the
core problem that most people don't see all right and so to catch fish
you need bait we're in offer all right an offer is the starting port of
data transfer customer providing them in exchange for their money that
is what an offer is the reason i define is because it's good to have
shared terminology an offer is going to be the number one driver of
success of any campaign and i'll prove it to you in a second all right
so what does it actually do it will allow you to sell in a vacuum or a
category of one and forces customers to make a values-based decision
instead of a price-based decision all right i'm gonna say that again it
will force your customers if done successfully to make a values-based
decision instead of a price based decision all right if someone makes a
price-based decision means they hold up two things they say these are
close enough i will make a decision based on the price and i will choose
the cheaper one because these two are comparable

9 00:08:00.000 --\> 00:09:00.000 if i make a values-based decision i say
this is the only thing i have nothing else i can compare it to and
therefore i must accept the price that is being charged if i deem the
value sufficient all right and so the goal is to decommoditize the offer
that we are selling so that we can sell in a category of one and you can
do this in any type of business that you have and so when you do this
successfully you will increase the click-through rates on your offers on
any platform you're doing whether it's cold outbound whether it's
whether it's cold emails whether it's ads whether it's earned media
whether it's to your list it doesn't matter where you're presenting the
actual offer where those that offer sits with eyeballs wherever the
eyeballs are if you make a de-commoditized offer that is value-based
rather than price driven you will increase the number of clicks that you
get you'll increase the percentage of those clicks that convert and
you'll increase the price at which those people purchase all right and
so the simple translation for that for those who are or hopefully not
poured out of your mind with the the

10 00:09:00.000 --\> 00:10:00.000 concept or with the the marketing
jargon is you get more leads you get more sales at higher prices and
each of those multiply so if you get two extra leads 2x the conversion
on those leads which is now a 4x and then you can increase your price by
2x that is an 8x increase in business that is why the offer is so
important and so strong so i'm going to give you guys a real life
example so b2c weight loss right now is 99 a month if we're going to try
and sell that all right for 99 a month i could not do it all right i
failed miserably and so what i had to do when i was trying to i couldn't
even give this away for free we transformed this offer into a free
six-week challenge by doing that what ended up happening is we changed a
not even break-even offer to getting 30 to 1 returns 30 to 1 returns on
our advertising all right the second example i want to give you i'm
going to walk you through this one live together is a 1500 per month
retainer offer uh

11 00:10:00.000 --\> 00:11:00.000 one of our software companies that we
sold on allen we dealt with a lot of brick-and-mortar agencies so people
who would sell to chiropractors people who would sell to whatever right
a lot of times they had an issue where they were getting commoditized
right everyone had more or less the same offer and so they would say hey
pay me every month and either you get results or you don't get results
and the average agency who was there would get about point five to one
return on their ad spend in their first 30 days so if they spend a
thousand bucks they would make 500 on average and then the next month
they would make a thousand and so forth right so they kind of broke even
or lost a little in the front end and then they continued on the back
end but what we were able to do is actually 22x the increase on average
of the return on ad spend by simply changing the offer is that cool so
right now if you could 22x the difference that you got and it did the
same thing in the first one same thing on the second we're talking 20x
30x increase the return on ad spend would that be cool for you guys this
is what happened before with the agency offer okay if you look here i
have this chart and this is these are the actual numbers so when the
guys were

12 00:11:00.000 --\> 00:12:00.000 spending ten thousand dollars a month
they reached 300 000 people the response rate was point zero zero zero
one three right the number of appointments that booked was 40. the show
rate was 75 appointments showed 30 you know closing percentage was
sixteen percent cleanliness was five price was a thousand bucks right so
they'd make five thousand dollars off ten thousand these were the real
numbers okay now when we introduced the new grand slam offer and the new
offer that we gave them was pay us one time and we will work all of your
leads for you and then you only pay us a gun after this first payment
after someone shows up so only pay us when someone shows up after you
sign up with us that's it you pay me once today i set everything up and
from that point going forward you never have to pay me again unless
someone walks in your so check out the difference here so the
advertising spend was equivalent between you know day one it says ten
thousand ten thousand right impressions are the same because you know
ads still cost the same amount but here's what's crazy two and a half x
increase in response rate okay two and a half x but that's just step

13 00:12:00.000 --\> 00:13:00.000 one now the changing result is we got
from forty appointments to a hundred appointments for that ten thousand
dollars of ad spend show rate was the same nothing changed there but now
we have 75 people showed up rather than 30. and here's the next crazy
part is that rather than closing 16 which is what they were doing with
their commoditized offer at a lower price they were now closing 37
that's 2.3 x all right so more people were now buying more okay and so
now i look at the difference in appointments closed you have five
appointments closed versus 28 that's the result and here's what's even
crazier they were closing 16 of the thousand price point but with the
new offer the grand slam offer they were closing that at four times the
price four times the price and so this was the end result for that same
ten thousand dollars in ad spend went used to get them five clients at
five thousand dollars a month and there's their five thousand dollars
instead now they got 28 customers at 4 000 up front with a continuity
program that had what i call an implied guarantee which i won't be able
to get into today but basically any

