The Game with Alex Hormozi - "Leads Are Weak" 5 Ways To Increase Lead Quality | Ep 221

Episode Date: July 21, 2020

Which way is it again? Today, Alex (@AlexHormozi) talks about 5 ways you can increase your lead quality, how each of these ways work, and how you can optimize these to your advantage. 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 on his path from $100M to $1B in net worth.Timestamps:(1:10) - Targeting, steps, and offer: ways to increase lead quality.(2:47) - Application and value first: more ways to increase lead quality.(5:07) - Understand business model, start wide, monetization structures, etc.(7:58) - Keep tweaking to improve lead quality process.Follow Alex Hormozi’s Socials:LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition

Welcome to the Jim Secrets podcast where you talk about how to get more customers, how to make more per customer, and how to keep them longer, and the many failures and lessons that we have learned along the way. I hope you enjoy and subscribe. So a quick thing that just came up recently, I was asked to explain what are the ways to increase lead quality. And so there are five ways that you can increase lead quality. So this is if you were like, man, my leads are weaker. I want my leads to be higher quality. you or people are complaining to you or whatever, right? There's five ways to do this.

Now, that being said, the monetization structure behind it, you're going to want to play with these variables so that you can optimize your throughput so you can get the most amount of sales or most amount of cash up front, depending on whatever it is that you're optimizing for, all right? So it's not to say that you should do all five of these things because sometimes you are going to be leaving a lot of money on the table because ultimately you want to remove as few of these, or sorry, as many of these as you can because they're all bottlenecks on the amount of volume you're going to get.

And so each of these will increase quality, but typically decrease volume. And so these are the tradeoffs that you'll do in the marketing side, these are the variables that you'll play with in order to get the optimal setup for sales. So without further ado, the five ways that you can increase lead quality. Number one, you're targeting. So the targeting, you can do this in a couple of ways. One is you can just do it by zip code.

Other you can do it by income level or profession. Those are all things that you can do to immediately increase lead quality. if you go to only the rich zip codes, you're going to have, you know, higher quality leads in general, right? That being said, if you're doing those zip codes, just to understand that other people are also marketing those zip codes, and they will probably also be more expensive and your volume would be lower. So there's number one is the targeting, right? Number two is the number of steps that they have to jump through, right? If someone has to do 10 steps in order to get on the phone with you versus one step, they're going to be more qualified because they took more action so they're more in pain and they're more likely to want to work with you, right?

that they were more compelled by the offer headlines, et cetera. So that will increase the lead quality as well. Number two is, sorry, number three, excuse me, is the nature of the offer. All right. So a free offer versus a paid offer or a free amazing giveaway compared to a click here to schedule a sales call is going to create a very different type of prospect, right? Not all leads are created equal. And so if you are having someone opt in for a giveaway, you will have more volume by a ton.

And so that's where there's so much emphasis on the monetization structure you're behind it, the mousetrap that you've built in order to, like if you have a giveaway, I know plenty of people in industry that do giveaways and crush it because they have a good mousetrap behind it and they take advantage of the point. But if you don't do a giveaway and you do a straight to call, then that person is going to be more qualified than somebody who is opting in for just like a giveaway or whatever, right? The fourth is going to be an application, right? So if you have application is sort of the same thing as adding a step, but it's different enough. that I figured it was worth mentioning. So you can have like four pages in a row that only require one checkbox, or you can have one page that has a lot of questions on it, right? And so, and the nature of the application,

they have lots of paragraph question answers. It's going to be more work and therefore a higher quality lead compared to lots of checkboxes and ADC, right, type questions and answers for the application. So that's another thing that you can do to implement to increase the quality of the leads that are coming through. Simply adding an application before they have access to you will increase the quality to lead. And you can also, there's a lot of psychology behind the questions that you're asking

the application. So getting them to state their goal, getting them to state that they have a problem, getting to understand what their biggest unknowns are and the things that they're struggling with, understanding that, you know, setting the precedent that there is going to be an expense, are they willing to invest in, you know, in a solution for their problem? And if you want to and have big balls, which I would encourage you to do, put some sort of minimum amount. If you're, if your things, you know, let's say your things, a thousand bucks, say, hey, are you willing to spend at least $500 on The thing, it doesn't mean it has to be that, but at least it gets them in the ballpark around where you're going to be, right? Hey, guys, love that you're listening to the podcast.

