Alex is my biggest business shadow mentor for the last few years.

I train my CEO Coach AI on this post. You could too.

Shoutout to original posts:

Section I: Start Here

“It’s hard to be poor with leads bangin’ down your door” –Hormozi family jingle

You have to sell stuff to make money. It seems simple enough, but everyone tries to skip to the ‘make money’ part. It doesn’t work. I tried. You need all the pieces. You need the stuff to sell – an offer.

You need people to sell it to – leads. Then you gotta get those people to buy it – sales. Once you put all those in place, then you can make money.

Strangers can only buy your stuff if they know you exist. This takes leads. “Leads” mean a lot of different things to a lot of different people. But most agree that they’re the first step to getting more customers. In simpler terms, it means they’ve got the problem to solve and the money to spend.

Leads don’t magically appear. You need to go get them. More precisely, you need to help them find you so they can buy your stuff! And the best part is, you don’t have to wait…you can force them to find you. You do that through advertising. Advertising, the process of making known, lets strangers know about the stuff you sell. If more people know about the stuff you sell, then you sell more stuff. If you sell more stuff, then you make more money. Having lots of leads makes it hard to be poor.

And in the unforgiving world of business, second chances are hard to come by. So you might as well load up. Advertising is a skill worth having.

When money meets experience… the money gets the experience, and the experience gets the money. Lesson learned.

Every day we don’t do something is one less day giving away my secrets – led to the biggest breakthrough in my life.

Getting leads has been my get out of jail free card with no expiration date. And at this point, it’s faded and worn with use.

The Problem This Book Solves

“Leads, lots of leads.”

You have a problem:

You’re not getting as many leads as you want because you’re not advertising enough. Period. As a result, your potential customers are ignorant of your existence.

How this book solves it:

To make more money, you’ve gotta grow your business. You can only grow your business in two ways:

Get more customers
Make them worth more

You get more customers by getting:

More Leads
Better Leads
Cheaper Leads
Reliably (think ‘from lots of places’).

Bottom line: All else being equal…when you double your leads, you double your business.

Businesses solve problems. Businesses make the world better.

Masters never don’t do the basics.

Section II: Get Understanding

Advertising. Simplified.

Leads Alone Aren’t Enough

“If you cannot explain something in simple terms, then you don’t understand it.” – Dr. Richard Feynman, Nobel Prize Winner in Physics

Alead is a person you can contact .

If you can contact them, they are leads.

Leads alone aren’t enough. We want engaged leads: people who *show* interest in the stuff you sell. If someone gives their contact information on a website, that is an engaged lead. If someone follows you on social media and you can contact them, that is an engaged lead. If people reply to your email campaign, they are engaged leads. The leads showing interest are the leads that matter.

Engaged leads are the true output of advertising

Engage Your Leads: Offers and Lead Magnets

How getting leads actually works…you have to give people something they want. The best part is – it’s easier than you think.

Lead Magnets Get Leads to Engage

Offers are what you promise to give in exchange for something of value. Often, a business promises to give its product or service in exchange for money. This is a core offer. If you advertise your core offer, then you go straight for the sale–the direct path to money.

Advertising your core offer might be all you need to get leads to engage. Try this way first.

Sometimes, though, people want to know more about your offer before they buy. This is common for businesses that sell more expensive stuff. If that’s you, then you’ll often get more leads to engage by advertising with a lead magnet first. A lead magnet is a complete solution to a narrow problem. It’s typically a lower-cost or free offer to see who is interested in your stuff. And, once solved, it reveals another problem solved by your core offer. This is important because leads interested in lower -cost or free offers now are more likely to buy a related higher-cost offer later.

So your lead magnet should be valuable enough on its own that you could charge for it. And, after they get it, they should want more of what you offer. This gets them one step closer to buying your stuff. A person who pays with their time now is more likely to pay with their money later.

Good lead magnets get more engaged leads and customers than a core offer alone, and do it for less money.

Seven Steps To Creating an Effective Lead Magnet

Step 1: Figure out the problem you want to solve and who to solve it for

Step 2: Figure out how to solve it

Step 3: Figure out how to deliver it

Step 4: Test what to name it

Step 5: Make it easy to consume

Step 6: Make it darn good

Step 7: Make it easy for them to tell you they want more

The business that provides the most value wins.

Step 1: Figure out the problem you want to solve and who to solve it for

Every problem has a solution. Every solution reveals more problems. This is the never-ending cycle of business (and life). And, smaller problem-solution cycles sit inside larger problem-solution cycles.

We start by picking a problem that’s narrow and meaningful

Action Step: Pick the narrowly defined problem you want to solve. Then, make sure your core offer can solve the next problem that comes up.

Step 2: Figure out how to solve it

There are three types of lead magnets and each offers a different type of solution.

First, if your audience has a problem they don’t know about, your lead magnet would make them aware of it. Second, you could solve a recurring problem for a short amount of time with a sample or trial of your core offer. Third, you can give them one step in a multi-step process that solves a bigger problem. All three solve one problem

and reveal others. So your three types are: 1) Reveal Problems, 2) Samples and Trials, and 3) One Step Of A Multi-Step Process.

Reveal Their Problem. Think “diagnosis.” These lead magnets work great when they reveal problems that get worse the longer you wait.
Samples And Trials. You give full but brief access to your core offer. You can limit the number of uses, time they have access, or both. This works great when your core offer is a recurring solution to a recurring problem.
One Step Of A Multi-Step Process. When your core offer has steps, you can give one valuable step for free and the rest when they buy. This works great when your core offer solves a more complex problem.

: Pick how you want to solve your narrowly defined problem.

Step 3: Figure out how to deliver it

There are unlimited ways to solve problems. But my favorite lead magnets solve them with: software, information, services, and physical products

Action Step: As a thought exercise, think of a lead magnet and then a version of it for each delivery method. You always can, I promise. Then, pick how to deliver your lead magnet.

Step 4: Test What To Name It

David Ogilvy said, “When you have written your headline, you have spent 80 cents of your (advertising) dollar.” What that means is, five times more people read your headline than any other part of your promotion. They read it and make a snap decision to read further… or not. Like Ogilvy hints, leads have to notice your lead magnet before they can consume it

The three things you’ll want to test are the headline, the image(s), and the subheadline, in that order.

Action Step: Test. If people engage in droves, you’ve got a winner.

Step 5: Make it easy for them to consume

People prefer to do things that take less effort. So if we want more people to take us up on our lead magnet, and consume it, we gotta make it easy.

Action Step: Package your lead magnet in every way you can. It dramatically increases how many engaged leads come your way. And more leads engaging with your lead magnet means more leads getting value from it. This is huge.

Step 6: Make it darn good:

Give Away The Secrets, Sell The Implementation

The marketplace judges everything you have to offer – free or not. And you can never provide too much value. But, you can provide too little. So you want your lead magnet to provide so much value people feel obligated to pay you. The goal is to provide more value than the cost of your core offer before they’ve bought it.

, people buy stuff based on how much value they think they’ll get after they buy it. And the easiest way to get them to think they’ll get tons of value after they buy is… drum roll please… to provide them with value before they buy.

Action Step: 99% of people aren’t gonna buy, but they will create (or destroy) your reputation based on the value of your free stuff. So, make your lead magnets as good as your paid stuff. Your reputation depends on it. Provide value. Stack the deck. Reap the rewards.

Step 7: Make it easy for them to tell you they want more

Once the leads consume the lead magnet, some of them will be ready to buy or learn more about your offer. This is the time to give a Call To Action. A Call To Action (CTA) tells the audience what to do next

Good CTAs have two things: 1) what to do and 2) reasons to do it right now.

What to do: CTAs tell the audience to call the number, click the button, give information, book the call, etc.

. Here are my favorite reasons to act now:

Scarcity– Scarcity is when there is a limited amount of something.
Urgency. You can have unlimited units to sell, but let’s say you stop selling them in an hour… on purpose. I bet more people than normal will buy your thing in that hour. This is urgency in action. Urgency is when people act faster because they have a short amount of time.
Fraternity Party Planner (my favorite) – Make Up A Reason.

Action Step: Give a clear, simple, action-oriented CTA. Then, give them a ‘reason why’ using scarcity, urgency, and any other reasons you can think of. And, do it often. Don’t be clever, be clear.

Remember: the goal is to print money, not just make our “fair share.”

This is where experienced business owners beat newbies.

Step 0: If you’re struggling to get leads, make an amazing lead magnet.

