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

Last updated: Jun 18, 2023

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

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

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.
Alex Hormozi: Applying $100M Offers to E-Commerce: I

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.
Alex Hormozi: Applying $100M Offers to E-Commerce: I

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.
Alex Hormozi: Applying $100M Offers to E-Commerce: I

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.
Alex Hormozi: Applying $100M Offers to E-Commerce: I

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.
Alex Hormozi: Applying $100M Offers to E-Commerce: I

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.
Alex Hormozi: Applying $100M Offers to E-Commerce: I

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.
Alex Hormozi: Applying $100M Offers to E-Commerce: I

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.
Alex Hormozi: Applying $100M Offers to E-Commerce: I

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

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