How To Create Better Direct Sales Offers Like a Tundra Would
Hint: Doubling or tripling the value turns a good offer to a no-brainer!
I was recently reminded of one of my former business partner Russell Nohelty's best exercises on how to create better direct sales offers:
He'll test a price point and an offer and see if it sells.
If it does, then the next time (the next year, the next time he asks) he'll say to himself, "what if I just kept the price the same and made it 3x or 5x more valuable?"
And he'll add as much as he can to the stack until he is selling a 3-5x better offer than the one he just sold.
The results? Huge retention rates and repeat buys.
Example #1: Kickstarter Tiers
This idea is one of the foundations of how we build tiers on our Kickstarter campaigns to maximize profits. I taught students the Double-50 rule which states:
Create a tier that is double the value of what you are charging - This ensures that the tier is an easy “yes” for buyers, and also ensures that if you have a tier that no one is backing, you have the data to justify removing it quickly (usually it’s something that no one wants)
Ensure that same tier is at least 50% profitable, or put another way, costs you less than 50% of what you are charging to deliver - This ensures that you don’t do a ton of work for very little money in your pocket. It also means that even if you make a mistake, you have the money to cover it.
Example #2: In-Person Conference
It’s also something we used to build our in-person conference. We kept the price of our mastermind the same, but added a vendor day and an additional 3 days of conference to the event. Of course, more isn’t necessarily better, but in this case it made the mastermind that much easier to sell!
This is a magical way to turn one-time buying behavior into a subscription-like business model. And in-person events are much like a subscription!
What ways do you see this concept applying to one of your current offers?