Money Models

Attraction Offers

Win Your Money Back

Quick Summary: This section outlines how to create an effective "money-back" offer that incentivizes customer action and drives results.
Outcome / Benefit: Implementing this strategy can significantly increase customer engagement and retention while generating revenue.
Example: A gym client paid $500 for training with a money-back promise; their success story attracted 13 new customers.
Complete notes

  • Define a clear goal and timeframe for customer success.
  • Choose the offer version: results-based, actions-based, or a combination.
  • Specify required actions for customers to qualify for refunds.
  • Tie actions to advertising and mandatory sales touchpoints.
  • Decide on the refund method: cash back or store credit.

Free Giveaways

Quick Summary: This section outlines strategies for running effective giveaways that attract leads and convert them into paying customers.
Outcome / Benefit: Implementing these strategies can significantly increase lead volume and customer engagement.
Example: A scholarship giveaway for a year-long flagship program with partial scholarships for other qualifiers.
Complete notes

  • Pick a grand prize that is your main high-value offering.
  • Assign a clear monetary value to the grand prize to serve as a price anchor.
  • Design a compelling promotional offer for non-winners.
  • Create eligibility criteria and ask qualifying questions to ensure lead quality.
  • Set firm deadlines for entry and claiming participation prizes.

Decoy Offers

Quick Summary: Decoy offers attract leads by presenting a lesser version of a premium offer, emphasizing the value of the premium option during the sales conversation.
Outcome / Benefit: Implementing decoy offers can significantly increase conversions to premium products or services.
Example: A tanning salon advertises a $5 VIP five-day pass as a decoy against a $19.99/month unlimited membership.
Complete notes

  • Create a decoy attraction offer by advertising a simpler version of your premium offer.
  • Focus the ad on results rather than features to maintain flexibility in sales presentations.
  • Present both the decoy and premium options side-by-side, emphasizing the premium benefits.
  • Use educational analogies to justify the need for the premium option.
  • Design the premium offer with clear extra features and guarantees to enhance perceived value.

Buy X Get Y

Quick Summary: This section discusses the effectiveness of "buy X, get Y free" offers compared to traditional discount offers.
Outcome / Benefit: Implementing these offers can enhance customer engagement and improve sales performance.
Example: For instance, selling three T-shirts for $30 as "buy one, get two free" creates a stronger perception than simply offering a discount.
Complete notes

  • Decide framing: choose between discount vs free offers.
  • Calculate identical-economics scenarios to ensure margins are met.
  • Convert percent discounts into compelling free offers.
  • Prioritize offers with more free items than paid ones.
  • Test multiple X/Y combinations to find the most appealing structure.

Pay Less Now Or

Quick Summary: This section outlines a strategy for offering customers a choice between paying full price later with a satisfaction guarantee or a discounted price now with bonuses.
Outcome / Benefit: Implementing this strategy can increase customer engagement and revenue while minimizing perceived risk.
Example: For a reading speed training, offer $0 down with a $300 bill later if satisfied, or $97 now for immediate access to recordings.
Complete notes

  • Define a high-value core offer that can be marketed as "free."
  • Set clear pay-later terms and establish a full price for later billing.
  • Create a discounted pay-now offer with valuable bonuses.
  • Collect card information during registration to improve show rates.
  • Stack bonuses to enhance the perceived value of the pay-now option.

Free with Consumption

Quick Summary: This section discusses the strategy of offering free content to build trust and ultimately upsell higher-priced products or services.
Outcome / Benefit: By applying this approach, you can effectively convert prospects into paying customers through trust-building and value delivery.
Example: A chiropractor hosts a 3-hour dinner event with a 90-minute presentation, converting attendees into $5k–$10k programs.
Complete notes

  • Define the objective and offer you will upsell.
  • Choose the consumption format and duration.
  • Design the free content as a real selling tool.
  • Embed clear calls to action (CTAs) and next-step mechanics.
  • Structure multi-day events/challenges intentionally.

Upsells

Classic Upsell

Quick Summary: This section discusses strategies for effectively implementing upsells to increase sales and average ticket values.
Outcome / Benefit: Applying these upsell techniques can significantly enhance revenue by turning declined sales into opportunities and increasing customer lifetime value.
Example: Offering free earmuffs with fur coat storage services demonstrates the upsell principle effectively.
Complete notes

  • Identify the primary offer (X) and define the core product/service.
  • Find natural complements (Y) that feel necessary for the primary offer.
  • Frame the upsell using the "you don't want X without Y" structure.
  • Use the "no sale sale" tactic to salvage declined offers with smaller alternatives.
  • Design an upsell chain with logical secondary and tertiary upsells.

Quick Summary: This section outlines a four-step process for effectively upselling menu items to customers.
Outcome / Benefit: Implementing this process can increase sales and enhance customer satisfaction by simplifying their choices.
Example: "Do you want vanilla or chocolate?" — customer picks one and you slide it across the counter.
Complete notes

  • Un-sell what they don't need to reduce decision fatigue and build trust.
  • Prescribe what they do need with detailed usage instructions to increase purchase likelihood.
  • Ask A or B to simplify decision-making and assume the sale.
  • Make it easy to pay by using a card on file to reduce friction.
  • Prepare fallback guidance for sold-out items to maintain customer trust and program adherence.

