Hormozi: $100M Leads

Humans are primarily status driven. And the status of one human comes from how the other humans treat them.

If your product or service changes how other people treat your customer, which it does in some way, it pays to show how. Show the people gaining status, your customers. Show the people giving it to them. If you lose weight, do your kids have a new role model? Does your spouse now decide to get healthy too? Are you more likely to get promoted at work? I’d talk about how a business's competitors notice their phones don’t ring as much because all their customers are flowing to that business. How their business owner buddies say “business must be good” when they pull up in their new car at the golf range.

I learned an important lesson. They didn't want my webinar. But they did want my case study. This accidental discovery showed me

how getting leads actually works…you have to give people something they want. The best part is - it’s easier than you think.

A lead magnet is a complete solution to a narrow problem. It’s typically a lower-cost

or free offer to see who is interested in your stuff. And, once solved, it reveals another problem solved by your core offer. This is

important because leads interested in lower-cost or free offers now are more likely to buy a related higher-cost offer later

after they get it, they should want more of what you offer. This gets them one step closer to buying your stuff. A person who pays with their time now is more likely to pay with their money later. If they think your lead magnet is worth their time they are more likely to believe your offer is worth their money

Step 1: Figure out the problem you want to solve and who to solve it for

Step 2: Figure out how to solve it

Step 3: Figure out how to deliver it

Step 4: Test what to name it

Step 5: Make it easy to consume

Step 6: Make it darn good

Step 7: Make it easy for them to tell you they want more

I went to 1274 hours of therapy so you don’t have to: here

What 400 of the best therapists would say to each of humanity’s biggest problems

Example: Imagine we help homeowners sell their homes. That is a broad solution. But what about the steps before selling a home?

Owners want to know what their house is worth.
They want to know how to increase its value. They need pictures. They need it cleaned. They need landscaping. They need minor things fixed.
They need moving services. They may need staging. Etc.

These are all narrow problems–great for lead magnets. We pick one of the narrow problems and solve it for free. And although it helps, it

makes their other problem more obvious–they still have to sell their home.

But now we’ve earned their trust. So we can charge to solve the remaining problems with our core offer and help them achieve their broader goal.

First, if your audience has a problem they don’t know about, your lead magnet would make them aware of it. Second, you could

solve a recurring problem for a short amount of time with a sample or trial of your core offer. Third, you can give them one step in a multi-step process that solves a bigger problem. All three solve one problem and reveal others.

So your three types are: 1) Reveal Problems, 2) Samples and Trials, and 3) One Step Of A Multi-Step Process.

“Reveal problem”

Works best for problems that get worse if you wait

Example: You do a posture analysis and show them what their posture should look like. You draw a clear line to what their pain-free life would look like if their posture were fixed and how you can help.

“What could go wrong if you launch an enterprise chatbot”

Example: You do a termite inspection that reveals what happens when the bugs eat their home. If they do have termites, you can get rid of them for cheaper than the cost of… another home. If they don’t, they can pay you to prevent the termites from coming to begin with!

Samples And Trials.

You give full but brief access to your core

offer. You can limit the number of uses, time they have access, or both.

This works great when your core offer is a recurring solution

to a recurring problem.

Can we create a site where you upload a snippet of code or a prompt-response pair and you get the metrics that you should be tracking?

Example: You hook them up to your faster server and show their website loading at lightning speed. They get more customers from your faster load times. If they want to keep it, they need to keep paying you.

Example: You give a free adjustment for their bad posture and they experience relief. To get permanent benefits, they must buy more.

One Step Of A Multi-Step Process.

When your core offer has steps, you can give one valuable step for free and the rest when they buy. This works great when your core offer solves a more complex problem.

Example: You give away a free wood sealant for a garage door. But the sealing process requires three different coats to protect from all weather conditions. I do the first one free,

explain how it only gives partial coverage, and offer the other two in a bundle.

Example: You give away free finance courses, guides, calculators, templates, etc. They are so valuable people really can do it all themselves. But, they also reveal the time, effort, and sacrifice of doing it all. So you offer financial services to solve all that.

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The delivery mechanism is usually:

Software: You give them a tool. If you have a spreadsheet, calculator, or small software, your technology does a job for them.

