James Sinclair explains why common startup tactics like crossed-out prices, free trials, and pre-selected options work. They're rooted in behavioral economics: anchoring, the endowment effect, nudges. Understanding the psychology behind these small tweaks can outsized impact on conversion and revenue.
Chapters
Startup founders let's talk about Jedi mind tricks, AKA behavioral economics. I'm hoping a specialist will jump in and add more flavor to this. I'm a generalist, but let's talk about LinkedIn when it tells you congratulate your friend on their new job. Let's talk about the three pricings you see on a website, but the middle one is brought to the front and pre selected. Or when you see a price crossed out with a lower price next to it. Or even a free trial. Or why so many websites put themselves on review sites like captor and G2 and we're thinking who actually reads that stuff? Stuff as a founder you're probably doing all of these things anyway and kudos to you, but you're probably doing them because everyone else does them, not because you understand kind of the psych behind it. It's nudge theory, it's endowment effect, it's cognitive bias, it's anchoring. It's all of these things that can drive dramatic kind of acquisition, conversion, retention revenue to your startup if you just understand it. These minor tweaks have monstrous impact. 80:20 Rule of play Good luck.