14 00:13:00.000 --\> 00:14:00.000 kind of performance offer that you can
make is always an implied guarantee and so they would make a hundred and
twelve thousand dollars simply by changing the offer which is a 22.4x
increase in cash collected upfront and that doesn't even include the
lifetime value on the back end so you guys getting how powerful this is
the difference between 0.5 and 11.2 they didn't even change the creative
they just changed the offer they didn't change their funnels they didn't
change their nurture sequences they changed any of that stuff they just
changed what they were offering to the marketplace all right so right
now can you think about in your business how if you could change that
core thing how different the outcomes could be cool does everyone feel
good about that in terms of understanding why this is so important and
why the goal should to not be a commodity but actually sell in a
category of one with an offer that's so good that people feel stupid
saying no does that make sense that is why this is so important because
otherwise you're gonna be price compared you're gonna you're gonna have
lower conversions you're gonna have lower people show up you're gonna be
able to only sell at low prices and you're ultimately just gonna be like
everybody else and everybody else is broke so don't be like them so

15 00:14:00.000 --\> 00:15:00.000 step number two is making sure that we
find the right market all right so um this is kind of an interesting
concept so i was at a uh and if the picture is blurry it's because my
picture's actually blurry and i couldn't find a sharp one um so i went
to this mastermind um and in the room the the entire group was doing um
actually was 600 million in top line revenue so the highest guy was
doing 250 million smallest guy was doing seven second smallest guy at
the time was doing 35 all right um and everybody else was in between and
so i was sitting there and you know i was watching these guys do their
presentations and i just i was left with this feeling where i was like
are these guys making more money i was like i couldn't get it like i i
was just like i was losing my mind to try to figure this out right and
then it dawned on me after i was just like going on these blocks i was
like they're just going after better markets that's all like that was it
like it wasn't they were better at sales wasn't there better at
marketing it wasn't like they were better at fulfillment i was like i
know that we're nailing these things because when i was talking to them
i didn't feel like they i lacked

16 00:15:00.000 --\> 00:16:00.000 something it was just because they
were going after the right market all right and so there you go it's
almost like i made this presentation and that was the conclusion they
pick better markets and so what i want to do is because this is probably
the number one question i get from people who are newer in the
entrepreneurial space um and so here's the quick answer that i give most
people if you're trying to figure out who you're going to serve right in
your earlier on in your journey the way to pick that person is select
the after you can provide the most values period so if you have like two
or three people you're trying to decide between pick the guy you can
provide the most value to that's the game number two the medium answer
you want to make sure that you pick a single avatar so that you can
productize your service and provide that value with low operational drag
so let me give you an example so if you were to help one chiropractor do
something right and generate leads or whatever then you would probably
it would take you a lot of work to get that first guy going right but if
you had a hundred chiropractors your 100th chiropractor you probably
have a lot of that stuff pre-built and pre-made right which means the
amount of

17 00:16:00.000 --\> 00:17:00.000 time and effort that it would take you
to do that hundredth one is very low and on top of that through that
hundred iterations you probably get better and better and better and so
here's what happens the value that you provide actually increases and
the cost to you actually decreases which means there's a big discrepancy
between what that person is now getting and how much it costs you and we
call that profit which is the point right and so the reason that we
niche down when we're picking our markets is so that we can ultimately
make more money and i don't have this uh example in the presentation but
right now if i were to say hey guys i have a time management product
right and uh if i if i was selling it and you go to barnes and nobles
whatever you probably find it for 19 bucks right it's just time
management cool now if i were to say hey same product but now it's time
management for sales people can you all of a sudden imagine that product
being like a 99 product like oh okay i can imagine that being a 99
product all right now let's niche down a little further and say well of
the people that could you know make the most money with time

18 00:17:00.000 --\> 00:18:00.000 sales people definitely will will make
more money with save time but what about outbound sales people we can
make it even more specific and talk about their pain points etc and so
we now make it an outbound sales rep time management course or book
right and now this is probably like can you imagine that it's more
probably more like a 500 product right so you're an outbound sales rep
time management for outbound sales reps ah so what if we ditch down even
further and we said um outbound power tools and gardening sales reps
time management all of a sudden this product goes from 500 to a 2000
product right now here's what's crazy about this the product remains
virtually unchanged the only thing we did is we defined who the avatar
was and we got narrower and narrower and narrower and so right now if
you're thinking like the goal is that that prospect when they read your
persuasion they read your copy the goal is not for them for for them to
understand what you are writing the goal is for

