Alex Hormozi shares his journey from struggling with gym launch during the COVID-19 pandemic to mastering cold outreach and transforming his businesses into multimillion-dollar enterprises. Facing dire circumstances with market downturns, advertising hurdles, and the closure of brick-and-mortar businesses, Hormozi turned to cold outreach as a lifeline. He details the process of building a cold outreach system, emphasizing the importance of personalization, offering significant value upfront, and the necessity of high volume and persistence. Hormozi's approach involves meticulous tracking of metrics, leveraging technology for automation, and targeting specific leads with a crafted message. He outlines the key lessons learned, including the benefits of operating in secrecy, the reliability of cold outreach, and its resistance to platform changes. Hormozi's narrative underscores the resilience and innovation required to pivot and thrive in challenging business landscapes.
"This is everything that I learned step by step on how to create a cold outreach system that ended up creating literally tens of millions of dollars for me personally, because it is what created or what transformed gym launch into a sellable asset."
The quote emphasizes the effectiveness of Alex's cold outreach system in significantly increasing revenue and making his business a valuable asset. It sets the stage for the detailed explanation of the system that follows.
"Covid-19 raged in a matter of months. 30% of my customers went out of business... Apple did a software update that crippled our ads... I carried the bucket."
This quote highlights the dire circumstances faced by businesses during the pandemic, specifically the challenges Alex encountered with customer loss and advertising issues, prompting the need for an alternative lead generation strategy like cold outreach.
"We're 100% cold outreach... We're doing about 10 million a month right now... I've never started a team, but I bet I could figure it out."
The quote reveals the potential of cold outreach as demonstrated by the salesman's previous company, inspiring Alex to consider implementing a similar system in his own business.
"September, zero sales... May, 30 sales, $480,000 in revenue. Today, cold outreach generates millions per month."
This quote provides a timeline of the cold outreach program's growth, illustrating the patience required and the eventual success of the system.
"I learned five important lessons from this experience... I hope to be that person for you now."
Alex summarizes the key lessons learned from his experience with cold outreach, offering to guide others through the process based on his insights.
"Cold outreach has one key difference from warm outreach. Trust strangers don't trust you."
The quote emphasizes the fundamental challenge of cold outreach: building trust with individuals who have no prior relationship with your business.
"The more people reach out to, the more engaged leads you get."
This quote reinforces the idea that success in cold outreach is directly related to the volume of outreach attempts.
"First, we get a targeted list of leads. Next, we need to know what to say to get them to reply. Third, we make up for lower response rates by increasing the volume and type of our reachout attempts."
The quote outlines the systematic approach to tackling the challenges of cold outreach, emphasizing the importance of targeted leads, effective messaging, and high outreach volume.
"First, I use software to scrape a list of names. Second, I pay brokers to assemble me a list of targeted leads. And if neither of those work, I manually scrape a list of names myself."
This quote outlines the three-step process used by the speaker to create targeted lead lists, emphasizing the progression from automated to manual methods.
"If you can search the database, so can everyone else. But if you assemble a list of names yourself, it's less likely that person has already received many cold reachouts from other companies, so they're the freshest downside."
This quote highlights the advantage of manually assembling a list: the leads are less likely to be over-contacted by competitors, making them "fresher" and potentially more responsive.
"Personalize it. Act like you know them to get more leads to engage. We want the message to look like it's from someone they know."
This quote explains the importance of personalization in outreach efforts, suggesting that messages should be crafted as if the sender has a pre-existing relationship with the recipient.
"The goal is to demonstrate big value as fast as possible. Give yourself a downhill battle by giving away something crazy."
The speaker emphasizes the strategy of offering significant value quickly to win over leads, suggesting that an irresistible offer can greatly enhance the chances of engagement.
"We offered a game planning session as our lead magnet. Some gyms took us up on it, but most didn't. We needed something better."
This quote reveals a specific example of how the speaker's initial lead magnet did not perform well and the need to offer something more compelling.
"Volume once we have our list of names, personal info, and our big sexy lead magnet, we need to get more strangers to see it."
The speaker stresses the significance of reaching a high volume of leads to increase the chances of successful outreach, suggesting the need for both a compelling offer and a wide distribution.
Automated delivery to the extent we can automating delivery unlocks huge scale as someone doesn't need to literally communicate the message to the prospect.
