🚀 How to make a $100 Million Offer

The offer that can't be refused...

👆🏼 You can listen, up here 🎧:

⏳ Current status

👥 Active users: 1540
📝 New Developments: design system
⏰ Time it took to write: 7 hours 14 minutes

🚨 Important note at the top of the email:

Since this is a pretty long email so some mail clients (Gmail, Outlook, etc.) may truncate the end of the email.

But you can click on "View full message" to see the full email.

Not everyone will have this problem, but if you do, this is how to fix it!

I promised that as soon as I'm done with the $100 Million Offers, I'll do a comprehensive Post on how to apply this.

In today's Post, we'll go through all the steps and at the end we'll make an offer that can't be refused (imagine that in such a low Mafia-like tone)

So, fasten your seatbelt because I'm taking you on a serious journey!

But before we get started, let's see...

🚀 How's the challenge going?

🎨 Getting into the Design System

Which will result in a smoother app. Not a huge improvement for us by the way, as Kokesz has built a pretty serious system and you already know that Systems are the foundation of big companies! From now on we can change the App colors from the Dashboard if we want!

Cool 😉

⚡️ Faster loading

On my phone it takes about 1.5 seconds for the App to load, but I've had it under 1 second on Edu's phone. The goal is to get the loading speed down to under 1 second on everyone's phone. Just for comparison, so far, it's been 10+. So, it will be quite a big word if it works!

🖍 Highlighting

It's in the works, Edu already showed it to me, no promises it will be in next week, but we'll do our best to speed up the process. From now on there will be no need to Screenshot, just long press on the text and BAMM will save it for you!

Now we can start!

🧐 Why is the Offer important?

The offer decides how your potential customer evaluates your situation.

That it's a "Oh my God, I can't believe this!" situation.

Or even a...

"Hmm... I'll pass on that one!"

🧱 Let's try to understand the basics:

• The higher the "imaginary value" of an offer, the more money you can ask for.

• The more money you ask for it, the more profit you'll make.

• However, above a certain level, fewer and fewer people can afford it.

In microeconomics, this is called the supply-demand curve.

💡Side note: Not incidentally, my brother just took an exam on it, so I think he's pretty much got it now! But I have to point out that it wasn't my teachers, because they were very professional and prepared, but unfortunately the material they had to teach was outdated.

So, by default, it looks like this!

On a theoretical level, there is always an optimal price that is already high enough to be profitable, but not too high to discourage buyers.

Let's quickly look at 2 examples of the Demand-Supply curve.

🍫 Chocolate is a cheap product because of this:

• The price is low 📉

• But demand is high (so many people buy it)📈

👜 A Louis Vuitton bag is expensive enough:

• The price is hyper high 📈

• The demand is relatively low 📉

💡 Side notes 2: At the time of writing this blog post, the richest man in the world is Bernard Arnault, with $213 Billion. Almost all luxury brands are associated with his name and his statement is this one:

"Luxury goods are the only area in which it is possible to make luxury margins."

~ Bernard Arnault

So, luxury products are the only area where we can make luxury profits.

Which, if you think about it logically, is true!

Let's be honest, the basic material of the bag is not 4 million forints.

The brand makes it 4 million.

💡 Side notes 3: What they often do with luxury products is that as soon as demand for them increases, they REDUCE supply. Since the supply is low, but there is a lot of interest, they can sell the products at EVEN LOWER prices. Now this is what the luxury companies are cleverly playing with. There is a saying:

"If demand increases, cut supply!" ~ Unknown
"If demand increases, immediately cut supply!"

But let's go further!

According to Hormozi, we can create a new "optimal" price, which is quite high, yet many people buy!

Now you're probably like, "What?"

You can do this by completely separating yourself from the competition and creating a new category. A category in which he is the highest value contributor and the best.

📕 Book recommendation: W. Chan Kim talks about something very similar in his book "Blue Ocean Strategy". He writes that you can only grow big if you create a separate category for yourself in which you are the biggest by default and then gradually outgrow your competitors in the other categories. It's also a brilliant book, 16 minutes to listen to in the App! 🎧

So, this is what the New Demand-Supply Curve will look like.

