Daniel Fazio explains that marketing offers fall on a sliding scale from demand generation (you can create demand) to demand capture (you can only sell when someone is already looking). He gives examples of each, distinguishes capture vs generation mechanisms (e.g., Google search ads vs interruption ads), and outlines three tactics for selling capture offers with generation mechanisms: very high volume outreach, unique positioning, and targeting prospects with demand-capture indicators. He also frames offers along a traffic generation → traffic conversion line, describes offer decay (competition turning generation offers into capture), and recommends solving decay via unique positioning or dimensional shifts and increasing revenue by adding conversion work to your service.
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Everybody likes to talk about offers as if it's one simple concept. But there are actually two different distinct types of offers that operate on a sliding scale from demand generation to demand capture. And the difference between these two offers determines exactly how you need to market your services. What might have happened here, someone might have said, hey, go send emails or go send cold DMs or go do cold calls. And maybe you did those things and you didn't get results. And the reason might be is because you don't understand where exactly your offer falls on this spectrum. So, so what I'm going to do in this video is explain to you exactly where your offer is going to fall in this and how to market each one of those. So let's get into this. So on this sliding scale of demand generation to demand capture, the key distinction between both of these is demand generation is an offer that you can create demand for, and demand capture is an offer that you cannot create demand for and you can only sell it if somebody is already looking for it. So let me give you some examples of a demand capture offer. Something that you cannot create demand for, but you can only sell that somebody is is already looking for it. Websites, IT services, insurance, recruiting, bookkeeping, credit card processing. And now while you can create demand for a demand capture offer, which is something I'm going to talk about later, there's a key distinction between this and offers that inherently can have demand created for them. Demand generation offers include things like getting people more leads with ads, converting more free trial users with email marketing, helping people build a personal brand on Twitter, LinkedIn, automated outreach, UGC, ad creatives, influencer marketing, short form content, cold calling, cold email, any kind of ad, webinars, anything typically that produces more traffic. However, sometimes an offer can fall somewhere in the middle because it's a sliding scale. Things that will fall somewhere in the middle, or like SEO, PR, ad writing, organic YouTube management. Now there's a key distinction between a demand capture offer, demand generation offer and demand capture mechanisms, and demand generation mechanisms. Let me explain the difference between these two. A demand capture mechanism is something that enables you to capture demand as it's flowing. A good example of this is Google search ads. If somebody searches something you are capturing the demand that already exists. For a demand generation mechanism is typically interruption marketing. So that would be something like Facebook ads, Twitter ads, anything where you are interrupting somebody. So the problem with this is a lot of people, they actually have a demand capture offer, but they're trying to sell it with the demand generation mechanism. But this doesn't work. If you want to sell a demand capture offer like web design with a demand generation mechanism like cold email where you are interrupting somebody, there are only three things things you can do in these three only. Number one, extremely high volume. In an attempt to just buy happenstance, find somebody who is already looking for the thing. Two, positioning your offer to be unique and differentiated from the other people selling your same demand capture offer. Three, outreach to prospects based off demand capture indicators. Here's an example. You sell IT services and somehow you are able to scrape data based on people who just had a security breach at their company. Or you're selling lead generation services and you scrape data for cold email based off people who are hiring for an SDR right now. This is an indicator that they are probably interested in the thing that you are trying to sell them right now because there's an indicator that they're looking for it. Okay, but on point one, what does high volume mean? Exactly how much volume do you need to be pushing to sell a demand capture offer with a demand generation mechanism? We'll use another example. Right, Websites. You're trying to sell web design with cold email. So demand capture offer with demand generation mechanism. If you're selling a demand generation offer with a quantifiable promise, a guarantee and social proof, you should be able to get one client for every 1,000 prospects you elapsed through a full cold email sequence of five follow ups. If you are selling a demand capture offer like web design, it will hang more towards one client signed for for every 20,000 cold emails you send. You see the key distinction here? So if you've been trying to sell a demand capture offer with something like cold calling or cold email, and you're wondering why this isn't working for you, is because you are not doing the sufficient volume