Value - Create Your Offer Flashcards
What does Alex say the goal should be?
to charge as much money for your products or services as humanly possible.
anyone can raise their prices, but only a select few
can charge these rates and get people to say yes.
Why should you abandon any notion of what’s “fair” pricing?
because every enormous company in the world charges you money for things that cost them nothing.
ex: phone companies, pharmaceutical companies, media companies
What’s the only way to be unreasonably successful?
having a big discrepancy between what something costs you and what you charge for it.
you should never charge more than your product is worth but you should charge
far more for your product and services than it costs to fulfill it.
Think up to a hundred times more, not just two or three times more.
If you provide enough value, it should still always be a _____ _____ _____ _________.
steal for the prospect.
Those who understand value are the ones who
will be able to charge the most money for their services.
The repeatable formula to help quantify the variables that create value for any offer is
The Value Equation
Picture of the Value Equation
There are _____ primary drivers of value.
Two of the drivers (on top), you will seek to __________. The other two (on the bottom), you will seek to _________.
four;
increase;
decrease.
The Four Drivers Of Value
- (Yay) The Dream Outcome (Goal: Increase)
- (Yay) Perceived Likelihood of Achievement (Goal: Increase)
- (Boo) Perceived Time Delay Between Start and Achievement (Goal: Decrease)
- (Boo) Perceived Effort & Sacrifice (Goal: Decrease)
What four “pillars” correspond to the value equation
- What will I make? (Dream Outcome)
- How will I know it’s going to happen? (Perceived Likelihood of Achievement)
- How long will it take? (Time Delay)
- What is expected of me? (Effort & Sacrifice)
The best companies in the world focus all their attention on the _______ side of the equation. Which means
Bottom;
Making things immediate, seamless, and effortless.
you have an infinitely valuable product if:
If you can reduce your prospects’ true time delay to receiving value to zero (aka you realize your immediate dream outcome), and your effort and sacrifice is zero.
If you accomplish this, you win the game.
Perception is
reality
It’s not about how much you (ACTUALLY vs. perceived)
increase your prospect’s likelihood of success,
or decrease the time delay to achievement,
or decrease their effort and sacrifice.
That in itself is not valuable. Many times, they will have no idea.
When is the only time your GSO becomes valuable?
once the prospect perceives the increase in likelihood of achievement,
perceives the decrease in time delay,
and perceives the decrease in effort and sacrifice.
What is the London Tunnel System example?
The biggest increase in rider satisfaction (aka value) was never from faster trains to decrease wait times.
Instead, it was from a simple dotted map that showed them when the next train was coming and how long they had to wait.
what did The dotted map do in the London Tunnel?
The dotted map, which only cost a few million dollars, decreased the riders’ perception of time delay and sacrifice (being bored waiting) more than actually making the trains faster (which costs billions of dollars to do).
Isn’t that cool? This is how we need to think about our products.
Instead of looking for logical solutions to build value (which is perceived)
use psychological solutions
as business owners, it is up to us to communicate these _________ _________ with _________ to increase the prospect’s ____________ ____ _______ ___________.
value drivers;
clarity;
perception of these realities.
The extent to which you answer these questions in the mind of your prospect will
determine the value you are creating.
(dream outcome)
People have deep, unchanging
desires.
Our goal is not to create desire. It’s simply to
channel that desire through our offer and monetization vehicle.
The dream outcome is the expression of the
feelings and experiences the prospect has envisioned in their mind.
It’s the gap between their current reality and their dreams.
Our goal is to accurately _________ ______ _______ back to them, so they ______ ________, and explain how our _________ _____ ______ ______ _________.
accurately depict that dream;
feel understood;
vehicle will get them there;
The dream outcome is simple; it’s
the “getting there” where the value gets enhanced or detracted.
