5 Lessons From $100M Leads That Changed My Business

In this video, I'm going to review $100 million leads by Alex Hermosi. So whether you're thinking about reading the book or you read it a while back and you want a refresher, we're going to dive into all of the key points. I'm going to share my five biggest insights from the book. And at the end of the video, I'll give you my honest take, my honest review so you can decide whether it's worth reading or not. Alright, let's dive in. Okay, I want to walk you through this mind map I created with the five main takeaways I had from, from the book. And the first one is no crappy lead magnets. You've probably heard of a lead magnet or you've used one. It's something that people opt in for with their email, with their information, and then they get a PDF or a video series or a case study, and that allows you to follow back up with your leads. And a lot of us are guilty of not creating a very good lead magnet or just creating something to get their email address. But Hormozi says if you're struggling to get leads, make an amazing lead magnet. Because the marketplace judges everything you have to offer, free or not. Just because it's free because doesn't mean that your customer isn't using it to inform their buying decisions. If it's a crappy lead magnet, they're gonna assume that the paid offer is crappy. And the opposite is also true. So he said you want your lead magnet to provide so much value, people feel obligated to pay you. The goal is to provide more value than the cost of your core offer before they've bought it. Okay, so your lead magnet should actually be worth the same amount of money as you're charging for your core offer. Because people will figure, well, if this thing, this free thing, so good, their paid thing must be absolutely amaz. He says 99% of people aren't going to buy, but they will create or destroy your reputation based on the value of your free stuff. So make your lead magnets as good as your paid stuff. Your reputation depends on it. So, for example, if your friend goes and downloads Hormozi's lead magnet and it's not very good, they may not ever buy Hormozi's paid stuff. They may not ever become a portfolio company for him. But when you ask, is Hormozi any good? Right. They're going to say, oh, the lead magnet was great. You know, everything I've seen From it is great, or, you know, I haven't invested in his paid stuff, but the free stuff isn't very good. So he says this is where experienced business owners beat newbies. With a $25 budget to deliver your lead magnet, you can provide far more value than a $0 budget. Crazy. I know. You attract more customers because your lead magnet's more valuable than other people's, oftentimes by a lot. So don't be afraid to actually spend a little bit of money creating that lead magnet because it will come back for you later in the process with that customer. Next thing about lead magnets, have it naturally lead into your paid offer. And there's a few ways to. Okay, so here are the types of lead magnets. You can reveal problems, you can offer samples and trials. So think about a free trial for software or it can be one step of a multi step process. And in the book he gives examples of each of these. But the key takeaway is to know, okay, if my lead magnet actually solved this smaller problem, for example, it's one step of a multi step process, would they later want to buy my paid thing? So, for example, if the lead magnet is, you know, a free inspection of your chimney. Right. Whatever it is, Right. Would they later want to buy my chimney cleaning service? Right. Well, that makes sense. They link together. Okay, different ways to deliver your lead magnet, you can do it through software, information services or physical products. A lot of folks in the coaching online education space just think about the information piece. But there's actually a lot of different ways that you could deliver your lead magnet. And so, for example, this makes me think of Neil Patel, who's an SEO guy. He has ubersuggest, right. Which is a free tool he created. And, and he has an SEO agency. So this is like, you know, if you're into SEO and you want to figure out, you know, keyword research, where your backlinks are coming from. I mean, this is like an amazingly valuable lead magnet that would naturally lead into hiring his SEO agency if you wanted it done for you, next step is to name it. So he shares this quote by David Ogilvie, who's a, you know, old school advertising guy. When you've written your headline, you spent 80 cents of your advertising dollar. So the lead magnet can be great. But if they don't perceive that value on your homepage or your ad or wherever you're advertising the lead magnet, they're not going to download it. They're never going to see that it's great. So spend extra Time on the title of the lead magnet and the headline getting people to download make it easy for them to consume by putting it in multiple formats. Right. So Hormozi shares that his book, which is his first book, $100 billion offers, has a perfect, you know, 25% split between book, you know, ebook, audiobook, videos. And so people consume information differently. So if you can repurpose your lead magnet to different formats, you can capture more of those people. Give a clear, simple, action oriented call to action, then give them a reason why. Use scarcity, urgency, any other reasons you can think of to make your lead magnet more compelling. So in a way, your lead magnet is just another offer. It just happens to be free and lead into your core offer. Okay, the second big takeaway from $100 million leads is the core four. And I'll show you what this