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Dummy Guide To VALUE: Craft Million Dollar Offers And Great Relationships (Alex Hormozi: The 100 Million Dollar Man)

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Edgar King

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May 29, 2021
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Above All Else…
Provide Relative Value. Relative To The Market.

Value is helping me move me from point A (Inferno), to point B (Heaven) which I care to be at (Desired Outcome).​


Introduction And Thanks (You Can Skip This)
I wish to start by saying, Hello! My name's Edgar and I'm an avid scribe to find the truth of how the world and humans work (beep boop). In my quest for a model that would allow me to make a positive difference in the lives of others (Value) I was recommended this fantastic book by my very good friend @Miketing, called $100M offers by Alex Hormozi. Thank you so so so much buddy! I'd even recommend you save this thread for later, and go buy it and read it if you plan on becoming a successful business owner. You should think of this post as a recap of sorts.

This book helped open my eyes to the what causes humans to buy things and what makes one offer more valuable than the other. Thank you Alex! I won't go into details why you should care about what this man says, but I'll just say he's known as the 100 million dollar man for a reason and he helps other multi million dollar companies grow and exit at 30 million dollars+ without messing up. Anyway, I felt this model could be expanded to include relationships, personal life and more due to my readings from Cashvertising on the basic desires and other tid bits about marketing I've learned over the months.

I've been working on this post for WEEKS (due to wanting it to be presented in an almost perfect light), thankfully, Mike's been nudging me to post it, and I finally came through. I've carefully written the key points he said in his book and in his videos aimed at beginners of value (Which means, this post won't go deep if at all into scarcity and bonuses which go into marketing mostly. Which is why I recommend you read his book before or after this.) I've also added a explanations from my limited copy background that hopefully explains the behind the scenes of this multi million dollar crafting technique. But where one may see a technique, I see a lifestyle.

There will be a preliminary explanation of human behaviour so you can understand the why of this may be as well. Plus some extra explanations which I thought would aid understanding. Let's get right into the meat of it shall we? For dummies at providing value (like me).

Ooga Boogaloos... Why People Buy? Why People act like People? Why People do thing?


Pain is an indicator of damage to your physical or mental being.

The brain works by connecting ideas to each other. When you think of an idea (Which is a noun), the brain brings up related ideas (nouns). The brain always conjures nouns in the form of mental images.

E.G. Pink mouse.

We can conceptualize nouns as static images, and note that (most) verbs are associated with a change in an image (a noun) over time. I dare say, it’s how humans comprehend the world.

Actions are therefore, just noun to verb to noun activity for example.

Action: Noun to verb to noun activity. (These actions realize the reaction. No realization = unreachable reaction)

Reaction: Noun to verb activity OR Noun to verb to noun activity (Validate the action. No validation = Action is useless)

E.G. Pink mouse was the action, your reaction is therefore thinking about pink mouse.

A better example. The name of this post is, "Dummy Guide To VALUE: Craft Million Dollar Offers And Great Relationships (Alex Hormozi: The 100 Million Dollar Man)". Where 1) "Dummy Guide To Value" is the action, and 2) "Craft Million Dollar Offers And Great Relationships" is the supposed reaction. The final spice is 3) "Alex Hormozi: The 100 Million Dollar Man" which I like to call, value upgrades which we'll get to below. It lends credibility to my message by increasing your perception of the probability you'll actually be able to pull this off by showing you someone who has achieved it before with this supposed offer. 2) Is where you want to be (Reaction to my offer), 1) is basically my offer in this context (Action), and 3) differentiates my offer making it essentially one of a kind. More below.

Dream Outcome: If the Scale X Magnitude/Quality X Size of the nouns after verb applied are positively different at two different points in time based on the LF-8 desires, we say value has been created.⏌

E.G
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Right: Your offer (Noun) works (Verb) on small dog (Noun) (Action)
Left: Small dog (Noun) grows (Verb) (Reaction) or Small dog (Noun) grows (Verb) to big dog (Noun) (Reaction)

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The size of this dream outcome is = (Total Time X Effort) / p needed to make it happen on your own.

Where Time: Based on length of time of effort to complete the step

Where effort: Usage of High (Running, Oh no homework is due in 1 minute!, urgent and important, high fail rate), Medium (Jogging, gossiping, urgent or important, med fail rate ), or Low (Walking, surfing socials, not urgent or important, low fail rate) brain or muscle energy to complete the step.

Note: Learning/Doing new activities naturally takes a high effort to achieve, possibly because we need to learn the steps to do so, and therefore, low probability of success = high value activities.

Be A Man Of Value. Be A Superhero.
A man of value... is a real friend! They get invited to parties and girls love them and everything! (Dream outcome)

(We delve into actions to make this happen)

A man of value is someone who helps others reach their goals.

They make a difference. If they weren't there, you'd genuinely miss them.

How do I be a man of Value?

Watch others when they expend med-high "mental" or "muscle" energy over a certain period of time. They are in the process of reaching a goal (Reward, preservation, supremacy), possibly by looking at the high level step they're on. Help them achieve what they want.

Everyone has at least hundreds of rewards, preservations, and supremacies that they want.

Help them achieve it by affecting the 4 core value drivers (dream outcome, escaping pain, time delay, probability of success. More on these later.)

(M/P)Energy/time [High-Med-Low] [Step]> Dream outcome/goal > Present/ Future Step > Value drivers

ESGSV for short.

Or ESGV. When it hurts you for helping, you’ll know you’re really making a difference.

I do this by observing those that seem effortful (Mid-high efforts) now or in the future, out of curiosity, and I help with that. Or even, any other person that's going to undergo a step in the future.

You should aim to do this at least once a day even if for just 30 minutes, apart from how good you'll feel they'll be great returns coming your way. Be a man of value. That’s the main purpose of this post, if you go on to help another human being using the knowledge here, this post would have fulfilled its objective.

High effort (Mental/muscle) activities X time = High value
Low effort(Mental/muscle) activities X time = Low value

Where time is constant.

Strive to be a man of value, and everyone will adore you. Or not, at least you can be happy you're helping others.

Even if, to just one person a day.⏌


Note: The perceived probability of success increases with the number of successful moves to the dream outcome. This is why we trust a surgeon who’s done surgery for the 10 thousandth time to operate on us, rather than a first time surgeon. And why products with 100 5 star reviews will always be more attractive than a product with only 20 5 star reviews ALL OTHER variables held constant.

This is also why getting a million dollars is far more valuable than, say getting a cheeseburger at the local restaurant or losing 20lbs in 6 months. The last two are just far easier than the former to get and you have a higher chance of getting it.


In fact, getting a million dollars in 6 months for your first time is far more valuable since that would take you even more time and effort and be less likely to achieve on your own.

The size of the dream outcome is proportional to the price you can charge

The game comes down to 40% audience, 40% offer, and 20% copy. Ace the first two, and you won’t need the last one (Productocracy).

Find an underserved market (Starving crowd). Solve their problems.

When you serve a starving market, you'll always win.

Note: It is highly recommended to solve your own problems and sell this dream outcome to others just like you as you’d be more passionate about it and possibly more successful than if you just tried to solve a random problem you don’t relate to. If “getting” there was zero cost, took zero time, and was a 100% likely what would you want? Then show this to others like you affected by the same problem, and if they love it, and if they want to buy it, congratulations you have a business. ⎦

This is also why there’s no other best copywriter for your business than you because you know the challenges of your own problems better than others.

The Life-Force 8 (Fault Correction, Gain Correction, Superiority Correction = Value)​

  • Survival, enjoyment of life, life extension
  • Enjoyment of food and beverages
  • Freedom from fear, pain, and danger
  • Intimacy
  • Get more comfort, Comfortable living conditions
  • To be superior, winning, keeping up with the Joneses
  • Care and protection of loved ones
  • Social approval (Positive praise/acceptance from group/niche/environment on qualities and actions)
These desires motivate all that we do, and conversely all that we buy.
  • Remember Positive Scale X Magnitude/Quality X Size | Dream Outcome
  • The below is a wider explanation of these desires.
  1. Higher quality of life (Health) [Survive, Mental health, Physical health, Enjoy Meals, Escape Pain, Intimacy [E.G. Close Friendships], Comfort, Observe Ourselves/Experiences/Qualities/Likes/Ideals Out There In the world]

  2. Higher relative standing/position/regard in observable social or professional society (Wealth, Relationships) [Superiority - Having or being more than your fellow man(s) in terms of things the social group (Inter-related- Interactions, Similar, Goal(s) Align) or society inherently knows as rare non-harmful things. [Relative social or professional position (Having or being more than your fellow man(s)) in the social group (Inter-related- Interactions, Similar, Goal(s) Align) or society based on Achieved (A thing/reward or position given as respect, praise or recognition of a person's skills, abilities, service, effort, or achievement) or Ascribed status (Better, greater, or otherwise different from the usual things people are born with in society or the social group)], or even explaining how it’s superior etc. Beauty is therefore a part of this, Winning, Being left behind, Loved Ones, Approval]. Especially to people of high value (People who cause(d) increases in 1 and 2) to you.

