The Giveaway Offer System
Advertise a Grand Prize to generate massive lead flow, then convert everyone else with a promotional offer.
Advertise a chance to win a big prize in exchange for contact information. One person wins the Grand Prize. Everyone else gets offered a promotional offer — a discounted version of the Grand Prize. The Grand Prize must be the thing you want everyone to buy, with a high monetary value as a price anchor. The promotional offer is discounted 10-30% off gross margins but framed against the Grand Prize value for maximum perceived savings. The system includes qualifying actions, deadlines, and a Double Prize Referral Hack that can double leads.
- The Grand Prize must be the thing you want everyone to buy
- If the giveaway does not work, the Grand Prize was not grand enough
- Use urgency in three places: urgency to enter, urgency to claim, urgency to use
- Eligibility criteria give ammunition for selling and increase conversion
- Treat the countdown like a mini product launch — Whisper-Tease-Shout
- Pick a Grand PrizeMake it the thing you want everyone to buy. Assign a high monetary value as a price anchor. The bigger and more desirable the prize, the more leads you generate.Pro tipUse the Double Prize Referral Hack — give away two prizes. If someone a participant refers wins, the referrer wins the other prize. This can double or more leads.WarningGiveaways are heavily regulated — consult legal counsel. They can become illegal lotteries.
- Design Your Promotional OfferDiscount your core offer 10-30% of gross margins. Frame the discount against the Grand Prize value for maximum perceived savings. For example, a 10% discount off retail creates a 64% cost-to-value difference.
- Collect Contact Information with Qualifying ActionsAsk for contact info and permission to reach them. Add qualifying actions like attending a call, making a post, entering a group. Survey for eligibility. These actions increase engagement and give you selling ammunition.Pro tipLimit entries by time, number, or both. Match entries to how many people your team can call in 7 days.
- Run the CountdownSet a 3-7 day deadline. Update entrants daily with countdown messages plus value content. Use the Whisper-Tease-Shout approach: build excitement progressively.
- Announce Winner and Offer Promotional DealAnnounce the Grand Prize winner publicly, then contact everyone else privately to schedule a call about their promotional offer. Add a second 7-day deadline to claim the promotional offer.Pro tipHave downsells available. Present the promotional offer first; if they decline, offer the same percentage discount on any other product.
Grand Prize is $6,000 invisible braces. Promotional offer for everyone else is a $2,000 gift card toward braces. Qualifying actions include filling out a dental health survey and attending a free consultation.
Grand Prize is a $12,000 consulting package. Promotional offer is a $6,000 Partial Scholarship. Qualifying actions include submitting a business assessment and attending a strategy call.
Hormozi observed that the most effective lead generation campaigns created excitement around a tangible prize, then leveraged the audience built during the giveaway window to sell a discounted version. The system was refined across his portfolio companies.