$100 Million Leads - Alex Hormozi (Animated Summary)

Summary

This video script offers entrepreneurs a comprehensive guide to generating leads, emphasizing the importance of promotion and the concept of engaged leads. It introduces 'Lead Magnets' as solutions to specific problems, revealing the need for a main offer. The script outlines strategies from Alex Hormozi's book, '100 Million Dollar Leads,' including leveraging warm and cold audiences, content marketing, and paid ads. It also discusses utilizing customers, affiliates, employees, and agencies as 'lead getters' to expand reach and grow the business.

Takeaways

• 🚀 Every entrepreneur's dream is to have a flood of leads interested in their products or services, and lack of promotion is often the reason for insufficient lead generation.
• 🔍 A lead is a person you can contact, either physically or through some form of contact information, and the ultimate goal is to have engaged leads who show interest in what you sell.
• 📚 '100 Million Dollar Leads' by Alex Hormozi focuses on generating interest and leads for your offer, building on concepts from the first book in the trilogy, '100 Million Dollar Offers'.
• 🌟 A Lead Magnet should be a complete, free or low-cost solution to a specific problem that reveals another problem solved by your main offer, thus attracting prospects in quantity.
• 💡 Lead Magnets can take various forms, such as revealing an unknown problem, offering a trial of a service, or providing the first step of a multi-step offer for free or at a low cost.
• 🛠️ Effective Lead Magnets can include access to software, valuable information, a free or low-cost service, or a complimentary product, aiming to provide more value than the cost of the main offer.
• 🤝 There are two categories of audiences: Warm (those who know you) and Cold (those who don't), and two types of communication: One to One and One to Many.
• 🔄 The 'Core Four' promotional methods include Warm Outreach, Warm Content Sharing, Cold Outreach, and Paid Ads, each with specific strategies for engaging leads.
• 📈 Measuring the Lifetime Gross Profit and Customer Acquisition Cost is crucial for understanding the profitability of promotional campaigns and making informed decisions.
• 👥 Lead getters, such as Customers, Employees, Agencies, and Affiliates, can be leveraged to generate leads, with strategies tailored to each group to ensure their engagement and success.
• 💰 The book emphasizes the importance of understanding the bigger picture as an entrepreneur, making the right decisions, and then either learning the tactical aspects or delegating them to experts.

Q & A

What is the primary goal of an entrepreneur in terms of leads?

The primary goal of an entrepreneur is to be flooded with leads, which are interested individuals who can be contacted either physically or through some form of contact information like phone number, email, or address.

What is the difference between a lead and an engaged lead?

A lead is a person who can be contacted, while an engaged lead is a person who has shown interest in the products or services being offered, indicating a higher likelihood of conversion.

What is the main focus of the book '100 Million Dollar Leads' by Alex Hormozi?

'100 Million Dollar Leads' focuses on how to generate interest and leads for an entrepreneur's offer, building upon the concepts introduced in the first book of the trilogy, '100 Million Dollar Offers'.

What is a Lead Magnet and how does it function in lead generation?

A Lead Magnet is a complete, free or low-cost solution to a specific and narrow problem that, once solved, reveals another problem to be solved by the main offer. It serves to attract prospects and create engaged leads.

Can you explain the three types of Lead Magnets mentioned in the script?

The three types of Lead Magnets are: 1) Those that reveal a previously unknown problem to the prospect, 2) Those that offer full access to a recurring service for a limited time, and 3) Those that provide access to the first step of a multi-step main offer for free or at a low cost.

What are some examples of effective Lead Magnets?

Examples of effective Lead Magnets include providing access to a software, offering valuable information like lessons or courses, performing a free or low-cost service such as a website review, or giving a complimentary product to try.

What are the two main categories of audiences an entrepreneur can reach?

The two main categories of audiences are Warm Audience, which includes people who have given permission to be contacted and know the entrepreneur, and Cold Audience, which includes people who have not given permission and do not know the entrepreneur.

What is the significance of the 2x2 matrix in lead generation strategy?

The 2x2 matrix categorizes lead generation into four strategies based on audience type and communication method: Warm Outreach (one-to-one with warm audience), Warm Content (one-to-many with warm audience), Cold Outreach (one-to-one with cold audience), and Paid Ads (one-to-many with cold audience). This framework helps in organizing promotional efforts effectively.

How can an entrepreneur monetize their free content strategy?

An entrepreneur can monetize their free content strategy by managing the give and ask ratio effectively, providing a lot of free content and occasionally asking for a purchase. They can also monetize privately by engaging with contacts or private requests that come through public giving.

What are the 'Core Four' promotional methods?

The 'Core Four' promotional methods are Warm Outreach, Warm Content, Cold Outreach, and Paid Ads. These methods are used to generate leads directly and also to create 'lead getters' who can generate leads indirectly.

