Give a 90% Discount, Not a 10% One — Transcript

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1. 0:00Many people still have terrible offers
2. 0:02and or terrible lead magnets.
3. 0:04So, I'm going to cover kind of like the
4. 0:05common troubleshooting that I go into
5. 0:08with people who have bad offers, bad
6. 0:10lead magnets, or both.
7. 0:12All right. So, let's just focus on the
8. 0:13offer side.
9. 0:15I forgot to put the little thing so that
10. 0:17it uh comes one at a time, so I
11. 0:18apologize.
12. 0:19So, these are these are all popping up
13. 0:21at once, okay?
14. 0:22So, let's imagine
15. 0:25that and this is actually probably the
16. 0:26most common thing. Like, this is
17. 0:28especially true with home services, but
18. 0:31if you are in an industry where it's
19. 0:32very difficult for other people to
20. 0:33compare your offer or very easy for
21. 0:35people to compare your offer to somebody
22. 0:36else's, you need to win on one of these
23. 0:38three vectors. You need to either be
24. 0:40faster than somebody else, you need to
25. 0:41be less risky than somebody else, or you
26. 0:43need to be easier.
27. 0:44Or multiple. But, you have to, from a
28. 0:46strategy perspective, you want to focus
29. 0:48on at least one of those three things.
30. 0:50And so, whether you're doing kitchen
31. 0:51remodeling, you're doing roofing, you're
32. 0:53doing concrete, it doesn't matter.
33. 0:55There's always a way to be faster.
34. 0:57There's always a reason to be to less to
35. 0:58be less risky. There's always a way to
36. 1:00make it easier for the customer. I
37. 1:01promise you there's always a way. Now,
38. 1:03then you might think, "Oh, but I can't
39. 1:05afford to do that." No That's why
40. 1:08you raise your prices to reflect this
41. 1:10premium because you're no longer
42. 1:11commoditized product.
43. 1:13And guess what? People will pay for it.
44. 1:17So, what I would encourage you to think
45. 1:18about your offer is, what would it take
46. 1:22for me to get this outcome for a
47. 1:24customer in 1/3 the time?
48. 1:27Like, actually answer that question.
49. 1:30This is why it's good to do this with
50. 1:31your teams. Like, what would it really
51. 1:33take? So, rather than saying we can't do
52. 1:34it or we can't afford to do it, answer
53. 1:37the damn question. What would it take?
54. 1:40Now, if it would take paying contractors
55. 1:4350% more to get them to do same day next
56. 1:45day responses for you, fine. Then, the
57. 1:49next question is, can we sell that to
58. 1:51customers? Now, if the answer is yes,
59. 1:54then ding ding ding, we have a winner.
60. 1:56Now, if the answer is no, then we just
61. 1:57go up market to rich people who
62. 1:59absolutely value speed, risk, and ease.
63. 2:03So,
64. 2:04if you need to improve the offer, one of
65. 2:06the first places I look is speed. Right?
66. 2:08What would it, you know, what would what
67. 2:10would it take for us to get to get it
68. 2:11all done in 1/3 of the time?
69. 2:13So,
70. 2:14I know, we're getting X-rated. Did I
71. 2:16talk about this? This is This is going
72. 2:17to be my launch of only Alex. I didn't I
73. 2:19didn't I didn't tell you guys that?
74. 2:21>> [snorts]
75. 2:22>> The next one is is risk, right? So, can
76. 2:26we insure
77. 2:27the biggest fear, or can we guarantee
78. 2:29against it? So, you can think about this
79. 2:31from a warranty's perspective, you can
80. 2:33think about it from a guarantee's
81. 2:34perspective, or one of my personal
82. 2:35favorites, cuz this is something that
83. 2:36I've implemented with plenty of
84. 2:37businesses, is you actually just get an
85. 2:40insurance policy on whatever their
86. 2:42biggest fear is, and then you say,
87. 2:44"Don't worry, we cover damages up to X
88. 2:48because we already have insurance for
89. 2:49it."
90. 2:51And you include that
91. 2:53into your cost, which typically is not
92. 2:55nearly as expensive as you think
93. 2:56as you think it would be.
94. 2:58So, that's the second vector that you
95. 3:00can consider from a from a from an
96. 3:01offer's angle.
