Why I Still Learn New Ad Platforms The Same Way I Did At $0 | Ep 922

Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast, you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned and will learn on his path from $100M to $1B in net worth. Wanna scale your business? ⁠⁠Click here.⁠⁠ Follow Alex Hormozi’s Socials: ⁠⁠LinkedIn ⁠⁠ | ⁠⁠Instagram⁠⁠ | ⁠⁠Facebook⁠⁠ | ⁠⁠YouTube ⁠⁠ | ⁠⁠Twitter⁠⁠ | ⁠⁠Acquisition ⁠

Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:00Alex Hormozi?

  Let's rock and roll. Okay, so at 22, I want to build a multimillion dollar business. Should I start now, fail forward and learn on the way? Or spend money to choose building skills, cash and clarity? To me, those are one in the same. Like, you will build skills by failing. So I would try and do stuff. Just being real, like, do stuff, learn from it. And if you can make money while you're doing it, great. I think that for many people, one of the, like, a huge leg up that you can have is working one to three years in the industry that you want to get into. Like, I think there's just, there's huge upside there because you don't even know what you don't know. And you learn so many, like, default ways of operating. Because when you have to... I'll give you an analogy.

• 0:44Alex Hormozi?

  So imagine you've got a pile of bricks, right? So you've got this pile of bricks. All right, let's say that these bricks represent, you know, stuff that you can use to build. This is going to be a terrible pile of bricks, whatever. Okay? And someone says, "Go build me a building." Right? So you then try and assemble these bricks in a hundred different ways. And the thing is, is like, if you don't have directions on how to assemble those bricks, you're not going to know what assembly is the correct one for a building. And so the thing is, is that if you have an ideal building in mind, right? Then there may be a few ways that you can correctly assemble the bricks to get a building. But there's going to be way more ways to not assemble the bricks to make a building.

• 1:28Alex Hormozi?

  And so for me, I'd rather just like, kind of like, if you're building a building, like you're building an Ikea desk, right? If you don't have the directions and you have the pieces, you might eventually figure it out. But it's so much, it takes so much more time than having a model to look at. Because you automatically know, you're like, "Okay, well, first thing I'm going to do is I'm going to separate my tools over here. I'll put my screws over here. And then I'm going to put my blocks over here." Great, so it's the first thing. That's what you do. And then after that, you're like, "Okay, I'm going to look at this picture. There's got these four legs." And you're like, "All right, let me flip it upside down. So like one, like two, like three, like four." And you're like, "Okay, it's almost looking like a table." But if you have no idea and you've never built a table before, you didn't build anything before, then it's way harder to do. And so that's why I think I would recommend, make money, earn and learn.

• 2:10Alex Hormozi?

  One to three years, like my first thing out of college and like college is different now than it was then. But like, like I did college for three years and then I worked for two years. And then the next thing I did is I still didn't even start immediately. I then started as like an apprentice at a gym because I wanted to get in the fitness business. So I went to a successful gym owner and said, hey, can I like work for free? Can I mop the floors? And I was like a white collar consultant. So I went from making, I think, I actually don't remember what I made. I know I have $50,000 in savings. The reason it's like unclear is because I got paid on contracts. It was like very lumpy anyways. But anyways, I, he then basically started paying me minimum wage to follow him around. But like an amazing ROI for me because he was like, oh yeah, like email marketing. And I was like, what's that?

• 2:54Alex Hormozi?

  And he was like, oh, it's this whole thing, right? And again, YouTube wasn't really like around the way that when I started doing this. And so I had to, had to learn the hard way. So that being said, hopefully that helped for Adam in terms of thinking about what to do. And John, what's up? We on? Yeah, John, I was gonna say Alex, yeah, it's me. Hi. John, what's up, man? Tell me about the business. So we help people with turning back denisatika. We have an online program. Okay, so online, okay. Yep. And you help with back pay, got it? That's right. What's revenue? And we're doing nine, 95 grand a month. Okay, so you're doing a million bucks a year, roughly, okay. So you're doing a million a year, great.

• 3:38Alex Hormozi?

  How are you, so I know you're online. Are you selling via checkout page or via sales call? We do a DM to treeish call to sales call. Okay, so, okay, cool. You're an online salesperson, okay. Yep. Okay, got it. And how are you getting leads? We have a million followers on Instagram. Okay, 1 million on IG, anything else? Yeah, like 200 grand on TikTok. Okay, cool. Well, you've probably already seen the difference of the value of 200,000 on TikTok versus 1 million on IG. Yep. Well, I'm gonna give you a quick hack to turn those TikTok people into more value. Please. Yeah, so we have found that the best call to action for TikTok, if you want to sell higher ticket stuff,

• 4:22Alex Hormozi?

  is actually make the CTA DM me on Instagram and then put the link to your Instagram.

