Get my 5-day email funnel that generated $400,000 from a single launch

Want an email sales funnel that's already proven to work? Get the entire word-for-word email funnel that generated $400,000 from a single launch and apply it to your own business.

Yes! Send me the funnel now
Start Here: “The Ultimate Guide to Making Money”

Cost vs. value: the $71,000 conference that’s a bargain

11 Comments- Get free updates of new posts here

4 0

The vast majority of Americans are fixated on cost, not value.

They complain about how much something costs, rather than understanding what value it could provide — whether financially, emotionally, or otherwise.

I’ve written about this before in my post on why I bought a new car, a decision commonly dismissed without any research or perspective. In that post, I argue that value (what you get) is much more important than cost (what you pay.)

Earlier this year, I discovered an extreme example that makes the distinction even clearer. Business Insider wrote about how huge corporations are spending $71,000 per year to attend the World Economic Forum’s annual meeting in Davos, Switzerland (pictured above.)

Predictably, most people reacted to this with shock, horror, and even disgust. “$71K for a conference? That’s crazy!” But like many of the people who criticized me for buying a new car, these folks were focused solely on the COST, while totally ignoring the VALUE.

Everyone, that is, except the people who actually attend the conference. They talked about what they were getting for their money:

“…because Davos is now primarily a huge, high-level business conference, in which senior executives from the world’s largest companies take advantage of their physical proximity to meet in person with partners and clients and would-be clients–meetings that can end up being vastly more valuable than the price of admission.”

You know what? People with millions of dollars are pretty smart. So instead of yelling how stupid wealthy people are to spend money on something, perhaps a better approach is to say, “Hmm….what do they know that I don’t? Why would they be doing that?” And try to understand, rather than demean and degrade.

That’s why everyone who flew to Davos this year will be back next year and for many years to come, no matter how high the price is.

It’s easy to look at a high number like $71,000 (or even $500-$1,000) and proclaim how “outrageous” it is. But it takes a little more insight to think about what that seemingly outrageous amount of money is BUYING.

I see this with my Earn1K course all the time. Each time I open it, a number of readers scoff at the price and invent all sorts of reasons why they would never pay it. (The excuses are so predictable that we actually have a scored taxonomy of excuses, as we’ve seen thousands of them.) Meanwhile, a smaller number of smart readers consider the price in relation to what Earn1K could help them DO.

DUMB PERSON EXAMPLE: “OMG…why would you pay that much to earn $1,000?? I have an idea…give me $1,001 and I’ll give you $1,000…hahaha ahaha aahaha.”

SMART PERSON: “Hmm…if this course teaches me the specific steps to earn $1,000/month on the side, I could earn $1k/mo for the rest of my life. Or maybe more…”

One of my students, Jackie, turned her Earn1K investment into $80,000 in new side income. Others have achieved incredible results. She saw the cost of the course not as money down the drain, but as a shorter learning curve (and faster financial rewards.) A classic example of spending money to make money.

The point isn’t that you MUST spend money to get value, or that spending money GUARANTEES you will get value. Rather, I just want you to be open to the idea that it can and often does make sense to pay for value — and that cost is not the only concern.

Free 30-day course: Earn More on the Side

My Earn1K course on earning money on the side isn’t open right now, but it will be shortly. In the meantime, I’d love for you to join my private list on earning more. You’ll get 30 days of material on:

  • How to identify and narrow down a profitable idea
  • Psychological techniques to dominate
  • The “Pay Certainty” Technique: How to know whether people will pay for your idea/service before you invest your time time
  • Advanced tips on pricing
  • Bonus interviews, webcasts and Master Classes

You can join my private list for free by signing up below:

Image credit: Problemkind
Image credit: AMagill

4 0

Related Articles

Untitled design (6)

How to pay off student loans without thinking about it

Student loans are a big kick in the face that the real world has arrived. The average graduate has $28,...

Read More
stretching

The 4 keys to finding ambition

We’re told we should just be happy with what we have… but there’s a difference between being happy ...

