$100 Million Offers by Alex Hormozi Summary

How to make offers so good that customers have to buy.

$100 Million Offers by Alex Hormozi Summary
Source: acquisition.com

Summary 

4 essential aspects of a good market:

  1. Pain. Be able to accurately describe the pain that people have.
  2. Purchasing power. Your customers need to be able to pay for the service.
  3. Easy to target. Choose an audience that is easy to locate.
  4. Growing. Choose a growing market/industry.

Demand > offer > persuasion.

Commit to a niche.

”Charge as high of a price as you can say out loud without cracking a smile.” - Dan Kennedy

Always charge more than the market price (what your competition is charging). It increases your customer engagement and makes you look premium. It also allows you to reinvest and make a better product than your competition.

Higher price = higher value. Simply having a higher price will make people perceive it as better.

  • You need to raise your prices so high that people think, “Wow, this must be different, this must be way better than the competition.”

Value = (dream outcome x perceived likelihood of achievement) / (time delay x effort/sacrifice)

“The best companies in the world focus all their attention on the bottom side of the equation. Making things immediate, seamless, and effortless.”

  • Reduce time delay and effort/sacrifice.

The key to dream outcomes: Sell status. Say their neighbor’s jaw will drop when they hear that they’re moving to a new mansion in California.

Perceived likelihood aka certainty of achievement. People pay more when they are sure they will get results. The best way to show this is to have testimonials and give guarantees.

Time delays: The time between the client buying and when they get the promised benefit. Short-term experience and long-term outcome. Improve both. People buy the long-term outcome but the thing that makes them stay long enough to get it is the short-term experience. Give people a big emotional win early on.

  • Fast beats free. If you’re in a market that is free, people will pay to get it faster. People will pay $50 to skip the line at the DMV. People will pay Amazon a subscription to get all of their packages faster.

Effort and sacrifice: This is what it costs people along the way (tangible and intangible).

People really want a pill or a procedure to get the outcome for them. 99% of people do not want to do the work. So sell them the dream.

Ask people for a review on audible or amazon in the middle of your book like the “Free Goodwill” chapter of this book.

Think about the problems people will have before and after they get your product.

Read chapters 9 and 10.

Make testimonials a mobile screenshot. Preferably on social media.

Value offer:

  • One-on-one: Do a one-on-one startup call, then do calls every month so they can ask you any questions.
  • Exclusive group: Do a live stream where you answer their questions.
  • Do it for them: Ex) make an app that automatically buys crypto for them, all they have to do is deposit money.
  • One-to-many: record videos that teach people how to do a specific thing or give info. Make a calculator that tells people how much they should put into real estate, crypto, and stocks based on age, desired retirement age, and risk tolerance.
  • Many-to-many: Make a forum or group Discord where people in your group can help each other with investments.

Think: If your customer paid you 10x your current price, what would you do to give them fair value? If your customer paid you 1/10th of your price, what would you do to give them even more value?

Make a huge list of potential things you could do. Then scrap anything that is not low-cost, high value or high-cost, high value.

The longer you delay the ask, the bigger the ask you can make.

There will be 1/5 off your buyers willing to pay 5X as much. That means 5X (or more) your price, increase value, make it exclusive. This will increase demand and allow you to do more one-on-one for your clients (higher value).

Scarcity:

I want this to be an exclusive group. Early buyers will get the low price but I will be increasing the price by $20 every month. (So buy now.)

  • Only accept X amount of clients.
  • Only accepting X clients per week.
  • Only accepting X clients per class or meeting or event.
  • Make sure the demand is higher than the number of spots — so you sell out.  This will increase demand.
  • Make a super high-ticket one-on-one offer. It could be Zoom, FaceTime, email, etc. but just have the offer up incase someone wants it.
  • Hack: say that if people leave they cannot come back — keeps retention high.

