How To Create An Offer That Disrupts An Entire Industry

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I’ve got a ton of exciting things coming up for my business and it’s caused me to go back and analyze past successes to pull out the specific things that made me successful.

Very soon I’m giving a talk for the Chief Revenue Officer School for Pavilion and another for the Enterprise Sales Go To Market Strategy. 

In order to provide the most value in my presentations, I had to go back and reverse engineer some of the things we did to see success.

Here’s my equation for success:

Dream Outcome x Likelihood of Success  

_____________________________________      = VALUE

Time Delay x (Effort + Sacrifice)

Let’s break this formula down piece by piece!

  1. Start with the dream outcome. It’s the journey from hell to heaven that you are going to take your customers through. THE BIG PROMISE. 90% of the world plays in this realm.
  2. Perceived likelihood of achievement. People want to know the ROI they will get from the solution.  Perceived likelihood 
  3. Time delay – the shorter you can make the time to achieve the desired outcome, the better.
  4. Effort and sacrifice – how much effort do they need to put in? How much sacrifice do they need to make? The lower the number, the higher the value.

Using this exact formula, I managed to generate $30 M in ARR with 4 sales reps. 

I did it in a commodity market (managed print services) with typical margins of around 15%. By bundling all of our services together into a managed plan, we were able to get 50+% margins.

In this example:

1. The Dream Outcome – 20-30% hard cost savings in 4 or 5 different categories.

2. Perceived Likelihood of Achievement – Presented exact cast studies of success from exact verticals, and exact niches.

3. Time delay – competitors were pitching to replace every piece of hardware in the fleet, which took a lot of time. We proposed a 2 week implementation with no hardware replacement.

4. Effort & Sacrifice – the effective gain of not having to spend hundreds of hours testing new hardware and disrupting the business if they chose the competitor’s solution. Our solution was zero effort on the client’s part.

The value we created was completely different than the rest of the marketplace and it allowed us to close the deal!


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Alex Hermosi – $100 Million Offers