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Chapter 1: What are offer enhancers and why are they important?
Hey guys, welcome to the special collaboration between The Game Podcast and $100 Million Offers, the audio book. Today, we're gonna talk about offer enhancers, specifically scarcity and urgency. First off, the difference between the two. Second off, the ethical ways of using them in business and the unethical ways of using it, which I highly don't recommend. Long-term, you'll lose money.
So definitely use it the right way and make more money. That seems like the best thing to do. Hope you guys enjoy. And hey, if this podcast has been useful to you, share it with a friend. You know, I took a year to write this book and it took me two days to record this audiobook for you guys.
If it takes you 15 seconds to click share on this and send it to a friend or share it on your stories, it would mean the world to me and might even mean the world to someone else. Section four, enhancing your offer.
Chapter 2: How can scarcity be used ethically in business?
Scarcity, urgency, bonuses, guarantees, and naming.
But wait, there's more. If you order today, every infomercial in the 90s. May 2019, Arnold Schwarzenegger's home, after-school All-Stars fundraiser.
The line of cars outside Arnold's house was around the corner, and we were in one of them. We were sitting in our Uber when a security guard with an earpiece, black suit, and black sunglasses knocked on the driver's window. It was like straight out of a movie.
The driver rolled down the window. Name? Alex and Layla Hermosi. He scanned the list on his clipboard, nodded, then checked off our names. Great, he said.
Chapter 3: What role does urgency play in increasing sales?
His demeanor transformed from stern to inviting.
Welcome to the fundraiser. Stay in this line. You'll make a left, then security will escort you the rest of the way. The security guard talked into his walkie-talkie to the next post down the road, signaling our car was approved. Pulling in front of the estate was like entering a Bond movie. Lamborghinis, Bugattis, Ferraris, and brands of cars that are too expensive to even speak of.
Old guys with young, scantily clad girls. A-list actors, celebrities with millions of followers who were recording themselves as they arrived, talking to their iPhones to their audiences. And us. The fundraiser was $25,000 per ticket to attend, with an invite list of only 100. There was a red carpet and all.
Chapter 4: How can bonuses enhance the value of an offer?
Every year, the fundraiser culminated in a big auction for memorabilia and items some of the business owners in the audience gave away for charity. We walked around looking at the entertainment stations purposely devised to get donors in the giving mood. We saw $10,000 scotches, $500 cigars, pre-released items from major brands that wouldn't be available to the public until months later.
And of course, the most expensive cuisine you could imagine. Layla and I were just soaking it all in. It was a wonderful night. We definitely felt like cool kids. Ben, the CEO of the charity, saw us looking lost and walked over. He took me by the arm and introduced me to some of the other donors. These were all men who were older than me, donating $100,000 and up without a second thought.
The man he introduced me to was one of the charity's biggest donors. He had built an ultra-high-end jewelry and watch business. I'm talking $100,000, $500,000, $2 million plus rare status symbols that people buy only so other .001 percenters know they belong.
Chapter 5: What are effective strategies for creating scarcity?
He had donated upwards of $700,000 in merchandise as prizes for the fundraiser that evening. Alex and Layla, meet George, Ben said. He's been very generous with his time and money to the cause. George, this is Alex and Layla. They're donating a million dollars tonight to After School All-Stars. I figured you are both good people and wanted to connect you two.
Nice to meet you, George said, with calm and weathered eyes. He was in his late 60s, tall and sturdily built. You could hear his eastern block origins in his accent. He sounded like a man who had fought tooth and nail to be here, but had softened his demeanor for gatherings such as these.
But the tiger with the teeth and claws remained under the surface, ready to be called upon at a moment's notice.
Chapter 6: How does the supply-demand curve influence pricing strategies?
I felt like I understood this guy. Ben broke the ice. So, George was the one who got me to raise the price from $15,000 per ticket to $25,000. We had more demand than ever this year, but I took his advice. I cut the amount of tickets we sold and raised the prices. That's right, George said, content that his sage business advice had been followed. When demand increases, cut supply.
He perked up slightly because we started talking about money. This man had built his business from nothing and had found ways to sell things for extraordinary profits by understanding human psychology. I had long learned about supply and demand, but this guy was using its psychological underpinnings to fuel a fundraising.
You could take the tiger out of the jungle, but not the jungle out of the tiger. People want what they can't have.
Chapter 7: What is the significance of deadlines in driving consumer action?
People want what other people want. People want things only a select few have access to. He was dead right. They had raised an extra $1 million that night before the event had even started by cutting the supply of tickets and raising the prices. On top of that, all the people were more qualified than ever to be big donors.
The night ended being up the most successful night in the charity's history, raising nearly $5.4 million from only 100 people. That's $5,400 a head. Each of the items was auctioned off as a one-of-a-kind item, and if you missed it, you'd never have a chance to buy it again.
Arnold even threw in some bonuses when two people would get high enough in the bidding, allowing the charity to get both donations. It was a masterful display of human psychology at work in a setting where people knowingly overpaid for products. The products remained unchanged, yet within this setting, an item that wouldn't sell at a different venue for $10,000 sold for $100,000.
That's how powerful scarcity, urgency, and bonuses are.
Chapter 8: How can you implement urgency and scarcity in your marketing?
And breaking down how to use them to further increase demand for your offer without changing your offer is the purpose of this section. Author note, other persuasion powers at play. Scarcity, urgency, bonuses, and guarantees were not the only persuasion tools being employed to get egregious prices at the fundraiser.
They also use commitment and consistency, status, peer pressure, goodwill, celebrity endorsements, competition, et cetera.
However, scarcity, urgency, bonuses, and guarantees are the four that I'll be breaking down in this book as I believe they're the ones that belong with the offer and less with the actual selling, which I will talk about more in depth in Acquisition Volume 4, $100 Million Sales. The Delicate Dance of Desire. Pictured in the book is the supply and demand curve.
Fundamentally, all marketing exists to influence the supply and demand curve. We artificially increase the demand for our products and services through some sort of persuasive communication. When we increase the demand, we can sell more units. When we decrease the supply, we can sell those units for more money.
The perfect profit combination is lots of demand and very little supply, or perceived supply. The process of enhancing your offer is designed to do both of these things. Increase demand and decrease perceived supply so you can sell the same products for more money than you otherwise could and in higher volumes than you otherwise would over a long enough time horizon. The new supply-demand curve.
Pictured in the book is the curve that has been shifted to the right by bonuses, scarcity, urgency, guarantees, and naming so that you can get more units sold at higher prices. Author note, this assumes a regular business who is not trying to gain mass market penetration for some other strategic advantage. Desire comes from not getting what you want.
In fact, I heard this quote that I love from Naval Ravikant. Desire is a contract you make with yourself to be unhappy until you get what you want. It follows, therefore, that we only want things we do not have. As soon as we have them, our desire for them disappears. Therefore, if we seek to increase the demand or desire, we must decrease or delay satisfying the desires of our prospects.
We must sell fewer units than we otherwise can. Let that sit with you for a second. Consider this example. We promote some two-day workshop that is upcoming. First, we whisper that it's coming. Then we tease it with some benefits. Then we shout that it's launching in a week. Then, when we launch this amazing workshop, we have two supply-demand scenarios.
Scenario one, we sell 10 units at $500 each. Sell the entire pyramid of demand at a price that everyone says yes to. Scenario two, we sell two one-day workshops one-on-one for $5,000 each. We skim the top of that pyramid with 80% of people not being able to purchase or choosing not to. It's worth noting that each of these prospects have different buying thresholds.
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