19 00:18:00.000 --\> 00:19:00.000 them to feel understood and that is
the goal of great persuasion is that they feel understood that's the
point and so the better we can articulate their problems and their
reality to them the more they will be willing to purchase our product
right and the more what we want them to feel is this is just for me and
that's the goal right and so when we're picking that market right let's
go back to our presentation this is my live speech answer which is what
you guys are gonna get so i give you the quick answer which is provide
go go pick the guy you can provide the most value to the medium answer
is zero in on that niche and go really hard on it so that you can
eventually productize your service and decrease your operational drag
but here's my live speech answer all right so right now let's pretend
we're we're in class right and there's a marketing professor that's um
that's in front of the in front of in front of in front of us right and
he says everybody here has now been gifted a hot dog stand and you are
now forced to be in the hot dog stand business if you had one
competitive advantage for your hot dog stand what would it be well i'll
tell you in this uh and i think this may actually be a real story so i'm
not sure and so in the classroom all

20 00:19:00.000 --\> 00:20:00.000 these people started starting shouting
out all those things right you know better ingredients right and after
everyone died down he said the secret is that you want a starving crowd
because when the football game lets out at 3 o'clock in the afternoon
and everyone's starving and drunk you want to be the guy on the hot dog
stand in the corner and you could have the worst hot dogs that were
wildly overpriced and you would still sell out because when you have a
starving crowd when the supply demand curve is in your favor it's hard
to not make money and not make lots of it okay and so when we're looking
at the market these are the four attributes that i look for when i'm
looking to pursue a market okay you can write these down number one is i
want them to not just desire but be in desperate need of the solution
that i have all right i don't want people who are merely aroused i want
people who are ravenous for a solution number two they must have the
ability to purchase the product that i want at the price that i want to
charge number three they must be easy to target

21 00:20:00.000 --\> 00:21:00.000 i can't target them i can't put my
offer in front of them i'll ultimately not be able to reach them and
sell and then number four i want to make sure that it's growing market
all right so let's dive in so one of the sayings that i have in my sales
team is the pain is the pitch right and like i said earlier the point of
good writing is for the reader to understand the point of good
persuasion is for the prospect to feel understood all right and so the
goal here is that we want them to feel understood in the copy which is
why niching down is so important right it's very difficult to make
someone feel unique and singled out if you're talking to the masses
right which is why it's so amazing that some of these mass market brands
that do exist but most of them start small and then continue to scale in
adjacent markets all right so we want to make sure that they're in
desperate need number two so a friend of mine um had a really good
process for improving people's resumes so they could get more job
interviews like he had a really dialed in process and he looked at these
four things and he was like well this is i think this will absolutely
crush and as you guys might even imagine

22 00:21:00.000 --\> 00:22:00.000 is improving people's resumes so they
can get more interviews it actually tanked and the reason was the p it
was a growing market it was easy to find the unemployed people they were
in desperate pain but they had no money right and so he had a really
hard time charging the amount that he wanted for the service that he had
right and so we got to make sure that whatever market you're zeroing in
on they can afford you right and the thing is is there is a market out
there that is in desperate need of a solution that you have find them
right and they will pay you what you're worth life's too short to deal
with people who don't appreciate you all right so number three this one
is very tactical right but if you're trying to sell to you know rich
doctors and your ads or your offers are only being displayed to nurses
it's going to fall on deaf ears no matter how good the offer is no
matter how good your funnels are no matter how good your sales team is
and how great the product is you're just not reaching it right and so if
your people are not aggregated somewhere in associations groups list
channels etc then just don't pick it because at the end of the day

23 00:22:00.000 --\> 00:23:00.000 like business is hard enough on its
own you might as well just make the things have as many tailwinds behind
you as you possibly can because the thing is it's ultimately our choice
right whatever business or marketplace we choose to get into it's our
choice so i might as well pick one that's going to be easy to work on
this is a little bit of a tactical point but this is just through my
experience of dealing with lots of companies and having owned and scaled
lots of companies it's much easier to deal with ones that are easy to
target all right and so here's the fourth one this probably one of my
favorite stories so warren buffett was doing an interview and he was
talking about uh his best friend at columbia and so this is before he
was more above it he was just a nerdy kid who liked finance at this
point right and he said there was a young gentleman who he admired a lot
who he thought was you know incredibly sharp had tremendous work ethic
high integrity um and he was somebody that he was proud to be associated
with and ultimately when they graduated columbia they split they split
ways right one person went into steel and then he obviously went into
his partnership that eventually became bertrand right and what's
interesting is he said when he looks back on his life one of the most
important lessons that

