Alex Hormozi Q&A: $100M Offers & Building Product Brands You Can Sell

Foreign.

Hey capitalists. Welcome back to the podcast. I'm Ryan Daniel Moran. I recently read one of maybe the best business book that I've ever read in my entire life. In fact, I might look back on this and say that was the beginning of a new chapter of my career. It was exactly what I needed for this stage of my business. It made me realize why I sometimes feel stuck in my business. The book is called $100 million offers and the book is really about how to make your product, how to make your business so irresistible to the people that it's for that they would feel stupid for not buying from you. And we're going to be going through this book today together. So grab a copy of the book and if you're not a member of the 1% but you want to go through this with us, you can join us over@capitalism.com 1. You might look back on this podcast and say that was the start of a new chapter of my career. Enjoy. I'm very proud to bring this to you. When you hear me reference our mentoring group or the 1%, that's our membership where we help entrepreneurs build businesses and and invest the profits. We take them through a three stage process. The grind, the growth and the gold. The grind is figuring out what the heck you're doing in business. The growth is taking active sales that you're growing and expanding all the way to having a mid seven figure business. And the gold is when you have enough profit to invest into passive income, into growth and long term wealth. And we help entrepreneurs go through this entire journey inside of the 1%. This is ideal for people who are starting their journey and need help with their vision and to be on a path towards a 1% net worth. And it's ideal for people who are already in the middle of their journey and are looking to build passive income and wealth by going through some of our investment trainings. Entrepreneurs are so good at coming up with ways to make money, not so good at keeping it and growing it. And so that's one of the core tenants that we focus on is inside of the 1%. So it's all about building businesses and investing the profits and we help people do that inside of the 1%. When you're ready to join us, head over to capitalism.com 1. Good evening friends and neighbors and Hormosis. Tonight's special. We brought out the good stuff tonight. Alex and I go deep when Ryan has whiskey. We won't tell you about the last time we had whiskey together. It got a little bit out of hand. Alex, I'm so pumped for tonight. I have this weird energy about me. Like no one wants to be around me. Children are afraid of me. I'm so pumped to talk to you, dude. You're. You're blowing up for, for everybody, for. For every. Anybody who doesn't know Alex at the thing that is amazing to me about him is I. He and God have a contract where God is like, look, Alex, whatever you want, just don't hurt me.

That's what, that's what happens is Alex is just like, listen, I want to be the world's most jack billionaire, and if you could throw a million YouTube subscribers my way, it wouldn't hurt you. And God is like, all right, fine. And then Alex just like, it just h. It just happens. And he's like, volume.

Volume. So, dude, you have, you have the number one book in its category and you haven't even announced it yet. You're getting like 3,000 subs a day on YouTube. You have one and a half percent body fat.

What's it like, 12 inch personality.

It's great being friends with you.

You always make me feel great about myself.

Well, give it a minute.

For any of you who saw my email recently or as I said, I have friends who make me feel like the fat kid. I was talking about Alex.

Because I went to school to be a pastor and God does not listen to me like he listens to Alex.

See?

So, Alex, I've told you this privately, but, but the thing that I admire about you and, and, and the thing that is so impressive about the fact that you have.

What your total, your total revenue is like $100 million on your main businesses. You have businesses that give you 10% of top line just to be an advisor.

And this book is going to go nuts. They all have the thing in, in common of your emphasis is on really quality product.

And that's not how most Internet entrepreneurs approach things. Could you comment on your approach going on in, like into any new business?

So I thought it would be appropriate for a book that was about the product to be a good product in and of itself. And so I'd have to spend an inordinate amount of time on the book to make sure that it was really good so that I could be. So I could hold up to the standard that I was trying to tell people that it matters.

Yeah.

So if I'm looking at a business, the first thing that we'll usually do is look at like, what, what is the value that you are providing? Right? Like what what is the amount of value that's being provided to the end user? And is there a way that we can repackage that value to enhance it? And the repackaging can happen in a variety of ways. And I go through that in the book in terms of like, can we do more? Can we make things happen faster? Can we make things happen easier? Can we do it with less sacrifice? Can we, you know, those types of things that we can recombine it, and that's in a real way. But then on top of each of those things, we think like, can we do that in just a perceptual shift? Like, is there a way that we can change the way they're perceiving the value that they are getting from the product? And a lot of times those are almost more valuable in a real way than even changing things about the product itself.

Would you comment a little bit? What do you mean that the perception can be more valuable?

So I'll give everybody here like a simple example. So there are things besides the actual thing you're delivering that create value around it. And so if I were to say, hey, we have two surgeons and you want to get plastic surgery for whatever reason, and for one surgeon, it's their first surgery they've ever done, and another surgeon, it's their 10,000th surgery, which of these would you value more? Now, mind you, it might take the first guy twice as long to do the surgery compared to the second guy. So you're going to get half the time of the 10,000 rep guy compared to the first time rep guy. But you still, even though this guy's going to take half as much time with you, you'd still probably be willing to pay the 10,000 guy more. And that is because perceived likelihood of achievement is one of the things that creates value in a product. And so if we can bake these different lenses or layers into the value that we're providing, then we can, without actually changing our product itself, make it more valuable.

Yeah. I have an old mentor who used to describe this as the magician versus the mule. You know, the, the mule is paid to go out and work all the time, gets kicked when it stops and the magician goes, field is plowed.

Right.

And, and we overemphasize the effort or the time going into it sometimes when we're the provider, but in the user's eyes, they just want the field plowed. And one of the things that reading your book reframed for me was like, I get intellectually the idea of developing a product that is customer centric. But in reality, my actions have always mapped that of a marketer. It's been, okay, how do I make this dance on the page?

