How to Make $100M Offers - Summary, Lessons [Alex Hormozi]

i think where alex homozy really stands out is he's making this point about you need to create a grand slam offer something that differentiates you from all the competition and when you do that then you can get to the point where you know you create the right grand slam offer for the right audience and you'll never have to work again and his approach to business seems to be more you know over the years he's tested hundreds of different offers until he's found the ones that really work that really resonate with people and then he's scaled

up those so he's been testing lots of different offers over the years find the ones that work double down on those scale them up and there are some interesting elements that coincide with value-based pricing as well he talks quite a lot about value and he even has a really good value diagram um like a calculation which we'll get to um so what i'm going to do i'm quickly share the screen and do a quick recap and summary now hope you can see that um so yeah i think the reason this stands out as i mentioned

is because most people most video production companies they create commoditized offers and the way he broke it down is this the exact approach that most people take is that they look at the marketplace they see what everyone else offers uh they take the average price that people are charging and they go slightly below that to remain competitive and try and offer more in order to stand out so their value proposition is more for less but the key thing here is that all those people that you're competing against when you're trying to make create that commoditized

offer they're all struggling you're effectively going into a market looking at companies which are just about staying afloat and saying i'm gonna try and match their pricing but offer more at the same time which you know when you look at it in hindsight or from that perspective is absolutely nuts but the reality is is that when you're offering market rates that's exactly what you're doing and so that really sort of stood out to me as one of his first points um whereas on the other hand when you create a grand slam offer you've got something

that's value driven differentiated and you can't compare it to what else is on the market so his first example that he gave a grand slam offer was this i think he was referring to his gym business where he helps scale up gyms just for those who don't know um so he'll go into a fitness um based business like a gym and he'll help them um go from you know 20 grand a month to 200 grand a month um and the sort of offer that he'll be doing is along the lines of pay one time with

no recurring fee no retainer you just cover ad spend i'll generate the leads and work the leads for you and you only pay me if people show up and i'll guarantee you get 20 people in your first month or you get your next month free and i'll also provide all the best practices from other businesses like yours so that was one of the strongest examples of a grand slam offer that he gives in the book and i think that kind of thing where you're giving an absolute no-brainer which is the key to all of this

you're trying to create such a strong no-brainer offer that the client would feel stupid saying no and the kind of purpose of this call now is to think about how how can we apply that similar sort of principle to um to video production and to our businesses um so going down to here you can see that he sort of presents a side-by-side comparison of commodity offer and grand slam offer and the return on ad spend with a commodity offer is you know you're making you're losing out half point five to one whereas with the grand

slam offer is 11.2 to one um because you're reaching the same number of people but you're getting a much higher response rate more people are booking appointments um you're closing a lot more appointments and overall the effect compounds throughout your sales funnel so you know having a better offer isn't just a case of or a few more people are going to buy it has repercussions throughout your entire funnel and that's kind of that's the level of importance that a strong offer can have so some of the elements of grand slam offer are that they cannot

be compared to any other offer in the market it's an attractive promotion with good advertising unmatched value premium price unbeatable guarantee and good payment terms so you know you're making it accessible by having payment terms that people can afford um there were other things that you talked about in the book along the lines of like niche and choosing your audience which i think quite similar in line with the kind of things i talk about a lot in video business mastery and a couple of things that stood out to me i love this quote about don't

be romantic about your audience serve the people who can pay you what you're worth when it comes to choosing a niche i think this is just quite good advice in terms of a lot of people are trying to target um businesses based on their values on such a deep level that they feel like they're willing to compromise on profits and it's a case of oh you know i just want to i want to target the non-profit so i want to help these businesses um but the reality is is that when you're being romantic about the

people that you're serving actually your business is going to suffer and at the end of the day you need to make a profit in order to survive and maybe it's a case of you know helping those businesses later on so you start you put yourself first you build up your business and then you in the future can afford to be a little bit more romantic about your audience in your targeting and of course the degree of the pain will be proportional to the price you'll be able to charge which is really fundamental to value-based pricing

um so the other point he made about niching is that too often new entrepreneur half-heartedly tries to offer in one market and doesn't do very well and then that puts them off they just say oh this is a bad market and most the time it's not the case but they just haven't got the right offer so if you're now working in a new niche you know we've done a lot of work over the last few months about niching down and finding your niche but you're finding it's not working then this is a completely different angle

