hormozi-money

Hormozi Money — Skill v1.0

"Price is a positioning decision before it is a math decision." "The goal is not to make more sales. The goal is to make more money per sale." "More before Better before New — in that exact order."

This skill operationalizes the complete ACQ money models framework into 4 executable workflows. Works alongside hormozi-offers (pricing and value stacking) and hormozi-scale (LTV:CAC governs scale decisions).

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Workflow Selection

Intent	Workflow
"Which model should I use?" / "Design my monetization"	→ Workflow 1: Revenue Model Selector
"How should I price this?" / "Design my pricing page"	→ Workflow 2: Pricing Architecture
"How do I increase LTV?" / "Reduce churn"	→ Workflow 3: LTV Maximizer
"What's the best growth move?" / "More vs. Better vs. New"	→ Workflow 4: More/Better/New Engine

For new monetization strategy: chain 1 → 2 → 3 (model first, then price, then maximize LTV).

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Workflow 1: Revenue Model Selector {#wf1}

Source: $100M Money Models — ACQ Framework

The 4 Money Models

Model 1 — Products

What it is: One-time purchase of a physical or digital deliverable. Best for: High-volume, lower-touch, transactional businesses.

Sub-type	Example	Pros	Cons
Physical products	Equipment, tools, goods	Tangible value, scalable	COGS, returns, logistics
Digital products	Courses, templates, tools	Zero marginal cost	Easy to pirate, commoditizes quickly
Info products	Books, guides, reports	Low cost to produce	Low perceived value without proof

Revenue math: Units × Price − COGS = Gross Profit Key lever: Volume + average order value (AOV)

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Model 2 — Subscriptions

What it is: Recurring payment for ongoing access, service, or product. Best for: Businesses where ongoing value justifies recurring payment.

Sub-type	Example	Key Metric
SaaS	Software platform	MRR, churn rate, NRR
Membership	Community, content access	Retention, engagement
Continuity	Replenishment, service plan	Cancellation rate
Retainer	Ongoing consulting, agency	NPS, renewal rate

Revenue math: MRR × (1 − Monthly Churn) compounded over time Key lever: Reduce churn. Cutting churn 50% can double LTV without acquiring a new customer.

Churn LTV table:

Monthly Churn	Average Lifespan	LTV (at $500/mo, 70% GM)
2%	50 months	$17,500
5%	20 months	$7,000
10%	10 months	$3,500
20%	5 months	$1,750

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Model 3 — Services

What it is: Payment for labor, expertise, or outcomes. Best for: High-touch businesses where human judgment creates the value.

Sub-type	Example	Scalability
Done-For-You (DFY)	Agency, consulting	Limited by headcount
Done-With-You (DWY)	Coaching, consulting	Moderate
Done-By-You (DIY)	Training, courses	High

Revenue math: Price × Volume − (Labor Cost + Overhead) = Profit Key lever: Raise prices (most underused lever in service businesses); increase capacity through systems.

Rule: Service businesses that can't raise prices have not proven enough ROI for the client. Fix the proof and the price follows.

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Model 4 — Assets

What it is: Build, buy, or license something that generates passive or semi-passive income. Best for: Businesses that have proven a model and want to create leveraged income.

Sub-type	Example	Capital Required
Equity in businesses	M&A, roll-ups	High
Licensing / royalties	IP licensing, white-label	Low-Medium
Real estate	Commercial, residential	High
Digital assets	SEO sites, newsletters	Low-Medium
Franchises	Licensed operating models	Medium

Revenue math: Yield × Asset Value = Annual Cash Flow Key lever: Capital deployment efficiency + asset selection

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Model Selection Matrix

Score each model 1–5 on criteria relevant to your situation:

Criteria	Products	Subscriptions	Services	Assets
Low startup capital needed	3	4	5	1
Scales without you	4	5	1	5
Predictable revenue	2	5	3	4
Highest LTV	2	5	4	5
Fastest to first dollar	3	3	5	1
Lowest overhead	4	4	3	3

Default recommendation by stage:

