$100M Leads Audiobook Part 2 – Engage Your Leads Ep 587



In "100 Million Dollar Leads," Alex Hormozi delves into the intricacies of lead generation and engagement, emphasizing that mere leads are insufficient for business growth; instead, one must focus on acquiring engaged leads. Hormozi provides a comprehensive guide to understanding leads, distinguishing profitable ones from time-wasters, and the importance of offers and lead magnets in conversion. He shares his personal journey of trial and error, including a failed webinar attempt and a successful case study strategy that led to a full booking calendar. The book outlines a step-by-step approach to creating effective lead magnets, from identifying a specific problem to solve for potential customers to delivering valuable solutions that entice engagement. Hormozi stresses the significance of testing content, making it easily consumable, and providing clear calls to action to maximize lead engagement and conversion rates.

Summary Notes

Introduction to the 100 Million Dollar Leads Podcast

  • The podcast is a special edition which provides free access to chapters from the audiobook.
  • The focus is on understanding why leads alone aren't enough and how to engage leads effectively.

Welcome to the game. This is a special edition 100 million dollar leads podcast. These are the actual chapters from the audiobook that I've made free for everyone. Here we're going to be covering get understanding why leads alone aren't enough and how to engage your leads.

The quote sets the stage for the podcast, emphasizing the importance of not just obtaining leads but engaging them properly to maximize their value.

Defining a Lead

  • A lead is defined as a person you can contact, regardless of the method of obtaining their contact information.
  • The importance of a clear definition is stressed to avoid confusion and ensure everyone is on the same page.
  • Engaged leads, or people showing interest in what you sell, are distinguished from mere contact information.

So what's a lead anyways? [...] A lead is a person you can contact. That's all.

This quote provides the fundamental definition of a lead, which is foundational to the rest of the discussion on lead engagement and management.

The Importance of Engaged Leads

  • Leads alone are insufficient; the goal is to have leads that show interest in your products or services.
  • Engaged leads are the true output of effective advertising and the primary focus of the podcast's content.

But what I came to realize was leads alone aren't enough. We want engaged leads, people who show interest in the stuff you sell.

This quote highlights the key lesson that not all leads are equal, and the ones that truly matter are those that are engaged with your offerings.

The Journey to Understanding Leads

  • The speaker shares a personal anecdote about the difficulty in defining a lead, leading to the creation of their book on the topic.
  • The story illustrates the complexity of the concept and the speaker's commitment to clarity and understanding.

This book started because somebody asked me what a lead was. You'd think it would be simple, but I couldn't give a straight answer.

The quote captures the speaker's initial struggle to define a lead, which prompted a deeper exploration and ultimately the creation of their book.

Engaging Leads Through Offers and Lead Magnets

  • The speaker discusses their experience with webinars as a method to engage leads.
  • The detailed process of setting up a webinar is described, including the challenges and failures encountered.
  • The speaker eventually discovers that a simpler approach, offering a case study, was more effective in engaging leads.

I roi'd the entire tuition in my first week. Webinars rock I'm never going to make this work.

This quote reflects the frustration and comparison the speaker felt when observing others' success with webinars, which were not working for them at the time.

This accidental discovery showed me how getting leads actually works. You have to give people something they want.

The quote summarizes the critical lesson learned from the speaker's experience: the key to engaging leads is offering them something of value that they desire.

The Role of Lead Magnets in Engagement

  • Lead magnets are described as solutions to a specific problem that can attract leads interested in your core offer.
  • The speaker explains that lead magnets can be particularly useful for more expensive offers where the customer may need more information before purchasing.
  • The analogy of salty pretzels at a bar is used to illustrate how lead magnets can lead to a core offer.

A lead magnet is a complete solution to a narrow problem. It's typically a lower cost or free offer to see who's interested in your stuff, and once solved, it reveals another problem solved by your core offer.

This quote clarifies the concept of a lead magnet and its strategic role in guiding potential customers from an initial interest to the core offer.

The Value of a Lead Magnet

  • Lead magnets should be valuable and enticing enough to make customers want more.
  • They should solve a problem and lead customers to the core offer.
  • Time investment by the customer is an indicator of future monetary investment.
  • Free lead magnets still have a cost: the consumer's time.
  • A good lead magnet should feel like a steal, making the core offer seem worth the investment.

"The pretzels have a cost, but when done right, the drink revenue covers the cost of the pretzels and nets a profit."

This metaphor illustrates that a lead magnet (like pretzels) should attract customers to spend more on the core offer (like drinks), ultimately leading to profit.

"A person who pays with their time now is more likely to pay with their money later."

This highlights the psychological commitment a customer makes when they invest their time, which increases the likelihood of them spending money in the future.

Seven Steps to Creating an Effective Lead Magnet

Step 1: Identify the Problem and Target Audience

  • Choose a problem that is narrow and meaningful to solve.
  • Ensure the problem solved by the lead magnet leads to another problem that the core offer can address.
  • The problem-solution cycle is a continuous process in business and life.

"The first problem is picking the problem to solve."

This underscores the importance of selecting the right problem to address with the lead magnet, one that is specific and significant to the target audience.