of attack so rather than giving up on your niche and saying you know what sucks people aren't being responsive this could be one of the key reasons in that you know you haven't quite dialed in your offer i made it um something that is a no-brainer for your audience and on the topic of niching this was a fantastic explanation of why niching is so important you know so if you're selling say a time management course or time management product you can sell it for 19 but as you become more niche time management for professionals the

price goes up and then you get all the way down to time management for outbound b2b power tools and gardening sales rep you are serving such a specific audience in providing such a specific solution that you can pretty much charge whatever you want for it and i'd argue that you can even go a little bit deeper than that and you can apply that same principle to any business or niche that you're in and another key point you can literally charge 100 times more for the exact same product so in this example here it's a time

management course but the way it's marketed dramatically affects how much you can charge you're not changing the product it's just changing the pricing and the marketing um so obviously when you talk about that you know charging more for the same product it brings up that kind of thing of well is it good to be charging more for the same product is that ethical and is it moral and he presents this fantastic argument that yes it is because when you charge more you get greater emotional investment from your clients greater perceived value greater results more demand

and more revenue and then for your business obviously there are benefits too you're making more profit more perceived value yourself and i think this is such a important point that the premium clients the one that you can charge more for are the ones that are much better to work with they're much more enjoyable and they value your services more and everything in my experience of business over the last 10 years aligns wholeheartedly with this and i think it's just a great explanation so for anyone who's doubting whether or not you should be charging more for

the same product then absolutely yes you should and if you have any doubts and you haven't read the book then go and read the book um so this brings us on to kind of the heart of it now this is one of the things that uh was most interested in and it's his value formula so i also think this is one of the things that we can apply directly into what we're doing with our marketing uh with our video and creative businesses and the value formula is this so stream outcome multiplied by the perceived likelihood

of achievement divided by the time delay multiplied by effort and sacrifice so i'm talking about with value-based pricing in the meeting you're trying to work out what the client's dream outcome is and that's like sort of the the meat of a meeting you're trying to figure out um what the vision is what their vision is for the future so you can help them achieve that and then the perceived likelihood of achievement when it comes to value-based pricing it's that question um you know so if everything goes to plan what do you think would be a

reasonable um amount to spend to ensure that this project is a success and we're pricing it based on that sort of 20 to 30 percent mark and that sort of reflects the likelihood of achievement and i've talked about guarantees before so if you're 100 sure that you can uh get the result for the client that they're looking for then you could potentially charge a hundred percent of the value so if the client stands to gain a million pounds over the next year through working together to achieve their dream outcome and you have a hundred percent

likelihood that you can help them achieve a million pounds you can charge close to a million pounds so the percentage that you do end up charging is this part here it's the reflection of your perceived likelihood of achievement or more importantly it's their perception of the likelihood of achievement so on this equation you want to be increasing the things on the top you want to be increasing the dream outcome and you want to be increasing the perceived likelihood of achievement then on the other side of the equation you've got the negatives you've got time delay

and effort and sacrifice and you want to be reducing these two things so if you can reduce the time it takes to achieve the result then there's greater value so if you could get the result instantly and he talks about uh liposuction for example so you know liposuction takes a day and you've got the body you want and it costs like 25 000 compared to if you did like a fitness boot camp it might cost 100 and it's going to take you 12 to 24 months to get that body that you want so because the

time delay is less it's more there's greater perceived value in the customer's mind and then the final part of the equation is effort and sacrifice so how much effort is the client going to have to put in in order to achieve that result um and these two bottom ones are kind of uh that's what we approach in the three-tier pricing model so when we're putting together a proposal for the client we're thinking about those two things there's the uh do-it-yourself version the done with you version and the done-for-you version and you're able to charge more

according to how much work you're putting in and how much less work the client's putting in so this equation as a whole has given me like a sort of a fresh perspective or slightly different way of thinking about the whole way that i approach meetings and putting together proposals for clients it's all very complementary to value-based pricing but at the same time it builds on it and adds some fresh perspective so the other points down here are just elaborating on the things that i've talked about so you can keep this document um and check it

