Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS]

Last updated: Jun 18, 2023

The video is about how Alex Hormozi turned $1,036 into $112 million in revenue in 44 months using four unique acquisition frameworks, and he shares tips on how to generate leads and increase traffic.

This video by Alex Hormozi was published on May 17, 2022.
Video length: 01:27:45.

In this video, Alex Hormozi shares his process of turning $1,036 into $112 million in revenue over 44 months using four unique acquisition frameworks.

He also provides tips on how to generate leads and increase traffic, including running Facebook lead ads, connecting them to Google Sheets via Zapier, targeting specific audiences, and offering something for free in exchange for their phone number.

Hormozi also shares his personal journey of starting and scaling multiple businesses, and how his frameworks have created over a thousand success stories and 71 millionaires.

  • Four steps to solve lead gen problem in less than 15 minutes: Google how to run a Facebook lead ad, connect Facebook lead ad to Google Sheets via Zapier, target audience by giving away something free, create a lookalike audience on Facebook, give something for free in exchange for their phone number.
  • Third-party lead gen companies charge five times more for the same process.
  • Co-founder of Acquisition.com started with $1,036 and turned it into $112 million in revenue in 44 months, scaled from zero to six locations in under three years, created over a thousand success stories and 71 millionaires using the frameworks.
  • Four unique acquisition frameworks used to double down and scale: The Acquisition Flywheel, The Acquisition Pyramid, The Acquisition Funnel, The Acquisition Engine.
  • Six traffic sources that everyone has access to: Facebook ads, Google AdWords, YouTube ads, influencer marketing, content marketing.
  • Two ways to grow a business: get more customers or make customers worth more, four frameworks: get more customers, make more money, traffic, and money, math: how to acquire customers at a profit, offer: how to make offers so good that strangers will raise their hands, money: how to maximize back-end LTV to inform the front-end.
  • Process map for acquiring customers at a profit, definition of cost required to acquire a customer (CAC) and cost of goods sold (COGS), gross profit and payback period, cash conversion cycle and 30-day cash.
  • How to make offers so good that strangers will raise their hands, importance of a clear and compelling offer, how to create an irresistible offer, examples of successful offers, how to test and optimize offers.
  • Importance of understanding your target audience, how to use social media to drive traffic, how to use content marketing to drive traffic, how to use paid advertising to drive traffic, how to use partnerships and affiliates to drive traffic.
  • Generate more cash in the first 30 days of running an advertisement than it costs to acquire two customers and the cost to fulfill both of them times two, if you can make more than that in the first 30 days off of one customer, you can grow unlimited, positive cash flow allows smaller players who are not backed to outspend everyone.
  • The starting point of any conversation to initiate a transaction with a customer, allows you to sell in a vacuum so you don't have price shopping or any of that stuff, forces customers to make a values-based decision instead of a price-based decision, decommoditizes the offer and increases click-through rates, opt-ins, and sales.
  • Start with a hook that grabs attention and creates curiosity, offer a lead magnet that provides value and solves a problem, use a tripwire that is a low-priced, high-value offer that converts leads into customers, offer a core product that solves a major problem and provides a transformation, provide upsells and downsells that offer additional value and increase revenue.
  • Use paid traffic sources like Facebook, Google, and YouTube to drive targeted traffic to your funnel, use organic traffic sources like SEO, content marketing, and social media to drive free traffic to your funnel, use affiliate marketing to leverage other people's audiences and drive traffic to your funnel, use influencer marketing to partner with influencers and drive traffic to your funnel, use email marketing to build a list of subscribers and drive traffic to your funnel.

