Transcript for:
Business Offer Strategies

Acquisition.com Publishing is proud to present 100 million-dollar money models, how to make money, written and performed by Alex Herozi. Dedication: What people have said about Alex Herozi. Alex is my husband, Leila Horosi. I have known many people. Alex is one of them. People who know Alex. Alex has said things people have heard. Friends, Alex is better at some things than others. Alex's favorite teacher. Alex wrote a book. I have read many books. magazine critic. Guiding principles. Risk comes from not knowing what you're doing. Warren Buffett. More important than the will to win is the will to prepare. Charlie Mer. A quick word. Ila. I wrote this dedication 6 years ago. I want to thank my partner, my ride or die, Ila. You found me at my absolute worst, and you have fought beside me shoulderto-shoulder ever since. You said you would sleep with me under a bridge if it came to that. And I have not forgotten. You stood tall when everything was crumbling around me. I would go to war with you. I would die for you. If the world were a hurricane, standing with you is like being in the eye, calmly observing the storm raging around us. There's no one else I'd want by my side to fight the battles that come. Being with you makes the stars look within reach. Here's to a life filled with the impossible. And 6 years later, nothing's changed. Trevor, as iron sharpens iron, so one person sharpens another. Proverbs 27:17. It's a rare and wonderful thing to have the smartest man you've met call you a friend. If ignorance is the only true evil and knowledge the only true good, you, my brother, are a force of good. The world is better with you in it. And I will fight to keep it that way. My life wouldn't be the same without you. I wouldn't be the same without you. I doubt I will ever be able to repay the favor that you have given me by being in my life, but I'll live trying. Thank you for giving me a gift far more than a paragraph at the beginning of a book can ever repay. We will put our brick in the wall. Here's to a once in a generation friendship. Filia start here. The world breaks everyone and afterward many are strong at the broken places. Ernest Hemingway. The first picture you see inside my book is a picture of me standing in front of my gym and a picture of where I used to sleep on the gym floor. I stared at the ceiling in the dark alone. I had no one to go to. It sounds cool when you tell the story later, but it didn't feel that way. I was terrified. I went against my father's wishes. I skipped out on business school. I spent all my savings. Everyone I cared about told me not to do it. I was the idiot that gave up on a good career. I thought I would look forward to the struggle. But it got real fast. Kids partied all night in the parking garage above me. They'd race over the steel dividers. It sounded like gunshots echoing in my concrete bedroom. And as soon as I started to pass out, I'd get jolted awake by another bang, bang, bang, bang. I finally gave up trying to sleep at night. I settled for midday naps in the utility closet. Then in the dead of night, I worked. I had to make money. My gym sat across the street from a large storage unit business. The owner became one of my few members, only out of convenience. A few weeks after he joined, he pulled me aside after his workout. I've been doing a little math, he said. It looks like you're struggling. I tried to hide my embarrassment, but I failed. All right, kid. Let's grab breakfast tomorrow. I hesitated thinking about my bank account. Before I could answer, he said, "Don't worry. My treat relief." The next morning, we met at the local diner around 5:00 a.m. As the waitress brought our coffee, he asked, "How much time you got left to live?" Huh? How much cash you got saved up? About 5 grand. How much time does that give you before you run out? I thought about it for a moment. About a month. Tough. How you getting customers? I have a $39 six week special on a discount site. How many customers have you gotten? Four. Looks like you've got a problem that you need to solve fast. He let the statement sink in. Then I saw a grin spread across his face. Let me ask you a question. How much does a free month of storage cost? I shrugged. Uh, nothing. He took note of my confusion and said, "All right, let's go for a ride. I'll explain it at my facility. As soon as we walked in, the girl at the front desk greeted us. Good morning, gentlemen. Good morning, Judy. How much does a free month of storage cost? He asked. 127, sir, she replied cheerfully. He smiled and he turned to me. Want to know how? I nodded. He took me through the office and down one of the rows of freshly painted units. So, we advertised the first month is free, and it is. But what's the first thing you need after you get a storage unit? I don't know, I shrugged. Exactly. Nobody really does, but I do and I help him out. So, let me give you a hint. He pointed towards the lock on the door. Right. A lock. Yeah. And not one of those flimsy locks that kids use on their lockers. Those won't fit here anyways. Besides, any goon with bolt cutters can get through those in a second. But not one of these bad boys, he tapped the lock to emphasize his point. Yesesh, it looks like it. Where do you even get one of those? I asked. Funny you should ask. I've got a whole storage unit full of these. Yours today for just 47 bucks. Okay, okay, I get it. They come in for the free month, but what good is the storage unit unless you can lock it? Exactly, he said. I get it. So, where does the other 80 bucks come from? Great memory. So, what else are you going to want? I shrugged. Well, if you have stuff to store, you're going to need boxes to store it in. But never fear, we've got boxes with tons of different shapes and sizes to fit all your storage needs. We also offer tape, labels, and heavy duty markers to make sure you know exactly what's in every box and where you put it. Super handy. Oh, duh. That makes perfect sense, I said. What else are you going to need? He asked. I don't know. Uh, help moving it. Yes. Now, we don't actually offer in-house moving services, but we have an affiliate relationship with a local moving business and make a kickback. And if you want to move all your stuff yourself, that's fine, too. We have dollies, hand truck, straps, and other useful tools available for a fee. After all, why buy a bunch of stuff you only use once? What a waste. Oh, yeah. I didn't think of that, I said. What else are you going to want? He asked. Uh, I really don't know. Well, what you store is valuable, right? At least valuable to you in some way. I mean, if it wasn't, you'd send it all to the dump. So, you're going to want some insurance in case something bad happens. Now, I already give $500 of free insurance to all customers. But if you have one of the special locks only I offer, I'll bump it to $100,000 for only an extra $10 a month. He puffed with pride. Dang. And all that adds up to 127 bucks. Yep. But we're not done yet. You know what always seems to happen. Onto his game now. I played along. Beats me. What happens? Everyone has way more stuff than they think. And they always rent too small of a unit. In fact, it happens so often we always offer one size up. They get the space they need and we make a few extra bucks. It works out for everyone. Wow, this is pretty cool. I didn't know any of this stuff. Of course not, he said. Why would you? Fair enough. But how do I use this to grow my gym? I asked. Yeah, I've been playing this game as long as you've been alive. And when you figure out how to make money in one business, I mean, really figure it out. You see ways to make money in any business. And one thing's for sure, the longer you play, the more you learn. Wow. So, you've had this place for 23 years. This place? No. This is just one of my newer locations. You have more than one? I asked. I have 27. Oh crap. I felt 2 in tall. Anyways, I got to get to work. You know your way out? He pointed to the door. Yeah. I chuckled. I think I could make it across the street. 2 and 1/2 years later. I now had six gyms. I had leveled up. I wanted to level up again. So, I paid $25,000 for an hour of time with a famous marketer. I had never spoken to him, but I knew his stuff like the back of my hand. I had one goal for this call, for him to help me scale my gyms. After brief introductions, we dove in. So, yeah. And that's how I open my gyms at full capacity on day one. I put $3,000 down for a lease and then run a few days worth of ads. I sell customers in the empty building. Then the cash from those signups goes towards more ads, equipment, paint, flooring, furniture, signage, and whatever else the location needs. Doing it this way, I've opened up a new location every 6 months with no debt. Wow, so cool. Explain it to me in a bit more detail, would you? His business was making millions of bucks a month. Those numbers blew my mind. And he wants to hear how I advertise. I beamed with pride. I advertise a free sixe challenge until I get about 20 leads a day. Got it. Keep going. He said about half the lead show up for appointments. I sell half of those who show into a $600 program. So about 25% of my leads become paying customers. I also get about another 80 bucks in profit per customer from supplement sales. Not too shabby. Agreed, he grunted. So, you make like 680 bucks per customer before you even open your doors. Pretty dang good, but you left something out. What did I leave out? How much you paying per lead? Oh, five bucks. If a deafening silence ever happened in my life, this was it. He stuttered a bit. So, you put $1 in and get $34 out in 48 hours? Yeah. Is that good? I asked. It's amazing, he said. Do you have anything happening on the back end? I grinned ear to ear. Yeah. A few weeks later, I tell them that they can get their $600 back as credit if they choose to sign up for a year. Twothirds of signups convert into memberships. So, I end up with a full gym and $20,000 a month of recurring memberships for $3,000 down. Then, I rinse and repeat. Wait a second. You do all this in 30 days? Yeah, pretty cool, right? He rubbed his eyes. You shouldn't be running gyms. Oh, God. I thought he was going to compliment me, but he told me I should quit. My mind raced. Alex, he said, snapping me back into reality. You have a level 10 skill set and a level two opportunity. Okay. Well, what should I do? I asked. You shouldn't be running gyms. You should be showing other gym owners how to do what you just showed me. I hated the idea of giving up on what took years to build. But he made a lot more money than I did. I figured if I ignored his advice, I may as well burn my money. So, I took his advice. Over the next 9 months, I closed down my newest gym and sold my other five. That gave me all the time to go all in on my new company, Gym Launch. Over the next two years, I flew around the country turning gyms around. Then, after 30 plus turnarounds, I switched to a licensing model. I no longer flew out in person. Instead, I helped them follow our proven model to fill their gyms and increase profits. A small market to be sure, but they were starving, some literally. But once they filled their gym in 30 days, they told their friends. Gym Launch took off like a rocket. It was wild. Over the next 5 years, I took over $43 million in owner distributions. Then, I sold 66% of the company at 46.2 2 million in an allcash deal. With that deal, I crossed $100 million in net worth at age 31. And to be clear, no one was more surprised than me. From there, my wife and I founded our family office, Acquisition.com, to invest in businesses we know how to grow. Our portfolio, at the time of this writing, does over $200 million per year in annual revenue. It spans brick and mortar chains, software, services, and e-commerce. And even though we worked in many different niches, our companies have all grown using the same principles I share in this book. So, what's in it for you? In a few pages, I took you from sleeping on the floor to crossing $100 million in net worth. So, the natural question is how? Answer: by making more money from customers than it costs to get them. And that's what this book, 100 million Money Models, is all about. Since I've been in business, the landscape has changed more than once, and it'll keep changing. The good news is sound principles help you print money no matter what. I've learned a lot of money models. I cover my favorites here. $100 million Money Models shows already proven offers that you can use today and the instructions to make them happen. Think of $100 million Money Models as a book of winning lottery tickets. All you have to do is cash them in. Also, I want to make something clear. These are my private notes. If it's here, I've made money with it. These chapters contain my observations and experiences with different businesses from local chains to physical products to services to education to software and so on. And they were scattered everywhere over the years until now. This is my cookbook for making money. How this book is structured. This book teaches you one insanely profitable thing. How to build a $100 million money model. With a $100 million money model, you make so much money in the first 30 days that the cost of getting more customers will never be a problem again. With so many customers, you'll be forced to work on everything else in your business just to keep up. A problem for another book to solve. Winky face. Here's the book outline. Start here and problem this book solves. You just finished it. Section one. What's a money model? Coming up next. Section two, attraction offers. Section three, upsell offers. Section four, downell offers. Section five, continuity offers. Section six, make your money model. That's it. Easy peasy. Pro tip. Faster, deeper learning by reading and listening at the same time. Here's a life hack I stumbled on years ago. If you listen to an audio book and read the physical book or ebook at the same time, you read faster and remember more. You store the content in more places in your brain. Nifty stuff. This is how I read books worth reading. I also do both because I struggle to stay focused. If I listen to the audio while reading it, it helps me avoid zoning out. It took me two days to record this book out loud. I did it. So, if you struggle like me, you don't have to anymore. If you want to give it a try, go ahead and grab the audio version and see for yourself. I've made my books as cheap as the platforms let me, so this isn't a ploy to make some extra coin. I promise. I hope you'll find it as valuable as I have. I figured I'd put this hack early on. This way, you'd have a chance to do it if you found the first chapter valuable enough to earn your attention. Pro tip: hack for finishing books. I get distracted easily, so I need little tricks to keep my attention. This one helps me a lot. Finish chapters. Don't stop in the middle. Completing a chapter gives you positive reinforcement. It keeps you going. So, if you meet a tough chapter, finish it so you can start fresh on the next one. Section one, what's a money model? Hermosi has the highest return on advertising of any business using our advertising tracking platform by a mile. He has the biggest discrepancy between dollars spent and dollars earned and we only work with businesses spending at least 250,000 per year on marketing or more. So these are the cream of the crop marketers and his numbers are in the stratosphere by comparison. Alex Becker CEO Hyros December 2019. Hello sir, can I have your ID so I can look up your reservation? The car rental agent said smiling. I already had my ID in hand ready, so I slid it across the counter. H, it looks like we don't have your car reserved. We have an equivalent car, though, and you're a big guy. Would you prefer a roomier pickup instead, blinking a few times? Yeah, that sounds nice, I said. I've got you down here for 3 days. She cocked her head to the side a bit. Would you like to have a late return so you can turn in the vehicle at any time during the day without worrying about late fees? I pulled up my schedule on my phone. Yeah, we have an evening flight, so that sounds good. Great. Give me a second. Just putting that in. So, would you like better insurance to cover any bumps and scratches on the car? It covers any and all damage to the vehicle during your time. Nope, I'm good. No plans on drag racing while I'm here? I joked. So, only the minimum insurance then? Yeah, that's all I need. Okay, then. I'll have your keys in a second. Did you want us to take care of fuel so you don't have to worry about filling it up? You can return it on empty and not worrying about paying a fee. We do it for $3.75 a gallon. What's gas cost around here? I asked. About 350 a gallon. She replied cheerfully. Sure, why not? I hate filling it up when I'm rushing to catch a flight. All righty then. Here's your receipt. Just go around the corner and your truck should be halfway down to the left. Enjoy your trip. As I walked, I glanced at the receipt. It stopped me in my tracks. I could only laugh at myself. I came for a $19 a day car and I left paying $100 a day. a 5x difference. And that's the power of a well-designed money model. They knew everything I wanted before I asked. And when they asked to solve problems I didn't even know I would have, I accepted. A money model happened. A money model is a sequence of offers. At their core, we find every opportunity to solve a customer's problems and then offer to solve it. For that reason, money models tend to have many offers in a specific order. If you offer the right thing when customers realize they need it, you can make as many offers as you like. This is the rental car company's money model stated plainly. Offer one, vehicle upgrade. Offer two, late return. Offer three, premium insurance. Offer four, minimum insurance downell. Offer five, prepaid gas. So, yeah, I paid more, but it also solved more problems. Let's break down the problem she solved. First, she solved my big man in small car problem by offering a vehicle that had more space. Then, she solved my late checkout problem by offering the flexibility to keep vehicle longer. Then she solved my worries about dinging the car problem by offering insurance to protect against it. Then she solved my risk of missing my flight problem by offering a way to prepay for the gas ahead of time so I wouldn't have to do it on my ride back. And all of those things cost money that I was happy to pay. The rental car company thought out every nuance. They thought about every problem then made their solution available to me. They offer solutions for higher fees and hassles I might have had later for smaller fees in total right now. As a result, my $19 rental became a $100 rental. I paid more money faster. And now we can see why rental car industry brings in billions in the United States alone per month. A successful money model. Beware. Bad money models kill businesses. It costs many businesses more to get somebody to buy a thing than they make in profit off the thing. In other words, they lose money getting new customers. That's a big problem. And here's what happens. They spend money to get customers. At the end of the month, they realize they spent more than they made. They cut back on advertising. They get fewer customers than they can handle because they can't afford them. Then cut advertising altogether. Float the business with personal cash, loans, credit, and then pray for profit. Sell percentages of their business just to keep the lights on. Wait months or years to make their money back, if ever. Fall further and further behind until finally they lose it all. But it doesn't have to be that way. There's plenty of money. You just have to go get it. In traditional business, the slow drip of profits from lots of customers eventually pays for a single customer. This drip starves the business of cash. It means they can only get customers through advertising if they already have lots of customers. Big companies or small companies with investors can do this because they have the money to burn. Think about it this way. If you spend $100 in advertising to get a customer and make $500 in profit from them, that's a great deal. You should take it all day. But what if it takes you two years to make your cash back? It's a great business if you already have tons of cash in the bank. Otherwise, you're going to run out of money. That leaves you with two options. Option one, wait two years to get paid and pray you don't run out of money. Option two, get paid fast and grow as much as you darn well please. A good money model is option two. Author note, make enough profit to cover your cost in 30 days or less. I like to cover my cost of getting a customer within 30 days. Main reason any business can get interest free money for 30 days in the form of a credit card. If you clear your balance before the end of the month, it works just like normal money. So you can use credit to get a customer, pay it back, and then use it again to get the next customer. And if you can pay it off before 30 days, you can do it again. Rinse and repeat. Good money models make millionaires. If you make more offers and people buy them, you make more money. If you make more money, you can use it to get more customers. If they pay you that money faster, the faster you can get those customers and stay profitable. But what if you make your customers twice as valuable? You get twice as many of them, and you get those customers at twice the speed. Your business grows eight times faster. And if you triple them, your business grows 27 times faster. See where I'm going with this? You can get really big, really profitable, really fast with just a few changes. And that's exactly what I'm going to show you how to do. Next up, money models are a sequence of offers. Different offers solve different problems. So, if you want to win, you have to figure out what to offer next. To figure that out, you've got to understand the four types of offers. The four types of offers that make money models. Stop being poor. Paris Seldon. The limit does not exist. Lindseay Lohan as Katy Herren in Mean Girls. Making one offer works better than making none. And making more offers works better than making one. Combining offers in a sequence makes a money model. My money models combine four different types of offers. Four types of offers. Here are four types of offers. Attraction offers, upsell offers, downell offers, and continuity offers. all improve our money model, but they do it differently. They work great on their own, but together they make your business unstoppable. If you look at a great business, you'll see different versions of these offers as core components of their money-making machine. You can use one, two, multiples of one, or all four together. You can combine them however you want. But when I look at my most profitable businesses, I use all four. Here's why. If you don't have an offer for getting customers, you won't get as many. But let's say you do. If you only have that one thing to offer, you won't make nearly as much money as you could. So, if you have something to offer next, an upsell, you'll finally get some cash, but you still won't make as much money as you could because lots of people still say no. So, you turn those nos into yeses with downells, and that works fine. But, it would be even better if we get that extra cash guaranteed to come in month after month. So, you make a continuity offer to top it off. That's how I like to do it. So, that's how I structure these sections. I start with attraction offers because if you're not getting customers, you need one of those first. Then we cover upsell offers followed by downell offers. Then to finish the four types, I show you my favorite continuity offers exactly how I learned them. How each chapter is structured. Here's how the rest of the book reads. One, the story of how I first learned this money model. Two, a description of how the money model works. Three, a few examples of how this money model works in different industries. Think of how you could use money model in your business. Four, important notes and tactics that make the money model work. These tidbits help you execute the play like it's your hundth time doing it on your first try. Five, a summary. All the important points about the money model, plus some extra thoughts sprinkled in about how to make the money model work even more profitably. Important notes. All right, before I release this pile of golden nuggets, I need to make a few things clear. Number one, all businesses have money models. It makes a business a business. Switch the poor person mantra of this won't work for my business to the rich person mantra of how will I make this work for my business. They all work. Be creative. Two, some money models work better in some businesses than others. They're just different ways to offer stuff. If you just try and copy what they do, you'll be disappointed. To make it work for your business, you have to design your own. But don't worry, I'll show you how. Three, if a customer asks for their money back, give it back. Avoid the headache. And if you made a goof, fix the goof. Don't be a silly goose. Treat customers well. Spend the time and resources getting a customer better fit for your business. Four, hard selling is for weak products. If someone doesn't want something, that's okay. Don't convince someone against their will. Make offers available at the time your customer has a problem, and you'll be ahead of the competition. If they don't want it, no sweat. Find somebody who does. It's a numbers game. Five, obey the law. I learned these plays in different situations from different people using it on different platforms in different times in different places following different rules. Advertising laws change all the time and they tend to only get tighter, especially when it comes to the word free. Check with lawyers to see if an offer you want to make is legal or not. This book is intended to be money's inspiration, so use it that way. Six, be transparent. State the facts, and if the facts aren't compelling, change reality to make them compelling or learn to frame them in a way that is. Don't lie. You'll short change yourself long term. And unlike credit card debt, you can't file bankruptcy to erase a bad reputation. Once you have a bad one, it sticks for life. Number seven, any offer can be used on its own at any time in any order. A business works as long as it makes a profit. Most offers in this book could meet the minimum requirement on their own. When used in the right sequence, and at the right time, they make a $100 million money model. I've got big dreams, and I bet you do, too. So, we're going to use them all. With that said, let's go for a ride. First up, attraction offers. Most businesses spend too much to get customers and make too little from them. They are cash constraint. But you use cash to get more customers, and I like more customers. So, I always solve this first with an attraction offer. Free gift bonus tutorial on the four types of offers. If you want a more in-depth look at how we think through layering different offers, go to acquisition.com/training/money. It's free and publicly available. My goal is to earn your trust, and trust is built brick by brick. Allow this training to be the first of many bricks. Enjoy. Section two, attraction offers. How to turn eyeballs into money. Attraction offers generate leads and convert them into customers. They turn advertising into money by offering something free or at a discount. We do this because everyone wants a great deal. In a great deal, customers get far more value than the price they pay. Strangers can only take your word on the value, but they absolutely understand the price. For that reason, discounts make anything a great deal to just about anyone. And the greater the discount, the better the deal. The greatest discount of all being free. Free and discount work interchangeably. First off, anytime I say free, you can use discount or $1. Anytime I use discount, you can also use free or $1 and so on. They all discount a product to some level. Even if you discount 100%. If you can imagine a way to use a discount or a free offer, then you can do it. After that, I'll let you use your noggin to exchange them as you see fit. So, how do you make money by offering free stuff? Think about it this way. People look for one thing and then buy another by accident all the time. Attraction offers get them to do it on purpose. But what's a better deal than free stuff? More and better free stuff. One free thing is awesome. Two free things are awesomeer. And maybe to get those two free things, they have to buy one. That's how we make money on free stuff. In this section, I go over my five favorite ways to make money by offering free stuff. Number one, win your money back. Number two, giveaways. Number three, decoy offer. Number four, buy X, get Y free. Number five, pay less now or pay more later. Let's make some money. Free gift bonus tutorial on attraction offers. I made a free video for you on how to attraction offers work. If you want it, just go to acquisition.com/training/money. There's no opt-in required. Enjoy. Win your money back. If you do X or achieve Y within Z days, you can get it free. June 2013. I was in a room full of experienced gym owners and I was the new guy. We all took turns talking about what was working well. That's when Danny piped up. Yeah. So, as you guys know, I've been struggling with sales and I think I got it figured out. I had this pain in the butt guy who wouldn't buy anything. He knew he needed it, but he also said he needed more accountability. So, we were going back and forth and he finally came up to me with this idea. He said, "How about this? I'll give you $500. You train me for 8 weeks and if I hit my goal, I get my money back, but in return, you can use my results to market your business." Fair enough. I figured, what the heck? He wasn't going to buy anyways, so I said, "Sure." "So what happened?" I asked. "He hit the goal." So did he give him his money back? "Yeah," Danny said. I cut in. "So what then?" He just left. "That's what you'd think, but he ended up using the money to buy more time." "Huh, seems decent enough. What about marketing his results?" Dude, making his workouts public and posting his before and after pictures brought 13 referrals. Oh, that's insane. Now we're talking. Yeah, I know. I offer this to everyone now. The results are way better. People love the offer. and all the free advertising they do gets us their friends and family to join, too. I'm making more money than ever. This was the first time I ever saw an offer like this. I updated it over time, but the course stayed the same. Pay now with a chance