Rather than how do I create the absolute best fulfillment possible? And when that's the foundation of what you are asking, then marketing and sales is still important. But it's really easy to do. You don't like. One of the things that I, I really love about the way you advertise is your headlines are just like.

It. Like, you don't have to make them sexy because they're already sexy because they're what the person wants.

So yeah, big believers in marketing the actual, you know, the product itself rather than the promise and letting that kind of take care of it. So, like, we're big on like, for everyone who's listening right now, like, we're really big on tracking the data of client success. You know, on averages. Like, you probably don't see a lot of like Internet marketers, for example, saying our average client makes X in Y period of time. Like, no one says that because most people's average client is zero. Right. Well, rather than I'd say the median client would be zero. Right. And so for us, it's actually a KPI that we track within the business and that's One of the KPIs that we drive towards, which is like, how can we get the average revenue collected per client up within the first 14 days, the first 30 days, first 60 days. And so we track all those things because we know that the more money we make our customers, the more everything else happens. And one of the, you know, some of the truths, like there are certain truths that things that you discover, at least that I feel like I've discovered as we've been on this journey is like, the more money that we make other people, the more money we make periods and that like. And I think that just putting that hat on has been, is, I mean, that's what this book is like. I know that giving away the book for 99 cents and a course that accompanies it, like, I'm sure I could sell it and I could sell it a coaching program and I could do all that. But like, I don't want to do that. And I enjoyed making it and so that was kind of the point of doing it.

One of the things that you say in the, in just the description of the book is that you are out earning. You know, the CEO is of publicly traded companies without having upsell flows that were dialed in without, my goodness, without sending emails to your list, you know, with, like, without doing a bunch of complicated marketing. Would you, would you comment a little bit about that? Because, like, you're, you're in our world and like the entrepreneurial world you're most famous in, like the funnel hacking.

You know, one click upsell, like that, that world. But you use that as a tool. It's not your business. You, you haven't had a lot of that dialed in and you've still made tens of millions of dollars. So would you, would you comment on that?

Yeah, we're embarrassingly bad at most things.

I just, I think, I think most people, at least when I, when I talk to a lot of entrepreneurs, I think one of the biggest skills that's important is learning how to discern priority. Like, what is important. Like, there's so much information, right? So it's like all the stuff is coming at us like what is most important. And we have such limit, like, we have such limited resources, like, as entrepreneurs, such limited resources, capital. And the biggest one just being attention, right? We have such limited attention for ourselves, but just as importantly, or more importantly, our teams. And so it's like, I might only be able to move one or two rocks forward this year. You know what I mean? Like, really, like big important things, and you kind of have to commit to whatever that rock is. And if you can't pick the rock, then you move zero rocks forward, right? And people like move nine things where it's like, yeah, but you got, you didn't actually get any of them done correctly. So it's like you have to really. And I think developing the software companies taught me a lot about this, but it's like you only have. And we have to commit that this is the one thing that we're going to do and we're actually going to do it well. And I think picking that is one of the hardest things. But if you pick well, then a lot of other things kind of take care of themselves. And so like coming from the marketer world, the reason a lot of people cap out is because they have zero word of mouth. If anything, they have negative word of mouth. Like, literally word of mouth works against them. And so I think, like, I mean.

We even talk about, like in the marketing world, it's like fighting refunds. You know, you're just, you're like, you do all the market, like all the sales on the front end, you're like, hoping people don't refund. And you're. And, and you're saying, I mean, like, or if you're just really good. Your customers, you get a ton of word of mouth and no one refunds anyway.

Yeah, I mean, we do a lot of stuff that's kind of unheard of. You know, we do, we run free trials. Like anybody can sign up for our program for free. Like you don't have to sign. Like you don't have to pay today. And yet we still get 45% of our clients prepay the entire thing within the first 30 days. They choose. They don't have to. And so it's like you have somebody who can try something, they can choose not to buy it. And not only that, they choose to prepay the entire thing within the first month when they had the option not to. And I think that just, it just speaks to like, how can we onboard customers the right way? How can we activate them? You know, what are the leading indicators we know that are going to create a successful customer? And how can we reverse engineer that and how do we know that what that looks at at day 30 and what does it look like day 60, what does it look like day 90? And then when we focus on those things, we can drive up our lifetime gross profit per customer so far beyond what anyone else in our space can do. It makes the marketing as ugly as mine is, so still wildly profitable. And so, I mean, one of the claims in the book that you, that you heard is that, you know, we have a 36 to 1 lifetime return on advertising, and right now it's actually a little higher than that. And so for every dollar we spend, we get almost $40 back. And that's been over my entire career. So that's not like this one campaign that we talk about because I like sent a DM to someone and, you know, like, I made a $4,000 sale. That's every dollar that we spent. And so I think it's because we focus on the back end and really seeing how can we deliver this thing faster, how can we make it more convenient for them, how can we deliver it in the channel or medium that they want to consume it in? How can we do this so that we can decrease the effort and sacrifice on their behalf? So the stress that they have to go through, what are the hoops that they normally would have to jump through? How many of those hoops can we jump through ourselves?

And so, and by kind of reversing those, how can we increase their perception of, of likelihood of achievement? Because if we can get somebody who's more convicted that what we're going to do is going to work, then they're actually in a very real way going to receive more value.

That's right. That's right. And I want to point out something, Alex, what does before one of your target clients meets you, what is their average income?

$2,943 a month.

That was very specific.

I just know the average. So it's like 36.

