This $100M Offer
book has popped up in my Amazon feed from time to time, and I've always ignored it. The title sounded like one of those get rich quick spammy pitches. I was wrong.
Last week's newsletter from Michael Simmons, a trusted thought leader, changed my mind. Michael introduced me to Alex Hormozi, the author of the aforementioned mentally mislabeled book, who knows his way around delivering value at scale.
We've all heard the persuasive pricing vs. value explanations. We know that clients are really paying us for the ultimate outcome they seek. And while that makes sense, getting to the heart of value delivery is a lot harder said than done.
It's this value equation Hormozi created that is aha simplicity.
Let's break this value equation down. To maximize the value (and ultimately your profits) you deliver, you need to:
Increase the Dream Outcome, the clearly defined result you know your client expects
Increase the Perceived Likelihood of Achievement by reducing friction, obstacles, and unnecessary actions
Decrease Time Delay for your client to get meaningful results that lead to their final outcome
Decrease Effort and Sacrifice required by your client to receive their desired outcome
Most businesses talk about the top half of the equation. It's easy to tout results and make the promises your clients want to hear. But what if you are the exception, focusing your attention on shorter time to client satisfaction with decreased effort to get there? Your perceived value skyrockets. Your profits increase.
The Simple Value Equation Drivers
As good fortune would have it, this equation landed at just the right time.
We're in the process of creating a shared service for business leaders and their technology folks to do more, better, together. The pieces of the offering had been detailed, the ideal leader clearly described, and yet it felt like there was something missing.
The service solves a real problem, but the steps to get to the solution were just that – steps -- not engaging activities. We were thinking collaboration but designing soulless processes.
The answer was in the Time Delay value driver.
As I thought about this equation component, I was reminded of the checklist
post I shared with you last week.
From our client's perspective, the desired outcome was a quick, painless, successful software installation so they could get on with their day. With that in mind, we had organized the steps into mini collections with incremental successes at each checkpoint. This approach decreased the time delay and increased the perceived likelihood of success.
Our new service offering needs to do more of that.
Increasing the Value of What You Deliver Isn't About Price
When you ask a client to complete a series of tasks, you know what the result will be because you've led clients through this same process before. But clients don't have your experience to envision the finish line.
To them you've delegated a long list of to-dos that are time-consuming, stressful if they've never done them before, or pointless when they don't see the outcome. The obstacle list goes on.
Look at the repeatable lists of things that you routinely ask your clients to do as part of your service delivery. What small win can you add early that will reinforce your promise of success?
The right clients will gladly pay for your distinctive product or service. They aren't focused on price unless you're selling a commodity like toilet paper or mulch. In that case, it's a race to the bottom if you're competing on price alone. But even a bag of wood chips has increased perceived value when your clients experience fewer weeds and healthier plants faster.
Your Easy Action Item
Give this a try:
Look at what your competitors are offering. Then decrease the time for your clients to see their first tiny tangible result. It doesn't have to be big. It just needs to help clients see that success is possible.
This short blog post is just the beginning of making sense of value creation. I highly recommend both $100M Offers
and $100M Leads
for fresh insights and actionable ideas about delivery meaningful value.