HOW TO CREATE YOUR OFFERS (FOR MORE PROFITS)

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Are you struggling to get leads buy your products and services? Are people neither interested in getting your free products nor in testing your trial products?

It doesn't necessarily mean that your product or service is bad (though it might be, but I'm assuming here that you created a quality product). It most probably means that your offer is bad.

In this article we will leverage Alex Hormozi's "$100M Offers" and cover the key components that your offer should contain. You're going to be surprised.

WHAT IS A GRAND SLAM OFFER?

A "Grand Slam Offer", based on the terms of the serial-entrepreneur Travis Jones, is an offer "so good people would feel stupid saying no".

Creating a grand slam offer for every product and service you sell should be your objective from now on.

DIFFERENTIATE YOUR OFFER

A commoditized offer occurs in a competitive market. The price is a key differentiator. Competitors beat each other by reducing the price until they have no margin. Don't build a commoditized offer.

Oppositely, a differentiated offer is unique and cannot be compared directly with offers from competitors. It is value driven. Build a differentiated offer to have your category of one, hence no direct comparison. Price high.

FOUR PRIMARY DRIVERS OF VALUE

There are four main drivers of value in an offer:

1. Dream Outcome: The feelings and the experiences the prospect has envisioned in their mind. Their ultimate objective.
2. Perceived Likelihood of Achievement: The degree of certainty your prospects have in reaching their dream outcome with your offer.
3. Time Delay: The time between a client buying and receiving the promised benefit.
4. Effort & Sacrifice: The pain a client has to endure using your product. "Done for you" services are almost always better and more expensive than "do-it-yourself" services.

THE VALUE EQUATION

The value equation leverages the four main drivers of value to show you how to create value for your clients. Your goal is to increase the first two drivers (numerator) and decrease the last two drivers (denominator).

CREATE YOUR GRAND SLAM OFFER

There are six steps to create your offer:

1. Define your prospective client's dream outcome.
2. List all the obstacles they're likely to encounter.
3. Rephrase all those obstacles as solutions.
4. Figure out all the different ways you can deliver those solutions.
4. Trim down these ways to the highest value and lowest cost services.
5. Associate services to build the ultimate high value deliverable.

ADD SCARCITY TO YOUR OFFER

The fear of loss is stronger than desire for gain. As a result, use scarcity to decrease supply to raise prices and indirectly increase demand through perceived exclusiveness.

There are three types of scarcity:

1. Limited Supply of Seats/Slots: in general or over X period of time.
2. Limited Supply of Bonuses.
3. Offer never available again.

ADD URGENCY TO YOUR OFFER

Urgency is where you only limit when people can sign up, rather than how many. Having a defined deadline or cut off for a purchase or action to occur creates urgency.

Use urgency to increase demand by decreasing the action threshold of a prospect. They will act now.

EXAMPLES OF URGENCY

1. Cohort-Based Rolling Urgency
2. Rolling Seasonal Urgency
3. Pricing-Based Urgency
4. Bonus-Based Urgency

ADD BONUSES TO YOUR OFFER

A single offer is less valuable than the same offer broken into its component parts and stacked as bonuses. I know, shocking!

It works because we anchor the price of the core offer in their mind, and then with each increasingly valuable bonus the price-to-value discrepancy only grows wider.

Use bonuses to increase demand and increase perceived exclusivity. Your competitors probably do not offer bonuses.

IDEAS OF BONUSES

checklists
tools
scripts
templates
workshops
webinars
...

Pro tip: Some bonuses could be offers from relevant partners of yours, from which you will make a commission. That's free money.

ADD GUARANTEES TO YOUR OFFER

Most people are averse to risk. If you don't offer a guarantee, you won't sell much. Use guarantees to increase demand by reversing risk.

There are four types of guarantees:

1. Unconditional Guarantees: Trial where clients pay first then see if they like it or get reimbursed, no questions asked. This gets a LOT more people to buy, but you will have some people refund.
2. Conditional Guarantees: Guarantees that include "terms and conditions", which can be creative.
3. Anti-Guarantees: Explicitly state "all sales are final". Come up with a "reason why" the sales are final and own it.
4. Implied Guarantees: Performance-based offer coming in the form of revenue share, profit share, monetary bonuses...

Use at least one, but you can stack guarantees in your offer to strengthen it.

Name Your Offer

Humans tend to be attracted by humans or things that most look like them or are the most relatable to them. Name your offer according to that fact to better stimulates demand and convert prospects. Obviously, knowing your prospects is critical in the naming process.

Alex Hormozi's M.A.G.I.C Formula will help you name your offer:

1. Magnet: Name with a word or phrase that tells the "reason why" of theoffer.
2. Avatar: Call out your ideal client.
3. Goal: Articulate your prospect's dream outcome.
4. Interval: Let people know the time duration to expect here.
5. Container: Add a container word illustrating that your offer is a bundle.

No need to use all 5 elements, just include the most relevant ones in the name of your offer.

CONCLUSION

In conclusion, apart from a growing market, your offer is the most important element in sales. More important than your persuasion skill set. Therefore, you should put a significant amount of time and energy in crafting your grand slam offer. Create your offer based on the value equation, add scarcity, urgency, bonuses, and guarantees, and name it to make it count. Then, enjoy the sales.