The Game with Alex Hormozi - 4. Premium Promotions | $100M Lost Chapters Audiobook

Episode Date: November 14, 2025

Welcome to The Game w/ Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned and will learn on his path from $100M to $1B in net worth.Wanna scale your business? Click here.Follow Alex Hormozi’s Socials:LinkedIn  | Instagram | Facebook | YouTube  | Twitter | Acquisition 

Premium Promotions. Presenting your Grand Slam offer on its own. Some things in life are priceless. For everything else, there's MasterCard. Famous advertising campaign. I walked into the smoothie shop where I worked. My friends sat in the back, leafing through a magazine, because magazines were still a thing then.

I had my lunch in hand for later, a burger and some waffle fries from next door. You wouldn't believe this, he said. Check this out. This dude bought a burger for $50,000. That's insane. The burger had gold flakes and exotic caviar on it. But I remembered thinking at the time was, how much money this guy made to be able to buy a $50,000

burger? Who bought it? I asked. I don't know, some hedge fund manager dude. They said he makes like $50 million a year. $50 million. The idea stunned me for a moment as I tried to wrap my head around the size of that number. That was almost a million dollars a week.

When I did the math, I realized if he worked 2,000 hours in a year, he made $25,000 per hour. It cost him two hours of his time to afford the burger. Then I did the math on my own income. of $6.75 per hour. It would cost me the same two hours to afford burger, fries, and a soda with tax from the place next door, $13.50. To him, given his income,

it wasn't even insane. It was the same as me buying a burger. That's when I realized the power of infinite returns. Basically, that there is no cap on the upside, but you can only go down to zero when pricing. Premium offers work much the same way. While everyone buys traffic on their $6.75 per hour budget, you buy traffic with your $25,000 per hour budget,

and the best part is, you don't need nearly the volume. Here's what ends up happening in reality. Let's say one business makes $100 per sale with $50 a profit, and another business makes $10,000 per sale and $9,500 a profit. To make equivalent amounts of profit, Business One needs to sell 190 people at $50 a profit to make $9,500. Business two only needs to sell one. Here's how would work in the real world.

If you spoke to those same 190 sales that Business One closed and then offered them all the $10,000 offer instead, you'd likely close about 5%. Here's the basic math. 5% times 190, 9.5 sales. 9.5 sales times $9,500 a profit is $90,250. Compared to 190 sales times $50 to profit, which is $9,500. So, 90,000 divided by 9500 is 9.5 times as profitable. as a result, using a high-value offer would make your advertising nine and a half times more profitable.

So even though the volume is far lower, you end up making far more, even when normalized. And you only have to deal with nine or ten clients instead of 190, which makes life way easier. That is the power of premium offers, and that is how they can crush. The big caveat is that you need to, number one, have something very valuable to provide your Grand Slam offer, and two, have a selling process that demonstrates that value. If I lost everything and had to start over, if I needed to make money or make a business owner money, I would not start with a premium offer.

I would add on a free or discount money model. Over time, as your reputation improves, you can remove these things. But in the beginning, they are essential for most. Earlier in my career, all my offers were free offers. The offer I ran after my original free offer was this. Apply and book a call to see if you qualify for our services. Not attractive at all.

but the copy before the offer filtered the best gym owners that understood it was expensive. And remember that the biggest advantages with premium offers is the size of the ticket you can sell. There's nothing below zero dollars. You can't go lower than that,

but you can go infinitely higher. If you're new, start with a free or discount offer to get business in the door. Prove results, then restructure to a premium offer afterwards. Note, you can also layer offers together. As we go over at the end of the money models book, premium offers work well with a second offer

that you give after a free offer, but they'll only work if you demonstrated value in the first one. The goal of premium offers. The goal of premium offers is to sell the client the best outcome available for themselves. You ask the client to buy the thing that will most likely result in them achieving the greatest outcome. That being said, this is not better or worse than any of the other offer options. It's just different.

For the following pros and cons section, I'm going to flip the script. You're going to teach me the pros and cons of premium offers as though we were working together. Thanks for keeping me on my toes. Pros of premium offers. Number one. Simplest math and fewest moving parts. Me. Why would we do this really expensive thing?

I doubt many people could afford it. You. If you're only selling one core thing, then the math gets pretty simple. You pay X, X, X, X, X for Y, Y, Leeds, and you close Z sales at VVV money. That's about it. You just look at what you spent and what you made. Me. Ah, okay.

