Episode Overview

Podcast: The Game with Alex Hormozi
Host: Alex Hormozi
Episode: Part 3: Attraction Offers | $100M Money Models Audiobook | Ep 940
Date: August 19, 2025

This episode delves into Attraction Offers—strategies for turning attention into revenue by presenting irresistible deals that generate leads and convert them into paying customers. Alex unpacks why discounts and especially “free” offers have widespread appeal, outlines five powerful ways to monetize "free," and provides actionable playbooks for “Win Your Money Back” and “Giveaways”—with practical stories, frameworks, and memorable guidance for making these offers profitable.

Main Theme

Turning Eyeballs into Money: The Power of Attraction Offers

Alex explores how businesses can use free, discounted, and irresistible offers to bring in floods of new customers, supercharge referrals, and build longer-term relationships—without sacrificing profitability. He also emphasizes the psychology and mechanics behind crafting offers that sound “too good to be true,” but are both sustainable and growth-driving when structured correctly.

Key Discussion Points & Insights

1. The Psychology of Free and Discounted Offers

• Main idea: People perceive a great deal as getting more value than they pay for; price is clear, value is not—so discounts or free are instantly attractive.
• Free, discount, $1 offers: All function as ways to lower perceived price barriers, making offers irresistible.
• “The greater the discount, the better the deal. The greatest discount of all being free.” (00:32)
• The episode sets up five favorite ways to make money with free stuff—Alex will cover “Win Your Money Back” and “Giveaways” in depth.

2. Win Your Money Back Offers (00:53–17:40)

Definition & Structure

Alex defines the Win Your Money Back offer: Customers put money down, do prescribed actions or hit a result, and can win back their investment (as cash or store credit).

Why It Works

• People love betting on themselves, and love a zero-risk chance to get something for free.
• Even when customers “win,” they usually stick around, recommend friends, or apply their winnings to other offers.
• “It was the first Grand Slam offer Gym Launch taught to gym owners... nothing beats it.” (04:23)

Three Criteria for Winning Back:

1. Results-based: Hit a measurable result (lose X pounds, make Y dollars)
2. Actions-based: Complete all required actions (attend sessions, log progress, etc.)
3. Combo: Do both—maximizing engagement and results.

Real-Life Examples

• Danny’s gym breakthrough: Customer paid $500 for an 8-week program with a money-back guarantee if he hit his goal. Client hit the goal, used the money for more services, and referred 13 friends. (02:30)
  • “People love the offer, and all the free advertising they do gets us their friends and family to join too.” (03:13, Danny)
• Business-to-consumer: 28-day blueprint—deposit refunded if all engagement criteria met.
• Business-to-business: “5 customers in 5 days challenge”—deposit refunded if outreach targets and participation met.
• Physical product (Volvo’s real offer): Buy a car, drive 1 million miles, get another car free. (06:47)

Profitability and Use Cases

• Only about 10% claim a refund if well-structured; most who succeed use credit/cash to buy more.
• Ideal for products requiring regular effort (fitness, business coaching, self-improvement).
• “The more results you deliver, the more money you’ll make. Think long.” (14:57)

How to Make It Work

• Criteria should be:

  1. Easy to track—e.g., using step counters or auto-timestamped photos.
  2. Tied to customer goals—align tasks with what drives their results.
  3. Promote the business—encourage posting progress, referrals, testimonials.

• Smart credit application: Instead of 3 free months, spread credits to discount 12 months—keeps customers paying and engaged longer. (10:59)

Upsell Opportunities & Retention

• Use program check-ins as upsell moments—offer memberships, supplements, longer-term deals at pivotal milestones.
• Reveal “everyone’s a winner” toward the end to reduce anxiety, promote upsells, and foster loyalty. (12:48)
• If customer “loses,” still offer to credit their deposit towards other offers: “You started. That’s the biggest victory of all… We’ll credit your entire deposit towards staying with us long term.” (13:53)

Caveats & Final Tips

• Only run this offer if your current refund rate is below 5%.
• If not comfortable with cash refunds, use store credit (conversion is the same).
• Refunds are a cost of business; the long-term gain outweighs the cost.
• Always structure it so the “store credit” is towards a product/service that keeps them engaged.

