Podcast Summary: The Game with Alex Hormozi - "Lead Gen vs. Closing: Which One’s Broken?" | Ep 913

Release Date: June 23, 2025
Host: Alex Hormozi

Introduction

In Episode 913 of The Game with Alex Hormozi, entrepreneur Alex Hormozi delves deep into the perennial business dilemma: Lead Generation vs. Closing Sales. Through engaging conversations with various business owners, Alex explores common challenges in acquiring and retaining customers, optimizing sales processes, and scaling businesses effectively. This episode is a treasure trove of actionable insights for entrepreneurs seeking to refine their strategies and achieve sustainable growth.

Guest Discussions

1. Ricky – B2B Cocktail Mix Sales

Background:
Ricky and his partner, Ben Potts, sell a bar cocktail mix to B2B clients, specifically Country Club Resorts. Despite achieving $3.5 million in revenue last year, Ricky faces challenges in scaling beyond the current customer base.

Key Challenges:

• Reliance on his father as the main salesperson with over 20 years of industry relationships.
• Limited brand awareness, primarily driven by word-of-mouth and referrals.
• Uncertainty about expanding marketing efforts to increase brand visibility.

Alex's Insights:

• Mechanizing Sales Processes: Alex suggests Ricky consider developing an outbound sales strategy by mechanizing existing successful sales processes. This involves creating standardized scripts, defining initial contact methods, and training a team to execute these strategies effectively.

  "What's initial contact look like, what's first message, what's second message... Once we have that conversation, ... we can insert ourselves." (Alex, [02:15])

• Focus Over Branding: Emphasizing that expanding the current B2B model is more prudent than diverting resources to new branding initiatives at this stage.

  "I don't think you should go brand now. Especially since you built the whole business off B2B." (Alex, [02:59])

2. Sam Tierling – Transportation Company Owner

Background:
Sam owns a transportation company specializing in delivering chemicals to fracking companies, with revenues growing from $5 million to $10 million over three years. He is contemplating whether to expand the existing trucking business or diversify by selling products directly to end-users.

Key Challenges:

• Balancing cash flow between transporting existing products and investing in buying and selling new products.
• Managing receivables that constrain the ability to purchase inventory for end-user sales.

Alex's Insights:

• Risk of Diversification: Alex warns that adding product sales introduces complexity and cash constraints, potentially slowing the core business's growth.

  "If you keep focusing on that which is a very cash intensive business... Then you have to pay constraints." (Alex, [04:26])

• Focus on Core Strength: Drawing from his personal experience, Alex advises prioritizing the existing successful model rather than diluting efforts across multiple ventures.

  "There's no reason to not just become even better at the thing that you're currently doing and compound the competitive advantage that you have." (Alex, [05:38])

3. Chase – Exhausted Cleaning Business Owner

Background:
Chase runs an exhaust hood cleaning service for restaurants in San Diego, boasting $6,000 in monthly revenue with an annual recurring revenue of approximately $100,000. His primary hurdle is developing a clear and compelling offer that differentiates his service in a commoditized market.

Key Challenges:

• Competing primarily on price, making it difficult to maintain margins.
• Struggling to articulate unique value propositions beyond standard service offerings.

Alex's Insights:

• Decommoditizing the Service: Alex emphasizes the importance of distinguishing the service by eliminating friction points that make competitors' offerings subpar.

  "Good is basically the absence of hard... What are all the reasons that somebody who sucks at this sucks? And let's fix all of those things." (Alex, [13:01])

• Enhanced Offers: Suggesting strategic pricing and value-added services, such as offering semi-annual cleanings at higher prices to improve cash flow and perceived value.

  "I'd prefer to start at 4 down, sell to 2 if you can, and then probably play with payment terms, which is like, can I stack more of that cash up front?" (Alex, [13:56])

4. Kira Brinton – Outdoor Lighting Services

Background:
Kira operates an outdoor lighting business for homeowners, generating $880,000 in revenue, with 40% coming from the holiday season. She struggles with lead generation during off-peak months.

Key Challenges:

• Seasonal demand peaks limit consistent lead flow.
• Difficulty in sustaining business operations outside of the holiday season.

Alex's Insights:

• Year-Round Sales Strategy: Alex recommends focusing on selling permanent lighting solutions year-round, thereby smoothing out revenue streams and reducing dependency on seasonal projects.

