If your only case studies come from small businesses, can you really persuade wealthy individuals or large corporate clients? Alex Hormozi answers with a practical strategy: eliminate every barrier to entry and every source of risk the client perceives.
1. Why Customers Hesitate to Buy: Three Components of Risk
One of the questions new business owners and freelancers ask most often is, "How can I win a large client when I only have small references?" Alex Hormozi offers a clear, tactical answer: radically reduce the client's risk.
The fundamental reason people do not buy a service or product is always risk. More specifically, the obstacles fall into roughly three categories:
- Price: the burden of the cost
- Risk: anxiety that the desired result may not materialize
- Work: the effort and time the customer must invest personally
"The reason people don't buy ultimately comes down to risk. Whether it is the price, the danger, or the amount of work involved, it is a risk problem. The deal does not happen because you ask too much of the customer or make them bear too much outcome risk relative to what they pay."
What should you do when you lack early references? The answer is simple: drive both price and effort toward zero. Say, "I will do all of it for free" (zero price), and, "You will not need to lift a finger; I will handle everything" (zero effort). Then the customer's only remaining risk is the possibility that the desired result will not happen. You have effectively reduced the risk they must bear to the floor. ✨
2. Alex Hormozi's Real Example: The Risk-Free Shorts Editor
Hormozi tells a vivid story about a Shorts video editor he once worked with. Hormozi was perhaps the editor's first or second client, so the editor had very little experience or track record. Yet he opened the door with a remarkably smart approach. 🎬
"He made this offer: 'I saw that you already have a lot of videos on YouTube. I will edit them into short clips for you. You won't have to do anything, and you won't have to pay me. Just give me permission to publish them on the channel. If even granting access feels uncomfortable, I will send you the finished videos and you can upload whichever ones you like yourself.'"
With nothing to lose, Hormozi readily agreed.
"I said, 'Great. Make a few videos and send them over. I'll look at them and upload them myself if I like them.' That was how our collaboration began."
By making a completely risk-free offer, the editor won an opportunity with a major client far beyond what his experience or stature would normally justify. Once Hormozi was satisfied with the videos, he readily gave the editor permission to publish on the channel.
The editor did not stop there. He suggested that performance would be much stronger if Hormozi filmed videos specifically for Shorts instead of merely repurposing existing footage. Eventually, the editor began visiting Hormozi every quarter. In a single day they would record around one hundred Shorts, creating an enormous content pipeline for the next ninety days.
"He did an excellent job with even the very small opportunity he was given. As the saying goes, 'To whom much is given, much is required.' When someone multiplies a small responsibility several times over, you naturally give that person a bigger opportunity. He proved he could deliver amazing results from a small opening, so I kept giving him larger roles."
3. Prove Yourself Through Small Opportunities, Then Move to Premium Pricing
Hormozi points out a fatal mistake many people make when pursuing large or wealthy clients: they ask too much of the other party before they have a proven record. 💡
"Many people make a fatal mistake when trying to land high-net-worth clients. They attempt to push all the risk onto the other person. In effect, they say, 'Pay me a lot of money, do all this work yourself, and also bear the risk that it may not produce a result.' From the other person's perspective, that is an absurd request."
At first, the top priority is simply to get a foot in the door. You must produce results even on a small assignment, then accumulate trustworthy data and case studies.
"Once you have enough case studies and evidence, you can say with confidence, 'I know I can help you because I have a proven record.' Only when you have established that track record have you earned the right to charge a premium price."
Closing
To persuade a major client without a substantial portfolio, you need a strategy that completely removes the client's barriers and risk by lowering the price and taking the work onto yourself. Even if you begin for free, multiply the value of the small opportunity you receive. That builds trust, and accumulated trust becomes the powerful reference that eventually allows you to command a higher price. 🚀
