The Offer Is King (ALEX HORMOZI)

hello everyone and welcome back to i guess my show so anyways um i guess you could call a show i don't know thoughts anyways so um i wanted to make something so this is called the offer is king um and that's because the offer is king so if you have a good enough offer you don't have to sell hard you don't have to have amazing copy or amazing creative um you just get a lot of people uh to sign up for your thing and so if you really think about your business most businesses should be

founded on a core offer that is exceptional like an irresistible offer that is what's going to grow the business right and so what i want to walk you through is uh three really good offers uh the three components of those offers and then seven ways to ethically use free so um we're gonna cover a lot of ground really fast so um three of the greatest offers of all time were domino's offer some of you guys may remember this but it was delivered to your door in 30 minutes or it's free right that's an irresistible offer

and they had [ __ ] pizza but because of that people wanted to make the order they didn't have to sell them on it they saw the offer and when they were hungry they were like shooting 30 minutes i can do that i can have pizza at my door and sometimes there's almost gamification it's almost a challenge that's like well if it's not in 30 minutes i get the pizza free so um it was something that was incredibly compelling it was one of the fundamental uh keys to their growth and why back in the days

of yellow pages it was literally an entire section was pizza no other restaurant had a food category pizza everything else is just restaurants right so um anyway that was because of that one key irresistible offer all right the next was uh 10 cds for a penny right this was from i think it was sony way back in the day um now obviously it came with continuity and so that was kind of like the first trial offer um but that offer is one of the single greatest offers of all time for those who are old enough

to remember it the third offer you may recognize which is when it absolutely has to get there by tomorrow morning and that is fedex so you'll notice the first two kind of have a pricing component fedex does not but it has a really high value component to it so i just want to break down these things into uh three pieces each offer has a component of believability right uh there's a famous marketer who said for every dollar you give me i'll give you a thousand dollars back he ran an ad in the paper and he

got zero responses right that is a crazy offer but it's so good that it's not believable and literally no one responded to the ad right and so one of the things that makes offers believable is having a reason why that you would do this right if you're like hey i'm you know i'm dropping all my prices by half off because i uh all my inventory's gonna go bad people believe that they're like okay or like i'm overstocked and i gotta make room for you know new new inventory everything's half off people believe that it's a

good reason why right so believability is number one number two is a high roi offer so basically um an offer that people deem valuable uh that can be communicated in a couple of words like guarantee you to your door in 30 under 30 minutes that was valuable for fedex it was at you know delivered to wherever you need to be or wherever it needs to go by next morning that is valuable right you can give offers but if people don't find it valuable it's not going to matter right and so um the third piece is

kind of the business around it right and so that's kind of what i want to cover with uh free offers because you'll notice the penny offer is basically free uh the domino's pizza offer has a free component to it and so understanding how to use free as a marketer is probably in my opinion the single most valuable thing um that you can learn how to do it's learning how to build a better mousetrap and so um right now i'm working on a book called acquire and the subtext is building a better mousetrap which is just

kind of like how to structure offers in a way that you can get tons of volume but also make money on the offers right and so this is uh you know my notes for the different ways that you can use free offers and i think i have seven on here so i'll walk you through them pretty quickly um to just kind of explain them so the benefit of having free offers is that you get the highest volume of leads right number one number two it's it's typically the lowest cost to acquire customers so that's number

two and the third is that in my opinion um the key to having massive growth is to having a free offer right and especially something that's irresistible that can spread through word of mouth that other people can comprehend all right so first of the free offers is a free bribe offer right so this is where you offer a so when someone comes in you offer a program for free as a benefit for signing up right so frank kern way back in the day did a uh he had all of his courses that he'd ever made

so high value offer probably twelve thousand dollars in value he said i'll give you all of the courses that i've ever made absolutely free if you sign up for my 397 a month continuity right my newsletter or whatever right so that's a free bribe offer so you can use the word free brings lots of attention has huge value in roi but it was a free with purchase right so that's kind of the idea is like if you buy this much smaller thing you get this huge value thing for free and it's also a really nice

price anchor okay so that's number one if you're doing a fitness thing it's like hey uh our six week challenge is a thousand dollars or you can just sign up to become a member and get our thousand dollar challenge for free and only become a member for 200 a month right that becomes a really compelling offer lots of people say yes and you get people straight into continuity all right the second is a limited free offer a limited free offer is let's say uh this is an a b close when someone walks in the door

um obviously the vast majority of people are seeing this are gym owners so i'm going to just make it gym specific so if someone's coming in you say okay the free thing let's say you sign up for a 14 14-day or let's say a 28-day you come in for 28-day promotion uh the free thing uh has one you know you could say 28-day trial they come in it's one day a week of workouts you have no personalized nutrition no nutri no accountability coach right now during the sales process they'll have already said they're not motivated

they need help blah blah blah and so then you upsell right as american as apple pie a 28-day challenge or 28-day intensive or whatever you want to call it accelerator where they uh they pay 199 or 299 or whatever for the enhanced version that has three workouts a week or unlimited workouts and personalized nutrition and an accountability coach and if they don't uh you know lose 10 pounds in the first 28 days you give them another 28 days free right so you have an upsell from an initial offer that makes it incredibly compelling right that's

the point so they get all this volume for free but then you can still upsell three out of four people into a paid offer all right so that's how you use free and you can monetize it the third way of using free is a free trial plus penalty so this would be a down so it so these can be used in in conjunction with one another so if someone uh doesn't take that that you know the a b close that i just mentioned you could say awesome if you're going to stay then you have to

