🚀 The "Value Equation"

I learned this from Alex Hormozi...

👆🏼You can listen it, up here 🎧:

⏳ Current status

👥 Active users: 1530
📝 New Developments: Performance update ⚡️
⏰ Time it took to write: 4 hours 39 minutes

The first week where we had fewer users. A lot of people on Twitter said that January is always like this, but it was still like a slap for us. 😔

One that made us even more aware that we need to take Retention (i.e., how long people stay) even more seriously.

The guys were just here with me over the weekend and we did a lot of brainstorming about what exactly we should improve. As usual, the big whiteboard was brought out and we filled it 2x (there will be a picture of it) 😉

In today's letter, I'm going to show you a "Equation" that I learned from Alex Hormozi and you can use it to guide the success of your entire business. 🏆

This is the: Value Equation 🧪

But first...

🚀 How's the challenge?

🔮 This week we're going to get into the Magic Link

So, from now on, the problems with Password will be solved (hopefully). We'll test it a few times before, but I always grit my teeth before an update like this. In the world of technology, anything can go wrong and a bug like this would be CRITICAL.

🤖 AI consultations

In our letter last week, we weren't kidding when we talked about "Talking Books". The goal is to have all the books as a Mentor to be able to answer your questions. That is why consultations with AI experts have already started. Both on Hungarian and foreign lines.

🚨 Notifications coming soon

Relax, it will be set to 1-2 notifications per day max. We won't be the next Duolingo... 😈 Although I add it works quite well for them, because Kinga always gets scared and does the lesson of the day instead. We just need our own CEP (Customer Engagement Platform) to set up these notifications. Here are the ones we are planning:

• Daily book recommendations

• Finish .... this book

• X daily Streaken or just keep going

• New books that have been added

• If you have any more ideas of what else to add let me know in a comment or on my Instagram.

Okay, now we can get started!

🤨 Why is this "One Belt" important?

The answer is very simple! Because it allows us to objectively examine whether what we are doing is right?

And not just if it is good, but HOW good it is! 📈

And this is what is going to be very important for us, I will explain in a moment!

Let's see what this equation is that Alex Hormozi is talking about. 🧪

💡 Side note: Alex Hormozi is the founder of Acquisition.com and scales $3M+ companies, so he's not a dumb person. By the way, his book 100 million Offers is something brilliant, I found this equation in it.

He drew this, I have about the same level of drawing skills

So, according to Hormozi, these 4 factors determine the value of something. I'll unfold it for you one by one and you'll understand immediately:

1. 🤩 Dream Outcome = Dream you want to achieve

Is it important how big this dream is? It doesn't matter if I just want to lose 1 kg or if I want to have a plaid belly and look brutal on the beach. So, the size of the dream also affects the value of our product.

2. 🧐 Perceived Likelihood of Achievement = What are the chances of achieving this dream

If I see that this coach has already helped 100 other people make a 6 pack, I am willing to pay him much more than if I were the first one, he "experimented" on. There is an example in the book that if you are looking for a doctor for an operation, you are willing to pay much more to a doctor who has performed 10,000 operations than to one who would be the first.

3. 🥱 Time Delay = How long will it take

It's no coincidence that the vast majority of people are much more willing to pay for a liposuction than a serious exercise program. Even if the liposuction costs 30X as much and the end result is little more than the same. That's because the exercise program takes months (and a lot of energy, but more on that later) and the liposuction is done in a morning.

4. 😪 Effort & Sacrifice = How much effort and suffering it takes to achieve

Back to the liposuction example. That offer is attractive not only because you can have it in a morning, but also because you literally have to do NOTHING for it, except pay the price. Whereas in training you have to sacrifice months of time and no small amount of energy to get the shape you want.

💡 Side notes 2: I'm not a doctor, but I think the shape you get from exercise is completely different and lasts much longer and is healthier. Not to mention, exercise teaches you endurance and has a lot of positive effects. Thoughts closed.

And now comes the trick, because you have to multiply them together and then divide them. 🤔

I'll make a quick explanation. 😉

Let's use numbers 1-5.

0 - very bad

5 - for very good

🅰️ If you have a cool dream that you can achieve with a product, but the probability of achieving it is pretty low, then overall the top part of the equation would look like this.

Dream Outcome: 5

Likelihood: 1

5 x 1 = 5

🅱️ However, if you have a product that can achieve a fair dream and you have evidence that many people have achieved it using this method, the equation would look like this.

Dream Outcome: 3

Likelihood: 3

3 x 3 = 9

So, you've almost doubled the value of your product, simply by providing evidence that it can be achieved and that people believe you.

Understand so far? 🧐

Cool, then let's move on! 👍🏼

I promise it won't be complicated 5th grade math.

Now let's look at the bottom part of the equation. ⬇️

The so many changes here are that small numbers are good because, after all, the smaller you divide by, the larger the result will be. ❗️

So now I'm going to swap the values for the part below:

5 - very bad

0 - very good

🅰️ Taking the first case further, so there is a huge dream, but not a high probability that you can achieve it. (Could this be saying a... drops hipping course 😛)

However, they claim that you can make a lot of money in 1 month with a minimal investment of time. How would the equation look like.

Time Delay: 1

Effort & Sacrifice: 1 (1 because it's very good - very easy value here below)

1 x 1 = 1

✅ The whole equation is:

5 x 1

--- = 5

1 x 1

🅱️ While in case B (may this be a fair drop shipping book who doesn't lie about results) the book claims that you need to learn a lot to be successful and in about 12 months you can see your first big success.

