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Feb. 7, 2023

Alex Hormozi's Blueprint for Entrepreneurial Success: The Irresistible Offer

Alex Hormozi's Blueprint for Entrepreneurial Success: The Irresistible Offer

How can you make an offer so good people would feel stupid saying no? Alex Hormozi answers that question in his book $100M Offers. Today I’m going to walk you through his process so you can craft your irresistible offer.

How can you make an offer so good people would feel stupid saying no? Alex Hormozi answers that question in his book $100M Offers. Today I’m going to walk you through his process so you can craft your irresistible offer.


2:00 – The value equation

Alex’s value equation consists of four parts: 

  1. The dream outcome your audience is searching for
  2. The perceived likelihood of success (you’ll want to increase this)
  3. The perceived time delay between start and achievement (you’ll want to decrease this)
  4. The perceived sacrifice and effort involved (you’ll also want to decrease this)

As we work through each part of the equation, I’ll be giving an example from one of my own offerings, which is essentially offering LinkedIn trainings to teams within larger corporations. 


2:58 – Dream outcome

The expression of the feelings and experiences the prospect has envisioned in their mind. You want to reflect that dream back to them, so they feel understood and like you have the roadmap for how to achieve that dream. 

People are generally looking for these outcomes: 

  • To be perceived as beautiful
  • To be respected
  • To be perceived as powerful
  • To be loved
  • To increase their status

Here were the dream outcomes I brainstormed for my offering: 

  • Getting inbound leads
  • Increasing revenue
  • Being perceived as a thought leader
  • Attracting top talent
  • Increasing team knowledge
  • Attracting qualified candidates
  • Getting more press
  • Building strategic partnerships
  • Lowering marketing cost. 

Those were a lot of outcomes, so I focused on one clear outcome that I know I can deliver on: “I help teams create LinkedIn content that attracts leads, and positions their organization as an industry thought leader.” 

Your first action item: Jot down your audience’s dream outcome. 


6:48 – The likelihood of achievement 

Customers pay for certainty. They want to know: “How likely am I to achieve the result I’m looking for if I make this purchase?” 

Here are a couple of ways you can increase this perceived likelihood: 

  • Messaging
    • How you describe the offer. For instance, you could say your new system is, “So easy, a seven year old can do it.” 
  • Guarantees
    • Reduces risk, show that you’re willing to put your money where your mouth is. 
  • Testimonials 
    • A past client shares their experience and outcomes. If you are just getting started, create content that provides value and put it out on social media – that way, you’re establishing credibility just in terms of knowledge. 

Your action item: Jot down how you’ll increase your perceived likelihood of success. 


8:41 – Reducing the perceived time delay between start and achievement

If you’re working on something with a long lead time, see if you can deliver a quick win. Maybe that looks like an audit, or providing a custom roadmap so your customer knows exactly what needs to be done over the upcoming quarter. 

For me, I prerecorded part of the training. So customers get instant access to valuable content, and they’ll get to see progress before we’ve even scheduled the training and any follow ups.

Your turn: How can you reduce the time delay for you audience to achieve their dream outcome, or what’s a quick win you can deliver? 


10:17 – Decreasing the perceived effort and sacrifice required to achieve the dream outcome

Everyone has to put in work to achieve outcomes – but most potential customers will want to put in as little time and effort as possible. So how can you make getting from Point A to Point B easier? 

  • You could offer a “done for you” service. It’ll cost more time, but you’ll be able to charge more for it. 
  • Offer customizable tools (like self-audits, frameworks, or templates), so the customer can make progress on their own. 


11:27 – Aligning the audience’s problems with your solutions 

First step is to list out all the problems your audience will have before, during, and after they implement your services. 

For my example: Some team members aren’t naturally creative, and creating content takes a lot of time. How will they create content for LinkedIn? 

Because I’d thought of this ahead of time, I was able to include a solution in my offer: “You will rapidly create engaging content that attracts leads and partnerships, even if you’re not creative.” 


13:24 – Bonuses

Everyone loves a bonus. Think of the infomercials you’ve seen on TV; this is your “but wait, there’s more!”. 

Here’s why this works: Because your offer is already anchored, any add-on increases the perceived value of the offer. 

Here are a couple of ideas for bonuses: 

  • Increased access to you
  • Bonus videos
  • Complimentary products 

Your turn: Decide what bonus to offer (but keep in mind how much time and effort it will inquire from you)


15:00 – Scarcity

Alex Hormozi points out that fear of loss is stronger than a desire for gain; so it can be good to create some scarcity around your offer.

Some ways you can do this: 

  • Limited number of people you can help per month
  • A deadline for when people must say yes (for instance, you only onboard into a course once a month or quarter)
  • A limited number of products you can sell

So, what can you do to make your offer more scarce, and therefore more valuable?