How can customers become 'lead getters' for an entrepreneur?

Customers can become 'lead getters' by providing referrals or word of mouth about the entrepreneur's product or service. Entrepreneurs can encourage this by asking for referrals and offering incentives to customers for successful introductions.

What is the role of employees in an entrepreneur's lead generation strategy?

Employees play a crucial role in scaling an entrepreneur's lead generation efforts. As the business grows, the entrepreneur's role shifts more towards management, and employees are trained to carry out lead generation tasks, thus expanding the business's reach.

How can agencies be effectively utilized in an entrepreneur's promotional strategy?

Agencies can be effectively utilized by starting with a trial collaboration to learn from their expertise. After gaining knowledge, the relationship can transition to a consulting one, reducing costs while still receiving support when needed.

What are affiliates and how can they contribute to lead generation?

Affiliates are businesses or individuals who promote an entrepreneur's products or services due to a synergistic relationship. They can contribute to lead generation by promoting the entrepreneur's offerings and receiving commissions for sales or leads they generate.

What is the importance of the Lifetime Gross Profit and Customer Acquisition Cost in evaluating a promotional campaign?

The Lifetime Gross Profit represents the total profit from a customer over time, while the Customer Acquisition Cost is the average cost to acquire a customer. The ratio between these two metrics helps determine the profitability and efficiency of a promotional campaign.

What action should an entrepreneur take if the ratio of Lifetime Gross Profit to Customer Acquisition Cost is below 3?

If the ratio is below 3, it indicates a promotion problem. The entrepreneur should review parts of the advertisement and the target audience, and consider upselling high-margin items to increase the Lifetime Gross Profit.

Outlines

00:00

🚀 Importance of Promotion and Engaged Leads

The paragraph emphasizes the critical role of promotion in attracting leads and the significance of engaged leads for business success. It introduces the concept of a lead magnet as a solution to a specific problem that naturally transitions prospects to the main offer. The paragraph also highlights the importance of understanding the lead magnet concept as defined by Alex Hormozi in '100 Million Dollar Leads' and the impact it can have on converting prospects into customers. The summary of the first book, '100 Million Dollar Offers,' is provided for context, and viewers are encouraged to watch until the end to learn about the 8 ways to generate leads.

05:03

📚 Lead Magnet Strategies and Types

This paragraph delves into the specifics of creating effective lead magnets, which are defined as complete solutions to narrow problems that reveal a need for the main offer. It discusses the importance of offering something that genuinely solves a prospect's issue and naturally piques their interest in the main offer. The paragraph outlines three types of lead magnets: those that uncover an unknown problem, those that provide limited access to a recurring service, and those that offer the first step of a multi-step main offer. It also suggests various ways to deliver a lead magnet, emphasizing the need to provide substantial value to compel prospects to purchase the main offer.

10:04

🤝 Audience and Communication Strategies

The paragraph introduces a 2x2 matrix for lead campaign creation, focusing on the types of audiences (warm and cold) and communication methods (one-to-one and one-to-many). It explains the concept of warm outreach, which involves personal communication with individuals who have given permission to be contacted. The paragraph outlines steps for warm outreach, including creating a contact list, choosing a platform, sending personalized messages, and using the A-C-A framework (Acknowledge, Compliment, Ask) to build rapport and guide the conversation towards the offer. It also discusses the importance of making initial offers for free to build case studies and reviews.

15:07

🔍 Enhancing Promotion with Content and Cold Outreach

This paragraph discusses strategies for enhancing promotional efforts through content creation and cold outreach. It stresses the importance of creating engaging content that follows the 'Hook - Retention - Reward' pattern to attract and retain audience attention. The monetization of free content is addressed through the management of the give-and-ask ratio, suggesting that providing substantial free content before asking for a purchase can be highly effective. Cold outreach is presented as a challenging but potentially rewarding method for reaching new audiences, with tips on finding contact lists, personalizing communication, and the importance of persistence in turning cold leads into engaged leads.

20:09

🎯 Targeting and Measuring Paid Advertising

The paragraph focuses on the effective use of paid advertising, targeting unknown audiences through one-to-many communication. It emphasizes the importance of precise targeting and choosing the right platform to reach the desired audience. The framework for successful advertising is outlined in three steps: Call Out, Value, and Call to Action. The importance of measuring Lifetime Gross Profit and Customer Acquisition Cost is discussed, with the ratio between these two metrics indicating the profitability and effectiveness of the campaign. Strategies for improving campaigns with low ratios are suggested, including reviewing the advertisement and targeting or upsell strategies.

25:12

🌐 Scaling Promotions and Leveraging 'Lead Getters'

This paragraph discusses strategies for scaling promotional efforts by identifying bottlenecks and increasing the volume of promotion. It suggests analyzing the customer acquisition flow to find and improve weak points. The concept of creating 'lead getters' is introduced, which includes leveraging customers, affiliates, employees, and agencies to generate leads. The paragraph provides insights on how to encourage referrals from customers, the importance of hiring employees to expand lead generation, and strategies for working with agencies to improve promotional campaigns.

