Podcast Summary: "Throwback: $100K Per Month, with No Employees | Ep 836"

Title: The Game with Alex Hormozi
Host: Alex Hormozi
Episode: Throwback: $100K Per Month, with No Employees | Ep 836
Release Date: February 12, 2025

1. Introduction

In this compelling throwback episode, Alex Hormozi delves into his transformative journey from having no money and no employees to generating $100,000 in monthly profits within his first month. Drawing from his personal experiences and entrepreneurial insights, Alex presents a replicable framework for creating high-leverage, low-cost income streams applicable across various industries.

2. Alex's $100K/Month Framework

a. The Core Steps

Alex outlines a three-step framework essential for building a profitable business without initial capital or a team:

1. Create a Grand Slam Offer: Develop an irresistible proposition that provides significant value to customers, minimizing their perceived risk.
2. Run Basic Advertising: Utilize straightforward advertising methods to generate leads.
3. Upsell Services: Convert leads into high-value customers through effective sales techniques.

Notable Quote:
"All you got to do, no matter what industry you're in, is learn one, how to make a grand slam offer. Two, how to run a basic ad to get people to raise their hand, and three, how to upsell those people into a service."
— Alex Hormozi [00:39]

b. Application in Gyms

Using his experience with a chain of gyms, Alex demonstrates how he implemented this framework:

• Advertising Strategy: Ran Facebook ads promoting a six-week weight loss challenge, directing leads to a landing page where prospects could book consultations.
• Lead Conversion: Personally followed up with leads to confirm appointments, enhancing engagement with personalized touches like customized video messages.
• Sales Approach: Offered a compelling challenge with a satisfaction guarantee, reducing the risk for customers and increasing conversion rates.

Notable Quote:
"I built a hundred thousand dollar per month profit business with no employees for less than $1,000 when I was 26."
— Alex Hormozi [01:24]

3. Scaling the Model to Other Businesses

Alex discusses how he extended this model beyond gyms to various brick-and-mortar businesses such as chiropractors and dental offices. By tailoring his grand slam offers and sales techniques to each industry, he was able to replicate his success across different markets.

Example:
With chiropractors, he offered a $20 consultation (normally priced at $200) and upsold treatment plans, ensuring profitability while providing value.

4. The Math Behind the Model

Alex breaks down the financial mechanics that enabled his $100K/month profit:

• Lead Acquisition: Spent approximately $10 per lead, achieving a 20% conversion rate.
• Revenue Calculation: For every $5,000 invested in ads, generated around $60,000 in revenue.
• Profit Margins: After deducting marketing costs and service fulfillment fees, maintained substantial profit margins.

Notable Quote:
"So if you're doing your math here, that's 12 to one. So if I put five grand into marketing, I get about 60,000 out."
— Alex Hormozi [02:56]

5. Mistakes and Lessons Learned

Alex candidly shares eleven critical mistakes he made while scaling his business, providing valuable lessons for aspiring entrepreneurs:

1. Overwhelming Facilities: Failed to plan adequately for the influx of clients, leading to operational strain.
2. Poor Partner Selection: Partnered with struggling facilities with bad reputations, negatively impacting his business.
3. Lack of Transparency: Did not clearly communicate costs and revenue expectations to partners.
4. No Formal Agreements: Operated without contracts, leading to misunderstandings and accountability issues.
5. Insufficient Documentation: Did not record sales calls or processes, hindering training and scalability.
6. Reputation Damage: Negative experiences from partners affected his personal and business reputation.
7. Underpricing: Initially sold services for lower prices, limiting profit potential.
8. Neglecting Content Creation: Missed opportunities to market organically through documented success stories.
9. Inadequate Customer Follow-Up: Failed to maintain consistent communication with leads and clients.
10. Inefficient Market Testing: Did not test different markets before full-scale investment, leading to wasted resources.
11. Limited Offer Complexity: Settled for selling services at lower price points instead of higher-ticket items.

Notable Quote:
"The biggest problem is that when I had this, like, I had a few bad gyms that ruined it. Some acted really sketchy, others sold clients to refund and signed back up. And unfortunately, since I was the one who sold them, I was the one left holding the bag."
— Alex Hormozi [12:52]

6. Key Takeaways: Becoming a Rainmaker

Alex emphasizes the importance of being a "rainmaker"—a skilled individual capable of generating consistent revenue without relying on commissions. The key components to achieving this include:

• High-Value Offers: Crafting offers that are easy to sell and provide substantial value.
• Effective Advertising: Running simple, targeted ads to generate quality leads.
• Proficient Selling: Mastering the art of upselling leads into higher-value services.

Notable Quote:
"Being a rainmaker is a skill that can feed you for life."
— Alex Hormozi [00:39]

7. Technical Setup Guide

In the latter part of the episode, Alex provides a step-by-step guide for the technical setup required to implement his framework:

1. Run Facebook Lead Ads: Create ads offering a free or low-cost service to capture leads.
2. Integrate with Google Sheets via Zapier: Automatically funnel leads into a Google Sheet for easy management.
3. Set Up SMS Notifications: Receive instant notifications for new leads to ensure timely follow-ups.

Notable Quote:
"So here's what you got to do. First, Google how to run a Facebook lead ad... Then you put a Zapier over to a Google sheet and then you get a zapier SMS notification that every time you get a lead, you get notified so you can call them and text them."
— Alex Hormozi [16:53]

8. Conclusion

Alex Hormozi's throwback episode serves as a masterclass in building a profitable, employee-free business from scratch. By sharing his successes and, importantly, his failures, Alex provides a transparent roadmap for entrepreneurs seeking to replicate his model. The episode underscores the value of clear offers, effective advertising, and robust sales strategies, all while highlighting the necessity of learning from mistakes to achieve sustained success.

Additional Resources:

At the end of the episode, Alex promotes a free "Scaling Roadmap" developed in collaboration with Layla, designed to help businesses navigate the complexities of scaling across various functions. Listeners are encouraged to visit acquisition.com/roadmap to access this personalized growth tool.

Notable Quote:
"If you like that or would like to hear more about it, go to acquisition.com you can apply anywhere on the page and talk to one of our team and see if we can help you get there."
— Alex Hormozi [21:42]