to get your money back later. I used it for private training, group training, private nutrition coaching, and group nutrition coaching. And once I saw how well it worked with my customers, I started putting the offer in my ads for new customers. My cost of getting customers went way down and my leads exploded. Description: A win your money back offer works like this. You set a goal for the customer and tell them how to reach it. If they reach it, then they qualify to get their money back or get it back as store credit. This offer grew my gyms better than any other. It was also the first grand slam offer Gym Launch taught to gym owners. It has tons of flexibility. So, if you want to get more cash, get more customers, and get them better results, nothing beats it. To win your money back, the person has three options. Get results, take actions, or both. And to make this work, you have to make the results and actions simple to track. Results here. No matter what they do, if the customer gets the result, they win their money back. For example, making X dollars a month, getting Y customers, losing Z pounds, etc. Basically, they bet on their ability to reach the goal. Actions. Here, you hold them accountable for doing actions instead of getting results. No matter what results they get, if the customer does what you ask, they win their money back. For example, attend all sessions, calls, meeting, log progress, take pictures, do assigned homework, etc. Here, they bet on their ability to follow instructions, actions, and results. Here you hold the customers accountable to following directions and getting results. If they do both, they win their money back. Often people wanting to achieve a goal have too few skills to do it. Even if they did bet on themselves, they'd fail. By setting a good goal for them and showing them how to reach it, they have a fighting chance. Here, they bet on their ability to follow directions and that your directions will get them the result. Bottom line, customers put money down. If they do the stuff or get the result or both, they get it back as cash or store credit. Examples: business to consumer offer. Free 28-day blueprint. Deposit X dollars and get it all back if you one, attend all the consulting calls. Two, post your progress in the group once per week. Three, journal daily in our app. Four, attend your feedback session and your transformation session. Hint, calls and meetings become opportunities to make more offers. Next example, businessto business offer. Five customers in 5 days free challenge. deposit X dollars and get it all back if you one send 100 messages a day. Two, report stats on messages sent. Three, attend daily trainings. Four, postfinished homework in group. Five, attend 5day consulting call. Hint, here you offer more, better, or new products and services. Example number three, physical product offer. Put 1 million miles on your car and get a free car. So, you get a free car if you one buy a new car from us. Two, drive the car a million miles. Three, turn it in. Four, take pictures, and be in a press release. Five, we'll credit all your original purchase towards your next car. This was an actual offer by Volvo years ago. Important notes, this offer has generated $1 billion in sales. It works. I have made a lot of money with it. You can, too. One-year Money Back works with new, current, and previous customers. I like to use it with new customers because it offers the steepest discount possible, 100%. I like it with current customers because it mixes them in with new customers. And I like to use it to get previous customers back because bigger incentives get them to come back. It works well with stuff that people start and quit like starting a business, learning new skills, losing weight, building fitness, beauty regimes, self-care, time management, mental health management, etc. It keeps motivation during the early pains of learning. To this day, I've never seen a better way of setting up a program for results. A true win-win. Don't worry, this offer makes some money. If you did give all the money back, this offer wouldn't make money. But it does. First, many won't qualify even with realistic conditions. Second, those who do qualify often stay as customers, but they can only stay customers if they have something else to buy. So, have an upsell ready to apply their winnings to, which I'll cover in section four, even more. Only offer when your money back if you feel okay with giving money back. Refunds are a part of doing business. However, when advertised well, the win your money back offer gets tons of extra customers. And when you give satisfied customers a great follow-up offer, you make plenty of profit. This more than outweighs the refunds. From the data we've collected from thousands of gyms, about 10% of all customers will ask for their money back. If you can't stomach that, don't do this. Offer store credit instead of cash. If you don't want to offer cash back, you can offer store credit instead. My testing showed offering store credit and cash back got the same number of customers, so you might as well offer store credit. But if you still want to advertise free, pair it with an unconditional satisfaction guarantee. Adding the unconditional guarantee never materially affected the people who wanted their money back. Check with legal counsel in your area. Of course, don't take blood money. If someone doesn't want me to have their money, I want it even less than they do. As a personal rule, if a customer asks for a refund, entitled or not, I give it to them. Just focus on getting the next customer. How to create your win your money back criteria. These criteria make or break this offer. Good criteria have three characteristics. One, they're easy to track, so train them on exactly what they need to do or they will mess it up. Bonus points if people already do it. Example, phones already track steps. Word processors already track word count. Cameras automatically date photos, etc. Get customers results. Make criteria likely to get them to their desired results. Realistic criteria do just fine. If you think the criteria looks too easy, you've probably gotten close to realistic. They may take a few tries to get it right, but so does anything worth making. Examples: Attend meetings, workouts, watch videos, etc. Whatever the best customers do to get the best results, make everyone do it, and they'll get great results, too. Three, advertise the business. Make advertising the business part of your criteria. For example, posting about their participation, tagging in social media, referring or leaving reviews and testimonials. How you apply store credit. This is important. When customers win their money back, offer to apply it over a longer period or a bulk package. Just offer to apply it to something that costs more than their winnings. In my experience, this keeps customers engaged and makes you more money. So, here's what it looks like. You have a product or service that costs $200 a month. A customer wins $600 of credit. Avoid giving them three months free upfront. Instead, apply the $600 over 12 months. So, $600 divided by 12 months is a $50 per month credit. Now, they pay $200 per month minus the $50 credit for a total of $150 a month. To be clear, they can use the credit however they want, but I recommend that you present this first. If they ask to use it upfront, you can share my perspective, which is that people fall off if they don't pay something. A discount over the long haul keeps them engaged over the long haul. So, it's in the customer's best interest to keep some skin in the game. In-depth details on this upsell offer in the rollover upsell chapter in section 4. All meetings and calls provide opportunities to make more offers. Make check-in meetings part of your money back criteria whenever you can and make all meetings required to win their money back. Beyond helping them succeed, they are the best opportunities to make upsell offers. So, after you've checked in, offer what makes sense based on their feedback. The win your money back offer and my gyms had three appointments. Nutrition orientation, which is before pictures, where I'd make a supplement offer. Progress check-in, where I'd make a membership offer. And transformation feedback, which was after pictures, where I'd make a membership offer again. And if they bought the membership at the last meeting, I offered a discount if they prepaid the year. Make everyone a winner. Promote and sell the program as though they will only get it back if they meet the criteria, but about halfway through, make your next offer as if they've already won. You lower the customer's anxiety about failing, and you keep them longer. They'll also love you that much more. It goes something like this. I know you're trying to hit this short-term goal, but what's your long-term goal? Okay, that's great to hear. You get that it's not about this short-term program, but about your long-term results. So, I'll tell you what, to show you how much I want you to hit your long-term goal, I'll credit this program towards the next one. whether you hit the short-term goal or not. How's that sound? And then you sign them up right there for the long-term thing before they even finish. At the end of the program, let the losers win. If someone refuses your first upsell and fails the challenge, you can still upsell them again. Here's how. Act like they won. I say something like this. Don't worry about it. You started. That's the biggest victory of all. And even though you didn't hit your short-term goal, you met ours, which was finishing what you started. to show you that we're in this for the long haul. We'll credit your entire deposit towards staying with us long term. That way, you get your money back and you can still hit your goal. How does that sound? You'll turn that frown upside down and they'll love you for it. Remember, we don't get customers to make a sale. We make sales to get customers. The one-year money back offer has a simple structure with lots of flexibility. At its heart, you offer a product or service and a way for customers to get their money back if they actually use it. Then, if they use it the way you suggest, they will get good enough results and stay open to more offers and/or longerterm commitments. Summary points. Win your money back is magical for businesses that require customers to put in continuous effort to get their ideal outcome. The win your money back offer rocks because you get loads of upfront cash. You get more customers to say yes to you since it's lower risk. You get massive results for customers. You get more long-term customers. They advertise your offers to get you even more customers. Making some meetings a part of getting the deposit back give great opportunities to check in with your customers and make more offers specific to their needs. Everyone thinks businesses make money on people who fail this program. No. The real money comes from people who succeed with it and you have something else to offer them. Trust me on this one. The more results you deliver, the more money you'll make. Think long. Make the refund criteria easy to track, aligned with the customer's goals, and helpful to the business. Only use a win your money back offer if your refund rate is currently below 5%. Otherwise, fix your product before doing this. You'll risk getting too many refunds. Put the store credit towards another, preferably more expensive offer. You want them to stay customers, so give them the opportunity. You never want people to stop paying you. To make more sales and keep more customers, make everyone a winner in private. That way, everyone stays surprised and grateful when you make your upsell offer. Free gift. Win your money back offer training video. I've made a tremendous amount of money with this offer, and I have more details and stories I couldn't reasonably fit in this book. If you want that, I made a free video for you. No opt-in required. To watch it, just go to acquisition.com/training/money. Author note, send me cool money models you find or use. Submit any really cool money models you see and I'll feature them on my channel and in upcoming versions of this book. I want this book and the online training that's free to expand over time to encompass every type of money model. And I need your help to do it. I will only live one life, but together we can scour the earth for the best money models in existence. Everyone wins. So if you find a cool one, just send it to valuacquisition.com. Follow the same five-step format listed above and you can send any links to it if you can. Make sure to check out acquisition.com/training for updates on new ones. Giveaways. Many will enter many will win. Disclaimer: sweep stakes and giveaways are heavily regulated. Main reason they're exceptionally powerful and when done wrong can become illegal lotteryies. We don't want that. Jail time. No bueno. Make sure you follow all the local advertising laws. This description is no way a guarantee of lawfulness. I take no responsibility for anything you do or don't do as a result of reading this chapter. Oo, okay. Got that out of the way. August 2020, I hopped on the phone with the owner of a fitness certification business to talk shop. In a few minutes, he gave me the rundown about how they certify fitness enthusiasts and help them find clients. Interesting business you've got, I said. How do you get leads? Well, it's pretty simple. We advertise a full ride scholarship for our entire program. People apply with their contact information and then answer a few questions. We ask stuff like, "Why should we pick you for the full ride scholarship? The best answer gets a full ride." But we also do something more. Nice. Keep going. I said, "We give out partial scholarships." "What do you mean? How's that work?" "Well, we often have a clear winner for the full ride, but tons of people have inspiring stories, so I want to make sure they get scholarships, too." Now, I can only give away one full ride, but I can give away as many partial scholarships as I want. And then it hit me. Oh, so lots of people apply for the grand prize and only one person gets that, but the other applicants qualify for smaller prizes, right? So, I make a big deal out of the person who wins the full ride scholarship, but then I call everyone else to let them know they got the partial scholarship. When I talk to them, they're thrilled. Most of them join our program on the spot. So, they don't know the actual price of your thing when they hop on the call. Nope. But they know the value of the full ride scholarship. And then when you present the discounted price of your program with the partial scholarship, it's still a huge savings. Exactly. So, not only do you get tons of engaged leads, but you also get more customers with your surprise discount. Genius. It works really well. We actually have to cap it to make sure we can service all the new signups. Believe it or not, we teach the same play to trainers that we certify. It works just as well to get fitness customers and sometimes even better. Man, I love it. He presented this as an education offer and as a fitness offer, but it's so much more. I'm going to show you how to use it in any business. Free giveaways generate many leads who show interest in your most expensive product. What could be better? Description. Giveaway offers advertise a chance to win a big prize in exchange for your content information and whatever else you want. Then after picking a winner, you offer everyone else the big prize at a discounted price. Giveaways also go by names like scholarship, sweep stake, and raffles. They all mean enter for a chance to win. To run a giveaway offer, you pick a grand prize, pick your promotional offer, ask for contact information and other eligibility criteria, pick what actions you want entrance to take to qualify for the big prize, put the giveaway on a deadline to add urgency, announce the grand prize winner, and contact everyone else. Let's go into each with more detail. Pick a grand prize. Make your grand prize the thing you want everyone to buy. Make sure you assign a monetary value to your grand prize to serve as a price anchor. For instance, if you sell $5,000 worth of value for $2,000, then advertise the $5,000 value. Next, pick your promotional offer. Your promotional offer takes the place of the partial scholarship in the story. You create it by enhancing your core offer with a discount, a bonus, or by minorly changing it from the grand prize in order to ethically justify a price reduction using the grand prize as a price anchor. And the bigger the discount, the more compelling the offer. So, the bigger the value you ascribe your grand prize, the better. Remember, leads entered the giveaway because they found the grand prize interesting. It gets you qualified leads because you offer what they already showed interest in at a discount. Call your promotional offer, the thing you sell, to everyone else, whatever you want for your giveaway. Scholarship, gift card, dollars off, store credit, vouchers, etc. Next, ask for contact information. In exchange for a chance to win, ask for permission to contact them in any way you please for follow-up promotions. Beyond that, I survey for prize eligibility and then ask them to take qualifying actions. So, what's eligibility? If I ask them if they're a fit for my products, like, "Do you own a vet clinic?" or more character/nebased questions like, "Why should you be selected?" Ask for qualifying actions. Those are other stuff entrance do to qualify to win. I also use these to get them to promote my giveaway more or demonstrate higher levels of interest. Example, attending a call or event, making a post, entering a group, etc. Put the giveaway on a deadline to add urgency. Set a date for the grand prize drawing. Make your giveaway more urgent by only making it available for a limited time. I like 3 to 7 days from the day I start promoting it. As soon as leads enter the giveaway, update them daily. First, let them know how long they have left until you announce the winner. You can do this with email, direct messages, text, social media posts, and so on. Do as many times as reasonable. Once a day across all platform works fine. Second, provide value along with your countdown. Show everyone the benefits of the grand prize, how excited they should be, and refer everyone to social proof. Keep the hype alive. Pro tip: Whisper Tea Shop. Once people enter the free giveaway, it may help to think of the countdown like a mini product launch. So, check out the affiliates and partners chapter of $100 million leads for a detailed look on launches. Announce the grand prize winner and start contacting everyone else. Announce the grand prize winner publicly, then message everyone else who qualifies for your core offer privately. The beauty is everybody else qualifies for a promotional offer. Notify them by text, email, and direct messages. In that message, ask them to schedule a call up because they qualified for something. If you need a reason, just say that you found their answers or story so compelling you felt obligated to give them something just for entering. Think of your promotional offer like a participation trophy. To make sure they redeem, add another deadline. Make claiming your promotional offer. The scholarship, gift card, dollars off, store credit, vouchers expire in 7 days. The second content works like the first. Show the benefits, more social proof, and more valuable stuff about your offer. Give them a way to book a call to claim their promotional offer. Explain the cost to value using their discount. My rule of thumb, make your core offer discount equal to 10 to 30% of your gross margins. Say we advertise a grand prize with a $5,000 value and a $2,000 retail price tag. Everyone else gets it for $1,800, a 10% discount off retail. When we let them know they qualified for something, we explain they get $5,000 value for an $1,800 price tag. By comparing the value of the thing to what they pay, a 10% discount becomes a 64% difference in cost of value. Bottom line, remember, everyone that entered the giveaway showed interest in your thing. And if somebody shows interest in a thing that you have to offer, offer it to them. Example, free giveaways. Dentist offer, free Perfect Smile giveaway, grand prize, a free set of invisible braces, $6,000 retail price. Promotional offer, $2,000 gift card for braces. Physical products offer, free year of organic dog food. Grand prize, free year of organic dog food, $1,000 retail price. Promotional offer, $300 gift card for dog food, usable only with a one-year subscription. Services offer, free ultimate giveaway. Grand prize, free one-year package, $5,000 retail price. Promotional offer, $2,000 voucher redeemable towards one year of service agreement. Consulting offer, free 16we turnaround giveaway. Grand prize, 16we turnaround. Retail price, $12,000. Promotional offer, $6,000 partial scholarship. Important notes. Consult legal counsel about how to structure your giveaway. I'm not legal counsel, but I do consider these no-brainers because of the way that I like to do business. Somebody actually has to win the grand prize. Make the grand prize and qualifications to win clear in the rules. Make clear that more than one person can win a prize. Ask your legal counsel about the rest. Eligibility criteria get more customers to buy your core offer. More people will take your core offer if you can make the value specific to them. I ask questions like this to get ammo. Why should we pick you? Why this program? Why now? Why does this matter to you? Why is this important to you? What's your goal? Etc. That being said, the more work you make it to enter, the fewer people will enter, but the more qualified they'll be. So, find your sweet spot. If your giveaway doesn't work, it means your grand prize wasn't grand enough. One of my portfolio companies ran a giveaway. They barely got interest. Their grand prize, tickets to their event, not compelling. I told them grand prizes only work if they're grand. They tried it again with a $50,000 bundle of equipment from a well-known supplier in the gym space, plus their core product for a year, and this time it crushed. Surprise. When you have an awesome thing to give away and you advertise it properly, the leads flood in. And giveaway kind of explains itself. So, if nobody bites, then I suggest you give away something better or at least better for the audience. Give away two prizes for twice the leads. If you give away one prize, that's fine. But if you give away two grand prizes, you can get twice the leads or more. Here's how. Just tell everyone that if someone they refer wins the grand prize, they win one, too. That way, they get endless entries into the contest by referring their friends. This gets more people to refer and work together. This also provides a sneaky benefit. Referrers are invested in the success of their referrals. This keeps quality high. Here's an example I did for school.com, a platform I own for people to build and monetize communities. Refer a winner and you win, too. Many of you are inviting friends to play the games with you. And that's the point, to make business fun. To encourage this even more, we're adding a new incentive. If a person that you refer gets in the top 10, you get to come, too. Aka, if they win, you win. Beyond that, as a reminder, anyone you refer to school earns you a lifetime 40% commission. Everyone's going to come to school eventually, and people can only be referred once. And since you're all early, you have a bigger opportunity to refer. So, I'd encourage you to refer them before someone else does or they come on their own. Imagine referring all your friends to Facebook before everyone was on it. Like that, but cooler because you're actually helping them learn and grow and getting a commission, too. To refer somebody to share your referral link, go here. P.S. You'll have a higher likelihood to win the games if the people you refer already have an audience to give their group an immediate boost. Scarcity. Scarcity. Scarcity. Limit your giveaway by time, number of entries, or both. You can run giveaways for a specific amount of time. Example, 7 days. A specific number of entries, example, 5,000 entries, or both. I like both. I match how many people I let enter. I match how many people I let enter the giveaway with the number of people I have the time and resources to connect with inside 7 days. Any more would be a waste. Urgency. Urgency. Urgency. I add urgency in three places. To enter, to claim, to use. Make how long they have to enter clear in the advertisements. Once you announce the winners, let them know how long they have to claim it. When they do, schedule their call the same day or the next day if you can. Once you let people know they won, tell them how long they have to use it. I like hours, but I have gone up to 5 days. In short, always have deadlines. Have downells available. Some won't or can't buy your promotional offer, even with the discount or bonus. And that's okay. Here's how I approach it. At the start of the call, let them know they qualified for two prizes and that you'll help them figure out which way makes the most sense for them. Then present your promotional offer, aka the discount on the grand prize thing. If they take it, great. If not, then offer the same discount by percentage on any other product you have that makes sense for them. If you have a recurring revenue business, apply their discount over the longest period of time they'll agree to. Then set up their monthly subscription to bill automatically at normal rates after the discounted period ends. Summary points. At their core, giveaways ask an audience to apply to get a high value thing of yours for free. Many will enter, one wins. The rest qualify for discounts on your core offer. Pick a grand prize people want. Give two prizes away if you want more people to refer. Tell them if Tell them if someone they refer wins, they win the other prize. Offer a chance to win the grand prize to anyone who enters and qualifies. You can get great information from every lead because you can make it part of the entry process. Get information that indicates how your offer will provide them value. This becomes important for making offers later. Advertise your giveaway for 7 days or until the number of leads surpasses the number that you can manage to call in 7 days, whichever comes first. Book appointments with everyone else to claim your promotional offer. Use whatever reason why feels good for you. Put an expiration date on people claiming their prizes to make them more likely to claim them. If somebody says no to your core offer, have another product or service to discount. It may suit the lead better. Free gift. Giveaways bonus training. Giveaways are one of the strongest attraction offers on earth. They're so good they need to be regulated. I mean, who doesn't want something for nothing, right? I made a free video training that covered the topic in depth. If you love this stuff as much as me, you can check it out at acquisition.com/training/money. As always, you can scan the QR code if you hate typing. Enjoy. Decoy offer. Which one do you think will get you the best results? June 2014. John, my second mentor, retired early. He spent his retirement raising his girls, playing golf, and hanging out at his lake house. He was a man who had lived. Once in a while, he'd invite me to his lake house. And on those long drives, he taught me things about life and business I use to this day, like the difference between price and value, the pros and cons of low lowcost offers, high volume, low price business models, differences between recurring subscriptions and one-time transactions, and the art of keeping things simple in business and life. John was great company. I often wish we would drive forever so I could soak everything in. To him, this was just another story to pass the time. But to me, it was a lesson I would never forget. The 5-day, $5 VIP tanning pass. You see, the beauty of the $5, 5day pass is everyone thinks they can get tan in 5 days. And they can, but it's never as tan as they want to get. And if they try to speed things up, they'll burn. So, when someone comes in with a pass, we ask them how tan they want to get. And as soon as they say they want to get a few shades darker, we'll give them the turkey talk. What's the turkey talk? John smiled and continued, "Say a Thanksgiving turkey takes 3 hours to cook. We all know what happens if you double the temperature to cook it in half the time. You burn it. It takes at least 5 to 10 sessions to get the color you want without burning. And since they got to take some time between sessions, it always takes more than 5 days. And once they realize that, we say, "Let's just credit your VIP pass towards your first month. Why buy so many $25 day passes when members get unlimited access for just $19.99 a month?" They immediately see the value and think to membership. Easy as that. 5 years later. "Hey boss, we've got a problem." "Oh boy, what's up?" I said, "Our fitness leads have gotten way too expensive. The guys who can sell are still making it work, but most of them are barely breaking even. Dang. So, it finally happened, I said. I pressed my hands to my forehead. I knew this was coming. And the truth is, I was dreading it. I tried for weeks to put a spin on our previous offer. A new or interesting twist that would buy us time. But our test had failed so far. You got any offers up your sleeve? He asked. I racked my brain, then remembered the $5 VIP tanning pass. That might just work. Why don't we offer something super cheap to get leads, but when they come in, make them a crazy offer that costs more, but is 100 times better? They can still take the cheap thing, but we'll just explain that they'll get way better results with the extra accountability, nutrition, etc., "Yeah, I can run something like that," he said a few weeks later. "Alex, I think we cracked it." "Awesome. Walk me through it." So, we give two options. The first option is free. I give one session per week. The second option is an ultimate version for $3.99. It comes with unlimited sessions, one-on-one coaching, more personalized stuff, and a guarantee they'll get results or they repeat the program for free. Oh man, that guarantee is solid. What's the take rate? We got 70 to 80% taking the 3.99 option. We're crushing it. Awesome. Let's scale it. John was a brilliant salesman and patient teacher. His philosophy of giving customers what they want now so you can give them what they need later shaped many ways I do business. He also inspired the offer that saved my gyms. But the most valuable thing I learned from him was this. You have to know what gets results for