If you ever want to have the video version of this, which usually has more effects, more visuals, more graphs, you know, drawn out stuff. Sometimes it can help hit the brain centers in different ways. You can check on my YouTube channel. It's absolutely free. Go check that out if that's what you are into. And if not, keep enjoying the show. And then finally, the fifth thing that you can do to increase the quality of the leads is provide value first. So this is going to be the actual content of the advertisement itself and the video itself.

So if you have a video that's incredibly compelling but doesn't necessarily explain anything or add value to the consumer, then you might get lots of leads with the quality and might not as be as high. Versus a video that might be five minutes long and provides a tremendous amount of value, tactical importance that they can immediately implement their lives, then that person might be more qualified if they come in because they're like, this person has already provided me value. I already know that they're good at what they do. And so it gives you a more authoritative positioning in the prospects mind so that they will be more likely to give you money.

All right. So there's lots of waste, increased quality of the lead. The tradeoff and where you have to come in as a business owner and not just a marketer is understanding how your business model works behind it. My two cents on this is that I try and start with the biggest, widest net as possible and then work backwards. And so what I mean is I just want to get flow. Once I get flow, then I'm going to try and create a series of offers and upsells on that flow that will allow me to make more money on the customer because the worst thing in the world is not having any flow to begin with. And so I would rather start with a much wider net and then create a series of offers and indoctrination sequences and preframes that after I get the flow, we'll get someone to give us more money.

And typically, if you are good about your sales engineering and choreography behind the opt-in, behind the application, behind the call, that's the model itself, then you should know what your numbers are on, let's say, a free trial or somebody who downloads a lead magnet or whatever it may be. You should know that for every $1 I put in here, at day $15, I'm at $1. At day $30, I'm at $3.5. At day $6, I'm at $7. If you don't have those numbers, it would be much more difficult to make decisions about your marketing. without that. And so all that being said, the time to use these five increasing in quality type applications is when you have so much volume and the quality of the prospects is so low that you are willing to sacrifice half the throughput or a third of the throughput on the advertising to either

get a higher ticket or to accommodate for your operational capacity. Right. If I can get, let's say I'm booking some sort of national campaign and I'm going straight to call if my team can't handle as many and I don't mind doubling my lead cost to get to put a fence up because I can't even handle the flow that's coming in. Then in that instance, it would be worth it for me to double my lead costs because it doesn't matter as much to me and I can't handle the operational flow. But for me personally, I tend to start with the biggest net and then try and see what I can do in the back end and put the onus or the responsibility on the model and the monetization structures and the sales sequence so that I can afford whatever I want and then ultimately have a high volume, high ticket sale

or mid-ticket sale type business. And we've rinse and repeat that exact same model in brick and mortar for the gym. We've done it for the supplement company. We've done it for gym launch. We've done it for now the online fitness model that we are getting all of our seven-figure gym owners to walk away from and go into. because they're simply making more money. They're able to get the same average price point on these clients as they were before,

except they're able to get an unlimited lead flow, and the average cost per lead is about a fifth. Right. And so as long as we can make the machine behind it work, which took us three or four iterations to get it really tweaked and we continue to do so, put the onus on the model rather than on the marketing, and typically you'll make more money. That's just been my personal experience,

and hopefully that provides value for you. So otherwise, hope you have an amazing, Thursday, I hope that gave you five different ways you can increase lead quality if you need it. For many times, though, you just need to look behind the lead at the monetization system that they're coming into to make sure that you can afford the traffic rather than trying to tweak the front end. So maybe it was giving you an answer without giving you an answer or giving you the five things, even though you might not actually need that.

It's usually the model itself. But if you do have an issue of having too much traffic and the people aren't qualified and you're willing to increase how much you pay per show or you don't have the operational capacity, then adding one, two, three, four, five these qualifiers in. It's an easy and fast and reliable way to increase the quality of the lead to come in.