Applying $100M Offers to E-Commerce: I’m Pissed

Summary

• I recently heard Sean from the My First Million podcast claim that my book "100 Million Dollar Offers" doesn't apply to e-commerce, but I disagree.
• The value equation and elements in the book are fundamental to creating offers that drive purchasing decisions in any industry by making offers more valuable than their price.
• Dream outcomes, perceived likelihood of the outcome, time delay, and effort/sacrifice are critical variables in both service-based and e-commerce offerings.
• For e-commerce, enhancing dream outcomes can be demonstrated through showcasing product versatility like Levi’s did with a jean jacket, elevating the perceived likelihood of achieving the desired result.
• Reviews are powerful tools for increasing perceived likelihood of success with a product because they provide social proof.
• Reducing time delay is as crucial in e-commerce as in service delivery. Amazon's one-day shipping is a benchmark.
• Reducing effort and sacrifice for the customer can lead to increased sales; for example, Amazon’s one-click purchase and fast shipping options.
• Enhancing value through scarcity (showing limited stock), urgency (time-limited deals), guarantees (try-before-you-buy), bonuses (additional how-to content), and naming (clearly communicating the dream outcome) are all applicable to e-commerce.
• Amazon excels in each of these areas, and e-commerce businesses should aim to adopt similar strategies to improve their offering's perceived value.
• Naming products based on what potential customers are searching for can directly address their needs and increase sales.
• It’s not just about the product itself, but how you reduce customer risk, make the purchase easier, and provide assurance and additional value that sets your offering apart.
• The strategies discussed in "100 Million Dollar Offers" can be applied to e-commerce by addressing specific needs, showcasing benefits, incorporating social proof, and adding value to enhance the customer's purchasing experience.

Video

How To Take Action

I would suggest first focusing on the dream outcome of your product. Understand what your customers really want from it. If you sell clothes, they might want to look good. If you sell tools, they might want to fix things easily. Know your product's dream outcome and talk about it a lot in your marketing.

Next, work on the perceived likelihood of achieving this outcome. Show off your positive customer reviews. They're like gold – they tell new customers, "Hey, this worked for others; it can work for you too!"

Try to reduce the time delay. People love getting things fast. Look at Amazon – they’ve set the bar high with their one-day shipping. If you can’t do one-day, just be as quick as you can. Fast shipping can make people choose you over someone else.

Make buying easy – reduce effort and sacrifice. If you've got an online shop, make sure people can pay with one click. The less they have to do to buy, the more they're going to buy.

Use value enhancers in your business. Show if you have only a few items left (scarcity) or do special time-limited deals (urgency). Have a great return policy (guarantee). Offer helpful bonuses like a how-to video for your product. Name your items by what people are searching for – it helps them find exactly what they need.

Remember, it's not just about having a great product. It's about making sure your customers know they won't regret buying it, that it's easy for them to get, and that it's going to be worth more than what they pay. That's how you apply the "100 Million Dollar Offers" strategies and make your offers standout.

Quotes by Alex Hormozi

"People buy stuff because they value them"

– Alex Hormozi

"If we understand the things that drive value, then we can understand the things that underpin price which then lead to profits"

– Alex Hormozi

"Dream outcome is people actually have to want the thing that you're delivering to them"

– Alex Hormozi

"The faster they can get people the things they want, the more that they will value and like it"

– Alex Hormozi

"By naming it properly… it's exactly what I was looking for"