out in more detail later if you want um then the thing that he goes into is creating your grand slam offer so i think this is where the book is super helpful if you're wanting a practical step-by-step guide to how do i figure out what my clients problems are and then how do i create solutions and then how do i create my grand slam offer if you haven't read the book that's where um you can follow that and i think it's in that it's with absolute certainty you're going to end up with more effective marketing

and greater certainty when you're speaking to clients if you had to follow that process that he outlines in the book so once you've identified their problems and come up with solutions so for example listing problems buying a healthy food is hard you create a solution to each of the problems listed and then you figure out your delivery options of how you would deliver um upon that solution and then you trim them and then you bundle them together so it's a really nice approach to figuring out your own marketing and how to create grand slam offer

um this is the kind of uh the hard to sell easy to fulfill conundrum which says continuum but you know the easier is easier something is to sell the harder it is to fulfill and the harder it is to sell the easiest to fulfill so for example um if it's hard to fulfill it's going to take you you know 12 months of work and it's going to be you know super intensive creating all this video content and delivering on all their marketing objectives that's going to be easier to sell so what you want to do

is you want to find the sweet sweet spot between the two for your offer and the goal of course is prospects will now only make a value based rather than a price-based decision or whether or not they should buy from us um then the final thing on this note and we'll get to hearing from all you guys in a minute but the goal of this is really to create a new supply and demand curve so if you ignore that right side the new demand this is what a traditional um supply and demand curve looks like

on the left um you know price increases units increase but you're trying to create an entirely new demand curve so it's it's selling the same product at a premium price um and if you can imagine on the left side you have videographers who are selling a commoditized service and they're struggling to um they're struggling to find the demand because the supply is too hard the intention behind becoming a video strategist or differentiating yourself based on being able to do more than what others are delivering the intention all that is to create a new level of

demand um but i think for the purpose of this call we'll focus more on the um the value equation here and we'll talk about more about how we can apply that into our businesses but for now let's hear from you guys um had some great conversations with some of you um over the last couple of weeks what was your take on the book and what aspect of it do you feel is most relevant to your business at the moment something that you feel like has given you a fresh perspective or a slightly different way of

looking at your marketing and your business i think the biggest thing that stood out to me was the guarantees section which i finished like yesterday um and i was wondering on like what your take would be on applying that to like you described it's really difficult and a little bit trickier when it's a high cost service as in high cost of our time or expenses or you know it's not like selling a product that's already been made and you can repeat it like a digital product for example is great for the guarantee thing um but

with with something like video production how would you incorporate guarantees into that that's a big thing that i was thinking about yeah i guess that's more of a question than a takeaway but yeah it's interesting i think that is one of the biggest um observations from reading this book it's just how important a guarantee can be um does anyone right eliminating risk that's the biggest thing that stood out to me yeah yeah at the end of the day if you say to someone you know i can guarantee this result and you're not going to pay

anything until you get it then that's you know the the probably one of the best ingredients that you can offer for creating an absolute arena for the client so i think going back to his grand slam offer the example he gave at the very beginning you know the pay one time no recurring fee no retainer just cover the ad spend i'll generate the leads for you and work them and you only pay me if people show up um so you know looking at that if you were to apply something almost identical into your business what

would you what would be your concerns what comes to mind like if you were to say to your client that you're going to create a campaign for them so you're going to create video content perhaps you'll run ads to that content as well to generate them revenue and they don't pay anything until they start seeing results what's sort of your initial response to that i think that what concerns me about that is it would i mean not that it would be impossible but it would take some time and careful planning to define what those results

would be that would that would make them successful in the client's eyes and my own um and also if for some reason the client screws up on their end and maybe doesn't take it seriously and doesn't if they're not selling the uh the leads that are coming in let's say um which really depends on the business and it would probably work out fine for a lot of people i work with but like for example if i'm you know what i want to do is like create marketing material for startups in order to get investors so

they might not see a substantial investor for six months after we create the video and then even then it's not one of those things that's like traceable it's not like you can tell who went through a funnel from a facebook ad and which leads are actually from my services and which ones aren't um so that's one of those things where it's a little bit more ambiguous with my specific stuff my specific work um and i'd say that would be it just seems like a lot of confusion um and while that would be like i'd make

