The Game with Alex Hormozi - The Shortcut to High Margin Income. Hormozi Hotline | Ep 926

Episode Date: December 30, 2025

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 ⁠

Let's rock. Justin, you up? Justin? Justin. No, Justin. Okay. Justin, I'll get you next time. Otherwise, you guys can hear him now?

Jesus Christ. All right, Justin, this is the last time. I'm going to get on here. And if I don't hear him, and only him, I'm eating the sandwich because this thing smells amazing. All right, Justin, are you on? Oh, I'm here. All right.

we made it guys we did it Justin is on all right Justin are you doing $600 or $600k a month $600 dollars in general income is 120k a year okay so you're doing 120k and what do you do so you do automation for ERPs yeah okay particularly order processing auto processing what is that order processing email that yeah okay so before this you were doing what automate anything for anyone Automating anything for anyone. Yeah. Okay. So how were customers coming to you before this?

Two years ago, I did some videos on how to automate things. Okay. That's been it. Those videos have driven everything. Do you still make videos? I'm about to start again. Okay. With a new type of video because those videos got me leads that were freelancers who wanted to automate by other people.

There weren't that many business owners. Would you ever teach people how to automate stuff? I've done lots of videos. I have lots of people in my LinkedIn. You want to learn how to automate. And you don't want to sell to them. But I don't know how much money they have, to be honest. A lot of huge getting started.

It's not about how much all of them have. It's about how much, you know, 5% of them have. So what's the goal here? I've been really tempted. Do you want to make money? Like, what's the goal? What do you want to do? The goal is like 500K net profit.

You should want to make money. Pretty, yeah. You don't care about building a sellable thing. You just care about making money. Yes. Okay. I think that if you have a tremendous, like right now, you have a very valuable skill.

I think that you teaching people, this valuable skill might be something that will for sure be able to make you $500,000 a year in that profit. If that's your goal, that is, I think, for sure, the easiest path. Easiest and fastest. Okay.

Now, if you're like, I want to get to $20 million a year, different. But if you're like, I just want to get to $500,000 a year, Super doable. Okay. Yeah, so I think you just take all these people who are reaching out to you and the videos that you clearly do really well, do more of that and then probably sell some sort of like

automation certification, something like in the neighborhood of like, you know, $3,000 $6,000. So like you have to sell two people a week to make $500 grand. Right, okay. That sounds chill. Yeah, okay. Just do it on school. Yeah, exactly.

Definitely. Yeah. I think the number one community on school right now is an AI automation thing. Like for sure people buy that. Just sell it as an annual membership. They get five, you know, call it $5 or $6,000 a year. If you don't feel confident yet, start at three, you can bump it to five or six, have it bill annually.

And they get, you know, access to 20 different types of automations that are most common for businesses. And the nice thing is that you'll get both business owners and freelancers who all want to do it. Either they want to do it for themselves, they want to do it for other people, but either way it works. Yeah, okay.

And if you want to be more efficient with it, I would drive it to a sales call funnel rather than direct to a purchase page. And so I would just like sell them and then basically show them the about page, have them buy on the call with you, and then they'll be in. Yeah. Love this for us. Was that as good for you as it was for me? I mean, I have to do that a long time.

Good to have some permission. Everybody wants this one thing from you, that you have this very, very valuable skill. You have an existing media asset that continues to deliver these types of leads. Let's just go make a high margin product that you want to make 500,000 of years. Awesome. Great. sell 100 people at 5k yeah it'll recurred awesome amazing awesome all right thank you all right we'll talk soon welcome propose you hollett and thanks for being a sport about the

about the audio you were great all right oh no you could but but good observation all right thanks just appreciate you all right so let's rock and roll i'm gonna have this sandwich and uh i will stay on as long as it takes me eat this sandwich if you guys can pause on any of these questions I will try and answer some of them. So I'll give you some secrets of my sandwich habits. I eat a lot of sandwiches. So I eat sandwiches for lunch pretty much every day. I alternate where I get them from.

