Marketing Article

Why Most Online Businesses Miss This Critical Step

Did you know 90% of online businesses fail within a year?* 

If you’re not making sales, it doesn’t matter how many likes and followers you have.

I know how demoralizing this can be. I was posting every single day, sometimes twice a day. I was pouring time and energy into creating juicy content. And I couldn’t pay rent.

You know your offer is worth twice the price. 

And yet, those who need it the most are saying “not right now” or “I’ll think about it.” Which is just a polite way to say “No thank you.”

It’s easy to lose confidence. And wonder if you have what it takes.

Here’s what most entrepreneurs don’t know:
Every single decision we make is emotional. Not logical. No one reaches for their wallet until they’re emotionally involved.

As humans, we think we make decisions based on logic and reason. 

We don’t.

Our emotions drive us to buy. Then we use logic and smart-sounding reasons to justify the purchase.

In our culture, money=freedom. 

Stuck in a job you hate? Get enough money together and you can walk away. 

Want to spend a month in the French Riviera? With plenty of cash, you can book your tickets right now.

This is why there’s always resistance to spending. We don’t like to part with our money.

How do you overcome that?

 

Surprising fact: Emphasizing a low price can actually hurt your sales.

Let’s hop on a plane to Chatham, Massachusetts. It’s a gorgeous seaside playground for those who can afford it.

A luxurious jewelry store sits on a boardwalk by the ocean. Customers are allowed to bring in their dogs, and browse as long as they want. Rachel, the owner, offers complimentary coffee, tea, and wine.

Rachel specializes in unique, one-of-a-kind pieces that you can’t find anywhere else. Her customers are financially comfortable, and don’t mind paying more for something no one else can have. (This is the Law of Exclusivity. More on this later.)

But there was some emerald jewelry that wasn’t selling. People would pick it up, admire it, and then put it back down.

It was taking up valuable space and Rachel just wanted to get rid of it. So she told her employee to ½ the prices of the dazzling green jewels.

But in her haste to compose the email, Rachel actually typed 2/1 instead of ½.

The employee doubled the prices.

And in two days, all the emerald jewelry had been sold.

For twice what it was worth.

What happened?

 

A high price skyrockets value in the mind of the consumer. Rachel’s customers saw shimmering emerald necklaces, earrings and bracelets for much more than they expected to pay.

Without even realizing it, they assumed it must be special, exclusive and rare.

They couldn’t wait to whip out their credit cards to get their hands on these unique works of art.

If you saw a brand new Ferrari for sale for $25,000, what would you think?

There must be something wrong with it…

There’s no way I would buy that, it’s probably a lemon…

Regardless of what you’re charging, you need to know your audience. (How? Keep reading.)

If Rachel had taken a good hard look at her customers’ values and desires, she might have realized that low prices were putting them off.

Most people skip this step. 

I see this mistake all the time. People dive straight into “Check out this fantastic product/service!” without getting to know their audience first.

How do you do that?

  • Look at the people who are engaging with your posts. These are your people. Check out their profiles.
  • Send them a DM to thank them for commenting, and ask what resonated with them. Not only does this get you insight on what they want and need, you’ll make them feel seen. This is how you build trust.
  • Create a poll (great for engagement). 
  • Join Facebook groups filled with people who need what you’re selling. Start conversations. People are remarkably candid in these groups. 
  • Read reviews of your competitors. Find out what people are saying. What they really want. What they can’t live without.

 

Just as important: what do they hate? What are their deal breakers? Which brand will they never support, no matter what?

Who is your audience? Don’t just think age, race, gender, and income. What drives them? What keeps them going? What’s their worst nightmare? What do they love? What will they avoid no matter what? What is the hill they will die on? 

You have to get crystal clear on that.

I can show you how.

The trick is to engage the right emotion. The one that will get people hungry for what you’re selling. 

What’s the best way to do this on social media? What’s the surefire way to stop them in their tracks and make them pay attention?

Reels. 

Again and again, reels have outperformed posts and stories.

When you get it right, your audience will never forget you. They’ll seek you out.

Here’s how it works. 

There are 8 time-tested laws of sales, based on simple human needs.

  • 1. The Law of the Crowd

    We’re social creatures. We look at what others are doing to guide our decisions. It’s much easier to try what worked for someone else than to research every single product or service out there. No one has time for that.

    Do you have a client who absolutely loves what you do? Who sent an email or a DM to say thank you?

    Ask them for a 30-second video testimonial.

    Those who are on the fence about buying will stop scrolling and pay attention. Hearing from someone else that your product or service really worked? That’s powerful.

    It’s often what gets someone off the fence and ready to buy.

  • 2. The Law of Exclusivity

    Remember Rachel’s jewelry shop? When people see beautiful emerald jewelry they can’t get anywhere else, and a high price tag assures them of its quality, they can’t wait to make it their own.

    It makes them feel like they’re part of a special, select group. Wearing this beautiful jewelry makes them feel classy and sophisticated.

    In London, there’s a nightclub that famously allows only the most attractive people past the velvet rope.

    They’re filled to capacity every weekend.

    And of course, everyone who gets in wants their friends to know. So they take selfies and post on social media.

    This nightclub doesn’t spend a single dollar on promotion. Their customers do it for free.

    When you get this right, your product or service will sell itself.

