Understanding Business Models

Get Results: business model graphic
Get Results: Business model

A business model is an abstract view of a company’s commercial activities: how it generates revenue by providing value to its customers, how it converts that revenue into profit and handles its costs.

 MIT Business Model Archetype

When I first started to think about business models I came across this model developed by MIT which provides a good foundation for a systematic study of business models, by defining business models and distinguishing their different types. Their model consisting of two elements:

(a) what the business does, and

(b) how the business makes money doing these things.

It uses two fundamental dimensions of what a business does. The first dimension—what types of rights are being sold—giving rise to four basic business models: Creator, Distributor, Landlord, and Broker. The second dimension—what type of assets are involved—distinguishes among four important asset types: physical, financial, intangible, and human.

Get more information (takes you to mit pdf) it is a great basis to start from ….

Another Approach

Another business model, which takes a different approach, by looking inside a business, at the relationship it has with its customers, in terms of transaction frequency (either once only or recurring), or revenue contribution (being small or large)

Get Results: Business models
Get Results: Business models

There are four types of business models here.

  • Customer group A – once-only transaction, small contribution purchasers.
  • Customer group B – are large contribution, but once-only purchasers.
  • Customer group C – provide small contribution, via frequent transactions
  • Customer group D – provide large contribution, via frequent transaction.

It doesn’t matter if the business is traditional (brick and mortar) or Internet-based. It makes no difference if the business sells a product or service. The size of the business doesn’t matter, either. The only difference between a small business and a large one is the number of business models contained within the enterprises.

  • Transaction Frequency: Some customers /customer groups provide “recurring” revenues. Their business repeats from period-to-period. Other customers may be, in contrast, one time purchasers.
  • Contribution to Total Revenues: Some customers contribute only a tiny portion of the total annual revenue. In contrast, others contribute a substantial slice. You might find that other customers are a mix of the two. providing small individual contributions but, over the year, they might account for a significant portion of total annual revenue.

To illustrate this, in my photography business, we provide products that require return visits, such as our baby packages, were newborns are brought back 3 times throughout their first year, to complete their package. Some of these customers may not spend as much per visit, but overall our average sales per customer (not transaction) are higher than most of our one-off sessions. These customers fall into either group C or D.

Otherwise most other photography customers come in maybe once every couple of years, if at all again (group A or B).

In contrast our nurseries and school clients use us twice a year every year, but average sales per transaction tend to be much less than our studio customers (falling into group C) but if you group these individual customers collectively per school (as they are taken on mass in one day) then they move into group D .

This business model offers a different dimension of analysis than the first (MIT model) but both are equally as valid, depending on your requirements.

Business Model Generation

I love the book “Business Model Generation” which is a great resource for anyone looking to further understand the construction of business models. The slideshare presentation below outlines the main points, you can purchase the book below. Please note this is an affiliate link and if you click through and purchase I will earn a commission, but this is not why I am providing a link here, I am doing so because I genuinely believe it is a good source of information on the subject of business models. If you do click through, I would like to thank you for your support of the site via its affiliates, it helps us provide free information on the site.

The book goes into depth on how to analyse you business into segments,

  • key Partners
  • key Activities
  • key Resources
  • Cost Stucture
  • Offer
  • Customer Relationships
  • Customer Segments
  • Channels
  • Revenue Streams

Each of these help to make up the “business model canvas”, which is a great framework for formulating a comprehensive model. I would highly recommend it.

The Secret To Success They Don’t Want You To Know

Get Results: The secret to success
Get Results: The secret to success

When we are small children, we learn by copying others. And if you have children of your own, or are ever around them, you know they tend to copy whatever you do.

Sometimes it’s cute, sometimes it can be embarrassing.

Throughout mankind’s history, most “learning” has come from copying.

For instance, if you want to learn a trade, you need to work with a skilled and qualified trades-person and be their apprentice, slowly learning the ins and outs under their close supervision.

NLP modeling works on the same principle of finding someone that is expert in what you want to do, and then copying them. You have to copy everything they do, not just their actions but their thought processes, and reasoning.

Obviously, the more complicated the skills required, the more difficult it is to copy them.

One crucial aspect of learning is the need to make mistakes, and to learn from them going forward, because no matter who you are modeling, they can’t have achieved any level of success without a significant amount of trial and error. Or as they say in NLP, “Trial and Feedback.”

Unfortunately, many people like to be told exactly what to do in the hope it will relieve them from making any mistakes.

“I’m ready for success! I’m ready to take action! Just tell me what to do and I’ll do it!”

But they discover the “secret” is to simply keep trying until they get it right, unfortunately most people don’t like this idea so much.

Sure, modeling can help. It can speed-up the process. But being willing to accept any “result” no matter how “good” or “bad” is required for any kind of real success to take place.

This may be the reason why most people are always looking for the next “big secret.”