• 4:29Speaker 01

  Wow, okay.

• 4:30Alex Hormozi?

  Yeah.

• 4:30Speaker 01

  So like on TikTok, you get people DM on Instagram.

• 4:33Alex Hormozi?

  I know, but you already have your old DM team set up on Instagram anyway. So like it works great.

• 4:38Speaker 01

  Yeah, cool.

• 4:39Alex Hormozi?

  All right, so that's thing one, great. So what do you want to do? What's the limit? What's holding you back?

• 4:44Speaker 01

  It feels like it's consistency. So we have one sales rep and two setters. And I want to get more sales reps, but it's just like one week will be filled out weeks in advance. And then another week, we barely get, you know, enough leads to fill up one. And then we just end up pitching on every single post. That just feels fatiguing for the for clients. So I'm curious, do we start ads? Can we start retargeting or do we need to fix something first?

• 5:04Alex Hormozi?

  How many posts a day are you putting out?

• 5:06Speaker 01

  Uh, we're putting out one post a day on Instagram. Uh, we tested two, but it's just, uh, like we really focus on, we edit it for eight hours. We make it great, so it's one a day.

• 5:15Alex Hormozi?

  Okay. I think you can probably make more. I'll just, I'll just put that out there. I would, I would a hundred percent not believe in the mythology of like there's a platform limit. There totally isn't. And that's on, and I, I pretty much stand by that on every platform. Like Fox News puts out one, I just looked at this, we were calling up this morning. Does one long per hour on YouTube.

• 5:38Speaker 01

  Oh, wow.

• 5:38Alex Hormozi?

  Right, and they do like 300 million views, right? And there's a Bollywood account that gets a billion views a month on Instagram and puts out a hundred posts a day on Instagram.

• 5:49Speaker 01

  Jeez, yeah.

• 5:49Alex Hormozi?

  So you have to think about it like this. So instead, so I hear what you're saying with the fatiguing audience. I think more realistically, you're fatiguing your editor, not your audience. I think they're not making good enough stuff. No, I'm being real. I think they're not making good enough stuff. Like your audience has no, has an insatiable demand for value. Wouldn't you like?

• 6:05Speaker 01

  Yeah.

• 6:05Alex Hormozi?

  Believe that in your core. Your audience has an insatiable demand. It will literally never, it's an endless pit when it comes to value and has almost no appetite for fluff and waste. So if we have, let's imagine that this circle represents a million people, okay? When you make a post, you're getting like one to two percent of your audience to actually see it, right?

• 6:27Alex Hormozi?

  And so if you make more posts, you'll just have more one to two percents that see it.

• 6:32Speaker 01

  Okay.

• 6:33Alex Hormozi?

  Okay. Now, where your issue comes up is that when you make your call, you know, your direct call to action posts, then it's like goes from like that kind of thicker dot to just like an itty bitty speck. Because your, your reach gets hammered, right?

• 6:47Speaker 01

  We actually do a call to action on every post, like at the end.

• 6:50Alex Hormozi?

  Yeah, and that's okay. Well, it's, it's not, it's not the end of the world. Again, all that matters is like, how long is the CTA relative to the post? Right? So it's usually like, are you doing a mini chat integration?

• 7:01Speaker 01

  Yeah.

• 7:02Alex Hormozi?

  Yeah. So how long is the CTA?

• 7:06Speaker 01

  It's like six seconds.

• 7:07Alex Hormozi?

  Is it, that's long. Is it pre-recorded or is it like pre-recorded then stapled on? Or are you making them native every time?

• 7:14Speaker 01

  It's native, but it's the same every time almost.

• 7:16Alex Hormozi?

  Yeah, so you want to swap out what the lead magnets are constantly.

• 7:20Speaker 01

  Oh, okay.

• 7:21Alex Hormozi?

  Right now, because like, why would they respond? They already got it.

• 7:25Speaker 01

  Yeah.

• 7:26Alex Hormozi?

  That's right. So, all right, so I'm gonna, I'm gonna write down little nuggets for you. So number one, we're gonna go TikTok, TikTok, DMs to IG as CTA. Number two, we're gonna make more lead magnets so that you can alternate through them. Number three, I think more content is a good idea.

• 7:48Speaker 01

  Okay.

• 7:49Alex Hormozi?

  Number four is I think you need to lower your time, your CTA time. So I would probably, I would shoot for like three seconds or less for your CTA. Because the thing is, is it'll kill the, it'll kill the view through rate.