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(Above figure) All humans act to fix faults, gain, or be above others in their social group or society (Problems → Solutions) to be happy.

⎾All humans act for rewards, preservation, and supremacy to be happy.⎦

The Explanation Of All Human Behavior (To A Dream Outcome)

⎾Bad action = Problem on Noun
Good action = Solution on Noun⎦

Note: People associate the satisfaction/dissatisfaction of these desires (Value) with the person who caused it. This is why we like positively powerful people.


Each of these desires, can therefore be the dream outcome. Our offer is the vehicle to get them there.

Acting/Explaining (why/how) to make dream outcome achieved (To others) = VALUABLE

E.G. how to make money drop shipping | Action + Reaction (Noun after, is richer than noun before which plays to superiority)

Influence On Demand (Inspire Action In Others)

Note: The comparative adjectives part below can be skipped (Aid with generating ideas). But the event should show it’s satisfying a desire through a comparative adjective.

Doer (You) ➡ Receiver (Other)
Desire (LF-8). ( Scale Of Event (+/-) ). (Comparative Adjective). Event (Actions/Speech(Why/How) to/by them)

E.G. Escape pain > -10 > Stormy > A heavy storm is coming to your location with the potential to rip off roofs, with Gentproof you and your family can stay safe.

Doer (Other) ➡ Receiver (You)
Event (Actions/Speech(Why/How Desire Satisfied) to/by them). (Comparative Adjective). ( Scale Of Event (+/-) ). Desire (LF-8).

Note:
Events are all the actions something could do to cause the desire by showing a comparative adjective (Or turning an adjective to a comparative adjective) in accordance with the scale of the event. After all, humans understand things relative to other things.

Scale of the event is the felt positive to negative score from -10 to +10 to reflect the strength of this event. The higher this is, the more the value.


  • Great copy: Starts by introducing the dream outcome with inherent value upgrade (e.g. increased dream outcome or reduced time delay or effort and sacrifice or increased probability of success) over the norm. Then improving the 4 value drivers (probability of success,effort and sacrifice,Time delay) for the offer’s steps.
Note: Positive event: “What do I need to show someone to solve this problem?” Anything the offer possibly did to solve this problem.

Note: Keep the events simple and imaginative: Use noun to verb to noun activity to simplify.

E.g. We added B.R.A (Battle ready armor) functionality to the mecha suit as well.

This way, your prospects create mental images in their heads of you solving their problem and thus easily lets them know they really need your offer.

Note: Remember to add reactions for the actions, else the action is useless (The classic features V benefits argument).


Alex’s Method (Best For Offer Creation) (E)SRAAS

Note: At the highest level, applying your offer (Action) leads to them being happier (Reaction).
You can use this to generate the dream outcome.

( - ) Action (Noun + verb + Noun)( - ) Reaction (Noun + verb | Noun + verb + Noun)(+) Action (Offer Name + verb + person)(+) Reaction (Noun + verb) (Dream Outcome) [Optionally with dream outcome upgrade]
friends gain more followers than you on instagramYou feel left behindBy applying Edgar’s foolproof Instagram guideYou’ll gain more followers than your friends in 6 simple steps


High Level Step (Next logical step to dream outcome)

(Action)
Negative Event (+Limiting Beliefs)
(+Reasons not to do it or keep doing it Under 4 Value Drivers)
—---------------------
Subproblem (High level step problem)

(Reaction- Noun + verb + Noun | Noun + Verb
E.G. I think…)
(Comparative) Adjective(Anti-Comparative) AdjectivePositive Event (What would I need to show someone to solve this problem? = Reaction [Dream Outcome/Vacation])

Good Action + Reaction

(What offer did to offset negative event of step = Actions)
Access internetThe network is too weakWeakStrongWe’ve crafted a network guide based on your location to get the fastest router for the fastest website load times that you can order from your local store at the push of a button.
Too hard to dohardeasy

I also use this to write copy that actually solves problems. Rather than just nice sounding stuff.

In solving (The Action) generate steps and solve the problems to reach the dream outcome. What you’d need to show someone to buy is the reaction, and the action is the justification for it.

Other Weaker Desires (Which Can Be Less than the LF-8)
  1. Acceptance - the need to be appreciated
  2. Curiosity (explore the event(why/how) of a desire/dream outcome fulfilled that I have ) the need to gain knowledge and explore new things (Especially about what you care about)
  3. Eating, the need for food
  4. Family, the need to take care of one’s offspring
  5. Honor, the need to be faithful to the customary values of an individual’s ethnic group, family or clan
  6. Idealism, the need for social justice
  7. Independence, the need to be distinct and self-reliant
  8. Order, the need for prepared, established, and conventional environments
  9. Physical activity, the need for work out of the body
  10. Power (The ability to have an effect on another’s LF-8. Of which they react with an action. We like-love people who use power positively on us. We dislike-hate people who use power negatively on us. If a person does both, we might have a kind of love-hate relationship with them. Note: If there is no acknowledgement of this power by the target, then the sender is shown to have no power), the need for control of will
  11. Romance, the need for mating or sex
  12. Saving, the need to accumulate something
  13. Social contact, the need for relationship with others
  14. Social status, the need for social significance
  15. Tranquility, the need to be secure and protected (Maybe beauty is a part of this)
  16. Vengeance, the need to strike back against another person
  17. The need to see, hear, taste, touch and experience beauty (Most beautiful things are Rare/scarce relative to what is available and are beautiful because they appeal to other desires)
  18. The need to overcome trials, tribulations, and challenges

It’s also satisfying to read/watch others satisfy these desires.

The more lf-8 HIT by the same stimulus, the stronger the desire (multiples).


Relatable: Humans naturally want to see their likes, ideals and preferences out there in the world (Essentially themselves even) because we want to get more comfort (Solve anxiety or boost self esteem) or gain social approval from the world (“That’s a good quality to have”). Positive Feelings surface when you see something recognizable (Enjoyment of life).

It's fundamentally part of a human person to want to belong. We need to belong (Be a member of).

Alex's Section
Niche is something that only appeals to a select group of people.

No matter how you advertise or market your product it will never appeal to a mass audience. It is in ways, an activity/experience they never do/have.

E.g. drinking coffee > coffee lovers niche

There are three main markets that all markets fall into: Health (How they look, physical health and wellbeing), Wealth (Make more Money), Relationships (Loved, not feel alone). All submarkets exist within these 3 categories.

Picking a market
As entrepreneurs…


⎾We suffer from something > Desire to solve it > Solved > Other people seen who are struggling and want to be where we are at > Help them⎦(Perhaps this can be used to find your dream outcome to solve)

It is a continuous process of you solve a problem and do so, so well, that other people notice it, then they ask you for help.

Two Methods.
1)
Choose a market where you can provide the
Most Value: Based on skill set, where you’ve worked with people in a specific marketplace [Personal Experience] (THIS TRUMPS EVERYTHING as long as the market is not dying).

2)
Check according to the market categories [Just have skill of marketing or sell with no personal experience]:

The market you choose should…
  • Have Massive pain [Not nice to have],
  • Growing
  • Easy to target
  • Purchasing power
Must have all of the above = Recipe for success

These market categories can be broken down into submarkets.

Your Submarket: Help a unique avatar solve their biggest specific problem in a unique way that overcomes their biggest objection/worry (Decommodotize your offer).

The riches are in the niches → very specific messaging and craft solutions to be MORE valuable to the person to compete in a category of one.

Success comes down to 40% audience, 40% offer, and 20% copy.┚

High Level overview
Step #1: Figure out our prospective client's dream outcome.
Step #2: List out all the obstacles they’re likely to encounter on their way (our opportunities for value).
Step #3: List all those obstacles as solutions.
Step #4: Think of different ways to deliver those solutions.
Step #5a: Trim those ways down to only the things that were the highest value and lowest cost to us.
Step #5b: Put all the bundles together into the ultimate high value deliverable.

Commodity Vs Diamond

A product/service is a function that resolves pains (that the person cares about).

The market function is the average of functions on the marketplace.

Let’s say you have 100 pains/obstacles in reaching a goal, each with varying magnitudes in achieving a goal.

A commodity is a function that solves the same pains as the market function (10 problems E.G.). [Similarity-market-function: 90-100%] = salt

A value based product is a function that resolves more pains than the market function (In terms of time delays, effort, likelihood of achievement) (E.G. 99/100 problems). [Similarity-market-function: 0-1%]. They cannot be compared to the market function. These sell in a vacuum. It’s either the product or the highway.

A commodity is a product/service that is available in many places. It’s a function that resolves the same problems as other products in its category.

