Daniel's notes on $100m Offers

grow or die. if a company isn’t growing, it’s dying. maintenance is a myth. The market is continuously growing. The stock market grows at 9 percent per year. If we aren't growing at 9 percent per year, we are falling behind. "Maintenance," in the most generic sense, would be 9 percent growth year over year. Furthermore, if you're in a growing marketplace, then you might have to grow at 20-30 percent per year, just to keep up, or risk falling behind. So you can see how maintenance is a myth.

Gross Profit: The revenue minus the direct cost of servicing an ADDITIONAL customer. If I sell lotion for $10 and it costs me $2, my gross profit is $8 or 80 percent. Net profit: Net profit is what's left over after all expenses are paid, not just the direct costs of fulfillment.

CLV, LTV or Customer Lifetime Value: The gross profit accrued over the entire lifetime of a customer. This is gross profit multiplied by the number of purchases an average customer will make over their lifetime. If the average customer stays five months, and they pay $1,000/mo while it costs me $100 per month to fulfill, then their lifetime value is $4,500.

Commoditized = Price Driven Purchases (race to the bottom) Differentiated = Value Driven Purchases (sell in a category of one with no comparison) A commodity is a product available from many places. For that reason, it's prone to purchases based on "price" instead of "value." If all products are "equal," then the cheapest one is the most valuable by default.

A Grand Slam Offer Solves The Commodity Problem A Grand Slam Offer is an offer you present to the marketplace that cannot be compared to any other product or service available, combining an attractive promotion, an unmatchable value proposition, a premium price, and an unbeatable guarantee with a money model (payment terms) that allows you to get paid to get new customers... forever removing the cash constraint on business growth.

a Grand Slam Offer allows you to sell in a “category of one” or to “sell in a vacuum”. the purchasing decision for the prospect is now between your product and nothing. so you can sell at whatever price you get the prospect to perceive, not in comparison to something else. as a result, it gets you more customers, at higher ticket prices, for less money. 1) Increased Response Rates (think clicks) 2) Increased Conversion (think sales) 3) Premium Prices (think charging a lot of money).

The Right Market: A Starving Crowd You could have the worst hot dogs, terrible prices, and be in a terrible location, but if you're the only hot dog stand in town and the local college football game breaks out, you're going to sell out. That's the value of a starving crowd. At the end of the day, if there is a ton of demand for a solution, you can be mediocre at business, have a terrible offer, and have no ability to persuade people, and you can still make money.

Riches Are In The Niches You must stick with whatever niche you pick long enough to have trial and error. You will fail. In fact, you will fail until you succeed. But you will fail far longer if you keep changing who you market to, because you must start over from the beginning each time. So, pick then commit.

When you decrease your price, you ... ... Decrease your clients' emotional investment since it didn't cost them much ... Decrease your clients' perceived value of your service since it can't be that good if it's so cheap, or priced the same as everyone else ...Decrease your clients results because they do not value your service and are not invested ... Attract the worst clients who are never satisfied until your service is free ... Destroy any margin you have left to be able to actually provide an exceptional experience, hire the best people, invest in your people, pamper your clients, invest in growth, invest in more locations or more scale, and everything else that you had hoped in the goal of helping more people solve whatever problem it is that you solve.

When you raise your prices, you... ...Increase your clients emotional investment ...Increase your clients perceived value of your service ...Increase your clients results because they value your service and are invested ...Attract the best clients who are the easiest to satisfy and actually cost less to fulfill, and who are the most likely to actually receive and perceive the most relative value ...Multiply your margin because you have money to invest in systems to create efficiency; smart people; improved customer experience; scale your business; and, most importantly of all, to keep watching the number in your personal bank account go up, month after month, even with reinvesting in your business. This allows you to ultimately enjoy the process for the long haul and help more people as you grow, rather than burning out and shriveling into obscurity.

VALUE = dream X perceived likelihood of outcome achievement ————————————————— perceived time delay between start and achievement X perceived effort and sacrifice + increase the upper variables - decrease the lower variables 1. what will i make? (dream outcome) 2. how will I know it’s going to happen? (Perceived likelihood of achievement) 3. how long will it take? (time delay) 4. what is expected of me? (effort & sacrifice)

The best companies in the world focus all their attention on the bottom side of the equation. Making things immediate, seamless, and effortless. Apple made the iPhone effortless compared to other phones at the time. Amazon made purchases with a single click of a button and made purchases arrive almost immediately. Netflix made consuming television immediate and effortless. So, the older I get, the more I have shifted my focus to "the hard stuff" — decreasing the bottom side of the equation. And I believe the better you do this, the more you will be rewarded by the marketplace.

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, you have an infinitely valuable product. If you accomplish this, you win the game. Given this postulate, a prospect would (in theory) purchase something from you, and the moment their credit card was run, it would immediately become their reality. That is infinite value.

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.

#1 Dream Outcome (Goal = Increase) 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. Our goal is to accurately depict that dream back to them, so they feel understood, and explain how our vehicle will get them there.

In general, the dream outcome that most directly increases a prospect's status will be the one they value most. For many men, making money is more important than being handsome. Why? Because money drives status for men more than being handsome does. So, in general, they will value all offers that make them money more than offers that help them look good.