Giving Away Free Stuff Will Make You Rich

Summary

This video script offers insights on generating leads and boosting sales through the power of free value delivery before a sale. It emphasizes the importance of a 'lead magnet'—a complete solution to a specific problem—to build trust and attract customers. The speaker shares strategies from his book, '100 Million Leads,' and outlines a seven-point checklist for deploying effective lead magnets, advocating for high-quality free offerings that can lead to exponential demand and long-term customer relationships.

Takeaways

• 💰 The key to increasing sales is to generate more leads, which can be achieved by offering free value upfront to build trust and predict future value for the customer.
• 📈 A lead magnet is a complete solution to a narrowly defined problem, designed to attract customers and build trust before they make a purchase.
• 🔄 The difference between a core offer and a lead magnet is that the core offer is the main product or service that generates the most revenue, while the lead magnet is a smaller, often free, offering designed to attract leads.
• 🚀 Offering a trial or a discounted version of your service can be an effective lead magnet, as it allows potential customers to experience the value before committing to a larger purchase.
• 📉 The fear of giving away too much for free can be overcome by understanding that high-quality lead magnets can lead to exponential demand and increased sales.
• 📈 The cost of delivering a lead magnet should be considered an investment in acquiring new customers, which can result in a lower overall cost per acquisition in the long run.
• 📚 The speaker's new book, '100 Million Dollar Leads,' provides strategies and a checklist for businesses to implement lead generation tactics effectively.
• 🎯 Identifying the specific problem and target audience is crucial for creating an effective lead magnet that resonates with potential customers.
• 🛍️ The packaging of the lead magnet, including its name and presentation, is vital as it is often the first thing potential customers see and can significantly influence their decision to engage.
• 🎥 Providing multiple formats for consuming the lead magnet, such as audio, video, or written material, can increase its accessibility and appeal to a broader audience.
• 🔑 Ensuring the lead magnet is of high quality and delivers substantial value is essential to avoid negative perceptions and to encourage positive word-of-mouth.

Q & A

What is the main issue the speaker identifies that prevents businesses from making more money?

The speaker identifies that businesses are not making as much money as they want because they are not getting enough leads, which they attribute to not giving away enough free value upfront.

What is the speaker's view on the importance of providing value before a sale?

The speaker believes that providing value before a sale is crucial because it helps customers predict future value from the business, which can lead to more sales.

What are the two fundamental ways the speaker suggests to get leads?

The speaker suggests two ways to get leads: one is by making an offer to someone for a product or service, and the other is by providing a lead magnet, which is a complete solution to a narrowly defined problem offered at a discount or for free to attract more people.

What is the difference between a core offer and a lead magnet according to the speaker?

The core offer is the product or service that makes the most money for the business, while a lead magnet is something valuable given away before the core offer to attract potential customers and build trust.

Why does the speaker argue against giving away partial solutions as lead magnets?

The speaker argues against partial solutions because they can lead to a loss of trust. Instead, a lead magnet should be a complete solution to a narrowly defined problem, which helps to build trust and attract more leads.

What is the speaker's advice on how to price a lead magnet?

The speaker suggests pricing a lead magnet low enough to attract customers, even if it costs the business money to deliver. The idea is to acquire new customers at a lower cost than what they might eventually spend.

What is the speaker's upcoming event, and what will it involve?

The speaker is hosting an event called the 'Super Bowl of Entrepreneurship' on August 19th, where they will be releasing their new book '100 Million Dollar Leads'.

What is the speaker's perspective on the fear of giving away free stuff?

The speaker believes that the fear of giving away free stuff stems from a lack of understanding of the value it can bring in return, such as attracting more customers and building trust.

What are the seven steps the speaker outlines for creating effective lead magnets?

The steps are: 1) Identify the problem and target audience, 2) Decide how to solve the problem, 3) Determine the delivery method, 4) Package the offer effectively, 5) Ensure it's easy to consume, 6) Make it of high quality, and 7) Make it easy for the prospect to take the next step.

How does the speaker suggest businesses should think about the customer journey?

The speaker suggests businesses should map out the entire customer journey, understanding the 'before, during, and after' aspects of the customer's experience, and identify opportunities to solve problems at each stage.

What is the speaker's view on the importance of the quality of a lead magnet?

The speaker emphasizes that the quality of a lead magnet is paramount. If it's not good enough, it can lead to negative word-of-mouth and a loss of potential customers.

