These are my notes from Alex Hormozi's videos (in the form of a quick guide).
This guide consolidates all hints, tips, statistics, and rules of thumb into a single coherent roadmap. It covers sales best practices, mindset, marketing fundamentals, operational strategies, and more—without repeating the same points multiple times. All spelling follows en-AU conventions.
- Mindset & Core Principles
- Sales Fundamentals
- Leverage & Business Focus
- Defining and Measuring Work
- Wealth Creation & Leverage Examples
- Product/Offer Development
- Marketing & Lead Generation
- Team Hiring & Management
- Key Operating Frameworks & SOPs
- Financial Principles & Paying Yourself
- Long-Term Growth & Compounding
- Action Steps Summary
- Key Statistics & Formulas Recap
- People want to buy: They’re just afraid of making a bad decision. Your job is to help them confidently move forward.
- “Selling is a transference of belief over a bridge of trust.” You need both the belief (in your product) and the prospect’s trust for a successful sale.
- Infinite game perspective: In business, health, and relationships, there’s no “finish line.” Focus on staying in the game rather than “winning and leaving.”
- Crisis of meaning: Once challenges arise (the “valley of despair”), many switch to new projects. Success comes from pushing through that dip.
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Sell 7 days a week
- Potentially add 104 extra sales days per year (52 weeks × 2 extra days).
- Aim for at least a 29% increase in potential revenue by covering weekends.
- Weekend buyers often have higher show-up rates and more free time.
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Respond within 60 seconds
- Likelihood of closing increases by 391% (cited by Harvard Business Review and internal data).
- Waiting beyond 5 minutes causes ~80% drop in close probability.
- 50% of prospects choose the first business that responds.
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Use 15-minute time slots
- Makes scheduling more convenient and increases show-ups.
- Sales teams can fill diaries effectively.
- When reps have gaps, pull future appointments forward for same-day conversions (often a higher close rate).
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Show-up rate tactics
- Reminder sequence: 24 hours before, morning of, and 1 hour before.
- Automated reminders plus personal touches reduce no-shows.
- Aim for same-day or next-day appointments wherever possible—shorter gaps lead to higher attendance.
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“Feed the killers”
- Top closers get top leads. Lower-performing reps handle less-qualified leads.
- Minimises losing “slam-dunk” sales and motivates reps to improve.
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Publicly highlight show-up rates
- Reward those with the highest show-up rates, not just highest closes.
- Shows the importance of ensuring prospects actually attend calls.
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Competition = us vs. them
- Rally the team against external competitors rather than pitting reps against each other.
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Daily huddles & role-playing
- Provide immediate feedback, stopping reps mid-sentence to correct mistakes.
- Repetition cements better behaviour.
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Sales manager ≠ top closer
- Coaching and leadership differ from personal closing ability.
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He who asks the most times closes the most
- Politely re-ask for the sale multiple times, building trust rather than friction.
- Diversification is for later. In early stages, go “all in” on one product or venture.
- We’re all paid by the hour (dollars earned ÷ hours of life). Great entrepreneurs just multiply that rate via leverage—teams, systems, capital.
- Uninformed optimism
- Informed pessimism
- Valley of despair (crisis of meaning)
- Informed optimism
- Achievement
Most people quit in stage 3, never allowing compounding to bear fruit.
- Say “no” to new ideas that tempt you away from your core business.
- Diane Hendricks (roofing billionaire) is a prime example of focusing on one “unsexy” industry and building massive wealth.
- Work = Volume × Leverage: If you can’t do more volume, find ways to accomplish bigger results with the same effort (e.g. better leads, diallers, team members).
- Work rate = Outputs ÷ Time.
- Track daily inputs (calls, DMs, ad spend) rather than obsessing over outcomes alone.
- Elon Musk: Increased net worth by
$140B in one year ($2B/week) by leveraging businesses at scale. - Warren Buffett vs. Coca-Cola CEO: Buffett collected $500M in dividends as an owner, while the CEO made $50M. Ownership leverages capital and assets.
- “Volume negates luck”: The more calls, offers, or ads you make, the higher your odds of success and faster skill-building.
Using the $100M Offers framework (Alex Hormozi): [ \text{Value} = \frac{(\text{Dream Outcome}) \times (\text{Perceived Likelihood of Achievement})} {(\text{Time Delay}) + (\text{Effort & Sacrifice})} ]
- Increase perceived likelihood with social proof, guarantees, or demos.
- Decrease time, effort, or sacrifice to raise perceived value.
- The bigger the dream outcome, the more you can charge.
- Offer early clients free/low-cost trials in exchange for testimonials.
- Incrementally raise prices by ~20% every few clients until you find the market’s threshold.
- Example: Gym Launch started free, earned proof, then sold for $46.2M.
- Simplify your solution: E.g. “3 legs of a stool,” “Fitness, Nutrition, Accountability,” or “3 pillars of success.”
- Analogies help prospects see how you solve their pain without overwhelming details.
- Warm Outreach: tapping friends, network, or existing customers.
- Content (organic): one-to-many marketing through social posts, blogs, videos.
- Paid Ads: one-to-many reach to strangers.
