# Money Models (Hormozi)

Study notes. Paraphrase and short quotes, each with a source link and timestamp. Acquisition.com course audio and YouTube captions are machine transcribed, so check the source before quoting word for word.

## 1. Definitions
* An offer is a problem you solve for money; a money model is a sequence of offers; a $100M money model gets customers to spend twice what you spent to get them within 30 days. [$100M Money Models Live Launch (2025-08-17), 00:12:10](https://www.youtube.com/watch?v=6_CCutkM11g&t=730s)
* The standard used in these notes: 30 day gross profit greater than 2 times CAC (Money Models course, CFA level 3, section 3b). Gross profit already nets out cost of goods, so COGS is not added again. Doing it removes cash as a limiter for growth. [$100M Money Models Live Launch (2025-08-17), 00:12:10](https://www.youtube.com/watch?v=6_CCutkM11g&t=730s) [$100M Money Models Live Launch (2025-08-17), 00:12:42](https://www.youtube.com/watch?v=6_CCutkM11g&t=762s)
* Most businesses lose money getting and serving new customers for a while; do that long enough and the business dies. [$100M Money Models Live Launch (2025-08-17), 00:11:36](https://www.youtube.com/watch?v=6_CCutkM11g&t=696s)
* Cash flow is the only thing that guarantees you can stay in business; 100 year old companies survived because they kept making money. [$100M Money Models Live Launch (2025-08-17), 00:13:14](https://www.youtube.com/watch?v=6_CCutkM11g&t=794s) [$100M Money Models Live Launch (2025-08-17), 00:13:47](https://www.youtube.com/watch?v=6_CCutkM11g&t=827s)
* Compounding: customers twice as valuable, twice as many, paying twice as fast = 8x growth. [$100M Money Models Live Launch (2025-08-17), 00:14:55](https://www.youtube.com/watch?v=6_CCutkM11g&t=895s)

## 2. The four offer types (mechanisms)
* Attraction offers (get people to buy, more cash up front), upsell offers (spend more), downsell offers (buy something if they say no), continuity offers (keep paying over time). [$100M Money Models Live Launch (2025-08-17), 00:12:42](https://www.youtube.com/watch?v=6_CCutkM11g&t=762s) [Alex Hormozi REVEALS the Secrets Behind $100M Money Models (2025-08-08), 00:08:15](https://www.youtube.com/watch?v=6G8cz2G0fsg&t=495s)
* One mechanism alone can get great results; they work for any business (special snowflake itis). [$100M Money Models Live Launch (2025-08-17), 00:16:29](https://www.youtube.com/watch?v=6_CCutkM11g&t=989s)
* Course lessons cover each named mechanism: Attraction (Win Your Money Back, Free Giveaways, Decoy Offers, Buy X Get Y, Pay Less Now Or Pay More Later, Free With Consumption), Upsell (Classic, Menu, Anchor, Rollover), Downsell (Payment Plans, Free Trials, Feature Downsells), Continuity (Continuity Bonus, Continuity Discounts, Waived Fee). [Acquisition.com $100M Money Models Course: Attraction Offers](https://www.acquisition.com/training/money/attraction-offers) [Acquisition.com $100M Money Models Course: Upsell Offers](https://www.acquisition.com/training/money/upsell-offers) [Acquisition.com $100M Money Models Course: Downsells](https://www.acquisition.com/training/money/downsells) [Acquisition.com $100M Money Models Course: Continuity Offers](https://www.acquisition.com/training/money/continuity-offers)

## 3. Named mechanisms as he described them in the live launch
* Free trial (the bad gym model): $100 per trial, 3 trials per $100 a month member, so $300 to get a member. [$100M Money Models Live Launch (2025-08-17), 00:18:06](https://www.youtube.com/watch?v=6_CCutkM11g&t=1086s)
* Win your money back: instead of a trial, the customer pays $500 up front and sets a goal; hit it and earn money back. [$100M Money Models Live Launch (2025-08-17), 00:18:40](https://www.youtube.com/watch?v=6_CCutkM11g&t=1120s)
* Continuity bonus: give something awesome free if they join continuity; the bonus is often worth more than the first payment. [$100M Money Models Live Launch (2025-08-17), 00:20:53](https://www.youtube.com/watch?v=6_CCutkM11g&t=1253s)
* Menu upsell, four parts: unsell what they don't need, prescribe what they do, ask A or B, make it easy to pay. [$100M Money Models Live Launch (2025-08-17), 00:23:39](https://www.youtube.com/watch?v=6_CCutkM11g&t=1419s)
* Pay less now or pay more later, and buy X get Y free (his handbooks free with 15 more copies) during the book launch. [$100M Money Models Live Launch (2025-08-17), 00:28:07](https://www.youtube.com/watch?v=6_CCutkM11g&t=1687s)
* Giveaways: a 7-day formula that puts strangers into buy mode. [$100M Money Models Live Launch (2025-08-17), 00:34:41](https://www.youtube.com/watch?v=6_CCutkM11g&t=2081s)
* Classic upsell: a problem reveal where customers realize they need your next thing right after buying. [$100M Money Models Live Launch (2025-08-17), 00:38:32](https://www.youtube.com/watch?v=6_CCutkM11g&t=2312s)
* Anchor upsell: a sticker shock option that makes the main thing look like a great deal. [$100M Money Models Live Launch (2025-08-17), 00:39:05](https://www.youtube.com/watch?v=6_CCutkM11g&t=2345s)
* Rollover upsell: customers apply what they paid toward the next offer. [$100M Money Models Live Launch (2025-08-17), 00:39:36](https://www.youtube.com/watch?v=6_CCutkM11g&t=2376s)
* Downsells: turn every no into cash instead of panic discounts. [$100M Money Models Live Launch (2025-08-17), 00:41:13](https://www.youtube.com/watch?v=6_CCutkM11g&t=2473s)

