| name | hormozi-money-models |
| description | WHAT: Alex Hormozi's Money Models framework — Four types of offers (Attraction, Upsell, Downsell, Continuity) that combine to build a $100M money model. From $100M Money Models.
WHEN: When applying hormozi money models knowledge |
Hormozi Money Models
hormozi-money-models
Core Principle
"Making one offer works better than making none. Making more offers works better than making one. Combining offers in a sequence makes a Money Model."
The key insight: If you only make one offer, you're leaving money on the table. The magic happens when you combine offers in the right sequence.
The Four Types of Offers
Every business has a "money model" — a sequence of offers. There are only 4 types of offers:
| Type | Purpose | When It Fires | Example |
|---|
| 1. Attraction | Get customers | First (lead generation) | Free/discount offers |
| 2. Upsell | Get customers to spend MORE | After they say YES | "Want to upgrade?" |
| 3. Downsell | Convert NO into YES | After they say NO | "What about this instead?" |
| 4. Continuity | Recurring revenue | Ongoing | Subscriptions, memberships |
Type 1: Attraction Offers
What It Is
Offers that generate leads and convert strangers into customers using free or discounted entry points.
Why It Works
"Everyone wants a great deal. In a great deal, customers get far more value than the price they pay."
The Options
| Option | Description |
|---|
| Free | No cost to the customer (highest barrier to refuse) |
| Discount | Reduced price (easier to structure) |
| Contingency | You only get paid when they get results |
Key Formula
The greater the discount, the better the deal. The greatest discount of all = FREE.
Examples
- Free consultation → then upsell to core offer
- Free sample/trial → then upsell to paid version
- Free giveaway (with purchase) → attracts leads
- Discounted first month → reduces barrier to entry
The Attraction Offer Framework
Problem they have:
↓
Attraction Offer (free/discount):
↓
Core Offer (the real business)
Type 2: Upsell Offers
What It Is
Offers that get existing customers to spend MORE during or after their initial purchase.
Why It Works
"The second worst thing that happens is they say no. The worst thing is if they would have said yes, but you never asked."
When to Upsell
- During the checkout process
- At the point of initial purchase
- Immediately after first purchase
- During the "hyper-buying cycle" (when excitement is highest)
Types of Upsells
| Type | Description |
|---|
| Same product, more | "Double your order" |
| Premium version | "Get the deluxe package" |
| Related product | "Add this complementary item" |
| Extended version | "Get the full system" |
| Add-on/Bundled | "Package deal" |
The Hyper-Buying Cycle
"Most buyers enter a hyper-buying cycle when they decide to do something new. It's a short window when they're most excited about a new thing."
People spend heavily during this window. Capture it.
Key Tactics
- Bundle by naming: "Fastest Results Bundle" vs. 9 separate items
- Surprise and delight: Add bonuses BEFORE they ask, not after
- Before they leave: "A customer should know the next time they see you and why before they leave"
- Integrate into delivery: Make upsells part of how you deliver other offers
Type 3: Downsell Offers
What It Is
Offers that convert a "no" into a "yes" by reducing friction, risk, or commitment.
Why It Works
"When someone says no, they usually mean 'not that.' Your job is to find what they actually want."
The Downsell Framework
| Strategy | How It Works |
|---|
| Lower the price | Same offer, less cost |
| Reduce the commitment | Shorter term, smaller commitment |
| Remove risk | Add guarantee, make it risk-free |
| Change the scope | "What about the smaller version?" |
| Payment plan | "Can I get you a payment plan?" |
| Different timing | "What if we started smaller?" |
Key Rule
Never leave without making another offer. Every "no" is an opportunity.
Type 4: Continuity Offers
What It Is
Offers that generate recurring, predictable revenue over time.
Why It Works
"It's even better if we get cash guaranteed to come in month after month."
Continuity Models
| Model | Description |
|---|
| Subscription | Monthly/annual recurring payment |
| Membership | Ongoing access for recurring fee |
| License/Access | Pay for continued use |
| Retainer | Ongoing service agreement |
| Maintenance contract | Ongoing support/updates |
The Continuity Test
"Would customers pay X per month to have access to this forever?"
If yes → Build continuity into your model.
Building Your Money Model
The Four Types Work Together:
Attraction Offer (get customers in)
↓
Core Offer (primary transaction)
↓
Upsell Offers (get them to spend more)
↓
Downsell Offers (rescue the no's)
↓
Continuity Offers (recurring revenue)
The Compounding Effect
If you double your leads, your business grows 8x faster (because each layer multiplies revenue).
The $100M Money Model
When all four types work together:
- You get customers cheaply (Attraction)
- Maximize revenue per customer (Upsell)
- Recover lost sales (Downsell)
- Build predictable recurring revenue (Continuity)
Key Money Model Principles
Principle 1: Every business has a money model
"All businesses have money models. It makes a business a business."
Principle 2: Switch from "this won't work" to "how will I make this work?"
"Be creative. They all work."
Principle 3: Layering beats single offers
- 1 offer = baseline
- 2 offers = better
- 3 offers = significantly more profit
- 4 offers working together = potentially a $100M business
Principle 4: Each type solves a different problem
| Problem | Offer Type |
|---|
| "I can't afford to get customers" | Attraction |
| "They bought but won't spend more" | Upsell |
| "They're saying no and leaving" | Downsell |
| "I need predictable revenue" | Continuity |
Questions to Ask When Building Your Money Model
/prompts:
- "What's my ATTRACTION offer? (What gets customers in the door?)"
- "What's my UPSELL? (What do customers want more of after they buy?)"
- "What's my DOWNSELL? (What can I offer when they say no?)"
- "What's my CONTINUITY offer? (What can I bill monthly for ongoing value?)"
- "How do these four work together as a sequence?"
- "Where in the customer journey does each offer appear?"
- "If I could only add ONE more offer type to my current model, which would have the biggest impact?"
Source
From $100M Money Models by Alex Hormozi, Acquisition.com Publishing
Core sections:
- Introduction: The four types of offers
- Section 2: Attraction offers
- Section 3: Upsell offers
- Section 4: Downsell offers
- Section 5: Continuity offers
Transcript source: ~/Downloads/100MMoneyModels.txt (Docker: /home/GOD/100MMoneyModels.txt)
Related Skills
hormozi-grand-slam-offer — Building the core offer itselfhormozi-lead-generation — Getting customers in the doorhormozi-pricing — Pricing strategy for each offer typehormozi-bonuses — Upsell and bonus tactics