They would rather wait their entire lives for somebody to tell them what to do, and guide them step-by-step, rather than simply taking action and seeing what happens.

Sure, it can be terrifying taking action. But it is also incredibly liberating. As you’ve likely realized from time to time, most of our deepest fears never actually materialise.

So when you do “wing it” just to “see what happens,” it’s rarely even close to what you feared could happen, and each time you try something, and accept whatever happens as valuable feedback, you will learn something.

Sure, often times you’ll learn what not to do, but this creates a foundation to build on and allows you to learn from your experience and at a much deeper psychological level.

Equally important is the deep knowledge that trying and “failing” isn’t so bad.

It can actually be kind of fun, as long as you have a clear idea of where you’d like to be eventually, and the persistence to keep going no matter what, you’ll not only get there, but have a lot of fun in the meantime.

Make a start today…

Using keyword Research within your Online Marketing Strategy

Get results; keyword research
Get results; keyword research

What is Keyword Research

Keyword research can be used in a couple of different contexts, the first would be by a business owner or niche website owner, looking to improve visibility on the internet, so that they appear higher up in search results of popular search engines such as Google and Bing.

If you are such as business owner, this would involve finding out what your target market is typing into the major search engines to find the products, services or information that you provide.

Once you have these keywords you can use them to optimise your website so that you show up in those very same search results. When I say “optimise your website” I’m talking about writing articles that are centred around those keywords, as well as adding the keywords to your page title, and description tags.

The second context in which you can use keyword research is when you’re looking to start a website from scratch and want to monetise it with adverts such as Google Adwords (where you are paid if someone clicks on an advert on your website). This can be compared to ‘panning for gold’ where you sieve out all the dirt and soil (poor quality keywords) until you are left with little gold nuggets (money keywords).

The golden rules for gold nugget keywords are:

#1 Relevance – keywords relating to niche to attract ‘targeted traffic

#2 Traffic – high traffic volume is best to ensure there is sufficient potential custom.

#3 Competition – low competition is best but not too low as this might be evidence of there not being much of a market.

#4 Commerciality – is the measure of high value keywords.

Keyword research can be done in Google Adwords for free, by simply signing up for an account, alternatively there are a number of software solutions available that will do more in-depth analysis of potential keywords such as Market Samurai which I have also used myself in the past.

#1 Relevance

Relevance is important if you’re a business owner and have particular products to sell or already have a website in a particular niche. It is about finding keywords that will attract ‘targeted traffic’ This is traffic that is going to be interested in your offering, and who are likely to buy from you or click on the ads on your site.

If you’re using Pay Per Click (PPC) such as Google Adwords, where you’re paying to drive traffic to your site then Keyword research is vital to make sure you’re not spending money on unnecessary clicks. For example If your selling ‘dog collars’ then you will want to remove keywords such as ‘training’ for instance, because these searchers are not looking to buy dog collars at this time. You can set such keywords as negative keywords in Google Adwords so that when someone types in this negative keyword your advert will not show, and you won’t be charged for an inappropriate click.

You will definitely want to include the word ‘dog’ as a keyword rather than something like “pet”, otherwise you might find “cat” searches are included in the results. Using long tail keywords can help qualify searches. for instance ‘buy dog collars’ is likely to qualify potential purchasers rather more than ‘dog collars’ would.

tip – Go to amazon.com and type in your keyword, look at books section (relating to your niche), and look at the table of contents, and check some of key terms and add the interesting ones, and do further searches of these ‘semantic’ keywords. This tactic can be used for writing articles and also to find what subjects would be popular to include on your website.

If you fall under the second context of keyword researcher (described above) than relevance doesn’t matter as much because you don’t have a particular product offering. Whatever you make the website about, Google Adwords will match the advert content to your content. In this circumstance you want to make sure you are targeting niches and keywords that have a higher value, see #4 commerciality below for more information about this.

#2 Traffic

It is important to know the difference between “total searches” which are cited in most of the keyword research platforms and the volume of traffic you are likely to actually get on your website should you rank on the first page of the Google SERP results. Below is a table showing the typical breakdown for traffic that is likely in each of the 10 listings on the first page of Google

  • 95-98% of traffic come from 1st page of Google
  • Even if you are #1 you won’t get all the traffic
Google position % clicks Traffic per 1000 Incremental Improvement in clicks %
1 42% 420 254%
2 12% 120 40%
3 8% 80 39%
4 6% 60 24%
5 5% 50 20%
6 4% 40
7 3% 30

#3 Competition

There are two important measures when looking at the competition for a particular keyword phrase the first is the amount of competition. Ideally look for a lower amount of Google searches ideally less than 30,000 search results for any particular keyword phrase, you can check this by going to www.Google.com and typing in your keyword to see the amount of searches found.

