670: (Solo) Why Great Products Lose to Better Offers - and How to Fix Yours

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Head to omnisand.com/founder and that's founder without the e to get started. All right, now let's jump in the show. Hey guys, Nathan here. Welcome back to another episode of the founder to founder solo podcast where I share everything that I am learning in the trenches, building businesses for the past decades, speaking to so many hundreds and hundreds of successful founders. So I don't tell you about something that I keep seeing again and again and again. I'd be doing you an absolute disservice, especially as any confounder, if I didn't share this with you. It's not talked about enough. Here are the stories. Learn the proven methods and accelerate your growth and future through entrepreneurship. Welcome to the founder podcast with Nathan Chan. Alex Amozzi talks about, you know, $100 million offers and it's, it's so true. Is it one of those things that I wish someone had told me earlier in my journey and I've spoken to so many founders who generally have a great product. The quality is there. The branding is sold. The ads are running yet they can't scale the conversions and not where they need to be. And honestly, every, every, every single time we dig into it and this goes for a lot of our members inside founder operators every single time it is no product problem. It's an economics and offer problem. It's not the ads. It's not the final. It's not the content. It's not the creative. It's the offer. So here's what most founders get wrong. They spend months on the product. They nail packaging quality price point and then they start running ads and you might get some success, right? But then oh, my God, every time like the product and the offer can't scale and it's because the economics don't match. So the offer is the complete package of what someone gets when they buy from you, how it's framed, what it includes, making sure you've got a really high, nice, juicy AOV. So we have enough margin to buy and scale, right? The brands that are winning have cracked this, the brands that I see that I speak to that are spending $100,000 a day like our friends, I am eight, like our friends at Manscaped. The list goes on. These are some recent shows. You can see them on this podcast. They have cracked the offer, right? Like you look at what Danny Jung has done with IMA. It's one of the most talked about supplement brands right now in the market. And on paper, it's a supplement. It's a powder you mix into water every morning. There are thousands, tens of thousands of supplements. The market is completely saturated, but the offer is not just the supplement. It's 92 clinically dozed ingredients in a single drink backed by scientists from some of the most respected medical institutions in the world co-founded by David Beckham. They've got this incredible bundle. The AOV is like over $150. They've got a subscription that simplifies your morning routine. Every element is designed to make the yes feel easy and the value feel undeniable. And they didn't stumble into that. That has been strategically engineered from the ground up. Every part is so deliberate. And the founders that are doing exceptionally well, they just get this. So this is what an intentionally built off it looks like. And this is something that one of our founders is one of our instructors on the Founder Plus platform, Jordan Monard, you know, he speaks to this really well. We had Jordan on the podcast. He's the co-founder of instant hydration. He's like a super respected operator in the D to C space. He's managed over 3 million and had spent building his own brand. And the question isn't, what are you selling? It's what's the most compelling version of what you're selling. Real quick, before we jump in, I want to shout out one of our sponsors, zero. I've used zero from day one of founder 13 years now. And it's still how we run the business today. It's cloud accounting software built for founders exactly like us. And it automates all the admin that I used to do when I first started founder. Invoicing, chasing payments, expenses, all the accounting. It really helped me get paid faster and keep an eye on cash flow. So founder listeners get a crazy 95% off for the first six months. Just sign up through our form at founder.com/zero, terms and conditions apply. Remember, when you support our sponsors, you are supporting the show. All right, now let's jump back in. What makes someone feel like they'd be crazy not to buy? And that might be how you bundle your product. The guarantee you offer, the framing, the unique mechanism, the unexpected extra that just nudges people to consider actually buying. I talked about unique mechanisms before. This is part of your offer as well. But most founders spend 90% of their time on the product and no time on the offer. And they wonder why their conversion rate is flat. And their ads are not performing and they can't scale. So this is something that we spend so much time with our members on in founder operators. And so many members that we speak to prospective members. They say, guys, can you help me? My ads aren't scaling. And we see in their ARVs, like $40, right? You need an epic bundle. You need something that will increase your ARV. I cannot stress this enough. Let me give you an example. One of our members, Emma, you know, she joined founder operators. She runs an incredible brand as called Sisu. It's a magnesium spray and it is amazing. It helps people sleep better. And you know, we three hexed her ARV and she didn't even need more traffic to her store. We three hex the size of her brand. Isn't that crazy? But just massively juicing up her offer. Imagine how much more profit she makes from that. So guys, I want you to take one thing away. If you're going to focus on one thing your ads aren't working right now. Your marketing is not working right now. Start with the outcome, not the product. What does your customer actually want to achieve? I was speaking to another founder that's looking to sign up to founder operators. And she sells seats. And I'm like, oh, okay. And she's telling me about their survival kits. That they sell for $150, $180. I'm like, oh my God, that's the thing that's going to make ads work. Start with the transformation, right? A survival kit, you know, it's going really, really well during these times, right? Not just the features of what you're selling. Then think about what makes it risk free? A strong guarantee, clear returns policy, social proof, reducing friction. How can you bundle things in so you can increase the PZ value? We want to make your AOV at least at least $60 USD plus at least, but the higher the better, right? And have a dedicated landing page that speaks that offer and really sells using direct response marketing. So guys, this is your takeaway for today. You can have the best product in the market and still lose to a competitor with a better offer because you need to get your unit economics dialed. You need to get your offer right because what people are buying is not just a product. They're buying the whole package, the certainty. The value, the feeling that this is the obvious choice. So when you get your offer right, everything else gets easier. I can't stress this enough. When I sit down with Nick Shack, you guys know who he is. He's our lead instructor at founder operators. I've had so many convoes with him and he always says to me, man, the times you've been able to spend like $150,000, $200,000 a day, it's when the founders crack the offer and you've got to crack it. It is such a needle mover. Getting the right offer can change the trajectory of your business. Obviously, we would love to help you do that. We'd love to help support you. Join us at founder operators, go to founder.com/operators. If you take anything away, get the offer right and everything gets easier. I hope this episode has got you thinking about that. And as always, guys, we'd love to hear your feedback. If you could rate and review this podcast on Spotify, Apple podcasts, or wherever you're listening would mean the absolute world. We work overtime to give you the best content and insights from the greatest founders of our generation. I appreciate you guys. I'll see you in the next one.