And so yeah, that's how I do that. So this is, each one of these slices is typically one ounce of meat. And so if you get three slices, you usually have three ounces per. And so this is six ounces because it's six slices. And so I pre-tear all of my extra meat, Because anybody who's had a lot of sandwiches knows that if you try and load the sandwich up, it becomes this open thing and the ratios get all off.

And so what I do is I pre-tear these to like my bite size. And so then I take my sandwich at the appropriate ratios. Now we're gonna need the most added meat. It's gonna be the front and the back. And so I will take my front guy, get a dip. So I'm not being a pig here. Just get a little dip on the front, so I get a little sauce.

Because I have no sauce on the sandwich so I don't trust somebody else to just put tablespoons and tablespoons spoon this mayo on. And then I basically front load it. Hard to beat. Hard to beat. All right. Maybe it'll go question, bite, bite, question.

Maybe I'll go three bites, bite, bite, bite question. Oh, I'm so hungry. Okay. Just pause it somewhere. Okay. Home health agency, pre-revenue. Home mouth agency, I don't know what that is. Opening in a month.

Okay. What are some advice in this industry when we rely on insurance for payment? Yeah, yeah, or do we have to rely on her mouth? Well, dude, you're pre-revenue. You don't even make money yet. So, like, you can be cash or you can be insurance. I typically don't like someone else controlling my pricing.

The advantage of being, quote, in-network is that they should be able to send you lots of customers. That's, like, the main benefit of being, like, kind of in-network. I need to know more about home health in terms of what that actually is. So I'm actually kind of confused. There's a lot of, like, home health services. Alex, how your strategies are used in new service businesses, but as a doctor, urologist, just starting out, and they're already famous urologist in my city.

How can I build my practice use new models? Dude, it's going to be in marketing, man. You just got to advertise. So you have to make content around your stuff. And one of the advantages that you will have compared to the more established guys is that you should, should be able to run higher margins because you're not doing,

you don't have nearly the overhead that they'll have. So you're going to beat them on being able to be higher margin per service and that their people or patients are gonna have higher access to you. All right, those gonna be the primary things. Something worth considering, by the way. I think concierge doctors tend to do very well.

I don't know how many, like, if you're gonna do like surgeries or what, but I think you selling people because like you're just getting into it and you might as well start where you're gonna end. Most of the physicians you practice for 20, 25 years, realize that a concierge model that doesn't rely on insurance is a far more profitable

and a way to live. And so they just convert from having like, you know, 25,000 customers to just getting 500 customers who pay them like 1,000 a year. And they make 500,000 a year. Super chill, they have their cell phone number and just like makes life really easy. And they just become general practitioners

for those 500 or so customers. So something worth considering there in terms of strategies. But by and large, you're going to have to advertise via content today. That may change, but right now it's gonna be content because you're not gonna be able to outspend the other guys on the ad side. and you should be able to run decent margins.

And maybe having a couple relationships with maybe like some hospitals or other practices that might get urology type stuff, maybe just some general practitioners, that they'll refer you business because they'll feel bad for you. So with that question, we will now have a couple bites. So if you guys are eating lunch with me, then cheers.

We can have a bite together. Yeah, I don't know you guys, but I'm starving. You get to quote, see how I'm quote, camera and so you're like I wonder how he's like normally it's like this is it this is how I am all right I said three bites okay trying to stop between being a loan broker earning 1% recruiter brokers and 0.5% of loan on the loans I mean for sure I would go recruiting brokers so you're telling me I can get half as much money on unlimited people versus 1% for myself each one of those become a consistent

node of revenue that continues to pay you over time. So this is a leverage question. You literally just get paid on every single person. Basically as soon as you have two producers that do well, you would make what you were making before. Like to me, that's a no-brainer. Best way to scale wedding photography business. So everyone, you have basically four fundamental ways you're going to advertise. Core four. You've got outreach. You've got outreach to get customers, number one. You've got paid ads. Number two. Number three, you've got content. And number four, you can do outreach to affiliates. So if I own a wedding photography business,

then I'm going to be curious as to like, what percentage of people are running wedding photography businesses that are doing this off of, like how many people are coming off of ads, how many people are coming off referrals? I would bet that for a wedding photography business, like it's a one-time purchase that you make, you probably ask other people who are local to your area,

