Are you tired of selling? Are you promoting your products everywhere, but still no one is buying them? The problem might not be with your product, but with how you’re offering it. According to Alex Hormozi, who built a business worth hundreds of millions of dollars, if your offer is good enough, you don’t need to be an expert at selling.
Welcome to octavianto.com! In this article, we will reveal the strategies for creating offers from 100 Million Offers by Alex Hormozi. This book has led people to say, “Take my money now.”
As a business owner, you are like a gambler. Every day, you invest money in paying employees, stocking inventory, renting a location, and advertising. You do all this with the hope of making a big profit. Often you lose, but when you win, you can win big. The difference between gambling at a casino and running a business is that, in business, you can change the odds in your favor. In a casino, the odds are always in the house’s favor. But with the right skills, you can become the house in business. You can become the one who always wins.
Alex Hormozi emphasizes the importance of the offer, or what you are offering. After all, the offer is the starting point of every transaction. It’s what you exchange for money from customers. Hormozi teaches how to create highly profitable offers. Offers that can transform advertising costs into substantial profits. He calls this ideal formula the “grand slam offer.” It is the perfect blend of price, value, guarantee, and naming strategy.
The term “grand slam” comes from baseball, and it’s a term that’s been used for a long time. It’s when a player hits a home run with all bases loaded, and boy, do they score a lot of points then! It’s like a grand slam, and it’s not something you’ll come across every day. But when it happens, it can change everything. And here’s the best part: creating this amazing offer is just as easy as creating a regular offer. What matters most is your skill. With enough practice and a little failure, you can totally master this skill! Hormozi is an amazing player. He’s hit four or five grand slams during his career! Let’s learn how to make grand slam offers like Hormozi.
So, what exactly is an offer? In the business world, money only flows when there’s a mutual exchange of value. Money is exchanged for something that customers think is more valuable. The process that starts this exchange is the offer. When you make an offer, you’re basically saying what you’re offering — whether it’s a product or service — and how you’ll take payment. You’re also setting out the terms and conditions of the exchange. This is what potential customers see. This is what will make them decide whether to buy or not. We all know that without an offer, there’s just no way to make a business.
We all know that bad offers can lead to losses, and we’re here to help you avoid them. I’m sure we can all agree that mediocrity is not the path to success for a business. I’m happy to tell you that good offers can lead to small profits. But, my dear, Grand Slam offers change. We know you’re looking for huge profits, extraordinary business growth, and financial freedom.
Entrepreneurs often face two major challenges: getting enough customers or securing the necessary funding. You know, people often try to attract more customers by lowering their prices. But, I’m worried that this might reduce our profit margins, increase our workload, and ultimately lead to losses. It’s like a race to see who can sell the cheapest. This can lead to businesses spending more time and effort than office workers, even if the rewards aren’t as substantial.
I know this isn’t the life you dreamed of when you first started your business. I know it can be tough, but you’re not at fault. The business models we’re used to aren’t designed to maximize profits. They were created by large companies that can afford to lose money for years because they are funded by investors. Hey, we get it. You’re an entrepreneur without investors, so you need to make some money fast to reinvest. We’re in the same boat, so we understand.
Hormozi has made some costly and painful mistakes in business, but he’s a great guy with a lot of potential. He wrote this book to help you learn from his mistakes without having to make them yourself. We know how hard it is to learn a new sales strategy. But we also know that Hormozi’s proven sales strategies are a game-changer. You’ll be able to see and apply them right away. You’ll attract more customers, make more money, and reduce stress. The best part? Changing your sales approach is one of the easiest things you can do in business. It’s not about making big changes to the company culture or creating complex long-term plans. It’s all about finding that sweet spot where you can sell your products or services at a premium price, but still make your customers feel like they’re getting an amazing deal.
Commodities.
Have you ever sold a good product, priced it right, promoted it well, but only a few people bought it? And when people ask, they just say, “This is expensive, isn’t it? It’s cheaper elsewhere.” Hey, congrats! This means you’re selling a commodity, and your product looks like everyone else’s. When it comes to commodities, the most important thing to consider is the price. Whoever sells it at the lowest price wins. But in reality, they’re also losing because their margins are extremely thin. Their profits are almost nonexistent. I understand that it’s tough, but if a business can’t raise its prices, it’s struggling. I totally get it—inflation is on the rise, costs are going up, the competition is getting more intense, and market prices are growing around 9% per year. If you’re not keeping up, you might feel like you’re falling behind.
The solution is simple: grow by only 3. That means adding new customers, getting them to buy more, and encouraging them to buy more often. But, I know, that’s easier said than done. How are you supposed to make your product stand out when it looks just like all the others? That’s why you shouldn’t just sell products; you need to sell offers. And not just any offers, but grand slam offers! A grand slam offer is a combination of your main product, relevant bonuses, guarantees that give customers peace of mind, and convenient payment options. This combination makes your offer look so much more valuable than the price you set.
