$100M Money Models - How to Make MONEY [Alex Hormozi]

Part One: Attraction Offers [00:37]

• Key Insights:

  • Attraction offers aim to attract customers with free or very cheap initial offerings, subsequently leading them to purchase more expensive items.
  • Five types of attraction offers are detailed: Giveaways, Decoy Offers, Buy X Get Y Free, Win Your Money Back, and Pay Less Now or Pay More Later.
  • Giveaways involve a grand prize and discounted offers for non-winners, creating urgency with limited entries or timeframes.
  • Decoy offers use a cheap or free initial option to highlight the superior value of a premium offer.
  • "Buy X, Get Y Free" leverages the psychological power of "free" to increase perceived value and encourage higher spending.
  • "Win Your Money Back" offers can drive sales and marketing through customer transformation photos, provided the business has strong upsell opportunities.
  • "Pay Less Now or Pay More Later" removes risk by allowing customers to pay a lower amount upfront or a higher amount later, contingent on results.

  "If your giveaway doesn't work, that means your grand prize wasn't grand enough."

Part Two: Upsell Offers [13:22]

• Key Insights:

  • Upsell offers focus on increasing the value of a single transaction by suggesting more of what the customer just bought, better versions of it, or complementary items.
  • Menu upsells involve "unselling" by crossing out items the customer doesn't need before prescribing what they do, then offering choices (A or B).
  • Anchor upsells present a significantly more expensive item first to make a subsequent, less expensive offer appear more affordable by comparison.
  • Rollover upsells apply a customer's previous purchase value as a discount towards a more expensive, newer, or different offer.
  • Classic upsells involve stacking offers that address a customer's subsequent needs or potential problems, creating a sense of necessity.

  "The second worst thing that happens is they say no. The worst thing is they would have said yes, but you never asked."

Part Three: Downsell Offers [26:25]

• Key Insights:

  • Downselling aims to convert a "no" into a "yes" by offering something different for less, rather than simply lowering the price of the same item, which erodes trust.
  • Two primary rules for downselling: change how they pay or change what they get.
  • Payment plan downcells offer flexible payment structures to accommodate customers who cannot afford the full price upfront.
  • Free trial downcells, when paired with a condition (e.g., attending training, providing credit card details), increase the likelihood of conversion by ensuring product engagement.
  • Feature downcells reduce the price by cutting down on quantity, quality, or specific features of the product or service.

  "Never ever lower your price, but make a better offer with downell."

Part Four: Continuity Offers [35:25]

• Key Insights:

  • Continuity offers are designed to create steady, recurring revenue streams by encouraging customers to keep paying over time, such as through subscriptions or memberships.
  • Bonus offers provide additional value or perks when customers commit to a long-term plan, often with a discount for upfront payment.
  • Continuity discount offers involve providing products or services for free or at a reduced rate for an initial period, contingent on a longer-term commitment.
  • Waived fee offers present two options: a large upfront fee or a commitment to a longer term where that fee is waived, incentivizing long-term engagement.
  • The ultimate goal is to build predictable cash flow and customer loyalty through ongoing relationships.

  "The smartest businesses don't just sell once. They create a way for customers to keep paying over and over."