who they used. So I would be more likely to probably recruit wedding planners. So I would probably go outbound wedding planner, offer to do photography for whatever price they can sell it for, and tell them they can keep 100% of it for like one or two customers so that they have an incentive to push me, and they get to keep 100% of the money, and then I prove to them that I'm good,

and then we figure out some sort of deal, and I would just repeat that over and over again, and so each of those wedding planners and, you know, helpers would then become my nodes of distribution. that would then feed me customers. That is how I would probably do it. All right, I'm owed another bite. A little dippy-dippy, little dippy, little dippy.

A rotund question. So, wisdom path, as an autistic, how to translate feedback into defined action that leads to improvement at business. Honestly, man, just read the books. Like, I feel like I write as an autist. Seriously, I just like, I just break everything down into behaviors.

And so I think that's the whole point. And so I also just wouldn't let like any labels limit you. Like some of the most successful people in the world are autistic. So like I just wouldn't like let that be a handicap. A lot of superstitious entrepreneurs are quote ADD. It's just like I would say it's more of a trait rather than a handicap to something like worth. At least how I see it. Global Hangout and Eating.

What lead manager which said for a craft subscription box business? Hmm, good question. What lead magnet for a craft subscription box business? Hmm. Will it probably be, I feel like that's more of an e-commerce play. I don't even know if I'd have a lead magnet. I would think that it'd be more like, I'm going to make content using the stuff in my boxes,

and then solicit people to go buy the next box. And then I'd probably go like first box, or first three boxes are like half off or something. And then after that, after they've had three boxes, let the price bump. That's why we do. Okay. All right, Micah, I have $150,000 marketing budget a month.

Okay? 10% budget is what works. 20% iteration, cool. Love that. Okay? My director said 100 new creators a week. Love it. So how do you run that many if they don't exit the learning phase?

They should. I mean, $150,000, you're doing $3,000 a day. I mean, as soon as you do start to have winners, like once you get a certain amount of spend, they should get out of learning. Absolutely worst case scenario, cut the creatives down to 25 or 50 and then run it that way, but it doesn't make sense to me that it wouldn't exit learning. I have a client acquisition and retention agency for residential cleaning.

My price point is $1,500 a month. Recently sold the whole system for 5K through school. The sale wasn't smooth, so I don't know if I have product market fit. I mean, if you've only done one, like, you probably don't know anything. You probably have to learn how to sell. You said it's a, like, you save an acquisition and retention agency, which sounds like marketing and some sort of information that you're selling. And you sold the whole system, but there's no recurring unless you're doing 5K

annual, which makes not a lot of sense given it as a service for residential cleaning. So with a business like yours, what I'd rather do is have like a big headlong town model. So it's like maybe it's like $5,000 up front and then it's like $1,500 a month. 5K front, $1,500 a month after that. And then in terms of the sale being smooth, I don't think it's product market fit, dude. Like residential cleaners want customers. They want to keep customers. You don't need to test product market fit.

You just don't, you know, you got to learn how to sell. That's all that is. And it's also like, what are you judging this on? Like, one conversation or like 100? Like, I would just like erase that from your mind. Okay. The Maker's Layer. Hey, Alex, I'm building a branded medical product with an app.

Okay. How do I know if the product truly works when to double down versus pivot? I mean, shouldn't you try the medical product out? Have people use it? What you should be following is Y Combinator has just, really amazing stuff for if you're getting in the product direction or app direction, excuse me. And I would really strongly be considered, like, I don't dissuade you because I want everyone to start doing things on their own, but like, I won't even get into that. I'll just say this.

