The Game with Alex Hormozi
Answering Your Top Business Questions for 1 Hour | Ep 851
Thu, 13 Mar 2025
Wanna scale your business? Click here.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.Follow Alex Hormozi’s Socials:LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition
Chapter 1: What business questions did Alex Hormozi answer?
I'm Alex Ramozy and I'm an investor and I own Acquisition.com. It's a big portfolio of companies, makes me more money than I'll ever need in the rest of my life. I had a hundred business owners who flew out to our headquarters to scale their companies. And so they asked me questions for an hour.
I try to do my very best to make the solutions as tactical as humanly possible so that you can, watching from home, immediately use them in your business.
First off, I have to say thank you for taking me out for dinner last time. That conversation that we had literally changed my life and changed my business. So yeah, appreciate that.
Can you tell the story of what happened?
For sure.
We had an event that was scheduled, had to get moved. The memo got passed down and everyone found out except for one sales guy. And he sold six people into an event that didn't exist. On like a random Monday, we had six people showing up, came from Israel. And he was like, hey, I'm here for the workshop. And I was like, this looks awesome for us. I'm really happy that we're in this situation.
We've always tried to come from the perspective of when you have something that gets messed up, you can't just refund somebody, because they're still net negative. He still flew from Israel. If I'd said, hey, my bad, here's the money back, he'd still be like, screw this guy. And so we had the team spend the day with the six, and then we took them out to dinner.
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Chapter 2: How do you handle customer service mistakes?
And I bring that up just because it was a great example of something that took me too long to learn, was that you can't just make it right. You have to make it more than right in order to actually make it right. That was obviously a super unfortunate situation. And every business, if you have humans, you make mistakes. And so that was a mistake that we had made.
I remember hearing the stat from Disney, which is that it takes 37 magical moments to overcome one tragic moment. And so the moral of that statistic is not let's do 37 magic moments, it's avoid the tragic moments if at all possible.
But if you do find yourself in a tragic situation, here's an interesting thing that Layla taught me, which is that, believe it or not, the people that you wrong and then supercompensate to make it super right become your biggest ambassadors.
He flew back out and he gave such a heartfelt story that it took somebody who was negative and I think, from at least what it sounded like, he was super positive towards us. And I think that that's, in some ways, as terrible as it is, when you do have one of those tragic moments, just see it as an opportunity to flip someone from a hater into an ambassador.
Rather than being like, oh, we gotta give these people refunds. It's like, no, we actually get to build our reputation and decide what kind of company we wanna be.
Where we're stuck at right now, so we're selling the back end off for $1.95 a month for semi-private or four months for $5.95. Our churn for both of those is 50%, so weighted it's 30% churn. And the reason why we've got such terrible churn is nobody shows up. Like 7% of our student body actually shows up to the calls and actually gets the value from the thing they purchased.
What's the onboarding look like?
So we have the closer get them to see the calendar of we have eight sessions a week that they can join. So they showed them the calendar. They say, OK, which one of these do you think you can come to? And then they get them to say, OK, this one. And then the closer says, OK, I'm going to tell Jenny who's the coach on that call. She's going to be expecting you.
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Chapter 3: What onboarding strategies improve customer retention?
There's two there's two kind of like. different angles to attack this. One is the kind of like logistic side, which I'm going to cover first because it's easy and just process stuff. And the other is kind of like the bigger, more amorphous stuff, which is like, how do I make our thing easier and more enjoyable for people to kind of experience?
On the logistic side, I'm sure that you're on my email list. If we had dinner, you better be on my email list. By the way, have you got anyone here read the Mosey Minute? Anyone? I think it's some of the best stuff I've put out. Anyways, it's really good. I think it's really good. I spend my Sundays on it. Anyways, so BamFam is a way of life. So book a meeting from a meeting, right?
And so the sales guy should obviously book to the onboarding call, right? Or the whatever. I do think that you probably need to add one onboarding call that's specific to the person, not just have them drop in. How much do you want this to work? Okay, so this is what I would recommend doing. You'll probably want to do something in the neighborhood of four to six sessions that are one-on-one.
I'm just being like, now if you need to adjust price in order to do it, fine. But it's four to six sessions of one-on-one before they kind of like qualify to go into the kind of the group setting. And so it's like you will personally onboard them so that they have this way better buy-in. They don't feel like they're just like in no man's land and just getting tossed in the middle of a conversation.
But you kind of like on-ramp them. After you have the onboarding, which should be, and you can cut, I mean, at the very beginning, just do two, you know what I mean, just to start, and then you can kind of see how it goes. From there, you basically want to keep bamfamming
per session, so all the people are showing up, the last five minutes I would say, okay everybody, let's pull up the calendars, when are you guys showing up again? Great, and I would book it with everybody so that I'm keeping people forward. And you have to back that up with probably the reminder sequence that they're going to get because it's actually a scheduled session.
So they should get automated reminders and they should probably get a manual reach out from the person who's running the session of the people who are supposed to attend. at the very least do the automated one, and that would probably get a huge amount of, that will probably do a lot. And so this is actually, believe it or not, this is an onboarding process for a gym.
So if you have large group training, if you take people and just toss them into the group, it's much harder than having kind of a more dedicated onboarding experience. The ideal is you do like six one-on-one sessions with someone, they feel more comfortable in the gym, they understand people, they understand how the vibe, the culture is, and then they kind of graduate into the group sessions.