So like. All right, so everybody listen. Alex's average client. But when they, when they sign up with Alex, his customer makes on average $36,000 per year. Alex, what is your least expensive product cost? Actually, actually for those of you who are watching live, put in the comments what you think Alex's lowest. His self liquidating offer.

His front end offer.

A tripwire. Yeah.

What is it? What is his lowest least expensive product cost? I want to see. Tell me. Average client earns 36 000.

All right, we got thousand dollars, $10,000, $9 47 a free book.

$99 a dollar 999.

Oh, 4,000. All right, Alex, what, what is your front end offer cost is?

20.

$20.

20. 20 grand? Yeah.

$20,000?

Yeah.

Is your, is his low end.

Now listen, this is an important point here. First of all, we just shattered a bunch of beliefs.

But I can't sell on. I, I can't sell my candle for 40 bucks. You know.

Alex's client makes 36, 000. His lowest price product costs 16 grand. And you just heard them say that after they join they voluntarily pay it off early. Why? Because the entire product is focused on getting wins and results for the customer. And what, what's your highest tier program, Alex?

It's 42,000.

42,000.

Yeah.

And you have quite the take rate if I remember correctly.

Yeah, I think we have, I think we're at 60%. I 60%. Yeah.

And these people are strong armed and wrestled into upgrading. Or they choose voluntarily.

They choose voluntarily and we let them try it out before they can choose to pay for it.

Okay, you guys seeing this?

The entire structure of how Alex thinks is how do we remove all of the barriers for the client, for the customer to get the result that they want. And if we do that really well by removing as much friction as possible, then they will voluntarily line up to give us money. It's kind of how business works. And that's why Alex can spend money on advertising to put people into his pipeline and win and beat everybody else. Am I remembering correctly that nobody was doing this when you started and now everybody is trying to go after the same market? Am I remembering that right?

Yeah. I don't think there were many gym gurus at the time. When we came into the marketplace, I think the one guy who was selling a high ticket course was selling it for $5,000. That was like the high leader at the time. And most guys were selling $500 a month, Facebook ads, like, done for you.

Stuff like four gym owners.

Yeah.

And you just came in, totally owned the marketplace, and then a bunch of people copied you. And I like the story of there's people out there who are teaching it and claiming to be successful at it, and then you look at their books and they're not so successful at it. And you're winning because your clients are getting results more than anything else. That, my friends, is how you put together a $100 million offer, which is the name of Alex's book, which you should go buy on Amazon right now for 99 cents. Alex obviously needs the money. He obviously needs you to go buy this book. And I need you to go leave a review on Amazon because you know how this game works. Alex, I was hoping we could spend a minute or two talking about the ethics of charging $20,000 to someone who makes 36 grand. Because you lay this out, and I love the story you tell about your dad. Would you tell that story and explain how you think about going high ticket?

Yeah. So.

I guess I can try and tell it half as well as I do it in the book, when I had lots of practice and got the words right. But I had just posted a picture of our Gym Lords event. This is pre Covid. And I think we had 800. Sorry, 700ish people in attendance. And I posted it, and I sent a picture to my dad. Or he messaged me. I can't remember what happened. And he was like, hey, I thought this was supposed to be the meeting of your really highest level group, which is the $42,000 a year group. And I was like, yeah, it is. And all of a sudden, he calls me up and he's extremely concerned. He's like, do they know that they're getting billed that much? I was like, yes, they're aware. I'm not magically siphoning money from their accounts. Like, yes, they're aware. And then he asked, is that legal? To which I responded, yes, it's legal. And he was like, well. And I could tell that there was this pause of major concern. And I was like, all right, if I could make you $239,000 extra this year, Pops? I was like, would you pay me $42,000. If you knew beyond a shadow of a doubt that you would do that, like, would you pay me $42,000? He was like, well, what would I have to do? I was like, you'd have to work 15 hours a week for it. He was like, okay, well how long would it take? And I was like, it would take 11 months to make the entire, entire money back. And he's like, okay, would I have to pay for a duck fry? And I was like, no, you could pay for it as you started making it. He was like.

Then yeah, I would do it. And I was like, and that's why they do it too. And so for perspective, like, as much as Ryan talks about like the numbers, and a lot of people have talked about our numbers out of context and explained our success without actually being in any way associated with our company as it's the funnel, it's the marketing, it's the whatever client that we work with makes an extra $239,000 of top line revenue. They on average triple their profit. It's 3.1x their profit. They take their take home income, including our fees, net of our fees, from 2950amonth to $8900 a month. And so you're taking something from $36,000 a year to $100,000 a year on average, meaning half the people make more money than that. And so yes, we charge $42,000 a year in order to help someone go from $36,000 to $100,000 on average. But I think that that's more than reasonable considering what we, you know, our efficacy at doing that. And you know, we purposely niche down because we understand niche pricing and we know that we can provide a better solution than anyone else can for a specific avatar. So it's like if you are this specific type of person, you run this specific type of facility and you have this specific problem, we can solve it. And we've done it 4,000 times. So it's very unlikely that it's been chance at this point to, you know, hit the. However many. It's possible, it's possible, it's not, it's not probable. And so that's kind of the overarching scheme which is like everyone always looks at, like, how do I, how do I, what's the trick at selling this more? But like, there isn't a trick because at a certain point most people on here are probably have some level of conscience, right? Like you have some morality, you have some level of ethics, not Me, not Ryan, but most people. Right. And so you have this level of ethics. And so what ends up happening though, is that if you don't actually deliver to the vast majority of the customers that you have, you will self sabotage. You will stop selling. You will give yourself reasons, or your sales team will give you reasons, or your customer support team will give you reasons as to why we shouldn't continue this business. And so like, you have to sell yourself first. And the only way to do that is to truly be convicted. And like, the thing is, you can tell people you're convicted, but like, only, you know, if you're putting 100% of the effort that you, that you could possibly put in to making the product better than it currently is.