🤝 Developing Affiliate Partnerships for Lead Generation

The paragraph explores the potential of affiliate partnerships in generating leads. It provides an example of a successful affiliate business model and discusses the importance of identifying ideal affiliates and engaging them effectively. Strategies for involving affiliates include offering them lead magnets, selling lead magnets, or paying commissions on sales. The key is to find the right affiliates and actively support them to ensure ongoing sales of the main offer.

🛠️ Utilizing the 'Core Four' for Entrepreneurial Growth

In the final paragraph, the focus is on applying the 'Core Four' strategies to achieve a comprehensive understanding of promotional actions for lead generation. The paragraph emphasizes the importance of having a clear vision and making informed decisions as an entrepreneur. It suggests that while specific tactics may require further study, the overarching framework provided by the book offers invaluable guidance for making strategic decisions to increase leads. The summary concludes by reinforcing the value of the book for entrepreneurs seeking to lead their businesses effectively.

Keywords

💡Leads

Leads refer to potential customers who have shown interest in a company's products or services and have provided some form of contact information. In the context of the video, leads are essential for business growth, and the main theme revolves around generating and engaging these leads effectively. The script emphasizes the importance of not just acquiring leads, but ensuring they are engaged, meaning they have a genuine interest in what the entrepreneur is selling.

💡Promotion

Promotion, in the video, is the act of marketing a business's offerings to attract potential customers. It is a key concept because the video suggests that a lack of leads is often due to insufficient promotion. The script discusses various strategies for effective promotion, including the use of Lead Magnets and understanding the types of audiences and communication methods.

💡Lead Magnet

A Lead Magnet is defined in the script as a complete, free or low-cost solution to a specific problem that, once solved, reveals another problem to be addressed by the main offer. It is a marketing tool used to attract and engage potential customers. The script uses the Lead Magnet as an example of how to convert prospects into engaged leads by offering them value upfront.

💡Engaged Leads

Engaged leads are individuals who have shown a genuine interest in a business's offerings. The video emphasizes that merely having leads is not sufficient; the goal is to have engaged leads who are likely to convert into customers. The script provides strategies for creating Lead Magnets that will naturally attract and engage these leads.

💡Customer Acquisition

Customer acquisition refers to the process of attracting new customers to a business. The script discusses this concept in the context of using Lead Magnets and promotional strategies to convert leads into paying customers. It is a central theme of the video, as the ultimate goal of lead generation and engagement is to acquire new customers.

💡Warm Audience

A warm audience consists of people who have given permission to be contacted and are familiar with the business. The script explains that engaging with a warm audience is a strategic method for lead generation, as these individuals are more likely to trust and respond to promotional efforts.

💡Cold Audience

A cold audience is made up of people who have not given permission to be contacted and are not familiar with the business. The video discusses reaching out to this type of audience as a challenging but potentially rewarding method for generating leads, as it involves introducing the business to new potential customers.

💡One to One Communication

One to one communication is a personalized form of outreach where a business contacts individuals directly. The script uses this concept to describe a method of engaging warm audiences, where each contact receives a message that feels tailored to them, even if the message is sent to many recipients.

💡One to Many Communication

One to many communication is a method where a single message is made available to a large audience simultaneously, such as through social media posts. The video script discusses this as a way to reach a broader audience and generate leads by sharing content that can be consumed by many at the same time.

💡Content Marketing

Content marketing is the strategy of creating and distributing valuable, relevant, and consistent content to attract and engage a clearly defined audience. The script touches on content marketing as a way to build trust and provide value to potential customers, which can indirectly lead to more leads and sales.

💡Referrals

Referrals in the video refer to leads generated when satisfied customers recommend a product or service to others. The script explains that encouraging referrals is a powerful lead generation strategy because it leverages the social proof and trust associated with personal recommendations.

💡Affiliates

Affiliates are individuals or businesses that promote another company's products or services in exchange for a commission on sales. The video discusses affiliates as a means of lead generation, where they can introduce a business's offerings to their own audience, creating new leads and potential customers.

💡Agencies

Agencies in the context of the video are external companies that specialize in marketing and lead generation services. The script advises on how to effectively collaborate with agencies to leverage their expertise in paid promotions and learn from them to improve lead generation efforts.

💡Customer Acquisition Cost (CAC)

Customer Acquisition Cost is the average amount spent to acquire a new customer. The video script highlights the importance of understanding and tracking CAC as a key metric for evaluating the success and efficiency of promotional campaigns and lead generation strategies.

💡Lifetime Gross Profit

Lifetime Gross Profit is the total amount a customer spends with a business over their lifetime minus the cost to deliver the product or service. The script uses this metric to illustrate the potential revenue a business can expect from a single customer and to evaluate the profitability of lead generation campaigns.

