The Game with Alex Hormozi - Part 7: $100M Offers Book

Episode Date: August 19, 2023

“Change here usually just creates inefficiency and operational drag, costing you money, no bueno.” In this episode, Alex (@AlexHormozi) discusses the importance of naming your product or service and how it can attract the right customers and repel the wrong ones. He also shares a formula for creating compelling names and offers tips on how to keep your offers fresh to prevent them from becoming fatigued in the market.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.Get your own copy of the book at acquisition.com/booksWanna scale your business? ⁠Click here.⁠Timestamps:(0:29) - Naming(15:29) - Execution(18:51) - Summary & Closing CreditsFollow Alex Hormozi’s Socials:LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition

Hey guys, welcome back to the last episode of $100 million offers. We're covering three chapters today. Naming, execution, and closing credits. Naming is going to be the biggest heater here. It is a dark horse. It is one of the things that's useful for if you're a local business, if you're an e-commerce store, if you're a software company, if you sell services or anything in between,

if you sell stuff to people, naming it the right way, we'll get the right people to buy it, the wrong people not to buy it, and ultimately make you way more money. Enjoy. Chapter 14, enhancing the offer, naming. implicit egotism effect. We are generally drawn to the things and people that most resemble us. Magic headline formula.

Like the tree that falls in the forest that no one hears, having a grand slam offer will not make you money if no one finds out about it. The goal must be that upon hearing about your offer, your ideal prospects are interested enough to take action. Naming it properly is an integral part of this process. Here's an example. Say you see a free six-week stress release challenge and a float-take center session.

While they may be the same thing, just name differently, you're much more likely to respond to the first. Now here's the rub. Overtime offers fatigue, and in local markets, they fatigue even faster. Why? In a local market, it costs relatively little to reach an entire population.

On most platforms, you can reach 1,000 people for about $20. So if there are 200,000 people in your addressable area, then it would only cost you $10,000 to reach all of them one time. Important disclaimer. Reaching an audience one time in no way means an offer is fatigued. Most people don't even notice an offer the first mention. That's why you need to create new creative, videos and images, and new hooks, stories, and copy around the same offers.

You can still use offers for a long time, but when we're talking about years of use, not months, offers can eventually fatigue. Over time, you can rename the offer to refresh it. This one concept will get you leads forever. I mean it, so pay attention. We are not changing the actual offer. where you're only changing the wrapping paper. If you've put together a bundled offering,

you're still ultimately going to be doing the same things. The work you do, the services you provide, and the products you offer will remain unchained as the name shifts. Again, we're simply changing the wrapper. Here's the simplest formula I've come up with for this process. Magic headline formula. M-A-G-I-C. M for Magnet, A for Avatar, G for Goal,

I for interval, C for container. Important. Not all these components are mandatory. You will typically use three to five of them in naming a programmer service. If you can fit them all in, great, but it's likely the name will become too long. The shorter and punchier the better. So it's a balance between brevity and specificity. The only way to really know what works is to write the names out and test them. Let's run through the components now. Author note. Marketing Theory If you like understanding the concepts behind my chosen MAGIC or magic formula, each roughly translates to attention for magnet, discrimination for avatar, purpose for goal, timeline for interval, and method

for container. Let's start with M. Make a Magic Reason Why. We start the name with a word or phrase that tells people the reason why we are running this promotion. I like to tell people to think like a fraternity party planner. When I was in college, we had a party once because a guy got his wisdom to removed. I say this to say, the reason why can literally be anything. It really doesn't matter so long as you believe it, and you can even make a joke of it, like the fraternity example. But this should answer one or both of the following questions. Why are they making this great offer? Or why should I respond to this offer? What's in it for me? Examples. Free. 88% off. Giveaway. Spring, summer, back to school, grand opening, new management, new building, anniversary,

Halloween, New Year. Note. I will discuss how to monetize free and discount offers in volume 3, money models, but having a promotion or discount gives a good and strong reason why. You can also cite the season or an occurrence that will also give you a strong reason why for the promotion. Announce your avatar. This component calls out your ideal avatar, who you are looking for and who you are not looking for as a client. You want to be as specific as possible, but no more. When in a local area, the more local you can make the headline, the more it will convert.

So don't do a city, try and go to the submarket or hyper-local area, not Baltimore, but Towson, Maryland, not Chicago, but Hinsdale, etc. Examples, bee cave dentists, rolling hill moms, brick and mortar businesses, salon owners, retired athletes, Brooklyn busy executives, etc. Give them a goal. G, this is where you articulate your prospect's dream outcome. It can be a single word or phrase. It can be an event, a feeling, an experience, or an outcome, anything that would excite them,

the more specific and tangible the better. Examples. Pain free. Celebrity smile. First place. Never out of breath. Perfect product. Grand Slam offer.

