Hormozi Value Equation (Hormozi)

Value = (Dream Outcome × Perceived Likelihood of Achievement) / (Perceived Time Delay × Effort & Sacrifice)

• Numerator (maximize): Dream Outcome (the result the prospect envisions) × Perceived Likelihood it will actually work for them. Denominator (minimize): Time Delay (buy → result) × Effort & Sacrifice required.

Ratio form = the denominator dominates. All four are perceived, not real. Because the bottom is a product being minimized, as the denominator → 0, value → ∞ — faster and easier beats bigger-dream. Hormozi's operating point: most offers over-invest in a grander dream outcome (numerator) when the cheap win is collapsing time-to-result and effort (denominator).

Transfer. A piece of content sells its idea on the same equation: the reader "buys" reading-on if the payoff seems likely and near, at low effort. This is why the hook must promise a believable, soon, low-effort payoff — a huge dream outcome with low perceived likelihood or high effort (a wall of text) scores low. Directly reframes delivery-craft's hook and the low-friction line.

Kin: illustrative-formulas · meclabs-conversion-heuristic · hyperbolic-discounting (time-delay term) · sperber-wilson-relevance (effort in the denominator).

Source: Alex Hormozi, $100M Offers: How to Make Offers So Good People Feel Stupid Saying No (2021)