And so what happens also is that the group sessions are now on a pedestal. It's like you're not ready for that yet, right? It's like you gotta earn that. And all of a sudden it becomes the prize that they earned and now they got onboard. Does that make sense? Can you see how that would work? Yeah, so this would probably be the... Yeah.
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Chapter 4: How can you scale your marketing budget?
Later on, sometimes you have people who you're like, okay, this person's a little different than our vibe, they're not going to be oil and water, but they have this massive skill set that we can use and this tiny deficiency that is around this stuff that we can be transparent with them up front that they need to fix.
I've seen this happen again and again and again where a manager or a leader talks to somebody else and says, hey, and then uses amorphous terminology that's very hard to pin down to basically say, change your behavior. And they're like, but how? And they're like, change it. And you're like, OK, I don't know what that means.
And so the reason I'm so obsessive about operationalizing terms like what is patience, what is courage, what is humility, what do these terms actually mean in terms of behaviors? Like patience is figuring out something to do in the meantime. Like if you do figure out something to do in the meantime, you're by default being patient.
And so it's telling someone what they actually have to do, not who they have to be. Stop being lazy is very hard for someone to solve. It's like I keep telling her to not be lazy and she just keeps being lazy. But you have to break the term down into what behaviors you describe as lazy. Because when you talk to your partner or you talk to somebody else, you say, hey, Sarah's kind of lazy.
Have you noticed that? there are things that she did that you observe that you ascribe the label lazy to. And so you have to think more deeply, like what did they do to deserve the title? And it might be like they don't respond quickly to Slack messages.
These are things that if you said, hey Susan, instead of insulting her and saying, hey, you're lazy, instead we'd say, hey, you don't respond to Slack messages quickly enough. You aren't responding after hours and our hours keep going until 9 p.m. and you're not responding until after five. And so, for this week, I want you to focus just on responding to Slack messages.
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Chapter 5: What should you focus on in B2C versus B2B?
So let's turn on notifications, let's turn it on both of your phones, and turn it on your computer so that you can see it. Is there anything else that's gonna get in the way of you responding quickly? Now, when we ask that question, we might find out that Sarah's overwhelmed because she's doing somebody else's job who we laid off, and we haven't backfilled.
It's like, okay, well now we have context. Until we get to there, we can't appropriately measure Sarah's inherent value or traits, rather behaviors, to give her a label. So to your question, how do you train leaders? I think that attracting good leaders, so one of it's recruiting, right? So Chick-fil-A's head of people said this.
She said a lot of people are trying to fix process when they really lost the championship in the draft. And so a lot of people are trying to figure out what playbook they should be using with a team that's never going to win. So the big framework that we use for training in general is document, demonstrate, duplicate. And so first, you figure out exactly what the checklist is.
And I like checklist more than quote SOPs. That's a personal preference. And you want to be able to break it down into behaviors. And I think this is where a lot of training goes wrong. I think most companies aren't very good at training. They basically hire a bunch of people, see who's got the skill, and then fire the rest. But if you do get good at training, it's like, how do you train kindness?
Well, you say, OK, well, people who are kind, when they come on a phone, they smile, right? And they nod their head when people are listening. And they repeat back what someone says. And they raise their voice when they walk into a room, right? And so if you boil it down to some of the behaviors, then the onus is on us as leaders to be more specific with what we tell our subordinates to do.
And I think a lot of times, if you're struggling to train some of these key traits with leaders, it's because you're not being specific enough about what you want them to change. And so it's like, you're just not getting it. It's like, well, no one can do anything with that. And so it's like, you have to, and this is where the work comes in from the top down.
We're like, OK, when you do this, and so the easiest way to bucket this That's a key. There we go. Is Sarah, I need you to stop doing this. I need you to start doing this. And I need you to keep doing this. And so just being more granular about what behavior you want them to stop or what behavior they're not doing that they need to begin or a combination.
And so giving someone the feedback of I need you to do this instead of this has been some of the most effective way that I've been able to change people's behavior. And it's around the specificity. And so if your leaders aren't doing what you want them to do, document, demonstrate, duplicate, this is the step process. Let me show you how I do it. Now you do it in front of me.
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Chapter 6: How can you effectively train your leadership team?
And this is what we're going to have you stop doing. You're going to now do this instead and keep doing the other stuff that's good.
I sell professional book publishing services to entrepreneurs and executives. We do a million dollars in revenue. I'd like to be at 3.2 million in revenue. Very precise. And I just turned 32. Yeah.
This is the best explanation for a revenue goal I've ever had. That's great.
What's stopping me is I'm at the stage where I need to make more money before thinking about other things. And the challenge I'm facing is a lot of things have worked for us up to this point, but I need clarity around what to do more of.
So what's the input? So what's the thing that drives the business?
The biggest thing that drives the business right now is referrals. The second biggest thing is related to organic in the form of speaking, social media and guest coaching. And then we have a split between cold email outbound and Facebook ads.
You're doing all the acquisition channels?
All of them. And we didn't even mean to do all of them. We just kind of tried them all and they all seem to work enough.
What's the greatest percentage of your customers? What channel they come from?
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