– Alex Hormozi

Full Transcript

i am pissed not really but i recently uh was on a podcast a few months ago via my first million podcast uh with sam and sean great guys and we were talking about my book 100 offers which you can get on amazon kindle for 99 cents if you don't have the dollars for a hardback and i heard on a later podcast that i wasn't on that sean was saying yeah i really love the book um but it's just a bummer it doesn't apply to e-commerce and i disagree and that is why i'm making this video to break down why the value equation and the things inside of the 100 million dollar offers book which pretty much this this visual right here inc you know encapsulates or or summarizes the the vast majority of the pieces in the book and obviously there's a lot more examples and stories and there's you know a lot of five star reviews on amazon so check it out for 99 cents if you want but the main point is that these are variables that create purchasing decisions that get people to value something in order to buy it because they value it in excess of price tag and the idea here is if we understand the things that drive value then we can understand the things that underpin price which then lead to profits all right and so in the book i do give a lot of uh service based examples uh both b2b and b2c but i wanted to take this video uh to do something a little bit different and talk about how it applies to e-commerce all right because at the end of the day people buy stuff because they value them right and so the application may be somewhat different but the fundamentals and the the variables are the same okay and so quick recap on this dream outcome is people actually have to want the thing that you're delivering to them number one number two is that when they buy they will buy based on the perceived likelihood that they're actually going to get that thing so it's like a lot of people may want to get rich but they will buy the one that they think that has the highest likelihood of actually them getting there right or a lot of people might want to look skinny but they'll work with the physician that has worked with 10 000 patients rather than their first patient because they're perceived likelihood of actually getting skinny or getting the surgery they want is higher and in a very real way value it more time delay is how quickly something can happen right as between when i buy and when i get if we can compress that time horizon or that timeline the more valuable it is if i can get you a six pack in 30 days for a six pack in 30 months which one you value more of course the 30 days one so we try and compress the time horizon along how we deliver our products and services and then finally effort and sacrifice are the things that we have to start doing that we don't want to do or we have to give up doing that we do want to do as a result of the purchase and so in a perfect world we want to deliver someone the dream outcome and when they buy it because they have extremely high likelihood or they're certain that they're going to achieve that and they're going to achieve it overnight with ease right so fast easy and exactly what they want the way they want it to be delivered all right so that's what we have to think about here now in the book i talk about scarcity urgency guarantees bonuses and naming right and so what i want to do is just apply these and the easiest way to look at this and and prove out the point that this 100 applies to ecommerce is to look at the e-commerce giants all right specifically let's just look at amazon and over time they've really nailed down hitting each and every single one of these variables that drive value now if you are an e-commerce person and you're like why i can't sell on amazon well one is you can the other is that you can start thinking about it through amazon lenses and of course it's taken him 30 years to build this thing right but we can still think if this is the theoretical that we need to try and shoot for this is the ideal scene then we can start taking steps towards it to improve the value of our offerings okay cool now if let's say i wanted to buy a jacket all right so this is a very different example than my normal ones and i have other examples and services in other videos but this one is just for physical products so let's say i wanted to buy a jacket my dream outcome might be that i look good in this jacket that could be an outcome it could be that it's very warm ideally maybe it's both of those things right and i might even want a jacket that looks good and that isn't warm because i just want to wear it because i think it looks good but i don't want to get hot right so it depends on what my dream outcome is right so you're gonna have different messaging for different avatars depending on the on on the product itself and what problem it solves all right so let's just use for example that i just want a fashionable jacket that looks cool okay that's point one around what our dream outcome is great now i may be a buyer who's like but i'm not that fashionable and i don't really know how to like pair stuff and make it look cool all right so what are the ways that we can increase the perceived likelihood of achievement of me achieving this cool look all right well first off is reviews if i have lots of five star reviews on my page and i can read them then i'm more likely to make the purchase because i see other people made the purchase and are happy about it right makes sense that's why reviews amazon pioneered this and then it became commonplace because it increased the perceived likelihood of achievement right what else can we do and i actually saw this levi's did this for selling a jean jack which is why i'm giving the example because it was so masterful and how they did it what they did is that i saw this video it was uh maybe 90 seconds and it had the jean jacket and it had three different ways you can wear it and they showed here's how you pair it with dark stuff here's how you pair it with light stuff here's how you pair it with the same looking jean and blah blah and i was like wow i did not know how jean jackets work but now i do and now i know how to wear it so my perceived likelihood of achieving the dream outcome of looking cool has just gone up simply by them making a video that demonstrated it right these variables apply to services and e-commerce just the same it's just the way that we show someone how to experience the dream outcome they desire differ alright in a let's say it's a i'm teaching a skill i'm going to show somebody who has the skill showing them demonstrating the skill and the results of of having that skill right that would be increasing the perceived likelihood but if it's a physical product then we have to think what's the outcome they want and then how do we increase the likelihood that they they see that and easy ways to demonstrate it right and to literally demonstrate this is probably what you're thinking and here's how it works that's why unboxing videos and things like that work because it decreases the risk associated with making the purchase because they're like oh that's what's going to happen it decreases the other side of me swiping my card what happens after that right and as much as we can demystify what happens after they say oh i now can create expectations and then these this product will meet the expectations and i will be happy great now the next one is time to like amazon has been the pioneer of prime of two day shipping one day shipping one hour shipping right and they continue to try and drive this down because they know that the faster they can get people the things they want the more that they will value and like it and repeat buying on the platform right and so this should be a no-brainer this absolutely applies to e-commerce all right now the next one and that can also apply at different levels right there's the actual purchasing