[StomperNet] Making more with "loss avoidance"

Earlier this week, we ran a piece about how to use the human
tendency for "loss avoidance" to create compelling offers and
messages to your prospects.

We didn't post it to the blog at that time, but it's here now
if you missed it or want to make a comment.

Today's newsletter is kind of a continuation on that.

If you recall, the basic idea behind "loss avoidance" is that
any given person would STRONGLY prefer to avoid a perceived
loss over any kind of gain.

In fact, research shows that the desire to avoid a loss can be
TWICE as powerful as the desire to acquire something new.

We also discussed how when people have direct experience with
something, they attach memories and integrate it into their own
personal "status quo".  It becomes more valuable to them
PERSONALLY, just by having been a part of their lives.

This is one of the *reasons* people would rather avoid a loss
than gain something new, EVEN if the new item is more valuable.

Today, we're going to talk about how to use this powerful
psychological phenomenon to "lock in" interested prospects to
your sales funnel.

We're also going to talk about how careful arrangement of your
sales funnel can make sure you maximize your profits on ANY
promotion using the power of "loss avoidance".

Now, when you're promoting any kind of product or service, you
should know by now that one of the main ways to generate leads
is to "move the free line" and give away your BEST stuff in
order to draw people in and prove your worth for what you
eventually want to sell.  (Search the StomperBlog if you want
to find out more about that.)

Now, think about how you can use those freebies in order to
draw the prospect in and get them to *assimilate* your stuff
into their lives – even BEFORE they buy.

I'm not talking about a "free trial" here – I'm talking about
creating assets: videos, reports, comment mechanisms – all
designed to get your prospects to INVEST themselves into your
system.

This is called "Increased Commitment" – and you want to get
that from your prospects at EVERY chance you can.

See, they may not be giving you MONEY yet, but they are PAYING
you.  They pay with their time, and their attention.  And you
want to reward them HANDSOMELY for that.

If you ask for a click on a link and they DO IT, over-deliver
on that landing page.  If you ask them to opt-in and they DO
IT, bombard them with unannounced bonuses.

Why?

First, you want to do that because it TRAINS and CONDITIONS
your prospects to WANT to give you their time and attention.

Once they are willing to do that on a regular basis, you have a
VERY powerful degree of control over your audience.

Guys who get really good at doing huge launches know this.

See, what you want to do is make your whole sales PROCESS into
a pleasurable, educational, even PROFITABLE experience for your
prospects.  Get them to associate good memories and good
outcomes with your messages BEFORE you ever ask them to spend a
cent.

Frank Kern has referred to this as "Results in Advance" when he
uses it as part of Mass Control, but it's an old idea.

The KEY to nailing this method is to position your offer -
where you ask them to finally give you some money – as the LAST
PIECE of the process you've put them through.

Think of it as if you've been serving them a full multi-course
meal, and all you're asking them to pay for is the dessert at
the end.

Picture your whole sales process as a pie chart.  If your pre-
sale gives them 2/3rds of the content, your product shouldn't
be a separate piece.  It should be positioned so that it
COMPLETES what they've already been exposed to.

Do you see how "loss avoidance" enters into this?

If you set up your offer so that the prospect feels like all
the time and attention they've given you will be LOST if they
pass it up, you will see a DRASTIC increase in sales.

People HATE to leave things incomplete, and as long as you
haven't tricked or mislead anyone, prospects put through this
process actually become CONFUSED, but in a GOOD way.

See, we said before that people would RATHER avoid losing
something than getting something new.

If you're careful and deliberate, you can make the prospect
"forget" that they are actually acquiring something new when
they buy from you.  Instead, it will feel like a painful LOSS
when they miss out and don't take you up on your offer.

Now, you are going to close a LOT more sales when you do this
correctly, but it won't be 100% or anything.

But here's where I tell you how you can construct your sales
funnel to MAXIMIZE profits.

See, some people are still going to have to turn down your
offer, even though THEY HATE to, and they feel like it's a loss
to pass it up.

Statistics show that the SINGLE BIGGEST factor in that decision
is going to be price.  If you're charging ENOUGH for your
products and services, some people will think it's TOO MUCH.

This is why you want to offer a scaled-down version of your
offer as a DOWNSELL.

The messaging needs to take place AFTER your main
launch/pitch.

You want to address the uncomfortable state you've put them
in.  You know they regret not buying from you.  You know they
hate losing all the effort they put in so far.  You know they
are kicking themselves for not being able to afford your
solution to their problems.

And then you offer them a rope.  Help them out of that
predicament – give them a lower price point for a scaled back
version of your product and you will MOP UP AGAIN on the back-
end.

Now you may think some people will balk at this.  The truth is,
you WILL get some people who get mad.

To avoid this nasty reaction, MAKE SURE you give a little bit
of a cooling off time after your initial launch/offer.

Next, MAKE SURE your initial offer is VASTLY more valuable than
the pared down version you're offering for a discount.

You want it to be FAIR to these stragglers AND the people who
paid full price.  This should eliminate almost all blowback.

And for the people that you DO pick up on the downsell, my
experience shows that they are actually MORE loyal repeat
buyers.  They DON'T FORGET that feeling of relief that came
when you offered them that 2nd chance to minimize their feeling
of loss.

And the next time you have a promotion, they are more likely to
continue behaving the way you conditioned them to.  They will
have learned that you REWARD "increased commitment" from them,
so they will be more likely to give you increasing levels of
commitment in the future.

As always, it's up to you to use these powerful tactics
ETHICALLY and LEGALLY – I strongly discourage you from using
dishonesty or misleading people with this stuff…  The truth
is, you DON'T NEED TO.  It's powerful enough that you can be
straightforward and up-front and it will work BETTER for you if
you do.

Hope this helps with your own marketing.

Until next time,
Keep Stomping
~Andy Jenkins

P.S.  If you like this newsletter (or the previous one) let
us know with a comment below.  Thanks!