customers better than they do. This makes our premium offer the clear solution. And making our premium the clear solution is what decoy offers are all about. Description. Decoy offers advertise something free or discounted. Then when the lead asks to learn more, you also present a more valuable premium offer. The premium offer provides more features, benefits, bonuses, guarantees, and so on. By putting your decoy offers and premium offer side by side, leads can see how much more valuable your premium offer is. I like decoy offers because they get more customers overall. They either take the decoy version or the premium version. If they take the premium version, great. If they take the decoy, also great. It gives you time to upgrade them rather than just losing them immediately. But either way, you can close everyone. This makes it cheap and profitable. Get new customers and any business can do it. Here are the steps to make a decoy offer. Advertise a lesser, smaller, or simpler version of your premium offer as a decoy. Then when leads engage, offer both options, but emphasize the premium one. Examples: lemonade stand offer, physical products. Attraction offer, free week of lemonade, or $1 week of lemonade. That would be the attraction offer. Decoy option, you can have this water and powdered lemon and corn syrup. or premium option, the organic, all-natural, vegan, gluten-free imported Italian lemons, which are cold pressed and shipped straight to your door. You'll never need to waste time coming to the store again. It'll have you feeling like a Labrador puppy chasing butterflies all day. It also comes with other flavors like our sparkling rosewater lemonade float tank center example service attraction offer free six week stress release or a $6e stress release decoy option one float per month with at home do-it-yourself stress release exercises premium option two times per week floats for 6 weeks one-on-one consulting journal sleep routine satisfaction guaranteed gym offer local business attraction offer free 21-day transformation or $21 21-day transformation decoy option when they walk in the door. Workouts done in a school.com group once a day. A general nutrition plan. Can watch recordings. No support. No guarantee. Premium option. Unlimited workouts. A personalized nutrition plan. One-on-one accountability. Results guarantee. Or you get another 21 days free. Important notes. How to make your decoy offer. Offer fewer components, older models, or less personalized versions of your premium offer. Also, remove any guarantees. Your attraction offer only has to get leads to engage, nothing more. Advertise benefits, not the features. We want to sell them on the dream outcome. We advertise a transformation in 21 days, not workouts and meal plans. Leads get specific product details in the sales presentation, not the advertising. Private jets and rowboats can both get you to an exotic island, but the premium option is certainly more enjoyable. You can advertise discounts in four ways. So, let's say you have a year-long thing that costs $100 a month. If you wanted to have them pay $900 for the year, you could say, one, percentage off, 25% off. Two, an absolute amount off, $300 off. Three, a free portion, so three months free. Or four, total package, one year for $900, but you cross out $1,200 above it. They all mean the same thing. It's worth testing to see which one converts better in your market. Make the contrast huge. The value of the premium option comes from the huge difference between it with the decoy option. So, make the decoy option as basic as reasonable. Then, make the premium option as awesome as possible. The bigger the contrast, the better the deal. The more customers will take it. Discount offers have higher show up rates than free offers. In my experience, if you run a free attraction offer, you'll get more leads. If you run a discount offer, you'll get fewer leads, but a higher percentage will show up. So if you have low show up rates for appointments, try a discount offer instead. This is especially important for businesses where you have high cost of someone not showing up. Think doctors, lawyers, dentists, etc. If possible, present the premium offer first. In a perfect world, they take the premium offer immediately. The decoy offer stays in your back pocket. If they come in specifically asking for the decoy option upfront, then get them to give you permission to sell to them. If they ask to hear about your decoy, you are legally required to present it. or if you prefer to present it first, here's how I like to do it. I ask them this simple question. Are you here for free stuff or lasting results? And as soon as they say results, which most people do, skip to your premium offer. If they say free stuff, present the decoy offer. Then immediately contrast it with your premium offer. Then only after presenting both, ask them which do you think will get you to your goal faster? Or which would you prefer, the less valuable thing or why y more valuable thing? Benefit one, two, three. At this point, they'll have to say the premium offer. Then you can move forward in the sale, mutually agreeing it's the best for them. When making your premium offer, get excited about it. Present it as superior to the decoy offer because it is. And assuming it is, how it fits the customer better. Your excitement motivates people to take the option that will get them the best value. From a selling perspective, you want to talk to the lead as if you already know they will accept your offer. Many sales people refer to this as an assumed close. You operate from a position of this is what everyone does. This is just a formality. Let me get your ID and credit card so you can get your value. No hype, just friendly disposition. Almost bored of how regularly people buy. Surprise benefit optional. To take this a step further, if someone takes the decoy option, you can choose to surprise them with a few or low to zero cost features from your premium offer. Just say something like, "Hey, I'm going to throw this in even though it's part of our premium offer just because I want you to get great results. This bills goodwill, overdelivers, and increases the chances they take your upsells later." Remember, they're still leads. Summary points. Decoy offers advertise something free or discounted. Then when leads ask to learn more, you also present a more valuable premium offer. Two, make the premium offer far more valuable than the decoy option by adding more features, benefits, bonuses, and guarantees. Strip down your decoy offer as much as reasonable. When leads ask about your decoy offer, present your premium offer right next to it. Ask, "Are you here for free stuff or lasting results?" for permission to offer the premium offer first. You can still make money from leads who pick the decoy option. You'll learn the best way to deliver your decoy product and maximize the upsells from it. Expect to make money fast and if you're not, then make the contrast between offers larger. Free gift, no opt-in required. Decoy offers training. Decoy offers one of the most flexible attraction offers in any business. You just need to know more about your customers problems than they do. They're also easy to train people to sell. I've run them in a number of different industries. If you want to nerd out on the topic, I made a full video breakdown for you. You can check it out at acquisition.com/training/money. Buy X, get Y free. Buy one puppy, get two puppies free. Downtown Nashville 2020. Bars and shops at this popular tourist destination went in and out of business all the time, but one store reigned supreme. Boot Factory. Their neon sign cut through the visual clutter of the street like a hot knife through butter. A cowboy boot directed me to the front door. There was no mistaking what they wanted me to do. So, of course, I obeyed. And as I got closer, I could make out their offer. Buy one pair, get two pair free. A decade passed since I'd been to Nashville, but I remember the sign and buy one get two free offer like it was yesterday. As a kid on bar crawls, I thought the offer was dumb. How could they give away so much stuff and stay in business? But now with some offer making under my belt, I could appreciate it. I went straight to the men's section and grabbed a boot. Curious, the price was marked down twice to a final offer of $600 for the pair, but these were normal looking boots. The young me would have scoffed, but the business me realized that I had missed something. The store got much bigger since the last time I saw it, so the offer clearly worked. Then it clicked. They charged three times the price for a single pair of boots because they came with two more pairs. So rather than saying come to Boot Factory and buy boots at a fair price, they managed to create a free offer. Even in the few minutes I checked out the store, bachelorettes filled in getting matching pairs of boots. And since the Boot Factory sat in the middle of a street full of cowboy themed bars, this happened a lot. It was brilliant. description in buy X get Y free offers when customers buy something they get other stuff free. The more free stuff they get and the higher its value, the better it works. Free offers get way more attention than discount offers. But if you have one thing to sell and you give it away, you go hungry. In situations like this, businesses tend to lean on discounts. They run sales, relying on holidays, seasonal changes, or whatever as reasons to temporarily lower their prices and get more customers. But by selling more than one thing at once, you can turn discount offers into even stronger free offers. When you have more than one item, you can make the discount value large enough that it covers the price of the more stuff. For example, I could sell three t-shirts for $10 each for a total of $30. Or I could sell one t-shirt for $30 and give away two for free. It's the same price, but way more free stuff. And if I wanted to offer a discount rather than only reframe the price, I could do this. I could sell three t-shirts for $6.67 each for a total of $20, which is a 33% discount. or keeping the same discount, I could sell one shirt for 20 and give away two free. It's the same price, but way more free stuff. Again, Boot Factory took the first option. They tripled the price of one pair of boots and added value in more boots. And an expensive pair of boots with two free gets Boot Factory more customers than selling one pair at a fair price. Plus, if you can include free, then it attracts even more customers. Examples: Buy one, get two free physical products offer, the boot factory offer. One pair of boots, $200. Buy X, get Y, free offer. Buy one for $600, get two pairs free. End result, they still buy three pairs of $200 boots for a total of $600. Three versions. Now, here's three different versions for an 18 months of services agreement, aka three pairs of boots. Here's a good version. Buy 12 months, get six months free. $1,800. Here's a better version. Buy six months, get six months free, $1,800. Here's the best version. Buy six months, get 12 months free, $1,800. Everyone pays the same price for the same amount of service, but the third option is the most compelling. Hint, it has the most free stuff. Important notes. Buy X, get Y free gets people to buy more stuff and provides more value. It used to take a whole year for some of my service businesses to make their money. But buy six, get six offer attracted far more customers than the original month-to-month offer. Even better, they got paid up front for it. Raise prices before giving away free stuff to preserve profits. If you use this to attract customers, it will work. And since it will work, you need to make money. So, permanently raise prices to accommodate the discount. Don't lie. Actually raise your prices. Since this is what all new customers will be coming in on, then it makes sense to change it for a season at least. Plus, plenty of people might still take your double prices all cart and break your limiting beliefs around prices. You're welcome. Buy X get Y free works better if you have more free stuff than paid stuff. For example, buy 10 get two free is not as strong as buy 2 get 10 free. This seems obvious, but again, people don't do it. To make it work better, give more free stuff than you ask people to buy. Just play with the pricing until it makes sense for you. Buy one get two instead of buy two get one. The free things can be different from the paid things. When people first start doing offers like this, they match the free and paid stuff, but you can mix and match whatever you want. Just make sure the value of different free stuff still makes the offer compelling. Example, let's say socks have a $10 value. If they buy one shirt for $10 but get $20 of free socks, it may seem like a better deal. More cheaper things can work better than fewer free expensive things. Revisiting the t-shirt example, let's say I could only afford to give away one shirt for free. But for the same cost, I could give them three pairs of socks. I'd probably test buy one shirt, get one shirt free against buy one shirt, get three pairs of socks for free. Socks cost less than a shirt, but people still see buy one thing, get three things free. Sometimes more cheaper things works better than fewer expensive things. Rather than offer a 33% discount, try buy 1 get two free. Even though it can be structured to accomplish the same thing, free drives more interest than a discount. More people know the value of free than the value of one shirt. For example, rather than selling $10 shirts for $6.67 each, 33% off, you may get more interest and make more money by offering buy one shirt for $20, get two free. Just test it. Do not make offers like this if you can't manage money. While buy X get Y free offers create massive cash flow for a business, you need to deliver. So, if you get a whole year's worth of payments in a month, make sure you can deliver for the whole year. Budget the correct amount of money to service your customers for the duration of your agreement. Don't be a goon and buy yourself a house with the cash meant for servicing your customers. Selling stuff you can't deliver on breaks the law and ruins your reputation. Deliver on your promises. Make this offer to existing customers for fast cash. If you have a recurring business already and need fast cash, you can make this offer to existing customers. Many will happily buy 10 and get two free at their current price. Just cap how many can take the offer to 10% of your customer base. This gives you a good cash pop and keeps recurring cash flow healthy. Even if customers prepay, then you can still upsell them different stuff. Now, a lot of people don't want to make more offers to customers who prepay for stuff. This is a mistake. Speaking from experience, these are the people who spend the most money. Give them other offers to buy and they will. After all, they may have prepaid months ago. Their wallets have been refreshed with new money that is dying to make it in your pocket. Don't get in the way. If customers only buy once, make the buy as big as you can. The boot factory in my story catered to tourists that want to fit in at the local cowboy bars. This means most of their customers made one purchase ever. For that reason, it makes sense to make that purchase as large as possible. Just provide the value to back it up. If you only have one shot, you might as well make it count. Summary points. In buy X, get Y free offers. When customers buy something, they get other stuff free. Buy X get Y free works for stuff that makes sense to buy more of or get longer access to. Basic buy X get Y free offers reframe pricing. Buy one gets two free costs the same as buying three, except customers see the free offer as more valuable. Just look at the 18 months of service example. Always try to give more free things than paid things. You can pair different free things with your paid things. Some buy X get Y free offers discount the price where buying more things costs less per thing than buying the same number of things one at a time. Buy X get Y free can lengthen the amount of time customers stay. If normal customers stay for 3 months, then buy two get two free will keep them for 4 months or whatever you set it at. This gives you more opportunities to make more offers and provide more value. If you use buy X get Y free to generate lots of cash fast, make sure you manage it well and deliver on your promises. If you need fast cash, you can make this offer to existing recurring customers. Just cap how many you sell to so you still have cash flow. Keep selling customers who prepay long durations. They are the most likely customers to buy again. Free gift. Buy X get Y free video course. Buy X get Y free gets lots of cash and lots of customers. You just need to know your math. I made a free video for you giving you a few more creative ways to use it. You can watch the video for free at acquisition.com/training/money. Pay less now or pay more later. Time is money. Benjamin Franklin. June 2016. A headline caught my attention. Double your reading speed in 3 hours or it's free. I opened and scanned the text. Inside, the world's fastest reader offered a free training to double my reading speed in 3 hours. So, I registered. Why not? The registration page said, "You can put your credit card down for $0 and get build $297 tomorrow." And if your reading speed doesn't double, just email us before then and we'll cancel the charge, but you must attend in order to be eligible. Or you can just pay $97 right now and as a free bonus, get the recordings, which won't be for sale anywhere else. I decided on the first option. I wanted to see if my reading speed doubled before paying anything. The whole training, I expected him to sell me more stuff, but he simply provided value. After 2 hours using his tactics, my reading speed doubled. Impressive. The training had been true to the promise. He earned his $297. After that, he talked about how I could learn to read even faster with his 8week training program. I was satisfied with my results, so I chose not to stake the upsell. He taught me a skill I still use to this day. But the true value came from learning a brand new attraction offer. description. In pay less now or pay more later, you give people a choice to pay full price later or pay a discounted price now. This play works so well because remove all risk from the customer. They pay later and only if they like it. So, it combines the benefits of a delayed payment and a satisfaction guaranteed. Anyone can sell this. Almost anyone will agree to pay later if they're satisfied. But once they agree to pay later, you can get them to pay now with hefty discounts and valuable bonuses. The pay later option allows you to advertise free since they can choose to pay or not. This gets lots of engaged leads, but this free offer has an added benefit. We get their card on file. So, if they choose this option and hate the product, then they can cancel at any time before the charge goes through. If they accept the pay later option, we make a follow-up offer to pay now. And pay now options provide a 20 to 50% discount and greater bonuses. And since we already have their card on file, make it easy for them to pay. Whether they choose to pay now or pay later, you've got customers and likely some profit. But to take full advantage of this offer, you want something else to sell. So have something more, better, or newer to offer when the time is right. And don't worry, we'll go deep on upsells in the next section. Examples: Find your first real estate deal. Free 3-day workshop. Pay later option. $0 for 3-day workshop. Get build $500 at the end unless you cancel. Pay now option. $2.99 for 3-day workshop plus recordings, one-on-one call with certified distressed property expert, plus printed materials to use delivered at the workshop. Upsell offer from the workshop $30,000 take you through every other step of closing your first deal within 6 months, plus legal templates, advisors to vet the investment, inspection checklist, etc. Local business service. Trim your hedges for free. Pay later option. $0 lawn cut plus hedges. Then 600 bucks after if satisfied. Pay now option. $369 lawn cut and hedges and lawn treatment. Upsell $199 per month lawn care services. The rep comes to the house, makes the estimate, and offers both options. Then upsells after the work is done. Physical products 14-day clothing trial. Pay later, $0 now. Get it, then get build 149 in 14 days. Pay now, $97 for the clothing, plus an accessory that goes with it. Upsell. The dress comes with an offer for a monthly subscription to more clothes like this. Customers must return the product in like new condition before billing to qualify for the guarantee. Important notes. Promise a clear yes no result. First, make your promise a clear yes or no result. Second, make sure you can deliver on it within your time frame. If you don't, they will ask not to be built. Duh. For example, if you promise to decrease someone's shoulder pain, have them rate their pain 1 to 10 before you do your magic. Then ask them to rate it after. If it went down, you've succeeded, and you can sell them something else. Keep the promise simple, clear, and measurable. This avoids unnecessary cancellations. Make a conditional satisfaction guarantee. People can only cancel the billing if they qualify. For example, I had to show up to the reading training to qualify to cancel the charge. After all, they can't say that you suck if they never tried it. So, be sure to track the conditions necessary to qualify. Think attendance, showing up to an appointment, turning in data, etc. Make the criteria what people do to get the most value out of the product. Win-win. Bonuses for your pay now option. I hate when people repeat content and call it new. So, I didn't want to be like that. I dedicated an entire chapter and $100 million offers bonuses. You can grab a copy of that book or watch the video training on my site for free at acquisition.com/training/offers. Optimizing your pay now and pay later offer. If too many people take your pay later option, discount the pay now option more. Add better bonuses or both. If too many people take your pay now option, do the opposite. If more than 10% of pay later people cancel their payment, you promise too much, the guaranteed conditions are too low, or the price is too high. Note, no matter how well you deliver, some people will cancel the payment, and that's okay. Factored into your cost of doing business and keep living your life. This works for recurring revenue businesses, too. You just give them the option to pay a higher ongoing rate 30 days later, or they pay less today and keep the lower rate for good. Plus, add in some bonuses. C. Section six, continuity chapter onetime bonuses for more details. Pro tip, if you run events, workshops, presentations, hint at your next offer early. If the reading guru had said, "Everyone wants to know what my next reading intensive starts because they sell out so fast." I'll get to it at the end, but please pay attention. I want to deliver on my promise to make sure you guys double your reading speed. By hinting about his next offer earlier, he would have sold more of it. Let me explain. I used to do a lot of nutrition consultations. People would interrupt me all the time to ask about supplements. It annoyed me. So, one day I spouted, "Everyone wants to know what supplements to buy. We'll get there, I promise. But please pay attention to the nutrition section. It matters more." By accident, I applied everyone bought supplements without offering them. And all the head nods I got showed that they actually did want more products. And all these factors got more people to buy when I did offer it to them. Summary points. Pay less now or pay more later offers give people a choice to pay full price later or pay a discounted price with additional bonuses if they pay now. The pay later option has a delayed payment with a conditional guarantee. Have clear criteria to qualify for the guarantee and easy ways to measure it. If you can align the criteria with what gets people the most value from the product. The pay now option offers 20 to 50% discount and bonuses if they pay now. Offer customers the pay now option after they accept the pay later option. If they choose pay now, they get the discount and bonuses instead of the guarantee. Make sure you promise easy to track, difficult to refute, and clear yes no results. If you have more than 10% cancelling, you promise too much, the guarantee conditions are too low, or the price is too high. Also, give extra attention to those who claim they haven't received what was promised before the cancellation deadline. It may help reverse them. Free gift. Pay less now, pay more later training. No optin. This is one of the most creative offers I've ever seen or used. It does exceptionally well with digital products and short duration services. These can be scary effective and also feel good. It's super easy to teach salesmen as well. If you want to learn more about them, I made a deeper training for you at for free atacquisition.com/training/money. Free goodwill offer. He who said money can't buy happiness hasn't given enough away. I became a quadripollegic in 2018 and was living on welfare until I found your content and book. I made $50,000 the following 12 months as a freelancer. Danny W. I have a question for you. Would you help someone you've never met if it cost you nothing, but you didn't get credit? Most people do, in fact, judge a book by its cover. So, here is my ask on behalf of a struggling entrepreneur you've never met. Please help that entrepreneur by leaving this book a review. Your review helps one more small business like Bills provide for their community. In Bill's own words, I opened a pizzeria in early 2020, shortly after finding the $100 million offers book. Sales started slow, but we did it. After I read $100 million leads, we implemented many things like having customers donate to the local food bank for a chance to win free prizes for a year. I've lost count of how many new customers we've gotten after doing these things for the community. This absolutely proves the stuff works for any type of business. Thank you, Bill. Your review helps one entrepreneur like Thomas support their family. In Thomas's own words, "After 10 years, I got laid off from my 9 toive job, but I found your book and opened a tour guide business in Colorado. Fast forward two years later, and we have five employees. I literally took what I learned and built my dream. Now my kids and wife are happier than ever." Your review will help one more employee like Miguel have more meaningful work. In Miguel's own words, I received the book as a gift and decided to pass it on to my six employees. Since then, our business has undergone a remarkable transformation and continues to grow on a monthly basis. Not only that, but I also give it to my independent contractor trainers. Thank you. Your review helps one more entrepreneur like Simon transform their life. Here's Simon's own words. I'm just normal guy from Germany and I couldn't get a client to save my life. Then I bought $100 million leads. After reading the cold outreach chapter, I started the rule of 100. I expected maybe to get one to two clients, but then I booked eight meetings in seven days. I closed four of them and earned my first $500 from one of those clients. It has been 3 months now and my career couldn't be better. Your book was the only book I needed. I recommend it to everyone. And your review could help one more entrepreneur like Alex get out of a hole. In Alex's own words, I moved in with my girlfriend making less than $1,000 a month. I bought $100 leads and we applied everything. 