The Game with Alex Hormozi - M-A-G-I-C Offer Formula | Ep 244

Episode Date: October 16, 2020

Oh, Oh, Oh, It’s MAGIC! Today, Alex (@AlexHormozi) talks about this simple framework he uses in enhancing offers and understanding monetization in the marketplace.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 on his path from $100M to $1B in net worth.Timestamps:(1:35) - Alex explains M.A.G.I.C Formula acronyms(3:38) - Use formula for quick offer variations in monetization(6:37) - B2B marketing requires less offer variation compared to B2CFollow Alex Hormozi’s Socials:LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition

I'm pretty excited about because I think you guys will all immediately be able to make a lot more money. Welcome to the game where we talk about how to get more customers, how to make more per customer, and how to keep them longer, and the many failures and lessons we have learned along the way. I hope you enjoy and subscribe. What's going on, everyone? Happy Wednesday. Super pumped to make this podcast for you. I have so many things that I want to share with everyone because I'm writing this book and I just finished it yesterday. I'm still working on the title.

but basically it's going to be about how to make magical offers. So offers so good that people feel stupid saying no. And I walk through the different monetization structures that we've discovered over our time and a lot of the magical offers that created the businesses that we have. So one of the subsections of a subsection inside of this book is naming the actual offers. And so I figured I would make this for you guys because I see a lot of people struggling with making the offers, especially in local markets, convert. And so one of the key pieces, I think, for understanding the difference is you have the offer,

like the monetization structure, which is behind the scenes, which is what you're going to sell when the person comes in and the upsells. And then you have the naming convention, like what you're going to actually wrap around that to the general marketplace, right? And so over, you know, four years, you may not actually change the monetization structure of the business, but you may change the naming convention or the thing that you're showing to the marketplace 20 times, right? And so the magic offer headline formula that I put together is actually an acronym to make it easy to remember, all right? So magic, M-A-G-I-C, right,

stands for M, the magnet. So what's the magnetic reason why someone's going to click? Is it free? Is it discounted? Is it springtime? Like there's got to be a reason for why we're doing the offer. That's the M in magic. A is a... avatar so the avatar is to know that it's specifically for them so the idea is that we're trying to discriminate against everyone else all right so this would be like you know b cave moms right or uh dentists right these are like you know older dentist or dentists making over 20,000 a month whatever right so that's going to be discriminatory in nature so first is grabbing their attention with a magnetic reason why and a is avatar so you're you're discriminating against everyone else and just calling at your

Avatar. G is the goal, right? What's the goal of this thing that we're marketing to them, right? If it's a, you know, pain free, is that the goal? Is that the goal? Is little black dress? The goal is, you know, filled up clinic, the goal? Like, what's the goal, right? That's the G. The I is indicate a time interval, right? You want to give them some sort of time interval that this is going to happen in, right? So 12 weeks, six months, 30 days, six hours, whatever it is. right so it's the i is the interval of time and then c is the container right so you have these first four things you got the thing that grabbed their attention give them the reason why right you discriminated for exactly who you're looking for which is the avatar a you gave them the

goal that they're going to get really excited about g you told them when it's going to happen i and then finally you have to package all that together into a container right and that's i in some and sometimes i used to call it the power word but i like using the word container because you're just of containing all these things in this word. So that's incubator, intensive, challenge, blueprint, system, sprint, kickoff, jumpstart, like all of those things are container words for the first four parts of this. And so when I'm looking at trying to make headlines for things or different variations of headlines, you might make 10 different variations. And if you use that, that acronym magic, right, the magnet, the avatar, the goal, the interval, and the container, you'll be able

to make quick variations of these things for the same offer in terms of the monetization structure to the marketplace. Hey, Mosin, a quick break just to let you know that we've been starting to post on LinkedIn and want to connect with you. All right, so send me a connection request and note letting me know that you listen to the show and I will accept it. There's anyone you think that we should be connected with, tag them in one of my

or laylist posts and I will give you all the love in the world. All right, so let's get back to the show. All right, so you can, and this will keep your ads fresh, right? This is what's going to keep them popping and continue to confront. convert and what happens is you don't have to change the back end right you don't have to change the actual business model and how you make money it's just changing the front end and so with any of these things the things especially that you're going to be switching will be the duration of time it may be the goal and it may be the reason why the magnet right now who you're

calling out to the avatar it's unlikely to change but you want to be specific about who you're looking for within a local market you might want to you might you might call out specific if calling out men versus women, you're going to probably have different looking creative, different looking funnels if you're calling those people out, right? If you're calling out men over 40 versus 20 year old guys, very different creative, very different copy, very different everything, right? And so that business that you have where you might be serving might serve a specific type of clientele or even if they don't, you can sub segment out the type of clients in and then you'll have higher converting offers because to that discriminatory, that specific avatar, this goal might be better

than the goal for a 35-year-old mom, right? Very different. And so, big picture in creating that formula, I like having acronyms that are easy to remember, and so magical offer, so magic headlines. So magnetic, avatar is called out, goal, intention, sorry, interval, and then container, right? And so I have a nice, cool little graphic that goes with it,

that's in the book. The book's like 320 pages right now, so I'm super excited about it. I think you're going to love it. The first people I've sent it to, maybe I'm, they said it was really good. And I'm pretty excited about because I think you guys will all immediately be able to make a lot more money. The entire first half of the book is about basically creating the single offer.

And then the second half of the book is all the tactics around monetization. The different ways you can weave in free, different ways you can weave in discount offers, and so drag as much cash as possible up front. So anyways, hope you guys dig that. Hope you guys write that down and use that for your creative teams when you guys are making offers, especially in a local marketplace. Like that's what I've, it's like if you're marketing nationally, you're marketing B2B, you don't need to vary the offers nearly as much.

But when you're marketing B2C in like a local market, you've got to change headlines all the time. You know what I mean? You need to change headlines very frequently. A lot of times, you know, every 12 weeks, every month, sometimes you have to change the wrapper for the thing. It's not that you're changing the thing you're offering, but you need to make sure that you're getting around banner blindness. And so they're not like, oh, I've already seen this thing. So anyways, hope that was valid for you. Hope that made sense. Hope that gives you a easy contract to think through making headlines. You don't need to use all five of them when you're making

your headline because sometimes the headline can get long. So in my thought process around this is, or what I found useful is make it as short as possible, but no shorter. Ideally, hit all five, but if you feel like some of them get too long, then you can chop off one of them, one of the pieces. An interesting example of this would be sometimes there are container words that kind of hit two needs. So like if I said a free six-week summer slim down, I've got free and summer, which are both kind of magnatory reason why words. I've got six-week which is the duration, right? And then slim down. Slim down is kind of both a goal, but it's also a container.

And so words can be, can have multiple uses within it. And so I wouldn't need to add like container system or sorry, like lean down blueprint. Like it just would seem kind of duplicative. And so being selective about the words that you're choosing will ultimately allow you to have more brevity in the headline and make them punchier. And the extra bonus points that you get for this is if you can get any of those aspects to rhyme, it will count for two. So anyways, lots of love. Hope you guys use this and I'll catch you guys soon. Bye.