Secondly consider the strength of competition. It’s best to avoid competing with professional websites, that have been around a long time, and that are highly optimised for the particular keyword phrase you are targeting. Also avoid competitor websites that have lots of webpages and a lot of backlinks pointing to them. If the first page on Google or Bing is mainly made up of these kinds of sites you are unlikely to be able to outrank them, so it is better to avoid these competitive keywords phrases altogether. Of course you have little option if you have a particular product offering and these keywords are the ones used by your target market, in this circumstance, where you are unlikely to get a first page listing you may consider PPC (pay per click) advertising to get a first page presence.

#4 Commerciality

The commerciality of a keyword is how much a particular keyword is worth. Google Adwords is a bidding system for keywords and is based on supply and demand. The more demand for a particular keyword the higher the cost per click (CPC) for that keyword. This is a good indicator of how much money is being made on a particular keyword. If an advertiser is paying $10 per click for a keyword it is likely that they are making more than that from their website sales, otherwise they wouldn’t be willing to pay that to Google to drive traffic to their site.

So when your conducting any keyword research keep in mind these golden rules and your more likely to find those golden nuggets.

Check out market Samurai’s explanations below of each of the golden rules. Useful information even if you aren’t considering using their software.

Relevance

Traffic

Competition

Commericality

Promotion

Track your Ranking

Market Samurai is a great tool which saves you valuable time and helps give you a greater insight into your keyword selection.

Alternative you can use a free service provided by Google called Google Keyword Planner. You need to sign up for an account to access this online tool, but it’s a great resource. However, it’s not as good as Market Samarai in terms of depth and insight. In fact, MS uses your Google Keyword planner account to access much of the data needed but is much better at organising it for analysis.

…. hope you found this article useful.

While you’re here, check out my marketing guide.

Interesting Content From Across The Internet

Featured


This video from Uplift talks about dealing with your inner world to improve your outer world, after all your outer world is a reflection of your inner world. Self awareness is a very powerful skill to develop.

Archive

This is a great video detailing how to be effective in your meditation practice. Susan Piver talks you through her recommended mediation process.

  1. Place attention on your breath,
  2. Openness – allow your thoughts to be as they are. Don’t try to fight them coming and going, just don’t let them distract you,
  3. When you notice you are being distracted, let it go. There is nothing to hold onto.

If you’re interested in persuasion, this is a must watch for you.

Watching This Video From Alan Watts Will Help You To No Longer Fear Death

Jim Carrey is a multi talented guy, as well as being hilariously funny in films like Dumb and dumber, Ace Ventura and many other popular movies, Jim is a great motivational speaker. This is one of his best talks, about how to think about living your life, enjoy

We are all the same under our “labels”, we are all members of the human race. Our “labels” act to separate and divide us, they try to fool us into thinking we are different to others, but in reality these labels are lies. We are more than our names, ages, race, religion, politics, our country of origin.. we are more than the colour of our skin. We are one, we are the human race….check out the video above for more insight.


Posted by Get Lasting Results on Tuesday, 29 December 2015
Goal setting is a key component for improvement. After-all you need to have at least an idea of the direction you’re heading. A direction-less life, without purpose is one without passion. Find out more about goal setting here

The cycle of behavior

A video posted by @getlastingresults on

I wrote abit about the cycle of behaviour here

Understand The Cycle of Behaviour

Get Results: the cycle of behaviour
Get Results: the cycle of behaviour

The model above illustrates how improving the quality of our lives, starts with our thoughts.

THOUGHTS shape our ACTIONS

ACTIONS shape our EXPERIENCES

EXPERIENCES shape our THOUGHTS

Don’t take my word for it, think about your own experiences. What are the thoughts you have, the beliefs and values you hold? Where do they come from? They come from your experiences of life, through what you see and hear, how people and life treats you. Your upbringing, your relationships etc.

These experiences depend on your actions. The things you say, and do. Your impact on the people and world around you. What shapes your actions?

Your thoughts, the things you think about. The things that matter to you. Your  beliefs  values, opinions…. and so the cycle continues.

Let’s look at a couple of examples to illustrate the process.

If someone is extremely rude to you (experience), you may feel angry and this will influence your feelings and emotions (thoughts), you may keep playing the event over and over in your mind, fuelling the feeling of anger (thoughts). If this anger is intense you may display it in your behaviour (actions). You may snap at your nearest and dearest, who snaps back causing an argument (experience), further fuelling anger (thoughts), and so the cycle continues, unless something breaks it.