Outlines

00:00

💰 Increasing Leads and Revenue Through Value Provision

The speaker emphasizes the importance of providing value before a sale to increase leads and revenue. They introduce a snippet from their book '100 Million Leads' and offer a seven-point checklist for immediate business application. The core concept is that people buy based on the prediction of future value, and offering value before a purchase can facilitate this prediction. The speaker differentiates between a core offer, which is the most profitable product or service, and a lead magnet, which is a complete solution to a narrowly defined problem offered at a discount or for free to attract customers. The goal is to build trust and entice customers to purchase the core offer. The speaker also mentions an upcoming event, the 'Super Bowl of Entrepreneurship,' where they will release their new book.

05:00

🛠 Crafting Effective Lead Magnets and Customer Journey Insights

This paragraph delves deeper into the strategy of creating lead magnets and understanding the customer journey. The speaker suggests solving the initial steps of a larger problem as a lead magnet to naturally progress customers to the next stage where they can be offered a paid solution. They discuss the importance of packaging and naming the lead magnet effectively, as it's crucial for attracting the target audience. The speaker also highlights the need to make the lead magnet easy to consume in various formats and to ensure it is of high quality, as this can significantly impact customer perception and future business opportunities.

10:00

🚀 Maximizing Lead Magnet Impact and Simplifying Next Steps

The final paragraph focuses on the importance of delivering high-quality lead magnets and making it easy for potential customers to take the next step. The speaker warns against providing low-quality free offers, as this can harm reputation and future sales. They stress the need to invest effort into creating valuable lead magnets that can impress the audience and encourage word-of-mouth promotion. Additionally, the speaker discusses the effectiveness of clear and direct call-to-action strategies, suggesting multiple avenues for potential customers to engage further with the business. They conclude with an invitation to a book launch event, emphasizing the value they will provide to attendees.

Keywords

💡Leads

Leads refer to potential customers who have shown interest in a product or service but have not yet made a purchase. In the video's context, the speaker emphasizes the importance of generating leads as a critical step to increase sales. The script mentions that not having enough leads is a common issue for businesses not making desired revenue.

💡Value

Value, in the script, is the perceived benefit or utility that customers expect to receive from a product or service. The video discusses how providing value before a purchase can influence customers' predictions of future value, thereby increasing the likelihood of a sale. For example, offering a free service or product can demonstrate value to potential customers.

💡Lead Magnet

A lead magnet is a marketing tool used to attract potential customers by offering them something of value for free in exchange for their contact information. The script explains that a lead magnet should be a complete solution to a narrowly defined problem, aiming to build trust and interest in the business's core offer.

💡Core Offer

The core offer is the primary product or service that a business sells and typically generates the most revenue. In the video, the speaker differentiates between a core offer and a lead magnet, using the example of a massage service where the core offer might be a package of massages or a subscription, while the lead magnet could be a discounted trial massage.

💡Trial Offer

A trial offer is a type of lead magnet that allows potential customers to experience a product or service at a reduced cost or for free. The script uses the example of offering a discounted massage to attract new customers, with the expectation that they will later purchase more expensive packages or subscriptions.

💡Cost to Acquire Customers

Cost to acquire customers (CAC) is the total cost associated with convincing a potential customer to make a purchase. The video explains that the cost of delivering a lead magnet can be considered part of the CAC, and that even if it results in a short-term loss, it can lead to long-term gains by converting leads into paying customers.

💡Predicted Future Value

Predicted future value is the customer's expectation of the benefits they will receive from a product or service in the future. The video script suggests that providing value upfront can enhance this prediction, making customers more likely to make a purchase, as they anticipate continued value post-purchase.

💡Customer Journey

The customer journey refers to the path a customer takes from initial awareness of a product or service to the final decision to purchase. The script discusses understanding and anticipating the customer journey to identify opportunities to provide value at each step, such as making grocery shopping easier for someone trying to lose weight.

💡Overdeliver

Overdelivering means to provide more value than expected or promised. The video emphasizes the importance of overdelivering, especially with lead magnets, to create a positive impression and increase the likelihood of converting leads into paying customers. It suggests that even providing exceptional value to those who may never pay can enhance reputation and referrals.

💡Call to Action (CTA)

A call to action (CTA) is a prompt designed to encourage a specific response or action from the audience, such as making a purchase or signing up for a newsletter. The script advises being clear rather than clever with CTAs, providing straightforward instructions on how to take the next step, and offering multiple methods for responding to increase response rates.

Highlights

The importance of providing value before a sale to predict future customer value and trust.

Two fundamental ways to get leads: offering a product or service for money, and using a lead magnet to attract customers.

The definition and importance of a core offer versus a lead magnet, with the core offer being the most profitable product or service.