• $0–$100k/year: Services first (fastest path to revenue)
• $100k–$1M/year: Services + Subscriptions (add recurring)
• $1M+/year: Services + Subscriptions + Assets (build passive)

Output: Revenue Model Brief

REVENUE MODEL BRIEF
============================
BUSINESS:         [offer + ICP + stage]
RECOMMENDED MODEL: [Primary + Secondary if applicable]
RATIONALE:        [why this combination]
MONETIZATION STACK:
  Entry offer:    [low-friction first purchase]
  Core offer:     [primary revenue driver]
  Continuity:     [recurring revenue element]
  Asset building: [if applicable]
MONTHLY REVENUE POTENTIAL: [estimate at scale]
============================

Deep dive: references/four-models.md

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Workflow 2: Pricing Architecture {#wf2}

Source: $100M Offers — Pricing Framework

The Pricing Principle

"Price is a byproduct of positioning. Position first, price second."

Price communicates value. Underpricing signals low quality. Overpricing with no proof signals risk.

The Grand Slam Pricing Rule: Charge what the transformation is worth, not what the deliverable costs to produce.

The 4-Tier Pricing Ladder

Every monetization system should have 4 tiers:

TIER 1 — Lead Magnet (Free)
  Purpose: Convert strangers to contacts
  Price: $0
  Examples: Checklist, calculator, case study, mini-course

TIER 2 — Entry Offer (Low Friction)
  Purpose: Convert contacts to buyers; break the non-buyer identity
  Price: $1 – $297 (consumer) | $500 – $2,000 (B2B)
  Examples: Workshop, template pack, short course, audit

TIER 3 — Core Offer (Primary Revenue)
  Purpose: Deliver the primary transformation; primary revenue driver
  Price: $500 – $5,000 (consumer) | $3,000 – $50,000+ (B2B)
  Examples: Full program, DFY service, consulting engagement

TIER 4 — Continuity / Ascension (Maximum LTV)
  Purpose: Extend relationship and revenue over time
  Price: Monthly subscription or higher-tier upgrade
  Examples: Mastermind, retainer, membership, advanced program

The Value Anchor (from $100M Offers)

Always establish a value anchor before revealing price:

1. List all deliverables in the offer (see hormozi-offers: grand-slam-stack)
2. Assign standalone market value to each
3. Sum to get the total value
4. Reveal actual price (minimum 5:1 gap; Grand Slam = 10:1+)

Example:

• Strategy session ($2,000) + Implementation ($8,000) + Tools ($1,500) + Support ($3,600/year) = $15,100 total value
• Price: $3,000
• Gap: 5:1 ✅

Pricing Models by Business Type

Business Type	Recommended Model	Why
Agency / DFY service	Milestone-based or performance-based	Aligns incentives; reduces price objections
High-ticket coaching	One-time program fee	Clean; easy to sell
SaaS	Monthly with annual discount (2 months free)	Reduces churn; improves cash flow
Course / info product	One-time purchase + optional upsell	Simple; high conversion
Consulting retainer	Monthly retainer + performance kicker	Predictable; incentivized
Membership	Monthly subscription + annual option	Flexibility + retention incentive

Annual vs. Monthly Pricing

Rule: Always offer annual. Annual plans:

• Reduce monthly churn dramatically
• Improve cash flow (money upfront)
• Increase commitment → increase results → increase renewals

Standard discount: 2 months free (16.7% discount) or 20% off annual.

Output: Pricing Architecture

PRICING ARCHITECTURE
============================
TIER 1 (Free):     [Lead magnet name + format]
TIER 2 (Entry):    $[X] — [offer name] — [what it includes]
TIER 3 (Core):     $[X] — [offer name] — [value stack + anchor]
TIER 4 (Continuity): $[X]/month — [offer name] — [what keeps them]
VALUE ANCHOR:      $[Total standalone value] → Price $[X] → Gap [X]:1
RECOMMENDED PAYMENT: [monthly / annual / one-time / payment plan]
============================

Deep dive: references/pricing-architecture.md

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Workflow 3: LTV Maximizer {#wf3}

Source: ACQ LTV Framework

"The customer who already bought is 5–10x easier to sell than a stranger." "The question is never 'how do I get more customers?' before 'how do I make each customer worth more?'"

