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Kindle Notes & Highlights
by
Alex Hormozi
Read between
April 1 - April 2, 2022
“Grow or Die” is a core tenet at our companies. We believe every person, every company, and every organism is either growing or dying. Maintenance is a myth.
I had the CEO of a company that had grown from $40 million to $400 million under his leadership tell me the same thing. A healthy company is a growing company.
It allows you to differentiate yourself from the marketplace. In other words, it allows you to sell your product based on VALUE not on PRICE. 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)
And one of the only ways to differentiate yourself today is through the experiences you create for your customers. There is no product or service that you can't get faster or cheaper somewhere else.
Alright, let’s start by defining a Grand Slam Offer. 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.
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. As a result, it gets you more customers, at higher ticket prices, for less money.
When picking markets, I look for four indicators: 1) Massive Pain
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
Easy to Target
Growing Growing markets are like a tailwind.
There are three main markets that will always exist: Health, Wealth, and Relationships.
Starving Crowd (market) > Offer Strength > Persuasion Skills
Riches Are In The Niches
But simplicity and ease may not be enough to sway you, so let me illustrate why honing in on one niche will make you more money. Reason: you can literally charge 100x more for the exact same product.
The first step to making crazy money is charging premium prices.
And the goal isn’t just to be slightly above the market price — 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.”
The Value Equation FREE GIFT #4: Value Equation Bonus Tutorial & Free Download(s): If you want to know how
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.
What could you do that someone would immediately say, “All that? Seriously? Yes, I'm in.” Doing this exercise will make your job of selling So. Much. Easier. Even if you come up with something you’re not actually willing to do, it’s okay. 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.
Here are my “cheat codes” for product variation/enhancement and a visual to break down the process for you from my consulting deck:
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
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