Bookshelf

Book 1 of 46

$100M Leads

How to Get Strangers To Want To Buy Your Stuff

By Alex Hormozi

391 pages, 22 chapters

Frameworks: 46

The frameworks here are Alex Hormozi's, from $100M Leads. Claude read the book in Tom's Brain and linked it to his lessons.

How Tom uses this

$100M Leads backs four of Tom's lessons. Under each of his lessons, what the book says about it, and on which pages.

What it argues

Hormozi argues that leads are the missing step between an offer and a sale, and that the output that matters is an engaged lead, a person you can contact who has shown interest. There are only four ways one person can get them, the core four: warm outreach, posting free content, cold outreach and paid ads, and each is an inputs and outputs game that rewards volume, testing at the constraint and patience. A free lead magnet that solves a narrow problem lifts engagement and lowers the cost of a customer. Once you have maxed your own time you add leverage through four lead getters: referrals from customers, employees you train with the 3Ds, agencies you use to learn, and affiliates you launch and integrate. The whole system rests on unit economics (LTGP to CAC of at least 3 to 1, with client financed acquisition) and on the discipline to keep rolling the die until it lands.

Worth keeping

  • A lead is a person you can contact, and engaged leads are the true output of advertising (p. 42, p. 43).
  • The core four are the only four ways to let people know: warm outreach, posting content, cold outreach and paid ads (p. 77).
  • Give away the secrets and sell the implementation, because the value of your free stuff builds or wrecks your reputation (p. 66, p. 67).
  • A content unit is hook, retain, reward, and short and long form are the same units linked together (p. 115 to p. 129).
  • Give until they ask: give in public and ask in private, and keep the give to ask ratio high (p. 134).
  • Measure LTGP to CAC, aim for 3 to 1 or better, and use client financed acquisition so first 30 days cash pays for the next customer (p. 225, p. 227).
  • More, Better, New, with a testing log and one test per platform per week at the constraint (p. 238 to p. 244).
  • Referrals beat churn is the growth equation; goodwill is the gap between price and value (p. 267, p. 270).
  • Train with document, demonstrate, duplicate, and if they get it wrong the checklist is wrong (p. 299 to p. 301).
  • Use agencies to learn a method or platform, with a purpose and deadline, then bring it in house (p. 314).
  • The right action in the wrong amount still fails, so work open to goal (p. 368, p. 369).
  • You cannot lose if you do not quit (p. 387).

The questions it answers

  • What is content operations actually worth to a company, in money?

    He prices an in-house content team as payroll divided by engaged leads, citing $100,000 a month for 30,000 engaged leads, or $3.33 each (p. 303).

  • What makes a format repeatable, as opposed to a hit that happened once?

    Every piece is a hook, retain and reward unit built from topic, headline and format, with lists, steps and stories keeping people curious (p. 116 to p. 127).

  • How do you build a personal brand that generates inbound rather than requiring outbound?

    Post great free content, give until they ask, and let the audience self-select; 78% of his clients had consumed at least two long form pieces before booking (p. 134, p. 145).

  • Which of my stories travel, and which only feel like they should?

    He tests headlines and names before launch and says the audience decides, so the way to find out is to post and watch whether the audience grows (p. 59, p. 128).

  • How do you price and sell a tool you built for yourself?

    Use a lead magnet to give away the secrets and sell the implementation, then grow through affiliates who sell or give away your offer (p. 66, p. 344).

  • What is the smallest team that can produce at the volume I am used to?

    He trades 40 hours of doing for 4 of managing, trains with checklists, and works out whether payroll per engaged lead keeps LTGP to CAC above 3 to 1 (p. 293, p. 303).

The frameworks

46 frameworks, one animation each

Every framework, step by step

Growing a business

The two ways a business grows, with the four ways to get more customers.

  1. Get more customers. Get more leads, better leads, cheaper leads, and get them reliably from many places.
  2. Make them worth more. The other half of growth, which this book leaves to other volumes.

From chapter: The Problem This Book Solves, pp. 31–40

Seven steps to creating an effective lead magnet

A method for making a free or low-cost offer that gets strangers to engage.

  1. Figure out the problem and who has it. Pick a narrow, meaningful problem whose solution reveals the next problem your core offer solves.
  2. Figure out how to solve it. Choose between revealing a problem, a sample or trial, or one step of a multi-step process.
  3. Figure out how to deliver it. Choose software, information, services or physical products.
  4. Test what to name it. Test the headline, then the images, then the subheadline.
  5. Make it easy to consume. Offer it in every format and at every time and channel you can.
  6. Make it darn good. Give away the secrets and sell the implementation.
  7. Make it easy for them to tell you they want more. Give a clear call to action plus reasons to act now.