Value based products: You sell in a vacuum. The prospect has the decision of your product or nothing. This is why you can charge premium prices for it, you’re a category of one.

Charge What It’s Worth:
Premium prices, means premium clients, and premium business, and premium profits.
❏ Be more expensive than everyone else (by enough that it causes consumer to pause and think, “Wow, this is so much more expensive, there must be something entirely different going on here.”) = Monopoly = Monopoly profits. Charge as much as humanly possible while still providing your prospects a deal.
❏ High Price = Associated with Higher Value (wine example)
❏ Higher prices get people better results (and are therefore ethical) [Imagine paying $99 vs $300 for a work course, how better would you work in the latter to get your money’s worth?]

You can charge 100x for the same product if you niche down

You’ll know the value is > price when people refer you or repeat business.

As soon as your value dips below your price, people cancel and it's very difficult to scale.

The Goal is they buy a tremendous amount of value at a discount > Best return

High prices = High Perceived value (Charging higher prices makes your product better)

Price is a component of value in of itself.

Goal: So much more expensive from the rest of the marketplace (at least 10-100x) that a consumer must pause and think, “This cannot be the same category of solution as everyone else’’ thereby making you a category of one.

Do this so you can provide meaningful results to your prospects and improve the experience/provide even more value. = Virtuous cycle.

Pick a Niche:_____________________________________________
❏ Niche Down 3-4 Levels
❏ Health→ Weight Loss→ Weight Loss for Women who just had kids→ Following Keto
❏ Wealth→ Real Estate→ Flipping→ Without having to see a property all using DMs
❏ Realtionships→ Dating→ Over 60→ Without awkward first dates


Note: If you have something where a client must perform some options or some action in order to be successful, then it would follow, that the more invested they are… the more invested they will be. Which will create better students and outcomes.

Increasing the quality of your prospects, increases the quality of your product. By raising your price.
Only the best people buy your stuff = more money to invest in them = higher perceived value which allows you to do more for them.

You can either decrease price (bad- Only down to $0) or increase value (good- Infinite value)

By niching down
Positioning offer
Reversing risk
Etc.
The customers have to feel like they're paying cents for dollars. Multiplying their money
Don't model competitors. They're all broke.
Decreasing prices to sell leads to giving more for less, reducing all profit to zero
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The Value Equation

Your offer may not be converting because what you are offering is not valuable enough.
When price > Value = Dissatisfied = No more referrals or no more repeat business

How to increase the value?
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But that’s the offer’s value (internal).

Externally, the delayed demand to experience the offer (the ask) + 1/ perceived supply of specific solution (Scarcity, Urgency) dictates its market value.

The offer’s + market value = Total value.

The better the dream outcome of what we are selling = More value
The better the perceived likelihood of this outcome = More value
The more perceived time time it takes between purchasing and achieving a result = Less value
The more perceived effort and suffering to get the result = Less value

NoteL if the prospect doesn’t perceive the value, it’s worthless.

If you can achieve an amazing dream outcome with 100% certainty in an instant with and you didn’t have to do anything = Most valuable Offer Ever

Increase Value (Desire & Promise)

i) Dream outcome: Is the end result meaningful (importance) to them? How big is the tension/pain?
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More expensive problems = More value = More money. The bigger the desired outcome, the bigger the value. How hot is the inferno? How bright is the heaven? The dream outcome is a measure of the improvement in their lives (Health, wealth, relationships) by moving from inferno to heaven.

Figure out ways to solve more expensive (money, time or effort to solve) problems.

Quote from Alex…
“I had heard of weight loss challenges, so I started there.
Lose 20lbs in 6 weeks.
Big dream outcome - lose 20lbs.
With a decreased time delay - 6 weeks.

Note: I wasn't selling my membership anymore. I wasn’t selling the plane flight. I was selling the vacation.”

Or even Brooke Castilo’s 90 day amazing relationship.
Even the millionaire fastlane
The reduced time delay inherently makes the offer more valuable.
Or Genie Bras slim fit firm bra without the strap pain
The reduced pain and sacrifice inherently makes the offer more valuable.
Or “With LifeButt, I never have to worry about lawsuits ever again! ”
The increased probability of success makes the offer more valuable.
Or get $10,000 this month with copywriting - Bigger dream outcome

ii) Perceived Likelihood Of Achievement Of Dream Outcome (testimonials & proven case studies): Do they think they’re actually going to succeed? = Lower Risk Of Negative Outcome. Repeatable Success. Communicate the likelihood of their success.

Decrease Value (Time, Effort & Sacrifice)

iii) Time Delay: How long will it take them to see the final result? Progress on the way (get them to continue)?
Fast beats free. E.G. Uber vs walking.
E.G. Six packs in one day compared to a year.

Always try to incorporate short-term, immediate wins for a client. Be creative. They just need to know they are on the right path and that they made the right decision trusting you and your business.

The faster and more clearly you can demonstrate those benefits, the more valuable your service will be.

People who experience a victory early on are more likely to continue with something than those who do not after all.

iv) Efforts & Sacrifice: What additional costs/inconveniences (Exertion of power to achieve result) must they incur to achieve the result?

Get them to perceive all of these = value.

You can do a binary calculation of similar offers solving the same desire to understand the value (0-0.5-1).
1- Value achieved
0- Being missing

Add all four to get a relative value rating of a type of service/product

If you introduce something valuable to someone, they associate that value with you.

Offer Creation Pt 1 (Creating A theoretical High Value Solution)
Your offer may not be converting because what you are offering is not solving all their problems.

Where you market solving a problem > But not actually solving the problem.

How to solve problems…
  1. Identify The Verifiable Big Dream outcome/Requirements (What do they REALLY want?)
  2. List out all perceived problems (Core things someone has to do to reach the dream outcome, reasons to not do it. Using value drivers as a guide. Points Of Friction/Effort/Logical Steps To Dream Outcome. Logically Immediate detailed next steps before and after someone uses your product/service)
  3. Turn all problems to solutions
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Outcome should be as specific (confirmable/provable) as possible. The outcome should be immediately obvious if It's been fulfilled or not. Sell the big vacation/paradise, NOT the feature and what they would like to experience.

E.G.

Make more profit than they already do VS good copy. This way, you’re not selling the feature, you’re selling the vacation.

⎾People/clients generally want:
… To be perceived as beautiful
… To be respected
… To be perceived as powerful
…. To be loved
… To increase their status ⏌

E.G. Alex’s offer was Lose 20 pounds in 6 months without any risk
Also,
I help 5 million dollar companies get to 30 million dollars+ and exit in 3-5 years without messing up.
Add the avatar-
I help zz avatar xx specific outcome in yy time period without biggest pain/fear in a Unique Way

It’s best to have/had the same pain as your target audience (due to the same environmental change) because you’ll have the desire and motivation to solve theirs and your problem.

If you don’t share their pain, you won’t share their dreams, and you definitely WON’T be motivated to solve the problem.

2. List out their problems/obstacles (Perceived & Real) [Obstacles preventing the dream outcome]
neu4m7zpmO_uavICpjhy1Z9UCZ-ZJZnqHK8_RNI_6r_IoyWHhePXF3ctMBdwyZ5C6V559_U33beGKu1oShX1ipAxgofRRmmmywywE9STKDPLxQSojwJqfqlGBXJ-AAfGPooVURV_

What are all the things you struggled with in your journey to fulfill that desired outcome?

The more problems thought of, the more problems you get to solve. Bottom line, get all the problems then turn them into solutions.

What is every single high level (categorial- Smaller steps fall into this) step a customer has to take in order to get the dream outcome with your/a product/service? What’s the next thing they need help with (More effort than usual)? Points of friction/(effortful) events to the dream outcome (When using your product/service)? Next logical steps after that, and after that etc.

What is every single intricate/effortful (complicated/detailed) step they’re going to have to do/take in order to get the dream outcome with your product?

To know these steps better/innately, you need to try and achieve the desired outcome. And to do that, you need to have the same pain as them, so you need to be in the same situation as them.

Find out these steps by googling, how to do X (Specific outcome)



E.G. Weight loss
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- grocery shopping
- packing and unpacking food
- meal prepping
- eating
- cleaning dishes
- eating out
Etc

Each of these issues/problems can be unpacked into subproblems.

3. Turn Problems Into Solutions

List/Find ALL (For all 4 sections per high level step) the reasons/pains/limiting thoughts for not doing the high level step . All these reasons will fall under the sections of the value equation.

Look to solve these problems with psychological solutions, rather than just logical ones, because there are no logical problems anymore (These have been tried and fixed, and are not problems anymore), only psychological ones.

The more problems you think of, the more problems you solve= The more valuable your offer.
You don’t know the lynchpin reason for someone not doing something, that’s why we target it all.