Little black dress. Double your profit. First client. High ticket. Seven figure. 100K. Et cetera. I indicate a time interval.

You're just letting people know the duration to expect here. This gives an example of how long your results will take to achieve. Note, if you're making any sort of quantifiable claim like income or weight loss, most platforms will not approve this type of messaging with a stated duration to achievement because it implies a guarantee. It implies they're going to get this outcome in a period of time, which goes against many platform rules. So don't give a quantifiable outcome with the duration unless the platform allows it. That being said, a duration is a powerful component of a Grand Slam offer, and you should definitely use it anywhere you don't need to deal with compliance.

Alternatively, if the goal you help them with is not a claim per se, then absolutely use a time interval. $10,000 in 10 days versus make your first sale. in 10 days. Examples. A.A. Minutes. B, B, hours, C.C. Days. D.D. Weeks. Z months.

4 hour, 21 days, six week, two minute, three month, etc. C. Complete with a container word. The container word denotes that this offer is a bundle of lots of things put together. It's a system. It's something that can't be held up to a commoditized alternative.

Examples. Challenge, blueprint, boot camp, intensive, incubator, master class, program, detox, experience, summit, accelerator, fast track, shortcut, sprint, launch, slingshot, catapult, explosion, system, getaway, meetup, transformation, mastermind, game plan, deep dive, workshop, comeback, rebirth, attack, assault, reset, solution, hack, cheat code, liftoff, etc. Pro tip. Find time to rhyme. Good rhymes stick in people's minds. Rime your program name to win the game.

Google rhyming dictionary for an easy shortcut. Note, don't try and force it. It's not a requirement. It's just a nice to have. six-pack fast track, five-day book print, sprint, marriage thrive, deep dive, 12-week, two-putt shortcut, 12-month, no-deat reset, celebrity butt shortcut, get some ass masterclass, just thought it was funny, etc, you get the idea. Next pro tip, alliteration. Alliteration is where you make all or most of the words start with the same letter or sound. An alternative approach to rhyming is to use alliteration when you're naming your program. This is easier for most people than rhyming. Again, you don't need to rhyme or alliterate, don't force it, but if you can, I think it sounds better.

Example, Make Money Masterclass, Change Your Life Challenge, Big Booty Boot Camp, Debt, Detox, real estate reset, life coach liftoff, etc. I might be weird, but naming offers is one of my favorite parts of this process. What I want to highlight yet again is that your actual money model, pricing, and services will remain largely unchanged. Changing the wrapper simply means changing the exterior perception of what your Grand Slam offer is. Below you'll find a few examples of named offers for different industries. Wellness.

Free six-week Lean by Halloween Challenge. 88% off 12-week bikini blueprint. Free 21-day Mommy Makeover. 60-minute make-your-friends jealous model hair system. Six-week stress-release challenge. Free. Bendover back pain-free in 42 days. Healing fast track.

Doctors. $2,000 off celebrity smile. Lakeway moms. $1,500 off your kids' braces. Lakeway moms. 12 months to a perfect smile. $1,000 off for 15 families. Back to school, free braces giveaway.

Grand opening, free x-ray and treatment, instant relief. Backsore, no more. 90-day, rapid healing intensive, 81% off. Tightness, $1 massage, new client summer special. Coaching, five clients and five days blueprint, seven-figure agency 12-week intensive, 14-day find-your-perfect product launch.

Fill your gym in 30 days free. I can keep listing these, but hopefully you get the idea. Now it's time for you to give it a try for your grandkids. Grand Slam offer. Again, you don't necessarily have to use all the power components of the headline. Using three to five will typically create something that is more unique and desirable, allowing you to separate yourself from the competitive field and create an offer that will get clicks and engagement and ultimately make you money. Furthermore, you don't need to do them in the magic order. Do what sounds puncher to you. After doing this for a while, you'll see that some offers convert better than others. That's natural. And every once in a while,

you'll get a name that takes off like a rocket. I honestly have no idea why some names win and others do not. So, don't be emotional about it. Keep trying, keep striking out, then try more, you'll get there. Now that you have several working names for your offer, you can use two or three of your best names in your advertising campaign. Quickly note the winner, then use that as a control to test against with new names. That is how you promote. Pro tip. Name sub-items and bonuses. Use the magic headline formula for each item in your stack and bundle.

