Alex Hormozi: The EXACT FRAMEWORK I used to grow a $46.2M business in 3 years....in 70 minutes

The video is about Alex Hormozi discussing the framework he used to grow a $46.2M business in 3 years, focusing on scaling a high-performance sales team and high-level observations of entrepreneurship.

This video by Alex Hormozi was published on Jan 19, 2022.
Video length: 01:09:39.

In this video, Alex Hormozi discusses the framework he used to grow a $46.2 million business in three years.

He was invited to Taki Moore's mastermind group for eight-figure business owners, where they discussed two main topics: scaling a high-performance sales team and high-level observations of entrepreneurship. Hormozi talks about his experience with inbound and outbound sales and how they fixed weaknesses in their business, such as churn and being channel dependent on Instagram and Facebook.

He also discusses the importance of outbound sales and how it takes longer than most people expect.

• Alex Hormozi is an entrepreneur, investor, and CEO of Acquisition.com.
• He discussed scaling a high-performance sales team and high-level observations of entrepreneurship.
• They have experience in inbound and outbound sales, meaning cold calls versus taking phone funnel type inbound leads through applications.
• Their business was channel dependent on Instagram and Facebook, and they were selling gym owners.
• The sales numbers continued to increase linearly.
• Adding a second channel is important once the business reaches $10 million.
• The business is a sturdy machine that can make money even if Facebook ads shut down.
• Scrape lists off of Google and have VAs in the Philippines enrich the data to ensure it's accurate.
• Entrepreneurship is a long-term game, and success requires patience and persistence.

The EXACT FRAMEWORK I used to grow a $46.2M business in 3 years....in 70 minutes - YouTube

Introduction

• Alex Hormozi is an entrepreneur, investor, and CEO of Acquisition.com.
• He was invited to Taki Moore's mastermind keynote for his eight-figure and up group.
• The discussion was split into two parts: scaling a high-performance sales team and high-level observations of entrepreneurship.

Scaling a High-Performance Sales Team

• Alex has a portfolio of companies that does $85 million a year.
• The biggest sales team they have in those companies is a 26-person sales team.
• They know what it looks like to recruit, hire, manage, incentivize, and drive high-performance sales.
• They have experience in inbound and outbound sales, meaning cold calls versus taking phone funnel type inbound leads through applications.

High-Level Observations of Entrepreneurship

• Alex and Layla run a portfolio of companies, including gym launching and prestige labs.
• They started a two and a half year journey that eventually resolved in them selling the business.
• The biggest weakness was that Alex was inextricably linked with the brand.
• Their business was channel dependent on Instagram and Facebook, and they were selling gym owners.
• The three big weaknesses in their business were churn, Alex's name being the brand, and the fact that they were channel dependent on Instagram and Facebook.
• The outbound process takes significantly longer than most people expect.

The EXACT FRAMEWORK I used to grow a $46.2M business in 3 years....in 70 minutes - YouTube

Sales Numbers

• The first month, one sale was made.
• The second month, two sales were made.
• The third month, four sales were made.
• The sales numbers continued to increase linearly.
• The price point for outbound is at least $15,000.
• The LCV is currently $40,000.

Channel Dependency

• Continuing to see progress through the funnel is important.
• Exiting the business without it being dependent on a single channel is crucial.
• Adding a second channel is important once the business reaches $10 million.
• Understanding the organizational chart and sales process is crucial.
• There are three different roles in the sales system: BDRs, SDS, and BCs.
• The fourth team sells the 40k product.

Manual Outbound

• Manual outbound is a combo of cold calls, cold emails, and cold text.
• Every aspect of the funnel is the same as digital, except it's purely manual.
• Human variables contribute to every step in the pipeline.
• The sales numbers increase linearly.
• The base of BDRs feeds half as many SDS, which feeds half as many BCs.
• The process functions similarly to what an advertisement used to do.

Sturdy Machine

• The business is a sturdy machine that can make money even if Facebook ads shut down.
• The business has a high-performance sales team.
• The business is not dependent on a single channel.
• The business has a price point of at least $15,000 for outbound.
• The LCV is currently $40,000.
• The sales numbers increase linearly.

Building a High-Performance Sales Team

• Scrape lists off of Google and have VAs in the Philippines enrich the data to ensure it's accurate.
• Use Phone Burner to call through the list.
• BDRs are required to make 100 calls a day and get four hours to work per day.
• Expectation is that they get two appointments that show up from those 100 calls.
• It takes two days to ramp up BDRs, and it's not a hard position to teach.

Effective Sales Pitch

• The pitch is to offer help to struggling gyms in the area.
• Offer to give them some of the stuff that's working well for other gyms.
• Set up an appointment with a salesperson to run through the systems for their gym.
• Look up the gym before making the call to personalize the pitch.
• Tonality matters in the pitch.

Getting Appointments to Show Up

• Offer something that people really want in their space, even if it's unscalable.
• Figure out a system to scale it once you get the flow going.
• It takes time to figure out what gets people to show up.
• Lead magnets and similar tactics are not as effective as offering something truly valuable.
• SEO is an example of something that used to be valuable but is no longer as effective.

Observations on Entrepreneurship

• Entrepreneurship is about solving problems.
• It's important to focus on the right problems.
• Scaling a business requires a different skill set than starting a business.
• Scaling requires a focus on systems and processes.
• Entrepreneurship is a long-term game, and success requires patience and persistence.

Setting up the Sales Room and Providing Value

• Walk through how to set up the sales room and scripting to double the amount of people who sign up.
• Sell the benefits of the valuable service.
• Provide expertise to show in-depth nuggets that demonstrate knowledge and build trust.
• Terminate the value delivery and leave 15 minutes at the end to transition to the next call.
• Make a frame shift to show how the service can help the client overcome their biggest insecurity and fear.

Connecting and Building Rapport

• Call the closer live and make the introduction.
• Connect and build rapport with the client without selling.
• Set the expectation that the next call will be a sales call.
• Be clear about the pricing and services offered.
• Transition from providing value to inbound closing.

Providing Value and Expertise

• Provide value in the first call and expertise in the second call.
• Show domain expertise and in-depth knowledge to build trust.
• Provide a valuable service that can help the client overcome their biggest insecurity and fear.
• Explain how the service can help the client increase their business by changing the way they price.
• Be clear about the pricing and services offered.

Advantages of the Model

• Close four callers out of ten appointments.
• Provide value and expertise to build trust and rapport.
• Transition from providing value to inbound closing.
• Be clear about the pricing and services offered.
• Connect and build rapport with the client without selling.

Building a High-Performance Sales Team

• The cost to acquire a customer from advertising is $500 per close.
• The model takes a long time to build but is impossible to break.
• The human resource training system becomes an asset to the business.
• The four levels of BDRs are junior, associate, BDR, and senior.
• Creating milestones and qualifiers helps salespeople see progress and eliminates high churn positions.

The Importance of a Framework

• A framework is a set of principles that guide decision-making.
• A framework helps to make decisions faster and with more confidence.
• A framework helps to identify what is important and what is not.
• A framework helps to identify what is working and what is not.
• A framework helps to identify what needs to be improved and what needs to be eliminated.

The Power of Observation

• Observation is the ability to see what others cannot see.
• Observation is the ability to connect the dots and see patterns.
• Observation is the ability to identify opportunities and threats.
• Observation is the ability to learn from mistakes and successes.
• Observation is the ability to adapt and evolve.

The Importance of Mindset

• Mindset is the foundation of success.
• Mindset is the ability to overcome obstacles and challenges.
• Mindset is the ability to stay focused and disciplined.
• Mindset is the ability to learn and grow.
• Mindset is the ability to lead and inspire.

The Career Path Framework

• The framework helps people become career salespeople for you.
• The BDRs have a clear career path in front of them.
• The career path is a pure meritocracy.
• There are tiny bumps in compensation for each level.
• Everyone knows where they stand, which cuts down on useless communication.

The SDS Framework

• SDS is qualified shows.
• They have to qualify them and get them to show.
• Domain expertise for the SDS is important.
• The framework uses questions because people can get off into Jupiter.
• The framework follows close receive points.

The Closer Framework

• The framework uses a simple acronym: C.R.O.S.E.
• C is for clarify why they're there.
• R is for reveal the problem.
• O is for offer the solution.
• S is for show the value.
• E is for execute the close.

The Two-Week Trial Framework

• The guys who are qualified to be promoted are picked.
• They get bumped up to the bigs and have two weeks to show if they can close.
• If they can't close in two weeks, they drop back down.
• They get ten deals to try, and if they don't close one out of ten, they're out.
• The reasoning behind this is that there is no killer who doesn't close in the first two weeks.

Framework for Sales

• Framework for sales is called the P.O.S.E. framework
• P.O.S.E. stands for Problem, Overview, Sell the Vacation, Explain with Concerns
• Problem is identifying the customer's problem and making sure they are committed to solving it
• Overview is going over the customer's past pain and what they have done to try to solve it
• Sell the Vacation is selling the benefits of the program or product, limiting it to three main points
• Explain with Concerns is addressing any concerns the customer may have, such as price or decision-making

Question-Based Framework

• The framework is question-based, not scripted
• Question-based framework is easier to teach and more effective for high-ticket sales
• Diagnostic approach is used to identify the customer's problem and needs
• Obstacle overcomes are used to address any objections the customer may have
• Concession reciprocity is used to make a concession and ensure fairness in the sale
• Framework is adaptable to different sales situations and products

Problem

• Identify the customer's problem and make sure they are committed to solving it
• Label the problem and make sure the customer agrees with the label
• Ask if the customer would be happy if the problem was solved
• Ensure the customer is committed to solving the problem
• Address any limiting beliefs the customer may have

Watch the video on YouTube:
The EXACT FRAMEWORK I used to grow a $46.2M business in 3 years....in 70 minutes - YouTube