How To Get Customers So Fast It Feels ILLEGAL | Ep 813

Founders must master the fundamentals of their business, including how to acquire and serve customers

Every founder needs to have a profound understanding of how to acquire and serve customers because these elements are fundamental to every business, according to Hormozi. While it is possible to outsource various other business functions, customer acquisition and service delivery are core and should be mastered internally.

Mastering customer acquisition and delivery is essential for every business, while other functions can be outsourced

Hormozi suggests that other aspects of a business, such as certain back-office operations or secondary functions, can be outsourced to focus on the core competencies. However, comprehending the intricacies of customer acquisition and ensuring quality in product or service delivery are critical areas where the founder's attention cannot be substituted.

Founders should stay closely involved in high-leverage marketing and sales activities rather than delegating them entirely

Staying involved with marketing and sales allows founders to leverage their strongest skill set and maintain quality, as opposed to depending on a team that might not bring the same level of expertise or understanding of the founder's vision. Hormozi advises founders to know the business fundamentals well enough to decide if a large team is necessary or if a more streamlined team could suffice.

A constant connection to high-impact business areas is crucial. Hormozi uses the phrase "knowing where ...

Gaining new customers rapidly is essential for the growth and sustainability of a business. Alex Hormozi shares strategies to increase customer acquisition effectively.

Give away valuable content or services for free to generate high-quality leads

One of the most effective strategies Hormozi suggests is to look at the offerings your competitors charge for and, after assessing the hard costs, offer something of similar value for free. This could include parts of a service they would typically pay for, such as certain components of SEO services.

Identify high-value offerings that competitors typically charge for, then provide them for free to attract prospective customers

An example provided illustrates a competitor who charges for comprehensive SEO services, including adding backlinks to the prospect's site. By giving away certain components of these services for free, you can generate a large number of leads.

Qualify leads by only offering the free value to customers who meet certain criteria, reducing acquisition costs

However, Hormozi stresses the importance of qualifying leads. By only offering your valuable free services to those who fit a particular customer profile, you can ensure that you’re only incurring costs for leads that have high potential for conversion. Adjusting qualification criteria, you can further reduce the average lead cost, enhancing the strategy’s efficiency.

Focus on reducing the number of "need-to-believes" for customers to make a purchase

Hormozi introduces the concept of "need-to-believes," which are the minimal beliefs a customer must have to decide to make a purchase.

Businesses with fewer customer beliefs required for purchase can achieve faster growth

Companies that simplify their offer so that customers require fewer shifts in belief to make a purc ...

Alex Hormozi articulates the advantages of prioritizing pre-production in marketing activities and the profound impact of split-testing various campaign aspects to achieve sustainable performance improvements.

Investing heavily in pre-production of marketing assets yields higher returns than post-production

Carefully planning and crafting content, ads, and campaigns before execution leads to better results than relying on post-production fixes

Hormozi emphasizes the maxim "pre is greater than post," arguing that the highest leverage action in marketing is to invest time in pre-production. People often forget to properly advertise and rush content creation, resorting to fixing issues afterward—a process Hormozi describes as high-cost and low-leverage. He argues that even a poorly executed but well-thought-out concept can attract significantly more viewers than poorly conceived content.

Prioritizing pre-production minimizes rework and enhances the impact and efficiency of marketing efforts

Hormozi explains that by focusing on pre-production—analyzing past successful ads and planning visual aids—his team reduces the need for extensive post-production work. With thorough pre-production, the recording process becomes succinct and requires minimal subsequent editing. This investment in pre-production results in a more rapid and efficient creation of ads and ultimately enhances the comprehension of educational content, which is often the primary marketing aim for businesses.

Split-testing different elements of marketing campaigns is a high-leverage activity

Hormozi, without using the term "split-testing" directly, underscores the significant performance boosts that can be achieved by methodically testing offers, visual elements, and third-party integrations.

Systematically testing offers, packaging, visuals, and third-party integrations can produce significant performance boosts

He acknowledges that split- ...

Alex Hormozi shares insights on using potential negatives in marketing and minimizing customer assumptions to build trust and accelerate business growth.

Embracing and proactively addressing potential customer objections and concerns builds trust

Hormozi advises making the truth your ally by putting your negatives out in the marketing so that people believe the positive aspects as well. An honest approach to potential customer objections creates a more authentic and compelling marketing narrative.

Acknowledging and framing potential negatives as positives can make the marketing more compelling and authentic

Hormozi suggests framing negatives as positives; for instance, a small business's limited capacity implies scarcity and a high level of personalization, which can be appealing to customers. A gym owner might tell customers outright about limited parking or a smaller size but highlight that these aspects are quickly forgotten because of the fun environment inside.

Controlling the narrative around potential customer concerns prevents them from becoming liabilities

By addressing flaws or issues publicly before customers do, businesses can turn potential negatives into assets. Hormozi gives the example of a gym owner using his lack of fitness to appear more authentic, disarming prospects of their doubts and preventing others from using these flaws against him.

Minimizing the number of beliefs customers must have to make a purchase enables faster growth

Businesses can grow faster by reducing the complexity of their customer’s decision-making process, thereby making it easier for them to make a purchase decision.

Reducing "need-to-believes" streamlines the cus ...

Leveraging existing audiences and distribution through strategic partnerships is a powerful growth lever

Alex Hormozi underscores the significance of tapping into existing audiences and forming strategic partnerships as an efficient way to accelerate customer acquisition.

Offering incentivized, high-value products or services to other businesses' customers can rapidly scale acquisition

Hormozi suggests that businesses should aim to provide a significant value proposition to incentivize partnerships. Rather than offering a typical 20% referral fee, which may not sufficiently motivate someone to market to their customers, Hormozi advises offering businesses 100% of the proceeds from a product sold to their customers. This high-value proposition can greatly increase the likelihood of scaling customer acquisition quickly.

Structuring affiliate partnerships in a way that strongly incentivizes partners leads to greater engagement and results

Further, Hormozi discusses the importance of creating affiliate offers that are so attractive that they feel like a considerable win for the affiliates. This type of structuring should make affiliates eager to engage and refer customers. He suggests setting a floor price for affiliates to ensure the customers are the right fit for the business and making partnerships compelling enough to change affiliate behavior, allowing them to keep all profits from the initial sale.

Pursuing inbound demand by building a strong brand and reputation is a key driver of growth

Hormozi believes in the power of brand-building to drive inbound demand, avoiding the need to compete on typical terms such as price.

Investing in content, thought leadership, and brand-building establishes proprietary lead sources

Contemplating the benefits of a massive business brand, Hormozi plans to invest in creating content and publishing books to position himself as a knowledgeable figure in the business space. This appr ...