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designates my notes. / designates important. / designates very important.

Thoughts

My initial thoughts as I read the PRICING section are that this is bullshit. I don’t mean he didn’t do it. I don’t mean he can’t do it again. What I do mean is that with 300k impressions he somehow gets 2.5 more response and conversion. I don’t care about how great he is; show me the secret sauce of your ads.

Target a deeper and deeper niche and charge more for “customized” products that are really barely reskinned versions of cheaper products.

After I made it further into the book, I was pleasantly surprised by the much more concrete examples and explanations.

Table of Contents

SECTION I: HOW WE GOT HERE

• 01: How We Got Here
• 02: Grand Slam Offers

SECTION II: PRICING

• 03: Pricing: The Commodity Problem
• 04: Pricing: Finding the Right Market -- A Starving Crowd
• 05: Pricing: Charge What it’s Worth

SECTION III: VALUE - CREATE YOUR OFFER

• 06: Value Offer: The Value Equation
• 07: Free Goodwill
• 08: Value Offer: The Thought Process
• 09: Value Offer: Creating Your Grand Slam Offer Part 1
• 10: Value Offer: Creating Your Grand Slam Offer Part 2

SECTION IV: ENHANCING YOUR OFFER

• 11: Scarcity, Urgency, Bonuses, Guarantees, and Naming
• 12: Scarcity
• 13: Urgency
• 14: Bonuses
• 15: Guarantees
• 16: Naming

SECTION V: EXECUTION

SECTION I: HOW WE GOT HERE

· Chapter 1 - How We Got Here

· Chapter 2 - Grand Slam Offers

page 024:

• “Make people an offer so good they would feel stupid saying no.” - Travis Jones

page 026:

• In a nutshell, the offer is the goods and services you agree to give or provide, how you accept payment, and the terms of the agreement. It is what begins the process of getting customers and making money.

page 027:

• As Dr Burgelman, a famous Stanford business school professor said, it is far better to have understood why you failed than to be ignorant of why you succeeded.

SECTION II: PRICING

· Chapter 3 - Pricing: The Commodity Problem

page 042:

• Grand Slam Offer: Pay one time. (No recurring fee. No retainer.) Just cover ad spend. I’ll generate leads and work your leads for you. And only pay me if people show up. And I’ll guarantee you get 20 people in your first month, or you get your next month free. I’ll also provide all the best practices from the other businesses like yours.

  • Daily sales coaching for your staff
  • Tested scripts
  • Tested price points and offers to swipe and deploy
  • Sales recordings
  • …and everything else you need to sell and fulfill your customers. I’ll give you the entire play book for (insert industry), absolutely free just for becoming a client.

• How much does all this cost? How many people are needed? How long did it take to get it right? Are we going to see the secret sauce?

• In a nutshell, I’m feeding people into your business, showing you, exactly, how to sell them so that you can get the highest prices, which means that you make the most money possible . . . sound fair enough?

• It’s clear these are drastically different offers… but so what? Where’s the money!? Let’s compare both in the below chart.

• I don’t see how they are “drastically” different. The pricing is different and his grand slam produces more responses/conversions, but has the same number of impressions.

page 043:

· Chapter 4 - Pricing: Finding the Right Market – A Starving Crowd

page 049:

• I have a saying I use to train sales teams “The pain is the pitch.” If you can articulate the pain a prospect is feeling accurately, they will almost always buy what you are offering.

page 050:

• The point of good writing is for the reader to understand.

• The point of good persuasion is for the prospect to feel understood.

page 051:

• There are three main markets that will always exist: Health, Wealth, and Relationships. The reason that those will always exist is that there is always tremendous pain when you lack them. There is always demand for solutions to these core human pains.

