Helping Business Owners Reinvest Into Their Businesses | Ep 956

Summary

The Game with Alex Hormozi

Episode 956: Helping Business Owners Reinvest Into Their Businesses
Date: October 13, 2025
Host: Alex Hormozi

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Episode Overview

In this episode, Alex Hormozi dives deep into one of his core entrepreneurial philosophies: reinvesting profits back into your business to accelerate growth. Through live coaching calls with three business owners at varying levels, he shares frameworks and actionable tactics for scaling, generating leads, managing ads, building sales teams, and maximizing the ROI of both organic and paid channels. Hormozi's guidance is practical, direct, and laden with real-world examples from his own career that listeners of all stages can implement.

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Key Discussion Points & Insights

1. Reinvesting Profits into Learning and Growth

• Alex on reinvestment:
  • Reinvesting in the early stages means investing directly in your own skill set.
  • Don’t be afraid to spend profit (and expect many investments not to have immediate ROI).
  • “I take all that profit and I just see that as this is my opportunity to reinvest in the business. When the business, small reinvestment, is you. You are the reinvestment.” (00:02)
• Framework: Treat your learning budget like a venture bet—expect 9 out of 10 investments in education to not pay direct returns, with the remaining one yielding outsized value.

2. Content & Leads: The Back Pain Program Case (John)

John’s Business:

• Online back pain program
• $95k/month revenue, 1M IG and 200k TikTok followers
• Concern: Inconsistent leads/sales

Hormozi's Core Advice

• Use TikTok as a traffic source for Instagram DMs.
  • "The best call to action for TikTok if you want to sell higher ticket stuff, is actually make the CTA ‘DM me on Instagram’ and then put the link to your Instagram.” (01:13)
• Create more content, not less. Challenge the ‘audience fatigue’ myth:
  • "You’re fatiguing your editor, not your audience. Your audience has an insatiable demand for value." (02:05)
  • Comparing the reach: Posting more doesn’t hurt; each post captures a different 1-2% of your audience due to how algorithms work.
• Vary your lead magnets and switch them up weekly or even daily.
  • Don’t keep asking the same “book a call” CTA; alternate with lighter lead magnets (e.g., cheat sheets) to broaden your funnel.
• Shorten CTAs within your videos/posts.
  • ”I would shoot for like 3 seconds or less for your CTA. Because the thing is, it'll kill the view through rate." (04:29)
• Stagger strong and light calls to action throughout the week.
  • Two direct ‘book a call’ posts/week; the rest should focus on providing value and softer asks.
• When to start ads?
  • Scale organic first (double your content output); ads and sales teams move “forward revenue,” but without new organic leads, you quickly plateau.

Relevant Timestamps:

• TikTok to IG CTA: 01:13
• Content frequency mythbusting: 02:05, 02:50
• CTA best practices: 04:29

3. Building Authority as a Beginner

• Should you post before you have authority?
  • Hormozi: Build proof through effort-based achievements (e.g., "I've published 35,000 pieces of content"), then supplement with reputation/testimonials from free work for initial clients.
  • ”Every single business to this day, I still start with free stuff because I want to get feedback from people. I want to know what they like, what they didn’t like, what their pain points are.” (10:16)
• Embrace your position:
  • Compete on personal attention and effort, not scale.
  • "Own that. Of course I'm not better than Alex, but I am better than the third rung down on his company. And you're going to get my phone number, and I care about my reputation, and that person doesn't. That's where you compete." (11:50)

4. Paid Ads and Owner-Operated Marketing (Steven, Local Insoles/Podiatrist Business)

Steven’s Business:

• Podiatrist, local insoles, $54k/month, £3k/month Google Ads spend
• Blocker: Can’t seem to spend more on local ads; relies on agency for campaigns

Hormozi's Core Advice

• Learn media buying yourself.
  • Do not outsource control; learn enough to test and optimize, even if you “suck” at first.
  • “The constraint of the business is under someone else’s control. That’s a tough position to be in.” (14:09)
• Set a personal ‘learning budget’.
  • View educational investments as a percentage of income—try many things, expect most to fail but those that work will compound.
• Direct agency engagement:
  • New hack: Pay the agency, but insist coaching sessions are live, and you run the mouse.
  • "I want to be the one who controls the mouse, and I want them to tell me what to do and why they're doing it." (17:36)
  • Rapid-learning: Screen-recording, question-asking, and intense immersion lead to independence in 6 weeks.

