https://www.youtube.com/watch?v=F_C_0C8rN68&t=1s&ab_channel=RyanDanielMoran

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good evening friends and neighbors
and hormozees 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
um 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

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it wouldn't hurt you and god is like all
right fine
and then alex just like it just ha 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 um
you have one and a half percent body fat
what's it like 12-inch personality
um it's it's uh it's great being friends
with you
uh you always make me feel great about
myself
well give it a minute um
forever 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

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listens to alex
hey everybody if you if you are watching
live please say hello in the comments so
we can say hey
oh what's up javier good to see you hey
sarah hey felix
hey brandon hey suffian's back what's up
dude hey brandon
good to see all of you paulina is
hanging out in the green room brian's
hanging out in the green room
jason's hanging out in the green room
good to see all of you
um hey clement what's up buddy hey he's
stuck in canada hanging out with us
uh dane's here felix is here hey toby
what's going on
hey dane hey tony uh we could be here
for a while
um because the the delay just caught up
and now they're pouring in so we're just
gonna go ahead and jump in guys
i have um i have a total blatant pitch
at ask tonight and it's gonna cost you
ladies and gentlemen let me
let me tell you alex we all know the
secret reason that you really put out a

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ton of content on the internet
and it's because you need to get rich
selling 99 books
right and i know you get like 35 of that
from kindle so you're like
i know that's the real selfish reason
why you're doing all this
so so look the man's got to eat
he's got to feed these biceps and we
have a book it costs a whole 99 cents
and you're gonna have to go all the way
to amazon to get it but this is what i'm
gonna ask all of you to do but
by the end of tonight in fact you should
start doing it now
you should go to amazon.com
search for alex hormozy
hit the buy button and review the book
once you've read it
like review the book we all know how
this works you are
most of you are amazon sellers you're
going to leave a review
a good one for alex's book because
i can guarantee you that it's going to
be the best book that you read all year
best book i've read in a decade so

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if unless you're 10 times better than me
it's gonna be the best book you read
all year so alex i've told you this
privately but but the thing that i
admire about you and
and the thing that is so impressive
about
the fact that you have well your total
your total revenue is like 100 million
dollars on your main businesses
you have uh businesses that give you
ten percent of top line just to be an
advisor
um and this book is gonna go nuts
they all have the thing 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

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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
but 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 um
if i'm looking at a business the first
thing that we 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 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 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 uh in a real way than even

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changing things about the product itself
would you would you comment a little bit
what do you mean that the perception can
be
more valuable so i'll give you 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 guys you're gonna get half
the time
of the 10 000 rep guy compared to the
one 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

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i have an old mentor who used to
describe this as the magician versus the
mule
you know 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 over emphasize 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

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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
um 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 i'd say the median client
would be zero right um
and so for us it's actually a kpi that
we track within the business and that's
one of the kpis that we that we drive
towards which is like how can we get

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the average revenue collected you know
per client
up within the first 14 days the first 30
days for 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
it's like the more money that we make
other people the more money we make
period um
and that like and 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
you say in the in just the description
of the book
is that you are out earning you know the
ceos of publicly traded companies
without having upsell flows that were
dialed in without
oh my goodness without sending emails to
your list

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you know with like with 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 in like the
entrepreneurial world
you're most famous in like the funnel
hacking
uh 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 think 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 this 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

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and so it's like i might only be able to
move one or two rocks forward this year
you know 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 because people are like
remove 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 order
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 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

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and i and you're saying i mean like or
if you're just really good to 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 pre-pay the entire thing
within the first 30 days
they choose they don't have to um 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 pre-pay
the entire thing you know within the
first month when they have the option
not to
and i think that's just it just speaks
to like how can we 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
what
does it look like day 60 what does that
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 still wildly profitable

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and so i mean one of the claims in the
book that you heard is that
you know we have a 36 36-1 lifetime
return on advertising and right now it's
actually a little higher than that
um and so for every dollar we spend we
get you know almost 40 dollars back
and that's been over my entire career so
that's not like this one campaign that
we talked about because i like sent a dm
to someone and
you know like us and i made a four
thousand dollar sale that's every dollar
that we spent and so
i think it's because we focus on the
back end and
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
um how can we how can we do this so that
we can decrease the effort and sacrifice
on their behalf
so the the stress that they have to go
through what are the what are the hoops
that they normally would have to jump
through how many of those hoops can we
jump through ourselves
um and so and by kind of reversing those
you know 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

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that's right that's right and i i want
to point out something
alex what does before one of your target
clients meets you
what is their average income
uh 2943
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 thirty six thousand dollars per
year
alex what is your least expensive
product
cost well 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 the tripwire
what is his what is his lowest
least expensive product cost i want to

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see
tell me our average client earns
36 000. all right we got
a thousand dollars ten thousand dollars
nine dollars forty seven dollars a free
book
ninety nine dollars a dollar nine
ninety nine oh
four thousand all right alex
what what is your front end offer cost
is 20. 20.
20 20 grand yeah 20 000.
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 ca i can't sell my
candle for 40 bucks
you know alex's client