experience but then there's also the experience of using the products it depends on types of products that you have like a jacket might not have a huge time delay in terms of using it if you sold custom tailored stuff then delivering it faster or finding a way to operationalize that more quickly would be very real value right right so there's the purchasing process and then there's also the like the wearing it process all right and like unboxing and actually having them experience again the dream outcome right now finally of these four variables we have effort and sacrifice and so the purchasing decision here amazon has one click purchases with everything on file save so you can make a purchasing decision in a split second right and so that's why the rise of products like bolt and shop pay are all things that have decreased the effort and sacrifice and a lot of ecommerce stores uh have been able to use this to their advantage and make more sales right and that's because in a real way things would become more valuable so it increased the likely that people are going to buy all right but let's look at the other ratchets that i said these are inside of the book are enhancers of value they do even more to increase the value equation in your favor so that you can buy sorry you can sell more stuffs okay so let's look at amazon for example what do they have under virtually every single item how many they have left in stock is their way of showing scarcity only two left only six left only 17 left and then they have it by size right so that they can show scarcity at every single level huh what does that do it drives conversions people want to buy all right are you guys are you guys tracking with me does this feel like it applies to e-commerce let's keep going urgency what else does amazon do they have lightning deals right when you do a limited drop a limited edition drop of a t-shirt there's only 100 printed and we drop them on friday and first come first serve what does that do it gives scarcity and because you were giving a ti there's a time component it adds urgency now to really add urgency we'd say we're only selling these for an hour um but hopefully the point drives home all right but a lightning deal for example where they said we're only giving this price for for 60 minutes that is absolutely urgency all right saying how many you have left is absolutely scarcity are you guys tracking with this all right cool now guarantees so what do we do here well amazon took this one step further not only did they already have a money back guarantee right because it's satisfaction you don't have to do anything you just send it back and they made it easy to return stuff what they did now is try before you buy right so they have seven day layaway so you can buy the thing and they charge you seven days later you can literally try the thing on and not even have to get billed on the card right why'd they do that it's a version of a guarantee why because what we're doing is we're decreasing the risk of someone purchasing right that's what we're doing here we're decreasing the like we're decreasing the likelihood that they have a poor experience which as an inverse increases the likelihood that they do have a positive experience if they choose to purchase so it's like if i'm trying it on before i buy it then i'll be very darn sure that if i like it i might perceive likely to achieve achieving the outcome after i'm wearing it is very very high that's why they did it right this is an implied guarantee it's a version of guaranteed so they technically have two guarantees they have one which is the money back guarantee which has now become almost table stakes for physical products but on top of that they added in a try before you buy all right now bonuses all right some of these ones will include bonuses like the training that i said for for levi's like little videos on how you can tips and tricks on how you can use this thing right if you have a widget that's like at home health kitchen stuff having videos on how they can actually use the thing in better ways is huge if you have a supplement business for example telling people how to take the products and the best things to combine it with and what time of day and how they can make sure they don't forget it and blah blah those are all things that can be bonuses that can be perceived benefits of doing the thing right and all of this stuff goes back to these variables okay in increasing value and increasing the likelihood somebody wants to buy all right and then finally naming it in a way that i think it will be cool if i said my dream outcome was that i wanted a warm jacket then probably having warm or hot or fire or flames or oven right in the name might be something that would increase my likelihood that i'm thinking this is going to be something that will help me experience my dream outcome right okay now on the flip side if i wanted just something that was fashionable and light then it might be a light fashion jacket right and so it's telling me the dream outcome so we have to be explicit in what we're doing and i'll also bet you right that you'll have different avatars that will be attracted to different things or maybe you same avatar but they're they're solving different needs so the question is what job is are we trying to do what's the job to be done and then everything else is going to fall down from there now amazon specifically people name it based on the things that people search for right which makes sense because why would they do that because it's exactly what i was looking for by naming it properly and so my hope here is that uh this video at least gives you a little bit of a cursory overview of the things that you can do within an e-commerce or physical products business to apply the 100 offer framework to make your stuff more buyable so that people increase in higher amounts at higher percentages and they do so willing to pay higher prices because you have checked all these boxes off and the competitors that you have might even have the same product as you but they haven't increased the perceived likative achievement they haven't shown how demonstrated how they can use the product they don't have guarantees they don't have tribe before you buy it takes two weeks to get there and the purchasing process is a pain in the ass they have to make an entire profile they have to do all the stuff right and they find out that there is no scarcity so as far as they're concerned they can buy this whenever so they can come back next week if they feel like it right and there's no urgency or time timeline where they do it because maybe maybe this is seasonal for for you but for them it's year-round so again they can take even more time to make the decision right and then in terms of bonuses yours comes with all these different trainings and things like that they can and how to use the product and how to use it in different ways and even how to use it for different avatars to solve different problems right because people are going to experience different problems that they're using they're hiring your product to solve right and then of course your competitors calls it jacket and you say like fashion jacket and all of a sudden the person says you know what i think this is exactly what i need and i'm going to buy right that is how you can apply the 100 offers framework including the value equation and the other things that i talk about enhancing value from the book to a physical product business all right so mostly nation i love you guys keep being awesome and i'll catch you guys in the next vid bye mozzie nation if you enjoyed that video smash the subscribe button and hit the little notification bell the reason for that is because i don't actually have a cadence when i make these videos so if you want to make sure you don't miss the next one that comes out go subscribe notify and i'll see you the next one bye