Alex Hormozi · Offer
Make the offer easy to value
Alex Hormozi's value equation: perceived value rises with the customer's dream outcome and their belief that they'll achieve it, and falls with the time delay and the effort and sacrifice involved. Make each part concrete so the price can be judged against the value.
When it helps
When customers say it's too expensive, can't see what they get for the money or feel the offer asks too much of them.
Keep in mind
When you're only polishing a sentence. The value equation is a thinking tool – it can't set prices or forecast sales, and it's no reason to promise results you can't deliver.
How to apply it
- Dream outcome: describe what the customer actually wants to achieve, in their words – not your deliverables. Limit it to the part you can genuinely influence.
- Perceived likelihood: show why it will work for this particular customer – your process, experience, customer examples and terms you stand behind. Stronger words are no substitute for evidence.
- Time delay: separate when the customer gets started, when they notice the first benefit and when the final result arrives. Bring the first tangible win forward.
- Effort and sacrifice: spell out what you take off their plate and what they still need to do themselves. Asking less of the customer's time and attention is value too.
- Bonuses should remove a real obstacle, and guarantees, discounts and deadlines need actual terms. Compare the price with the value and with what the problem costs today, not only with competitors' prices.
Questions to work with
- What exactly does the customer get for the price – and what are they spared?
- Why would the customer believe it will work for them?
- How soon will the customer notice the first benefit?
- Which wait or which work can we actually remove?
A fictional example
Fictional: an accounting firm handles ongoing bookkeeping, starts with an introductory call and answers email on weekdays.
Draft
Unlock your financial potential with our irresistible solution.
Revised
We take care of your day-to-day bookkeeping, so you don't have to do it yourself. We start with an introductory call, and after that you can email us on weekdays whenever something comes up.
The copy shows what the customer is spared, how it starts and what support they get, so the value is easy to judge without promising a financial result.
Read the original sources
The application and example are our own. The example is fictional and has not been conversion-tested.