looks like in the book. So here is right, this is the core four, and it's essentially a two by two grid. So essentially there's four different ways to get leads. We can use warm outreach, we can post content, we can use cold outreach or paid ads. So let's dive into each of these because this is really the bulk of the book that he spends talking about these for with warm Outreach, this is reaching out to your personal contacts, people who already know you or your existing audience. He says personal contacts are the best place to get your first client. So if you're just starting out, get this is the one to focus on. He says one way you can go about reaching out to people is not asking them for business directly, but essentially saying, hey, who do you know? Who do you know that's looking for whatever it is you're offering. And he gives you this little framework that you can plug into. He says, you want to show someone you have exactly what they want. They're guaranteed to get it insanely fast without lifting a finger or giving up anything they love. If you use this frame of, hey, who do you know who might benefit from this? Obviously some of the people you're asking, it's them. They're the ones who would benefit from it. And you'll get business otherwise you can get referred. He says whenever you launch a new products or service, make the first five free because this allows you to easily get that first batch of folks. And you can increase your prices from there once people start referring, start charging. And he has this role where you increase prices every five clients, right? So you get your first five for free, then the next five, you say, hey, I'm doing this for 80% off for the next five. And that way you create a little bit of urgency and scarcity where there really is none when you start off unless you actually manufacture it by having a rule like this when you're starting out, getting new customers should take the majority of your time. Think four hours per day minimum. It should be the first thing you do when you get up and you shouldn't stop until you achieve your goal. So one of the things I love about Hormozi is like he can kind of blow your mind and reframe the expectations of what hard work is. And so four hours minimum per day, just reaching out to your warm network. And you may say, well, I don't even know those many, that many people you know. He would say, well, you're taking everyone that you have their number, everyone that you have their email, everyone who follows you on social media, everyone. And you're reaching out to all those people. And when you're done, you're going back to the beginning and reaching out to them again. So, you know, find your own way of doing this. But I think this is really important and it's overlooked to focus on your actual warm network. Alright, next is posting content. So posting content can get you more engaged leads for the time you invest. Because warm outreach, you're just doing that one to one manually, one at a time. Posting content to many people at once can have more leverage. He says we increase the percentage of people who pitch pick our content by doing three things. We want to pick topics that they find interesting headlines that give them a reason to actually click and consume, and then matching the format to the other stuff that they like. So in terms of topics, two really big insights here. The first is a switch from how I versus how to. And I can't remember if this is in $100 million leads or it was from a presentation I watched that Hormozi gave. But he says, I prefer to use personal experiences as topics because there's only one of you. The easiest way to differentiate is to say something no one else can say. He says when you say how to, you know, how you should make oatmeal, it kind of seems condescending and it's positioning you with credibility that you may not have versus if you say how I here's how I make oatmeal, right? Here's how I get clients, here's how I got a six pack. It's unassuming. No one can argue with that because you're just speaking to what worked for you and that's a sometimes a better way using the how I frame to create content from, all right, puddles, ponds, lakes and oceans. So he says narrow your focus. If you have a small local business, for example, you shouldn't be making general business content, not at first. Why? The audience will listen to people with better track records than you, right? If you have success building a contracting business and you're trying to speak to every entrepreneur about business, well, you're going to get beat by people like her. Mozzie, right? You have bigger audiences than you who have a more diverse array of experiences than you. But if you said, hey, here's how you build a contracting business, or here's how I build a contracting business from scratch, well, now you have more credibility because you're targeting that puddle or that pond. You're not going for that big ocean where there's more competition. Next is headlines. So he walked through a study that shared, here's what has headlines in the news get clicked. Because news sites, right, and magazines and newspapers, these are the folks who have refined this process and are the best at creating headlines. Because that's literally how they get paid. Because, because that's where ad revenue comes from, is people reading it. Recency, relevancy, celebrity, proximity, conflict, something unusual and ongoing story. So these are elements that you can work into your free content and into your headlines to get more people to consume your content. And the third piece is matching the format of other stuff they like. So it says you've got to make your