infinite sales off of that i feel like it'd be very high pressure to fulfill that and like keep a track of everything you know yeah so i think in that case we're going back to you know the audience targeting and you've got to be picking an audience where there's a massive pain they've got purchasing power they're easy to target and it's a growing audience um i'd say that one of the challenges there with it being a startup company you've already pointed out that it can take six months in order to get the result so not

not saying you're being like romantic about choosing the audience but potentially that's not an audience where you could guarantee a result it could be that you can't apply a guaranteed grand slam offer to a startup company because the very nature of startup businesses is that they're ultra high risk uh there are greater chances that they could screw up i actually about an hour ago i just got out of a meeting with a startup wine company um and it was it was literally that over and over again it was like they didn't quite know what they

wanted they didn't yet know what works the level of risk is much higher so my initial thoughts on it would be um extra high risk startups tend not to know what they want and every single one is going to be different so the needs for every different startup will vary to such a degree that it would be very hard to create an offer that you can repeat and scale um i'm not saying it's impossible but that would be my gut response to it whereas with example of alex's gyms you know he's got a very specific

idea of what level the gym needs to be at how many employees they need to have how he reaches them and exactly what tools he can apply to help them scale up so i was talking to uh derek who will bring on a minute um a lot about this and uh he was asking me sort of what you know how would i approach it and i was saying that you know held hotels would be quite a good example because um they're all quite similar they've they've all got a massive pain which is that they need

to bring new customers to their business they have the purchasing bower if you're targeting hotels or you know ones that are big enough they're easy to target and they're growing so you know hotels would meet all of the criteria which is a nice start and also you know that you can scale the offer because if you can do it for one you can probably do it for a thousand um so i'd say to kind of answer your question i'd say really it's like maybe startups would be one of the most difficult in to create a

scalable grand slam offer um but definitely not impossible and i think a lot of these same principles can be applied to startups so with a meeting i just had a couple hours ago it was uh it was a case of applying value-based pricing trying to work out what the potential value creation is within their business we were talking about how long it would take to get the result the likelihood of success and all of these things but it was very different to any other meeting i had because their needs and their requirements are so different

to every other business so does that sort of answer your question i think uh yeah definitely um one additional question it raises is scalability that's another thing that i kind of i feel like without having that leverage of also providing the marketing services or like the firepower behind the video production to actually get it out there and distribute it um i feel like the scalability is somewhat limited in that i don't have like a production team yet you know what i mean or like it's not the same thing as like it's talked about in the

book where he can just like basically instruct them from afar how he you know realized that at a certain point um so i mean that's pretty far down the road but i like to hear your thoughts too on like scalability yeah i think i think that's that that is the key thing that like it's easy it's easy to try and look at the whole picture and the end result and think you know holy that's a lot of work to do to get to that point where you've got all these systems in place but one of

the things he does emphasize in the book is that you should massively over deliver on that first client and i think that's the key there is that you don't necessarily need a whole team and all these things in place but what you're trying to do with your first client is it's gonna it's gonna take you a lot more work and you're gonna be testing out what's working and what isn't and you're going to be developing your process your how um but if it works for that first client then you know then that you've got the

kind of the case study and you've proved to yourself that it's possible so then there's no reason why you can't scale it up and you know the decision of should i hire a team of people in order to deliver on this if you've proven to yourself that it works then it becomes a bit of a no-brainer as well you know having that the marketing stuff in place because the video isn't going to go anywhere without the proper uh district distribution on it so would you say like outsourcing that through your own company to you know

to advertise it let's say or to only work with people who already have those plans in place to use the video in the correct way yeah like uh so specifically with like paid ads for like facebook and instagram and stuff like that um yeah yeah i'd say i'd say find a good freelancer to begin with um so the one that i work with at the moment is around seven or eight hundred uh pounds a month um per ad account and she'll help me you know if i've got a new client coming in then that'll be

a new ad account but you know we're talking about creating a grand slam offer here which for which you can charge tens of thousands of pounds or dollars so in the grand scheme of things you know paying a ads expert you know a grand a month or something in order to manage account um really isn't all that much and if you then get to that point where you know you you've got so much ad account management going on then it makes to make sense to hire someone yeah because i mean i just feel like the

