What is a money model?
This series is inspired by 100M Dollar Models by Alex Hormozi. Full credit to the author. If you want a deeper understanding of the ideas, buy the book—it’s well worth the £20. My goal is to give you the core ideas quickly so you can implement parts of what you have learned to improve your business’s money model right away.
Money Model: a series of offers
Good Money Model: a series of offers structured to minimize CACÂ (Customer Acquisition Cost) and maximize gross profit collected in the first thirty days.
Quick real-world example (rental car company):
You book a £19/day deal online. At the counter you’re offered:
- Upgrade to a nicer, bigger car.
- Late return so you don’t stress about fees.
- Insurance—premium cover, or minimum as a downsell.
- Prepaid fuel so you skip refuelling and surprise charges.
You say yes to a few because they solve real worries. You walk out paying around £100/day which is 5X the £19 original offer. That stack of offers is a money model—a sequence designed to fix the customer’s next problem and raise the average order value.
What problems the offers solve:
- Upgrade → comfort/space problem (big person, small car).
- Late return → late-fee risk.
- Premium / 4) Minimum insurance → damage/accident risk at two price points.
- Prepaid fuel → refuelling hassle / missed-flight risk.
Notice: each add-on costs more, but each removes a pain. Done right, customers feel helped, not squeezed.
The four offer types behind any money model
- Attraction offer: the hook that gets attention. Example: £19/day headline.
- Upsell offer: more, better, or different. Examples: upgrade, late return, premium cover.
- Downsell offer: cheaper fallback for price-sensitive buyers. Example: minimum/standard insurance.
- Continuity offer: ongoing subscription for repeat value. Example: a £20/month membership with 10% off future bookings and extra perks.
How to think about your own money model
- Map the customer journey and list the next five worries they’ll have after the initial purchase.
- Create one clear offer per worry, ordered by when that worry appears.
- Price each offer so the value is obvious (risk removed, time saved, status improved).
- Add a downsell for at least one step so budget buyers still say yes.
- If your product has repeat usage, design a continuity option that genuinely compounds value.
In the next post, I’ll break down Client Financed Acquisition (CFA) — how one customer can pay for themselves and the next customer.
From: Nik at Vma Strategies