Let’s look at another example. Let’s imagine you have been cheated on by your ex-lover (experience), who you really cared about. You are still upset and distrustful of the opposite sex as a result (thoughts) even though a few months have passed since it happened, you are then asked out by someone else, but you turn them down, because you are not yet ready and still somewhat distrustful of the opposite sex (action), the person doesn’t approach you again, in fact avoids you like the plague in future (experience), yet they may have been the love of your life for all you know. You are failing to move on because of what’s going on in your head (thoughts), thoughts that relate to someone else, and nothing to do with the person that asked you out. Now it might be a good idea not to jump from one relationship straight into another, it is probably sensible, for a while at least, but on the other hand you might be craving a relationship (thoughts), but are fearful of committing again (actions) to someone in case you get hurt again. This means you stay single (experience) and miserable (thoughts). This cycle then becomes problematic, and unless you make the necessary changes to your thoughts, you are going to impact your experience of relationships going forward.

Think about the areas of your life you are struggling with. Go through the thoughts you have about them, the actions that result from your thoughts, and the experiences that are a consequence of your actions.

How do you break the cycle? You either move out of thought, out of your Ego, your mind, whatever you want to call it and rise into the spiritual plane. If you don’t buy into spirituality, then concentrate on addressing your thoughts, examine why you think what you do. Where your values, beliefs, thoughts, opinions and the like, come from and if they really make sense for you and your goal(s). Make positive changes to your thoughts and the rest will follow.

If your EXPERIENCES aren’t what you want, look at your ACTIONS and try to identify what you need to be doing to create the EXPERIENCES you’re wishing for. Then once you’ve identified these, go back and check that your THOUGHTS (beliefs and values etc) are aligned in such a way as to motivate those necessary ACTIONS.

If you found this article useful, please share it with friends and family.

The Truth about Calories

Get Results: scales of calorie intake and burn
Get Results: scales of calorie intake and burn

Calories are units of energy, we are using the term for the purpose of this article to describe the amount of energy that we either consume in the food that we eat or burn off as we go about our daily routines. They are generally measured in kilocalories (Kcal), which are made up of 1000 small calories otherwise known as gram calories. check out a full explanation of what a calorie is on Wikipedia

It is important to maintain an healthy weight and we do this by maintaining a balance between the calories we eat and the calories we burn, in other words we need to consume only as many calories as we use up, and no more.

Consuming more calories that we burn off results in weight gain, consuming less calories than we burn off means we loose weight, but is dangerous long term because continually consuming less calories than we need will result in illness, and even death.

The difficulty we all struggle with is accurately knowing how many calories are contained in the food we eat and how many calories we are burning as we go about our lives, so that we can determine a good balance between the two.

Consuming Calories

The Food industry uses average values to determine what calories are contained in our food, these are:

  • 4 calories per gram of fat
  • 4 calories per gram of carbohydrates
  • 9 calories per gram of protein

Most processed foods contain nutritional information on the packaging regarding the contents of the food we buy and this gives us a better idea of what we are consuming. Below is a list of common foods and their calorie content to help you determine for yourself what is calorie dense and what is not. If you divide the calories figure by the serving size gram figure you will get the calories per gram figure which makes comparing much easier.

Food Serving size Calories Calories per g
Jacket potato 180g 245 1.3
Salad 100g 19 0.19
Chips 100g 253 2.53
Chicken salad sandwich 1 pack/195g 257 1.3
Garlic bread (low fat) 84g 94 1.12
Chicken tikka 150g 232 1.5
Naan bread 1/2 piece 269 na
Banana 150g 143 0.95
Grapes 50g 30 0.6
Big Mac 215g 492 2.3
Cheeseburger from Macdonalds 141g 379 2.7
Milk (semi skimmed) 30ml/1 fl oz 96 3.2
Cheddar cheese 40g 172 4.3
Eggs size 3 57g 84 1.5
Coffee 1 cup/220ml 15.4 0.07
Can of coke 330ml 139 0.4
Tea 1 mug/270 ml 29 0.1
Yoghurt strawberry 1 pot /200g 123 0.6
Cheese and onion crisps 1 bag /35g 184 5.3
Mars bar 65g 294 4.5
kit kat 2 finger bar / 21g 106 5.0
Chicken breast 200g 342 1.7
kabab 168g 429 2.5
Pork chops 1 oz /28g 73 2.6
Doughnut 49g 140 2.8
Pint of beer 1 pint (568ml) 182 0.3
Wine 1 glass/120ml 87 0.7
Vodka 40% alcohol 25 ml 55 2.2

 

I don’t think there are many surprises from these figures, fruit and vegetables contain less calories, diary products are very calorie dense as are meats and chocolates. I was initially a little shocked at the difference between beer and vodka, but soon realised that most of a pint of beer is water in reality, where vodka is much less diluted.

 

Burning Calories

We burn calories even if we lay in bed all day. This is our basal metabolic rate and are the calories we burn just to keep our bodily functions and organs going. You can work out your basal metabolic rate here.

So we have our basal metabolic rate as a starting point, then any movement, whether walking, doing house work, going to the gym, walking etc adds to the amount of calories that we burn.