Again, Alex is speaking for himself. Not all of us have consciousness here. I am a Johnson and Johnson shill.

This live is brought to you by Johnson and Johnson. They sponsored this for me to shill out everybody getting the vaccine. So not, not everybody has a conscience. I don't. Alex, I wanted you to comment on. For those of you who do have a conscience, I wanted you to comment about the, the actual ethics of charging high ticket because in your book you talk about. I don't remember if you said this or if this is my own words, but charging a lot of money is the most loving thing that you can do for your customer or client.

Yeah.

Would you speak a little bit to that?

So I've always been a premium service guy. So even when I owned my chain of gyms way back in the day, before I switched to doing what we do now, and now we have our portfolio companies, and it's because, like, I want to be. Because I want to sell from a place of certainty. I want to sell from a place of conviction. And the certainty that I want to have is not that I am certain that the person will achieve the result, because I cannot be certain that someone is going to eat the food that I tell them to eat. I'm not certain that someone can go to the gym, but. But I can be certain that I'm the best chance they have at being successful. And so that's the pivot that you have to make internally is, am I truly, am I certain? Because that's where the certainty will come from. Because anybody who says they're certain that someone's gonna get a result is lying to themselves. If there's anything that the client has to do. And most people who are in a coaching space or education space, whatever it is, the client has to do something. They have to do something. I can teach Spanish. And some people are not gonna learn Spanish. I can be the best Spanish teacher in the world, right? It's going to happen. And so the question, is Spanish a scam or are they bad students? They're also bad teachers, right? And so there's.

We need to build a wall, Alex.

Because Spanish is a scam. And so I'll talk, because I talk at length about price in the first third of the book. But I'll give you a couple of examples that I think might drive this home. So first off, from a value perspective, people will value things in and of itself. Like I talked about, there's different layers of value, right? Like things that you can change outside of the product that will inherently make it more valuable. So they did a blind taste test with three wines. A cheap wine, a middle wine, an expensive wine. And the taste testers asked the people, you know, rate the wines and they concurrently rated the wines, you know, better, you know, bad, middle, good, according to price, from poor, you know, from cheap, expensive, whatever, right? But what ended up being the truth is that when they revealed to the people that all three wines were the same. And so in a very real way, price provides value to a prospect. And that was on a consumer good. Now when you, you can put that on steroids when it comes to an educational product or something that has to do with training, there is more lure around expensive things. People want to buy expensive things. People will become more convicted the more the invested they become. So people pay, who pay attention, right? And the more they pay, the more they pay attention, right?

That's right.

The idea around this is that it is more ethical. If I say that I am trying to best serve my clients and I'm claiming that this is the best chance that they have at being successful, then I must use every lever in my arsenal to get them invested in their own success. And so I call this the virtuous cycle of price. But the more someone pays, the more invested they are. The more invested they are, the better the results they get. The better results they get, the better, the more convicted your sales team is, the more people they sell at higher prices, the more profit you have to reinvest in the fulfillment to get more clients results. And around and around you go. And then on top of that, for you as the business owner, you become more convicted, your self worth improves, the impact you feel like you're making increases, and you continue to have this virtuous cycle on the flip side and oh, and as a final one, people who Pay the most are also the lowest maintenance.

You have the easiest, Absolutely correct.

Easiest clients to deal with. But if you flip that entire equation.

That'S why you price your book so high at 99 cents, you do not want annoying readers.

Yeah, I just don't want annoying readers at all. The flip side of this is like, if you, if you cut your prices, all of a sudden you have less money for fulfillment, people are less emotionally invested, you attract the worst quality customers, the conviction of your sales team drops the you have less profit left over to provide a better product, et cetera, Right? And so it's a virtuous or vicious cycle of price. And if we are claiming to be ethical individuals and we are claiming that we're going to create a product that's gonna have the best chance of getting someone successful, then we must anchor in such a way that we're going to get them the most invested so that they are successful.

And everybody. This is why socialism sucks.

Alex just explained it better than I've ever been able to do is why socialism sucks. Right? This is why capitalism solves problems and socialism kills people and puts them in jail. Right? That's just that, that there's no profit to be able to run a country or to run or solve problems, you have to have profit to be able to do it. So, and I, my favorite thing about all of this is you having the conviction and the certainty to be able to sell something well or to sell something at all. Like, and, and when you have conviction, you can look at Donald Trump, you can say words that don't make sense, and people will buy into the conviction that you have for the outcome that you want to create. And so many entrepreneurs in our space, the Internet, online business world, are, are trying to find the system that creates money because they are not certain rather than about doing what they are like selling what they are certain. And that is what creates the results and the success. And the thing that shifted for me in your book was that if you put in the, the required time and commitment to making the product that you have conviction is right for the client and the customer, you win because you naturally outsell out market and charge higher prices, get higher profits, can more, can have more convicted salespeople over and over and over again. And you said something when we hung out last week about having these levers that you know that you can pull. Like, I know that when I spend more on advertising, I make more money. When I hire more salespeople, I make more money because you have the foundational pieces There in place. And if you don't have that, then those levers can make you broke. But when you have that core foundational piece, you can pull all these levers and everything starts to grow. Is that a Fair summary?

Yeah, 100%.

Would you, would you talk a little bit about those levers? The more advertising, the more salespeople, the more.

Yeah. When I looked back at my, when I looked back at like business decisions over time that have like consistently concurred with making more money, hiring more salespeople in general makes me more money spending more dollars on advertising as a whole. When I spend more money on advertising, we make more money. When I raise prices in general, we make more money. And so these have just been recurring themes that have happened throughout our business career. And, and so we try and do them, you know, as. I don't say as frequently as possible. Well, especially, I mean, sales team and things like that. For sure. As frequently as we can. Yeah, those are, I mean, those. That's, that's how we've done it.

So, Alex, there's a question that has come up. You know, we posted the podcast that we did together just a few days ago and I've had this conversation come up quite a few times and I was hoping you could speak to it. And it's the question about how your mindset and your methodology, your methodology applies to physical products. So a lot of my audience is Amazon sellers. Amazon is kind of naturally incentivized to have the lowest price. That's what they want to drive up. They want to have a lot of volume and it tends to reward people have the lowest price. And so in the e commerce world, were definitely skewed to, to, to the Walmart model.

Yeah.

And it completely flies in the face of what we're talking about. How would you reverse that trend as an e commerce entrepreneur? And by the way, everyone, Alex is not busy enough. So he also runs like a 15 to 20 million dollars a year physical products brand as well. Am I underestimating you? Are you over that?

No, I think it's like 16.

Okay, 16 million.

Awesome.

You know, peanuts. But.

But, but. So he's done it. So would you please comment on how you would reverse that trend?

So the first question is just, do I have to sell on Amazon?

If I do, then I, like, I can answer it that way, but if I don't have to.

Let's go, let's. Okay, you're talking to, you're talking to an e commerce entrepreneur who sells a million dollars a year across three to four products on Amazon exclusively.

Okay.

But they're getting squeezed by price wars and competing on reviews. How do you reverse that trend with.

That person on Amazon?

Yes.

All right, so if I'm on Amazon, so there's a section in the book where I talk. It's called the delivery cube. But basically there's ways that you can peel apart your product and it's a cube because there's six sides to it. But this is like when I'm thinking about ideating for a product, this is the process that I kind of go through. And if we have a physical product, it's how can we add any kind of premiums that cost us nothing, that are still going to be valuable? And so I'm going to just give you a hypothetical example. Just drive it. Drive this home. All right, so let's say we had a massage. Like, I'm going to tie it back to physical products in a second, but just bear with me. So if I had a massage parlor, for example, and I were. And I had a massage membership or whatever that I was trying to sell, if I were trying to sell that membership, I could go to every chiropractor in the area. I could go to every physical therapist in the area. I could go to every orthotics dealer in the area. I could go to every scented candle person in the area, I could go to every yoga studio in the area and ask each of them to give me one to two free things of services that cost me nothing and put all of those things in my single offer. All right? So if I just had. Let's say I just gave you six examples for one business, right? So it's six different in, like, industry rings. And let's say we had 10 of each of them, so got 60 free goodies. Now all of a sudden, when I say, hey, if you get a massage at Alex's Massage Parlor, you also become a VIP member, all right? And the VIP member means that you're going to get 10 free chiropractor adjustments, you're going to get 10 free orthotics pieces, you're going to get 10 FREE whatever, right? And so with that, I took my thing and made it more valuable by using other people's things on top of it. And so I just wanted to use that as a mental reframe for what I'm talking about. There's a lot of things outside of the product that we can use to make the core product itself more valuable because the customer has a lot of needs. And the good news Is that when somebody has a lot of desires, it means they have a lot.

Alex, I'm sorry to interrupt you, but how many of you just had the biggest brain gasm of your life? Like, you can see where this is going. You're like, holy fuck. I thought, I think I just saw a piece of the matrix put in the comments right now. If you hashtag braingasm. If, if you just, if, if you just got a business boner, like, like, like I'm sitting here like, oh, my God, this is the greatest thing ever. And every page of Alex's book is like, oh my. Like, I need a cigarette. I need to step away.

Away from this.

The, the, the hashtag braingasms are starting to, are starting to happen. We've got multiple braingasms happening in the comments, Alex. All right, now, please, please keep going. I'm ready.

Sorry. We both blew some lines of on switch before we got on.

Yes, we did.

Proud sponsor.

And we're sponsored by on switch and.

Johnson and Johnson and Johnson Johnson. So the delivery cube is basically what I walk through mentally to think, how am I going to deliver the thing? So first is, what's the outcome? All right, the outcome is what are the other problems that are ancillary problems that this customer is going to have or experience before or after they use the product?

You're good.

Okay, what are the things that are going to happen immediately before and immediately after they use my product? And there's problems they're going to be associated with. These are those things. And how can I solve that problem before and after? Right. So now that I've identified what the problems are, they're going to be associated with the product. Then I can pull these problems out and think, okay, now I'm going to splay them out and think, how many different ways can I solve this? Right? And so let's say we've got somebody and you're in the. And you're in the supplement space. I'll just say, for example. Right? So if you're in the supplement space or nutraceutical space, whatever, then this person might want to lose weight. All right, well, what other things can I do that might that somebody who's trying to lose weight and buying my fat burner. Right. What else might they want? Well, they might want an eating out guide. They might want a grocery list. They might want a cooking guide. They might want lick your fingers, lunches, delectable dinners, a shake guide, a breakfast guide. They might also want a calculator that's for on budget so they can have stuff that's cheap so that they, they can lose weight, you know, on a budget. They might want to also have family friendly meals they can make for themselves and their family. Right. They might want to have something they can do for work. Right. You might also want to have the workout guy that they can do at a real gym or they can do it at home. Right? These are all things that take one time, time investments that you can add into the core products for no added cost and then sell that cost, sell that product at a premium because of the ancillary values we've stacked onto it. Now that's just one example of the 6 on the delivery cube. It would probably take more time to get through it, but each of these things are layers of value that you can look at. You could also add premium support on text as a way that you can support customers that no one else has. You could do it via phone, you could do it via Zoom, you can do it via chat, you can do it like that's just one of the things it's like that is a medium which is one of the, one of the, and then speed and convenience being another one of the layers that you can add on to it.

So, but before you go there, all of you who ask questions like how do I get my Amazon data? How do I get my customers email addresses from Amazon? Amazon hides it from. You give them great shit. That's how you, you call attention to all of the other ways that you help them accomplish their goals and overcome their challenges. And, and then you get them on text lists and emails and they come to Zoom calls and they join your Facebook group and they join your Discord and your Slack channel and any other place that you actually serve them. You actually treat them like VIPs. That's how you build a VIP list. You actually overcome their challenges rather than just slapping together a free ebook that you put on the inserts in your packaging. You actually over deliver for the goals that they are trying to accomplish. And then they voluntarily find you and buy everything that you put out. And then you build launch. That's how you build a launch list where you don't need to do a bunch of giveaways and rebates and use rebate key and, and break terms of service in order to get reviews. You don't need to. You're too busy winning. You're too busy winning to have to try and copy everybody else's strategies that your customers go to bat for you. That's how you win that's how you actually build the list and the response of customers to buy from you over and over and over again. And by the way, the rant that Alex just went on was if you just had one product and you made a list of all the other things that they needed and you didn't create the products around them, you just create partnerships with all these people and that becomes part of the stack. Imagine if you started asking the question, okay, well, we have this challenge and now we're going to release this product that actually solves this. And now you have the virtuous cycle of price working in your favor. Did you just say that was one of the six cubes?

Yeah, one of them.

Just one of the ways that you can do this.

Yeah.

I need a cigarette.

And what's also kind of cool about this is like we just talked about all those partnerships, right? So if you're trying to increase your average order value, if Those people redeem 10 of those things that you just gave them and those partners that you made a partnership with paid you for free customers, then you're increasing. And all of that's true, bottom line to you. So you could give away your product for free and then make all of your money on the partnerships on the back end if you really wanted to. So like Layla and I make a couple million dollars a year just in affiliate partnership rebates coming back to us because we already, you know, we already know we want to enhance the value of the products that we have. We were going to make the introduction anyways. We might as well get paid for it by gathering and aggregating the solutions in one place because that's what our customers want anyways. But as a mental, mental fun exercise, I want to run three fun mental tests for everyone that I've gotten good feedback on. The first is if you were selling your product for $100,000.

What would you include to make that product worth $100,000? Like, think about it like if someone paid you for the same outcome because fundamentally everyone's always paying for the outcome, right? The girl who buys a five dollar ebook and the girl who buys liposuction are buying the same outcome. The reason that they're priced differently is because the other three, all the other. I was going to get into the value equation, which is also in the book. But like the other variables of value are different, right? Which either enhance or detract the price that you're able to charge, right? And so if we have $100,000 thing for a dream outcome versus a $5 thing for a dream outcome. What would I deliver at 100,000? That's. That's thought process number one. Thought process number two is, whatever the price of your current thing.

If you had to get them the same outcome for a tenth of the price, what would you have to build or do to get them?

There's.

That'S the second and the third one, and this is probably my favorite of them, is if everyone here had no rebates, you had no advertising dollars, and all you had was one guaranteed customer who was going to buy the product.

And the only way for your business to grow was for that person to tell someone else about the product. What would you have to do to make that happen? To guarantee.

When you say one person, do you mean one type of person or one individual?

You get one purchase and you have to deliver such an experience to that one purchase. That is what kicks off your business.

I love that question.

I love that question.

Because I think if we ask the right questions, we get much better answers. A lot of people are like, well, how do I make more money? It's like, how do you get every single customer? You have to send you five customers? Well, it's like, well, even that question, maybe it's been overly hurt. So it's like, what if you only had one fucking customer? Sorry.

Who'S gonna. And I like that there's one shot because it's like, you have to make it so over the top that you can't say, well, we know 20% are gonna refer. It's like, what if we only had one shot, one opportunity? It's everything we've ever wanted. Star moment.

We can capture that five star review.

Or would you let it slip?

So that question of if I could, oh, if I only had one purchase, that forces you to think about a word of, like word of mouth referrals, like if and, and, and that forces you to make the experience so good that that person has to tell other people. So when you ask that question, where does your brain go when you're structuring the product and the offer?

I believe in doing the unscalable first and then being overwhelmed with the amount of business that you have and then trying to make the things that you were doing unscalable, scalable, with the added resources, you know, have from new sales. So I think a lot of people try and solve a problem that doesn't exist. They're like, well, I don't want to do something that's unscalable. I'm like, dude, you don't even have any fucking clients. That's right. What you're doing right now is ultimately scalable. You're doing nothing.

You know it's interesting because there's still questions coming in on the chat about how this applies to E commerce and it's this idea of where you take the sale is like where your business ends. And because like if, if you're selling on Amazon or even if you're selling on Shopify, if you're selling any stuff, the idea of limiting the amount that is available is a little bit of a foreign concept. Unless you're launching them in connection with an nft, which I kind of think might be around the corner.

You could do flavor drops. You could do, sure.