content look like what they expect will reward them. There's things on YouTube that work. There's things on Instagram that work, right? There's things on, in email newsletters that work. And you need to understand the formats that people like to consume so that your content actually blends into those mediums instead of standing out in a bad way. He also talks about retention, right? Actually creating good content. The content itself, not just the headline and the topic is valuable. And so he says use lists, steps and stories. These are the things that help people continue to read all the way through. Because if we're on number one of the list, we're naturally going to try to figure out what's 2, 3, 4. If we're telling a story, you want a resolution to that. If you're in a multi step process, you want to figure out what the steps are. And he talks about value per second. Essentially you want the most value per second of your content that the person's reading or watching, right? That's what makes valuable content, is where there isn't a lot of fluff and you need to wait 30 minutes for, you know, something that's going to be helpful for you. Okay, so that's how we increase the percentage of people who pick our content. Now, what about the cadence of offering things for free and just value and nurture content versus making an ask, making a call to action. Hormozi says you deposit goodwill with rewarding content and then you withdraw from it by making offers. So on Facebook, it's roughly four content posts for every one ad on the newsfeed. That's what they've decided is the right ratio of content to actual selling and call to actions. And he says the moment you start asking for money is the moment you decide to slow down your growth. So the more patient you are, the more you will get when you finally make your ask. Think about if 100% of someone's content was just them asking you to pay them or them inviting you to a call or them telling you to download the lead magnet. Well, there's no value there. So after a while you would tune out. But if 100% of your content is just giving is just educational and you never invite someone to take the next step, it's hard to make money. So he says, I try to under ask my audience and build as much goodwill as possible. And there's two ways you can do this. One is you just keep giving until they ask, right? Keep creating valuable free content. And since till someone says, hey, do you do coaching? Like, do you work with people privately, like, can you support me? Or you can give in public and ask in private. So all your free content is just educational, valuable, helpful. But then you can approach people who are engaging with it and saying, hey, would you like some more personal support with that? That way you're not using up the goodwill of your whole audience. You're just targeting your ask to individual people. And then when you make your ask, you can either advertise your core offer or you advertise your lead magnet. So he says the thank you page after the opt in page for my lead magnet would display a paid offer with some video explaining how it works. Bonus point of your lead magnet is relevant to the content advertising it. So essentially, and this is, this can work very well, is once someone enters their email address, they get forwarded to a page and that has your paid offer on it, right? This is a way to advertise your lead magnet, which is free, get more people to give you their email address as opposed to just directly advertising your Paid offer. But then immediately they're, the next step is getting, you know, your paid offer. And he says, I post about my book every single day. I surveyed my audience and asked if, you know, they knew I had a book. One in five saw the post, said they didn't know. And this is a good reminder that most people aren't thinking as much about us as we are. And so sometimes you actually have to ask more than you've been asking because people just don't know you know, what you're offering. All right, last thing on free content, he says posting free content is less predictable than but complementary to warm reach outs. So keep doing warm reach outs, the thing we just went over. Also, posting free content grows your warm audience. And a bigger warm audience means more people for warm reach out. So these two things are complementary. Warm outreach and posting content. He recommends you do both. You start with warm outreach, then you add content in after that. Number three is cold outreach. So he said, we tried cold outreach two times before and failed. Working with a person that had done it all before was immensely helpful in getting this going. So cold outreach is you're reaching out individually, but to strangers versus warm outreach is reaching out individually to people who already know you. And he says the reason why they failed cold outreach at first is because they hired people who didn't track the metrics. Well. Right. Once they started tracking the metrics, the cold reach out succeeded. So he says most people dramatically underestimate the amount of volume it takes to use cold outreach. The number of people you have to reach out to before someone actually takes you up on a call or your offer. And they underestimate how long it takes. So this is a numbers game. You're going to have to do a lot of reach out to make cold outreach work. He says eventually you'll have an equation. For every X people we contact, we get Y customers. And then you simply solve for X. Right. If you want more people, you know, if you want more customers, you just reach out to more people. And so, for example, he gives a rule of thumb, one new customer per 100 outreach