"Every problem has a solution. Every solution reveals more problems."

This quote explains the ongoing cycle of problem-solving in business, with each solution leading to the discovery of new problems.

Step 2: Determine the Solution

  • There are three types of lead magnets: ones that reveal problems, offer samples and trials, and provide a step in a multi-step process.
  • Each type aims to solve a problem and reveal subsequent problems that the core offer can solve.

"There are three types of lead magnets, and each offers a different type of solution."

This outlines the different strategies for lead magnets, each tailored to address specific types of customer problems.

"All three solve one problem and reveal others."

This emphasizes that a good lead magnet not only solves an immediate problem but also introduces new challenges that the core offer can address.

Step 3: Delivery of the Solution

  • The lead magnet should be easy to consume and of high quality.
  • It should be so compelling that it feels irrational to refuse it.
  • The value provided by a business is a key factor in its success.

"Make your lead magnet so insanely good, people feel stupid saying no."

This advises that the lead magnet should be of such high value that customers feel they must take advantage of it.

"The business that provides the most value wins. Period."

This statement reinforces the idea that the amount of value a business offers is directly related to its success.

Step 4: Testing and Naming the Lead Magnet

  • Test different names to see which resonates most with the target audience.
  • The name should be appealing and reflect the value of the lead magnet.

No direct quote provided.

Step 5: Make the Lead Magnet Easy to Consume

  • The lead magnet should not be time-consuming or difficult to use.
  • It should provide immediate value and satisfaction.

No direct quote provided.

Step 6: Ensure High Quality

  • The lead magnet must be of such quality that it reflects positively on the core offer.
  • It should not be diluted or filled with fluff.

No direct quote provided.

Step 7: Follow-Up with Customers

  • Make it simple for customers to express interest in more offerings.
  • The lead magnet should naturally lead to the desire for the core offer.

No direct quote provided.

Learning in Different Formats

  • Consuming content in multiple formats can improve recall and understanding.
  • Speaker B suggests reading and listening to content simultaneously for better retention.

"If you consume a piece of content in multiple formats, it's stored in different parts of your brain, so you're more likely to recall it in different settings."

This highlights the cognitive benefit of engaging with content in various ways, which can lead to better memory retention and learning outcomes.

Types of Lead Magnets

Reveal Problems

  • Lead magnets that diagnose issues can be very effective.
  • They should clearly illustrate the problem and the cost of inaction.

"These lead magnets work great when they reveal problems that get worse the longer you wait."

This suggests that lead magnets that highlight urgent problems can create a sense of immediacy and need for the solution.

Samples and Trials

  • Offering a taste of the core offer can entice customers to purchase the full product or service.
  • Samples should be representative of the quality and benefits of the core offer.

"Be a drug dealer. Many people make money selling drugs legally and illegally. A free drug sample is a lead magnet."

This metaphorically advises to offer a powerful initial experience (legally) with the lead magnet, akin to a drug dealer providing a free sample, to ensure customers return for more.

One Step of a Multi-Step Process

  • Giving away a valuable part of a larger process can lead to sales of the complete package.
  • The lead magnet should demonstrate the quality and necessity of the remaining steps.

"When your core offer has steps, you can give one valuable step for free and the rest when they buy."

This strategy involves providing a portion of the service or product to showcase its value, leading customers to purchase the full offering to complete the process.

The Power of the Dressing Room

  • The dressing room serves as a physical example of a lead magnet, allowing customers to try before they buy.
  • It combines the three types of lead magnets: trial, problem revelation, and a step in a process.

No direct quote provided.

Creating an Effective Lead Magnet

  • A lead magnet should reveal a problem, provide a taste of the solution, and present itself as part of a larger package.
  • Different types of lead magnets can be used, such as software, information, services, and physical products.
  • It's beneficial to create multiple versions of a lead magnet and rotate them to keep advertising fresh and to identify the most effective versions.

"So if you can, try and get a lead magnet that does all three reveal a problem, give them a taste of the solution, and show it as a small piece of a total package."

This quote emphasizes that a lead magnet should not only highlight an issue but also offer a glimpse into the solution and suggest its part in a broader context.

Delivery Mechanisms for Lead Magnets

  • Software lead magnets offer tools like spreadsheets or calculators that perform specific tasks for the user.
  • Information lead magnets teach something through courses, lessons, or interviews.
  • Service lead magnets involve doing work for free, like performing website audits or running ads.
  • Physical product lead magnets provide tangible items like books or assessment charts.

"Delivery mechanisms there are unlimited ways to solve problems, but my favorite lead magnets solve them with software, information services, and physical products."

This quote outlines the speaker's preferred methods for solving problems through different types of lead magnets, highlighting their versatility and effectiveness.

Testing the Lead Magnet's Appeal

  • The importance of a lead magnet's headline is paramount, as it greatly influences engagement.
  • Testing should focus on the headline, images, and subheadline to optimize attraction.
  • Minor changes in wording can significantly impact the success of a lead magnet.

"David Ogilvy said, when you've written your headline, you've spent eighty cents of your advertising dollar."

