$100M Money Models

1. The Money Model: A Deliberate Sequence of Offers

A Money Model is a sequence of offers.

Strategic sequencing. A Money Model isn't just about having a product; it's about the deliberate order and presentation of offers to maximize profit and customer acquisition. Alex Hormozi's journey from sleeping in a gym to a $100M net worth highlights how a well-designed sequence of offers can transform a struggling business into a cash-printing machine. It's about understanding the customer's journey and solving their problems at every step.

Beyond a single sale. Many businesses fail because they lose money acquiring customers, hoping to make it back over a long period. A robust Money Model ensures you make enough money from a customer in the first 30 days to cover acquisition costs and acquire more. This rapid cash flow fuels aggressive growth, allowing businesses to outspend competitors on advertising and dominate their market.

Four core types. Money Models are built from four fundamental offer types, each serving a distinct purpose in the customer journey:

• Attraction Offers: Convert strangers into initial customers.
• Upsell Offers: Increase the immediate value of a customer.
• Downsell Offers: Capture sales from those who initially decline.
• Continuity Offers: Secure long-term, recurring revenue.
  By combining these, businesses can create a powerful, self-sustaining growth engine.

2. Attraction Offers: Turn Strangers into Paying Customers

The point of Attraction Offers is to turn strangers into customers.

Initial engagement. Attraction Offers are designed to grab attention and convert leads into first-time buyers, ideally covering the cost of acquisition and initial delivery. These offers often leverage the power of "free" or deep discounts, as people are naturally drawn to perceived high value for low (or no) cost. The goal is to get them in the door, build trust, and demonstrate value.

Strategic "free." Offering something for free isn't about losing money; it's about strategically acquiring customers who are then open to further offers. Examples include:

• Win Your Money Back: Pay now, get it back if you hit a goal (e.g., fitness challenge).
• Giveaways: Win a grand prize, others get a discounted "partial scholarship."
• Decoy Offer: Advertise a basic free/cheap option, then present a much more valuable premium offer.
• Buy X Get Y Free: Reframe pricing to offer more "free" items, increasing perceived value.
• Pay Less Now or Pay More Later: Offer a free trial with a delayed payment, or a discounted price for immediate payment.

Cash flow generation. The ultimate aim is to generate enough cash from these initial customers to fund more advertising and acquire even more customers. This creates a virtuous cycle of growth, where each new customer acquisition is profitable from the outset, rather than a long-term gamble.

3. Upsell Offers: Maximize Immediate Customer Value

Upsells just mean whatever we offer next.

Solving the next problem. Once a customer makes an initial purchase, a new set of problems or desires often emerges. Upsell Offers capitalize on this "hyper buying cycle" by providing solutions to these immediate, subsequent needs. The classic example is "Do you want fries with that?" – a small addition that significantly boosts profit margins.

Profit amplification. Upsells are critical for maximizing 30-day profits, often making the majority of a business's revenue. They work because existing customers are already engaged and trust your brand, making them more likely to buy again. Effective upsells are:

• More of what they just got: Increased quantity or duration.
• Better versions of it: Higher quality, premium features.
• New or complementary stuff: Related products or services (e.g., a helmet with a bike).

Key upsell strategies:

• Classic Upsell: Offer a solution to the immediate, obvious next problem (e.g., insurance with a rental car).
• Menu Upsell: Present multiple options, guiding the customer to the best fit by "unselling" what they don't need and "prescribing" what they do.
• Anchor Upsell: Present a very high-priced premium option first to make the main offer seem more reasonable.
• Rollover Upsell: Credit a previous purchase towards a more expensive, longer-term offer, making the upgrade irresistible.

4. Downsell Offers: Convert "No" into a Profitable "Yes"

Downselling tweaks the original offer to find the highest value solution for the customer’s budget.

Turning rejection into opportunity. When a customer says "no" to an offer, it doesn't mean they're not interested in anything. It means the current offer isn't the right fit. Downsells are designed to pivot, offering alternative solutions that align better with the customer's budget or specific needs, thereby converting a potential lost sale into a profitable one.

Flexible solutions. Downsells typically involve adjusting either how the customer pays or what they receive. The goal is to find a "match" by making trades – if you give something (like a lower price), you get something in return (like fewer features or a different payment structure). This maintains the value perception and avoids simple discounting.

Powerful downsell tactics:

• Payment Plan Downsells: Break down the total cost into smaller, manageable installments, often aligned with paychecks. This addresses "too much up front" objections.
• Trial With Penalty: Offer a free trial, but with conditions. Customers only pay a fee if they fail to meet the terms (e.g., attend training, complete tasks), incentivizing engagement and conversion.
• Feature Downsells: Lower the price by removing specific features, reducing quantity, or offering a lower-quality alternative. This allows customers to choose the value they want at a price they can afford, sometimes even "re-upselling" themselves on the original offer once they see what they'd lose.

5. Continuity Offers: Build Long-Term Recurring Revenue

Continuity Offers provide ongoing value that customers make ongoing payments for—until they cancel.

Sustainable growth. Continuity Offers are the bedrock of long-term business stability, providing predictable, recurring revenue. While they might not generate significant upfront cash, they dramatically increase the lifetime value of each customer. The strategy is to secure initial cash flow through Attraction, Upsell, and Downsell offers, then layer in continuity to maximize long-term profitability.