Information: You teach them something. Courses, lessons, interviews with experts, keynote presentations, live events, mistakes and pitfalls, hacks/tips, etc. Anything they can learn from.

Split testing

Headline

How to get strangers to want to buy your stuff” overwhelmingly beat “Get strangers to want to buy your stuff.” The only difference is

two little words: “how to.” And it also beat “how to get more strangers to want to buy your stuff” with a single word removed ‘more.’ Small changes can make big differences.

if you have any following at all, you can run polls like these. You don't need a lot of votes to get a directional idea. If you can’t do that, make a post on every platform and ask people to respond with a ‘1’ or a ‘2’, then count ‘em up. If you still can’t even do that, then just message people and ask.

If people respond to the poll and ask when they can get their hands on it, you have a mega winner.

Real vs. Cartoon

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Make it fast and easy to improve likelihood of consumption (and therefore uptake)

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Once the leads consume the lead magnet, some of them will be ready to buy or learn more about your offer. This is the time to give

a Call To Action. A Call To Action (CTA) tells the audience what to do next.

If you want your advertising to work. Good CTAs have two things: 1) what to do and 2) reasons to do it right now.

Reasons

Scarcity

Maybe you’re limited by customer service, onboarding, inventory, time slots per week, etc. Don’t keep it a secret - advertise it.
Ex: “The most convenient class times fill up fast. Call now to get the one you want.”
“I can only handle five people per week, so if you want it solved soon, do xyz…”

Urgency is when people act faster because they have a short amount of time.

Ex: “Our July 4th promotion ends Monday at midnight, so if you want it, take action now.”
“Through Friday, I’ll also throw in a free hat to anyone who buys more than three books. So if you wanna look slick in an Acquisition.com hat, buy now.”
The Urgency Tactic I Use The Most: I put time limits on bonuses. I make a handful of valuable bonuses and rotate them each week. And if they don't take action by the week

Fake

You can even have a fake reason with the CTA - Because…moms know best. Because…your country needs you. Because…it’s my birthday, and I want you to celebrate with me.

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Let’s say you make $10,000 of profit on your core offer. And it costs you $1000 in advertising to get someone on a call for it. If

you close one out of three people, it costs you $3000 in advertising to get a customer. Since we have $10,000 in profit to work with,

that’s fine. But we’re savvy, we can do better. So, let’s do better. Imagine you advertise a free lead magnet instead of your core offer. Your lead magnet costs you $25 to deliver, and because it’s free to them, more will engage. The extra engagement means it

only costs $75 in advertising to get someone on a call. All in, it’s $100 per call. By delivering value before they buy, you get ten times more engaged leads for the same cost.

Now, let’s say one out of ten folks who get the lead magnet buys your core offer. This means your new cost to acquire a customer is

$1000 ($100 x 10 people). We just cut our cost to get a customer by 3x. So instead of spending $3000 to get a new customer, by

using a lead magnet, we spend only $1000. Given we make $10,000, that’s a 10:1 return. So if we keep our advertising budget the same, and use a lead magnet, we triple our business.

“FREE Case Study: How we added 213 members and $112,000 in revenue to a small gym in San Diego.”

“How do I know if they’re interested?” → Make them an offer.

...By the way, do you know anybody who is (describe their struggles) looking to (dream outcome) in (time delay)? I’m taking on five case studies for free, because that’s all I can handle. I just want to get some testimonials for my service/product. I help them (dream outcome) without (effort and sacrifice). It works. I even guarantee people get (dream outcome) or I work with them until they do. I just had a girl named XXX work with me (dream outcome) even though she (describe the same struggle your contact has). I also had another guy who (dream outcome) and it was his first time. I’d just like more testimonials to show it works across different scenarios. Does anyone you like come to mind? (Pause if on the phone) …and if they say no…Haha, well…does anyone you hate come to mind? (ha) This helps break any awkwardness.

I help (ideal customer) get (dream outcome) in (time period) without (effort and sacrifice) and (increase perceived likelihood of achievement

Email: Are you still looking to [4 word desire]? .. to buy your dream home?

