The Perfect Offer: 3 Key Components to Get It Right.
Everyone who has a skill or expertise they can sell to solve a problem for another person. This can become the perfect offer. Which has the potential to earn a lot of money (and also deliver a lot of value.)
Your offer is the way you package the result you give to your clients using your expertise. To be really successful, the client will see the value of the result you offer and think “now that’s a good deal” or “that solves my problem”
Every offer you make must be specific about:
- WHO you serve
- WHAT you do for them
- HOW you do it.
By the end of this article, you will know how to create your own perfect offer that will practically sell itself.
A Few Offer Secrets:
- Charging less than you deserve will lead to burnout and frustration
- There are guaranteed millions of people who need your “expertise” but your offer is not set up properly to hook them.
- The right offer, at the right time, at the right price can solve any one’s problem in life, business, relationships or health. (do the work and your offer will be meaningful, profitable and long lasting)
Economics of a Good Offer:
After you read this you might realize you are undercharging for what you are offering
When you do this, you quickly realize you are doing too much work for what you are getting paid. You could be making less per hour than the minimum wage.
These are the components that will allow you to charge more for your offer.
Size of the problem
You can’t solve little problems and charge big fees. You must solve big problem to charge big fees
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How long the prospect has had the problem
You target market needs to be people experiencing the problem for a while. If they only had the problem for a few minutes, they won’t be willing to pay much for your solution.
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Complexity of the problem
Think about mowing the grass or shoveling snow. There are hundreds of kids that will do that for $20-$30. Now, thinks of a cancer doctor.
The complexity of the problem and training required to solve it are inversely correlated to the amount people will pay to for your offer.
Low sophistication means lots of people can do it and has lower price
High sophistication means very few people can do it and can charge higher price.
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How certain are you that you can solve the problem
If you are 100% certain you can solve the problem you can charge much more than if you are 20% certain you can solve the problem
If you are certain you can solve the problem, why do you charge so low for it?
Low prices tell the market you aren’t certain.
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How fast can you solve the problem
You can charge more if you can solve the problem in a week vs. 10 weeks.
The freelancing business model is mostly broken. Think Fiverr. $5 to solve a problem in a few hours or days.
A Perfect Offer For The Prospect
- The problem is real and painful to the prospect
- The prospect has been trying to solve it for quite a while
- Your results are virtually guaranteed (very high certainty)
- Results happen quickly (as opposed to weeks or months)
- Fee is split up into results (half now and half later)
This creates your irresistible offer that the prospect can’t say no to.
And keep this in mind. Your offer will change over time.
This is normal and expected as you define your market better, you become more confident and you define your prospects pain better.
Let me show you what I mean with this illustration.
The Perfect Offer
The bottom left: This is where many offers start. Low priced to the mass market.
The top right: This is where you want to be. Top dollar offer with very defined niche.
Left axis (axis): your offer or what you are doing for your clients.
- Low sophistication means low price
- High sophistication means high value and high price.
Bottom Axis (line): your clients or who you are doing it for
- The bigger the problem, the smaller the market and the higher the offer is priced
Your objective over the course of your business is to evolve to the top right. Be careful about serving the wrong who, doing the wrong what and not making enough money.
This will make very difficult to optimize how you serve your clients.
How My Offer Changed Over Time:
A few years ago, it was very popular to start a Facebook advertising agency doing Facebook ads for clients. I started DigimarketingRX to serve loan officers and had some immediate success. And even got a restaurant owner as a client. It was great for a while.
Then it quickly became a tedious job because I was making very little real profit for the time it took. And it was not high value to the client even though I could demonstrate incremental revenue, small business owners either could not handle the incremental leads (loan officers) or worried about spending money on marketing activities.
More recently, my offer and services shifted to being a business consultant focusing on larger business owners (over $1 Million) with very specific business problems. I now help online business owners get more revenue by improving their online sales process.
The discovery process I use identifies the “gaps” in a business owners sales process. Typically, these “gaps” can be corrected with a simple marketing tool and revenues improve 20% immediately. And because this is a high value service, I can charge a higher fee. It’s a win win proposition. And established business owners appreciate and see the value.
The Lesson:
Implement these three steps to create your perfect offer and you will end up solving bigger problem and getting paid what you are worth while having to do less work.
To do this you have to be willing to learn, grow and transform what you are doing to match the problems the market has and still enjoy what you are doing.
As you change the WHO you serve, the WHAT you offer will naturally change too. But always remember to optimize the HOW you deliver result too.
The Point
The best way to know what to offer your market is to get on the phone and ask them.
That’s what I do now.