• 8:02Alex Hormozi?

  Right? And then that's killing the amount of reach you're getting.

• 8:05Speaker 01

  Mm hmm.

• 8:06Alex Hormozi?

  Yeah. Okay. And you're doing comment like book or comment whatever, and then it DM'd them the thing?

• 8:11Speaker 01

  No, we actually do a, like for a free static assessment. And then we just basically say comment for an assessment, and then we book a call and DMs.

• 8:19Alex Hormozi?

  Yeah, I mean, that's also a really heavy ask. So it might be worth considering like a cheat sheet and then a triage question.

• 8:28Alex Hormozi?

  Okay. Because I mean, like, that's like the heaviest right hook you can do. Yup. I'll give you guys a little insight. On one hand, like, when we do ads that are like direct to workshop, that's like, quote, the heaviest ask, like, hey, come out to Vegas, right? That's a pretty, you know, it's gonna have a hurdle, etc. Now, when we have a scaling roadmap, which you may have seen ads for, right? The scaling roadmap has lower immediate ROAS, but over a 60 or 90 day window, has superior ROAS to direct workshop. In addition to that, it also has like 10 times the reach. Because getting somebody who's a little bit like, somebody who's like, yup, I want to come to a workshop, like, they've already consumed, like, that's almost like, it's almost like a warm audience retargeting, more than it's like, an ad and a process that like nurtures, you know, prospects and then, you know,

• 9:13Alex Hormozi?

  warms them up, provides value, etc. Yup. And so, I think if you want to broaden, kind of like, the net that you're going through, just make the ask that you have a little bit lighter. So I think, one, you've got your direct, like, if you're doing one a day, I would do like, maybe two a week of the direct one, and then do the remainder of them as posts that are like lead magnet centered, right? Like, seven tips to fix this, or whatever, right? And you can spend, I'm sure you could spend 100 of those things. It's not, it's not that hard. And then the triage question is like, hey, are you here for free stuff, or do you want to solve the problem? For good. And they're gonna say, I want to solve the problem. And you're like, great, and then you're into a sales conversation.

• 9:52Alex Hormozi?

  That's great. And then, at what point would you start retargeting ads? The thing is, is, okay, this is, this will be great for everybody. If you think about your audience as this pyramid, right?

• 10:04Alex Hormozi?

  The people who are buying from you right now are this like, tiny, tiny little top 1% here. And so, there are some things that, there are some actions that could get you to converge to a higher percentage of that 1%, which means that like, we could make the well, or the pyramid, larger, which we would do by posting more times and making better content, right? Or, we can keep that pyramid the same size, right? And then we can move this line of what percentage we're converting, and make that a little bit deeper. When you add a sales team, that converts a higher percentage of the audience. When you add ads, you're gonna convert a higher percentage of the audience. Because you're just gonna have your ads shown to a bigger percentage of people in that sphere, right?

• 10:48Alex Hormozi?

  And so, it's almost like reaching into forward revenue and pulling it forward, which is fine, as long as you're filling up the bucket, right? So I would, right, you get what I'm saying with that? So you will absolutely make more money if you have a sales team and run ads. No question, but then you will hit another plateau. And you will still be limited by the growth of your organic unless you create a true cold traffic acquisition channel, which is a different monster and beyond the scope of right now. All right. And so my recommendation is I would want you to double your content. And if you want to keep one of your, your CTAs as, because I don't want you to like, I don't want your business to go down. Keep one CTA as your direct to, you know, book a call and keep the other and make the second CTA for the lead magnet. And just do two a day. Sounds good.

• 11:33Alex Hormozi?

  Cool? Sounds great. All right, rock and roll. Appreciate you, John. Awesome. Thank you. Yeah, thanks for calling Hermosy Highline. All right. So let's take a little, let me, let me look at the chat. What's up, guys? Okay, so as I build a personal brand, is it better to become an authority in a certain skill and then start posting content, or is it better to start posting content without being authority in that skill? Great question. So my perspective on this, and this probably will differ from other people's, but I can only explain what I do, right, and the kind of the thinking process behind it. I, I never want someone to question whether I'm legit or not, right? And I, I think that way, and maybe it's because I just have like massive insecurity, who knows? But the, the reason that I, I tend to always start with proof, right?

• 12:17Alex Hormozi?