I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] - YouTube

Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 001

Lead Generation

  • Four steps to solve lead gen problem in less than 15 minutes:
    • Google how to run a Facebook lead ad
    • Google how to connect Facebook lead ad to Google Sheets via Zapier
    • Target your audience by giving away something free
    • Create a lookalike audience on Facebook
    • Give something for free in exchange for their phone number
  • Third-party lead gen companies charge five times more for the same process
  • Return on advertising: 36-1 lifetime return on advertising after spending 3.1 million in advertising
  • Google how to run a Facebook lead ad
  • Google how to connect Facebook lead ad to Google Sheets via Zapier
  • Target your audience by giving away something free
  • Create a lookalike audience on Facebook
  • Give something for free in exchange for their phone number
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 002

Success Stories

  • Co-founder of Acquisition.com
  • Started with $1,036 and turned it into $112 million in revenue in 44 months
  • Scaled from zero to six locations in under three years
  • Started Gym Launch and went from zero to 2.4 million a month in 18 months
  • Created Prestige Labs and went from zero to 1.7 million in six months
  • Acquired Allen and went from zero to 1.4 million in six months
  • Created over a thousand success stories and 71 millionaires using the frameworks
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 003

Acquisition Frameworks

  • Four unique acquisition frameworks used to double down and scale
  • Framework 1: The Acquisition Flywheel
  • Framework 2: The Acquisition Pyramid
  • Framework 3: The Acquisition Funnel
  • Framework 4: The Acquisition Engine
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 004

I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] - YouTube

Tips for Traffic Generation

  • Use Facebook ads to generate traffic
  • Use Google AdWords to generate traffic
  • Use YouTube ads to generate traffic
  • Use influencer marketing to generate traffic
  • Use content marketing to generate traffic
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 006

Groundwork

  • Two ways to grow a business: get more customers or make customers worth more.
  • Four frameworks: get more customers, make more money, traffic, and money.
  • Math: how to acquire customers at a profit.
  • Offer: how to make offers so good that strangers will raise their hands.
  • Traffic: six traffic sources that everyone has access to.
  • Money: how to maximize back-end LTV to inform the front-end.
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 007

Client Finance Acquisition

  • Process map for acquiring customers at a profit.
  • Definition of cost required to acquire a customer (CAC) and cost of goods sold (COGS).
  • Gross profit and payback period.
  • Cash conversion cycle and 30-day cash.
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 008

Offer

  • How to make offers so good that strangers will raise their hands.
  • Importance of a clear and compelling offer.
  • How to create an irresistible offer.
  • Examples of successful offers.
  • How to test and optimize offers.
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 009

Traffic

  • Six traffic sources that everyone has access to.
  • Importance of understanding your target audience.
  • How to use social media to drive traffic.
  • How to use content marketing to drive traffic.
  • How to use paid advertising to drive traffic.
  • How to use partnerships and affiliates to drive traffic.
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 011

The Math: Client Finance Acquisition

  • Generate more cash in the first 30 days of running an advertisement than it costs to acquire two customers and the cost to fulfill both of them times two.
  • If you can make more than that in the first 30 days off of one customer, you can grow unlimited.
  • Positive cash flow allows smaller players who are not backed to outspend everyone.
  • Borrow $100 from a credit card to acquire two customers at $50 each.
  • Each customer spends $300, so you make $600.
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 012

The Offer: How to Make an Offer So Good People Feel Stupid Saying No

  • The starting point of any conversation to initiate a transaction with a customer.
  • Allows you to sell in a vacuum so you don't have price shopping or any of that stuff.
  • Forces customers to make a values-based decision instead of a price-based decision.
  • Decommoditizes the offer and increases click-through rates, opt-ins, and sales.
  • More leads, more sales, and higher prices.
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 013

The Funnel: How to Build a High-Converting Funnel

  • Start with a hook that grabs attention and creates curiosity.
  • Offer a lead magnet that provides value and solves a problem.
  • Use a tripwire that is a low-priced, high-value offer that converts leads into customers.
  • Offer a core product that solves a major problem and provides a transformation.
  • Provide upsells and downsells that offer additional value and increase revenue.
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 014

The Traffic: How to Drive Traffic to Your Funnel

  • Use paid traffic sources like Facebook, Google, and YouTube to drive targeted traffic to your funnel.
  • Use organic traffic sources like SEO, content marketing, and social media to drive free traffic to your funnel.
  • Use affiliate marketing to leverage other people's audiences and drive traffic to your funnel.
  • Use influencer marketing to partner with influencers and drive traffic to your funnel.
  • Use email marketing to build a list of subscribers and drive traffic to your funnel.
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 016

