Alex Hormozi’s Wealth Formula

Alex Hormozi is full of gems. One of his best is the Value Formula You Must See Today. (if you haven’t read 100M Offers & 100M Leads, you’re missing out)

So, what’s the formula?

Dream Outcome x Perceived Likelihood of Achievement/Time Delay x Effort & Sacrifice = Value.

So, what does that mean?

Dream Outcome

What your client is hoping to ultimately achieve.

An example wouldn’t necessarily be 6-pack abs, but more like a sweet dating scene that comes from having 6-pack abs.

Perceived Likelihood of Achievement

How likely it is that you’ll help them achieve their dream outcome?

Maybe you’ve helped a dozen middle-aged divorced men get abs and fill their social calendar. That’s some serious social proof.

Time Delay

How long does the process take?

Are you able to deliver quick wins? The answer should be yes.

Of course, you can’t deliver abs in a day. But you can help people shed 2–5 pounds in their first week and take their plank hold from 10 seconds to 30 seconds.

Effort & Sacrifice

How much do they have to give up? How hard do they have to work?

You’re going to have to find ways for them to build ab building into their daily routine. Food swaps, extra movement, ab exercises they can do at their desk, etc.

The goal of the equation is to increase the first two parts and decrease the second two parts.

Now, depending on your product or service, how much you can increase/decrease will vary widely.

But you should always be seeking to optimize the value of what you offer.