Step 1: Figure out the problem you want to solve for the right customer

Step 2: Figure out how you want to solve it

Step 3: Figure out how to deliver it

Step 4: Make the name interesting and clear

Step 5: Make it easy to consume

Step 6: Make sure it’s darn good

Step 7: Tell them what to do next, why it’s a good idea, do it clearly, and do it oftena good lead magnet does four things:

Engages ideal customers when they see it.
Gets more people to engage than your core offer alone
Is valuable enough that they consume it.
Makes the right people more likely to buy

Section III: Get Leads

The Core Four Advertising Methods.

We get engaged leads by letting people know about our stuff. And there are two types of people we let know: people who know us and people who don’t. And there are two paths of letting them know about it: one-to-one and one-to-many. Those combine into the four basic ways one person can let other people know about anything.

Two Types of Audiences: Warm and Cold

Warm audiences are people who gave you permission to contact them. Think “people who know you” – aka – friends, family, followers, current customers, previous customers, contacts, etc.

Cold audiences are people who have not given you permission to contact them. Think “strangers” – aka – other peoples’ audiences: buying contact lists, making contact lists, paying platforms for access, etc.

Difference matters because it changes how we advertise to them.

Two Ways To Communicate: One to One (Private), One to Many (Public)

We can contact people 1-to-1 or 1-to-many. Another way of thinking about this is private or public communication. Private communication is when only one person gets a message at a time. Think “phone call” or “email.” If you announce something publicly, many people can get it at the same time. Think “social media posts” or “billboards” or “podcasts.”

Section III Outline: Get Leads

Combining warm and cold audiences with 1-to-1 and 1-to-many leads us to the only four ways we can let anyone know about anything: the core four. I combined them below for you.

1-to-1 to a Warm Audience = Warm Outreach

1-to-many to a Warm Audience = Posting Content

1-to-1 to a Cold Audience = Cold Outreach

1-to-many to a Cold Audience = Paid Ads

These are the only four things you can do to let other people know about the stuff you sell. And each method takes us one step closer to the land of overflowing leads

#1 Warm Outreach

How To Reach Out To People You Know

“The world belongs to those who can keep doing without seeing the result of their doing.”

How Warm Reach Outs Work

Warm reach outs are when you make one-to-one contact with your warm audience – aka – the people who know you. It’s the cheapest and easiest way to find people interested in the stuff you sell. It’s super effective–and most businesses don’t do it.

Warm reach outs usually come in the form of calls, texts, emails, direct messages, voicemails, etc.

How To Do Warm Reach Outs in 10 Steps

Step 1: Get your list

Step 2: Pick a platform

Step 3: Personalize your message

Step 4: Reach out

Step 5: Warm them up

Step 6: Invite their friends

Step 7: Make them the easiest offer in the world

Step 8: Start at the top

Step 9: Start Charging

Step 10: Keep Your List Warm

“To get what you want, you have to deserve what you want.” – Charlie Munger

Reply using the A–C–A framework:

Acknowledge what they said. Restate it in your own words.

This shows active listening.

Compliment them on whatever they tell you. Tie it to a positive character trait if you can.

Ask another question. Lead the conversation in whatever direction you want.

we want to get rich, not just “get by.”

#2 Post Free Content Part I

How To Build An Audience To Get Engaged Leads

No one’s ever complained about getting too much value.

“If getting weird messages and hate from people I don’t know is the price I have to pay to make the impact I want to have, I’d pay that price any day of the week.”

If someone is making more money than you, they are better at the game of business in some way. Take it as good news. It means you can learn from them. Don’t think they had it easy. Don’t think they had a shortcut. Don’t tell yourself they broke some moral code. Even if it’s true, none of those beliefs serve you. None of those beliefs make you better.

“You just gotta do more bro.”

Simple. Not easy. Over the next six months I put out ten times the content. Volume works. Content works. A growing

audience is the result.

How Building An Audience Works – You Post Great Free Content

A content unit has three components – Hook, retain, and reward.

The Content Unit – Three Components

Hook attention: get them to notice your content.
Retain attention: get them to consume it.
Reward attention: satisfy the reason they consumed it to begin with.

The smallest amount of material it takes to hook, retain and reward attention is a content unit. It can be as little as an image, a meme, or a sentence.

Hook: They cannot be rewarded unless we first get their attention.

The objective: We give them a reason to redirect their attention from whatever they are doing towards us. If we do that, we’ve hooked them. The effectiveness of your hook is measured by the percentage of people who start consuming your content.

2) Retain

3) Reward

#2 Post Free Content Part II

Monetize Your Audience

“Give-give-give, give-give-give, until they ask”

Give until they ask.

I use two strategies to weave promotions into content: integrated offers and intermittent offers.

Integrated: You can advertise in every piece of content so long as you keep your give : ask ratio high. You will continue to grow your warm audience and get engaged leads. Win-win.

Intermittent: The second way you can monetize is through intermittent asks. Here’s how it works. You make many pieces of content of pure ‘gives’ then occasionally make an ‘ask’ piece. Example: You make 10 ‘give’ posts, and on the 11th, you promote your stuff.

Start making content relevant to your audience. It will make you more money.

7 Lessons I’ve Learned From Making Content

Switch from “How to” to “How I.” From “This is the best way” to “These are my favorite ways” etc.
We Need To Be Reminded More Than We Need To Be Taught:
Puddles, Ponds, Lakes, Oceans.
Content Creates Tools For Salespeople.
Free Content Retains Paying Customers.
People don’t have shorter attention spans, they have higher standards.
Avoid Pre-Scheduling Posts.

#3 Cold Outreach

How To Reach Out To Strangers To Get Engaged Leads

Cold outreach is a numbers game. The more people you reach out to the more engaged leads you get. Once we figure out how much

outreach it takes to engage a lead, then we only have one thing to do…more. Let’s go hunting!

Problem #1: “But how do I contact them?” →Build a List

There are three different ways I get my targeted lead lists. First, I use software to scrape a list of names. Second, I pay brokers to assemble me a list of targeted leads. And if neither of those work, I manually scrape a list of names myself.

Problem #2: “I have my list, but what do I say to them?” →Personalize, Then Give Big Fast Value

They Don’t Know Us→Personalize (Act Like You Know Them).
They Don’t Trust Us→Big Fast Value.

Problem #3: “I’m not getting enough chances to tell people about my amazing stuff, what do I do?” → Volume

Automated Delivery.

Automated Examples: We can send a pre-recorded voice memo to someone’s direct messages. We can send a pre-recorded voicemail to someone’s voicemail box. We can send templated emails to an inbox or

templated text to someone’s phone. We can send a pre-recorded video. Etc. You record your message one time and then send the same message to everyone.

Automate Distribution.

Follow up. More times. More ways.

seven enormous benefits to using cold outreach:

You don’t need to create lots of content or ads.
Your competition won’t know what you’re doing.
It’s incredibly reliable.
Fewer platform changes.
Compliance is less painful.
No spokesperson = Sellable business.
Hard to copy.

#4 Run Paid Ads Part I: Making An Ad

How To Publicly Advertise to Strangers

Advertising is the only casino where, with enough skill, you become the house.

How Paid Ads Work

Paid ads are a way to advertise one-to-many to cold audiences. People who don’t know you. Paid ads work by paying another person or business to put your offer in front of their audience. Think of it like renting eyeballs or earballs. And because you don’t need to spend time building an audience, paid ads are the fastest way to get the most people to see your stuff– You trade money for reach. A considerable advantage when you know what you’re doing. Ads are riskier. But, when done right, they can get you more leads than any other method.

With warm and cold outreach we have to do more stuff to reach more people. To reach more people with free content, we depend on the platform or audience sharing it if they feel like it. Paid ads are different. The reach is guaranteed. But getting your money back isn’t. So it’s a game of efficiency rather than reach.

How I create more efficient paid ads by finding needles in the haystack. I start with the entire world as my audience (haystack) then narrow down to get a higher percentage of engaged leads (needles). First, I pick a platform that contains my ideal audience. Second, I use whatever targeting methods that exist within the platform to find them. Third, I craft my ad in a way that repels anyone else. Finally, I tell whoever’s left standing to take the next step. People overcomplicate it. But that’s it. That’s all we’re doing – narrowing down who sees our ad so we have the highest chance of getting the right type of people to respond.

Once we advertise profitably in a small puddle of an audience, we expand to a pond, then a lake, then an ocean.

Paid ads give us four new problems to solve.

