$100M Offers

alex hormozi, $100m offers, how to make offers so good people feel stupid saying no imagine you could retire forever on your next sale.

sounds crazy, right?

well, maybe you're just not thinking big enough.

according to alex hormozi, the secret to a retire-forever sale lies in creating a grand-slam offer.

a big-ticket offer so irresistible, people would feel stupid turning it down.

most entrepreneurs find themselves in a constant struggle for more clients and more profit, paddling like crazy from month to month but barely keeping their heads above water.

grand-slam offers dissolve both these problems.

grand-slam offers can result in you simultaneously landing more clients and more profit than you know what to do with.

in this chapter, we'll focus on what it takes to create a grand-slam offer.

we'll start by exploring the psychology of pricing and perceived value and then dive into how to differentiate and optimize your specific product or service.

by the end, you'll have a grand-slam offer of your very own, no matter what kind of product you sell.

ready?

then let's get started.

section 1 – business 101 if you swing for the fences, you're going to strike out a lot, but you're also going to hit some home runs.

this quote, taken from a 2015 letter to amazon shareholders from jeff bezos, is a perfect introduction to alex hermosi's idea of the grand-slam offer.

it's no coincidence jeff bezos uses baseball as an analogy for business.

being an entrepreneur means stepping up to the plate and swinging every single day.

and while the difference in effort between striking out, making no sales and hitting a home run, making several sales, is minuscule, the difference in reward is massive.

hitting a grand-slam is the best possible score a batter can get.

slugging a home run with all bases loaded earns that batter four defining runs and a deafening roar from the crowd.

as an entrepreneur, however, you can do even better.

as bezos goes on to say in his letter, in business, every once in a while, when you step up to the plate, you can score 1,000 runs.

hermosi's grand-slam offer, named in homage to both bezos and the significance of such an occurrence in baseball, facilitates just that.

but before we dive into how to build your retire-forever offer, let's first be clear on what an offer is.

business success necessitates customers and clients handing you money.

an offer is how you prompt this exchange by putting forward a product, software for instance, or service, interior design for example, along with the terms and conditions attached.

sounds almost too simple, doesn't it?

when hermosi was 23 years old, his mentor, millionaire travis jones, shared this secret to sales with him.

make people an offer so good they would feel stupid saying no.

present an eye-wateringly good transaction to your customers and clients and you can hit an entrepreneurial grand-slam.

it is actually that simple.

need more convincing?

let's break down the grand-slam offer formula and explore some real-world examples in the next sections.

first stop, pricing.

section 2 – understanding price in hermosi's portfolio of companies, grow or die is a shared mantra.

while this could cue scenes from the hunger games, there's some math behind the motto.

to maintain business success, your enterprise needs to match the growth of the stock market year on year.

so, if the stock market grows 9% this year, your business needs to grow 9% too, just to keep pace.

therefore, anything less than 9% growth is, in a way, entrepreneurial death.

pricing prices is the obvious route to increasing your business's growth.

easier said than done though, right?

when everyone else is in a race to the bottom, charging premium prices for your services, whether that be design or software development, can seem insane.

yet, it's the only way out of this self-defeating pricing war.

at this point, two questions commonly arise.

is my product or service good enough for big-ticket pricing?

and, is big-ticket pricing even ethical?

let's address both of these concerns.

it goes without saying, but your product or service needs to deliver on its promise.

after you fulfill this condition, the more added value you attach to your offer, the more you qualify for big-ticket pricing.

let's take this principle to an extreme to illustrate the point.

imagine you offer your prospect $100,000 in exchange for $10,000.

to you, $10,000 may sound like an exorbitant commission to charge, but to your prospect, it's a once-in-a-lifetime bargain, $90,000 in profit.

while your grand slam offer won't literally trade pounds for pennies, you do want to be this heavy-handed with the value you provide.

on the question of ethics, charging higher prices is often a favor to your prospects.

the greater their financial investment, the greater their emotional investment.

the more they commit their time and energy to your product or service, the more they gain.

and, as a result, they come to place more value on your offer.

paradoxically, higher prices catalyze virtuous cycles.

it's worth mentioning here that having a promising market is critical.

look for a segment of the population that has a problem you can solve, is easy to target, has the necessary purchasing power, and is on the up.

this will ensure you always have enough demand, saving you from constantly running around trying to whip up interest.

ready for the second part of the grand slam offer formula?

next, we'll be taking a closer look at value.

lesson 3.

understanding value price is what you pay, said warren buffett.

value is what you get.

master the psychology of value, and you'll master the art of selling.

as highlighted in the last section, offering disproportionate value is the key to unlocking big-ticket pricing.

but how do you actually do that?

here's where hormozy introduces his value equation.

remember those division equations from high school?

in hormozy's value equation, the numerator, the top half, is your prospect's dream outcome multiplied by the likelihood of their success.

the denominator, the bottom half, is your prospect's time multiplied by their effort.

to create a grand slam offer, an offer with a massive price-to-value discrepancy, you want to increase the numerator and decrease the denominator as much as possible.

