$100 Leads

Author: Alex Hormozi

Influence – Robert Cialdini


Advertising is a skill worth having.

☕When money meets experience, the money gets the experience, and the experience gets the money.

You’re not getting as many leads as you want because you’re not advertising enough. Period.

💰Bottom line: All else being equal, when you double your leads, you double your business.

💭”If you cannot explain something in simple terms, then you don’t understand it.” — Dr. Richard Feynman, Nobel Prize winner in Physics

lead – a person you can contact.

Engaged leads are the true output of advertising.

💭”I don’t do drugs. I am drugs.” — Salvador Dali

You have to give people something they want.

Advertising your core offer might be all you need to get leads to engage.
⇒Sometimes, though, people want to know more about your offer before they buy. This is common for businesses that sell more expensive stuff.

lead magnet – a complete solution to a narrow problem.

  • It’s typically a lower-cost or free offer to see who is interested in your stuff.
  • Once solved, it reveals another problem solved by your core offer.
    ⇒This is important because leads interested in lower-cost or free offers now are more likely to buy a related higher-cost offer later.
    ⇒So, your lead magnet should be valuable enough on its own that you could charged for it. And, after they get it, they should want more of what you offer.

💰A person who pays with their time now is more likely to pay with their money later.

💰Good lead magnets get more engaged leads and customers than a core offer alone, and do it for less money.

7 steps to creating an effective lead magnet:

  1. Figure out the problem you want to solve and who to solve it for.
  2. Figure out how to solve it.
  3. Figure out how to deliver it.
  4. Test what to name it.
  5. Make it easy to consume.
  6. Make it darn good.
  7. Make it easy for them to tell you they want more.

💰Pick a problem that is narrow and meaningful.
⇒If we can solve that new problem with our core offer, we’ve got a winner.

Action step:

Pick the narrowly defined problem you want to solve. Then, make sure your core offer can solve the next problem that comes up.

Action step:

Pick how you want to solve your narrowly defined problem.

💭My favorite lead magnets are solved with: software, information, services, and physical products.

💰Leads have to notice your lead magnet before they can consume it.
⇒This means how we present it matters more than anything.

☕People prefer to do things that take less effort.

💰Give away the secrets, sell the implementation.

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.

People buy stuff based on how much value they think they’ll get after they buy it.
⇒💰The easiest way to get them to think they’ll get tons of value after they buy is to provide them value before they buy.

If you give people a reason to take action, more people will do it.

Action step:

Give a clear, simple, action-oriented CTA(call to action).
Then, give them a reason why using scarcity, urgency, and any other reason you can think of. And, do it often. Don’t be clever, be clear.

Action steps:
  1. If you’re struggling to get leads, make an amazing lead magnet.
  2. Figure out the problem you want to solve for the right customer.
  3. Figure out how you want to solve it.
  4. Figure out how to deliver it.
  5. Make the name interesting and clear.
  6. Make it easy to consume.
  7. Make sure it’s darn good.
  8. Tell them what to do next, why it’s a good idea, do it clearly, and do it often.

Good leads does 4 things:

  1. Engages ideal customers when they see it.
  2. Gets more people to engage than your core offer alone.
  3. Is valuable enough that they consume it.
  4. Makes the right people more likely to buy.

Get leads
Warm outreach
The only 4 ways we can let anyone know about anything:

  • 1-to-1 to a Warm Audience = Warm Outreach  
  • 1-to-many to a Warm Audience = Posting Content  
  • 1-to-1 to a Cold Audience = Cold Outreach 
  • 1-to-many to a Cold Audience = Paid Ads 
    ⇒These are the only four things you can do to let other people know about the stuff you sell.

How to do warm outreach in 10 steps:

  1. Get your list 
  2. Pick a platform 
  3. Personalize your message
  4. Reach out
  5. Warm them up
  6. Invite their friends
  7. Make them the easiest offer in the world
  8. Start at the top
  9. Start Charging
  10. Keep Your List Warm

💭”To get what you want, you have to deserve what you want.” —Charlie Munger

☕People love talking about themselves. So let them. They also love to be complimented, so do that too. And if people feel good when talking to you, they’ll like and trust you more.

Value has 4 elements:

  1. Dream Outcome: what the person wants to happen, the way they want it to happen 
    →State the best possible results your product can get. Big bonus points if those results come from people like the one you’re talking to.
  2. Perceived Likelihood of Achievement: how likely they think it is for them to achieve their goal 
    →Include results, reviews, awards, endorsements, certifications, and other forms of 3rd party validation. Also, guarantees are huge. 
  3. Time Delay: how long they believe it’ll take to get results after they buy  
    →Describe how fast people start getting results, how often they get results when they start, and how long it takes to get the best results possible. 
  4. Effort and Sacrifice: The bad stuff they’ll have to endure and the good stuff they’ll have to give up in their struggle to get the result. 
    →Show them the good stuff they can keep doing, or get to do, and still get results. And show them the bad stuff that they can get rid of, or avoid doing, and still get results.
Pro Tip:

11 Ways To Increase Perceived Likelihood of Achievement
Here’s how you increase their perceived likelihood of achievement so more people take you up on your offer. Include one or more of the following:

  1. Showing proof we have done what they want (our own story).
  2. Showing proof of people just like them getting what they want (think testimonials).
  3. Showing the sheer volume of happy reviews we’ve received (think lots of 5-stars).
  4. Certifications/Degrees/Third party accreditations that we’re legit.
  5. Numbers, stats, research that supports the outcome you want them to believe.
  6. Experts vouching for us.
  7. Some new/unique characteristic they haven’t failed with before (so it might work this time).
  8. Celebrities who have endorsed us (‘they trusted them, so should I’).
  9. Guaranteeing they’ll achieve it (so we put some skin in the game too.
  10. How well you describe them or the current pain they’re experiencing. The more specific the better. (think ‘he/she really gets me, they must know how to help’)
  11. If possible, demonstrate the outcome live.

