Brief summary

The book $100M Money Models shows how companies can maximize customer lifetime value and self-finance customer acquisition through a clever sequence of offers. Instead of selling many products, the core product should be offered in various versions, tiers, and models. The goal is for each customer to recoup their acquisition costs within 30 days while simultaneously paving the way for long-term revenue.

General ideas

• A money model is a sequence of offers that build logically upon one another.

• Instead of selling 100 things, sell one thing in 100 ways.

• The goal is to cover the acquisition costs, fulfillment costs, and costs for the next customer with one customer.

• Start with simple offers and expand step by step.

• Use affiliate products to fill gaps in the model.

• Never offer the same thing for less money. Always remove something from the product range to reduce the price.

• Heat Check: Ask customers how ready they are to make a purchase on a scale of 1 to 10. Adjust the offer if the score is below 8.

Contents

Building a Money Model

A money model consists of a clear sequence of offers:

1. Attraction Offers

2. Upsells

3. Downsells

4. Continuity Offers

The process is built up step by step: First, customer acquisition must function reliably, then cost coverage, and finally, increasing customer lifetime value. The goal is for each customer to cover the costs of advertising, fulfillment, and further acquisition within 30 days.

1. Attraction Offers

These offers turn strangers into customers and build trust. They should be attractive, low-risk, and action-oriented.

• Win Your Money Back:

  Customers pay upfront but can get their money back if they meet certain conditions. This increases purchase intent, reduces perceived risk, and boosts long-term customer loyalty. Conditions must be simple, clear, and business-friendly. "Pay now, but if X happens within Y time and Z rules apply, then money back."

  
  

• Giveaways:

  A valuable grand prize attracts attention. Participants who don't win receive discounts or alternative offers. This generates leads, booking appointments, and preparing for upsells. Two prizes (grand prize and friend prize) encourage referrals. If a friend wins, you also receive a prize.

  
  

• Decoy Offer:

  A cheap or free introductory offer is advertised, while the main offer is presented alongside it as a premium option. This contrast reinforces the perceived value of the premium product.

  Types of discounts:

  • Percentage discount

  • Fixed amount Reduced

  • Free months or partial packages

  • Package price comparison

    
    

• Buy X Get Y Free:

  Purchase incentives through bundling: Anyone who buys one product receives another or extended access for free. Always give more for free than is paid for, in order to increase the perceived value.

  
  

• Pay Less Now or Pay More Later:

  Customers can choose between immediate payment with discounts and bonuses or later payment at full price. This ensures fast cash flow and improved liquidity.

2. Upsells

Upsells increase the average revenue per customer. They complement the initial offer and solve the subsequent problems that the first product has revealed.

• Classic Upsell:

  "You can't have X without Y." The follow-up offer fills the gap left by the main product. Multiple pricing options (e.g., Small, Medium, Large) increase the perceived value. BAMFAM rule ("Book a Meeting from a Meeting"): only end a conversation when a follow-up appointment has been scheduled.

  
  

• Menu Upsell:

  Customers choose between several products. Unnecessary options are eliminated to focus on the best offer. Instead of asking if a purchase will be made, ask directly whether the customer prefers A or B.

  
  

• Anchor Upsell:

  First, showcase an expensive premium product, then the actual main offer. The comparison makes the latter appear cheaper. The premium offer should be five to ten times more expensive.

  
  

• Rollover Upsell:

  Previous purchases are credited towards higher-value products, creating a sense of reward and value. This is particularly suitable for existing customers or dissatisfied buyers from other providers. "You've already invested $300 in us. If you buy the $3000 product, you'll receive the $300 as a discount."

4. Downsells

Downsells turn a "no" into a "yes" by offering adapted or simplified versions of the main offer.

• Payment Plan Downsells:

  The same product is offered with installment payments. First, the full price with the discount for immediate payment is shown, followed by alternatives with a surcharge or longer payment periods. Annual statements reduce cancellations.

  
  

• Trial with Penalty:

  Customers can test the product for free, but must comply with certain conditions. Those who do not comply will be charged a fee. This encourages engagement and simultaneously secures revenue.

  
  

• Feature Downsells:

  Instead of simply lowering the price, features are being reduced. Options include: smaller quantity, lower quality, less service, limited time or location. After each downsell, confirmation should be requested ("Deal?" or "Fair enough?"). If the customer declines multiple times, a free trial offer should follow.

5. Continuity Offers

These offers generate recurring revenue, for example through memberships or subscriptions. They keep customers active and increase long-term value.

• Continuity Bonus Offers:

  A bonus or discount motivates renewal or a premium membership. Physical products can include digital bonuses and vice versa. The goal is to combine short-term cash flow with long-term customer loyalty.

  Tactics:

  • Mention the bonus before the price

  • Bonuses are only given for immediate completion.

  • Offer prepaid packages to obtain more advance payments.

    
    

• Continuity Discount Offers:

  Time-limited discounts for customers who renew immediately or book long-term. Discounts can be distributed evenly or granted after a certain period. Gift cards are suitable for making discounts transferable. Clearly worded cancellation policies reduce cancellations.

  
  

• Waived Fee Offers:

  Customers can choose between monthly payments with a fee or an annual contract without a fee. Higher fees increase the commitment rate, lower fees increase the upfront payments.

  
  

Pricing and scaling

• Goal: A balanced relationship between short-term cash flow and long-term customer value.

• Formula for price control: Standalone Price Multiplier = ¾ × Continuity Choice Share (%) Example: If 50% of customers are to choose a membership, the unit price is set 1.33 times higher.

• Price psychology is used to control the proportion of subscription customers.

• Long-term goal: A scalable system in which each offering logically builds upon the next, covers costs, and automatically guides customers through the entire value chain.