Knowing where to advertise
Getting the right audience to see it
Making the best ad for them to see
Getting permission to contact them

The What: Eight Key Elements

Dream Outcome: A good ad will show and tell the maximum benefit the prospect can achieve using the thing you sell.
Opposite – Nightmare: A good ad will also show them the worst possible hassles, pain, etc. of going without your solution.
Perceived Likelihood of Achievement: Because of past failures, we assume that even when we buy, there’s a risk we don’t get what we want.
Opposite – Risk: A good ad will also show them how risky it is to not
Time Delay: A good ad will also show them how slow their current trajectory is or that they’ll never get what they want at their current rate…
Opposite – Speed: To get things we want – we know we have to spend time getting them.
Effort and Sacrifice: A good ad will also show them the amount of work and skill they’ll need to get the result without your solution.
Opposite – Ease: To get things we want – we know we have to change something.

Those are the 8 key elements. Now we fully understand The What – how we deliver the four value elements, and how we avoid their four opposites. We now go to the next W – The Who.

Who: Humans are primarily status driven. And the status of one human comes from how the other humans treat them.

When: People often only think of how their decisions affect the here and now.

Putting the What, the Who, and the When together, we answer WHY they should be interested.

3) CTA – Tell Them What To Do Next

If your ad got them interested, then your audience will have huge motivation… for a tiny time. Take advantage. Tell them exactly what to do next. S-P-E-L-L it out: Click this button. Call this number. Reply with “YES.” Go to this website. Scan this QR Code

(wink). So many ads still don’t do this. Your audience can only know what to do if you tell them.

Step #4 “How do I get their info?” → Get Permission To Contact Them

After they take the action–Get. Their. Contact. Information. My favorite way to get contact information is a simple landing page.

And make your landing pages match your ads. People click an ad because you promised them some benefit. So carry that same look and language over to your landing page.

#4 Run Paid Ads Part II: Money Stuff

“I’m just trying to buy a dolla’ and sell it for two” – Proposition Joe, The Wire

“But how much do I spend on paid ads?”→ The Three Phases of Scaling Paid Ads

There are three stages to spending money on ads as I see it.

Phase One: Track Money

Phase Two: Lose Money

Phase Three: Print Money

You have two big levers to improving LTGP:CAC:

Make CAC lower – Get cheaper customers. We do this with more efficient ads following the steps we just outlined.

Make LTGP higher – Increase how much you make per customer. We do this with a better business model.

For maximum money… I prefer to do both.

The cost to acquire customers, between competitors in the same industry, is much closer than you’d think. The difference between the winners and the losers is how much they make off each customer.

Bottom Line: Figure out a way to get your customers to pay you back in the first thirty days so you can recycle your cash to get more

customers.

Personal Lessons from Paid Ads

Don’t Confuse Sales Problems With Advertising Problems.

Your Best Free Content Can Make The Best Paid Ads. f You Say You Suck At Something, You Will Probably Suck At It.

Paid Ads Part II Conclusion

Paid ads are the fastest way to scale how many leads you get.

Paid ads is the last of the core four ways a single person can let other people know about their stuff.

Core Four On Steroids: More Better New

“If at first you don’t succeed, use force.”

More, Better, New.

Simply stated:

You can do more of what you’re currently doing.
You can do what you’re currently doing better.
You can do it somewhere new.

Here’s how I do more: The Rule of 100

The rule of 100 is simple. You advertise your stuff by doing 100 primary actions every day, for one hundred days in a row. That’s it. I don’t make many promises, but this is one. If you do 100 primary actions per day, and you do it for 100 days straight, you will get more engaged leads. Commit to the rule of 100 and you will never go hungry again.

Warm Reach Outs:

100 reach outs per day

Post Content:

100 minutes per day making content.

Cold Reach Outs:

100 reach outs per day

Paid Ads:

100 minutes per day making paid ads

Better

Getting better gets you more leads for the same effort. We want that. And you can only get better by doing one thing–testing. So you do more and more… until it breaks.

Thousands of these tiny tests separate the winners from the beginners.

New

So after you’ve improved your marketing efforts through ‘more’ and ‘better’ the only thing you have left is – ‘new places in new ways.’ In simple terms–new.

Section IV: Get Lead Getters

Get people who get you more leads

Someone with internet can send a message to millions of people at once. Someone writing postcards by hand can’t. The internet allows us to reach more people for the same time spent. So, it’s higher leverage.

That means leverage boils down to how much we get for the time we spend getting it. So we want to use higher leverage activities to get what we want. More stuff we want. Less time getting it. Good.

Lead Getters Give You Leverage

People can find out about the stuff we sell from two sources. We can let them know using the core four. Or, other people can let them know using the core four. I call these other people lead getters. When other people do it for us, we save time. That means we get more engaged leads for less work. Leverage baby.

Work: LOW. Leads: HIGH. Leverage: HIGHEST.

Now you’ve got the makings of a $100M Leads machine.

Outline of The “Lead Getters” Section

The lead getters aren’t part of the “core four” because they’re not things you do. You do not ‘do’ affiliates or ‘do’ customer referrals or ‘do’ agencies or ‘do’ employees. But, you have to do the core four to get them. They come from warm outreach, cold reach outs, posting content, and running paid ads. And once you get them, they do it for you.

The following chapters explain, in detail, how to get other people to advertise for you. And, if you want to scale to $100M+, you have to understand them:

#1 Customers– they buy your stuff then tell other people about it to get you leads.

#2 Employees– people in your business that get you leads.

#3 Agencies- businesses with services that get you leads.

#4 Affiliates– businesses who tell their audiences about your stuff to get you leads.

#1 Customer Referrals – Word of Mouth

“The best source of new work, is the work on your desk” – Charlie Munger

The best advertising is a happy customer. An amazing product turns every customer into a lead getter.

The world loses trust by the second. Every day, more customers do their research. They arm themselves with information to make purchasing decisions. As well they should. So to play at higher levels, we need our product to not only deliver… but delight.

Customers must get so much value it compels them to tell other people about us. The good news is, once you know how, it’s easier than you think.

How Referrals Work

A referral happens when somebody, a referrer, sends an engaged lead to your business. Anyone can refer, but the best referrals come from your customers.

How Referrals Grow Your Business

Referrals are important because they grow your business in two ways:

They’re worth more (higher LTGP). Referrals buy more expensive stuff and buy it more times. They also tend to pay in cash upfront. Lovely.
They cost less (lower CAC). If one customer sends you another customer because they like your stuff, that new customer costs you nothing. And free customers are cheaper than customers that cost money. So free customers = good.

Referrals are exponential.

With word of mouth, one customer brings two. Two bring four. Four bring eight. And so forth. It’s not linear, it’s exponential.

Nothing scales like word of mouth.

Two Reasons Most Businesses Don’t Get Referrals

Most businesses don’t get referrals for two reasons. First, their product isn’t as good as they think it is. Second, they don’t ask for them.

Price is what you charge. Value is what they get. The difference between price and value is goodwill.

Six Ways To Get More Referrals By Giving More Value

There are six ways I get referrals by giving more value. And it just so happens to map to the parts of an ad. Neat-o.

Call Outs → Sell Better Customers

Dream Outcome → Set Better Expectations

Increase Perceived Likelihood of Achievement → Get More People Better Results

Decrease Time Delay → Get Faster Results

Decrease Effort and Sacrifice → Keep Making Your Stuff Better

Call to Action → Tell Them What To Buy Next

Referrals: Ask For Them

Do you know why businesses have so few referrals compared to what they could have? They never ask for them. Your customers, like any audience, can only know what to do if you tell them.

Seven Ways To Ask For Referrals

One-Sided Referral Benefit
Two-Sided Referral Benefits
Ask For A Referral Right When They Buy
Add Referrals As A Negotiation Chip
Referral Events
Ongoing Referral Programs
Unlockable Referral Bonuses

I am compensated tomorrow for the value I provide today.

#2 Employees

“If you want to go fast, go alone. If you want to go far, go together” – African Proverb

How Employees Work

Bottom Line: Employees make a fully functioning enterprise that grows without you.

Why Employees Make You Wealthy

For your business to run without you, other people need to run it.

Reminder: You get rich from what you make. You become wealthy from what you own.

#3 Agencies

“Everything is for sale”

#4 Affiliates and Partners

“Nothing makes friends like money”

Why You Want An Affiliate Army

Each affiliate you get adds another stream of leads and customers. So recruiting, activating, then integrating with an army of affiliates causes crazy scaling, fast. That’s good. We want that.

Affiliate strategies

Step 1: Find Your Ideal Affiliates

Step 2: Make Them an Offer

Step 3: Qualify Them

Step 4: Figure Out What To Pay Them

Step 5: Get Them Advertising

Step 6: Keep Them Advertising

there are two ways to create a compounding business. You can find more people that never stop buying your stuff or you can find more people who never stop selling it for you. Referrals are the former. Affiliates are the ladder.