Urgency:

Cohort-based onboarding. Have people join on every Monday. And they you can say, “If you sign up now I can get you onboarded with our next cohort on Monday, otherwise you’ll have to wait until the following Monday.”

  • Update your copy/ads to include promotions that they should take advantage of now. The update should have a seasonal tag like a Black Friday deal or New Years’ deal. This makes people understand that it is a seasonal promotion that will go away.
  • Give people a promo to buy now. It’s better to add value than cut the price.
  • Never raise your prices without letting people know. Always send out an email that says prices are going up tomorrow, but now!

Bonuses:

Always add bonuses rather than discounts.

  • Give the bonus a title, description, and say the benefit they will get from it.
  • Use scarcity with your bonuses. Say they need to act now or the bonuses will go away.
  • Get other companies to give a bonus on your product. That gives you free high-quality bonuses and marketing for the other business. (Don’t do this with direct competitors.)

Guarantees:

Guarantees are as important as your offer stack — take the time to craft a great one. If you have a high ticket product, you will likely want to do a conditional guarantee.

  • If you do not get X result in Y time, we guarantee Z.
  • You need to guarantee someone MORE than just a refund. Maybe offer them to keep the year subscription AND get their money back.
  • Anti-guarantees. Get creative. Come up with a reason why you don’t give a guarantee.
  • Outcome guarantee: compensation is tied to my output. If I don’t perform, I don’t get paid. But if I do perform, I get paid well.
  • Stacking guarantees: give a 30-day money-back guarantee and a 90-day triple your money guarantee, for example.
  • Use creative imagery. Boring: 30-day money-back guarantee. Exciting: If you wouldn’t jump into shark-infested waters to get our product after 30 days, we’ll give you your money back.
  • Alex gave us an amazing guarantee script in the book.
  • Can you do a limited-time guarantee? (Urgency)
  • You can do a 3x the money guarantee. If they don’t get the value they want within 30 days, I will refund them 3x the amount of money.
  • Anti-guarantee trick. If you have a line of code that does something great or a Tinder line that 10Xs conversions, lean into the idea that it is a superpower exclusive product. Say that you cannot give refunds because the product is so effective and the business could easily be taken advantage of if we gave refunds. This might actually work with crypto. Worth a try. Especially if you make it super expensive.
  • Implied performance: I get X% of what you make. That way I only get paid if you win. Maybe you could make an investing app that takes a higher % based on how well the investments do.
  • Make up your own. Always think: what is the biggest fear my client has about my product? How do I reverse that or take on the risk myself?

Naming:

A better name can get 2-10X the response of a bad name. “Reaching an audience one time in no way means an offer is fatigued. Most people don’t even notice an offer on the first mention. That’s why you need to create new creative (videos, images) and new hooks, stories, and copy around the same offers. You can still use offers for a long time. But when we’re talking about years of use, not months, offers can eventually fatigue.

Over time you can rename the offer to refresh it. This one concept will get you leads forever. I mean it. So pay attention. We are not changing the actual offer. We are only changing the wrapping paper.

  • To make an offer work for months, you change its promo videos, images, copywriting, and hooks. To make an offer work for years, you change its name.
  • Hook: Make your first investment today.
  • Hook: How to invest in crypto today.
  • Hook: Invest like the best. (Rhyming.)
  • Keep trying different offer names (hooks) to see which one works.

What Happens When Offers Fatigue?

As you market offers, you will need to create variations over time as the tastes of the market change over time. Here’s the order in which you will change things to keep the lead flow consistent.

  1. Change the creative (the images and pictures in your ads)
  2. Change the body copy in your ads
  3. Change the headline - the “wrapper” of your offer: Free 6 Week Lean Challenge to Free 6 Week Tone Challenge or Holiday Hangover to New Year New You
  4. Change the duration of your offer
  5. Change the enhancer of your offer (your free/discount component)
  6. Change the monetization structure, the series of offers you give prospects, and the price points associated with them (Book II)