• The goal is to find a smaller subgroup within one of those larger buckets that is growing, has the buying power, and is easy to target (the other three variables).

page 054:

• For most, if you are under $10M per year, niching down will make you more money. After that, it will depend on how narrow the niche is, or, what is called TAM (total addressable market). A business can really only grow to meet the total addressable market. That being said, for most people, getting to $10M per year is already a top .4% achievement (only 1 in 250 businesses achieve this). So for 99.6 percent of readers below $10M per year, it’s almost always easier to serve fewer clients more narrowly. But if you want to go beyond that, you may (depending on the size of your TAM) have to broaden your audience by going up market, down market, or into an adjacent market where your existing services can provide value.

• For context, many companies expanded to $30M+ per year serving a single niche: Chiropractors, Gyms, Plumbers, Solar, Roofers, Salon Owners, etc. If you are at $1M or $3M, thinking you have capped and must expand, you are wrong. You just need to be better.

page 055:

• Niching Product Pricing Example:

page 056:

• The actual pieces of the program may be the same as the generic $19 course, but since they have been applied, and the sales messaging could speak so much to this avatar, they will find it more compelling and get more value from it in a real way. This concept applies to anything you decide to do. You want to be ‘the guy’ who services ‘this type of person’ or solves ‘this type of problem.’ And even more niched ‘I solve this type of problem for this specific type of person in this unique counter-intuitive way that reverses their deepest fear.”

· Chapter 5 - Pricing: Charge What it’s Worth

page 066:

• In a blind taste test, researchers asked consumers to rate three wines: a low- priced wine, a medium-priced wine and an expensive wine. Throughout the study, the participants rated the wines with the prices visible. They rated them, unsurprisingly, in order of their price, with the most expensive being the “best,” the second most expensive being “second best,” and the third, cheapest option, being rated as “cheap wine.”

• What the tasters didn’t know is that the researchers gave them the exact same wine all three times. Yet, the tasters reported a wide discrepancy between the “high priced” wine and the “cheap” wine. This has deep implications for the direct relationship between value and price.

• In essence, raising your prices can directly enhance the value you provide. What’s more, the higher the price, the more allure your product or service has. People want to buy expensive things. They just need a reason. And the goal isn’t just to be slightly above the market price — the goal 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.”

SECTION III: VALUE - CREATE YOUR OFFER

· Chapter 6 - Value Offer: The Value Equation

page 078:

• “Any fool can sell a product by offering it for a discount, it takes great marketing to sell the same product for a premium”

• Logical solution: make trains faster to increase satisfaction

• Psychological solution: decrease the pain of waiting by adding a dotted map

• Psychological solution: pay models to be the hostesses on the trip (people would wish it took longer to get to their destination!)

• Logical solution: make elevator faster

• Psychological solution: add floor to ceiling mirrors so people are distracted staring at themselves and forget how long they were on the elevator

• Logical solution: make it cheaper

• Psychological solution: make fewer of them and raise the price which causes people to want it more.

• Often, most logical solutions have been tried and failed. At this point in history, we must give the psychological solutions a shot to solve problems.

· Chapter 7 - Free Goodwill

This was an ask to review the book and/or pass it along as a recommendation to someone you know. I think this was actually a pretty slick way to market the book.

· Chapter 8 - Value Offer: The Thought Process

· Chapter 9 - Value Offer: Creating Your Grand Slam Offer PART I: PROBLEMS & SOLUTIONS

page 096:

• I had heard of weight loss challenges, so I started there.

  • Lose 20lbs in 6 weeks.
  • Big dream outcome - lose 20lbs.
  • With a decreased time delay - 6 weeks.

• Note: I wasn’t selling my membership anymore. I wasn’t selling the plane flight. I was selling the vacation. When you are thinking about your dream outcome, it has to be them arriving at their destination and what they would like to experience.

page 097:

• Next, I wrote down all the things people struggled with and their limiting thoughts around them. When listing out problems, think about what happens immediately before and immediately after someone uses your product/service.

page 099:

• Now we get to the fun part: turning problems into solutions.

· Chapter 10 - Value Offer: Creating Your Grand Slam Offer PART II: TRIM & STACK

page 111:

• 10x to 1/10th test. If my customers paid me 10x my price (or $100,000) what would I provide? If they paid me 1/10th the price and I had to make my product more valuable than it already is, how would I do that? How could I still make them successful for 1/10th price? Stretch your mind in either direction and you’ll come up with widely different solutions.

• Let’s sum this up before we configure our final high value deliverable.

• Step #1: We figured out our prospective client’s dream outcome.

• Step #2: We listed out all the obstacles they’re likely to encounter on their way (our opportunities for value).

• Step #3: We listed all those obstacles as solutions.

• Step #4: We figured out all the different ways we could deliver those solutions.

• Step #5 a: We trimmed those ways down to only the things that were the highest value and lowest cost to us. All we have to do now is…

• Step #5 b: Put all the bundles together into the ultimate high value deliverable.

SECTION IV: ENHANCING YOUR OFFER

· Chapter 11 - Scarcity, Urgency, Bonuses, Guarantees, and Naming

page 126:

• if we seek to increase the demand (or desire), we must decrease or delay satisfying the desires of our prospects. We must sell fewer units than we otherwise can. Let that sit with you for a second.

• Consider this example. We promote some two-day workshop that is upcoming. First we whisper that it’s coming. Then we tease it with some of the benefits. Then we shout that it is launching in a week. Then, when we launch this amazing workshop. We have two supply-demand scenarios:

• Scenario one: We sell 10 units at $500 each (sell entire pyramid at price all say yes)

• Scenario two: We sell two one-day workshops 1-on-1 for $5000 each. (skim top of pyramid, with 80 percent not purchasing)

· Chapter 12 - Scarcity

page 134:

• The person who needs the exchange less always has the upper hand.

page 135:

• Three Types of Scarcity
  1. Limited Supply of Seats/Slots: in general or over X period of time.
  2. Limited Supply of Bonuses
  3. Never available again.

page 137:

• Let me give you a real example of scarcity to enhance the value of a free lead magnet. If I were to tell you right now that I have a checklist that you can download for free that has all these materials for you in this book in bulleted format, you might be inclined to put this book down and go there to download it now.

• But, if I told you I have it set so that every week the page only allows twenty new people to download it, you’d be far more likely to go see if you can grab it. And even more so if when you try it, you see that it has already run out for the week. Result? You join a list that notifies you the next time twenty more checklists become available for download. What happens next? When you get that notification, you’ll hit the link on your phone and go to the page because you don’t want to miss out again.

page 138:

• By employing scarcity, we make what would otherwise be a “neat free download” into a desirable thing not everyone has access to. You also, by extension, would be far more likely to consume it when you do get your hands on it . . . all because of how we controlled supply. Cool, right?

• Employ one or multiple methods of scarcity in your business. You will drive a faster purchasing decision from your prospects, and at higher prices. Just let them know your limits and let psychology do the rest.

· Chapter 13 - Urgency

• Limited time offers. Limit on number of clients you will take (maybe forever, maybe per time period).

· Chapter 14 - Bonuses

page 147:

• a single offer is less valuable than the same offer broken into its component parts and stacked as bonuses

page 148:

• Whenever trying to close a deal, never discount the main offer. It teaches your customers that your prices are negotiable (which is terrible). Adding bonuses to increase value to close the deal is far superior to cutting prices. It puts you in a position of strength and goodwill rather than weakness.

· Chapter 15 - Guarantees

page 156:

• From an overarching perspective there are four types of guarantees:
  1. Unconditional
  2. Conditional
  3. Anti-Guarantee
  4. Implied Guarantees

page 158:

• Bad Example: We will get you 20 clients guaranteed.

• Better example: You will get 20 clients in your first 30 days, or we give you your money back + your advertising dollars spent with us.

page 160:

• “I’m not asking you to decide yes or no today…I’m asking you to make a fully informed decision, that is all. The only way you can make a fully informed decision is on the inside, not the outside. So you get on the inside and see if everything we say on this webinar is true and valuable to you. Then, if it is, that’s when you decide to keep it. If it’s not for you, no hard feelings. You will then, after signing up at URL be able to make a fully informed decision that this isn’t for you. But you can’t make this decision right now for the same reason you don’t buy a house without first looking at the inside of it. And know this…whether it’s 29 min or 29 days from now…if you ain’t happy, I ain’t happy. For any reason whatsoever, if you want your money back you can get it because I only want to keep your money if you’re happy. All you have to do is go to support@xyz.com and tell use “gimme my money” and you got it, and in short order - our response times to any support request average 61min over a 24/7 time period. You can only make such a guarantee when you’re confident that what you have is the real deal and I’m fairly confident that when you sign up at URL you’re getting exactly what you need to BENEFIT.”

page 167:

• Anti-guarantees (all sales final) can also work very well with high ticket products and services that require a lot of work or customization.

page 168:

• Performance, Revshare, and Profit-shares aren’t guarantees “per se”, but for all intents and purposes, they are. There is an implied guarantee whenever you enter into a revshare or performance partnership: if you dont make money, you don’t have to pay me. In my opinion, this is one of, if not THE most desirable setup. First because it makes you accountable to your clients’ results. Second it weeds out low performers. Perfect alignment between client and service provider fosters collaboration and a long-term relationship. I’m a big fan. The drawbacks are tracking and collection.

· Chapter 16: Naming

page 172:

• Say you see a “Free Six-Week Stress Release Challenge” and a “Float Tank Center Session.” While they may be the same thing, just named differently, you’re much more likely to respond to the first.

• Important Note: Not all these components are mandatory. You will typically use three to five of them in naming a program or service. If you can fit them all in, great, but it’s likely the name will become too long. The shorter and punchier the better. So it’s a balance between brevity and specificity.

• If you like understanding the concepts behind my chosen M-A-G-I-C formula. Each roughly translates to: Attention (M-Magnet), Discrimination (A-Avatar), Purpose (G-Goal), Timeline (I-Interval), and Method (C-Container).

• We start the name with a word or phrase that tells people the “reason why” we are running our promotion. I like to tell people to think like a fraternity party planner. When I was in college, we had a party once because a guy got his wisdom teeth removed. I say this to say. . .the “reason why” can literally be anything.

• It really doesn’t matter so long as you believe it. And you can even make a joke of it like the fraternity example. But this should answer one or both of the following questions: Why are they making this great offer? or Why should I respond to this offer?/What’s in it for me?

• This component calls out your ideal avatar: who you are looking for and who you are not looking for as a client. You want to be as specific as possible, but no more. When in a local area, the more local you can make your headline, the more it will convert. So don’t do a city, try and go to the sub market, or hyper local area. Not Baltimore but Towson, MD. Not Chicago, but Hinsdale, Etc.

page 176:

• Complete With A Container Word The container word denotes that this offer is a bundle of lots of things put together. It’s a system. It’s something that can’t be held up to a commoditized alternative.

• Examples: Challenge, Blueprint, Bootcamp, Intensive, Incubator, Masterclass, Program, Detox, Experience, Summit, Accelerator, Fast Track, Shortcut, Sprint, Launch, Slingshot, Catapult, Explosion, System, Getaway, Meetup, Transformation, Mastermind, Launch, Game Plan, Deep Dive, Workshop, Comeback, Rebirth, Attack, Assault, Reset, Solution, Hack, Cheatcode, Liftoff, Etc.

• Pro Tip: Find Time To Rhyme

• Good rhymes stick in people’s minds. Rhyme your program name to win the game. Google “rhyming dictionary” for an easy shortcut. Note - Don’t try and force it. It’s not a requirement, it’s just a “nice-to-have”.

• Ex: Six-Pack Fast Track, 5-Day Book Print Sprint, Marriage Thrive Deep Dive, 12-Week 2-Putt Shortcut, 12-Month No-Debt Reset, Celebrity Butt Shortcut, Get Some Ass Masterclass (just thought it was funny), etc. You get the idea.

