Value - Create Your Offer

Question 1

What does Alex say the goal should be?

Answer 1

to charge as much money for your products or services as humanly possible.

Question 2

anyone can raise their prices, but only a select few

Answer 2

can charge these rates and get people to say yes.

Question 3

Why should you abandon any notion of what’s “fair” pricing?

Answer 3

because every enormous company in the world charges you money for things that cost them nothing.

ex: phone companies, pharmaceutical companies, media companies

Question 4

What’s the only way to be unreasonably successful?

Answer 4

having a big discrepancy between what something costs you and what you charge for it.

Question 5

you should never charge more than your product is worth but you should charge

Answer 5

far more for your product and services than it costs to fulfill it.

Think up to a hundred times more, not just two or three times more.

Question 6

If you provide enough value, it should still always be a _____ _____ _____ _________.

Answer 6

steal for the prospect.

Question 7

Those who understand value are the ones who

Answer 7

will be able to charge the most money for their services.

Question 8

The repeatable formula to help quantify the variables that create value for any offer is

Answer 8

The Value Equation

Question 9

Picture of the Value Equation

Answer 9

Question 10

There are _____ primary drivers of value.

Two of the drivers (on top), you will seek to __________. The other two (on the bottom), you will seek to _________.

Answer 10

four;
increase;
decrease.

Question 11

The Four Drivers Of Value

Answer 11

1. (Yay) The Dream Outcome (Goal: Increase)
2. (Yay) Perceived Likelihood of Achievement (Goal: Increase)
3. (Boo) Perceived Time Delay Between Start and Achievement (Goal: Decrease)
4. (Boo) Perceived Effort & Sacrifice (Goal: Decrease)

Question 12

What four “pillars” correspond to the value equation

Answer 12

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)

Question 13

The best companies in the world focus all their attention on the _______ side of the equation. Which means

Answer 13

Bottom;

Making things immediate, seamless, and effortless.

Question 14

you have an infinitely valuable product if:

Answer 14

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.

If you accomplish this, you win the game.

Question 15

Perception is

Answer 15

reality

Question 16

It’s not about how much you (ACTUALLY vs. perceived)

Answer 16

increase your prospect’s likelihood of success,

or decrease the time delay to achievement,

or decrease their effort and sacrifice.

That in itself is not valuable. Many times, they will have no idea.

Question 17

When is the only time your GSO becomes valuable?

Answer 17

once the prospect perceives the increase in likelihood of achievement,

perceives the decrease in time delay,

and perceives the decrease in effort and sacrifice.

Question 18

What is the London Tunnel System example?

Answer 18

The biggest increase in rider satisfaction (aka value) was never from faster trains to decrease wait times.

Instead, it was from a simple dotted map that showed them when the next train was coming and how long they had to wait.

Question 19

what did The dotted map do in the London Tunnel?

Answer 19

The dotted map, which only cost a few million dollars, decreased the riders’ perception of time delay and sacrifice (being bored waiting) more than actually making the trains faster (which costs billions of dollars to do).

Isn’t that cool? This is how we need to think about our products.

Question 20

Instead of looking for logical solutions to build value (which is perceived)

Answer 20

use psychological solutions

Question 21

as business owners, it is up to us to communicate these _________ _________ with _________ to increase the prospect’s ____________ ____ _______ ___________.

Answer 21

value drivers;
clarity;
perception of these realities.

Question 22

The extent to which you answer these questions in the mind of your prospect will

Answer 22

determine the value you are creating.

Question 23

(dream outcome)
People have deep, unchanging

Answer 23

desires.

Question 24

Our goal is not to create desire. It’s simply to

Answer 24

channel that desire through our offer and monetization vehicle.

Question 25

The dream outcome is the expression of the

Answer 25

feelings and experiences the prospect has envisioned in their mind.

It’s the gap between their current reality and their dreams.

Question 26

Our goal is to accurately _________ ______ _______ back to them, so they ______ ________, and explain how our _________ _____ ______ ______ _________.

Answer 26

accurately depict that dream;
feel understood;
vehicle will get them there;

Question 27

The dream outcome is simple; it’s

Answer 27

the “getting there” where the value gets enhanced or detracted.

Question 28

Take the desire “to be perceived as beautiful” for example, here are a lot of things that touch on this desire:

Answer 28

Make Up
Anti-aging creams/serums
Supplements
Shapewear
Plastic Surgery
Fitness

→ All these vehicles channel the desire to be perceived as beautiful.