I get it. Having fewer things to sell makes it easier because I only only do. sell one expensive thing. Number two, only quality customers equals decreased operational drag. Me. But we're only going to have a handful of customers compared to a cheaper model. You, people who come in on premium offers are, in general, the most qualified customers. This decreases the amount of sifting through the poo to get the best customers. We skim with the marketing, but by doing so, you pay a premium for the cream inside of all that milk. Me. Okay. I get it. So we're okay with the fact that we might only

sell 10% as much lemonade, because the lemonade we sell would be more profitable and our clients would be easier to deal with. That sounds like a good thing. Number three, no discounts or incentives. Equals, high lead quality. Me. So we're not going to give any incentive? You. Any who comes in off this type of offer is expecting to be sold. So there are very few transparent intentions on both sides. It comes down to how much they believe we can solve their problem and the perceived value of our solution. Me. All right, so I may get fewer levels. leads, but they'll be way higher quality, so I should convert a higher percentage of them. Well, that sounds good. I don't want to do with that many crappy leads all day anyways.

Cons of premium offers. Number one, most expensive cost per lead and can take more time to rick even. Me. But if these leads are more expensive, how can we afford them? You, it costs a lot of money to get moving on this. Many don't have the cash to drive the volume with these offers. It also takes time to give the sales process down when you're starting out, and with each opportunity costing us so much more, we have less room for error. Me. Hmm. Okay. So we really need to know what we're doing here or have a decent amount of money to burn learning. Number two, must be a good copywriter and understand your avatar well. Me. So how much do I need to know in order to sell our $900 per month bundle? You. When getting into a market, it can be hard to understand the inner workings of a new

avatar. Their deep desires, their fears, their everyday struggles. Here's a two-second example. I wouldn't say working hard in your business. I would say cleaning the bathrooms yet again. Specificity is what gives copy its edge. Unless you know the real world of your avatar, it can be difficult to get them to bite without a compelling offer and great copy. Free and discount offers give us more margin for error

on your copy because the offer can push people over the fence. Me. Okay, so I need to really study these health nuts and high-performance folks to know what their real desires and fears are. Okay, so I need to talk in terms of that, not just lemonade. And the more specific I can be, the more will resonate with them and make them want to buy our more premium offer. They need to understand why it's important not to drink lemonade that isn't sourced from our lemonade orchards with our alkalinity profile. Otherwise, they'll just think we're overpriced minute made. Got it. Number three.

Must be good at sales because this is a good old-fashioned sale. Me. Since I have no discount or anything, how am I going to get these folks to give us money when they've never tried it? You, the conversion process end-to-end must be dialed in. The sales process will need to be structured based on the client avatar we're pursuing. But for now, understand that when we want to lead with premium offers, we should already have a proven process or have some cash nested away to get one figured out. Me. All right, got it. This is a recurring theme.

I need to know what I'm doing. Number four. Least efficient way to capture a marketplace. Me. But I feel like so many fewer people will buy at this price point, even if we do make a lot of profit. You. If we are looking for volume, a straight premium offer is going to have to hit a lot of eyeballs before getting a bite.

This means you show your ads to more people for a smaller volume of results. A more valuable result, but lower volume nonetheless. Me. Okay. So we made good money. We're just not going to be the volume leader in the lemonade category. This is a strategic question of how we want to run the business. I understand.

Number five. Must have an extremely compelling offer of a result. Me. So I have no discounts or trial offers to give people. How am I going to get them to say yes? You. To optimize our conversion, we may have a small, number of people raise their hands and say they're interested in your offer. As a result,

you will need to make sure that you have a truly irresistible offer they are getting for their package. Packed with bonuses, creative guarantees, and premium support to merit the higher cost. Me. Okay. So all that stuff we did from $100 million offers is paying off here. We're going to make our offer so compelling. It still feels like a deal compared to how much they're getting. Okay. I may have to include some guarantees and give them more bonuses to other things they probably would like as well, so this feels like a steal. Got it. Conclusion. Premium offers are powerful. They can act as standalone offers that will make you money. You don't really need anything else. If you have clients coming in already, using this new structure

will allow you to three to five extra prices without changing your services. Seriously, read 100 million offers for more information on how to do this. But if you're just turning out, or your volume isn't high enough, or your cost of acquisition is higher than you can bear currently, then you'll likely want to wrap a premium offer with a freer discount wrapper. So let's talk about those.