## 3b. From the free $100M Money Models course (machine transcribed)
* CAC = all the cost required to sell a new customer: ad spend, media buyer and creative payroll, software, sales commissions and salaries, managers. Separate media CAC from fully loaded CAC. With outbound, payroll is most of CAC. [Acquisition.com $100M Money Models Course: CAC, 00:00:01](https://www.acquisition.com/training/money/cac) [Acquisition.com $100M Money Models Course: CAC, 00:00:33](https://www.acquisition.com/training/money/cac)
* Gross profit: most businesses think they need cheaper leads when they need to make more per customer; CAC between competitors is usually similar, the big gap is how much customers are worth. [Acquisition.com $100M Money Models Course: Gross Profit, 00:00:34](https://www.acquisition.com/training/money/gross-profit) [Acquisition.com $100M Money Models Course: Gross Profit, 00:01:07](https://www.acquisition.com/training/money/gross-profit)
* Client financed acquisition (CFA), three levels (he notes this framing is not in the book). Source type: free course, machine transcribed audio: [Acquisition.com $100M Money Models Course: CFA, 00:00:01](https://www.acquisition.com/training/money/cfa)
  * Level 1: lifetime gross profit greater than CAC; if you don't have that then you don't have a business. [Acquisition.com $100M Money Models Course: CFA, 00:00:39](https://www.acquisition.com/training/money/cfa)
  * Level 2: 30 day gross profit greater than CAC, so short term credit (about 30 days on cards or credit lines) funds the next customer; you stay capped by your credit line, and operations usually become the constraint first. [Acquisition.com $100M Money Models Course: CFA, 00:01:19](https://www.acquisition.com/training/money/cfa) [Acquisition.com $100M Money Models Course: CFA, 00:01:54](https://www.acquisition.com/training/money/cfa) [Acquisition.com $100M Money Models Course: CFA, 00:02:31](https://www.acquisition.com/training/money/cfa) [Acquisition.com $100M Money Models Course: CFA, 00:03:10](https://www.acquisition.com/training/money/cfa)
  * Level 3 (the level he prefers): 30 day gross profit greater than two times CAC. One customer pays back their own cost and pays for the next one, so you are never being limited by money at all. He calls this the goal of the rest of the training. [Acquisition.com $100M Money Models Course: CFA, 00:03:10](https://www.acquisition.com/training/money/cfa) [Acquisition.com $100M Money Models Course: CFA, 00:03:43](https://www.acquisition.com/training/money/cfa)
* Feature downsell: lower the price by offering less quantity, less quality, or cutting optional parts. Remove things they don't value and drop price a lot and they get a great deal; remove things they love for a small price cut and they get a worse deal. [Acquisition.com $100M Money Models Course: Feature Downsells, 00:01:11](https://www.acquisition.com/training/money/feature-downsells) [Acquisition.com $100M Money Models Course: Feature Downsells, 00:01:49](https://www.acquisition.com/training/money/feature-downsells)
* Payment plans: selling the same thing with different payment terms. [Acquisition.com $100M Money Models Course: Payment Plans, 00:01:18](https://www.acquisition.com/training/money/payment-plans)
* Decoy offer example: a free 21 day transformation offered next to a premium unlimited version with a guarantee; people came for the free one and many bought the premium. [Acquisition.com $100M Money Models Course: Decoy Offers, 00:02:25](https://www.acquisition.com/training/money/decoy-offers) [Acquisition.com $100M Money Models Course: Decoy Offers, 00:02:58](https://www.acquisition.com/training/money/decoy-offers)

