EVERY entrepreneur should hear this... BEFORE it's too late | Alex Hormozi Interview

Lead Generation Strategies for Salespeople and Entrepreneurs

In this section, the speaker discusses how to create success as a new salesperson or entrepreneur by focusing on lead generation. He introduces his book "100 Million Dollar Offers" and mentions that his second book will be about lead generation.

Six Client Acquisition Channels

• There are six client acquisition channels, but the core four are talking to people you know and don't know through one-on-one or one-to-many public and private communication.

• Warm reach outs involve talking one-on-one to people you know, while cold reach outs involve talking one-on-one to people you don't know.

• Posting content is an example of talking to people you know one-to-many, while running ads is an example of talking to people you don't know one-to-many.

Increasing Leverage

• Once you have mastered the core four channels, you can increase your leverage by doing more of it, doing it better, or adding another channel.

• For instance, if you're doing warm reach outs via cold call, you could also add email as another platform.

• Gaining leverage involves getting more per unit of time since there's only a certain amount of hours in a day.

Getting Leads

• The next level of leverage involves getting leads. You can get leads that are customers, affiliates, agencies or employees.

• Referrals are unique because they generate significantly more leverage than other types of leads. Spending more time upfront on product development ensures that customers will tell others about your product/service.

Compounding Machine for Business

• A compounding machine for business requires selling products/services that people don't stop buying or finding people who never stop referring others to your product/service.

Two Types of Businesses that Compound

In this section, the speaker discusses two types of businesses that compound and how they work.

LTV of a Bank Customer

• A bank customer has an enormous lifetime value (LTV).

• It is hard to acquire bank customers, but once acquired, they tend to stay with the bank for a long time.

• Banks offer various services such as payment processing and loans to keep their customers engaged.

Solar Sales Business

• The solar sales business is a one-time purchase business where people buy roofs only once.

• However, it is more like a recruiting salespeople business from a structural perspective.

• The compounding function in this type of business comes from acquiring new salespeople every month who reliably generate sales.

Transitioning from Paid Ads to Direct Outbound

In this section, the speaker talks about transitioning from paid ads to direct outbound and why it was necessary.

Single Channel Dependency

• Gym Launch was heavily dependent on paid ads for customer acquisition.

• Potential acquirers were not interested in buying the company because it had single-channel dependency.

• To make the company sellable, multiple channels of acquisition were needed.

Matching Paid Ads with Cold Outbound

• Gym Launch did not transition out of paid ads but instead matched them with cold outbound.

• Adding more flows when you have bandwidth is better than stopping the flow altogether.

Importance of Picking One Acquisition Channel

• The first directive in building a compounding business is to pick one acquisition channel and commit to it for a long period of time.

• Trying to do too many acquisition channels at once can lead to failure.

How Outbound Began for Gym Launch

In this section, the speaker talks about how outbound began for Gym Launch.

Covid-19 Impact on Gyms

• Covid-19 had a significant impact on gyms.

• A person reached out to the speaker on Instagram and thanked him for a job opportunity that got pulled due to lack of lead flow.

Discovering a Gym Software Company

• The person who reached out was working at a gym software company that was doing $10 million in revenue per month.

• This piqued the speaker's interest, and he started exploring outbound as an acquisition channel.

Rebuilding the Sales Process

In this section, the speaker talks about how they rebuilt their sales process and iterated on it until it was successful.

Rebuilding the Sales Process

• The speaker hired someone to be an inbound closer for them from paid ads.

• The new hire was given 90 days to get a deal and rebuild the sales process.

• They had to figure out each step of the process, including getting lists, cleaning them up, picking a retiree, and what to say on the phone.

• They figured out that it was actually a three-call close with specific transitions between each call.

• They started giving away something with tangible value which helped increase throughput on the front end.

Outbound vs. Branding

In this section, the speaker discusses whether new salespeople should focus on outbound or branding first.

Outbound vs. Branding

• It's a tough question because brand is important but outbound is also necessary.

• Most people want to run right to sexy channels like YouTube videos instead of focusing on direct outbound first.

• For new salespeople, it's important to focus on outbound first because it requires fewer skills and more character traits like grit and patience.

Content vs Outbound

In this section, the speaker discusses the pros and cons of content marketing versus outbound marketing.

Content Marketing

• Posting content has more leverage but requires more skills and innovation.

• A content base raises the tide of everything else you do.

• In the first couple phases of business, content is there to make you look like a professional.

Outbound Marketing

• If you want to make money today, outbound will make you money faster.

• Cold outbound with some developed brand will get higher returns on it.

Creating Success - Skills, Traits, Beliefs

In this section, the speaker talks about creating success through skills, traits, and beliefs.

Skills

• Doing more is better than reading books.

• Repetition is the mother of skill.

Traits

No bullet points available for this section.

Beliefs

No bullet points available for this section.

Traits of Successful People

In this section, the speaker discusses three traits of successful people - Focus, Delayed Gratification, and Simple Scales over Fancy Fails.

Focus

• Focus is a critical trait for success.

• Success comes down to doing the obvious thing for an inordinate amount of time without thinking you're smarter than you are.

• Most plans succeed if they are executed with vigor consistently for an extended time. Even mediocre plans done for a decade beat a perfect plan done for a day.

• Many entrepreneurs suffer from shiny object syndrome and start building multiple half-built bridges instead of focusing on one project until completion.

Delayed Gratification

• Delayed gratification is another important trait for success.

• Entrepreneurship requires putting brick by brick together to assemble the bridge. It takes time and patience to achieve success.

Simple Scales over Fancy Fails

• Simple scales over fancy fails is the third trait of successful people.