It will automatically enhance the value of your offering simply by naming it in a way that resonates with your prospects. What happens when offers fatigue? As you market offers, you will need to create variations over time as the taste of the market change over time. Here's the order in which you will change things to keep lead flow consistent. First, change the creative. The images and pictures in your ads. Next, after that doesn't work, change the body copy of your ads itself. If that doesn't work, change the headline or the wrapper of your offer.

So, free six-week lean-down challenge turns into free six-week toning. challenge. Or holiday hangover to New Year New You. If that doesn't work, change the duration of your offer. If that doesn't work, change the enhancer of your offer, your free or discount component. Six. If that doesn't work, change the entire monetization structure, the series of offers you give prospects, and the price points associated with them. That is much more covered in book two and three. I follow this variation framework because most of the time, it's the first handful of items they need to be changed. Typically, they need to be changed again and again without touching anything on the bottom of the list. For example, when ads fatigue, we don't change our entire

business. We run the same out again with a different video or image. Once that stops working, we change it again. Eventually, you need to change the words on your ads and repeat the process. Then and only then would you change the wrapper. So let's say we change from a six-week stress release challenge to a 42-day relaxing holidays challenge for a massage center. Same core offer, just a different wrapper. Then, of course, you can change. the duration of your offer, six week to 28 days or eight weeks, etc. The lower on the list you go, the more operationally heavy it is, so be really sure you've exhausted the earlier, quote, lighter, ways of varying the offer. Once you've monetized the offer, rarely should you change

it. Just rinse and repeat over and over again. This can be hard because we are entrepreneurs and we love change. Change here usually just creates inefficiency and operational drag, costing you money. No Bueno. So use your entrepreneurial ADD on the wrapper first, the look and feel of the offer, copy, creative headlines, then change the seasonality of the offer, then change the duration. If you're stuck, change what you're giving way for free or discounted. Change the entire machine behind it only as a last resort and for darn good reason, especially once you get traction. But how do you get initial traction? Good question. Try the offer structure and headline you think has the highest likelihood of working, then stick with it. And if it doesn't convert

it first, don't worry. You'll get better. Oftentimes, if you're using these types of models, many of them will work. In that case, stick with the one that gives you the highest return. You can also rotate between offers if it doesn't create lots of operational drag for your business. This is the ultimate position of power. You have multiple aces in the hole that you can play at any time, which keeps your marketing converting at an even higher level. Author note. Marketing for local businesses. Ironically, local business marketing is both easier and harder than national level marketing. It's easier to get to work, but harder to keep working or scale. And the reason

is, in local markets, it's easier because there's trust in the familiar. So selling in person at higher prices and a local market is inherently easier. It means you will convert a much higher percentage of your leads. This makes marketing work most of the time. The downside of local marketing is that offers fatigue rapidly because there is only a limited radius that a local business can serve. To reference an earlier concept, the TAM, total adjustment market for a brick and mortar, is only its immediate radius, most times. So by extension, the smaller radius, the faster the offer fatigues. This is a double-edged sort of local. Learning to rapidly vary my offers, headlines, and creative when I had my local businesses

was a cornerstone skill that made my expansion to a national level advertising much easier for me. So if you are in a local market, just remember you aren't going to change the value stack of your offer. You're just going to change the way it looks to the marketplace in your marketing. Naming summary. We must appropriately name our offer to attract the right avatar to our business. True to the moniker, people do judge a book by its cover. Half-ass naming your product or offering can ruin its own. conversions. Don't fall victim to lazy naming. Follow the steps here to name your product or service

offering and watch the same offer get two times, three times, or ten times the response rate. You'll believe it when you see it. I know I did. Enhancing your offer section recap. Congrats. You figured out how to make your offer valuable, how to break your services into component parts, and how to re-bundle them into more valuable whole. You added a guarantee to get more people to buy your offer and actually consume it so they could be more successful. You presented it with urgency and security to get more people to desire it, and now you've named your offer so it attracts the right prospects and repels the bad ones, all while containing a big promise everyone can understand. But we covered a lot. So I want to give you a quick breather before we forge into Book 2

to help you attract clients and monetize your offer. Free gift number 10. Bonus. Create the perfect name for your product. Naming your product properly helps your avatar know the product is for them and is valuable and will solve their problems. If you want to do this live with me, go to Acquisition.com forward slash training, for slash offers, and select naming products to watch a short video tutorial so you can start using this in your business to make more sales ASAP.