💰My recommendation: whenever you launch a new product/service make the first five free. Here’s why:

  1. You get the reps in and become comfortable with making offers to people. It’ll calm your nerves knowing you’re just helping…for free…for now.
  2. You probably suck (for now). People are far more forgiving when you haven’t charged anything.
  3. Because you probably suck, you need to learn how to suck less. You suck less by doing more. It’s better to have a few guinea pigs to get the kinks out. You’ll learn a ton from the people you help for free, I promise. Even though it may not feel like it now, you’re getting the better end of the deal.  
  4. If people get value, especially for free, they’re far more likely to: 
  • Leave positive reviews and testimonials. 
  • Give you feedback. 
  • Send their friends and family.

And if that’s not awesome enough, free customers can make you money in three other ways:

  1. They convert into paying customers. 
  2. They send you paying customers via referrals. 
  3. Their testimonials bring in paying customers.

What would I have to do to make it worth it for you to continue?

💰Once people start referring, start charging.
You can do something like: “free…’ in the script above to ‘80% off for the next five’. Then ‘60% off for the next five.’ Then ‘40% off for the next five,’ and so forth. The “I increase my prices every five” rule also adds urgency because prices actually go up.”

Pro tip:

Get more cash up front & more yeses –> prepay + guarantee
Offering a guarantee gets more people to buy because it reverses risk. Here’s a nice twist on a guarantee that’ll get you more yeses and more cash.
You can offer a guarantee only to people who pay up front. Reason why: People who invest up front are more committed. And as a result, we’re able to guarantee their outcomes. So if you’d like our guarantee, you can prepay our service.
Another version of wording I got my good friend Dr. Kashey: After the person agrees to buy, you say “would you rather pay less today or get all your money back?” Paying less today = payment plan, so less money down. Get all your money back = prepay and get a guarantee that you get the result you want.
Ex: “Pay Less” = $2000/mo for 3 months = $6000(no guarantee)
Or
“Get All Your Money Back” = $6000 up front with a guarantee.
Presented this way, the majority of the people take the up front cash option with the guarantee. So if you planned on offering one anyways, you may as well weaponize it to incentivize more people to pay up front.

Are you still looking to:

  • …buy your dream home?
  • …get more sales leads?
  • …tone up your arms?
  • …open an online store?
  • …start a YouTube channel?

Warm reach outs daily checklist:

  • Who: yourself
  • What: first five free
  • Where: phone, email, snail mail, SMS
  • To Whom: Your Contacts
  • When: First four hours of your day
  • Why: You want to get customers or intros
  • How: Personalized Message using ACA
  • How Much: 100 Attempts Per Day
  • How Many: Follow up two more times after first.
  • How Long: Until you get customers

Warm reach outs should get about one in five contacts to engage. So one hundred warm reach outs should get about twenty replies. Of the twenty who reply, another one in fiveish will take you up on your free offer. So, four people. Of the four who take your free offer now, you should be able to convert one into some sort of paid offer later. Hooray – money.

🔑You’ll learn more in the first 10 days of doing 100 reach outs than you did from everything you’ve ever read or watched.

🔑When you’re starting out, getting new customers should take the majority of your time. Think 4 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. Embrace the work.

  • Post free content part 1
    ☕If someone is making more money than you, they are better at the game of business in some way.

💭Building an audience is the most valuable thing I’ve ever done.

💭When I put out ten times the content, my audience grew ten times as fast. Volume works. Content works. A growing audience is the result.

  • Posting free content grows your warm audience. 
  • So constantly posting free content means you’ll have a constantly growing audience of people more likely to buy your stuff. 
  • Free content makes all other advertising more effective. If you reach out to someone and they can’t find content related to your services, they’re less likely to buy. On the other hand, if they find lots of valuable content, they are more likely to buy.

Bottom Line: You’ve got to make your content look like what they expect will reward them.

Action Step:

Format your content for the platform first. Then, tweak it so it hooks your ideal audience. Use the best content on the platform that targets your markets as your guide.

How good your content is depends on how often it rewards your audience in the time it takes them to consume it. ⇒ Think value per second.

☕There is no such thing as too long, only too boring.

  • Post free content pt2
    💭”Give give give give give give, until they ask.”

Action Step: I most commonly integrate the CTAs(the “asks”) after a valuable moment or the end of the content piece.

“I’m looking for 5 (specific avatar) to help achieve (dream outcome) in (time delay). The best part is, you don’t have to (effort and sacrifice). And if you don’t get (dream outcome), I will do two things (increase perceived likelihood of achievement): 1) I will hand you your money back 2) I will work with you until you do. I do this because I want everyone to have an amazing experience with us and because I’m confident I can deliver on my promise. If that sounds fair, DM me/book a call/comment below/reply to this email/ etc.”

7 lessons I’ve learned from marketing content:

  1. Switch from “how to” to “how I”. From “This is the best way” to “These are my favorite ways”, etc.
  2. We need to be reminded more than we need to be taught.
  3. Puddles, ponds, lakes, oceans.
  4. Content creates tools for salespeople.
  5. Free content retains paying customers.
  6. 🔥People don’t have shorter attention spans, they have higher standards.
  7. Avoid pre-scheduling posts.

Cold outreach

  1. Problem: “But how do I contact them?” → Build a list.

3 different ways I get my targeted lead lists:

  1. I use software to scrape a list of names.
  2. I pay brokers to assemble me a list of targeted leads.
  3. If neither of those work, I manually scrap a list of names myself.
Action Step:

Find your scraping tool by searching “outbound leads scraping tool” or “database lead scraping”. Find brokers the same way. With a few clicks, you’ll find what you’re looking for. Put your first 1000 names together. If you have more time than money, you might want to start at step three since it only costs time.

  1. Problem: “I have my list, but what do I say to them?” → Personalize, then give big fast value | “They don’t know us.” → Personalize and act like you know them.