Advertising always works, it’s only a matter of efficiency. So once you start, keep going until it works.

Section IV Conclusion: Get Lead Getters

“The last skill you ever need to learn is how to get other people to do everything you need for you.”

We do the core four to get engaged leads: warm outreach, post content, cold outreach, and paid ads. And we use them to get two types of engaged leads: the ones that become customers, or the ones we turn into lead getters. Lead getters come in four flavors: Referrers, Employees, Agencies, and Affiliates. Each have key strengths:

Customer referrals have the biggest potential for low-cost exponential growth.

Employees have your direct influence and run your business on your behalf.

Agencies teach skills you keep forever and can transfer to your team.

Affiliates, once you get them going, can operate entirely on their own.

Section V: Get Started

“It’s not the end. It’s not even the beginning of the end. But it is, perhaps, the end of the beginning” – Winston Churchill

So test until you find something that works. Take massive action. Stay focused. Double down on it until it breaks. Then test until you find the next thing that works, and double down on that. Taking these leaps are the only way to unlock the business you want and the life that comes with it. And maybe, slay your judgment demon too.

So from now on…

You either win or you learn.

If some is good, more is better.

Neil Strauss once said “Success comes down to doing the obvious thing for an uncommonly long period of time without convincing yourself you’re smarter than you are.”

If you want to take your advertising to the next level – work until the job is done. Give up the idea of ‘doing your best.’ Instead, do what is required. And sometimes that means your best just needs to get better.

How I Make Open To Goal Work For Myself

If I had to pick the three habits that best served me in my life – they would be:

Waking up early (4-5 am)–Pro tip, this actually means going to bed early…
Getting right to work–No rituals. No routines. I drink coffee and get to work.
No meetings until noon–No interruptions. Nothing. Fully focused work time.

“Do more than they do, and you will have more than they have.”

$100M Offers

Alex Hormozi

Summary, Notes and Highlights

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

Table of Contents

These are my notes and highlights from the book $100M Offers (OP affiliate link) by Alex Hormozi.

🤔 What Is This Book About?

This book contains tips and strategies on how to create an offer so good that it seems like a no-brainer for someone to accept it.

👤 Who Should Read It?

This book is a must read for entrepreneurs and anyone who is involved in selling something.

💡 Highlights & Notes

“Make people an offer so good they would feel stupid saying no.” Travis Jones

I’m going to be an entrepreneur so I can be free. Free to do whatever I want, whenever I want, with whomever I want.

Much to the disappointment of the idealists on the sidelines, succeeding in business means getting prospective customers to trade us money for our services.

The only way to conduct business is through a value exchange, a trade of dollars for value.

No offer? No business. No life. Bad offer? Negative profit. No business. Miserable life. Decent offer? No profit. Stagnating business. Stagnating life. Good offer? Some profit. Okay business. Okay life. Grand Slam Offer? Fantastic profit. Insane business. Freedom.

it is far better to have understood why you failed than to be ignorant of why you succeeded.

Although you can make the list of problems you face a mile long, which is a great way to stress yourself out, all these problems typically stem from two big kahunas: Not enough clients

Not enough cash (excess profit at the end of the month)

As Einstein says, “never memorize anything you can look up.”

Section I: How We Got Here (You Just Finished It)
Section II: Pricing: How To Charge Lots of Money For Stuff
Section III: Value: Create Your Offer: How To Make Something So Good People Line Up To Buy
Section IV: Enhancing Your Offer: How To Make Your Offer So Good They Feel Stupid Saying No
Section V: Next Steps: How To Make This Happen In The Real World

The market is continuously growing. The stock market grows at 9 percent per year. If we aren't growing at 9 percent per year, we are falling behind. “Maintenance,” in the most generic sense, would be 9 percent growth year over year. Furthermore, if you’re in a growing marketplace, then you might have to grow at 20-30 percent per year, just to keep up, or risk falling behind. So you can see how maintenance is a myth.

So, then, what does it take to grow? Thankfully, just three simple things: Get more customers
Increase their average purchase value
Get them to buy more times

If you want to grow, you’ve got to either sell more clients every month (while maintaining suitable margins) or have them be worth more (by increasing the profit per purchase or number of times they buy). That’s it.

Gross Profit: The revenue minus the direct cost of servicing an ADDITIONAL customer. If I sell lotion for $10 and it costs me $2, my gross profit is $8 or 80 percent.

Lifetime Value: The gross profit accrued over the entire lifetime of a customer. This is gross profit multiplied by the number of purchases an average customer will make over their lifetime.

Note that the indirect costs, like admin, software, rent, etc., are not included in LTV.

In short, having a Grand Slam Offer helps with all three of the requirements for growth: getting more customers, getting them to pay more, and getting them to do so more times.

Commoditized = Price Driven Purchases (race to the bottom) Differentiated = Value Driven Purchases (sell in a category of one with no comparison. Yes, market matters, which I will expound on in the next chapter)

A commodity, as I define it, is a product available from many places. For that reason, it’s prone to purchases based on “price” instead of “value.” If all products are “equal,” then the cheapest one is the most valuable by default.

In other words, if a prospect compares your product to another and thinks “these are pretty much the same, I’ll buy the cheaper one,” then they commoditized you.

This is a massive problem for the entrepreneur because commodities are valued at the point of market efficiency.

It’s 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, and an unbeatable guarantee with a money model (payment terms) that allows you to get paid to get new customers . . . forever removing the cash constraint on business growth.

In other words, it allows you to sell in a “category of one,” or, to apply another great phrase, to “sell in a vacuum.”

The resulting purchasing decision for the prospect is now between your product and nothing.

As a result, it gets you more customers, at higher ticket prices, for less money.

But if one business uses a Grand Slam Offer and another uses a “commodity” offer, the Grand Slam Offer makes that business appear as if

it has a totally different product — and that means a value-driven, versus price-driven, purchase.

Your Grand Slam Offer, however, forces a prospect to stop and think differently to assess the value of your differentiated product.

You are forced to be priced “competitively” to get clients and to stay that way to keep them. If the client sees a cheaper version of the “same thing,” then the value discrepancy will cause them to swap providers.

We want to make an offer that’s so different that you can skip the awkward explanation of why your product is different from everyone elses (which, if they have to ask, then they are probably too ignorant to understand the explanation) and instead just have the offer do that work for you. That’s the Grand Slam Offer

Breakdown: You spend the same amount of money for the same eyeballs. Then, you get 2.5x more people to respond to your advertisement because it’s a more compelling offer. From there, you close 2.5x as many people because the offer is so much more compelling. From there, you are able to charge a 4x higher price up front. The end result is 2.5 x 2.5 x 4 = 22.4x more cash collected up front. Yes, you spent $10,000 to make $112,000. You just made money getting new customers.

If you play the same game everyone else does, you’ll get the same results everyone else does (mediocre).

You could have the worst hot dogs, terrible prices, and be in a terrible location, but if you’re the only hot dog stand in town and the local college football game breaks out, you’re going to sell out. That’s the value of a starving crowd.

At the end of the day, if there is a ton of demand for a solution, you can be mediocre at business, have a terrible offer, and have no ability to persuade people, and you can still make money.

But we can all be blinded as entrepreneurs because we don't like to give up.

Serve the people who can pay you what you’re worth.

In order to sell anything, you need demand. We are not trying to create demand. We are trying to channel it.

I define as a market that is growing at the same rate as the marketplace and that has common unmet needs that fall into one of three categories: improved health, increased wealth, or improved relationships.

Massive Pain They must not want, but desperately need, what I am offering.

Being broke is painful.

The degree of the pain will be proportional to the price you will be able to charge (more on this in the Value Equation chapter). When they hear the solution to their pain, and inversely, what their life would look like without this pain, they should be drawn to your solution.

I have a saying I use to train sales teams “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.

The point of good writing is for the reader to understand. The point of good persuasion is for the prospect to feel understood.

Purchasing Power

your audience needs to be able to afford the service you’re charging them for.

Make sure your targets have the money, or access to the amount of money, needed to buy your services at the prices you require to make it worth your time.

