$100M Offers
How To Make Offers So Good People Feel Stupid Saying No
Oct 22, 2024

Alex Hormozi
#Business
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Brief summary
$100M Offers shows how to design offers that are irresistible to customers. It explains how value, price, target audience, and psychological factors interact to create an offer that clearly stands out from the competition. The focus is on the Grand Slam Offer method, which positions products and services so that they are perceived as unique and high-priced.
General ideas
An irresistible offer makes it hard to say no.
Logical solutions have often been exhausted; psychological ones are more effective.
Demand follows the 80/20 principle: A small portion of the customer base pays many times more.
High-priced offerings create space for quality, growth, and customer success.
The value of an offer increases when the time and effort required from the customer decrease.
Logical vs. psychological solutions:
Logical approaches have usually already been attempted. Instead, psychological methods should be applied that change the experience of the problem. For example: Instead of making trains faster, waiting times can be made more bearable.
Convergent and divergent thinking:
Convergent thinking seeks the one correct solution. Divergent thinking generates many possible solutions. Creative, divergent thinking is often more crucial in business.
The 10x to 1/10 test:
Consider what would change if the customer paid ten times as much or only one-tenth. This allows you to adjust the price accordingly.
Demand is fractal:
Approximately one-fifth of customers are willing to pay five times more. Tiered pricing can double sales.
If offers lose their effectiveness, you can adjust the design, texts, duration, bonuses or pricing structure.
Contents
Pricing
The commodity problem
A company's growth can only be achieved in three ways:
More people are buying the product
Customers are spending more money per purchase.
They buy more often
The problem for many suppliers is that they present themselves as interchangeable commodities. When products are readily available everywhere, competition creates price pressure. This competition leads to a "race to the bottom," where price becomes the decisive purchasing criterion.
To avoid this, a company must focus on perceived value rather than price. The goal is to create an offering that is so different that a direct comparison is no longer possible.
Key figures for growth:
Gross Profit : Revenue less the cost of serving an additional customer.
Lifetime Value (LTV) : The total gross profit generated by a customer over the course of the business relationship.
These two key figures show whether the business is profitable and scalable.
Price vs. value-driven purchases:
Commodity products: are widely available and their price is determined by the market. Customers compare and choose the cheapest offer.
Differentiated products: exist without direct comparison. The price here is based on the value the product delivers. The perceived benefit is crucial, not the price.
The goal is to reach a position where there is no competition and the price is justified by the value.
Grand Slam Offer:
A Grand Slam Offer is an offer so unique that it cannot be replaced by any other product.
It consists of:
An attractive promotion
An unbeatable value proposition
A premium price
A strong guarantee
A payment model that generates revenue while acquiring new customers
This means that market share will be expanded not through discounts, but through a distinctive value proposition.
Finding the right market
The biggest advantage is a target group with strong needs. It's not about creating demand, but about specifically meeting existing demand.
Characteristics of a good market
In Pain: The target audience must experience a specific problem or frustration. When this feeling is precisely described, trust is built. People buy when they feel understood.
Have Money: A profitable market consists of customers who are willing and able to pay for solutions. High-priced offerings require target groups with purchasing power.
Easy to Target: The target audience should be easily reachable. Good indicators are existing channels such as email lists, social media groups, YouTube channels, or other places where the target audience regularly spends time.
Growing: A growing market offers long-term potential. Stagnant or shrinking markets are risky.
The three main markets:
Health, prosperity, and relationships are the three fundamental markets that endure and grow. They form the basis for virtually every profitable business idea.
Market selection guidelines:
A bad market stays bad.
An average market is sufficient and offers opportunities for prosperity.
A great market is rare, but extremely lucrative.
Niche formation:
Companies with less than ten million in annual revenue benefit particularly from niche thinking. The more specific the product or service, the higher the price can be.
Recommendations:
Define the target group clearly
Focus on a niche and stay true to it.
Solving a specific problem of a particular group of people in an unexpected way by reversing their deepest fears
Pricing based on value
Price is what is paid. Value is what is received.
The simplest way to widen the gap between price and perceived value seems to be to lower the price. But that's usually the wrong decision. The goal isn't to gain many customers, but to achieve the highest profit.
A high price signals quality, exclusivity, and trust. Only those who are truly convinced of their own quality can command this price.
Premium prices:
High-priced offers make the following possible:
Better service and higher customer satisfaction
Access to the best professionals
More budget for growth and innovation
Greater error tolerance
At the same time, the emotional value for customers increases. They invest more consciously and appreciate the service more. High-paying customers are more loyal and easier to satisfy.
The goal of the pricing strategy is:
The goal is to charge the highest possible price that reflects the value delivered. The greater the perceived benefit, the lower the price resistance. This creates a healthy balance between value and return, enabling sustainable growth.
Value creation
The value equation
The value of an offer is determined by four factors:
Customer's dream destination
Perceived probability of achieving it
Time until result
Effort and sacrifice
The goal is to increase the first two and minimize the last two. Quick results and minimal effort increase perceived value.
Building a Grand Slam Offer
A Grand Slam Offer is an offer so good that you feel foolish to refuse it. It is structured as follows:
Identify your dream destination
List all the problems and beliefs of the target group.
Finding solutions for every problem
Considerations regarding the type of implementation
Select the right solutions, bundle them, and present them attractively.
Product delivery:
The definition specifies how intensive the contact is, how much effort customers have to put in, and via which medium (personal, digital, video, book) delivery is made.
Strengthening the offer
Scarcity:
Scarcity creates desire. This can be achieved through limited spaces, time-limited bonuses, or never-to-be-repeated promotions.
Urgency:
Time constraints such as seasonal promotions or rising prices encourage quick action.
Bonuses:
Bonuses increase value more than discounts. They should solve specific problems, be clearly defined and priced, and meaningfully complement the main offer.
Guarantees:
Guarantees reduce risk for customers. Types include unconditional, conditional, anti-warranty, and implicit guarantees. They can be creatively named and tiered.
Naming convention:
The name of an offer should be clear, memorable, and focused. Good names include the occasion, the target group, the goal, a timeframe, and a catch-all term like "challenge" or "blueprint."