Highlights

The importance of promotion for lead generation in entrepreneurship.

Definition and significance of engaged leads in business growth.

The concept of a Lead Magnet as a solution revealing another problem.

Three types of Lead Magnets and their strategic applications.

Strategies for delivering high-value Lead Magnets.

The 2x2 matrix for audience and communication strategies.

Approaches for Warm Outreach and re-establishing communication.

The importance of content in engaging and converting audiences.

Cold Outreach techniques and the significance of personalization.

Paid Ads strategies and targeting for efficient lead generation.

Metrics for measuring the success of promotional campaigns.

Utilizing the 'Core Four' for scaling promotional efforts.

Creating 'lead getters' through customers, affiliates, employees, and agencies.

Strategies for leveraging customer referrals and word of mouth.

The role of employees in lead generation and business growth.

Maximizing the potential of agencies in lead generation.

Affiliate marketing as a lead generation strategy.

The holistic approach to understanding and applying promotional strategies.

Transcripts

The dream of every entrepreneur is  to be flooded with leads interested  

in their products or services. If you're not  getting enough leads, here's the harsh truth:  

you're not doing enough promotion. That's why  your potential customers don't know about you. 

So, what is a lead in the first place?  It's a person you can contact. You're  

either physically with them, or you  have some form of contact information,  

such as phone number, email, or address. However, just having leads is not enough.  

What you want is to have Engaged  leads—people who have shown interest  

in what you sell. The real product of  promotion is precisely engaged leads. 

And this is what 100 Million Dollar Leads by  Alex Hormozi is all about. It's the second  

book in his customer acquisition trilogy.  If you're not familiar with the first book,  

100 Million Dollar Offers, you can find the link  somewhere here or in the description below to  

watch my animated summary. It's better to know it  because many concepts are based on it as the first  

book explains “What” to sell and this one delves  into how to generate interest and leads for your  

Offer.

Make sure to watch the video until the  end to find out the 8 ways to generate leads.

Let's begin! When you promote to engage your prospects,  

you can lead them directly to your main Offer.  However, before making a purchase, people often  

want to know more about what you do and need to  build more trust in you or your business. That's  

why it is common to start promoting a Lead Magnet. You've probably already experienced giving an  

email or contact in exchange for a free or  low-cost resource. Well, that was some kind  

of a Lead Magnet. It's a commonly used and  known practice. However, Hormozi starts here  

with the first gem of the book because he better  defines the concept of a Lead Magnet like this:  


The Lead Magnet is a COMPLETE, free or low-cost  solution to a specific and narrow problem that,  

once solved, reveals another problem  that will be solved by your main Offer.

I admit to being guilty myself in some  past businesses of simply giving away  

a "free resource" that I thought might  be of interest. No! It's not enough. It  

should be something that solves a problem  your prospect has, which, once solved,  

naturally leads them to be interested in  your main Offer. If you understand this well,  

this alone can turn your business around because  the right Lead Magnet will attract your prospects  

in quantity, creating Engaged Leads. For example: You're a real estate agent,  

and your business is selling houses. You'll have  a main offer for this. What happens before that?  

What problems does a prospect have initially?  For instance, they need an estimate of the value,  

photos, home staging, cleaning, etc.  Choose one of these and solve it.

There are three types of lead magnets: 

Those that reveal a problem the prospect  didn't know they had. For instance,  

if you sell comprehensive SEO services, you  might decide to demonstrate the speed of the  

prospect's website using a test, showing  them how it impacts their website traffic. 

Other lead magnets involve giving full access  to a recurring service (the main offer) but  

for a limited time. For example, granting  access to a software for a trial period or  

providing the first cream in a series of  creams for a complete beauty treatment. 

The third type of lead magnet applies when  your main offer has multiple steps and it’s  

about giving access to the first step for free  or at a low cost. For example, offering a free  

wood sealant for a garage door. You give the  first one for free and then explain that it  

provides only partial coverage, encouraging the  prospect to purchase the other two as a bundle.

There are countless ways to come up with and  deliver a Lead Magnet, but the best ones are: 

• 1. Providing access to a software:  For example, a simple spreadsheet or  

software that shows your prospects how their  statistics compare to the industry average. 

• 2. Offering valuable information:  Lessons, courses, or similar educational  

materials to teach something valuable. • 3. Performing a free or low-cost service:  

For instance, a website review. • 4. Giving a complimentary product:  

For example, a supplement to try. The idea here is to provide a Lead  

Magnet that's so good that people feel compelled  to purchase your main offer to compensate you.  

Ideally, you want to deliver more value with the  Lead Magnet than the cost of your main Offer.  

Give away your secrets, then  sell the implementation. 