We burn 60-90 calories per hour while resting, which is at one end of the spectrum, and upto 20 calories per minute doing intense exercise at the other end, with all other activities somewhere between these two.

Another factor which impacts the rate in which calories are burned, includes the size of a person, the bigger you are the more calories you will burn. Men tend to burn more calories than women do.

 

Striking a balance between calories in and calories out

Mind Games

Our minds can play tricks on us with regards to how hungry we feel. During an experiment conducted by the BBC who wanted to see how the labelling and presentation of food would affect how people would feel after consuming it. They separated twins into two groups one group was presented with a drink which was labelled as an indulgent drink containing 900 calories per bottle and was labelled to reflect this. The second group was presented with an healthy drink containing just 200 calories and labelled accordingly. The drink was in fact the same in both groups.

The results showed that when they thought it was an healthy/low calorie option they tended to feel hungry quicker, compared to when it was considered an indulgent, high calorie option. The findings suggested that our minds affect how we interpret physical feelings of hunger.

Substituting high calories with lower calorie options

One way of lowering our calorie intake is by replacing high calorie foods with lower calorie substitutes. This can be a more palatable option than simply cutting down on the amount we eat or simply cutting out certain high calorie meals altogether. For instance if you’re making bangers and mash use double cream instead of butter, use parsnips and swedes to replace some of the potato.

Other tactics

If you’re making Steak and chips, shake the oils from the chips more vigorously, lower the portion size of the chips (portion control), cook the steak for less time which makes the steak harder to digest and thus uses more calories during the digestive process.

We only absorb half of the calories from foods rich in fibre, the rest passes through our system, undigested.

Feeling fuller for longer

Some fibre absorbs water in our stomach, and this helps make us feel fuller for longer. Protein also makes you feel fuller for longer. Consume more liquid type foods such as soups which tend to make us feel fuller. Drink more water, this also aids the feeling of being full.

The bottom line to weight loss is to burn more and eat less calories, how you go about this is entirely up to you, it’s about making lots of little changes in diet and activity levels so you can tip the balance in your favour.

Check out our Ultimate Weight loss guide below for more tips on losing those extra pounds.

Get Results: Ultimate Weight Loss Guide
Get Results: Ultimate Weight Loss Guide
Get Results: Ultimate Marketing Guide
Get Results: Ultimate Marketing Guide
Get Results: Ultimate Business Guide
Get Results: Ultimate Business Guide

Forming Attachments: How Easy To Be Manipulated

 

Get Results: cognitive attachment map graphic
Get Results: cognitive attachment map graphic

I went for a walk earlier today, it’s something I do 4-5 times a week, and have done so for most of the last 12 months. I go walking around a flash locally known as Amberswood. It’s a lovely walk, and I enjoy my time surrounded by nature. I have become accustomed to seeing a family of swans living on the water. I have seen the cygnets growing up, and I must admit it has added a great deal of pleasure to my walk to see the family each day.

For the last couple of days however I have noticed the swans have been missing and the flash seems somewhat empty without them. There are still ducks on the water, but it doesn’t seem the same without the family of swans being there. I am assuming they have migrated for the winter,

I suddenly realised that I had formed an attachment to the swans without even realising it, and am now missing them being around, resulting in a feeling of sadness. This got me to thinking about how we humans form attachments which can often go on to develop into deeper emotional relationships. I came to the conclusion that if something is #1 – a regular part of our lives and #2- it adds some pleasure to it, then we are inclined to form an attachment to that thing.

I don’t think that an attachment would form with either of these elements missing.

I guess this is how brands try to embed themselves into our lives. They appear to us regularly through marketing campaigns, and attempt to provide a positive contribution to our existence. How else would you explain the longevity of brands such as Heinz, Kellogg’s, Cadbury’s  and the like and how we have a great  fondness for them, and seek them out when shopping.

These kinds of attachments don’t usually develop into anything emotionally deeper than a fondness, but they do form as attachments in the same way as deeper relationships would have started out. An attachment is an attachment whether it be to a person, a thing, an idea, an affiliation, or a family of swans. The difference lies in the strength of that attachment and how deeply it embeds into our sense of self, over time.

Lesson Learned

The lesson to learn from this realisation is to be wary of wolves in sheep’s clothing trying to manipulate their way into our hearts. Make sure your attachments are worthy of your feelings.

Elevator Pitch Construction

Get Results: If you can't explain it simply, you don't understand it well enough
Get Results: If you can’t explain it simply, you don’t understand it well enough

An Elevator pitch is designed to describe your value proposition in a short one sentence summary that gets to the heart of the matter and opens up your audience to ask follow up questions, by making them curious to find out  more. What it also forces you to do is completely understand what you are offering to prospects, as the quote above states, if you can’t explain it simply, you don’t understand it enough, and if you don’t understand it enough, how do you expect prospects to?