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makes 36 000 his lowest price product
cost 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
wait it's 42 000 42 000 yeah
and you have quite the take rate
if i remember correctly yeah i think we
have um
i think we're at sixty percent it's that
sixty percent
yeah and uh 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 are you guys
seeing this
the the the entire structure of how alex
thinks

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is how do we remove all of the barriers
for the client
for the customer to get the results 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
the one guy who was selling a high
ticket course was selling it for five
thousand dollars
that was like the high leader at the
time and most guys were selling 500
a month uh facebook ads like done for
you stuff
for like four gym owners yeah and like
you just you just came in totally owned
the marketplace and then a bunch of
people copied you and
i i like the story of

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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 um and you're
you're winning because your clients are
getting results
more than anything else that my friends
is how you put together a 100 million
dollar 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 uh
alex i was hoping
we could spend a minute or two talking
about the
ethics of charging twenty thousand
dollars
to someone who makes 36 grand because
you
lay this out and i love the story you
tell about your dad
um would you tell that story and explain

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how you think about
going high ticket yeah so
um i guess i can try and tell it half as
well as i do in the book when i
had lots of practice and got the words
right but um
i had just posted a picture of our gym
lords event this is pre-covered
um and i think we had 800 sorry 700-ish
people in attendance
um and i posted it and i sent a picture
to my dad or he messaged me i can't
remember what happened
um and he was like hey i thought this
was supposed to be the meeting of like
your
your really highest level group um
which is the 42 000 a year group and uh
i was like
yeah it is uh and all of a sudden he uh
like calls me up and he's extremely
concerned he's like
do they know that you're 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
he's and then he asked is that legal um
and
to which i responded yes it's legal um

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and he was like well
i and i could tell that there was this
pause of like major concern
and i was like all right if i could make
you 239 thousand dollars extra this year
pops
i was like would you pay me 42 000 if
you knew be honest i have a doubt that
you would do that
like would you pay me 42 000 so he's
like well what would i have
to do i was like you'd have to work 15
hours a week for it
it was like okay um well how long would
it take and i was like it would take 11
months to make the entire
entire money back he's like okay would i
have to pay for it up front
and i was like no you could pay for it
as you started making it
he was like then yeah
i would do it 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
a lot of people have talked about our
numbers out of context um and explained
our success without actually being in
any way associated with our company
um as it's the funnel it's the marketing
it's the whatever
client that we work with makes an extra
239 000 top line revenue

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they on average triple their profit it's
3.1 x their profit they take their
take-home income including our fees net
of our fees
from 29.50 a month to 8 900
a month and so you're taking some from
36 thousand dollars a year to 100
a year on average meaning half the
people make more money than that
and so yes we charge forty two thousand
dollars a year in order to help someone
go from
thirty six thousand dollars to a hundred
thousand dollars on average
um 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 four
thousand times so it's very unlikely
that it's been
a chance at this point um to you know
hit the
however money it's it's possible it's
hard it's possible
i suppose it's not it's not probable and
so that that's kind of the

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the overarching scheme which is like
everyone always looks 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 conscious
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 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 yeah
again alex is speaking for himself not
all of us have consciousness here i am a
johnson and johnson schill

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00:23:00.000 --> 00:24:00.000
this live is brought to you by johnson
and johnson they sponsored this
uh for me to shell out everybody getting
the vaccine
so not not everybody has a conscience i
don't
um 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 um
would you speak a little bit to that
so i've always been a premium service
guy so even when i owned my chain gyms
way back in the day before i switched to
doing what we do now and now we have our
portfolio companies
um and it's because like i want to be
because i want yourself from a place of
certainty i want to stop 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

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that i tell them to eat i'm not certain
that someone can go to the gym
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
going to get a result is lying to
themselves if there's anything that the
client has to do and most people
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 going to
learn spanish i can be the best spanish
teacher in the world right it's going to
happen
and so the question is spanish to scam
or are there bad students
they're also bad teachers right and so
the the there's we need to build a wall
alex because spanish is a scam
and so i'll i'll talk because i talk at
length about price in the first
third of the book um 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

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more valuable
so they did a blind taste test with
three wines a cheap wine a middle one 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
expense or whatever right but what ended
up being the truth is that he 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
things people will become more convicted
the more they 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

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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 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 it 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 absolutely correct easiest ones
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
yeah i just don't want annoying readers

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at all um the flip side of this
is like 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
you have less profit left over to
provide a better product
etc right and so it's a virtuous or
vicious cycle of price
and you if we are claiming to be ethical
individuals and we are claiming that
we're going to create a product that's
going to 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 this 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 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 l my favorite thing about all

29
00:28:00.000 --> 00:29:00.000
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 in the
success
and the thing that shifted from 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

