670: (Solo) Why Great Products Lose to Better Offers - and How to Fix Yours

**Nathan Chan** (0:01)
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Hey guys, Nathan here. Welcome back to another episode of the Foundr to Foundr Solo Podcast where I share everything that I am learning in the trenches building businesses for the past decade, speaking to so many hundreds and hundreds and hundreds of successful founders. So I want to talk about something that I keep seeing again and again and again, I'd be doing you an absolute disservice, especially as an e-com founder if I didn't share this with you. It's not talked about enough.

**SPEAKER_2** (1:29)
Hear the stories, learn the proven methods, and accelerate your growth and future through entrepreneurship. Welcome to the Foundr Podcast with Nathan Chan.

**Nathan Chan** (1:42)
Alex Hormozi talks about $100 million offers and it's so true. It's one of those things that I wish someone had told me earlier in my journey. I've spoken to so many founders who generally have a great product. The quality is there, the branding is solid, the ads are running, yet they can't scale. Their conversions are not where they need to be.
Honestly, every single time we dig into it, and this goes for a lot of our members inside Foundr Operators. Every single time, it is not a product problem. It's an economics and offer problem. It's not the ads, it's not the fun, it's not the content, it's not the creative, it's the offer. So let's dive in. So here's what most founders get wrong. They spend months on the product, they nail packaging, quality, price point, and then they start running ads. And you might get some success, right? But then, oh my God, every time, like the product and the offer can't scale and it's because the economics don't match. So the offer is the complete package of what someone gets when they buy from you, how it's framed, what it includes, making sure you've got a really high, nice, juicy AOV so we have enough margin to buy and scale, right? The brands that are winning have cracked this. The brands that I see, that I speak to, that are spending $100,000 a day, like our friends IM8, like our friends at Manscaped, the list goes on. These are some recent shows. You can see them on this podcast. They have cracked the offer, right? Like you look at what Danny Jung has done with IM8. It's one of the most talked about supplement brands right now in the market. And on paper, it's a supplement. It's a powder you mix into water every morning. There are thousands, tens of thousands of supplements. The market is completely saturated, but the offer is not just the supplement. It's 92 clinically dosed ingredients in a single drink backed by scientists from some of the most respected medical institutions in the world, co-founded by David Beckham. They've got this incredible bundle. Their AOV is like over $150.
They've got a subscription that simplifies your morning routine. Every element is designed to make the yes feel easy and the value feel undeniable, and they didn't stumble into that. That is being strategically engineered from the ground up. Every part is so deliberate, and the founders that are doing exceptionally well, they just get this. So this is what an intentionally built offer looks like, and this is something that one of our founders, he's one of our instructors on the Foundr Plus platform, Jordan Menard. He speaks to this really well. We had Jordan on the podcast. He's the co-founder of Instant Hydration. He's like a super respected operator in the DTC space. He's managed over 3 million in ad spend, built his own brand, and the question isn't what are you selling? It's what's the most compelling version of what you're selling? What makes someone feel like they'd be crazy not to buy? That might be how you bundle your product. The guarantee you offer, the framing, the unique mechanism, the unexpected extra that just nudges people to consider actually buying. I talked about unique mechanisms before. This is part of your offer as well. But most founders spend 90 percent of their time on the product and no time on the offer, and they wonder why their conversion rate is flat and their ads are not performing and they can't scale. So this is something that we spend so much time with our members on in Foundr Operators and so many members that we speak to, prospective members, they say, guys, can you help me? My ads aren't scaling and we see in their AOV is like $40.