• Most entrepreneurs never get past step three because they were reinforced by the excitement of jumping ship the first time they did.

The Cure for Shiny Object Syndrome

In this section, the speaker discusses how to overcome shiny object syndrome and stay focused on the main goal.

Traits to Overcome Shiny Object Syndrome

• Having a larger time horizon through which you make your decisions.

• Making sure that every decision you make is one of the ones that matter by sticking with it.

Importance of Sticking with Your Plan

In this section, the speaker emphasizes the importance of sticking with your plan and not getting distracted by shiny objects.

Negative Consequences of Changing Business Directions

• Every time he changed business directions, he was negatively impacted.

• The more successful you become, the harder it is to stick with your original plan.

Making Decisions That Matter

• Only a handful of decisions shape your life when you look back on it.

• Make sure that every decision you make is one of the ones that matter by sticking with it.

Focusing on One Thing

In this section, the speaker talks about focusing on one thing instead of trying to do everything at once.

Benefits of Focusing on One Thing

• Focusing on one thing can lead to success.

• Entrepreneurs often feel like they need to hedge against everything, but in reality, they only have enough resources to focus on one thing.

Traditional Education vs. Alternative Education

In this section, the speaker discusses his views on traditional education versus alternative education.

The Ignorant Tax

• Whatever you want, there is a cost to getting it.

• Investing in courses, mentorships, and learning from people can be more valuable than traditional education.

SME 500 vs. S&P 500

• The SME 500 outperforms the S&P 500 because they focus on one thing.

• Companies that try to do too many things at once often fail.

Tale of Two Jacobs

• One Jacob went to college and got a degree but struggled to find a job.

• The other Jacob invested in himself and became successful without a college degree.

The Cost of Not Knowing How to Make Money

In this section, the speaker talks about the cost of not knowing how to make money and the value of education, mentorship, and community.

The Cost of Not Knowing How to Make Money

• It costs a lot of money every year to not know how to make money.

• Education has changed with media and there is a lot of good information available now.

• There is value in mentorship or coaching but it's important to find someone who has helped people like you before.

• Community can be very valuable for learning from others' experiences and getting support.

Investing in Yourself

• Investing in mentorship got the speaker further than their college education did.

• Nothing will save you if you don't put in effort and execution is key.

• Becoming number one in any community requires an agreement with oneself to be the best student.

The Demand for Income Generating Skills

In this section, the speaker discusses how the e-learning coaching industry has grown due to the demand for income-generating skills.

The Shift in Supply and Demand

• The demand for income-generating skills hasn't gone away, but the supply of where they came from has shifted.

• Due to media and platform distribution, people can teach real skills to others for free through communities.

• People have to pay an "ignorance tax" with time or money to learn these skills.

Sales Skills

In this section, the speaker talks about sales skills and how they relate to belief and conviction.

Transferring Belief Through Conviction

• Sales is one's ability to transfer belief to another person through conviction.

• If you truly believe in what you sell, selling is actually very easy.

• Hard sales are bad branding because it means you lack a brand.

• Brand is more important than hard sales.

Four Key Sales Skills

Labeling

• Labeling is when you give something a name that resonates with someone else's identity.

Selling the Vacation

• Selling the vacation is when you sell someone on a future outcome that they want.

Sacrificial Lamb

• Sacrificial lamb is when you offer something small as a sacrifice in order to get something bigger in return.

Understanding Labeling

In this section, the speaker explains what labeling is and how it can be used to identify objections early in a sales pitch. The speaker also provides an example of how labeling can be used to overcome objections.

Labeling and Objections

• Labeling is a useful tool for identifying objections early on in a sales pitch.

• When a prospect raises an objection, it's important to confront the label they've put on their experience and change it.

• By changing the label, you can help prevent objections from detonating during the close.

Proactive Labeling

• Proactive labeling involves ascribing positive traits to someone earlier in the sale that they will find agreeable.

• Positive labels are more likely to be accepted by prospects if they align with their self-image.

• People are more likely to comply with something that makes them appear consistent with their own commitments.

Ethical Use of Labeling

• It's important to use labeling ethically by not lying about the association being made for the person.

English Focusing on Desired Outcome

In this section, the speaker emphasizes the importance of focusing on the desired outcome rather than how to get there. He gives an analogy of selling a vacation experience versus selling a plane flight.

Selling Experience vs. Deliverables

• The speaker compares two ways of selling: describing the plane flight and TSA process versus describing the experience of enjoying Maui's white sand beaches.

• People make decisions emotionally, so it's important to focus on the experience and benefits rather than just deliverables.

• The higher the acumen of the buyer, the less emotional the pitch should be.

English Speaking Against Your Own Interests

In this section, the speaker talks about how speaking against your own interests can build trust and rapport in sales conversations.

Sacrificial Lamb Technique

• Speaking against your own interests is called "the sacrificial lamb" technique.

• The speaker accidentally used this technique when he ran out of a product and recommended a cheaper alternative that wasn't as good as their product.

• By speaking against his own best interest, people trusted him more and were more likely to buy from him.

Better Returns with Trade-offs

In this section, the speaker discusses how their company can provide better returns than the competition, but there are trade-offs that come with it.

Better Returns with Trade-offs

• The speaker explains that in the first 60 days, the competition may provide more returns. However, after day 60, their company will beat them significantly.

• The speaker notes that people may not believe their claim of better returns without resistance. They suggest being honest about trade-offs and downsides before presenting the benefits.

• The speaker emphasizes that every upside has a downside and suggests speaking to both sides of the coin before presenting a claim.

Fair enough Alex dude I appreciate you very very much we love the work that you're doing can't wait to see what comes out of the acquisition.com camp