To know these pains better, you need to do the high level action.
People love complaining, so check google/reddit/quora/twitter/Amazon etc to find out what pains you might have missed. Ask,

Why not do x (High level action)? = Problems To Solve

The reason you capture all of them is because you don’t know the reasons someone has for not doing the action. So we solve all of them to increase the maximum likelihood of conversions for the offer and solve all their problems.

Alternatively, just get all the problems down and turn them into solutions.

⎾A problem is a (high level) step/action/obstacle/logical step to the dream outcome, with sub problems.

Each of these sub problems (reasons not to do it or keep doing it or limiting beliefs or potential negative events/beliefs) will fall under the 4 value drivers (Dream outcome, perceived likelihood of outcome, perceived effort and sacrifice, perceived time delay). By solving these for each step, your offer becomes more valuable.⎦

Take a step, and break it down to find out how it’s an obstacle so you can lubricate it.

E.G. Grocery Shopping

What things decrease the perceived value of doing that?

Action: Not going to the grocery store
Desire (Why?): Hard, confusing, won’t like it, suck at it

Reverse the value equation (Make negative)
Dream Outcome/Desire → Not worth it
Likelihood of achievement → won’t work for me, too far, I can’t stick with it,
Effort & Sacrifice → too hard, too confusing, won’t be enjoyable, bad at it,
Time Delay → take too long, won’t be convenient for me,

This gives us so many opportunities to solve problems, to provide value.
To position yourself in a way no one else is positioned in the market. You’ll solve all the problems no one else talks about.

You will demonstrate you understand your prospects problems better than anyone else, they will feel understood = ↑ Perceived Likelihood you can solve their problems.

The goal is to reverse each of these things into a solution.

PROBLEM → Solution: Buying healthy food, grocery shopping
Reverse all the reasons for not doing the high level step
How To YAY without BOO
… is hard, confusing, won’t like it, suck at it → How to make buying healthy food easy and enjoyable, so anyone can do it (Especially busy moms!).
… takes too much time → How to buy healthy food quickly
.... is expensive → How to buy healthy food at less than your current grocery bill
...is unsustainable → How to make buying healthy food easier than buying unhealthy food
...is not my priority. My family’s needs will get in my way → How to buy healthy food for you and your family at the same time
….is undoable if I travel → How to get healthy food when travelling

Do this problem-solution conversion for all the high level steps. To solve all of these things to lubricate their path from where they are to where they want to go = Ensure success = Love us and tell all their friends.

This acts as a checklist of exactly what we are going to have to do for our prospects and what we are going to solve for them.

Solve every problem.

Quantitative equation for measuring value.
⎾Actual Value = Satisfied Value (Solved Pains for High level steps)/ Maximum Possible Value (Solve ALL Pains for not doing high level steps to achieve dream outcome) * Size Of Dream Outcome⎦

Now we know what we need to do. Next is how.

Offer Creation Part 2 (Creating A practical High Value Solution)​

You want them to think to themselves, “I get all this, for only that?” In essence, you want them to perceive tremendous value.

Your offer may not be making money because what you’re providing you’re providing is not high margin (high level of profit compared to the amount of money spent on doing them) or valuable

How To Make It High Value AND Valuable
  1. Sales to fulfillment/Delivery continuum
  2. The Delivery vehicles “the How”
  3. Trim & Stack for Max Profit & Value
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Fulfill: Do the service/provide the product
Most times when you do things that are easier for you, it’s less valuable to the prospect.

If you lower what you have to do, it increases how hard your product/service is to sell. (Increased Effort).

If you do as much as possible, it makes your product/service easy to sell but hard to fulfill. (Decreased Effort).

The sweet spot is in selling something very well that’s also easy to fulfill.

But, create flow. Monetize flow. Add friction. Generate demand first. Then with your offer, get them to say yes. Once they are saying yes, only then should you add friction in marketing, or decide to offer less for the same price. This helps to test whether your offer is solid/valuable to customers (By decreasing effort and sacrifice on their part and time delay and improving likelihood of success by having an expert do it).

If there’s no demand, you can’t tell whether what you offer is good. Better to do more for every customer and have cash flow coming in, than optimize your business but have zero cash flow and not know what you need to adjust to better help serve your customers.

Create cash flow by overdelivering like crazy at first. Then use the cash flow to fix your operations and make your business more efficient (Pretty seamless). The offer may not change even, but just cost you less resources significantly.
This is how businesses beat one another.

Worry about scale later (Offer remains the same, but how and what you do changes).

Everything you do to solve the problem falls into 1 of 3 categories

DFY: Done For You E.G. You do everything (Entrepreneur Effort Dependent)
DWY: Done With You E.G. Coaching
DIY: Do It Yourself E.G. Course (Customer Effort Dependent)

The higher the barrier of entry, the more long-term potential it has!
Sell high ticket, custom stuff first, scale is not a problem at all right now.
Get cash flow, focus on the harder things to fulfill that are easier to sell (Barrier Of ENTRY), get things going, and learn more about the business and figure out what you can trim and stack to provide almost the same amount of value for less operational drag (Easier to fulfill), where we are positioned in such a way that makes it easier to sell.

Focus on the harder things to fulfill that are easier to sell (Barrier Of ENTRY) = Fewer people at higher prices, learn skills, price anchor yourself = Do lower priced offers later so prospects think they’ve got a deal.

Selling the more expensive thing automatically price anchors and value anchors you for your lesser expensive things with more scale. It also creates a simple reason for your communication.
LVTG6J8lZhQ0ViiFBuYt9bdLxTJEDpDK_ZECrgiScEkeShKr6dZ19Wc7udbFmt_BvnZYcQKTpPGvz4yLYDSoG6TSrSEw-G5AEbwhDRKbUTLCsB0nt-pJqSe6dHpWhT1Asls7bKtX

Iterate on your offers.

The key is to get some money, then use the money to build your business. Don’t solve problems that don’t exist.

2. The Delivery vehicles “the How” (6 ways)
1. List a high level problem and ALL the ways you can solve that problem (Deliverables)
2. Use cheat codes to make it easier to think through
Think about anything you could possibly do to solve each of the problems identified (This allows you to think of different solutions that you normally wouldn’t normally think of). Think of things that might enhance the value of your offer, so much so they would be stupid to say no.

What would I need to show someone to solve this problem?

What could you do that someone would immediately say, “All that? Seriously? Yes, I’m in.”
= Selling so much easier.

This is high value, high leverage work, since you’ll only have to do this for one product that’ll probably last many years. You ultimately get paid for thinking.

Problem: Buying Healthy food is hard, confusing, expensive and I won’t like it
If I wanted to provide a one-on-one solution I might offer…
  1. In person grocery shopping, where I take clients to the store and teach them how to shop
  2. Personalized grocery list, where I teach them how to make their list (Consultation)
  3. Full-service shopping, where I buy their food for them. 100% done for them.
  4. In-person orientation (not at the store), where I teach them what to get
  5. Text support while shopping, where I help them if they get stuck
  6. Phone call while grocery shopping, where I plan to call when they go shopping to provide direction and support

If I wanted to provide a small group solution I might offer…
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  1. In person grocery shopping, where I take a bunch of people shopping
  2. Personalized grocery list, where I teach them how to make their list (Consultation). I could do this one time or every week if I wanted to.
  3. Full-service shopping, where I buy their food and deliver it to them. 100% done for them.
  4. In-person orientation (not at the store), where I teach them what to get

If I wanted to provide a one to many solution I might offer…
Y6bcHZ9tcHHiJWHv_BzuAZ1NpNqK8bmJfaXdtyV1qgXP5ZeQnHP43p8_YUjpoeEqtzNfT76KrVSYn1n4Cnd3F-qN2Mfm9fLZ1d6mNOVcnUXavDSKT_sgerwPejEidYN2WQrpmCl7

  1. Live grocery tour virtual, where I live stream going to the grocery store for all my new customers and let them ask questions live
  2. Recorded grocery tour, where I might shop once, record it and give it to them as a reference for clients to watch on their own
  3. DIY grocery calculation, where I create a shareable tool or show them how to use a tool to calculate their grocery list
  4. Predetermined lists, where each customer plan comes with its own grocery list for each week. I could make this ahead of time so they have it and use it in their own time.
  5. Grocery buddy system, where I could pair customers all up to go shopping together
  6. Pre made insta cart grocery carts for delivery, where I could pre make insta cart that can be delivered to them at the push of a button

Product Delivery Cheat Codes

cHSLZtDXmCSGh7SlqwLzmkjrOhjDWsYPZQXkYWnYOvD6l4UJrrGONRFsrlwvXarVUSEnXz8nfj_MAVoOLev8sqSR66uRBoZdrzbns6Ppz6Ex23EoJ8tYJmOw4kFWj10GeIyg0xXi

The content of the cubes interact with each other.
Group Ratio (Level of personal attention)
1-1, Small Group, One to Many

Level of Effort On Their Part
Do It Yourself (DIY), Done-With-You (DWY) [Do with them], Done-For-You (DFY) [You do it for them]

If doing something LIVE, what environment or MEDIUM do I want to deliver it in?
In-person, phone support, email support, text support, Zoom support, chat support

If doing a RECORDING, how do I want them to CONSUME it?
Audio, Video, or Written.

