I Spent $10K on Hormozi's Playbook So You Don't Have To (Here's What 10X'd My Wholesale Business)

This book right here, 100 Million Leads by Alex Hormozi, changed how I run my wholesaling business. And because of this one principle in the book, last month my client Eduardo was able to make $130,000 off of only $6,000 in ad spend. Al closed $50,000 off of only $4,000 in ad spend. Nick got 4 contracts off of $2,500 in ad spend. And Cole got 4 contracts out of $1,800 in Ohio with our system. And we ourselves are doing anywhere from 8 to 10 deals per month only by using our inbound Facebook ads alone without doing cold calling, without using agencies, without buying paper lead leads, or having to have a massive VA team that are chasing after people who don't even want to talk to you. Now I'm going to show you exactly what that principle is and how we apply it with our business, because it completely changed how we run things. And I wasted over $400,000 using agencies, paper lead companies, and cold calling to figure this out. And I'm going to show you exactly why, if you're still running outbound, you're working way harder to make less money. So stick around because at the end of the video, I'm going to walk you through the exact same system that we use. So you can just copy it into your business. And to give some context on myself and my business, I've been wholesaling for the last 5 years. I actually started flipping houses in 2022 when the interest rates, you know, went kind of crazy, lost some money on flips. And then we scaled the wholesaling business. I was using direct mail, cold calling, PPC, had a massive team. We were spending anywhere from $20,000 to $40,000 a month in just marketing. And one thing that I realized is no one talks about this, but the only thing that matters is how much money do you actually net at the end of each month. And as you already know, wholesaling has a ton of moving parts. So reading this book really made me reflect into the type of business that I wanted to run because in the end, it's how much money do we actually get to net and keep without being super risky or having to do all this extra legwork within the business. Because as it is, wholesaling already has its own moving parts. So everything that we do is about simplifying the business and making as much money as possible. And now something that I see in the wholesaling business that I don't really agree with is that everyone preaches that you need to depend on cold callers to get you leads, on an agency to run your ads, whether you're doing PPC or Meta, how we are, or if you're doing direct mail, that you also need to outsource it. But if we about it with the hustling, what we are doing is we're doing marketing or we're doing sales. So if the sales, we always keep it in-house, we train our team and hire members. Why should we delegate our marketing as well to other people? Now I'm not saying that agencies are bad, but usually these big agencies are going to outsource your file and the client to a media buyer or a VA who's just following SOPs. And everyone thinks that it's way too complicated to actually learn it, but we're able to pull the main lever within the business that gave us a 10x return on ad spend every single month. And that is learning exactly how to run Facebook ads for our wholesaling business. And since we brought it in-house, we were able to make over $100,000 per month by spending around $10,000 per month on ads. And this is the core thing that Hormozy preaches about. When he learned how to run Facebook ads, he has an average return on ad spend of 36:1, meaning for every dollar that he puts in, he's able to get $36 back because he is really good at the marketing. And if we think about it, wholesaling is about Getting motivated sellers and take them through the sales process so that we can actually convert the deal. So if our ICP is someone who's motivated, then what is the best way to actually get them into our business? With Facebook ads. But the way that we do it is we are targeting pain points, the things that tell us that people are motivated: divorce, foreclosure, inheritance, and properties. And we built a trust funnel where we are the ones in the ads because we don't want to compete with the other wholesalers. We want to let them know like, hey, This is what we do. This is who we are. And this is what you get when you work with us. So if we pair the pain-based ads with the trust-building funnel, then the people that see you in the ad and the people that see us trust us way more. And that is exactly why we're able to contract deals for less than $2,000 per deal. And that is why we're able to make so much money on the backend, because if we fix the cost per deal, we're having way better marketing. And if we can increase our profit per deal by using the sales process and maximizing the opportunity, that is when we get an outsized return for the time investment and the marketing skills that we actually gain within the business, which it all comes down to how much money do we net for the business. So if we become more efficient and we are able to make all this money per month, then the delta is that we get to keep a whole lot of money instead of wasting it on agencies or more marketing channels. And to give you some more context of why I decided to run my own Facebook ads was because in the end of 2024, I had about 20 properties that were flips and renovations that were just listed. And that really made me kind of look back into the business where I kind of realized, okay, like The main thing that matters is how much profit do we actually keep on a monthly basis. But around that time, I already read the $100 Million Leads, but I reread it and I'm like, okay, I already use an agency to run my ads and I would see the ads and I was like, I can make way better ads because if they see you and you are in a market where the sellers are at, then they can relate to you, right? So I had that idea and then I paid to go to the workshop to learn exactly how to plug this into my business, paid this other guy to teach me how to run the Facebook ads. And then I took all the principles from the $100 Million Leads in order to our ideal sellers. And since then, our cost per deal used to be around $5,000 and we would make like $20K per deal on average. And after implementing this system, cost per deal dropped all the way down to around $1,500 