Demand Curve - Growth Newsletter #210

The Growth Newsletter #210

Don’t appeal to reason. Appeal to interest.

Today is a timeless lesson from the late Charlie Munger.

It works in life, business, and marketing.

Let's dive in 🕵️

– Neal

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Don’t appeal to reason. Appeal to interest.

Insight from Poor Charlie's Almanack.

People are profoundly illogical.

Our actions are predominately driven by emotion.

Then, we tell ourselves logical stories to rationalize our irrational behavior.

Savvy marketers and founders recognize this and leverage it.

Here’s an example from Poor Charlie’s Almanack: 

In short, to convince, don’t appeal to reason.

Instead, appeal to their selfish interests.

Let’s dive into tangible examples:

1. High-end electric car (ex: Tesla)

Reason:

• Environmental benefits.
• Savings on gasoline.
• Low maintenance costs compared to traditional gasoline vehicles.

Interest:

• Prestige from owning the newest Tesla.
• Break-neck acceleration.
• Quirky and novel features (whoopie cushions).
• Futuristic Full-Self Driving that your friends will be wowed by.

2. Fitness mobile app

Reason:

• Cost-effectiveness compared to a gym membership.
• Convenience of working out at home.
• Variety of workouts that can cater to different fitness goals.

Interest:

• Desirable outcomes, such as getting into shape quickly for a wedding.
• Ability to work out at home and not feel like you’re being judged or crept on.
• Personalized training plans that make the user feel unique and catered to.

3. Luxury skincare products

Reason:

• The scientific research behind the products.
• High-quality ingredients.
• Benefits of using a scientifically formulated skincare regimen.

Interest:

• Sell the dream of flawless skin.
• The allure of using products loved by celebrities.
• The exclusivity of having a luxurious skincare routine others can't afford.

4. Educational children’s toys

Reason:

• Explain how the toys enhance learning and development.
• Discuss the safety of the materials used.
• Made from durable, high-quality materials.

Interest:

• Promote how these toys can make their child smarter.
• The free time parents will have because the child will be distracted.
• How the toys will help their children succeed in the future.

5. Organic food products

Reason:

• Detail the health benefits of organic eating.
• Absence of harmful pesticides.
• Positive environmental impact of organic farming.

Interest:

• Emphasize the taste superiority of organic products
• Lifestyle connotation of health and wellness that comes with organic eating,
• Social status associated with making environmentally conscious decisions.

We all know that we shouldn’t eat sweets and fried foods.

They’re bad for our health, after all.

Yet almost every single one of us does.

So clearly, the logical argument is not compelling.

So, the next time you write copy, stop to notice whether you’re appealing to reason or their selfish interests.

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Thanks, everyone!

Neal O'Grady

Justin Setzer

Nick Costelloe