The speaker quotes David Ogilvy to underscore the critical role of a headline in advertising and its disproportionate impact on reader engagement.

Maximizing Lead Magnet Consumption

  • Making the lead magnet easy to consume is crucial for increasing engagement.
  • Lead magnets should be accessible across devices and formats to cater to different preferences.
  • Availability and simplicity in accessing services or products encourage more people to engage with the lead magnet.

"People prefer to do things that take less effort. Duh. So if we want more people to take us up on our lead magnet and consume it, we've got to make it easy."

This quote highlights the common-sense principle that ease of use is a key factor in increasing the uptake and consumption of a lead magnet.

Providing Exceptional Value with Lead Magnets

  • The quality of a lead magnet must be high, offering valuable insights or solutions that compel users to engage further.
  • The lead magnet should provide so much value that users feel an obligation to pay for additional services or products.
  • The reputation of a business can be built or destroyed based on the perceived value of their free offerings.

"Give away the secrets, sell the implementation."

The speaker advises that sharing valuable knowledge freely can build trust and perceived value, which in turn can lead to sales of services or products that implement the shared knowledge.

Importance of High-Quality Lead Magnets

  • Lead magnets should be as good as paid products to maintain reputation and provide value.
  • High-quality lead magnets can convert leads into customers by delivering significant value.

"our lead magnets as good as your paid stuff. Your reputation depends on it. Provide value."

This quote emphasizes the importance of creating lead magnets that match the quality of paid offerings to maintain a good reputation and provide genuine value to potential customers.

Crafting Effective Calls to Action (CTAs)

  • A CTA should be clear and instruct the audience on the next steps, such as calling a number or clicking a button.
  • Good CTAs use simple, direct language and provide immediate reasons for action.
  • Reasons should be compelling, such as scarcity or urgency, to motivate immediate action.

"A good CTA has two things. One, what to do, two reasons to do it right now."

The quote outlines the two essential components of a successful call to action: clear instructions and a compelling reason to take immediate action.

Utilizing Scarcity and Urgency

  • Scarcity involves highlighting the limited availability of an offer to increase its perceived value.
  • Urgency encourages quick action by creating a time constraint on the availability of an offer or bonus.
  • Both scarcity and urgency are effective tactics to prompt immediate responses from leads.

"Scarcity scarcity is when there's a limited amount of something... Urgency is when people act faster because they have a short amount of time."

This quote defines scarcity and urgency, two psychological triggers that can effectively drive people to take action more quickly.

Ethical Scarcity as a Strategy

  • Ethical scarcity is about advertising real limitations, such as capacity or inventory, to create a genuine sense of scarcity.
  • It is important to use actual business limitations to ethically motivate leads to act quickly.

"So the best strategy I know for scarcity is reality."

The quote suggests that the most ethical and effective scarcity strategy is to base it on real limitations within the business.

Pro Tips for Maximizing CTA Impact

  • Time-limited bonuses are a tactic to enhance CTAs without altering core pricing or products.
  • Creating a rotation of valuable bonuses can incentivize action without capping sales.
  • Even nonsensical reasons can increase the likelihood of people taking action.

"Pro tip the urgency tactic I use most I put time limits on bonuses."

This quote shares a specific tactic of using time-limited bonuses to create a sense of urgency that encourages leads to act quickly.

Lead Magnet Economics

  • A well-crafted lead magnet can lower the cost of acquiring a new customer by increasing the number of engaged leads.
  • Delivering value before purchase can lead to a higher number of leads for the same advertising cost, thereby reducing overall customer acquisition costs.

"Even if your lead magnetic costs money to deliver, it should still lower your cost to get a new customer."

The quote explains that the investment in a lead magnet should ultimately lead to a reduction in the cost of acquiring new customers due to increased engagement and conversion rates.

Action Steps for Lead Magnet Success

  • Create a valuable lead magnet by identifying the problem to solve and determining the delivery method.
  • Ensure the lead magnet is interesting, easy to consume, and of high quality.
  • Communicate the next steps clearly and frequently, using scarcity, urgency, and other reasons to act.

"Action step give a clear, simple, action-oriented CTA. Then give them a reason why using scarcity, urgency, and any other reasons you can think of and do it often."

This quote provides a concise action plan for creating a lead magnet that includes a clear call to action and reasons for immediate engagement.

Conclusion and Next Steps

  • The book aims to demystify the lead generation process and emphasizes the need for engaged leads.
  • A powerful lead magnet should attract ideal customers, engage more people, and increase the likelihood of purchase.
  • Upcoming content will focus on advertising lead magnets and acquiring the first or next five clients.

"Next up, we've armed ourselves with a powerful lead magnet. Now I'll show you the four ways we can advertise it."

The quote transitions to the next topic, which will cover strategies for advertising the lead magnet to generate leads.

Upcoming Episode Preview

  • The next episode will cover essential strategies for lead generation and client acquisition.
  • The content is designed to be especially relevant for businesses seeking their first or next set of clients.

"In the next episode, we're going to have a 29 minutes banger on getting leads, the core four, and warm outreach."

This quote previews the next episode's focus, which will provide in-depth strategies for lead generation and client acquisition.

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