From chapter: Engage Your Leads: Offers and Lead Magnets, pp. 44–78

The core four

The only four ways one person can let people know about their stuff, from combining warm or cold audiences with one-to-one or one-to-many.

  1. Warm outreach. One-to-one to people who know you.
  2. Posting content. One-to-many to people who know you.
  3. Cold outreach. One-to-one to strangers.
  4. Paid ads. One-to-many to strangers.

From chapter: Engage Your Leads: Offers and Lead Magnets, pp. 44–78

Problem-Solution cycle

A model for picking which problem a lead magnet should solve.

  1. Every problem has a solution. Solve a narrow, meaningful problem first.
  2. Every solution reveals more problems. The new problem is the one your core offer should solve for money.

From chapter: Engage Your Leads: Offers and Lead Magnets, pp. 44–78

Three reasons to act now

The reasons that make a call to action work.

  1. Scarcity. Limited supply; use real limits such as capacity, so it is ethical.
  2. Urgency. A short window, with bonuses or discounts that go away.
  3. Fraternity party planner. Make up any reason, because any reason beats none.

From chapter: Engage Your Leads: Offers and Lead Magnets, pp. 44–78

Warm reach outs in 10 steps

A method to get your first five clients from people who already know you.

  1. Get your list. Pull contacts from your phone, email accounts and social platforms.
  2. Pick a platform. Start with the one where you have the most contacts.
  3. Personalize your message. Use something you know about the contact as the reason to reach out.
  4. Reach out. 100 people a day, up to three times each.
  5. Warm them up. Reply with A-C-A to build rapport and steer to your offer.
  6. Invite their friends. Make an offer built on the value equation, asking who they know.
  7. Make them the easiest offer in the world. Make it free for the first five.
  8. Start at the top. Move to the platform with the next most contacts.
  9. Start charging. Step the price up as people refer others.
  10. Keep your list warm. Give value regularly, then probe with the nine-word email.

From chapter: #1 Warm Outreach, pp. 79–108

A-C-A framework

A way to talk to anyone and guide the conversation to your offer.

  1. Acknowledge. Restate what they said in your own words.
  2. Compliment. Praise it and tie it to a positive character trait.
  3. Ask. Ask another question that moves towards your offer.

From chapter: #1 Warm Outreach, pp. 79–108

The value equation

Four elements that decide how valuable an offer feels.

  1. Dream outcome. What they want, the way they want it.
  2. Perceived likelihood of achievement. Results, reviews, guarantees and endorsements.
  3. Time delay. How soon they see results.
  4. Effort and sacrifice. The bad stuff they endure and the good stuff they give up.

From chapter: #1 Warm Outreach, pp. 79–108

Nine-word email

A one-line probe to find engaged leads on a warm list.

  1. Ask. Send: Are you still looking to [4 word desire]? with no images or links.
  2. Prioritise replies. Reach out first to those who answer.

From chapter: #1 Warm Outreach, pp. 79–108

The content unit

The smallest piece of content that grows an audience.

  1. Hook. Get people to notice by using topics, headlines and formats they like.
  2. Retain. Keep attention with curiosity, embedding questions through lists, steps and stories.
  3. Reward. Satisfy the reason they consumed it, measured as value per second.

From chapter: #2 Post Free Content Part I, pp. 109–131

Five topic categories

Where to find things to make content about.

  1. Far past. Lessons from your life connected to what you sell.
  2. Recent past. Stories from recent meetings, conversations and clients.
  3. Present. Ideas written down the moment they come.
  4. Trending. What the platform is paying attention to right now.
  5. Manufactured. An experience you create so you can talk about it.

From chapter: #2 Post Free Content Part I, pp. 109–131

Seven headline components

Elements that drive interest in a headline, from a meta-analysis of news.

  1. Recency. As new as possible.
  2. Relevancy. Personally meaningful to the reader.
  3. Celebrity. Prominent people.
  4. Proximity. Close to home.
  5. Conflict. Opposing ideas or people.
  6. Unusual. Odd, rare or bizarre.
  7. Ongoing. A story still in progress.

From chapter: #2 Post Free Content Part I, pp. 109–131

Lists, steps and stories

Three ways to embed questions that retain attention.

  1. Lists. Themed items with the count in the headline.
  2. Steps. Actions in a set order with an explicit reward.
  3. Stories. Events with a lesson, real or imaginary.

From chapter: #2 Post Free Content Part I, pp. 109–131

Give : ask ratio

How often to give value against how often to ask.