To construct your elevator pitch answer the following set of questions:

  1. Who are you? – I’m Mike
  2. What you love to do? (what do you feel supremely qualified to teach other people) – Provide business solutions
  3. Who do you do it for? – Small business owners
  4. What do those people want or need? Run more successful businesses
  5. How do they change or transform as a result of what you give them? -Have a better quality of life

Now put this all together into a sentence – “I’m Mike, I provide business solutions to small business owners so they can run more successful businesses, and have a better quality of life”

Only the first 2 are about yourself the others are about other people. The most successful people focus on other people.

When answering “What do you do?” answer by starting with the last point “I help small business owners enjoy a better quality of life”, this opens up the conversation and begs a follow up question.

Get Results: Elevator pitch construction
Get Results: Elevator pitch construction

Check out our Ultimate guides by clicking on the links below for more in-depth content

Get Results: Ultimate Marketing Guide
Get Results: Ultimate Marketing Guide
Get Results: Ultimate Weight Loss Guide
Get Results: Ultimate Weight Loss Guide
Get Results: Ultimate Business Guide
Get Results: Ultimate Business Guide

What does ADDING VALUE mean

Get Results: First, fastest or best
Get Results: First, fastest or best

Adding Value in Business

One of the first things I learned in business was the principle of adding value. Adding value is about bringing something to the table that customers will pay you for. In business it can involve adding convenience, by saving your customers’ time, money, resources, energy.

It can be closer-to-hand, on-demand, just-in-time. It can make things easier for customers, saving them effort, worry, frustration. It can provide them with expertise and knowledge to help them get better results. It can help people get closer to their goals by increasing efficiency, motivation and productivity or help them be more effective in their goal seeking. It can help them solve problems, such as medicines do for the ill, or losing weight, being healthier and fitter, or unblocking bottle necks from their production processes. It can make people feel better about themselves by adding prestige and luxury to their lives. Adding value can involve increasing quality, reliability, durability to something they purchase.

Get Results: Add Value
Get Results: Add Value

List of value added characteristics

  • Newness – satisfying an entirely new set of needs that customers previously didn’t perceive because there was no similar offering. i.e. cell phones
  • Performance – improving product or service performance i.e. PCs
  • Customization – tailoring products and services to the specific needs of individual customers.
  • “Getting the job done” – helping customers get certain jobs done i.e. rolls Royce servicing jet engines for airlines
  • Design – getting a product to stand out with superior design
  • Brand/status – finding value in the simple act of using or displaying a specific brand i.e. wearing a Rolex watch signifies wealth.
  • Price – offering a similar value at a lower price to satisfy the needs of price sensitive customer segments.
  • Cost reduction – helping customers reduce costs is an important way to create value. i.e. salesforce.com sells a hosted CRM application. This relieves buyers from the expense and trouble of having to buy, install and manage CRM software themselves.
  • Risk reduction – reducing the risk of purchasing products of services. i.e. for a used car buyer, a one year service guarantee reduces the risk of post purchase breakdowns and repairs.
  • Accessibility – making products and services available to customers who previously lacked access to them. i.e. netjets popularised fractional private jet ownership.
  • Convenience/usability – making things more convenient. i.e. ipod and itunes offered unprecedented convenience searching, buying, downloading and listening to digital music.

Adding Value in Relationships

In a personal situation, adding value can be done through friendship, by supporting, listening, understanding, caring, encouraging, not putting friends down or making fun of them, or defending them when someone else does. Being fun to be around, and adding to others’ lives rather than taking away from them. Friendships are about connecting emotionally, being empathetic, and authentic. Keeping your word, keeping a secret when you are asked to. It’s about giving them your time, attention, your love and sincerity.

Adding Value for Strangers

Add value to strangers by smiling at passers-by and saying hello, being considerate, friendly, courteous, pleasant. Holding a door open for someone struggling with shopping, letting someone go in front of you when you can see that they are rushing.

The Bottom Line

At the most basic level, adding value is about adding something of value to another person’s life. No matter how large or small that value may be. It’s about making people feel better about their lives even just a moment of their life. Move them towards a better state of being. Move them away from worry, pain, frustration, unfulfilled, disappointment, feeling conflicted, angry, useless, resentful, dissatisfied, struggle, lack of.., limited, confused and towards pleasure, love, completeness, success, their goal, wealth, the realisation of something, triumph, progress, accomplishment, expansion, abundance, freedom, a breakthrough, a work-around, to survive or even thrive. Go out into the world and make it a better place for yourself and others by being a giver and not just a taker.

Let me add massive value for you, by joining my mailing list, just sign up below and we will send you tailor made content directly to your inbox. For even more value check out our Ultimate guides by clicking on the posters below where you will find lots of valuable self help information.