Speed & Convenience
24/7, 9-5 Monday-Friday, How fast will you reply to questions? Are there levels? Within 5 minutes, within an hour, within 24 hours?

10x to 1/10th test
What else would I deliver/fulfill to make it 10x more valuable if my product cost 10x its current amount?
OR
What would I deliver if my product cost 1/10th its current cost and had to provide more value than I currently am at my current price? > Build assets, build tools, building resources only one time

Repeat this for all the high level problems and ALL the ways you can solve that problem.

One single item not solved, can become the sole reason someone does not buy.

Solve EVERY Perceived Problem, ONE thing could prevent the sale, ONE thing could prevent you selling as much as you could have = Offer so good people can’t say no.

3. Trim Solution Stack For Max Profit
Rate “how” solutions in terms of value to your customers and cost to you to YOU (From the 3 categories of how to deliver the solutions)
co25C5NPK7ztyZTG_NDcP9WO6PywbjHUPRU52HqiOMrQSdaM80L_1MppJTppgq4vgrL1QWo1crYG6cI9gpoY9mDI45DV7Ma-w8Fdu3xMB2EjDySCT1eSnY9rP5dvsZFzsF8WdI6W

High Value: meaningful, solving more, if not all of their problems, fast, easy, and believe they can do it and enjoy it

Low value: not meaningful, solving little to no problems, slow, hard/complex, not interesting and dont believe they’ll like it

High cost: requires people to scale

Low cost: can scale without people but with up front effort instead

If you aren’t sure what’s high value, go through the value equation and ask yourself which of these solutions will this person:
  1. Financially value
  2. Cause them to believe they will be likely to succeed
  3. Make them feel like they can do it with much less effort and sacrifice
  4. Help them accomplish their goal and see the result they want with far less time investment.
Remove the ones that are high cost and low value first. Then remove low cost, low value items.

Only pick things that are high value according to the value equation.

-Value (Medium) ↓ Cost Is just a distraction

You need to make every single piece of your delivery system to be hard hitting.

One that makes them go, “Wow, Wow, Wow, that’s wonderful! I’m delighted! I’m going to tell my friends!”

Only pick things that are HIGH VALUE. Keep things that are high value and low cost, and high value and high cost for now

If there’s one type of delivery vehicle to focus on, it’s creating high value “one to many” solutions = Scalable (E.g. software, where they have high one time costs of creation, but infinitely low additional effort after. These require upfront costs, but offer scale). Save those high cost items for big value adds only. If you think you can accomplish the same value with a lower cost alternative, do that instead.

4. Final High Value High Profit Offer Stack

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Only keep high value items (and choose your high value high cost items carefully)

The idea is to solve the entire matrix of problems in the prospects mind so they have NO REASON to not buy and be not successful.
Don’t have more than 1-2 high cost delivery items for your solution stack. Solve them in low to medium cost scenarios, and save the 1-2 high cost things to be the heaviest hitter.

If the value outweighs the cost you can assign them.
bNOYnJTp98Xp8rwOaomEsGi51BZ7GlPn_StfjLqKxYK5eD5L0rkHqW2SQiUxAgJ4TrL7wwzIltwpTACW7p-R9YUacEMOpH43MfUdde40xwhxp5H8bJcgl_bDV9tVFrS4KESJu2hl

Run the solutions through these variables to decide which one is best.

98uz2UzSivdnElnGOC5BJRWBCoR9YudeKgS7aQcs0uF7McgoYVivNUGwzNZBY_TXA_8FpDqzl-SFZLb-N-2b0V3DCAizrmCcWNjKCf2NPHZvHDTF02w95FnBSx2iI03ssY_ZMtmS

If a 100 people added to my thing, how many people do I need to hire? = Direct cost
Rent, software, computers = Indirect
Do this especially in service.
Most businesses go less profitable over time so make sure this is proved true.

What it might look like...
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Remove all items that are NOT high value
Keep only a handful (1-2)l of High cost high value, and everything else should be high value low cost

Start with something that is less scalable (more high cost high value) to get people to say yes and begin monetization

5. Ultimate High Value Deliverable
Problem → Solution Wording (Theory) → Alluring Name For Bundle →
Delivery Vehicle Listed (What we’re actually going to do for them/provide. About 7 or 8 Vehicles that solve all problems)

E.G.
Buying healthy food → How anyone can buy healthy food fast, easy, and cheaply → Foolproof Bargain Grocery System… that’ll save hundreds of dollars per month on your food and take less time than your current shopping routine ($1000 value for the money it’ll save you from this point on in your life)
  1. 1-on-1 Nutrition Orientation where I explain how to use…
  2. Recorded grocery tour
  3. DIY Grocery Calculator
  4. Each plan comes with it’s own list for each week
  5. Bargain grocery shopping training
  6. Grocery Buddy System
  7. Pre-made insta-cart grocery carts for delivery
  8. And a check-in via text weekly.

Cooking→ Ready in 5min Busy Parent Cooking Guide . . . how anyone can eat healthy even if they have no time ($600 value from getting 200 hours per year back — that’s four weeks of work!)

1-on-1 Nutrition Orientation where I explain how to use…
Meal Prep Instructions
DIY Meal Prep Calculator
Each plan comes with it’s own meal prep instructions for each week
Meal prep buddy system
Healthy snacks in under 5min guide
A weekly post they make to tag me for feedback

The bundle does three core things (Much more valuable than the average offer):
  1. Solves all the perceived problems (not just some)
  2. Gives you the conviction that what you’re selling is one of a kind (very important)
  3. Makes it impossible to compare or confuse your business or offering with the one down the street”
All to create a valuable offer that is differentiated and unable to be compared to anything else in the marketplace = Unique = No More Commoditization = Prospects Only Make A value based decision rather than a price based one on whether they should buy from us.

--------

Do start today, if you only had today, what would you go on to do?
 
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MJ DeMarco

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Wow, looks like an incredible value bomb, something I have to bookmark later for a full, patient read.
 

MJ DeMarco

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Waiting for @Black_Dragon43 and/or @Kung Fu Steve to give the thumbs up, lol.

I'm about 1/3 through, not new stuff to marketing pros, but an interesting way to frame these concepts thus far. Will finish this weekend...
 
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Speed112

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Just slogged through all of this. It's a bit difficult to get through, since the info is a little disjointed and the jumps between ideas are quite sudden. Maybe I'm just tired.

I can vouch for pretty much everything in there.

This looks like a guide for leaders (who want to do it themselves) and how to implement sales psychology into scaling their business. This is how I think about my sales pages (like those 20k word financial newsletter ones), not necessarily all offers.
I actually recorded a video interview today and my pitch at the end followed the |dream outcome -> reduced time window -> increased chance of success| formula outlined above.

The desire stuff is sound. The outcome stuff is sound. The action stuff is sound. The value stuff is sound...

Everything is sound from my experience.

I like the tables.

The only thing that struck me as odd was the glossing over the starving market. How do you find it? How do you position yourself within it? Where's the lemonade stand in the middle of a beach on a hot sunny day analogy? :D

Great synthesis.

I'm sure the book more than adequately fills in the gaps for those who aren't familiar with these topics, which makes me think it's a great book.

Nothing really popped out as new to me, but, well... we've already figured these things out in the 20s... 100 years ago.

There's some Cialdini stuff. There's some Pareto stuff. There's some rule of 10 stuff.

Comprehensive. Reassuring. Tickles my confirmation bias. Maybe this field has room for some innovation hmm...
 

Edgar King

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Nah I agree, coherency definitely needs more work, I think it turned out this way because I wrote it in notes form as a kind of quick checklist for product launches. The book and videos he publishes definitely fills in the gaps (acquisition Alex website), and for those new to this I recommend watching/reading Alex stuff and then coming back to this for quick references so it makes more sense. Moreso, didn't want to spend forever editing it and just wanted to get something out there, but if someone wants to volunteer to do that, that sounds Gucci!

As for the starving market part, just wrote it in because I thought it made sense in the context, but looking back I probably just did it because it sounded nice XD
 

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Waiting for @Black_Dragon43 and/or @Kung Fu Steve to give the thumbs up, lol.

I'm about 1/3 through, not new stuff to marketing pros, but an interesting way to frame these concepts thus far. Will finish this weekend...
Better read Alex's book and then as a review watch his course. It's very well-structured and super educational in that nice old school direct response marketing kind of way. As I'm reading the book now (I watched the course first) I'm getting nostalgic as I used to study direct response marketing a lot in the past.
 