30
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because you naturally
out sell out market and charge higher
prices
get higher profits can more can have
more convicted sales people 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 and would you would you talk a
little bit about those levers the more
advertising more sales people
yeah when i looked back at my um when i
looked back at like business issues over
time that have like
consistently uh concurred with with
making more money

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00:30:00.000 --> 00:31:00.000
uh hiring more sales people 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 are these have just been
recurring themes that have happened
throughout our business career and um
and so we we try and do them you know as
i don't say as frequently as possible
well especially i mean sales team and
something like that for sure as
frequently as we can um but yeah those
are i mean those
that's that's how we've done it so alex
there there's a question that has come
up
you know we had we posted the podcast
that we did together uh
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 method 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

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want to have a lot of volume
and uh and it tends to reward people
have
the lowest price and so in the
e-commerce world
we're definitely skewed to
to the walmart model yeah and 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 dollar 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
um 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'll like i can answer it
that way but if i don't have this
let's go let's okay you're talking to

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00:32:00.000 --> 00:33:00.000
you're talking to
an e-commerce entrepreneur who sells a
million dollars a year across three to
four products
on amazon exclusively okay they're
getting squeezed by
price wars and competing on reviews how
do you reverse that trend with that
person
[Music]
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 it's a cube because there's six
sides to it um but this is like when i'm
thinking about ideating for a product
uh 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 and membership or
whatever that i was trying to sell
if i were trying to sell that membership

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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
a single offer right well 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 i 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 right
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

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00:34:00.000 --> 00:35:00.000
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
alex i'm sorry to interrupt you but how
many of you just had the biggest
braingasm of your life
like you can see where this is going
you're like holy [ __ ]
i thought i 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 you just got a
business boner
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
that 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 away
yes we did proud sponsor oh

36
00:35:00.000 --> 00:36:00.000
and the response am i on switch and and
johnson and johnson and johnson
yeah so the delivery cube is is
basically what i walk through mentally
to think
um how am i gonna deliver the thing so
first is what's the outcome all right
the outcome is what are the other
problems they're answering problems that
this customer is going to have or
experience
before or after they use the product
you're good okay okay um what are the
things we're gonna have
immediately before and immediately after
they use my product
and there's the problems they're going
to be associated with easier things
and how can i solve that problem before
and after right
now that i've identified what the
problems are they're going to be
associated with 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

37
00:36:00.000 --> 00:37:00.000
fat burner right what 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 uh lick
your fingers lunches a 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 guide 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 product
for no added cost
and then sell that cost that sell that
product at a premium because of the
ancillary values we've stacked onto it
now that's just one example of of the
six on the delivery cube
it would probably take more time to get
through it but like each of these things
are layers of value that you can look at
like
you can also add premium support
on text as a way that you can support

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00:37:00.000 --> 00:38:00.000
customers that no one else has
right 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
wonderful oops and then speed and
convenience being another one of the
layers that you can add onto 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
[ __ ]
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

39
00:38:00.000 --> 00:39:00.000
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 break terms of
service in order to get
reviews you don't need to you're too
busy winning
you're too busy waiting 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

40
00:39:00.000 --> 00:40:00.000
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 uh 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 an 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

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want to run three
three fundamental tests for everyone
that i've gotten good feedback on
the first is if you were selling your
product for a hundred thousand dollars
what would you include to make that
product
worth a hundred thousand dollars 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 e-book 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
oh it's 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 a hundred
thousand dollar thing for a dream
outcome
versus a five dollar thing for a dream
outcome what would i deliver at a
hundred thousand
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

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00:41:00.000 --> 00:42:00.000
what would you have to build or do to
get them there
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 it's a guarantee
when you 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
that one purchase that is what kicks off
your business i
love that question
i love that question because i think if
you think if we ask the right questions
we get much better answers a lot of
people 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

43
00:42:00.000 --> 00:43:00.000
it's like well even that question maybe
it's been overly hurt so it's like what
if you only had one [ __ ] customer
sorry
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 going to refer it's like what if we
only had one shot
one opportunity it's everything we've
ever wanted
it's our moment
[Laughter]
we can capture that five-star review oh
would you let it slip oh
hey alex the video the camera's doing
that thing camera's doing that thing
alex am i not here i cannot not you alex
you're not the problem now our camera
battery died so i'm just gonna
i'm i'm making faces
come on in three two
one alex yeah not you alex
sorry that's gonna be annoying that is
hold on
i'm back right no it's not back i'm just

44
00:43:00.000 --> 00:44:00.000
making me look stupid in the meantime
yeah and then get rid of this angle
angle you can see
you can i'm using this it's over here
this is embarrassing
are we back over here hey we're back oh
yeah that's embarrassing we
i like how our our live viewers actually
went up during that time
we took ryan off screen and our
viewership went way up
grew like by ten percent
[Laughter]
so alex that question of if i could if i
only had one purchase
that forces you to think about
a word of like word of mouth referrals
like it
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 in
the offer
i believe in doing the unscalable first

