How I got 700 people to pay me $40,000 each…no bs..
Summary
- Selling high-value packages is easier when you clearly communicate the immense return on investment you provide to your clients. For example, if you make someone $239,000, they won't hesitate to pay you $42,000.
- Hosting client events and large-scale employee meetings can highlight your business's scale and success, which can impress even skeptical family members who might question the value you provide.
- Value is challenging to define for entrepreneurs, but it's crucial to understand and articulate well. It determines how much clients are willing to pay for your service or product.
- The value equation has four components:
- Dream Outcome: Make sure the result you're promising is something that clients deeply desire. Align your services with their ultimate goals to increase perceived value.
- Perceived Likelihood of Achievement: Increase clients' belief that they will achieve the promised outcome. Use successful case studies and testimonials to boost their confidence.
- Time Delay: Decrease the time between purchase and delivery of the promised outcome. Speed is highly valuable to customers, and they'll pay more for faster results.
- Effort and Sacrifice: Minimize the effort and sacrifice required from your clients to achieve the desired outcome. The less they have to do or give up, the more valuable your offering is.
- Competing on speed can help you stand out even against free services. For instance, expedited DMV services are highly successful despite government services being free due to their efficiency and time-saving aspect.
- Pricing should reflect both the top and bottom sides of the value equation: Enhance the dream outcome and perceived likelihood of achievement while reducing time delay, effort, and sacrifice.
- Aiming to reduce effort and time to zero can make a product infinitely valuable. Consider how industry giants like Amazon and Netflix have successfully employed this strategy.
- Understand that even if you increase the perceived value by enhancing the dream outcome, you must also work on decreasing the bottom factors for a truly compelling offer.
- Differentiating between effort (what the client has to do) and sacrifice (what they have to give up) can inform how you structure your service to add value.
- Use the Value Equation as a tool to assess and improve your business offerings: It can lead to innovation and better customer satisfaction as you tailor your products and services to maximize value.
- Remember that the concepts of value and pricing are intertwined: A clear understanding and application of the value equation can help you justify higher prices and make sales easier.
- Lastly, always aim to facilitate others' success by providing the necessary tools without overextending on costs or relying on trendy internet courses. Your goal is to ensure entrepreneurs have what they need to thrive.
Video
How To Take Action
I would suggest implementing strategies to sell high-value packages by being very clear about the big results you can give your clients. If you can make someone a lot of money, they will be happy to pay you well. You can start by showing them stories of other people who did really well because of your help. That way, they'll believe they can do it too.
A good way of making your stuff look super valuable is by getting results for your clients fast. Everyone loves quick wins! So work hard on making things happen for your clients sooner rather than later. If you can give results on the same day or the next day, you're golden!
It's also smart to make it easy for your clients. The less they have to do, the better. Think about how you can take away their hard work or things they don't want to give up. If your service can save them time and effort, they will see it as really valuable.
Remember, when you price your stuff, you should think about how good the results are and how sure they can be that they'll get those results. And at the same time, make it as fast and as easy as possible for them.
Finally, always focus on helping others succeed. Give them the tools they need without making it too expensive. This way, you help them win and grow their business or personal skills without breaking the bank.
Quotes
"If you can get these bottom things down to zero… you have an infinitely valuable product"
– Alex Hormozi
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"The biggest companies decrease the downside of the equation"
– Alex Hormozi
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"If you ever compete against somebody who's free or giving away free stuff, compete with speed"
– Alex Hormozi
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"We want to increase the perceived likelihood of achievement and when you increase the dream outcome"
– Alex Hormozi
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"This is why a lot of marketers start promising bigger and bigger things"
– Alex Hormozi