Free content distribution: He said, “Bro, anyone telling you there’s some secret is trying to sell you something. We just put out as much as we possibly can. Pull up your Instagram and pull up my Instagram... Look. You’ve posted once today. I posted three times. Pull up your LinkedIn… Look. You posted once this week. I posted five times today.” He went platform by platform. I grew more embarrassed with each comparison. “You just gotta do more.”

Make content more engaging: . Conflict - of opposing ideas, opposing people, nature, etc.

Example: Pineapple vs no Pineapple on pizza? Conflict!

Lists: Good lists in free content also follow a theme. Think “Top 10 Mistakes” or “5 Biggest Money Makers” - Example: “7 Ways I invested $1000 in my 20s That Paid Off Big” ii) Example: “28 Ways To Stay Poor”

Steps: Steps are actions that occur in order and accomplish a goal when completed. Provided the early steps were clear and valuable, the person will want to know how to do them all to accomplish the overall goal. i) Example: “3 Steps to Creating a Great Hook” ii) Example: “How I Create a Headline in 7 Steps” iii) Example: “The Morning Routine That Boosts My Productivity

Steps are actions that must be done in a specific order to get a result. So steps are less flexible but have a more explicit reward. Lists can have just about anything on them in any order you want.

Make all your content for strangers. If you want to grow your warm audeince, the friend that got tagged by their friend must be able to access the content and enter your world.

the give : ask ratio has been well-studied. Television averages 13 minutes of advertising per 60 minutes of air time. That means 47 min are dedicated to ‘giving,’ and 13 min are dedicated to ‘asking’. That’s roughly a 3.5:1 ratio of giving to asking. On Facebook, it’s roughly 4 content posts for every 1 ad on the newsfeed. This gives us an idea of the minimum give : ask ratio we can sustain

PS - everyone reads these. Hormozi tries to include these in every content piece he writes.

Lead Magnet Example: If I just talked about a way to get more leads on a post/video/podcast/etc., I would then say, “I have 11 more tips that have helped me do this. Go to my site to grab a pretty visual of them.”

Switch from “How to” to “How I.” From “This is the best way” to “These are my favorite ways” etc. When you talk about experience, no one can question you. This makes you bulletproof.

Some content will perform well and get more people interested in buying your stuff. That content helps your sales team. Create a master list of your “greatest hits.” Label each ‘hit’ with the problem it solves and the benefit it provides. Then, your sales team can send it before or after sales calls and help people decide to buy

Cold calling

Personalization is what gets your foot in the door to get the sale. Basically one to three pieces of information we can find that a friend might know about the prospect. Then we want to complement them on it, and ideally, show them how it benefited us

…The person says “” then pausing (like a normal person). You’d say, “yea…who’s this?” Now, if that person then went on to say, “it’s Alex…then pauses…I watched a few of your videos and read that recent blog post you wrote on dog training. It was killer! Really helped me out with my doberman. She’s a beast! That peanut butter trick really helped. Thanks for that.” You’d still be wondering what’s going on. But you know what you wouldn’t be doing?…hanging up. Then you hear, “Oh yea, sorry, I got ahead of myself. I work for a company that helps dog trainers fill up their books. We like to partner with the best in the area. So I’m always on the lookout. We worked with someone about an hour north from you…John’s Doggy Daycare…heard of them?”

You’d respond yes or no (it doesn’t matter), and they’d say, “Yea, we ended up getting them 100 appointments in 30 days using a combination of text email and some ads. Do you offer similar services to them?” To which you’d probably say yes. Then they’d say, “Oh that’s perfect. Then we’d be able to use that same campaign in your market and drive leads over to you. If you got a boatload of high paying new dog training customers you wouldn’t be upset with me would you?” You’d laugh lightly. “Okay great. Well…tell ya what…I can walk you through the entire thing soup to nuts later today. Will you be around at 4?”

Automated Examples: We can send a pre-recorded voice memo to someone’s direct messages. We can send a pre-recorded voicemail to someone’s voicemail box. We can send templated emails to an inbox or a templated text to someone’s phone. We can send a pre-recorded video.

Imagine you really needed to get a hold of your parents because something important came up. What would you do? You’d probably call them, text them, leave a voicemail, etc. And if they still haven’t responded, what would you do? You'd call and text them again (probably shortly thereafter). It's the same way with prospects. They are in danger of living life without your solution. Save them!

