Have a product or service you want to bring to the market place?
To help sell your product or service you need to create an irresistible offer.
When it comes to marketing and selling, coming up with your irresistible offer is one of the most important aspects you need to consider.
There’s a lot that goes into creating an irresistible offer and a really good offer can build an empire which you will soon discover.
The ultimate irresistible offer formula
I have a formula that I use for creating an irresistible offers which I’m going to break down and share with you.
Create Massive Value
The first component of the formula is what is called massive value. Massive value makes up 50% of your irresistible offer.
What exactly does that mean?
Well, there are two components to that. The first component is referred to as the “core value” which makes up half or 25% of your “massive value”. For example, with Netflix, the core value is the fact that you’re getting thousands of dollars worth of movies for $8.
And that leads into the second component – the price to value ratio which is the other half of your “massive value”; the other 25%.
Here’s an example of how the “price to value ratio” works. If Netflix started charging $50 a month, their score on the price to value ratio would go down significantly. However, being $8 a month this brings their price to value ratio up to 100%. And that’s why it’s a billion dollar brand. That’s the power of an irresistible offer.
That’s the first component but it continues from there.
Combined, these two components make up the “massive value” aspect of your offer.
The second component of how to create an irresistible offer is called friction reduction which makes up 35% of your offer.
This is a component a lot of people don’t think about, yet, it’s incredibly powerful. So much so that it goes a long way towards building billion dollar brands.
What is friction reduction?
As human beings we all want less friction in our lives. We all want things to be easier, quicker, smoother. So here are the three components of a frictionless offer.
Number one is faster. Amazon one click purchases is a good example of faster. In fact, Amazon’s entire business is built around faster. Faster delivery, faster purchasing, faster everything.
The next component of friction reduction is easier.
So faster is one thing and easier is the close cousin of faster.
The third component of friction reduction is invisibility. You can’t see it.
So what does that mean? A great example of what invisibility is and how it works is with casinos. Nobody’s playing with cash at the table. They give you chips. And in your mind these chips are like toys. If you have $100 worth of chips you’re not seeing it like $100 cash. So the transaction cost is a lot less visible.
Another example of invisible friction are credit cards. This is a multi million dollar industry built on invisibility and friction reduction. Think about it…It’s so easy to just pull out your credit card and swipe it. You don’t see the cost. You don’t see how much that’s really costing you until you get the bill.
Uber is a brand that’s worth billions and billions right now. Their brand encompasses all aspects of friction reduction – faster, easier, invisible – as well as a great price to value ratio.
With the push of a button, you can get an Uber. It’s fast, it’s easy and the transaction is invisible. You don’t even need to tip the driver or give the driver cash. Uber scores 100% on friction reduction.
Also, in most cities, Uber is 50% cheaper than using a normal taxi. So the price to value ratio is amazing.
The last component of how to create an irresistible offer is risk removal. Risk removal is where guarantees and warranties come in.
If you can offer a lifetime guarantee, you’re increasing the risk removal.
Another way to remove risk is to pay for performance. If you do any sort of work and you can offer pay per performance. By making that offer, you’re completely eliminating the risk for your client. The upside of doing that is you can actually increase your prices as a result.
When putting together your irresistible offer, you will need to create a compelling headline to help make your offer stand out.
Putting together your irresistible offer
Remember, you have 3 components which make up your irresistible offer.
1. Massive Value which is 50% of your offer
2. Friction reduction which is 35% of your offer
3. Risk removal is 15% of your offer.
The higher you can get up to 100% the more irresistible your offer is going to be. But don’t forget your core value. Without that you really don’t have anything.
Remember, Netflix has thousands of dollars of entertainment available to you for only $8 which is an amazing price to value ratio making it a really good core value.
The same thing applies to Uber. You’re getting the same service as a taxi, for half the price with better service.
So remember to keep these things in mind when creating an irresistible offer.