Warning, this post is me thinking out loud, online, in many ways, there is no clear solution at the end.
I've been thinking a lot lately about how you could give away personal development training and then charge only for the results when they occur. I put that idea out on Twitter as a question and got some interesting responses. I'm going to list the most common and my thoughts after them. Apparently I'm not the only one thinking about it either.
This is a generative process for me and ultimately one I'm also open to the idea that everyone on Twitter who responded is way smarter than me and could be right about their observations and objections and questions. I'm pretty confident that Seth doesn't give away his coaching, consulting, or speaking all the time, I think his point is more about sharing the information and ideas freely via blogs, ebooks, videos etc.
PeterPalatnik:
@davelakhani if you give EVERYTHING upfront, then you have nothing left to give. How about giving your best problem solver upfront?
I got a lot of responses like this one. And, I think that is the point, you give everything they need to create massive change in one area of their life, the full program and then charge them when they see the results. If your technology is that powerful they should be changed fundamentally by the time they leave. Another option is to have them decide if they are transformed or not at the end of your event. If so they pay, if not, then you set a series of dates of measurements with actionable, measurable items they'll accomplish. IF they do the steps and transform you get paid. If they don't do the steps you get paid. If they do the steps and don't transform, you lose.
I started thinking about this when I was working with a client who spent tens of thousands of dollars to go through one well known personal development leader's program and now has nearly no money or success to show for it. My client is nearly broke and looking for a way to save the business because they are out of money, a huge sum of which went to the guru on the basis of miraculous promises.
jasonmoffatt:
@davelakhani I'd say people wouldn't take the value or change all that seriously because they got it 4 free. Sad, but usually true.
Another very common response. And, I actually agree with this one. People don't value what they don't pay for. So the question is how do you cause them to value what they aren't paying for? I think the answer is that they have to have something at risk first and have an agreement in place that when they achieve X you get the money. It stays in escrow until then. Again, you must have measurable criteria in place. That way, when people come to the event they know that they are paying for something at some point unless it just doesn't work. The risk is removed up front. I think the real value of this approach is that it brings a lot of the skeptics in, which begs the question, "can you convert the skeptics?" Not sure but testable.
honeyparker:
@davelakhani You have me thinking. Lots of concerns. 1st one; they have to act on your advice. Many nod but don't act.
I agree with this thought as well. They must act. It is up to the leader to set clear criteria, milestones and deadlines. There has to be a commitment to take action based on a contractual agreement backed by money in escrow to make it work. You'd likely still collect most of the money because most people won't act long term.
All of which got me thinking, we are still worrying about getting paid for the first life changing event. And here is where I go to today . . .
A lot of people do a free event and sell something at the end, only the very best run programs make a lot of money that way. But that is part of the right model I think. Ultimately, the event is free, you create massive, documented change and then sell them additional change on a pay for performance basis. In other words future programs are free if they don't get the same level of change. Because here is the thing. If you can create change fast, then do it and have them agree that it occurred before they leave and get paid.
At the end of the day, I think it will be the more expensive second and third sale where you'll make the most money because you can charge more for something when people have already been amazed by the results.
Or, maybe I'm still not seeing this clearly and some versions of this model already exist that are working. I'm still working it out in my head and will test several applications. It may not be tenable. I'll let you know how it works out.
I'd like to see less of what I'm seeing with my client right now and more real success that can be measurably attributed to a particular change methodology.
I'd be thrilled to hear your take and ideas on how it might work.