uh the offer is so much less compelling when the video is only one part of the equation for getting them more business because it's just a video is a deliverable on its own but it doesn't do anything without that advertising power whether it's coming from you or from the client so i'd say that there are there are a lot of business occasions where there are videos which can be dramatic like there are key videos that are key parts of people's marketing funnels of which when improved can dramatically increase their conversion rates so it might be

a it might be a sales video on a landing page would be the most obvious example and it might not be performing particularly well but you'd find that out from having an initial meeting with the client you know that most of their revenue is coming through this one particular product you'd find out that that particular landing page is the sticking point and it's not converting very well and then by you creating a much a much stronger video then that would be a measurable result which could make a dramatic difference for business you know especially if

there's a company making millions in sales a year from a particular product if you can increase the yeah efficiency of a conversion on a page by a better video by one or two percent you know that can be tens of thousands of pounds um in increased profits definitely and that's what i mean is like the client already has the landing page set up and they already have all this stuff to sell it and the video is just a component of that so yeah i guess yeah i would only want to work with people who already

kind of have all their eggs in the basket in that sense that's why i'd suggest to begin with if it's just video that you want to be offering then pick your clients carefully and choose the ones where they have those other elements in place but then over time you might want to then add additional services which means you can solve bigger problems which means that you can charge more so if you get to the point where you can start offering this sort of point that i've got to now where i'm offering landing pages web development

copywriting ad account management you're basically just increasing the range of businesses which you can target and you're increasing the size of the problem for which you can solve for them which means you can also increase the amount that you can charge um but by no means should that be off-putting you shouldn't feel like oh just because i can't offer ad account management and all these other peripheral things that i can't get a great result and i can't create a grand slam offer you just have to be selective about which businesses that you are targeting and

that could be the guarantee in itself is if the video doesn't work then we'll work with you until it does that's one that i actually feel somewhat comfortable with guaranteeing at my place right now is like i wouldn't have a problem with you know if someone didn't see a result i'd have no issue with just continuing to work with them until they do so yeah but i think that's a great way to think about it yeah i mean and you know if you're working with a large if you want to work with a business that's

turning over 20 million a year and you're a small company just starting out giving them that level of confidence in your abilities and reducing the level of risk for them will dramatically increase the chances they're gonna work with you and you know it just says so much about it says so much about your confidence and your ability but also you as a person it increases trusts it just like there's so many reasons to to do that definitely yeah that sounds great well thank you cool yeah no thanks for the question it's really good if you're

offering a according to this sort of business model where you're not being paid up front but being paid by the results um how would you go about measuring that if and barring asking the client for some information that they may not be willing to provide um i i've never been in a situation where the client isn't willing to provide that kind of information because if you're collaborating with them and the intention of the project is to help them say increase conversion rates on a landing page that's just the obvious example if that's the intention of

the project then why wouldn't they want to share that information with you because you know i think that would be one of the determining factors for me going into the meeting and you've got to remember it's not just about them deciding if they want to hire you it's also about you deciding whether or not they're a good fit to work with and if they're kind of being closed about offering up that sort of information then i'd really question whether or not they'd be a good client to work with um but i you know i think

in almost every situation that i've been in it's pretty easy to measure things like conversion rates increases engagement increases in views but it's something you have to agree on in the early stages of the um you know like the initial meeting with the client does that make sense uh yes it does i i have a situation right now where i have a prospective client who's um i guess it's along the lines of the startup so maybe this uh answer your other commentary answers my question perhaps because it's a new cafe and they're trying to generate

new business they had some success in the very beginning um and that has tapered off so the results for them would be specifically just more increased customers so if i'm looking at say video for instagram and that sort of thing they need to be able to measure the results directly and and i guess i'm not really sure um how that would be done unless i was to look at their books i i don't know i haven't really thought it through too much and i also have yet to read the book so um maybe i'll have

those questions answered when i do yeah and i as i said before like startups are always the hardest to work with and measure results because they have so little data to work with and again the meeting that i just had with the client one of the biggest challenges when it was coming trying to establish the value of the project is that they don't yet know what works and what doesn't because they're such an early in early stages of their business but what i said to the client was that we're going to need this information xyz