Try and find 100 people who love the product and keep making it until those 100 people are obsessed. Don't worry about anything else. All right, I'm owed a bite. It's bite time. Peanut butter bite time. You know how it is Luke. So we can all thank my Gen Z, Gen Z, Luke the Duke. for being like hey live streaming is cool you should try it and so here we are also the first time we did one of these was on sean sean purry's podcast and he was like we're we're calling our Hermosie hotline and so we called people up and people seem to really like it and so that is why we're doing this i'm so hungry okay i'm a video game coach making four to five thousand a month

fifty seven thousand subs on youtube i charge 30 a month and get 50 60 new students with group coaching but i turn the same number okay yeah realistically you'll likely want to sell like here's the thing education alone is not a recurring product community is a recurring product services are recurring products and so we want to make sure that we're matching how we're billing to how we deliver value and so it's far more likely that you deliver value upfront right to people and so I would suggest probably raising the price or doing some sort of annual thing so that you can appropriately value the

information or the education and then have a much smaller back end for the access to the community and maybe other services or calls or whatever else that you do. I think it's one of the biggest mistakes that people make in the education slash services world is that they think that because someone would say yes today when they don't know how to do something that three months from now and they now know how to do it that they still want to pay that. So we have to break apart our product offering into what are things that are consumable and what are things that are one-time.

And so the one-time things that we have significantly more value And then you have the consumable elements that are to be less value, but they recur month over month or month for example, I am a reoccurring customer of the sandwich shop because it is consumable. I eat it and I still need another one tomorrow. Whereas if I learn how to make sandwiches for myself, then the skill of making the sandwich will no longer be required, but then I'll need a subscription to bread and meat and lettuce and whatever.

And so you want to break apart your products into like community is something that people consume on a regular basis. might be something that they consume, but those in and of themselves might not be inherently valuable, right? I mean, depending how good you are. But education system can be valuable, right? And so all these kind of depend,

but this is something that's valuable one time today when I don't know how to do something until I do know how to do it. Once I know how to do it, this isn't worth nothing. And so what happens is people say, okay, well, this thing's worth five. So I'm going to bill, you know, $200 a month for a year.

It doesn't work that way. Bill what they want, what they need up front. And then when they have different needs, which might be lower, that. Okay. One, Alex, tell me something. See, you got to ask questions, man. Questions is much nicer. It's much more polite. I wouldn't come up to you in the street and just start shouting at you. All right. One minute, I'm going to have another bite. I'm hungry. All right. 90 strong. I'm a brand ghostwriter for executives on LinkedIn. Despite posting daily, my reach is stuck at 200

views per post. How can I break through this plateau? So you're a brand ghostwriter for executives on LinkedIn. It is a little bit ironic that this is what you specialize in. I just want to say that. I'll call it out. Okay. I'm guessing you're probably just doing a lot of GPT stuff. And if you are, it probably sounds like everyone else's GPT stuff that's on LinkedIn.

You want to tell narratives and stories. Like what are the things that are AI cannot do? AI cannot live in reality. And so, like, the reason I am using real businesses and I talk about my own stories, those are things that no one else can copy. If I say, here's the six steps to XYZ. 100 people will say these are the six steps, XYZ.

But the examples that I use are things that no one else can copy. The proof is something that no one else can copy. And so if you're a brand ghostwriter for executive on LinkedIn, I'm assuming that you're trying to get more customers for yourself. And so you're going to want to make the type of content that executives on LinkedIn might consume.

This is where stories and examples are super valuable. Now, my guess here is that you don't have enough customers to give stories from. So this is why I suggest to people to take on people for free or at massive discounts so that you can build up your track record and have stories to tell. And I think that will probably make your content more valuable or more interesting.

All right. Starting a beauty brand, I sell in North America. Do you suggest I focus on B2C through Microsoft's and Affiliators or focus on B2B? Unless you have experience with B2B, I would probably start B2C. All right. Starting my marketing business is your experience. Using your books to learn. Thank you.

You're welcome. How can I get more experience to sell my services to be companies? Everyone. start for free and you also have to earn your way to bigger customers and so this is why it's normal for people to consistently go on market because they realize that the work it takes to do to serve bigger clients is about the same but the thing is is that to get the trust of bigger clients it takes more experience and more know-how so saying like i have zero experience you know i'm going to read your books and i'm going to start taking amazon down as a client is super unlikely and so

you're going to want to start with smaller businesses and then work your way up. And if you don't have any experience, this is why I advocate for starting for free. Like, you want to get proof before you get anything else. It will take you so much longer to get your first 10 paying customers if you try and get your first 10 customers to be paying. You want 10 free customers, leverage the testimonials, learnings, and examples from those 10. Because the people who then buy from you don't know that those people are for free. Then you go get this next 10 using the first 10. This is leverage. to start an automation business for finance departments of companies of 20 to 200 people, what kind of LinkedIn content should I make?