Relevant Timestamps:

• “Learning budget” framework: 13:40
• The ‘you run the mouse’ method: 17:36

5. Content and Story for Ecommerce: Jewelry Brand Question

• Own your brand story.
  • Combine visual content (unboxing, trying on, comparing jewelry) with strong storytelling behind the meaning/design.
  • “You need to do that within your content…Pair this commodity of jewelry with the meaning that you then ascribe to it or the narrative or the story that you put on top of it.” (18:53)
• Repeat messaging is fine:
  • “You need significantly less variety in your content than you think you do.” (19:45)

6. Scaling Paid Ads in High Ticket B2B (Liz, ManyChat Funnels)

Liz’s Business:

• Marketing automation for ecommerce, $600k/month, $150k/month ad spend
• Blocker: Ads break scaling from $5k to $10k/day. Unsure if campaign structure or creative is the issue.

Hormozi's Core Advice

• Media buying structure isn’t the constraint.
  • Don’t obsess on campaign settings; improvements here are minor (5% differences).
  • “I don’t think your bidding strategy is the limitation for all your businesses not getting to a million dollars a month…It’s going to be strategic in nature.” (24:03, 27:20)
• Creative and hooks are king.
  • Researching hooks with AI and copying others is common, but real scale comes from targeting all levels of awareness (not just most aware).
  • “If you have a hard ceiling on your advertising spend...the nature of the hooks and the content that you’re talking about only really relates to the bottom of the funnel.” (24:29)
• Use lead magnets and educational offers to move up funnel.
  • Direct “book a demo” CTAs hit a cap fast; offer value up front (how-tos, checklists, frameworks).
  • “You have to make it easier for someone to take a step. They don’t know who you are.” (25:52)
  • “Give away all the secrets in your lead magnets. They’ll pay because they want you to do it for them.” (27:17)

7. Media Business Monetization Strategies (Podcast Listener Q&A)

• Monetization choices by risk:
  • Affiliate (lowest risk), sponsorships, white label, minority deals with brands, own branded product (highest risk/reward).
  • "If you want to…think about it like this, there’s a couple ways you can grow the business. Number one: you can sell more media spots. That’s the easiest…” (28:00)
• “More eyeballs” trumps everything else if you don’t want to change core business model. (29:13)

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Memorable Quotes

| Timestamp | Quote | Speaker | |-------------|--------------------------------------------------------------------------------------------------------------------|------------------| | 00:02 | "I take all that profit and I just see that as this is my opportunity to reinvest in the business." | Alex Hormozi | | 02:05 | "You’re fatiguing your editor, not your audience. Your audience has an insatiable demand for value." | Alex Hormozi | | 04:29 | "I would shoot for like 3 seconds or less for your CTA. Because...it'll kill the view through rate." | Alex Hormozi | | 10:16 | "Every single business to this day, I still start with free stuff because I want to get feedback from people." | Alex Hormozi | | 14:09 | "The constraint of the business is under someone else’s control. That's a tough position to be in." | Alex Hormozi | | 17:36 | "I want to be the one who controls the mouse, and I want them to tell me what to do and why they're doing it." | Alex Hormozi | | 18:53 | "...pair this commodity of jewelry with the meaning that you then ascribe to it or the narrative or the story that you put on top of it." | Alex Hormozi | | 24:03 | "I don’t think your bidding strategy is the limitation...It’s going to be strategic in nature." | Alex Hormozi | | 25:52 | "You have to make it easier for someone to take a step. They don’t know who you are." | Alex Hormozi | | 27:17 | "Give away all the secrets...it will not matter. Give away all the secrets, all the sexiest stuff, put it in your lead magnets." | Alex Hormozi | | 28:00 | "...there’s a couple ways you can grow the business. Number one is you can sell more media spots..." | Alex Hormozi |

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Important Segments & Timestamps

• [00:02] - The principle of reinvesting profits/learning
• [01:13] - TikTok-to-IG lead generation strategy
• [02:05 & 02:50] - Content output and audience fatigue myth
• [04:29] - CTA duration and view rates
• [10:16] - Starting with free work and building proof
• [13:40] - “Learning budget” for owner education
• [17:36] - Owner-driven learning from agencies
• [18:53] - Storytelling in visual brands (jewelry)
• [24:29] - Creative vs. campaign structure in ads
• [25:52] - Funnel design & scaling
• [27:17] - Lead magnets and giving away value
• [28:00] - Media business monetization models

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Conclusion

Alex Hormozi uses live case studies to hammer home universal truths for entrepreneurs:

• Always invest in your skill set and be relentless in understanding the mechanisms of sales, marketing, and product delivery.
• Double down on content and creativity; the limit is rarely the platform, but more often your own output or approach.
• Never outsource learning—own the levers that drive your business, especially paid acquisition.
• In both organic and paid growth, continually test, educate, and nurture your audience at all levels of awareness.
• Monetization is a continuum of risk; choose strategies that align with your resources and intended involvement.

Throughout, Alex’s tone is candid, encouraging, and action-oriented—a must-listen for business owners at any stage seeking to break through their current plateau by “staying in the game.”