97. 3:03And yes, I'll be here all night, and I
98. 3:05I've got even less underneath. Calm
99. 3:07down. Uh
100. 3:09So, the third
101. 3:11uh is ease. And so, the way to think
102. 3:13about ease is
103. 3:14how much can we kind of prepare the way
104. 3:16for the customer ahead of time? Like,
105. 3:18how can we prepare for them? Is there
106. 3:20anything we can do in the intake? Is
107. 3:21there anything we can do in the
108. 3:22onboarding? Can we do any kind of this
109. 3:23prep ahead of time so we can do pre-work
110. 3:25for them, so we can make their
111. 3:27experience that much more seamless? And
112. 3:28what's crazy is that so few businesses
113. 3:30think this way or do it that customers
114. 3:32will almost always appreciate and
115. 3:35recognize it when you do in your
116. 3:36business. Right? Like, this is this is a
117. 3:38this is a a soft toss, but for those of
118. 3:40you who have been out to L1
119. 3:42um or L3 or L2 for for in-person, many
120. 3:46of you can probably say like, "We take a
121. 3:47huge amount of care in making this an
122. 3:49exceptional experience for everyone, and
123. 3:50try to bring in as many of these tiny
124. 3:52little details as we possibly can.
125. 3:54So like when people know your name when
126. 3:56you walk in, they know about your
127. 3:56business. Like all that stuff takes work
128. 3:58on our side so we can make it a
129. 4:00delightful experience for you.
130. 4:03And so when we're thinking about the
131. 4:05offer, like I think about these value
132. 4:07vectors because these are the things
133. 4:08that are really going to drive the
134. 4:09business. And right now if you're like
135. 4:11I'm suffering because I'm a commodity,
136. 4:12this is how you solve it.
137. 4:14Now,
138. 4:15the fourth one here is now introduced
139. 4:16because we have money models book out.
140. 4:19But you can always just wrap what you
141. 4:20currently have in giveaways when you
142. 4:22money back decoy pay pay less now pay
143. 4:24more later buy x get y free. So you can
144. 4:26immediately take whatever it is that
145. 4:27you're selling and you're like man if I
146. 4:29could just get cheaper leads
147. 4:31then do one of the attraction offer
148. 4:32mechanisms.
149. 4:33Do a giveaway. Do a kitchen remodel
150. 4:35giveaway. And I promise you guess what?
151. 4:37You call everybody else who's in second
152. 4:39place
153. 4:40so who who who didn't win the grand
154. 4:42prize and offer them a second place
155. 4:43prize. Offer them a participation
156. 4:45trophy. Hey, here second place by the
157. 4:47way is $2,000 discount on your kitchen.
158. 4:50You won. Congrats.
159. 4:52Right?
160. 4:53And if something that's more service
161. 4:54based where they have to do stuff, win
162. 4:55your money back works awesome. If you
163. 4:57have a more transactional style
164. 4:58business, decoy works great. Buy x get y
165. 5:01free works in so many different versions
166. 5:02of this. The key with buy x get y free
167. 5:04by the way guys is you want to give away
168. 5:06more free than someone pays for and you
169. 5:08just adjust the price accordingly. So
170. 5:10let's say instead of let's say it's $100
171. 5:12a month for 12 months it'll be 1200
172. 5:14bucks. What you do is you do like buy
173. 5:15six get six or buy four get eight. It's
174. 5:19like a crazy deal but you just make the
175. 5:21four $300 each.
176. 5:24Just big tip.
177. 5:26Um
178. 5:27and you know, check with the legal
179. 5:28people in your area, all that stuff.
180. 5:30Okay, great.
181. 5:32Advertising laws differ by by county and
182. 5:33region and so check with your attorney
183. 5:35to make sure that things are advertising
184. 5:37compliant.
185. 5:38But these are the things that I would do
186. 5:39upfront to improve my offer.
187. 5:42Now,
188. 5:43this one is super common and let me see
189. 5:45if I include this in my examples. Yeah,
190. 5:47well
191. 5:48before I do. Okay.
192. 5:50>> [snorts]
193. 5:52>> We have a relatively large brand, right?
194. 5:55And you might think, "Oh,
195. 5:57uh if I
196. 5:59if I had Alex's brand, then I would be
197. 6:01able to just say like, "Hey, just give
198. 6:02me money."
199. 6:03Doesn't really work that way.
200. 6:04And so you might find this interesting.
201. 6:07Uh we run ads for our workshops, right?
202. 6:09That we have here in Vegas.
203. 6:10And we also run ads to the Scaling
204. 6:13Roadmap, which is a lead magnet that I
205. 6:15made.
206. 6:16Now, here's what's really interesting.
207. 6:18The direct to workshop ads have higher
208. 6:22ROAS
209. 6:23upfront. Which sounds kind of obvious.