Incentivizing commitment. The key to successful continuity is getting customers to keep buying. This is achieved by combining bonuses, discounts, and strategic fees:

• Continuity Bonus Offers: Provide a high-value, one-time bonus for signing up for a recurring membership (e.g., free products, exclusive access).
• Continuity Discount Offers: Offer free periods or a reduced rate in exchange for a longer-term commitment (e.g., "Buy 12 Months Get 3 Months Free").
• Waived Fee Offer: Charge a significant upfront setup fee for month-to-month, but waive it if the customer commits to a longer term (e.g., a year).

Strategic billing. A crucial, often overlooked tactic is to bill weekly or bi-weekly instead of monthly. There are 13 four-week cycles in a year, not 12 months, which can increase annual revenue by 8.3% with no extra work. This small change can significantly boost profit margins, especially for businesses with tight margins.

6. Build Your Money Model in Strategic Stages

My Money Models develop this way because I make sure each stage pays for the next.

Evolutionary approach. A $100M Money Model isn't built overnight; it evolves through deliberate stages, ensuring each step is profitable and sustainable before moving to the next. Trying to implement a complex, "finished" model from day one often leads to collapse, especially for bootstrapped businesses.

Three stages of growth:

• Stage I: Get Cash. Focus on Attraction Offers to reliably acquire customers and cover initial costs. The goal is to turn strangers into customers profitably.
• Stage II: Get More Cash. Implement Upsell and Downsell Offers to maximize the profit generated from each customer within the first 30 days. This ensures the business is cash-flow positive and can fund further growth.
• Stage III: Get The Most Cash. Introduce Continuity Offers to maximize the long-term value of each customer, building predictable recurring revenue. This stage focuses on retention and maximizing lifetime value.

Iterative refinement. The process involves perfecting one offer at a time, making it reliable and automatic, before moving to the next. This patient, measured approach ensures financial and operational stability, allowing the business to scale without breaking. It's about building it right, rather than building it fast and having to rebuild.

7. Leverage Pricing & Payment Tactics for Exponential Growth

Bill weekly (weekly, every 2 weeks, 4 weeks, 12 weeks etc). Here’s why. There are 12 months in a year, but the year has 13 four-week cycles. That’s an 8.3% difference.

Optimizing payment structures. Small tweaks to how and when customers pay can have a massive impact on revenue and profitability. Beyond the core offer types, specific payment tactics can significantly boost cash flow and reduce churn.

High-impact payment strategies:

• Weekly Billing Advantage: Charging every four weeks instead of monthly results in 13 payments a year, not 12, boosting annual revenue by 8.3% for the same product.
• Processing Fees: Adding a small 3% processing fee can go straight to the bottom line, increasing profit margins significantly without deterring sales.
• Two Forms of Payment: Requesting a second payment method (especially ACH) reduces churn due to expired cards or insufficient funds, safeguarding recurring revenue.
• Seesaw Downselling: Incentivize larger upfront payments by linking them to lower monthly rates, or offer flexible payment plans that adjust based on the down payment.

Strategic discounting. When offering discounts, frame them as rewards for specific actions (e.g., prepaying, committing longer) rather than arbitrary price reductions. This preserves perceived value and encourages desired customer behavior.

8. Prioritize Transparency and Ethical Business Practices

Don’t lie. You’ll short-change yourself long-term. And unlike credit card debt, you can’t file bankruptcy to erase a bad reputation. Once you have a bad one, it sticks for life.

Long-term reputation. While the book focuses on aggressive money-making strategies, Alex Hormozi consistently emphasizes that these tactics must be applied ethically and transparently. A bad reputation is a permanent liability that no amount of clever offers can overcome.

Customer-centric ethics:

• Honest Advertising: Clearly state facts and avoid deceptive claims, especially around "free" offers.
• Easy Refunds: If a customer wants their money back, give it to them without hassle. Focus on acquiring the next customer rather than fighting over a single refund.
• Legal Compliance: Always consult legal counsel to ensure offers comply with local and industry-specific regulations, as laws constantly change.
• Transparency in Terms: Clearly explain all terms, conditions, and potential fees (e.g., cancellation penalties, trial conditions) to avoid customer dissatisfaction.

Building goodwill. Over-delivering, surprising customers with extra value, and genuinely trying to solve their problems builds trust and loyalty. This approach not only prevents negative reviews but also turns customers into advocates, generating invaluable word-of-mouth referrals.

9. Problem-Solving is the Core of Every Successful Offer

At their core, we find every opportunity to solve a customer’s problem…and then offer to solve it.

Customer-first mindset. The fundamental principle underlying all Money Models and offer types is a relentless focus on identifying and solving customer problems. Every offer, whether it's an attraction, upsell, downsell, or continuity, must address a real need or desire the customer has.

The problem-solution cycle. Every offer that solves a problem often reveals a new one. A customer buys a car (solves transportation), then needs insurance (solves risk), then needs gas (solves fuel), then wants a late return (solves convenience). A successful Money Model anticipates these subsequent problems and offers timely solutions.

Value creation. The more problems you solve for a customer, and the more effectively you solve them, the more value you create. This increased value justifies higher prices and encourages customers to accept more offers. By deeply understanding your customer's journey and pain points, you can craft a sequence of offers that feels natural and beneficial, rather than pushy. This approach ensures that your business is not just making money, but genuinely serving its customers.

Last updated: August 26, 2025