How I Applied Alex Hormozi’s $100M Offer to My App
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I removed daily pricing and shifted to upfront commitments inspired by Alex Hormozi’s $100M Offer. The change helps secure cash upfront, ensures customer savings, and maximizes marketing ROI.
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Outline
- Why daily pricing was hurting the business
- Learning from Alex Hormozi’s money model
- Shifting to upfront and annual commitments
- Making savings obvious for customers
- Balancing flexibility with long-term value
- Why this approach increases cash flow
- The results so far
Why Daily Pricing Was Hurting the Business
When I first launched my app, I thought offering daily pricing would make it more accessible. But the math didn’t hold up. Instead of gaining more customers, I was actually losing money every single day. The costs of running marketing and operations outweighed the small daily payments, and I realized the model was unsustainable.
Learning from Alex Hormozi’s Money Model
That’s when I turned to Alex Hormozi’s $100M Offer framework. His money model is clear: get as much cash upfront as possible so you can reinvest in growth. I understood that the issue wasn’t my product, but my pricing. By borrowing from his framework, I began reshaping my offer into something that aligned both customer benefits and my business goals.
Shifting to Upfront and Annual Commitments
I removed daily pricing completely. Instead, I focused on annual and monthly options. Annual pricing is framed as a clear commitment: customers pay less overall and save money, while I secure more cash upfront to reinvest in marketing and scaling. Monthly options still exist for those hesitant to commit, but the main focus is showing the real savings of upfront payments.
Making Savings Obvious for Customers
One mistake I made initially was not making the savings clear enough. Customers couldn’t see the real difference between paying annually or monthly. Now, I emphasize how much they save per month if they choose upfront payment. Even for those who don’t want to do the math, the numbers are laid out so the value is obvious.
Balancing Flexibility With Long-Term Value
Flexibility matters, so customers can still test the product with a one-month plan. But for those confident in the value, the upfront option delivers bigger savings. This balance allows me to capture committed users while still welcoming cautious buyers.
Why This Approach Increases Cash Flow
The real goal is cash flow. Marketing requires upfront spending, and having more cash in hand allows me to scale faster and more safely. Instead of being cash-starved by daily payments, I now have resources to reinvest immediately, making the business more sustainable.
The Results So Far
I’m happy with how the shift turned out. It aligns better with customer psychology, helps me recover marketing spend, and creates a win-win situation. Customers save money while I gain financial security to keep growing the product.