Easy to Target

If our potential customers are all gathered together somewhere, then we…

For instance, you may want to serve rich doctors. But if your ads are being displayed to nursing students, your offer will fall on…

Main point: you want to make sure you can target your ideal…

4)…

Business is hard enough, and markets move quickly. So you might as well find a good market to give you a…

There are three main markets that will always exist: Health, Wealth, and Relationships. The reason that those will always exist is that there is always tremendous pain when you lack them. There is always demand for solutions to these core human pains. The goal is to find a smaller subgroup within one of those larger buckets that…

Because senior citizens who are alone are likely suffering more pain as they are nearer their deaths (pain), have more buying power (money), and are easy to find (targeting). Lastly, at the time of this writing, there are…

Think about what you are good at in regards to health, wealth, and relationships. Then think about who might value your service the most (is in the most pain), has the buying power to pay what you…

Order of Importance: Three Levers…

That being said, here’s the simplest illustration of the order of importance between markets,…

Starving Crowd (market) > Offer Strength >…

A “great” rating on a higher-order piece overpowers anything else lower on…

A “bad” stops the equation unless a “great” from a higher priority component nullifies it.…

Even if you have a bad offer and are bad at persuasion, you’re going to make money if…

If you are in a normal market and have a Grand Slam Offer (great), you can make tons of money even if…

Let’s say you’re in a normal market and have a normal offer. In order to be massively successful, you would have to be…

Commit to the…

Too often, a newer entrepreneur half-heartedly tries one offer in one market, doesn't make a million dollars, then mistakenly thinks “this is a bad market.” Most times that’s not actually the case. They just haven’…

You must pick one. No one can serve…

All businesses and, all markets, have unpleasant characteristics. The grass is never greener once…

You must stick with whatever you pick long enough to have…

But you will fail far longer if you keep changing who you market to, because you must start over from the beginning…

For context, many companies expanded to $30M+ per year serving a single niche: Chiropractors, Gyms, Plumbers, Solar, Roofers, Salon Owners, etc. If you are at $1M or $3M, thinking you have capped and must expand, you are wrong. You just need to be better.

It was what took me from doing acquisition for anyone to teaching it to a specific avatar.

But in order to maintain product focus, and high converting messaging, knowing exactly who the product was for was a game changer.

Reason: you can literally charge 100x more for the exact same product.

You want to be ‘the guy’ who services ‘this type of person’ or solves ‘this type of problem.’

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

If you try one hundred offers, I promise 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. So, try again. You’ll never become world class if you stop after a failed attempt.

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

Making shit loads of money breaks people’s minds. It literally stretches their minds so far past what they believe is possible they assume you are doing something wrong or illegal.

Enough money that it would take me literally ten lifetimes to make what they make in a year.

In order to understand how to make a compelling offer, you must understand value.

The reason people buy anything is to get a deal.

They believe what they are getting (VALUE) is worth more than what they are giving in exchange for it (PRICE).

Warren Buffet said, “Price is what you pay. Value is what you get.”

Getting people to buy is NOT the objective of a business. Making money is.

So, unless you have a revolutionary way of decreasing your costs to 1/10th compared to your competition, don't compete on price.

“There is no strategic benefit to being the second

cheapest in the marketplace, but there is for being the most expensive.”

In other words, we will raise our price only after we have sufficiently increased our value.

Most business owners are not competing on price or value. In fact, they’re not actually competing on anything at all. Their pricing process typically goes something like this: Look at marketplace See what everyone else offers Take the average Go slightly below to remain “competitive” Provide what their competitors offers with a “little more” End up at a value proposition of “more for less”

In plain words, pricing this way means you are providing a service at just above what it costs for you to stay above water.

When you decrease your price, you . . . . . . Decrease your clients’ emotional investment since it didn’t cost them much . . . Decrease your clients’ perceived value of your service since it can’t be that good if it’s so cheap, or priced the same as everyone else . . . Decrease your clients results because they do not value your service and are not invested . . . Attract the worst clients who are never satisfied until your service is free . . . Destroy any margin you have left to

be able to actually provide an exceptional experience,

When you raise your prices, you . . . . . . Increase your clients’ emotional investment . . . Increase your clients’ perceived value of your service . . . Increase your clients’ results because they value your service and are invested . . . Attract the best clients who are the easiest to satisfy and actually cost less to fulfill, and who are the most likely to actually receive and perceive the most relative value . . . Multiply your margin because you have money to invest in systems to create efficiency;

When you raise your price, you increase the value the consumer receives without changing anything else about your product.

What the tasters didn’t know is that the researchers gave them the exact same wine all three times. Yet, the tasters reported a wide discrepancy between the “high priced” wine and the “cheap” wine.

People want to buy expensive things.

the goal is to be so much higher that a consumer thinks to themselves, “This is so much more expensive, there must be something entirely different going on here.”

if you offer a service where a customer must do something in order to achieve the result, or solve the problem you say you solve, they must be invested.

The more invested they are, the more likely they are to achieve the positive result.

pricing your services or product in such a way that it stings a little when they buy.

And if your customers are more adherent and follow through, and if they achieve better results with your service than your competition, then you are in a very real way providing more value than anyone else.

Your product must deliver.

In the real world, to have the “gonads” to charge big ticket prices, you must outwork your self doubt.

You must be so confident in your delivery, because you have done it so many times, that you know that this person will succeed. Experience is what gives you the conviction to ask for someone’s entire year’s salary as payment.

When I entered the space, low-price competitors offered full-service marketing for $500 per month, with a single high-price competitor charging $5,000 for his product.

So, we came in at three-times the highest-priced player and 32 times more than the lower-priced players.

So for many of them, they were committing to half of their yearly pay or more to buy our program.

First and foremost, charge a premium. It will allow you to do things no one else can to make your clients successful.

In a real way, we were charging on a fraction of what our clients made using our system. This is important. Our clients still got a deal.

The truth is that 99 percent of businesses need to raise their prices to grow, not lower them.

“We question all of our beliefs, except for the ones we really believe in, and those we never think to question.” Orson Scott Card

charge as much money for your products or services as humanly possible.

You need to have a big discrepancy between what something costs you and what you charge for it. It is the only way to be unreasonably successful.

The reality is that, yes, you should never charge more than your product is worth.

But you should charge far more for your product and services than it costs to fulfill it. Think up to a hundred times more, not just two or three times more.

As you can see from the picture, there are four primary drivers of value. Two of the drivers (on top), you will seek to increase. The other two (on the bottom), you will seek to decrease. (Yay) The Dream Outcome (Goal: Increase) (Yay) Perceived Likelihood of Achievement (Goal: Increase) (Boo) Perceived Time Delay Between Start and Achievement (Goal: Decrease) (Boo) Perceived Effort & Sacrifice (Goal: Decrease)

What will I make? (Dream Outcome) How will I know it's going to happen? (Perceived Likelihood of Achievement) How long will it take? (Time Delay) What is expected of me? (Effort & Sacrifice)

The harder, and more competitive, are the Time Delay and Effort & Sacrifice. The best companies in the world focus all their attention on the bottom side of the equation.

Apple made the iPhone effortless compared to other phones at the time. Amazon made purchasing a single click of a button and made purchases arrive almost immediately

So, the older I get, the more I have shifted my focus to “the hard stuff” — decreasing the bottom side of the equation. And I believe the better you do this, the more you will be rewarded by the marketplace.

If you can make the bottom part of the equation equal to zero, you’re golden.

In other words, if you can reduce your prospects' true time delay to receiving value to zero (aka you realize your immediate dream outcome), and your effort and sacrifice is zero, you have an infinitely valuable product. If you accomplish this, you win the game.

Imagine clicking the purchase button on a weight loss product and instantly seeing your stomach turn into a six-pack. Or imagine hiring a marketing firm, and as soon as you sign your document, your phone begins ringing with new highly qualified prospects. How valuable would these products/services be? Infinitely valuable. And that’s the point.

The Grand Slam Offer only becomes valuable once the prospect perceives the increase in likelihood of achievement, perceives the decrease in time delay, and perceives the decrease in effort and sacrifice.

The biggest increase in rider satisfaction (aka value) was never from faster trains to decrease wait times. Instead, it was from a simple dotted map that showed them when the next train was coming and how long they had to wait.

As a business owners and entrepreneurs I increasingly approach problems to find psychological solutions, rather than logical ones.

“Any fool can sell a product by offering it for a discount, it takes great marketing to sell the same product for a premium”

Logical solution: make trains faster to increase satisfaction Psychological solution: decrease the pain of waiting by adding a dotted map Psychological solution: pay models to be the hostesses on the trip (people would wish it took longer to get to their destination!) Logical solution: make elevator faster Psychological solution: add floor to ceiling mirrors so people are distracted staring at themselves and forget how long they were on the elevator Logical solution: make it cheaper Psychological solution: make fewer of them and raise the price which causes people to want it more.

#1 Dream Outcome (Goal = Increase)

Our goal is not to create desire. It’s simply to channel that desire through our offer and monetization vehicle.

The dream outcome is the expression of the feelings and experiences the prospect has envisioned in their mind. It’s the gap between their current reality and their dreams.

