Crafting Your Irresistible Offer Part 3

Date: August 26, 2021
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Here’s the thing…. 

There are hundreds of businesses out there that are making the same claims and promises as you…

….so crafting a great offer can be the best way to stand out. 

Fortunately for you, I have got you covered with part three of the ‘Irresistible offer’ series.

 The two strategies that I will be touching in this video are: 

  1. The Ascension Offer Model
  2. The Descension Offer Model 

Watch this video below to learn more about these two tried-and-tested strategies. 

Chat with a marketing consultant

Video Transcript 

Okay, so once you have splintered up your products and have all the various price points, there are two models where people offer.

Okay. Two strategies, right, to ascend people.

Okay.

One is to offer an Ascension Pyramid Model where you offer a low entry product and then upsell.

You see this is very common with a lot of the internet marketers, a lot of the speakers where they sell you like a free plus shipping product, right? So you just pay for shipping, which costs you like $17 or $15 and you get a book for free.

And then they try and upsell you various stuff, right?

All this stuff say, okay, you got the book now. But hey, you know, what do you want me, do you want to watch my recording at my 3-day thing where, you know, people pay $10,000 for it. You can get it only for $99.

And then they say, okay, well, okay, you’ve now, you’ve bought that one. Do you want this other product? Where it’s like $200, where you get all my templates to run Facebook ads, right? But the hook, the first offer that made it easy for you to get in, was the free plus shipping offer.

That’s one model, right? That’s one default.

And then eventually, as you go up, they will go, you will go to the seminar, right, or the 3-day event. And then the next thing you know is like, you’re paying for one-to-one mentorship like $50,000 per year or whatever stuff, right?

So that’s the whole Ascension Pyramid Model.

Okay, then there is also another way to do it, which is Descension Pyramid Model.

So the Descension Pyramid Model is where you offer your best and most expensive product, and then down sell them the cheaper products.

The philosophy behind it, is that, okay, you want to put your best step forward and if they say no, because it’s too expensive, then you offer them something cheaper.

Then it’s like, okay, that’s more acceptable, I can afford, instead of like paying $3000, you’re now asking for $1000. Yeah, that’s something I can afford, you know. So there’s the psychology behind it as well.

So I’m not saying one is better than the other, it just depends a lot on your niche and your industry as well.

So that’s something for you to try and figure out.

Okay, you can try one first and try the other, see which one works better.

So I will show you an example, some examples of the Descension Pyramid Model as well, to help you wrap your head around it.

So, okay. So this is our model, right? Our model is a Descension Model, right, with this new funnel we’ve just created.

So let me share with you. Okay.

So this is a draft funnel. Okay.

So what I’m going to do is maybe next week, or the week after, we’re going to start running some ads which will come to this, come to this page. And basically it’s a case study. Okay? So people can watch the video. So it’s a kind of like four-minute video, right? So at the end of the video, I don’t pitch my product, my offer straight away.

So what I pitch is 7x webinar diagnostic.

So what it is, is that people will click to schedule a call with us down here. So they click on the time and say, pick a time schedule call first and then my sales consultant will basically work, get on a call with them, talk to them. And see if their current model, current webinar model, actually can generate a 7x return on their ad spend.

Okay, so we have this whole software that we go through. Plug in the numbers and then bam, it would say, okay, how many, if you spend $1000 on ads, how much money you get back at the end of the day? This is the whole diagnostic.

And then if they don’t get at least 7x, then we tell them, okay, this is what you need to fix, right?

If they get 7x and we say, congratulations, you got a great model.

And then, basically, if they want us to talk about how we can help them to scale up their webinars, that’s where we kind of pivot into a sales call, right? And then we make a proposal and offer it to them.

So that’s how it all works.

So, at the appointment, basically then at the offer, we have four options, okay.

So, one is at the high end.

So it’s basically we. First up, if you qualify with the 7x web diagnostic, you have, we offer you a done-for-you service, which starts at $2000, depending on the ad spend that goes up as well. So that’s the done-for-you service.

And then chances are, they might, there may be some that say great, some that may say, okay, I don’t think I can afford it. So what we can do, then do is like, okay. Well, if you can’t afford it, tell you what, or if they’re hesitant, we say, basically look, why don’t we just build your funnel for you or your landing pages, email follow-ups, SMS follow-ups, everything, right?

And that’s a $2500 once-off thing, okay?

So this is per month, $2000 plus per month. Then this is like $2500 once-off.

So it’s like, okay, maybe I can do it like this once-off, and then see how you guys go before we move on to the next step, right? And then, if they say, okay, yeah, that’s beyond my budget, do you have something more affordable? Then we’re offering them a one-on-one coaching, where it’s $997 per month. Where they get to talk to me two times a month, and we do a one-on-one coaching session to help grow their webinars.