If you're hesitant to give away your secrets,  

consider this: 99 percent of  people may never buy from you,  

but they will create or destroy your reputation  based on the free Lead Magnet they received. 

Remember that all the concepts from the  first book, "100 Million Dollar Offer,"  

are applicable to creating a Grand  Slam Offer for Lead Magnets too.

Now that you have a properly created Lead Magnet,  it's time to drive floods of leads towards it,  

right? How do you do that? Here's  one of the main concepts of this book  

that will provide you with great mental  clarity to create your lead campaigns,  

and in perfect Hormozi style,  explained with great simplicity: 

There are only 2 categories of audiences  you can reach, and there are only two ways  

to communicate. This 2 by 2 matrix includes all  you need. Let's examine its components closely: 

Let's start with the type of audience. Warm Audience: 

• These are people who have somehow given you  permission to contact them and know you. This  

includes family, friends, acquaintances, but also  followers, customers, acquired contacts, etc. 

Cold Audience: • These are people who have not  

yet given you permission to contact them and do  not know you. Essentially, they are someone else's  

audience. You can access them by buying lists,  paying for access on certain platforms, etc. 

Now let's move on to the type  of communication you can have: 

One to One: • When you contact people privately,  

when you send a personalized communication  directed only to them. This, by the way,  

can also be done in large quantities by  sending an email to 10,000 people at once,  

but if you think about it, each person receives  their email as a single message for him or her. 

• 
 One to Many: 

• In this case, you create a public message  visible to everyone at the same time. The classic  

example is content on social media, whether  it's a message, a video, or even an article.

These are the only four things you can do to  let others know about what you do. There are a  

thousand variations on how you can apply them, but  recognizing the four basic ways brings a lot of  

order to your future reasoning and understanding  of what campaigns you need to set up. 

Now, let's look at each component in  detail to understand what you need to  

do in each of them. Warm Outreach: 

Here, you engage in one-to-one communication with  people who have given you permission to contact  

them. You don't necessarily have to know them, for  example, if they are followers, but they know you. 

If you're starting from scratch and need cash,  begin with this method. If you think about it,  

within your circle of family, real friends,  social media friends, contacts, customers,  

followers, etc., you have various  contacts, more than you might think.

Step 1: Create a list of your contacts. Step 2: Choose the platform to  

use to contact them. Step 3: Reach out with a  

personalized message about them to re-establish  communication, initially without selling or  

offering anything. You should communicate like  normal human beings. For example: "Hi! How are  

you? I heard you had a baby! Congratulations!" Step 4: Repeat this action by sending 100  

messages to 100 new contacts per day. If  you finish the list, restart from the top. 

Step 5: When someone responds,  use the A-C-A framework. 

• Acknowledge: Repeat what they've told you.  For example, if they say, "Yes, thank you,  

it's actually my second child!" you respond  with "Wow! Two kids?! And you work full-time..." 

• Compliment: Give a compliment. For instance,  "You're such a super mom! Managing both work  

and two kids at home! Congrats!" • Ask: Ask another question,  

this time starting to steer towards your offer.  For example, if you offer fitness programs, ask,  

"Do you still have time to stay in shape and  take care of yourself?" Or if you offer cleaning  

services, ask, "Do you have someone to help  you with cleaning and keeping the house tidy?"

Note that you still haven't offered or sold  anything. You continue communicating this way  

a little bit in a very normal and natural manner. Step 6: Then you move on to making them an offer,  

but you do it in a very indirect way.  Most importantly, when you start,  

offer your service for free to the first 5 people. Seize the opportunity to explain to them what you  

do in terms of a value equation. For example: "By  the way, I wanted to ask if you know anyone who  

might be interested in this. You know, I now  help people achieve... (dream outcome) in...  

(time delay). I want to help 5 people for free  to have some case studies and reviews. You know,  

I help them without... (effort and sacrifices).  I've had some wonderful successes so far. Do  

you know anyone who might be interested?" If there's any hesitation or they say no,  

to ease the situation ask, "Perhaps  someone you don't like comes to mind? 🙂" 

The important thing, as you can see, is that you  haven't asked them to buy anything. You're asking  

if they know anyone interested. This approach is  not invasive at all. Some will be interested for  

themselves, others will introduce you to someone,  and some won't respond. But I assure you that if  

you continue with the 100 messages per day  for 100 days, you'll have more clients than  

you can handle. And it's a great way to start  basically at no cost, except for your effort.

Step 7: Make it easy. If they say yes,  

you should have an easy way for them to access the  offer, asking only in return that they leave you a  

review. If no one says yes, it means what you're  offering doesn't have enough value to justify  

their time. Review your offer in this case. Step 8: I can't work for free all the time. 