. . To be perceived as beautiful . . . To be respected . . . To be perceived as powerful . . . To be loved . . . To increase their status

Talk in terms of things your prospect believes will increase their status, and you will have your prospects drooling.

Pro Tip: Frame benefits in terms of status gained from the viewpoint of others When writing copy, you can make it that much more powerful by talking about how other people will perceive the prospect’s achievement. - Note: Do software developers care about job title, senior, staff or pay more? Probably pay as most are men.

That being said, when comparing two products or services that satisfy the same desire, the value from the dream outcomes will cancel out (since they are the same). It will be the other three variables that drive the difference in perceived value, and ultimately price.

Simply put: if two things make someone beautiful, what makes one worth $50,000 and another $5? Answer: The extent of the other three value variables.

#2 Perceived Likelihood of Achievement (Goal = Increase)

Then I realized people pay for certainty. They value certainty. I call this “the perceived likelihood of achievement.”

“How likely do I believe it is that I will achieve the result I am looking for if I make this purchase?”

Increasing a prospect’s conviction that your offer will “actually” work for them, will make your offer that much more valuable even though the work remains the same on your end.

So to increase value with all offers, we must communicate perceived likelihood of achievement through our messaging, proof, what we choose to include or exclude in our offer, and our guarantees (more on these later).

#3 Time Delay (Goal = Decrease)

Time delay is the time between a client buying and receiving the promised benefit. The shorter the distance between when they purchase and they receive value/the outcome, the more valuable your services or product is.

The thing people buy is the long-term value, aka their “dream outcome.” But the thing that makes them stay long enough to get it is the short-term experience.

We try and tie as many of these as possible into any service we offer. We want clients to have a big emotional win early (as close as possible to their purchase). This gives them the emotional buy in and the momentum to “see it through” to their ultimate goal.

One way we do this is to get their ads live and get them to close their first $2,000 sale within their first seven days. By doing this, their decision to work with us is reinforced, and they immediately trust us more.

Pro Tip: Fast Wins Always try and incorporate short-term, immediate wins for a client. Be creative. They just need to know they are on the right path and that they made the right decision trusting you and your business.

That being said, having to wait 12 to 24 months to get what you want is a long time when you can do liposuction and be done in an afternoon. This shows just one of the reasons people pay $25,000 for liposuction with a tummy tuck, while people will barely pay $100/mo to join a bootcamp.

Pro Tip: Fast Beats Free The only thing that beats “free” is “fast.” People will pay for speed. Many companies have entered free spaces and done exceedingly well with a “speed first” strategy.

#4 Effort & Sacrifice (Goal = Decrease) This is what it “costs” people in ancillary costs, aka “other costs accrued along the way.” These can be both tangible and intangible.

This is why when you sell fitness, you have to spend an hour arm-wrestling a client to give over 1/10th to 1/100th of the amount of money they pay for surgery. There's just not a lot of perceived value because the perceived likelihood of achievement, the time delay to achievement, and the effort and sacrifice are so high.

Decreasing the effort and sacrifice, or at least the perceived effort and sacrifice, can massively boost the appeal of your offer.

This is why “done for you services” are almost always more expensive than “do-it-yourself” because the person doesn't have all the effort and sacrifice. There is also a component of “perceived likelihood of achievement” difference as well. People believe that if an expert does it, then they will be more likely to achieve the outcome than if they try on their own.

“He who said money can’t buy happiness, hasn’t given enough away.” Unknown

“If at first you don't succeed, try, try, try again.” Thomas H. Palmer, Teacher’s Manual

In simple terms, convergent problem solving is where you take lots of variables, all known, with unchanging conditions and converge on a singular answer.

Step #1: Identify Dream Outcome I had heard of weight loss challenges, so I started there. Lose 20lbs in 6 weeks. Big dream outcome - lose 20lbs. With a decreased time delay - 6 weeks. Note: I wasn't selling my membership anymore. I wasn’t selling the plane flight. I was selling the vacation. When you are thinking about your dream outcome, it has to be them arriving at their destination and what they would like to experience.

Step #2: List Problems

When listing out problems, think about what happens immediately before and immediately after someone uses your product/service.

Think about it in insane detail. If you do, you will create a more valuable and compelling offer as you’ll continually be answering people’s next problem as it manifests..

Example Problem List: Weight Loss First thing they must do: Buying healthy food, grocery shopping Buying healthy food is hard, confusing, and I won’t like it Buying healthy food will take too much time Buying healthy food is expensive I will not be able to cook healthy food forever. My family’s needs will get in my way. If I travel I won’t know what to get.

Next thing they must do: Cooking healthy food Cooking healthy food is hard and confusing. I won’t like it, and I will suck at it. Cooking healthy food will take too much time Cooking healthy food is expensive. It’s not worth it. I will not be able to buy healthy food forever. My family’s needs will get in my way. If I travel I won’t know how to cook healthy.

Each of the above problems has four negative elements. And you guessed it, each aligns with the four value drivers as well.

Step #3: Solutions List

First, we are going to first transform our problems into solutions. Second, we are going to name these solutions.

What we’re going to do is simply turn them into solutions by thinking, “What would I need to show someone to solve this problem?” Then we are going to reverse each element of the obstacle into solution-oriented language. This is copywriting 101.

The second half of making your offer is breaking down tactically what we are going to do/provide for our client.

That being said, if this is your first Grand Slam Offer, it’s important to over-deliver like crazy.

You want them to think to themselves, “I get all this, for only that?” In essence, you want them to perceive tremendous value.

Everyone buys bargains. Some people just buy $100,000 things for only $10,000.

Whenever you are building a business, you have a continuum between ease of fulfillment and ease of sales. If you lower what you have to do, it increases how hard your product or service is to sell. If you do as much as possible, it makes your product or service easy to sell but hard to fulfill because there’s more demand on your time investment.

I have always lived by the mantra, “Create flow. Monetize flow. Then add friction.” This means I generate demand first. Then, with my offer, I get them to say yes. Once I have people saying yes, then, and only then, will I add friction in my marketing, or decide to offer less for the same price.

When talking to business owners about their model, I tell them to create cash flow by over-delivering like crazy at first.

Then use the cash flow to fix your operations and make your business more efficient.

You may just end up creating systems that create the same value for the customer but cost you significantly less resources.

Step #4 Create Your Solutions Delivery Vehicles (“The How”)

The next step is thinking about all the things you could do to solve each of these problems you’ve identified.

What could you do that someone would immediately say, “All that? Seriously? Yes, I'm in.”

The goal here is to push your limits and jog your brain into thinking of a different version of the solution you’d normally default to.

I like to group things by how many people I'm going to deliver this thing to at once.

Product Delivery Cheat Codes

What level of personal attention do I want to provide? one-on-one, small group, one to many What level of effort is expected from them? Do it themselves (DIY) - figure out how to do it on their own; do it with them (DWY) - you teach them how to do it; done for them (DFY) - you do it for them If doing something live, what environment or medium do I want to deliver it in? In-person, phone support, email support, text support, Zoom support, chat support If doing a recording, how do I want them to consume it? Audio, video, or written. How quickly do we want to reply? On what days? during what hours? 24/7. 9-5, within 5 minutes, within an hour, within 24 hrs? 10x to 1/10th test. If my customers paid me 10x my price (or $100,000) what would I provide? If they paid me 1/10th the price and I had to make my product more valuable than it already is, how would I do that? How could I still make them successful for 1/10th price? Stretch your mind in either direction and you’ll come up with widely different solutions.

Remember, it’s important that you solve every problem. I can’t tell you the amount of times one single item becomes the reason someone doesn't buy.

Anecdote: Why We Must Solve Every Perceived Problem

Over time, I continued solving obstacles with templates and trainings until there were no more “one things” to prevent my sales.

Don’t get romantic about how you want to solve the problem. Find a way to solve every problem a prospect presents with. When you do that, you make an offer that’s so good, people just can't say no. And that’s what we’re building here.

And that’s the goal, to sell the most people, for the highest possible price, with the highest possible margin.

through the value equation and ask yourself which of these things will this person: Financially value Cause them to believe they will be likely to succeed Make them feel like they can do it with much less effort and sacrifice Help them accomplish their goal and see the result they want with far less time investment.

What should remain are offer items that are 1) low cost, high value and 2) high cost, high value.

You just want to make sure you save those high cost items for big value adds only. If you think you can accomplish the same value with a lower cost alternative, then do that instead.

And if you ever have the desire to build a repeatable business model, something that scales, these assets you create will become the bedrock.

