Between “sessions,” TJ found me. He could tell I was in way over my head. TJ was kind, curious, and caring. After a little bit of small talk, he asked me a simple question that changed my life forever . . . “Do you want to know the secret to sales?” (Location 259)
He looked at me soberly and said: “Make people an offer so good they would feel stupid saying no.” (Location 264)
Their discomfort compounds. And once the discomfort of staying the same surpasses the discomfort of change, they take the leap. I’m going to be an entrepreneur so I can be free. Free to do whatever I want, whenever I want, with whomever I want. (Location 270)
As you likely now know, I have crafted thousands of offers over the last decade. Most failed. Some did okay. And some struck gold . . . but I never really knew why. As Dr Burgelman, a famous Stanford business school professor said, it is far better to have understood why you failed than to be ignorant of why you succeeded. (Location 294)
That being said, there are two key archetypes I am looking to provide value to with my published materials. For archetype I, entrepreneurs under $3,000,000 per year in revenue, my goal is to help you get there and earn your trust. Try just a couple of tactics from this book, watch them work, then try a few more, watch them work . . . and so on. The more you see results in your own business, the better. (Location 335)
Once you succeed, you become archetype II, entrepreneurs at minimum between $3M - $10M in yearly revenue. Once you get there, or if that’s you now, I’d be honored to invest in your business and help you cross $30M, $50M, or $100M+. (Location 338)
Provide value at no cost far in excess of what the rest of the marketplace charges for. Have entrepreneurs use materials that actually work and make money helping more folks Earn the trust of the hyper-executor business owners who use the frameworks to scale their businesses to $3M-$10M per year and beyond Invest in those businesses to make more impact at scale while helping everyone else for free. (Location 344)
Here’s how: I know these business owners can execute the frameworks I have without hand-holding, and therefore, would be very likely to succeed with the next set of frameworks (getting to $30M, $50M, $100M looks different than getting to $3-$10M). They know that my style works for them, because it already has. So we operate on shared trust - I trust they can execute, and they trust that our stuff works - again, because it already has….all while helping everyone else….fo’ free. So it allows me to preemptively avoid failures and dramatically increases success likelihood. Let me show you how much…. (Location 348)
So, then,what does it take to grow? Thankfully, just three simple things: Get more customers Increase their average purchase value Get them to buy more times (Location 383)
It’s an offer you present to the marketplace that cannot be compared to any other product or service available, combining an attractive promotion, an unmatchable value proposition, a premium price, and an unbeatable guarantee with a money model (payment terms) that allows you to get paid to get new customers . . . forever removing the cash constraint on business growth. (Location 429)
I’ve “struck gold” on my share of offers. Not because I've got some superpower, but because I’ve just done this a lot of times (and failed even more). I sorted through the crap that chronically fails and pocketed all the stuff that reproducibly succeeds (and put it in this book) . (Location 440)
We want to make an offer that’s so different that you can skip the awkward explanation of why your product is different from everyone elses (which, if they have to ask, then they are probably too ignorant to understand the explanation) and instead just have the offer do that work for you. That’s the Grand Slam Offer way. (Location 471)
At the end of the day, if there is a ton of demand for a solution, you can be mediocre at business, have a terrible offer, and have no ability to persuade people, and you can still make money. (Location 517)
But, despite having a great offer and natural sales ability, his business began to decline. Being a high-achieving entrepreneur, he tried all the different angles to solve the problem — but nothing worked. (Location 524)
Let’s break it down. It wasn’t his product — that was great. It wasn’t his offer — he had a zero risk revshare model. (Location 528)
His market was shrinking by 25 percent every year! He had looked at all the angles, except for the most obvious one. (Location 530)
He applied his same skill set to a business he had zero experience in and was able to win. That’s the power of picking the right market. (Location 535)
In order to sell anything, you need demand. We are not trying to create demand. We are trying to channel it. (Location 542)
The degree of the pain will be proportional to the price you will be able to charge (more on this in the Value Equation chapter). When they hear the solution to their pain, and inversely, what their life would look like without this pain, they should be drawn to your solution. (Location 555)
teams “The pain is the pitch.” If you can articulate the pain a prospect is feeling accurately, they will almost always buy what you are offering. A prospect must have a painful problem for us to solve and charge money for our solution. (Location 557)
The goal is to find a smaller subgroup within one of those larger buckets that is growing, has the buying power, and is easy to target (the other three variables). (Location 583)
Because senior citizens who are alone are likely suffering more pain as they are nearer their deaths (pain), have more buying power (money), and are easy to find (targeting). (Location 585)
Example #3: Let’s say you’re in a normal market and have a normal offer. In order to be massively successful, you would have to be exceptionally good at persuasion. (Location 605)