you know i want to know where you're at in terms of customers and sales at the moment and let me know where you want to get to in the next 12 months and he wasn't able to provide that information then and there in that meeting but i just said you know once we know that then we can create a solution that's more proportional to the problem um so it's just about being fully transparent with them and saying look i need this information um to be able to figure out what needs doing and i think you

know as long as you're going into the meeting on like a partner level where you're building that trust and you're talking um about their business and not just going in as a expendable service provider then businesses tend to be more transparent and open with you about the information that you need jessica is asking can you elaborate on that more regarding uh what you offer beyond video i've been thinking of adding copywriting my offer but hesitant because i was thinking that's too far from video um or at the end of the day it kind of comes

down to whatever the client needs in the specific scenario and for me for the evolution of my business i've not planned ahead thinking you know right a year from now i'm going to start offering copywriting or one day i'll start doing facebook ads it's literally come down to as i've had meetings with new clients it's come up on the conversation that oh they're really going to benefit from perhaps some new newsletters which means that you know perhaps their newsletters are really inconsistent or they're not very good so perhaps they need better copywriting so it will

just be a case of in that meeting when discussing with the client i'll say okay well this is something that i believe i can help you with um well what i'll do i won't promise it in the first meeting we'll talk about it we'll find out that's one of their main challenges and then when i go away to devise a solution and think up some ideas and how i can help them with their problems then i'll be speaking to some copywriters and i'll find out uh you know what the cost is going to be and

what the you know how challenging it's going to be and if it's going to be worth my time and if it's going to help them get their result so um yeah i'd say don't worry about it as in thinking ahead of time and you know you won't necessarily know who you're going to be able to help until it and what they're going to need until you have those meetings with people derek we've had some really good conversations um around this book the last couple of weeks and i just wanted to hear from you you know

what were your main takeaways from the book uh you know maybe like uh top two takeaways and what things has it got you thinking about in terms of new ways to approach your video business i think in general i think i'm a little bit of an overthinker but uh i liked the way that this book approached it because it it showed [Music] a little bit of a pathway to take advantage of that maybe you know one of the things that really stuck out to me through this is uh once you achieve once you just uh

once you understand what the dream outcome is uh and you start trying to work through that uh you are you're hard hard-nosed in essence really becoming an expert on what the problem or how to overcome that problem by challenging yourself at every step when you come up with the solution what or you know i'm going to propose a solution or i'm going to propose a dream state what problems exist what what uh what negatives might come out from the uh from that client and then you solve for every single one of them and it turns

into a pretty large web of problems but if you can hit every single one of those scenarios while keeping in mind that equation uh then they they in theory will have no other choice but to say this is this is a deal so so uh reasonable that i have to say yes to it um so i i appreciate that i think that that is um probably the biggest takeaway that i have is uh is that i'm not a hundred percent uh excited about the idea of putting together uh video work for free um initially i

mean i do i've done that i do do that occasionally still now but uh that's that's how i've been kind of approaching it is figuring out a model where they'd still be willing to pay for the video but when they compare me to any other video guy the value that's going to come and no risk to them aside from the cost of the video is is so incredibly high that they work rather work with me than just a guy who's gonna point and shoot yeah i think i think that's kind of the heart of uh

value-based pricing is making sure that you're delivering so much value that the price is an absolute no-brainer you know if you're solving a million dollar problem and you're charging you know 50 to 100 grand or something the value to them in their mind is so great that you know they have almost no doubts well it might be it might be maybe i didn't explain 100 so i know that that's very similar to what we've learned uh through your course i guess the difference would be is uh it's you know the upfront cost of video and

then everything else is risk-free but it's still conditional so if they hit a certain goal then i get paid out a larger amount but in the meantime the only upfront cost for them though it is a risk though it does change their uh their effort and sacrifice um it's it's still exceptionally minimal and comparable to maybe just a video guy uh but the reality is they get significant value that's completely dependent and and i only get paid on that if completely and it's completely dependent on how well they do so maybe it turns out that

it's like a seven grand video or something just to get started but if i'm you know if if they follow the plan that i've built for them and they knock it out of the park we hit the goals that we set then i'm then i'm paid out a larger sum yeah yeah 100 and is is the like i get the point you're making that i completely agree is there like a main question that comes out of that no i'm trying to crack that code i guess uh i don't want some of the problems that have