24 00:23:00.000 --\> 00:24:00.000 happened is that that individual that
man that friend of his he said he achieved some material success he said
but nothing you know nothing really remarkable and he said that that
lesson from that man was singular in its importance because what it
taught him was it is far more important what boat you are in rather than
how hard you row it is far more important what vote you are in rather
than how hard you row and so a lot of you a lot of us as entrepreneurs
we pick these huge challenges that and we're just rowing and growing and
growing and trying to outpace the current that's going in the other
direction and so there's an old vc saying that's a venture capital
saying where it's great entrepreneur in bad market market wins bad
entrepreneur in great market market wins right and so the point is is
that the market matters more than anything when people actually are
investing in businesses they actually look they're like what markets do
i want to get exposed to because they know that even if we're mediocre
and the market quadruples then we will quadruple even if we're average
and so we might as well have the tailwind and i'll tell you one final
story about this so good friend of

25 00:24:00.000 --\> 00:25:00.000 mine lloyd um really sharp
entrepreneur he had a software company and uh it grew and then all of a
sudden it started stagnating right and this is probably like six or
seven years ago and he's and and for six or seven years i saw him really
struggle right to grow the business and he was uh he was in the
newspaper business right and so he was selling an ad product to
newspapers and one time we're having dinner he's like dude i just don't
know what's going on he's like my offer is a rep share model like it's
they only get you know i only get paid if they get if they make money uh
you know we've got a great outbound team we got a great sales team like
i just i don't know what the problem is and i'm looking at him from
across the table and i was like you serious he was like yeah i was like
dude you're selling newspapers they're dying they're losing 25 per year
compounding 25 newspapers about a business every year and they have for
the last eight years and so that's how big the market was that's how
much the market was shrinking annually compounded against him and this
is probably of the four factors the biggest one that we have to look at
when we're trying to pick our market is we might as well pick the right
boat one that has a tide that's

26 00:25:00.000 --\> 00:26:00.000 behind it with a heavy you know with a
good wind going in the right direction because no matter what business
is gonna be hard we might as well have one that's going in the right
direction so those are the four components of picking the right market
is that useful for you guys in terms of making sure that you're niching
down picking people who have have pain have purchasing power are easy to
find and are growing all right we want a market that is growing there's
more of them every year right if you're getting into sil you know silver
sneakers and retirement homes there are 10 000 people retiring a day and
there's not nearly 10 000 units of retirement homes available right
which means that that's probably going to be something that if you're in
that space you're going to make a lot of money simply because of supply
demand we'd rather have those chips stacked in our favor so i want to
play a money game and this is not in the book so you guys pay attention
to this one this is actually my favorite money games of all time okay so
let's say that this is your business you can see the stats on the left
there and hopefully it's clear for you um let's say that you have a
business that gets 30 new clients a month let's say your churn meaning
the percentage of customers that leave every month where active is 33
that means that the average customer stays for three months okay

27 00:26:00.000 --\> 00:27:00.000 let's say the price of your service
whatever it is a hundred dollars a month i'm using simple math here okay
and so that would mean that your total number of clients that you can
actively manage is 100 because every time you sign up 30 30 more leave
and it's just around and around and it maintains at 100. all right well
let's say your net margins are 20 so that would mean that your revenue
is 10 thousand dollars a month and your profit's 2 000 all right is
everyone with me so far everyone good with this okay so let's say we rub
we rub a magic water bottle right and this magic water bottle is a very
specific niche water bottle because this niche water water bottle
creates a niched genie okay and so the little niche genie comes out of
the the the bottle and says i am a business gin you're like oh wow this
guy's intense right he says i can double one aspect of your business and
you must pick which of the three you wish me to double right so it's a
very niche genie very particular about his about his wish selection but
you know we're like hey i'll take a wish if i can get one right and so
these are the three doors that he offers us okay

28 00:27:00.000 --\> 00:28:00.000 choice number one is that he says i
can double the number of new customers that you get every month so that
30 number turns to 60 new customers a month so i can do that that's
option one option two i can double the price of your products or
services and everything else stays the same that's option two say okay
cool option three i can double the number of purchases per customer
which means that people go from staying for three months to staying for
six months okay so our trend gets cut in half which of the wishes would
you wish for from our business genie fyi no matter what you're going to
make more money because we got a business genius we kind of lucked out
there right so if you were to double the number of new customers what
would happen is everything would double so you'd go from 10 10 uh 10 000
a month to 20 a month your profit would go and your you know margin
stays the same twenty percent so now you go from two thousand dollars a
month to four thousand dollars a month in profit right twenty percent
twenty thousand is four grand from twenty percent of ten thousand which
is two grand all right so two grand goes to four grand you've now
doubled your