  1. Give. Reward the audience with value many times in a row.
  2. Ask. Make an offer after a valuable moment or occasionally in a separate post.
  3. Give until they ask. Let the audience come to you; give in public and ask in private.

From chapter: #2 Post Free Content Part II, pp. 132–153

Depth then width

Scaling a warm audience one platform at a time.

  1. Post on a relevant platform. Start with one.
  2. Post regularly. Make it a habit.
  3. Maximise quality and quantity. Short form up to ten times a day, long form up to five days a week.
  4. Add another platform. While keeping the first at the same pace.
  5. Repeat. Until every relevant platform is maximised.

From chapter: #2 Post Free Content Part II, pp. 132–153

Width then depth

Scaling by getting on every platform first.

  1. Post on a relevant platform. Start with one.
  2. Post regularly. Make it a habit.
  3. Move onto the next platform. While maintaining the previous.
  4. Continue. Until you are on all relevant platforms.
  5. Maximise everything at once. Repurpose content across platforms.

From chapter: #2 Post Free Content Part II, pp. 132–153

Integrated and intermittent offers

Two ways to weave promotions into content.

  1. Integrated. Put the ask in every piece, keeping the give : ask ratio high.
  2. Intermittent. Make many pure give pieces, then an occasional ask piece.

From chapter: #2 Post Free Content Part II, pp. 132–153

Three problems strangers create

The order in which to solve cold outreach.

  1. Get a way to contact them. Build a targeted list using software, brokers and elbow grease.
  2. Figure out what to say. Personalise, then give big fast value.
  3. Contact them until they are ready and able to listen. Automate delivery and distribution and follow up more times in more ways.

From chapter: #3 Cold Outreach, pp. 158–190

Building a list

Three ways to source a targeted lead list, from easiest to hardest.

  1. Softwares. Subscribe to scraping tools and test a representative sample.
  2. Brokers. Ask several brokers for sample lists to your criteria.
  3. Elbow grease. Join groups and communities and add members to the list by hand.

From chapter: #3 Cold Outreach, pp. 158–190

Volume levers

Three ways to get more chances to tell strangers about your offer.

  1. Automated delivery. Record the message once and send it to everyone.
  2. Automated distribution. Use dialers and blasts for emails, texts and voicemails.
  3. Follow up. More times and more ways, then start over in three to six months.

From chapter: #3 Cold Outreach, pp. 158–190

Four problems paid ads create

The steps for running a paid ad to cold strangers.

  1. Know where to advertise. Pick a platform you use, can target, can format for and can afford.
  2. Get the right audience to see it. Use lookalike audiences and basic filters.
  3. Make the best ad. Call out, value and call to action.
  4. Get permission to contact them. A landing page that matches the ad and captures contact details.

From chapter: #4 Run Paid Ads Part I: Making An Ad, pp. 191–219

Call out + Value + Call to action

The three core elements of every ad.

  1. Call out. Get the right people to notice with labels, yes-questions, if-then statements, ridiculous results, contrast, likeness and the scene.
  2. Value. Give them a reason to be interested using the value elements.
  3. Call to action. Spell out what to do next.

From chapter: #4 Run Paid Ads Part I: Making An Ad, pp. 191–219

What-Who-When framework

A way to generate many ad angles from the value equation.

  1. What. Know the eight key elements: dream outcome, likelihood, time delay, effort and their opposites.
  2. Who. Show how the offer changes the customer's status in the eyes of others.
  3. When. Run it through the past, present and future for them and the people they know.

From chapter: #4 Run Paid Ads Part I: Making An Ad, pp. 191–219

Three phases of scaling paid ads

How much to spend and when.

  1. Track money. Set up tracking before any spend.
  2. Lose money. Invest in learning; test with 2x the 30-day cash from a customer.
  3. Print money. Reverse the daily budget from the number of customers you want.

From chapter: #4 Run Paid Ads Part II: Money Stuff, pp. 220–234

LTGP to CAC

The efficiency ratio used to judge paid advertising.

  1. Work out LTGP. All money a customer spends minus the cost to deliver it.
  2. Work out CAC. The cost to acquire one customer.
  3. Compare. Aim for at least 3 to 1.

From chapter: #4 Run Paid Ads Part II: Money Stuff, pp. 220–234

Client financed acquisition

A way to scale ads without outside money.

  1. Cover the cost in 30 days. Collect more than the cost to get and fulfil a customer in the first thirty days.
  2. Use upsells. Add an immediate offer to close the gap.
  3. Recycle the cash. Pay off the card and acquire the next customer.