210. 6:26Oh, when people come, say yes, I would
211. 6:29like to buy a workshop, and then we
212. 6:30offer them a workshop, more of them buy
213. 6:31it. Duh.
214. 6:33But what's more interesting to me is
215. 6:35that the Scaling Roadmap has higher ROAS
216. 6:37overall.
217. 6:39Ah.
218. 6:40When you expand out the time horizon.
219. 6:44And, and this is the part that people
220. 6:45miss, and it scales better.
221. 6:49So,
222. 6:50workshop is a very direct call to
223. 6:52action. And if I if I if I made my whole
224. 6:55business about saying, "Hey, come to a
225. 6:56workshop," it would be tough because I'm
226. 6:59only going to be offering the people
227. 7:00with the absolute warmest in my
228. 7:01audience, right? And so,
229. 7:03you guys, if you hopefully you went
230. 7:05through the Hooks and uh Hooks Playbook
231. 7:07and the Go-to-Ads Playbook, and if you
232. 7:08didn't, shame on you cuz you should. But
233. 7:10we talked about this with this uh
234. 7:12the the pillar the the advertising
235. 7:15stages of awareness, excuse me.
236. 7:18If I'm just saying, "Hey, buy a
237. 7:19workshop," I'm really only hitting these
238. 7:21two segments of the market, which are
239. 7:23not that big.
240. 7:25But if I'm if I'm going Scaling Roadmap,
241. 7:27I'm going to be able to get way more
242. 7:28people
243. 7:29up here than all of this put together,
244. 7:32right?
245. 7:33And so if I have higher ROAS here, and I
246. 7:35can reach more customers, it's by far
247. 7:38better front end.
248. 7:39Which is why I still It's so funny cuz I
249. 7:41hear people be like, "Lead magnets don't
250. 7:43work." It's just like it's small
251. 7:45businesses who say this.
252. 7:47Right? And small is relative. Maybe
253. 7:48Maybe the person you listen to is making
254. 7:50$5 million a year, whatever. But like
255. 7:53everything's relative here. And so, it's
256. 7:55not right or wrong. If you only are
257. 7:57trying to make a a small amount of
258. 7:59money, you for sure will get a higher
259. 8:00ROAS if you just say, "Hey, go buy my
260. 8:01stuff." Like there's no question about
261. 8:03that.
262. 8:04But if you want to get into huge higher
263. 8:06realms, you have to soften the ask and
264. 8:08make it more attractive for people to
265. 8:10take action. And then create the
266. 8:12conversion process around that. If you
267. 8:14have a better dream outcome match. So,
268. 8:17right now it's like my lead magnet is
269. 8:18just not First off, many of you don't
270. 8:20have these. You just straight up,
271. 8:22especially you home services guys. You
272. 8:24guys do this all the time. Right? Like
273. 8:25you're like, "I'm just running Google
274. 8:27Google Ads to my website." I'm like,
275. 8:28"Well, what's on your website?" They're
276. 8:29like, "Well, just my website." I'm like,
277. 8:31and then you look on it says request
278. 8:32quote. For the love of God, no one wants
279. 8:34to request a quote. All right? So, give
280. 8:37them something in exchange for their
281. 8:38contact information. And how do we make
282. 8:40it even more enticing? Give them
283. 8:41something they actually want. Give them
284. 8:43a better dream outcome. Describe it in
285. 8:45their own language of what they want.
286. 8:47Right? 11 frameworks we used to build
287. 8:49wildly profitable gyms. Helpful. Now,
288. 8:51there's three types of lead magnets.
289. 8:53You can reveal a problem.
290. 8:55You can do a trial of the solution.
291. 8:57Or you can do a one step of multi-step.
292. 8:59All right? This is a splinter offer. So,
293. 9:01reveal a problem. Seven mistakes
294. 9:03homeowners make when fixing their HVACs.
295. 9:05Very simple.
296. 9:06Right?
297. 9:07Trial solution. Hey, so actually had a a
298. 9:10really cool company come out
299. 9:12for an L3 uh last week. Um basically,
300. 9:14they had figured out how to get any
301. 9:16local business
302. 9:18onto number one, two, or three in local
303. 9:20maps. That was all they do. They just
304. 9:22get people on one, two, or three when
305. 9:23someone searches like, you know, gym
306. 9:25near me, one, two, or three local maps.
307. 9:27That's what they're they're able to do.
308. 9:29And so, their their whole lead magnet
309. 9:31is, "We'll just get you one, two, or
310. 9:32three for free, and then we'll call you
311. 9:35in 7 days and ask you if still want it.
312. 9:38It works great.
313. 9:39>> [laughter]
314. 9:40>> They're crushing it.
315. 9:42All right? Like if you can give a trial
316. 9:43to the solution, one of the most viable
317. 9:45ways to do it, super easy. You will get
318. 9:46a ton of leads for it.
319. 9:48Now, the third is the one-step or
320. 9:49multi-step. This is a splinter offer.
321. 9:51All right? So, I had a Cash Guys episode
322. 9:53where I had a lady named Ashley who did
323. 9:55fashion consulting. And so, she had a
324. 9:58requested quote type thing. Like, just
325. 9:59book a call with me for an assessment.
326. 10:01And so, okay. It's just like I don't I'd
327. 10:04rather have some sort of incentive to do
328. 10:06it. Right? And so, we came up with she's
329. 10:09going to figure out my my color palette.
330. 10:11Right? Like, what are the what are the
331. 10:12colors I should be wearing with my skin
332. 10:14tone, with my personality, with my
333. 10:15whatever, with my zodiac sign, who
334. 10:16cares? All right? But, the point is I'm
335. 10:18going to get some some sort of value
336. 10:20from this exchange. So, then I asked,
337. 10:21"Okay, how quickly can you automate it?"
338. 10:23And she's like, "Yeah, I can automate it
339. 10:24pretty quickly." So, I said, "Great. So,
340. 10:25that's what we can do." And when you do
341. 10:27a one-step or multi-step, everyone like
342. 10:29my pushback that I almost always get is
343. 10:32Well, everything I do comes together.
344. 10:35No, it doesn't. There are always pieces
345. 10:38that you do in a process.
346. 10:40Well, I I'm not going to fix someone's
347. 10:41door. It's like, well, you can fix part
348. 10:43of it. You can put a coat of paint on
349. 10:44it. You can put a sealant on before you
350. 10:46before before you There's always You can
351. 10:47just measure it. Like, you can There's
352. 10:49always some piece that you can pull out
353. 10:51and say, "I'll do this for free or for a
354. 10:53significant discount."
355. 10:55And so, let's think about it like this.
356. 10:58Let's say that you have an offer.
357. 11:00All right, let's see if I my drawing is
358. 11:01going to be
359. 11:03up to up to snuff here.
360. 11:09I have messed that one up. All right.
361. 11:12There we go. Let's
362. 11:13Oh, I almost had it. I just messed it
363. 11:15up. Okay. So, we've got this this this
364. 11:17offer that has A, B, C, D. We got four
365. 11:20components to our offer, right?
366. 11:22And let's say you currently sell this
367. 11:24for $2,000.
368. 11:28It's often more powerful for you to have
369. 11:31just take this guy
370. 11:33move it over here
371. 11:35and have
372. 11:42be over here
373. 11:44that's gone and then give this away for
374. 11:4790% off
375. 11:51or
376. 11:53free.
377. 11:59And then once someone has this, they
378. 12:01then want to buy ACD.
379. 12:04That's how that works.
380. 12:06And so there's almost always a version
381. 12:07of this that can get someone in the
382. 12:09door. And this is also how you can make
383. 12:11what I prefer to have, which is insane
384. 12:13discounts. Not like I hate the idea of a
385. 12:1510 or 20% discount. There's no point,
386. 12:17right? I want to have crazy discounts
387. 12:19because I want I want a discount to be
388. 12:20significant enough that it changes
389. 12:21someone's behavior. And so a 90 or 80%
390. 12:24discount, that will change people's
391. 12:25behavior. And the reason I do that is I
392. 12:27can just pull it off on something that
393. 12:28cost me very little
394. 12:29so that I could then create my upsell
395. 12:31process into my main thing. This will
396. 12:33help you get cheaper leads.
397. 12:37So many of you right now, your offer
398. 12:40sucks, which is why you can't get cheap
399. 12:42leads for whatever business or market
400. 12:44you're in. You don't promise anything
401. 12:46around speed, you don't promise anything
402. 12:47around ease, you don't do anything to
403. 12:49reverse risk, and you don't have to do
404. 12:50all three, to be clear. Just focus on
405. 12:53one and hammer it and do it really well.
406. 12:55And preceding your offer
407. 12:58you just don't have anything and you
408. 12:59don't give people a good reason
409. 13:01to engage in your ads and actually give
410. 13:03you their contact information. So, make
411. 13:06something that's really compelling. My
412. 13:07personal favorite way of giving lead
413. 13:09magnets is give something that people
414. 13:10other people charge for. The the more
415. 13:12real the lead magnet is, the more that
416. 13:14it actually has true cost the more
417. 13:16likely it is that it work.