  And so I would rather like, and if you don't have external achievements, right? Then you need the achievements to be effort based rather than external. Okay, so what does that mean? So instead of saying, hey, I did a hundred million dollar launch, that's an external achievement. Everyone can see that, great, lots of money, et cetera, right? I could say, I made 35,000 pieces of content. You can control that. Now, whether you did a good job or not is, is a separate thing. But when you do effort based achievements, it's kind of like grinder pay, right? And so in the beginning, you don't have the, the money or the proof to do it. So you have to grind. And so grind wise, it's like, I'm going to make 35,000 pieces of content and document what you're learning along the way. That's fine. Like, that's the game. And so. That will be kind of phase one. Phase two is be willing to work with people for free.

• 13:02Alex Hormozi?

  People spend way too, like, I'll say this differently. If you're getting started, every single business, to this day, I still start with free stuff. Because I want to get feedback from people. I want to know what they like, what they didn't like, what their pain points are. I want to figure out how to smooth out the process. I want to figure out all these different things. And me trying to guess at that on my first shot and ask people to pay me? I'm like, I don't want to do that. I'm going to have a bad reputation. I don't want it, right? And so it's going to take you so much more time. Think about this. For you to get 10 customers who pay you, with it never giving anything away for free, is going to take a long time. You getting 10 people to start working with you for free? And then using the 10 testimonials you get there to then get your 11th, 12th, 13th, 14th, 15th, 16th, 17th, 18th, 19th, 20th customer?

• 13:45Alex Hormozi?

  Is going to take you less time to get that 10 paying customers if you do 10 for free first of whatever it is that you sell. So, that's my, that's my two cents. More people knowing about your stuff is not going to make you less money. I do think though, that like, big, big, big picture, it also kind of depends what you're going to get into. If you want to be, you know, it's like, I want to be a business coach. It's like, well dude, just look at the people who have the most, who have the most credibility in business. They have some big giant thing behind them, right? I would not try and compete there. I would try and compete on a much smaller pond that I can be, I can be king of. A very, not even a pond, like a puddle. Like, just be king of this itty bitty puddle.

• 14:28Alex Hormozi?

  And create proof around that little itty bitty puddle. And you will find people who are willing to pay you because you are a specialist and because they have access to you. Okay? And I'll give you, I'll give you one more tidbit for those of you guys who are starting out, and then I'll take the next call. So, when you're starting out, you always have an advantage. All right? Every, every position has an advantage on the board of the game. So, if you're, if you're, if you're a super baller, right? You're, you're a G or whatever you want to say, right? My position is to say, don't go with Weenie McGee over here. He's in his mom's basement and doesn't know what he's talking about, right? I have been doing this for however many years and look at all this credibility and look at all this proof, right? Cool. Weenie McGee, right, isn't being in his mom's basement and he's gonna be like,

• 15:11Alex Hormozi?

  "Don't, don't hang out with Alex. You're never gonna talk to Alex. There's no chance." Right? You're gonna be talking to someone three levels down from him and you're just gonna be a number to them. I mean, that's what I would say. Of course, we don't operate that way, but like, that's what you would say, right? And so, if that's where you're positioned, then you say, "Dude, you're gonna get my phone number." And so, it's not, "Am I better than Alex?" Of course, I'm not better than Alex. Like, own that. Of course, I'm not better than Alex. But, I am better than the third rung down on his company, and you're gonna get my phone number and I care about my reputation and that person doesn't. That's where you compete. And so, that's how you can start getting a foothold, which is why there will always be room in the market for people who are new, because people who are established are gonna have their position to play. Cool, cool, cool. A classic is gonna say, "We're the classic. We've been doing this forever."

• 15:55Alex Hormozi?

  And the people who are new and upstart is like, "Hey, I'm a young founder. Just try my soda out. If you like it, tell me, give me feedback. I'll try and fix it." That's the position. Both can win. And for everyone who's like, "I don't think this'll work," or something like that, it's like, dude, like, I was in the same position. It's not like I'm 50. You know what I mean? Like, I started at 02 and you just have to outwork, right? And you gotta say like, "I'm willing to do more than those guys are." In the beginning, people don't wanna say it, "I'll do it for less." Until eventually you have proof. And then when you have proof, it becomes a virtuous cycle of charging more. Okay.

• 16:25Alex Hormozi?

  Caller 2, Steven, let's rock and roll.

• 16:28Speaker 02

  Until eventually you have proof, and then we have proof, it becomes a virtuous cycle. Nice to meet you.

• 16:33Alex Hormozi?

  Nice to meet you too, Ben. I'm gonna, cuz the team collected your number. So, monthly revenue right now is 54K, right?

• 16:40Speaker 02

  Yeah.

• 16:41Alex Hormozi?

  All right? And then ad spend is 3K.

• 16:43Speaker 02

  That's monthly.

• 16:45Alex Hormozi?

