“You’re not making as much money as you want because you’re not getting as many leads as you need to sell stuff. You’re probably not getting as many leads as you need because you’re not giving away enough free stuff.” Alex Hormozi (in his recent video)
Click Here to Get $100M Leads Book
This article is a sneak preview of Alex’s $100M Leads book. Just a snippet from one chapter, and at the end, I will give you a seven-point checklist that you can use to immediately deploy this in your business. So you can get more leads and also make more money for less.
Also read: $100M Leads Alex Hormozi: Release Date, Chapters, and Review
Why do People Buy From You?
People buy based on a prediction of future value, so they buy because they predict that they will get value from you later.
What is the easiest way to get someone to predict that they will get value from you after they buy?
The answer is to give them value before they buy.
How to Get Leads for Your Offer?
There are two fundamental ways to get leads:
1. Make a direct offer to someone, such as “I will wash your car for $100,” and add some extra value to make it more appealing.
2. Offer a lead magnet, a complete solution to a narrowly defined problem. Unlike offering a partial solution, a lead magnet provides value and builds trust with potential customers.
Core Offer vs. Lead Magnet
A lead magnet differs from your core offer. Core offer is the main thing you sell to make the most money. By offering a valuable lead magnet, you can attract more potential customers and increase trust, ultimately leading them to your core offer.
A lead magnet is a complete solution to a narrowly defined problem.
Many micro-steps happen to create a bigger solution. Let’s say you’re a house painter. There are a lot of micro-steps that have to happen for a house to get painted.
First, you’ve got to size up the house. Then, you have to give an estimate of the work. After that, you must do the design component and perform the 3D visualization. The bigger the thing is, the more steps there are.
You can pick up one of these painful steps for your prospect and provide the solution at a massive discount (free). The specific solution is your lead magnet.
When you offer them this massive discount, you build trust and relationships. When they get the solution to their first problem, another problem appears.
Also read: 100M Offers Alex Hormozi PDF Version: Download for Free
The Power of Lead Magnets
Let’s say you do massage, and you’re like, “I can’t get enough massage clients.” It’s usually because you need to give away more free stuff. Fundamentally, if you give something away for free, you almost always have demand for it. And if it’s good, you’ll have exponential demand for it.
If I give away a $10 massage to get people to come in, and then later, everyone buys packages of massages or a massage subscription from me. The massage subscription or the massage packages are my core offer, and the lead magnet would be the trial offer of the $10 or discounted massage.
People do those discounted massages, they give those trials, they give those Mini offers, the lead magnets on the front end because they make more money. If I go up to 100 people and say, “Hey, let me give you a massage for $100,” many people might say no; maybe one person would say yes.
If I were to say to the same 100 people, “I want to give you a massage for ten dollars,” I might get 20 people to say yes. Then, out of those 20, about a third of them might buy a hundred things after trying my massage.
So, you’d have one person paying a hundred dollars for a massage, whereas six people would pay thirty percent of the twenty dollars after receiving the initial trial.
In this case, my cost to acquire customers is the expense of delivering the lead magnet. If it costs me ten dollars to give the massage, I break even on my lead magnet.
If it costs me 20 dollars, I might lose 10 bucks. However, am I willing to lose 10 bucks on 20 people? So, I paid 200 dollars to get six convert customers worth two thousand. Probably.
Even if your lead magnet costs you money to deliver, it should still lower your total cost to get a new customer. That’s the secret, the sauce of lead magnets, and why they ultimately make businesses more money.
Big business owners think long-term; they are willing to give more upfront because they know they’ll make more.
Click Here to Get $100M Leads Book
$100M Leads Super Bowl of Entrepreneurship
You may be wondering why Alex caught a football. He will be hosting the Super Bowl of Entrepreneurship on Saturday, August 19th, where he will release his new book, “$100M Leads”.
It is the second book in the series after its Big Brother, “$100M Offers,” which has 15,000 five-star reviews on Amazon and has sold 400,000 copies through word of mouth.
Alex is making an ad because he talks about ads in the book and wants to prove that he knows what he’s doing. If that sounds interesting, and you want to be there, why would you not want to go to the Super Bowl?