The quote emphasizes the significance of automating delivery to scale outreach efforts, as it removes the need for individual communication with each prospect.
If you've been enjoying this or you've been getting value from this chapter and any of the rest of the podcast episodes, if you could just take a second and ship this to a friend, just click the one button and send it to somebody or share it on your stories.
Alex is requesting listeners to share the podcast to help reach more people with their business education content.
Every day, artificial intelligence, deepfakes, and other technology advance. They become more indistinguishable from human communication.
This quote highlights the rapid development of technologies that can automate communication, making it more similar to human interaction.
The perfect combination for max leads is max personalization with max volume and with tech, you don't always have to sacrifice personalization for scale.
The quote suggests that the ideal scenario for lead generation is to maximize both personalization and volume, which is achievable through technology.
Contact each lead multiple times in multiple ways.
This quote advises on the importance of using various methods to contact leads multiple times to increase the likelihood of engagement.
Try again in three to six months and get an entirely new group of engaged leads from the same list.
The quote suggests that timing can be crucial and that leads may become more receptive after a certain period, making it worth attempting to re-engage them.
If you are new to an average team, shadow the best guy on the team, then double their inputs.
This quote advises newcomers to learn from the best and put in twice the effort to quickly improve their skills.
I could make a low ticket product a high ticket product if I sold a lot of them at once.
The quote reflects the strategy of increasing the value of low ticket products by selling them in bulk, either directly to affiliates or through commission-based sales by affiliates.
The person who runs it? Maybe you has to know the metrics of the sales process like the back of their hand, every single stat.
The quote stresses the importance of intimately knowing and tracking all metrics related to the sales process for successful cold outreach management.
My hope is that you can generalize the concept to whatever platform you use.
This quote explains the intention behind discussing the cold outreach methodology: to provide a conceptual framework that can be applied to various platforms.
So, like the phone example, you know you do well when the cost of doing cold outreach is less than three times what you make in profit from a customer.
This quote gives a benchmark for successful cold outreach, indicating that the costs should be significantly lower than the profits gained from a customer.
This method is labor intensive. Nearly all costs are in the form of labor.
This quote identifies labor as the primary cost factor in cold outreach, which is important for budgeting and ROI calculations.
That's how cold outreach works. Then you just add bodies. It is boring and tedious, but brutally effective.
This quote summarizes the cold outreach process as a simple yet monotonous task that, when scaled up with more workers, can be highly effective.
If you give a rep too many, They will waste them.
This quote emphasizes the potential for inefficiency if sales representatives are given more leads than they can effectively handle.
Example, I give you 70 leads. You give me back seven appointments, I pay you no leads left behind.
This quote provides a clear example of setting expectations and quotas for sales representatives, ensuring accountability and performance.
Most people dramatically underestimate the amount of volume it takes to use cold outreach.
This quote points out a common misconception about the effort required in cold outreach, which is crucial for setting realistic expectations.
Having an established outreach team is how we were able to sell gym launch.
This quote illustrates the value of a scalable and replicable cold outreach system in terms of business valuation and saleability.
To break past a million dollars per month, we automated the entire process of scraping, crafting and sending emails for one of our portfolio companies.
This quote showcases how automation can facilitate the scaling of cold outreach efforts to achieve significant revenue milestones.
This generates the business 40 engaged leads per day.
This quote provides a tangible outcome of the automated outreach process, demonstrating its effectiveness in generating leads.
Who yourself what hook plus lead magnet core offer where any private communication platform to whom a list scraped, bought or using software when every day seven days a week.
This quote outlines the basic components of a daily cold outreach checklist, providing a structured approach for entrepreneurs.
Don't set a daily goal below 100 and don't stop for 100 days minimum.
This quote sets a minimum standard for daily outreach volume and duration, emphasizing the commitment required for successful cold outreach.
Please don't hoard this to yourself. There's another entrepreneur who has a family and kids who needed this stuff as much as I needed it during the pandemic when I was trying to save my business.
This quote appeals to the listener's empathy and sense of community, urging them to share valuable insights with others who may benefit.
The next episode. Run paid ads. You'll enjoy it. I've run a lot of ads. We're pretty good at it, and I'll share how I do it.
This quote transitions to the upcoming topic, promising to share expertise on running paid ads, which complements the information on cold outreach.