Bonuses, a guarantee and a name
Lesson 5 of 31 in the course “Million Dollar Sales Course”. Free, with animations and a quiz.
A bonus kills a doubt
The offer is built and priced. Now we power it up. For Hormozi a bonus isn’t a “freebie for the sake of it”. Each bonus kills one doubt or the customer’s next problem. “Don’t know what to film” is killed by 10 ready-made scripts. “No time” is killed by the “Clip in 20 minutes” pack. His rules: name the bonus by its benefit, give it a price tag, and remember tools and checklists are usually worth more than one more lesson. Ideally the bonuses together are worth more than the product itself.
A guarantee removes the risk
The main objection to almost any purchase is risk: “what if it doesn’t work”. A guarantee moves that risk onto you. The formula is simple: if you don’t get X in Y, we’ll do Z. Hormozi lists four kinds. Unconditional: didn’t like it, money back. Conditional: you did the steps but got no result, so we keep working for free. Anti-guarantee: no refunds, and you honestly explain why. Implied: you pay only for results, like a cut of sales.
Guarantees: do the math, don’t panic
“What if everyone asks for a refund?” Hormozi says do the math. No guarantee: 100 sales, 5% refunds, 95 left. With a strong guarantee more people buy, say 130, and refunds double to 10%. That leaves 117, which is 23% more. The numbers in his example are illustrative, but the logic holds: a guarantee pays off when it brings in more buyers than refunds. And remember: a guarantee doesn’t replace the buyer’s legal rights in your country.
Case: L.L.Bean and the lifetime guarantee
US outdoor brand L.L.Bean for over a century accepted returns of any item in any condition, even years later. It was part of its fame. But according to CNBC, by 2018 “abusive” returns had grown to 15%, with losses of about $250 million over five years: people returned even items bought second-hand. In February 2018 the rule changed: one year to return, receipt required. The takeaway matches Hormozi: a strong guarantee works, but it needs conditions.
A name built with MAGIC
The same product with a different name sells differently. Hormozi builds names from the MAGIC parts. M: a reason why (free, for summer, new cohort). A: announce who it’s for (new TikTokers). G: give a goal (first viral clip). I: indicate a time (in 7 days). C: complete with a container word (sprint, intensive, system). 3–5 parts is usually enough, shorter is better. His example: “Free Six-Week Lean-By-Halloween Challenge”. Careful with timelines: many platforms won’t approve ads promising “lose 10 kg in a month”.
Scarcity and urgency, honest only
Two more boosters. Scarcity is “only a few left”: seats, bonuses, stock. Urgency is “time is limited”: enrolment closes, bonus until Friday. Hormozi insists: only for real. 20 seats, because you physically can’t do more reviews per week. Enrolment closed means closed, and you announce it. If a deadline keeps “moving”, people remember, and they won’t believe your next one.
Your move: finish your offer
Open your offer from previous lessons. Add 3 bonuses, each killing one customer doubt. Give each a price. Write a guarantee using the formula: if you don’t get X in Y, then Z, and think about which conditions fairly protect you from abuse. Come up with 2–3 MAGIC names and pick the shortest, clearest one. Show it to a friend and ask what they understood in 5 seconds.
Check yourself
- Which bonus do you add?
Correct answer: 10 ready video scripts labelled “for when you don’t know what to film”. The bonus hits the most common doubt head-on and saves time. It’s a tool, not another lesson, and those are usually valued higher. - Which guarantee is fairer and stronger for the course?
Correct answer: Submit 5 homework clips with no reach growth: we keep reviewing for free. It’s a conditional guarantee: they do their part, you do yours. The risk is removed, and you’re protected from people who do nothing. - What does the L.L.Bean story teach?
Correct answer: A strong guarantee needs conditions: a time limit and proof of purchase. The guarantee helped the brand for over a century, but without conditions people abused it. The company didn’t scrap it, it added a time limit and a receipt. - Which name is closest to the MAGIC formula?
Correct answer: Free 7-day “First Viral Clip” sprint for new TikTokers. It has a reason (free), who (new TikTokers), a goal (viral clip), a time (7 days) and a container (sprint). People get what it is and who it’s for in a second.