## 4. Unit economics rules of thumb (The Mathematics of Business)
* Rule of 100. [The Mathematics of Business, Explained (2026-01-09), 00:16:26](https://www.youtube.com/watch?v=A_tx40lNpf8&t=986s)
* Lead response: call your leads within 60 seconds. [The Mathematics of Business, Explained (2026-01-09), 00:21:50](https://www.youtube.com/watch?v=A_tx40lNpf8&t=1310s)
* 70% sales calendar utilization as the sweet spot. [The Mathematics of Business, Explained (2026-01-09), 00:25:06](https://www.youtube.com/watch?v=A_tx40lNpf8&t=1506s)
* Payback period: how fast you recover the cost of getting a customer; his goal is within 30 days. [The Mathematics of Business, Explained (2026-01-09), 00:28:53](https://www.youtube.com/watch?v=A_tx40lNpf8&t=1733s) [The Mathematics of Business, Explained (2026-01-09), 00:29:26](https://www.youtube.com/watch?v=A_tx40lNpf8&t=1766s)
* Gross margins: low margins usually mean a commoditized offer or a broken sales process. [The Mathematics of Business, Explained (2026-01-09), 00:33:12](https://www.youtube.com/watch?v=A_tx40lNpf8&t=1992s) [The Mathematics of Business, Explained (2026-01-09), 00:41:21](https://www.youtube.com/watch?v=A_tx40lNpf8&t=2481s)
* Lifetime gross profit and the six ways to raise it: see pricing.md section 2. [6 Hacks To Make More Money [Increase LTV] Without More Customers (2021-04-20), 00:02:08](https://www.youtube.com/watch?v=Q2VUuUGfpNY&t=128s)
* Upsells reverse the value equation: faster, easier, higher quality versions. [KEYNOTE: Small To BIG. The Big 4 Customer Acquisition Models. (2022-05-17), 01:15:44](https://www.youtube.com/watch?v=XwZH-lOKG9c&t=4544s)
* Netflix style recurring revenue (continuity) is its own video in this batch. [Netflix's Recurring Revenue Tactics Can Scale Any Business (2021-09-10)](https://www.youtube.com/watch?v=jOM0m34dxz4)

## 5. LTV to CAC (Business Owners: You NEED to Know This Number)
* When people say lifetime value they should mean lifetime gross profit: take out the cost of delivering. [Business Owners: You NEED to Know This Number (2024-06-30), 00:01:04](https://www.youtube.com/watch?v=jzKpAtzKQ54&t=64s)
* All his big wealth jumps came when this ratio was maximized; first year of Gym Launch he says it was 100 to 1 (spent $100,000, made $10 million). [Business Owners: You NEED to Know This Number (2024-06-30), 00:00:00](https://www.youtube.com/watch?v=jzKpAtzKQ54&t=0s) [Business Owners: You NEED to Know This Number (2024-06-30), 00:19:26](https://www.youtube.com/watch?v=jzKpAtzKQ54&t=1166s)
* Ways to raise LTV: a better version, a more version, a cheaper version, a fewer version, a cross sold version, lower cost of goods, get them to buy more, or raise the price. [Business Owners: You NEED to Know This Number (2024-06-30), 00:21:40](https://www.youtube.com/watch?v=jzKpAtzKQ54&t=1300s)
* Lower CAC by getting cheaper eyeballs or improving conversion after you've paid for the eyeball. [Business Owners: You NEED to Know This Number (2024-06-30), 00:23:48](https://www.youtube.com/watch?v=jzKpAtzKQ54&t=1428s)

## 6. Menu upsell in practice (How I Would Build a $10M Service Business, roofing case)
* He calls the menu upsell his favorite chapter in Money Models, for any transactional sale done in one conversation. [How I Would Build a $10M Service Business (If I Had to Start Over) (2026-08-29), 00:17:20](https://www.youtube.com/watch?v=o64cI6tebnU&t=1040s)
* Steps as he walks them: 1 unsell what they don't need (builds trust), 2 prescribe what they do need, 3 give an A or B choice (he calls it a fake choice that makes the close easier), 4 put it on the card already on file. [How I Would Build a $10M Service Business (If I Had to Start Over) (2026-08-29), 00:15:12](https://www.youtube.com/watch?v=o64cI6tebnU&t=912s) [How I Would Build a $10M Service Business (If I Had to Start Over) (2026-08-29), 00:15:43](https://www.youtube.com/watch?v=o64cI6tebnU&t=943s)

## 7. LTV to CAC targets by how automated you are (How I Would Build a Business in 2026)
* Three parts of a business: lead generation, conversion (sales) and delivery. If all three are automated, 3 to 1 works; if one is not automated, about 6 to 1; if two are not, 9 to 1 at minimum; if all three need people, over 12 to 1. [How I Would Build a Business in 2026 (If I Had to Start Over) (2025-06-12), 00:15:48](https://www.youtube.com/watch?v=i7bLRKwKSms&t=948s) [How I Would Build a Business in 2026 (If I Had to Start Over) (2025-06-12), 00:16:21](https://www.youtube.com/watch?v=i7bLRKwKSms&t=981s)
* He limits payback to 30 days because that's typically as long as most small businesses can handle cash flow wise. [How I Would Build a Business in 2026 (If I Had to Start Over) (2025-06-12), 00:08:08](https://www.youtube.com/watch?v=i7bLRKwKSms&t=488s)
* One way to raise value: sell something different, not more or better (a burger with fries rather than a bigger burger). [How I Would Build a Business in 2026 (If I Had to Start Over) (2025-06-12), 00:21:08](https://www.youtube.com/watch?v=i7bLRKwKSms&t=1268s)