Alex Hormozi: $100M CEO explains: How to CREATE a $100,000,000 product..[leaked training]

Last updated: Jun 15, 2023

The video is about Alex Hormozi sharing his experience of making $1.2 million per month in dividends and giving advice on how to create a $100,000,000 product through focusing on offers.

This video by Alex Hormozi was published on Dec 1, 2021.
Video length: 48:17.

In this video, Alex Hormozi shares his personal success story and offers advice on how to create a $100,000,000 product.

He emphasizes the importance of focusing on offers as the fastest shortcut to material success in a business and provides a quick framework for making offers. He also discusses the misconceptions around the "laptop lifestyle" and encourages people to make work cool again.

Hormozi shares his personal experience of seeking out freedom but realizing that options and enjoying the work you do are more important.

  • Alex Hormozi earned more than the CEOs of several major companies combined.
  • Money only solves money problems, and success habits only care about the work done.
  • Four main offers to focus on are the lead magnet, tripwire, core offer, and profit maximizer.
  • To create a $100,000,000 product, focus on making the offer irresistible and unique.
  • The goal is to de-commoditize the product or service and target the right avatar.
  • An effective offer will force customers to make a values-based decision instead of a price-based decision.
  • Changing the offer can significantly increase the return on ad spend and transform a not-even-break-even offer into a highly profitable one.
  • Picking the right market and creating a category of one are key to success.
  • Continuity programs provide recurring revenue and can be used to scale a business.

$100M CEO explains: How to CREATE a $100,000,000 product..[leaked training] - YouTube

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Alex Hormozi's Experience

  • Alex Hormozi was able to take home more in a year than the CEOs of McDonald's, IKEA, Ford, Motorola, and Yahoo combined.
  • He earned 1.2 million dollars per month in dividends for nearly the last half decade.
  • He expresses this fact early on in the presentation, which may create envy, anger, skepticism, confusion, or inspiration in the audience.
  • He is making this presentation for people who want to do well and be successful.
  • He shares some observations, such as everyone wants you to do well, just not better than them, and no one actually wants you to be rich except for you.
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Money and Success

  • Money only solves money problems, and then you are left with problems that money can't solve.
  • Success habits and wealth only care about the work that is done, not about your character.
  • Money won't solve all your problems, and you don't actually arrive ever, you just enter a new club as the smallest member.
  • Work should be cool again, and we should stop demonizing the grind, hustle, and putting in the hours.
  • If you enjoy the work you do, you have arrived.
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Framework for Making Offers

  • Offers are the fastest shortcut to material success in a business.
  • The first thing to do when taking over a business or investing in it is to look at the offer stack, which is the sequence of offers made to customers and prospects over their journey with the business.
  • Four main offers to focus on are the lead magnet, tripwire, core offer, and profit maximizer.
  • The lead magnet is a free offer that attracts leads and builds trust.
  • The tripwire is a low-priced offer that converts leads into customers and covers the cost of acquiring them.
  • The core offer is the main product or service that solves the customer's problem and generates the most revenue.
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$100M CEO explains: How to CREATE a $100,000,000 product..[leaked training] - YouTube

Creating a $100,000,000 Product

  • To create a $100,000,000 product, focus on the offer and make it irresistible.
  • Make sure the offer solves a big problem and provides a big result.
  • Make the offer unique and different from what is already available in the market.
  • Use scarcity and urgency to create demand and increase the perceived value of the offer.
  • Test and optimize the offer to improve its conversion rate and profitability.
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Four Key Issues in Business

  • The commodity problem: the goal is to de-commoditize the product or service.
  • Targeting the right avatar: focus on the customer who can generate the most long-term revenue.
  • Charging a premium price: make sure the product or service can be sold at a higher price.
  • The value equation: scarcity, urgency, bonuses, guarantees, and naming are all things that will enhance the effectiveness of the offer.
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The Importance of Offers

