The Game with Alex Hormozi - The Rule of 100 | Ep 248

Episode Date: November 10, 2020

Want to perfect a skill? Do it 100 times every day. Today, Alex (@AlexHormozi) talks about a simple mindset called “The Rule of 100” and how following this method of increasing volume and repetition of specific actions can bring you closer to improving your skills and growing your business.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:(1:05) - Do a hundred of something daily to improve skills.(3:29) - Increase volume to generate skill and outcome growth.(5:29) - Selling expands when you're not the constraint anymore.Follow Alex Hormozi’s Socials:LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition

If you are not acquiring customers every single week, week in, week out, then this is for you. Welcome to the game where we 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 we have learned along the way. I hope you enjoy and subscribe. All right. So fundamentally, two ways you can, well, there's six ways you can search for clients, but two that I want to talk about today is going to be outbound and inbound. So outbound being like you're actively reaching out to people and getting a certain small percentage to respond.

and the other version of that is paid ads, which is fundamentally, again, outbound, you're displaying stuff, it's just you're paying a platform to have the eyeball rather than doing the manual work to get the eyeball. But the result is more or less the same, a certain percentage, like 1% click from the ad, and then they go through the process. Whereas when you're doing outbound,

you have 1% that might respond to your outbound response, and then it comes inbound, right? So what I want to talk about here is the number one thing that I see people that mess this up is that they, do insufficient volume. And so what I want to do is give you a rule of thumb that I'm coining the rule of 100.

And what it basically states, and I haven't heard this from anyone, so I'm claiming it as my own, is that if you do 100 of something every day, you'll likely get better at it, and you'll likely be doing enough that you will be able to start seeing an outcome. So in theory, if you were like the biggest master of all time,

you would need to do less volume to get the same outcome. If I was the best paid advertiser of all time, then I wouldn't need to do a ton of paid advertising to get a lot of sales, right? Right. To the same degree. If I was the best cold caller in existence, I would need to do far fewer calls in order to generate the outcome they're looking for. More sales, right? But here's the twist. How do you think you become the best paid advertiser of all time? How do you think you become the best cold outbound, cold messenger, cold email, or cold caller of all time? volume. And so the volume begets the skill, but the thing is, as you get better at something, you like doing it more. And so this is actually a circle that continues to reinforce itself.

And the thing is, is that most people do not start with the first thing in high enough quantity. They do not do sufficient volume, which is why I'm introducing the rule of 100. And so basically it states that if you are not acquiring, like right now,

if you're not acquiring customers, then you're not doing the rule of 100. It's very simple. If you're not spending $100 per day on advertising or doing 100 reachouts per day, then how do you expect to grow? Right? And I'm saying this, you can add zeros, you can remove zeros, whatever, but the idea is that at a base level, and this is per person, this is per human being, right, that you have that's working. If you were not doing this, then you're not going to grow, right? And so most people do outbound, and they do it one time a week or one time every two weeks when they feel motivated.

They don't do it every day. To the same degree, they're doing paid ads. And they're like, well, I spent, you know, I spent 100 bucks. It's like, so what? You got to spend $100 every day, right? And then what's going to happen is you're going to suck in the beginning and you hope you can break even. And then over time, the skill will improve and then you will get more back from your volume. Right.

But everyone wants to have a huge skill and do low volume to get their outcome. But the reality is that to generate the skill, you have to have the volume. And then in so doing, you do more volume times the skill and the skill gets better. And then the outcome continues to increase. And so right now, if you're not doing 100 outreaches a day in your business or you're not spending $100 a day on ads, how are you going to get clients? Like what's the plan? Like how is this working?

And so one of the number one things is like when someone's reaching out to me and they're like, man, I wish I could get more clients. I'm like, well, are you doing either of these? First question. And if they're not, then it's like, well, then don't pass go. Do one of these two. Pick one. It doesn't really matter. The thing is that if it's just you running in your business, then this is going to be the cheapest thing to do because it's just selling your time, right?

In the beginning. And you'll be able to do this and then you could teach another person and then another person and then another person how to continue. you to do this because you will then have the skill that you can drop into their brains and so that they can replicate the same results you will and reality is they're not going to replicate the same result they'll probably do it half as well or a third as well but if you can still get you know 30 to 1 10 to 1 returns on on the reachouts efforts that you're doing then you can stand to have a you know 50% as effective person but have 10 people doing it right at the end of the day most people especially when you're the earlier parts of the business

the people you hire aren't going to be better than you are at these things. Real quick, guys, if you can think about how you found this podcast, somebody probably tweeted it, told you about it, shared it on Instagram or something like that. The only way this grows is through word of mouth. And so I don't run ads. I don't do sponsorships. I don't sell anything. My only ask is that you continue to pay it forward to whoever showed you or however

you found out about this podcast that you do the exact same thing. So if it was a review, if it was a post, if you do that, it would mean the world to me and you'll throw some good karma out there for another entrepreneur. 10 of them will be better than you are at those things. And that was one of the biggest jumps I had to take is that sometimes you have to take a short step back when you go from you not selling to somebody else selling, right? But you can quickly go from one person to three people to five people selling because you are no longer the bottleneck or the constraint.

All right. And so just recognizing that and using the rule of 100 as a rule of thumb for any of the acquisition efforts that you were doing, I guarantee you will serve you in your life. like if you have not spent $100 every day or if you have not done 100 reachouts every day and you are struggling to get clients, then do that first and then keep doing it, not one day. Do it every day for 90 days, right? Do it every day for 90 days and I guarantee you you will have customers by the end of that process.

All right. So anyways, lots of love that was value before you. If you did, enjoy this. Drop a like, drop a comment. And I'll see you guys soon. Bye.