3 weeks later, we signed a client for over $2,000 a month, then three more. I owe you a lot more than what these books cost. Your review helps one more entrepreneur like Mohan flee his country and get out of debt. In Mohan's own words, "As a struggling Indian immigrant trying to get to Ireland, I made so little money I would die before I pay off my debt. I tutored on the side where I could. Then I read $100 million offers and quit my job 11 days later. I did the same work but learned how to make offers this time. Clients were happy to pay, sometimes even $1,500 when I gave some bonuses. I make a liveable income now. And I finally found what I love to do. I moved to Germany now and my debt is almost paid. Thank you." If you tell yourself you do it later, instead, please do it now. It takes less than 60 seconds to change someone's life forever. If you're on Audible, hit the three dots on the top right of your device. Click rate and review and leave a few sentences about book with a star rating. If you're reading on Kindle or an e-reader, scroll to the bottom of the book, then swipe up. It'll prompt you for a review. And if for some reason these have changed, you can go to Amazon or wherever you purchase this and leave a review right on the books page. If you feel good about helping faceless entrepreneurs, you're my kind of people. Welcome to Mosy Nation. You're one of us. I'm that much more excited to help you make more money than you could ever possibly imagine. You'll love the tactics I'm about to share with you in the coming chapters. Thank you from the bottom of my heart. Now, back to our regularly scheduled programming. Your biggest fan, Alex. Attraction conclusion. Extra extra here. All about it. The point of attraction offers is to turn strangers into customers and do it in a way that gets more cash up front. Ideally, we get enough cash to cover the cost of the customer and the cost to deliver our thing multiple times over. That way, we can pay ourselves back and get our next customer. I showed you the five most powerful attraction offers I've seen and used. Win your money back, giveaways, decoy offers, buy XKY free, and pay less now or pay more later. I apply them at one time or another to every business I own. They turn $1,000 into 10 million in 10 months because when I got returns, I kept doubling down. A grand slam attraction offer changes your business and life forever. After using attraction offers, we've got more customers. And now that we've got them, we need to boost our 30-day profits even more by selling them even more stuff. This leads us to the next component of a $100 million money model. Upsell offers. What to offer next? Section three, upsell offers. Do you want fries with that? McDonald's famous upsell. With an attraction offer in place, you've got customers and cash. If we did a good job, we've turned a profit, too. Nice. Now, we want to maximize 30-day profits. So, what do we do? Answer: Make more money. To do that, we make upsell offers. And when it comes down to it, upsells just means whatever we offer next. How upsells work. When an offer solves a problem, another appears. You upsell the solution to the problem your offer reveals. So, every offer opens the door to an upsell, even upsells. Often, upsells make the majority of the profit. They make or break a bunny model. Let me show you how much. Let's say a burger shop makes 25 cents in profit on a $2 burger. If it was the only offer they had, they'd have to sell 10,000 burgers a day to cover costs and barely ek out a living. Good luck. But they have more offers beyond just the burger. They ask, "Do you want fries with that?" If the person says yes, they profit another 75 cents and then ask, "Do you want to make it a meal?" which adds a drink. If someone says yes, they profit an extra $1.75. Their profit goes from 25 to $2, an 8x increase. And on top of that, they offer a third upsell. Do you want to superersize your meal for just a buck more? This takes profit from a measly 25 to a massive $3 11.6x increase. And now this little burger place actually has a chance of succeeding. I show this basic and common example to point one thing. Your first offer doesn't always have to make a profit. In other words, the thing you sell the most isn't always the thing you make the most profit on. You make it on the second, third, and in the case of the burger business, fourth offers and beyond. If McDonald's didn't upsell fries and soda, there wouldn't be a McDonald's. If you want to win, you have to figure out your version of do you want fries with that? If you don't, others will. Upsells fail when you offer something they don't want, too different, or doesn't solve their problem. You offered at the wrong time before they've experienced the problem. You offer at the wrong way, they don't believe you. Or a combination of all three. In summary, offers tend to offer more of what they just got. Think quantity. Why have one burger when you could have two? Better versions of it. Think quality. Why have mystery meat when you could have sirloin? New or complimentary stuff? Think different. Do you want fries and a soda with that? I use four simple and brutally effective upsell offers. The classic upsell, menu upsells, anchor upsells, and rollover upsells. And with just a few tweaks, you can fit them into your business today. Warning, this section is brutally effective and must be used ethically. That being said, let's make some money. Free gift upsell offers, no opt-in. If you want to make more profit per customer, you got to sell more stuff. Knowing the right time, way, and stuff to sell is key. I've learned my fair share of lessons doing it the wrong way. I hope I can help you avoid those mistakes and get it done right the first time. I made you an additional training on this chapter you can watch for free at acquisition.com/training/money. The classic upsell. You can't have X without Y. He was a premier fur coat dealer, a fourth generation business savant and a childhood mentor of mine. We sat down to catch up in a swanky restaurant across from his shop. Within a minute of ordering, our salmon appeared. What do you think this salmon cost the restaurant? Three bucks? Maybe a few extra pennies for the garnish. And look at the menu. They're charging 32 bucks. Unbelievable. But we pay it. He took his first bite and chuckled to himself, then continued. So, I heard you got into the game. Good for you. Never would have guessed when you worked at the shop. You were kind of awkward. What can I say? Brushing 7,000 fur coats in a row melted my brain. I chuckled. You still making a killing on that? A sheepish grin appeared. Yeah, and that's not even the best part. My son came up with something genius. His son would be the fifth generation owner. Tell me about it, I asked. We advertise free ear muffs with coat storage. And get this. When customers come in to get their muffs and store their coats, he says, "Great. And we'll store those as well for $30. You don't want to store anything else, do you?" And of course, they say no. Wait a second. So, you get them to pay for additional storage for free ear muffs by getting them to say no to another upsell. You guys are legends. Us? No, you stay creative and if something works, we stick with it. Whenever he talked business, he'd light up. Despite being awkward around his shop, I learned many lifelong lessons from him. I share the story in homage to those lessons. Description: The classic upsell offers a solution to the customer's next problem the moment they become aware of it. I explain the classic upsell first because it's extremely profitable, easy, and anyone can do it. Main reason. Current customers always have a higher chance of buying your stuff than strangers. And when timed right, customers upsell themselves. The classic upsell relies on knowing more about your customer's problem than they do. And you darn well should. It's your business after all. The idea is simple. Your core offer solves one problem and creates another. Your upsell immediately solves that next problem. This gives the classic upsell its you can't have X without Y structure. Like the rental car story, you can't have a car without insurance. You can't have a car without gas. You can't have a good trip without a late checkout, etc. All these things become immediately apparent as soon as the customer makes the first purchase. Bottom line, if a problem appears and you can solve it immediately in exchange for money, do it. Examples: Local car wash service, first purchase, car wash. Upsell, sealant. You're not going to want to do the car wash without the sealant. You'll get way more for your money. Physical product, first purchase, bicycle. Upsell one, helmet. Upsell two, lights. Upsell three puncture resistant tires. Can't have a bike without a helmet. Digital product first purchase course on exercising. Upsell nutrition course. You cannot exercise a bad diet, so you're going to want a course on nutrition. Important notes. Actually do it. You'd be amazed how many businesses come to me and only sell one thing. I usually tell them, you barely have a business. You have a front end. Figure out what you're going to sell next. months later, I hear they actually 5x their business because they actually offered an upsell. Offer more profitable upsells first. If I offer two products and one has a higher profit than the other, I offer the higher profit option first. Get them to say no to say yes. I was always amazed at how often the fur coat dealer got people to buy stuff by saying no. He knew people had been trained to say no in response to you don't want anything else, do you? But this actually turns a no into a yes. So, when upselling, the question translate to, "You don't want anything else besides what I just offered, do you?" Clever salesmanship. So, let the nos parenthesis yeses roll in. Surprise and delight. Let's say you have four bonuses you save to get people to buy who are on the fence. Add one at a time. If they say yes before you add them, still give them all four. It will surprise and delight them, and it guarantees you still sell the same thing to everyone so no one feels left out later. Sell more when they're buying more. Hyper buying cycle. Most buyers enter a hyper buying cycle when they decide to do something new. It's a short window of time when they're most excited about a new thing they're going to do. This is when they spend a huge chunk of money in a short period of time. Think weddings, starting new hobbies, having babies, moving to new places, and so on. If you have a business that caters to these sort of problems, don't shy away from upsell offers. Embrace it and keep making offers. Use free bonuses to create problems. Upsell offers solve. Bonuses solve problems. That's what makes them valuable. And because of the problem solution cycle, they can also reveal them. Upsells can solve that new problem. The ear muffs, for example, cost materials and labor, but they were able to give them away for free by getting customers to pay $30 to store something they just got for free. The faster people get access to stuff, the more they'll value it. A $10,000 thing you get later is worth less than a $10,000 thing you get now. The longer it takes someone to access something, the less value it has in the moment. So, if you want to raise the chance of someone taking an upsell, make it available as soon as you can. Bonus points if you can put it in their hands before they've said yes. It's way harder to give something back once you've gotten it. If you bundle upsells, name them. It's easier to sell someone one thing than nine things. By bundling items together, you can make one ask and get nine sales. I named the packages based on the customer type and/or result. For example, fastest results bundle or a transformation package or minimum package. All these will boost upselles per person. Last, you can peel some of the products or features from the package as a way to downell. More on that in section five, downell offers. Integrate upsells into your other offers. Make stuff you upsell part of how you deliver other offers. Then more customers will take them. My meal plans included optional supplement suggestions. So, when I went over nutrition, people asked about supplements. Gym launch sales and marketing training suggested optional softwares. This led gym owners to buy them. Integrate the next thing you want to sell into the first thing they buy. Make sure you book a meeting from a meeting. Bam. Fam. The more times you can upsell, the more people you will upsell. If you upsell more people, you can make more money. And since you want that, end every appointment by scheduling the next appointment. Don't let them leave without booking. As my big fancy public CEO friend Chiron says, a customer should know the next time they see you and why before they leave. So if you agree to meet again, agree on why and when right then. Upsell as many times as it makes sense to. The rental car agency had lots of upsells. Their burger place had lots of upsells. My gym had lots of upsells. Gym Launch had lots of upsells. Offer many solutions as there are problems that you can solve. Don't be shy. If you can solve it, offer to. The second worst thing that happens is they say no. The worst thing is if they would have said yes but you never asked. The magnetic middle. Pro tip. How to offer more of the same thing. If you have two things and want to sell one, add a third option to nudge the option you want them to buy. Movie theaters do this all the time with soda and popcorn. Here's how. Their small, medium, and large pricing work something like this. small $5, medium $8 rather than the rational price of seven which would be in between and then C large $9. Result more people take the large. People who take the small option will always take the small option. People who take the large will always take the large. But the people who would normally take the medium will now probably take the large. If you want to get more people to buy the medium option, you'd price it like this. Small would be $6 rather than the rational price of $5. The medium is seven, halfway in between the original pricing. And then large is $9. This upsells more people into the medium option because now most people would normally get a small will get a medium. Bottom line, if you have a lot of customers buying small, you can bump them into mediums. If you have a lot of customers buying medium, bump them to large. If you have a lot of customers buying large, raise all your prices. Upsell guarantees, warranties, and insurance. Many businesses offer guarantees on products. Many businesses offer warranties on products. Many businesses offer insurance on products. You can upsell all of them. So instead of doing it for free, just add 5 to 50% onto the price in exchange for a guarantee that the thing does what you say it will. Example, an art studio used to replace damaged portraits at no charge. I told them to start asking for customers if they'd pay an extra 10% for it. Now 30% of customers buy stuff the art studio used to give away for free. Pure profit. Summary. Your attraction offer reveals a problem. Upsells, whatever you offer next, solve it. Use the classic upsell for immediate problems revealed by your previous offer. Asking you don't want anything else, do you? Gets people to agree by saying no. It works. Increase the chance customers take upsells by giving them access to it as soon as possible. Give away bonuses that create an upsell opportunity. A great way to make more cash. To get more chances to upsell customers, make BamFam a way of life. Book a meeting from a meeting. You can have as many upsell offers as you want as long as you keep solving problems. You lose nothing by offering to solve someone's problem. If it makes sense for your business, you can charge for guarantees, warranties, or insurance rather than giving them away for free. Free gift. Watch the classic upsell video training. No opt-in required. The first upsell everyone should learn is the classic upsell. There are a bunch of tiny tips that can make a big difference. I made a training video to make sure that you didn't miss any of these tiny details. You can watch for free at acquisition.com/training/money. Menu upsells. You don't need that. You need this. December 2013. People kept joining the gym like normal, but nobody cared about my supplements. I read somewhere, keeping shelves full got more people to buy. So, I stocked my shelves with all the labels in a perfect row. It didn't work. I also heard if I told someone about the cool science they would buy. That didn't work either. I got a few pity purchases from loyal members, but I was doing something seriously wrong. Why do I suck so much? On a particularly rough day, I had 19 nutrition consults, and nobody bought anything. It was miserable. Then appointment number 20 came in. She had a nice purse and a big diamond ring on her hand. If I can't sell her, I should just quit trying. But then I remembered, I've got $5,000 in inventory on my shelf. I got to figure this out. We went through her nutrition consultation and I started getting nervous. I got so nervous, I forgot my script. And rather than gabbing about science stuff, I just asked, "You've got a protein shake for breakfast. Do you like chocolate or vanilla?" "Which one's your favorite?" she asked. "Uh, chocolate." "Great, I'll take one of those." "Wait, what just happened?" I didn't talk about the benefits or anything. I just asked what she wanted and she told me. Taking the hint, I moved on to the next item. Do you want kiwi or strawberry lemonade pre-workout? Then I remembered her last question. Uh, I like strawberry lemonade. Smiling. Great. I'll take that one. I had more products, but selling two was a record, and I didn't want to scare her away. I still had to ask for money. So, I grabbed her membership contract that already had her card on it, and I asked, "Do you want to choose the cards that we have on file?" "Yep, that's fine." After that conversation, I sold the next 20 customers in a row. At the end of the day, I stared at my empty shelf in disbelief. I know how to sell supplements. Takeaway: I stumbled on two tactics that changed my upsell game forever. First, the AB upsell. I ask which product they prefer rather than whether they want to buy a product at all. Second, asking if they want to use a card on file rather than asking them to take out their card again. I still use both to this day. August 2014. Now, I closed sales left and right. Bing, bang, boom. Now, it wasn't exactly big stuff, but I was selling consistently. Every month, I start a new group of challengers, and like clockwork, I'd upsell five grand to 10 grand of supplements. Not bad for a day's work. But on one day, I had a lady who just wouldn't stop asking questions. She wanted more information, how to take them, how many, when, what times. What if she was working? What if she was at home? What if she was at the gym? She was relentless. I was going to be late for my next consult. So, finally, I just wrote up a step-by-step instruction on the back of scratch paper. Take one of these at night. Take two of these after lunch. Take one of these after workout. yada yada yada yada. I walked her through what I wrote and asked, "Makes sense?" Nodding, "Thanks." She grabbed the paper and left. My next appointment, it overheard our entire conversation. As soon as she sat down, she asked, "Do you think you could write it all out like you did for that lady?" I tried not to let out a sigh. I failed. I was going to be late for my next consult again. But I did as she asked. This time, I wrote instructions right on the order form. Next to each item, I wrote how much to take and when. Because I didn't want to push my points back another 15 minutes, I just went for the upsell. I got all your instructions here. Do you want to choose the card on file? Asked. Yeah, that's fine. Hot diggity dog. She just bought all those products. I didn't even ask her anything. I just told her and she did. And she did it like magic. I did this from that day forward and my 30-day profits skyrocketed. Takeaway. I learned detailed and personalized instructions upsell more people than vague and general instructions. I call this prescription upselling. November 2016. By now, I was on the road launching other people's gyms, and that included selling supplements. I sold thousands of people. I'd see 40 to 50 people a day. Two people every 30 minutes, 12 hours straight. My supplement selling marathons alone covered the flight there, my hotel, and advertising costs. I got so good, I'd run out of stuff to sell. Today was one of those days. I just sold a lady, the last four of products. In situations like this, I'd sell whatever I had left to the next customer. But before I could pitch, she blurted out, "Can I just get what she got?" Oh, boy. I said, "Sorry, I just ran out, but honestly, you can get something close at the shop down the street for about 20 bucks less. It's not as good, but it'll do for the first month." Cool. Thank you so much for helping me out. She seems so grateful. It felt good. So, I continued unselling. Oh, this other thing. Same story again. Not as good, but it'll get you through the first month. She seemed so happy. I couldn't stop myself now. I started unselling stuff I wasn't going to sell her anyways. You're not trying to gain weight, right? I joked. Oh, god. No. Okay, great. Well, then you won't be needing this either. I crossed out the weight gainer shake. Oh, and you aren't going to need to boost your testosterone, right? No. Haha, I don't think so. She said, "Great. Well, you won't be needing this either." I crossed it out. Then I started making suggestions from what I had left. Okay. So, you need to take two of these, three of these, and I went on. She loved it and bought without hesitation. Takeaway. I went out of my way to cross out what she didn't need. And this built enough goodwill to upsell what she did. Later, I kept products just to cross them out. I call this process unselling. Description. In a menu upsell, you tell customers which options they don't need, then tell them what they do need, their preferences, and how they get value from it. Menu upsells combine up to four tactics: AB upselling, prescription upselling, unselling, and card on file. First, I insell what customers don't need. Second, I prescribe what they do need. Third, I ask their preference between A and B. Last, I make the buying easy by asking if they want to use the card on file. Unselling. You unsell them by telling customers what they don't need so you can emphasize what they do. Here, instead of asking if they want to buy or not, you explain what they don't need as a way to get them excited about what they do. Unselves vary based on the customer's needs. When some options work best, you can cross out the rest. After telling them what they don't need, prescription upsell. We tell them what they do need. Prescription upsells work well when offering a choice is inconvenient and you only have one thing that solves the problem. Prescription upselling has two important components. First, you have to explain how it integrates with the offers they already bought. Second, you personalize in detail how to maximize its value. Here, instead of asking if they want to buy it or not, you explain how to use it as if they already have. Again, we remove the option of not buying to lower the chance that they don't buy. And once I've told them exactly how they're going to use everything, AB upsell. We ask them for their preferences. AB upsells work for multiple offers that solve the same problem. You make AB upsells by asking their preference. Instead of asking if customers want to buy a product, yes or no, we ask which product they prefer, A or B. Either choice results in an upsell. Basically, when you give people the option not to buy, some don't buy. So, I give the option to pick between buying two similar things. Once they know what they're buying and how they're going to use it, I suggest the easiest way for them to pay. Card on file. A chair on top of all this upsell goodness. I literally ask, "Do you want to use the card you have on file?" Here, instead of asking if they want to pay or not, you refer to ways they already have. This gets more people to buy because it lowers the hidden costs of buying. Picking which card to use, taking it out, being reminded of the ugly buying decisions in the past, even the hassle of buying stuff in a rush, and who knows how many more. Just know if you make it easier for people to buy, more people will. This took me 10 years to learn. May you get the same value in 10 minutes. Examples: massage therapist. Unsell. We have a lymphatic massage available, but you're not pregnant or just out of surgery, right? So, we can cross that out. Prescribe. Since your shoulder hurts, we'll heat you up first, then hit your trigger points, and after that, we'll do some dynamic stretches. AB: So, would you rather do it before work or on your way home? Card on file. Want to just use the card on file? Dog food. Unsell. You're not going to need this small bag or this puppy stuff. You've got a big dog. You don't need these vitamins either because we've got that in the food already. Prescribe. You're also going to want to give your dog one of these joint chews at each meal. And every 90 days, give them one of these wafers for heartworms. Also, make sure you bring them back next month. Let's get that book now. AB. So, does your dog prefer beef or chicken flavor? Card on file. Want to just use the card on file? Digital product. Unsell. You don't need all eight courses yet. You just need to solve X, Y, and Z. Tell you what, I'll send you some free stuff that'll solve problems X and Y. Then you'll just need one course for problem Z. Prescribe. But to solve problem Z, you're definitely going to want to do this course this particular way. Can you put an hour a day towards it? Okay, great. This will prevent any other Z problems cropping up later. AB, would you rather have direct messages or phone support? Okay, great. And would you like to start today or Monday? Card on file. Awesome. Want to just use the card on file? Pro tip. Card on file for first purchases. What do you want to use? Pro tip. If you don't have the card on file, you get it on file by asking which card they want to use. Important notes. Make anything AB sellable. You can turn anything into an AB offer just to give you a few ideas. Quantity. Do you want one bottle or two? Start dates. Start tomorrow or Monday. Payment preference. Cash or card. Flavors: chocolate or vanilla. Time slots morning or afternoon. Media read or listen. Delivery speeds standard or overnight. Sizes small or medium. Colors black or white. Materials paper or plastic. Personnel John or Sarah. Communication call or text. With some creativity, you can make anything an AB upsell. If you make an AB offer, add a nudge. If your customers have limited experience with your products or service, give them a nudge. This is my favorite. Or X is usually a safe bet or a lot of people love this. or Tuesday sessions are a little smaller if you like that. Or Amy does great with high schoolers. These oneliners really help move sales along. Hint, if you want to move one particular product faster, nudge that one more. If you've sold out of it, take payment and delay delivery. Later, I learned I could just sell stuff, order it, and then set the expectation of when it will arrive. This allowed me to sell way more selection because I didn't have to carry inventory. If you run out, consider collecting the cash and changing the delivery expectation. You'd be surprised how well this works. Employees love unselling. Employees often like helping customers game the system. Let them encourage customers to help customers gain the system on purpose. Your employees have insider knowledge, so allow them to show customers how to get the most value out of what you have to offer. Everyone wins. Pro tip: The Economist play. if you have two options and want people to buy both. In the late 1990s, The Economist magazine started offering a digital subscription because more people got their news online. But it also wanted to keep its profitable print subscription. So, thinking people would buy both, The Economist offered the following: a digital subscription for $59 a year, a digital plus print subscription for 125 a year. Result: Print sales plummeted as customers flocked to the cheaper option. Oops. To fix it, they added a decoy option for the same price as the bundle. So option A digital subscription $59 a year. Option B print subscription only125 a year. C digital plus print subscription also 125 a year. Result customers now took C digital plus print subscription for 125 a year. Bottom line present three options. Option A, option B, option C, which is both. But you make the price of C the same as the more expensive option B. So, as long as you price the options to preserve your margins, you make the customer's choice easy and sell both. Summary points. Menu upsells work best when you have multiple offers available. Menu upsells combine up to four tactics. Unselling, you tell customers what they don't need. Prescribing, you tell them what they do need. AB offer, ask them which they prefer. And last, make the buying easy by asking if they want to use the card on file. Unselling lower margin stuff where appropriate incentivizes higher margin upsells. Encourage employees to unsell and game the system on purpose. Nudge new customers toward what makes sense for them. Free gift. Watch the menu upsell training. I rarely make commands. Just do it. Watch it. I could teach a master class on this upsell. It's made me millions. That's it. Just go to acquisition.com/training/money. Yes, it's free. No, you won't be sorry. Anchor upsell. The only thing worse than making a $1,000 offer to a person with a $100 budget is making a $100 offer to someone with a $1,000 budget. 