Hormozi's $100M mistake

Hey Engineer,

We’ve all heard of $100M Offers right? Alex Hormozi’s offer building framework that took the business world by storm a couple years ago?

I’m a huge fan of it. Most useful business book ever (yes EVER), in my opinion.

BUT. Big but.

He missed something glaringly obvious.

The problem with $100M offers is that the decision isn’t as binary as Hormozi makes it seem.

A buying decision isn’t based on ‘value vs cost.’

$100M offers presumes the decision happens in a vacuum.

In reality, it’s value vs cost vs opportunity cost.

And opportunity cost adds a whole level of complication.

Let’s say you’re charging a client $1000.

And it’s abundantly clear you’ll deliver $10,000 in return.

By Hormozi logic, they would convert.

What that doesn’t take into account is that the prospect is also weighing you up against other options.

There are 101 other ways they could invest $1000.

They have to work out not only what the potential returns are, but also the likelihood of achieving them, for 100s of other options.

Working example:

Say I’m offering a gym membership for £83/month.

I’ve gone through the book, my value far outweighs the cost and it’s a ‘no brainer’.

The budding fitness fanatic still has a complicated decision to make.

It’s not just Gym or No Gym.

It’s this Gym vs:

• The £26 gym 10 mins away (which isn’t as good)

• The £240 gym round the corner (has a spa too)

• The flexible class membership app for £6/month + class cost

And also:

• Athletic greens at £79/month

• A Whoop band at £18/month

• Meal prep service for £50/week

• Strava premium at £6/month

• Freeletics at £15/month

I could go on.

There are 100s of options and 100s of factors to weigh up with each option.

So how do they make that decision?

They base it on believability of claims and connection with the business.

And who do you think someone is more likely to trust and connect with:

A. The salesperson they’ve just met 30 minutes ago

B. The person they’ve followed for 6 months sharing thought leadership content daily

Obviously B.

People are far more inclined to purchase from people they know, like and trust.

In fact, knowing, liking and trusting someone can shortcut that whole decision-making process entirely.

What Hormozi missed was the AUTHORITY of the offer-maker.

So how do we bias people’s decision towards our offer?

Build Brand, trust and authority.

YOU are the key to weighting their decision.

That’s why build your personal brand is the single best way to grow your business online in 2024.

What do you think?

Speak soon,

Sam

ps. If you want to become the authority in your industry, make more offers and have more of those offers accepted you should watch this free 24 minute training on how I make 6 figures from LinkedIn every year (without spamming my network)