The Game with Alex Hormozi - 8 Ad Strategies for 8 Different Businesses | Ep 733

Episode Date: August 21, 2024

"Here's what each of these businesses should do to make more money with paid ads." In this episode, Alex (@AlexHormozi) takes you behind the curtain to a private event Q&A where he answered any and all questions on paid ads. In these questions, the smallest business by annual revenue was about $600k a year and the biggest was over $10M, so no matter what size your business is you should find a golden nugget to improve your creative, campaigns, and ROAS.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.Timestamps:(00:21) Dental Recruiting - How Do I Start Marketing(01:43) Acupuncture - How to Start(04:19) Fitness coach/podcast - Brand Consciousness(07:56) Virtual Assistant Business - How To Start Ads(11:28) Solar - Things Are Working, how to improve 7+ ROAS(13:04) Assisted Living - Facebook, Youtube 20:1 ROAS(14:04) Executive Health - Scale + Compliance(15:16) Roofing PPC - Expand in Local Market(17:27) Real Estate - ROAS & Trust are DownFollow Alex Hormozi’s Socials:LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition

Hey guys, welcome back to the game. Today, I want to give you a live Q&A where I just covered paid ads for like 20 businesses, rapid fire. And so it's very likely that you'll be able to get your questions answered. The smallest business was about $600,000 a year, the biggest one, being over $10 million a year. And so I talked about the many things that I would do of each of each of these businesses to generate more leads from paid ads. 650 dental recruiting. How do I start marketing? So you currently run ads for job boards. Where you at, raise your hand. There you go. So you run ads on job boards.

So you already know how to run ads. All right, this is me trying to break a belief for you. So you already do it. You're just doing it on another platform. All right? So you're doing it in order to get dentists, but you're also trying to attract dentists who have clinics. I don't think it's, you just happen to me on job boards.

But fundamentally, you can run the, I mean, dentists are also on meta. Same thing. They're probably older, more boring. I say that with love to dentists. So I would look yeah Instagram Facebook will probably do really really well For you and just saying hey I have a like Tired of taking all these calls yourself like talk to the pain point of that dentist

So it's like they don't want to work weekends They don't want to work early hours They don't want to take cases they want to take well or they don't want to do They want to eventually retire someday but they don't want to let down all their patients and they don't want to sell some private equity because they're going to force them to work for five years in servitude and control their lives So these are the pain points right Layla's cousins a dentist So it's fresh on my mind. And so these are all the pains.

That's my hook for the ads. And then targeting, take your customer list, make a look like audience off that list. If dentists is in the copy, dentists is in the video, the AI and Facebook will also know to serve it to dentists. And it'll be pretty straightforward. Bingo. All right.

600K acupuncture, start. So if you want to run, so this is local, right? So the nice thing is that local businesses are the easiest business to run ads for. Because trust is sky high. And you're like, oh, they don't trust me. Like try and sell beauty to people on the internet. It's much harder.

So all you need to do is run lead gen ads. So I'm going to give you the simplest strategy for getting this. Are you guys technically proficient? You are. Okay, fantastic. Well, I was going to assume you weren't and give you an even easier way. But all you want to do is you can just run lead ads, okay, for some sort of free thing. And you're like, I want really high quality people.

Well, welcome to cold traffic. So they won't be. But what you will need to create is a sales process that creates quality. customers, all right? And so when I say creates, it's really just filters for good ones. Just think about it like that. It's just like I'm adding filters and the more filters you add the more expensive the leads will be if they're good filters and if they're more expensive they'll be good filters. If you add bad filters they'll be more expensive but they won't be better So if I make it really hard for my page to load it adds friction but it's not good friction

If I had a VsL so video sales letter to a page it'll create friction but it'll be good friction So I'll increase the quality of the lead by doing that and so with a local business you're gonna want to have like in larger national companies this is where brand adding the building trust adding value first matters in local it matters significantly less it is very offer driven on a local basis because people know what acupuncture is so you can say free thing or $19 thing since you probably your time costs a little bit more than maybe a low skilled labor job I'd probably go for the $19 to $99 thing maybe somewhere in there if I had to bet 19 to 29 would be where I'd start and

What you do is you sell people on that, they opt in for it, thank you page, they can purchase it. You still call all the leads yourself, you close them on the $19 thing to get a card on file. When you schedule, you'll confirm that appointment and that that cards attached to that person. And so then you'll do the treatment that you're going to do, and then you're going to sell them the plan afterwards. Okay. Now my preference here would be that you sell before you treat.

If that doesn't work out for you, you can treat first. I just prefer to have someone in pain, sell them the much longer thing that's going to permanently solve it, give them short-term relief afterwards, and set their next visit. And then when you do your actual sales appointment, the nice thing is you already have the card. And so you can say, awesome. So this is this, do you want to use the card you have on file? Great.

