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I want to talk about someone that I discovered on Instagram. His name is Dan Lok.
Really interesting fellow. He’s a business person, and he talks about different things that you can learn or do in your business and in your life to make more money, of get you to where you want to be.
He’s controversial. Some people love him, some people hate him. I like his business advice in a lot of cases.
Dan Lok’s Sales Advice
One piece of advice that he provided was when you offer someone a product or service, don’t just offer them one item. Offer them multiple items. Now his theory is if you give someone one thing as far as the proposal and he uses a box as an example, if you try to sell them a box, then their decision is yes or no. Do I want the box?
But if you offer them two boxes and say here’s box one and here’s a bigger box too, you’ve changed it from a yes, no decision to a “which box do I want”. So when I saw this video on Instagram, right away I shared with my team and I said “Hey, we need to start doing this now.”
Changing Our Sales Approach
At the time and we were offering just one solution so we would have looked at everything that a prospective client was doing online, and we came up with a bunch of services that we thought they needed in order to help their business grow. Then we would say, “Hey, here’s a whole bunch of services and it’s going to cost this much money.”
And it was a yes, no decision for them. They either took it or they didn’t. We didn’t give him a lot of options intentionally.
Once we saw this video from Dan Lok, what we decided to do is to add another plan. So we would still come up with our assessment but then we would create another plan. Actually at first, we created a smaller plan cause a lot of times what we got from customers was, “Hey, this looks great but I can’t afford it. What can I get for my budget?”
So we created a second version of the plan where we removed some services and we decreased the price. Once we did that, we noticed that our conversion rate went up.
Now I don’t have actual data, but intuitively we knew that we were closing more deals because of that change. So once we realize that, and we realized that the teachings of Dan Lok actually worked for us, we decided to take it one step further and we offered three plans.
Our Approach to Multiple Plans
So we would go through and do a review of all of their digital marketing and we would come up with our recommendations and what they need, right? So the list of services and the quantities, and we would price it out. And we still do this to this day.
So we’ll price it out and then we’ll create two variations of that. So variation one is a lesser plan, just like I explained before, variation three. The third plan is one that’s much higher, so you basically have good, better, best, and we actually called it that at first. Now, we would call it something different like fundamentals, engagement, and crushing it.
We give them three plans in three columns and what we found was almost always the conversation went like this. “Can we take a little bit from this column and a little bit from that calm and mix it together and create our own plan?”
Well guess what? Our answer was absolutely. Yeah. No matter what, you want to make sure that you solve their problem and budget is always part of the problem, right? They obviously cannot afford the crushing it plan hardly ever, but they know that they need some parts of that plan.
Finding Your Balance Point
What you do is you give them a lot of options. You don’t want to overwhelm them so we make it pretty simple, but we do give them the three columns, and we tell them roughly how much they’re spending in different areas.
They can mix and match, and our conversion rate has gone through the roof. It has made a huge difference. Awesome move.
One last note, when you’re on social media and you’re getting a lot of suggestions from people about what you can do in your business, take it all with a grain of salt, but when you see something that makes sense, just don’t worry about who said it. If it’s good business advice, try it.