Book Review: $100M Offers
$100M Offers: How To Make Offers So Good People Feel Stupid Saying No
Alex Hormozi
Three-Sentence Summary
A “Grand Slam Offer” creates such a first interaction between your business and a new customer that they will feel stupid to say no. They find the product/service is designed precisely for their painful problems and solves them easily but will be out of supply tomorrow. Then the offer is successful and profitable.
Who Is This Book For?
As long as you can survive pages of the author’s off-topic personal story, the rest of the book is concise and quick to the point. Even though there are few new concepts, the systematic way of explaining pricing and valuing makes the book a good introduction for anyone who wants to craft a good offer for their business. And it is very short.
Note: the following summary is out of personal processing and might not follow the book structure.
Major Concepts
An offer includes goods and services, payment, and agreement terms. Hormozi proposed a series of practical steps to craft a “Grand Slam Offer” to get more people to pay at a higher price by increasing value to price discrepancy.
There are three different offer levels built on top of the previous one. Basic Offers, Valuable Offers, and Desirable Offers.
3-Level of Offers
Basic Offers are crafted based on the market and domain. Good markets mean majorly four things. 1) The potential customers have massive pain and are eager to take your offer. 2) They can afford the price you charge them for. 3) They are easy to target and reach. 4) The market is growing. Focusing on a niche domain when your business is still small and young. It means charging more for almost the same product and cutting operational costs.
Valuable Offers are crafted based on Basic Offers with four perceptions. 1) The customer has a dream outcome for your product. 2) They have a feeling of how likely they are to reach it. 3) The outcome might only take a short time to reach it. 4) The customer doesn’t need to pay a lot of extra effort to reach it. It is a psychological offer instead of a logical offer. A simple example is the Apple Watch. It doesn’t make you healthier per se; however, you think you will move more and sleep well after wearing it. And this imagination leads to a purchase.
Desirable Offers build on Valuable Offers with enhancements like Scarcity, Urgency, Bonuses, Naming, and Guarantees. Scarcity, Urgency, Naming, and Bonuses are easy to understand, and we are tricked into buying many things because of Fear Of Missing Out. Guarantees are essential as it is anti-risk. The risk of an offer is fear associated with the purchase. A good Guarantee can reverse a customer’s fear into a guarantee. Try your best to avoid using an unconditional guarantee which can get a lot of purchases but refunds as well.
Related Readings/Resources
This is the first of its kind I have ever read. More related books are on my list.