29 00:28:00.000 --\> 00:29:00.000 profit that was door number one door
number three if you double the number of purchases you actually make a
little bit more than twice the profit and here's why if you now are
acquiring the same number of customers right but they're staying twice
as long right on your on your recurring basis but the margin stays the
same the difference is that the the cost of acquisition that you are now
saving and not you'll get the same top-line revenue as as version one
because that customer is now worth twice as much to you but you only
have to spend this this amount of amount of money that it costs you to
acquire that same 30. right so now you're you're still spending the same
amount you're still acquiring 30 customers but now they're worth twice
as much right and so by doing that you actually make a little bit more
than twice the profit door one is the quote worst door the second
runner-up or the first runner-up rather is doubling the number of
purchases or decreasing turn in half and as you can imagine the best
choice was choice two

30 00:29:00.000 --\> 00:30:00.000 which is doubling the price of your
product or service and here's why this is so crazy so i'm gonna walk you
through this i'm gonna use my hands all right so if we were at ten
thousand dollars a month with a twenty percent margin that means we're
making two thousand now all of a sudden we doubled our price now we're
at twenty thousand dollars a month but we changed nothing about what we
were selling and providing which means that additional ten thousand
dollars a month is pure profit which means we took our our profit from
two thousand dollars a month to twelve thousand dollars a month which
means we six x our income six x people talk about making 20 increases
this is a 600 increase that my friends is the power of price which i
wanted to use that story to introduce the pricing section which is why
it's called charge what it's worth and right now many of you are
undercharging and ultimately under providing value because you are not
charging the right amount of money all right so i'm going to give you a
few

31 00:30:00.000 --\> 00:31:00.000 frameworks that have served me well
here so this one is called the price to value discrepancy the goal of
any business is to have a private uh you know a dollar for something i
want you to get ten dollars worth of value right which is why you want
to continue to do business because every time you give me a dollar if
you get ten dollars of perceived value back you're going to want to do
that trade as much you know as many times you possibly can right right
so many of you would probably pay more than you currently do for your
netflix subscription you might pay 20 a month if they raised it and be
okay with it they might pay 30 a month but the amount of access they
leave there is the customer surplus all right and so you can see there
there's the value and the price and we always want to make sure that the
price is below the value here's what happens with most businesses though
most businesses charge their uh their price is actually above their
value which is why they never get repeat customers because their product
is right if you charge at your value someone will purchase they won't be
negative they won't be positive they'll be moved right and so there's
two real options here we can either increase that

32 00:31:00.000 --\> 00:32:00.000 discrepancy by lowering our price so
let's say our value is fixed right if we lower our price we have a
discrepancy right the other option is to raise our value right and i can
tell you one of those is gonna make you a lot more money all right and
i'm sure you already know which one it is which is increasing your value
all right so this is what most people do and why you should charge so
much that it hurts most business owners are not competing on price or
value in fact they're not actually competing on anything at all their
pricing process typically looks something like this and this may be some
of your guys process you look at the marketplace you see without what
everyone else is offering you take the average you go slightly below to
remain competitive provide what the competition's offering with a little
bit more and then end up with a value proposition of a little more for a
little less it's a losing proposition you're not going to win that way
and so what i want to do is introduce you to a very different framework
to think through this all right and this is called the virtuous versus
vicious cycle of price all right so this is what happens when you raise
your

33 00:32:00.000 --\> 00:33:00.000 prices all right so if you have any
type of business where someone is required to do something right like
onyx business right you guys are required to do something uh in order to
succeed right we have to work now if we raise our prices this is what
happens if you raise your price you increase the emotional investment of
the person if you pay ten thousand dollars for a book versus a dollar
for a book what do you think the likelihood is that you're going to read
and finish the book if you pay ten thousand dollars for very high so
same book because we've increased the price we increase the likelihood
the person actually does it which if we're saying that we're trying to
help people then it is ethically our prerogative to get them as
emotionally invested as possible which means we should use one of the
tools we have in our availability which is price the second is that if
you buy a ten thousand dollar book versus a one dollar book what is your
perceived value you will probably believe that the value is going to be
far superior even if you change nothing i'll give you a quick story on
this so right now uh they did a uh they did a

34 00:33:00.000 --\> 00:34:00.000 research study with this where they
had um tasters drink wine all right and so they gave them three wines
they had cheap wine a mid-tier wine and a high tier wine and they told
them the price and everything um on the bottles and they had them try
them and they had them rank them right and they could see the prices and
so unsurprisingly they rank the best one the best the middle one the
middle and the cheapest one the the worst right but here was what's
crazy all three bottles had the exact same one so in a very real way
price confers value to the product or service that you provide the
reason the louis vuitton perch uh purse means more to you is partially
because it is so expensive because it costs us so much time and effort
to save the money to make the purchase it partially gets it it imprints
that value onto the product so why not use that to our advantage and
especially if we're going to make a lot more money doing it the third
piece is that if someone's more emotionally invested and they perceive
it as more valuable they're

