When to Use
Use this when you’re:
- Creating a freebie/opt-in to generate leads
- Wondering what to give away to attract potential customers
- Have a lead magnet that isn’t converting to paid customers
- Building a funnel and need the entry point
- Hearing “why would I pay when you give this away for free?”
The Framework
Hormozi lays out a 9-step process for creating lead magnets that generate engaged leads - people who actually want to buy your core offer.
“There’s nine steps… what and who, how to deliver, how to solve it, name it, make it easy, make it good, create the next steps.” — Alex Hormozi, “$100M Leads - Lead Magnet Mastery”
The Core Principle
The reason lead magnets work is prediction theory:
“The reason people buy is based on a prediction of future value. So they buy because they predict that they will get value from you later. What is the best way to predict what someone will do for you in the future? What they’ve done for you in the past.” — Alex Hormozi, “Giving Away Free Stuff Will Make You Rich”
A lead magnet is a data point. If someone consumes your free thing and gets a result, they now have evidence that paying you will produce an even better result.
Step 1: Identify the Engaged Lead
Not everyone who opts in is a lead. An engaged lead is someone whose behavior indicates buying intent for your core offer. The lead magnet must attract people who are likely to buy, not everyone who wants free stuff.
Step 2: Determine What Problem to Solve
The lead magnet should solve a narrow problem completely, not a broad problem incompletely.
“A lead magnet should solve a narrow problem completely rather than a broad problem incompletely.” — Alex Hormozi, “$100M Leads - Lead Magnet Mastery”
A gym’s lead magnet should not be “The Complete Guide to Fitness.” It should be “The 7-Day Meal Plan for Busy Parents” - narrow, complete, and targeting the exact person who’d buy personal training.
Step 3: Match to Audience
The lead magnet must match what your ideal customer actually wants, not what you think they should want. Research what they’re already searching for, asking about, and struggling with.
Step 4: Choose the Delivery Vehicle
Seven vehicle types, each with different strengths:
- Software/tool — Highest perceived value, highest creation cost
- Information (PDF/guide) — Easiest to create, most common, lowest perceived value
- Services (audit/call) — Highest conversion to paid, but time-intensive per lead
- Physical product (sample) — Strong for e-commerce, has COGS
- Access (community/group) — Creates belonging, ongoing engagement
- Video/course — Medium effort, high perceived value
- Quiz/assessment — Highest opt-in rates, gamified, data-rich
Step 5: Create the Solution
Make it genuinely solve the narrow problem. No holding back.
“Give away the secrets, sell the implementation.” — Alex Hormozi, “Giving Away Free Stuff Will Make You Rich”
Hormozi’s seven-point checklist for quality:
- Would someone pay for this?
- Does it solve the stated problem completely?
- Is every claim specific (numbers, timelines, steps)?
- Is every instruction actionable?
- Can someone consume it in one sitting?
- Does it demonstrate your expertise?
- Does consuming it create awareness of a bigger problem (the one your paid offer solves)?
Step 6: Name It
The naming formula: [Result] + [Timeframe] + [Container]
Good names describe outcomes. Bad names describe formats.
- Bad: “Free PDF Guide”
- Good: “The 21-Day Meal Plan for Busy Parents”
- Bad: “Marketing Checklist”
- Good: “5 Email Templates That Book Calls This Week”
Step 7: Make It Easy to Consume
Consumption speed determines results. If they don’t finish it, they don’t get the result. If they don’t get the result, they don’t buy.
“Make it easy to consume. If it takes too long, they won’t finish it, and if they don’t finish it, they don’t get the result, and if they don’t get the result, they don’t buy.” — Alex Hormozi, “$100M Leads - Lead Magnet Mastery”
Target: less time than the prospect expects. If they expect 30 minutes, deliver in 10.
Step 8: Make It Genuinely Valuable
Counter-intuitive: the more valuable your free thing, the more people buy the paid thing. Holding back value in the lead magnet does not protect your paid offer. It reduces trust.
Step 9: Design the Next Step
The bridge from free to paid must feel inevitable, not promotional. After consuming the lead magnet, the prospect should think “I need more of this” - and the core offer is the obvious next step.
Example: Gym Lead Magnet
| Step | Application |
|---|---|
| Engaged lead | Parent who wants to lose 20+ lbs in 90 days |
| Problem | ”What do I eat this week?” |
| Vehicle | PDF meal plan |
| Name | ”The 7-Day Fat Loss Meal Plan for Busy Parents” |
| Consumption | 10 minutes to read, 7 days to execute |
| Bridge | ”Want a customized plan + accountability? Book a free consultation” |
Output
After reading this framework, you should be able to:
- Identify the narrow problem your lead magnet should solve
- Choose the right delivery vehicle for your audience
- Name it using the Result + Timeframe + Container formula
- Build a bridge from the free resource to your core paid offer
Source: “$100M Leads - Lead Magnet Mastery,” “Giving Away Free Stuff Will Make You Rich,” “How To Create a Lead Magnet,” “How to Make Better Offers and Lead Magnets,” “What Lead Magnet Should My Service Business Have?,” “This Lead Magnet Strategy Will Increase Your Sales Conversions”