Transcript

[Alex Hormozi]

I take all that profit and I just see that as this is my opportunity to reinvest in the business. When the business, small reinvestment, is you. You are the reinvestment. And so that's where I'm like, okay, I'm going to pay my current agency, I'm going to pay the next agency, and I'm going to tell both of them I want them to teach me what they're doing, and I'm going to spend my own budget too. Hi, John. What's up, man? Tell me about the business. Yep.

[John]

So we help people with starting back pain in Statica. We have an online program.

[Alex Hormozi]

Okay, so online. Okay. Yep. And you help with back pay. Got it.

[John]

That's right.

[Alex Hormozi]

What's revenue?

[John]

And we're doing nine, 95 grand a month.

[Alex Hormozi]

Okay. So, you know, bucks a year roughly. Okay, so you do it a million a year. Great. So I know you're online. Are you selling via checkout page or via sales call?

[John]

We do a dm, the trio call to sales call.

[Alex Hormozi]

Okay, so okay, cool. You're online salespeople. Okay, yeah. Okay, got it. And how are you getting leads?

[Steven]

It's.

[John]

We have a million followers on Instagram.

[Alex Hormozi]

Okay. One million on IG. Anything else?

[John]

Yeah, like 200 grand on TikTok.

[Alex Hormozi]

Okay, cool. Well, you've probably already seen the difference of the value of 200,000 on TikTok versus 1 million on IG. Yeah. Want me to give you a quick hack to turn those TikTok people into more value?

[John]

Please.

[Alex Hormozi]

Yeah. So we have found that the best call to action for TikTok if you want to sell higher ticket stuff, is actually make the CTA DM me on Instagram and then put the link to your Instagram.

[Liz]

Wow. Okay.

[Alex Hormozi]

Yeah.

[John]

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

[Alex Hormozi]

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

[Liz]

Cool.

[Alex Hormozi]

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

[John]

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

[Alex Hormozi]

How many posts a day are you putting out?

[John]

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

[Alex Hormozi]

Okay. I think you can probably make more. I'll just put that out there. I would 100% not believe in the mythology of, like, there's a platform limit. There totally isn't. And that's on. And I pretty much stand by that. On every platform, like, Fox News puts out one. I just looked at this. We were calling up this morning. Does one long per hour on YouTube. Oh, wow. Right. And they do, like, 300 million views. Right. And there's a Bollywood account that gets a billion views a month on Instagram and puts out a hundred posts a day on Instagram. So you have to think about it like this. So instead. So I hear what you're saying with the fatiguing audience. I think more realistically, you're fatiguing your editor, not your audience. I think they're not making good enough stuff. No, I'm being real. I think they're not making good enough stuff. Your audience has. No. Has an insatiable demand for value. Would you like.

[John]

Yeah.

[Alex Hormozi]

Believe that in your core, your audience has an insatiable demand. It will literally never. It's an endless pit when it comes to value and has almost no appetite for fluff and waste. If we have. Let's imagine that this circle represents a million people. Okay. When you make a post, you're getting, like, 1 to 2% of your audience to actually see it. Right. And so if you make more posts, you'll just have more one to two percents that see it.

[Liz]

Okay.

[Alex Hormozi]

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

[John]

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

[Alex Hormozi]

Yeah. And that's. Okay. Well, it's. It's not. It's not the end of the world. Again, all that matters is, like, how long is the CTA relative to the post. Right. So it's usually like, are you doing a manychat integration? Yeah. Yeah. So how long is the cta?

[John]

Like, six seconds.

[Alex Hormozi]

Is it. That's long? Is it prerecorded? Or is it, like, prerecorded, then stapled on or Are you making them native every time?

[John]

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

[Alex Hormozi]

Yeah. So you want to swap out what the lead magnets are constantly. Oh, okay, got it right now. Because like, why would they respond? They already got it. Yeah. Right. So, all right, so I'm going to write down little nuggets for you. So number one, we're going to go TikTok, TikTok DMs to IG as CTA. Number two, we're going to going to make more lead magnets so that you can alternate through them. Number three, I think more content is a good idea. Okay. Number four is I think you need to lower your time, your CTA time. So I would probably, I would shoot for like 3 seconds or less for your CTA. Because the thing is, it'll kill the, it'll kill the view through rate. Right. And then that's killing the amount of reach you're getting. Yeah. Okay. And you're doing comment, like book or comment, whatever, and then it DM'd them the thing.

[John]

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

[Alex Hormozi]

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

[John]

Okay.