And that's the sale. Does that make sense? Okay. That's the acupuncture process. All right. Three million. CrossFit, Coach, business coach, brand conscious. So you guys are doing, what kind of content you guys making?

Oh, podcast is the only thing? Okay. So you guys are doing podcasts, and that's it. Okay, got it. Okay. Yeah, understood. Yeah. Are you guys barbell shrugged?

That was yours. Okay, got it. Yeah, yeah, yeah. Okay, okay. I hear you. I never had a name to a face, but I knew the podcast. Okay. So where would I start?

Okay. First thing I would do, same thing earlier, is I would do a retargeting campaign at Cross-Sum. all platforms. And the nice thing is that platforms are not super hard to figure out. They're made zillions of dollars to make them easy to click. If you already have traffic, so you install a pixel for each of the platforms on your page, you'll start collecting data from every single visit that's already coming from your podcast. You can start retargeting. So that's layer one. You should probably also earn your PPC terms. It'll immediately make money. Like there's no PPC

campaign for your own terms that doesn't make money. I haven't seen it ever have in my entire life. So that's number one and two. So own your own terms, do the retargeting. Third thing, is you have to come up with something that's really banger and super, super valuable that you can give away for fray. Like you've seen my stuff. So the money models books, the framework, the 11 frameworks for profitable gyms, all that stuff. So really put time into it, because I think people really skimp on this.

And that's why people opt in. They see it. They're like, oh, this is shit. Why would I continue to book with this person? And so they opt in. Thank you paid schedule. It still works. Now the thing is that you guys do have a brand.

If you're worried about being brand conscious, all you do is just be true to you in the ads. And my recommendation is let your clients talk. So just let proof do the talking. That's how I would approach it. When I look at all the ads that we've done over the years, like I said earlier, 80% of them are about proof. And so as much as we want to think it's all about us,

like no one cares. Like Alex had the big gym, I still do, right? The big gym company. One, I'm not in the ads anymore at all. And I wasn't for the last two years. And it was because we just focused on the customers because gym owners don't really care about me. I mean, they care about making money.

And they're like, I'm glad he helped. But really, they just want to make more and see other people like them that they can say, oh, this is a good approximation of my gym. And so the idea there is you want to create the most compelling proof as possible, which is the type of proof that would be the least likely to be faked. So on this extreme, you'd have a faceless, anonymous,

10-year outdated text-based testimonial. On this extreme, I would have someone walk up on stage who looks just like you, owns a CrossFit business coaching business, and says, Alex, help me go from $3 million to $30 million. You'd be like, fuck. And I'd be like, cool. So you'd be like, that's a really good approximation. Really hard to juke right here live in front of me, not recorded in person, specific to me.

And so that's kind of the continuum when you're showing proof. And every, every takeaway, it's like, okay, in person's better than virtual. Live is better than recorded. Like me is better than doesn't look like me. The result that I want is better than a result that's close to what I want. And so you just look at all of the factors that make something super compelling. And when you're looking at your proof, kind of think through it with that checklist. And that'll make more compelling proofs that make more compelling ads.

That you only lose trust in the marketplace when you say something that isn't true. And if you're not saying it, and it's their fact of life, how can anyone fault you? Yep. All right. $1.2 million, VA. So you want to start running ads for your VA business to get business owner. Yes, sir. Okay.

Hey, if you're a business owner and this kind of super tactical stuff sounds interesting to you, this is stuff we cover at our workshop that we do every once in a while in Vegas at our headquarters. And so if you are a business owner and that sounds interesting, go to Acquisition.com, hit the scale button and hopefully we'll see you soon. What type of VA? So it's a virtual assistant, either primary, secondary, it's based on the United States. We can do estimates, credit cards, callbacks, and for service-based companies. Estimates. So like home services?

Yep. Yeah. In your own service. Okay. So you're looking for service business owners like roofing, right? To hire VAs to do some of the legwork for their team. Okay. So the good news is that home services is pretty easy to target with ads.

I would probably also start on meta there. Just because metast targeting is probably the easiest. TikTok is pretty good targeting too. It's getting much, much, much better. But I would start with meta, so Facebook and Instagram. And again, the funnels here are just really valuable thing for how many clients do you have? Okay, you have 70 clients. And so what I would want to do is show how much money they save and how much more profit they make per roofer.

And I would just literally explain it because a lot of people won't know. So it would be like, the average roofer or the average home service person who has tradesmen who are going out are spending this much per hour to have the person do that, do estimates, do card checks, do whatever. The three main things that you do. And that means that per person, it's costing you $25,000 a year in labor. All right? Now, the thing is, is that for $500 a month, we can replace this. So take $25,000 and instead pay $6 per year. So you get the spread.