2016 after starting gym launch but before making money. I had spent my last five years showerless in sweats and a tank top. But now I had gym launch and a fashionable friend said I should look professional. Businessmen don't wear tank tops, Alex. I know the owner of a local suit shop. I'll tell him you're coming. I took his advice and went. So I budgeted $500 for a suit, which was a big purchase for me at the time. I walked into the suit shop and made small talk. He knew I was coming. Wow. I told him I just started a new business and wanted a boss suit. He took my measurements, then grabbed two suits off the rack. I put the first one on. How does it look? How's it feel? He asked. I smiled. I felt cool, like a rich guy. It was nice. He talked about some accessories, but I didn't listen much. I was too cool to listen now. Ha. This was going to be awesome. He turned to talk to an employee. I flipped the price tag over so I could see it. $16,000. My face turned red. All I could think of was my friend who asked the owner to make time for me. I couldn't even afford anything here. I felt horrible. I kept my head down, try and hide my shock. I took a deep breath and looked up. I failed. He had seen me blush. Coming to my aid, he asked, "Do you care about the designer much?" "Not at all." Almost before I finished replying, the owner rolled around and draped the next suit over my shoulder. "Try this one on for size," he said. I looked in the mirror. "Looks good." Then I looked down at the price tag. $2,200. It wasn't $500, but it wasn't 16 grand either. Sigh of relief. Yeah, this works. I'll take this one. He winked and nodded. You got it, boss. The owner sold me some socks, a handkerchief, and a shirt to go with it. All in, another $300. But after seeing the $16,000 price tag on the fursuit, everything seemed cheap. Looking back, this wasn't the owner's first rodeo. He was a real pro. I spent five times more than I had budgeted, and I felt okay about it. I only later realized he used a price anchor description. With anchor upsells, you offer premium stuff first. If the customer gasps, you offer a cheaper but acceptable alternative. Basically, if you present your main offer, some people will buy it. Duh. But if you present a premium version that's 5 to 10 times the price first, lots of people will say no. Then when you present your main offer, it looks like a much better deal. So more people will buy it. Aha, that's the power of anchor upsells. Anchor upsells work best when lowerric offer has the same core function as the premium one. For instance, I didn't care about the designer that much. I just needed a suit. So, compared to the $16,000 suit, the $2,200 suit was a way better deal. Ankor upsells also have two amazing bonuses. First, anchored customers spend more than they normally would. Second, some customers will still buy the super expensive thing. Here are the steps. One, present the anchor, the really expensive thing. Two, get the gasp. Expect the customer to freak out about the cost. Three, come to the rescue. Ask if they care what makes it premium. Four, present your main offer. Expect the customer to feel relieved and see the better deal. Step five, ask how they want to pay. Which car would you prefer? Pro tip. The only thing worse than making a $1,000 offer to a person with a $100 budget is making a $100 offer to someone with $1,000 budget. In the first situation, you lose $100. In the second, you lose 900. I've lost tons of customers and mountains of cash because customers wanted more than I had to offer. Boo. So now I always have premium upsells ready. Only a handful of customers buy them, but that handful of customers bring in big profits. So, always have premium offers even if most people don't buy. Remember, you won't lose customers by offering premium stuff first. You will lose money if you don't. Examples: Local Service, lawn care, premium, get my cell phone number, fancy mulch, natural pest control, bi-weekly yard maintenance, $1,000 a week. Main offer, get my team's number, generic mulch, normal pest control, bi-weekly yard maintenance, $200 a week. Physical product, a painting. Premium offer, super productive packaging, 20-year insurance, plus gift wrapped, $1,000. Main offer, normal packaging, one-year insurance, and a sticker, $200. Digital product, newsletter, premium maker, all previous issues, new issues, 24-hour early access, $1.99 a month. Main offer, new issues only, plus on time, $19 a month. Important notes. If you treat the anchor like a fake, so will the customer. Some people hear about this technique, try it, gloss over the premium payment, and then say that it doesn't work. If you do that, then the person never really considered it because you never really offered it. You just went through the motions. For this to work, you need to actually sell it, and they have to actually consider it. Only after they pause, hesitate, or ask for something else do you move on to the next thing. Make a premium offer you actually want people to buy. A friend of mine struggled to get this working. I only had to listen to one call to figure out the problem. He made up some BS that he didn't really want them to buy. So, we tweaked the offer to something he would actually feel happy to deliver if someone paid, and they did, tripling his profits. Actually present your premium offer like you want people to take it. And when you do, some will, and if they don't, you still anchored them. A proper anchor gets the gasp. When you do an anchor upsell correctly, customers will have a mini panic attack. I call this the gasp. Gasps used to really stress me out when I was selling, but then I realized something huge. The bigger the gasp, the more they bought. Once you get the gasp, come to the rescue. In the story, I gave the gasp. Then the sales pro saved my ego by asking if I cared about the designer. When I said no, he presented the next suit. Here's the key point. He already had the 1/8 price suit pulled up before my reaction. He knew I would probably gasp. And if your customers don't gasp, then they probably find your premium offer reasonable. So, just ask if they want to use the card on file. Go for it. Just don't do a gasp of your own when they say yes. You're welcome. You can buy me a beer later. To get more people to buy your main offer, make it a better deal. Only tweak a few features from your premium offer to make your main offer. Every offer has features. Some features matter more than others. You want the primary features to stay the same. Fewer people care about the secondary features, so change those. This allows customers to get the same primary features and a way better deal. Most people just want a suit. A few people want a fancy suit. A suit is a primary feature. The material, designer, etc. is secondary. After anchoring, offering the primary feature for one fifth the price makes the main offer a great deal. Summary. If you present a more expensive offer before a less expensive offer, more people buy the less expensive offer than they would have on its own. Present anchor. Get gasp. Come to the rescue. Present core offer. Ask for payment. For the most effective anchor, make your premium five to 10 times more expensive than your core offer. Anchored customers spend a bit more than they plan to. Don't treat the anchor like a fake or the customers will too. You lose trust and waste time. Important. Some customers will buy the premium offer. Expensive premium offers adds profits even with just a few sales. The main offer and the premium offer should have the same primary features. The premium offer has different secondary aka premium features. After anchoring, offering the primary features for one fit the price makes the main offer a great deal. It gives them basically the same thing for way less. Free gift anchor upsell training. This thing can help you make insane amounts of profit overnight. Truly life-changing. I made an additional video for you on it. Don't worry, it's free. Watch it at acquisition.com/training/money. Rollover upsell. Want to just roll it forward? June 2014. I've been running a win your money back offer, attraction offer number one, at my gym for the last year, a $600 fitness program where members could win their money back if they hit a goal. It crushed. I sold tons of them. But there was a problem. Good gyms have lots of recurring revenue. I had none. Most winners put their $600 towards 3 months membership. Fine. But then they turnurned out before their first out-of- pocket payment. So I essentially sold buy 6 weeks, get three months free, then they'd leave. Not fine. That $600 thing was my only source of income. So, even though I got a bunch of people in the door, my revenue started at zero every month. It was stressful. I had to figure out a better way to boost profit. That's when my friend Justin posted about how he added another 100 members to his recurring revenue. He also attracted customers with a one-year moneyback offer. But there was one difference. My customers left and his kept buying stuff. So, I invited myself over to Spy Auto. He was totally cool with it. I spent two days there and he and I ran some things differently, but nothing that explained why he was doing so much better than me. Do you get lots of people wanting their money back? Yeah, he said. Then how do you deal with all the free time you have to give away? Free time? Ha. I just roll over their winnings into a year-long membership. What? Yeah, we have to do that so they can spread the money out. Spread the money? What are you talking about? Seriously? What? You give it all up front? He didn't wait for me to answer. We just give them 50 bucks off per month for a year. So even if they want their money back, they start paying immediately. Of course, I don't want people not paying. Sort of business doesn't have paying customers. He laughed. They still get their money back. It just takes a year. Boom. This was it. The missing link in my money model. This one thing, the rollover upsell, changed my life, thousands of gym owners lives, and the lives of our customers. The rollover upsell changed everything. Now, instead of hoping customers spend money again, I roll over the cost of what they just bought towards the next thing. And when paired with more expensive offers, it skyrockets 30-day profits. And although I learned the rollover upsell this way, you don't need a win your money back offer to use it. You can roll over upsell anyone, anything, even stuff people bought at other businesses. I'll explain later. Description: Rollover upselles credit some or all of a customer's previous purchase towards your next offer. And this, in my experience, gets way more people to take it. So once I know how much credit to give, I figure out three things. Who to upsell, what to upsell, and how to roll over the credit. For the who, I use rollover or upsells in four situations. First, to re-engage customers who left a while ago. Second, to rescue upsell customers as a better alternative to a refund. Third, to rescue other people's upset customers. And fourth, to upsell regular customers. For the what, remember that you can upsell more what they just got, something better or something new and different. To make money, roll their credit over to something more expensive. For the how, you can apply all or part of the discount upfront or spread it over time. Examples of rollover upsells. Chiropractor re-engage old patients with a win back campaign. Who? Customers with six months since their last purchase. What? New plan. How? Upfront. Reach out to your old patients. Look at their purchase history. Offer to apply some or all their past purchases towards something more expensive than what they bought. For example, hi Mrs. Banks. I wanted to give your money back. Do you have a minute? Great. Yeah. I want to see how your back pain was going. Oh, I'm sorry to hear that. Well, I've got some good news. As a way of saying thank you, I want to give you $500 of your money back as credit towards staying painfree for good. Is that of any interest? Great. Let's get you in. Dentist, save your own upset customer with rollover upsell. Who? Upset customer. What? Teeth whitening. How? Frontload $200 credit. The person pays $200 for teeth cleaning but doesn't think their teeth got whiter. We explain they need to get more than one and upsell teeth whitening package which includes multiple sessions and at home kit and multiple deep cleanings. You offer to credit the $200 they paid for the cleaning towards the whitening package. Software rescue cough steal other people's upset customers. Who competitors customers what service agreement? How rollover cost to break old agreement? You find competitors upset customers and credit their old purchase with them towards a new purchase with you. Roll over the amount they owe with them as a credit towards a longer agreement with you. Example: hi John, I saw your negative review on their product and it really upset me. To make it up to you, I'll credit whatever payments you have left with them to switch to ours. This way, you don't lose a thing and you start giving the benefits now. Fair enough. Membership. Spread first purchase over a term. Who? Current customers. What? 12-month membership. How? spread first purchase. Somebody buys a small block of service or membership time. As soon as they do, you can offer to apply the entire amount towards more time, like 12 months. I can do the rollover upsell at any time. I just prefer to do it right then. When you do, you take the first purchase's cost and apply it as a discount over the longer agreement. For example, a $600 first purchase makes a $50 a month rollover discount for 12 months. Important notes. Use rollover offers to attract new customers. For example, you roll over some or all of what a customers paid somebody else towards your thing. You can find leads for this by scraping contact information from negative product reviews where available. Voila, a hot new leads list of people who want what you have. Bonus. Create a way for people to complain about products in your industry. Think of media where people can leave comments. Then roll over upsell all of them. Nasty. Do rollover upsells before refunding. This has saved me tons of customers and cash. If you did a bad job, hey, it happens. Roll over for a doover. If they want something different, roll over their purchase toward that thing instead. Previous customers are still customers. Upsell them. Reach out to old customers. Six plus months since their last purchase. Look at how much they paid before. Decide how much you're willing to roll over. Offer it. Actually do this. I call these win back campaigns. I made personalized videos for 200 past customers offering them $4,000 of credit to return. We got about 20% of the people to take the offer. One day recording videos got us an extra $1.9 million in annual revenue. Worth it. Add urgency to rollover upsells. Make them one time only. If you're spicy, make the moment you present the offer the time to take it. A once-in-a- customer lifetime offer. They don't get to sleep on it. And yes, I know they might not expect it. That's the point. You want a surprise and delight. So, if they want the credit, they got to take it now. If not, no big deal. They can still pay full price later. How to price your rollover upsell. To make money on a discounted offer, you must have profit left over after you discount it. Since I prefer to make a profit, I try to make the upsell offer at least four times more than the rollover credit. So, even if I apply the whole amount to the first purchase, it discounts 25% at most. Remember, the rules of discounting apply. Bigger discounts make you less profit per sale, but they get more sales. You don't need to credit the entire amount of their first purchase. You can roll over as much or as little of the first purchase as you choose. I roll over whatever amount I think would incentivize them to buy the next thing. Test to find the sweet spot. Pro tip, my famous gift card play. You can use the rollover upsell as an attraction offer for new and current customers by advertising gift cards for 90% off. Example, $200 gift cards for $20. Limit them to two per customer and say they can only use them on other people. They buy them as gifts and give them to your friends. This makes them a great holiday offer. When customers buy the card, ask them who they want to make it out to and if they'll make an introduction. Then when they come in, roll their gift card over. Make the value of the card 20% of the price of whatever you want to sell next. In our example, we sell a $200 gift card for 20 bucks. Then apply $200 of value to an offer with at least a $1,000 price tag. People pay you to refer their friends. It's pretty great. Plus, you get some pocket change from the cards you sold. Summary points. Rollover upsells credit some or all of customers previous purchases towards your next offer. To do rollover upsells, figure out who to upsell, what's upsell, and how to roll credit over. Who to upsell? Old customers, upset customers, other people's upset customers, your current customers. What to upsell? More of something, better of something, something new, or something different. Just make sure you make a profit after applying the credit. How to roll the credit over. Full or partial purchase price given upfront or spread it out. Price your next offer at least four times more than the credit you give. This makes it a 25% or lower discount to get more takers. Add urgency. Make your rollover upsell a onetime offer only. Free gift. Rollover upsell training. This is the upsell I use most frequently. It has elegant urgency built into it plus Goodwill. I made a video for you going over some of the scripting so that you can see me do it. It's free. No optin required. Watch it at acquisition.com/training/money. Upsell offers conclusion. Solve rich people problems. they pay better. Anytime you offer something next, you upsell. Upsells play a key role in money models by getting more cash upfront for customers than you otherwise would have. And if your attraction offer already covers cost of getting customers and delivering more money ain't a bad thing. I showed you the four most powerful upsells I use. The classic upsell, menu upsells, anchor upsells, and rollover upsells. They are core to my business success. Upsells change everything. Many businesses go from burning cash to printing it overnight. But as you know, business isn't all sunshine and rainbows. Sometimes people say no. This leads us to the next component of a $100 million money model, downell offers. What to do when people say no. Author note. Have a cool new upsell not mentioned or see one in the wild? If so, I'd love to add it to the collection and do a full video breakdown on it. Please send any cool ones you see to valueacquisition.com. You can follow the same five-step format that I use in all these examples that I give in this book and send any links that would give extra info if you can. I'll give you credit and publish the cool ones on my channels. Alex, section four, downell offers. What to offer when they say no? In the last section, we used upsell offers to get people to buy more stuff. If we did a good job, we've turned a profit, too. Another step forward or beyond. Awesome. But what if they say no? We downell them. Downselling tweaks the original offer to find the highest value solution for the customer's budget. So, any offer you make after someone says no is a downell. I downell in two ways. I change how much they pay or what they get. For how they pay, I balance how much they pay now with how much they pay over time. For what they get, I change quantity, quality, or offer something different. First, we cover my rules of downelling. They apply to all my downell processes. Then, when we dive into individual offers, you can hit the ground running and downell like a pro. How not to downsell. A real story from a friend. I was buying a car and the salesman tried to upsell car insurance. The cost of the insurance when he first started was $5,000. I said no, but then he lowered the price. And I said no again. He kept lowering the price until the same insurance he first offered for $5,000 was now only 400 bucks. I still said no. At first, I said no because it was too much money. By the end, I said no because I didn't trust the guy. The entire experience felt dirty. Then I wondered, was he ripping me off on the car, too? Now, I didn't want to buy the car from him either. People lower the price to close a sale. But even if you close this one sale, the customer will question every price you offer from that point going forward. And whoever they tell, you trade trust for a buck. Not worth it. Note, you can offer something different for less. You just can't offer the same thing for less. If he had offered different insurance for less rather than the same insurance for less, he probably would have kept her trust and closed the sale. The rules of downselling. Remember, they said no to this offer, not all offers. Sometimes, a lot of times, people say no, and that's okay. Just because they rejected this offer doesn't mean they've rejected you. It hurts when someone rejects you. I get it. But see it for what it is, an opportunity to find out what they really want. and profit from it. Instead of hiding your head in the sand, stand your ground and make another offer. No means no for this thing, not no for everything. Downells are trades. When downelling, you work with the customer to find combinations of giving and getting until you get a match. If you're going to give something, get something. Personalize, don't pressure. Figure out what they like and don't like. Then offer more of what they like and less of what they don't with a price to match. You're personalizing here. If someone refuses my large soda upsell, I can offer alternatives. I could ask if they want a small, a juice, or a coffee. Am I being offensive by asking? Absolutely not. In fact, if I can better serve them, it would be offensive not to offer the same thing in new ways. In a perfect world, you've got tons of different things to sell, so everybody buys something. In the real world, you limit downells to what you've got. Otherwise, you create a 100 businesses worth of products and problems. A silly choice. So, just think of downselling more like a 100 ways to offer the stuff you already have. Don't drop your price just to get somebody to buy. First off, dropping your price is not really downselling. It's discounting. If someone wants what you have and just doesn't want to pay the price, tough cookies. On the other hand, you can offer them to pay less now and pay more money over time, a payment plan. But whatever you do, don't just change the price to get someone to buy because customers talk about price. By all means, test prices. Plan to offer your thing at a specific price to a specific number of people ahead of time. That's way different than charging somebody less in the moment just because you felt scared of losing the sale in the moment. Customers talk. If they find out someone else got the same thing for less just because you'll upset people. And it also becomes an ethical problem, at least to me. Avoid it. Next up, I use three simple and brutally effective downell processes. Payment plan downells, how they pay. Trial with penalty, how they pay. Feature downells, what they get. These downell processes boost 30-day profit even further. They do it by making even more sales when customers would have said no. And I love them because with just a couple tweaks, you can fit them into your business and reap the rewards today. Free gift. Downell offers video training. People say no. Don't get flustered. Get focused. Know what you're going to offer next. I made a video to go over this chapter in detail for you. Enjoy it free at acquisition.com/training/money. Payment plan downells. How much can you put down today? August 2013. It was my first real month in business. I had exactly one month's rent and savings left in my name, and I had never gotten a stranger to give me money. And now I had to get dozens of strangers to give me money in the next few weeks just to keep the lights on. I only made a few sales the first week. If I kept that up, it meant going hungry very soon. I had nightmares about going back home a failure. The idea was unbearable. I got desperate. The next morning, a lead walked in and I went through my normal pitch. She said, "I can't afford it. Normally, I'd just give up, but I really needed the money." So, in desperation, I blurted out, "Okay, when you get paid, the first," she said. "Okay, just put half down now and half when you get paid." I can't afford that either. She said, "Okay, do you really want to do this program?" "Yeah," she said. I do. "Okay, what if you do three payments and just put the a third down today?" I still can't do it. Hm. What can you do? Honestly, nothing. But I can pay for the whole thing on the first. My rent was due on the fifth. Bingo. Sounds good. Just give me your card and I'll charge you on the second. That work? Yeah, great. Two weeks later, I ran the card and it worked. My first ever payment plan, a success. Hallelujah. Payment plan downsells work no matter how many zeros the price tag has. I've made tens of millions of dollars with them and I still use them to this day. But payment plans are a gamble, so you have to know how to use them. I know how to use them, and I'll show you exactly how, too. Payment plans are a gamble because they can make money in one way, but they can lose money in two. They make you more money when you get more customers and those customers complete their payments. They make you less money when people cancel before you turn a profit. You lose the most money when people who would have paid in full take a payment plan and then cancel early. This chapter maximizes how much money you make from payment plans and minimizes the money you lose. I take the bet when I know I'll win. With this playbook, you can too. Description. When most people think downell, they think of a lower amount, lower quality, cheaper, and so on. Fair enough. But I like to downell by offering the same product again. I know it sounds crazy, but hear me out. Instead of offering a different thing, I spread the cost by charging some of it upfront and putting the rest into scheduled payments. I call this a payment plan downell. Let's go over how they work. Many people reject offers because they cost too much. Sometimes true. But in response to this, business owners and other sales professionals will immediately discount or sell cheaper stuff just to get them to say yes. However, a huge percentage of the time, it costs too much really means this costs too much upfront. In other words, people think discounts work because people pay less for the product. But when you peel it back a layer, it's really because they pay less in the moment. So payment plans get the best of both worlds. They get more buyers because customers pay less in the moment. They also boost your profits because customers still pay full price over time. My payment plan downells process takes up to seven steps. The process shifts from getting paid more upfront to getting paid more over time. I stop when they buy. Here are the steps. Step one, reward for paying in full rather than punished for paying over time. Step two, offer thirdparty financing, credit card, and layaway options. Step three, offer half now, half later. Step four, check to see if they still want the thing. Step five, offer to split into three payments. Step six, offer to evenly spread the payments. Step seven, offer a free trial. Let's go through them in order. Example of payment plan downell process. Step one, step one, reward for paying in full rather than punish for paying over time. If I take on the risk of a payment plan, I increase the price. Normally, businesses do it by charging interest, but I do it by offering a discount if they pay in full. Think about how businesses normally charge interest. They basically say it's $10 if you get it right now, but it's $15 if you pay over time because we charge $5 interest. No fun. Instead, I say it's $15, but it's $10 if you prepay it. You save five bucks. That's what most people do. To do this, I present the price with interest included. Then, I offer prepayment as a way to get a discount. This way, we make the offer friendlier and benefit from a price anchor. Same math, better feels. If they said no, I start downelling. But even still, I try to get paid first. Step two, offer third party financing, credit card, and layaway options. Third party financing. This means another company pays me now and the customer has to pay a payment plan with that other company. Car dealers do it all the time. The dealer gets the money from the financing company today and the customer pays the financing company tomorrow. Note, it takes work to get third party financing set up, but totally worth the effort. Credit card. Just ask, "Would you rather I decide your payment terms or you decide?" They say normally that they'd prefer to decide. And when they do, I tell them to use a credit card. That way, I can pay today and then they can pay the credit card company over time. It's wild to me that this reframe works, but it does. I don't judge. I do. Layaway. Layaway means paying off the product before getting it. Customers can make as many installments as they want. They can take any reasonable amount of time to pay, but they only get the product after they've paid in full. This is by far the most flexible for them and the lowest risk to us. If they say no to these, I move to step three. Step three, offer half now, half later. I start by asking, "When's the next time you get paid?" After I ask, "Want to just put half down today and the rest when you get paid?" If they can't do that, I ask, "What's the most you can put down today?" When they offer an amount, I say, "Great. We'll put that down today and put the rest when you get paid." Fair enough. I like scheduling payments off paycheck since that's when most people get paid every two weeks. This boots 30-day profit far more than monthly payments. If they can't do those, I pause to make sure they actually want it. Step four, check to see if they still want the thing. No payment plan will satisfy a customer who doesn't want the thing. So, make sure the person actually wants your thing before putting more effort into selling it. I might say something like, "Got it. So, money's tight right now. Real quick, I just want to make sure. On a scale from 1 to 10, how bad do you want to do this?" If they say eight or above, keep offering payment plans and say, "Awesome. Don't worry. We're going to figure a way out to make this happen for you." If they say seven or below, ask why not a 10. And then say something like, "You're right. I think we may have something that could be a benefit for you." Then you sell them something different, which I'll cover in feature downells a little later. Step five, offer split into three payments. If they said 8 to 10 on the scale, I can downell from half down to a third down. I offer a three payment option. 