A lead magnet should be a complete solution to a narrowly defined problem, not a partial solution.

The strategy of solving a customer's problem at a massive discount to attract more business and build trust.

The concept of using lead magnets to create demand and the exponential growth potential of free, high-quality offerings.

The cost-benefit analysis of offering lead magnets and how they can lower the total cost of acquiring a new customer.

The long-term thinking of successful business owners who are willing to incur calculated costs upfront for greater backend profits.

The fear of giving away too much value for free and the strategy of providing exceptional value to overcome this fear.

The idea of solving problems in stages, offering initial solutions for free to lead to paid solutions later.

The importance of understanding the customer journey and anticipating their next problem to offer a seamless solution path.

The strategy of providing exceptional free offerings that are better than paid ones to become unstoppable in the market.

The seven steps for creating effective lead magnets, emphasizing the clarity of the problem and audience.

The method of delivering lead magnets effectively, considering different formats and channels.

The necessity of packaging lead magnets to maximize perceived value and increase the likelihood of conversion.

Ensuring lead magnets are easily consumable in various formats to cater to different learning preferences.

The critical importance of the quality of lead magnets and the impact of under-delivering on customer perception and referrals.

Making it easy for prospects to take the next step with clear and accessible calls to action.

The upcoming release of the book '100 Million Dollar Leads' and its significance in the entrepreneurship world.

Transcripts

you're not making as much money as you

want to make because you're not getting

as many leads as you need to have to

sell stuff to and you're probably not

getting as many leads as you need

because you're not giving away enough

free stuff and this is a sneak preview

of my 100 million leads book just a

snippet from just one chapter and at the

end I'm going to give you a seven point

checklist that you can use to

immediately deploy this in your business

so you can get more leads and also make

more money for Less the reason people

buy is based on a prediction of future

value so they buy because they predict

that they will get value from you later

what is the easiest way to get someone

to predict they're going to get value

from you after you buy by giving them

value before they buy there's two ways

that you can fundamentally get leads you

can one just make your offer to somebody

and say hey I will wash your car for a

hundred dollars now you can put lots of

Razzle Dazzle around it that is a offer

products or services that you exchange

money for and the terms under which you

do that exchange and so this is directly

from my first book 100 million dollar

offers or an Espanol

[Music]