But, but, but even beyond that, Alex, what you said earlier about to taking the conversation off of that primary sales channel where now your platform like Amazon is really just a place where you're collecting leads at break even because you're having all these buyers flood in. But the entire business is, is constructed to give the customer an unbelievable experience that gets them to their dream outcome. The business is actually the backbone. It's not, it's not the front. Right. It is, it is everything else that overcomes their challenges. Like you mentioned those partnerships with outside vendors, it is the memberships on the back end, it is the offers that you send them in, the customer follow up process, it is that entire structure. And all of those can be limited. All of those can be, can have an amazing amount of scarcity. And I think so many people in our circle, specifically like E commerce circle, they don't think in terms of scarcity in a positive sense meaning limited the amount that is available because they're just thinking about selling the next widget. And the beautiful thing about what you just suggested is that when you're able to have that flip and realize that you can generate demand, you can pull levers in your business all day long. Like it. And that's when it gets fun because you're literally liberated to just do whatever you want in the business that isn't the best service to the customer.

Yeah.

This is so fun. This is so fun. Alex. You're doing like you're getting like thousands of subs a day on your YouTube channel. I love and hate you for it.

Because you're, you are the, you're the one, you're the one YouTube business channel that's better than me. The only one. The only one. Gary Ve and Gary V's got nothing on me. But, but, but Alex Haro is better than me. And so the, the market has spoken. You're doing great. What is the reason you think that that which is like it's just a passion project for you?

Yeah.

What, why, why is that growing so quickly? And why did you even write the book besides the fact that you need the 99 cents?

It's mostly the 99 cents. So just, I just need to get that out of the way.

Obviously. Capitalism.

Yeah, capitalism.

So yeah, I mean Layla and I, we have a portfolio companies under the umbrella acquisition dot com. And so the book is kind of the launch of that. And so you know, we take companies between 3 and 15 ish million and we're you know, with the goal of taking them to 50 to 100. And so, you know, we've got three companies that are in there. We started this about a year ago. I've, I've wanted to take on, you know, one company, ish a quarter that's kind of a penciled in goal. We started a year ago. We have three and so we're four months in and we have three.

And we've turned down probably 150 companies. And it's really just like this is just a way for us to.

Help 99% of people for free. And for the 1% that are hyper executors who can take something and implement it immediately and see their business go from 500 grand to 3 million or 1 million to 5 million and then want to allow us to participate in the growth with them, we can invest alongside and crush it together. And so that's kind of the idea is like, is there a way that we could create a business model where we could just help everyone and still have the people where we can who need a more customized like you know, when you're going from 5 to 50 million, like it's like buy my course.

It doesn't really lend itself to that type of solution. And so, so it's like, okay, well how do I work with the people that I only want to work with and then how can I give everyone else what they normally are paying 5,000, 10,000, $20,000 for and give it for free. And I can do it from the perspective of someone who's not made their money selling how to market, but actually.

Marketing the example I'm thinking of, I'm comparing you to Taylor Swift.

For 99% of people. Taylor Swift music is free.

You can get it. Actually she might not be on Spotify, but just go with me. Yeah, all the music's free. You listen to it anytime you want. And for a small fraction of people, they pay her a million dollars to come sing somewhere. You're kind of similar, right? You're like, you're for a small percentage of people. You're coming in, taking a nice swath of business and helping them grow from 5 to 50. I freaking love this.

The business. This is the business. Taylor Swift. Is that what the, the headline?

You are the Taylor Swift of online business. Alex. Alex, I am proud to call you my friend. I am thankful for your friendship. And I told, I told somebody, I'm so glad I was friends with you before you wrote this book because I would have been fanboying like a madman. I'd be like, this person's the smartest man I've ever met in my entire life. The book is that good. Like it's, it's kind of weird. I only, I only ever had this experience with one other person. I became a France with, with a guy named Dan who had won the TV show Big Brother. And I don't watch, I don't watch Big Brother. But after I became friends with Dan, I was like, oh, that's so cool. Like, I'm going to go back and watch your seasons. Turns out he was the greatest Big Brother player of all time. And I had no idea. And I was like, I'm really glad we're friends before because like I didn't know you were, you were the, the Dan. And that's how, that's how I felt about you after reading this book. I'm like, this is the smartest person alive. Like I, this is my homie. Like, he lives up the street.

Like, I can't believe this. And so like my daughter even likes this guy. She doesn't like anybody.

100 million dollar offers, Dad.

I don't feel like we've got enough affiliate offers in here.

So I did, like, I'm not just saying this is your friend, but this is probably the best business book I've ever read. Like it's, it's, it's really, really freaking good. So well done my friends who are watching. There's still over 150 of you watching. Go on Amazon. Buy this book. It's called $100 million offers. It's by Alex Orozi.

Click. Write a review when you're done because it's 99 cents. And if you don't make a million dollars from reading this book.

You read it wrong.

You read it wrong. Well, the book's a scam, right? If you don't make a million Dollars, then you know that's what it is, right?

That is, that's not a legally binding guarantee because I have no affiliation with this book. But like, if, if this does not radically change your business, you're doing something wrong. You, you misunderstood.

I was gonna call it a million dollars in 12 months, but it was.

Already.

My second favorite name. You should have called it 100 million.

$100 million.

In 11 months. So Tim DeMaster says I just bought a million copies. Did I do it right?

You did it perfectly. Thank you, Tim.

I'd say it's a good start. That's a good start.