The first 5 clients for free are there to help  you learn and gather initial reviews. Then,  

for the next 5, offer an 80% discount on  the final price. For the 5 after that,  

offer a 60% discount on the final price, and so  on, until you reach the full price or even higher,  

until you find the right sweet spot. The second type of promotion is directed  

towards customers who know you, but it's  one-to-many by sharing free content on your  

channels. The difference from Warm Outreach  is that you have more leverage in relation  

to the time invested. You create content, and  potentially, it's seen by your entire audience. 

By consistently publishing more engaging content,  you increase your audience, and potentially,  

more people will be interested in your products  and services. Moreover, free content enhances  

the effectiveness of all other promotional forms. It's utopian to think that all customers follow a  

straight line, meaning you contact them with an  offer and they either buy or not. In reality,  

most of the time, you contact them with an offer,  they then take a look at your free material,  

see who you are and what you do, and only after  that they decide whether to buy or not. That's  

why the content you publish is essential. When you publish content, keep this pattern  

in mind to ensure your content is  engaging: Hook - Retention - Reward. 

Hook attention: You need to ensure they notice  

your content; you have to attract their attention  in some way. This is done with catchy headlines,  

striking images, or anything that stands out. Retain attention:
You need to ensure they consume  

your content by providing original,  interesting, and valuable content. 

Reward attention:
You have to satisfy the reason  for which they started consuming your content. For  

example, if you initially attracted them because  they were curious to know something specific,  

you need to satisfy that curiosity  or explain to them how to do that.

Yeah, everything’s great, but “how do I monetize  my free content strategy?” you might ask. 

You need to become a master at managing the  give and ask ratio. Many make the mistake of  

building an audience and then starting to  make continuous offers. But by doing so,  

they burn out the created list. What you need to do is provide a  

lot of content and only occasionally  ask for a purchase. You can do this  

in two ways. Either you publish a lot of  free content and occasionally create one  

promotional content. Or you publish  a lot of long form free content and,  

integrated in a well-balanced manner, you insert  a short promotion for your product or service. 

Ideally, the longer you can afford to wait to ask  for money and continue to provide free content,  

the better. In fact, Hormozi coined this variation  on the Give-Ask ratio in this way: keep giving  

until your audience asks you to sell them  something! Right there you've hit the jackpot. 

Additionally, alongside giving publicly, you will  undoubtedly receive contacts or private requests.  

A good strategy is to keep giving publicly and  monetize privately with those who contact you.

Now let's move on to the third type of promotion:  Cold Outreach, where you reach out one-on-one  

to people who don't know you. What does this mean? For example:  

knocking on doors, making cold  calls, cold emails or messages, etc. 

If you've tried, you know it's not easy, but  you need to know that if you can make it work,  

it's a method that yields incredible and very  predictable results once you've built a working  

system. Also, with cold contacts, you have the  ability to select your target very precisely  

and contact only those. Plus, there's the  added bonus that your competitors don’t  

know what you're doing because you're doing  it privately, making it difficult to copy. 

The best advice I can give you is to find  someone who has already done it to help  

you. However, here are some tips to follow. First, you need to find contact lists. There  

are software tools to scrape contacts from  the web, there are brokers who sell lists,  

or you can find contacts manually on the web. When you contact them, you need to somehow  

personalize the communication and find  a way to start the conversation. Then,  

you need to find a way to grab their attention  in the first 30 seconds. They don't know you  

and tend not to trust you easily. Your goal is to turn them from Cold  

Leads into Engaged Leads. Send them to  your Lead Magnet or directly to your  

offer, depending on your strategy. Lastly, the most important point to  

remember is this: it's a numbers game. The more  contacts you make, the more chances you have.  

And don't limit yourself to just one attempt to  contact each lead. Try to contact them cyclically  

multiple times and in various ways. Let’s now move on to the fourth  

square of this matrix: Paid Ads. This is a form of advertising that  

we do towards people we don't know,  using one-to-many communication. 

Reaching your target is guaranteed. The key  here is how efficiently you do it so that you  

pay a fair cost, allowing you to profit  from your campaigns. To make them work,  

the first thing is to understand who to target  with your campaigns. The more precise you are, the  

more efficient you are, provided that the market  is not too local or too small. In that case, it's  

better not to be too specific, or else you won't  have a sufficiently large audience to address. 

Choose a platform that you know at  least a little as a user and where  

you can find your chosen audience. To target your ideal customer,  

there are essentially two ways. Modern platforms  allow you to create a potential audience based on  

contact or customer lists you already have,  and you know are in your target. A platform  

like Facebook will create what is called a  "lookalike audience." This practice might  

terrify your privacy consultant, but if they are  good, they'll understand that business needs to  

be done and will find a way to incorporate  this practice into your Privacy Policy.

The second method is to use the targeting  factors available on platforms such as age,  

income, gender, interests, location, etc. The framework to use in advertisements  

is based on three steps: Call  Out, Value, and Call to Action. 