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Better read Alex's book and then as a review watch his course. It's very well-structured and super educational in that nice old school direct response marketing kind of way. As I'm reading the book now (I watched the course first) I'm getting nostalgic as I used to study direct response marketing a lot in the past.
Just curious MTF, what are your thoughts on direct response marketing as opposed to more traditional brand building advertising?
 

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Just curious MTF, what are your thoughts on direct response marketing as opposed to more traditional brand building advertising?

I love direct response marketing for how logical and precise it is once you figure out the numbers. It's the closest thing to a (legal) money printer there is. I understand why certain people prefer brand building (status, coolness, etc.) but IMO if you want to scale fast and in a predictable way, direct response is the only way to go (once you figure out the right offer of course). Direct response is simple and very rational (something which appeals to me a LOT) but it's definitely not easy.

Many years ago I used to study direct response marketing like a maniac. I loved reading Gary Halbert's stuff (his newsletter was GOLD), John Carlton's stuff (Gary's good buddy), Jay Abraham's stuff and all the old school books and ads.

I kind of feel like going back to it now and perhaps starting a new progress thread just sharing my notes as I revisit all this incredible stuff.
 

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Nice @MTF let me know if you do, I’ll be sure to follow!

Imo, direct response works because fundamentally it hinges on two things: finding a hungry market, and delivering them a new opportunity. It ultimately is about learning how to study markets and apply that knowledge to create value skews, which can lead to rapid cash flow.

However - in the long run, having a brand wins (not that this is opposite to direct response - you can build a brand thru direct response). A brand allows you to sell pretty much anything to your audience. Guys like Dan Kennedy ultimately built brands - in this case the NO BS brand which allowed him to sell a multitude of products that he would never have managed to sell without.
 
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Speed112

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Imo, direct response works because fundamentally it hinges on two things: finding a hungry market, and delivering them a new opportunity.
Yes! This is why I was surprised the starving market aspect was just mentioned and then moved away from. It's even explained that it accounts for 40% of a successful offer, while the copy is just 20%.

The guide is definitely more about the delivery, but in this case I would say, instead of "new opportunity", delivering a transformation in accordance with their desires.

A strong brand is cheating. It's like having a monopoly.

In a monopoly context, free market principles and sales/commerce understanding change drastically. It's like doing science near absolute zero temperature.

The point of niching down really hard and creating value skew for a particular audience is to basically position yourself as the only reasonable supplier of the solution in the mind of said audience. You're monopolizing them and creating raving fans. Because you're unique.

There are a lot of smartphones out there, some better than others, at more affordable prices or with nicer facilities. There are a lot of other tools that solve the same needs at smartphones as well. So the smartphone market is quite competitive...

And yet you've got people sitting in line for days and camping in front of the store, because to them the new iPhone is not just a smartphone or something that solves the need for a portable computer that can make and take calls. To them it's something special that they're willing to sacrifice days and nights for, without even knowing how good of a product it is.

That's a person who has surpassed the standard direct response customer lifecycle, and has ascended to something more.

Beyond retention and expansion... lies Adoration.

Direct Response gets people in the door, keeps people coming back, makes them bring others. But you need a strong symbol, cause, purpose, and meaning to get those people to follow you to the end of the world. That's the brand.
 

Edgar King

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"Find an underserved market (Starving crowd). Solve their problems."

About this part I do want to chip in a bit more about it.

In the context of the guide, perhaps it's just finding all the steps your customer will take with your offer, and solving problems of those steps no one else is solving on those steps. Since you'd be solving problems no one else it talking about. Which essentially would be the starving crowd, because your market is underserved in that area? That's my understanding about it anyway.
 

Black_Dragon43

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"Find an underserved market (Starving crowd). Solve their problems."

About this part I do want to chip in a bit more about it.

In the context of the guide, perhaps it's just finding all the steps your customer will take with your offer, and solving problems of those steps no one else is solving on those steps. Since you'd be solving problems no one else it talking about. Which essentially would be the starving crowd, because your market is underserved in that area? That's my understanding about it anyway.
Imo that leads just to improvement, but positioning, which is what ultimately this is about, is creating an entirely new category in that niche (Jack Trout & Al Ries’s term). People call this different things - because they are doing what copywriters and marketers have ALWAYS done - ie, positioning. Reselling you the same exact thing in 1001 forms so that it looks like a new opportunity to you instead of the same old.

Look at the following concepts/books:
• Positioning by Al Ries/Jack Trout
• Play Bigger by Al Ramadan et al.
• Blue Ocean Strategy by I forget their names
• Expert Secrets by Russell Brunson
• Breakthrough Advertising by Gene Schwartz
• On Advertising by David Ogilvy
• Zero to One by Peter Thiel

Positioning calls it creating your category.
Play Bigger calls it category design.
Blue Ocean Strategy calls it a blue ocean.
Russell calls it a new opportunity
Breakthrough Advertising calls it a unique mechanism
On Advertising calls it The Big Idea
Zero to One calls it 10x rather than n+1

These people are reselling you the same thing in a new form.

So the starving crowd -> that’s the market. Take the market for weight loss… they can’t lose weight, they are starving for a solution. If you tell them eat less and exercise more, they wouldn’t buy, because hey! I’ve tried that before, and it failed. Now if you position your product as some super food that makes it easy to exercise and gives you all the nutrients so that you never feel hungry again - now you’re onto something. Now you’ve got a new opportunity or you’ve positioned your product differently from the competition, so that you stand out. Maybe what you’re selling is the same thing you’d sell if you told them eat less and exercise more through a diet. But the ANGLE is different, and that makes all the difference. (This, btw is my favorite term for it -> angle).

So in both cases - the bland one, and the nice angle you have the same hungry crowd. But in one case, the hungry crowd doesn’t believe you, so they tell you to f*ck off u fake guru!!

See, these terms mean the same thing, but some confuse rather than reveal the essence.

Let’s remember Eugene Schwartz’s market evolution dynamics… the 5 stages of market sophistication. Unique mechanisms and direct response work in the short run, but once a market reaches stage 5 -> then the only thing that works is IDENTITY - building a brand. Consumers become sophisticated and it becomes harder and harder to get them to believe your claims. Branding is built through effective positioning that is sustained over time, especially when backed up by a cause and an identity people can take on.

Also let’s remember Blair Warren’s One Sentence Persuasion Course:
People will do anything for those who encourage their dreams, justify their failures, allay their fears, confirm their suspicions, and help them throw rocks at their enemies.”

If you offer people an improvement, just solve a couple of problems extra, that makes them feel they were wrong in their previous choice… meaning it doesn’t justify their failure, it tells them “you retard, why did you do that?!”

So you’ve got people reselling you the same thing from many different angles. Here’s two primary ones:
• Marketing angles (like positioning, category design)
• Product angles (10x, blue ocean)

I prefer MARKETING ANGLES, because the fundamentals are really the same. Thinking from a product angle makes you think that the fundamentals are somehow different. Just a matter of optics, I think certain terms, because of the metaphors we associate with them, give you better optics.
 
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Kung Fu Steve

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Waiting for @Black_Dragon43 and/or @Kung Fu Steve to give the thumbs up, lol.

I'm about 1/3 through, not new stuff to marketing pros, but an interesting way to frame these concepts thus far. Will finish this weekend...

I'm a fan, yes.

Dude does $90 million a year. Better than a poke in the eye with a sharp stick.
 

Edgar King

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Imo that leads just to improvement, but positioning, which is what ultimately this is about, is creating an entirely new category in that niche (Jack Trout & Al Ries’s term). People call this different things - because they are doing what copywriters and marketers have ALWAYS done - ie, positioning. Reselling you the same exact thing in 1001 forms so that it looks like a new opportunity to you instead of the same old.

Look at the following concepts/books:
• Positioning by Al Ries/Jack Trout
• Play Bigger by Al Ramadan et al.
• Blue Ocean Strategy by I forget their names
• Expert Secrets by Russell Brunson
• Breakthrough Advertising by Gene Schwartz
• On Advertising by David Ogilvy
• Zero to One by Peter Thiel

Positioning calls it creating your category.
Play Bigger calls it category design.
Blue Ocean Strategy calls it a blue ocean.
Russell calls it a new opportunity
Breakthrough Advertising calls it a unique mechanism
On Advertising calls it The Big Idea
Zero to One calls it 10x rather than n+1

These people are reselling you the same thing in a new form.

So the starving crowd -> that’s the market. Take the market for weight loss… they can’t lose weight, they are starving for a solution. If you tell them eat less and exercise more, they wouldn’t buy, because hey! I’ve tried that before, and it failed. Now if you position your product as some super food that makes it easy to exercise and gives you all the nutrients so that you never feel hungry again - now you’re onto something. Now you’ve got a new opportunity or you’ve positioned your product differently from the competition, so that you stand out. Maybe what you’re selling is the same thing you’d sell if you told them eat less and exercise more through a diet. But the ANGLE is different, and that makes all the difference. (This, btw is my favorite term for it -> angle).