45
00:44:00.000 --> 00:45:00.000
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 [ __ ] clients
that's right like what you're doing
right now is ultimately scalable you're
doing nothing
so like why don't we what just because
this might be useful from a perspective
standpoint
is that like before i started gym launch
which you know everyone and their mother
tried to
create some sort of coaching company
because russell talks about how it works
that we were hitting yeah
for two years and this is after i had a
chain of gyms
of my own i had six for two years laila
and i flew around the country living in
motels
and turned around 33 gyms we did 21 to
24 days on site
we would sell on average 100 new members
when layla and i went we'd sell on
average 190 new members
in 21 days and so before we made a

46
00:45:00.000 --> 00:46:00.000
product
about like how to do this
my my solution people were like well
what are you gonna do fly out to your
customers i was like
we flew out to every one of my customers
for two years to figure out everything
that they were possibly struggling with
and then turned every aspect of their
business around and so
then when we made the product it solved
all of the problems because we spent two
years
literally in the field making it and
it's just like it's hard to comprehend
because
you know we went from nothing to i think
our first
complete year we did 28 million in
revenue and 17 million in profit
when i was you know we were 28 years old
and so
i i bring this up because like it wasn't
the advertising you know i mean we spent
i think i looked it up i think we spent
four or five hundred thousand dollars in
advertising that year four hundred
thousand
yeah four or five hundred thousand
dollars in ads that's a good return
that's a good return
right yeah and so we get so much word of

47
00:46:00.000 --> 00:47:00.000
mouth
not as good as bitcoin though it's not
better than bitcoin
doge definitely uh
i think i think the further along that
layla and i have gotten in this in this
business game is like
virtually every path is unsustainable
except for the product
and so i think that the way that people
should
most if i'm thinking about this now i
think about it in terms of promotion
product and then people
and so and that's like in stages not all
at once now you need all three but which
one's emphasized so in the beginning you
need a little bit of promotion just so
you can
figure out what's wrong with your
product right that's the idea it's like
you shouldn't be blasting
right because then you're like you're
gonna literally just burn all the good
will you have because no one's gonna
refer anybody else to your product and
it sucks they've already had
a first bat experience so it's like all
right we need a little bit of promotion
just so we have enough flow that we can
fix this product and you keep fixing it
until the company can start growing on
that same level of promotion
at that point then you double down on
the product and then you can bring and
then you can guess the promotion that's

48
00:47:00.000 --> 00:48:00.000
called getting
product market fit but everyone right
now is like super excited about spending
100
a month on ads making 120 000 in sales
um
and it's a miserable existence because
at some point the the cpms do get too
expensive
if you have no back and you have no
referrals and so it's like it's just
this pure exercise in vanity that
doesn't make you any money and it's
honestly just a big waste of time but a
lot of people do it
because they get awards and they get
recognized and they take their
screenshots and it makes them feel good
and i get that but like i can tell you
having now been on the other side of
this
having good product just really makes
life a lot easier because your margins
are really good
you don't have to work nearly as hard on
the acquisition and
you can sleep pretty well at night
because you know the product you have is
good and i'll tell you one more benefit
that no one talks about
which is i think at a certain level you
start like the pressure as an
entrepreneur
continues to increase the the higher and
higher levels like
i'm sure ryan has comments on youtube
that are negative
it's like not me but the thing is is

49
00:48:00.000 --> 00:49:00.000
like if i were to say hey ryan
you have green hair he probably wouldn't
be bothered by that
because he has zero percent he knows
that there's zero percent truth in that
but all of a sudden if you start getting
hateful comments and it starts really
bugging you
it's because there's a certain degree a
lack of conviction that you know you
could do better
that's right then what happens you start
slowing yourself down it starts eating
up your conscious starts heating up your
free space
and i think the only way to get through
that is to really go through it
by improving the product to a degree
that you literally cannot think of
another way that it could be better
and that takes years not months and i
think that's the other piece it's like
dude i worked on my product all week
last week
that's cute okay
yeah that's amazing so what are you
gonna do for the next 51 weeks you know
and i think that just having that kind
of perspective shift would serve a lot
of people
i i have nothing to add except the fact
that the current comment on the screen
is about jarvis a company that alex and
i were literally talking about

50
00:49:00.000 --> 00:50:00.000
last week i'm dave hey dave harry man
uh we are we are fans of your work
because you
followed this process right of doubling
down on creating great product
and now like you have
do you have nine billion users now i
think
in eight in eight months eight months
nine billion users
you can't out market that that's the
thing it's like you can't do it and i'm
like david dave comes from the hardcore
direct response world i've i was
i was in you know in the hardcore direct
response world and
like you need to have basics of
marketing but far
less i think than most people think you
need
right and that's because the talking
heads don't actually have good product
and they're just really good marketers
and they say
you just need to have good marketing and
honestly i don't think it's malicious
that they just don't think they've ever
experienced what
having exceptional product looks like
but it is the only way
that you can have something that's
unbelievably sustainable and grows
virally like if you have net negative
trend which dave obviously does here