💡 Side notes 4: If a university professor saw this now, they wouldn't believe their eyes and give you a grade of 1 that would make them gush. Because in theory it's impossible. But the problem is that what is impossible in theory happens quite often in business. Here I would refer back to the example of Rory Sutherland, that things often have to be examined NOT logically but psychologically.

Since we have created a new category, we can now sell at a different price. Only one thing is very important, because we are asking for a lot of money, we also have to give a huge value!

Because if you ask for a lot of money and give little - that's called robbery!

But if someone asks a lot and gives even more - that is good business!

"What is expensive is not that which costs much, but that which does not return." ~ Unknown

We'll look at exactly HOW to make such an offer in a moment.

We will go through the example of the BookBase!

But first, a little insight... 👁

If you want to see where KönyvKlub is going...

Then just go ahead:

✅ Download the App by clicking here
✅ Start the 5 Day Trial
✅ Take your life to the next level thanks to the knowledge in the books

Now let's see!

🤔 How do you make an offer like this?

1️⃣ Step - Find out why so many people aren't buying from you!

• Maybe it's because you're too expensive

• Or you're just not valuable enough

• Or you communicate badly

• Or it could be because you don't solve all the problems your customers encounter, so you're only a half-solution!

📚 Example: I assume this is the case with BookBase. We couldn't solve every problem people had with reading.

2️⃣ Step - Write down all the problems your customers encounter!

This is what we did next, during a lengthy brainstorming session I wrote down all the problems a person might encounter while reading. Be forewarned, it's going to be a long list!

📚 Example:

1. Difficult to stay focused

2. Poor study habits

3. Boredom or monotony

4. Difficulty to identify the main idea of the book

5. Difficult to understand complex topics

6. Excessive amount of information

7. Not knowing what to read

8. Not knowing what to read next after having found an interesting topic

9. Not consistent enough

10. Not enough time to read

11. Lack of prior knowledge

12. Difficult to understand the writer's style

13. Can't find the books you need

14. Difficulty memorizing information

15. Does not know where to apply the knowledge

16. Cannot relate the knowledge in the book to your existing knowledge base

17. Difficult to put the information into practice

18. Unable to check that what is in the book is true

19. Lack of feedback and accountability

Now that we have listed all the problems, it is time to find solutions to them.

I know it was really hard to write this already, but I promise YOU, if you do it right, it's only enough to do it once! 😉

3️⃣ Step - We have to write solutions next to each one!

I wrote solutions because there are several types of solutions and the aim is to collect them all. Even if they seem crazy at first.

Let me give you an example:

If the problem is that you can't understand the key ideas in the book, I can give you 3 solutions!

1. 👤 We'll go through the book in person and I'll explain the key ideas.

2. 🔴 In a LIVE together we will go through the book as a group.

3. 🎞 I will record a video explaining the key ideas of the book.

The first one would have a surreal value, but also a huge cost (to me), as it would take a lot of my time. But it could easily be, say, a BookBase VIP, which would include it and for that the membership fee would be 30,000 a month.

More value, more money!

It's good to write everything down, because you can think in more ways and you might be able to put together a much more valuable offer than you originally thought.

I'll bring you a helpful chart that was in the book:

There are so many ways you can think:

• Personal, Group, Mass

• Do it Yourself, Done with You, Done for You

• SMS Support, Email, Customer Service

• Video, Podcast, Blog, LIVE

• 0-24, 9 to 5, Weekdays only

• 1/10 or 10X (I'll explain in a moment)

I think most of it was understandable, only the last one needs a little explanation, but that shouldn't be hard either! Here you need to ask 2 questions.

1. What could you give your clients if you had to charge them 10X as much and still have to make it worth their while?

2. What could you give your customers if you could only charge 1/10X the price and they had to get at least as much value as they do now?

You can describe your solutions along these lines. Again, it won't be short, but it will be worth it!