3. Giveaway Offers (17:41–End)

Nature and Trigger of Giveaways

• “Many will enter, many will win.” Regulation-heavy—so consult legal counsel before running.
• Business story: Certifying fitness business gives away a “Full Ride” scholarship; everyone else gets “partial scholarships" (i.e., discounted entry). (18:15)
  • “Most of them join our program on the spot.” (19:26)
  • Sets up the classic script: One winner, everyone else gets a compelling discount.

Structure of a Winning Giveaway

• Choose a grand prize—make it something everyone wants and will buy.
• Assign a monetary value to anchor perception of value.
• Collect contact info and ask qualifying questions (“Why should we pick you?”) as eligibility—makes follow-up sales easier.
• Add qualifying actions for better leads (post on social, join group, attend a call).
• Set a time/deadline for entries to add urgency—then keep up excitement with frequent updates.

How to Monetize the Lead Flood

• After grand prize winner is picked, call/message all entrants and offer “partial scholarships” (the real offer at a significant discount).
• “We explain they get $5,000 value for an $1,800 price tag. By comparing the value of the thing to what they pay, a 10% discount becomes a 64% difference in cost to value.” (31:19)

Examples For Inspiration

• Dentist: Free $6,000 set of invisible braces (grand prize), $2,000 gift card for all others.
• Dog food company: Free year of organic dog food ($1,000), $300 gift card with subscription.
• Consulting: Free 16-week turnaround ($12,000), partial scholarship for $6,000 toward 16-week package. (30:35)

Maximize Impact with Referrals & Scarcity

• Offer two grand prizes—if someone’s referral wins, they win too. This multiplies leads and leverages word-of-mouth.
  • “If a person you refer gets in the top 10, you get to come too. That’s the point—to make business fun.” (33:34)
• Always use scarcity and urgency: time limits, entry limits, and deadlines to claim prizes.

Downsell & Handling Objections

• If someone doesn’t buy the main offer, have another discounted offer ready—applies discount over longer billing periods for recurring revenue.
• Use the entry process to collect data on what prospects value for future customization and segmentation.

Essential Points

• If your giveaway flops, your grand prize isn’t compelling enough—make it better (“Prizes only work if they’re grand.”).
• Keep all rules and winner selection transparent and fair.

Notable Quotes & Memorable Moments

• “People look for one thing and then buy another by accident. All the time. Attraction offers get them to do it on purpose.” (01:09, Alex)
• “…making his workouts public and posting his before and after pictures brought 13 referrals. Oh, that’s insane. Now we’re talking.” (03:03, Alex & Danny)
• “Bottom line: customers put money down. If they do the stuff or get the result or both, they get it back as cash or store credit.” (05:21, Alex)
• “The more results you deliver, the more money you’ll make. Think long.” (14:57, Alex)
• “If your giveaway doesn’t work, it means your grand prize wasn’t grand enough.” (29:40, Alex)
• “Who doesn’t want something for nothing, right?” (37:34, Alex)

Key Timestamps

• 00:00–02:30: The concept of attraction offers—discounts, free, and why they work
• 02:31–04:00: “Win Your Money Back” origin story (Danny’s gym anecdote)
• 04:01–08:20: How to structure and scale “Win Your Money Back” for different types of businesses
• 08:21–14:00: Best practices, pitfalls, and upsell strategies for Win Your Money Back
• 14:01–17:40: Implementing and optimizing the offer—criteria, retention, and refund rates
• 17:41–19:30: Giveaways—regulatory note and lead generation case study
• 19:31–24:00: Giveaway structure: grand prize, promotion, qualification
• 24:01–29:00: Urgency, follow-up, upgrade/downgrade offers
• 29:01–33:30: Scarcity/urgency hacks and referral multipliers
• 33:31–37:34: Final thoughts, summary points, and bonus resources

Overall Takeaways

Alex Hormozi delivers actionable, psychologically powerful frameworks for creating customer acquisition offers that feel like “cheating”—but are win-wins for customer and business. Whether it’s a “Win Your Money Back” challenge or a hype-building giveaway, the principles are simple: make your offer audacious enough to get attention, structure it so both you and the customer win (especially if they succeed), and always have the next step/upsell ready.

For those who want to dive deeper, Alex repeatedly offers free, non-gated video trainings on acquisition.com/training/money.