• Pro Tip: Alliteration

• Alliteration is when you make all (or most) of the words start with the same letter or sound.

• An alternative approach to rhyming is to use alliteration when naming your program. This is easier for most people than rhyming. Again, you do not need to rhyme or alliterate. Don’t force it.

• Ex: Make Money Masterclass, Change Your Life Challenge, Big Booty Bootcamp, Debt Detox, Real Estate Reset, Life Coach Liftoff, Etc.

page 177:

• Wellness

  • Free Six-Week Lean-By-Halloween Challenge
  • 88% Off 12-Week Bikini Blueprint
  • Free 21-Day Mommy Makeover
  • 60-minute Make Your Friends Jealous Model Hair System
  • Six-Week Stress-Release Challenge
  • (Free!) Bend Over Pain Free in 42 Days . . . Healing Fast Track

• Doctors

  • $2,000-Off Celebrity Smile Transformation
  • Lakeway Moms - $1,500 Off Your Kids Braces
  • Lakeway Moms - 12 Months To A Perfect Smile ($1000 off for 15 families)
  • Back to School Free Braces Giveaway
  • Grand Opening Free X-Ray & Treatment - Instant Relief
  • Back Sore No More! 90 Day Rapid Healing Intensive (81% off!)
  • Tightness? $1 Massage New Client Summer Special

• Coaching

  • 5 Clients in 5 Days Blueprint
  • 7F Agency 12 Week Intensive
  • 14 Day Find Your Perfect Product Launch
  • Fill Your Gym in 30 Days (Free!)

page 178:

• Again, you don’t necessarily have to use all the power components of the headline. Using three to five will typically create something that is more unique and desirable

• As you market offers, you will need to create variations over time as the tastes of the market change over time. Here’s the order in which you will change things to keep lead flow consistent.

  1. Change the creative (the images and pictures in your ads)
  2. Change the body copy in your ads
  3. Change the headline - the “wrapper” of your offer
  4. Free 6 Week Lean Challenge to Free 6 Week Tone Challenge
  5. Holiday Hangover to New Year New You
  6. Change the duration of your offer
  7. Change the enhancer of your offer (your free/discount component)
  8. Change the monetization structure, the series of offers you give prospects, and the price points associated with them (Book II)

page 179:

• I follow this variation framework because most of the time it’s the first handful of items that need to be changed. Typically, they need to be changed again and again without touching anything on the bottom of the list.

• Once you’ve monetized an offer, rarely should you change it. Just rinse and repeat over and over and over again. This can be hard because we are entrepreneurs and love change. Change here usually just creates inefficiency and operational drag, costing you money.

page 180:

• Ironically, local business marketing is both easier and harder than national level marketing. It’s easier to get to work, but harder to keep working or scale. And the reason is - in local markets, it’s easier because there’ is trust in the familiar. So selling in- person at higher prices in a local market is inherently easier. It means you will convert a much higher percentage of your leads. This makes marketing work most of the time.

• The downside of local marketing is that offers fatigue rapidly because there is only a limited radius that a local business can serve. To reference an earlier concept, the TAM (total addressable market) for a brick & mortar is only its immediate radius (most times). So by extension, the smaller the radius, the faster offers fatigue. This is the double-edged sword of local.

• Learning to rapidly variate my offers, headlines, and creative when I had my local businesses was a cornerstone skill that made my expansion to national level advertising much easier for me. So if you are in a local market, just remember you aren’t going to change the value stack of your offer. You are just going to change the way it looks to the marketplace in your marketing.

SECTION V: EXECUTION

• “The first $100,000 is a bitch, but you gotta do it. I don’t care what you have to do—if it means walking everywhere and not eating anything that wasn’t purchased with a coupon, find a way to get your hands on $100,000. After that, you can ease off the gas a little bit.”

• CHARLIE MUNGER, VICE CHAIRMAN BERKSHIRE HATHAWAY