  Yeah, per month. I got you. This is per month. Great. Ads is 3K? Great. Per month?

• 16:53Speaker 02

  Yes, sir.

• 16:53Alex Hormozi?

  Okay, per month? Industries, you're medical? What do you do? Custom insoles?

• 16:59Speaker 03

  Yes, I'm a podiatrist.

• 17:00Alex Hormozi?

  Oh, cool. Yeah. A buddy of mine's dad was a podiatrist back in Baltimore. Um, okay, the offer is insoles for 300, so this is your AOV, call it, right? Um, is 325. I know that you're in pounds, but I'm just using writing dollars, so it doesn't really matter. Okay, constraint is Google Ads are underspent. Okay, so you can't spend more than the 3,000 a month. Is that correct?

• 17:22Speaker 03

  Yeah.

• 17:23Alex Hormozi?

  Okay, are you local?

• 17:26Alex Hormozi?

  Like, are you running ads for a local business? Are you running this ad spend nationally?

• 17:30Speaker 03

  For a local business, yes.

• 17:32Alex Hormozi?

  Okay, you're local. So people, people do that. They come in, they get measured or whatever, and then they, they get insoles, correct?

• 17:38Speaker 03

  Exactly, yes.

• 17:39Alex Hormozi?

  Okay, got it. So they're saying they just can't spend more money?

• 17:45Speaker 03

  Yes.

• 17:46Alex Hormozi?

  Okay. Ah, I don't know if I believe that. How big of a city are you in? Like, what's your 10-mile radius?

• 17:54Speaker 03

  Um, I, I thought he, he said around 10 kilometers, something like that. But I was also thinking from, yeah, maybe isn't, didn't, doesn't have the skills, right, just to, to, to, to scale the campaign, so to say. So I am already in touch with a general, our marketing agency that is already checking in with another Google Ads specialist to see from if they can duplicate certain campaigns and get better results.

• 18:19Alex Hormozi?

  Yeah. So I'll say this, Ben. Um, so I mean, congrats, you're doing, you know, 600 a year. I would strongly recommend you learning this stuff because it's not that hard. Like, it's really not that hard. Because then you're not gonna, like, right now, you're saying the constraint of the business is under someone else's control, right? That's a tough position to be in.

• 18:40Alex Hormozi?

  So I would just want, I would want to own this myself. And I'll give you a, I'll tell you a story that like really changed my person. I haven't told this story in a really long time, so this will be good. So I went to this meetup where everybody was doing, you know, eight figures or more. And at the time, I wasn't, and so I like snuck in. They were like, no, we think you're gonna be, you know, a big baller, because whatever, they recognized the, the, the magic in me. Um, but anyway, so they, they let me come. And what was really interesting is one of the guys who was making the most money in the room, when he went up and presented, he said this really interesting thing. He said, I would encourage everyone here, because someone asked him like, hey, so what are you doing to like reinvest in your education right now? He said, well, at the level that I'm at, and he was making, I think, 30 or 35 million a year. And I remember thinking, I was like, oh, my God, this person is God. I heard that. But he said he was making $35 million a year.

• 19:25Alex Hormozi?

  And he said, I would encourage you to write down a percentage of your income, whatever percentage you're comfortable with, and put that as your learning budget. All right? And that learning budget, he said, you should spend that every month and expect to have zero ROI on nine out of 10 things. And then the one 10 thing will make you 10 times the money. It's almost like doing a venture bet on yourself from an education perspective. And so I took that to heart. And then I started spending, saying, okay, you've got your 3,000 a month. I want you, Stephen, to do $3,000 a month that you control.

• 19:54Alex Hormozi?

  And you say like, I'm going to spend 100 bucks a day, and I'm going to see if I can beat this guy. Because I promise you, when it's your business, you'll beat him. Like, you'll suck in the beginning, but you'll quickly learn. Like PPC for Google Ads is like really not hard.

• 20:11Speaker 03

  You definitely go start with that.

• 20:14Alex Hormozi?

  Yeah, and the nice thing is that no matter what, if you spend more money on ads, you're going to make more money. So even if you're inefficient, you'll still increase top line. But I think that if you just try and get good and good and good at that. And then I would also reach out to whatever these other agencies are. I don't mind spending more on this, because again, the big picture is like, you have bigger goals than this, right?

• 20:31Speaker 03

  100%.

• 20:32Alex Hormozi?

  Right? So just don't let your ego get wrapped up in your one month or two month profit. Like, that profit will be there if you choose not to spend money. It's always there, right? So I would want to take as much of that profit as humanly possible. And I'm just telling you how I do things. I take all that profit and I just see that as like, this is my opportunity to reinvest in the business. When the business is small, reinvestment is you. You're the reinvestment. And so that's where I'm like, okay, I want to, I'm going to pay my current agency. I'm going to pay the next agency, and I'm going to tell both of them, I want them to teach me what they're doing. And I'm going to spend my own budget, too.