And then down the track, what I’m thinking is we want to create a webinar training program. Which I’ll just record and then it’s just over in there, and then we can sell it for about $750 to $1500 once-off.

So, as you can see, I’m descending from the most expensive and the most value, to lower and lower values, right?

And then another descending descension, maybe to join this community as well, right? If they say, oh yeah, that’s too much, well, join this community, right?

So those are the various ways that we can, that’s how we structured our funnel.

Okay. So hope this is helpful.

Okay. So I want to show you another example. And this is of my mentor’s one, which inspired me to create mine.

Right. So this is Terry’s one. Basically. Yeah, once again, he’s offer is a free scaling strategy session. And yeah, basically they can, they social proof all this kind of stuff, which is awesome.

I should do some of that too, Right.

And then they basically apply for this free scaling session.

All right.

So then, after doing that thing, what he will offer to them, if for people who are qualified, is that he will offer. Once again, he has a done for your service, which is $2000 plus.

And, okay, if you can’t afford that, what he has then is like, all right, well, you know, if you can’t afford the $2000 with me, look, I’ve got this guy I’ve trained that’s pretty good, right? So, he will outsource, he will send you to this guy that he’s trained, his prodigy, and he gets a cut off that at $1K a month.So he would get a percentage of that.

And then the other thing is that, okay. If you can’t afford my service, maybe you want to learn how to do it yourself, right?

So he will sell them into this monthly coaching membership, which is $2000 per month, plus an upsell, I can’t remember what exactly the upsell was but it’s about to $300 to $400 a month. I think it’s like, he will write two ads for them, or something, for $400.

So that’s pretty good as well.

Then finally, if they still don’t buy at that level, he will then sell them a $27 book.

So, okay, if you can’t afford $2000, you can’t afford $1000, can’t afford $200, surely you can afford $27, right? So that’s where he sells them book, plus a $99 upsell, which is, I can’t remember what it was.

See, the thing is, most people at a sales call, is like, they will say, all right, buy this product at $2000.

Then there is no other second option or third option, right?

So, where Terry Foster and myself, we’ve created this funnel where it’s like this multiple levels of offers.

So if they say no to one, chances of them saying no to the second and third one are much much less. So we get more people buying, instead of just a one-shot, let’s hope they buy this, you know, offer at $2000 thing. And if they don’t, I completely missed out, right? So no, we have multiple levels of offers, which maximizes our return on ad spend as well.

So that’s one thing to keep in mind, because running ads can be expensive, right? We all know that.

So if I spend $1000 and zero people buy my done-for-you service, -$1000 a month already, right? Which is kind of bad. But if some people buy, you know, my coaching program, some people buy my book, hey, at least I can reduce some of that $1000 spent, maybe even make a profit. Maybe out of that, I can make $2000 or $3000. And then anyone that buys my highest end product or service, that’s just cream on top.

So that’s how you’re able to, you know, spend more on ads, and get a positive return and not worry about going negative.

Okay. So let’s talk about Vince Tan’s model, right?

Previously, the last two ones were more related to services.

So I think it’s like, you know, if you’re a doctor as well, if you’re a chiropractor, a physio, yeah, any professional service, those two models that I talked about previously, that works best.

Okay?

Now, if you’re in the information and training model, which is what Vince is really because he doesn’t do really much consulting or stuff. It’s more information and training, right?

That’s where his model is. So level one is the free training. So the free webinar.

Okay.

The free seminar, right? That’s his model. Then at the free seminar, he will pitch you, right? So whether it’s a. I think, for the webinars, he will pitch a 3-day summit, right? That was the last one we worked on. It’s a 3-day summit for $50. So, at the 3-day summit, what happens is, he will pitch, I think it’s called the Digital Business Intensive, or something, which costs like about $1000, US.

So that’s the next level up. Okay? And I think at the seminars, he will go straight live seminars, in person seminars, he will go straight to pitch the number three, which is a $1000 program.

And then after that, at the $1000 program, all right, you want to work more closely with him? He’s got this Mastermind program, which is at $5000, right, which is, I think, RM25,000 right?

So that’s his ladder, right?

And then he’s got another level up where he partners with you and takes a percentage of your revenue, right? So he will invest in your project. He will partner with you, and he will take a percentage of your revenue.

So that’s how his model is like, right?

So, the free training, obviously minimum resistance, right? 3-day summit, at 50 bucks is kind of a no-brainer. And then, you know, it’s like the next level up $1000. Yeah. So only a certain percentage would take it, Mastermind program, a smaller percentage, right? And then those in the Mastermind group that qualify will do a partnership thing with him.

So that’s his model. Which is great for speakers, trainers, selling information products, right. This is a great model to use.

Okay.