[Alex Hormozi]

Because I mean, like, that's like the heaviest right hook you can do. Yep. I'll give you guys a little insight also to the my live stream bros. On one hand, like when we do ads that are like direct to workshop, that's like quote the heaviest ask. Like, hey, come out to Vegas. Right. That's pretty, you know, so you gotta have a hurdle, et cetera. Now when we have a scaling roadmap, which you may have seen ads for. Right. The scaling roadmap has lower immediate ROAS, but over a 60 or 90 day window has superior ROAS to direct workshop. In addition to that, it also has like 10 times the reach. Because getting somebody who's a little bit like somebody who's like, yep, I want to come to a workshop, like they've already consumed, like, that's almost like, it's almost like warm audience retargeting more than it's like an ad and a process that like nurtures, you know, prospects and then, you know, warms them up, provides value, et cetera. And so I think if you want to broaden kind of like the net that you're going through, just make the ask that you have a little bit Lighter. So I think, one, you've got your direct. If you're doing one a day, I would do like maybe two a week of the direct one, and then do the remainder of them as posts that are like, lead magnet centered. Right. Like seven tips to fix this or whatever. Right. And you. You can spend. I'm sure you could spend a hundred of those things. It's not. It's not that hard. And then the triage question is like, hey, are you here for free stuff? Or do you want to solve the problem for good? And they're going to say, I want to solve the problem. They're like, great. And then you're into a sales conversation.

[John]

That's great. And then at what point would you start retargeting ads?

[Alex Hormozi]

The thing is, is, okay, this is. This will be great for everybody. So, again, I don't know if you can see my thing. So if you think about your audience is this pyramid, right? The people who are buying from you right now are this, like, tiny, tiny little top 1% here. And so there are some things that. There are some actions that could get you to. To convert just a higher percentage of that 1%, which means that, like, we could make the. Well or the pyramid larger, which we would do by posting more times and making better content. Right. Or we can keep that pyramid the same size. Right. And then we can move this line of what percentage we're converting and make that a little bit deeper. When you add a sales team that converts a higher percentage of the audience. When you add ads, you're gonna convert a higher percentage of the audience because you're just gonna have your ad shown to a bigger percentage of people in that sphere. Right. And so it's almost like reaching into forward revenue and pulling it forward, which is fine as long as you're filling up the bucket. Right. So I would. Right. You get what I'm saying with that? So you will absolutely make more money if you have a sales team and run ads, no question. But then you will hit another plateau, and you will still be limited by the growth of your organic unless you create a true cold traffic acquisition channel, which is a different monster and beyond the scope of right now. All right? And so my recommendation is I would want you to double your content. I don't want your business to go down. Keep one CTA as your direct to book a call and keep the other and make the second CTA for the lead magnet and just do two a day.

[John]

That's good.

[Alex Hormozi]

Cool.

[John]

Sounds great. All right.

[Alex Hormozi]

Rock and roll. Appreciate you John, Awesome.

[John]

Thank you.

[Alex Hormozi]

