How To Use Alex Hormozi's "Value Equation" To Create Valuable" Content

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How to use Alex Hormozi’s value

equation to create ‘Valuable’ content


If you are a coach, business owner or simply anyone who’s trying to create content online to
build your audience and drive leads you might have heard a lot people saying

“Create valuable content”

“Growing is easy, just create valuable content”

But hardly anyone tells you what exactly is the “valuable content”

That’s when I saw the “value equation” by Alex Hormozi

(Dream outcome x Likelihood of achieving)


------------------------------------------------
Time delay + Effort

● Dream Outcome - This is the end result or benefit the client or customer will receive
● Likelihood Of Achieving - This is the client's perceived probability of achieving the
dream outcome with your product or service
● Time Delay - This pertains to the amount of time it will take the client to see the final
result
● Effort - This is about the additional costs, inconveniences, and work the client must
put in to achieve the desired outcome

Now you might be thinking okay this helps me with my offer and yada yada yada but how
can this be helpful to create better content to grow your audience

It’s simple

This equation show what “value” is for your dream audience

Let me break it down

Whatever niche you are in or whatever target audience you have, they all have a dream
outcome

In some cases it’s making $10,000 a month, in some cases it’s getting a six pack, in other
cases it may be running faster or generating new clients for their business

No matter the industry or niche, what your audience will deem as valuable lays in either
increasing the top half of the equation or decreasing the bottom half
Let's start with the bottom half, time delay & effort

Your content should help people decrease these two factors

● Time Delay - Helps people minimise the time delay to get the desired results
● Effort - Helps people minimise the effort they need to put in in order to achieve the
desired results

Let’s take an example - If I help people start and scale their agencies…

Content ideas

Time Delay
How to get your first client in 24 hours (decreases time delay)
How to build an $10k/ month agency in 30 days (decreases time delay)

Effort
How to get your first client without doing outreach (decreased effort)
How to grow your agency working 4 hours per week (decreased effort)

Got the idea?

Any content that you share which helps your target audience minimise the time delay to get
the dream outcome or minimises the effort that they need to put in order to get the dream
outcome would be “valuable” for them

Now about the other part of the equation: Dream outcome x likelihood of achieving it

This side of the equation you want to increase, improve the outcome and increase the
perceived likelihood of people achieving it

● Dream Outcome - How can you make the dream outcome better
● Likelihood Of Achievement - How can you increase the perceived likelihood that
your audience will achieve this

The one thing I will say with all four of these is you have to be honest. You could increase
the dream outcome by literally selling people a dream, however that will be short term and
will lead to big issues.

Instead work on creating more valuable content that helps people get better results, then
increase the chances of them achieving said results.

When you do it this way you build credibility which grows your audience and business.

Let's stick to the example of someone who helps others start & scale their agency…

Dream Outcome:
How can you achieve better results so you can therefor create content about this
If a student goes from zero to $10,000 per month that is a great case study to turn into
content ‘How Michael went from zero to $10,000 per month in 90 days’

If you want to improve this content, helping your student get even better results therefore
leads to better content. As ‘How Michael went from zero to $25,000 per month in 67 days’ is
always going to be more appealing. What we did here was both increase the dream outcome
($10,000 per month to $25,000 per month) as well as the time delay (90 days to 67 days)

The best content examples to highlight a dream outcome will be case studies, your own
results and how to videos

Example content ideas


Here’s how Tim went from $10k to $50k in just 30 days
How I scaled my coaching business to $100k - Copy this now!

Perceived Likelihood Of Achievement:

Finally we move onto the final piece of the valuable content puzzle. Increasing the perceived
likelihood of achievement. If you increase someone's perceived chances of achieving
success with you, not only will you get more followers but also clients.

If someone believes they are unlikely to get results working with you, it's going to be hard to
grow. If someone believes they are likely to get results with you, it will be easy.

This one is harder to quantify than the previous three however there are still a few ways you
can weave it into your content.

Firstly, having more case studies will improve your audience's perceived likelihood of
achieving the desired goal. If you have worked with 100 people and only one of them has got
results that you have posted online, only 1% of people got results.

People will happily buy a book for $20 with a 1% chance of getting results, but they won’t
spend $5,000 on your agency or coaching. If the dream outcome is worth $2,000 and the
chance of achieving it is 1% then you need to be selling it for $20 or less to be worth it.

However if people see a new person every week who has got great results working with you,
the chance they could be the next success story dramatically rises.

Another way to do this is to talk about average results, instead of highlighting big successful
case studies, if you show that on average a client will lose 5.5kg in the first 3 months working
with you, people can see that as a highly likely result.

You can add this into your content by sharing results, case studies and averages
Summary:

Your content ideas & hooks need two key ingredients to make them valuable & interesting

1. A dream outcome people want to achieve. The better the dream outcome, the more
people will pay attention
2. Then give insights to either decrease the effort or time required for your audience to
achieve this dream outcome
3. As a bonus, any social proof or averages to improve the likelihood someone
achieves this is welcome to be added

So, how do we put all of this together to create 30 pieces of valuable content today?

Let’s use an example of someone who provides personal training to busy professional men
looking to get in good shape

Firstly, list the dream outcomes of your audience:


- Gain more muscle
- Lose more fat
- Look better all around

Second, add in either a way you can decrease the time delay or effort required to achieve
this dream outcome…

Decrease time delay: (dream outcome + decreased time)


- Gain 1kg of muscle in the next 30 days
- Grow your biceps/back/chest/legs/abs in 30 days with this workout…
- Lose more fat in less time
- Go from fat to fit in 90 days

Decrease effort: (dream outcome + decreased effort)


- Gain 5kg of muscle whilst spending less time in the gym
- These are the only 3 exercises you need to gain muscle
- Do this for 15 minutes per day to gain more muscle/lose fat
- Gain more muscle in less time following this protocol
- 3 hours per week is more than enough time to build muscle/lose fat

To create a ton of valuable content ideas you simply need to come up with a strong hook that
follows the above, add in value and do it in a concise way. If you can get the same point
across in less time, it increases your performance.

Now here’s a guide or checklist or whatever you wanna call it that will help you create
content based on these

Adding in Chat GPT:

I personally don’t like copying Chat GPT word for word, however it's a powerful tool and you
should be using it to create more content in less time.
Let’s take the example of gaining muscle (dream outcome) in less time (decrease time
delay) you can go into chat gpt and say ‘give me 10 ways to gain more muscle in less time’
to which it spits out a list of 10 ideas.

- Progressive overload
- Compound movements
- Optimal nutrition
- Rest & recovery
- Post workout routine
- Hydration
- Consistent schedule
- Limiting cardio
- Mind muscle connection
- Supplementation

You can now create a reel for each of these pieces of content.

‘You can stack on more muscle in less time by progressively overloading your exercise, this
essentially means…’

‘Compound movements will help you get ripped faster than any other exercise, this includes
movements such as…’

And the list goes on

You can then repeat this for gaining muscle with less effort, losing fat faster, losing fat with
less effort, and so on. Giving you hundreds of ideas to start with

Content Ideas Generator

Video on how to use the above guide

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