There’s a psychological tool that can be used in your marketing. It’s one that many marketers will use without integrity but when used correctly (meaning with integrity) it can help you increase your response rate to your high ticket offer.
It’s the Scarcity Principle.
But what exactly is it?
It’s a psychological concept that people tend to place higher value on opportunities that are limited or perceived to be in short supply. When something becomes less available, it creates a sense of urgency and exclusivity, leading individuals to desire and pursue it more intensely.
Another name for it is, FOMO. It’s the Fear Of Missing Out.
The goal is to cause your prospect to make immediate decisions, taking advantage of a limited-time offer, by levaraging fear of missing out on the exclusive opportunity.
Here are three practical reasons why you should consider using the scarcity principle in your high ticket offers.
- Create Urgency: Scarcity creates a sense of urgency among your prospects, compelling them to take action immediately. When members believe that your high ticket offer is limited, they fear missing out on a valuable opportunity, pushing them to make a decision faster.
- Increased Perceived Value: Scarcity enhances the perceived value of your high ticket offer. When something is rare or in short supply, it automatically becomes more desirable and exclusive. This perception can justify your high ticket offer.
- Boost in Conversions and Sales: Implementing scarcity, such as limited-time offers or limited number announcements, can significantly increase conversions and drive sales. The fear of losing out on a special opportunity often motivates members to act fast, resulting in a boost to your marketing campaign.
In practice, it means “only the next X-number-of-people who sign up will be able to get in on this opportunity.”
For example, you can say your Founding Member rate is $997 but only the first 10 people who sign up will get that rate. There’s a limited number of spots available.
Later, after you’ve started the promotion, you can message people that there are only 5 spots left or only 4 spots left or only 3.
You could also apply the scarcity principle with your bonuses, such as only allowing the next 10 people who sign up to get your bonuses.
One of my clients, Dr. Chris Griffin, is an expert in 3D Printing Dentistry. I suggested we add a “FREE 3D Printer for the first 10 Dentists to Sign Up” to his offer and immediately saw a boost in conversions.
This free 3D printer was actually a tool that would help them get the most out of his training. Afterall, how would they implement his course on how to 3D print dentures if they don’t have a 3D printer.
I do want to impress upon you the need for you to be a person of integrity whenever you apply scarcity. I really want you to honor what you say you’re going to do. If you’re opening 10 spots, and only the next 10 spots are going to get these bonuses, then I want you to honor that.
You might say, “Well Scott, what if that 11th person comes in and asks to sign up and get the bonuses?”
In that kind of case, I like to say:
“Hey, my apologies, but it looks like you’re the 11th person. Unfortunately, somebody always has to be the 11th person. Here’s what I want you to know. I’m a person of integrity. And I know that you would not want me to violate my integrity to honor those bonuses to you and not be truthful to everyone else in my audience. So instead, here’s what I would like to do. I can’t give you all those bonuses I mentioned there, but I could give you some of those bonuses. And I could throw in this gift over here as well. Now, again, I don’t want to violate my integrity. But what I’d like to do is create another special opportunity just for you. Okay?”
What I’m doing here is demonstrating my integrity.
I want you to also be a person of integrity. Your prospects will honor that.
That’s why I included the line, “I know you would not want me to violate my integrity to the rest of my audience.” That is what people are doing indirectly, though. When they come in after the offer has run out, yet ask you to waive the limit, they’re actually putting you in that spot of violating your integrity.
I always turn it around and say, “Hey, I know you’re not asking me to violate my integrity. Here’s what I would like to do instead…”
That’s very important. People respect and honor those who do what they say. And this will make them like you even more, because you’re not just trying some marketing gimmick or trick, but you’re actually acting as a person of integrity.
Afterward they say to themselves, “It looks like I lost out, but I appreciate the willingness to give me a different opportunity and a different sign-up bonus in response.”
Are you interested in taking next steps to multiply your coaching business? Here are three ways we can work together:
1. Grab a copy of “High-Ticket Coach.” It’s my brand new book on how to create, launch and sell your high-ticket membership offer. You’ll also get a ton of free resources and tools to help sell your current membership offers.
2. Get a FREE copy of Accelerate: How to Get Your Next 10, 100, 500 or Even 1,000 Members… Yes, you can get a free copy of my brand-new book! In it, you discover more on how to promote your membership, get more members and increase retention.
3. If you’d like to work directly with me and my team to help you create and sell a high ticket membership… If you’d like to work directly with me and my team to multiply your membership… just schedule a free strategy session. We’ll map out a strategy and then take a look to see if and how we may be able to grow your business. Go here to complete this brief survey and schedule your free call.
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