Step 1: We figured out our prospective client's dream outcome. Step 2: We listed out all the obstacles they’re likely to encounter on their way (our opportunities for value). Step 3: We listed all those obstacles as solutions. Step 4: We figured out all the different ways we could deliver those solutions. Step 5a: We trimmed those ways down to only the things that were the highest value and lowest cost to us. All we have to do now is… Step 5b: Put all the bundles together into the ultimate high value deliverable.

Problem → Solution Wording→ Sexier Name for Bundle

Can you see how much more valuable this is than a gym membership? The bundle does three core things: Solves all the perceived problems (not just some) Gives you the conviction that what you’re selling is one of a kind (very important) Makes it impossible to compare or confuse your business or offering with the one down the street

to create a valuable offer that is differentiated and unable to be compared to anything else in the marketplace.

We are selling something unique. As such, we are no longer bound by the normal pricing forces of commoditization.

People want what they can’t have. People want what other people want. People want things only a select few have access to. He was dead right.

Scarcity, urgency, bonuses, and guarantees were not the only persuasion tools being employed to get egregious prices at the fundraiser. They also used commitment and consistency, status, peer pressure, goodwill, celebrity endorsements, competition, etc.

Desire comes from not getting what you want. In fact, I heard this quote that I love from Naval Ravikant: “Desire is a contract you make with yourself to be unhappy until you get what you want.”

Therefore, if we seek to increase the demand (or desire), we must decrease or delay satisfying the desires of our prospects. We must sell fewer units than we otherwise can. Let that sit with you for a second.

It’s worth noting that each of these prospects have a different buying threshold. In my experience, demand for services is non-linear. Instead, I’ve found demand to be fractal (80/20). In other words, one fifth of the prospects are willing to pay five times the price (or more).

In the example, I might have ten people willing to pay $500, but two of them willing to pay $5000. So, I would make more, have lower costs (more profits), provide more value, and increase the demand in the remaining prospect base by selling fewer units.

The next time we promote scenario two, we then open three spots at the same price and sell them all (still leaving some prospects with pent up demand!). This is a continuous theme.

When you “pull the trigger too early,” each successive instance we promote, we sell even fewer.

Hormozi Law: The longer you delay the ask, the bigger the ask you can make. “The longer the runway, the bigger the plane that can take off.”

We must endeavor to keep our supply (and satisfaction of desire) under the demand that we are able to generate. This maximizes profits and keeps desire ravenous in our customer base. This is the real key to never going hungry.

The reason I titled this sub-section “Delicate Dance of Desire” is that supply and demand are inversely correlated (in theory). If you satisfy zero desire (provide zero supply), you will not make money, and eventually leave people feeling rejected (Note: it takes much longer than you think).

Conversely, if you satisfy all the demand, you will kill your golden goose, and not know where your next meal will come from.

In this next section Enhancing Your Offer, I will show you how I: Use scarcity to decrease supply to raise prices (and indirectly increase demand through perceived exclusiveness) Use urgency to increase demand by decreasing the action threshold of a prospect. Use bonuses to increase demand (and increase perceived exclusivity). Use guarantees to increase demand by reversing risk. Use names to re-stimulate demand and expand awareness of my offer to my target audience.

Scarcity is one of the most powerful and least understood forces to unlock unlimited pricing power.

The reason an authority (like a doctor), a celebrity (like Oprah), or a celebrity authority (like Dr.Oz or Dr.Phil) can charge egregious rates is because of implied demand.

People assume that there is a lot of demand for their time, and, therefore, not a big supply of it. As a result, it must be expensive.

And so, it would follow, if I can pay someone $50,000 for a day of their time, and see an increase of $500,000 per month in revenue within three months because of the insights and strategies revealed, that would be a helluva return on investment, right?

So there are two components to the value: first, how rare the sources are; second, the actual value being provided.

Specialized consultants are paid millions of dollars to solve problems worth tens of millions to clients.

I finally understood how premium prices were truly made . . . simple supply and demand.

There is little that substitutes for incredible demand. You can try and fake it, but there is a special type of “0 fucks given” vibe that’s hard to replicate when you truly do not need a person’s money (or even want it).

That’s how these guys can charge so much . . . because they don’t need it.

The person who needs the exchange less always has the upper hand.

This is where you publicly share that you are only giving away X amount of products or can only handle Y new clients.

The idea that you can never get it again makes it more desirable.

It is the fear of missing out on something. It pulls on our psychological fear of loss to get us to take action.

Fear of loss is stronger than desire for gain.

Three Types of Scarcity Limited Supply of Seats/Slots: in general or over X period of time. Limited Supply of Bonuses Never available again.

Here’s why: it’s better to sell out consistently than over order and fail at creating that scarcity. This method stacks in effectiveness if it is done repeatedly over time (just not too often).

Once a month seems to be the sweet spot for most of the companies that I know who do this with regularity.

Second Important Note: When using this tactic, you must also let everyone know that you sold out.

This way, even people who were on the fence, when they see that it was sold out, it gives social proof that other people thought it was worth it. And now that the choice has been made for them, they desire it more because there is no way they can get it.

Chanel, a brand that has maintained insane margins and pricing for over a century, is a master of scarcity. They send only 1-2 of each piece to each store so every store has a different selection and every item is the last or second to last item in stock. This allows them to price far above market and turn buying impulses into purchases.

With services, especially if you want to consistently get customers, it can be a little trickier to use scarcity.

Total Business Cap - Only accepting….X Clients.

Growth Rate Cap - Only accepting X clients per week (on-going)

Cohort Cap - Only accepting….X clients per class or cohort.

This helps you get some cadences in place in your business operationally while also allowing your sales team some legitimate scarcity. Example: “We take on 100 clients 4 times a year. We open the doors then close them.” Etc.

But, if I told you I have it set so that every week the page only allows twenty new people to download it, you’d be far more likely to go see if you can grab it. And even more so if when you try it, you see that it has already run out for the week.

By employing scarcity, we make what would otherwise be a “neat free download” into a desirable thing not everyone has access to.

Honest Scarcity (The Most Ethical Scarcity)

You can create scarcity by also capping your service level and saying that if they leave than can never return.

This works best with small groups

Scarcity is a function of quantity. Urgency is a function of time.

Having a defined deadline or cut off for a purchase or action to occur creates urgency.

Rolling Cohorts, 2) Rolling Seasonal Urgency, and 3) Promotional or Pricing Urgency 4) Exploding Opportunity.

Cohort-Based Rolling Urgency

“If you sign up today, I can get you in with our next group that kicks off on Monday, otherwise you’ll have to wait until our next kickoff date.”

If you wanted to juice it up a little bit, you could say: “I actually had a client who signed up a few weeks ago drop out, so I have an opening for our next cohort that kicks off on Monday. If you are pretty sure you’re gonna do this sooner or later, might as well get in on it now so you can start reaping the rewards sooner rather than paying the same and waiting.”

Obviously the less frequently you kick off new customers, the more powerful this is.

You can explain to them that since the next group starts in a little, they will have the advantage of having more time to review the materials, talk to their employees (for b2b products) or family members ( for b2c products). On top of that, they can have a more extended payment plan that you can only make available to them since the start date is so far out . . . an advantage that most clients do not get.

Rolling Seasonal Urgency

In a digital setting, having actual sign up date countdowns is very useful.

I personally love having the dates that I am running a promotion through on my landing pages and in my copy.

Example: Our New Year Promotion ends Jan 30! Next Month: Our Valentines Lovers Promo Ends Feb 30! Next Month: Our Sexy By Spring Special Ends March 31! Next Month: Our Fools in Love April Promo Ends April 30! The actual promotion may be the same, but naming it something different “by season” gives you a “real” differentiator that gives you a start and a finish.

Pricing or Bonus-Based Urgency

This is another way of creating urgency using your actual offer or promotion/pricing structure as the thing they could miss out on (kind of brilliant!).

Exploding Opportunity

Every second someone delays, they miss out on disproportionate gains.

Highly competitive job environments often get job offers that are “exploding offers” everyday they wait to take the job, their pay or bonuses decrease.

This forces prospects to make fast decisions rather than try and “wait it out” to see if they get a better offer.

a single offer is less valuable than the same offer broken into its component parts and stacked as bonuses (see image).

You’ll also notice that if you watch those old infomercials, they would sell one knife for $38.95 then include 37 other knives, sharpeners, pans, and guarantees to beat the prospect into submission.