I also made a free naming formula checklist for you to use and reuse with your team. It also works for naming promotions. As always, it's absolutely free. Enjoy. Hey guys, last call on the $100 million physical copies and Kindle, this is on Amazon. You can go and find them there

if this has been useful for you and you want to have additional formats that you can have in your office to remind you to keep value at the top of your mind or have something to reference. For me, I like having notes and highlights and things that I can always flip to immediately without worrying about the Wi-Fi or trying to scroll through things or let something load or trying to search for a thing. I just like having it available for me. So if you're like me, you know, go to Amazon, grab a copy. If not, enjoy the rest of the last episode. Section 5. Execution

How to make this happen in the real world. Chapter 16. Your first 100,000. The first 100,000 is a bitch, but you gotta do it. I don't care what you have to do. If it means walking everywhere and not eating anything that wasn't purchased with a coupon, find a way to get your hands on a hundred grand. After that, you can ease off the gas a little bit. Charlie Munger, Vice Chairman Berkshire Hathaway. March 2017.

My heart was racing. I could literally feel each beat pounding into my chest. I clenched my jaw to fend off the knot in my throat that I knew would lead to tears. I wanted to give in. Years of emotions were bottled below the surface. Years of ignoring my reality and lack of success. Years of putting off how I felt just focusing on moving forward. The pressure was shooting to the surface.

I could feel it. We did it, I said. Layla, my wife now, looked up at me. She was in the kitchen making dinner and stopped, spatula in hand. What do you mean? We did it. We hit 100 grand. I could barely say the words because I didn't want the tears to break through

the tremble in my voice. Like revenue? No, like in our personal bank accounts. Holy shit, really? That's amazing. She ran over to me, disregarding the food on the stove, and wrapped her arms around my neck. Spatula is still in hand. I'm so proud of you.

She squeezed me. I slumped into her arms. It was like every knot in my body that I had been holding onto, melted all at once. I could barely contain myself. But when I think back to it, the feeling I had was in happiness, who was relief. I'd moved from fear to security. I'd traded feeling like a failure every day, watching my work and effort yield nothing, to realizing a dream. the constant anxiety and fear of, what are we going to do?

Finally, replaced by something else. I finally had time to let myself feel something. I felt like this struggle chapter of my life was finally over. Look, I said, it's for real. I nuzzled my head out of Layla's arms. I didn't want to look her in the eyes because I knew it would put me over the edge. I pulled my phone out and put it between us. We both stared at the unmoving screen with our personal bank account balance.

$101,018. Our gaze remained unbroken, as it confirmed our new shared reality. It wasn't an illusion. It wasn't revenue. It wasn't profit that was still in the business account, only to be taken out later by some unforeseen emergency. It wasn't earmarked money that had to be used to pay off some debt. It was ours.

It was real. Babe, we could fuck up and not make another dollar for three straight years and still be okay. At the time, $33,000 per year was more than enough for us to live on at our current expenses. for three years and some. Years of ups and downs, years of plowing money into my businesses only to watch it vanish in overhead, payroll, and mistakes.

Years of seminars, courses, workshops, coaching programs, masterminds had finally turned into wealth. It felt like I had broken into a new plane. The relative increase in wealth was more than I have ever felt. Tens of millions of dollars in the bank later, it was, and still is,

the richest I have ever felt in my life. It was the beginning of the next chapter of my life as a business person and entrepreneur. Some people get there fast, some people get there slowly, but everyone gets there eventually as long as you don't give up. Keep moving forward, keep getting up, keep believing it can happen, and it will. In a nutshell, we've covered a lot, and I think it's important for information to sink in, that it be consolidated and restated. So this is the back of the napkin bullet list to summarize what we've learned so far and why. One, we covered why you must not be a commodity in this marketplace.

Two, why you should pick a normal or growing market and why niches get you riches. 3. Why should charge a lot of money? 4. How to charge a lot of money using the four core value drivers. 5. How to create your value offer in five steps. 6. How to stack the value, deliver it, and make it profitable. 7. How to shift the demand curve in your favor using scarcity. 8. How to use urgency to decrease the action threshold of buyers. 9. How to strategically use bonuses to increase the demand of your offer.

10. How to completely reverse buyer risk with a creative guarantee. and 11. How to name it in a way that resonates with your avatar. You now have a valuable, high margin, decommoditized grant slam offer. This is the first building block of a wonderful business, a product or service that people desperately want and truly solves their problem. For many, this will be enough to make far more sales at higher prices with more profit. Your first true grant slam offer should be able to get you to your first hundred grand. For others, you will still want more, which is 100% your right as a capitalist. There's so much more to building an acquisition machine profitably. I could not.

covered all in one book. Out of respect for you, I wanted to make this thorough but manageable. That being said, the next book is dedicated to exactly that, getting more, through generating leads. In that book, I will break down exactly how to acquire customers at a profit, meaning if you structure promotions properly, you should never have to pay for a new customer again, and that is the subject of acquisition volume 2, $100 million lead generation. Final thoughts. Entrepreneurship is about acquiring skills, beliefs, and character traits. To advance, I find that we must determine which skills, beliefs, and character traits we lack. Most times, we simply need to improve. The only way to do that is through learning from experience and or high quality sources.