The person says: “Your name?” then pausing (like a normal person). You’d say, “yea…who’s this?” Now, if that person then went on to say, “it’s Alex…then pauses…I watched a few of your videos and read that recent blog post you wrote on dog training. It was killer! Really helped me out with my Doberman. She’s a beast! That peanut butter trick really helped. Thanks for that.”

You’d still be wondering what’s going on. But you know what you wouldn’t be doing?…hanging up. Then you hear, “Oh yea, sorry, I got ahead of myself. I work for a company that helps dog trainers fill up their books. We like to partner with the best in the area. So I’m always on the lookout. We worked with someone about an hour north from you…John’s Doggy Daycare…heard of them?”

You’d respond yes or no (it doesn’t matter), and they’d say, “Yea, we ended up getting them 100 appointments in 30 days using a combination of text email and some ads. Do you offer similar services to them?” To which you’d probably say yes. Then they’d say, “Oh that’s perfect. Then we’d be able to use that same campaign in your market and drive leads over to you. If you got a boatload of high paying new dog training customers you wouldn’t be upset with me would you?” You’d laugh lightly. “Okay great. Well…tell ya what…I can walk you through the entire thing soup to nuts later today. Will you be around at 4?”

Personalization is what gets your foot in the door to get the sale.
Basically one to three pieces of information we can find that a friend might know about the prospect. Then we want to complement them on it, and ideally, show them how it benefited us. 🔥People like people who like them. Even if someone doesn’t know you, they’ll give you more time if you know something about them.

Action step:

Do a little research on each lead before you send them a message. We can do this ourselves, pay people to do it for us, or use software. Batch this work. Then, use your notes to figure out the first thing you’ll open with to feel more familiar.

They Don’t Trust Us → Big Fast Value.
Directly make your offer, or offer a lead magnet, or both.

Swapping the lead magnet blew everything else out of the water. We swapped from “game planning” – code for “sales call” –  to actually giving them as much free service as we could possibly afford. Our take rates 3x’d and cold outreach became a monster channel for us.

💰If your offer/lead magnet isn’t working for you, up the ante. Keep offering more until you make it so good they feel stupid saying no. They either buy from you or have nice things to say about you. Win-win.

💰The goal is to demonstrate big value as fast as possible.
Give yourself a downhill battle by giving away something crazy.
💰Give away something for free people would normally pay for and they will want it.

Action Step:

Provide the biggest fastest value you can afford to with your lead magnet or offer. Then, write your scripts. And don’t worry, I got your back there. To give you a head start, I provide sample phone, email, and direct message scripts at the end of the chapter.
Note: Phone and chat scripts are never more than a page or two, and cold emails rarely more than half a page. So don’t overthink it. There are no awards for prettiest script. Get your first 100 conversations or 10,000 emails out of the way before tweaking it. Get testing. Then tweak as you learn.

  1. Problem: “I’m not getting enough chances to tell people about my amazing stuff, what do I do?” → Volume
    a) automated delivery
    b) automate distribution
    ☕The fewer leads you have, the less automation you should use.

Action Step. Embrace new technology. Allocate ten to twenty percent of your effort towards brand new untested technology. For example, if you make phone calls five days per week, try out a new dialer or tech one of the days and see how it does compared to your standard dialer.

c) Follow up. More times. More ways.
Contacting someone multiple times multiple ways shows them you are serious.

💰Expect two to three conversations before a higher ticket sale. Shoot for less, but expect more when you start out.

Bottom line: Act like you’re actually trying to get ahold of these people, rather than going through the motions, and you probably will.

Action Step:

Contact each lead multiple times in multiple ways.

Once you finish contacting your list, start back at the top again. This actually works for three reasons.

  1. Because they simply may not have seen your first series of messages.
  2. Even if they do see it, it may not have been a good moment to respond.
  3. Their circumstances may have changed.
Action Step:

After you’ve attempted to contact them multiple times, multiple ways, wait three to six months. Then do it again.

💰Once the amount of engaged leads that convert to costumers makes me more than it costs to pay a cold outreach rep, I teach someone else to do it for me.

💰You know you do well when you make at least three times the lifetime profit of a customer compared to what it costs you to get them.

7 enormous benefits to using cold outreach:

  1. You don’t need to create lots of content or ads.
  2. Your competition won’t know what you ‘re doing.
  3. It’s incredibly reliable.
  4. Fewer platform changes.
  5. Compliance is less painful.
  6. No spokesperson = sellable business.
  7. Hard to copy.

Run paid ads pt1
Advertising is the only casino where, with enough skill, you become the house.

The reach is guaranteed with paid ads.
So it’s a game of efficiency rather than reach.

The question ‘how well can you make them work?’ It’s a push and pull between how much you spend and how much they buy.

  1. First, I pick a platform that contains my ideal audience.
  2. Second, I use whatever targeting methods that exist within the platform to find them.
  3. Third, I craft my ad in a way that repels anyone else.
  4. Finally, I tell whoever’s left standing to take the next step.
    ⇒People overcomplicate it. But that’s it. That’s all we’re doing: narrowing down who sees our ad so we have the highest chance of getting the right type of people to respond.

Once we advertise profitably in a small puddle of an audience, we expand to a pond, then a lake, then an ocean. And as the audience gets bigger it does have more of the wrong people, but it has more of the right ones too.
⇒We want to make the audience as big as possible while still turning a profit.

4 problems to solve from paid ads:

  1. knowing where to advertise
  2. getting the right audience to see it
  3. making the best ad for them to see
  4. getting permission to contact them

Step 1: “But where do I advertise?” → Find a platform where these four things are true.
Action Steps: Start with one platform that meets the four requirements. And start watching, listening, or reading ads on the platform as a first step to learning how to make one.

Step 2: “But how to I get the right people to see it?” → Target them.
Targeting options include: age, income, gender, interests, time, location, etc.

The more filters you use, the more specific the list. The more specific the list, the more efficient your ads but the faster you will “burn” through it.
However, this specificity sets you up to get more wins early on.
The wins from smaller specific audiences now give you the money to advertise to larger and broader audiences later. This is how you scale.