  "I prefer the keeping the holiday season business year round... You just collect commitments all year round, and then you go back into the sales cycle." (Alex, [16:10])

• Improving Lead Magnets: Enhancing lead generation efforts by offering compelling incentives, such as free installation of specific lighting elements to attract and qualify leads.

  "We'll do the install for free. You just cover the cost of the lights for this tiny amount." (Alex, [20:05])

5. Layla – Publishing and Business Education

Background:
Layla runs multiple ventures, including a publishing house, luxury adventure book-writing retreats, a business school for women, and has recently launched a TV show. Despite impressive revenues, she faces scaling challenges due to spreading her focus across too many projects.

Key Challenges:

• Lack of clarity and focus due to managing multiple business lines.
• Difficulty in scaling operations without compromising quality and growth.

Alex's Insights:

• Prioritizing Core Business: Alex advises Layla to focus on the most profitable and scalable aspect of her business—in her case, the publishing and book-writing services—while letting go of or minimizing involvement in less scalable ventures.

  "You have to realize that like you can't pursue every opportunity. Not only can you pursue every opportunity, you basically have to say no to every opportunity to be able to make one opportunity worth pursuing." (Alex, [24:12])

• Channeling Creative Energy: Emphasizing the importance of directing creative efforts towards business areas that add tangible value rather than diluting resources across multiple projects.

  "Channel your creative energy into something that is accretive to the business, something that adds value, rather than something that attracts value." (Alex, [26:56])

Alex's Foundational Rule on Business Changes

Throughout the episode, Alex shares a critical framework he uses to evaluate business modifications:

• 20% Rule: Whenever implementing a new change, expect a 20% temporary decrease in performance due to the costs and disruptions of change.

  "Every time I want to go improve one of those things, four others drop... It's not worth the cost of change." (Alex, [00:02])

• Risk-Adjusted Improvements: Only pursue changes that promise at least a 40-50% potential improvement to justify the initial performance dip.

  "If I have to make a change that guarantees a 20% loss for a potential 5% increase... Bad trade." (Alex, [28:30])

• Idea Management: Maintain a "Big List of Ideas" where all potential improvements are recorded but not immediately acted upon. This list helps prioritize high-impact changes without overwhelming the business operations.

  "Keep the list down, sleep on it. If you're still thinking about that idea a month later, then it probably has some legs." (Alex, [29:51])

Tactical Takeaways

1. Focus on Core Strengths: Prioritize and optimize the aspects of your business that are already performing well before venturing into new areas.

2. Decommoditize Your Offer: Differentiate your services by removing friction points and adding unique value propositions to stand out in a crowded market.

3. Manage Change Strategically: Use the 20% rule to evaluate the potential impact of changes, ensuring that the benefits outweigh the temporary setbacks.

4. Streamline Business Operations: Avoid spreading resources too thin across multiple projects. Concentrate on scaling core businesses that offer the highest returns.

5. Enhance Lead Generation: Develop compelling lead magnets and offers tailored to your target audience to sustain steady business growth.

Conclusion

Episode 913 of The Game with Alex Hormozi offers invaluable insights into the intricacies of lead generation and sales closing. Through real-world examples and Alex's strategic guidance, listeners gain a deeper understanding of how to balance these critical aspects to drive business success. Whether you're grappling with scaling challenges, optimizing sales processes, or striving to differentiate your offerings, this episode provides the tools and mindset needed to navigate these challenges effectively.

Notable Quotes:

• "Every time I want to go improve one of those things, four others drop... It's not worth the cost of change." – Alex Hormozi ([00:02])

• "There's no reason to not just become even better at the thing that you're currently doing and compound the competitive advantage that you have." – Alex Hormozi ([05:38])

• "Good is basically the absence of hard... What are all the reasons that somebody who sucks at this sucks? And let's fix all of those things." – Alex Hormozi ([13:01])

• "You can't pursue every opportunity. Not only can you pursue every opportunity, you basically have to say no to every opportunity to be able to make one opportunity worth pursuing." – Alex Hormozi ([24:12])

• "If you don't see an adjusted, risk-adjusted 20% improvement... then make no change at all." – Alex Hormozi ([29:29])

This comprehensive summary encapsulates the core discussions, insights, and actionable strategies presented in Episode 913, providing a clear roadmap for entrepreneurs aiming to optimize their lead generation and sales closing processes.