They think, I’ll switch from helping dentists to helping chiropractors — that’s it! When, in reality, both of those are normal markets and represent billions of dollars in revenue. Either would work, just not both. You must pick one. No one can serve two masters. (Location 613)
Could I have helped them? Of course I could have. I mean heck, the majority of our portfolio is comprised of non-gym companies. But in order to maintain product focus, and high converting messaging, knowing exactly who the product was for was a game changer. (Location 635)
‘I solve this type of problem for this specific type of person in this unique counter-intuitive way that reverses their deepest fear.” (Location 659)
If you try one hundred offers, I promise you will succeed. Most people never try anything. Others fail once, then give up. It takes resilience to succeed. Stop personalizing! It’s not about you! If your offer doesn’t work, it doesn’t mean you suck. It means your offer sucks. Big difference. You only suck if you stop trying. So, try again. You’ll never become world class if you stop after a failed attempt. (Location 666)
In order to understand how to make a compelling offer, you must understand value. The reason people buy anything is to get a deal. (Location 722)
The simplest way to increase the gap between price to value is by lowering the price. It’s also, most of the time, the wrong decision for the business. (Location 727)
Making money is. And lowering price is a one-way road to destruction for most — you can only go down to $0, but you can go infinitely high in the other direction. (Location 728)
So the goal of our Grand Slam Offer will be to get more people to say yes at a higher price by increasing our value to price discrepancy. (Location 732)
This way, they still get a great deal (think buying $100,000 of value for $10,000). It’s ‘money at a discount.’ (Location 733)
And the big secret: those competitors they are copying are dead broke. So why on earth copy them? (Location 743)
Again, we are not trying to get the most customers. We are trying to make the most money. (Location 751)
Allow me to give you a brief overview of why I see premium pricing as not only a very smart business decision, but a moral one. (Location 752)
Multiply your margin because you have money to invest in systems to create efficiency; smart people; improved customer experience; scale your business; and, most importantly of all, to keep watching the number in your personal bank account go up, month after month, even with reinvesting in your business. (Location 773)
In a blind taste test, researchers asked consumers to rate three wines: a low-priced wine, a medium-priced wine and an expensive wine. (Location 779)
And the goal isn’t just to be slightly above the market price — the goal is to be so much higher that a consumer thinks to themselves, “This is so much more expensive, there must be something entirely different going on here.” (Location 786)
But I know this isn’t easy, and it shouldn’t be. Your product must deliver. So many wish to shortcut the real work. Do that and you will fail. In the real world, to have the “gonads” to charge big ticket prices, you must outwork your self doubt. (Location 795)
I wanted to be the premium price leader. I wanted to be so expensive that it created allure around what we were doing. So, we came in at three-times the highest-priced player and 32 times more than the lower-priced players. (Location 813)
Then we upsold 35 percent of those people into a three-year, $42,000/year agreement for us to help them grow their gyms. (Location 815)
The gap between what they paid (price) and what they got (value) was massive. As a result, the virtuous cycle continued to spin. We charged the most money. We provided the most value. (Location 829)
We made many mistakes along the way, but our pricing model was not one of them. It allowed me the room to make big bets without losing the farm. The truth is that 99 percent of businesses need to raise their prices to grow, not lower them. (Location 832)
You need to have a big discrepancy between what something costs you and what you charge for it. It is the only way to be unreasonably successful. (Location 850)
But you should charge far more for your product and services than it costs to fulfill it. Think up to a hundred times more, not just two or three times more. And if you provide enough value, it should still always be a steal for the prospect. That is the power of value. (Location 852)
Those who understand value are the ones who will be able to charge the most money for their services. (Location 863)
In the beginning of my career, I focused all my attention on dream outcomes and the perception of achievement (social proof, third-party edification, etc). (Location 879)
After all, anyone can make a promise. The harder, and more competitive, are the Time Delay and Effort & Sacrifice. (Location 883)
Making things immediate, seamless, and effortless. Apple made the iPhone effortless compared to other phones at the time. (Location 884)
The reason this is a division equation and not an addition (“+”) is that I wanted to convey one key point. If you can make the bottom part of the equation equal to zero, you’re golden. (Location 888)
Or imagine hiring a marketing firm, and as soon as you sign your document, your phone begins ringing with new highly qualified prospects. How valuable would these products/services be? Infinitely valuable. And that’s the point. (Location 895)
The Grand Slam Offer only becomes valuable once the prospect (Location 900)
perceives the increase in likelihood of achievement, perceives the decrease in time delay, and perceives the decrease in effort and sacrifice. (Location 900)
People have deep, unchanging desires. This is what marriages are lost over, wars are fought over, and people will willingly die for. Our goal is not to create desire. It’s simply to channel that desire through our offer and monetization vehicle. (Location 926)