You get $19,000 back per person. And so if you'd like to see how we can help you implement this, we will guarantee this result. And by day 90, if you haven't made at least five times the money that we've done, we'll give you the rest of the year of the VA's for free. That would be my offer. the actual creative would be you breaking down the process and what you want to do is have some sort of visual proof that's like this is what John did

and John made this much, you know, saved this much money. Here's Stu and Stu saved this much and just say the size of the business. So he's doing about $10 million a year, he's got 20 guys and this is what he was able to save. So if these numbers sound at least interesting to you, we'd be happy to hop on a call. If you have a two-call close,

you can say you can leave your credit card at home. It's just to make sure it's a fit for us as much as it's a fit for you. We only take roovers above a certain size. So if you are smaller, don't worry. We'll send you with some resources that can help you out for free. But if you are above a size, we might be able to help you out. And either way, it would be another call for us to close.

So you can relax, it's not a sales call. Cool. So add with that kind of copy and messaging, and then freebie thing that will also be a longer version of that with maybe some writing that gives some graphs and some visuals or whatever. And then you can have the thank you page scheduler for them to book a call. Still outbound dial all the people. You have some VA's, I'm sure they can do that.

Call all the leads that opt in no matter what. And the nice thing with that is if your VAs are good, then they can be like, I'm a VA, I can be doing this for you. That would be my script. Okay.

Do you have an email list? Yeah, so if you have an email list of over a thousand, I'm going to assume you do, you can take that list and then put a look-like audience and start there as you're targeting because that'll be the issue for you in the beginning.

Yep, and make that the headline like home service providers. Okay, 1.2 million in solar, what? now, seven plus ROAS, things are working. I'm going to tell you, where are you? I'm going to tell you to spend more. All right, so what's the problem?

80-20. Yeah. So Google already really experimented with this. So the technical one, the better one is 70-2010. So 70% is doing the main thing. So just the one ad that you have, 20% is adjacent to that. So as many different ways as you can think of versions of it, that's not that ad.

So everything that I see as permutations of that, I see as the 70. Adjacent to that similar in style is the 20. 10 is just wild ass ideas of maybe this would work. And so that's how you allocate resources. And I'm being super real. So if you spend a whole day making ads, so you spend eight hours, that means you're

going to do one hour, 45 minutes on your one idea. And then you're going to spend two plus hours on adjacent ideas. And then the entire rest of the day is on how many different ways can I make the same ad per. And that's how you allocate time. It's the same way we allocate time when we make ads. We look up all the top winners.

We start with all those. We hammer out all that stuff because that's our real work. That's the bread and butter. Then we move one. That way, I said it in reverse in terms of order for the day, but fundamentally I want to get the 70 done first, the 20 done second. And if I've got time and I'm feeling energy, I'll do the third.

All right. So $1.2 million in assisted living. Facebook and YouTube, they're getting 20 to 1 row ads. The thing that you guys should do is spend more money. Because you have eight spots left in your assisted living and you're getting 20 to 1, and you should be okay with doing that, as long as you have capacity. If you know what your rate of filling people up is, then you can dial the spend so that you can keep it so it's smooth. Now, if you're losing money every month that those things aren't full,

then I would crank it and then turn it off. If you want the waitlist thing, I would know that I only need three people or four people on the wait list, that they have to pay in order to be on the wait list. Otherwise, it's not a wait list. It's just like telling someone to go away and then assuming they're going to care about you when you call back, even though they've already solved the problem. Because they're probably in a market and want to move within a certain number of months

because someone's in pain. When I say pain, it's a pain in the ass to deal with somebody who's, you know, you're trying to put into that. And so that is what I would do if I were in your particular situation. And I would go get investors so you could open up more locations faster. Check. All right. Ding, ding, ding.

All right. So $10 million, executive health. They're running YouTube ads. You're getting 10 to one. These guys are spending $1,000, a month to make $10,000 back, even though they're doing a million-ish a month on their main business. So that means 1% of their revenue comes from their YouTube ads. And the question is, how do we scale? The main problem is compliance. And so they're in health space. And so a lot of

the issues in health, sometimes wealth, even relationship stuff, is the claims that you make and being able to support them. And so number one is there are firms that specialize in compliance audits. And so I go, like, if we have an issue, like one of our company, it happens all the time, Ads get shut down because there's all these different automated things, even if you're doing nothing wrong. So you go to these firms and usually just ask them what their approval rating is post-compliance. Usually it's 90% plus for the good ones. It doesn't cost that much.