attempts. But that's what you want personalized to your business and a number that you know if you're going to pursue this. He says cold outreach has one key difference from Warwick outreach. Trust. Strangers don't trust you. And because of that, we have to approach it a little bit differently. So number one is we build a list of people so we actually have their contact information to reach out to. You can use software for this, which just you know, gives you, you know, lists, brokers, people who actually sell this information, or you can do it yourself. You can join groups and communities that you think has your audience. He says this is technically the best way because if you assemble your own list of names, it's likely that other people aren't reaching out to them because other people were using these two techniques and those people are getting the same pitches again and again. If you sell business to consumer, so a lower end offer, sometimes it can be worth doing your cold outreach and your cold calling for affiliates, other people who can sell your offer to their audience instead of directly to the end consumer to make cold outreach more worth your time. Number two is figure out what to say. What do we say when we start reaching out to people? He says, you want to personalize it more. If you have fewer leads, if you have a lot of leads, it's going to be less personalized. But if you have fewer leads, you know, don't automate it because you can personalize some of that. And I have a good example here, which is my video editor reached out to me and it was just a cold email. I had no idea who this person was. And he said, hey, basically, you know, I'm a video editor. I was poking around your channel. I like your YouTube videos. I actually have some suggestions on how I think they could be even more, even more effective, get you more clients, get you more reach. If you want, I can record a quick loom video and send it over. And I said, sure, send it over. And so this was a personalized 5 minute loom video, meaning like it's a screen recording him going through my channel and my videos giving suggestions. And after that I was like, sure, let's hop on a call. Ended up hiring him. So that was an example of a very personalized approach. Now he can automate some of it. He could have an assistant do those initial emails and then all he has to do is record the videos. But that's a more personalized approach versus sending everyone the same reach out. He says the goal is to demonstrate big value as fast as possible. Give yourself a downhill battle by giving away something crazy. Okay? If you're doing cold outreach, you need something that is hard to say no to. Number three is to contact them until they're ready and able to listen. So the more ways you try to contact someone, the more likely you are to contact them. People respond to different methods. So use phone, email, text, use these different channels. And he says, act like you're actually trying to get ahold, of these people rather than going through the motions, and you probably will. So he says it doesn't really work to do cold outreach. And you're sort of, you know, half assing it. You really got to be like, I'm trying to get these people on the phone. And that will create a sort of persistence that will make cold outreach work. Once you finish contacting your list, start back at the top again. So he says everything might be right except the timing, right? Just because you reached out to someone six months ago doesn't mean it's not a fit for them now. So the more times we contact them, the more likely we'll catch them at a time when they're ready to engage. Those are the three steps of cold outreach. Final thing here, he says, start with warm reach outs, get some reps, post some content to grow your warm audience, then get even more reps. After that, you're ready for cold reach out. So we're not starting necessarily with cold outreach if we have a warm network and even if we can post content that might be a step to do before called outreach. The final part of the core four is paid ads. Now, this is reaching out to many people at once, but it's people you don't know versus posting content was a one to many communication, but it was to an existing audience, people who are aware of you. Ads are riskier, but when done right, they can get you more leads than any other method. And paid ads is really how Hormozi made a lot of his money in the beginning with his company gym launch, he really figured out the science of ads, how to get a great return on investment from those. So he says you're going to lose money. In fact, I've lost money more times than I've made money running ads. But every time I make money with paid ads, I make back everything I lost and then a bunch more. You'll have a lot of losers, a lot of ads that don't work, and then you double down on the ones that do work. So he says you really have to figure out the numbers. You have to get familiar with metrics if you're going to make ads work because you're spending money. Here. He says you want to measure your paid ad efficiency by comparing the lifetime gross profit of a customer. So how much in total a given customer pays you on average with the cost to acquire a customer. And he says you can express this ratio in LTGP to cac. Right. So every business he says that I invest in, struggles to scale, has at Least one thing in common. Their lifetime gross profit to their cost of acquiring a customer ratio is less than three to one. As soon as I get above three to one, they take off. Meaning you need to make three times more from a given customer, three times more profit than you spend to acquire them. If you can't make