Yeah, thanks for calling Hermosi Highline. All right, so let's take a little. Let me, let me look at the chat. What's up, guys? Okay, so as I build a personal brand, is it better to become an authority in a certain skill and then start posting content, or is it better to start posting content without being authority in that skill? Great question. So my perspective on this, and this probably will differ from other people's, but I can only explain what I do, right. And the kind of thinking process behind it. I never want someone to question whether I'm legit or not. Right. And I think that way. And maybe it's because I just have like massive insecurity, who knows? But the reason that I, I tend to always start with proof, right. And so I would rather like. And if you don't have external achievements, right. Then you need the achievements to be effort based rather than external. Okay, so what does that mean? So instead of saying, hey, I did $100 million launch, that's an external achievement. Everyone can see that. Great. Lots of money, et cetera, right? I could say I made 35,000 pieces of content. You can control that. Now, whether you did a good job or not is a separate thing. But when you do effort based achievements, it's kind of like grind or pay, right? And so in the beginning you don't have the money or the proof to do it, so you have to grind. And so grind wise, it's like, I'm going to make 35,000 pieces of content and document what you're learning along the way. That's fine. Like that's the game. And so that will be kind of phase one. Phase two is be willing to work with people for free. People spend way too. Like, I'll say this differently if you're getting started every single business to this day, I still start with free stuff because I want to get feedback from people. I want to know what they like, what they didn't like, what their pain points are. I want to figure out how to, how to smooth out the process. I want to figure out all these different things and me trying to guess at that on my first shot and ask people to pay me. I'm like, I don't want to do that. I'm going to have bad reputation. I don't want it. Right? And so it's going to take you so much more time. Think about this. For you to get 10 customers who pay you with it, never giving anything away for free is going to take a long time. You getting 10 people to start working with you for free and then using the 10 testimonials you get there to then get your 11th, 12th, 13, 14, 15, 16, 17, 18, 19, 20th customer is going to take you less time to get that 10 paying customers if you do 10 for free first of whatever it is that you sell. So that's my, that's my two cents. More people doing up your stuff is not going to make you less money. I do think, though, that, like, big, big, big picture, it also kind of depends what you're going to get into. If you want to be, you know, it's like, I want to be a business coach. It's like, well, do. Just look at the people who have the most credibility in business. They have some big giant thing behind them, right? I would not try and compete there. I would try and compete on a much smaller pond that I can be. I can be king of a very, even a pond, like a puddle. Like, just be king of the Z and create proof around that little bitty itty bitty puddle. And you will find people who are willing to pay you because you are a specialist and because they have access to you. Okay? And I'll give you, I'll give you one more tidbit for those you guys are starting out, and then I'll take the next call. So when you're starting out, you always have an advantage, all right? Every, every position has an advantage on the board of the game. So if you are, if you're, if you're a super baller, right? You're, you're, you're a G or whatever you want to say, right? My position is to say, don't go with Weenie McGee over here. He's in his mom's basement and doesn't know what he's talking about. Right? I have been doing this for however many years and looked at all this credibility and looked at all this proof, right? Cool. Weenie McGee, right? He's gonna be in his mom's basement and he's gonna be like, don't hang out with Alex. You're never gonna talk to Alex. There's no chance, right? You're gonna be talking to someone three levels down from him and you're just gonna be a number to them. I mean, that's what I would say. Of course, we don't operate that way, but, like, that's what you would say, right? And so if that's your position, then you say, dude, you're going to get my phone number. And so it's not. Am I better than Alex. Of course I'm not better than Alex. Like, own that. Of course I'm not better than Alex, but I am better than the third rung down on his company. And you're going to get my phone number, and I care about my reputation, and that person doesn't. That's where you compete. And so that's how you can start getting a foothold. Which is why there will always be room in the market for people who are new, because people who are established are going to have their position to play. Cool. Cool. Classic is going to say, we're the classic. We've been doing this forever. And the people who are new and upstart is like, hey, I'm a young founder. Just try my soda out. If you like it, tell me. Give me feedback. I'll try and fix it. That's the position both can win. And for anyone who's like, I don't think this will work or something like that, it's like, dude, like, I was in the same position. It's not like I'm 50. You know what I mean? Like, I started at 02, and you just have to outwork, right? And you got to say, like, I'm willing to do more than those guys are. In the beginning, people don't want to say it. I'll do it for less. Until eventually we have proof. And then we have proof, it becomes a virtuous cycle of charging more. Okay, caller two. Steven, let's rock and roll. Nice to meet you too. But I'm going to. Because the team collected your numbers, so monthly revenue right now is 54k, right?

[Steven]

Yeah.

[Alex Hormozi]

All right, and then ad spend is 3k.

[Steven]

That's month.

[Alex Hormozi]

Yeah. Per month. I got you ads is 3k. Great. Per month. Per month. Industries, your medical. What do you do? Custom insoles?

[Steven]

Yes, I'm a podiatrist.

[Alex Hormozi]

Oh, cool. Yeah. Buddy of mine's dad was a podiatrist back in Baltimore. Okay. The offer is in Sols for 300. So this is your AOV call it right. Is 325. I know that you're in pounds, but I'm just used to writing dollars, so it doesn't really matter. Okay. Constraint is Google Ads are underspent. Okay. So you can't spend more than the 3,000amonth. Is that correct?

[Steven]

Yeah.

[Alex Hormozi]

Okay. Are you local?

[Steven]

Yeah, I do. I have a Google Ad specialist that is running my Google Ads, so that's something I never learned.

[Alex Hormozi]

Are you local?

[Steven]

Told me that local in the Netherlands.

[Alex Hormozi]

You mean like, are you running Ads for a local business. Are you running this ad spend nationally?

[Steven]

Oh, sorry. For a local business?

[John]

Yes.

[Alex Hormozi]

Okay, you're local. So people, people do that, they come in, they get measured or whatever, then they get insults. Correct?

[Liz]

Exactly.

[John]

Yes.

[Alex Hormozi]

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

[Liz]

Yes.

[Alex Hormozi]

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

[Steven]

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

[Alex Hormozi]

