Introduction

In his book, $100M Offers, Alex Hormozi shows you “how to make offers so good people will feel stupid saying no.”

The offer is the starting point of any conversation to initiate a transaction with a customer

Value – Create Your Offer

In Section III of $100M Offers, Alex Hormozi shows you how to make something that good people feel stupid saying no to and are lined up to buy.

The Value Equation

In Chapter 6 of $100M Offers, Alex Hormozi introduces the value equation. Most entrepreneurs think that charging a lot is wrong, but you should “charge as much money for your products or services as humanly possible.” However, never charge more than what they are worth. You must understand the details of value to charge the most for your goods and services. Further, you should price them much more than the cost of fulfillment. The Value Equation quantifies the four variables that create the value for any offer:

Value is based on the perception of reality

Thus, your prospect must perceive the first two factors increasing and the second two factors decreasing to perceive value in their mind:

The Dream Outcome (Goal: Increase)

“the expression of the feelings and experiences the prospect has envisioned in their mind; the gap between their current reality and their dreams”

Perceived Likelihood of Achievement (Goal: Increase)

the probability that the purchase will work and achieve the result that the prospect is looking for

Perceived Time Delay Between Start and Achievement (Goal: Decrease)

“the time between a client buying and receiving the promised benefit;” this driver consists of long-term outcome and short-term experience

Perceived Effort & Sacrifice (Goal: Decrease)

“the ancillary costs or other costs accrued” of effort and sacrifice; supports why “done for you services” are almost always more expensive than “do-it-yourself”

About The Author
Josh Brock - Website Guru

I've been helping small business owners transform their lives for half a decade by building their online presence and brand. Allowing them to go to work excited about helping those in their community

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