I recently read a story of a world class violinist who is paid millions to play at concerts. One day a big company decided to conduct a human behavioral test and see what would happen if he played the violin at a subway station after work, just by himself, and instead of the high price ticket he usually charged for a concert, this show would be free for those that walked by while he played the violin. What was discovered from this experiment was that this world class violinist who charged top dollar for his shows was now being completely going unnoticed and ignored by the general public. People just passed him and no one paid attention to him. One lady did recognize him and asked him if he would return to play at the same spot next week, she wanted to bring her friends to listen in. Everyone else just did not see any value in stopping, listening and enjoying his violin concerto at the subway station.
Now, my question is… Do you think more people would have stopped and listened if they knew how much he charged per show, which is upwards of hundreds of dollars, and even thousands for premium seats?
The perceived value of him playing at a subway station was very low, but compare that to a sold out concert, a pricey high ticket event.
What is the difference?
He is still playing the same violin and in the same top art form he executes, yet the perception of how much money, attention, and energy he received were very different.
Perceived value in online sales and advertising is not everything… but I would say it’s pretty darn powerful, and close to everything. I say this because if you look at the internet where so much information and knowledge is freely available and over abundant… why would someone want to spend money with your business instead of going to a cheaper or even free source?
It all comes down to how much more value, and perceived value, you are able to deliver to the customer.
Are your products or services premium, and at the top of their game, or are your products/services just another bland source?
In doing business with you, does your customer save a significant amount of time and money?
Does your customer gain more time or money?
Does your customer have a fantastic overall experience by doing business with you?
Is your customer able to quell a pain or urgency as soon as possible because of your product?
What are some of the best ways that you can implement more perceived value, and tangible value into your business?
The more value you stack, the more perceived value you will get from the end user. I say this because people are often afraid to give out “too much value” for free because they wonder “If I’m giving some of my best info for free, why would they ever pay me?”
If you get into the mind of your customer you will realize that the more they become familiar with your work/product, and your persona, the more you will come to mind when they are looking to spend or invest money in a product or service within your niche. This is key.
Often times I have viewed so many videos on Youtube for free in a certain niche that after a while, I began to gain more trust and likability towards the presenter.
Soon after, I did not feel such strong resistance towards spending money and buying his products. I grew accustom to learning from that person.
I encourage you to put out some of your best work and give it away for free. Ideally this would be done through a free “ethical bribe” ( free report, video, audio, etc.) or white paper, in which a potential customer signs up to your list in order to instantly download this information. Let that information be premium, and sway that person who signed up to your list, so that when you begin your email sequence, that person will be a lot more interested in hearing what you have to say. Thus building a relationship and what they call in the business world “lead nurturing.”
Put out some of your best content via various mediums such as pdf’s, videos, mp3’s, info graphics, apps, software trials, and any other form that is applicable to your business. Screen recording videos work quite well and they are a lot of perceived value.
Don’t feel that you are getting ripped off by giving something away for free. This is simply a way to build up your value, and show that you are successful enough that you are willing to share some of your abundance with fellow mates. Again, this will give them a chance to get quite familiar with your work, your persona, and also get a feel of a roadmap of where you can take them if they stick with you.
Every niche is different but at the core of it, it all comes down to how much value you deliver to your customers. Perceived value and tangible value needs to be strongly present right from the get go as you over deliver. This concept by itself will make your business flourish under the right circumstances. Always be perceived by others to have an abundance of great value. So much that you don’t mind sharing it with those that you connect with on a personal and business level.