“Hot Dogs”

“2 Hot Dogs for the price of 1”

“ONLY TODAY, Buy 1 Hot Dog, get the next one for FREE if you like them (only while stocks last).”

What offer sounds most appealing? - The third one, obviously.

Today, we are going to talk about 5 ways you can use human psychology to enhance your offers.

This is…

How Alex Hormozi Creates Irresistible Offers

Part 3: Enhance Your Offer

There are 5 ways we can use human psychology to enhance our offers.

1. Scarcity

2. Urgency

3. Bonuses

4. Guarantees

5. Naming

1) Scarcity

Use scarcity to decrease supply to raise prices.

“Sold out.”

Scarcity is one of the most powerful and least understood forces to unlock unlimited pricing power.

Creating Scarcity

When there’s a fixed supply or quantity of products or services that are available for purchase, it creates “scarcity” or a “fear of missing out.”

Three Types Of Scarcity

1. Limited Supply of Seats/ Slots: in general or over X period of time.

2. Limited Supply of Bonuses

3. Never available again

1) Limited Supply of Seats/ Slots: in general or over X period of time.

This puts a cap on how many clients you service or how many products you put out.

2) Limited Supply of Bonuses

Only the first X people get X as a bonus.

3) Never available again

Only X amount will be created and never will be sold again.

Honest Scarcity (The Most Ethical Scarcity)

The easiest scarcity strategy is honesty.
Simply letting people know that you are three-fourths of the way to capacity this week will move people over the edge to buying from you.

2) Urgency

Use urgency to increase demand by decreasing the action threshold of a prospect.

“Deadlines. Drive. Decisions.”

Scarcity is a function of quantity. Urgency is a function of time.

This is where you only limit when people can sign up rather than how many.

Four Types Of Urgencies

1. Cohort-Based Rolling Urgency

2. Rolling Seasonal Urgency

3. Pricing or Bonus-Based Urgency

4. Exploding Opportunity

1) Cohort-Based Rolling Urceny

For example, if you start clients every week (even unlimited amounts), you can say:

“If you sign up today, I can get you in with our next group that kicks off on Monday. Otherwise, you’ll have to wait until our next kickoff date.”

If you wanted to juice it up a little bit, you could say:
“I actually had a client who signed up a few weeks ago drop out, so I have an opening for our next cohort that kicks off on Monday. If you are pretty sure you’re gonna do this sooner or later, might as well get in on it now so you can start reaping the rewards sooner rather than paying the same and waiting.”

2) Rolling Seasonal Urgency

In a digital setting, having actual sign-up date countdowns is very useful.

Example:
“Our New Year Promotion ends Jan 30!”
Next Month: “Our Valentines Lovers Promo Ends Feb30!”
Next Month: “Our Sexy By Spring Special Ends March 31!”
…

3) Pricing or Bonus-Based Urgency

This way, you are using your actual offer or promotion/ pricing structure as the thing they could miss out on (kind of brilliant).

For example:
“Yes, let’s get you started today so you can take advantage of the discount you came in for. I’m not sure how long we will be running it as we change them every 4 weeks or so, and this is one of the better ones we have run in a while.”

4) Exploding Opportunity

On occasion, you will be exposing the prospect to an arbitrage opportunity. The opportunity itself has a ticking time clock, as all great options do. Every second someone delays, they miss out on disproportionate gains.

For example:
Selling someone on the opportunity of trading cryptocurrencies, buying a stock, or getting into a new platform to advertise before competitors jump on the bandwagon.

You show opportunities that decay with time, so they are forced to make fast decisions.

3) Bonuses

Use bonuses to increase demand.

The main point is that a single offer is less valuable than the same offer broken into its component parts and stacked as bonuses.

We are increasing the prospect’s price-to-value.

Bonus Bullets:

1. Always offer them

2. Give them a special name that has a benefit in the title

3. Tell them:

   1. How it relates to their issue

   2. What it is

   3. How you discovered it, or what you had to do to create it

   4. How it will specifically improve their lives or make their experience

      1. Faster, easier, or less effort/ sacrifice (value equation)

4. Provide some proof

5. Paint a vivid mental image of what their life will be like assuming they have already used it and are experiencing the benefits.

6. always ascribe a price tag to them and justify it

7. Tools & checklists are better than additional trainings

8. They should each address a specific concern/ obstacle in the prospect’s mind about why they can’t or won’t be successful

9. This can also be what they would logically realize they will need next. You want to solve their next problem before they even encounter it.

10. The value of the bonuses should eclipse the value of the core offer. Psychologically as you continue to add offers, it continues to expand the price-to-value discrepancy. It also, subconsciously communicates that the core offer must be valuable because if these are the bonuses, the main thing has to be more valuable than the bonuses right?
    (No, but you can use this psychological bias to make your offer seem wildly compelling).