35 00:34:00.000 --\> 00:35:00.000 going to get better results if the
price is higher right the demandingness of the customer and some of you
guys will probably know this have you guys noticed that your cheapest
customers are the worst people and the ones who pay you the most are the
easiest to deal with right so when you raise your price you get more of
the good people and fewer of the bad people right hey 50 a month you
should be on call for me 24 hours a day you're like i don't know if i
like you more than my wife and then finally and this is one of the key
points that drives me uh drives the decision home for me is that the
revenue for fulfillment per customer so if you triple you know the
profit that you make on a sale then you have three times the amount of
resources compared to your competitor to provide the value that you
promised and ultimately in doing that you actually provide a better
product and so that is why this is called a virtuous cycle because the
more you increase price the more you increase their emotional investment
the more you increase their perceived value of the product that you're
giving the better results they get the less demanding they are which is
the less operational drag you have to deal with and ultimately the
better product that you'll be able to fill because you can keep your
promises

36 00:35:00.000 --\> 00:36:00.000 because you have profit left over all
right and this is what also people care less they they value it less
they get worse results they're more demanding and you have even less
resources left over to hire amazing people to give an amazing experience
because there's so little profit left over right that would be a vicious
cycle and then for you as the business owner so that was just from the
client's perspective but for you as a business owner if you increase
your price you increase your profit if you increase your price you
increase your perceived value of self because who here would rather sell
a hundred thousand dollar thing than a ten thousand it's a ten dollar
thing right your own perceived value of what i am worth because of the
value i know i can provide goes up all right and your perception of
impact because i'll be honest with you like business can get hard but if
you're not reminded constantly on a daily basis of the good you are
doing the impact you're making the customers that you have that are
seeing amazing results and success from whatever experience or
transformation you provide if you don't have that you're going to be
lost eventually you're going to burn out but if you do

37 00:36:00.000 --\> 00:37:00.000 have that because you raised your
price and you had profit to give and reinvest in the business and create
amazing experiences then you'll feel better about it right your service
level will go up and then finally and this is a key one if you have a
sales team or if you're the sales team because of the emotional
investment perceived value results uh and and the amount of extra profit
you left over for the experience that you want to build you will be
convicted that you can fulfill the promises that you make and the number
one thing that converts prospects into customers is their belief that
you will actually be able to help them and that belief starts with you
because at the end of the day sales is a transference of conviction from
you to them through a bridge of trust right that is the point that is
how it works and so if you don't have the conviction to start with even
if you have the trust you'll never be able to transfer it because you
don't actually have the conviction yourself and so when we think in this
way we realize that raising our prices having increased profits is not
only a good thing to do business-wise but also the ethical thing to do
if you want to provide your customers with the true result that you

38 00:37:00.000 --\> 00:38:00.000 promise them all right and so the goal
here which i wrote here on the right is to be so much higher that a
consumer thinks to themselves this is so much more expensive there must
be something entirely different going on here and it forces them to pull
you out of that commoditized category into a category one so they
consider you on your own and your own merits of the offer itself and
then make a values-based decision you guys digging this is this cool
interesting sweet okay that was framework number three which is charging
what it's worth i'm doing okay on time so i'll we're going in the into
the fourth fourth fourth quarter okay which is the value equation and
this is the concept that this book is really um centered around all
right which is this value equation so i'll tell you a quick story so um
i i did this uh i did this presentation um this was a two-day event that
we held and this is actually a fulfillment event this is not a sales
event um for for my company and so every single picture every single
head that you see in this in this room paid 42 thousand dollars to be
there and if you're keeping track from home

39 00:38:00.000 --\> 00:39:00.000 and you're trying to count 42 000
start at the bottom and go to the left there's 700 people all right it's
a very big room it's very deep and um i remember the morning after i
felt kind of hung over because i'd been speaking for two straight days
and my dad called me up and he sounded really concerned so i like rolled
out of bed and i was like hold on i like put a hoodie on and start
walking the hallway he was like hey i thought i thought that event that
you had was only for your highest level kites and i was like yeah it was
he's like no i mean the 42 000 people and i was like yeah it was he was
like you had so many people there how could how could you have them all
pay 42 000 to be there he's like do they do they know you're charging
them that much money this is my dad right and i was like yeah they're
aware that i'm charging i'm not magically siphoning money from their
bank accounts like they're aware he's like i mean i hope what you're
selling is worth it it's my father my own father sells me this right and
so you know as much as that might have stung in the moment right um i

