18. Attraction Offer. Freemium. | $100M Lost Chapters Audiobook

The Game with Alex Hormozi

Alex Hormozi

Entrepreneurship, Education, Business, How To

4.9 • 4.4K Ratings

🗓️ 14 November 2025

⏱️ 5 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Welcome to The Game w/ Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned and will learn on his path from $100M to $1B in net worth.

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Transcript

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0:00.0	Attraction offer, freemium.
0:02.6	Lost chapter, author, note.
0:04.1	I ended up cutting this section because I didn't think it applied to enough businesses,
0:06.6	but if you have a software media business, any business that is close to 100% incremental
0:09.8	margins, this is a dangerous but effective model used by billion-dollar-plus companies.
0:15.2	I learned this by studying how premium software companies upsold me.
0:18.4	That being said, almost every one of these companies listed in the example section has funding. If you do not have investors or large amounts of capital,
0:25.1	I would not recommend this structure. That being said, I'm including as a way of presenting a
0:28.6	complete picture of possible approaches. If you have something incredibly valuable, so valuable
0:32.6	that lots of people come towards you without marketing, then you have something that qualifies for
0:37.1	this structure. Otherwise, steer clear. Description. Freeming is one of the most dangerous acquisitions
0:41.7	strategies, but it also can be one of the most powerful. This is definitely an advanced move. To be
0:46.7	honest, I've seen it done incorrectly by smart people more times than I've seen it done correctly.
0:50.8	One of the key points to understand about Freeman is that it is not a business model. It is an
0:54.8	acquisition strategy. It's a very important distinction. The idea is you give something away that is so
0:59.7	valuable that people come to get it and continually use it for free. They must come from word of mouth
1:04.3	because the product is so good. It must cost zero dollars to them to use it, or just enough
1:08.7	advertising to get it going so that it spreads virally. That is where this gets tricky. Examples. Dropbox. Online storage. Free storage up to a point. Then after that, you pay. Spotify. Free music app. Free music forever with ads. Remove ads for a fee. Wistia. Free video hosting. After a certain amount, you need to pay more.
1:28.8	Gmail. Free email. After a certain period, upgrade for more in box space or start having your
1:32.4	email is deleted. Fear of loss makes you upgrade. Details. Here's what it looks like when it's
1:38.8	done right. You give away a core piece of software that provides value to someone's life or business.
1:43.8	They don't value it enough to pay for it, but if it's free, they'll use it continually.
	...

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