Hi Agung,

When it comes to marketing, many of you are aware that people are more likely to buy something to reduce pain, than to run towards pleasure.

That being said, both are drivers of buyer behaviour.

One thing that doesn't get talked about quite so much, is 'avoidance of loss'

I'll give you a scenario…

If you MUST bet on one of these options…

1. 50% probability to win 1k, 50% probability you'll win nothing.
2. 100% probability you'll win $500

Most people choose 2, to lock in that 500, regardless of the fact that they have an opportunity to have more in option 1, and that the payout numbers are the same on average.

They want to avoid the probability of losing (avoidance of loss).

Now, lets look at scenario 2…

This time you MUST bet on one of these options…

1. 50% probability of losing 1k, 50% probability you'll lose nothing.
2. 100% probability you'll lose $500

What's really interesting here is that most people choose option 1 above.

While option 2 will limit the potential damage, option 1 gives you that 'possibility' of total avoidance of loss.

This is because the human brain is wired to 'avoid loss'.

According to a study done by Kahneman and Tversky, this loss-aversion bias is at 2.3 times the value of winning.

That means that you need about 2.3 times the value to offset the problem of people worried about losing.

This is why it's so important to build up the value of the benefits of an offer you are selling (or if you're the affiliate, that the site you are promoting does this).

So that the person perceives the value as at least 2.3 times more than the price being charged.

It's also the reason why 50% off specials work so well. Or why those 'last second discounts' for people abandoning the cart work so well. People want to avoid losing.

Adding bonuses to an offer, to increase the value of the purchase, more than 2.3x above the price being charged is another way of achieving this.

So if you're going to apply this as an affiliate, or on an product site of your own…

Bear this in mind, in the way you word things.

Another tip, that works well is to lay out the two options they have. So that they compare what it's like to buy, vs not buy.

So they have something to 'lose' in order to avoid.

It's not always money they wish not to lose, it could be those benefits of your program, and the life they will have if they own your product.

Hope you enjoyed these online marketing tips for today.

Kind regards,

Mark Ling Founder of Traffic Travis https://www.traffictravis.com