you want to over-deliver on the likelihood of your prospect achieving their dream outcome while making it as instant and effortless for them as possible.

those who paid particularly close attention in high school math class may have already spotted the cheat code hidden in hormozy's equation.

anything divided by zero equals infinity.

there's a reason why amazon introduced one-click purchasing and netflix made autoplay its default setting.

both drastically cut the time and effort required of their customers and consumers.

for this equation to work, you need to be crystal clear on what the variables are in your business.

it's worth pulling out a piece of paper and asking yourself, what's the consumer's dream outcome?

is it a celebrity bikini body?

a forever debt-free life?

finding their one true love?

from there, list all the obstacles you can think of that stand between them and their dream outcome.

in this exercise, the more problems you can identify, the better.

remember, if you can minimize or solve every point of resistance, your offer becomes infinitely more valuable.

then, all that's left is to package your bundle of solutions as one irresistible grand slam offer.

and that's exactly what we'll explore in the next two sections.

section 4 – leveraging scarcity and urgency humans crave what they can't have.

think of the pull of a freshly baked brownie when you're on a diet or a sleek new smartphone when you're saving for your first home.

desire is a formidable force.

entrepreneurs who recognize this see their profits skyrocket, not by changing their product or service, but by changing how they present it.

specifically, by wrapping their offer in scarcity and urgency.

the supply and demand curve suggests that the sales sweet spot sits at the midpoint of price and quantity.

hormozy's grand slam offer formula approaches this differently.

instead of perfectly matching supply with demand as per conventional wisdom, hormozy wants you to fall short, to sell out, frequently.

ironically, this approach can give your business greater longevity.

selling at a higher price point builds a comfy profit cushion, and not meeting demand means you'll always have a steady stream of customers or clients.

just be sure to tell people that you sell out each cycle.

urgency is scarcity's partner in crime.

where scarcity stirs up desire based on limited quantity, urgency generates desire based on limited time.

if you offer a product, you could leverage urgency by tying it to seasons and holidays.

for example, if your customers don't buy before 11.59pm on christmas eve, they'll miss out on that item entirely.

if you offer a service, you might leverage urgency by defining a schedule of cohorts.

so, if prospects don't join your upcoming intake, they'll have to wait it out before they have the opportunity again.

not sure if you'll have the strength to turn away sales by presenting your offer as scarce and urgent?

most entrepreneurs don't believe they will either, until they realize their fear is unfounded.

consider that in a week-long campaign, up to 60% of transactions take place in the last 4 hours.

that's up to 60% of sales made in just 3% of the time allotted.

humans aren't logical creatures, so don't sell to rationality.

instead, use these psychological insights to whip up the logic-defying demand your grand slam offer deserves.

section 5 – leveraging bonuses and guarantees but wait, there's more!

remember those late-night infomercials that sang this refrain every 15 seconds?

you may have rolled your eyes at the time, but there's a reason why this catchphrase quickly became ubiquitous.

it worked!

bonuses and guarantees are what truly make an offer too good to be ignored.

even if you don't need the cheese grater, how can you turn down 37 additional kitchen knives and a 6-month money-back guarantee for $39.99?

there's so much upside and so little downside.

leveraging bonuses is far superior to cutting prices.

as the buyer, you perceive goodwill.

as the seller, you protect your profit.

with creativity, you don't even have to worry about devising new products or services to include.

simply break your current offer into component parts and market one or two as bonuses.

your prospect will receive them either way.

your sale just becomes considerably more compelling.

guarantees work in tandem with bonuses, but you'll find the former particularly potent.

humans fear loss more than they crave gain.

unsurprisingly, then, the greatest objection to any offer is the perceived risk.

there are several different types of guarantees you could adhere to, but regardless of the one you choose, hit it hard.

the world's most successful businesses invest the same amount of time, energy, and capital, if not more, in crafting their guarantee as they do in their product or service.

as with the infomercial refrain, some things just work out.

now, all that your grand slam offer lacks is a snazzy name.

fortunately, this step is nice and easy.

start by defining what your product or service is.

are you offering a boot camp, a master class, one-on-one coaching?

then, add a word or two that ties to how you've leveraged scarcity, urgency, bonuses, and guarantees.

for example, four-week lien by halloween boot camp, 80% off master your money master class, or free career clarity coaching call.

and with that, you have your first-ever grand slam offer.

we did say retiring forever was closer to reality than fantasy, didn't we?

you've just listened to our chapter to $100 million offers by alex hormozy.

the key message here is that grand slam offers are the secret to creating big-ticket products or services that sell.

by leveraging the psychology behind pricing and perceived value, you can take your business from barely breaking even to ballooning your bank account, all without investing any more time or energy than you are now, and maybe even less.

instead of continuing to follow conventional wisdom, differentiate and optimize your offer and sell in a category of one.

combined, this approach will land you with an irresistible offer your prospects would feel stupid saying no to.

okay, that's it for this chapter.

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see you in the next chapter.