Action Steps:

Bring all your lead lists together into one place. Separate them by past and previous customers, warm outreach, and cold outreach. Eventually, you’ll have a list of people that engaged with your paid ads by giving you contact information but didn’t buy. That’ll come in handy. Then, if the platform allows, use these lists in order of quality to create your lookalike audience. Then, if the platform also allows, add filters on top of your lookalike audience to target an even higher percentage of people to engage with your ad. If you are incapable of making a lookalike audience, then simply start by targeting interests.

Step 3: “But what should my ad say?” → Call Out + Value + Call to Action (CTA)”
want to consume the ads.
I want to see how businesses do three things.

  1. How they call out their ideal customers.
  2. How they present the value elements.
  3. How they give their audience a call to action.
    When I look at ads this way, it turns what was once an everyday nuisance (ads) into a continuous learning experience. Consuming ads on purpose, with the core elements in mind, makes me a better advertiser. And it will make you a better one too.

💭My advertising became 20x more effective when I focused the majority of my effort on the first five seconds.
⇒This “first impression” is the part of the ad I test the most.

Let’s use the three chunks to make an ad.

  1. Call Outs – I need to get them to notice my ad  
  2. Value – I need to get them interested in what I have to offer 
  3. Calls to Action – I need to tell them what to do next 

Call Out: People noticing your ad is the most important part of the ad…by a lot. The purpose of each second of the ad is to sell the next second of the ad.

A callout is whatever you do to get the attention of your audience.

  1. Labels: A word or set of words putting people into a group with features, traits, titles, places.
    →To be most effective, your ideal customers need to identify with the label.
    →People automatically identify with their local area.
  2. Yes-Questions: Questions where if people answer “yes, that’s me” they quality themselves for the offer.
  3. If-Then Statements: If they meet your conditions then you help them make a decision.
  4. Ridiculous Results: Bizarre, rare, or out of the ordinary stuff someone would want.

Callouts can also be noises or visuals in the environment.
Nonverbal callouts:

  1. Contrast: Any stuff that “sticks out” in the first few seconds. Color, sound, movement.
  2. Likeness: Think visually showing labels-features, traits, titles, places, and other descriptors that people identify with.
  3. The Scene: Think showing the Yes-Questions and If-Then Statements
Pro tip:

Here’s one of the highest ROI tips I can give you about making ads. Record ten or so new ads every week. But, record thirty or more first sentences or questions to begin the ad. Think five second clips. These are the call outs people consume before deciding to watch more. With thirty callouts and ten main ads you can make three hundred variations in a matter of hours. Once you know the best callout, you apply it to all ads.

Action Step:

I’m always impressed with the clever and innovative ways advertisers call out their prospects. So instead of muting or hitting “skip ad” look for the call outs. Become a student of the game. My goal is that for the rest of your life when you see an ad you turn up the volume.

💰The best ads make the benefits look as big as possible and the costs look as small as possible.

Why should I be interested in your thing?

8 key The What elements:

  1. Dream outcome vs Nightmare
  2. Perceived likelihood of achievement vs Risk
  3. Time delay vs Speed
  4. Effort and sacrifice vs Ease

The Who
Humans are primarily status driven. And the status of one human comes from how the other humans treat them. So if your product or service changes how other people treat your customer, which it does in some way, it pays to show how. And talking about the value elements from someone else’s perspective shows all the ways it’ll improve the status of your customer.
So we want to outline two groups of people. The first group is the people gaining status, your customers. The second group is the people giving it to them: Spouse, Kids, Parents, Extended Family, Colleagues, Bosses, Friends, Rivals, Competitors, etc.

The When
People often only think of how their decisions affect the here and now. But if we want to be extra compelling (and we do), we should also explain what their decisions led to in the past and what their decisions could lead to in the future. We do this by getting them to visualize through their own timeline (past–present–future). This way, we help them to see the consequences of their decision (or indecision) right now.

Pro Tip:

Get Unlimited Inspiration.
Many platforms have a database of ads past and present. As of this moment, if you search
“(PLATFORM) ad library” in a search engine, in a few clicks you will find them. If you see an ad that runs for a long time (a month or more), assume it’s profitable. Then, take notes on the callouts they use, how they illustrate the value elements, and their CTAs. Look for the words they use and how they demonstrate them.
Break down fifty or so ads and you will have a massive head start to creating winners of your own.

Action Steps:

Get as many advertising angles with your offer as you can with the What-Who-When framework.

What: Know the eight key things about your own product or service. How it fulfills each element of value, and how it helps avoid their opposites.

Who: Show how the eight key things about your product or service can change your prospect’s status. Then, show how the people they know give status to the prospect when they buy your thing or take status away if they don’t.

When: Get the prospect to see the consequences of buying and not buying through their past, present, and future. Especially through their change in status with people they know. This way, we help them to see the value of their decision (or indecision) at this very moment.”

CTA – Tell them what to do next
Tell them exactly what to do next. Spell it out:

  • click this button
  • call this number
  • reply with “yes”
  • go to this website
  • scan this QR code

Make CTAs quick and easy. Easy phone numbers, obvious buttons, simple websites.

Step 4. “How do I get their info?” → Get permission to contact them.
After they take the action, Get. Their. Contact. Information.

Action Step:

Build your first landing page.

Run Paid Ads Part 1 Conclusion
What has to happen for advertising to work? Well, we have to show our ad to the right people. So, we pick the right platform and target the people within that platform that have the highest percentage of our audience. Once we do that, we have to get them to notice our ad. Once they notice it, they have to consume it to get a reason to take action now rather than later. We do that using the value equation. And demonstrate it in the past, present and future, from their perspective and the perspectives of the people they know. And once they have a reason to take action, they have to have a way to give us permission to contact them. That action turns them into an engaged lead. And since those things got to happen, they slowly but surely became the three core elements of every ad I create:

  1. Callouts (for them to notice it) 
  2. Value Elements (to give them reason to do something) 
  3. Calls to action (to give them a way to do it)

Run paid ads pt2
Efficiency matters more than creativity.

