Alex Hormozi: How to build a $100,000,000 business...the sh@$ nobody will tell you..

The video is about the importance of starting with a strong offer when building a successful business, and how focusing on the product can lead to greater success than just focusing on marketing.

This video by Alex Hormozi was published on Oct 25, 2021.
Video length: 49:32.

In this video, Alex Hormozi discusses the importance of starting with a strong offer when building a successful business.

He explains that the offer is the lever that touches many components of the business, including lead generation, pricing, and profit. Hormozi also shares his experience with building a successful business through a superior product, rather than just focusing on marketing and sales tactics.

He emphasizes the importance of creating a high-quality product or service that produces real results for customers.

• Starting with a strong offer can turn a business around and has a multiplicative effect on the business.
• An offer is the product being sold, while a coaching program is the method of delivering the offer.
• The product is the most important component of the business and drives word of mouth and referrals.
• The success of Jim Launch was due to a superior product.
• Referrals and word-of-mouth have exponential returns and are achieved through a superior product.
• A superior product has compounding returns and can run on its own, leading to high profits with no cost of acquisition.
• A strong offer solves every problem and includes bonuses that solve problems that only occur upon success.
• Entrepreneurs should sell a less scalable offer at a higher ticket first and focus on the product to demonstrate expertise and generate trust and authority.
• Pricing should be based on the value of the product and vastly different from the range of the marketplace.

How to build a $100,000,000 business...the sh@$ nobody will tell you.. - YouTube

The Importance of Starting with a Strong Offer

• Starting with the offer is the easiest way to turn a business around.
• The offer touches many components of the business, including lead generation, pricing, and profit.
• Fixing the offer can have a multiplicative effect on the business.
• Many businesses can be turned around by fixing the offer.
• The offer is the lever on all components of the business.

The Difference Between an Offer and a Coaching Program

• An offer is the product or service being sold, while a coaching program is the method of delivering the offer.
• The offer is the most important component of the business.
• The offer touches many components of the business, including lead generation, pricing, and profit.
• Fixing the offer can have a multiplicative effect on the business.
• The offer is the lever on all components of the business.

The Importance of Focusing on the Product

• The product is often overlooked in the marketing community.
• The product is the most important component of the business.
• The product is what drives word of mouth and referrals.
• A superior product can produce exceptional results.
• The product is the lever on all components of the business.

How to build a $100,000,000 business...the sh@$ nobody will tell you.. - YouTube

The Success of Jim Launch

• The success of Jim Launch was due to a superior product.
• The average client made $30,000 in their first 30 days.
• The product drove word of mouth and referrals.
• The advertising was not the main driver of success.
• The product is the lever on all components of the business.

Importance of Referrals and Word-of-Mouth

• There are six acquisition channels: paid media, owned media, earned media, manual outbound, affiliates, and referrals/word-of-mouth.
• Five of these channels are linear in nature, meaning that the return ratio diminishes with scale.
• Referrals and word-of-mouth are quadratic, meaning that they have exponential returns and are the hardest to achieve but the most lucrative.
• Having a superior product is key to achieving referrals and word-of-mouth.
• Investing in a superior product is a one-time investment with compounding returns.

The Importance of a Superior Product

• Superior products are key to weathering storms and unhappy high-ticket clients.
• Superior products have compounding returns and can run on their own, leading to high profits with no cost of acquisition.
• Investing in a superior product is a one-time investment with compounding returns.
• Most wealthy people invest in something one-time that will pay them forever, while poorer people consistently have to do things over and over again.
• Having a superior product is a constant among the wealthiest people in the internet marketing space.

The Importance of a Strong Offer

• The offer is the bridge between prospect and client and has components of both promotion and product.
• The offer communicates what it's like to be a client to a prospect.
• The offer should solve every single problem, both known and unknown.
• Include one or two bonuses that solve a problem that only occurs upon success to increase prospect belief in achieving success.
• A strong offer is not just about adding more coaching calls or a community on Facebook.