40 00:39:00.000 --\> 00:40:00.000 realized that it was just a lack of
understanding he didn't get how value worked and so i said well let me
walk you through an example i said if right now because he he is a small
business and i said hey if if i were able to increase your top line
revenue by 239 000 a year would you pay me 42 grand he's like well it
depends he said what would i have to do and i was like well uh you'd
have to work 15 hours a week more to to do the system it was like okay
he said how do how do i how like like do i know is it guaranteed like
how do i know that that's what i'm gonna get and i was like that's just
the average which means half of people do better than if you think you
were above average then you did more than that he's like okay um and how
long would it take for me to for me to get that result and i was like 11
months on average and he was like it would take me 11 months that's the
um

41 00:40:00.000 --\> 00:41:00.000 and i was like yeah he's like yeah
then i would pay 42 000 a year for that and i was like exactly and
that's why they do too and so ultimately that is a premium price
experience that i have lived through all right so that's 700 people at
our highest level in our gym word business which is a licensing business
we paid that as 28 million a year just from the highest level okay and
the reason that that is important is that you can absolutely charge a
very large amount of money if you can provide value for an access of
that who here would pay you know forty thousand dollars to make an extra
two hundred and forty thousand dollars on average would you guys do that
if those are the terms yes and that is why these people do too and so if
you want to raise your prices you must ultimately raise your value and
the reason i part of the reason i wrote this book was because i hear the
term value thrown around in the entrepreneurial community all day long
provide value give value blah blah blah right but no one actually
defines what the term means so this is my best effort at defining it so
there's four variables to the value equation all right and so it's

42 00:41:00.000 --\> 00:42:00.000 a fraction you've got a numerator and
a denominator you guys can remember from grade school all right the
numerator numerators the top denominators the bottom all right and so if
you're trying to make a bigger value or bigger number here the goal is
to maximize the top and minimize the bottom right right so let's go
through the first one the first one here is oops there we go dream
outcome all right so the dream outcome is simply to demonstrate that the
person must desperately desire what it is you're selling sometimes you
guys are selling things that no one actually wants which is why no one
buys the dream outcome doesn't even match right you're trying to sell
you know automation to doctors or something like they don't care
whatever right you don't actually want to be selling ice to eskimos
because they're like i got plenty of ice and i don't value it right so
as much as that saying is cute it's also not very business that right
and so dream outcome is uh is number one and so the reason that this is
so important is that if let's say for men for example most men get more
status from having money than being you know thin right and so if i were
to survey guys would you rather be a millionaire

43 00:42:00.000 --\> 00:43:00.000 would you rather be thin most guys
would choose millionaires right right and so that means that as a
category overall men will value money more than their appearances which
is why you know you see i won't even get into this more than that but
hopefully you should understand that which is why the entire category of
making making people make more money return on investment et cetera has
higher price tags in general okay and that is what differentiates so if
you have two different things one is helps guys make more money and the
other one helps them lose weight the one that helps guys make more money
in general will be priced higher now what happens if you have two
products that are in the same category and one sells for fifty thousand
and one sells for five dollars well the reason that you have the other
uh that you have that price discrepancy due to two things in the same
dream outcome is the other three variables right how come liposuction is
fifty thousand dollars and a weight loss ebook is five bucks even though
the dream outcome of weight loss is the same right right so that brings
us to the second part of this equation all right which is perceived
likelihood of achievement if i'm buying a five dollar ebook what do i
really think my perceived likelihood is that

44 00:43:00.000 --\> 00:44:00.000 i'm actually going to lose weight and
look amazingly the guy in the cup for five bucks for an e-book probably
pretty low i might even not even read it right how many of you check my
email right now on the flip side if i pay 50 000 for liposuction what's
the likelihood that i think it's actually going to happen really
freaking high right so let me give you a different version to illustrate
this concept of how increasing the perceived likelihood of achievement
actually increases the value you can charge all right this is the front
end so let's say in that liposuction example you've got two doctors you
can pick from you got a doctor who's fresh out of medical school he's
never cut into a person you're gonna be his first patient and then the
second doctor has done this procedure specifically for you ten thousand
times for people just like you which guy are you gonna pick doctor two
with ten thousand successful surgeries or doctor one with zero this guy
not only that you would probably be way more willing to pay way more
money for this guy even though the actual surgery dream outcome time
under the knife would remain the same and that is because you we confer
value based on

45 00:44:00.000 --\> 00:45:00.000 our perception of the likelihood that
the person is going to provide us the service that we have i had a
different price point for my business when i had 100 testimonials versus
2 000 because that was the that was so very by the way if any of you
guys ever have to raise your prices did you get better and better over
time you said that was the 100 testimonial price because there was lower
perceived likelihood of achievement now i've got 2 000 you know it's
going to work the goal of the top is to increase it now most starter
marketers only focus on the top half of the equation but when you look
at the biggest businesses in the world they actually put all their
attention on the bottom half which is actually where the competitive
moat from operations occurs okay so the third variable here is time
delay which is how long between when i purchase and when i get so if i
were to click a button on the internet for a weight loss product and all
of a sudden i pulled my shirt up and i had a six pack imagine how
infinitely valuable that product would be and to give a different twist
on the example imagine i had a marketing agency and i signed someone up
and most are competing against saying oh it's going to take to use you
know do all these things whereas the