Call Outs are whatever you do to attract  the attention of your audience. They can  

be phrases like "Moms of Clark  County" or "Gym Owners", images,  

sounds, etc. Anything that grabs your prospect's  attention and makes them curious to learn more. 

Value is given to the customer when they  think that what you're offering costs  

little in relation to the benefits it provides.  Help them understand what they will get, how,  

in what time frame, and with how much effort. Call to Action is the action of telling the  

prospect what to do. "Click here now," "Fill out  the form below," etc. You need to be extremely  

clear here to direct them to your Lead Magnet. Typically, these ads go to a landing page  

or a platform form where you collect the  prospect's contacts who request the Lead  

Magnet, turning them into an engaged  lead, and then you can contact them.

For advertising campaigns, it's very important  to measure the metrics accurately. You need  

to be aware that at the beginning, you have to  invest to start the campaigns and they won't work  

immediately. So, be prepared to see only expenses  in the initial phase and accept it. Once you find  

an ad that works, you ride it and recover all you  spent and more through the sales you will make. 

Which metrics to use to understand if you're doing  well? There are two fundamental data points you  

need to measure. The first one is the Lifetime  Gross Profit, which is the total a customer on  

average spends with you minus the cost to deliver  the product. For example, if the customer on  

average over time buys $150 worth of products, and  you spend $50 for the cost of the products and for  

delivery, your Lifetime Gross Profit is $100. The other number to track is the Customer  

Acquisition Cost. This is how much you spend on  average to acquire a customer. You obtain this  

by dividing the promotional cost by the acquired  customers. For example, if you spend 1000 dollars  

on promotion and acquire 10 customers, your  Customer Acquisition Cost will be 100 dollars.

Now, this is where it gets interesting.  One parameter to measure how the campaign  

is performing is to look at the ratio between  Lifetime Gross Profit and Customer Acquisition  

Cost. If it's greater than 1, your campaign  is in profit. But 1 is too little. If the  

ratio is above 3, it's a good campaign.  If it's below, you need to improve it. 

This data is important because it helps you  make decisions if you find yourself not selling  

as you hoped. If the mentioned ratio is above  3, it means that the promotion is going well,  

and you have a sales problem. If it's below  3, it means you have a promotion problem. 

For the record, you can achieve ratios much  higher than 3 if you find excellent campaigns  

and have a good offer. If the ratio is below  3, then you need to improve the campaign,  

and you have several ways to do it. One is  to review parts of the advertisement and the  

target. The other is to upsell high-margin  items to customers within the first 30  

days to increase the Lifetime Gross Profit. Platforms are constantly changing and have  

many technicalities, but the principles remain  the same. Watch videos on how to create promos;  

people overcomplicate these concepts, but it's not  that difficult, and you can do it. Additionally,  

later in this video, I'll teach you a trick to  help you start using agencies the right way.

Now that you've understood  the 4 main ways of promoting,  

the "Core Four," let's boost them with steroids. Start with one or two of the four promotional  

methods. Find what works. Then ask yourself:  what is preventing me from investing more in  

this line and doing more promotion,  thus increasing the results? Find the  

bottleneck and increase the volume of promotion. However, you can do more up to a certain point.  

Then suddenly, that same promotion doesn't work as  well. So here you have to improve it. To do that,  

you need to analyze the customer acquisition  flow. For example, you might have a 3-step flow:  

they click on your ad, land on the Landing  Page, and leave you their contacts. You need  

to see which of these 3 steps is the  bottleneck and start improving that. 

After you've increased and improved the  promotion many times and reached a new plateau,  

you can create a new campaign: for example,  a similar campaign on another platform,  

or a new campaign on the same platform. This concludes the description of the "Core  

Four." So far, we've looked at the promotional  actions you can take to get more leads. 

The "Core Four" are not only used to create  leads, but you also use them to create "lead  

getters" — those who generate leads for  you. These consist of four categories:  

Customers, Affiliates, Employees, and Agencies. Let's start with Customers. 
If you can generate  

word of mouth about your product, you've hit  the jackpot. Your satisfied customers will then  

talk to others about your product or service,  generating referrals, meaning leads for you. 

There are mainly two reasons why you're not  getting referrals from your customers. The  

first is that what you offer isn't good  enough. I know it's tough to accept,  

but the sooner you realize it, the better. Think  about your personal experiences when you bought  

regular products versus extraordinary products.  Which of the two did you talk about to others? 

The second reason is that you don't ask  for them. Incorporate points in various  

stages of your promotional actions towards  acquired customers where you ask if they  

have any referrals for you. Make it easy for your  customers, provide them with tools or materials  

to introduce what you do and establish  what advantage you want to give to them,  

their referrals, or both. For example, you  could put up your customer acquisition cost  

that you would normally pay for paid ads  as a prize. Why not offer it as a reward  

to your customers or perhaps half to them  and half to their referral if they become  

a customer? This is a strategy used with great  success by companies like PayPal and Dropbox.