It's like five or six grand. And they'll go through the audit all the sites, the audit all the videos and collateral that you use so that then you can resubmit and they usually have some sort of internal Google kind of backdoor where they say, hey, we will make sure these people are compliant. They relationship with Google and they can make sure that you can make sure that you can you get pushed through. So usually, as long as you're not doing anything completely racy, which I'm guessing you're not,

you should be fine. Great. $10 million roofing, PPC, so you want to expand. So you're spending $30,000 a month. Which ROAS? OK, 7-1 ROAS, 10 million dollars a month, roofing, doing PPC, wants to expand. And you're in a local market?

OK. So if you're trying to expand there, first campaign I would run would be a retargeting across all platforms. So I would be retargeting on. on GDN, so Google Display Network. I'd be retargeting on Instagram, I'd retarget on Facebook, I'd be retargeting on YouTube. Anyone who's done a site visit,

that'll be the first and easiest row-az that you can get because you've already paid for it. So we consider that like the shadow funnel, which is whenever you blow traffic through anything, you should always have global retargeting across all platforms, because then you can scoop up everything else, and it almost always is positive ROAS. So number one.

Number two, if I had to pick another platform, I would actually do meta because obviously PPC is super high intent so the lead quality is going to be lower on meta because it's interruption based marketing rather than intent-based marketing because people aren't looking for it when they're scrolling on Facebook but a lot of older people are on meta so Facebook especially but Instagram to Instagram's got the whole the whole gamut right and so people who have roofs to fix and so I actually think it'll be fine that Facebook's aging up a little bit for you to run ads there and since the average ticket so high in roofing you'll probably good in terms of

the funnel, typically like free audits or some sort of free thing is good enough. And you can talk to them about savings that they're going to make if they fix their roof in terms of heating, cooling, all the other jazz that you guys do. And you can basically do that for free. You can send someone out. You can do it virtually. And then probably two call close. So set close after the freebie.

Freebie is the first page. Call thing is the second page. Call all people who opt in for the freebie to confirm the call that they did. And if they didn't book, set the call, and then close on the call that's actually booked. So if they book for Wednesday, call them anyway today, confirm, qualify. If you don't have time to set it, well, you will have time because you're setting it. Set it. And then close on the appointment on Wednesday.

So it can speed up the sale cycle. Great. Real estate, long-term rentals, investment, interesting stuff. So Roaz is down, trust is down. unsurprising and so the question that you have is how do you increase ROAS and build trust for this client so there's two ways that I can think of so one is making content long-term is what adds is what grows the organic audience it's what allows a lot of people here to even have the business they have and you'd

be surprised it is slower but over time it does compound and it becomes a pretty big stream and if you know how to run ads and you can make content that's what makes you a weapon because it's like it's crazy when you can do both. Second thing. Focus more on proof, not on promise. Everyone makes promises, very people have proof. So proof, so if you think about this,

this is a little sound bite for you. Your promise is not unique. Your proof is. Everyone in the marketplace promises the same thing. The question is whether they can back it up, and that is unique to you. And so if you want to have a more unique place in the market, have more proof,

not a different promise. Fundamentally, like all gym owners want to make more money. more money. Most business owners want to make more money. Or they want to save time, or they want to save headache, or whatever it is. Like the promises aren't going to be that different. The thing that will differentiate you will be the mechanism, how believable it is, which will be a function of the proof and the way that you're describing it. If you're like, oh, we have this brand new personal training model where you do six personal training sessions up front and then you get them into this and look at the economics behind it. People stay

way longer. It's like, oh, that's a unique mechanism. And it's like, okay, that sounds like it's different than what I did. But how do I know it works? Cool. Here's 100 stories of people who were in your exact position that made it work. So proof is gonna be the main thing. Now, the other way that you can build trust beyond the proof is you, I think group funnels right now work really well, really well. I think that they're going to,

I mean the reason I invest in school, because I think that, but group funnels are like routinely getting people from like $250 calls, like $40 calls. And I'm seeing this like over and over again across industries. And so the way that these funnels work, I already talked about the conversion mechanisms earlier, But you use the free group as a lead magnet.

So that becomes the lead magnet. And the nice thing is that it functions basically like an email list with long-term nurture, but it's way more engaging than an email list is. And so people who use the group funnels right now, just to give you a metric to this also for you for the groups, it's 10%. So the guys who do a good job convert 10% of people

who opt in to the group into their next level thing. And so most people are able to close 30% to 50% of calls they get on. And so you can target, getting on call with one third of the people who opt in for the group and closing between 30 and 50%. So if you get on call with 30%, and you close the third, you get 10% of the group.

Obviously there's some flex on skill there. But that's kind of just some benchmarks that you can look at. But those would be the three things. So add more proof, make more content, consider a group funnel. Boom! All right.