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Alex Hormozi has taken the business world by storm.
His $100 million brand message has set him apart, but here are 5 things he's done behind the scenes to build his $100 Million + companies.
Alex has produced one successful YouTube video after another. Most of which are getting hundreds of thousands of views in the first 48 hours.
Wondering how he does it?
The process starts off of YouTube. He starts by doing things in his businesses that get results. But, as he has ideas, he does something unique. At first, he was sending himself an email when he got video ideas, but then he had a better idea.
He decided to post his ideas and thoughts on Twitter first. This way, they would not only get him in front of his market, but he could also validate if the idea was good.
Tweets that got a lot of reach and engagement showed him that these ideas had a better chance of success if a video was made from them. He's rigged the game to only produce videos that he knows have a high Probability of being successful.
Doing this, he's able to make marketing content quickly from something he was already doing and validate his idea.
Each week he and his team analyze his tweets. Tweets that did well become the foundation of YouTube short and long content.
How to apply this:
Alex's YouTube strategy is simple but powerful.
Step 1 - Getting the click
It starts by getting attention and then getting the click. To do this, he focuses on thumbnails and titles that are designed to get attention and get the click.
Step 2 - Getting videos watched
A high watch time is important to getting results on YouTube. Alex's content is both educational and entertaining (this combo is commonly referred to as edutainment). He's himself and has a good personality that makes him very likable and down to earth. This makes his videos watchable.
Step 3 - Optimization
Over time, Alex has optimized his videos to create an even better experience for the viewer. He's done this with new editing styles, creating chapters, making the video easier to watch, and creating playlists to help you find more videos like the one you're watching. Over time, he's also added short content into the mix, which allowed him to increase the volume of content he produces and give you sample points that provide value quickly.
Step 4 - Simple Descriptions
I like that Alex's video descriptions are very simple. They are typically all the same and direct people to one place. The application to become a partner with their company. He seems to be more concerned with user experience than SEO optimization of the description.
With that being said, let's move on to his funnel.
But first…
How to apply this:
At this point, I'm honestly turned off when people start talking about a complicated sales funnel. I'm just burnt out on the entire concept.
That's why I love that Alex has decided to use a simple application funnel as the entire foundation of his business.
Application funnels are simple yet powerful because of how well they qualify prospects.
As the Hormozi's build their media empire, they now seem to be branching out into different types of funnels (for example, the launch of his book is a lead combo funnel). My guess is that they are doing this to increase the email media channel.
However, remember that by all appearances, Alex and Leila have built their $100 million dollar business on the back of a simple application funnel.
How to apply this:
There is a very unique process happening that gives Alex a competitive advantage.
I call this his content flywheel:
Success leads to attention, which leads to more attention, which leads to more success.
This could backfire, but he's leaned into it to give him a brand advantage.
A lot of people wouldn't want others using their face on their YouTube thumbnails or clips of them on their social media posts. But Alex knows something they don't. Others talking about his success and using his face is free marketing for him.
Here's how it works:
People want to interview him, which exposes him to their audiences.
As he gets more successful, he gets interviewed by people who have a bigger reach and audience (Dave Ramsay, for example).
All of this reinforces his brand advantage and gives him a moat of protection around his business.
How to apply it:
Alex doesn't have "clients" or "customers." He has portfolio companies. However, if we look at his portfolio companies as clients for a moment, we gain valuable insights about building a $100 Million business.
Average customer value has a huge impact on the growth potential of a company.
The ideal situation is a high average customer value with a high volume of purchases (Tesla is a good example of this).
But for many, the model of high average customer value with low volume is enough to hit 7 figures.
An example of this is the fact that there are a lot of coaches and consultants that promote high-ticket coaching programs to make $100k+ per month.
That works because the math makes sense.
At an average customer value of $5,000 per pop, you only need 20 clients per month to hit $100k.
Taking this into consideration, Alex's average "customer" value is likely $6,250,000 per year (on the low end). And yes, you read that right.
To get to this number, I calculated the low-end company size he invests in ($1 million EBITDA). If these companies are operating at a 20% profit margin, then the top-line revenue would be around $6 million.
This is money that is now controlled by his company and gives their company MASSIVE leverage.
At $6 million a pop, it doesn't take many deals to get to $100 million+ in revenue.
By this logic, he could hit $100 million with only 16.6 companies in their portfolio.
How to apply this:
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