Add Value Quotes

“Stop Selling, Start Helping.” – Zig Ziglar

“My mission is to add value. My attitude is of active curiosity, and my method is through relationships of trust.”

“Key to wealth: Provide more value than anyone else.”

“Try not to become a man of success, but rather try to become a man of value.” Albert Einstein

“I learned the value of hard work by working hard.” – Margaret Mead

“Add value to everyday. Sharpen your skills and your understanding.”

“If your presence doesn’t add value, your absence won’t make a difference.” – Zero Dean

“Find your passion, learn how to add value to it, and commit to a lifetime of learning.” – Ray Kurzweil

“Smiles ADD VALUE to our face, love ADDS VALUE to our heart, respect ADDS VALUE to our behaviour and friends and family ADD VALUE to our life.”

“The more value you add to the lives of others, the more valuable you become.” – Hal Elrod

“Price is what you pay, value is what you get.” – Warren Buffett

“Strive not to be a success, strive instead to be of value.” – Albert Einstein

“innovation is change that unlocks new value.” – Jamie Notter

“Never waste your feelings on people who don’t value them.”

“You add value to people when you value them.” – John C. Maxwell

“Too many people overvalue what they are not and undervalue what they are.”

“We make a living by what we get, but we make a life by what we give.”

“Be the type of energy that no matter where you go, you always add value to the spaces and lives around you.”

“Once you realize your worth, it will be easy to get go of those that don’t.”

Writing effective sales letters

Get Results: writing sales letters
Get Results: writing sales letters

Plan your Writing 

The aim of writing a sales letter isn’t to impress the reader with stylish prose, but to present your sales pitch as clearly and logically as possible. Ask yourself, what your product does for the customer:

  • What problems does it solve?
  • How does it do this?
  • How can I prove its benefits?
  • What exactly does the products do?

Make notes, then write a list of the reasons why someone should buy your products. Use this list to form the spine of your writing and provide a seductive sequence of emotional and logical reasons why your readers should say “yes”.

Know who your customers are

It is critically important to understand who your customers are and who you are writing to, so that you can gauge how to pitch your words. You need to understand your customers motivations, what makes them happy, what makes them angry or fearful and what aspects of their life they want to improve, what they want to gain or avoid. The psychological triggers that make people buy are based on either

  • Logical motivations e.g. saving time, money or improving how they perform a task
  • Emotional feelings e.g. being more successful, popular or wealthy

When structuring your writing you need to identify how you can appeal to both these triggers.

  • How can you make the reader feel that buying your product will make them more popular or successful?
  • What are the practical reasons why it will be money well spent?

If you’re able to satisfy both triggers your writing will be able to tap into the powerful mental process that motivates people into buying products and services.

know the difference between your products benefits and features

knowing the difference between benefits and features will help you to aim your communication at the core issue in your customers mind, the underlying need or want, which will leverage your message to give maximum impact and move your customer into buying mode. Product features are simply the characteristic of a product, the things the product actually does or has, The features of a car might be having

  • air conditioning as standard.
  • economical on fuel
  • having Rolls Royce branding
  • anti lock brakes or ABS

while these are important to mention, they are simply the “means to the end ” they aren’t the underlying reason a customer buys. Using the feature list above we can identify the benefits:

  • Having ‘air conditioning as standard’ means being comfortable even on very hot and sunny days (comfort)
  • Being ‘economical on fuel’ means keeping more of your money to enjoy on the things that are important to you (enjoying more wealth)
  • Having “Rolls Royce branding ‘ means looking successful and wealthy (prestige)
  • Having ‘anti lock brakes or ABS’, means you and your loved ones are safer when you’re out on the road (safety)

A handy trick to find the benefits, is to add the phrase “which means…” to the end of each feature. The benefits from the list above are comfort, prestige, greater wealth, safety and security, and by highlighting the benefits, you are giving prospects a reason to want what you have to offer. So having done this preparation lets get on with how to structure your writing.

Structure – AIDA 

Attention – the headline  

In basic terms, your headline should clearly promise a benefit the reader will gain. This could be the promise of valuable information, how your product can solve a problem or how you can enrich the reader’s life.

“On average, five times as many people read the headlines as read the body copy. It follows that, unless your headline sells your product, you have wasted 90 percent of your money.” – David Ogilvy

You might be a copywriting genius, and composed a sales letter that can sell ice to eskimos. But if you can’t pull the reader into your writing then your compelling copy will merely be a waste of words.

Whether on the cover of a magazine, in a sales letter or on a web page, headlines are the most important element of persuasive writing. It’s your headline’s job to hook readers with the promise of a tasty reward that will reel them into devouring your copy. So let’s be clear: your headline must be able to attract the reader’s interest if your writing is going to have a chance of selling your product

“If you can come up with a good headline, you are almost sure to have a good ad. But even the greatest writer can’t save an ad with a poor headline.” – John Caples

Interest = benefit + curiosity

People are, by nature, motivated by pursuing their own objectives in life and what can benefit them personally. So they’ll only read your copy if they think there’s something in it for them.