1/3 now and one third of the next two paychecks or 1/3 now and one/3 next two months. Step six, often evenly spread payments. If they still can't manage it, I evenly spread payments over the rest of their service. For instance, gym launch was 16 weeks long, so I charge them each week 16 times in total. If that still creates problem, I move on to step seven. Offer a free trial. I offer free trials in a special way. So, I dedicate the next chapter to it. But the sale ends here, at least for now. This payment plan downell process makes up to nine offers. And if you think that sounds crazy, you're probably making way less money and serving way fewer customers than you could. Important notes. Seesaw downselling. If you prefer fewer steps or have less experienced salespeople, then you can use this payment plan downell process. Instead of asking for the full amount, just ask, "Would you rather have giant monthly payments or tiny ones?" They'll say tiny. Then you say, "Normally, it cost X." And if you prepay it today, you'll get a huge discount and zero monthly payments. That work? This frames the payment plan as negative and highlights the benefits of prepaying. Then if they say they can't afford it, say the more they can put down now, the lower their monthly payments. If you can't afford it upfront, I totally get it. We'll just adjust the down payment until you get the monthly rate you like. This still incentivizes bigger down payments to get their monthly payments lower. If they still say no, ask if they still want the product. If they do, pull your chair to their side of the table and walk them through the options. The sale becomes a team effort, straightforward. Payment plans have built-in upsells. Make periodic offers for the original paid in full discount during the payment plan. If they pay off the balance, they can still get the original prepaid discount. This works exceptionally well. Customers forget they have the option. So, when we give it to them, some jump at the opportunity. Also, give your sales guys the same bonus to close the balance to incentivize the follow-up. And remember, if you give people the option to pay slower, they will pay slower. If you incentivize them to pay faster, they will pay faster. So, if you want them to pay faster, give them a good reason to. In other words, you can extend the prepayment discount for the first 30 days of their relationship with you. And that gives you 30 more days to collect more cash upfront. Get fewer declined payments. Align payment schedules with paycheck schedules. If you charge on days people get paid, they have a higher chance of paying. Also, people's paychecks get deposited at different times. So, if at first it gets declined, run it a few times that day. I learned the strategy from John, my early mentor. I often recoup a third of my declined payments by adding this little process. How to make sure payment plans make you money. After implementing payment plans, your close rate should increase. Duh. But if the number of paid in fools goes down, you have a problem. You just put people who would have paid in full on payment plans. So, you want to close more points overall, but with the same percentage of appointments paying in full. Example, if I talk to 10 leads, I might sell three. If I have a downell, I might sell three more for a total of six. So, in the second scenario, I get my upfront cash from the first three and the payment plans from the second three. This makes sure that downells properly increase your 30-day profits. Another reason to start high before working your way down. Profit Well, a company that manages subscriptions, reported churn data from 14,000 businesses. They uncovered this valuable gem. Across all businesses, the billing cadence affected monthly churn. Monthly, as in 12 times a year billing, resulted in 10.7% monthly cancellation rates. Quarterly billing, as in four times per year billing, resulted in 5% monthly cancellation rates. and annual billing, one time per year billing, resulted in 2% monthly cancellations. I already present pricing in order of most cash upfront at least. So, it just so happens this also makes customers more valuable over the long term. So, start high, fewer bigger payments, and work your way down. Bottom line, changing how customers pay can make a massive difference in how long they stay. We go in more depth on continuity in turn in section six, continuity offers. Summary points. Payment plan downells spread the cost of a product by charging some of it upfront and putting the rest into scheduled payments. Payment plans get more buyers to like discounts, but can also boost profits because they agree to pay full price over time. Payment plans only grow your business if they get more customers and those customers actually pay. Step one, present at full price, then offer a discount if they pay in full. Step two, third party financing, then credit card option, then layaway option. Step three, split the payment in two. Schedule on their paycheck dates. Step four, ask if they still want the product. On a scale from 1 to 10, you want eight or greater. Step five, split the payment in three. Split on their paycheck dates or monthly. Step six, schedule equal payments across a specified period of time. Step seven, offer a free trial in exchange for putting a card down covered in the next chapter. Seesaw downelling gradually shifts from paid in full to equal payments. Payment plan upsell. They get the original discount price if they pay the balance today. Align payment schedules with paycheck schedules to get fewer declined payments. At the end of all of this, if someone still refuses to pay anything, then we offer them a free trial in exchange for their card. But it's not an ordinary free trial. I do in a special way. It took me years to perfect it. So that's what we're going to go to next, and you're going to love it. Free gift. Down offers video training. Properly designed payment plans almost always make you more sales and more money. I recorded myself actually doing the step downs so you can model them for whatever you sell. For those of you who like to learn in multiple formats, which I recommend, you can watch it. I made it for you at acquisition.com/training/money. Trial with penalty. If you do X, Y, Z, I'll let you start for free. Spring 2018. Gym Launch was scaling fast. With 100 employees in counting, Ila needed better HR solutions to manage it all. After months of sales calls with prospective HR companies, she found one she liked. And to my surprise, it wasn't anything special. It looked like all the others. Yeah, the software is complicated, she said. They got me. Seriously, how' they manage that? They had a trial offer with a weird spin. It was pretty smart. What would they offer? They said if I did their training, I'd get free onboarding. But if I skipped the training, I'd have to pay for it. So what'd you do? I went through the training, of course. So they took your card, you did the training, and then you didn't have to pay for the onboarding. Yep. She smirked. And now I can actually use the complicated software, too. Light bulb moment. Wait, you said no. Then they downsold you a free trial on the condition they could penalize you if you didn't use it. Basically, I mean, it makes sense. It forced me to learn, and now I don't want to learn anyone else's complicated software. So, we're sticking with them. You're right. That is pretty smart. The software company used trial with penalty as their attraction offer, but I prefer it to downell trials. So, I only downell the trial if they say no to my first offer. And if you do it the way I'm about to show you, it only changes what they pay today, not how much they pay in total. Description: In a trial with penalty offer, customers can try your product or service for free so long as they meet your terms. For comparison, when your money back offers, attraction offer number one, give customers the chance to get their money back if they meet your terms. In trial with penalty offers, customers only pay if they don't meet them. Ideally, the term should be things that make excellent customers. So, they'll mirror the actions and results used in your win your money back offer, but this time we use avoiding fees rather than winning money back to incentivize adherence. So, trial with penalty isn't here's my thing, see if you like it. It's here's my thing, you get it for free so long as you do this stuff, which makes you a perfect fit for my next offer. And if you don't, then you have to pay for it. To do a trial with penalty downell, you must consider what they have to do to avoid the fee and how you charge them. Normally, you get one chunk of people to buy your main offer. So, offer that first and the rest you'll get on this downell. Let's say you normally close three out of 10 people on your upfront cash offer. Now, you downell another four on a trial with penalty. Then, after the trial finishes, upsell three of them. You go from three sales to six, doubling your customers. If you only have one offer, you lose to everyone who says no. Downselling trials with a penalty gives people another chance to say yes. I'm still irritated at the thousands of customers I've lost on free trials over the years before learning this, but now we can save them. The trial with penalty makes it happen. Examples: Business to consumer offer. 28day kick that habit blueprint. To get the trial for free and avoid the penalty fee, you must attend all your consulting calls. Post your progress pictures in the group once a week. Journal daily in our app. Attend feedback sessions. Attend feedback sessions and transformations, aka upsell opportunities. Businessto business offer 5-day get your first five customers challenge. To get the draw for free and avoid the penalty fee, you must send 100 outbound messages per day. Report stats on those outbound messages. Attend the daily training. Post in the group once you've done your homework. Attend your graduation call. Upsell opportunity. Software $500. Onboarding for HR software, then $99 per month thereafter. Trial with penalty. You don't have to pay $500 upfront, but you must attend onboarding, which is three 60-minute Zoom calls, upsell opportunities, do the homework, activate your employer profile, get your employees set up by the end of the third call. Otherwise, you pay the fee. Important notes, what they get for free, and what they have to do to avoid the fee. You'll need to know what your terms of service will be. The valuable parts will either be your bare bones offer, like the decoy offer, or your win your money back offer. Either work. I'd recommend giving more rather than giving less if you can afford it. The criteria should activate and retain customers. You can swipe these directly from when your money back attraction offer number one. Breaking up fees versus one lump fee. Say you have a $500 product with 10 things to do. I'd rather bill $50 for each mess up than one $500 fee for their first mess up. On the other hand, if missing once really messes up their success, you want the fee to reflect that. I've seen both work. How to downell the trial. Here's a graphic to show how I downell a trial with penalty in five steps. Step one, offer the trial last. If someone makes it clear they don't want your first offer, then downell the trial with penalty. Here's how it might sound. Hm, that sure is a pickle. I'll tell you what, how about we just get you started for free. Would you be okay with that? We can just help you out and if you like it, you can stay. Let me get your ID and we get the process started. Fair enough. Great. Step two, always get a card. Record their info, hold on ID, and motion for their credit card saying, "What card do you want to use?" They have to leave a card. If they bulk, just say, "That's how we've always done it." If they still refuse, wish them a lovely day and show them out. Pro tip, if someone doesn't agree to put their card down and do the work, I won't sell them. They complain more and convert less. Not worth the hassle. Step three, always sell staying and paying. Ask directly. If this program got you the result, will you stay longterm? You want them to agree to staying longterm if you get them results. If they say no, there's no point in giving them a trial. Then we frame the conversation as if they'll stay longterm, even if we haven't started billing them yet. So, if they say no, but want more explanation, say something like this. I don't want you to try it. I want you to get results. And out of integrity, I want to set realistic goals. You're not going to hit your long-term goals during this trial, but you will establish the habits to help you get them. And we're going to help you do that for free. But if you want to get your long-term results, you're going to have to stay on after. I just want to make sure that you're not looking for a quick fix because I ethically can't promise you that. Once they agree, move on to step four. explain the fees after getting their card. I'll say something like, "We will do our part so long as you do yours." That's fair, right? So, now I just ask that you bet on yourself. If you miss or skip any stuff, your results will suffer. We charge to keep you on track. If you miss, no big deal. You'll get dinged a little fee, but it'll get you back on track. If you follow through, then you get all this for free. So, this is the best way we can get you amazing results and keep it free for you. Best of both worlds. Note, if you explain the fees before you get the card, you'll get more resistance. So explain after with a little this is how we've always done it attitude. People still have to agree to the fees, but you'll get a higher take rate doing it this way. I always have customers initial separately next to the fee clause to force my sales guys to explain it to them. Step five, make check-ins required. First, we explain all criteria so they understand the cost and benefits of adhering. Then we draw attention to the check-ins, our upsell opportunities. Yep. And you agree to attend each of these three check-ins. First, we do X so that you can. Second, we do Y so that you can. 32Z so that you can obviously we charge if you miss these because it's the only way that you can get results. How I upsell from a trial. When someone takes a trial, one of three things happen. They like it, they hate it, or they don't use it. Here's how I upsell them from each of these scenarios. If they like it, this is the easy one. You already have them set up for automatic billing. Great. Meet with them anyways. You can still offer a longerterm or higher value version of your service or both. Successful customers tend to get even more value out of your better and more profitable stuff. Two, if they hate it, turn that frown upside down. Ask them what they would have liked to be different. Tell them they're totally right and that you're angry at yourself for missing this. Do not blame them. Only one person can be angry and it needs to be you. Ask if they'll give you a chance to make it up to them because of how outraged you are at their experience. And now, since you better understand their needs, that they're a better fit for your highle thing. Then offer to them, yes, this is a sale. I can get about half of these people to buy. Three, if they didn't use it, reach out to people multiple times before they get to this point. Explain that you need to meet with them. Offer to wave the fee if they do meet with you. Now, you can try and get them back on track or off something better for them. I don't like billing non-starters, personally. A small fee isn't worth a onestar review, but hey, it's your choice. Tweak your trial to get the most customers. If no one takes your trial, lower the requirements or penalties. If people take your trial but don't follow through, emphasize explaining how fees help them and make sure to include your sales meeting as mandatory. If people don't stay on the back end, better emphasize the value of staying and paying. Get better at delivering and make sure that what you saw on the back end makes sense with what you saw on the front end. If you start printing money, don't stop. Let people make up for goofs. People often get discouraged after getting build, but you can offer an opportunity to make it up. This does a great job of getting people back on track and converting, but if they miss it, you're justified in billing. Just call it a trial. Even though the trial with penalty has some special features, you should just call it a free trial. Otherwise, people may get scared and confused. No one wants to be penalized. And if they ask you why you free trials this way, just reply with, "This is how we've always done it." Or, "People just get best results this way." Paylist now or pay more later versus trial with penalty. I use paylist now or pay more later as a downell for physical products or onetime services. And I use trial with penalty as a downell for recurring products or services. Also, I've only made this work in businesses where the customer has to do work to get results. If you find other types of businesses these work, let me know. Discounts get cards on file. Some people get weird when you offer free stuff and ask for a card. And if you have a super low price, it justifies asking for the card. The small price means the card will probably work when the automatic payment starts. So, instead of free month, you might offer first month for a dollar, then $X per month when it recurs. So, you can have a $1 trial rather than a free trial. It works the same way. Summary points. In a trial with penalty offer, customers can try your product or service for free so long as they meet your terms. Trial with penalty downell offers get yeses from people who would have said no. To do them, get the card, get the commitment, explain what they have to do to get results and the meetings they must attend, and what happens if they don't. Trials with penalties get more paying customers than normal free trials because they use your product more and actually get value from it. Use the same refund criteria from when your money back attraction offer one to create your trial with penalty criteria. This way, at the end of the trial, they've done the stuff that makes great long-term customers and advertise your business for free. You can break up fees by criteria or you can charge a lump fee. I like breaking them up. You make money by getting people results and turning them into customers, not nickel and dimming them with fees. Use mid-trial check-ins to make more offers. If they love it, give them more of what they love. If they have problems with it, swap it for what makes sense for them. If they aren't using it, offer them the ability to make it up to avoid the fees. Free gift. Free trial training. Not all businesses can do free trials, but if you can, it's a hell of a downell. There's obviously right and wrong ways to do them, and right and wrong businesses do them in. I made a free video for you covering this chapter and as many details as I could. You can watch it at acquisition.com/training/money for free. Enjoy. Feature downells. Why don't we try this instead? I can't remember one in 2019. This new downell tripled my close rate from 25% to 75% last quarter. And even crazier, more people bought the main thing, he said between bites. You started offering a payment plan or a discount. Neither. Payment plans take too long, and discounts devalue my product. Huh? We talk about a high ticket product, right? Yep. Gez, what are you doing? I lower the price, but I justify it by cutting a feature. That way, I'm not discounting. So, what feature did you cut? My full money back guarantee. I never thought of guarantees as a feature. Super. Wait, you downsaw by removing your guarantee? Yep. Works great. When we get a price objection, we just say, "If you don't want the option to get your money back, you can pay less or you can keep your money back guarantee. Which would you prefer?" Once they understand what they give up, they often say, "Screw it. I'd rather get the guarantee and get my money back." Ah, so they only see the value of the guarantee after you remove it. And that also explains why so many people are buying the main thing. Clever. Then I followed up. How do the numbers break down? Before I only had one full price option. So if 100 people got on a call, 25 bought. Now 35 people buy the main thing and 40 take the downell. So it upped your full price buyers total close rate and cash upfront. Nice. Yeah, it changed my life. He said the last two chapters covered payment plan downells and trial with penalty. We downsold by keeping the overall price the same, only changing when and how they paid. In this chapter, we cover feature downsells. With these, we downell by lowering the price. But instead of a discount, which makes the same stuff cheaper, we'll lower the price by changing what they get. Description: Feature downells lower prices by changing what customers get. I do them by offering less quantity, lower quality, lower price alternatives, or cutting optional components. All features have a price and a value. If you remove something, the price goes down, sure, but the value goes down, too. What features you remove and how much you lower the price affect how good of a deal the person gets. This change in your offer's price to value affects how people buy. People want to get the best deal for them. For instance, if you remove stuff they hate and lower the price a little, they get a better deal. If you remove stuff they love and lower the price a little, they get a worse deal. Both get people to buy. In the story, customers love the guarantee. The guarantee had far more value than its price. So, even if they said no at first, removing the guarantee instantly showed its value. Customers saw the higher priced offer as a better deal. So, after seeing the downell option, they bought the first offer. People will see the value in the thing you removed after they see the difference in price. As in, people weigh how much money they save against the value they lose. So, clever feature downselling gets customers to re-upsell themselves on more expensive offers. This means you want to remove features from highest to lowest value. Since people want more value for their money, this incentivizes customers to make the highest value purchase for them. Feature downells have a simple formula. Take something away, lower the price, and in so many words, ask, "How about now?" Feature downell examples. Future downselling product and service quantity. For services, this might mean a lower amount, fewer sessions, less time, or shorter duration. For products, it means fewer of them. Product quantity downell. Instead of a 3-mon supply, how about we just start with one service quantity downell? Instead of four sessions per month, why don't you just start at two? Feature downselling, product quality. Think older versions, less reliable materials, materials of lower social status, etc. Product quality downell. Instead of leather seats, we can do vinyl. How's that sound? Feature downselling. Service quality. This means a lot of things. I'll give you a few ways I change quality of services. Hint, this also works to increase service quality. Service quality downell. Instead of 5minute response times, why don't we start you at overnight response times? You'll save some money and you'll still get your answers just with a small delay. More service quality features. Time availability. comes specific times versus whenever you want. Days of week, Monday, Wednesday, Friday versus any day. Times of day, 9 to5 versus 24 hours. Amount of time, 15-minute support calls versus 60-minute support calls. Location availability, this one location versus all locations we own. Cancellations, reschedule fees versus reschedule whenever you want for free. Speed of response, reply in minutes versus hours versus days. Speed of delivery, wait in line versus priority versus same day next day versus next week. Service ratio, one-on-one versus one to many versus many to one. Communication method, tech support versus chat support versus video call support. Provider qualifications, owner versus longtime employee versus new employee. Live versus recorded. Watch it happening now versus watch it after it happens later. DIY versus DWI versus DFY. Do-it-yourself versus done with you versus done for you. Expirations works forever versus works for X time versus works only at specific times. Personalization generic versus made just for you. Insurance/Garantee length of time for one year versus for life. Coverage specific bad thing happens versus any bad thing happens. Terms unconditional versus only if you do X, Y, and Z. That should get you started. Downselling by removing entire features. Rather than lowering quantity or quality, you remove the feature itself. In the story, he removed the guarantee. Removing entire feature downell. Instead of priority chat, email support, and calls, why don't we just keep chat and email support, but drop the calls to save you some money. You'll still get your answers. It'll just save us time, and we can pass those savings on to you. Feature downselling done for you to do it yourself. If someone says no to all your service downells, you can sound sell another product that solves the same problem. done for you to do it yourself product downell chiropractor instead of chiropractic adjustments let's just start you with some tools you can use on yourself at home then you'd sell home massage tools foam rollers mats etc painter if you can't afford me painting your house why don't I just give you the paint and lease you one of our spray machines for a daily rate instead of me and my team buying your company and actively growing your business why don't you just attend a workshop cough go toacquisition.com Important notes. Remember, never negotiate the price. People who demand to pay less for the same thing are business terrorists. I don't negotiate with terrorists. If they want to pay less now, I offer a payment plan. If they want to pay less overall, offer a feature downell. But I don't let anyone pay less just because. Maintain the position of a helper guide. Remember, feature downselling means trying to find the best deal for them. This keeps the conversion collaborative rather than competitive. If you act pushy, your offers will exhaust customers faster. If you stay a helpful guide, you can downell as many offers as necessary without exhausting the customer. Tweak your feature downell process. We have the job of making the product have the highest value to cost in the eyes of the customer. But in the beginning, you won't know much about the customer's preferences. So, as you solve the same problems for the same type of customer, you learn what they find the most valuable. Once you do, you can standardize your feature downell process. Feature downells close more people when you have feature combinations set ahead of time. how I standardize my downell process. First, I cut something valuable and lower the price a little. I do this to get them to reconsider the original offer or price. If that fails, I continue removing features and lowering the price until they buy it. I'd rather people buy something than get nothing. Name your feature combinations. Name the most expensive combination after a status your customer would find aspirational. The whale package, the total transformation, the high roller, etc. Look at airlines. Make your version of first class, business class, economy. I name my cheapest combination the minimum. I like it because it implies they have to at least get that. If someone rejects all other packages, I just say, "So, nothing more than the minimum package then to get them to say no to say yes." Like the classic upsell temperature check after two downells, just like the payment plan. If you make two changes in a row and they still refuse, make sure they really want the thing. I'd say something like, "Got it. Real quick, just want to make sure on a scale from 1 to 10, how bad do you want this?" If they say or above, "Start a payment plan downelling." Awesome. Don't worry. we're going to figure out a way to make this happen for you. If they seven or below, then you say, "What would a 10 look like?" Then recombine the features and try and accommodate their 10. Note, this means you can alternate between payment plans and feature downells. When you use both, you become very difficult to refuse. After each downell, ask deal or fair enough. This works astonishingly well. Fear people will see you the change in your offer for them and then say no, that's not fair. Listen to how I present the feature downells on episode 202 of my podcast, The Game: How to Close Everyone: Downselling Like a Pro, which you can listen to on Spotify or Apple or iTunes or wherever you listen to podcasts. Free orientations boost do-it-yourself feature downells. Once someone has refused all my done for you offers, I ask, even though we're not going to work together on X, I still want to help. How about you just come in for a free orientation on X tomorrow? At the end of the orientation, I offer a DIY product that solves the same problem as the done for you service. For example, I offered a free orientation to people who refused my fitness offer. Of the people who showed up to the orientation, about half, almost all of them bought supplements. It got me money from people who had otherwise said no. Free money for little extra work. Feature downell your guarantees. If you already have a guarantee, make removing it part of your feature downell process. People value security, so removing it gets many to realize its value. This often flips an initial no back to a yes. Feature downell current customers. Customers who use all the features they pay for, keep paying longer than customers who don't. So once you see a customer isn't using a feature, offer a lower price, only paying for the features they use. Do this proactively. They'll either tell you they want to keep it and might start using it again, or they'll be happy you gave them a better deal. It takes work, but it beats them actually cancelelling. Fun fact, customers we've down into a lower package just for them have the second highest LTV of all my customers. When people have a product they like at a price they find fair, they tend to keep paying for it. Barter with reviews, testimonials, and referrals. Bartering is the oldest form of exchange. My sharp rock for your rabbit skin. And I love bartering. If I get a price objection, sometimes I offer discounts in exchange for advertising. Example, I'll knock a 100 bucks off if you one, leave a review on all sites. Two, leave me a video testimonial. Three, make a public social post at the beginning, middle, and end of our program showing your progress. Four, introduce me to two friends who you'd want to do this with. deal. To me, the advertising worth more than the $100 discount. To them, the $100 is worth less than the advertising. Win-win. Summary points. Feature downells lower prices by removing stuff. You take something away, lower the price, and ask, "How about now?" Typical feature downells offer less quantity, lower quality, cheaper alternatives, or remove features altogether. People tend to see the value in what you removed after see the price difference. This may get more people to take the more expensive offer. If you remove stuff they hate and lower the price a lot, more people will take the downell. If you remove stuff they love and lower the price a little, more people take the original offer. The first downell gets them to reconsider my first offer. The rest of my downsells gets to consider the best deal for them. If a prospect rejects multiple downells, see if they still want your thing before continuing. If a prospect likes a combination of features but still doesn't like the price, start payment plan downelling. Very effective. Feature downell current customers before they cancel. You can discount customers in exchange for them advertising your business. Free gift feature downell training. No opt-in. Understanding features within services and products gives you a huge advantage. It can help you make your stuff super profitable while staying attractive to the customer. This is one of my favorite topics and I made you an additional training that covers it. You can watch it as always at acquisition.com/training/money. Downell offers conclusion. Everybody buys something. Downsells give you another shot at getting customer by turning nos into yeses. For that reason, it's less about having a hundred different products for the same offer and more about having 100 different offers for the same product. But no matter what, the offer is never the same stuff for cheaper. We just keep tweaking the offer until we make it the best deal for them. The extra cash explodes our 30-day profits and blows us past our goals. So, we've used attraction offers to get customers to buy once. We've used upsells to get them to buy the next thing. And now, I've showed you the three most powerful downsell processes in case they say no. Payment plan downsells, trial with penalty, and feature downells. Next, we've got the final stage of a $100 million money model. Continuity offers. How to keep them buying for good. Section five, continuity offers. You can shear sheep for a lifetime, but you can only skin it once. John, an early mentor. I've been a continuity guy my entire life. Personal fitness, then gyms, then gym licensing, then supplements, then software, and now with acquisition.com. Lots of stuff. Needless to say, I'm a fan. Main reason. When you do continuity right, you get more customers and make more from them. Continuity offers provide ongoing value that customers make ongoing payments for until they cancel. They boost the profit from every customer and give you one last thing to sell. Continuity offers are awesome because you sell once but get paid again and again. Let me explain. Let's say you offer a $1,000 thing to 100 people and 10 buy. You make $10,000. 