One of the mastermind groups I belong to was having a discussion about a certain business model a member had. It really wasn’t congruent with his business plan any longer and it was actually hurting his core business. So he was debating the merits of shutting it down. Everyone was sharing his or her suggestions for the best way to do that.
I interrupted the discussion with an alternative: give the venture to me, I would invest in it, and send him twenty percent of any profits I made in perpetuity.
Several other members had a similar business model and they immediately wrote in to say why this was a bad idea and wouldn’t work. (People are cheap, they expect everything for free on the Internet, etc.) I refused to believe this and offered to prove what I was suggesting could increase profits on their own websites.
I’m a very good marketer and successful entrepreneur, and these people are aware of my success, so you probably think I was deluged with offers.
Instead they doubled down, sending even more responses explaining to me why their markets are cheap, don’t spend money, won’t buy high-dollar products, expect everything for free, and/or won’t respond to marketing.
And my mastermind group isn’t alone...
Back when I still did consulting, I heard variations of this from almost every client I had. Everyone thinks they’re in the cheap market and the lucrative one is that one over there.
Right now you have certain beliefs about your business and your customer or prospect base. You believe there are certain price points or conditions they will accept and you have evidence to support your beliefs. But those beliefs are probably wrong. And they’re not serving you or your customers.
The “evidence” you’re relying on is the fact that most of the leads you get don’t convert into customers, or most of your customers purchase the lowest priced products, or that when you attempted to raise your price, you lost some customers. And based on that evidence, you’ve come to the belief that the people who are your prospects and customers are cheap and/or expect everything for free.
Here’s the truth…
Your customers are simply responding to the way you’ve trained them. Because we all train our lists/readers/customers/subscribers/prospects.
We teach them that we are here to give them shit for free, we train them that our stuff is worth minimal or negligible value, or we convince them that we offer a true value at any price point.
It’s true that not all your prospects are going to buy, and of the ones who do, many won’t big high price point items from you. But that’s not because your people are cheap; it’s because you aren’t doing your job well.
Other than the occasional ascetic and those living in Buddhist monasteries, the people you are labeling as cheap or non-responsive are still people with hopes and dreams, problems and aspirations, fears and wants, needs and desires.
They are buying cars, houses, video games, books, info products, iPhones, football jerseys, Beats headphones, HD TVs, elves on shelves, One Direction albums, wrench sets, $250 Nike sneakers, jewelry, washing machines, cameras, seminars, streaming movies, and millions of other items. And they were waiting in line at 4 am on Black Friday to max out their credit cards buying numerous products of nebulous value.
Ninety nine percent of your prospects are spending 100 percent of their paycheck every week. (And then some, since the average person lives on about 115% of what they make.)
Let those last two sentences really sink in for a second…
Please don’t delude yourself that your prospects don’t have money or don’t purchase things. Let’s just accept that they may not be purchasing things from us in the quantities or price points we want. And that isn’t their fault. The fault is completely and entirely our own.
It is not our prospects' and customers’ job to know what products they want. It is our job.
Any time our customers aren’t buying enough products or services from us, it’s because we either haven’t:
All prosperity is created by doing one or both of two things:
1) Solve problems
2) Add value
When you solve problems or add value, people will crawl naked over broken glass to throw money at you.
Please. Stop trying to convince me your customers don’t have money or don’t spend it. They do and they do. The better discussion is the one centered on how you can solve problems and add more value, so more customers and prospects spend more money with you.
Want to know how to massively increase your sales? Stop talking yourself out of it.
Last thoughts: before you post any comments below explaining why your business is different and what we’re talking about won’t work for you – please remember this:
Only argue for the limitations you want to keep!