So in both cases - the bland one, and the nice angle you have the same hungry crowd. But in one case, the hungry crowd doesn’t believe you, so they tell you to f*ck off u fake guru!!

See, these terms mean the same thing, but some confuse rather than reveal the essence.

Let’s remember Eugene Schwartz’s market evolution dynamics… the 5 stages of market sophistication. Unique mechanisms and direct response work in the short run, but once a market reaches stage 5 -> then the only thing that works is IDENTITY - building a brand. Consumers become sophisticated and it becomes harder and harder to get them to believe your claims. Branding is built through effective positioning that is sustained over time, especially when backed up by a cause and an identity people can take on.

Also let’s remember Blair Warren’s One Sentence Persuasion Course:
People will do anything for those who encourage their dreams, justify their failures, allay their fears, confirm their suspicions, and help them throw rocks at their enemies.”

If you offer people an improvement, just solve a couple of problems extra, that makes them feel they were wrong in their previous choice… meaning it doesn’t justify their failure, it tells them “you retard, why did you do that?!”

So you’ve got people reselling you the same thing from many different angles. Here’s two primary ones:
• Marketing angles (like positioning, category design)
• Product angles (10x, blue ocean)

I prefer MARKETING ANGLES, because the fundamentals are really the same. Thinking from a product angle makes you think that the fundamentals are somehow different. Just a matter of optics, I think certain terms, because of the metaphors we associate with them, give you better optics.
Apologies, I haven't read most if any of those books, so pardon my ignorance.

Reading what you said carefully leads me to believe "Positioning" boils down to

Dream outcome + Inherent value upgrade + Walks and talks differently from marketplace offers (new form) or Action to justify Inherent value upgrade

So for example, Uber. Gets me from one place to another (Dream outcome), at less time (time delay upgrade), by allowing all drivers on the app to help me get to my destination rather than just company employees (Justification of value upgrade).

Or the Roomba vacuum. Cleans my floor just like any other vacuum cleaner (Dream outcome), at less effort (Effort and sacrifice upgrade), by cleaning the floors for me whenever they get dirty (Justification of value upgrade).

Or your super food example (E.G. Black Dragon Nut bar). Leads me to loose weight (Dream outcome), at less effort by making exercise and dieting easier (Effort and sacrifice upgrade), by (Random stuff here) filling me with the right proportions of proteins and carbohydrates to keep me energised and fuller at the same time (Justification of value upgrade through real world noun to noun interaction).
 
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TheRealSamWalton

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Alex Hormozi and his wife Leila's channels are two of the best, most underrated on YouTube right now. I believe he's got about 100k subscribers and she's got less than 10k. It blows my mind given all the value on there.

Alex starts all his videos by saying "My name is Alex Hormozi, I own Acquisition.com, we did 80 million dollars in revenue last year and I have nothing to sell you." I love it.

He did recently do a long video with Grant Cardone which admittedly makes me raise my eyebrows a bit, but I haven't watched it so I'm doing my best not to judge.
 
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smithsta

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I’ve read Alex Hormozi’s book twice within about 3 months. Second time to go through with greater detail and take more notes.

Highly recommend it and Alex YT channel. He has a great way of breaking things down and making them easily understandable.

Looking forward to his other books!
 

MJ DeMarco

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Alex starts all his videos by saying "My name is Alex Hormozi, I own Acquisition.com, we did 80 million dollars in revenue last year and I have nothing to sell you."

But he is selling something, he's selling his expertise in exchange for ground-floor shareholder ownership into a company that's already making millions and has the potential for a future asymmetrical event. The business model is brilliant because he gets to say, "I'm not selling anything" when in actuality, he's deploying a lead magnet to attract early stage entrepreneurs with high probabilities for exit events.

As he writes on his own channel...

*WORK 1-on-1 WITH ALEX*: If you are ABOVE $3M-$10M per year (at minimum), we would LOVE to invest in your business. If that is of interest to you - go to Acquisition.com. You can apply to become a portfolio company at Acquisition.com/consulting.

He did recently do a long video with Grant Cardone which admittedly makes me raise my eyebrows a bit

+1
 

Mathuin

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But he is selling something, he's selling his expertise in exchange for ground-floor shareholder ownership into a company that's already making millions and has the potential for a future asymmetrical event. The business model is brilliant because he gets to say, "I'm not selling anything" when in actuality, he's deploying a lead magnet to attract early stage entrepreneurs with high probabilities for exit events.

As he writes on his own channel...





+1
Agreed.

Personally, I'm not buying the "I just don't want anymore broke people" stuff, especially after that interview and what seems like some sort of "mentor/mentee' relationship.

Watched the first 20 mins of it but I want to punch my monitor everytime I see 'Uncle G' so I stopped watching.

There's a lot of wolves in sheeps clothing in this space.

Might see him do some sort of 'private equity fund' utilizing his personal brand, like Tai Lopez and Cardone Capital.

Happy to be proven wrong & I'll try & keep an open mind.
 
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Black_Dragon43

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But he is selling something, he's selling his expertise in exchange for ground-floor shareholder ownership into a company that's already making millions and has the potential for a future asymmetrical event. The business model is brilliant because he gets to say, "I'm not selling anything" when in actuality, he's deploying a lead magnet to attract early stage entrepreneurs with high probabilities for exit events.
Even if he were not selling anything, he is still brand-building which can be setting up the platform for selling something further down the line.

I understand why he says in his material he’s not selling anything - he’s afraid he’ll be labeled as a guru.

I think the whole guru stuff is overblown nowadays… yes, the claims gurus make are blown out of proportion for the AVERAGE person who takes their course. The average person has very little likelihood to obtain those results in the timeframe given. I will say the same things about Alex’s stuff. I can bet that the average person who reads his $100M Offers will get NO RESULTS, even if they do make an attempt or several attempts.

But nowadays, I feel this guru hatred is taken to an extreme - the marketing claims are hyperbolic and exagerated and therefore the material sucks and isn’t worth the money - which isn’t always the case. I can speak about this as I bought a lot of their courses, since I’m in the space and many of them are or were my competitors. Their material doesn’t suck, more often than not. Some of it is excellent. But most people are still not going to make a success out of it.

Based on their communities, the ones who DO make a success out of it are those who already have a few years of experience, have a solid network built up, and/or specific industry knowledge. But you can’t just enter a new industry with no network, no expertise or anything and expect instant success. That’s on the people buying the courses imo.

For example, there are some excellent courses on building a coaching business from scratch. But you get people coming in with 0 coaching experience, 0 results for clients, expecting that they can just install a sales and marketing system and make bank… instead of, for example, working for free first to BUILD UP their results, and then install the sales and marketing system to scale…
 

Mathuin

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I can bet that the average person who reads his $100M Offers will get NO RESULTS, even if they do make an attempt or several attempts
I remember Alex Becker said this was the reason why he quit selling "How to make money" beginner products. He said the average buyer won't succeed not because of the content in the course but because of their own mentality. He transitioned into only doing consulting for businesses doing big numbers on YT.

View: https://www.youtube.com/watch?v=whAnrjom7bU
 

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I remember Alex Becker said this was the reason why he quit selling "How to make money" beginner products. He said the average buyer won't succeed not because of the content in the course but because of their own mentality. He transitioned into only doing consulting for businesses doing big numbers on YT.

View: https://www.youtube.com/watch?v=whAnrjom7bU
Yeah, you've showed me the video before I think? I've watched it.

I agree and disagree with Becker.

Depends what you mean by mentality / mindset.

When you say those words, the first thing I think about is Tony Robbins motivational stuff, believing you can do it, positivity, you can achieve anything, removing limiting beliefs. Yadda yadda right?

And I think most people think of the same thing when hearing the word mindset?

So I don't think lack of this type of mindset above is what causes people to fail. Imo, the world is full of people who believe they can do it, who tell themselves they can achieve anything, who believe it's possible for them, and so on so forth. If anything, I think this "mindset" is part of the problem.

The problem is that, as Dan Pena would say, it's NOT possible for them, realistically. At least not how they're now. They need to evolve. And that means not self belief, but acquiring the right knowledge, which takes time and effort, applied consistently. Now, I'm not sure that this latter thing should be called mindset... to me it's more about expectations, and understanding how things work. Understanding what actions, consistently applied, lead to success, and understanding how long it will take.

Becker's take on Dopamine & rewiring the brain, to make their beds, etc. - I can agree with parts of that. However, I think change is always painful, and you're never going to be 100% motivated all the time. Thinking that you're going to quit video games, and quit porn and whatever and you're gonna wake up 100% motivated every day, IS BULLSHIT! You don't even need to quite video games and porn to be successful. Really, you don't.