• 21:05Speaker 03

  Yeah, so that was originally already my plan. So I had just called this afternoon with the new agency. And I told them from look, if we go for with the Google Ads especially, I want to have weekly calls to at least know what he's doing in the ad account. So I just can follow the guy. And that ever may ever have new ideas that I can just try out, but that I understand what he's doing.

• 21:27Alex Hormozi?

  Let me tweak, let me tweak it for you. Let me tweak it for you. Let me tweak it for you. You're going to ask how often are they, are they going to be, you know, really doing work on the campaign? Just let's just guess it's twice a week. Okay. I'm going to do something even better for you. I'm going to ask that you don't even work on my account. I'm still going to pay you. And I want to have two calls a week and all of the work is going to be done on those two calls. That's it. They don't have to do any other work for my account. But I want to be the one who controls the mouse and I want them to tell me what to do. And why they're doing it.

• 21:58Speaker 03

  That's a very good idea.

• 21:59Alex Hormozi?

  Okay. This is how I learned, this is how I learned how to run national level Facebook ads. This is how I learned how to do it. I hired an agency and I said, I'll do whatever. I'll show whatever hours you want. I was like, but I control the mouse and you tell me what to do. And I'll do it. And I recorded my screen and I would ask questions along the way and they would tell me. I'd be like, okay, so why are we doing this? And then within six weeks, I was like, I get it. I don't need this guy anymore.

• 22:22Speaker 03

  That's genius.

• 22:24Alex Hormozi?

  Cool.

• 22:26Speaker 03

  Yeah, sounds good. Sounds good. Definitely going to start that.

• 22:29Alex Hormozi?

  Rock and roll. Congrats on the business, Stephen. All right. What type of lead magnets or funnels do you make for them? I'm guessing, I don't know what that one is in reference to. Richard Ferris. Okay. Core question is how do you, is your PE firm? Okay, hold on. Partnered with my wife on her business. We sell jewelry with purpose. Natural stones. What would be the best content to post for advertising? We use TikTok. All right. Done. Bro, what are we, bro, what are we talking about here? All right. So number one, you should be on TikTok, TikTok Shop, for sure. Like, if you're not doing that, you should be doing that. Number two, I'll bet you with jewelry, probably have very good margins with it. And you could probably pay really aggressive affiliate commissions to any other TikTokers who will repost your stuff.

• 23:13Alex Hormozi?

  And so I would look at, are there small things that I can give out for free? I know that's heavy, but people will be willing to do it. I don't know what revenue is right now, by the way, Junior. But I would also double this on Instagram, and I would want to do like as many collab posts as I can with other influencers, with them trying on different things. And I think the big thing that I would want to do is I want to tell the narrative. I want to tell the story behind the jewelry. All right, so I'll give you an idea. So, or I'll give you an example. So if you think about like selling merch, right? Everyone has t-shirts. There's nothing sexy about a t-shirt. And if a t-shirt just has a logo on it, again, it doesn't really matter. But if you say, let me tell you the story behind why this logo or why this saying is meaningful.

• 23:57Alex Hormozi?

  And so what we have to do is basically pair this commodity of jewelry with the meaning that you then ascribe to it, or the narrative or the story that you put on top of it. And so two years ago, I did my book launch for the Leeds book, and some of you guys might have been there. And I sold like millions of dollars of hats, all right? And people were willing to pay a hundred dollars essentially for a hat. Now, obviously, they got two other books and the hat was free, but like fundamentally, that was what happened, right? And so what's really interesting about that, the specific event, is that I then spent like four or five minutes just saying like, let me tell you about why I wear this hat, what this hat means to me. And so after explaining the meaning behind the hat, then way more people were willing to buy it versus like, hey, do you guys just want to buy a hat? And so I think to the same degree, you need to do that within your content. And you're like, well, what kind of content should I do?

• 24:40Alex Hormozi?

  Like, show the jewelry, show people unboxing the jewelry, show people picking out between different kinds of jewelry, and then you telling the narrative behind each of them. In terms of where was the stone sourced? Why did you design it that way? What does this chain do versus this chain? What do these metals do? Like, there's so much to talk about with your content. And don't be afraid to repeat stuff. Just don't be afraid to repeat stuff. And one of the really interesting things with content is that, I'm going to give a Dave Ramsey example, but like, you need significantly less variety in your content than you think you do. So think about what Dave Ramsey has done for the last 35, 40 years, however many years it's been. He has told people to spend less than they make. That has been his core message. Don't go into debt, spend less than you make, cut up your credit cards, pay off your loans.

