How to Make Sales Simple By Using the Value Equation
All right, my masterminders. Good morning to you. How are you? I wanna talk to you about the three things that determine whether people buy from you or not. So if you're making cells, this is why. If you're not making cells, this is why. Now I have a little pole here. I've never done this before, so I don't know if this pole is going to work.
So putting this little pole up here, I'm activating the pole and it says it's active now. All right, great. But I don't know how you're going to see me, is my pole active? This is what I'm trying to activate the pole. All right. I don't know if you, but I guess you can't see the PU in any event. Here's what you can answer in the comments.
We'll do it the old-fashioned simple way. All right. Number one the question is, which is, Oh, there it is. Which is most important to you? The pro, the benefits of the product or the service? The costs. Versus the alternatives or the probability of getting the benefit. And I guess you can see the poll and you just click one of these in order to vote.
Which is most important to you? The benefits of the product or service? The costs of. Buying and using the product or service versus the other alternatives available to you, or the probability that you'll get the benefits. I'm gonna give you just a second here to go ahead and vote, and then I will close this out because I'm just curious right now, if you're watching this on Twitter, you're watching this on YouTube, you're watching it on LinkedIn or maybe you see it on my blog or even you're listening to the podcast.
Vote on the podcast. I dunno, if you're gonna, to have a way to vote or not, but you can always comment and let me know. All right, so I'm gonna close this down in just one second. Which is most important to you when you purchase the benefits of the product or service? Number one. Number two, the cost versus the alternative.
Number three is the probability that you will get the end result. So these are the only reasons. That these are the three things that determine if people buy from you or not, or act on your proposition or not, or respond to you or not. So number one is the benefits, which is called the preference. In other words, what outcome does the potential buyer or responder prefer?
I'm gonna give you an [email protected] I have my affiliate program and I'm paying on backend products. However, there's a perception, which I don't believe is true, but there's currently a perception of, amongst the people I've shown it to, that they're going to get less money up front and they're gonna have to wait for their money.
And so the preference, the strong preference is. Two in the one in the hand versus two in the bush. Hey Jim, how are you doing? So do you see how that works? One in the hand versus two in the bush? So the preference is to get one in the hand. And then you're looking at the balance. Okay, One in the hand.
What is the hand is worth how many in the bush? Number one and number two, for me, it's how do I increase the perception? That they're going to get the preferred benefit, which is money. Now, how do I increase that perception? Because if you can't increase that perception, then people aren't going to go ahead and put purchase.
So you've got number one, what are the, be the benefits, which is the preference of the buyer or the responder? What do they do? And how much of your offer gives them what it is that they prefer, right? Number two is the perceived cost, not just the buying the product, how much it costs, but also the cost to get the benefit.
What does, is it going to cost them to get the benefit? And what opportunity costs do they give up by buying your product versus buying something else, or by taking whatever option you're advocating versus some other option? And then number three what is their assessment of the probability that they will get the outcome or get the result?
In other words, they can want a result. They can see that, okay, it doesn't have a lot of costs, but if they assess a low probability to get that outcome, then they're probably not buying or acting on whatever proposition it is that you are giving them. For example, with our Facebook group or these live streams, it's the same.
In other words, what's the perceived benefit that, what's the perception that they're going to get, gain a benefit? By watching the live stream and not just some pitch what's the chance that the 10 minutes you expend today watching this live stream is going to result in a benefit for you again?
Number two, what's the cost? In other words, in the 10 minutes, it takes to watch the live stream? , what did you give up and what's the benefit of that versus the benefit of watching the live stream? And then number three, what's the probability you're gonna get a benefit they get the benefit that you would get from watching this live stream?
So that determines if people make a decision to watch the live stream or not. In terms of actually getting the viewers, you've gotta take that value proposition. And you've gotta deliver that value proposition and get it out to enough people where if they are making the decision in your favor, that it ends up being a significant number of people or a lot of people choosing to watch your live stream versus choosing to not watch it.
In other words, they vote with their time, they vote and say, No, Actually in the 10 minutes I could watch this. I think I'm going to get more value by watching Captain. Crunch Captain, someone, Kangaroo reruns. Nobody remembers Captain Kangaroo reruns on some old TV channel. Or I'm gonna get more benefits by going over to Facebook and reading the current polarity arguments where people can't disagree on something.
But I'm gonna enjoy it. I may not get a gain from it, but, the gain is that I enjoy the expenditure of that time versus the 10 minutes they spend watching this live stream. So then as a marketer, the challenge for me becomes, okay, number one, how do I increase the perception? Their preferred gain.
What do they want to gain out of it? How do I increase the perception they're gonna get that? Number two, how do I decrease any, cost of whatever they're perceiving? Is the cost of watching this other than their time and number three? How do I increase their probability, their perception of the probability that they're going to get whatever benefit it is that they want from watching?
So that's how you break down a value proposition. This is called the value proposition. I'm in. If you're not on me, if you're not on my list, you can get on [email protected] I have a free report there. The seed marketing reports find the need, so the seed reaps the harvest. Number two, if you're not over on my Twitter, it's at Marlon sanders.com/twitter.
LinkedIn is linkedin.com/i N slash Marlon Sanders, i.
We're doing the live streams every day, typically around eight 30 Eastern standard time and maybe as late as night. It really, honest to God, depends on what time I wake up and how long it takes for my coffee to kick in. So let me know what insight or value you got today. Let me know if you watch it on the replay.
Let me know if you watch it live. Let me know if you're sending it over on LinkedIn or Twitter or the Facebook page or the Facebook group. And if you got any insight today on this, let me know. By the way, if you wanna read a book about this it articulates it different than what I did, but I think the book by Alex or Mosey, $100 million Offers, has his own version of the value proposition in there, which is the same as what I just articulated, although he articulates it differently, but includes the element of speed.
The element of speed is. Actually a booster for preference. In other words, it's hardwired into human beings that they're going to have a high preference for getting the benefit sooner rather than a delayed benefit. So in the example of the affiliate offer or program, they have a preference for getting the cash now versus a preference if that cash is coming in over 60 days.
So in other words, if I wasn't delivering as much cash up front, then I have the value equation says, Okay, how much more do I have to deliver over 60 days? For them to say, Okay, I would prefer the delay ver, I'd prefer the two or three, or the four, or the five in the bush versus the one in the hand. Do you see how that works?
That's the mental math that's going on here. All right. This is, You all have a great day. Let me know your comments on this, where you watched it from, and if you have any topics that you want me to cover in live streams let me know. And y'all have a great day. Thank you for watching By.
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About the Author
Author of "The Amazing Formula That Sells Like Crazy", creator of the original Push Button Letters software, creator of the genre of "Dashboard" info products. Speaker in 120 seminars around the wordl.