11. You can further enhance the value of your bonuses by adding scarcity and urgency to the bonuses themselves (which takes this technique and puts it on steroids).

    1. “Only people who sign up for XYZ program will have access to my Bonus 1, 2, 3…”

    2. “If you buy today, I will add XYZ bonus that normally costs $1,000…”

4) Guarantees

Use guarantees to increase demand by reversing risk.

The single greatest objection for any product or service being sold is …drum roll…risk. Therefore, reversing risk is an immediate way to make any offer more attractive.

Four Types Of Guarantees

1. Unconditional

2. Conditional

3. Anti-Guarantee

4. Implied Guarantees

1) Unconditional

Unconditional are the strongest guarantees. They’re basically a trial where they pay first then see if they like it.

Example:
Guarantee: “If you don’t achieve X, in Y time, we will [insert offer]…

[Unconditional] “No Questions Asked" Refund Guarantee

What the Client Gets:
A) A full refund
B) A 50% refund
C) A refund of their ad spend and any ancillary costs incurred
…

2) Conditional

Conditional guarantees include “terms and conditions” to the guarantee. These are the once you can get VERY creative on.

Example:
Guarantee: “If you don’t achieve X, in Y time, we will [insert offer]…

[Conditional] Service Guarantee

What the Client Gets:
You keep working for them free of charge until X is achieved.

3) Anti-Guarantee

Anti-guarantees are when you explicitly state “All sales are final.” These types of guarantees are especially important with items that are consumable or massively diminish in value once given.

Example:
Guarantee: “If you don’t achieve X, in Y time, we will [insert offer]…

[Anti-Guarantee] All Sales Are Final

What the Client Gets:
Access to super exclusive very valuable service/ product. Likely, this is a very powerful thing that once seen cannot be unseen, or once used cannot be taken away.
Example:
A line of code to improve your checkout experience on a website. Once someone received this code, they could try and use it without paying you. Or a series of opening messages for picking up girls, or opening sentences for messaging cold prospects. Things that are very valuable but incredibly easy to steal after they’ve been seen/ understood.

4) Implied Guarantees

Implied guarantees are any offer that is a performance-based offer. This comes in many different forms.
Revshare, profitshare, triggers, ratchets, monetary bonuses, etc.

[Implied Guarantees] Performance Models, Revshares, and Profit-Sharing

Example:
Performance: Only pay me $X per sale you make.

What the Client Gets:
If you do not perform, they do not have to pay. If you perform, your compensation has been determined based on an agreement decided upon before you begin working.

5) Naming

Use names to re-stimulate demand and expand awareness of my offer to my target audience.

M - A - G - I - C Headline Formula

Make A Magnetic “Reason Why”

We start the name with a word or phrase that tells people the “reason why” we are running our promotion.

Examples:
Free, 80% off, Giveaway, Spring, Summer, Back To School, Grand Opening, New Management, New Building, Anniversary, Halloween, New Year.

Announce Your Avatar

This component calls out your ideal avatar: why you are looking for and who you are not looking for as a client.

Examples:
Bee Cave Dentists, Rolling Hill Moms, Brick & Mortar Businesses, Salon Owners, Retired Athletes, Brooklyn Busy Executives.

Give Them A Goal

This is where you articulate your prospect’s dream outcome. It can be a single word or a phrase.

Examples:
Pain Free, Celebrity Smile, 1st Place, Never Out Of Breath, Perfect Product, Little Black Dress, Double Your Profit, First Client, High Ticket.

Indicate A Time Interval

You’re just letting people know the duration to expect here. This gives an example of how long your results will take to achieve.

Examples:
AA Minutes, BB Hours, CC Days, DD Weeks, Z Months.
“4 Hour”, “21 Day”, “6 Week”, “3 Month”

Complete With A Container Word

The container word denotes that his offer is a bundle of lots of things put together. It’s a system. It’s something that can’t be held up to a commoditized alternative.

Examples:
Challenge, Blueprint, Bootcamp, Intensive, Masterclass Program, Detox, Launch.

Try to use 3-5 parts of the MAGIC formula. Just don’t make it too long.

Examples:
“Free 6-Week Busy Mom Lean Challenge”

“88% Off 12-Week Bikini Blueprint”

Summary Point:

How to shift the demand curve in your favor using scarcity.
How to use urgency to decrease the action threshold of buyers.
How to strategically use bonuses to increase the demand of your offer.
How to completely reverse buyer risk with a creative guarantee.
How to name it in a way that resonates with your avatar.

Have an amazing day,

Mika “On Sale Only Today - Only Three Left” Langmann