ITCONVERT

What's an offer

Hey…

Welcome back!

I’m Nicolas Gramnea ―co-founder of itconvert.com

My mission is to help 1.000.000 entrepreneurs succeed on their journey.

Because entrepreneurs make this planet a better place to live on!

With that said…

You are in the right place, today, if you want to take your business to the next level!

How to turn 1036€ to
112.496.422€ in 44 months

Alex Hormozi achieved this result by using unique acquisition frameworks.

He was able to double his business again and again using these acquisitions frameworks that you’re gonna learn here. And ended up spending…

3.106.117€ and getting a total Life Time Return of 36:1 on advertising.

So, these are practices that he did himself, that he experienced first hand… and they work, and I want to share these with you.

…so, you can learn and implement them in your business.

Alright.

So, he used those frameworks to build:

GYM LAUNCH from 0 to 2.400.000€/mo within 18 months
Prestige Lab from 0 to 1.700.000€/mo in 6 months
A.L.A.N. from 0 to 1.400.000€/mo in 6 months

And that’s per month… each of these numbers.

40.000€ to 700.000€/mo in 10 months for a brick-and-mortar business

So, you can see this works across different industries and business models.

One was licensing, one was physical products, one was software and the other is brick-and-mortar chain in photography.

So, very different types of businesses and the framework works all the same…

The Offer

How to make offers so good, people feel stupid saying no.

The reason we start with offers, it’s because before you’re getting the traffic, you’re getting into generating leads, you know making sales…

…all that stuff.

You have to literally generate a transaction with the customer, which is an Offer.

To catch fish, you need bait, or an offer.

Offer = the starting point of any conversation to initiate a transaction. What you are literally providing them in exchange for their money.

The Problem

Right now if your ads don’t convert well, or you are not getting new customers, or your sales team, or you have trouble scaling, or it takes too long to ramp up…

…or you’re just not getting people to say YES, many times the offer is the issue.

Why is this important?

The offer is going to be the #1 driver of success in any campaign.

What does it do? It will allow you to sell into a vacuum or category of one and force the customers to make value based decisions, instead of price based decisions.

This is the key point of why an offer is so important.

When customers look at the marketplace, and they are trying to solve a problem, they are gonna look at the different offers that exists.

And if you can position your offer in such a way that they are not going to compare your price, because they can’t, because you made your offer so unique…

Instantly you become a category of one, and you’re no longer constraint by pricing whatsoever. By doing that, you’re able to sell in a way that is completely 1 to 1, so that you don’t have to compete with anyone else…

…and that will protect your margins, it will give you a lot of competitive advantages and better enduring.

The goal of improving your offer is to de-commoditize what you sell.

 The end result of that, you’ll have a higher CTR (click-through rates) on your ads because your offer is better

 You’ll have a higher amount of these people that will convert, and say yes to working with you, because the offer is better

 And they will be willing to say yes to higher prices

So…

You combine all these things together you have a higher percentage of eyeballs who say “Yes, I’m interested!”, a higher percentage of these people that is already a greater number of saying “Yes, I want to buy!” and doing so at higher prices.

Translation: more leads, more sales, higher prices / profits

Now, I’ll share with you two (2) real-world examples that Alex has done.

Example #1

B2C ― Weight Loss Example:
99€/mo Bootcamp → FREE 6 Week Challenge
Break even → 30:1 (upfront, not including LTV)

This is a really classic one —this is what he did on his licensing company a few years ago, and really it transformed the industry.

So, the typical, independent owner of a bootcamp or independent facility, they were charging 99€/mo for large group training.

And the problem with that is highly commoditized, right…

There are a TON of people that offer the same thing with the same price, and again this is the point here. Customers will look around, and say “well, this place is closer to me, is 10€ less” and they just basically say to themselves “are these equivalent”…

—yes? then he will take the cheaper option.

That’s horrible, embarrassing, and you don’t want that to happen.

So what he did; switched his offer to a FREE 6-Week Challenge.

The components of that offer were fairly simple.