necessary to make it actually work based off of what you're selling. Okay, let's go back to point two. If you're selling a demand capture offer, how do you position this to be unique and morph it more towards the demand generation side? Same example, web design. So a lot of people might say I'll make you a pretty website that doesn't work. What you have to do instead is this. I'll make you a website with internal fraud monitoring software to stop fraudulent purchases before they go through strike. That's unique. Okay, let's do recruiting. I'll recruit engineers for your business. I can recruit a software engineer who can create AI models based off of your data. Meaning you can create internal tech that automates your customer service. Back to point three. How do you outreach to people based off demand capture indicator? Is hiring for a specific job role has a specific technology installed on their website. By the way, you can use a list kit IO to do this is following or interacting with another person or company on social media. I know this is all super confusing and you should 100% go watch everything I just said back again because we're going to go even deeper onto this because this is super important to understand. If you're selling an offer the marketing related sphere, I need you to imagine another spectrum. Imagine one continuous line from zero to paying customer. What happens along this line? The first half of the line is traffic generation, getting the traffic in the first place. The second half of the line is traffic conversion. How do you get the people already in the funnel to convert traffic generation? Offers are everything to do with getting traffic in the first place. Facebook ads, TikTok ads, Snapchat ads, LinkedIn ads, LinkedIn automated outreach, cold calling, cold email, getting the traffic Traffic conversion is everything to do with converting the traffic you already got with the previous things email marketing, sales follow up conversion, rate optimization, copywriting and sales pages. For instance, in order for your YouTube ads to work you must have sales processes and follow up and email marketing and good copywriting. In order for your email marketing to do anything, you need the traffic in the first place. From cold email, TikTok ads, Facebook ads, YouTube in order to take somebody from zero to paying money, they must be generated via traffic generation and then converted to via traffic conversion. So you have these two tree branches, demand capture, which pieces out to traffic generation and traffic conversion. And then you have another tree branch, demand generation, which branches out to traffic generation and traffic conversion. And your offer is going to fall somewhere along this tree branch. When your market gets sufficiently sophisticated, meaning you have more and more and more competitors, all demand generation offers turn into demand capture. This is called offer decay. And you can imagine this is just a very simple graph of at the top top on the y axis you have demand generation and at the bottom of the y axis you have demand capture. And then on the x axis you have time elapsed. Slash how many competitors you have. And the line starts at demand generation and it slowly goes down over time as you get more competitors to demand capture, your offer always decays into demand capture. The way you solve offer decay is through unique positioning or otherwise dimensional shifts. Let's take the appointment setting market. First it was we'll teach you how to set appointments for your business. Then it was we'll set appointments for your business on Instagram. And then as it got super saturated, it turned into we'll place an appointment setter inside your business to do it for you. That was a dimensional shift done for you. Appointment setting morphed into we'll place someone to do it for you. This was a dimensional shift. Okay, next, you're working with low ticket clients and you want to charge more money. How exactly do you do this? Let's go back to this traffic generation to traffic conversion spectrum. So right now you're selling some service. Let's call it TikTok ads. You do TikTok ads for e commerce brands. How do you make more money? How do you charge these clients more money? And the answer is because right now you are operating just on that traffic generation side and you are not doing anything on the traffic conversion side. Most people are only operating on one half of the spectrum because it's easier to spin up, it's simpler to sell, it's easier to get results quickly and it requires less expertise on your end. You don't have to be as competent as somebody who does everything, but if you want to make more money, you, you have to be more competent. So you need to more from selling just one half of the spectrum to also selling the other half of the spectrum. And that's going to require that you do things that you are uncomfortable with right now. If you were running a business right now, you probably remember how much effort and time it took for you to actually get good at the thing that you're selling. It was a lot of effort and it really sucked when you didn't know anything. Congratulations. Let's go back there. You have things to learn. You're not good enough yet and you need to work harder. And if you want a 42 minute explainer video on how you can get clients for your business using cold email without spending tens of thousands of dollars on that. You should go watch this right next. And if you want a step by step process on how to get to 50k a month, go watch this video right now.