Click Here to Get $100M Leads Book
Give More Value by Giving Away Free Stuff
Many people are afraid to give away free stuff because they think, what do I do if I give away all this value?
Give more value. That’s it.
If you don’t know how to give value, let me tell you, there are two types of value; get good enough to be able to give value on the front end before someone buys so they can get value on the back end.
One of the beautiful things about business and life is that when you solve problems, you create more problems if you’re broke. Being broke sucks when you have money. Taxes also suck; now, you may prefer those problems, but they are problems nonetheless.
Guide Customer Journey Strategically
We want to always know what the customer’s journey will be ahead of them, and we should because we’re the ones who’ve done this 100 times. Thus, we should know what the next problem is going to be.
If we put our thinking caps on, we say, “Hey, well, if there are six steps to this problem, why don’t I solve the first two? Then they will counter problem three, and I make that my paid thing.”
Now I completely solve problems one and two, but it naturally leads to problem three, which I can charge for.
Example
Let’s say someone is trying to lose weight, there are a lot of steps that have to occur.
Alex says, “I like to think about this before, during, and after everything that has to happen to a customer.”
So, a customer wants to lose weight. Then, they’ll have to eat better, work out better, and need help regarding accountability to keep them on track, right?
Eat better, but what does that mean?
They will have to buy their groceries differently, prepare the food, and ensure it tastes good. They’re also going to have to get the right macros.
They will be like, ‘Oh wow, there are a lot of little things here.’”
Then you can jump up and say, “Hey? How can I make grocery shopping easier? Here’s a list, and here’s a pre-loaded Instacart grocery list. It’s designed for women who are at this weight, women who wear it this way, women who wear it that way, and men who wear it this way, all with different goals. It’s a lot, but it’s a one-time setup that can cater to a hundred different types of people, providing their customized grocery list.”
Now, that’s just problem one. What if, after that, what’s the next problem your customers can have?
They will bring it back and ask, “What do I do with all this?”
Then you have another problem: How do you clean and prep all the food you bought in under 60 minutes?
And you are going to solve it for them.
Then, what will you do in the next step?
Well, you will store it and portion it so they can bring it with them, so they don’t get that weird jelly in the bottom of your chicken breast Tupperware, which is nasty.
If you solve them very well, customers say, “Oh yes.” But I also need this, and you’re like, “Aha, well, I want me to tell you about that since you got such a good experience with this one.”
And because the customer had value, they will predict future value because you provided value before they bought.
Click Here to Get $100M Leads Book
The Power of Offering High-Value Freebies
Now, one thing that many people are afraid of giving away is stuff that costs them money. But if it costs you money, it will usually be valued at a significantly higher percentage in the marketplace.
So, sure, you can have a free PDF, sure, you can have a digital video series, whatever it is. But normally, unless it’s exceptional, people aren’t going to value that because that’s what a lot of people do.
Giving away actual free work can be beneficial. People will take you up; if you do the math, you will ultimately make more money. This is what I’m talking about: the difference between small and big business owners. They can incur calculated costs upfront for a much bigger back end.
Your free stuff should be better than their paid stuff. Everyone makes that quote, but they don’t actually do that. What your competition actually builds as their core offer, you do such a good job of it that you can give it away for free.
Then you become unstoppable, like, “Wow, that takes work, duh!” Also, would it be easy to become a multi-millionaire?
Also read: $100M Leads Book Summary – Alex Hormozi (Chapterwise)
7 Steps to Create a $100M Lead Magnet
Let’s round this out with the seven steps I think through when creating a $100M lead magnet for any business.
Step 1: Identify Your Target Audience and Problem
Figure out the problem you want to solve and for whom you want to solve it. If you know who you’re trying to solve it for, you will name it differently, approach the problem differently, market it differently, package it differently, and ultimately deliver it differently. You’ve to be very clear on who and what.
Step 2: How Do You Solve The Problem?
To figure out how you want to solve it. Inside the book, I talk about three different ways that you can solve an actual problem for a lead magnet. So, if I give a free assessment, I’m revealing a problem to somebody.