It's about cultivating discipline, and also following your bliss so to speak... which isn't the same as following your passion (which is more like saying I want to get paid for doing X, regardless of what the market thinks) but rather following your natural inclinations (which is like saying I want to find something valuable that I can do with Y skill). If you hate what you're doing, you have no chance at all, UNLESS, and this isn't the case for most people, you really do have a fire under your a$$ (you have a starving son/daughter, everyone relies on you, etc.) - in which case you may become successful, but becoming happier will be a lot harder.

I see this as a road towards self-discovery. Find out who YOU are. What makes YOU tick. And then find a way to provide what the world needs using your unique talents and abilities.
 
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MaciekWado

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Provide Relative Value. Relative To The Market.

Value is helping me move me from point A (Inferno), to point B (Heaven) which I care to be at (Desired Outcome).​


Introduction And Thanks (You Can Skip This)
I wish to start by saying, Hello! My name's Edgar and I'm an avid scribe to find the truth of how the world and humans work (beep boop). In my quest for a model that would allow me to make a positive difference in the lives of others (Value) I was recommended this fantastic book by my very good friend @Miketing, called $100M offers by Alex Hormozi. Thank you so so so much buddy! I'd even recommend you save this thread for later, and go buy it and read it if you plan on becoming a successful business owner. You should think of this post as a recap of sorts.

This book helped open my eyes to the what causes humans to buy things and what makes one offer more valuable than the other. Thank you Alex! I won't go into details why you should care about what this man says, but I'll just say he's known as the 100 million dollar man for a reason and he helps other multi million dollar companies grow and exit at 30 million dollars+ without messing up. Anyway, I felt this model could be expanded to include relationships, personal life and more due to my readings from Cashvertising on the basic desires and other tid bits about marketing I've learned over the months.

I've been working on this post for WEEKS (due to wanting it to be presented in an almost perfect light), thankfully, Mike's been nudging me to post it, and I finally came through. I've carefully written the key points he said in his book and in his videos aimed at beginners of value (Which means, this post won't go deep if at all into scarcity and bonuses which go into marketing mostly. Which is why I recommend you read his book before or after this.) I've also added a explanations from my limited copy background that hopefully explains the behind the scenes of this multi million dollar crafting technique. But where one may see a technique, I see a lifestyle.

There will be a preliminary explanation of human behaviour so you can understand the why of this may be as well. Plus some extra explanations which I thought would aid understanding. Let's get right into the meat of it shall we? For dummies at providing value (like me).

Ooga Boogaloos... Why People Buy? Why People act like People? Why People do thing?


Pain is an indicator of damage to your physical or mental being.

The brain works by connecting ideas to each other. When you think of an idea (Which is a noun), the brain brings up related ideas (nouns). The brain always conjures nouns in the form of mental images.

E.G. Pink mouse.

We can conceptualize nouns as static images, and note that (most) verbs are associated with a change in an image (a noun) over time. I dare say, it’s how humans comprehend the world.

Actions are therefore, just noun to verb to noun activity for example.

Action: Noun to verb to noun activity. (These actions realize the reaction. No realization = unreachable reaction)

Reaction: Noun to verb activity | Noun to verb to noun activity (Validate the action. No validation = Action is useless)

E.G. Pink mouse was the action, your reaction is therefore thinking about pink mouse.

A better example. The name of this post is, "Dummy Guide To VALUE: Craft Million Dollar Offers And Great Relationships (Alex Hormozi: The 100 Million Dollar Man)". Where 1) "Dummy Guide To Value" is the action, and 2) "Craft Million Dollar Offers And Great Relationships" is the supposed reaction. The final spice is 3) "Alex Hormozi: The 100 Million Dollar Man" which I like to call, value upgrades which we'll get to below. It lends credibility to my message by increasing your perception of the probability you'll actually be able to pull this off by showing you someone who has achieved it before with this supposed offer. 2) Is where you want to be (Reaction to my offer), 1) is basically my offer in this context (Action), and 3) differentiates my offer making it essentially one of a kind. More below.
Hi, Thanks for your lengthy article. It's clear you put a lot of effort into it. Double thanks!

I started reading, but I stuck at your explanation that, is confusing a bit.

Now, it may be me, not understanding something.

Or maybe you just weren't able to pass this from your brain on paper(it happens).

Either way, if you may elaborate more on the below. Would be much appreciated.
"We can conceptualize nouns as static images and note that (most) verbs are associated with a change in an image (a noun) over time. I dare say, it’s how humans comprehend the world."

I wouldn't say so; take, for example, blind people. They conceptualize nouns not using an "image" method. I would say people comprehend the world based on experiences and emotions.

Look how children learn about the world. They touch, they smell, they lick, they look, they hear. All senses are working in help to understanding. If you say grilled fish, I primarily in my mind have smell and test of it and image as secondary.

Some nouns you already see in action as your definition of it, not static images.

I would rather say humans operate on the emotional and experience level.

Take money, for example; for some, they are the primary goal, for some root of all evil for other(most people on this forum) freedom.

Our perceives are based on emotion and experience.

If you saw someone using money to do something bad, you likely think they are the root of all evil if you don't have other histories with money equally strong emotionally).

Why do people here (some after the MJ book) shift their thinking about money? See how MJ pass his emotion and experience to us.

He is not using his money for bad things; equally, he doesn't use them to change the world(most of us wouldn't either). He uses them mainly for freedom, and he does what he wants to do.

Now you see money giving you comfort. It is emotional level also based on the experience of MJ(and we trust him, other way, no one of us would believe his experiences).




"Actions are therefore, just noun to verb to noun activity for example."



This part is what confuses me the most.

Why do you think about actions in terms of "noun to verb to noun"?

Verb alone describes the action.

"Verbs are words that show an action (sing)..."

You also wrote about change to the state of nouns,

Yet when I'm starring at the wall(I'm not changing it, I’m changing my state, not the wall).

noun to verb to noun will be a result of the action, not the action itself.

We can look a this like

I'm starting at the wall.

But this doesn't describe only action but also the agent and object of the action.

'Dummy Guide To Value" Is the end result of taking action.

After reading it (action), you will be more knowledgeable about value(result).

and "Craft Million Dollar Offers And Great Relationships "

is the complement of this result.

In other words: What are the implications of me being more knowledgeable about value?

I will be able to "Craft Million Dollar Offers And Great Relationships"



"Action: Noun to verb to noun activity. (These actions realize the reaction. No realization = unreachable reaction)"

If I correctly understand, here you state that actions are making reactions real?

That they are agents that execute reaction?

We could say that. But I wouldn't say "unreachable reaction."

Rather unfulfilled reaction. For example: going down the street, I saw a shop window with pizza, my reaction: monkey see monkey want. The reaction I want, the action I'm going in. unfortunately shop is closed. So I reached the reaction (do it) yet didn't get the end result pizza, so my reaction is unfulfilled, not unreachable.


"Reaction: Noun to verb activity | Noun to verb to noun activity (Validate the action. No validation = Action is useless)."

Again, I don't follow your reasoning: "Noun to verb activity | Noun to verb to noun activity "

I would argue that Validation comes before reaction.

How we react depends on how we perceive it(i.e., validate).

Some are inborn. Like when you hear a sudden noise, you are looking at it, not validating if you should; the reaction followed by action is instant.

There is of course notion of reaction in newton's law where objects react based on our action.

But I don't think this is what you have in mind here.



"Validate the action. No validation = Action is useless"

Also, the reaction is solely responsible for taking action

If there is no validation to do something, our reaction will be to do something else.

It is something like this(simplified):

Stimuli > recording > processing > validation > reaction > action > result.



"E.G., Pink mouse was the action, your reaction is therefore thinking about pink mouse."

The pink mouse is here stimuli and result.

The reaction was to take action of thinking about the pink mouse.



Or in other words, your action (mentioning) the pink mouse caused the reaction (me starting action of thinking about it), which resulted in me having the pink mouse in my mind now.





I would say all process is more complicated.

There are many actions and reactions taking place.

Notice how I use in my example primitive mental process:

monkey see monkey want. It implies that people make binary decisions. Either monkey wants or monkey doesn't.

Yet we know it is more complicated than that.



I would rather perceive the whole topic:
"Why People Buy? Why People act like People? Why People do thing?"



in terms not of the binary decisions.
But rather decision trees.

Or complex IF function.

In conclusion:

I think that you tried to chunk this complex topic and simplified it to the most basic form.

Maybe in your head, you have it better structured than on paper(which happens to the best).



As I said, there is also the equal possibility that maybe I missed something.

Please elaborate on this more in either case.

Particularly your logic behind action and reaction as it grasps my attention.

Thanks in advance!

Also, good work trying to conquer this complicated subject!



On the weekend, having more time, I will dive deeper and try to finish it!
 

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