sorry a core offer versus a league man

what's the difference right because

fundamentally you'll have something

that's valuable in both of these

instances the core offer is the thing

you sell that makes you the most money

if you're like which one is it the one

that makes the most money that's your

core offer then all of a sudden you

start making more money on your lead

magnet guess what that's actually your

core offer lead magnet is the thing

before the thing lead magnet is not a

partial solution all right what a lot of

people try and do is like hey I'm gonna

give you the first six minutes of this

12 minute video and get the rest click

here right I think that's that's not the

right way to do it I think you lose

trust and that's literally the opposite

of the objective of lead magnetic a lead

magnet is a complete solution to a

narrowly defined problem if you're gonna

do anything for a customer there are

many micro steps that happen to create a

bigger solution let's say I paint houses

there's a lot of micro steps that have

to happen in order for a house to get

painted first you've got to size up the

house then you have to give an estimate

of whatever then you have to do the

design component and you have to do the

3D visualization the bigger the thing is

the more steps there are the idea is

okay can I pick one of these very

painful steps for my Prospect and solve

it for them at a massive discount to

attract more people to want to do it

with me and I do such a good job at this

massive discount that I increase the

trust they have with me and now they

have one foot in the door we're not

giving away partially done work we're

giving complete work to a narrowly

defined problem that once completed

opens up the next problem for example

you do massage and you're like I can't

get enough massage clients well it's

usually because you're not giving enough

free stuff away because fundamentally if

you give something away for free you

almost always have demand for it and if

it's good you'll have exponential demand

for it if I give away a 10 massage to

get people to come in and then later

everyone buys packages of massages from

me or buys a massage subscription from

me the massage subscription or the

massage packages are my core offer and

the lead magnet would be the trial offer

of the 10 or discounted massage the

reason people do those discounted

massages they give those trials they

give those Mini offers the lead magnets

on the front end is because they they

make more money because if I go up to

100 people and say hey let me give you a

massage for 100 bucks a lot of people

might say no maybe one person would say

yes now if I then said to the same other

people I want to give you a massage for

ten dollars I might get 20 people to say

yes and then of those 20 get a third of

them to buy the hundred things after

they tried my massage and so you've got

one person getting a massage for a

hundred dollars versus six people

getting a massage thirty percent of the

twenty after giving them that first

trial and so my cost to acquire them is

the cost of delivering the lead magnet

so if it cost me ten dollars in cost to

give the massage then I break even on my

lead magnet if it actually cost me 20 I

might lose 10 bucks but am I willing to

lose 10 bucks on 20 people so I pay 200

to get six customers that convert and

are worth two thousand

probably even if your lead magnet costs

you money to deliver it should still

lower your total cost to get a new

customer that's the secret that's the

sauce of lead magnets and why they

ultimately make businesses more money

and why big business owners think long

term about I'm willing to give more up

front because I know I'll make more in

the end you might be wondering why I

just caught a football it's because I'll

be hosting the Super Bowl of

Entrepreneurship on

Saturday August 19th where I'll be

releasing my new book 100 million dollar

leads the second book in the series

after its Big Brother 100 million offers

which is 15 000 five stars on Amazon

sold at 400 000 copies off word of

mouthful and the only reason I'm making

an ad is because I talk about ads in the

book and I want to prove that I know

what I'm doing if that sounds at all

interesting and you want to be there but

you would why would you not want to go

to the Super Bowl click the link opt-in

I'll see you there a lot of people get

really afraid of giving away free stuff

because if I give away all this value

then what do I do it's like give more

value and if you don't know how to give

two types of value then get good enough

to be able to give value on the front

end before someone buys so they can get

value on the back end one of the

beautiful things about business and life

is that when you solve problems you

create more problems if you're broke

being broke sucks when you have money

taxes also suck now you may prefer those

problems but they are problems

nonetheless what we want to do is always

know what the Journey of the customer is

going to be ahead of them and we should

because we're the ones who've done this

100 times and so we should know what

next problem is going to come up and if

we put our thinking caps on we say hey

well if there's six steps to this

problem why don't I solve the first two

and then they're going to counter

problem three and then I make that my

paid thing now I completely solve

problem one and problem two but it

naturally leads itself to problem three

which I can then charge for so for

example if you're trying to lose weight

there's a lot of steps that have to

occur and the way that I like to think

about this is before during after for

everything that has to happen for a

customer so a customer wants to lose

weight then they're going to probably

have to eat better work out better and

they'll probably need some sort of help

along the way in terms of accountability

to keep them on it right eat better but

what does that mean well they're going

to have to buy their groceries

differently prepare the food eat the

food the food's gonna have to taste good

they're gonna have to get the right

macros it's like oh wow there's like a

lot of little things here can I say hey

how can I make grocery shopping easier

here's a list here's a pre-loaded

instacart grocery list for women who are

at this weight women who wear it this

way women who wear it this way men wear

it this way with this goal right and

you're like wait that's a lot of those

it's like yeah but it's one time work

that you can set up for a hundred

different types of people and then they

have their grocery list for you now

that's just problem one What if after

that what's the next problem they can

have well they're going to bring it back

and be like what do I do with all this

[ __ ] how to clean and prep all of the

food that you just bought in under 60

minutes and I'm going to solve it for

them then what am I going to do well how

to store it and Portion it in a way that

you can bring it with you so you don't

get that weird jelly in the bottom of

your chicken breast Tupperware which is

nasty as hell stay pumping there by the

way uh to increase the weight if you

solve them very well people are like oh

[ __ ] but I also need this and you're

like aha well I want me to tell you

about that since you got such a good

experience with this one and because I

had value I will have a prediction a

future value because you provided me

value before I bought now one thing that

a lot of people are afraid of giving