those numbers work, your ads aren't going to be profitable. Ultimately, they're not going to work. So the cost to acquire customers between competitors in the same industry is much closer than you think. The difference between the winners and the losers is how much they make off each customer. Okay, so it's not necessarily all just about optimizing for getting the cheapest lead you can. It's about figuring out, how do I make more per lead. He says if your customers spend more than it costs you to get and fulfill them in the first 30 days, then you have the funds to scale now and forever. I call this client financed acquisition, right? So if you can get back that money you spent to acquire them in 30 days, you can essentially rinse and repeat that and keep reinvesting that money back in ads to get more people. So figure out a way to get your customers to pay you back in the first 30 days so you can recycle your cash and get more customers. Whether that's getting paid up front for longer periods of time versus monthly, there's lots of different ways to do it. Upsells, things like that. Okay, so that is the metrics behind ads. How do you actually do ads? Okay, it was freaking hot in here, so I took my sweatshirt off. Let's keep rolling. So we're in paid ads, and Hormozi says there's a few things that he keeps in mind. So first, I pick a platform that contains my ideal audience. Second, I use whatever targeting methods that exist within the platform to find them. Third, I craft my ad in a way that repels anyone else. And finally, I tell whoever's left standing to take the next step. So what are these steps broken down? So the first is to create a list of people that you can advertise to. And the easiest way to do this is to create what's called a lookalike list. So if you haven't advertised yet, this is taking, for example, your list of current and previous customers, those email addresses, or if that's not big enough, you know, taking your whole email list or your whole reach out list, you give it to the platform, Facebook, Instagram, whatever it is, and you say, hey, create a bigger list of people to advertise. To that looks like this list that has similar attributes. And obviously, if you're targeting people that are similar to your current and previous customers, those should, in theory, be good to advertise to. He said, my advertising became 20 times more effective when I focused the majority of my effort on the first five seconds. We need the audience's eyes and ears just long enough for them to realize this is for me. I'll keep paying attention. So there's a few pieces to this, and I've kind of focused my effort for paid ads on this hook because Hermozi says it's so important. So first, you want to record multiple call outs. Every time you record one ad, record different intros to that ad so you can test it. And there's verbal call outs and non verbal call outs. So verbal call outs are the things you say you can label, you know, the group of people and they have to actually identify with that label. So if it's, you know, plumbers, chiropractors, doctors, whatever it is, the people that you're trying to reach, using a label, having a yes question, asking a question, hey, do you ever struggle, you know, to get leads as a coach? You know, this is a question that you want people to answer yes to. You can open up the ad that way. If, then statements. Okay, so an example, if you run over $100,000 per month in ads, we can save you 20% or more. That's an if then statement. Or ridiculous results. Stuff that's bizarre, rare, it's out of the ordinary. So, for example, you know, the headline of an ad, massage studio books out two years in advance, clients furious. So it's like if you're a massage therapist who wants to, you know, book more clients, you're gonna be like, whoa, what? How did they do that? So those are the verbal call outs, Non verbal call outs. There's three here. So contrast any stuff that's sticks out in the first few seconds. The colors, the sounds, the movements, likeness. So think visually showing labels, features, traits, titles, places, other descriptors. He says you want to attract plumbers. Dress like a plumber, talk like a plumber, be in a plumbing environment, right? Because immediately, visually, whether you say it or not, it's going to, you know, stand out to your target market. An example of contrast is a bright shirt. You know, almost always gets more attention than a black or dull shirt. The scene thinks showing yes. The yes questions are the if then statements. So a person tossing and turning in bed calls out people with sleep troubles. So those are the non verbal Callouts that you can use in an ad. Again, these are the things that are important because they grab attention. If people ignore your ad, they don't listen all the way to what you want them to do. So if you make a free content piece that generates sales or performs very well, nine times out of ten, it'll make a great paid ad. So you can actually use the posting content to test, you know, some ideas for paid ads. If you can get customers to create testimonials or reviews using your product, post them. If they perform well as free content, they often make killer ads too. Final tip here says, make your landing pages match your ads. So for example, if you're seeing a Facebook ad or an ad on YouTube and then you click through and it looks nothing like the ad that you were just watching, it creates some disparity that makes you not trusted or not want to take the next step. Okay, so that is paid ads. We've gone through the whole core four. Thanks for bearing with me on that. It's a long one, but that is really what the book is about, is choosing