10 times $1,000. Now, let's say you offer the same thing to 100 people, but you make $1,000 thing $50 a month instead. At 50 bucks, we can get 40 out of the 100 people to buy. And if you keep those people for 20 months, you still make $1,000 from every customer. So you go from making $10,000 now and $0 over time to $2,000 now and $40,000 over time. And as an added bonus in the first example, if you only sold 10 customers, you'd only have 10 customers to upsell later. If you used a continuity offer and sold 40 customers, you'd have four times the customers to upsell later. A massive difference. This illustrates the pros and cons of continuity. You can attract more customers compared to something more expensive, but you make way less money now. That makes it tough to use an attraction offer on its own. Even if you have more money-making potential tomorrow, continuity attraction offers leave you strapped for cash today. By making continuity offers last, we get the best of all worlds. We get cash today from attraction offers, upsell offers, and downell offers. We get a little cash today and a tons of cash tomorrow from continuity offers. To be clear, you can make continuity offers wherever and however you want. They can attract new customers, upsell, downell current customers, and re-engage old customers. Also, only some stuff makes sense for a continuity offer. It's silly for someone to pay for a one-day workshop forever. It makes sense for them to pay until they cover the cost and that makes it a payment plan. At the same time, you probably make a mistake to offer a single price, even a big price, to provide a service forever. If your customers get ongoing value, it probably makes sense for them to make ongoing payments. The three continuity offers. All offers depend on getting customers to buy it, but continuity offers depend on getting customers to keep buying. I get them to do both by combining bonuses, discounts, and fees. Offer one, continuity, bonus offers. Offer two, continuity, discount offers. Offer three, the waved fee offer. Now that we've got that covered, you can't get customers to stick to your continuity unless they've started. So, let's start there. Free gift continuity and continuity offers training. Almost every business I've built has been driven by continuity. It's a snowball that grows and grows. I made a video for you that outlines more training on the topic. You can watch it free without giving your email at acquisition.com/training/money. Continuity bonus offers. If you like this, you're going to love what I have next. Fall 2019. I taught gym owners how to sell six week challenges, and they were making money handover fist. But some of them weren't that good at converting people into continuity after the challenge. Then out of the blue, I saw a gym that used to struggle posting numbers way higher than some of our best performers. Naturally, I investigated. Dude, your numbers are insane. How do you get so many members? I asked. I'm not really doing the sixe challenge, he said. Wait, what do you mean? You're marketing six week challenges though, right? Yeah, but I offer them something else when they come in. Okay, help me understand. So, we go through the normal pitch. We explain the price, yada yada. As soon as they say they're interested, we ask if they want to get it for free. Of course, they say yes. Then I tell them that if they become a member, we'll make it free, which they love. And on top of that, if they become members, they also get member exclusive bonuses. Members get better class times, attaining booth, VIP events, all sort of cool stuff. It converts like crazy. Last, we upsell a discounted prepaid membership. How's that go? I asked. Well, for anyone who joins, we immediately say, 'Want to see even more money? They lean in. We offer a prepaid discount and bonus for 6 months of membership. This is awesome. Does anyone even take the original challenge offer anymore? Some do. Sure. Can't be mad about more upfront cash, he said. I dig it. Break down some of your numbers, would you? He continued. Before, we'd get 34 out of 100 to sign up for the challenge. Then a few weeks later, we convert half, 17 to stay. Now, we only get like 15 to sign up for the challenge, but we get 40 straight into continuity. And of those 40, about eight of them take the six-month prepaid upsell. So, let me get this straight. You tripled membership sales and you still get upfront cash from challenges. And you stack even more upfront cash from prepaid memberships. He could barely contain his grin, and for good reason. His tiny tweak was genius. Description: With continuity bonuses, you give the customer an awesome thing if they sign up today. Typically, the bonus itself has more value than the first continuity payment. That's all there is to it. Bonus adding value. For products, you can give away many small things or one big product that complements the subscription. For services, you give away to find program, onboarding, setup, or feature that adds value. Discount, lowering costs. Remember, anything you offer for free, you can also offer as a discount. Free stuff and discounts both affect how we make decisions. So, we want to do both to get the benefits of both. When making continuity offers, I get more people to start if I add more good stuff bonuses and take away more bad stuff discounts. And of course, it all works better with a dash of urgency if they join now. Also, you can offer the bonus as a standalone purchase, or you can only make it available if they buy your continuity. Either works on their own. Continuity offers get less cash now, and that makes it tough for getting customers profitably. But the way I use them, we can still hit our 30-day profit goals. Here's how. First, I like to do all my big cash attraction offers, upsell and downell offers. Then, continuity offers get a little bit of cash for the first month's payment. Then, I offer people who bought one month a discount on prepaying more months. This further boosts 30-day profits, giving me more cash to advertise and stacks recurring revenue. Not too shabby. Author note, no successful continuity business I've seen has a standalone membership offer. They all have other bells and whistles to upsell. Main reason continuity offers are tough to advertise profitably. Nobody wants to make a recurring commitment to something they haven't tried. To make up for this, businesses attract customers with stuff like trials. Then once people join, they upsell other features and longerterm prepayment options. This gets them the cash they need to advertise while building their recurring revenue. Examples of getting people to start on continuity. Physical product. Pet food continuity offer. Onetime bonus. Get every dog toy you've ever made for free and $800 value when you sign up for monthly dog food shipments for $59 a month. Monthly bonuses. You'll get a new dog toy every month as a member. Service. Short-term accelerator offer. Onetime bonus. Short-term accelerator costs $1,000 on its own. Get it free when you become a member for $100 a month. Bonus package. The VIB community enjoys first inline access to our events, longer support hours, and better support reps. Digital products offer. Onetime bonus. Get all my past 40 newsletters valued at $15,880 by becoming a member today only for $399 per month after a 30-day trial. Limited discount plus lifetime bonus. And if you pay today, you can unlock a lifetime discount to $200 per month. Get early digital access and a physical copy every month. Note, use the elements from the feature downells to create better bonuses. Important notes. Focus on the bonus, not the membership. Join my membership program isn't nearly as compelling as get this free viable thing. So advertise that. then explain the rest after they show interest. Bonuses kind of work like upsells. More of the same. You get two years of past newsletters for free by becoming a member. Complimentary. You get nutrition services for free when you sign up for a fitness membership. Upgrade. You get a gold membership when you buy a bronze membership. Limited availability. Keep your bonuses related to your core offer. If the bonus is too different, you'll attract the wrong customers. For instance, don't advertise a free t-shirt to upsell tech services, but advertising a free t-shirt to upsell t-shirt printing makes sense. Make bonuses things you already have and do. For instance, the past 2 years of newsletters cost no extra time, but are super of high value. And onboarding is something that you have to do with a client anyways, so you might as well slap a price on it and give it to them as a bonus. If you value it, they will, too. Physical bonuses and digital products and digital bonuses with physical products. If I have a digital membership, I might offer a hat, shirt, or tool, etc. related to the offer. If I have a physical product or service, like a boxing gym membership, offering to live stream classes can get more people to sign up. This strategy often lowers the cost of getting customers more than the cost of the bonus. And that's the point. Also, if some people take the bonus and run, the lower advertising cost still make up for it. If customers are too expensive, give it a try. Use realistic bonus pricing. The bigger the value anchor on your bonus, the more compelling the offer. But you also have to make that anchor believable. Some business owners make up ridiculous values. Don't do this. It won't anchor the customer and you'll lose trust with them. This is a great opportunity to give away products you've sold before. You can anchor their actual prices as real discounts and bonuses. You can bonus your customers by giving them titles. Consider giving customers titles after they stay 3, 6, or 12 months and beyond. Titles like silver, gold, diamond, double diamond, etc. A good friend of mine does this, and after a while, she found her customers cared more about the title than the other bonuses. She told me that they even introduce themselves to her by their title. So, if you can't think of something to give them, at the very least, you can call them something special. You can make free bonuses, discounts, and make discounts, free bonuses. Free bonus. Become a member for $200. Then you get this $1,000 program as a free bonus. Steep discount. Get the $1,000 program for a dollar when you become a member for $200. When making your continuity offer, anchor the bonuses first. Sell them the benefits of the amazing bonus, not your continuity offer, the bonus. Then use your highv value bonus as an anchor. It may shock them and that's okay because then when you ask, "Do you want to know how you can get this for free?" If they do, which they will explain how become a VIP member today and you'll get it all as a free gift for joining or you can just buy it for x very big number. Which would you prefer? More bonuses get more people to join. After you ask them if they want to know how to get it for free. You tell them they can get it when they join. Then you say, "On top of that, when you become a member, you'll get amazing thing one, Amazing Thing Two, and Amazing Thing three. Mention the individual dollar values of each to anchor the value. Stacking bonuses this way gets more people to join your community. Making bonuses available only to those who join. If you want to force everyone into continuity, then offer continuity as the only option. In other words, make the bonuses only available if they join the membership. pricing for continuity versus upfront cash. For whatever reason, some people pick onetime payments over continuity, even with higher onetime payments. So, offer a higher onetime payment option. This way, some customers will make you more money today, while others stack recurring revenue for you tomorrow. We change the price depending on our goals. I've tested this a ton, at least for me, the data on this range looks clear. Check it out. To get 50% to choose continuity, make your standalone offer 1.33 times more. Example, 3.99 standalone offer is 2.66 66 a month or 199 per month membership to get 60% to choose continuity. Make the standalone offer 1.66 times more. Example 4.99 standalone offer which is 333 a month or the 1999 membership to get 70% to choose continuity. Make the standalone offer two times more. Example $600 standalone is $399 a month or $1.99 per month membership to get 80% to choose continuity. make the standalone offer 2.33 times more. Example, $6.99 standalone membership, which is 4.66 a month or $1.99 per month as a membership. To get 90% to choose continuity, make the standalone offer 2.66 times more. That's $799 as a standalone offer, which is 532 a month or$1.99 a month if you become a member. I got these members from testing a lot of different standalone offers versus continuity pricing across thousands of gyms. You may have to figure this out for yourself with your own pricing. The exact numbers matter less than the principle. The smaller the standalone price compared to the continuity price, the more people buy the standalone. The larger the standalone price compared to the continuity, the more people choose continuity. If you want more cash upfront, make bonuses and continuity plus bonuses separate offers. Make the bonus only offer a single payment that's 33 to 266% more expensive than the first month of continuity plus bonus offer. The bigger the price difference, the fewer standalone purchases you'll have, but the more money you'll make upfront from each. Based on the data I just shared, people pay 33% more to avoid continuity. In other words, even if you charge 33% more for a onetime purchase, half will buy it. If you want even more cash, offer bulk prepaid discounts. Vault continuity upsells boost 30-day profits by a lot. Let's say you offer buy five months, get one free. Only one out of every eight people have to take that upsell to raise 30-day profits by 50%. That can make or break your money bottle. Note, the laws of discounting apply. The larger the discount, the more people will take it. If you want commitments, you can pair the bonus with a commitment. For example, only allow customers to get the bonus if they join and commit for 3, 6, or 12 months plus. You'll get more people to commit this way, but fewer will take it, at least compared to giving it to everyone. In the beginning, keep it simple. Just offer bonuses standalone and continuity month-to-month. Summary points. When it comes down to it, offering real discounts and then following with your valuable free bonuses makes people excited about your offer. Then, if they agree to your continuity offer, you can further upsell blocks of time to boost your 30-day profits even more. With continuity bonuses, you give the customer an awesome thing if they sign up today. Typically, the bonus itself has more value than the first continuity payment. If you use continuity as an attraction offer, advertise what you give away, not what you sell. Make your bonus related to your core offer so you engage the right leads. If possible, make your bonuses stuff you already have and do. This way, you don't need to change your business or create new products. More people start continuity if you add more bonuses and discounts. To add bonuses, add more good stuff only if they sign up. To discount, take away the cost of actual products, services, and features you sell. Sell the value of the bonus before telling them how they can get it for free. Offer bonuses as a standalone option for more cash upfront. If you want half the people to take the standalone offer, price it 33% above your continuity. Boost up cash even more by offering a continuity to discount if they buy in bulk. Free gift continuity bonus offers training. There are so many ways to structure bonuses to drive more continuity sales. I made a video for you that covers this chapter and other creative ways I've seen them used. You can watch for free at acquisition.com/training/money. Continuity discount offers. If you sign up today, you get xtime free. Spring 2018. Leila and I had just moved into one of the nicer Austin suburbs. On our afternoon walk, a neighbor smiled and waved us over. It looked like she wanted to make welcome to the neighborhood small talk. I hate small talk. But as I got closer, I got more interested. The yard was perfect. A Ferrari took out the garage for spring cleaning. the patio table littered with cigarettes and beer cans. Huh? Hi there. Welcome to the neighborhood. Let me get the husband. I smiled through gritted teeth. Here we go. Out came the character in backwards hat flip-flops with a strong Midwest accent. Speaking a mile minute in the widest grin you've ever seen. Hey, brother man. Nice to meet you. I can tell you're no doctor or lawyer living here. So young. What kind of hustle you got? He also got straight to the point. Relief. I told him a bit about my gyms, launching gyms, the rise of gym launch. He nodded with approval. He said he liked having another business owner on the street. "What about you?" I asked. He smirked. "Trash?" "What?" "Trash?" He saw my confused look and continued. "All right, so you see, I knew from my time working trash, there wasn't much competition. Big commercial places and all. Went to the same place for the trash needs. So, what'd you do?" Well, I had a truck. I took my credit card and I gambled. I went to all the big apartments and said I'd do their trash for a whole year free if they contracted me to do the next 5 years paid. It worked good enough. They all made me their trash man before I knew it. Dang, I said. You fronted an entire year. Uh-huh. And I'll tell you what, it was the toughest thing I ever did. No one would invest in my business, not even my family. They all called me crazy. But after that one year mark passed, the cash came flooding. I ate real fat then. And after a few years using that plan, I sold the whole shebang for a pretty penny. Nice, man. I never would have thought there was so much money in trash. There's cash in trash, baby. What can I say? Oh, yeah. you want a beer or what? Needless to say, we stayed friends to this day. Listening to his success showed me the sheer power of a simple offer done right. That said, let's go over some important stuff so you can make it work like he did. Also, if you think this looks like buy X, get Y free done continuity style, then you'd be right. However, there are enough differences specific to continuity that it just divided its own chapter. Description. To make a onetime continuity discount, you give products or services away for free if the customer commits to buying more products and services over time. This can attract loads of potential customers and make an easy sale anyone can close. If you look around, you'll see this software in many different industries. It works. Think internet, pool cleaning, gym memberships, landscaping, and anything rentalable. I mentioned common ones, but you can make this work in any business so long as you know two things. First, how you apply the discount. I do it five ways. And second, your cancellation policy because people don't always keep their commitments. Examples, I discount in four ways. upfront, at the end, an even spread, or after the first month or two. So, let's walk through each upfront. You apply the discount upfront and push out the term as in the official time starts after the free time ends. This works best in industries who have successful history of enforcing contracts, cell phones, storage, real estate, equipment, or anything with collateral. Two notes. First, if you have historically high churn, then skip this one and consider the others. Second, this does not get customers profitably. It gets customers but delays cash. So if you want more profitable options, continue on. Two, at the end, you can apply the entire discount at the end and push out the term. So long as they make every payment on time, they get a bonus time equal to the value of the discount. They earn their free time. Third, spread over time. Apply the discount across the term. Say you give three months free for a one-year commitment. At $200 per month, you've discounted $600. By spreading that $600 over 12 months, they get a 600 divided by 12 months equals $50 discount each month. You can also tell them that if they made all their payments on time, they can keep the discount for life after the term is over. Fourth way, after the first or second payments, they pay a few times and then they get their onetime discount. This way, you collect a bit of cash to cover advertising and some delivery costs. I prefer to do it by presenting the offer as first and last or last month upfront or adding some sort of activation fee before getting the bonus value. It ensures your customer used the valid form of payment. A small but important detail when you run a business. Important notes. Highest value per word note in this book. Skip this if you hate money. Bill weekly. Weekly. Every 2 weeks. Every four weeks. Every 12 weeks, etc. Here's why. There are 12 months in a year, but the year has 13 four-week cycles. That's an 8.3% difference. If I offer my thing at $100 every four weeks versus $100 a month, the same number of people will buy, but I make 8.3% more annually. To put this in perspective, if your business has 20% margins, this skyrockets annual profit by 41%. And the best part is you don't do any more work, just change a few words. What else can you do legally that makes so much money for so little work? This has literally made me millions in pure profit. So yeah, do it. Don't eat into the term with discounts. Extend them. Let's say you offer 3 months free when you sign up for a year. That could mean they pay for 9 months then get three free. So 12 months total. Or that could mean they pay 12 months and get three free 15 months total. I prefer with extending the term. Then I can feature downell to a shorter one. Get 3% more revenue for four extra words. Yeah, it's X plus a 3% processing fee. In my life, I've never had anyone not buy because of a processing fee. But 3% added to your topline for no extra work goes straight to your bottom line. If you run a 10% margin business and add 3%, you just added 30% to your profit. Worth it. And this works especially well when paired to get two forms of payment. Recurring businesses lose mountains of cash because of payment processing problems. First, customers don't cancel, but their payment information changes or expires. Second, customers max out cards or have insufficient funds. We fix both issues with the same solution. I ask them if they want a 3% discount, a pretty standard processing fee. Do you want to save the processing fee? Awesome. Give us a second for payment in case anything happens to the first one. If they ask why, which they rarely do, just say, "We only have the processing fee because it costs us manh hours to get new information every month from our customers. So, if you save us time, we pass the savings on to you. Get AC if you can. If you get a second form of payment, try to get a short for automated clearing house. This is a form of payment that links directly to their bank account. It's the cheapest way to transact besides cash. If you don't know what a is, look it up. Gift cards. Give the discounted time in the form of a physical gift card. You can mail it to them if they're out of the area. The customer can apply the discount whenever they want after their first three payments or so. Then you can say they can also gift that to a friend if they want. And now you've got a lead magnet. Beyond that, many people simply forget to use it. In that instance, you just got a full price signup. Nice. Try giving a lifetime discount at your most common turn point. You advertise the lifetime discount, but you make customers earn it. They get a lower rate if they stay past X period. Make X month your average customer drop off. Let's say you know every customer stays four months on average. You tell everyone upfront they get a lifetime discount after month four. As the time approaches, tell them their new lower rate is right around the corner. Real world example. I saw a rice company selling a lot of rice. They offered three pricing options. One, a onetime price. Two, a 5% off subscription. and three 15% off if you stayed on the subscription for five straight months. You earned the lifetime lower rate. I'm sure they figured out that that was just beyond where most people canceled. Cancellations. You need to have a cancellation policy figured out ahead of time. There are many common ones. 30 or 60 days notice, cancellation fees, cancel any time, etc. Since everyone comes into my continuity offers on a discount of some kind, this is my favorite. Just make the cancellation fee equal to the discount they agreed to. So if they got $600 in discounts by committing, they can pay $600 whenever they want to cancel. This is very simple to explain. Make sure customers know how to cancel. If customers have nowhere to complain inside your business, they will definitely complain outside of your business. If you have no obvious way for them to cancel, more people will vanish and complain. By having a clear way for them to contact you, then you can have a real chance to save it. Small businesses don't get rich by making stuff hard for their customers. If you make it easy, you'll suffer fewer onestar reviews and have a chance to save them when they do because you'll know about it. If a customer wants to cancel, ask to do an exit interview. Some people like to vent. Let them get more angry about the problem than them. They may try to calm you down. Sometimes they'll save themselves. If they complain about something that you can solve, by golly, solve it. If they wanted a better product, do a rollover upsell into higher level of service if you have one to offer. I've had many people buy a lowerc cost offer, then complain because they wanted a higher cost feature. So, I offer the higher cost feature and then they buy. Yes, it happens and yes, it works. Use cancellation fees to the customer's advantage. I might say, I'll wave your cancellation fee if you come in and tell me what I could do better. This gives customer a real reason to give feedback. Then I can use their feedback to fix the problem or offer something better suited for them. At the very least, they'll have nicer things to say about the business if I actually try to solve the problem. I routinely save a third to half of customers that agree to exit interviews. Summary points. Continuity discount offers give continuity time for free if the customer signs up today. Front-loaded discounts convert more customers but may have higher churn. Backloading discounts convert fewer customers but they have lower churn. Spreading the discount keeps cash flowing while providing the full discount. Use gift cards to give the discount to new customers and allow them to gift it to a friend or use it on themselves at a later date. You get a full price signup and a referral. Allow customers to earn a lifetime discount at your month of greatest churn to encourage customers to stick through it for a lifetime lower rate. Lights cancellation terms get more people to sign up but more people to leave. Harsher terms get fewer people to sign up but fewer to leave. I prefer customers cancel by paying the discount they got with their commitment. This puts them back to the month-to-month rate. Make sure customers know how to cancel. If a customer wants to cancel, ask for an exit interview. Incentivize them by saying you'll wave the cancellation fee if they do. You'll often be able to save or upsell them from the conversation. At the very least, you'll understand what went wrong so you can do better. Free gift. Continuity discount offers training. Like bonuses, discounts are only limited by your creativity. In this chapter, I give you the building blocks. I also made you a video covering some of the creative ways I've seen used and work. As usual, you can watch for free at acquisition.com/training/money. Waved fee offer. You can sign up monthtomonth with the setup fee or I'll wave it if you commit to a year. January 2021. For years, I've heard stories about the legend of this high ticket sales guy. Today, I finally got to meet him. But then it got weird. You'd think a man with a reputation like his would love working, but not him. In fact, his views about work nearly opposed mine. He aimed to work as little as possible, and those lifestyle guys tend to put me off. But he had his legendary reputation for a reason, so it made me all the more interested. I'd rather make a few million bucks a year with zero employees and cool customers than build some gigantic business that panders to anyone willing to give me a buck, he said. I don't need to feed my ego. I just collect monthly payments and chill. Yeah, right. Monthly payments. I was like, "That sounds less chill than up front. Don't you have to deal with churn, backouts, and all the other hassles of continuity?" I said, "Nope, not really. The way I sell is so simple, you'll kick yourself once you hear it." He said, "I'm all ears." I tell customers they have two options. You can go monthtomonth with a big setup fee. It covers the cost of getting you started, but you can leave whenever, or if you commit to a year, I'll wave the fee. And I make the fee huge so buyers commit to avoid it. I also have them initial. They understand they can quit early if they pay the fee I waved. Why such a big fee? I asked. It costs a lot to quit in the beginning, so that keeps them engaged. And I chimed in, and once they pass that point, it costs about the same to cancel as it does to stick it out. So, they just stick it out. Bingo. Description: Waved fee offer works like this. First, you ask the customer to pay a startup fee as part of joining a month-to-month program. Typically, I do three to five times my monthly rate. Then you offer to discount the entire fee if they commit to a longer term. But if they cancel inside the term, they pay the fee. Customers can choose to pay a significant fee and keep the option to quit at any time, or they can commit the 12 months and get the fee waved. Many will commit to avoid the big fee. We take a greater risk if they pay month-to-month, but they take a greater risk if they commit. If a customer chooses month-to-month, we lower our risk with the startup fee, but we lower their risk yeartoear by waving those fees. And if they commit and want to quit early, then okay, they pay as if they had chosen month-to-month from the beginning. Very simple. Bottom line, customers will stay longer if leaving costs more than staying. Example, since the offer focuses more on pricing, it'll look the same in all continuity businesses. The following examples pulls from the story to give you a closer look at the mechanics. Waved fees with commitment. Commitment length 12 months. Monthly rate $1,000 per month. fee $5,000 if they pay month-to-month. So, option A, pay onetime fee of $5,000 plus $1,000 for the first month, then pay $1,000 per month thereafter. Cancel whenever you want. Option B, wave the $5,000 if you commit to 