$100M OFFERS: A SUMMARY

Chapter 12

Creating Scarcity

Scarcity can be employed to raise prices, indirectly boosting demand through the perception of exclusivity. Scarcity triggers the fear of missing out or the desire to acquire limited products or services. The fear of loss often outweighs the desire for gain, making scarcity a powerful motivator. Here are some types of scarcity you can use to influence prospects:

1. Limited Supply of Seats/Slots
2. Limited Supply of Bonuses
3. Never Available Again

For physical goods, create limited releases with unique flavors, colors, designs, sizes, etc. It’s crucial to consistently sell out during each release to effectively generate scarcity. Publicize the fact that you’ve sold out to establish social proof and increase perceived value.

In the case of services, limit the number of clients to manage capacity or establish a cadence. This can be achieved through various approaches:

• Total Business Cap: Only accepting a specific number of clients for a particular level of service on an ongoing basis.
• Growth Rate Cap: Only accepting a limited number of clients within a defined time period.
• Cohort Cap: Only accepting a certain number of clients per class or cohort.

Honesty is a transparent and ethical scarcity strategy. By informing people how close you are to reaching the cap or selling out, you create social proof and reinforce the sense of scarcity.

Chapter 13

Creating Urgency

Focus on utilizing urgency to increase demand by reducing the action threshold for prospects. While scarcity is related to quantity, urgency revolves around time. These two psychological triggers can be effectively combined. The chapter suggests four methods for implementing urgency:

1. Rolling Cohorts: Accepting clients within a limited buying window per time period.
2. Rolling Seasonal Urgency: Offering limited-time availability during a specific season with a deadline to purchase.
3. Promotional or Pricing Urgency: Highlighting the potential to miss out on an offer, promotion, or specific pricing structure.
4. Exploding Opportunity: Occasionally presenting prospects with time-limited arbitrage opportunities.

Chapter 14

Bonuses

Bonuses have the power to drive demand and create a perception of exclusivity. The key insight is that breaking down a single offer into its component parts and presenting them as stacked bonuses can significantly increase their perceived value.

Bonuses are supplementary additions to the core offer that amplify the prospect’s perception of the price-to-value ratio. Rather than cutting the price, these bonuses deliver additional value. Anchored to the core offer, bonuses play a vital role in the selling process, particularly in one-on-one interactions. It is advisable to first ask for the sale, and then introduce the bonuses, thereby magnifying the discrepancy between the price and the irresistible value of the offer.

When offering bonuses, keep in mind the following key points:

1. Always include a bonus in your offer.
2. Give each bonus a unique name that highlights its benefit.
3. Clearly explain how the bonus directly relates to the prospect’s specific issue, what it entails, how it was discovered or created, and how it explicitly improves their lives or provides value.
4. Substantiate the value of each bonus using compelling statistics, relevant case studies, or personal anecdotes.
5. Paint a vibrant mental picture of the prospect’s future life and the benefits they will experience by utilizing the bonus.
6. Assign a price to each bonus and provide a justified rationale for its value.
7. Offer tools and checklists as bonuses, as they are often more valuable than additional training.
8. Ensure that each bonus addresses a specific concern or obstacle in the prospect’s mind.
9. Position bonuses to solve future problems even before the prospect encounters them.
10. Each bonus should further expand the price-to-value discrepancy of the entire offer.
11. Enhance the value of bonuses by infusing them with elements of scarcity and urgency.

Additionally, you can explore partnerships with other businesses to incorporate their high-value goods and services into your bonus offerings. In return, these businesses gain exposure to your clients without charge or provide you with additional revenue through affiliate marketing.

Chapter 15

Guarantees

The most common objection in sales is the fear of a product or service not delivering the desired results. Use guarantees to increase demand by reversing the risk for prospects.

A guarantee is defined as a formal assurance or promise that certain conditions will be fulfilled regarding a product, service, or transaction. To make your guarantee more powerful, you need to clearly communicate what actions you will take if the promised result is not achieved within a specific time frame. There are four types of guarantees:

Unconditional Guarantees

This is the strongest type of guarantee, allowing customers to pay and try the product or service with the option to receive a refund if they are not satisfied. It includes options such as a “no questions asked” refund or a satisfaction-based refund triggered by customer dissatisfaction.

Conditional Guarantees

These guarantees come with specific terms and conditions. They may require customers to take certain actions to achieve the desired outcome. Examples include the outsized refund, where customers receive additional money back for completing qualifying work, or service guarantees where work is provided free of charge until the desired result is achieved.

Anti-Guarantees

This is a non-guarantee that explicitly states “all sales are final,” but it is accompanied by a creative reason for doing so.

Implied Guarantees

These guarantees are performance-based and rely on trust and transparency. They include options such as paying a fixed amount per sale, show, or milestone, revenue-sharing based on a percentage of top-line revenue or revenue growth, profit-sharing based on a percentage of profit or gross profit, and various bonus or trigger-based payment structures.

You should sell service-based guarantees or set up performance partnerships. Additionally, you can customize guarantees based on your prospects’ fears, pain points, and obstacles. Combining multiple guarantees can demonstrate your commitment to your customers’ desired outcomes. However, it’s worth noting that clients who specifically choose a product or service based on guarantees tend to be less ideal customers.

Chapter 16

Naming

This chapter explores the issue of “offer fatigue” over time, which is even more prevalent in local markets. Use names to re-stimulate demand and expand awareness of your offer among your target audience.

To attract the right customers, you need to appropriately name your offer. Here is the MAGIC formula, which consists of five parts:

Make a Magnetic Reason Why

Start with a word or phrase that provides a strong reason for running the promotion or presentation.

Announce Your Avatar

Clearly communicate who your ideal client is and who you are not looking for.

Give Them a Goal

Explain the desired outcome or dream result your prospect can achieve by engaging with your offer.

Indicate a Time Interval

Specify the expected period within which your clients can achieve their desired results.

Complete with a Container Word

Wrap up the offer by describing it as a bundle of various components put together, using a container word.

It’s important to note that you don’t have to use all five components when naming your product or service. Using three to five components will suffice to differentiate yourself from the competition. Additionally, when market offers start to fatigue, you can create variations by changing creative elements or images in your ads, modifying the body copy, adjusting the headline or “wrapper” of your offer, altering the duration of the offer, changing the enhancer or the free/discounted component, and adjusting the monetization structure, series of offers, and associated price points.

SECTION V: EXECUTION

This section dives into the practical aspects of making your business goals a reality. With a burst of inspiration and personal experience, Hormozi shares his journey of ups and downs, ultimately achieving his first $100K milestone in March of 2017. This breakthrough marked the beginning of a new chapter in his life as a businessperson and entrepreneur. It serves as a reminder to never give up and to keep forging ahead towards your own aspirations. Let his success story be a beacon of motivation as you embark on your own path to success. Stay determined, persevere, and continue moving forward, as the next chapter of your entrepreneurial journey awaits.