 

  • 3. The Law of Scarcity

    Ever go to one of those hotel booking sites? And see that there are only 2 rooms left for your selected dates?

    Before you know it, you’re clicking on “Book Now” to avoid disappointment.

    This is the law of scarcity at work. It can turn a “maybe” into “I need this now!”

    It’s easy to use scarcity when making promotional reels.

    “Spots are filling up fast!”

    Last year tickets sold out in one hour.”

    Limited Edition- only 4 left!”

    The less there is of something, the more we want it.

 

  • 4. The Law of Freebies

    People LOVE free stuff. And when you give something away without expecting anything in return, the recipient will see you as generous and trustworthy.

    But here’s the catch. It has to be valuable.

    No one wants “$5 off when you spend $100!” It’s too little to bother with.

    If you’re selling a course, offer a free masterclass outlining the basics. Show them just enough to make them want more.

    This is a great way to establish your reputation as an expert– and start building a relationship. It helps your audience get to know you.
    There are more ways to offer freebies than you can imagine. Want to know what they look like? Keep reading.

 

  • 5. The Law of Authority

    Ever feel overwhelmed by all the choices you have to make? Yes, me too.

    You can’t be a fitness expert, an electrician, a plumber, a doctor, a lawyer, and an accountant.

    And yet, we all have to make decisions about our health and fitness, our homes, and what to do at tax time.

    So what do we do? We turn to experts for help.

    Reels are a great way to show you’re an expert in your field. Show off your credentials, talk about how many people you have helped, and how many years you’ve been doing this. If you can prove that you know what you’re talking about, people will turn to you for advice again and again.

    Reach out to other experts in your niche and collaborate on a reel. Don’t be afraid to include them in your video- you may gain a whole new audience!

    You can also use your freebie to establish authority, by including a short bio with your masterclass or e-book.

 

  • 6. The Law of Proof

    Show them, don’t tell them.

    Your audience doesn’t want a list of facts. If you’re selling a product, show them exactly how it works. A demonstration video is ideal. Show how easy it is to use and how effective it is. It lets your audience imagine themselves using the product and feeling the difference.

    If you offer a service, walk them through exactly how it will improve their lives. Be as specific as possible. Get them dreaming of the life they really want.

 

  • 7. The Law of Fear

    We place far more importance on avoiding pain than gaining pleasure.

    We’re terrified of looking like a fool, missing out, or falling behind.

    Talk about what happens if they DON’T buy from you.

    Selling a dating app? Talk about what happens if they never meet the right person.

    A fitness and nutrition course? Talk about the result of poor eating habits. Point out the lethargy that will drag them down and keep them from enjoying life.

    Training for their dream job? Remind them how miserable it is to stay stuck in a job they hate. Their thoughts about their miserable boss will do the heavy lifting for you.

 

  • 8. The Law of Novelty

    It’s exciting to be one of the first to try something new.

    It makes us feel special and important.

    This is why people stand in line for hours to buy the latest iPhone. Even though they could walk into the store next week and buy the exact same one.

    They know very well that it’s not rational. They don’t care.

    They want the dopamine rush of being one of the first. It makes them feel like a trailblazer who’s ahead of the curve.

 

How can you make these 8 laws work for your business? And attract customers who keep coming back and can’t wait to tell their friends about you?

For a limited time, I’m offering an exclusive 28-day workshop on making effective reels that hook attention, stop the scroll, and get customers off the fence and ready to buy.

We’ll talk about how to leverage the laws of The Crowd, Exclusivity, Scarcity, Freebies, Authority, Proof, Fear, and Novelty. You’ll walk away with a step-by-step process for creating game-changing reels that show your audience why they need you.

But you don’t need ANY prior experience with making or editing videos. We’re starting from ground zero. This is for absolute beginners.

I’ll provide PDFs with all the details. 

So you won’t have to frantically take notes. I want you to be present and engaged.

Plus, when you complete the course, you get a special gift as a thank you from me.

Your reels will stop the scroll every time.

We’ll go over the basics of sales, how to build a personal brand unique to you, and how to design your profile for maximum visibility. You’ll learn to nurture your leads and build authority so you become the go-to expert in your niche.  Also, we’ll reveal the #1 conversion killer. (Hint: it isn’t the price.)

We’ll walk you through how to make a reel, what video editing apps to use, what kind of music to add (and how to do it). We’ll talk about what kind of images stop scrollers in their tracks- and which ones to avoid. And  the most common mistake most people make with reels.

You’ll learn to sell without being pushy or salesy.

Instagram has made lots of changes, and those who don’t keep up will be left behind.

I’ll show you the strategies and techniques that are working now. Because what worked in 2024 isn’t cutting it anymore. Consumers are savvier than ever, and they can spot “copy and paste” content a mile away.

Your audience needs to feel seen, understood, and inspired.

Ready to level up your skills and watch your sales soar?

Enroll this week and your price is $297.

On Monday, the price goes up to $397.

I’ve helped hundreds of leaders recharge their reels, grow their businesses, and start living life on their own terms.

We start on Monday, February 15. I can’t wait to see you there.

CTA: Yes, Save My Seat!

Thanks for sticking with me until the end!

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What resonated with you? What surprised you? Comment below and tag a friend!



 

*Source: entrepreneur.com