Avoid This Common Mistake
How your brain is tricking you.
It’s a common mistake. We’ve all made. And it can be costly. The last time I messed up, it cost me $4,000.
The mistake happens because of how our brains are wired. When we make a decision, we naturally factor in past investments. How much we put into something in the past colors how we think of its future. But that’s not true; it doesn’t. Psychologists call it the sunk cost fallacy.
We make this error when we keep following a strategy that’s not working, simply because we’ve already invested so much time and money. Or we keep bringing in a slow-selling product line because we’ve invested so much in building it. Or we keep an underperforming employee because we’ve invested so much to train them.
Yes, we’ve invested a lot, but those investments are gone. We’re not getting them back.
We need to evaluate decisions based only on the future potential. It hurts, but we need to forget what we’ve already spent. Doubling down to try to recover our investment is a mistake. We need to know when to cut our losses.
My $4,000 error is continuing to use Kajabi for these emails. It’s an expensive platform, and there are better, cheaper options. Options I should have switched to a year ago.
But I’m switching now. This newsletter is moving to Substack. It will be cheaper for me, but better for you. With Substack, I can easily share videos. So you’ll get better, more useful content.
If you’re reading this on Substack, thank you. Next week will be the last email using Kajabi. It feels good to have finally moved past my sunk cost fallacy. So where is this fallacy playing out in our business? Where should you forget all that you’ve invested and move on?
I hope this serves.
Gilbert