Good enough is good enough.

“But how much do I spend on paid ads?”

  1. Track money
  2. Lose money
  3. Print money

You might lose, nine or ninety nine times in a row before you win big.
This is why paid advertising is a lot like a casino.
You’ll often lose in the beginning to learn the game. But, with enough skill, you eventually become the house.

💭I budget two times the cash I collect from a customer in 30 days(not LTGP) when testing new ads.

💰Spend as much as you can once you have a winning ad.

Instead of asking “how much money should I spend on an ad?” I ask “how many customers do I want?” or “how many customers can I handle?”

Since ads get less efficient as they scale, I usually pad the budget by 20%.

I reverse my daily ad budget from my lead-getting goal. Then, I commit to it. If the number terrifies you, the you’re doing it right. Trust the data. This is how you scale. And that’s why most people never do.

“How well am I doing?” – Cost & Returns; Efficiency Benchmarks
I measure paid ad efficiency by comparing the lifetime gross profit of a customer (LTGP) with the cost to acquire a customer (CAC). I express this ratio as LTGP to CAC.
I measure LTGP instead of “Lifetime Value” (LTV)

Lifetime Gross Profit is all the money a customer ever spends on your stuff minus all the money it takes to deliver it.

💰As soon as I get above 3 to 1 ratio (either through decreasing CAC or increasing LTGP), they take off. This is a pattern I personally observed, not a rule.

2 big levers to improving LTGP:CAC :

  1. Make CAC lower
    Get cheaper customers. We do this with more efficient ads following the steps we just outlined.
  2. Make LTGP higher
    Increase how much you make per customer. We do this with a better business model.

The cost to acquire customers, between competitors in the same industry, is much closer than you’d think. The difference between the winners and the losers is how much they make off each customer.
So how do you know if it’s your ads or your business model that needs work? I use the industry average CAC as my guide. 
Research your industry averages for the cost to acquire customers.
If your CAC is below 3x your industry average (good), focus on your business model (LTGP).
If your CAC is above 3x the average (bad), focus on your advertising (CAC).

“My ads aren’t profitable, how do I fix it?” → Client financed acquisition
The things you can sell or upsell are unlimited.

Bottom Line: 💰Figure out a way to get your customers to pay you back in the first thirty days so you can recycle your cash to get more customers.

Personal lessons from paid ads:

  • Don’t confuse sales problem with advertising problem.
  • Your best free content can make the best paid ads.
  • If you say you suck at something, you will probably suck at it.

Example paid ads checklist:

  • who: yourself
  • what: your offer
  • where: any platform/audience you can buy access to
  • to whom: target audience or lookalike audience
  • when: everyday, 7 days per week
  • how: call out + 3Ws + CTA
  • how much: learning budget, then reverse to sales goal
  • how many: 30+ call outs x 10 ads
  • how long: as long as it takes

Conclusion
💰Paid ads are the fastest way to scale how many leads you get.

Paid ads is the last of the core 4 ways a single person can let other people know about their stuff.

Core four on steroids: more better new

  1. you reach out to people who know you.
  2. you start making free content.
  3. you start reaching out to people who don’t know you.
  4. start running paid ads.

more, better, new:

  1. you can do more of what you’re currently doing.
  2. you can do what you’re currently doing better.
  3. you can do it somewhere new.

Could you advertise more?
Could you advertise better?
Could you advertise somewhere new?

The rule of 100: You advertise your stuff by doing 100 primary actions every day, for one hundred days in a row. Commit to the rule of 100 and you will never go hungry again.

  • 100 reach outs per day
  • 100 minutes per day making content
  • 100 cold reach outs per day
  • 100 minutes per day making paid ads

What will get me the most leads for the least amount of work?

Action Step: Exhaust more better first. Once you can’t do anymore, any better (meaning the returns are lower than putting that same effort into a new platform) try new. Use this rough order: new placement, new platform, new core four activity. Get it going. Measure how you do. And scale up from there using more–better. Then, rinse and repeat.

‘More Better New’ Summary
First, you do way more of the advertising that works until it “breaks.”
Then, the next drop off point becomes obvious. Then you keep that level of advertising up while you go back, fix the constraint, and make it better.

Only once you’ve exhausted more–better do the real returns come from doing new. First, go with new ad placements on a platform you know. Second, go with placements you know on a new platform. Then, once you get the hang of that new platform, use new placements on it. Once you exhaust that, you can add a new core four activity on top of what you currently do.

Conclusion
Advertising is the process of making known.

💰A business that posts free content and runs paid ads will get more out of their ads and their content than a business that does only one or the other.

  • content
  • warm outreach
  • paid ads
  • cold reach out
  • affiliates
    ⇒💰If you master one, you will be able to feed yourself for the rest of your life.

Get lead getters
customer referrals/word of mouth
The best advertising is a happy customer.

💭”Any fool can sell something for less.” — Rory Sutherland

Action Step:

Increase the quality of the prospect, and you’ll increase the quality of the product. Figure out what your most successful customers have in common. Use those similarities to target a new audience that has the greatest chance of getting the most value. Then, sell only people who meet those new criteria. Set yourself up to build more goodwill. More goodwill means more referrals.

Dream Outcome → Set Better Expectations: The fastest, easiest, and cheapest way to make your product remarkable – make it better than they expect. And that’s easier than you might think because you set the expectations.

Action Step:

Slowly lower the promises you make when making offers. Keep lowering them until your close rates lower. At that point, stop. This maximizes how many customers you get and the goodwill you build with them. Maximized customers and more goodwill means more referrals.

Get more people better results:

  1. Step #1: Survey customers to find the ones who got the best results.
  2. Step #2: Interview them to find out what they did differently.
  3. Step #3: Look at the actions they had in common.
  4. Step #4: Force new customers to repeat the actions that got the best results.
  5. Step #5: Measure the improvement in average customer results (speed and outcome)
  6. Step #6: Match the conditions of your guarantee to the actions that get the best results to get more people to do them.
Action Steps:

Figure out what the best people did. Then get everyone to do it. Make your guarantees around the actions that create the most success. More success. More goodwill. More referrals.