Then there are the Employees. If you want to grow your business,  

you can't do everything yourself forever.  At some point, your available hours run out,  

and what you can do reaches a limit. Employees  are a great resource. Your role transforms more  

and more into a managerial role, and you need to  train and get those you hire to produce. When you  

have a bit of money available, you can afford to  hire really talented people, but at the beginning,  

get willing individuals whom you can train  to do what you do to generate new leads. 

The core four are useful because you can find  employees among your acquaintances, you can post  

the job ad in your channels, you can look for them  through cold recruitment calls, or you can put up  

sponsored job ads. As you can see, it's the Core  Four, but directed not to find leads, but to find  

employees who will then generate leads for you. ​​Let's move on to the Agencies. 

There are many agencies in the market that promise  to generate leads for you, to manage your paid  

promotions. The problem is that very often the  results are disappointing for various reasons.  

Good agencies are expensive, but it's not always  true that a costly agency will give you results. 

So, how to use them best? Find a good agency that you know has  

achieved good results with someone you know. Ask  them to start a collaboration for a few months,  

and tell them that you are willing to pay a bit  more to learn from them what they do with your  

campaigns. After a few months, you'll move to  a consulting relationship where they still help  

you when needed, but the cost is significantly  lower than when they do the work. Be open and  

transparent with the agency you choose, and you'll  find many that accept this kind of agreement. 

It's fantastic because you have an agency with  experience that can set up all the campaigns  

for you, and as soon as you've learned how  to do it, you can do it yourself with an  

expert who can still help you if needed. You can start with a moderately priced  

agency when you need to begin and set up  the basic structure. Then you can repeat  

the same agreement with a more expensive and  competent agency later on to improve the details. 

Let's complete this quartet with Affiliates. Affiliates are businesses or individuals that  

usually have their own business and are interested  in promoting your products or services because  

there is a synergy between the two activities. For example, a company with this business model  

rely on other companies that organize courses for  those who want to start a business. They offer  

their Lead Magnet to the course participants,  with which they set up their company for free.  

Then they upsell by offering accounting or  tax services. When they sell these services,  

they pay an affiliate commission to the company  that organizes the courses that gave them the  

lead. They do nothing else and have a turnover  of 50 million dollars a year. Not bad, right? 

The point is to identify who your ideal  Affiliate is. Then use the Core Four to  

promote and recruit affiliates, who will then  generate leads for you. To make them work well,  

you need to have strategies to ensure they invest  in the project and believe in it. For example,  

it's important that they buy your product, the  one that they will then promote. Also, making  

sure they pay for the training is a good idea to  ensure they take it seriously. Calculate what you  

can offer them as affiliate commissions and put  them in the best conditions to succeed early on.

For example, one of the best ways to do this is  to create launches that affiliates can promote. 

There are various ways to involve them. You  can have them give away your Lead Magnet when  

someone buys their products, thus increasing the  perceived value of their offer. You get the lead,  

and then you can try to sell your main offer. Or you can have them sell your Lead Magnet,  

and here you can even give them the full  profit from the Lead Magnet, and then keep  

the sales from the Main Offer for yourself. Or a third model is to pay them commissions  

for what they sell of yours.

Choose the model  that has the better fit for your business, but  

remember, the key is to find the right affiliates  in the first place and then actively involve and  

engage them so they keep selling your products.  Pushing and encouraging them becomes your new  

role or the role of your affiliate manager, and  it can be very profitable if done the right way. 

And this is it. These are all the possible  ways to create promotions and generate leads,  

both directly and through Lead getters. Yes, there are many details to know, but just  

having the mental clarity of knowing what can be  done has helped me a lot to understand where I was  

lacking and where I was getting too fixated. Many  times I reached a point where I could no longer  

grow a campaign and I stubbornly persisted  with it. If I had had this overall vision,  

I could have focused on another frame of the  Core Four or Lead Getters, and there I would have  

had more room to grow.

My final consideration  about this book is this: many of the strategies  

explained will require additional studies on more  specific resources to truly apply them, along with  

a lot of trial and error. But the right way to  read and get the most out of this book is to  

understand that it's written for entrepreneurs who  want to lead their businesses, not for marketers  

hyper-specialized in ads on a single platform. The  required skills are different. As entrepreneurs,  

the most important thing is to understand the  bigger picture and make the right decisions. Once  

you do that, you can either learn the tactical  part yourself or pay someone to do it. However,  

making the right decisions is what counts in  the first place. And this book provides you  

with the right framework and understanding  of what can be done to give you the mental  

clarity and ability to make the best decisions  to increase your leads. And this is invaluable. 

I remind you that this was the summary  of the second book in the trilogy that  

Hormozi is creating. You can check out  the other available videos here on the  

screen somewhere. Until next time!