how you want to get leads and diving deep into that strategy and mastering it before you add another way. And that's kind of what this next point is. So the third insight is more better new. Hermosi says if you want more leads, you can either do more of what you're doing, you can do it better, or you can do it somewhere new. You know, I think one impression I got from the book is that he essentially says a lot of people will kind of figure out how to make a certain strategy sort of effective. They'll have a little bit of success with it and they'll immediately jump to something new. So they'll do a little warm reach out, they'll get some clients and they'll feel like, oh, I need to learn paid ads now. Instead of maximizing the strategy that they started with and getting as much as they can out of it. So the first thing is just to do more of what you're doing. He talks about the rule of 100. I thought this was kind of interesting takeaway from the book. So whatever strategy you choose of the core four, you want to do 100 times a day. So 100 warm reach outs per day would be your goal. Or 100 minutes spent making content. This is the thing that I do in my business. 100 cold reach outs per day, 100 minutes per day making ads. If you can stay process oriented and just focus on getting your reps in and do more of the Thing, you're going to get more clients versus, you know, one day you do a few cold reach outs and then you don't do it again for a week. So go through your contacts on every platform to do 100 warm reach outs a day. Release at least one content piece per day on each on the platform, and as you get better, post even more 100 cold reach outs a day. You're using all these different strategies to try to reach the people. 100 minutes per day making ads, or 100 per day in ad spend. You can kind of choose one or the other. So when you're putting so much time and effort into one of these strategies, you're going to get better at it and you're going to get more leads. So that's the rule of 100. He essentially says until you're making at least a million per year, just do more. Don't worry about getting on other strategies, getting on other platforms. He says. The first question I usually ask myself before we invest in a company that needs to get more customers is what's stopping them from doing 10 times what they're currently doing that's already working, right? Sometimes nothing. So we just do more. Other times we need to make something better first. And that brings us to the other thing, right? You can do more of the strategy. You can learn to do it better so that it converts better. He says, find the step where the most leads drop off. You'll get the biggest reward for the smallest improvement. So when you're thinking about doing something better. So for example, with, you know, posting content, figure out where most of the leads are dropping off. Is it your intros aren't working? People aren't even reading, you know, past the headline. Is it that they're engaging with it, but they're not doing your call to action, you need a better call to action. Figure out the part that's not working as well as it could be and focus on that. And then eventually you can add a different Core 4, you can, or you can do the same thing somewhere new. So when the returns you get from doing more and better are lower than what you could get from just a new placement or a new way of advertising, that's when you do something new. So new placements. For example, on Instagram, you can make stories, messenger ads. Posts, right? Maybe you started off with stories and that was working well. Once you've maxed that out, you're moving to messenger ads or you're moving to posts. New platforms, you know, you start. For example, for me, I Started with blogging, with SEO, and then I added on YouTube in the last year or so. But it's this. It's a similar. It's still posting content, right? It's the same Core four, but it's just on a different platform. And then eventually the last thing you should do is just a new Core 4. So he says, whenever I build a business, I think about it this way. After I do more outreach to get my pool of customers going, if I have more time than money, I move to posting content. If I have more money than time, I go with cold outreach or running ads. So that's kind of how he thinks about adding in the next method of advertising in the Core four. But I think the big takeaway here is most people try to move to a new Core 4. So for example, they try to add advertising immediately after they get their first five paid clients. And it's like, no, you can keep running warm outreach. You can get better and better at that for a while before you need to add in paid ads, because that's going to be a whole other thing that you have to learn. Okay, so no crappy lead magnets. The core four. More, better, new. What is insight number four? This is the one question to rule them all. I thought this was like a killer, killer reframe that he had. And this is the question. He says, you've lost all your customers but one. The gods of advertising ban you from doing the core four and decree, all customers must come from this one customer. So all your future customers have to come from this one person. What do you do? So think about it for a second. What would you have to do? Well, you'd probably have to make it so that customer spread the word for you. And this is one part of his section on getting lead getters. So how do you get other people to advertise for you? And I'm just going to focus in on this one piece of getting customers to advertise for you. He talks about you can get agencies, you can have employees, you can have affiliates. I just want to