Personally, I like to email first. You know why? Because most people don’t respond. If someone doesn’t respond to one of your reach out methods, use that as a reason to follow up with another method. “Hey I’m calling you to follow up about my email.”

Lookalike audience - Start with your list of current and previous customers. If your customer list is big enough to meet the platform minimum, use it. If it’s not big enough, add your warm reach out list. If it’s still not big enough, add your cold reach out leads to hit the minimum

Humans are primarily status driven. And the status of one human comes from how the other humans treat them.

if your product or service changes how other people treat your customer, which it does in some way, it pays to show how. And talking about the value elements from someone else’s perspective shows all the ways it'll improve the status of your customer. So we want to outline two groups of people. The first group is the people gaining status, your customers. The second group is the people giving it to them: Spouse, Kids, Parents, Extended Family, Colleagues, Bosses, Friends, Rivals, Competitors, etc.

As in, if you lose weight, do your kids have a new role model? Does your spouse now decide to get healthy too? Are you more likely to get promoted at work? Science says - yes. Does

your frenemy no longer make those little jabs at dinner?

I’d talk about how their competitors notice their phones don’t ring as much because all their customers are flowing to your new customer. How their business owner buddies say “business must be good” when they pull up in their new car at the golf range.

Callouts - grab the person with your ad headline

A word or set of words putting people into a group. These include features, traits, titles, places, and other descriptors. Ex: *Clark County Moms* *Gym Owners* *Remote Workers* *I’m looking for XYZ* etc. To be most effective, your ideal customers need to identify with the label.
Yes-Questions: Questions where if people answer “yes, that’s me” they qualify themselves for the offer. Ex: *Do you wake up to pee more than once a night?* *Do you have trouble tying your shoes?* *Do you have a home worth over $400,000?*
If-Then Statements: If they meet your conditions then you help them make a decision. *If you run over $100,000 per month in ads, we can save you 20% or more... *If you were born between 1978 and 1986 in Muskogee Oklahoma, you may qualify for a class action lawsuit…*If you want to XYZ, then pay attention…*
Ridiculous Results: Bizarre, rare, or out of the ordinary stuff someone would want. *Massage studio books out two years in advance. Clients furious.* *This woman lost 50 pounds eating pizza and fired her trainer*
Visually show the Scene: Think showing the Yes-Questions and If-Then statements. Ex: An ad with… a) A person tossing and turning in bed calls out people with sleep troubles. b) A pear next to an hourglass can call out people with a pear shaped body. c) A room full of stuff stacked to the ceiling calls out people with too much junk. d) A rock hitting a window calls out people with broken windows. e) A local landmark. Locals think - “Hey, I know that place!” and pay attention

People often only think of how their decisions affect the here and now. But if we want to be extra compelling (and we do), we should also explain what their decisions led to in the past and what their decisions could lead to in the future. We do this by getting them to visualize through their own timeline (past–present–

future). This way, we help them to see the consequences of their decision (or indecision) right now.

Let’s use the weight loss example from earlier from their perspective. We’d show them getting teased as a kid (past) struggling to button their favorite pair of jeans (present) or moving up yet another belt loop (future). What does that nightmare look like to their spouse? To their rivals? How embarrassing!

We can also run the same timeline through someone else’s perspective. Their kid asking why other kids make fun of them (because they passed on bad food habits) (past), or how their kids complain now that the other kids’ dads participate at practice when they don’t (present), or how their doctor said they might not walk their daughter down the aisle at her wedding (future). Note: this is all the bad stuff they want to avoid. Our next copy elements would contrast those with the good stuff that could happen (present and future) if they buy our thing.

if you remind them of the action they just took

(CTA), and show how taking the next action aligns with it, you’ll get more people to take the second action (Contact Info). For example, “Now that you just did A, you need to do B to get the most of A.” Or “Doing A makes you a ‘doing A’ kind of person. Doing A kind of people, do B.”

Slowly lower the promises you make when making offers. Keep lowering them until your close rates lower. At that point, stop. This maximizes how many customers you get and the goodwill you build with them. Seek to maximally exceed expectations.

Here’s the process I use to get more people better results:

Step #1: Survey customers to find the ones who got the best results.

Step #2: Interview them to find out what they did differently.