This means your headline needs to offer the promise of a benefit the reader will gain from reading what you have to say. People are also curious, and headlines should feed on people’s curiosity by hinting at the benefits your writing offers. So whether it’s the promise of valuable information, solving a problem or a full proof money making scheme, your headline needs to offer the promise of a benefit and build curiosity if you’re going to reel in readers.

You’ll need to write as many benefit and curiosity laden headlines as you can. Some copywriters will write out over 100 before they settle on one they’re happy to use to bait their sales letter.

After you’ve settled on a winner, you can use your second and third choices as subheads to break up your copy and highlight your argument’s key points. A few headline ideas to get you started. Here are a few tried and tested headline formulas you can adapt:

  • Make a bold promise with a guarantee e.g. ‘Play the Piano in Seven Days or Your Money Back’
  • Provoke curiosity with a question e.g. ‘Do You Make These Mistakes in English?’ (Maxwell Sackheim)
  • Explain clearly what benefit your offering e.g. ‘How to Win Friends and Influence People’ (Dale Carnegie)
  • Use a strong verb and a commanding tone of voice to suggest what action the reader can take e.g. ‘Win At Poker With These Strategies Used By The Pros’
  • Make a bold attention grabbing statement e.g. ‘Amazing Secret Discovered By One-Legged Golfer Adds 50 Yards To Your Drives, Eliminates Hooks And Slices…And Can Slash Up To 10 Strokes From Your Game Almost Overnight!’ (John Carlton)
  • Make a no frills news announcement e.g. ‘New Dimoxnyl Hair Tonic Grows Back Your Hair and Youthful Looks Overnight!’

Interest – the problem

After you’ve pulled the reader into your writing, you need to continue building interest in the promise you’ve already made.

This means stirring up the reader’s emotions, and poking at the pain you’ve offered to cure. Start by using emotive language to describe the reader’s problem. Create an image in the reader’s mind of the annoyances, inconveniences and shear pain the problem causes them in daily life.

You could open with stats and figures to show how the problem is more common than the reader might think. This can also help to create a sense of inclusion and to build the reader’s confidence that you know what you’re writing about. Describe how you or someone you know has had to cope with the problem . This will help to build a bond with them and a sense of empathy for their plight.

After you’ve finished stirring up the reader’s emotions, make a compelling promise of the tonic you have to sooth their pain and to entice their curiosity into reading further.

Desire – the solution

Now that you’ve created interest, you need to make good on your promises by explaining why your product is the answer to the reader’s problem. Work through the list of benefits you composed in earlier, Describe the emotional and logical rewards the reader can gain from your product.

Use the power of storytelling to describe how your product has improved someone’s life, such as saving them time, money or making them more successful. Heap benefit onto benefit, and provide logical reasons why they should buy what you’re selling, and why it’s superior to the other options available.

Explain the reasons why they need your product in a logical, rational sequence. And provide evidence, whenever possible, to add concrete to your claims. Remember that readers need logic to backup their emotional impulses.

When you’ve finished explaining all the benefits, provide the social proof of your offer with testimonials, stats and real world examples. And when you think your reader is wavering, throw a guarantee onto the pile to tip their  indecisiveness in your favour. A limited time offer or money back guarantee might seem like cutting your profits. But guarantees are a powerful way of removing the sense of risk the reader might have that’s stopping them clicking on ‘buy’. Whilst you might receive a few refund requests, the number of additional sales you can attract with a guarantee should keep the bean counter weighed in your favour.

Action – telling the reader what to do next

After you’ve built the reader’s excitement about the rewards to be gained if they just say ‘yes’, you need to clearly tell them exactly what to do next. Whether it’s entering their email address, calling your sales team or buying that instant, make sure you tell the reader what to do if they want to reap the benefits you’ve promised.

Finally, you could end your sales letter or web page with a postscript (abbreviated to P.S.), thought to be the most read part of a sales letter after the headline. You can use the postscript to restate your offer, remind the reader you’re on their side and to add an additional benefit if they respond today (such as a discount or free eBook).

So, that’s the AIDA principle used by professional copywriters to structure their sales letters and web pages. The way in which it uses psychology to appeal to people’s personal motives makes it a powerful tool indeed. So use it wisely and responsibly.

How to Write Sales Letters that Sell is a great book for further reading on the subject of writing sales letters. Please be aware that all the books I recommend are books I have read myself. Although this link is my affiliate link, meaning I get paid a commission if you click through and buy, I only feature great books, that I believe, you will find interesting and offer great value for money. If you do click through and buy something from Amazon, let me thank you for your support.

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