Yeah. So I'll say this, man. So I mean, congrats, you're doing, you know, 600ish a year. I would strongly recommend you learning this stuff because it's not that hard. Like, it's really not that hard because then you're not going to like right now you're saying the constraint of the business is under someone else's control. Right. That's a tough position to be in. So I would just want, I would want to own this myself. And I'll give you a, I'll tell you a story that like really changed my perspective. I haven't told the story in a really long time, so this will be a good one. So I went to this meetup where everybody was doing, you know, eight figures or more. And at the time I wasn't. And so I like snuck in. They were like, no, we think you're going to be, you know, a big baller. Because whatever, they recognize the, the, the magic in me. But anyway, so they let me come. And what was really interesting is one of the guys who was making the most money in the room when he went up and presented, he said this really interesting thing. He said I would encourage everyone here because someone asked him like, hey, so what are you doing to like reinvest in your education right now? He said, well, at the level that I'm at, and he was making I think 30 or 35 million. I remember thinking, I was like, oh my God, this person is God when I heard that. But he said he was making $35 million a year. And he said, I would encourage you to write down a percentage of your income, whatever percentage you're comfortable with, and put that as your learning budget. All right? And that learning budget, he said you should spend that every month and expect to have 0 ROI on 9 out of 10 things and then the 110 thing will make you 10 times the money. It's almost like doing a venture bet on yourself from an education perspective. And so I took that to heart and then I started spending saying, okay, you've got your 3,000amonth. I want you, Steven, to do $3,000 a month that you control. And you say like, I'm going to spend 100 bucks a day and I'm gonna see if I can beat this guy because I promise you, when it's your business, you'll beat him. Like, you'll, you'll suck in the beginning, but you'll quickly learn. Like, like PPC for, for Google Ads is like really not hard. Like they make trillions of dollars to try and make it easy for you. Sorry, go ahead.

[Steven]

That's great advice, man. Thank you. Definitely go start with it.

[Alex Hormozi]

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

[John]

A hundred percent.

[Alex Hormozi]

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

[Steven]

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

[Alex Hormozi]

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

[John]

Oh, that's.

[Steven]

That's a very good idea.

[Alex Hormozi]

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

[John]

That's genius.

[Alex Hormozi]

Cool.

[Steven]

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

[Alex Hormozi]

Rock and roll. Congrats on the business, Stephen.

[Steven]

Yes, thank you, Alex.

[Alex Hormozi]

You bet, man. Rock and roll. Okay, bye.

[Liz]

Bye.

[Alex Hormozi]

Yeah. All right. What type of lead magnets or funnels do you make for them? Partnered with my wife on her business, we sell jewelry with purposes. Partner with my wife on her business, we sell jewelry with purpose. Natural stones. What would be the best content to post for advertising? We use TikTok. Done, bro. What are we. What are we talking about here? This is super visual. All right, what are we. What are we talking about? All right, so number one, I mean, TikTok. TikTok shop for sure. Like, if you're not doing that, you should be doing that. Number two, I'll bet you with jewelry probably have very good margins with it. And you could probably pay really aggressive affiliate commissions to any other tiktokers who will repost your stuff. And so I would look at. Are there small things that I can give out for free. I know that's heavy, but people will be willing to do it. I don't know what revenue is right now, by the way, Junior, but I would also double this on Instagram, and I would want to do, like, as many collab posts as I can with other influencers, with them trying on different things. And I think the big thing that I would want to do is I want to tell the narrative. I want to tell the story behind the jewelry. So give you an example. So if you think about, like, selling merch, right, everyone has T shirts. There's nothing sexy about a T shirt. And if a T shirt just has a logo on it, again, it doesn't really matter. But if you say, let me tell you the story behind why this logo, why this saying is meaningful. And so what we have to do is basically pair this commodity of jewelry with the meaning that you then ascribe to it or the narrative or the story that you put on top of it. And so two years ago, I did my book launch for the leads book, and some of you guys might have been there, and I sold, like, millions of dollars of hats, all right? And people were willing to pay $100, essentially for a hat. Now, obviously, they got two other books and the hat was free, but, like, fundamentally, that was what happened, right? And so what's really interesting about that, the specific event is that I then spent like, four or five minutes just saying, like, let me tell you about why I wear this hat, what this hat means to me. And so after explaining the meaning behind the hat, then way more people willing to buy it versus, like, hey, do you guys just want to buy a hat? And so I think to the same degree, you need to do that within your content. And you're like, well, what kind of content should I do? Like, show the jewelry, show people unboxing the jewelry. Show people picking out between different kinds of jewelry, and then you telling the narrative behind each of them in terms of where was the stone sourced? Why did you design it that way? What is. What is this chain do versus this chain? What are these metals do? Like, there's so much to talk about with your content. And don't be afraid to repeat stuff. Just don't be afraid to repeat stuff. And one of the really interesting things with content is that I'm going to give a Dave Ramsey example. But, like, you need significantly less variety in your content than you think you do. So think about what Dave Ramsey has done for the last 35, 40 years, however many years it's been. He has told people to spend less than they make. That has been his core message. Don't go into debt, Spend less than you make. Cut up your credit cards, pay off your loans. That's more like, obviously, is the seven baby steps. And that's awesome. But my point is this, is that people still tune in every day when they know what the message is, because they're like, I wonder how this will apply to a stripper. I wonder how this will apply to somebody who won the lottery. I wonder how this will apply to somebody who's got a kid who's going to college now. And it's a good college or it's a bad college. Right. And so the thing is, is that you can have a single framework or single core product or concept, and the variety will just come from the examples that you use. Cool. All right, Third caller is Liz.