put a card down because you want to be held accountable you have to work out this many times if you miss your workouts we're going to charge you for the missed workouts and you have to attend the you know a feedback session and a transformation picture session and a nutrition session right if you know show any of those it's 50 bucks and so they have a huge motivator to actually consume your product or service so the likely they convert on the backend is significantly higher right that's the point and so that way at least your

trials become more qualified trials they're more invested and it's a really easy close to close someone on on a free trial if you can't close free trials then you have other issues okay um the fourth one is a free with deposit so this is a classic um the old six-week challenge that we ran for a very very very long time was probably the most popular fitness offer in the last decade um was a free six-week challenge obviously you always have to be compliant put stipulations for any types of things things on your advertisements um states

differ etc but that's where if someone hits a goal they do an outcome they can get their money back or get it credited towards something so it's like it's free with a contingency so it's like you put x dollars down uh if you do x y and z you can either get it back or you can get it towards program whatever right that's kind of the pitch there so it's a free with deposit so free with stipulations all right the uh the the fifth uh way of doing free is free forever and this is a

really compelling offer so this is where you have to really know how mousetrap works right so if you have multiple ways of monetizing a customer i could say for example i will train you for free for legitimate free like i will give you free training straight up your membership's true forever right as long as you just do the things that i tell you to do which may include buying supplements from us that's part of the program now um a good friend of mine owned a uh a chain of shadow franchise of uh weight loss clinics

and they made only like five percent of their revenue on service and they made 95 of their revenue on supplements and so people would come in and they'd essentially give the service away for free uh but they were required to use the supplements as a part of it so that's a free 100 free but you're you're you're bolting on a different revenue stream so that's where you can offer multiple services and monetize a different service than the one you're giving away for free right um and especially if you have something that's uh high margin uh

you can give that away for free if something's high margin and low value uh it's an easy thing that you can give away for free and then give something else away that's higher perceived value or make them buy something that's higher perceived value people tend to appreciate physical products more than they appreciate service or value service all right so that's kind of a free forever model which is really understanding that how you can monetize the second need the next thing they're gonna need after the first thing all right the sixth way is a a free

giveaway uh this is a classic you know you run you run a uh uh a free giveaway let's say meals for a month right i'll pay for all your food for a month i'll pay for your whatever right um and so you get tons of people are gonna opt in for that and you say like well we you know we picked one person but if you still undo the program it's this and we'll give you a discount since you you know signed up or you know sign up to be a part of it so the

thing is is when you have this people are still raising their hand to demonstrate they have a need for the service right and so if you have a giveaway that's perceived as high value and something that's related to the core offer that you have you instantly get tons of very cheap uh leads that are qualified for the service all right um a good friend of mine just started running a 25 000 transformation challenge and he's getting people to buy without even doing phone calls straight on the page because it's a 25 000 challenge and it's

like 300 bucks to sign up online so people are seeing the huge giveaway and they're choosing to participate to have the have the have the chance to earn that right now obviously with giveaways and things like that you always have to make sure you're not gambling all that kind of stuff um but i'm just talking big high-level marketing all right um the next and probably last one of these seven um there's probably more these are just the ones i thought off the top of my head um is a free with free with commitment so not

contingency but commitment so that's where you say uh your first 28 days or your first month is free as long as you commit to a nine-month contract or you commit to a whatever right and so when you do that you can still market free um you still you'd have to again put the contingencies in you want to be a compliant advertiser um but that way you can still give people free on the front end it makes the sale very easy puts a little bit more of the onus on the fulfillment but if you get the

commitment which you should then you will be able to convert a very high percentage of people on the front end and typically at higher average contract values because they're not confirming that price on the front end uh it's more like perceived value on the back end and they're kind of sort of going to see how it goes right now that being said during the process you still need to sell the people even if you're not closing them so even if someone has their caller file and it's planning on rebuilding you still need to sell them

on staying so just a big mistake that i see happen all the time is that when people give trials and things like that they're not actually they just sell the trial rather than selling the continuity selling someone on trial is just selling them on trying it you have to still sell them again even if they're on you know auto bill or whatever because the thing is is you know 30 percent of people who go through are going to immediately call you up and say oh no i didn't mean to let that go through and then

you have chargebacks and all sorts of crap so you don't want that make sure they know they're going to get built and if it were me i'd probably only build the people that um i knew had been sold and had kind of at least verbally agreed to it we already have the contract but at least i know that they're in so um those are seven ways to make free offers to get lots of people in the door and make irresistible offers that will ultimately make you more money so learning how to monetize free is one

of the biggest tools in your skill set in your toolbox and if you don't know how to do it you will be a significant disadvantage because your competitors will be and they can acquire more customers at a cheaper price than you do and if they can monetize them in the ways that i just outlined and you just know the metrics you know what percentage convert what percentage stay with the average ticket is and that's why knowing the math is so important but if you know those metrics then you can mark it with reckless abandon because

you know what your ltv is um and you know that you can win based on those numbers so anyways i hope that was valuable for you uh the offer is absolutely king like if you get the offer right someone should be able to explain to someone else in like one sentence or two sentences what it is that the offer is if if you can't explain it like that then it is not clear enough to a prospect and if you get the offer right it will make you more money than you know what to do with

all right so anyways uh i hope you guys have an amazing tuesday uh keep rocking and rolling and i'll catch you guys soon like and comment if you found this valuable so the gods of the internet will favor this and show it to more people all right keeping awesome catch you soon bye [Music] you