📚 Example:

Now I won't explain all of them because then the email would be so long that I wouldn't be able to send it out, so I'll just explain the first few.

1. It's hard to stay focused.

• Common sessions you could join

• You could read with a friend and pull each other up

• Working through a book together LIVE

• Upload a strip to see how many more there are

• Break the whole book into even smaller chapters

• Do not Disturb mode, a separate space where you can just progress

2. Bad study habits

• Habit design with Notifications

• Streak and reward → For example 30 Streak after Mastermind group

• Give monthly reading plan

• Someone teaches you this

  • A specific teacher to teach this

  • Small group session

  • A starter checklist to teach you how to learn most effectively

Once you have that, you can congratulate yourself, because that was the hardest task, from now on we just have to organize them. And of course, do it! 😅

4️⃣ Step - See which one has what value and how much it costs you (in time, money, energy)

This is called "Value: Cost Ratio" in English.

We will have 4 categories in total:

• High Cost

• High Value

• Low Cost

• Low Value

Next to each solution we write down which of the 2 categories it belongs to. Each solution will have a Cost and a Value category.

It will look something like this. You can also use arrows in the drawing.

❌📚 Example:

There is no example here because unfortunately I haven't gotten that far in filling it out yet. (Because I just finished the book)

5️⃣ Step (and last) - After this, we cross all solutions off the list

Which is:

• High Cost: Low Value and

• Low Cost: Low Value.

That leaves us with the solutions that fall into the High Value category. Whatever the price!

Here, we first incorporate Low-Cost solutions, which are cheap and simple, but still carry tremendous value.

Finally, we'll do a bit of math and see which High-Cost solutions we can still incorporate that we don't want to rock the boat on.

It's been a serious journey to get to this point and I believe it's already 5x knowing your current customer base.

But what would you say if I told you that we can still improve on that!?

But it's true, so tighten your seatbelts because we're going into hyper gear! 🛸

🧰 What can I use to get hyped up?

I've got 5 extras for you that will take even your revamped offer to the next level!

1. Scarcity 😱

Scarcity - Also known as FOMO "Fear of missing out" or the psychological tool of limitation to "limit the supply of products/services you can buy".

Scarcity works in the sense that "the fear of loss is stronger than the desire for gain". Therefore, you can influence interested parties to take action and take you up on your offer with the following type of scarcity:

1. Limited number of seats

2. Limited number of bonuses

3. Offers that are never available again

For services: You can limit the number of customers you can accommodate:

1. Specific business limit - "we can only serve X customers".

2. Growth rate cap - "we can only serve X new customers per month (continuously)".

   📚Example: Therefore, we are adding new systems after each level, which will make Dani's job easier in the long run.

3. Group limit - "I can only accept X customers per group".

It can be a group training or meditation or a live workshop.

Honesty is important: The most ethical and simplest deficit strategy is honesty. Simply letting people know how close you are to your upper limit creates instant recognition + (social proof) social proof.

2. Urgency 🆘

Urgency - a tool of psychological constraints to "limit the time you can buy a product/service".

The following 3 methods are the easiest to use:

1. Purchase intervals - So you can only accept new people at certain intervals. This is popularly used in the self-promotion "industry".

2. Promotional urgency - Also known as ACTION, which lasts only for a certain period of time.

3. Exploding Opportunity - I couldn't find a good English equivalent for this, it's a now or never opportunity that comes at a random time.

💡 Side notes 5: This is also used in influencing. In the Billion series, Bobby Axelroad, almost always gives people Exploding Offers like this. Because it forces them into an instant decision making. And people don't like to miss out, so they tend to make bad decisions and jump at terrible opportunities. Not every Exploding Offer is bad, but it is worth thinking 3x about whether it is worth it.

3. Bonuses 🎁

Bonus - an add-on to the original offer that "increases the value of your product/service to the customer", very effective because here you are not lowering the price to make your offer attractive, but increasing its value.

If you're selling in person, the price you say is for your base offer and if your prospect says "No", you start stacking bonuses on top of each other until the offer is...

UNRETURNABLE!