  • An offer is the starting point of providing a product or service in exchange for money.
  • An effective offer will force customers to make a values-based decision instead of a price-based decision.
  • The goal is to decommoditize the offer so that it can be sold in a category of one.
  • An effective offer will increase the click-through rates, conversion rates, and price of the product or service.
  • An example of a successful offer is transforming a not-even-break-even offer into a free six-week challenge, resulting in a 30-1 return on advertising.
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Real-Life Examples of Successful Offers

  • Transforming a weight loss offer from $99 a month to a free six-week challenge resulted in a 30-1 return on advertising.
  • Changing a retainer offer from $1500 a month to a value-based offer resulted in a 22x increase in the return on ad spend.
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The Power of Changing Offers

  • Changing the offer can significantly increase the return on ad spend.
  • Changing the offer can transform a not-even-break-even offer into a highly profitable one.
  • Changing the offer can force customers to make a values-based decision instead of a price-based decision.
  • Changing the offer can increase the click-through rates, conversion rates, and price of the product or service.
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Changing the Offer

  • Introduced a new offer: pay once and work all leads for the customer, only pay after someone shows up.
  • Advertising spend was the same, but response rate increased by 2.5x.
  • Appointments increased from 40 to 100, with 75 people showing up instead of 30.
  • Closing rate increased from 16% to 37%, resulting in 28 customers at $4,000 upfront.
  • Changed the offer, resulting in a 22.4x increase in cash collected upfront.
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Finding the Right Market

  • 600 million in top-line revenue group.
  • Realized the group was successful because they were going after better markets.
  • Picking the right market is the key to success.
  • Select the person you can provide the most value to.
  • Pick a single avatar to productize your service and provide value with low operational drag.
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Creating a Category of One

  • Don't be a commodity, sell in a category of one.
  • Create an offer that is so good that people feel stupid saying no.
  • Focus on the offer, not the creative or funnels.
  • Price comparison leads to lower conversions and lower prices.
  • Changing the offer can result in a significant increase in cash collected upfront.
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Building a Continuity Program

  • Continuity programs have an implied guarantee.
  • Continuity programs increase lifetime value on the back end.
  • Continuity programs can be used to create a category of one.
  • Continuity programs provide recurring revenue.
  • Continuity programs can be used to scale a business.
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Why Niching Down is Important

  • Niching down allows you to make more money by targeting a specific market.
  • The more specific the market, the higher the price point you can charge for your product.
  • The product remains virtually unchanged, the only thing that changes is the defined avatar.
  • The goal of great persuasion is for the prospect to feel understood.
  • The better you can articulate their problems and reality, the more willing they will be to purchase your product.
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Four Attributes to Look for in a Market

  • The market must be in desperate need of the solution you have.
  • They must have the ability to purchase the product at the price you want to charge.
  • They must be easy to target so you can put your offer in front of them.
  • It must be a growing market.
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The Pain is the Pitch

  • The goal of good writing is for the reader to understand, the goal of good persuasion is for the prospect to feel understood.
  • Niching down is important to make someone feel unique and singled out.
  • Most mass market brands start small and then continue to scale in adjacent markets.
  • Improving people's resumes so they can get more job interviews may seem like a good market, but it actually tanked because it didn't meet all four attributes.
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How to Create a $100,000,000 Product

  • Focus on the offer, not the product.
  • Find a market that is in desperate need of a solution and create an offer that solves their problem.
  • Make sure the offer is unique and differentiated from what is already available in the market.
  • Price the offer based on the value it provides, not the cost to create it.
  • Use direct response marketing to test and refine the offer until it is successful.
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Factors to Consider When Picking the Right Market

  • Choose a market that has people with pain points that you can solve.
  • Choose a market that has purchasing power and can afford your product or service.
  • Make sure your target market is easy to find and reach.
  • Choose a market that is growing and has more potential customers every year.
  • Don't waste time on markets that can't afford you or don't appreciate your value.
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The Importance of Targeting the Right Audience

  • Make sure your ads and offers are being displayed to the right audience.
  • If your target audience is not aggregated somewhere, it will be difficult to reach them.
  • Choose a market that is easy to target and has a high potential for success.
  • Make sure you have as many tailwinds as possible to make your business successful.
  • Choose a market that is easy to work on and has a good chance of success.
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