zoom in on this one thing. Otherwise the video is going to be 10 hours long. He says the best advertising is a happy customer. There's three scenarios here. If you're getting. If your rate of referrals is greater than your churn, are you getting more referrals than customers who leave? Then you have growth without advertising. You don't even need to advertise because more people are coming in than are leaving based on referrals. If you the number of Referrals you get are equal to the people who are leaving, then you do need to advertise to grow because they're just balancing each other out. And if you're getting fewer referrals, then customers leaving, you need to advertise just to break even, because you keep running through customers. And this is why the best advertising is a happy customer. He says most businesses don't get referrals for two reasons. First, their product isn't as good as they think it is. And second, they don't ask for them. So we've got two routes to getting more referrals. One is just to make a better product or service. So I got a lot here. So he says this is what a lot of people say. Everyone loves our stuff. We just need to get the word out. Says every small business owner with a product that's not as good as they think it is. So if it was as good as you thought it was, you'd be getting more referrals. They would be getting the word out for you, your customers. He says, I like to ask myself, what are my customers too embarrassed to tell everyone? Or why are my customers too embarrassed to tell everyone they know about my product? It may be okay, but it's not remarkable, as in it's not worthy of remark. Price is what you charge, value is what they get. The difference between price and value is goodwill, right? So if your price is way up here and the value they're getting is lower than that, you have negative goodwill. You're not going to get referrals. In fact, you'll get negative word of mouth, people saying, don't buy from that person. If your price is here, it could still be a high price, but the value is way more. You have this gap, what's called, I think, a customer surplus, right? And this is goodwill. That's what makes people want to refer your service because they're getting so much more than they're paying. And a big piece of this is actually choosing your customer more carefully, even if you don't change anything about the service. He says, we want to sell better customers because they get the most value from our products. Customers that get the most value have the most goodwill, and the customers that have the most goodwill are most likely to refer. He says, figure out what your most successful customers have in common. Use those similarities to target a new audience. So you might have some customers and they send you a lot of referrals. You have other customers and they don't, but you're doing the same thing. So it May not actually be about the service, it's about who you're supporting. Some people are getting more value than others. He gives an example of a PR firm that he worked with, one of his portfolio companies and they were working with a bunch of other different types of businesses and they realized that the businesses they were working with who had outside funding, like startups, stuff like that, venture funded startups, they were getting a lot more value, they were getting a lot more business from this PR service. And so he said, well, why don't you just work with only those people? And the head of the PR firm says, well, that's only like 15% of our customers right now. And Hermosi was like, okay, but if that was 100%, think about how many more referrals you'd get. And so they changed their messaging to make it more targeted. They made that who they worked with and it ended up creating all this goodwill, many more referrals, etc. So that was kind of an example of. It can be scary to niche down and narrow down who you serve, but if you're selling better customers, you're going to get more referrals. We can increase goodwill by lowering expectations. This is another way of doing, gives us more room to over deliver instead of on the sales call. Setting their expectations way up here and then you struggle to try to meet those. Setting expectations as low as you can and still get the sale. And then the value they get is way up here that creates that surplus. He says customers form their lasting impression of a business within the first 48 hours after they buy. So force a good impression, force as many wins as you can in that window. The whole engagement isn't created equal. That first impression matters. So that is what you know it looks like to make a better product. Then you can also just ask for referrals. He says asking for referrals only works when you treat it like an offer. The referrals come when you show the value the customer gets when they refer their friends. So essentially this is another sale you're making is the sale of go refer your friends, right? There's something in it for you. And he says ask the current customer to make an actual 3 way introduction to a friend via call, SMS or email. Not just a name and a number. Also ask them to do it right when they buy. Don't wait. He even says what he would have, what he did when he ran gyms and did personal training was he'd like have them take a selfie with him and the customer next to each other and text that friend. Right now you're getting a warm intro. It's not on you to go send an email after you've gotten the person's information. You're getting looped in, much more likely to get a response. In the book, he also talks about how you can structure different affiliate programs and referral programs and having gift