A few things to look out for in bonuses:

1. Always offer them a bonus.

2. Give each bonus a unique name (more on this soon).

3. Tell them (a) how it relates to their problem; (b) what it is exactly; (c) how you discovered or created it; and (d) how it specifically improves their life or provides them tremendous value.

4. Use statistics, case studies or personal stories to prove that each bonus adds value.

5. Show them how perfect and simple their lives would be if they used your bonus. Tell them about the benefits!

6. Give a price for each bonus and justify why it costs so much.

7. Give checklists and tools (because they are easy to use), NOT additional training. Because they only increase the time and energy invested.

8. Each bonus should solve a specific problem.

9. It's also good if the bonus solves a future problem and so your customer won't even encounter it.

10. It is extra important that each bonus increases the value of your overall offer (don't make it more difficult to achieve the goal)

11. You can increase the value of your bonuses even more if there are only a limited number of them or if they are available for a limited time.

4. Guarantees 🔒

The power of a guarantee is given by a conditional statement:

"If you don't get X result within Y time, we will do Z."

1. Unconditional - the strongest guarantee, allowing customers to try the product/service and get their money back if they don't like it.

• "No questions asked" refunds - simple but risky as all the responsibility is on you.

• Satisfaction-based refund - only kicks in if your customer is dissatisfied with your service.

2. Conditional - guarantee "Terms and Conditions"; this can include key steps that are essential to achieve the result.

• Service - free of charge until you achieve result X.

• Modified service - free for Y duration or until you achieve X.

• Offset - you offset the price of the offer against other offers (this is what shops have)

• Free cancellation - you can cancel for free if you don't get enough value from it anymore.

• Delayed instalment - you only have to pay the next instalment when your customer has achieved X amount of profit.

3. Anti-Guarantee - NO guarantee that specifically states "all purchases are final", of course with some creative justification as to why.

5. Naming - Distinguishing 🦄

We need to name our offer specifically to attract the right customers. I have 5 tips to help you do this:

• Attractive Reason: Start with a word or phrase that provides a strong reason to present the offer.

• Show your perfect customer: be specific about "who you are and are not looking for as a customer".

• Give them a goal: Explain the goal you think your customer wants to achieve.

• Give a timeframe: Give the client an expected timeframe in which they can achieve the desired goal.

• Include a filler word: Wrap your offer with a filler word (e.g., Ultimate Checklist, Calculator, Cheatsheet, etc.).

It is also important to note that when naming bonuses, it is sufficient to use only 3 out of the 5 above. This is enough to differentiate yourself from the competition.

📚Example: So accelerate your progress 7x, at a young age, in just 13 minutes a day with the help of abridged audiobooks!

🪄 Voila You're done!

I'm not saying it was easy or short, but that it can help your business a lot, I'm 110% sure!

🔥 Challenge

I don't think it's hard to guess that the biggest challenge for me right now is to get this Offer right. There are a lot of factors and it will take several afternoons. I am already on step 3, so I just need to organize them.

But even so it will take days as we are waiting for feedback.

If you have any ideas for what these should be for the BookBase or if there's something I haven't listed that you think would be cool, drop me a comment or drop me a message on my Instagram.

📖 What have I read now?

• I finished Hormozi's book, since that's what the whole post was about.

• Also, I continued with Yuval Noah Harrari's book Sapiens. You know, I'm reading the comic book version, of which there are 4 books and I'm on the 2nd one now, which is about the evolution of civilizations (my favorite category within this theme, so I'm excited to see what's in it)

🎧 What have I been listening to now?

• This won't be an everyday recommendation, but I think it's all the more useful. I will state upfront that I have never played this game. But Edu suggested I put this in the background for focus and it will help.

  • This is none other than the 10 o'clock background music for Minecraft and I swear it really helps you! I can get into Flow much easier thanks to this, try it, it will be worth it. It's up on YouTube, I'll link it here.

✍🏼 Top quote

"If you actually just try... hard, you'd be amazed at how easy it is to beat your competition." ~ Alex Hormozi

🧪 Question of the week: