Alex Hormozi's $100M Money Model: Offer Strategy
The $100M Money Model is a strategic sequence of offers designed to maximize customer value and accelerate cash flow. Its goal is to structure pricing and product delivery so that the profit generated from a single customer covers the acquisition cost of many, effectively removing cash constraints and enabling rapid, profitable scaling of the business.
Key Takeaways
A good money model must cover acquisition and service costs within the first 30 days.
The $100M model ensures one customer's profit funds the acquisition of many new customers.
Structure offers into four types: Attraction, Upsell, Downsell, and Continuity.
Always perfect one offer stage before moving to the next stage of the model.
Simple scales; complex, fancy offers often fail to achieve rapid, sustainable growth.
What is the $100M Money Model and what is its primary goal?
The $100M Money Model, as defined by Alex Hormozi, is a strategic sequence of offers—detailing what product or service you offer, when you present it, and how you structure the delivery to customers. The primary goal is to significantly increase the number of customers and accelerate the speed at which payments are received. A truly successful $100M model achieves a state where the profit from just one customer is sufficient to cover the acquisition costs for numerous new customers, thereby eliminating cash flow as a limiting factor for scaling the business rapidly and sustainably. This contrasts sharply with bad models that lose money acquiring customers or rely on a slow drip of profits, which starves the business of necessary capital.
- Definition: Sequence of Offers detailing what, when, and how you structure the offer.
- Goal: Increase Customers and accelerate the speed of payment.
- Good Money Model Minimum: Profit must exceed acquisition and service costs within the first 30 days.
- $100M Money Model: Profit from one customer covers the cost of many, removing cash as a scaling limiter.
- Beware of Bad Money Models: They lose money acquiring customers, rely on slow profit drips, or risk loss, loans, or selling equity.
How are the four types of offers structured within the Money Model?
The Money Model organizes offers into four distinct types, each serving a specific purpose across three stages of customer monetization. Stage I focuses on Attraction Offers, designed to convert strangers into initial customers and solve immediate cash constraints by ensuring profitability quickly. Stage II utilizes Upsell and Downsell Offers to maximize 30-day profits by addressing subsequent problems and capturing customers who initially hesitated with flexible options. Finally, Stage III introduces Continuity Offers, which provide ongoing value for recurring payments, ensuring the maximization of the customer's total lifetime value and securing predictable revenue streams for long-term growth.
- Attraction Offers (Stage I: Get Cash): Turn strangers into customers and solve initial cash constraint problems.
- Upsell Offers (Stage II: Get More Cash): Maximize 30-day profits by offering solutions to problems the core offer reveals.
- Downsell Offers (Stage II: Get More Cash): Get people to say yes when they would have said no by tweaking payment or features, but not the core price.
- Continuity Offers (Stage III: Get The Most Cash): Provide ongoing value for ongoing payments to maximize the total customer value.
What specific strategies are used for Attraction, Upsell, Downsell, and Continuity Offers?
A deep dive into offer mechanics reveals specific strategies for maximizing conversion at every stage of the customer journey. Attraction offers use techniques like 'Win Your Money Back' guarantees, high-value Giveaways, or Decoy Offers to drive initial commitment by contrasting value. Upsells leverage psychological tactics such as the Anchor Upsell, where a high-priced item makes the main offer seem cheaper, or the Menu Upsell, which guides the customer's choice. Downsells focus on reducing barriers through Payment Plan Downsells or Feature Downsells, ensuring a sale is made even if the full price is rejected. Continuity offers secure long-term revenue using Bonus Offers or Waived Fee structures.
- Attraction Offer: Win Your Money Back (goal-based refund based on results or actions).
- Attraction Offer: Giveaways (advertise a grand prize, collect leads, offer discounted core product to everyone else).
- Attraction Offer: Decoy Offer (advertise a cheap lesser version alongside a highly valuable premium offer).
- Attraction Offer: Buy X Get Y Free (reframe price, better if the free item Y is greater than the paid item X).
- Upsell Offer: Menu Upsell (includes Unselling, Prescription, and A/B choice to guide decisions).
- Upsell Offer: Anchor Upsell (present a premium, high-price anchor first to make the main offer look like a better deal).
- Upsell Offer: Rollover Upsell (credit a previous purchase toward the next offer, often spread over time).
- Downsell Offer: Payment Plan Downsells (spread cost over time to lower the barrier to entry).
- Downsell Offer: Trial With Penalty (customer gets a free trial if they meet terms, but pays a fee if they fail to meet terms).
- Downsell Offer: Feature Downsells (lower the price by removing features or offering DIY options, never negotiate the same product for less).
- Continuity Offer: Continuity Bonus Offers (offer a valuable bonus if they sign up today, where bonus value exceeds the first payment).
- Continuity Offer: Waived Fee Offer (waive a large setup fee if the customer commits to a long-term contract).
What are the key stages and guiding rules for building the $100M Money Model?
Building the $100M Money Model follows a structured, three-stage process guided by principles of simplicity and focus. Stage I, 'Get Cash,' requires perfecting a single Attraction Offer to cover costs and acquire customers profitably. Once cash flow is stable, Stage II, 'Get More Cash,' involves adding an Upsell Offer to boost 30-day profits and a Downsell Offer to increase overall conversion rates by capturing hesitant buyers. Stage III, 'Get The Most Cash,' completes the model by integrating a Continuity Offer to stack recurring revenue and maximize lifetime value. The core guiding rules emphasize perfecting one offer at a time, recognizing that simple models scale effectively while fancy ones often fail, and using affiliate products to fill any product gaps.
- Stage I: Get Cash: Perfect one Attraction Offer to acquire customers and cover costs.
- Stage II: Get More Cash: Add an Upsell Offer (raise 30-day profit) and a Downsell Offer (increase conversion rate).
- Stage III: Get The Most Cash: Add a Continuity Offer to stack recurring revenue.
- Guiding Rule: Perfect One Offer At A Time before moving to the next stage.
- Guiding Rule: Simple Scales, Fancy Fails, emphasizing clarity over complexity.
- Guiding Rule: Affiliate Products fill gaps by allowing you to sell other people's complementary products.
Frequently Asked Questions
What is the minimum requirement for a 'Good Money Model'?
A good money model must generate more profit than the combined cost of customer acquisition and service. Crucially, this positive margin must be achieved within the first 30 days of the customer relationship to ensure immediate financial viability and stability.
Why is the 30-day profit window emphasized in the Money Model?
The 30-day window aligns with the typical credit card cycle. Covering costs quickly prevents the business from being starved of cash, mitigating the risk of needing loans or selling equity to sustain operations. Fast cash flow enables rapid reinvestment into growth.
What is the difference between an Upsell Offer and a Downsell Offer?
An Upsell maximizes profit by offering a solution to the next immediate problem the customer faces. A Downsell increases conversion by lowering the barrier to entry, often via payment plans or removing features, ensuring the customer says yes instead of walking away.
