Hormozi's first million outside his gyms came from a 'free' offer where he paid for marketing and worked for free, keeping only the initial cash from new customers he acquired for gym owners. This demonstrates that 'free' can be a highly profitable acquisition model, not just a loss leader.

Despite their power, premium offers are a poor starting point for new ventures without established credibility. Use free or discounted 'foot-in-the-door' offers to prove your value and build a reputation, then transition to a premium model. This approach de-risks customer acquisition when you're an unknown entity.

A 'free' or 'pay-what-you-want' offer creates enough goodwill to ask tough, confrontational questions upfront. This allows businesses to filter for genuinely committed long-term customers, turning a lead generation tool into a qualification test.

Never start a business without first validating demand by securing commitments from at least three initial clients. This strategy ensures immediate revenue and proves product-market fit from day one, avoiding the common trap of building a service that nobody wants to buy.

Instead of optimizing for profit from day one, focus on creating a massive flow of leads with a low-friction offer. Once you have consistent demand ('flow'), you can then introduce 'friction' (like higher prices or more complex funnels) to monetize that established audience.

When entering a new market, working for free allows you to perfect your service without risk. It's the fastest way to gather social proof (testimonials) and build personal conviction, which are crucial for selling effectively later, giving you 'wiggle room' if the product is still rough.

To land its first skeptical customers like Drada, Merge offered its platform for free for two months without a contract. This de-risked the decision for the customer and allowed Merge to prove its product's value and the team's responsiveness before asking for a financial commitment.

Don't hoard your best material. Turn content that paying clients receive into free lead magnets. Prospects aren't paying for information, which is commoditized; they are paying for the applied insight and implementation of your ideas. This generosity builds trust and attracts more high-quality prospects.

Counterintuitively, sharing your best knowledge for free builds immense trust and authority. This strategy proves your expertise and makes potential clients eager to purchase your paid implementation services, overcoming skepticism in a crowded market.