been coming out with that is how to hold a company accountable you know if they wanted to lie i know that you said you've never really encountered that problem before but so for example i've been speaking to a handful of different people within um hr because that's the problem that i'm looking to solve within the hiring process as something i'm looking to solve for manufacturing yeah and uh uh from everything i understand from them there's there's zero interest in letting anybody go near um you know their private information so if there's a way early on

like you said to um to have that be understood that we'd be somehow intertwined with that or to or on the opposite side to create a scenario where it's not there's no need somehow for them to be um letting you get that intimate but still a way for you to track that kind of success uh that's that's the problem that i've been working through right now trying to figure out that and for the agritourism because if the goal was to get more bookings for example with hotels or anything with tourism related um unless you're unless

you're in the you know intertwined with their uh their booking system how are you really going to know for sure how well you're doing you really have to go on the honor system or unless i'm sure there's another way i just haven't figured it out yet some of the yeah really interesting points there so i think the main concerns that i was getting out of that from what derek was saying were really you know how scalable can it really be what if it doesn't work out um there's fear around creating something for free as i

think so just to take it one by one you know the first thing like fear about creating something for free that's almost the main appeal for the client is that it's so low risk for them that it's an absolute no-brainer um and obviously the that's quite scary the idea of creating something where you're not going to make any money unless they generate results that's exactly what i think all of alex hormozy's offers uh incorporate the idea that he doesn't get paid unless the client wins so you have to have such a high level of certainty

around your offer but you know then again do you want to invest the time and try and create that grand slam offer where you know there's greater risk to you up front but the reward is such you know there's no limit to the level of reward the risk is capped at uh you know whatever it costs you to fulfill that project so it might cost you a couple of grand to create the video and deliver the content um but the potential upside is if you create a grand slam offer you could be making millions or

tens of millions so the risk reward equation of trying to go down that route of creating a grand slam offer where you might be doing something at cost or for free to begin with um i think is is worthwhile jessica do you want to unmute yourself hey jackson yeah this is it's been a great meeting so like what derek was saying i think that's pretty much like my concerns reading the book like i like the book a lot but like like you said um i felt like there was so much risk involved for video people

just because like a lot of the methods like alex was doing um was like providing like the only thing he's sacrificing is really his time but like for video people it's like you know we're using our equipment we're using so much cost up front i just felt like is that risk really worth it depending on the right client so like i was just wondering you know if anyone else reads the book and they actually like you know start applying like grand slam offers to like um their clients i definitely would like to see like how

they did it just because um i read the whole book but i really like this meeting definitely helped but i'm still trying to figure out how i can actually you know apply this without me like taking that big risk video i mean yeah yeah um so just like on a practical level have you got uh have you got a camera do you know people that you can work with you know good video creators like what i'm getting at is you know what what is the actual cost to you so the worst case scenario say you

work with a you find a great client for which you could create an amazing grand slam offer but it requires you putting up the work up front you know what's the maximum damage that could be done financially to you are you asking like how much money i wouldn't like mind losing or like no i mean how much how much could you lose you know like for me so if i was to deliver try and deliver a grand slam offer where it was zero risk to the client and i was taking on all the risk i

i don't think i could imagine myself in a situation where i'd really be spending more than like a couple of grand of like upfront costs to create and deliver like an exceptional video and i might even be in a situation where if you know i wanted to bring on some other film professionals that maybe they'd do it at a reduced cost with a small profit share or something with me as well so we'd be taking on the risks together um that's a good point okay i didn't think of that worry yeah i just think the

the actual upfront risk uh doesn't outweigh the potential reward um and it might you know it's not a case of throw everything all your other work out the window and just take take on this and make it ultra high risk you know this is a case of i imagine of over a period of months or potentially years dialing in like the perfect grand slam offer for your clients and figuring it out over time okay that that explanation actually really helps yeah i mean i didn't think of it that way okay yeah cool okay um but

