$100M Offers: How To Make Offers So Good People Feel Stupid Saying No

by Alex Hormozi

"Outsized returns often come from betting against conventional wisdom, and conventional wisdom is usually right. Given a 10 percent chance of a 100 times payoff, you should take that bet every time. But you're still going to be wrong nine times out of ten . . . We all know that if you swing for the fences, you're going to strike out a lot, but you're also going to hit some home runs. The difference between baseball and business, however, is that baseball has a truncated outcome

distribution. When you swing, no matter how well you connect with the ball, the most runs you can get is four. In business, every once in a while, when you step up to the plate, you can score 1,000 runs. This long-tailed distribution of returns is why it's important to be bold. Big winners pay for so many experiments." — Jeff Bezos

Oftentimes, we lose. But, sometimes, we win and win BIG.

a Grand Slam Offer is both very good and very rare.

my business model is simple, just like the four-piece pyramid logo:

(1) Provide value at no cost far in excess of what the rest of the marketplace charges for. (2) Have entrepreneurs use materials that actually work and make money helping more folks (3) Earn the trust of the hyper-executor business owners who use the frameworks to scale their businesses (4) Invest in those businesses to make more impact at scale while helping everyone else for free.

I actively visualize, every day, how it felt to wake up in the middle of the night in cold sweats, wondering how I’d make payroll. That gut-wrenching “meditation” keeps me hungry as an entrepreneur but also grateful for my security and peace of mind. I want the latter for you and anyone else that gives a damn about what they do.

We believe every person, every company, and every organism is either growing or dying. Maintenance is a myth.

what does it take to grow? Thankfully, just three simple things: 1) Get more customers 2) Increase their average purchase value 3) Get them to buy more times

That’s it.

Gross Profit:

The revenue minus the direct cost of servicing an ADDITIONAL customer.

Lifetime Value:

The gross profit accrued over the entire lifetime of a customer.

if the average customer stays five months, and they pay $1,000/mo while it costs me $100 per month to fulfill, then their lifetime value is $4,500.

Revenue: ($1,000/mo * 90% Gross Margin * 5 months) = $4,500 Lifetime Value (LTV)

The biggest difference is that some sources only count total revenue, while others focus on gross profit over the lifespan.

LTGP Lifetime Gross Profit

If all products are “equal,” then the cheapest one is the most valuable by default.

This means that the marketplace drives the price down through competition until the margins are just enough to keep the lights on: “just enough” to become a slave to their business.

combining an attractive promotion, an

unmatchable value proposition, a premium price, and an unbeatable guarantee with a money model (payment terms)

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

So you can sell at whatever price you get the prospect to perceive, not in comparison to anything else.

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.