to $1,800 per closed deal. And that is like a 50% efficiency. So we didn't have to spend as much money the following year to make the same amount of revenue, but we're able to keep so much more within the business because now it all came from just one marketing channel and becoming really good at attracting our ideal sellers. And that shift from paying someone else to run inbound marketing to owning it yourself, that is the most profitable decision that I ever made in my entire business, more than any single deal that I've ever closed. Now, let me show you exactly why inbound marketing wins over the outbound methods every single time for business like ours. With cold calling, let's talk about what it actually costs. You're going to need a dialer, you're going to need a ton of VAs, you're going to pull data, skip trace data, and you need someone to manage like all these people. And you are looking at 70 to 80 leads in order to get one contract. And then if you factor in all of the new regulations, the 10DLC, the flag risk and everything, you're just doing way too much to attract someone who actually wants to sell. And paper lead companies, don't even get me started. I have heard horror stories where they resell the same lead to the same competitor in your market, and you never actually know what type of ad they're running. I've seen some ads, it just says, get multiple offers for your property. That doesn't say anything that they are ready to sell or motivated. But what we want to be is completely different with our ads. Instead of you having to compete with 5 other wholesalers who are calling the exact same seller, PPC through an agency, you're going to be paying $300 to $500 a lead depending on the market. And your cost per deal can be anywhere from $3,000 to $5,000 plus the monthly retainer and your cost per contract. You know, it's going to be so expensive. And a lot of the times the PPC leads that you get, there's people that have listed properties that they haven't sold. And that's why you get the leads within your system and it still charges charges you multiple hundred bucks per lead. And if you use an agency and you're happy with them, I mean, cheers to you, but I just don't think we need to outsource the most important lever within the business because if they stop running your ads, then your pipeline would die tomorrow. Now I want to share what our numbers look like on Facebook. Our cost per lead on average in my market is between $20 to $40. And across clients in California, Arkansas, Texas, Florida, we're at an average $60 cost per lead and average 20 to 25 leads to get one contract. Everyone else in the industry is happy with a 3 to X, and they call that a good month, but that is not our benchmark. Remember, we're trying to make way more money for the time and energy that we actually put in. And here's the other thing that makes inbound way better than outbound. The seller has raised their hand, they fill out the form, and they want to talk to you. And then what we want to do is to earn their trust, uncover the pain, motivation, and then give them the best offer that we can. But if they know who you are and you're calling those pain points, then the quality of the conversation is going to be way easier, assuming that you have a good sales team. You're not convincing anyone of anything. You're just kind of helping people where they want to sell on the best way to actually doing it. And that is the whole game. We are trying to attract. We're not trying to chase. And the reason why me and my clients crush is because we focus on 3 things. And I'm going to show you exactly how this works, because I want to show you the whole machine. There's 3 parts. It's going to be marketing, sales process, and KPIs. You need to have all 3 working together or the whole thing falls apart. And you may think you have one of these problems, but nobody talks about all 3. Part 1 is going to be the marketing. We run Facebook ads, not boosted posts, not generic, we buy houses with static images with some template that an agency has used with 100 other wholesalers. We use real videos with hooks that call out specific pain points. Like I was saying, divorce, inheritance, foreclosure, problem properties, anything that tells us that they are having a problem today and that we need to solve it. And some tip for you running ads, are you considering how to plug this into your business? The hook is everything. The first 35 seconds of the ad are going to be the most important thing. If you lose them, you're going to lose them forever. And which has multiple hooks, multiple angles, multiple formats. And we let Facebook find exactly who's going to respond with broad targeting. And specifically, if our whole angle is pain-based, then we're going to be able to attract people that are motivated. And we spend anywhere from $3,000 to $8,000 depending on the market per month. And that is exactly how we get more than an 8x return on ad spend by focusing on this core strategy. So pretty much the seller sees the pain-based ads and then they may see one of your videos that tells them exactly who you are, how do you work. You create the trust, they click on the ad, and then we're going to ask them a couple questions within the Facebook lead forms. We're going to ask them how soon they want to sell, what's the overall condition of the property, why are they thinking about selling. And by the time that our lead manager sees the leads, we already know if it's worthwhile a call, but we still call everyone because we're trying to maximize each opportunity. Part 2 is going to be the sales process. Now, my team follows a 2-step process because we get a lot of lead flow. I need to be able to qualify. So the first call is going to be the intro call. My leads manager job is to qualify if the lead is urgent, meaning are they ready to sell and do they have some sort of pain point that we can solve? If it's a yes, then we're going to set the appointment with the closer. And the closer's whole job is to dig deep into the motivation, what has them thinking about selling and asking all the right questions in order for us to uncover what the pain is and the thing that we actually need to solve in order to come to a deal. And I used to think that sales was something that you were born with or not. But when we learned the sales process, we found out there's something that can