A different way would be giving a trial of something; they are usually more problem-aware and know their back hurts, so I just need to solve it for them. But, unless they keep paying me, it’ll come back, and there are other versions you can combine, which I talk about more in the book. You figure out how you want to solve it.
Step 3: How Do You Deliver The Solution?
Figuring out how you want to deliver it. There are lots of different delivery mechanisms.
Do I want to do it with information? Or, with a service? Or a physical product that I will send them that demonstrates it?
All of these are different ways to deliver on that one promise. Which of these will be perceived as the highest value from the prospect and increase the likelihood that they ultimately buy from me the most?
That would mean that you get the most interested and the most people taking the next step.
Step 4: How Do You Package It?
Then, how am I going to package this thing? How you package your lead magnet is the first thing someone will see to decide to consume it.
For example, in the $100M Leads book — Alex Hormozi had the title that tested, the subheadline that tested, and tested the image that he was going to put on the cover itself. His first test was $100M Advertising versus $100M Promotions, and advertising won 69 to 31. Then, he ran advertising against $100M leads and leads won 58 to 42.
Next, Alex compared $100M Leads to $100M Marketing, and leads won again, 58 to 42. So, he decided that “Leads” would be the book’s headline. Alex Hormozi also experimented with a couple of different images, and the one that ultimately won was the event image.
There’s a story of a book that went out on dating, and it tanked. The publishers went back and changed the cover of the book and the headline, but nothing else inside the book, and then it went on to sell over 10 million copies just by renaming the book.
You’re going to put all this time into delivering an amazing solution, so if there’s ever a most important step, it’s this one — how you name it and package it.
Step 5: Create Easy to Consume Content
Make it fast and easy to consume. People learn differently, so they have an audio version, a written version (hardback), and a digital reader version. Additionally, offer a video version.
In Alex’s last book, “$100M Offers,” around 350,000 copies have been sold, providing a decent data set. The consumption is split into quarters regarding the formats people use.
Writing the book takes so much effort, but making it available in various formats to more people in more places significantly increases the number of consumers.
Step 6: Create Easy to Consume Content
The key point here is that you must make it f***ing good. I say this because so many people give away sucky fluff in their lead magnets and their free sh***.
I use sh*** as the emphasis because they’re afraid or unable to give away more value. If you’re afraid of giving away more value, consider the alternative: you give away sucky fluff.
99% of the marketplace only consumes your sucky fluff and decides how much value you’re going to give to them in the future.
They will say, “Oh, he gave me sucky fluff. Why would I ever work with him?”
And here’s the unfortunate part: they then tell other people, “Hey, do you know Jason so-and-so? I checked out one of his things, which was sh**.”
So what happens is not only did this person not buy, but they actually got other people to not buy from you, who otherwise would have.
You can reinforce your reputation in the marketplace by continuing to overdeliver to people who will never give you money, and that’s okay because they know the people who will.
If a lead magnet is not good enough that people then tell others about it, I believe you have failed. Put 100% into something. If you’ve never put more than 10%, put 100% in and see what actually happens to the quality of the work you put out, your audience will appreciate that because people can tell the quality.
Step 7: Clearly State Your Call to Action (CTA)
To make it easy for them to take the next step. It is crucial to remember that we often neglect this aspect, despite putting in much effort. To increase the likelihood of conversions, your calls to action (CTAs) should be clear and straightforward rather than trying to be clever.
For example, simply say, “Go to Amazon and search my name to find the book,” or “Visit my website, acquisition.com, and watch the videos.” Be explicit about what you want people to do, and provide multiple options for them to take action. Just like offering multiple ways of consuming content, giving various avenues for taking action can significantly boost your response rates for CTAs.
Remember that different people have different preferences, such as preferring phones, while others like typing in URLs or scanning codes. So, making yourself available through various means ensures you cater to everyone’s convenience and preferences.
$100M Leads Launch Party
Believe it or not, Alex covered about 20 chapters of the $100M Leads book. He will have a big launch party for his book, and if the book’s already out, it’ll still be the same URL, acquisition.com/leads. Go there; it’ll be training or registration for the biggest event ever. It’s going to be awesome. He always over-delivers like wild for everyone to attend, so you can be there or be square.