away is stuff that actually costs them

money but I can assure you that if it

actually costs you money it usually will

be valued at a significantly higher

percentage to the marketplace so sure

you can have a free pdf sure you can

have a digital video series whatever it

is but normally unless it's exceptional

people aren't going to value that

because that's what a lot of people do

sometimes giving away actual free work

that you will incur cost on a lot more

people will take you up on and if you do

the math you will ultimately make more

money and this what I'm talking about

it's the difference between small

business owners and big business owners

they can incur calculated cost Upfront

for a much bigger back end your free

stuff should be better than their paid

stuff everyone makes that quote but they

don't actually do that what your

competition actually builds as their

core offer and you do such a good job of

it that you can give it away for free

then you become Unstoppable and you're

like wow that takes work duh also soda's

becoming a multi-millionaire so did you

think it would be easy let's round this

out with the seven quick steps that I

think through when I'm actually trying

to create lead magnets for any business

that we have step number one figure out

the problem you want to solve and who

you want to solve it for if you know who

you're trying to solve it for you will

name it differently you'll approach the

problem differently you'll Market it

differently you'll package differently

and ultimately you'll deliver it

differently if you're very clear on who

and what number two is figure out how

you want to solve it so inside the book

I talk about three different ways that

you can solve an actual problem for a

lead magnet so one would be like if I

give a free assessment of any kind I'm

revealing a problem to somebody a

different way would be giving a trial of

something they are usually more problem

aware they know their back hurts and so

I just need to solve it for them but

unless they keep paying me it'll come

back and there's other versions and you

can combine them which I talk about more

in the book you figure out how you want

to solve it the third step is figuring

out how you want to deliver it there's

lots of different delivery mechanisms do

I want to do it with information do I

want to do it with a service do I want

to do the physical product that I'm

going to send them that demonstrates it

all of these are different ways to

deliver on that one promise and the

question is which of these is going to

be perceived as the highest value from

the Prospect and increase the likelihood

that they ultimately buy for me the most

that would mean that you get the most

amount of people interested and the most

amount of people taking the next step

then it's like okay well how am I going

to package this thing the first thing

that someone's going to see in order to

make the decision to consume your lead

magnet is how you package it so for

example this book I had the title that I

tested I had the sub headline that I

tested and I tested the image that I was

going to put on the cover itself well

the first test I ran was 100 million

dollar advertising versus 100 million

dollar promotions and advertising one 69

to 31 I was like huh so then I ran

advertising against 100 million dollar

leads leads one 58 to 42. I was like huh

then next round I said okay 100 leads or

100 marketing and leads one again and so

I was like all right well leads is going

to be the headline of the book couple

different images that I ran and then I

ran different versions of the event that

was the one that ultimately won and so

there's a story of a book that uh that

went out on on dating and it tanked and

they went back and they changed the

cover of the book and the headline

nothing else inside the book and then it

went on to sell over 10 million copies

just by renaming the book you're gonna

put all this time in delivering an

amazing solution and so if there's ever

a most important step it's this one

which is how you name it and how you

package it so step five is making it

fast and easy to consume people learn in

different ways have an audio version

have a written version hardback version

they can hold their hands have the

digital reader version have the video

version on my last book honeybellio

offers which now is I think 350 000

copies sold so I have a decent data set

it's almost a perfect quarter quarter

quarter quarter split in terms of where

people consume it it's so much effort to

write the book and so little effort to

just double and triple in quadruple how

many more people consume it simply by

making it available in more ways to more

people in more places six is you have to

make it [ __ ] good the reason I say

that is because so many people give away

sucky fluff in their lead magnets and

their free [ __ ] and I use [ __ ] as the

emphasis there because they're afraid or

unable to give away more value if you're

afraid of giving away more value

consider the alternative you give away

sucky fluff 99 of the marketplace only

consumes your sucky fluff and makes a

decision of how much value you're going

to give to them in the future and

they're going to say oh he gave me sucky

fluff why would I ever work with him and

then here's the shitty part they then

other people are like hey do you know

Jason so-and-so and you're like oh yeah

I could tip one of his things it was

[ __ ] and so what happens is not only did

this person not buy they actually get

other people to not buy yourself who

otherwise would have you can reinforce

your reputation in the marketplace by

continuing to over deliver to people who

will never give you money and that's

okay because they know the people who

will if a lead magnet is not good enough

that people then tell other people about

it in my opinion you have failed put 100

into something if you've never put more

than 10 put 100 in and see what actually

happens to the quality of the work you

put out in your audience will appreciate

that because people can tell quality and

step seven is that you want to make it

easy for them to take the next step

alright this is so important and people

forget about it it's like we do all this

work and we forget to make it easy for

them to tell us that they want to buy

more when you're making call to actions

don't be clever be clear

just say go to Amazon search my name and

you'll find the book go to my website

acquisition.com watch the videos be very

clear about what you want the people to

do and if you want give them multiple

ways to do it it's the same concept as

making multiple ways of consumption but

making multiple ways for people to take

action just like the book consumption

you can double and triple your response

rates on ctas by making it available in

the way that is convenient to them is

their preference some people like phones

some people like typing in the URLs some

people like scanning it just depends on

the person and you want to make yourself

available to all of them and believe it

or not we covered about 20 of one

chapter of this book I'm gonna have a

big launch party for my book and if the

book's already out either way it'll

still be the same URL which is

acquisition.com forward slash leads go

there and it'll either be a training or

there'll be a registration uh for the

biggest event ever it's gonna be awesome

I will do everything my power to

overlive like crazy for everyone to

attend so you can be there

or be square