- Cold Outreach: direct DMs, calls, or emails to unknown prospects.
Helpers: referrals, employees, agencies, affiliates/influencers.
Focus on one channel until you exceed $1M+ in annual revenue.
- Aim for 3:1 LTV-to-CAC ratio based on gross profit.
- Example: Starbucks LTV ~$14,000 means they can spend a lot on customer acquisition.
- High LTV allows you to outbid competitors for ads.
[ \text{LTV-to-CAC ratio} = \frac{\text{Lifetime Gross Profit per Customer}}{\text{All-In Customer Acquisition Cost}} ]
- Collect hooks in a “swipe file.”
- Write ~50 new hooks each session, focusing on the first 5 seconds (80% of ad success).
- Volume negates luck: Post or test ads in high quantities.
- If an ad is a “mega-winner,” reuse it with minor tweaks (background, headline, pacing).
- Branding = associations formed by consistent messages, experiences, and social proof.
- Direct response = immediate returns on ad spend but stops once ads stop.
- Strong brand drives repeated, premium sales with less friction.
- Hire A-players: Each hire should raise the average bar.
- A single great performer can produce multiples of an average hire’s output.
- Let some fires burn: Focus first 4–6 hours on critical tasks; not everything is truly urgent.
- Interview widely to learn “what good looks like” and ensure you find top talent.
- Budget, Authority, Need, Timing
- Kill “zombie leads” early by ensuring they have the funds, the decision power, a real need, and an urgent timeline.
- Clarify: Their real problem.
- Label: The gap between now and their goal.
- Overview past pain: Emphasise costs of inaction.
- Sell the vacation: Focus on the outcome, not the “flight.”
- Explain away concerns: Use structured objection handling.
- Reinforce: Praise their decision to move forward.
- Acknowledge: Show you heard them (“So it sounds like…”).
- Associate: Relate to a story or example for empathy.
- Ask: A question that moves the conversation forward.
- For 100 days, do 100 primary actions daily (e.g. 100 DMs, $100 in ads, 100 minutes of content).
- Keeping track of inputs ensures enough volume to see meaningful results.
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33/33/33 split:
- 33% profit to yourself,
- 33% reinvest in growth,
- 33% as reserve funds.
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Watermark approach:
- Pay yourself anything above a set “watermark.”
- The rest funds future hires or expansions.
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You only need to “get rich” once: Avoid betting everything again after a big win.
- Consistency outperforms sporadic brilliance. Keep improving your product, scripts, and processes.
- “The money isn’t made in the buy or the sell; it’s made in the wait.”
- Results compound over time, so short-term impatience sabotages exponential growth.
- Sell 7 Days & Respond Fast: Cover weekends, respond to leads within 60 seconds, and book same-day or next-day calls.
- Focus on One Thing: Push through the “valley of despair” and refuse shiny distractions.
- Adopt High-Volume Activities: “Volume negates luck”—test many hooks, contact many prospects, and practise frequently.
- Use Frameworks: BANT for qualifying, C.L.O.S.E.R. for structuring calls, AAA for objections.
- Improve the Offer: Raise perceived value, reduce effort/time, and gather real proof or testimonials.
- Aim for Solid LTV-to-CAC: Work towards a 3:1 ratio or better, focusing on gross profit.
- Hire & Reward Talent: Feed top reps the best leads; celebrate not just closes but show-up rates and strong fundamentals.
- Pay Yourself Wisely: Use a systematic approach (33/33/33 or watermark) to reduce stress and build reserves.
- Stay Consistent: Most growth comes from compounding small daily improvements.
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Weekend Sales = +104 Days → ~29% extra potential revenue.
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Responding within 60 seconds = +391% close probability.
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50% of prospects buy from the first responder.
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BANT: Budget, Authority, Need, Timing.
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C.L.O.S.E.R.: Clarify, Label, Overview pain, Sell outcome, Explain concerns, Reinforce.
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AAA: Acknowledge, Associate, Ask.
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He who asks (for the sale) the most closes the most (assuming good rapport).
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Work = Outputs = Volume × Leverage.
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Value Equation:
[ \text{Value} = \frac{(\text{Dream Outcome}) \times (\text{Perceived Likelihood})} {(\text{Time Delay}) + (\text{Effort & Sacrifice})} ] -
LTV-to-CAC = (\frac{\text{Gross Profit per Customer}}{\text{Acquisition Cost}})
- Aim for 3:1 or better.
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Rule of 100: 100 daily actions (e.g. 100 DMs or $100 in ads) for 100 days.
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Compounding formula (annual growth):
[ \text{Future Value} = \text{Present Value} \times (1 + r)^t ]
Use these frameworks and statistics to take action consistently. Whether your main focus is boosting weekend sales, improving fast response times, refining your product’s perceived value, or scaling up via paid ads, the key is daily execution. By applying the principles above—and steadily compounding small wins—you’ll build a business that not only thrives today but continues growing for the long haul.
Remember: The journey isn’t about overnight tricks; it’s about determined, strategic work guided by proven frameworks. Keep iterating, measure your progress, and stay in the game.