The reason this works is we are increasing the prospect’s price-to-value discrepancy by increasing the value…

We anchor the price we tell them to the core offer. Then with each increasingly valuable bonus, that discrepancy grows wider and wider until it's too big to bear and we snap the rubber band in their…

Pro Tip: Add Bonuses Instead of Discounting Whenever Possible on Core Offers Whenever trying to close a deal, never discount the main offer. It teaches your customers that your prices are negotiable (which is terrible). Adding bonuses to increase value to close the deal is far superior to cutting…

When selling one on one, you ask for the sale first, before offering the bonuses. If they say yes, then after they have signed up, you let them know the additional bonuses they're going to get. This creates a wow experience and reinforces their decision to buy. On the other hand, if the person does not buy after the first ask, then you present a bonus…

People have a hard time rejecting reciprocity, so adding a bonus to accommodate, then another, then another, and people will feel…

Bonus Bullets That being said, there are a few key things to remember when offering bonuses: 1. Always offer them (you can use the bulleted bundle we came up with at the end of Section III) 2. Give them a special name that has a benefit in the title 3. Tell them: a) How it relates to their issue b) What it is c) How you discovered it, or what you had to do to create it d) How it will specifically improve their lives or make their experience i) Faster, easier or less effort/sacrifice (value…

Paint a vivid mental image of what their life will be like assuming they have already used it and are experiencing the benefits 6. Always ascribe a price tag to them and justify it 7. Tools & checklists are better than additional trainings (as the effort & time are lower with the former, so the value is higher. The value equation still reigns supreme). 8. They should each address a specific concern/obstacle in the prospects mind about why they can’t or won’t be successful (bonus should prove their belief incorrect) 9. This can also be what they would logically realize they will need next. You want to solve their next problem before they even encounter it. 10. The value of the bonuses should eclipse the value of the core offer. Psychologically as you continue to add offers, it continues to expand the price to value discrepancy. It also, subconsciously communicates…

You can further enhance the value of your bonuses by adding scarcity and urgency to the bonus themselves (which takes this…

Bonuses With Scarcity Version 1: Only people who sign up for XZY program will have access to my Bonus #1, 2, 3 that are never for sale or available anywhere else other than through this program. Version 2: I have 3 tickets left to my $5,000 virtual event, if you buy this program you can get one of the last 3 tickets as a bonus. b) Bonuses With Urgency Version 1: If you buy today, I will add in XYZ…

You can get other businesses to give you their services and products as a part of your bonuses in exchange for exposure to your clients for free.

As if that weren’t already awesome enough, if you really want to be a jedi, negotiate a group discount and a commission to yourself.

If you are following along, each of these bonuses can become revenue streams for you indirectly by getting clients to say YES more easily, and directly because you can negotiate that each of these businesses can pay you for the people you send their way.

We want to employ bonuses because they expand the price to value discrepancy and get people to purchase who otherwise wouldn’t. They massively increase the prospects' perception of the value of our offer.

Beyond that, make a habit to record every workshop, every webinar, every event, every interview and use them as additional bonuses (as needed to crush a perceived obstacle).

Therefore, reversing risk is an immediate way to make any offer more attractive. You will want to spend a disproportionate amount of time figuring out how you want to reverse it.

So, for the most part, the stronger the guarantee, the higher the net increase in total purchases, even if the refund rate increases alongside it.

In a world where you want to reverse risk and get customers the best outcome possible, tying your guarantee to the things they need to do to be successful can help all parties.

Pro Tip: High Cost Services Warning If you have a tremendous amount of cost associated with your product or service, you will likely want to employ a conditional guarantee or an ANTI guarantee, as you will have to eat the cost of the refund AND the cost of fulfilling.

What makes a guarantee have power is a conditional statement: If you do not get X result in Y time period, we will Z.

Pro Tip: Name Your Guarantee Something Cool If you are going to give a guarantee, spice it up. Instead of using “satisfaction” or some other “vanilla” word, describe it more strongly. Generic Example (Bad): 30 Day Money Back Satisfaction Guarantee. Creative Imagery Example #1 (Good): In 30 days, if you wouldn’t jump into shark infested waters to get our product back, we will return every dollar you paid. Creative Imagery Example #2 (Great): You’ll get our famous “Club a Baby Seal Guarantee”After 30 days of using our services, if you wouldn’t club a baby seal to stay on as a customer, you don’t have to pay a penny.

“Best case you get the body of your dreams and we give you all your money towards staying with us to hit your long-term goal. Worst case you tell me I suck, I write you a check, and you get six weeks of free training. Both options are risk free. But, the only thing guaranteed not to help you is walking out of here today.”

Satisfaction/No questions asked is the highest form of guarantee. It means we could do everything right and you could still ask for your money back.

I believe this offer works much better in lower-ticket situations. It becomes very risky as you go into higher-ticket services with higher costs of fulfillment.

Pro Tip: Unconditional vs Conditional Based on Business Type Bigger broader guarantees work better with lower ticket B2C businesses (many people just won't bother taking the time). The higher the ticket, and the more business oriented it is, the more you want to steer towards specific guarantees. That may or may not include refunds, and may or may not have conditions.

The goal must be that upon hearing about your offer, your ideal prospects are interested enough to take action. Naming it properly is an integral part of this process.

In a local market, it costs relatively little to reach an entire population.

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.

Here’s the simplest formula I’ve come up with for this process:

If you like understanding the concepts behind my chosen M-A-G-I-C formula. Each roughly translates to: Attention (M-Magnet), Discrimination (A-Avatar), Purpose (G-Goal), Timeline (I-Interval), and Method (C-Container).

Make a Magnetic “Reason Why” We start the name with a word or phrase that tells people the “reason why” we are running our promotion.

Examples: Free, 88% off, Giveaway; 88% off, Spring, Summer, Back To School; Grand Opening; New Management; New Building; Anniversary; Halloween; New Year.

Announce Your Avatar This component calls out your ideal avatar: who you are looking for and who you are not looking for as a client.

Examples: Bee Cave Dentists, Rolling Hills Moms, Brick & Mortar Businesses, Salon Owners, Retired Athletes, Brooklyn Busy Executives

Give Them A Goal This is where you articulate your prospect’s dream outcome.

Examples: Pain Free, Celebrity Smile, 1st Place, Never Out Of Breath, Perfect Product, Grand Slam Offer, Little Black Dress, Double Your Profit, First Client, High Ticket, 7 Figure, 100k, Etc.

Indicate a Time Interval You’re just letting people know the duration to expect here. This gives an example of how long your results will take to achieve.

Examples: AA Minutes, BB Hours, CC Days, DD Weeks, Z Months. “4 Hour” “21 Day” “6 Week” “3 Month” Complete With A Container Word The container word denotes that this offer is a bundle of lots of things put together. It’s a system. It’s something that can’t be held up to a commoditized alternative. Examples: Challenge, Blueprint, Bootcamp, Intensive, Incubator, Masterclass, Program, Detox, Experience, Summit, Accelerator, Fast Track, Shortcut, Sprint, Launch, Slingshot, Catapult, Explosion, System, Getaway, Meetup, Transformation, Mastermind, Launch, Game Plan, Deep

Dive, Workshop, Comeback, Rebirth, Attack, Assault, Reset, Solution, Hack, Cheatcode, Liftoff, Etc.

Pro Tip: Find Time To Rhyme Good rhymes stick in people’s minds. Rhyme your program name to win the game. Google “rhyming dictionary” for an easy shortcut. Note - Don’t try and force it. It’s not a requirement, it’s just a “nice-to-have”. Ex: Six-Pack Fast Track, 5-Day Book Print Sprint, Marriage Thrive Deep Dive, 12-Week 2-Putt Shortcut, 12-Month No-Debt Reset, Celebrity Butt Shortcut, Get Some Ass Masterclass (just thought it was funny), etc. You get the idea.

Pro Tip: Alliteration Alliteration is when you make all (or most) of the words start with the same letter or sound. An alternative approach to rhyming is to use alliteration when naming your program. This is easier for most people

than rhyming. Again, you do not need to rhyme or alliterate. Don’t force it. Ex: Make Money Masterclass, Change Your Life Challenge, Big Booty Bootcamp, Debt Detox, Real Estate Reset, Life Coach Liftoff, Etc.

Pro Tip - Name Sub Items & Bonuses Use the magic headline formula for each item in your stack and bundle. It will automatically enhance the value of your offerings simply by naming in a way that resonates with your prospects.

Here’s the order in which you will change things to keep lead flow consistent. Change the creative (the images and pictures in your ads) Change the body copy in your ads Change the headline - the “wrapper” of your offer Free 6 Week Lean Challenge to Free 6 Week Tone Challenge Holiday Hangover to New Year New You Change the duration of your offer Change the enhancer of your offer (your free/discount component) Change the monetization structure, the series of offers you give prospects, and the price points associated with them (Book II)

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

Excellence exists in the depth of knowledge and nuances.

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