Just talk about what you know. So talk, I mean, if you're making these kind of automations for finance departments, like talk about one at a time, the automations that you do and what happens as a result. Like, there's probably 150 repeated tasks that finance departments do. So I would probably, like, first off, make myself a list of every single micro-task that somebody to finance department would do. And then one by one, that would probably be my content schedule. And I would say, I'm going to make 150 pieces of content.

Each one is going to explain how to automate each one of these specific portions. People who will read that and watch that will be the types of people who will buy your stuff. Don't be afraid of giving me the secrets. Like, no one in finance is going to learn your tech stuff. They just want to know that it works. Especially if you can show like a mini like a five second or ten second thing of like a process running in the background or how it's happening automatically that's showing the result. I think that will be super valuable.

Okay, I think this made me my last one, and then I'm actually going to eat lunch, because I'm very hungry. Gassier, $34,000 a month around $3,500 in ad spend, 20% net, dental products, number three on Amazon. When scaling spend, it destroys margins with little gain. Number one, competitors, $250,000 a month. Any advice? I'm guessing you're running your ad spend on Amazon? That's my guess, because that sounds very Amazon-y, which is, like, Like, they pretty much know exactly how much you make, and then they just charge you the amount

that your profit would be, so you just pay them more. So, I mean, to scale, you're gonna probably, I mean, you wanna max out your existing channel, but if you have no other way of making your product more valuable, then I'd probably start looking at new channels. Like Amazon is just a channel. You know, be like, there's really nothing, it's just a channel.

Can you get micro-influencers to do it? Can you get other dentists to do it? Can you do B2B on wholesaling? Like, there's so many different angles that you could take to advertise the product. They're spending $250,000 a month. I don't know how. So I would try and figure out,

how they're spending $250,000 a month. Do they have better reviews than you? And that's what allows their page to convert better. Do they have a back end that when customers buy the first thing to buy other things? Like, I just don't know. And maybe $250,000, probably making $250 month. And it might just be that they have a better product,

being real. And so Amazon is very like winners take all market for the best products. And so, like, I don't know what the number 10 business book does, but like the number one business book makes a hell of a lot of money. And so if the number 10 business, like imagine, let me give a different example. So like, let's say that number 10 business book,

Wrote this question was like hey I'm doing $5,000 a month for my book the number one person is doing $250,000 a month how do I get it bigger it's like realistically it's like you got to have a better book Like that's the real you got to have a better book now of course you can market in more ways but if you're like how do I get bigger on Amazon? It's gonna be down the product I mean they built their whole site to maximize quality of product Relative to price of course. Okay, how many hours would you go? How do we do? Three hours. Holy kent. Yeah, time flies when you're having fun. You guys rock.

If you guys like this, I'm going to keep the stream up for 30 more seconds. If you guys like this, please let me know if you like this format. If you do, I'll keep doing it. If you don't, I like it, so I'll probably keep doing it. Especially if you're a business owner. I made this stuff for you guys. I love talking business. I hate making YouTube videos.

And so I'll probably do more of this because this is just way more fun. And what do you guys think about having a regular, like show? Like, what do you think? Like a once a week or like a twice a week on a live stream like a lot. Kind of like I started today, like maybe 30-ish minutes on like a specific type of, you know, training or something like that around anything that's, you know, technical and then transition into kind of Q&A's with y'all. Okay.

Rock and roll. You guys are rocked. So appreciate you guys. I hope you guys all have amazing sandwiches for lunch no matter where you are, the best sandwiches. I wish that to, I wish everyone amazing sandwiches. With that, rock and roll. Appreciate you. And I'll see you guys next time.