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NOTABLE! Unpopular Opinion: "Give Value for Free" is Bullshit More Often Than Not

Discussion in 'General Mindset, Motivation, Beliefs' started by AgainstAllOdds, Oct 27, 2018.

  1. Nigel B
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    Nigel B Life Long Learner Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    (I've not read Ca$hvertising - the quoted ratio may be relevant to a specific market covered by that book. If it's focus is a $20 advertising spend generates $10 profit after all other COG, overheads, etc. - but for product/service to price ratio I think the following is more realistic.)

    10:1 is high, but much more likely to get a bite than 3:2 ($30 value for $20 spend).

    The reason is that in order to overcome buyer hesitation they have to be sure of the value of their spend. Early in the relationship they are only working on your reputation - as well as they can figure that out - and your claims. So they need to believe they will get massive return, in order to take the risk - thereafter (assuming you prove your value the first time out) that ratio can close.

    Hence the 'guru' model which walks people from a $97 course, to a $500 course, to a $2000 event and then a $10K 'inner circle' - each time narrowing the value to price ratio.

    The ratio also very much depends on the product or service of course. If the product is genuine dollar bills - the ratio does not need to be anything more than 1.01:1 assuming a zero cost transaction for the buyer. Point is, certain products (more so than services) do not need to offer a 10:1 leverage - but I think the minimum perceived leverage which is likely to move people from skeptic to first-time-buyer is not usually less than 3:1 and normalling the range 5:1 - 10:1.
     
  2. ChrisV
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    ChrisV Gold Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

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    I aim to do that. Whether that actually happens or not is debatable. But I agree. As long as you're offering $1.01 the value for $1, people will buy*. But the higher you tilt that ratio in the customer's favor, the higher the velocity they will throw their money at you. When you bump that ratio up high enough, that's where you start getting people camping overnight to get your product.

    *i have to make a footnote here because there's also opportunity cost. Yes, they'll buy something worth $1.01, but if there's someone else offering something worth 1.02, they're gonna jump on that deal instead. The big lesson is to boost that ratio as high as you can without incurring losses from elsewhere. This is signifigantly easier to do with scalable businesses.
     
  3. Nigel B
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    Nigel B Life Long Learner Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    Yes marginal value premium creates marginal loyalty for sure.
     
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  4. Real Deal Denver
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    Real Deal Denver Gold Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

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    I have no regrets buying your books. They provide solid value.

    I could (and do) spend years searching the internet for free information. I know I could dig up information for free there. On the other hand, I can read four books in a month and go from 0 to 60 and break records. I'm a serious player. In fact, the thing I don't like about the internet is how it sucks me in and I end up spiraling off in some interesting direction and waste hours. Yes, I learn a few new things - but I have to have discipline. I could spend days in the vast sea of information on the internet. That's great, except I have a list of things to accomplish. Discipline. Your books "inject" the knowledge into my brain directly. That's worth a LOT.

    But, I will be checking out your website anyway... Wish I had more time. If you knew the hours I've been putting in the past few months. I've accomplished a lot - but - I might just quit and take two full time jobs instead. I'd make more money and work less hours. No kidding there.

    Despite the great information on the net, I can't stay in the warm up area forever. I have to take make that move and step up to the home plate and hit the ball. Out of the park. Hopefully. {sigh} I like having the odds so much more on my side from the things I have learned from your books.

    Um. Wow. I guess THAT was the push I needed to confirm that I really do need to get to work on my own books. Next time you're going to hit me with a truck out of the blue, warn me first.

    This was great information. Almost fainted though...
     
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  5. MythOfSisyphus
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    MythOfSisyphus Silver Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

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    I think when it comes to informational products, giving away value is huge. Most of the courses, educational books, ebooks etc that I've purchased have been because I was already familiar with the creator/author and had already been exposed to many of their best ideas and concepts for free.

    Even if you give away your absolute best information for free, people will still buy your course or your book because you've proven you can provide more value than others in the same niche, and for all they know the rest of your course/book/whatever will be even more valuable.

    This website is a great example of giving away free value. You can guarantee that millionaire fastlane and unscripted have been purchased by thousands of people who otherwise wouldn't have purchased them without first coming to this site for all the free value it provides.
     
  6. Everyman
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    Everyman Get To The Choppa! Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

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    Using your own words. More often than not, you are absolutely right.

    Would you agree it comes from the fact that 80-90% of people we meet, aren't even vaguely interested in what we do, not to mention, what we want to sell to them. Unless we approach them and start talking to them. Then we may see that, still 80-90% isn't interested, but 10-20% is. But we have to go through the 80-90% to find the 10-20%...

    I think it's industry specific. Somebody has mentioned before drug dealing. So low-cost, astronomically high-margin product. It was made to be 'marketed' this way. It might work better or worse in different industries, with different products.

    It might build trust actually. Trust is more important than anything else, I think. I don't buy things that I don't trust, don't buy things from companies I don't trust and people I don't trust. I am ready to pay high premium to anyone, who I know is trustworthy i.e. will deliver what he promised in time he promised (even the time is not that important in some cases).

    Somebody has already brought up the book "Give and Take". Don't want to duplicate it here. Just a couple of questions. Did you ask him for anything in return? Did you negotiate it before or even during this process? Did you give him 'something small' for free before committing to this huge deal? What was the relationship like before this deal?

    You are absolutely right. It's one of the tools to use to 'sell'. Just one of many that should be used alongside others (emailing^^^, cold calling, 'social media', etc etc)... But giving away value for free isn't always bad, it's just not properly used in a specific situation.
     
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