Five ways I make wins happen faster in the real world: 

  1. If I have seven small things to deliver, I deliver them at shorter intervals rather than all at once.  
  2. Updates are wins. If it’s a bigger project, I share progress updates as frequently as possible. You can never give someone too much good news. And regular updates, progress or not, is better than leaving your customers hanging. 
  3. Customers form their lasting impression of a business within the first forty-eight hours after they buy. Force a good impression. Force as many wins as you can in that window. Set many expectations. Meet many expectations. Repeat.  
  4. They should always know the next time they’ll hear from you. I got a slick saying from a public CEO friend of mine – BAMFAM: Book-A-Meeting-From-A-Meeting. Again, never leave a customer in no man’s land. They should always know what happens…next.  
  5. Never expect customers to forgive you. Ever. So act like it. For example, you can deliver early, but never late. I add fifty percent to my timelines so I always deliver early. That makes “on time” for me early for them. 
Action step:

Break down outcomes into the smallest possible increment. Communicate as often as reasonable (even if there is no progress, update them). Set timelines with breathing room. Deliver early. More customer wins means more goodwill. And more goodwill means more referrals.

Action Steps:

Keep making your stuff better. Survey. Make changes. Implement. Measure. Repeat. I run this process every month. Set this as a recurring monthly process. A product that takes less effort and fewer sacrifices means more goodwill. And more goodwill means more referrals.

Action Steps:

Treat every customer like it’s the first time you’ve sold them. Make sure your next offer is more compelling than your first. Remind them to buy more after each big win. More things to buy means more opportunities to add even more value. More value means more goodwill. And more goodwill means, you guessed it, more referrals.

How would you treat this customer?
What would you do to make their experience so valuable they would send all their friends?
What kind of results would they need to get?
What would their onboarding be?
What type of customer would you pick?
Think about it. Write it out. Your business depends on it. Then, do it.

💰Asking for referrals only works when you treat it like an offer.

7 ways to ask for referrals:

  1. One-sided referral benefit
  2. Two-sided referral benefit
  3. Ask for a referral right when they buy
  4. Add referrals as a negotiation chip
  5. Referral events
  6. Ongoing referral programs
  7. Unlockable referral bonuses

Give everyone a gift card for one-third the cost of their program. Tell them they can give it to a friend of theirs if they sign up with them. Give the gift card an expiration date within seven to fourteen days from the date you give it to them→it’ll force them to use it. This gives the referrer status when they give it to their friend. Rather than saying “hey join my program for $2000 off” they say, “I got this gift card for $2000. Do you want it? I don’t want to waste it.” It’s seen as a much bigger deal for them and you.

You can still use the three-way introduction with this tactic. Then text a picture of the gift card. Bonus points if you write the friend’s name on it before texting the picture. It makes it feel personalized and gives you a legitimate reason for asking for their friend’s name (wink).

PS – You can also sell the gift cards at ninety percent off as purchasable gifts (only for friends of customers). The referrer looks like they spent a lot of money, and you get paid to get new customers. I can hardly think of a better way to make money. Again, the only limit is your creativity.

Conclusion
💰Give more than you get and you’ll never go hungry again.

Always remind myself: I am compensated tomorrow for the value I provide today.

Employees

💭”If you want to go fast, go alone. If you want to go far, go together.” — African Proverb

��You get rich from what you make. You become wealthy from what you own.

Replace yourself as soon as you can. Then, you can can make yourself useful somewhere else.

If you want it done right, get someone to spend all their time doing it.
If I can do it someone else can do it better.
Everyone is replaceable, especially me.

3Ds mental model:

  1. Document: make a checklist
  2. Demonstrate: you do it in front of them
  3. Duplicate: they do it in front of you

Some helpful notes on training:

  • A helpful way to look at this training style is: If they get it wrong or get confused then we got it wrong or made it confusing. If we have to explain what a step means then the step is too complicated. Or, more likely, we tried to put multiple steps into one. 
  • If they only appear to “get it” after a longish explanation or multiple demonstrations then, again, we’ve got some work to do. Business owners that ignore this run into chronic training problems. And, word to the wise, you can probably force an inferior checklist to work, but this turns into a nightmare when somebody else takes over your training for you. 
  • There is a difference between competence and performance. In other words, they can know exactly what to do and not be that good at it yet. If that’s the case, then your instructions are fine and they just need practice. Using an analogy from the fitness world–think “slow then smooth then fast.” You don’t need to change anything, they just need more reps.
  • Focus on your employee’s ability to follow directions more than whether they get the right result. This is super important because if you train your employees to follow directions then… they will follow directions. And, if they follow directions and get the wrong result… then you know it’s the directions. That’s good. You have a lot more control over that. 
  • Every time they do a step successfully–let them know they did it right. And if they respond to praise, praise them! And if they goof, that’s OK too. That’s what training is for. Don’t take over for them when they mess up–simply pause, take a step back, and let them try it again. Fast feedback cycles to get people to learn faster. 
  • If they follow your directions exactly and get the wrong result–still praise them for following the directions. Praise them, then make the corrections to your checklist on the spot. 
  • Avoid punishment or penalties of any type for doing stuff wrong during training. As a rule of thumb–reward the good stuff you want them to do more of and they’ll do more of it. Learning a new skill is punishing enough, we don’t need to add it.
  • It’s hard to fix multiple things when you’ve never done something before. Give feedback one step at a time. Give one piece of feedback at a time. Practice until they get it right. Then, move to the next step. 
  • Whenever there is a major dip from normal performance, retrain the team. They stopped doing an important step in the process (often because they didn’t know it was important). Once you figure out the step, reward people for following it going forward.