I have received terrible advice from people who were ahead of me at a time, and though experience is the best teacher, she is not the kindest. It is my most sincere hope that what I produced provides the guidance I so desperately needed when I was coming up on my entrepreneurial journey, and I wish I could cover it all in a single book, for my sake and yours. But to do you the service I wish I had had. I cannot. The devil is in the details. Excellence exists in the depths of knowledge and nuances. That's what separates the grates from everyone else. I hope that in all the content I produce, you see my dedication to this detail and nuance that makes all the difference. These lessons were hard one. I hope you enjoyed the first volume in my $100 million series. Before we move forward

into volume two, what we'll be focusing on lead generation. As mentioned above, I want to circle back to where we started. After reading this book, I hope, one, you're well on your way to creating your first Grand Slam offer, or at the very least can take components of that you were missing in your offer to make it more compelling to your market. I also hope that I've delivered on my promise from the beginning of this book, that investing two to three hours of your time here would yield you a far higher return than just about anything else you could do. And thirdly, I hope in return I've taken one small step to earning the thing that I value most from you, your trust. Finally, I hope this book creates a small dent in improving the world because I believe no one is coming to save us.

It's up to us as entrepreneurs to innovate our way into a better world, and that's something I'm willing to vote my life to. And I hope you are too. I'm grateful for your attention. You could have given it to anything, and you chose to invest it with me. I take that in the highest regard. So sincerely, thank you. Stay hungry, Alex.

P.S. See the Golden Ticket. Admit 1. If you're doing $3 million to $50 million per year, and you'd like my help one-on-one scaling your business, go to Acquisition.com. Specifically, we help service, education, training, consulting, brick and mortar, or niche licensing companies scale so profitably, they only have to get rich once. I'm not to make your first dollar guy.

I'm the make the last dollar you'll ever need to make, guy. If that sounds like you, you're savvy enough to figure out how to get a hold of me on my site and book a call. I would love to meet you and hear about how your business is working and see if we can help and hopefully invest and watch you grow. Would you be opposed to growing faster? If not, you can check out my next book, aptly named Acquisition.com, Volume 2, lead generation, which covers, you guessed it, lead generation.

You'll never run out of new customers if you follow the steps in that book, especially now armed with the offer we have built. Not sure if that's the final name, it's still in edits, but if you search for my name, you'll probably find it. You'll also likely find it on my site, acquisition.com. Next, audiobook. If you like listening and having all your books with you to reference, that's what I do. You can grab the Kindle version or the alternative version of any or all of my books on Amazon.

I like reading and listening at the same time to increase my absorption and consumption speeds. Just search for the book titles in the book. come up. Podcast. If you like listening, I have a podcast called The Game, where you can tune in to short episodes that deliver tactical lessons learned from failures so you can get to your goals faster. Check out the podcast here, Alex'spodcast.com. YouTube. I have a YouTube channel with fresh tutorials a few times a week. You can just search my name, Alex Ramosey, to find it. Instagram, you can follow me, Instagram if you like the more personal stuff at Hermosey. The end. Acquisition.com, volume one, $100 million.

offers. How to make offers so good. People feel stupid saying no. Written and performed by Alex Hermosie. Copyright, 2021, Acquisition.com. Audio production copyright, 2021, acquisition.com. Hey, guys, I hope you enjoyed this magical journey with me of $100 million offers. A lot of love into this book, and I hope you guys could feel it from what you hopefully consumed over the last six or seven episodes with me. I just wanted to let you know that we also have $100 million leads available on audio for free. And it should be starting, I think, right after this episode. If not, you can probably search it online and find it.

But either way, it has been my absolute pleasure to serve you. And if this whole book provided you any value, if you could take 60 seconds to leave it a review, it would help somebody else find it to and hopefully provide value to them. If it didn't earn those 60 seconds, then by all means, don't, don't do it. But if it did earn the 60 seconds from you, it would just, it would just mean a lot. So thank you guys. You guys are amazing. And I can't wait to see the success stories of what you use and what you do from

$100 million offers. And if you're listening, if you're going to be tuning into $100 billion leads, I will be seeing you in just a moment.