When I first started building an offer, I was overwhelmed. Prices, promises, features—it was all a mess. That is, until I stumbled upon the Value Equation by Alex Hormozi. Let me tell you—it changed everything.
This simple formula helped me create an irresistible offer without guesswork. And today, I’m going to show you exactly how I did it.
The Value Equation: Hormozi-Style
Here’s his formula, simplified:
Value = (Dream Outcome x Perceived Likelihood of Achievement) / (Time Delay x Effort & Sacrifice)
Let’s break it down like a bowl of cereal:
- Dream Outcome: What the customer wants desperately.
- Perceived Likelihood: How strongly they believe they’ll get it.
- Time Delay: How fast they can get it.
- Effort & Sacrifice: What they have to give up or do to get it.
I printed this formula and taped it to my wall. Then I rolled up my sleeves and started crafting my offer.
Step 1: Define the Dream Outcome
I asked myself: “What amazing result would my ideal customer lose sleep over?”
I run a fitness coaching program, so here was my dream outcome for my audience:
- Lose 20 pounds in 90 days.
- Feel amazing in your skin again.
- Look great without starving yourself.
It needed to be bold, specific, and exciting. Something that made them say, “Heck yes!”
Step 2: Increase Their Belief
Now I had to boost their Perceived Likelihood of Achievement. If they thought it wouldn’t work for them, it didn’t matter how good the outcome was.
Here’s what I added:
- Before-and-after transformations with real people.
- Daily coaching check-ins so they never feel lost.
- A “Success Guarantee”—where I work with them for free until they hit their goal.
Confidence = conversions. So I stacked the proof and removed the doubt.
Step 3: Shrink the Time Delay
Nobody wants results “eventually.” They want it yesterday.
I looked at my program and realized I had too much fluff. So I:
- Cut out the unnecessary modules and focused only on what gets results.
- Added a “90-Day Fast Track” plan to get quicker wins.
- Included immediate access to the first workout video—a fast first step.
Step 4: Lower the Effort & Sacrifice
This step was tricky. People assume fitness will be hard. I had to flip that story.
I did it with these tweaks:
- Meals that are 5 minutes or less to cook.
- Workouts that fit into a busy parent’s schedule—30 minutes max.
- App-based tracking—no more notebooks or guesswork.
Basically, I made it feel easy and doable, even for the most overworked adult.
The Final Offer
When all the pieces came together, my offer looked like this:
“Drop 20 pounds in 90 days with workouts that take less than 30 minutes a day—guaranteed or we keep coaching you for free!”
Short. Clean. Powerful.
What Happened Next?
I launched with this new offer and… boom! My conversions doubled. People weren’t just interested—they were excited. They felt like they were finally being heard.
That’s the magic of the Value Equation. It forces you to think from the customer’s point of view. What do they want? What scares them? How can you make the path easier and faster?
Try This Yourself
If you’re selling anything—coaching, products, whatever—try this formula. Write it on a whiteboard. Answer each piece like you’re solving a puzzle.
And when you do it right, people will say:
“This is exactly what I’ve been looking for!”
So thanks, Alex Hormozi. You made offer building fun and easy.
Now it’s your turn.