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

"People buy stuff because they value them"

– Alex Hormozi

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

– Alex Hormozi

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

– Alex Hormozi

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

– Alex Hormozi

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

– Alex Hormozi