Alex Hormozi: The Offer Is King

The video is about the importance of having an irresistible offer in business and how to use free offers ethically to acquire customers.

This video by Alex Hormozi was published on Nov 5, 2020.
Video length: 13:44.

In this video, Alex Hormozi discusses the importance of having an irresistible offer in order to grow a business.

He uses examples of successful offers such as Domino's "30 minutes or it's free" and FedEx's "when it absolutely has to get there by tomorrow morning" to explain the three components of a good offer: believability, high ROI, and a strong business structure.

Hormozi also explains the value of using free offers in marketing and provides seven ways to ethically use them to acquire leads and customers.

• An exceptional, irresistible offer is the foundation of a successful business.
• Free offers can generate the highest volume of leads and are typically the lowest cost to acquire customers.
• Seven ethical ways to use free offers include bribe offers, free with purchase, free trials, free consultations, free shipping, free content, and free samples.
• Free offers should be used ethically to build trust and relationships with customers, provide value, generate leads, and differentiate a business from competitors.
• An irresistible offer is key to acquiring customers, and there are various ways to use free offers to do so, such as offering a smaller thing to get a huge value thing for free, using a limited free offer to upsell to a paid offer, and offering a free forever model to monetize a different service.
• Three of the greatest offers of all time were Domino's offer, 10 CDs for a penny, and FedEx's "when it absolutely has to get there by tomorrow morning."
• Each offer has a component of believability, a high ROI offer, and a business component.

The Offer Is King (ALEX HORMOZI) - YouTube

The Importance of an Irresistible Offer

• An exceptional, irresistible offer is the foundation of a successful business.
• Three of the greatest offers of all time were Domino's offer, 10 CDs for a penny, and FedEx's "when it absolutely has to get there by tomorrow morning."
• Each offer has a component of believability, a high ROI offer, and a business component.

The Power of Free Offers

• Free offers can generate the highest volume of leads.
• Free offers are typically the lowest cost to acquire customers.
• The key to massive growth is having a free offer that is irresistible and can spread through word of mouth.

Seven Ways to Ethically Use Free Offers

• Free bribe offer: offer a program for free as a benefit for signing up.
• Free with purchase: offer something for free with a purchase.
• Free trial: offer a free trial of a product or service.
• Free consultation: offer a free consultation to potential customers.
• Free shipping: offer free shipping on orders.
• Free content: offer free content, such as an e-book or webinar, in exchange for contact information.
• Free samples: offer free samples of a product.

The Offer Is King (ALEX HORMOZI) - YouTube

Ethical Use of Free Offers

• Free offers should be used ethically and not deceive customers.
• Free offers should be used to build trust and relationships with customers.
• Free offers should be used to provide value to customers.
• Free offers should be used to generate leads and acquire customers.
• Free offers should be used to differentiate a business from competitors.

Using Free Offers to Acquire Customers

• An irresistible offer is key to acquiring customers.
• Offer a smaller thing to get a huge value thing for free.
• Use a limited free offer to upsell to a paid offer.
• Offer a free trial plus penalty to motivate customers to consume your product or service.
• Offer a free with deposit to give customers a contingency to get their money back or get it credited towards a program.
• Offer a free forever model to monetize a different service than the one you're giving away for free.
• Offer a free giveaway to get people to demonstrate they have a need for the service.

Ways to Make Free Offers

• Free trial with contingency, where the customer has to pay if they don't cancel within a certain period of time.
• Free trial with a deposit, where the customer pays a deposit that is refunded if they cancel within a certain period of time.
• Free trial with a consultation, where the customer gets a free consultation before committing to the service.
• Free trial with a bonus, where the customer gets a bonus for signing up for the trial.
• Free trial with a referral, where the customer gets a free trial for referring someone else to the service.
• Free trial with a contest, where the customer gets a chance to win a prize for signing up for the trial.

Free with Commitment

• Offer the first month or a certain period of time for free as long as the customer commits to a longer contract.
• Market the free offer, but make sure to include contingencies to be a compliant advertiser.
• Put more emphasis on fulfillment, but still sell the customer on staying even if they plan on canceling.
• Charge only the customers who have verbally agreed to the commitment.
• Knowing the metrics is important to market with confidence and acquire more customers at a cheaper price.

Watch the video on YouTube:
The Offer Is King (ALEX HORMOZI) - YouTube