Step #3: Look at the actions they had in common.

Step #4: Force new customers to repeat the actions that got the best results.

Step #5: Measure the improvement in average customer results (speed and outcome)

Step #6: Match the conditions of your guarantee to the actions that get the best results to get more people to do them.

Keep making your product better:

Step #1:Use customer service data, surveys, and reviews to find the most common problem with your product.

Step #2:Figure out your fix. To get a headstart, get feedback from the customers who made your product work for them despite the problem it has.

Step #3:Use that feedback to improve your product.

Step #4:Give the new version to a small group of your (struggling)

customers.

Step #5:Get your next round of feedback. If you solved the original problem, then roll it out to all customers. If it didn’t, go back to step #2.

Asking for referrals only works when you treat it like an offer. The referrals come when you show the value the customer gets when they refer their friends.

I’d rather pay customers than a platform any day of the week. Pay your average cost to acquire a customer (CAC) to the referrer or the friend.
This works better if you pay half your CAC to both parties (the current and the new customer). Ex: We sell $500 programs. Our cost to get a customer is $200. For every friend someone refers, we give them $100 cash, and give their friend $100 off signing up. Good for up to 3 friends.
Can ask for a referral right after cold traffic signs up.
On the sales contract or checkout page, ask for some names and phone numbers of people they’d like to do this with. Show them how they will get better results when they do it with a friend. “People who do our program with someone else tend to get 3x the results. Who else could you do this program with?” Say WHO not if. “Stacy got $100 off because she referred three friends. I'm happy to give you $100 if you refer me three friends. Who do you have in mind?”
You can ask for referrals as a way to negotiate a lower price. In other words, if someone wants to pay $400 and your price is $500, you can give them the discount in exchange for an introduction to three friends. “I can’t do anything less than $500 down, but if you make a 3- way text introduction to a few of your friends right now, I’d be happy to cut that initiation fee.”
Make referrals events. “Accountability buddy promotion” “bring a friend day”. “Spouse challenge” “Saastr challenge”
Create bonuses for people who 1) refer and 2) leave a testimonial. A few examples: Unlock VIP bonuses, courses, tokens, status, training, merchandise, service levels, premium support, additional hours of service, etc.

I start every agency relationship with a purpose and a deadline to fulfill it. I open by saying: “I want to do what you do in my business, but I don’t know how.

I’d like to work with you for 6 months so I can learn how you do it. Plus, I’ll pay extra for you to break down why you make the decisions you do and the steps you take to make them. Then, after I get a good idea of how it all works, I’ll start training my team on it. And once they can do it well enough, I’d like to change to a lower cost consulting arrangement. This way, you can still help us

if we run into problems. Are you opposed to this?” In my experience, most agencies are not opposed to this. And if it doesn't work for them, that’s perfectly fine. Just move on to the

next agency. But, before you start kicking everyone to the curb, be willing to negotiate. L At some price, it’s worth it for both of you. Viva capitalism! This is how I use agencies now. Like when I wanted to learn YouTube, I actually hired two agencies. Once our videos beat their videos, we dropped down to consulting only.

I hire one “good enough” agency to learn the ropes of a new platform. Then, I hire a more

elite agency to learn how to maximize it–and I cannot recommend this strategy enough.

If you are upfront about your intentions and the agency agrees, you get the best of both worlds. You get better short-term results

because they (probably) know more than you. And, you get better long-term results because you learn how to do it yourself or your team learns to do it for you. You also spend the maximum amount of time with their best reps.

Affiliate - I’ll pay you 2k when a deal closes

Call outs for potential affiliates often include:

The affiliate business owners themselves - ATTENTION SPA OWNERS

The affiliate’s customers - Do you work with busy professionals who spend all day in meetings?

Results the affiliate businesses promise - To the heroes who heal the stress of others...

Products and services the affiliates deliver - If you sell lotions or scented oils this is for you...

To our own customers - Do you know anyone who owns a spa?

Make them buy and preferably use the product to keep affiliate status. This is the lowest barrier investment that’s worked for me. I’ve found the more money an affiliate invests in your product, the more money they make.

Make them buy in bulk. Here's how you phrase the offer: "So you want anything extra or just go with the minimum order?" By presenting a minimum purchase, they will at least buy that.