Welcome to The Game w/ Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned and will learn on his path from $100M to $1B in net worth.Wanna scale your business? Click here.Follow Alex Hormozi’s Socials:LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition Mentioned in this episode:Get access to the free $100M Scaling Roadmap at www.acquisition.com/roadmap
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The highest percentage of sales across any market come from word of mouth. It's from people telling other people about stuff and people seeing other people use products and being like, hey, what is that?
welcome to the game every business needs a growth flywheel and in this podcast i'm going to show you four different tactics to basically building the growth flywheel within the business so that eventually it doesn't require you to put the effort and money to advertise and promote it to drive growth but let the business itself create the inputs that then create the outputs
So every business begins with effort and money from the founder or investors that begin the business. And this is kind of the initial call it the spark that starts the business. So this goes into the business long term. You don't want effort and money to go into the business. If anything, you want those things come out of the business. But it starts with the inertia. We have to get it going.
And so from there, you begin to get customers, right? So you advertise, you sell, and people come in the door and they buy your stuff or they go to your site or whatever. Now, once customers come in, they get some sort of result. Now, after they get the result, you then have some sort of reviews or word of mouth that those results will generate.
And then that can then in turn get you more customers. And so this initial effort of money goes into the system. That gets you customers, those customers get results. Those results drive reviews and word of mouth, which then get you more customers.
The problem is, most businesses don't have a good process, and so all they have to do, their wheels look like this, effort and money, customers, result, more effort and money, customers, result, and they end up dumping a lot of effort out this way. And so this creates a linear system where all you do is you have to put more in and you get more out.
And that's okay, but if you want to build a system that becomes an asset that can grow itself, then what you want is something called a flywheel. And so a flywheel is a self-reinforcing system where every action or component builds momentum and drives the next, creating sustainable growth over time. And so in business,
It refers to a strategy where activities like customer satisfaction, word of mouth, referrals, and product improvement, so this is what they get from the result, improve and feed each other, making the whole system stronger and more reliable. So, let's talk about the four tactics to actually make this happen.
So, tactic number one, before I explain what this very poorly wrapped gift is, I'll tell you a story. When Layla and I were out in a different area traveling for some speaking thing, she had to go get her hair done or something. And so she quickly was looking on Yelp to try and find a good hair person. And when she was there, she looked at the reviews, unsurprisingly.
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