Instead of selling a membership package —they would sell a defined end program, which was in this case…

“You’ll lose 9 kg in 6 weeks, and if you DO lose it, you’ll get all your money back.”

Which is pretty cool and compelling.

It’s like betting on yourself.

And so, people though that was a pretty cool offer too. They would pay 600€ and then get a lot of other things you wouldn’t normally be able to get at a group training facility.

You’d have:

—accountability coach
—nutrition coach
—meal plans prep
—grocery list
—preparation instructions
—eating out guides

All of these actual pieces that would make it amazing and then on top of that there is a…

…satisfaction guarantee that even if you didn’t hit the goal, and you didn’t think you got 600€ worth of value during that period of time, then we’ll give you the money back.

Really compelling offer.

So, as a result of that, a lot of people joined the challenge. And so, because it was FREE:

• more people clicked
• because the offer was so good, more people bought
• and as a result of that instead of getting 99€ from these people we got 600€ + there were multiple upsells on top of that in the first 30 days

So, this literally transformed… what most people did to break even in their acquisition, or lose money getting new customers…

…to making 30:1 on upfront, that doesn’t include the recurring or back-end.

30:1 ROI

That means if you put 1000€ into advertising you would make 30.000€ back.

That is the power of changing the offer.

The core services were the same.

And this is the key point here is that in your business, we don’t need to change what you’re doing, we need to change the way you’re presenting what you’re doing.

Example #2

B2B ― Agency Example:
1500€/mo retainer → Pay me once, then only when someone shows
.5:1 → 11:1 Returns (upfront, not including LTV)

So, this is an agency example.

A classic lead generation service to small business owners ―chiropractors, plumbers, roofers, whatever; you’ll be charging a 1500€/mo retainer.

Ok… that’s a normal example.

And again, the problem with that is highly commoditized, right…

…and this is why it is very hard for people making money doing that.

This client switched that to pay me once, then only pay me when someone shows up.

So, you pay me one time, we get you set up.

And from that point forward, the only money you ever pay me is if I get someone to show to your business, right.

Let me show you the difference of what happened.

Disclaimer: “This is a REAL CUSTOMER… this isn’t theory… it’s REAL WORLD EXAMPLE.”

They went from .5:1 return on advertising in their first 30 days ―this means they spend 1000€ to get 500€ money back… or they spend 5000€ to get 2500€ back… but then they had the recurring to make up for the loss, the next month.

Right… that’s a normal business with normal returns.

Which is very hard to scale that, profitably, unless you have a lot of money!

…which many people don’t.

So, once they made this transition to a pay per performance model.

They went from .5:1 return on advertising…

…to 11:1 on upfront, that means they put 1000€ in, and they got 11.000€ back, before they have the continuity that kicks in.

This is the power of changing the offer.

Now, you’ll notice these 2 businesses had different offers all together.

• This one is a performance offer with an implied guarantee.

• The GYM business had 2 guarantees, a conditional and an unconditional guarantee, and it had a stack of bonuses with some urgency.

Real quick, before we move forward… let’s see the math behind the Agency’s Offer.

So, if you’re getting paid to get new customers… then the marketing budget disappears and all it becomes about scaling your operational bottleneck system.

Acquisition is no longer the bottleneck.

What’s interesting is that the companies that use this framework, they almost never have a problem with the acquisition… because the acquisition gets fixed so quickly.

They spend their time building the operational scale and infrastructure of their business.

Ok.

With that said… here you have the pieces we’ll work on to help you craft your Offer.

9 Offer Components

• Starving crowd: 3 levers, 4 factors, 3 main markets, niching

• Charging what is worth: price:value, vicious circle, virtuous circle

• Value equation: 4 variables, bottom to zero, perception, examples

• Creating your offer pt. 1: outcome, problems, solutions

• Creating your offer pt. 2: sales to fulfillment, the how, trim and stack

• Scarcity & Urgency: units vs. time, 3 types of scarcity, 4 types of urgency

• Bonuses: 11 bullets, other people’s products

• Guarantees: unconditional, conditional (formula), stacking guarantees

• M-A-G-I-C naming formula: components, wrapping/re-wrapping

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