The 5 LTV Levers

Lever 1 — Raise Prices

• The single most underused lever in service businesses
• Raising prices 20% while keeping the same customers = 20% revenue increase, 0 new customers
• Gate: proof must justify the price; use hormozi-offers proof stack first

Lever 2 — Reduce Churn

• Cutting monthly churn from 10% to 5% doubles LTV
• Churn fix hierarchy: Onboarding → Value delivery speed → Community stickiness → Annual billing

Lever 3 — Increase Purchase Frequency

• More purchases per customer per year
• Design the natural "what's next" for every completed customer
• Upsell ladder: Entry → Core → Continuity → Premium → Asset

Lever 4 — Increase Average Order Value

• Upsell at point of purchase ("Would you like to add X for $Y more?")
• Bundle complementary products (increases AOV without new product)
• Payment plans (makes higher prices accessible; doesn't reduce LTV)

Lever 5 — Extend Relationship Duration

• Annual billing (locks in 12 months)
• Community (switching cost = social capital)
• Results delivered = reason to stay + upsell

LTV Audit Scorecard

Score each lever 1–5 (1 = untouched, 5 = maximized):

Lever	Score	Priority Action
Prices	/5	[action]
Churn	/5	[action]
Purchase frequency	/5	[action]
AOV	/5	[action]
Relationship duration	/5	[action]

Total: /25 — Anything below 15 = significant LTV upside available before acquiring more customers.

Output: LTV Optimization Plan

LTV OPTIMIZATION PLAN
============================
CURRENT LTV:      $[X]
TARGET LTV:       $[X] (in 90 days)
LEVER SCORES:     [each lever score/5]
TOP 3 ACTIONS:
  1. [action] → expected LTV impact: +$[X]
  2. [action] → expected LTV impact: +$[X]
  3. [action] → expected LTV impact: +$[X]
NEW LTV PROJECTION: $[X]
LTV:CAC IMPACT:   [current ratio] → [projected ratio]
============================

Deep dive: references/ltv-maximizer.md

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Workflow 4: More/Better/New Engine {#wf4}

Source: ACQ Scaling + Money Models Framework

The Framework

At every revenue milestone, there is exactly one highest-ROI move:

Until volume is the constraint → MORE (do more of what's working)
Until quality is the constraint → BETTER (improve what's working)
Until you've maxed the current → NEW (add something new)

Why this matters for money:

• Adding a new revenue stream before the core is optimized = distraction tax
• Optimizing before you've maxed volume = premature optimization
• "New" before "Better" = building on a broken foundation

The Money Decision Tree

Is current revenue model producing consistent results?
  NO → Phase 1: More volume. Do not change the model.
  YES ↓

Is pricing optimized? (Value anchor + 5:1 gap + upsell ladder in place?)
  NO → Phase 2: Better pricing + LTV. Do not add new revenue streams.
  YES ↓

Is LTV maximized? (All 5 levers scored 4+/5?)
  NO → Phase 2: Optimize LTV. Do not add new revenue streams.
  YES ↓

Is the current model at capacity?
  NO → More volume on existing model.
  YES → Phase 3: Add new revenue stream (next tier on the 4-model ladder).

New Revenue Stream Priority

When Phase 3 is confirmed, add revenue streams in this order:

1. Continuity — recurring version of your current offer (if not already in place)
2. Upsell — premium tier of your current offer
3. Downsell / Entry offer — capture people who won't pay the core price
4. Adjacent offer — different problem, same ICP
5. New model — different delivery mechanism or revenue type

Output: More/Better/New Decision

MORE/BETTER/NEW DECISION
============================
CURRENT STAGE:    [revenue + model + primary channel]
PHASE:            [More / Better / New]
EVIDENCE:         [3 reasons why this is the correct phase]
RECOMMENDED MOVE: [specific, single action]
EXPECTED IMPACT:  $[X] additional revenue over [timeframe]
WHAT TO AVOID:    [the tempting-but-wrong move for this phase]
============================

Deep dive: references/more-better-new.md