Changing the Offer

  • Switching from a $99/month boot camp to a free six-week challenge with a $600 down payment and a money-back guarantee for losing 20 pounds.
  • Selling $300 worth of supplements 48 hours after purchase and offering credit towards a membership for winning the challenge.
  • Cost of acquisition dropped by a tenth and getting 30 to one up front before membership dues.
  • Opening six gyms in three years as a 23-year-old with payroll staffed and paid for six weeks before EFT kicked in.
  • Changing the offer to generate more cash flow up front and opening a gym with a full lease before the first client showed up.
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 017

Improving the Offer

  • Seven things to look at when improving the offer: promotion, core offer, bonuses, scarcity, urgency, guarantee, and magic naming formula.
  • Starting with a free offer to create flow, monetize the flow, and add friction.
  • Free offers convert five to ten times any other type of offer.
  • Seven offer structures to turn something free into something paid.
  • Reskinning the same offer over and over again for evergreen lead generation.
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 018

B2B Agency Example

  • Charging agencies once and only paying after generating leads and booking appointments.
  • Getting 11 to 1 returns before the retainer and making $112,000 up front with a 11.2 to one return.
  • Improving the response rate, percentage of people who responded, and closing percentage by changing the offer.
  • Quadrupling the price to $4,000 up front and getting paid two days later when the first person showed up.
  • Making $5,000 up front off a $10,000 announcement to $112,000 up front with an 11.2 to one return.
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 019

Conclusion

  • Changing the offer can significantly improve cash flow and returns.
  • Improving the offer involves looking at promotion, core offer, bonuses, scarcity, urgency, guarantee, and magic naming formula.
  • Starting with a free offer can create flow and lead to evergreen lead generation.
  • Seven offer structures can turn something free into something paid.
  • Reskinning the same offer over and over again can lead to evergreen lead generation.
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 021

Four Unique Acquisition Frameworks

  • Start every business with a free offer.
  • Discounts: display them in four different ways to keep promotions fresh.
  • Premium offers: charge more than you think you should for high-end products.
  • Main thing: focus on the variables that increase value and decrease risk.
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 022

Variables to Increase Value and Decrease Risk

  • Dream outcome: focus on what people value and want more of.
  • Perceived likelihood of achievement: decrease risk by increasing certainty.
  • Time delay: provide immediate value and shrink the time horizon to increase value.
  • Effort and sacrifice: eliminate as much effort and sacrifice as possible for customers.
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 023

Lead Generation and Traffic Increase Tips

  • Use social media platforms to generate leads and increase traffic.
  • Use paid advertising to target specific audiences.
  • Use email marketing to nurture leads and build relationships.
  • Use content marketing to provide value and establish authority.
  • Use search engine optimization to improve website visibility and attract organic traffic.
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 024

Scaling and Growth Strategies

  • Focus on increasing customer lifetime value.
  • Use data and analytics to make informed decisions.
  • Invest in team building and leadership development.
  • Continuously innovate and improve products and services.
  • Expand into new markets and diversify revenue streams.
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 026

Four Variables to Make the Core Thing More Valuable

  • Manipulate four variables to make the core thing more valuable: perceived likelihood of achievement, time, effort, and enjoyment.
  • Offer a free or discount version of the product.
  • Provide bonuses as part of the free thing and then upsell the core thing.
  • Stack bonuses to make the core offering more valuable.
  • Use bonuses to get around the whole discount thing.
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 027

Scarcity and Urgency

  • Use scarcity ethically by having a limited supply of bonuses.
  • Re-wrap bonuses in different ways to change and make the same thing different.
  • Use urgency as a function of time to create scarcity.
  • Use scarcity and urgency to create a sense of urgency in customers.
  • Use scarcity and urgency to get customers to make a decision.
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 028

Promotion

  • Use promotion to get people interested in the product.
  • Use social media to promote the product.
  • Use email marketing to promote the product.
  • Use paid advertising to promote the product.
  • Use content marketing to promote the product.
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 029

Re-skinning and Repurposing

  • Re-skin and repurpose bonuses to make the same thing different.
  • Use different headlines and graphics to make the same thing different.
  • Use different formats to make the same thing different.
  • Use different delivery methods to make the same thing different.
  • Re-skinning and repurposing allows for more limited bonuses and creates scarcity.
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 031

