Turn Viewers into Customers with the MVO Method

Now that you have mastered the process of developing products and services that your audience actually wants to buy. Now, you need a compelling offer that makes people want to pull out their credit cards and make the purchase. So, let’s talk about using a Minimal Viable Offer to align your offer with your product and ensure people actually buy it (and feel like they would be stupid not to buy it!).

Why a Minimal Viable Offer?

Have you ever spent a lot of time creating something, only to be met with silence when you try to sell it? I’ve seen it countless times with thousands of creators I’ve worked with. They think their product should sell based on its merit alone, but quickly realize that’s not the case. You need a compelling offer to complement your product or service.

Imagine creating an amazing YouTube video, but pairing it with a very boring thumbnail and title—no one clicks on it, right? The same goes for your products or services. If your offer isn’t compelling enough, no one will buy it. I’ve sold courses and services over the past decade, and heard multiple times, “Tim, you could easily charge twice as much for this.” But when I ask, “Would you have bought it if I had charged twice as much?” the answer is often no.

Testing the Waters

To illustrate this point, let’s talk about my experience with creating eBooks. Back in 2013, I wanted to write an eBook called “30 Days to a Better YouTube Channel.” But before investing time into writing it, I tested the waters with a crowdfunding campaign. I set a goal of raising $10,000 to $20,000 to validate the idea. The campaign succeeded, and I wrote the book. But even after the initial sale, I continuously tweaked the landing page by adjusting headlines, testimonials, and other elements based on feedback.

The Role of Pricing in Your Offer

Pricing is a crucial part of your offer. It often shapes the perception of your product’s value. For instance, when I spoke to the former president of DreamWorks and Paramount Pictures, they expected my $15,000 service to be worth $150,000. My lower price actually made my offer seem less credible to them. So, how do you determine the right price? Start with at least a 50% profit margin. To do this, you must know your numbers. Knowing your numbers is critical for ensuring that your business stays sustainable and profitable.

Breaking Down the Costs

Here’s an example from our cohort coaching program, Video Labs:

• Revenue: $39,940 from 20 creators (each paying $1,997).
• Costs: $16,958.20, which covers Stripe fees, administration, strategists, personal assistants, video editors, and training sessions.

This structure resulted in a profit of $22,981.80, equating to a 58% profit margin. Knowing these numbers helped ensure that our program was profitable. If I didn't know my numbers, I'd never know how to price it in a way that ensured it would be able to help our business grow, not hinder it.

Having a healthy profit margin allows for flexibility. Different costs might arise with each session, like extra attention for a particular creator or giving away free spots. Flexibility ensures you can handle these fluctuations without compromising your profit.

If you’re not a numbers person, don’t worry. (I'm not either!) You don’t have to do this alone. You can hire someone knowledgeable, like a CPA, to help with the financial side of things. They can create the spreadsheets you need to understand your costs and profit margins.

Practical Assignment: Know Your Numbers

As a practical step, put together the cost structure for at least one of your products or services. Include everything—time, resources, transaction fees, and taxes. This will give you a clear picture of your profit margin and help you make informed decisions about pricing and offers.

Final Thoughts

Remember, the key to a successful business is not just creating great products but making compelling offers that your audience can’t resist. Pricing is a big part of that, so don’t underestimate its power.

In our next few episodes, we’ll dive deeper into pricing strategies and how to refine your offer even further. Meanwhile, feel free to reach out with any questions; I’d love to hear from you. Until next time, keep creating and selling!

Tim Schmoyer