Competition DOWN, Opportunities UP
Last week I spent a few hours with an M&A firm in Nashville.
Nothing in particular (no, I’m not selling any of my portfolio). But the founder of the firm had an interesting saying — he called it “Purple Ocean.”
If you’re familiar with ”Blue Ocean Strategy,” you understand how competition makes markets bloody.
I felt this in 2019, 2020, and 2021.
Entire empires were built on the back of one of my programs. Two things happened:
- People realized how profitable a good offer could be
- People were lazy (was easier for them to copy than create)
It worked for them… for a bit.
Now they’re mostly quiet. Because the world has changed…
Access to cash & capital is going down. But if you understand how markets cycle, this is a good thing and a good opportunity.
I tweeted over the weekend , “It’s about to get easier to make money.”
People seemed confused by that…
So let me explain: the harder it is to survive, the easier it is to distinguish yourself. It’s hard to distinguish yourself when everyone is winning.
In 2020, if you put an ad on the internet, and your pixel was on your conversion page — you could run ads profitably. That made people lazy.
Then the third party data was removed, and the lazy advertisers were exposed.
The same is true in every area of your life & business. If it’s too easy, it’s too crowded. We are now headed into bluer waters, and if you’re good enough to swim – you will win.
A few points about surviving and thriving in economic turmoil:
Lean into, not away from
Here’s a simple framework: remember riding a bicycle?
When you are a kid, you’re instinct is to turn the handlebars in the opposite direction when you’re falling. This makes you fall faster.
You have to learn to lean “into” the fall, which is counterintuitive.
People are worried right now about the rates? What if the rates stay high forever?
People are worried right now that they have less cash on hand? What if it gets worse?
People are worried right now about the political environment? What if it gets even tighter?
You need to adopt a longer term lens with your current offers… if they are good for people right now, they’ll be good for people if things don’t change.
Fractionalize your prices
The gurus are stupid.
The only thing they know how to say is “raise your prices.” But raising your prices right now is probably not a genius move. Lowering them isn’t smart, either.
You want to raise them and lower them… this can only be done by creating MORE options for people. When money gets tight, the middle class fractures into multiple layers of ‘middle’ class.
The same happens at the top, and at the bottom.
What I’ve done inside my companies is followed that natural flow — by creating more options for people to choose from. Take WealthyConsultant.com for example…
We have products that are $50 or $70.
We have products that are $200 – $300.
We have products that are $20,000.
There are many options to choose from, so that everyone can find something to move their life/business forward.
You don’t want to be stuck on any one source or platform, so why would you want to be stuck on one product or price tier?
In May, I’m going to be talking about the 3 different kinds of information/education businesses and how you can select one “model” and go all in. All 3 are great, but you can’t be wishy washy.
People value consistency.
If you want more insights, you can get them in one of our free Facebook groups.
That’s all for now!