The Reality of Product Quality and Deception in the Market

• People often can't distinguish between the reality of product quality and deception in the market.
• A superior product is key to avoiding deception in the market.
• Investing in a superior product is a one-time investment with compounding returns.
• Include bonuses that solve problems that only occur upon success to increase prospect belief in achieving success.
• A strong offer is the bridge between prospect and client and has components of both promotion and product.

The Importance of a Strong Offer

• The product has to appear valuable to the customer.
• Solving every prospect's problem is important.
• Missing even one step in the pipeline can cause failure.
• Requisite pieces are important to solve.
• Depth of knowledge is important to troubleshoot problems.
• Doing the unscalable stuff first can lead to success.

Solving Problems That Don't Exist

• Entrepreneurs should sell a less scalable offer at a higher ticket first.
• Removing pieces that are less scalable piece by piece is important.
• Higher touch to clients and more profit in acquisition is important.
• Operational fulfillment is preferred over demand generation.
• Easier things to sell require more handholding and services.
• Being on the easier to sell part of the spectrum is preferred.

Pricing

• Assuming that excess cash and enough to deliver is priced right is important.
• WAG pricing model is not recommended.
• Pricing should be vastly different from the range of the marketplace.
• Front-end program should be higher than the highest priced person in the marketplace.
• Back-end program should be a three-year program.
• Pricing should be based on the value of the product.

Focus on the Product

• Focusing on the product can lead to greater success than just focusing on marketing.
• Creating a superior product can lead to trust and authority.
• Offering features and solutions to problems that haven't been encountered yet can demonstrate expertise.
• Having a unique opportunity is important.
• Generating cash flow and using it to solve future problems of scale is a better sequence.
• Pricing should be based on the value of the product.

The Importance of Starting with a Strong Offer

• Pricing confers value to your product.
• The quality of your prospects affects the value of your product.
• Pricing power gives you a strategic advantage.
• You can spend more on acquisition and do things that others can't.
• Higher pricing creates an allure and word-of-mouth marketing.

The Value Equation

• The value equation is the basis for creating value.
• Perceived likelihood of achievement increases value.
• Effort and sacrifice are factors in the value equation.
• Controlling for outcome, perceived likelihood of achievement increases value.
• There are other ways to increase perceived likelihood of achievement.

Focusing on the Product

• Most marketers focus on the top side of the value equation.
• There are other ways to increase perceived likelihood of achievement.
• Flash role argument: highlight all the things you have already handled on the customer's journey.
• Eliminate effort and sacrifice, cut time in half, and increase perceived likelihood of achievement.
• Provide more value with access gross profit.

The Execution and Tactics

• The remainder of the book is about execution and tactics.
• Create a dream outcome that is appealing to the customer.
• Anchor pricing in the beginning to set the stage.
• Provide more value with access gross profit.
• Eliminate effort and sacrifice, cut time in half, and increase perceived likelihood of achievement.

The Importance of Decreasing Time Delay and Effort in Creating Value

• The goal is to increase perceived likelihood and decrease time delay and effort.
• The bottom side of the equation (effort and sacrifice) is more powerful in persuasion than the top side (perceived likelihood).
• Decreasing time delay is a massive area of value.
• Eliminating as many barriers as possible in the effort and sacrifice component makes the product more valuable.
• Amazon is becoming a behemoth by shrinking the gap in effort and sacrifice and time delay.

Creating More Value by Changing the Time in Achieving the Outcome

• Changing the time in achieving the outcome makes the product more valuable.
• Eliminating effort and sacrifice makes the product infinitely valuable.
• Amazon is becoming a behemoth by shrinking the gap in effort and sacrifice and time delay.
• Creating value means decreasing time delay and effort in achieving the outcome.
• Providing value means making the product more valuable by changing the time in achieving the outcome.

Watch the video on YouTube:
How to build a $100,000,000 business...the sh@$ nobody will tell you.. - YouTube