Read More

11 Comments

4 0
 

Leave a Reply

11 Comments on "Cost vs. value: the $71,000 conference that’s a bargain"

Notify of
avatar

STRONGside
5 years 28 days ago
The best example I have of cost versus value, is how much people will pay for the opportunity to have lunch with Warren Buffet. This most recent lunch auction went for $2.63 MILLION. That is a crazy amount of money, but I imagine that people derive a good bit more value from a personal conversation with Mr. Buffet than even that amount of money is worth. Think about how much money you could have if you had met with Mr. Buffet thirty years ago and listened to his investing advice! Suddenly $2.63 million does not seem like that much money… Read more »
Dina
Dina
5 years 28 days ago

I’m one of the LOSERS you often talk about who never seems to have the sticking power to make it happen…but I did send this post on two a few friends who hopefully will do as I say and not as I do. I valued your last 30-day course, even though I didn’t stick with it. I got a ton of VALUE at NO COST.

Jenny
Jenny
5 years 28 days ago
I’m chomping at the bit to start your Earn 1K course, but I have some stupidity to finish getting rid of first. (read: credit card debt.) My hubby and I are blasting away at that and we should be free in a 10-12 months. I’ve enjoyed your book and your blog – especially your writing style. I like the no-sugar-coating approach. While we’re working on debt, I’m not sitting idle however. I’m working on ideas for side income and also looking into taking the necessary classes to attain the knowledge I will need. (I’m thinking of doing bookkeeping for the… Read more »
Jenny
Jenny
5 years 28 days ago

Oh, and the cost of your course is going to repay itself exponentially. I would pay more for what you offer than what you ask because, as you say, the VALUE is so high.

Justin
5 years 28 days ago
Hey Ramit, I live in Boston now, which is the most expensive city I’ve ever lived in to date. I live with absolutely terrible housemates and pay $600 for rent, but am moving into a studio for $975 in August. It’s more than I’ve ever paid before and it’s going to be tight, but I can do it, and happily, because of the value I find in living by myself. This is what I tell everyone who wonders why I would pay that much. Same reason I told my brother I was willing to pay a realtor: to take the… Read more »
Jeff
Jeff
5 years 27 days ago

Case in point: attending the World Economic Forum’s annual meeting in Davos, Switzerland last year was worth $160 million to Henri Termeer!

http://articles.boston.com/2011-02-20/business/29341272_1_genzyme-viehbacher-termeer/4

http://www.bestgrowthstock.com/stock-market-news/2011/03/07/update-1-genzyme-ceo-termeer-to-leave-with-about-160-mln/

TK
TK
5 years 27 days ago
Hidden (or not-so-hidden) problem that crops up with this reasoning: Most people know on some subconscious level that their ability to DISCERN value is fucked. Between the white noise of personal insecurities and plain dumb fear, lack of media literacy when it comes to gauging marketing and advertising messages, atrophied critical thinking skills, risk aversion, etc., a lot of people wouldn’t know how to spot ‘value’ if it walked up and punched them in the face. Thinking about value over cost is an awesome approach. But value’s a lot harder to figure out than cost, which a big-ass black-and-white number… Read more »
Annie Andre
5 years 27 days ago
Cost vs Value, We exchange our expensive lifestyle and downgraded so that we could travel more. To do that, my family, hubby and 3 kids had to leave our picturesque suburban home just south of San Francisco, it cut our expenses enormously and we lived and still do live going on a year now. Now we’re panning a trip to Europe for a year. starting our own side hustle and experiencing life to the fullest. We don’t have new fangled things like we used to, the new cars, boats, gucci glasses are all gone Some say we are crazy trading… Read more »
Carlito Labarda Jr.
5 years 27 days ago
I truly enjoyed reading your book on eliminating debt. I just started my own true life debt elimination project and would love to share your book and blogs with my readers. I’m hoping to help, not only myself, but people who need information and guidance eliminating their debts. I read your book which will appeal to a lot of my readers. If you don’t mind, I will be using some of your info from your book to help my readers. My blogsite: ‘CarlitosWayOutOfDebt.blogspot.com’. I will share your link and the tiltle of your book on my blog. Thanks again and… Read more »
Hasan Diwan
5 years 25 days ago
Purchase decisions are made as follows: 1. If the cost to you is outweighed by the benefit to me, I’ll gladly pay it. 2. If it is not, I won’t. Note, I decide the answers based on my own situation. You do not have any input into it. That’s human nature, Mr. Sethi. I will read your books, as they cost $9.99 on my kindle. I gleaned some useful insight out of them as well. However, they were so comprehensive, that I don’t see any further benefit that meeting you in person would bring me. In other words, you could… Read more »
wpDiscuz