Notes on $100M Offers by Alex Hormozi

A fellow B2B SaaS founder recommended I read $100M Offers: How To Make Offers So Good People Feel Stupid Saying No by Alex Hormozi, and I truly loved it. I took pages of notes and can already count it among my top 5 favorite sales and marketing books I've ever read.

I never thought about all the elements of an offer, and I really liked how he broke it down succinctly and gave lots of good examples from different industries. It was also inspiring to hear his story.

Below are my main notes and takeaways. I highly recommend this to any founder or seller.

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​Start here
Pricing, value, guarantees, naming
Grand slam offer

Section 1 how we got here

1 how we got here 

2 grand slam offers
Make offers so good it feels stupid to say no

2 pricing

3 commodity problem
Lifetime gross profit
Getting more customers, getting them to pay more, getting them to buy more times
Sell based on value not price
Sell in category of 1
Grand slam offer cannot be compared to any other in market, premium price, unbeatable guarantee, too stupid to turn down

4 pricing: finding the right market: a starving crowd 
Pain
Need Massive pain
The pain is the pitch 
Purchasing power
Easy to target
Growing
Starving crowd more important than offer strength which is more important than persuasion skills
Commit to niche until 10M per year then broaden
The more niche and specific the product marketing the bigger the price
A single win pays for itself

5 pricing: charge what it’s worth
Need to charge premium price
Charge the most money in the market and provide the most value

Section 3 value

6 value offer: value equation 
Dream outcome * likelihood to achieve / time delay * effort and sacrifice = value
Raise numerator and reduce denominator
Make things immediate, seamless, effortless
Perception is reality
Find psychological solutions, not logical solutions
Not about money but about status in front of others
Incorporate fast immediate wins for client to build trust
Fast beats free

7 free goodwill

8 value offer: thought process
Divergent thought process

9 value offer: creating grand slam offer part 1: problems and solutions
Irresistible offers by Dave Kennedy 
Sell the solution and dream outcome not your tool
List problems and next things people need help with
Transform problems into solutions
How to and then reverse name of problem

10 value offer: creating grand slam offer part 2: trim and stack
Want customers to feel they got tremendous value
Fly out and help them implement
Sales and fulfillment continuum
Create solutions delivery vehicle
Brainstorm crazy possibilities even if you do it for just one person
Product delivery cheat codes
Level of personal attention
Level of effort from them
Medium of live delivery
Medium of recorded delivery
Reply time frame
If customers paid me 10X, what would I provide? If 1/10, what would I provide?
Must solve every perceived problem
Find a way to solve all their obstacles so there’s zero reason not to proceed
Trim and stack
Remove low value high cost items
Focus on high value, one to many solutions
Initial creation cost might be high but then incremental cost per customer low
Final high value deliverable
Bundle the solution to all the perceived problems
Show the value of each of those and the sum which is massive and show your cost as a low lower than the sum of all of them
Make your combined offer one of a kind

Section 4 enhancing your offer: scarcity, urgency, bonuses, naming, guarantees
When demand increases, cut supply and raise prices
Commitment and consistency
Status
Peer pressure
Goodwill
Desire comes from not getting what you want
Tease something coming up then sell fewer units at much higher price and give a lot higher value and leave a lot of people unable to purchase and desiring
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
Keep supply below demand to keep customer base ravenous to buy
Use scarcity to decrease supply and raise prices and increase demand through exclusivity 
Use urgency to increase demand by decreasing the action threshold
Use bonuses to increase demand and perceived exclusivity 
Use guarantees to increase demand by reducing risk
Use names to restimulate demand and raise awareness 

11 enhancing the offer: scarcity and creating FOMO
Sold out
Specialized consulting where supply is 1 and give rare specific advice to generate massive value for client
People can charge 50K/day for advice because they don’t need the 50K
Creating scarcity
Limited supply or limited edition
Can never buy it again once it’s done
3 types
Limited supply of seats or slots
Limited supply of bonuses
Never available again
Need to always sell out
Limited edition monthly releases
Always let everyone know that you’re sold out
Total servicing cap: only accepting x clients
Growth rate cap: only accepting 5 new clients per week, I have 3 already taken and 7 more calls scheduled this week
Cohort cap: only accepting x new clients periodically
Have less spots available than you think you can sell
Sell limited supply of 1:1 access to you priced very high

12 remaining the offer: urgency: deadlines drive decisions
Limit when can sign up, not just quantity 
Rolling cohorts
Group onboarding kickoff or else need to wait until next group
Rolling seasonal urgency
Actual signup date countdown
Naming each promo by season 
Vary your marketing and copy constantly to create novelty and urgency
Promotional pricing or bonus urgency
Free onboarding or extra workshop
Tell entire pipeline when raising prices so they know and can act now
Exploding opportunity 
Emphasize opportunities decay with time so acting earlier locks in higher gains

13 enhancing offer: bonuses
Break offer up into component parts stacked as bonuses
Anchor price to core offer than give so many layers of bonuses on top that it feels stupid to not move forward 
Never discount core deal; present bonuses instead
First ask for sale without bonuses. When they say yes then add the bonuses for wow factor. If they say no, then add bonuses to sweeten then ask again. 
Always offer bonuses
Give them special name
Explain how it’ll address parts of the value equation
Provide proof like past client or stat
Paint vivid picture of their life after using it
Tools and checklists always useful
Each bonus should address reason in prospect mind why can’t be successful
Bonuses can solve their next problem before they even encounter it
Value of bonuses should eclipse the value of the core offer
Add scarcity and urgency to the bonuses themselves
Only people who sign up for x program will have access to y bonus which won’t be offered again
I have 3 tickets left to my $5000 virtual event. If you buy this program, you can have one as a bonus. 
Bonuses for urgency
If you buy today, I’ll add x bonus because I want to reward action takers
Give other people’s products and services as bonus in exchange for exposure to your customers 
Negotiate group purchase and affiliate commission
Create tools and checklists that can be given away as bonuses
Record every webinar and workshop and give away as bonuses

14 enhancing the offer: guarantees
Reverse risk
If you don’t achieve x in y time we will z
Unconditional guarantees
Strongest
Basically a trial where they pay first
Conditional guarantees
If key actions required to succeed, make those part of the guarantee
Anti guarantees
All sales final
Implied guarantees
Performance based offers
Stacking and combining guarantees
Use creative imagery to name the guarantee
If in 30 days you wouldn’t jump into shark infested water to keep our product, we will give you your money back
Can give product free of charge until results reached or to some limit
Conditional delayed billing guarantee until client reaches first outcome

15 enhancing the offer: naming
Offers fatigue over time
Need to keep making new creative and copy and videos and hooks around same or similar offers
Can also just change the naming and wrapping of the offer
Magic headline formula
Magnet
Attention 
Reason why running promo doesn’t matter and can be a joke
Why are they making this great offer
Why should I respond to this offer
Season, occurrence 
Avatar
Discrimination 
Who looking for as client
Hyper local area
Goal
Purpose 
Prospect dream outcome
Event, feeling
Interval
Timeline 
Duration to expect for result
Container
Method
Explain it’s a bundle or system and can’t be compared to commoditized alternative
Masterclass
Bootcamp
Find time to rhyme
Alliteration
Name sub items and bonuses
Change creative first like images
Then change body copy of ads
Then change headlines or wrappers of offers
Then change duration or enhancer of offer

Section 5 execution 

16 your first 100K