cards that people send out. Again, I'm going to let you kind of go deeper into the book with that because this book's like packed. It's packed with different stuff and I really struggled to actually do this summary because I tried to pull out the best stuff for you. But there's a lot still in the book. So one question to roll them all. You've got all. You lost all your customers except one. You can only get more customers from that one person. Then you put your attention on referrals. Final insight is there's levels to this. At the end of the book, right? As Meek Mill says, there's levels to this. The end of the book, he basically says, hey, you can't do all this stuff at once. So here's what you should focus on. Level one, your friends know about the stuff you sell to start getting engaged leads. You make one offer to one avatar, one potential client on one platform. Okay, you're just super focused and you're focused on warm reach outs. That's the primary action is warm outreach. Level two, you consistently let everyone know about the stuff you sell. You know the exact inputs to get an engaged lead with your chosen advertising method. So something from the core four. And by scaling those inputs, you get consistent customers with, okay, so he says, I maximize my personal work capacity with paid ads using a case study as my lead magnet. But looking back, I wish I had started with posting free content. So do as much warm outreach as you can. Post as much content as you can consistently. That's level two. Level three is you get employees to help you with the advertising. You're still going to do the same stuff, the same Core 4, but you can do more of it. You've maximized your personal advertising inputs because you hire someone. So for example, he hired a videographer and a media buyer to take most of the paid ads work off of his plate. So this is the primary action is you hire people to advertise profitably on your behalf. You already know how to do it. You've been doing it yourself. You're not hiring someone to do something you have no idea how to do. Level four, the product is good enough to get consistent referrals you continue building goodwill, and you shoot for getting 25% or more of your customers from referrals. Now you set yourself up to ramp your advertising again. So you might have to work on the product a little bit. For level four, I built goodwill using customer feedback to update my product every two weeks. I also started a strong referral program with big incentives. At the same time, primary actions are focus on your product until you get consistent referrals, and then go back to scaling your advertising with a bigger team. This is where most people mess up. They let their products slip and never recover. So why don't we focus on this at level one? Well, you have to have a good enough product right at level one, but you also need customers. You need people to go run through it, because that's sometimes the only way to improve it. He said he improved it based on customer feedback. Right. So you need enough leads coming in to do a really focused effort on improving the product. But then you do need to do that. You can't just keep ramping up advertising, because then, as Hormozi says, then you're just telling a lot of people that you suck. Right? If you're good at advertising, but you don't have a good product. Level five, you advertise in more places, in more ways, with more people. This is when you start to do not just better, but you do new stuff. Okay, Primary action. Advertise profitably using at least two methods on multiple platforms. And then level six, he says you hire killers. Your executives grow departments specific to an advertising method or platform without you. And you're not looking for potential. You're looking for experienced leaders specializing in exactly what you want. So this is when you bring someone in and they know what they're doing with that core four method and that platform. You don't have to teach them because you have enough money to be able to afford those types of A players. But you can't do that right away. There's levels to this. He says, I know this looks clean, but it never is. Real business is messy. It takes a lot of time. It takes a lot to find what audiences lead magnets and methods and platforms work best. And you can only find out what works if you try. So you have to try a lot of different things, a lot of different ways for a long enough time to know for sure. And finally, he says, you want to play games where if you wait, you win. Okay, I like that. Hormozi is realistic. You know, he talks about things like patience. He talks about the fact that it's messy. So those are my big takeaways from $100 million leads. No crappy lead magnets. Do the core four more better new one question to roll them all. There's levels to this. Here's the thing. You can actually get really good at this stuff and still not be as successful as you want in your business. And that's where her Moses first book comes in. $100 million offers. And to be honest, I do recommend $100 million leads. I think it's a good book. But $100 million offers to me was better. It was this groundbreaking book where a lot of people focus on getting leads and marketing. Not a lot of people focus on how to create an offer that basically sells itself. So if you haven't read that yet, or if you've read it and you want a refresher, go ahead and check out my summary video of 100 million DOL offers. It's just like this one with a mind map. I go through my 10 big takeaways from the book. Go watch that now and then. Once you've watched that, pick up 100 million dollar leads because it's a good one. Thanks for watching.