I once heard Russell Brunson tell a story about this concept. He explained how his wife, Collette, at first hearing about this status concept, rejected it. She claimed she wasn’t driven by status and would never want to drive a Lamborghini. Instead, she favored her minivan. But, after talking further, she revealed it was because driving a Lamborghini would decrease her status amongst her mom friends, while driving a minivan would show she was a good mother (increase in status). (Location 945)
That being said, when comparing two products or services that satisfy the same desire, the value from the dream outcomes will cancel out (since they are the same). (Location 955)
This was the last of the variables I added when trying to think through this framework a few years ago. I just felt like something was missing with only the other three. Then I realized people pay for certainty. They value certainty. I call this “the perceived likelihood of achievement.” In other words, “How likely do I believe it is that I will achieve the result I am looking for if I make this purchase?” (Location 961)
Why? Because we wanted them to have a big, fast emotional win, so we could get them to commit to the long term. (Location 993)
Decreasing the effort and sacrifice, or at least the perceived effort and sacrifice, can massively boost the appeal of your offer. In an ideal world, a prospect would want to simply “say yes” and have their dream outcome happen with no more effort on their behalf. (Location 1013)
This is why “done for you services” are almost always more expensive than “do-it-yourself” because the person doesn't have all the effort and sacrifice. There is also a component of “perceived likelihood of achievement” difference as well. (Location 1015)
Our goal as marketers and business owners is to increase the value of the dream outcome and its perceived likelihood of achievement, while decreasing the time delay of achievement and the effort and sacrifice one has to put in to get there. (Location 1023)
In his books, he talked about making “irresistible offers.” Again, this theme of “making an offer so good people would feel stupid to say no” kept re-appearing. (Location 1133)
The value drivers are the four core reasons. Our problems always relate to those drivers, and our solutions provide the needed answer to give a prospect permission to purchase. What's even crazier: is that if only one of these needs is missing in a solution, it can cause someone not to buy. (Location 1199)
I have always lived by the mantra, “Create flow. Monetize flow. Then add friction.” This means I generate demand first. Then, with my offer, I get them to say yes. Once I have people saying yes, then, and only then, will I add friction in my marketing, or decide to offer less for the same price. (Location 1231)
My promise was fundamentally the same: I will fill your gym in 30 days. It was simply the how and what I did that changed. The how and what is what we are breaking apart. (Location 1246)
Then use the cash flow to fix your operations and make your business more efficient. (Location 1248)
For the purposes of keeping creativity high (divergent thinking), think about anything you could possibly do. Think of all the things that might enhance the value of your offer. So much so that they would be stupid to say no. What could you do that someone would immediately say, “All that? Seriously? Yes, I'm in.” (Location 1257)
Now that we have enumerated our potential solutions, we will have a gigantic list. Next, I look at the cost of providing these solutions to me (the business). I remove the ones that are high cost and low value first. Then I remove low cost, low value items. (Location 1321)
If there’s one type of delivery vehicle to focus on, it’s creating high value, “one to many” solutions. (Location 1332)
These types of solutions require a high, one-time cost of creation, but infinitely low additional effort after. (Fyi - This is exactly why software becomes so valuable). (Location 1338)
Consider this example. We promote some two-day workshop that is upcoming. First we whisper that it’s coming. Then we tease it with some of the benefits. Then we shout that it is launching in a week. Then, when we launch this amazing workshop. We have two supply-demand scenarios: (Location 1469)
Hormozi Law: The longer you delay the ask, the bigger the ask you can make. “The longer the runway, the bigger the plane that can take off.” (Location 1489)
The main point I want you to take away from this is that a single offer is less valuable than the same offer broken into its component parts and stacked as bonuses (see image). (Location 1716)
You can get other businesses to give you their services and products as a part of your bonuses in exchange for exposure to your clients for free. (Location 1768)
They massively increase the prospects' perception of the value of our offer. So here’s what to do: (Location 1803)
Sometimes, but not usually. That being said, you must understand the math. If you close 130 percent as many people, and your refund percentage doubles from 5 percent to 10 percent, you’ve still made 1.23x the money, or 23 percent more, and that all goes to the bottom line. (Location 1839)
increases alongside it. Warning: While guarantees can be effective sellers, people who buy because of guarantees can become very shitty customers. A person who only buys because of a guarantee is a person who may not be willing to put in the work necessary to see success with your product or service. (Location 1846)
This gets a LOT more people to buy, but you will have some people refund, especially as consumer culture continues to shift towards entitlement and zero accountability. (Location 1862)
The end all concept is the same, if I don't perform, I don’t get paid. Unique to this particular structure, it also confers the upside of “If I do a great job, I will be very well compensated.” (Location 1876)