• 25:25Alex Hormozi?

  That's more like it. Obviously, it's the seven baby steps, and that's awesome. But my point is this, is that people still tune in every day when they know what the message is, because they're like, I wonder how this will apply to a stripper. I wonder how this will apply to somebody who won the lottery. I wonder how this will apply to somebody who's got a kid who's going to college now, and it's a good college or it's a bad college, right? And so the thing is, is that you can have a single framework or a single core product or concept, and the variety will just come from the examples that you use. Cool? All right. Third caller is Liz. Liz, let's get busy, Liz.

• 26:05Speaker 04

  Hello?

• 26:06Alex Hormozi?

  Hey, Liz, what's up?

• 26:09Speaker 04

  I'm good, how are you?

• 26:11Alex Hormozi?

  Excellent, you're on her mozy hotline. So you've got monthly revenue of $600,000 a month. Congratulations, badass.

• 26:18Speaker 04

  Thank you.

• 26:19Alex Hormozi?

  Welcome. Rich, you gotta buy me some jewelry from Junior. All right. Okay, ad spend is $150,000 a month. Okay, a little high there, got it?

• 26:28Alex Hormozi?

  All right, what are your margins right now? They didn't ask that, but what are your margins?

• 26:30Speaker 04

  Well, before we started, I've been preparing for a million a month for the last three months. And so I started building the fulfillment team. And in the last few months, my margins have been 25%.

• 26:44Alex Hormozi?

  Okay.

• 26:45Speaker 04

  But before that, it was 45%.

• 26:49Alex Hormozi?

  Yeah, got it.

• 26:49Speaker 04

  So in the last few months, I've been trying to scale, build a team, try to sell more ads, have a manage.

• 26:55Alex Hormozi?

  Got it.

• 26:55Speaker 04

  So that's it.

• 26:56Alex Hormozi?

  Okay, industry is marketing automation. Okay, so who's the target?

• 27:01Speaker 04

  Many chat funnels.

• 27:03Alex Hormozi?

  Oh, many chat funnels, okay, got it. So thank you. Makes it easier for me, okay. Many chat funnels, okay, great. And then your offer is, it's for e-commerce brands, okay, cool. And they gotta be doing over $10,000, sorry, $25,000 a month in spend? That's their requirements? Okay.

• 27:22Speaker 04

  Yes.

• 27:22Alex Hormozi?

  $25,000 a month? Okay, what's your price?

• 27:27Speaker 04

  Six K a month.

• 27:28Alex Hormozi?

  Six K a month, okay. Six K per month price, what's churn right now? Between?

• 27:34Speaker 04

  Five to 10%.

• 27:36Alex Hormozi?

  Okay. Okay, so five to 10% churn, let's just use 10% to keep it simple, so 60K. What's gross profit on the service of 6K a month?

• 27:46Speaker 04

  Well, we're breaking even in month one and then we're starting to profit in the month two.

• 27:51Alex Hormozi?

  No, but that takes into cost of acquisition, I'm saying what are gross profits on the service? So how much does it cost you to deliver for a $6,000 a month customer?

• 28:02Speaker 04

  About two, two K, two to three K.

• 28:06Alex Hormozi?

  Okay, two to three K, okay. Okay, a little bit high, but that's fine, okay. Cogs, so cost of goods sold, okay, great, so what's the question? How can I help, now that I have context?

• 28:19Speaker 04

  I've been struggling to double my ad spend, so our meta ad break when we push from 5K a day to 10K a day.

• 28:27Alex Hormozi?

  Yeah.

• 28:27Speaker 04

  So the question is, should we, instead of multiple 1K a day campaigns, which might be competing the day to each other?

• 28:36Alex Hormozi?

  They're not, don't worry about that.

• 28:37Speaker 04

  To consolidate everything into a

• 28:39Alex Hormozi?

  They're not, don't worry, like that media buying mumbo jumbo, don't worry about it, doesn't matter. Okay, keep going, so you want to scale your ads and they're not scaling, okay.

• 28:49Speaker 04

  Correct, so is the one master campaign that's standing seven to eight K a day with one single asset, with a ton of ads, is better than multiple 1K a day campaigns?

• 29:02Alex Hormozi?

  I have no idea, I actually don't think it matters, being real, I don't, my whole, my whole life, that has never been the thing that has limited me, said differently, I don't think your bidding strategy is the limitation for how your business is not getting to a million dollars a month.