Question 29

And if we further unpack the idea of a desire to be beautiful, we see that it may be a

Answer 29

surface-level declaration of a deeper desire to achieve higher status in one’s social group.

Question 30

The dream outcome value driver is most prominently used when

Answer 30

comparing the relative value between two different desires being satisfied.

Question 31

In general, the dream outcome that most directly

Answer 31

increases a prospect’s status will be the one they value most.

Question 32

What will have your prospects drooling?

Answer 32

Talking in terms of things your prospect believes will increase their status

Question 33

Pro Tip: In your copy, frame …

Answer 33

benefits in terms of status gained from the viewpoint of others

Question 34

When writing copy, you can make it that much more powerful by talking about how

Answer 34

other people will perceive the prospect’s achievement. Connect the dots for them.

Example: If you buy this golf club, your drive will increase by 40 yards. Your golf buddies’ jaws will drop when they see your ball soar 40 yards past theirs . . . they’ll ask you what’s changed . . . only you will know.

Question 35

when comparing two products or services that satisfy the same desire, the value from the dream outcomes will

Answer 35

cancel out (since they are the same).

It will be the other three variables that drive the difference in perceived value, and ultimately price

Question 36

if we have two products or services that both help make someone beautiful, what will differentiate the perceived value of each offer?

Answer 36

likelihood of achievement, time delay, and effort required

Question 37

if two things make someone beautiful, what makes one worth $50,000 and another $5?

Answer 37

Answer: The extent of the other three value variables.

Question 38

What was the last of the variables Alex added when trying to think through this value equation framework?

Answer 38

Perceived Likelihood of Achievement

Question 39

people pay for _____________

In other words,

Answer 39

certainty;

“How likely do I believe it is that I will achieve the result I am looking for if I make this purchase?”

Question 40

we must communicate perceived likelihood of achievement through

Answer 40

our messaging, proof, what we choose to include or exclude in our offer, and our guarantees (more on these later).

Question 41

______ ________ is the time between a client buying and receiving the promised benefit.

Answer 41

Time delay

Question 42

The _________ ______ _________ between when they purchase and when they receive value/the outcome, the more ______ ______ __________ __ ________ __.

Answer 42

shorter the distance;
valuable your services or product is

Question 43

There are two elements to this driver of value:

Answer 43

Long-term outcome and short-term experience

Question 44

The thing people buy is the _______-_______ _____, ____ _______ “________ __________.” But the thing that makes them stay long enough to get it is ______ ______-________ ___________.

Answer 44

long-term value, aka their “dream outcome.”
the short-term experience.

Question 45

These are little __________ a prospect sees along the way that shows them they are on ____ _______ ______.

Answer 45

milestones;
the right path

Question 46

We try and tie as many of

Answer 46

these milestones as possible into any service we offer.

Question 47

We want clients to have a big

Answer 47

emotional win early (as close as possible to their purchase).

Question 48

This gives them the emotional

Answer 48

buy in and the momentum to “see it through” to their ultimate goal.

Question 49

Pro Tip: Fast Wins

Answer 49

Always try and incorporate short-term, immediate wins for a client. Be creative.

They just need to know they are on the right path and that they made the right decision trusting you and your business.

Question 50

People who experience a victory early on are

Answer 50

more likely to continue with something than those who do not.

Question 51

The only thing that beats “free” is

Answer 51

fast

Question 52

what’s our goal with a client’s perception of effort & sacrifice?

Answer 52

decrease it

Question 53

what pain points do marketers often hit on?

Answer 53

the effort and sacrifice a client makes in their current situation or with a competitor

Question 54

So even though the outcome is the same,

Answer 54

the value of the vehicles are dramatically different, hence the difference in price.

Question 55

Decreasing the effort and sacrifice, or at least

Answer 55

the perceived effort and sacrifice, can massively boost the appeal of your offer.

Question 56

In an ideal world, a prospect would want to

Answer 56

simply “say yes” and have their dream outcome happen with no more effort on their behalf.

Question 57

Our goal as marketers and business owners is to

Answer 57

increase the value of the dream outcome and its perceived likelihood of achievement, while decreasing the time delay of achievement and the effort and sacrifice one has to put in to get there.

Question 58

Example: Dream Outcome: “Relaxation,” “Decreased Anxiety,” “Feelings of well-being” Meditation vs Xanax

Answer 58

Question 59

And you can either sit there and make “complain” posts about how people “ought” to be a certain way. Or you can

Answer 59

take advantage of the way people are and capitalize.

This book is for those people who want to be victors, not victims of circumstances.

Question 60

you can be right or

Answer 60

you can be rich.