actually be replicable and trained because we go over the seller's psychology. We go over how to set up the proper expectations, the timeline, the agenda, the result of the phone call, permission to say no. We tell them exactly how long everything's gonna take and what everything is going to look like. That way they know exactly who they're working with and what the next steps are going to be. That way we don't get ghosted and we can actually get some properties on the contract and sell them for max value. And we're actually super honest with the sellers whenever we are wholesaling the property or doing an ovation. And a lot of people think that you need to lie in this business in order to be successful, but something that has helped us a lot is just being transparent about exactly how do we help people and the things that we need to do. And you'd be surprised if you apply this, how much more deal flow you're going to be able to get. And we train our team on a weekly basis to remind them of the core things that we focus on the sales process: online motivation, roadblocks, deal killers, next steps, because salespeople need to be reminded more than they need to be retaught. So we really focus on training the sales team for them to keep on performing. And part 3 is the KPI tracking. This is what separates a hustle from an actual business. Every single week I look at 3 numbers. What was our gross lead? What was our net lead? And what was our appointment to offer given? Now I do want to track the appointments because I know if we have a weekly quota of having 8 to 10 appointments, that should yield 2 contracts at least. And that's going to put us in our goal. And if we don't hit that goal, then I know that I need to Listen to the phone calls and see exactly what happened within the sales process, because chances are, if you're not getting offers approved, then we're missing the mark within the sales process. So my whole thing is how can we make the most amount of money as possible without having a huge team? So every one of my team members know exactly what they need to do. I have 2 lead managers, 2 closers, 1 dispo, 1 TC, and we crush because we know exactly what we need to do. And let me give you another Hermosi principle that he talks about a lot is he talks about, okay, what is your CAC? What is your cost of acquisition? And what is your LTV? Meaning how much do you actually make per deal on average? You gotta be able to have those numbers after you pay for the marketing and the leads and you pay the commissions on your team. You gotta know exactly what that looks like because it's going to give you the total return of your business and you're going to know where you need to spend the money and where you can become more efficient. Because if you're not tracking it, then you don't really have a business. And if you haven't tracked, don't feel bad. It took me 2 years to fill mine out because I was always hustling, but I found out that I wasted over $600,000 because I was overspending in channels that were giving me like a 1 to 2x and I had some channels that giving me like a 4 to 5x and I could have put that money in that channel and make an additional, you know, like $600,000. I learned the hard way. So if you haven't tracked them, you need to see, okay, how many leads are you getting? How many appointments are you going on or having over the phone? How many offers are you giving? And if your offer to contract ratio is above 4 to 5, then something is wrong within your sales process and you need help ASAP. So for me, the business that I want is something that is scalable and enjoyable without a ton of overhead. So like I said, I spend around $8 to $10K per month in marketing. I have my team, so all in, I'm at 20, 25, but we're able to make more than $100,000 per month. And of course, there's some stuff that I can cut out on, but it doesn't require a whole lot of my time in order to manage it. And I think the main focus, if you're wholesaling or flipping, should be to look at your numbers and seeing exactly how much money did you actually net at the end of each month instead of having that bloated team or bragging about revenue. So all in all, what it taught me was to actually think of the business in terms of profit and maximizing revenue per the marketing channel and building something that is actually enjoyable for you. Because if you're doing this for a long time, you know that wholesaling or flipping can be risky because you never know when a property is going to sell. Not every house is the same. Some houses need more repairs than others. Sometimes you have title issues that are going to mess up the deal. Maybe a buyer backs out, so it's never set in stone until it actually closes. So for me, it's about systemizing it and just making it as simple as possible without risking a ton of capital. And I'm a firm believer that you can get to $50,000 to $100,000 per month with just one Facebook marketing channel because we become really good at calling out those pain points. And you know, every seller is on Facebook. We just need to find a way of actually getting them into our funnel so we can actually help them. And for me, I mean, that works great. It's one profitable inbound channel that you actually own, a replicable sales process and KPIs to track for you to know if you are on track or not, depending on whatever your goal is. And look, if you've been watching my videos for a while, Or if you want to systemize the business by focusing on having way better marketing without having to spend a huge amount on agencies or doing all of the outbound methods that don't give you the best results, then book a call with me and my team. I'm going to show you exactly how we build this inbound marketing machine for your business, because I know I can help you and I know I can make you enjoy the business even more by just having motivated leads 24/7. So all you need to do, click on the link down below and let's schedule a call. I'll walk you through exactly how do we do. If you're doing deals, making $15K or $20K per month at least, we can help. Anything less than that, I mean, we're not going to be the best fit because you need to spend money in the marketing and of course pay us for our services. But if you're making more than $20K per month and want to discuss exactly how we can help you, book a call with me and my team, and I'd love to help you.