46 00:45:00.000 --\> 00:46:00.000 one that i just signed up for the
agency that i created as soon as i sign the paper my phone rings the
qualified appointment and they say hey i just saw your ad imagine the
difference in value the difference there even though that might have
happened 60 days later in the in the second example is time delay fast
beats free the easiest way to provide value in any marketplace is look
what everyone else is doing and do it at half the time all right so that
is an element and the third component of value the goal is to decrease
it and then finally we have effort and sacrifice right and effort and
sacrifice are two sides at the same point effort is things that you must
now start doing that you do not want to do that you must do as a result
of a purchase sacrifice are things that you now must stop doing that you
like doing that you can no longer do as a result of a purchase so for
example i'll use weight loss because we've been keeping it consistent um
if if i have to start waking up earlier in the morning then that is
effort if i have to endure being sore that is effort if i have to

47 00:46:00.000 --\> 00:47:00.000 give up drinks with the girls on
saturdays and margarita mondays then those are sacrifices right and so
most and i like putting both of those in there because when you're
writing copy it's good to think about both sides because you have to
give up sleeping in but you have to start waking up early right so it
just gives you two sides to think about it from a messaging perspective
and so when we're creating a product the ultimately valuable product
would be a product that i didn't have to do anything for that the moment
i clicked purchase i knew it was going to work and it happened
immediately and so think about the difference between let's say
meditation right meditation is the dream outcome is to feel relaxed
right perceive likelihood of achievement meh time delay might take us
months of meditation to actually get that kind of subjective well-being
boost right and then the effort and sacrifice is i'm gonna have to sit
cross-legged my legs go numb i have to feel like an idiot because i'm
not staying focused um i have to do this for 30 minutes every single day
to eventually yield the results which is why you know there's not a lot
of huge meditation distances right

48 00:47:00.000 --\> 00:48:00.000 flip side what if i gave you a pill
called xanax you feel chill your perceived likelihood is 100 the time
delay is 15 minutes the effort and sacrifice is you swallow some water
and that is why you have a multi-billion dollar product these are just
the rules of value all right and they don't care about who you are or
what you sell these values sorry these pillars to create value can apply
so if you can think about your own business and the offers you have how
can i increase the dream outcome how can i increase the perceived
likelihood of achievement how can i decrease the time delay for my
prospects and decrease what they have to do in order to be successful
does that make sense is that cool is that a cool process for envisioning
value you can apply that framework because once you see it you really
can't unsee it um and that's how i think through any of the products
that we're ultimately going to sell on any of the companies that we own
all right and so five six seven eight nine so scarcity how to build that
into your offers urgency scarcity is a function of units urgency is a
function of time people usually lock them together but they are
different

49 00:48:00.000 --\> 00:49:00.000 bonuses are one of the things you're
gonna offer in access of your of your core offer what are the guarantees
we're going to offer to reverse the risk there's four you have
unconditional conditional implied and anti-guarantees all right there's
lots of stuff that i wish i could talk to you more about in terms of
creating offer and so what i want to do is give you guys something cool
all right at acquisition.com i have this entire course outlined um this
book is 99 cents you don't have to opt in for it so i'm not trying to
build my list or anything like that i just want you guys to have this
stuff so you can just win all right i really have nothing to sell you
which is why that's the tagline on my youtube channel um i just want
more people to win all right so if you if you want a deep dive on each
of these it comes with uh checklists and swipe files and downloads it's
all free you don't have to give me anything um and then if you like the
digital version uh the kindle's 99 cents so hopefully anywhere you are
in the world no matter what the economic climate is you can scrounge up
99 cents uh to get the you know to get all the stuff all right so um
it's all free my gift to you like i said books there and if you like any
of this type of stuff i have a youtube channel you can follow me on um

50 00:49:00.000 --\> 00:50:00.000 and i have an instagram account all
right so if you if you like this type of stuff um i hope you do and uh
as a side note if you are a company that's an e-learning or
brick-and-mortar chain looking to scale we invest in companies that are
at one to ten ish million that are trying to get to 10 to 50 million and
beyond so that's kind of what we do so appreciate you guys thank you for
your attention i hope you feel like you got a good return on it and have
at least a few frameworks that you can apply to increase the
effectiveness of your offers and ultimately get more people to opt in
more people to convert by percentage at higher prices and ultimately
provide far more value than anyone else in your markets