• 29:16Alex Hormozi?

  This is why it's valuable to have properly identified constraints.

• 29:19Speaker 04

  Is it creative then?

• 29:20Alex Hormozi?

  Yes, I think it's probably the creative. Where are you, where are you, how are you thinking through the hooks that you're choosing?

• 29:30Speaker 04

  Well, I'm researching using ChatGPT, whatever ads I see online, what feels good, what count interesting, and I will those out.

• 29:41Alex Hormozi?

  Okay, so I'll tell you, I'm gonna guess right now that that's probably the issue. So are you familiar with the five levels of awareness from, uh, this is Eugene Schwartz?

• 29:52Speaker 04

  Yes, I am.

• 29:53Alex Hormozi?

  Okay, so you have to translate those levels of awareness to the types of hooks that you're that you're making. So I'm gonna guess, so if you have like a hard ceiling on your advertising spend, like once you get over a certain level, like you can't spend more, it's typically because the nature of the hooks and the content that you're talking about only really relates to the bottom of the funnel.

• 30:14Speaker 04

  Uh huh.

• 30:15Alex Hormozi?

  So you're talking about most aware customers who already know about your types of offer, or you know, solution or product aware customers who know about, they know about ManyChat, or they know about you, or they know about your offers, right? So it's you're talking to a very, very warm audience. And so Facebook only has a very small amount of people who are, you know, doing $25,000 a month and know about this specific type of product offering. And so that's the only people they're showing the ads to.

• 30:41Speaker 04

  Okay.

• 30:41Alex Hormozi?

  And so we have to start like at the, at the extreme, right? You would have the unaware customer who is purely, you have to get them purely on curiosity.

• 30:54Alex Hormozi?

  Like your, your business is losing, you know, thousands of dollars a day because you don't have this one integration. That would be something that someone who has no idea about anything to do with ManyChat, anything to do with marketing automation, they might take the next step. Now, what happens is as you go up funnel, right? You go to higher or basically lower levels of awareness when there's way more people, sometimes the funnel has to change. And so does the lead manager. Are you just making a straight offer in your ads? What's the funnel?

• 31:23Speaker 04

  I'm making, yeah, I'm making that up on the book and demo.

• 31:26Alex Hormozi?

  Yeah, dude, you're like, you're, you are, you are so level, you're so low on the, on the awareness thing. Like, that's the issue. You have to, you have to make it easier for someone to take a step. They don't know who you are. Like, just saying like, hey, book a sales call is a tough ask, right? And so this is why like lead magnets and things like that make sense. It's like you might not have, need to have a longer process of breaking even, number one, and a longer process of educating the prospect, and you need to have wider hooks. And so, one of the big things that happens in like the whole marketing world is some people are like, ah, lead magnets don't work, or they do work. If you just say, hey, buy my shit, you will get higher ROAS than have a lead magnet. But you will be very quickly capped by the amount of people who are, who are warm. And so you've probably heard the whole like 97% of the audience isn't ready to buy right now and 3% is.

• 32:11Alex Hormozi?

  So right now, you're spending all your time on that 3%. If you want to scale this thing, you gotta be able to go up.

• 32:15Speaker 04

  Makes sense.

• 32:16Alex Hormozi?

  So you might, right, and so the, the hooks are gonna be like, how to double AOV, how to decrease, you know, your CPAs, or whatever the like types of language that you can make there. And it's like, here's six ways that you can decrease CPAs. Now, all of them might include using many chat to do it, and then maybe like, oh shit, this is really good, good stuff. And if you're super hands-on, which it sounds like you are if you're charging $6,000 a month, like, you can give away all the secrets. I promise you, just give away all the secrets. It will not matter. Give away all the secrets, all the sexiest stuff, put it in your lead magnets, put it in your ads, put it in your little video sales letter that you have, right? And people are gonna be like, I don't want to deal with that, I'll just have them do it.

• 32:51Speaker 04

  Yeah, yeah, you're right.

• 32:52Alex Hormozi?

  Cool?

• 32:54Speaker 04

  Okay.

• 32:54Alex Hormozi?

  All right, rock and roll. Good stuff. This was fun. Let's do this again.

• 33:00Alex Hormozi?

  You bet, Liz. I just want to make sure that you're not, like, here's what's crazy about this, because I think this is good for, for everyone. People will stay stuck at this level for like years. Because you keep thinking it's like a media buying thing. It doesn't matter. Like, how you're doing your bidding and campaigns is like, we're talking about like 5% differences. Like, the things that are gonna get you from, you know, 600,000 a month to a million or multiple millions of dollars a month, it's gonna be strategic in nature.