From chapter: #4 Run Paid Ads Part II: Money Stuff, pp. 220–234

More, Better, New

Three ways to get more engaged leads from the core four.

  1. More. Do more of what works until it breaks.
  2. Better. Test at the constraint, one thing per week per platform.
  3. New. Try new placements, then new platforms, then a new core four activity.

From chapter: Core Four On Steroids: More Better New, pp. 235–259

Rule of 100

A commitment to volume across the core four.

  1. Warm reach outs. 100 reach outs per day.
  2. Post content. 100 minutes per day and at least one release per day.
  3. Cold reach outs. 100 reach outs per day, using automation.
  4. Paid ads. 100 minutes per day making ads, and 100 days of running them.

From chapter: Core Four On Steroids: More Better New, pp. 235–259

Weekly testing schedule

How Hormozi runs tests in every company.

  1. Monday: review. Look at results and pick the winner for each platform test.
  2. Log it. Write the result in a log of all tests.
  3. Set the next test. Try to beat the best version; after four tries move to the next constraint.

From chapter: Core Four On Steroids: More Better New, pp. 235–259

Six ways to get referrals by giving more value

Build goodwill by mapping the parts of an ad to the customer experience.

  1. Call outs: sell better customers. Find what your best customers share and sell only to that profile.
  2. Dream outcome: set better expectations. Lower promises to give room to overdeliver.
  3. Likelihood: get more people better results. Find what the best did and make everyone do it.
  4. Time delay: make faster wins. Deliver in small increments and update often.
  5. Effort and sacrifice: keep making it better. Fix the most common problem every month.
  6. Call to action: tell them what to buy next. Keep selling after the first purchase.

From chapter: #1 Customer Referrals - Word of Mouth, pp. 260–289

Seven ways to ask for referrals

Combinations of incentive, form and timing that worked best for Hormozi.

  1. One-sided referral benefit. Pay your CAC to the referrer or the friend, with a three-way introduction.
  2. Two-sided referral benefits. Split CAC between both parties.
  3. Ask right when they buy. On the contract or checkout page.
  4. Referrals as a negotiation chip. A discount in exchange for introductions.
  5. Referral events. One to four weeks with points, credits or bragging rights.
  6. Ongoing referral programs. Talk about doing it with others all the time.
  7. Unlockable referral bonuses. Bonuses for referring and leaving a testimonial.

From chapter: #1 Customer Referrals - Word of Mouth, pp. 260–289

Six-step method to get people better results

How to raise average customer outcomes.

  1. Survey. Find customers with the best results.
  2. Interview. Find what they did differently.
  3. Compare. Look at the actions they had in common.
  4. Force new customers to repeat them. Build them into onboarding.
  5. Measure. Track speed and outcome across the average customer.
  6. Match the guarantee. Tie the conditions of the guarantee to those actions.

From chapter: #1 Customer Referrals - Word of Mouth, pp. 260–289

Internal core four

Using the core four to get employees instead of customers.

  1. Warm outreach. Ask your network.
  2. Cold outreach. Recruiting.
  3. Post content. Post job openings.
  4. Paid ads. Promote job postings.
  5. Customer referrals. Employee referrals.
  6. Affiliates. Associations, guilds and listservs.
  7. Agencies. Staffing firms.

From chapter: #2 Employees, pp. 290–307

3Ds of training

A method to turn employees into lead getters.

  1. Document. Write the checklist exactly as you do the job, and test that you can follow it for an A+ result.
  2. Demonstrate. Walk them through the checklist and fix it where they get confused.
  3. Duplicate. They do it while you watch, and you fix the checklist until the result matches.

From chapter: #2 Employees, pp. 290–307

Cost per engaged lead from payroll

How to work out returns from lead-getting employees.

  1. Cost per engaged lead. Total payroll divided by total engaged leads.
  2. CAC. Cost per engaged lead times engaged leads per customer.
  3. LTGP : CAC. Lifetime gross profit divided by CAC.

From chapter: #2 Employees, pp. 290–307

Agency agreement

Terms for using an agency to learn a skill instead of depending on it.

  1. State the purpose. I want to do what you do in my business, and I want to learn how.
  2. Set six months. Work together while the agency explains why it makes each decision.
  3. Train your team. Have the team learn it while the agency continues.
  4. Drop to consulting. Move to a lower cost arrangement once your team can do it.

From chapter: #3 Agencies, pp. 308–321

Next steps for using agencies

A six step sequence.