[Liz]

Hello.

[Alex Hormozi]

Hey, Liz, what's up?

[Liz]

I'm good. How are you?

[Alex Hormozi]

Excellent. You're on Hermozy hotline. So you've got monthly revenue $600,000 a month. Congratulations. Badass.

[Liz]

Thank you.

[Alex Hormozi]

Welcome. Rich, you gotta buy me some jewelry from. From Junior. All right. Okay. Ad spend is 150,000amonth. Okay. A little high there. Got it. All right. What are your margins right now? They didn't ask that. What are your.

[Liz]

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

[Alex Hormozi]

Okay.

[Liz]

But before that it was 45%.

[Alex Hormozi]

Yeah, got it.

[Liz]

So in the last three months, I've been trying to scale, build a team, try to spend more on ads. Haven't managed. So that's it.

[Alex Hormozi]

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

[Liz]

Many chat funnels.

[Alex Hormozi]

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

[Liz]

Yes.

[Alex Hormozi]

25K a month. Okay. What's your price?

[Liz]

6K a month.

[Alex Hormozi]

6K a month. Okay, 6k per month price. What's churn right now?

[Liz]

Between 5 to 10%.

[Alex Hormozi]

Hmm. Okay. Okay, so 5 to 10% churn. Let's just use 10% to keep it simple. So 60k. What are. What's gross profit on the. On the service of six a month?

[Liz]

While we were breaking even in month one and then we're starting to profit in terms of month two.

[Alex Hormozi]

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

[Liz]

About 2K. 2 to 3K.

[Alex Hormozi]

Okay. 2 to 3K. Okay. Okay. A little bit high, but that's fine. Okay. Cogs. So cost of goods sold. Okay, great. So what's the question? How can I help? Now that I have context, I've been.

[Liz]

Struggling to double my ad spend. So our meta ads break when we push from 5k a day to 10k a day.

[Alex Hormozi]

Yeah.

[Liz]

So the question is, should we Instead of multiple 1k a day campaigns which might be competing against each other. They're not consolidate everything into a.

[Alex Hormozi]

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

[Liz]

Correct. Is one master campaign that's spending 7 to 8k a day with a one single asset ton of ads is better than multiple 1k a day campaign.

[Alex Hormozi]

I have no idea. I actually don't think it matters being real. I don't. My whole, my whole life, that has never been the thing that has limited me. Said differently, I don't think your bidding strategy is the limitation for all your businesses not getting to a million dollars a month. This is why it's valuable to have properly identified constraints.

[Liz]

Is it creative then?

[Alex Hormozi]

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

[Liz]

Well, I'm researching using ChatGPT, whatever ads I see online, what feels good, what sounds interesting, I roll those up.

[Alex Hormozi]

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

[Liz]

Yes, I am.

[Alex Hormozi]

Okay, so you have to translate those levels of awareness to the types of hooks that you're. That you're making. So I'm gonna guess so if you have like a hard ceiling on your advertising spend, like once you get over a certain level, like you can't spend more. It's typically because the nature of the hooks and the content that you're talking about only really relates to the bottom of the funnel. So you're talking about most aware customers who already know about your types of offer or solution or product. Aware customers who know about. They know about manychat or they know about you or they know about your offers, right? So it's. You're talking to a very, very warm audience. And so Facebook only has a very small amount of people who are, you know, doing $25,000 a month and know about this specific type of product offering. And so that's the only people they're showing the ads to. And so we have to start, like, at the extreme, right? You would have the unaware customer who is purely. You have to get them purely on curiosity. Like, your business is losing, you know, thousands of dollars a day because you don't have this one integration. That would be something that someone who has no idea about anything to do with ManyChat, anything to do with marketing automation, they might take the next step. Now what happens is as you go up funnel, right, you go to higher or busy, lower levels of awareness when there's way more people. Sometimes the funnel has to change and so does the lead manner. Are you just making a straight offer in your ads? What's the funnel?

[Liz]

Yeah, making an offer to book a demo.

[Alex Hormozi]

Yeah, you're like, you're, you are, you are so level. You're so low on the, on, on the awareness thing. Like, that's the issue. You have to, you have to make it easier for someone to take a step. They don't know who you are. Like, like, just saying, like, hey, book a sales call is a tough ask.

[Liz]

Okay?

[Alex Hormozi]

Right. And so this is why, like, lead magnets and things like that make sense. It's like you might need to have a longer process of breaking even, number one, and a longer process of educating the prospect. And you need to have wider hooks. And so one of the big things that happens in, like, the whole marketing world is some people are like, oh, lead magnets don't work. Or they do work. If you just say, hey, buy my shit, you will get higher roas than have a lead magnet, but you will be very quickly capped by the amount of people who are, who are warm. And so you've probably heard the whole, like 97% of the audience isn't ready to buy right now, and 3% is. So right now you're spending all your time on that 3%. If you want to scale this thing, you got to be able to go up.