How to calculate returns from employees:

  • Total Payroll / Total Engaged Leads = Cost per engaged lead. 
    ○   Ex: $100,000 / 1000 leads = $100 per engaged lead 
  • If one out of ten of the engaged leads become customers then our CAC is $1000 
    ○   ($100 per engaged lead) x (10 engaged leads per customer) = $1000 CAC 
  • If each customer has an LTGP of $4000 then you have an LTGP : CAC of 4:1 
    ○   ($4000 LTGP) / ($1000 CAC) = 4:1 

If your CAC is more than 3x industry average then you have a sales problem or an advertising problem. We diagnose this with a single question:
Do my engaged leads have the problem I solve and the money to spend?

  • If no, then they’re not qualified–that’s an advertising problem. 
  • If yes, then they’re qualified and: 
    They’re buying but you don’t have enough of them–advertising problem. 
    They’re qualified but not buying–sales problem.

You just need to figure out all your costs of getting a customer put together.
As long as they’re at least one-third of the profit you make over the lifetime, you’re in good shape.
Conclusion
Anyone can be taught to do “ground level” jobs for any business-advertising or otherwise.

☕So who you pick is not as important as how you train the ones you do.

It doesn’t take a genius to advertise.

Agencies

Action Step:

As soon as you have enough money for a good agency, start poking around.

🔑I hire one “good enough” agency to learn the ropes of a new platform. Then, I hire a more elite agency to learn how to maximize it- and I cannot recommend this strategy enough.

If you are upfront about your intentions and the agency agrees, you get the best of both worlds.

Action Step:

When you find an agency to work with (next step) set terms with them and deadlines for yourself.

What to look for in a good agency:

  1. Somebody I know got good results working with them. If you only know about an agency from their paid ads or cold outreach… they probably aren’t as good as the ones who rely solely on word of mouth (and the best ones do). 
  2. Prominent companies got good results working with them. I may not know the companies personally, but if I recognize them, it’s a good sign. 
  3. A waiting list. When demand for a service exceeds the supply, they are probably pretty good. 
  4. A clear sales process that makes a point to set realistic expectations. No funny business.  
  5. No short term hacks. They keep the talk on long term strategy. They also give clear timelines for setup, scaling, and results. 
  6. They tell me exactly what they need from me, when they need it, and how they use it. 
  7. They suggest a regular schedule of meetings and offer several ways to update me on their progress. 
  8. They give updates in simple terms and have clear ways to track so I know how costs compare with results.
  9. They make a good offer: 
    Dream outcome: is what they promise what I want? 
    Perceived likelihood of achievement: how many other people like me have they gotten there? 
    Time delay: how long will it take? 
    Effort and sacrifice: what do they require me to do when working with them? What will I have to give up? Can I stick with those for a long time? 
  10. They are expensive. All good agencies are expensive… but not all expensive agencies are good. So talk with as many as it takes. And use this list as a guide to find the good ones. 
    …if an agency checks those boxes, they’re worth considering.
Action step:

Even if an agency agrees to your terms, talk with a few more before you make a decision.

Conclusion:
It cost me eight hours and $6000 to learn a skill that’s made me millions. Does that seem worth it to you? It better.

Next Steps:

  1. Decide if using an agency makes sense for you right now. 
  2. Talk to a lot of agencies to get a feel for the market. Don’t be cheap.  
  3. Use the agreement framework I outlined. 
  4. Set a clear deadline to force you (and your team) to learn the skills. 
  5. Use both teams until yours beats theirs regularly. 
  6. Switch to discounted consulting until you feel like you’re teaching them instead of them teaching you…then cut ‘em loose.

affiliates and partners

How to build an affiliate army in 6 steps:

  1. Find your ideal affiliates

  2. Make them an offer

  3. Qualify them

  4. Figure out what to pay them

  5. Get them advertising

  6. Keep them advertising

  7. Find your ideal affiliates
    The idea affiliate has a business with a warm audience full of people like your customers. Start making a list of those businesses.
    If none of them come to mind, answer these questions about your best customers:

  • What do they buy? -> Who provides that stuff
  • Where do they go? –> What businesses are in those surrounding areas?
  • What do they like to do? –> Who provides those services?
  • What types of businesses do they work for?
  • What kinds of jobs do they have?
  • Who’s got my leads?

Categories:

  • software
  • products
  • equipment
  • services
  • groups they belong to
  • events they attend
Action Step:

Make sheet with each of these questions and categories. Search online to fill it in. If you struggle, call up your customers and ask them!

  1. Make them an offer
    Most affiliate money making offers show value like this:
    ” Make more money from your current customers and get more leads than your current offer (dream outcome)…with a high chance of working since your customers already want the product (perceived likelihood of achievement)…without needing to build, deliver, or provide customer support for the product yourself (effort and sacrifice)…so you can start selling it tomorrow (time delay). “

Action Step: Explore the different value elements and fill in the blanks. I won’t go deeper on this since we’ve covered it already. You simply need to make affiliates the customer you’re advertising to.

  1. Qualify them
    Make them a customer, and make them an expert.

Make them a customer: The more money an affiliate invests in your product, the more money they make.

Make them an expert: I recommend charging 10~20% for the training and onboarding of what the average active affiliate makes in the first twelve months.

Action Step: Make your affiliates customers, experts, or both (my favorite way). If you don’t get enough people to start, lower the commitment. If you don’t get enough people to follow through, raise it.

  1. Figure out what to pay them
    I pay affiliates for two basic things:
  2. new customers
  3. repeat customers

I suggest paying affiliates based on your maximum allowable cost to acquire a customer(CAC). Choose your maximum allowable CAC.

With a $40 maximum allowable CAC, a three-tier payout structure might look something like this:  

  • Tier 1: 25% CAC = $10 Payout – Anyone who agrees to my initial terms qualifies. 
    Example: They sign up and buy products or a certification. 
  • Tier 2: 50% CAC = $20 Payout  – Once they activate. 
    Example: actually finishing the certification they bought, doing a specific number of posts and outreach, doing a launch, etc. 
    This gives them a nice reward (twice the pay) for activating. 
  • Tier 3: 100% CAC = $40 Payout – Once they sustain a level of performance. 
    Example: They maintain five customers per month on subscription.
Action step:

Figure out what you want to pay your affiliates for so that you can plan out how much to pay them, with what, and how often.

