$100M Leads
How to Get Strangers to Want to Buy Your Stuff
Oct 31, 2024

Alex Hormozi
#Business, #Marketing
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Brief summary
Alex Hormozi's book, $100M Leads , shows how to systematically generate, nurture, and convert leads into paying customers. It describes a clear process, ranging from direct outreach to scalable advertising. The goal is a system that regularly generates qualified contacts, builds trust, and makes sales predictable.
General ideas
Success comes through repetition, measurability, and clear structures.
A lead is a contact; an engaged lead shows genuine interest.
Those who give more than they ask for build trust.
More, Better, New: If something doesn't work, first do more of it until it no longer works, then try to do it better, and only then try something new.
Systems are more powerful than individual campaigns.
Contents
A lead is a person who is reachable. An engaged lead shows interest in the offer. The goal is to create a system that continuously generates new contacts and develops them into customers.
Lead Magnets
A lead magnet is a free offer that sparks customer interest. It completely solves a small, specific problem. It serves as an entry point to the main offer and builds trust.
Steps to create lead magnets:
Identify the problem
Design a solution
Specify the type of delivery (software, information, service or physical product)
Test names
Ensure ease of use
Delivering high quality
Integrate feedback and calls to action
Lead magnets demonstrate competence and deliver real added value.
4 Core Advertising Methods
The 4 core methods for generating leads and acquiring customers are:
Warm Outreach
Post Free Content
Cold Outreach
Paid Ads
These four methods form the foundation for predictable lead generation.
Warm Outreach:
The simplest method to start: contacting existing contacts. That is, people who have already given you permission to contact them (friends, family, acquaintances).
Proceed:
Send 100 personal messages daily
Choose a platform and use it consistently.
Customize messages
The ACA Framework: Acknowledge, Compliment, Ask
After some messages, present the offer.
Start with free offers, collect testimonials, increase the price
Regularly reactivate old contacts
This leads to faster customer contact and valuable feedback.
Cold Outreach:
Cold calling involves contacting people you haven't had any prior contact with. It works independently of platforms or algorithms.
Proceed:
Build target audience lists via software, brokers, or groups
Send personal, short messages
Increase contact volume through automation
Combine different channels such as email, telephone or video.
Benchmarks:
0.5 percent of calls result in customers.
0.3 percent of personalized emails lead to customers.
0.2 percent of automated emails lead to customers.
Cold outreach is controllable, reliable, and difficult to copy. Building a reliable outreach system takes approximately one year.
Free content:
Free, useful content builds trust and increases reach. The goal is to demonstrate expertise while simultaneously preparing the main offer.
Principles:
People need to be reminded more often than they need to be taught.
Repetition is more important than variety
Instead of "How to..." write "How I..."
Give-to-Ask ratio: The ratio of given value to questions about audience commitment should be at least 3.5 to 1.
The content is intended to solve real problems.
Hook, Retain, Reward: Every piece of content should have a compelling headline (hook) that is relevant to the viewer. It should include lists, steps, or stories to hold attention (retain) and ultimately answer the question posed in the hook (reward).
The content should include: past events, current events, trends, or consciously created experiences.
Formats: Lists, step-by-step instructions, personal stories
Paid Advertising:
Paid advertising. It creates reach, but no guarantee of profit.
Key figures:
CAC (Cost to Acquire a Customer): The cost of acquiring a customer.
LTGP (Lifetime Gross Profit): The average revenue generated from a single customer.
An LTGP/CAC ratio of 3 to 1 is considered optimal.
Proceed:
Select the appropriate platform
Analyze competitor ads
Advertisement with the following structure: Call Out: Address the target customer type directly and specifically. Provide Value: Deliver genuine value. CTA (Call to Action): Encourage the next step.
Simplify and customize the landing page
Determine budget based on customer value
Test ads and then scale them.
Lead Getter
Lead getters take over lead generation and free up time for growth.
Levels of leverage:
Generate leads yourself
Deploy employees for this purpose
Hire managers who can lead further lead getters
Four types of lead getters: customers, employees, agencies, affiliates
Customers
Word-of-mouth generates new leads through satisfied customers. An outstanding product ensures that customers recommend it. Recommendations reduce acquisition costs and increase customer lifetime value. When recommendations grow faster than customer attrition, growth occurs without advertising.
Focus on the best customers who get the most out of the product • Targeted growth of this customer group
Achieving exceptional results. Exceeding expectations.
Lower expectations until completion rates decline
Achieve early, small successes. The first success should occur within the first 48 hours.
Break down results into intermediate goals and communicate them regularly through process updates, making it clear what happens next.
Tell customers directly what they should buy next. Remind them immediately of further purchases after small successes.
How to ask for recommendations:
Ask customers directly to introduce someone new
Give the first customer a portion of the acquisition costs if the new customer makes a purchase. Reward both with half of the acquisition costs each.
Ask who they would like to bring to the introduction.
Organize a referral event
Employees
3D model for training employees:
Document: Record work steps in writing and create a checklist. Document the process itself.
Demonstrate: Perform tasks live. If someone gets stuck, adjust the checklist.
Duplicate: Have employees implement the task. Observe whether they use the checklist correctly. Improve the checklist if necessary.
Estimating profits by employees:
Formulas:
Cost per Engaged Lead = Total Payroll ÷ Total Engaged Leads
CAC = Cost per Engaged Lead × Customers per Engaged Lead
LTGP: CAC should be higher than 3
Example:
If $100,000 is spent and 1,000 leads are generated, each lead costs $100. With a 10% conversion rate, each customer costs $1,000. If the lifetime gross profit is $4,000, this results in a ratio of 4:1. The CAC should be less than three times the industry average.
Agencies
Agencies help you learn about new platforms and methods. They can be good partners, but often their performance declines over time.
Offer for agencies:
A collaboration lasting six months. During this time, the agency teaches you what it does. A bonus payment is given for each step explained. After the six months, the service transitions to a consulting model.
Criteria for good agencies:
They rely heavily on recommendations.
Prominent References
Waiting list
Clear sales structure
Realistic expectations with a long-term strategy
Transparent communication
Measurable methods of progress
High-priced, but efficient
Steps to hire an agency:
Speak with five to ten agencies
Understanding the working methods
Compare offers
Select an agency and get started
Learn from her
Then move to a higher level
Finally, switch to consulting
Affiliates
Affiliates are external lead getters. They are companies that advertise on your behalf on their platforms.
6 steps to affiliate marketing:
Find Affiliates : Identify companies with a similar target audience. Find out where their customers buy. Target advertising specifically to these audiences.
Make an Offer: Offer a new way to earn money
Qualify them : Turn them into customers. Train them to become experts in the product.
What to Pay : Compensation based on performance levels. 25 percent upon initial qualification. 50 percent upon full certification. 100 percent based on defined monthly customer volume. The product itself can be part of the compensation.
Letting Them Advertise : Affiliates promote the lead magnet. Using the launch structure helps bring the products to market.
Keep them: Have the affiliates promote the lead magnet and thus gain customers.
Launch structure:
Products should be released via a launch.
Whisper: Hint at the product to customers with behind-the-scenes content that sparks questions and generates interest. Up to 60 days before release.
Tease : Reveal the content and announce a release date. Post regularly every day until 14 days before the release.
Shout : Advertise heavily with bonuses, urgency, and guarantees, offering exclusive benefits for participants. Advertise twice daily during the last few days, and every 30 minutes on the final day.