The Power of Why: Why People Believe and Buy

💡People don't buy what you do, they buy why you do it. Your purpose and beliefs are the driving force behind people's decisions.

🌍Successful leaders and organizations think, act, and communicate from the inside out. They start with why and then move to how and what.

🙌The law of diffusion of innovation explains that your early adopters and believers will drive mass-market success.

🤔Understanding why you do what you do helps you attract like-minded individuals who believe what you believe.

🚀Being first and tapping into the beliefs and values of your target audience can lead to loyal customers and mass-market acceptance.

Why is it important to know why you do what you do?

—Knowing why you do what you do helps you communicate your purpose and beliefs, which attracts like-minded individuals who believe what you believe. It also drives behavior and loyalty among your customers.

How do successful leaders and organizations think, act, and communicate?

—Successful leaders and organizations start with why, then move to how and what. They communicate their purpose and beliefs, which align with their target audience's values and beliefs. This inspires action and loyalty.

What is the law of diffusion of innovation?

—The law of diffusion of innovation states that in order to achieve mass-market success, you need to reach a tipping point of 15-18% market penetration. This is achieved by attracting early adopters and believers who spread your message to the wider market.

How can understanding why people do what they do affect their buying decisions?

—Understanding why people do what they do helps you tap into their beliefs, values, and motivations. By aligning your offerings with what they believe, you can create a strong emotional connection that drives their buying decisions.

How can being first and tapping into beliefs lead to mass-market acceptance?

—Being first creates a sense of exclusivity and novelty, which attracts early adopters who enjoy being ahead of the curve. As these early adopters spread the word to others who share their beliefs, mass-market acceptance can be achieved.

00:16The video explores the importance of understanding why people do what they do and how it affects their buying decisions.

05:55The speaker introduces the concept of the golden circle, which explains that people don't buy what you do, they buy why you do it.

09:55He discusses the law of diffusion of innovation, which highlights the importance of attracting early adopters and believers to drive mass-market success.

12:25The video emphasizes the need to understand why you do what you do in order to attract like-minded individuals and create loyal customers.

13:39The speaker gives an example of TiVo as a commercial failure despite having the right funding and market conditions, highlighting the importance of purpose and beliefs.