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$100M Offers by Alex Hormozi - Reading Notes

Alex HormoziBusiness & Sales15 min read

Key Concepts

Core Philosophy: Make people an offer so good they would feel stupid saying NO.

Three Ways to Grow Business:

  1. Get more customers
  2. Increase their average purchase value
  3. Get them to buy more items

Grand Slam Offer

An offer you present to the marketplace that cannot be compared to any other product or service available, combining:

  • An attractive promotion
  • An unmatchable value proposition
  • A premium price
  • An unbeatable guarantee
  • A money model (payment terms) that allows you to get paid to get new customers
  • Forever removing the cash constraint on business growth

Pricing Strategies

  1. Price-driven (race to the bottom) vs Value-driven pricing
  2. Commoditized pricing vs Grand Slam Offer pricing (no competition to compare)

The Grand Slam Offer Way

Make an offer so different that you skip the awkward explanation of why your product is different from everyone else's. If they have to ask, they're probably too ignorant to understand the explanation anyway. Let the offer do that work for you.

Market Selection

  • Sell to starving crowds, not satisfied crowds
  • Choose the right market - don't try to create demand, channel it
  • Example: Lloyd's story - from struggling in newspaper market to automated mask manufacturing market

Market Selection Criteria:

  1. Pain - Market has significant problems/needs
  2. Purchasing power - They have money to spend
  3. Easy to target - You can reach them efficiently
  4. Growing - At least market rate (9%)

Pain Principle

  • The degree of pain is proportional to the price you can charge
  • When they hear the solution to their pain (and what their life would look like without this pain), they should be drawn to your solution
  • "The pain is the pitch" - If you can articulate the pain a prospect is feeling accurately, they will almost always buy what you are offering
  • A prospect must have a painful problem for us to solve and charge money for our solution

Market Commitment

  • The grass is never greener once you get to the other side
  • If you keep hoping from niche to niche, hoping that the market will solve your problems, you deserve to be "niche slapped"
  • You must stick with whatever you pick long enough to have trial and error
  • You will fail until you succeed, but you will fail far longer if you keep changing who you market to because you must start over from the beginning each time
  • Pick then commit
  • You can make more money in a niche
  • Don't pick bad markets, normal markets are fine, great markets are great
  • Once you pick, commit to it until you figure it out

Niche Positioning Formula

"I solve this type of problem for this specific type of person in this unique counter-intuitive way that reverses their deepest fear"

Resilience Mindset

  • If you try one hundred offers, you will succeed
  • Most people never try anything. Others fail once, then give up
  • It takes resilience to succeed - stop personalizing
  • It's not about you if your offer doesn't work - it doesn't mean you suck, it means your offer sucks (big difference)
  • You only suck if you stop trying
  • You'll never become world class if you stop after a failed attempt

Pricing Strategy

There is no strategic benefit to being the second cheapest in the marketplace, but there is for being the most expensive

Grand Slam Offer Value Formula

The Grand Slam Offer only becomes valuable once the prospect receives:

  • Increase in likelihood of achievement
  • Decrease in time delay
  • Decrease in effort and sacrifice

Psychological vs Logical Solutions

Always solve problems with psychological solutions, not logical ones

  • Making trains faster takes $1,000,000,000
  • Implementing data maps takes $1,000,000

(Psychological solution addresses the real problem - anxiety about arrival time - rather than the surface problem)

Four Pillars of Sales/Value

  1. Dream Outcome - What they want to achieve
  2. Likelihood of Achievement - How certain they are to get results
  3. Time Delay - How fast they get results
  4. Effort and Sacrifices - How much work/sacrifice required

Value Optimization Formula

INCREASE:

Dream Outcome + Likelihood of Achievement

DECREASE:

Time Delay + Effort and Sacrifices

Key Insight: Most entrepreneurs focus on the first 2, but it's more profitable to focus on the latter 2 (reducing time delay and effort/sacrifices)

Convergent vs Divergent Thinking

  • Convergent: Math problems - lots of variables, single answer
  • Divergent: Life will pay you for your ability to think of many solutions to a single problem
  • Success comes from divergent thinking - multiple creative solutions to one problem

Solution Creation Process

Step 1: Identify Dream Outcome

e.g., weight loss

Step 2: List Problems

eating healthy, buying healthy, results take too much time

Step 3: Solution List

Transform problems into solutions, name the solutions

  • What would I need to show someone to solve this problem?
  • Reverse each element of the obstacle into solution-oriented language (copywriting 101)
  • Example: "Cooking healthy food is hard, confusing" → "How anyone can enjoy cooking healthy meals easily"

Step 4: Create your solutions delivery vehicles

("the how")

Step 5: Trim and Stack

  • Step 5a: Trim down to only the highest value and lowest cost to deliver
  • Step 5b: Put all the bundles together into the ultimate high value deliverable

The Irresistible Offer Test

What could you do that someone would immediately say, "All that? Seriously? Yes I'm in!"

Monster List Strategy

Try to note down multiple solutions for ALL perceived problems that your clients encounter:

  • Before their experience with your service/product
  • During their experience with your service/product
  • After their experience with your service/product

You should have a monster list by the end of this.

MAGIC Formula

(for crafting compelling offer names and headlines)

  • Magnet: The hook - grab attention and make the offer irresistible (highlights core benefit/value proposition)
  • Avatar: Target the specific audience - ensure message resonates with intended recipients
  • Goal: Clearly state the outcome/result customer can expect (tangible objective)
  • Interval: Introduce timeframe/deadline - create urgency and encourage prompt action
  • Container: Define the delivery method (course, coaching program, challenge, etc.)

Time Delay Principle

  • The shorter the distance between when they purchase and receive value/outcome, the more valuable your service/product is
  • Balance long-term outcomes with short-term experiences
  • "Fast beats free" - The only thing that beats free is fast. People will pay for speed
  • Examples: Pay $50 to skip DMV line vs waiting forever for free, Uber vs walking, Spotify vs slow free music

Summary

  1. Why you must not be a commodity in this marketplace
  2. Why you should pick a normal or growing market, and why niches get you riches
  3. Why you should charge a lot of money
  4. How to charge a lot of money using the four core value drivers
  5. How to create your value offer in five steps
  6. How to stack the value, deliver it, and make it profitable
  7. How to shift the demand curve in your favor using scarcity
  8. How to use urgency to decrease the action threshold of buyers
  9. How to strategically use bonuses to increase the demand of your offer
  10. How to completely reverse buyer risk with a creative guarantee
  11. How to name it in a way that resonates with your avatar

Last updated: Starting notes