Anchor Upsell

Quick Summary: Anchor upsells involve presenting a premium item first to make the main offer appear more attractive.
Outcome / Benefit: This strategy can significantly increase average order value by encouraging customers to spend more.
Example: A customer with a $500 budget sees a $16,000 suit, then chooses a $2,000 suit, ultimately spending around $2,500–3,000.
Complete notes

  • Create a true premium anchor (5x–10x) by presenting a clearly premium option first.
  • Trigger the gasp by allowing customers to react to the high price.
  • Rescue with the main offer positioned as the practical/better value after the gasp.
  • Differentiate via secondary features while keeping primary features the same.
  • Include premium anchors in every funnel/offering to capture high-budget buyers.

Rollover Upsell

Quick Summary: Rollover upsells allow customers to apply credits from previous purchases towards new offers, enhancing customer retention and satisfaction.
Outcome / Benefit: Implementing rollover upsells increases customer loyalty and revenue by making customers feel they are receiving value without losing money.
Example: "Mrs. Banks, I wanted to give your money back… I want to give you $500 of your money back as credit towards staying pain free for good."
Complete notes

  • Define who to upsell by identifying target groups: win-back, upset customers, competitors’ unhappy customers, and regular customers.
  • Decide what to upsell, aiming for a higher-ticket offer that is approximately five times the credited amount.
  • Design how to roll over the credit, choosing between upfront application or spreading it over time.
  • Craft empathetic messaging for each target group to reduce resistance and enhance goodwill.
  • Structure upsell pricing to ensure profitability by targeting significantly higher-priced offers.

Downsells

Payment Plans

Quick Summary: Payment plans allow customers to pay over time, making higher-priced products more accessible without devaluing the offer.
Outcome / Benefit: Implementing payment plans can increase conversions and revenue while managing payment risk effectively.
Example: Present a payment plan price of $12K, then offer a prepay discount to $10K.
Complete notes

  • Anchor high payment-plan prices and offer a prepaid discount.
  • Offer third-party financing to transfer payment risk.
  • Use credit-card reframing to let buyers choose their payment terms.
  • Implement layaway options to build anticipation and shift risk to customers.
  • Confirm buyer interest before negotiating payment terms.

Free Trials

Quick Summary: This section discusses how to implement a "trial with penalty" to enhance customer compliance and increase conversions.
Outcome / Benefit: Applying this strategy can significantly boost customer engagement and sales conversion rates.
Example: For instance, a B2B challenge required participants to send 100 outbound messages daily to avoid penalties, resulting in increased client acquisition.
Complete notes

  • Define trial type: Offer the product/service for free conditional on meeting specific terms; collect a card and plan to bill only if terms are not met.
  • Specify compliance actions: List concrete actions customers must complete to avoid penalties (e.g., attend calls, post progress).
  • Associate fees to non-compliance: Decide which failures trigger fees and set penalty amounts.
  • Set total fee target: Calculate total potential penalties to match what you would have charged in a comparable paid guarantee.
  • Choose positioning: Prefer presenting the trial after a prospect refuses your initial paid offer (downsell).

Feature Downsells

Quick Summary: Feature down-sells involve lowering the price by adjusting what the customer receives, such as removing features or reducing quality.
Outcome / Benefit: Effectively implementing feature down-sells can increase customer conversions and encourage upgrades to higher-priced offers.
Example: Instead of a three-month supply, offer a one-month supply at a lower price.
Complete notes

  • Identify core features and quantify them.
  • Rank features by customer-perceived value.
  • Choose a removal strategy (quantity, quality, or feature).
  • Set the new price relative to value removed.
  • Phrase the offer with the “How about now?” framing.

Continuity Offers

Continuity Bonus Offers

Quick Summary: Continuity bonus offers enhance customer sign-ups by providing valuable incentives for joining continuity programs.
Outcome / Benefit: Applying this section can significantly increase signup rates and customer retention.
Example: A gym owner closed 70–80% of walk-ins by offering a free valuable challenge when people signed up for membership.
Complete notes

  • Define the bonus and ensure its perceived value exceeds the first continuity payment.
  • Choose between one-time upfront bonuses or ongoing monthly bonuses based on your goals.
  • Combine bonuses with discounts to maximize perceived value and conversion rates.
  • Create urgency by limiting the bonus availability to encourage immediate sign-ups.
  • Test different pricing structures to find the optimal balance between upfront cash and continuity subscriptions.

Continuity Discounts

Quick Summary: Continuity discounts incentivize longer customer commitments by offering free or discounted time on products/services.
Outcome / Benefit: Applying this section can enhance customer retention and optimize cash flow.
Example: Offering one year free if a customer signs a five-year agreement.
Complete notes

  • Define the discount application method by choosing one of the four approaches: upfront, end-applied, spread across the term, or discounted time instead of free.
  • If choosing upfront free-time, structure the contract to push out the term, ensuring the free period is added to the full paid commitment.
  • Evaluate enforcement/collateral capability to confirm if commitments can be enforced effectively.
  • If you have high churn, avoid upfront free-time offers and consider end-applied or spread approaches instead.
  • Collect upfront cash through first/last month fees or onboarding/setup fees to offset acquisition costs.

Waived Fee

Quick Summary: This section outlines how to implement a waived fee structure to reduce churn and incentivize longer customer commitments.
Outcome / Benefit: Applying this section helps increase customer retention by making the cost of cancellation higher than the cost of staying.
Example: A customer can choose to pay a $5,000 onboarding fee upfront for month-to-month flexibility or commit to a 12-month term to waive the fee.
Complete notes

  • Define your core monthly product and rates.
  • Set the onboarding/startup fee at 3–5× the monthly rate.
  • Choose a minimum commitment length of 6 months, ideally 12 months.
  • Clearly define cancellation terms that enforce the onboarding fee if the commitment is broken.
  • Offer explicit options at sale: month-to-month with a fee or a committed term with the fee waived.