[Liz]

Makes sense.

[Alex Hormozi]

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

[Liz]

Yeah, yeah, you're right.

[Alex Hormozi]

Cool.

[Liz]

Okay.

[Alex Hormozi]

All right. Rock and roll. Good stuff. This was fun. Let's do this again. You bet. Liz. I just wanna make sure that you're not like, here's what's crazy about this. Cause I think this is good for everyone who's watching too. People will stay stuck at this level for like years because you keep thinking it's like a media buying thing. It doesn't matter. Like, how you're doing your bidding and campaigns is like, we're talking about like 5% differences, like the things that are going to get you from, you know, 600,000amonth to a million or multiple millions of dollars a month. It's going to be strategic in nature.

[Liz]

Yeah.

[Alex Hormozi]

But do you feel like you can execute on that?

[Liz]

Thank you. Yeah.

[Alex Hormozi]

Okay. Rock and roll. Thanks, Liz.

[Liz]

Thank you, Alex.

[Alex Hormozi]

Yeah, you bet. All right. Hormozi hotline coming in hot. There we go. Spicy. Okay. All right, so let's see. Here's some. If you only need Met ads, would you do faster to make 10k only with one type of outreach method? Well, then just use meta ads, dude. If you're only good at that, then just use the thing that you're good at. Okay. Loose foot blitz. 15 to 20,000amonth. YouTube business. Okay. Podcast about soccer in Spanish. Awesome, dude, Congrats. I've been making the same amount per year. I've been focusing on the content and not on the business. How can I scale this up? Okay, so I'm going to bet that you probably have. So I actually don't know what your monetization vehicle is, so I don't know if you're doing sponsorships or if it's ad revenue. I'm going to guess that it's one of those two things because just the way you described it, you probably, if you were selling something, you probably would have mentioned your product. So I'm going to assume that you don't have a product and that you were just basically a media business, which, there's nothing wrong with that. So if you want to. So think about it like this, there's, there's a couple ways you can grow the business. Number one is that you can sell more media spots. That's the easiest thing you could do to grow the business. So that would be like outreach to other people who buy media in your type of business and are willing to buy more ad spots. That's like thing one. That's going to be cap though, based on the amount of eyeballs and impressions that you're getting. But that would be like the fastest lever. The second, you know, thing that would take a little bit longer would be like, I'm going to keep what I have and then just going to expand my channel so I can charge more with the ones that I've got. That'd be the second way. The third way is, and this is a, this is a smart cookie way of doing it, is it depends on how much getting in the game you want to be, right? And so when you have a media business like you do, I see this as this big continuum of risk and reward, okay? So if you want, you know, low risk here and then you've got high risk and potentially higher reward, you're on this side and I'll walk you through the options that you have besides what I just outlined. So the, the lowest risk thing that you can do is you can just be an affiliate, which means that you send traffic and you get paid after the sale. All right? That is the, the single easiest thing you can do. The next thing you could do is you could do media sponsorships, which is what you're doing, right? So now you're saying, hey, I want to get paid no matter what. I don't care what your outcomes are, okay? The next level that you can think about is you can do white label, okay? Which means that you can go and find a product that you like, you can drop ship it, or you can like, you're not manufacturing anything like that, but you white label it and you put your brand on it and people buy it from your channel. The next thing you can do is you can do a minority deal, which is where you find an existing product that you like a lot. So maybe it's one of your bigger sponsors and say, hey, I will make this, you know, more exclusive for me, but I want some points of equity. I want sort of royalty or rev share on what I can bring you. And so that Gives you a nice mix of upside today and upside down the line, and you trade some sort of exclusivity with that. Now, you don't have to do exclusivity. Obviously depends on the size of your brand, but those are things that you could explore. Now, the last and most risky but highest reward would be you own 100%. Right. So you actually just, you build your own product or service and you have free advertising from your existing media business to go sell that. But I want to, I want to warn you, that's getting into the game like you're getting into the business of business. And so these two are significantly easier. This one is pretty easy, too. I might flip these. So like one, two, and minority deal. You basically just keep making media and you just change the economics of how you make media. White labeling and you owning your own thing. Are you really getting into the game of business? You owning a product that you can sell will for sure be the thing that can get you the most money. It's also a distraction if you don't have the resources. Cool. So hopefully they give you a little bit of outline in terms of, like, how you can think through how to make more with the existing thing you have. But the easiest things here is more eyeballs. If you're already just like, I don't want to change anything, just get more eyeballs, make more media or increase sponsors, that would be the easiest, fastest that you could do.