51
00:50:00.000 --> 00:51:00.000
with 25 000 active users
on the software in eight months but the
only way you can do that is if the
people who buy the product
tell other people and i think with the
more digital world that we have
like at a certain point everyone will
immediately know how good you are within
seconds
and so let's get ahead here's here's an
analogy that's coming to mind for me
who the people that know the best pickup
lines
the dudes that dive deep into pickup and
study that world
are the most insecure dudes and
now sometimes they can use that world as
a way to gain
confidence and improve themselves that
does happen
but for the most part most of the guys
who go deep into like the
that world of pickup are compensating
for a lack of confidence
for uh where they are flawed and
become masters at manipulation and
persuasion
to cover up for a feeling of lack
marketers are the same way

52
00:51:00.000 --> 00:52:00.000
marketers become deeply involved with
persuasion
and sales and sometimes copy or having
the best
funnel or whatever it is to
overcompensate for the fact that their
product sucks
that their business sucks but when you
flip the whole thing when the dude has
absolute confidence because
he just chooses to have it he doesn't
need to have
the best pickup line in order for every
girl
to prefer him and when you have the best
product you don't need to sell it
that hard because you have the
conviction that what you
have is the best thing for the customer
people pick up on that
we are way smarter as human beings than
we think we are
we are not nearly as persuaded by the
words on a page or the words
that you say as people think we are
we are persuaded by picking up on the
emotions and the certainty
that you are projecting and how you

53
00:52:00.000 --> 00:53:00.000
really feel about the experience that
the person is about to have so the most
profitable thing that you can do is for
you to operate from a place of certainty
knowing that your product your business
and your service
is actually the best thing for that
customer and that requires you to take
an honest look in the mirror and say
is my product and my business the best
thing for the customer
and when the answer is yes you have
hundred million dollar businesses
that is the foundation that is the
mindset
that is the the place from which alex
builds
his hundred million dollar empires and
that's what he documents inside of 100
million
offers if you are still here
there's over 150 of you on here
and you have not yet gone to amazon.com
and bought 100 million dollar offers
with the intent of leaving a review
you are hereby booted off of this life

54
00:53:00.000 --> 00:54:00.000
we are not friends we
we we do not do business together
you cannot come to my house for whiskey
[Music]
you are not invited if you did go and
buy the book
if you have done it put it in the
comments right now
and let me know and i'll take it as a
personal favor
sean bosser says buy ten they make great
gifts
what's that i said they're wonderful
gifts now while pete while people are
saying
there we go mitchell says bought the
book stop drinking
while people are putting that there's a
excellent
question from clement juan isn't this
the antithesis
of an mvp that's a fantastic question
alex how would you hand how would you
answer that
so if you heard what i was saying
earlier like tactically it's i want to
get
a little bit of promotion so that i can
get some flow
so that i can keep fixing the product

55
00:54:00.000 --> 00:55:00.000
but what i think what ends up happening
though is that people
mistake that initial flow and say i'm
making a
sale i should ramp this
that's what it is it's the first dollar
comes across and they see that first
dollars
as the sign or the indication that they
now have a successful business when in
reality
they have they have signaled that they
know how to market a small amount
and sell a product not how do i get how
do i build a business out of a little
brand
and how do i rave about and remark about
and so
we create flow we monetize flow we get
the product to the point where it can
spin on its own and then you can jack it
now alex this is an important this this
was an important point
that was not in the advanced copy that
you gave me in fact
um alex would you hand me that box right
over there i actually want to hold
something up
you gave you well i'm gonna come back to
this point you gave me
an advance this is my advanced copy look
at this amazing packaging
it came in i got it from a place called

56
00:55:00.000 --> 00:56:00.000
the max i printed out at the max oh
over here this is my advanced copy my
weathered advanced copy x so i back in
2006
i bought my first ever ebook it was
called the rich
jerk and i was 18 years old and i was
like that's what i want to be when i
grew up i want to be a rich jerk
and uh i went to the library printed it
out
and i sat on my bed and i
laid through it and i took furious notes
and i just had this thought of if i read
this book this is going to change my
life if i take this seriously it's going
to change my life
and that was the first book i ever
bought on internet marketing
which you know built the foundation for
my first six-figure business
i learned about affiliate marketing seo
taking on clients email copywriting
uh putting together products that was
the foundation for everything
i have not had that feeling again until
i went to the max
and printed out 100 million dollar

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00:56:00.000 --> 00:57:00.000
offers and this has
gobs and gobs of notes about my business
i wanted to do with this and which is
why i
say the second chapter of my career
started when i read
alex's book because it was the same
experience that i had it felt like the
new start it was like
i get it now like i get this now
and one of the biggest shifts happened
after i read the advanced copy because
you told me about the section that you
added
which was about flow before friction
and this was like this was one of those
moments where i had to step away and get
another cigarette by the way i've never
smoked my entire life i should probably
stop using that analogy
i should just that should stop they
should just start stick to whiskey
but please explain this concept because
it's such a shift for so many people the
flow before friction
so i i pretty much come from the
perspective of give
everything you possibly can away for
free um

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00:57:00.000 --> 00:58:00.000
so that you can generate demand right
like that's the that's fundamentally the
idea is like how can we just generate
demand how can we generate interest how
can we gather attention and
it starts by just giving a lot away and
that's where everyone's like that's not
scalable i could never
bob like i can't give any money doing
i'm like right that's like
everyone just assumes that the entire
business must be done and profitable at
scale from day one which it doesn't work
that way there's
there's steps in their sequence and so
the idea is we generate flow
first and then once i have way more flow
than i can possibly handle
then i start adding these levels of
friction
to it to increase the quality of the
prospects and so i think fundamentally
marketing if
we think about what it is from a big
perspective is we're shifting the demand
curve in our favor
by adding artificially inflating the
attention that we're that we're putting
on our products and making them more
persuasive and adding bonuses all the
other things we do
right and through that
we can then add the perfect amount
to get the output on the other side or
the throughput of the system
to be a qualified lead or a sale

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00:58:00.000 --> 00:59:00.000
depending on you know whatever business
that you're running
and so for you know a mass consumer
products company it might just be
ad shopping shop ad purchase page right
for for a for a private equity company
it might be
cold email phone call phone call phone
call
diligence you
and then escrow and then a signed
contract right and so
the type of sale will depend typically
the higher the price the higher the
friction
right and the the bigger the front end
has to be in order to get that but
that's justified by the higher price of
the ticket
and so i think what most people don't
know how to do is like there's these big
pools of attention
and then there's these sales that you
want to make and so the best marketers
know the right amount of friction to
apply
and i think the experience of the
marketer says this feels like a two-step
this feels like a three-step this feels
like a one-step and they just can do
that off of the fact that they have
experience
but fundamentally the way i do if i'm
approaching a new market is i want all

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00:59:00.000 --> 01:00:00.000
the flow
and then i will add one layer and see
how we do and then i'll add two layers
and then see how we do
until we get to a form like that's just
right
so let me explain how we just use this
in in our business at capitalism.com
so i spent a few days with alex last
week and he talked about this exact
concept
flow before friction and i realized i've
been guilty of this my entire career of
like
build the perfect funnel and launch it
rather than just like get momentum
and then improve right oh my goodness i
i can't believe i made this mistake for
15 years my career
so we went back and we've been we've
been talking about doing a book funnel
for my book 12 months to 1 million for
like
you know since may 5th of last year when
it launched and we've just
never gotten it off the ground and when
it when we have it it's like ah it's not
profitable we'll just shut it down
so we just put together the simplest
page possible
and put together like the simplest bonus

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01:00:00.000 --> 01:01:00.000
package possible
put a name your own price option on
there and we we put
three pricing options on there one of
them being a dollar
just pick whatever pick one of these
three prices
and let's see what happens put up a few
ads and now we're going okay now we've
got blood in the door
like coming like we've got momentum
coming in
i don't know if blood in the door is a
real term but you're all still tracking
with me
we'll go with it there's lots of blood
flowing in under the door and
we then said all right great let's look
at the numbers
and the numbers like we lose a little
bit of money to acquire customers
and it's not nearly as bad as we thought
and now we're getting regular sales and
customers add one
upsell oh we're profitable way turn up
the ad spend
and now we've got lots of flow adding
friction
and it's that simple idea of let's just
get
sales or leads or opt-ins or views
and then we add in the layer of
complexity and that's how we build the

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01:01:00.000 --> 01:02:00.000
machine
that i don't know why i have not
thought of that concept since i became a
business owner
but that idea it's like oh yeah lay
layer one first
then we will lay layer two and
then you end up moving incredibly fast
alex every business that you start
or every personal brand you start seems
to grow
incredibly quickly is it because you
focus
on flow is it all like the 100 million
dollar model
like all-encompassing or is there like
one
primary lever that is the reason you
seem to move so quickly
i don't know good job everybody thank
you for being here
by 100 million offers
[Laughter]

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01:02:00.000 --> 01:03:00.000
i mean we try to make the free stuff way
better than everyone else's paid stuff
and that's that's been i mean i feel
like
there's a lot of truths that people say
but they don't feel
you know what i mean and so they say
like make your free stuff better than
other people's paid stuff but they don't
they make it look like everyone else's
content but it's like what if you
actually made it better than everyone
else's paid stuff
and a lot of times i think people notice
the intention or the spirit behind
what you're what you're creating if
anyone reads the book they can probably
tell that i could package it into a
course you know what i mean and i put a
course with the book
um and you can probably tell that it's
not a webinar that just got transcribed
and put into a book so that i could
sell a thing which is not that's not how
it is right
and so the idea for me is to create such
a
high price to value discrepancy that i
engender goodwill
um which is candidly all i want right
now at this point in my career
um and that's that's the whole point

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01:03:00.000 --> 01:04:00.000
that's it and the
there's six pages called the delicate
dance of desire which is in the book
which is the last thing i added to the
book before it
um it got published and um and it kind
of talks
this concept a lot which is like we are
artificially stimulating demand with our
marketing
right and so you can also control your
supply
to increase prices by increasing
scarcity right if ryan for example
sold one hour per month and it was open
on the calendar and it was bidding your
auction system
right or he only sold one then he would
probably be able to fetch a very good
price for it
if he sold 10 you probably wouldn't be
able to get nearly as good of a price
right and so the idea is how can we find
the delicate dance between supply and
demand
that best serves us as business owners
and best serves our clients
and so i give i i say this to say
um my goal is always to create far more
demand
than i have supply and to not try and
immediately meet
the demand but always stay just behind
it and in so doing
create far more pricing power uh for my

65
01:04:00.000 --> 01:05:00.000
products far more profit
and continue to keep a little bit of
demand in that
in that pool that's pent up right and so
i think i use the analogy like
if you sleep with your partner every
single day your desire will inherently
be lower than somebody who hasn't slept
with their partner in a week
right and so i don't want the uh
the aroused customer i want the ravenous
customer
and so the idea is we only want things
that we cannot have
right desire is literally the app is the
wanting of something you do not have is
so
as soon as you have it you are satisfied
and if we are saying that we are demand
generators then we are generators of
desire or better stated we're channelers
of the desire that already exists
and so if we're going to make stuff
right
we're going to make something then we
want to make it so good
that that demand becomes so so great
and the supply's so small right that the
profits that we get are breathtaking

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01:05:00.000 --> 01:06:00.000
and we keep it there and then maybe next
month we do this much but now because of
how good the product was
and the word of mouth that happened on
the back end that pool of demand doubled
right and then we opened up a little bit
more and then that is how you never go
hungry because you always have every
time you open the door it sells out and
it sells at the price that you wanted to
sell at
so that's michael and i think that's why
we've been able to have
tremendous uptick on the on the products
and things that we've sold is that we
try and
try and work in that environment you
tell a story in the book
about being at arnold's charity event
where there was a lot of demand more
demand than there was supply
and the person that you met there said
when there's that much demand
you have the capacity or you create even
more scarcity
yeah explain to me why that's the case
so this guy was
like an eastern block guy came here
definitely been through rough times
big dude and he sold ultra high-end
jewelry

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01:06:00.000 --> 01:07:00.000
so i think the pieces we're talking
about between you know 1 million 5
million 10 million
pieces of like status they weren't even
jewelry at that point right
and he'd figured out a way to do this
and this guy was a master and he told
them at the arnold
um the fundraiser at arnold's house they
had more demand for tickets from the
from the year prior they had sold 200
tickets i think at
at 10 grand and instead
he told or it might have been five grand
and instead he told them to cut it from
200 to 100 and raise the price to 25 000
a ticket and he's like and the charity
fundraiser was like dude i i don't know
about this like what if we don't sell
any of the tickets he was like
like [ __ ] trust me and so the demand
went up and they cut the supply and they
jacked the price
and he was like we made more in selling
tickets than we ever have and we haven't
even started the event yet
and so they had made more just selling
tickets than from the auction than they
had the year before
because he had learned how to master
supply and demand
and so i remember i remember seeing him
do that and it was such like a pivotal

68
01:07:00.000 --> 01:08:00.000
moment for me that's why i tell the
story in the book is that
i truly think that the strongest the
single strongest factor
in all of pricing is supply and demand
and i think a lot of people don't take
into
into account and that you can you can
manipulate it
and that's fundamentally what we're
supposed to be doing here we're
manipulators of demand when we're
marketing
we're stimulating we're artificially
inflating it so that we can tell what we
want to sell
right and so if we can play that dance
then we can get the outcome that we want
and i think that i talk about that stuff
in the book and i think uh
when i was there it was it was it was uh
impactful
you know it it's it's interesting
because there's still questions coming
in on the chat
about how this applies to e-commerce and
it's this this idea of where you
take the sale is the oh it's like where
your business
ends and because like 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

69
01:08:00.000 --> 01:09:00.000
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 taking
the conversation off of that primary
sales channel
yeah 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

70
01:09:00.000 --> 01:10:00.000
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 it's just so fun
um alex you're doing like you're getting
like
thousands of subs a day on your youtube
channel
um i love and hate you for it

71
01:10:00.000 --> 01:11:00.000
because you're you are the you're the
one you're the one youtube business
channel is better than me
the only one the only one garyvee and
garyvee's got nothing on me but but but
alex hormozy is better than me
and so 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
awesome so yeah i mean layla and i uh we
have a portfolio companies
under the umbrella acquisition.com um
and so
the book is kind of the launch of that
uh and so
you know we take companies between three
and 15 ish million

72
01:11:00.000 --> 01:12:00.000
um 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
um i've i've wanted to take on you know
one company issue 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 um
and we've turned down probably 150
companies and it's really just
like this is just a way for us to um
help 99 of people for free and
for the one percent 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
you know to uh participate in the growth
with them we can invest alongside and um
and crush it together and so that's kind
of the idea is like is there a way that
we could
create um a business model where we
could just help everyone
um and still have the people where we
can who need a more customized
like you know when you're going from

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01:12:00.000 --> 01:13:00.000
five to five you know 50 million like
it's like buy my course on
it doesn't really it doesn't really you
know lend itself to that type of
solution and so it's like okay well how
do i work with the people that i want to
work with
and then how can i give everyone else
what they normally are paying
five thousand ten thousand twenty
thousand dollars for and give it for
free and i can do it from the
perspective of someone who's not made
their money selling
a market but actually market yeah
the example i'm thinking of i'm
comparing you to taylor swift
for 99 of people taylor swift music is
free
you can you can get it actually she
might not be on spotify but just go with
me
yeah all the music's free he listens 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 five to fifty

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01:13:00.000 --> 01:14:00.000
i freaking love this the business this
is the business taylor swift is that
with the
headlines you are the taylor swift of
the online business alex
uh alex i am proud to call you my friend
um i am thankful for your friendship and
i
told i told somebody i'm so glad
i was friends with you before you write
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 friend of friends with uh
with a guy named dan who had won the tv
show big brother
and i don't want i don't watch big
brother but after i became friends with
dan
i was like oh that's so cool like i'm
gonna go back and watch your seasons
turns out he was the greatest big
brother player of all time

75
01:14:00.000 --> 01:15:00.000
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 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
i like i can't like i can't believe this
you know so like my daughter even likes
this guy
she doesn't like anybody
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 uh my friends who are
watching there's still
over 150 of you watching go
on amazon buy this book
it's called 100 million dollar offers

76
01:15:00.000 --> 01:16:00.000
it's by alex or muzzy
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
well the book's a scam right if you
don't make a million dollars then
you know that's what it is right now
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 taken
my second favorite name you should have
called it 100 million 100 million
in 11 months so uh uh tim demaster says
i just bought a million copies did i do
it right
you did it perfectly thank you i'd say

77
01:16:00.000 --> 01:17:00.000
that's a good start
it's a good start just uh 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 counter-intuitive
um and so this is how we pick niches
that we think are going to to do well
and it's not complicated it's just
different
um and that is what unlocks the pricing
power the purchase power of price things
that we talked about charging what it's
worth getting a premium
um over delivering all that kind of
stuff uh the second kind of chunk of it
is the actual product itself which is
kind of the entire ideation
the 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 i mean and so
um that's that's where we talk about the
value equation we talk about how we can
solve problems
the six different uh parts of the cube
in terms of delivering
uh on the product and then the third

78
01:17:00.000 --> 01:18:00.000
main section is what we call
or what i call enhancers and so that's
the the bonuses
that's the scarcity that's the urgency
and fun
fun fun fact for everyone most people
conflate the two like 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 could have a
scarcity applied to a guarantee
like there's different ways you can
combine these things um 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 like 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
um and so i talk about the different
guarantees the pros and cons i've used
all of the guarantees in that book
um and i pulled out my 13 favorite that
were the highest converting for us
um so i have those in there and then um
and then finally one of one of the
sections i think that's underrated is
is just naming uh so like how do i go
about naming uh promotion or how do i go

79
01:18:00.000 --> 01:19:00.000
about naming a product and it's more
about promotions
it's kind of at least how the the naming
section is set up
um but it's like more about promotions
and bonuses is how to name those things
um
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 three or four x
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 name
because i thought it was an important
component to uh to to wrap the whole
journey up so that's the that's the book
in a nutshell
um i think that's why we've had such a
high return on advertising
um it wasn't you know 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 um
that people can't help but line up and
buy it
that's the that's the goal and let me

80
01:19:00.000 --> 01:20:00.000
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

81
01:20:00.000 --> 01:21:00.000
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 gonna 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

82
01:21:00.000 --> 01:22:00.000
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
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 iron irony of
entrepreneurship
is that you get everything that you want

83
01:22:00.000 --> 01:23:00.000
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
dollar 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
hormozy
for hanging out with us tonight alex i

84
01:23:00.000 --> 01:24:00.000
appreciate you
i look up to you and i want to be you
when i grow up thanks for hanging out
with me buddy
harley thank you so much ryan uh you
guys have are
lucky to have that was like a phenomenal
uh synopsis by the way that was
i was like such a beautiful soliloquy
about entrepreneurship
um 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

