Alex Hormozi: Applying $100M Offers to E-Commerce: I'm Pissed

The video is about how the principles outlined in Alex Hormozi's book "100 Offers" can be applied to e-commerce, and he breaks down the variables that create purchasing decisions and drive value.

This video by Alex Hormozi was published on Jul 7, 2022.
Video length: 11:30.

In this video, Alex Hormozi responds to a comment made on a podcast that his book, "100 Offers," does not apply to e-commerce.

He breaks down the variables that create purchasing decisions and drive value, including dream outcome, perceived likelihood of achievement, time delay, effort, and sacrifice. He applies these variables to e-commerce, using Amazon as an example of a company that has successfully implemented them.

He also gives an example of how a physical product, such as a jacket, can increase the perceived likelihood of achieving the dream outcome through reviews and demonstrations.

• The book "100 Offers" applies to e-commerce.
• Variables that create purchasing decisions and drive value include dream outcome, perceived likelihood, time delay, effort and sacrifice, scarcity, urgency, guarantees, bonuses, and naming.
• These variables apply to both services and physical products.
• Decreasing risk, time delay, effort and sacrifice, and likelihood of a poor experience can increase perceived value.
• Enhancers of value include scarcity, urgency, guarantees, bonuses, and naming.
• Applying these principles to e-commerce includes offering clear return policies, faster shipping, easy checkout, guarantees, and bonuses.
• Identifying the job to be done involves identifying the customer's dream outcome and considering different avatars.

Applying $100M Offers to E-Commerce: I'm Pissed - YouTube

Introduction

• Alex Hormozi disagrees with the statement that his book "100 Offers" doesn't apply to e-commerce.
• The book outlines variables that create purchasing decisions and drive value.
• Understanding these variables can lead to profits.

Variables that Drive Value

• Dream outcome: people buy things they value.
• Perceived likelihood: people buy things they believe will help them achieve their desired outcome.
• Time delay: people value things that can happen quickly.
• Effort and sacrifice: people value things that require less effort and sacrifice.
• Scarcity, urgency, guarantees, bonuses, and naming: these variables increase the perceived value of a product or service.

Application to E-commerce

• The fundamentals and variables that drive value are the same for e-commerce and other types of businesses.
• Amazon has successfully applied these variables to their business model.
• Reviews increase the perceived likelihood of achieving the dream outcome.
• Demonstrating how to achieve the dream outcome can increase the perceived likelihood of achieving it.
• These variables apply to both services and physical products.

Applying $100M Offers to E-Commerce: I'm Pissed - YouTube

Increasing Perceived Value for Physical Products

• Identify the dream outcome for the product.
• Increase the perceived likelihood of achieving the dream outcome through reviews and demonstrations.
• Levi's demonstrated how to wear a jean jacket in different ways to increase the perceived likelihood of achieving the dream outcome of looking cool.
• Easy ways to demonstrate the dream outcome can increase the perceived value of a product.
• These variables apply to both services and physical products.

Variables that create purchasing decisions

• Decreasing risk associated with making the purchase by demystifying what happens after the purchase.
• Decreasing time delay in delivering products by offering faster shipping options.
• Decreasing effort and sacrifice by offering one-click purchases and easy return policies.
• Decreasing the likelihood of a poor experience by offering a try-before-you-buy option.

Enhancers of value

• Showing scarcity by displaying the number of items left in stock and offering limited edition drops.
• Adding urgency by offering limited time deals.
• Offering guarantees, such as a money-back guarantee or a try-before-you-buy option.
• Offering bonuses, such as training videos or tips and tricks on how to use the product.
• Naming the product in a way that reflects the customer's dream outcome.

Applying these principles to e-commerce

• Decrease risk by offering clear return policies and product descriptions.
• Offer faster shipping options to decrease time delay.
• Make purchasing easy with one-click purchases and easy checkout processes.
• Offer guarantees, such as a money-back guarantee or a try-before-you-buy option.
• Offer bonuses, such as training videos or tips and tricks on how to use the product.

Identifying the job to be done

• Identify the customer's dream outcome and name the product in a way that reflects that outcome.
• Consider different avatars and the different needs they may have.
• Focus on the job to be done and let everything else fall into place.

Applying the 100 Offers Framework to E-Commerce

• Enhance the perceived likability achievement of your product.
• Show how your product can be used and demonstrate its benefits.
• Offer guarantees and create a sense of urgency to encourage purchasing.
• Make the purchasing process easy and convenient for customers.
• Include bonuses such as trainings and tutorials to add value to the product.
• Use effective marketing language and branding to differentiate your product from competitors.

Watch the video on YouTube:
Applying $100M Offers to E-Commerce: I'm Pissed - YouTube