Hey there,
Matthew Larsen here, back with my daily newsletter.
In today's email, we will talk about why your offer is one of the highest leverage things you can improve in your business.
Life and business are increasingly becoming a "winner take all."
The top 0.2% of businesses get the lion's share of the money and profit, and this is becoming more and more extreme over time.
I am not sure why this is, but it is a combination of a lot of factors, with the biggest one being AI, general software tools and the internet in general.
All the stuff we have today is SO good even compared to a year ago, let alone three, or five, or ten or twenty years ago when a lot of these people started their business.
With all of this stuff, you really can get done with just a few people what took hundreds of people even five years ago, and a lot of the market hasn't caught up or caught onto this fact.
Because of this, your offer is more important than ever, because it is one of the highest leverage things about your business.
Think about everything else you could try to improve.
You usually cannot make your product 10x better.
You cannot make it 10x cheaper.
You cannot make it 10x faster to deliver.
You cannot cut your costs by 10x.
You cannot even make your ads and funnel 10x better, or make your close rate 10x higher.
But you CAN make your offer 10x better, and doing so will lead to a positive ripple effect throughout the rest of your entire business.
What The Ripple Effect Actually Looks Like
Let's take the example of a business that primarily uses ads to acquire customers.
A better offer might lead to:
Take your click-through rate from 1% to 2% (2x better)
Take your call booked rate from 2% to 6% (3x better)
Take your show rate from 50% to 80% (1.6x better)
Take your close rate from 15% to 30% (2x better)
If that is the case, having a better offer may lead to a 19.2x better result, which is 2 x 3 x 1.6 x 2.
Now, that is probably not true. 19.2x would be extreme.
But 2x, or 3x, or even 5x better results due to a better offer is quite common and possible.
That is the whole point of this.
The offer is not one lever sitting next to all the other levers. It is the thing that touches every single step of the process at the same time.
The same ad, the same funnel, the same sales call, the same closer. A better offer improves the result at every one of those stages, and those improvements multiply against each other.
Why This Matters More Now Than It Used To
Ad costs are going up.
More content than ever is flooding social media.
Outreach is harder and harder to land in inbox.
We need to find gains wherever we can, and the offer is the one thing that elevates all areas.
In what is an increasingly winner take all environment, the offer is more important than ever, and is one of the main tools at your disposal to improve your business.
How To Implement
So if the offer is the lever, what do you actually go work on?
Take your current offer and run it against these six things.
Are you solving a clear and painful problem? Your offer should address something the customer already recognizes and actively wants solved. A vague improvement or nice-to-have outcome will always be harder to sell.
Are you speaking to the right level of person or company inside your niche? Choosing the niche is not enough. A multi-state roofing company and a solo owner-operator are technically the same industry and should not respond to the same messaging.
Are you selling a clear result or a clear deliverable? Sell the result when the outcome is largely within your control. Sell a specific, valuable deliverable when it is not. Do not promise an outcome that depends on 20 things you do not control.
Can you explain, in simple terms, why this would work when they tried something similar before and it failed? That is your unique mechanism. It is the believable explanation, not a name. A weird name that makes people wince is not a unique mechanism.
Are you preemptively overcoming their objections? After roughly 50 sales calls, you will find the same six to 12 objections come up repeatedly. Every one of them should be handled in your marketing before the call ever happens.
Does your intro offer reduce their risk? A lower-cost, one-time, lower-commitment service lets them test you without turning over a large percentage of their business. That is the real risk reversal, not a guarantee on your fee.
You do not need to fix all six this week.
Find the weakest one and improve it, because every improvement you make there multiplies through the rest of the business instead of sitting in one place.
Hope this helps,
Matthew Larsen