12 months, pay $1,000 per month, only pay the $5,000 if you break your commitment early. Important notes. Fees get them to start. People get value out of commuting immediately because they avoid the fee. People want to avoid fees, so more people sign up to continuity. Mission accomplished. Fees get them to stick. People will stick for the same reason they started. By sticking, they avoid the fee. People quit for millions of reasons. But incurring an additional and larger fee in order to cancel their original reason for quitting immediately shrinks compared to the value of avoiding the fee. In English, if the cost to quit exceeds the cost to stay, they'll probably stay. Presenting the fee, justify the fee by explaining the cost of taking on new customers for long-term programs. Basically, if they want short-term flexibility, they pay their own setup costs. But if they commit to staying long-term, we pay their setup costs for them. If someone asks for additional reasoning, just say, "It costs us money to get you started. If you only want to test this out, you cover those costs. If you commit to longer, I'll cover them." If more than 5% of people want to cancel early, look into it. Pricing incentivizes stick, but can't and shouldn't overcome a terrible product. You want to nudge them, not handcuff people into paying for something they hate. Then they'll just hate you. If you want more cash up front, have a smaller fee. A smaller fee encourages people to go monthtomonth. A larger fee encourages people to make the commitment. But if you need more cash up front, you can make the fee one and a half to three times the monthly rate. When you do this, more people will take it and you'll get more cash up front. Drop the fee after the customer fulfills the commitment. If someone stays the entirety of their commitment, then wants to cancel, they have earned their free cancellation. It doesn't stick forever. This makes it equitable. I prefer this offer for commitments of one year and longer. The longer the commitment, the better this works. It works especially well with services that take a long time to work. Think SEO, investing, weight loss, etc. It keeps people committed when they get emotional. Cancellation fees for a cause. If you want to keep customers extra motivated, you can donate their fee to a cause that they are against. Example, what cause do you absolutely hate? Great. If you cancel early, I will be donating your setup fee to them. This gives them two reasons to stay. First, because they don't want to shout the cash. Second, because they don't want it to go to a cause they hate. Summary points. Waved fee offers present a month-to-month option with a fee or wave the fee if they commit. I typically make the fee three to five times my monthly rate. At minimum, the commitment length should be a year. The larger your fee, the more buyers will offer the commitment. The smaller your fee, the more upfront cash you'll get. If the customer meets the commitment, the fee officially goes away. Free gift. Wave fee video training. Wave fees are so so so effective. I can't wait for you to actually use them and see for yourself. To make sure you feel confident doing them on your own, I made a video walking you through them. As usual, you can watch for free atacquisition.com/training/money. Continuity offers conclusion. The only thing better than getting someone to buy once is getting them to buy again. Continuity offers provide ongoing value that customers make ongoing payments for until they cancel. Many businesses use continuity offers to attract customers for less, but it crashes 30-day profits. This makes profitable advertising difficult. I use continuity offers differently. I make them last. I start with profitable attraction offers, then make my upsell and downell offers, then I offer continuity. And if they accept, I upsell bulk payments of time or product at a discount. Then they automatically enter continuity after they've used up their bulk purchase. This way, I make even more cash and I get the recurring cash benefits of the other continuity customers. Continuity offers work with rewards or punishment. I prefer rewards and two of the three continuity offers I explained to use them, but there will always be times when a more traditional contract makes sense. In those situation, I like wave fee offers. In the next section, we will create our $100 million money model by combining all four offer types. Attraction offers, upsell offers, downell offers, and continuity offers. Let's put a bow on it. Author note, last call. have a cool continuity offer. If you do, I'd love to see it. You can send it to valueacquisition.com. Just follow the five-step format I use in all the examples in this book and send any links that you can so I can check it out. I'll give you credit and I'll publish the cool ones on my channel. Section six, make your money model. How to take over your entire market. Looking back at the evolution of Gym Launch's $100 million money model today, I accidentally discovered the Gym Launch licensing money model. I went from flying around and filling gyms to licensing the stuff I used when I did it. This way, gym owners could do it themselves. Looking back, it all started with a decoy offer. I attracted new customers with lots of free books, courses, video training, live training, and so on. All the stuff on growing a gym. Each product came with its own free call to help gym owners use it. On the call, I'd offer a decoy offer. Now that you've got the plan, you could do it on your own for free. Or the premium offer. We can help you implement all this stuff for $16,000 over 16 weeks. If they took the premium offer, they'd get a treasure trove of money-making tactics. Tactics that took me years to figure out. People bought left and right. And whoosh, my decoy offer took me to $476,000 per month in 3 months. Not a typo. But I had a problem. Since I only had one thing to sell, I knew my revenue would plateau fast. I needed an upsell to raise profits or gym launch would stagnate. So, I crafted an upsell offer for the more advanced gym owners. I called it gym lords and priced it at $42,000 per year. I used the classic upsell to offer advanced playbooks and services and a community to share best practices as a continuity bonus. I started by offering a hefty $6,000 discount for anyone who prepaid. Many gym owners paid upfront with the money that I had just made them. For the ones who didn't, I offered a payment plan downell. If they said no, I went with 10,000 down and spread the rest over time. If they said no again, I'd go for $800 a week spread over 52 weeks. If they said no again, I said they could start for free. I'd use a continuity discount to frontload the free time for as long as it took them to finish off the first offer. Then they'd roll right into my continuity for the upsell. This way, their payments stayed continuous. And zoom, the classic upsell plus continuity bonus plus payment plan downell plus continuity discount took me to 1.5 million a month. I had another thing to sell. Woo! And it exploded gym lunch's money model to the next level. But I still had work to do. Even though the upsell downell process worked well, some gym owners kept saying no. So I went back to the drawing board. I came up with a more personalized menu upsell with different levels of service. Offered done for you advertising, done for you sales training. I offered turnkey campaigns that made quick cash. And finally, I offered a minimum package continuous access to the original gym launch materials with tech support for a discounted monthly rate. If they didn't want the whole package, I used feature downells to find the best option for them. Almost everyone stayed for something. And wham, menu upselles plus fees or downselles took me to $2.3 million per month, all within 14 months. Then we started Prestige Labs and integrated it with Gym Launch, a totally different business with its own money model. By month 20, we were raking in $4.4 million per month. It was life-changing, and it only took a few darn good products and a hundred million dollar money model to do it. Author note, when I started, I didn't know any of this money model stuff. It only looks clean looking back. But I hope this simplifies things so you take much less time than it took me. Description: A money model is a deliberate sequence of offers. It's what you offer, when you offer, and how you offer it to make as much money as you can as fast as you can. Ideally, to make enough money from one customer to get in service at least two more customers in less than 30 days, and it rarely looks clean, but I break $100 million money malls into three stages. Stage one, get cash. Attraction offers get more customers for less. Stage two, get more cash. Upsell and downell offers make more money from them faster. Stage three, get the most cash. Continuity offers maximize their total money spent. I break my $100 million money model down into these stages because money model growth happens alongside the growth of a business. In other words, if you try to start a bootstrap business from zero on your own with a finished money model, it will collapse on top of you. In fact, none of my businesses started with a fully forced money model. They all start at stage one. even acquisition.com. In my experience, money models evolve like this. First, I get customers reliably. Then, I make sure they pay for themselves reliably. Then, I make sure they pay for other customers reliably. Then, I start maximizing each customer's long-term value. Then, I spend as many advertising dollars as I can to print as much money as possible. My money model is developed this way because I make sure each stage pays for the next. We keep improving each stage until it gets reliable. Also, this means financial and operational reliability. So, fair warning, when your money model starts working, your business starts breaking. Part of the game. So, I suggest you find someone who can build and lead the team to make your vision a reality. When I did, I married her. I hope the same luck finds you. Author note, I want to make myself abundantly clear. Lots of $100 million money models exist. Dare I say $100 million money model exists for every $und00 million business. Remember, plenty of businesses make gobs of money in plenty of ways. I just show the ways that I've actually done it. Example, money models. Gym launch money model breakdown services. Stage one, attraction offer, decoy offer, free do-it-yourself versus premium 16K done with you licensing. Stage two, upsell offer, classic upsell. Once you know how to get them, you got to know how to keep them. $42,000 per year, 36k prepaid for advanced business services. Stage two continued downell offer. Payment plan downell seesaw downell start at 10k with the rest spread over 52 weeks. Final payment plan offer 800 per week for 52 weeks. Stage three continuity offer menu close plus feature downell full package 800 per week. Feature done for you advertising $300 a week. Feature gym sales daily training $200 per week. Feature monthly new releases 500 per week. Feature original licensed materials with tech support 100 per week. Minimum package 100 per week. Micro gyms money model breakdown. Local business. Stage one attraction offer. Win your money back. Pay to enter fitness challenge. Win money back if you meet goals. Stage one downell offer. Payment plan downell. Split pay. Three pay. Free trial with penalty. Stage two upsell offer. Menu upsell. You're not going to get the best results without the right supplements. Supplement bundles. Big bundle personalized to goal. Stage two downell offer. Feature downell. Supplements. Big bundle. Small bundle, monthly subscription. Stage three, continuity offer, rollover, upsell, plus lifetime discount, $50 off per month with a 12-month commitment. Newsletter, digital product. Stage one, attraction offer, free trial, $0, then $3.99 a month after 30 days. Stage two and three, upsell and continuity. Pay less now, pay more later, plus lifetime discount. Pay $297 now and keep that rate for life. Author note, I love this offer. It's nasty. It combines free trial, pay less now, pay more later, lifetime discount, and is an attraction offer, an upsell offer, and a continuity offer. A six-headed money-making monster. This is just a taste of how creative you can get by combining these. And finally, example four, dog food, physical product. Stage one, attraction offer. Buy X, get Y free. Buy four months of food, get two months free. Stage two, upsell offer. The classic upsell, just like the Rena story. Do you want monthly? Do you want dog toys? How about dog vitamins? Stage three downell offer. Feature downell. Just the premium food. Then you don't want anything else, do you? Stage three, continuity offer. Automatic renewal after the first bulk purchase. After 6 months, it continues to monthto month. Cancel anytime. Bingo, bango. Make your own money model. Step one, start with an attraction offer. The goal is to turn strangers into customers and cover our costs. So figure out what you're going to sell, then figure out the best way to present it. The attraction offer has my top favorites. Want your money back? Giveaways, decoy offers, buy XKY free, pay less now or pay more later. Then advertise it. If you get leads who turn into customers, you're on your way. Figuring out what works best may take up to a year. If you want to learn more about advertising, make sure to check out my second book, $100 million leads. Step two, pick an upsell offer. The goal is to get 30-day profits well above our cost of getting a customer and delivering what you offer them. Remember, once you solve a problem, another appears. Those problems also need solutions. You solve the problems your attraction offer creates with upsell offers. So, pick the upsell offer that best matches the problem you solve and how you solve it. The upsell offer section gives you my four favorites. The classic upsell, menu upsell, anchor upsell, rollover upsell. Then you make your offer at their time of greatest need. And remember, make your offer at their time of greatest need. Step three, pick a downell offer. The goal is to get customers who said no to your last offer to say yes to another offer. This way, you sell way more people than you otherwise would, so you make more total cash from the same number of leads. The downell offer section shows you my three favorites. If you want to keep your price the same, change how they pay with payment plan downells or trials. If you want to charge less, change what they get with feature downells. And best of all, you can alternate between them in the same sale. The more flexible you make your offers, the more people will buy them. Step four, pick a continuity offer. The goal here is to get one last sale in our 30-day window and stack recurring cash. So, I try to include continuity in every business eventually. My three favorites are continuity bonuses, continuity discounts, and wave fee offers. Sometimes the best timing for continuity offers happens after the first 30 days, and that's okay. It's better to make the offer at the right time than to try and force it at the wrong time. Author note for bootstrap businesses, you have to get customers at a profit. Unless you get outside investors, start with a fortune, or have an endless source of free customers, achieving a money model is the only way you can profitably scale. Otherwise, you run out of cash and go out of business before you even have a shot. Important notes: perfect one offer at a time. It's tempting to implement a whole money model at once. Don't stick to your stage. Pick one offer, try it, keep doing it until it works reliably. Then, after it's reliable, do it so many times it gets automatic, then go to the next stage. Patience is still the fastest way to get to your goal. So, you'll need to measure in quarters, not weeks. You either build it right or you build it again and again and again. Building again, no matter how fast, still takes longer than building it right the first time. I know that one from experience. Raise prices in stages. Make new offers cheap at first. Then, as you get yeses, raise the price. Lots of early yeses get customer feedback and make the product better. Then, as the offer gets reliable, start raising the price and keep raising the price until the extra cash from the ess's doesn't make up for the nose. Simple scales, fancy fails. Get as much as you can out of what you have. Remember, it's less about having 100 products to offer and more about having a 100 ways to offer your product. Think more ways to sell the same thing, not more things to sell. If I offer personal training, I can offer one, two, three, four sessions per week. This turns one product into many offers. Important affiliate products can fill money model gaps. An affiliate relationship just means you sell other people's stuff for a commission. If you don't have anything to offer and want to start a business, you can offer somebody else's stuff. If you have a single offer and want to add more offers to your money model, you can also offer somebody else's stuff. If you have a $100 million business and want to make more money without adding operational headache, you can offer somebody else's stuff, too. In short, you can always offer somebody else's stuff in your money model. Here's a few examples. Service. A dental agency sends their dentist clients to a braces manufacturer. The manufacturer sends them a commission for each dentist they send. More money, no extra work. Voila. Local business. Massage therapist sells clients somebody else's home massage tools, exercise bands, medicine balls, etc. The customer pays through the therapist and the other company ships it directly to them. A few extra words, a lot extra money. No extra service delivered. Digital product. An educator tells his clients to use a specific customer service software. The software company sends the consultant a commission for every signup. Turn attraction offers into continuity offers with automatic renewal. This makes a two for one. For example, if you do a buy 6 months, get 6 months free offer, they can automatically roll into a month-to-month subscription at the end of 12 months. This gets the benefit of attraction and continuity offers both. A small tip with big implications. You can mix and match offers however you want. I present offers this way because it's how I use them. But if you recall, I learned many of them from people use them differently than me. Many of these offers you can use anywhere. You can use upsell tactics in your attraction offer. You can install a downell process with every offer. You can use a continuity offer to attract new customers. There are no rules. You can do whatever you want. I show you stuff one way, but I fully expect you to use it in another. So, start with the way I suggest it. Then, as you get better, experiment. It's how I learn the stuff. It's how you'll learn it, too. Summary. A money model is a deliberate sequence of offers. Money models have three stages. Get cash, attraction offers. Get more cash, upsells and downells, get the most cash, continuity offers. To make your own money model, start an attraction offer. Once you get your customers in cash, add an upsell offer. From there, add downell offers to get even more people to buy. Then, finally, add your continuity offer. Do not try and implement a full money model at once. It will break your business. It's less about having 100 products to offer and more about having 100 ways to offer your product. To sell more stuff without starting 100 businesses, offer stuff from other businesses and let them deliver it. Affiliate relationships can fill the gap in your money model without the headache of delivery. Price new offers low enough that you will get lots of yeses. Use customer feedback to improve your product. Then start raising the price until you stop making more money. A $100 million money model eliminates cash as a bottleneck for growth. Mission accomplished. Free gift. Make your own money model step-by-step training. Woo, there's a lot in this chapter. It's also arguably the most important one in the book. So, to make sure you don't get stuck, I made you a video walking through this process step by step. As usual, you can watch it for free. No optin needed at acquisition.com/training/money. 10 years and 10 minutes. The best thing a human can do is help another human being no more. Charlie Mer where money model fits in the grand scheme of things. My first book, $100 million offers, answered the question, what should I sell? Answer: An offer so good people feel stupid saying no. My second book, $100 million leads, answered the next natural question, how do I find these people? Answer, you advertise. This book, $100 million Money Models, answers the next natural question, how do I get them to buy it? Answer, a money model. What we covered. We covered a lot, and I think organizing what we learned into one place helps it sink in. So, I make this the back of napkin list of what we covered and why. Number one, a money bottle is a series of offers designed to increase how many customers you get, how much they pay, and how fast they pay it. Two, a good money model makes more profit from a customer than it costs to get and service them in the first 30 days. That's the bare minimum. Three, a $100 million money model makes more profit from one customer than it costs to get and service many customers in the first 30 days, which removes cash as a limiter to scaling your business. Four, money models have four types of offers. Attraction offers, upsell offers, downell offers, and continuity offers. Five, attraction offers get customers by offering something free or at a discount. Often, they also make money by offering a better deal at a higher price. We covered five. A, win your money back. You set a goal for the customer and tell them how to reach it. If they reach it, then they qualify to get their money back or get it back as store credit. B, giveaways. You advertise a chance to win a big prize in exchange for contact information and anything else you want. After picking a winner, you offer everyone else the big prize at a discounted price. C. Decoy offers. You advertise a free or discounted offer. When the lead asks to learn more, you also present a more valuable premium offer. The premium offer includes more features, benefits, bonuses, guarantees, and so on. D. Buy X, get Y free. You offer customers free stuff in exchange for buying other stuff for money. The more free stuff, and the higher its value, the more people buy. E, pay less now or pay more later. You give people a choice to pay full price later or pay a discounted price now and get additional bonuses. Upsell offers are whatever you offer next, typically more, better, or newer versions of what they just bought. These get you more cash fast. We covered four. A, the classic upsell. You offer a solution to the customer's next problem the moment they become aware of it. You can't have X without Y. B, menu upsells. You tell customers which options they don't need, then tell them which they do and how to get their value from it. You don't need that. You need this. C. Anchor upsells. You offer your most expensive thing first. If the customer bulks, you offer a much cheaper and still acceptable alternative. No worries. If you don't care about X, this may be a better fit for you. D. Rollover upsells. You credit some or all of the customer's previous purchases towards your next offer. Since you already spent $500, I'll just credit that towards staying for a full year. Seven. Downell offers are whatever you offer after someone says no. And by turning nos into yeses, you make more money. We covered three. A payment plan downells. You offer the same product at the same price, but they pay some now and the rest over time. When do you get paid? Let's do half now and half then. B. Trial with penalty. You let customers try your product or service for free so long as they meet your terms. If they do, they have a better chance of becoming paying customers. If they don't, they pay. If you do X, Y, and Z, I'll let you start for free. C. Feed your downells. You lower prices by changing what the customer gets. I offer lower quantity, lower quality, lower price alternatives, or cut optional components entirely. If you're okay without a guarantee, I can knock off 400 bucks. Eight. Continuity offers. Provide ongoing value that customers make ongoing payments for until they cancel. These boost the profit of every customer and give you one last thing to sell. We covered three. A. Continuity bonus offers. You give the customer an awesome thing. if they sign up today. Typically, the bonus itself has more value than the first continuity payment. If you sign up today, you also get XYZ valuable thing. B, continuity discount offers. You give the customer free time now or later if they sign up today. C. Waved fee offers. First, you ask the customer to pay a starter fee as part of joining a month-to-month program. Then, you offer to discount the entire fee if they commit to longer term. If they cancel inside the term, they pay the fee. Nine, you build money models one stage at a time. Once I get customers reliably, then I make sure they pay for themselves reliably. Then I make sure they pay for other customers reliably. Then I start maximizing each customer's long-term value. Then I print as much money as I can. Bottom line, the knowledge in these bullets brought me more free and profitable customers than I've known what to do with. If executed, they will do the same for you. And with that, cash will no longer constrain your business. I hope this book helps you grow your dream as big as you darn well please. Also, since you are one of the few who actually finish what you start, I want to leave you with a parting gift. Some closing remarks that got me through hard times. Final thoughts. You don't become confident by shouting affirmations in the mirror. You become confident by giving yourself a stack of undeniable proof that you are who you say you are. Outwork your self-doubt. This was an actual post I made on July 25th, 2020 before I made my life public. The image contrasts where I used to sleep on the floor 7 years earlier with me on a private jet. Leila snapped this when I wasn't looking and I was like, "Damn, I look super pensive." Anyways, this is the second time we've taken a private jet. And it was dope. They figure if you go down with a ship, your seatelt won't save you regardless. To every hard mother ever who is disappointing their parents, wives, husband, fake friends, and everyone else who doubts you, number one, I'm your biggest fan. Number two, it's about to get real, so get hard fast. Number three, you cannot lose if you do not quit. I used to repeat that to myself over and over again when I didn't want to keep doing it. If you feel hopeless, welcome to entrepreneurship. If you feel like you'll never make it, you're on the right path. If you feel like you're a disappointment to everyone who you know, keep moving because the end of the rainbow isn't a pot of gold. It's you. The real you that's been underneath all along whispering in your ear, "Just one more step, one more call, one more sale." When I say I'm your biggest fan, it's because I was there. And I know you because I know exactly what it feels like. Having both 100% confidence and a,000% doubt at the same time. Here's all you got to do. Just keep moving, keep fighting, keep improving. Your time will come. Success is the only revenge. So right now you might be back where I was when I started working in a concrete coffin under blinding fluorescent lights wanting to escape. You might be overwhelmed by all the stuff you have to do to succeed. But with that uncertainty know that every entrepreneur past and present shoulders that burden with you. I've been there. They've been there. You're not alone. I share these stories as I experienced them so you can benefit from them as I have. So here's my promise. Follow the lessons. The money will come. Be one of zero. Alex Ramoszi, founderacquisition.com. P.S. I've got some free goodies for you for finishing what you started. Free goodies. Nom nom nom. Kind of like the previews after the credits finish. If you're still with me, I want to give you a bunch of goodies. Number one, if you're struggling to figure out who to sell to, I released a chapter called Your First Avatar. You can get it for free at acquisition.com/avvatar. Just pop in your email and we'll send it over. Two, if you're struggling to figure out what to sell, you can go to Amazon or wherever you buy books and search Alexi and $100 million offers. It should get you on the right path. Three, if you're struggling to get people interested in what you sell, you can go to Amazon or wherever you buy books and search Alexi and get $100 million leads. It should also put you on the right path. Four, if your company's doing over a million in Ibida, aka profit. We'd love to help you scale. It brings us so much pleasure to know companies have grown much and bigger and faster than mine because they avoided many of the mistakes that I did. If you want us to look under the hood and see if we can help you, go to acquisition.com. Number five, if you want a job at acquisition.com or in one of our portfolio companies, we love hiring from Mosnation. Our best returns come from investing in great people, go to acquisition.com/careers/openjob and you can see all available openings. Six, to get the free book downloads and video trainings that come with this book, go to acquisition.com/training/money. Seven, if you like listening to podcasts and want to hear more, my podcast at the time of this writing is top five in entrepreneurship and top 15 in business in the US. You can get there by searching Alexi wherever you listen or by going to acquisition.com/mpodcast. I share useful and interesting stories, valuable lessons, and the essential mental models I rely on every day to make more money. Number eight, if you like to watch videos, we put a lot of resources into our free training available for everyone. We intend on making it better than any paid stuff out there and let you decide if we succeeded. You can find our videos on YouTube or wherever you watch videos by searching Alexi. And if you like short form videos, check out the byite-size content we pump out daily at acquisition.com/media. You'll see all the places we post and you can pick the ones you like most. And last, thank you again. Please be one of those givers and share this with entrepreneurs by leaving a review. It would mean the world to me. I'm sending you business building vibes from my desk. I spent a lot of time there, so it's a lot of vibes. May your desire be greater than your obstacles.