Now, the final model I want to talk about is more related to products, e-commerce products.

Okay.

So this is, you know, I want to give you basically a whole range. We talked about services. We talked about speakers, information products.

And now I want to talk about e-commerce products. I’m just trying to give you a wide range of ideas and different industries. So you broaden your mind as to what’s possible. Yeah.

Okay.

Alright.

So let’s talk about Organifi.

This is a multi-million dollar e-commerce business. All right.

And I think that, I like it because there’s so many things we can model off, right?

So, first of all, they go to a sales page right, which we’ll look at here. Right. So as you can see, you know, once again, they’ve built in continuity into their model. So it’s a 30-day supply. So they buy. It’s a 30-day supply, you buy now.

Once again, we talked about guarantees. They have that guarantee in place here. And, you know, we talked about, they talked about, you know, what benefits it can do for you.

So this is basically their landing page. The first page you land on from the ad.

Right.

Then, if you buy, okay, they ask you to upgrade your order on the thank you page. So it’s not like, hey, thank you for buying my 30-day, you know, thing, you know? No, they ask you to upgrade your order.

So first of all, that when you first buy, it’s already x amount of money. So with one click, you can upgrade your order, and you can, they make it really enticing that you can save 90 bucks, right? So a lot of people will say, okay, yeah, you know, so you’re basically offering more of the same, right?

So you have one product that’s 30 bucks or 50 bucks. And now you’re like saying, well, if you buy it now for three, you save this much money. So that’s on the thank you page. Now you can see why they, how they maximize each customer. We talked about customer lifetime value, right?

So this is how they maximize their customer lifetime value straight away. Because when is the best time to make your second offer? It’s when people first decide to buy. Then on the thank you page, they’re already excited. They’re like, okay, yeah, I’ve already bought one so why not buy a few more?

And then the next page is still not the thank you page yet. The next page is they are selling you a probiotic.

So the other. Initially they’re selling you a green drink mix, right? So take the powder, mix it in water and drink it right? It gives you all the nutrients for the day.

So now they’re saying, yeah, why not increase your absorption by taking this probiotics? So it’s also related to the ultimate goal of feeling more health and vitality. But they offer a different product here, okay? So they’re offering a probiotic product. Once again for you guys, think of, all right, what is your customer’s ultimate goal?

And if you can also sell a complementary product that will help with that ultimate goal, whether its financial freedom, whether it’s better health, better relationships, whatever it is. What other product can you introduce to help them to achieve that goal, that you can also upsell to them?

Okay?

That’s the lesson here.

And then, on the next page, it’s still not yet the thank you page. Now, they’re offering you another different product, which is tumeric. Okay.

So now, they’re like, you know, basically, if you buy all the way up an initial $50 product becomes like $150 on the second page becomes another like 50 bucks on the third page. And here it’s another like 50 bucks. So now you’re instead spending 50 bucks, this person could now be spending, like 300 bucks by now.

So yeah, this is the next thank you page they have, which is actually another sales page for another product yet.

Right.

And then, finally, they give you the thank you page. Which then also sells you other stuff, as a bonus at the bottom, right? Okay, so they’re now selling you other stuff and you can get a special discount because you’re a customer, right?

So it’s like selling selling selling all the way.

So you maximize the value of the customer. And then you finally get a congratulations. So actually the previous page is still not the thank you page yet. It looks like a thank you page, but they’re actually selling you something more. And then finally, you get to the thank you page, which also then offers you a free gift.

But that free gift is actually, also, selling you into a continuity program. So they offer you two weeks free as part of this program. But if you want to renew, then you have to pay again. So all up, you know, this could bring the total value up to like $5-$600 from a $50 sale.

So yeah, if you’re not doing upsells, right? Especially if you’re selling physical products, you’re missing out big time, right?

So, Gardo, I think this is especially relevant for you. You know, I don’t know sandals, what goes with sandals? Beach towels can be, you know, beach wear, can be hats, can be sunscreen.

All those products, you can start incorporating into your whole funnel, right?

And upsell them, because chances are buy a sandals, since they like the beach, they want all this other stuff that’s related to the beach. Right?

Yeah. This is just a great lesson as to how, you know, where most of us, we don’t come close to maximizing the value of our customers.

And granted, like, not everyone will go through the whole funnel and buy everything right? Maybe up to here, maybe only 5% will end up buying everything, or 3% who end up buying everything.

But that’s okay. But if you don’t offer them, you’re missing out on all that potential revenue, on potentially $500 worth of revenue.

Chat with a marketing consultant

 

Terence has been passionately practicing and teaching marketing for 20 years. Since 2014 when Radical Marketing was set up, Terence has been helping business owners, speakers and experts from all over the world to fill up their seminar and webinar rooms with attendees.

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