Let's be honest, it's not very inviting, let's see how it all comes together:

Time Delay: 3 (worse than the previous one)

Effort & Sacrifice: 4 (because there's a lot to learn and it's hard)

3 x 4 = 12

✅ And the whole equation is:

3 x 3

--- = 0.75

3 x 4

Now we see why Drop shipping courses are so inviting. 😈

The result: 🅰️ 5 > 0.75 🅱️

But still, how can this be when the first part was still led by Variation B, which was more likely to succeed. 🤨

Well let's look at that in the next part.

But first a quick look ahead. 👁

If you want to see where the BookBase 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

🤔 How to take advantage of it?

Now listen up because if you understand this, you'll never have trouble putting together an inviting offer. 😱

Where most companies go wrong is when they start focusing on the top part of the equation. That is, to make the biggest Dream possible with their product and the most likely to be achieved. 🧐

Which would be a perfectly LOGICAL solution. 🧠

But people value PSYCHOLOGICAL solutions more. 💭

📕 Book recommendation.  This is exactly what Rory Sutherland's book Alchemy is about, perhaps one of the best books on marketing psychology. For me it helped me to see things differently. It's also up on BookBase, the gist of it in 17 minutes. 🎧

They want something that doesn't take a lot of time and they don't have to break their backs for it.

After all, how many people play the lottery... 🍀

The lottery equation:

5 x 1

--- = 5

1 x 1

Ultra-big win, but minimal odds, but it takes no time to x the rubrics and it's not strenuous.

While there's the business, which, with a little exaggeration, can achieve the same or more. Let's look at the equation for this.

5 x 3

--- = 0.6

5 x 5

Ultra-much money/status, there is evidence that it can be achieved, but it takes a lot of time and effort.

Simply because you have to work for it and it can take decades.

If you have come this far and understood, I must congratulate you, because it was not easy! 😉

For us at BookBase, we need to focus on achieving your goals in as little time and with as little energy as possible. 🚀

That's why we have abridged books or audiobooks.
And soon AI Mentors, but more on that in a psst... 🤫

Now this is how the BookBase will be just a bit nicer 😉

Developments in the coming months will all focus on this. ⚙️

Here are just a few from the weekend brainstorming session:

The guys and I filled the board 2x over the weekend. 🖍

The ones that I think are going to be very big are:

• Daily Quests ☀️

• AI Mentors 🧙🏼‍♂️

• Checklists ✅

• Accountability 🫵🏽

We are slowly getting to your favorite part, the usual Checklist at the end of the email. So, let's see...

🧐 What do you do to take advantage of this?

I'll try to simply describe step-by-step how we did it.

• See how your current service would score in the Value Equation 👀

• Either fill it out with your existing customers in a plain Google Forms questionnaire, always with questions 1-5 (just note that the numbers at the bottom of the equation change) 📝

• Be sure to focus on the bottom part of the equation first, see which of the Time and Energy categories you could change faster ⬇️

• Write a list of what you think you could improve that would result in a better score (which in this case is less) ✏️

• Send the list to your customers and let them score whether they think these solutions would really help 📩

• Once you have that, start implementing the best solution 🛠

• Repeat step 4 for the other category (Time or Energy) ♻️

And only then, can you focus on the top part of the equation!

Increasing the size of the dream is a bit harder and depends a lot on your product, but you can increase your "Chance of Success" with many things. I'll list a few for you:

• Reviews

• Screenshots of your customers' results

• Reviews Videos - Selfie from your customers

• Companies you've worked with, Display logos if you can

• How many people have you helped so far - in numbers

• Portfolio of work, reference pages

• Case Studies - Case Studies

These are what are known as "Social Proofs", also known as social proofs, which can help convince customers. Seeing them will make them more likely to believe that they have a chance of achieving these results.

📕 Book recommendation. the miracle book "Influence" by Robert Cialdini, perfectly illustrates the 6 factors that companies use to influence us.  It's no coincidence that one of them is "Social Proof".

🔥 Challenge

The biggest challenge for us right now is to find the best AI experts who can advise us on where to go next in the talking books category (not for free, of course)

😅 Fun Fact: There was an American "guy" who was doing a similar side project and we wrote him an email; he replied shortly after and we had a very casual email chat. It turned out that he is the founder of Gumroad, a company that has made $500,000,000 in sales so far (a bit more than the entire fortune of Lőrinc Mészáros).

That's the gross thing about the internet, and the fact that such successful people walk the earth and don't fly off the handle. It was an incredibly positive experience!

So, if you know such a person (Hungarian or foreign) who is working in this field, please let me know in a comment or on my Instagram.

You could help us a lot!

📖 What have I read now?

• I have Alex Hormozi's book $100 Million Offers in my hands right now. I learned this equation from it. The whole book is about Offers and how to make an offer that people can't refuse 💰

  • I plan to write a Post from it as soon as I finish it, showing step-by-step how to make such an offer.

  • I had a good year with the Almanack of Naval Ravikant and $100 Million Offers. They were exactly the kind of books that can help me NOW. 🫴🏼

🎧 What have I just listened to?

• There's a freshly picked up guy on Social Median who I hadn't heard of, but Kokesz recommended I check him out. His name is Luke Belmar and he made his fortune from Crypto. He's a couple of years younger than me I think, but he's got a pretty good outlook on life (he exaggerates a thing or two, but overall, he's really not bad). 🚀

  • Geri and I decided to make a YouTube Mini Documentary where we will fully explore an important topic. You all helped us to choose it on Instagram and the topic is "How to escape the Matrix". 🪬

  • And back to the basic concept, Luke Belmar just came out with a podcast of this conversation where they discussed the same topic and I listened to it to see if I could find some info that we could use.

It's a bit long, but I think it's worth listening to while training or driving. I'll link it here for you. 🎞

✍🏼 Top quote

"Price is what you pay, value is what you get." ~ Warren Buffet

🧪 Question of the week: