The Offer Is King

        Hello everyone and welcome back to I guess my show. So anyways, um I guess you could call it show, I don't know, thoughts. Anyways, so um I wanted to make something. So this is called the offer is king. Um and that's because the offer is king. So if you have a good enough offer, you don't have to sell hard. You don't have to have amazing copy or amazing creative. Um you just get a lot of people uh to sign up for your thing. And so if you really think about your business, most businesses should be founded on a core offer that is exceptional, right? An irresistible offer. That is what it's going to grow the business, right? And so what I want to walk you through is uh three really good offers, uh the three components of those offers, and then seven ways to ethically use free. So um we're going to cover a lot of ground really fast. So, um, three of the greatest offers of all time were Domino's offer. Some of you guys may remember this, but it was, um, uh, delivered to your door in 30 minutes or it's free, right? That's an irresistible offer. And they had pizza. But because of that, people wanted to make the order. They didn't have to sell them on it. They saw the offer and when they were hungry, they were like, "Shoot, in 30 minutes, I can do that. I can have pizza at my door." And sometimes it's almost gamification. It's almost a challenge that's like, "Well, if it's not in 30 minutes, I get the pizza free." So um it's it was something that was incredibly compelling and it was one of the fundamental uh keys to their growth and why back in the days of yellow pages it was literally an entire section was pizza. No other restaurant had a food category of pizza. Everything else is just restaurants, right? So um any that was because of that one key irresistible offer. All right. The next was uh 10 CDs for a penny, right? And this was from I think it was Sony way back in the day. Um now obviously it came with continuity and so that was kind of like the first trial offer. Um, but that offer is one of the single greatest offers of all time for those who are old enough to remember it. The third offer, uh, you may recognize, uh, which is when it absolutely has to get there by tomorrow morning, and that is FedEx. So, you'll notice the first two kind of have a pricing component. FedEx does not, but it has a really high value component to it. So, I just want to break down these things into uh, three pieces. Each offer has a component of believability, right? Uh there's a famous marketer who said, "Uh, for every dollar you give me, I'll give you $1,000 back." He ran an ad in the paper and he got zero responses, right? That is a crazy offer, but it's so good that it's not believable. And literally no one responded to the ad, right? And so, one of the things that makes offers believable is having a reason why that you would do this, right? If you're like, "Hey, I'm, you know, I'm dropping all my prices by half off because I uh all my inventory is going to go bad." People believe that. They're like, "Okay." or like I'm overstocked and I got to make room for, you know, new new inventory. Everything's half off. People believe that. It's a good reason why, right? So, believability is number one. Number two is a high ROI offer. So, basically, um an offer that people deem valuable uh that can be communicated in a couple of words like guarantee to your door in 30 under 30 minutes. That was valuable. For FedEx, it was at, you know, delivered to wherever you need to be or wherever it needs to go by next morning. That is valuable, right? you can give offers, but if people don't find it valuable, it's not going to matter, right? And so, um, the third piece is kind of the the business around it, right? And so, that's kind of what I want to cover with, uh, free offers, because you'll notice the penny offers basically free. Uh, the Domino's pizza offer has a free component to it. And so, understanding how to use free as a marketer is probably, in my opinion, the single most valuable thing, um, that you can learn how to do. It's learning how to build a better mousetrap. And so, um, right now I'm working on a book called Acquire, uh, and the subtext is building a better mousetrap, uh, which is just kind of like how to structure offers in a way that you can get tons of volume, but also make money on the offers, right? And so, this is, uh, you know, my notes for the different ways that you can use free offers. And I think I have seven on here, so I'll walk you through them pretty quickly, um, to just kind of explain them. So, the benefit of having free offers is that you get the highest volume of leads, right? Uh, number one. Number two, it's it's typically the lowest cost to acquire customers. So that's number two. And the third is that in my opinion, um the key to having massive growth is to having a free offer, right? And especially something that's irresistible that can spread through word of mouth that other people can comprehend. All right? So first of the free offers is a free bribe offer, right? So this is where you offer a so when someone comes in, you offer a program for free as a benefit for signing up, right? So Frank Kern way back in the day did a uh he had all of his courses that he'd ever made. So, high value offer, probably $12,000 in value. He said, "I'll give you all of the courses that I've ever made absolutely free if you sign up for my $397 a month continuity, right, in my newsletter or whatever." Right? So, that's a free bribe offer. So, you can use the word free, brings lots of attention, has huge value and ROI, but it was a free with purchase, right? So, that's kind of the idea is like if you buy this much smaller thing, you get this huge value thing for free, and it's also a really nice price anchor. Okay? So, that's number one. If you're doing the fitness thing, it's like, hey, our six week challenge is $1,000, or you can just sign up to become a member and get our $1,000 challenge for free and only become a member for $200 a month, right? That becomes a really compelling offer. Lots of people say yes, and you get people straight into continuity. All right. The second is a limited free offer. A limited free offer is, let's say, uh, this is an AB close. When someone walks in the door, um, obviously the vast majority of the people listening to this are gym owners, so I'm going to just make it gym specific. So, if someone's coming in, you say, "Okay, the free thing, let's say, uh, you sign up for a 14-day or let's say a 28 day. You sign, you come in for 28 day promotion." Uh, the free thing uh has one, you know, you could say 28 day trial. They come in, it's one day a week of workouts. You have no personalized nutrition, no nutri, no accountability coach. Right? Now, during the sales process, they'll have already said they're not motivated, they need help, blah blah blah. [clears throat] And so then you upsell, right, as American as Apple Pie, a 28 day challenge or 28 day intensive or whatever you want to call it, accelerator, where they uh they pay $1.99 or $2.99 or whatever for the enhanced version that has three workouts a week or unlimited workouts and personalized nutrition and an accountability coach. And if they don't uh, you know, lose 10 pounds in the first 28 days, you give them another 28 days free, right? So you have an upsell from an initial offer that makes it incredibly compelling, right? That's the point. So they get all this volume for free, but then you can still upsell three out of four people into a paid offer. All right, so that's how you use free and you can monetize it. The third way of using free is a free trial plus penalty. So this would be a downell. So these can be used in in conjunction with one another. So if someone uh doesn't take that that you know the AB close that I just mentioned, you can say awesome. If you're going to stay, then you have to put a card down because you want to be held accountable. You have to work out this many times. If you miss your workouts, we're going to charge you for the missed workouts and you have to attend the, you know, a feedback session and a transformation picture session and a nutrition session, right? If you no show any of those, it's 50 bucks. And so, they have a huge motivator to actually consume your product or service. So, the likely they convert on the back end is significantly higher, right? That's the point. And so, that way, at least your trials become more qualified trials. They're more invested. And it's a really easy close to close someone on on a free trial. If you can't close free trials, then you have other issues. Okay. Um the fourth one is a free with deposit. So this is a classic. Um the old sixe challenge that we ran for a very very very long time. It was probably the most popular fitness offer in the last decade. Um was a free sixe challenge. Obviously you always have to be compliant. Put stipulations for any types of things things on your advertisements. Um states differ etc. Um, but that's where if someone hits a goal, they do an outcome, um, they can get their money back or get it credited towards something. So, it's like it's free with a contingency. So, it's like you put X dollars down, uh, if you do X, Y, and Z, you can either get it back or you can get it towards program, whatever. Right? That's kind of the pitch there. So, it's a free with deposit. So, free with stipulations. All right. The uh the the fifth uh way of doing free is free forever. And this is a really compelling offer. So this is where you have to really know how your mousetrap works, right? So if you have multiple ways of monetizing a customer, I could say, for example, I will train you for free, for legitimate free, like I will give you free training straight up. Your membership is free forever, right? Um as long as you just do the things that I tell you to do, which may include buying supplements from us. That's part of the program. Now, um, a good friend of mine owned a, uh, a chain of, uh, she had a franchise of, uh, weight loss clinics, and they made only like 5% of the revenue on service, and they made 95% of the revenue on supplements. And so people would come in, and they'd essentially give the the service away for free. Uh, but they were required to use the supplements as a part of it. So that's a free 100% free, but you're you're you're bolting on a a different revenue stream. So, that's where you can offer multiple services and monetize a different service than the one you're giving away for free, right? Um, and especially if you have something that's uh high margin, uh you can give that away for free. If something's high margin and low value, uh it's an easy thing that you can give away for free and then give something else away that's higher perceived value or make them buy something that's higher perceived value. People tend to um appreciate physical products more than they appreciate service or value service. All right. So, that's kind of a free forever model, which is really understanding that how you can monetize the second need, the next thing they're going to need after the first thing. All right. The sixth way is a a free giveaway. Uh this is a a classic, you know, you run a you run a a free giveaway. Let's say meals for a month, right? I'll pay for all your food for a month. I'll pay for your whatever, right? Um and so you get tons of people are going to opt in for that. and you say like well we you know we picked one person but if you still do the program it's this and we'll give you a discount since you you know signed up you know signed up to be a part of it. So the thing is is when you have this people are still raising their hand to demonstrate they have a need for the service right um and so if you have a giveaway that's perceived as high value and something that's related to the core offer that you have you instantly get tons of very cheap uh leads that are qualified for the service. All right. Um, a good friend of mine uh just started running a $25,000 transformation challenge and he's getting people to buy without even doing phone calls um straight on the page cuz it's a $25,000 challenge and it's like 300 bucks to sign up online. So, people are seeing the huge giveaway and then are choosing to participate um to have the have the have the chance to earn that. Right now, obviously with giveaways and things like that, you always have to make sure you're not gambling, all that kind of stuff. Um but I'm just talking big highle marketing. All right. Um, the next and probably last one of these seven, um, there's probably more. These are just the ones I thought off the top of my head. Um, is a free with free with commitment. So, not contingency, but commitment. So, that's where you say, uh, your first 28 days or your first month is free. Um, as long as you commit to a nine-month contract or you commit to a whatever, right? And so, when you do that, you can still market free. Um, you still you'd have to again put the contingencies in. You want to be a compliant advertiser. Um, but that way you can still give people free on the front end. It makes the sale very easy. Puts a little bit more of the onus on the fulfillment. Um, but if you get the commitment, which you should, um, then you will be able to convert a very high percentage to people on the front end. And typically at higher average contract values because they're not confirming that price on the front end, uh, it's more like perceived value on the back end and they're kind of sort of going to see how it goes, right? Um, now that being said, during the process, you still need to sell the people even if you're not closing them. So even if someone has their call on file and it's planning on rebilling, you still need to sell them on staying. So just a big mistake that I see happen all the time is that when people give trials and things like that, they're not actually they just sell the trial rather than selling the continuity. Selling someone on trials, it's just selling them on trying it. You have to still sell them again. Even if they're on, you know, auto bill or whatever because the thing is is, you know, 30% of the people who go through are going to immediately call you up and say, "Oh, no. I didn't mean to let that go through." And then you have chargebacks and all sorts of crap. So you don't want that. Make sure they know they're going to get build. And if it were me, I'd probably only bill the people that um I knew had been sold and had kind of at least verbally agreed to it. We already have the contract, but at least I know that they're in. So, um those are seven ways to make free offers to get uh lots of people in the door and make irresistible offers that will ultimately make you more money. So, learning how to monetize free is one of the biggest uh tools in your skill set uh in your toolbox. And if you don't know how to do it, you will be a significant disadvantage because your competitors will be um and they can acquire more customers at a cheaper price than you do. And if they can monetize them in the ways that I just outlined, um and you just know the metrics, you know what percentage uh convert, what percentage stay, what the average ticket is, and that's why knowing the math is so important. But if you know those metrics, then you you can market with reckless abandon because you know what your LTV is um and you know that you can win based on those numbers. So anyways, I hope that was valuable for you. uh the offer is absolutely king. Like if you get the offer right, someone should be able to explain to someone else in like one sentence or two sentences what it is that the offer is. If if you can't explain it like that, then it is not clear enough to a prospect. And if you get the offer right, it will make you more money than you know what to do with. All right, so anyways, uh hope you guys have an amazing Tuesday. Uh keep rocking and rolling and I'll catch you guys soon. 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