Unique Acquisition Frameworks

  • There are four unique acquisition frameworks that Alex Hormozi uses to generate leads and increase traffic.
  • The first framework is cohort-based urgency, where there is a rolling cohort that can happen, and clients are urged to sign up before the next group starts.
  • The second framework is name-based urgency, where the same offer is reskinned and given a different name to create false urgency.
  • The third framework is exploding opportunity, where anything in the marketplace is shifting, and there is a way to get in on it before others do.
  • The fourth framework is the magic naming formula, where the same offer is renamed and reskinned to keep the marketing fresh.
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 032

Cohort-Based Urgency

  • Cohort-based urgency is the most used framework by Alex Hormozi.
  • It involves creating a rolling cohort that can happen, and clients are urged to sign up before the next group starts.
  • This framework creates urgency and encourages clients to take action.
  • It is essential to sell the cohort-based urgency to clients to make it work.
  • The framework is already being used by many businesses, but they are not selling it.
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 033

Name-Based Urgency

  • Name-based urgency involves reskinning the same offer and giving it a different name to create false urgency.
  • The promotion can still have the same price points, but it is technically over.
  • This framework creates urgency and scarcity to the advantage of the business.
  • It is essential to use urgency and scarcity to encourage clients to take action.
  • The promotion of pricing and bonuses should be exploding to make it work.
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 034

Exploding Opportunity

  • Exploding opportunity involves creating urgency by making clients feel that they will get a disproportionate amount of the gains if they sign up now.
  • The framework is based on arbitrage, where there is a way to get in on something before others do.
  • It is essential to think of ways to make the product into an exploding opportunity to create more urgency to take action.
  • The framework is effective when there is a shift or change in the marketplace.
  • The framework is based on urgency and scarcity to encourage clients to take action.
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 036

Magic Naming Formula

  • The magic naming formula involves reskinning the same offer and giving it a different name to keep the marketing fresh.
  • The framework is especially important in local markets.
  • The same offer can be renamed and reskinned to keep the marketing fresh without changing the operational structure of the business.
  • The framework is effective in creating urgency and encouraging clients to take action.
  • The framework is based on the magic naming formula, where the same offer is renamed and reskinned to keep the marketing fresh.
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 037

Magnetic Reason and Avatar

  • Having a magnetic reason is important to create a reason why for your offer.
  • It can be anything like a birthday, anniversary, or any special occasion.
  • Think like a fraternity party planner to create a reason why.
  • Announcing the avatar is important to identify the target audience.
  • It helps to create a message that resonates with the audience.
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 038

Paid Media and Earned Media

  • Paid media, earned media, phone media, outbound, affiliates, and referrals are the six ways to get more customers.
  • Spending $100 a day on lead ads is a good way to start with paid media.
  • YouTube, Facebook, Instagram, influencer shoutouts, and podcast ads are examples of paid media.
  • Branded search is a hack that can give the highest return on advertising.
  • Limited free offers are a good way to make money while giving something away for free.
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 039

Advanced Lead Generation

  • Having a promotion and an upfront cash offer is important to liquidate the acquisition costs.
  • Upsell and downsell are important to increase the revenue.
  • Feeding the customers in a funnel is important to keep them engaged.
  • Following the same process repeatedly is important to get consistent results.
  • Free cash offers like limited free and free trial are a good way to attract customers.
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 041

Scaling and Optimization

  • Scaling and optimization are important to grow the business.
  • Scaling means increasing the revenue while optimization means reducing the cost.
  • Testing and tracking are important to find out what works and what doesn't.
  • Using data to make decisions is important to avoid guesswork.
  • Having a team and delegating tasks is important to focus on the core competencies.
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 042

Four Unique Acquisition Frameworks

  • Framework 1: Limited Free - offer an inferior product for free and then upsell the primary offer.
  • Framework 2: Second One Free with Deposit - market something for free and have the program free or rebated if the customer gets the outcome or does the habits.
  • Framework 3: Giveaways - have a first place prize as the core offer and a second place prize as an acceptable discount.
  • Framework 4: Free with Prepay - sell bundled services and offer buy three get free or buy six get six.
Alex Hormozi: I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] 043

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I went from $1000 - $100M in Sales in 44 months...this is how I did it. [EXACT PROCESS] - YouTube

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