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Jan. 26, 2022

The 80/20 Power Curve

Are you getting ideas yet about how you can use the 80/20 rule in your own life? A few years ago, I read the book the 80/20 Principle, The Secret To Achieving More With Less by Richard Cook. And it was right around the time that I read the FourHourWorkweek by Tim Ferriss, where he talked about the 80/20 rule as well. And the most recent book I read on this, which is called 80/20 Sales And Marketing by Perry Marshall. I had a love/ hate relationship with the Sales and Marketing Book. It wasn't a grand slam for me because there wasn't as much about the 80/20 rule as I had hoped for yet there are golden nuggets all throughout this book. In many ways, it goes more into the sales process towards Google ads and scaling your business, which is great if you want that. 



But something that I came away with from this book that was incredibly valuable was that we limit ourselves in business by the options that we offer and that we give to our clients. Now those are current or even potential clients. And what was obvious was that a lot of us, including myself, we're not stretching ourselves to create things in different price points for different potential clients. So many of you know, I have a community based around Total Life Freedom. So this next example could be used for me. And it has been, but it could be used for you in the different tiers that you offer for different types of clients. 



So if you have an offer like we do with a mastermind that's $500 a month, but even when it's was a lower price, it was the only thing that I had offered to start. And there's a benefit for that and honing in on your craft. And a lot of times when we're figuring things out, we're perfecting it. We're nuancing it to make it ideal for our clients and for ourselves. But there does come a point when it becomes optimized to start thinking and acting on the offers that you can expand upon. I'll use TLF as a hypothetical because this is a universal the way that you could expand out your offerings. Doing this as not about bleeding everything out, money-wise from potential clients, but all potential clients are not equal and they're not all looking for the same thing. So feel free to adjust this to scale to what you do. 



But in my example, if there's a $500 a month mastermind, it's the only thing you offer within that spear and the people that follow you and are interested in what you do, there are going to be people by percentages that would be interested in paying $2,500 a month for private coaching going even higher. There might be people, maybe just a few, but there will be some people in that range that might be willing to spend $10,000 for a weekend where they get your devoted time and you break down their business and do in-depth coaching strategy and coaching. Now it might be one out of a thousand or five thousand, but it's an option that you might be leaving out. So you've got that really high end offer. 



So now you've got that $10,000 offer for a very few people that can pay for it, but those who really want that they might not want ongoing coaching, but you can offer that as well for a group of people at $2,500. Both of those might not want a weekly or twice a month mastermind, but they're going to be more people that want that at $500 a month. And you could break that down further. We've got a community that's not as connected to me personally, but it has a great community and access to me on calls and in the group. So there's other price points. You could easily do that for $50, $100, $150 or $250


And there also will be a segment that are willing to pay $20 a month or $25 a month for the content you create, but no access to a community. And when you start looking at this chart, you start seeing all these other opportunities that come out that you might not have realized without utilizing your time and what you do with the 80/20 rule. You add all those things together and you'll get the right people in the right place at the right price. 


And none of them have to take up an amazing amount of time for you yet, you found a way to offer what people want and they're willing to pay for in the right spot. You can add in many other things if you have that following. You can have live events and you can have products. So with the same amount of time, maybe just a little bit more, you're able to have multiple offers at multiple price points that satisfies a wider range of people that need what you do while utilizing the 80/20 rule, and almost splitting it up to where you get to utilize 80/ 20 in four or five different ways. 



So lets use the model of the community $150 a month. I don't mean for this to sound simple because it's not. Let’s say you can get a hundred people are interested in working with you. But those people don't have the time to put into a $500 mastermind or $2,500 coaching package or a $10,000 private coaching. But if you get a hundred people to pay you $150 a month, that's an additional $15,000 a month that you could potentially add on by understanding the nuances of 80/20. Now it goes on down the line because if you have content from that community, you could turn that into something paid. 



Like we said, that lower priced content-based membership, or even something like this- a podcast where you can take that content and put it out for free to attract new listeners- you build trust with people who don't know you. People who eventually might want access to you more within the programs that you create. And do you see how you can do that? And by not reinventing the wheel every time, you can bleed that down to where that content doesn't take much more time to do. Yet you’ve created different income streams as well as free content for new people who don't know who you are yet. Now this can get really deep in the weeds. It might feel advanced if you're not there yet, but what I want to show you is that we limit our options. And when we put so much effort into one thing and not understand that we can break those off into other higher and lower priced options that don't necessarily require very much more time. 



You expand the audience- you expand your audience and what they can participate in because the person paying $20 cannot pay 2,500. And the person paying 10,000 will not want to be a part of the $20 or the $150 offer. And when you can take 20% of what you do, that turns into 80% of revenue, you can split that off into 2, 4, 6 different options that all do the same thing. You've not only utilized, but you've multiplied the 80/20 rule. That is how the rich get richer. That's how they create more time. And that's how they have more options to do more things in their lives. So this idea came from this book by Perry Marshall and coined what we just talked about as the 80/20 Power Curve. 



So as you hear this, what is an additional offer that you can give that you might already be doing that can serve a client at a different price point in a different way, without it taking much more of your time? I'd love for you to think about this one. 


And speaking of communities, masterminds, Total Life Freedom. If you want to have these discussions with real entrepreneurs who get what you're going through, who are building businesses, like what you're doing, like what you want to do. If you want an intimate community, that's generous and cares where we're careful about who we let in and we're in it together to see each other succeed. I'd love for you to consider the Total Life Freedom Community. It is such an amazing group of people. It is the group that I always wanted, but I couldn't find. So I created it. 



I get a lot of questions about it. If you want to learn more, go to totallifefreedom.com, check it out. If you're interested, fill out the application, I'd be happy to have a talk with you about it and see if we're a good fit!