  1. Decide if an agency makes sense now. You need money first.
  2. Talk to many agencies. Do not be cheap.
  3. Use the agreement framework. Open with the purpose and deadline.
  4. Set a clear deadline. Force you and your team to learn.
  5. Use both teams. Until yours beats theirs regularly.
  6. Switch to discounted consulting. Then cut them loose.

From chapter: #3 Agencies, pp. 308–321

Build an affiliate army in six steps

A method to recruit and keep affiliates who get you leads.

  1. Find your ideal affiliates. Businesses with a warm audience full of people like your customers.
  2. Make them an offer. Call out, value elements and a call to action aimed at affiliates.
  3. Qualify them. Make them a customer, an expert, or both.
  4. Figure out what to pay them. Pay for new and repeat customers, up to your maximum allowable CAC.
  5. Get them advertising. Launch with whisper, tease, shout.
  6. Keep them advertising. Integrate your lead magnet or core offer into their offer.

From chapter: #4 Affiliates and Partners, pp. 322–355

Whisper, tease, shout

A launch sequence that builds curiosity then urgency.

  1. Whisper. Short hints and behind the scenes to build curiosity, every four to six weeks, then every two to three weeks.
  2. Tease. Reveal the product, publish the date and show the elements of value, weekly then twice weekly.
  3. Shout. Specific calls to action with bonuses, scarcity, urgency and guarantees, at least twice a day from three days out.

From chapter: #4 Affiliates and Partners, pp. 322–355

Three integration strategies

Ways to make affiliates a long term source of leads.

  1. Affiliates give your lead magnet away. It makes their offer more valuable and you upsell the leads.
  2. Affiliates sell your lead magnet. They keep the cash and you upsell your core offer.
  3. Affiliates sell your core offer. They get a higher share of lifetime gross profit and you only deliver.

From chapter: #4 Affiliates and Partners, pp. 322–355

Three-tier affiliate payout

Pay increasing shares of the maximum allowable CAC as affiliates prove themselves.

  1. Tier 1: 25% of CAC. Anyone who agrees to the initial terms.
  2. Tier 2: 50% of CAC. Once they activate.
  3. Tier 3: 100% of CAC. Once they sustain a level of performance.

From chapter: #4 Affiliates and Partners, pp. 322–355

One page advertising checklist

A single page plan for daily advertising.

  1. Pick the type of engaged lead. Customers, affiliates, employees or agencies.
  2. Pick Rule of 100 or Open To Goal. Commit to the daily actions.
  3. Fill out the checklist. For that daily action.
  4. Do it daily. Until you can afford to pay someone else to do it.
  5. Repeat. Make employees the next target lead type and start again.

From chapter: Advertising in Real Life: Open To Goal, pp. 365–374

Open to goal

Rule of 100 for the big kids.

  1. Set a specific outcome. For example five new members a day.
  2. Work until the outcome is reached. No matter how long it takes.
  3. Finish early if you hit it. The reward for efficiency is time.

From chapter: Advertising in Real Life: Open To Goal, pp. 365–374

The seven levels of advertisers

A roadmap used to scale portfolio companies from a few million a year to $100,000,000+.

  1. Level 1. Your friends know about the stuff you sell. Primary action: warm outreach.
  2. Level 2. You consistently tell everyone you know. Primary actions: warm outreach and posting content.
  3. Level 3. You get employees to help you advertise.
  4. Level 4. Your product gets consistent referrals, aiming for 25% or more of customers.
  5. Level 5. You advertise in more places, in more ways, with more people.
  6. Level 6. You hire experienced executives to run departments without you.
  7. Level 7. Reserved for after a billion.

From chapter: The Roadmap - Putting it All Together, pp. 375–381

A Decade in a Page

The one-page recap of the book.

  1. Define a lead. You want engaged leads, not just leads.
  2. Lead magnets. Turn leads into engaged leads with an offer or lead magnet.
  3. The core four. Warm outreach, posting content, cold outreach and paid ads.
  4. More Better New. Find the constraint, test, then do more.
  5. Four lead getters. Customers, employees, agencies and affiliates.
  6. Real world. Rule of 100, Open to Goal and the five step one-page plan.
  7. Seven levels. The $100M leads machine in action.

From chapter: A Decade in a Page, pp. 382–391

The Many Sided Die

A fable about persistence in learning to advertise.

  1. Roll. Keep rolling red or green.
  2. Reds turn into greens. Each green turns another red side green.
  3. Do not quit. Quitting is the only way to lose.

From chapter: A Decade in a Page, pp. 382–391

More by this author

Working with Tom on this

Tom works with creators and founders one to one, from a single session to a fractional role. Work with Tom

Back to the bookshelf