Just, just for a little bit of context for everyone else here, the, the, the book's broken into probably like three main sections. So you've got the primary section which is picking the right market to go after, which I think Brian and I had a lot of conversations about. But like there are ways to pick the right markets that are probably counterintuitive. And so this is how we pick niches that we think are going to do well. And it's not complicated, it's just different. And that is what unlocks the pricing power, the virtuous power of price things that we talked about charging what it's worth, getting a premium over delivering, all that kind of stuff. The second kind of chunk of it is the actual product itself, which is kind of the entire ideation. This different lenses and perspective through which my favorite part. Yeah, and that's, and candidly that's the meat of the book. I mean, because that's. It should be, it's about the product, you know what I mean? And so that's, that's where we talk about the value equation. We talk about how we can solve problems, the six different parts of the cube in terms of delivering on the product. And then the third main section is what we call, or what I call enhancers. And so that's the bonuses, that's the scarcity, that's the urgency and fun fact for everyone. Most people conflate the two. Scarcity is a function of quantity. Urgency is a function of time. And so you can have just urgency and you can have just scarcity, or you can have urgency applied to bonuses, scarcity applied to bonuses. You can have a scarcity applied to a guarantee. There's different ways you can combine these things. Guarantees. There's four different types of guarantees that exist. A lot of people don't know that. You can also combine guarantees, so you can have a 30 day unconditional with a 60 day conditional. You can have an anti guarantee, you can have an implied guarantee, which is the fourth type of guarantee. And so I talk about the different guarantees, the pros and cons. I've used all of the guarantees in that book and I pulled out my 13 favorite that were the highest converting for us. So I have those in there. And then finally, one of the sections I think that's underrated is just naming. So like how do I go about naming a promotion or how do I go about naming a product and it's more about promotions is kind of at least how the. The naming section is set up. But it's like more about promotions and bonuses is how to name those things. And there's some interesting things on, like how to rhyme the names, how to alliterate the names and things that make names catchy and stick that have just been things that I've found over time that I think a lot of people find valuable. Because a lot of times simply by changing the name of the promotion, you can 3 or 4x the conversion, even though you haven't even changed the product. And so that's what's crazy, right? And so it's like sometimes people just miss the most basic thing. It's like you're six inches away and you just need this last push. And that's why I think I pulled out the naming. So I thought it was an important component to wrap the whole journey up. So that's the book in a nutshell. I think that's why we've had such a high return on advertising. It wasn't as much as people enjoy our sales content and the pricing stuff that we talk about and all that. I think that at the end of the day, getting the product to be so good that people can't help but line up and buy it, that's the goal.

And let me wrap with one thing that is early on in the book that is so motivating and inspiring and uses the best analogy possible. Baseball.

The best, the best thing, the biggest win that you can have in baseball is to score four points. The absolute best case scenario is to walk up to the plate with the bases loaded and to hit a home run. We call that a grand slam. That is literally the best play that can happen in the entire sport. But in, in business, the great game of business.

You get to take as many swings as you want. And just hitting one grand slam in business can make hundreds of millions of dollars. And so often we get caught up in getting it just right and making the one thing that we have going. I call it the golden turd, polishing it until it's perfect and hoping that it becomes something one day instead of just swinging and swinging and swinging and swinging until we have the grand slam. This book gives you the loaded bases, right? It can't help you connect. It's not going to do push ups for you so that you're stronger, but it loads the bases for you and you get unlimited swings in business until you die. You can keep swinging and you can keep trying different experiments and eventually you're going to connect. And what this book did for me is make me feel like I was coming up to the plate with loaded bases and now it's up to me to become the the person who has the skills and the habits and the mindsets and the beliefs and the right approach for me to be able to swing and connect and hit a home run. And when you've got the bases loaded, it's a grand slam offer. So my friends.

As someone who cares, go get this book and go through it and let it impact your business. Because this world is filled with business owners, entrepreneurs, marketers that are in it because they want to do something for themselves, which is a great start. They start a business because they want to have a different life. But you have real freedom and control and upside and value and freedom and peace of mind when your business is completely in service to the customer. The beautiful IRA irony of entrepreneurship is that you get everything that you want as soon as you build the business that is completely in service to everyone else. That is the beautiful irony of it, is that entrepreneurship is learned selflessness and people on the outside see rich people and they think it's all about selfishness, which brings more people into the game. And they slowly discover that the more that it's about them, the more they lose and the more that it's about other people, the more they win in the process. It's a beautiful, virtuous cycle and this is a playbook. $100 million offers how to make offers so good people feel stupid for saying no is a playbook for actually building the business that has the foundation to be completely in service to other people and help you get everything that you want in the process. Please give some hashtags and some thank yous to Alex Hormozi for hanging out with us tonight. Alex, I appreciate you. I look up to you and I want to be you when I grow up. Thanks for hanging out with me, buddy.

All right. Thank you so much, Ryan. Thank you guys all for giving me, you know, giving both of us your attention or lending it to us tonight. I hope you got a positive return on it. That's always everyone's most valuable asset and I appreciate you investing it with us.

Thanks everybody. Go get the book, leave it a review or else. Good night everybody. See ya. If you found value in this podcast and you're ready to go Deeper, here are three resources where we can help you. One, you can grab my book 12 months to 1 million on Audible or Amazon. It has over a thousand reviews and it's the playbook to building a seven figure business. Second, you can join our community of entrepreneurs who are following a plan to build a 1% net worth by building building businesses and investing the profits you can get plugged in@capitalism.com 1. And third, if you're looking to go deeper and build a seven figure business that you can sell, you can work closely with us inside the Capitalism incubator and you can get on the waiting list and find out what we do over at capitalism.com Inc. That's capitalism.com Inc.