Take the desire “to be perceived as beautiful” for example, here are a lot of things that touch on this desire:
Make Up
Anti-aging creams/serums
Supplements
Shapewear
Plastic Surgery
Fitness
→ All these vehicles channel the desire to be perceived as beautiful.
And if we further unpack the idea of a desire to be beautiful, we see that it may be a
surface-level declaration of a deeper desire to achieve higher status in one’s social group.
The dream outcome value driver is most prominently used when
comparing the relative value between two different desires being satisfied.
In general, the dream outcome that most directly
increases a prospect’s status will be the one they value most.
What will have your prospects drooling?
Talking in terms of things your prospect believes will increase their status
Pro Tip: In your copy, frame …
benefits in terms of status gained from the viewpoint of others
When writing copy, you can make it that much more powerful by talking about how
other people will perceive the prospect’s achievement. Connect the dots for them.
Example: If you buy this golf club, your drive will increase by 40 yards. Your golf buddies’ jaws will drop when they see your ball soar 40 yards past theirs . . . they’ll ask you what’s changed . . . only you will know.
when comparing two products or services that satisfy the same desire, the value from the dream outcomes will
cancel out (since they are the same).
It will be the other three variables that drive the difference in perceived value, and ultimately price
if we have two products or services that both help make someone beautiful, what will differentiate the perceived value of each offer?
likelihood of achievement, time delay, and effort required
if two things make someone beautiful, what makes one worth $50,000 and another $5?
Answer: The extent of the other three value variables.
What was the last of the variables Alex added when trying to think through this value equation framework?
Perceived Likelihood of Achievement
people pay for _____________
In other words,
certainty;
“How likely do I believe it is that I will achieve the result I am looking for if I make this purchase?”
we must communicate perceived likelihood of achievement through
our messaging, proof, what we choose to include or exclude in our offer, and our guarantees (more on these later).
______ ________ is the time between a client buying and receiving the promised benefit.
Time delay
The _________ ______ _________ between when they purchase and when they receive value/the outcome, the more ______ ______ __________ __ ________ __.
shorter the distance;
valuable your services or product is
There are two elements to this driver of value:
Long-term outcome and short-term experience
The thing people buy is the _______-_______ _____, ____ _______ “________ __________.” But the thing that makes them stay long enough to get it is ______ ______-________ ___________.
long-term value, aka their “dream outcome.”
the short-term experience.
These are little __________ a prospect sees along the way that shows them they are on ____ _______ ______.
milestones;
the right path
We try and tie as many of
these milestones as possible into any service we offer.
We want clients to have a big
emotional win early (as close as possible to their purchase).
This gives them the emotional
buy in and the momentum to “see it through” to their ultimate goal.
Pro Tip: Fast Wins
Always try and incorporate short-term, immediate wins for a client. Be creative.
They just need to know they are on the right path and that they made the right decision trusting you and your business.
People who experience a victory early on are
more likely to continue with something than those who do not.
The only thing that beats “free” is
fast
what’s our goal with a client’s perception of effort & sacrifice?
decrease it
what pain points do marketers often hit on?
the effort and sacrifice a client makes in their current situation or with a competitor
So even though the outcome is the same,
the value of the vehicles are dramatically different, hence the difference in price.
Decreasing the effort and sacrifice, or at least
the perceived effort and sacrifice, can massively boost the appeal of your offer.
In an ideal world, a prospect would want to
simply “say yes” and have their dream outcome happen with no more effort on their behalf.
Our goal as marketers and business owners is to
increase the value of the dream outcome and its perceived likelihood of achievement, while decreasing the time delay of achievement and the effort and sacrifice one has to put in to get there.
Example: Dream Outcome: “Relaxation,” “Decreased Anxiety,” “Feelings of well-being” Meditation vs Xanax
And you can either sit there and make “complain” posts about how people “ought” to be a certain way. Or you can
take advantage of the way people are and capitalize.
This book is for those people who want to be victors, not victims of circumstances.
you can be right or
you can be rich.