no it's interesting so that yeah the point you're making is that you know alex was just sacrificing his time but video is expensive um but again you know that's why we can charge more for our services because video is expensive but also the potential upside is also higher what's like the worst case scenario for you so you have a meeting with a client and you come up with an amazing grand slam offer what's the worst that could happen absolute worst that happens is uh they don't follow through with the plan and i don't get paid

so but what's the actual financial cost here it's whatever however long the video is going to take it depends on you know maybe it's something that's a two-hour video maybe it's something that requires uh time up front to stage it out maybe it requires i don't know a handful of different things like you know for example the video that we're talking about for a solution for the manufacturing required would require sitting down with the employees and learning more about what uh values that they appreciate about the company why they would be going why they would

stay um what they you know and just what the real culture is so identifying things like this is so it's not just the video it's sitting down with the company it's it's doing some market research around the topic um and so in this case there are there's a mix of up front like set it and forget it i can scale this out to any company but there's also i need to sit down for you know a couple of days between doing market research filming and reconnaissance just asking questions with the company followed by maybe up

to a week for editing that video and then um just a handful of different side options over the course of however long we set the the program for okay um but in that case yeah so so if we imagine like a sliding scale where you've got on one end you've got the traditional route which is that the client pays everything up front um and you know they they pay full work and as a result of that you charge a little bit less because the risk to them uh sorry the risk to them is higher the

risk to you is lower then on the other end of the spectrum you're offering to create something for free you're taking on all the risk and then they're not taking on any of the risk and i think that's where your concern is that you know if you took on all of the risk but it didn't pay off it didn't work out then you'd be losing out a lot now what about if there was a middle option as well what if you got the client to pay a deposit which would cover your costs you know so

perhaps you call it like a five grand deposit so rather than them paying you know 50 up front 50 later or you know them getting it for free what if they're just paying say five grand deposit and then the work or you know whatever your costs are up front and then you've got reduced risk but the client also has reduced risk so you're finding like a middle ground so that might be one option to approach it um i like that actually you know if there is a if you position it like what you're saying as

an upfront or a deposit that could even be refundable upon if they succeed or whatever kind of parameters you might set but if there's something great yeah well if they succeed then they're not going to worry about that cost yeah uh and that that makes it so i can be able to handle the video side without uh without the serious sense of risk on my end yeah while still giving them a lot of value where they have that risk-free um pathway yeah i mean you can just say as well the deposit is there to make

sure that they're serious um you know you want to know that they're serious so you could also make it a refundable deposit as well you know you could say if your concern was more about trusting them and you wanted to make sure that your costs were covered but you still had a lot of certainty in what you could deliver you could say that there's a five grand refundable deposit and if we don't reach the objectives then the money could be returned to you so that that'll be yet another way of approaching it so i guess

it's all about factoring wait it's weighing up the risk reward calculation for you for your business you know what you can afford to do up front um obviously the greater risk that you are willing to take on the higher potential reward um and the other thing as well is that you know on that that end of the equation where you're taking on all the risk the appeal to the client is is huge because you've got such a level of confidence in your abilities you know you're saying that you're not going to get paid until they

get a result is there anything that comes to mind where you just have like a really high degree of certainty that you could deliver something where you'd be willing to take on all the risk and you wouldn't get paid until they got a result i think yes however i think also part of that would be to to forego uh the video side of things so i can you know i came from a marketing uh position in my life in the past um while always doing video kind of you know as a hobby or some other

enjoyable experience until more recently in my life so i can i can develop maybe you know for example uh the agritourism side of things um i think that i can increase people's rates um pretty easily with without any serious upfront costs to them just basically small tweaks that can increase to increase their bottom line for how much they charge per client that but it wouldn't be it wouldn't include uh video idea doesn't that doesn't have to include video if you can see a solution to a problem that doesn't include video and it has lower upfront

cost to you then then go for it that i like that idea that you were saying before about the the uh the down payment or not the down payment the um the deposit yeah i'm gonna i'm gonna pry into that a little bit more yeah i think it was uh really interesting to um go through this process of reading a book studying it at that level hearing from everyone and also thinking about how it applies directly to um our own businesses it certainly got me thinking a lot um it's not necessarily giving me completely new

information but it's given me different ways of thinking about things and different ways of approaching things i'm now thinking a lot more about how can i take the offer to such a level where the customer would feel silly saying no