For example, in the book, there’s a modeling agency that started out looking for clients the regular way, with pretty typical results. But after switching to a model where we only get paid if you get results, BOOM… your income increased 22 times! Why? I totally get it—the offer is different, bold, and the results are clear. Price wars are not the way to go. You can turn your product into an offer that’s truly one-of-a-kind. That’s the best way to avoid the trap of being stuck in the same old routine and start making real money. Commodities are purchases based on price. Grand slams are purchases based on value, so you can feel good about buying them.
Determining the Price:
*. Finding the right market.
*. Looking for a hungry crowd.
A marketing professor once asked his students a really interesting question: “If you wanted to open a hot dog stand and could only choose one advantage over your competitors, what would you choose?” Answers began to emerge. We’re in a great location, our taste is top-notch, and our prices are the lowest around. But the professor just smiled and said, “A hungry crowd.” What he meant was that you could sell hot dogs that taste average, in a less-than-ideal location, and at a high price. But don’t worry if your food cart is in the middle of a crowd of hungry football fans. You’ll still make a big profit! That’s the amazing power of a hungry market.
I remember when toilet paper became scarce during the early stages of the pandemic. There weren’t any discounts or advertisements, and prices even went up. But it still sold out, not because the product was great, but because the market was in desperate need.
Hormozi’s friend, Lloyd, has a software business for newspapers. For almost 10 years now, he has been helping them sell digital ads with a profit-sharing system. But, you know, things have been getting a bit slower and slower. He’s given it his all, but nothing has worked so far. It turns out the problem is with the market. It’s sad, but it’s true: the newspaper industry is becoming less relevant each year. In fact, it’s declining by 25% every year. He’s got a great product and he’s a really good salesman, but he’s up against some tough competition in a market that’s not doing so well. In the end, he had no choice but to close up shop.
When the world faced the challenges of the pandemic, Lloyd’s heart was moved to switch his focus to helping others by making masks for people in need. He was able to produce masks at a lower cost than the ones imported from China. I’m so happy to tell you that within five months, he had reached a turnover of millions of dollars per month. He was a newcomer to this field, but he was eager to learn and grow. The lesson is clear: your abilities may be the same, but the results can vary greatly depending on the market.
So, How Do You Choose The Right Market?
1. Go out and find those markets that are going through a rough patch.
What they really need is a solution. This pain can take many forms. We’ve all been there: financial ruin, broken relationships, physical illness, or even simple things like long queues and a lack of confidence. The more they’re in pain, the more you can charge them. Remember, pain is the most powerful sales tool.
2. Just make sure the market has enough money.
My friend once tried to help people create resumes so they could find jobs more easily. The program was designed to support unemployed individuals who were facing financial challenges. So it was useless. It’s important to make sure your market can pay for your product or service.
3. It’s So Important That The Market Is Easily Accessible.
You can have the coolest product in the world, but if people can’t find it, it’s not going to sell. When looking for markets, it’s always a good idea to check out the community, associations, social media groups, or email lists in the area. The key is making them easy to find and reach.
4. When You’re Ready To Get Started, It’s Always A Good Idea To Choose A Market That’s On The Rise.
If your market is like a newspaper, it’s probably struggling. I know how hard it is to make an offer, no matter how good it is. But if the market is on the rise, it’ll be like a helping hand, gently guiding your business forward.
There are three categories of markets that always exist: health, wealth, and relationships. It’s important to remember that not having these things can lead to some discomfort. Your job is to find a small niche in one of these three large markets that is growing, has money, and is easy to find. For example, if you’re a relationship consultant, you’ll find that lonely parents are a more profitable target than college students. They might feel a bit lonely, in pain, and have retirement funds and money. They’re also pretty easy to find. Focus on the target! The secret to success is to choose one market and stick with it. Don’t get discouraged if you haven’t seen any results yet. It’s possible that the market just isn’t the right fit for your offer. If you keep jumping from one field to another, you might find yourself starting over.
It’s important to take the time you need to find the right approach. The more specific your target market, the higher the price you can charge, even for the same product. For example, if you sell time management courses, the general market price might be $1,000, but if you target professional salespeople, you could charge $2,000. If you narrow it down further to B2B sales or business-to-business, the price could go up to $5,000. If you focus on B2B sales of gardening equipment, it can be even more expensive, and you can sell it for 10,000 because the results are clear and measurable for them.
This is called a niche, which is basically a specialization in the market you’re targeting. The content of the course you’re selling is almost the same, but the more specific the target, the higher the value. And don’t forget the four conditions I mentioned, especially making sure that your target market has money. You could consider offering a time management course for students who receive scholarships. But can you sell it to them at a high price? Oh, no! If you can sell the same product at 100 times the price simply by focusing on a specific niche, then go for it! Hey, let’s focus on your target audience and see what their needs are. Then, we can come up with some unique solutions that will really hit the mark.
It’s important to remember that a hungry market is more important than sales skills or product strength. The order is: market > offer > persuasion skills. If you find yourself in a market where there’s a lot of competition and people are eager to buy, even products that might not be the best or if you’re not the best at selling them, you can still make money. But in a normal market, you need a super offer. If the market and offer are ordinary, it’s essential to be a persuasion pro!
That’s all for now. If you’re interested in reading more, want to know more, and learn more, please read the follow-up article in part 2.
Thank you so much for taking the time to read this article. I hope you find it useful.