  1. Get Them Advertising – Launch
    Like referrers, how much value affiliates get from you determines how much they advertise your stuff. So, treat them like customers. Give them something good, fast.
Action Step:

Start whispering every four to six weeks until you get sixty days out. Then whisper every two to three weeks until you get thirty days out. Then, start teasing…

Tease: Think “Elements Of Value.” It’s time to start satisfying all the curiosity you created during the whisper phase. Reveal your product, make the date of the launch public, and start showing the elements of value.

Action Step:

Start teasing once per week until fourteen days out. Then tease twice per week until three days out. Three days out, it’s time to shout from the rooftops.

Action Step:

Shout at least twice a day starting three days out. On the day of, start shouting every few hours until two hours out. Then shout every thirty minutes until you launch the product.

Action Step:

Get your affiliates to launch. Set them up with everything they need to do the whisper-tease-shout right. They do the advertising. You get the engaged leads. Everyone gets paid.

Pro Tip:

Movie Releases
The best real world example of whisper-tease-shout is movie releases. They do five second trailers a year out. Then a thirty second ninety days out. Then longer trailers as the date approaches. They drive curiosity, then interest,
then action.

  1. Keep them advertising
    They give away your lead magnet for free, which makes their core offer more valuable for no extra cost. Then, you upsell your core offer and every offer thereafter.

The best lead magnets give away a free trial or sample of your thing, reveal a problem, or offer a single step of a multi-step solution.

  • samples and trials
  • reveal a problem
  • one step in a multi-step process
  • what i did

💰Make the offer so good they’d feel stupid saying no.

Action Step:

Integrate with your affiliates by choosing whether you want them to give your lead magnet away, to sell your lead magnet, or to sell your core offer directly.

There are two ways to create a compounding business. You can find more people that never stop buying your stuff or you can find more people who never stop selling it for you. Referrals are the former. Affiliates are the latter.

Action Steps:

Advertise your affiliate offer until you get ten to twenty affiliates. Get results with those affiliates and use their feedback to work the kinks out of your offer, terms, launches, and integration strategy. Then, scale like crazy by turning their results into your first batch of affiliate lead magnets.

Section 5 conclusion Get Lead Getters
“The last skill you ever need to learn is how to get other people to do everything you need for you.”

The longer you play the game, the better you will get, and the more success you will have. Just don’t quit or switch methods after seeing a few losses. It’s normal to lose in the beginning.
In fact, I expect to crack a new lead source in three to six months.

Section 5: Get Started
Test until you find something that works. Take massive action. Stay focused. Double down on it until it breaks. Then test until you find the next thing that works, and double down on that.
Taking these leaps are the only way to unlock the business you want and the life that comes with it.

💰Your speed to making big money depends on how fast you learn the skills to making big money.

🔑Never let effort be the reason anything didn’t work.

💭”Success comes down to doing the obvious thing for an uncommonly thing for an uncommonly long time without convincing yourself you’re smarter than you are.” — Neil Strauss

🔑Most people stop too soon. We don’t do enough.

Most people dramatically underestimate the volume it takes to make advertising work.

Most people do not get that advertising is an inputs and outputs game.

If you want to take your advertising to the next level, work until the job is done.

3 habits that best served me in my life:

  1. Waking up early(4~5am) – also means sleep early.
  2. Getting right to work – No rituals, no routines. I drink coffee and get to work.
  3. No meetings until noon – No interruptions. Nothing. Fully focused work time.

💭”Do more than they do, and you will have more than they have.”

One Page Advertising Checklist

  1. Pick the type of engaged lead to get: customers, affiliates, employees, agencies
  2. Pick rules of 100 or open to goal: commit to your daily advertising actions
  3. Fill out the advertising checklist for that daily action
  4. Do this daily action until you have enough money to afford paying someone else to do it
  5. When you do, go back to step 1. Make employees your new target lead type.

the roadmap
💭”A leader must aim high, see big, judge widely, thus setting himself apart from the ordinary people who debate in narrow confines.” — Charles de Gaulle, French president during WW II

These levels will help you identify where you are on the advertising totem pole so you know what to to get to the next level:

  1. Level 1: Your friends know about the stuff you sell.
    Primary Action: Warm outreach
  2. Level 2: You consistently let everyone know about the stuff you sell.
    Primary Action: Do as much warm outreach and post as much content as you can consistently.
  3. Level 3: You get employees to help you do more advertising.
    Primary Action: You hire people to advertise profitably on your behalf.
  4. Level 4: Your product is good enough to get consistent referrals.
    Primary Action: Focus on your product until you get consistent referrals then go back to scaling your advertising with a bigger team. This is where most people mess up. They let their product slip and never recover.
  5. Level 5: You advertise in more places in more ways with more people.
    Primary Action: Advertise profitably using at least two methods on multiple platforms.
  6. Level 6: You hire killers.
    Primary Action: Get battle-hardened executives and department heads to take over new advertising activities and channels.
  7. Level 7: I’ll come back let you know once I cross a billion.
    Primary Action: Wait.
Pro Tip:

Hire Experience, Not Potential.
I tried cold reach outs twice before it worked the third time. The main difference: the person I hired to run it. First, I tried someone external with experience – that failed. Then I tried internally with no experience – that failed. Then finally, I hired internally with experience – that worked. Since it’s a people heavy, operationally complex machine, the person you hire to manage the team matters a lot. Pick experience.
They should know more than you do. If you’re not learning from them in the interview, you’ve got the wrong person.

The more you advertise, the more people find out about the stuff you sell. The more people who know about the stuff you sell, the more people will buy it.

a decade in a page
💭”Simplicity is the ultimate sophistication.” — Leonardo Da Vinci

💎You cannot lose if you do not quit.