Book Summary: $100M Offers by Alex Hormozi

You might recognise this guy.

I picked up $100M Offers?after several recommendations - it felt timely given the nearing launch of my first venture.

What I didn't realise is that the author,?Alex Hormozi, is a familiar face. One that is all over social media platforms with viral clips where he talks about business and sales.

I read this book for two reasons:

1. To learn how to create the most valuable offer.
2. And to determine the pricing strategy for a product.

This is what I took away:

The Value Equation

If an offer is not converting or customers are cringing at the price it is not valuable enough.?

Here is how to increase the value:

1. Dream outcome:?What the prospect wants.
2. Perceived likelihood of achievement:??How does the customer know it will happen?
3. Time delay:?How long will it take?
4. Effort and sacrifice:?What does the customer have to do?
5. Value:?How much the customer is willing to?pay.

In a perfect world, you deliver a product or service that achieves exactly what a customer wants, guaranteed, overnight, and with no effort on their end.

Get the bottom to zero:

Making big claims is easy and lazy - anyone can make a promise.

You will notice that the best companies in the world focus attention on the bottom side of the equation - the variables you want to decrease.

• Amazon?made purchases arrive almost immediately.
• Netflix?made watching tv immediate and effortless.
• Apple?made its products effortless to use.
• Shop Pay?made one-tap checkouts.

Customers pay a lot more to decrease time and increase convenience.

To me, that is what being an entrepreneur is all about - raising the convenience of service to translate that into customers.

Pricing

How most people set prices:

1. Look at the market.
2. See what everyone else offers.
3. Take the average.
4. Go slightly below average.
5. Provide what their competitor offers with a “little more”.
6. End up at a value proposition of “more for less”.

It is a race to the bottom.

Here is how you should set the price:

Of course, you should never charge more for a product or service than what it is worth.

But, maximise the value you deliver and understand that when you charge more - the variables in the image above increase too.

The goal is to be so much more expensive that a customer must pause and think, "this cannot be the same category of solution as everyone else" thereby making you a category of one.

Avoid being a commodity at all costs.

Should you read it?

I gave it a 4/5 on Goodreads - it was great - but not exceptional.

For the two reasons I bought the book, it hit the nail on the head and was helpful.

The rest of $100M Offers didn't get as much cut through with me.

I would recommend it - particularly if your considering starting a business - a lot of what Hormozi writes gets your brain ticking.

If you don't like reading, watch it in video format here.

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