Alex Hormozi Reveals The MOST Powerful Marketing Strategy in 2023

I continue to be inspired by how much

Word of Mouth actually matters like it

just every year I feel like it sets a

new record in my mind for how important

it is because people right now like I

see this all the time people like it's

all about influencers and whatever like

and sure like the tactics of ads and all

this stuff like that's great but

the only thing that is still viral is

Word of Mouth like everything else is

linear in terms of the relationship like

if you spend a dollar in ads you get X

back if you do a cold reach out you get

X back if you do 100 you triple it you a

thousand it it's a thousand to a

thousand like whatever that relationship

is that ratio it's fixed

word of mouth is the only one that is

exponential in nature one tells two two

tell four four cell eight and so if you

want to have an enduring business you

have to have the monster of Word of

Mouth working for you rather than

against you who's building your

reputation rather than eating it from

underneath of your feet and I think that

like that stuff that you were talking

about earlier where you're like you're

doing this Goodwill and it's coming back

to me I just see that as like the

Invisible Hand of the word of mouth that

just like I mean you've had it happen

100 times I'm sure which is like you go

and you meet somebody like dude my buddy

saw you at an airport and you like

stopped and answered his questions and

whatever yeah and and mind you to be

fair if I'm like somewhere and I can't

it's the thing that bothers me the

absolute movement sometimes I have to be

pleased me too bro I hate it I hate it

so I feel like I'm just I'm like I do

too I feel like like dude I one time and

actually I became really good friends

with this guy because of that exact

scenario dude I had a guy his name was

Roman I'm still friends with them good

[ __ ] dude

came up to me at a speaking event and I

was like I he's like hey man you got

time and I didn't and I'm like no I

can't I can't and uh and dude he was

like he had been going through all this

crazy like really bad stuff yeah

um

and then I dude it was bothering me

that's [ __ ] bad dude like like I

thought the whole time I was speaking

the whole time afterwards I'm like [ __ ]

I gotta find that dude because I got

time now yeah weirdly enough

uh I was at another event and I [ __ ]

ran into the guy and I was able to

apologize and say hey dude I'm like and

he was like you know what dude I

actually that really made me mad I'm

like I'm like bro I I get it I I felt

bad about it yeah you know but that [ __ ]

bothers me too brother and I think that

for the audience I think that the bigger

like sure the tactics that we're doing

right now are like useful but I think

the biggest thing is like the

perspective of there was that person

that bothered Andy enough that it kept

kept him up at night and I think that if

you if you can develop whatever that is

where it's a splinter because it's those

thousand splinters that become the

bundle that becomes very a very strong

stick that you can wield or it's wield

against you

um and like for me like

I think about the products we build

right in the same way where the only way

to build an enduring company is either

to to sell stuff that people never stop

buying from you or

to build a company where people never

stop selling for you those are the only

two ways to build an enduring business

that just continues to thrive over and

over again and if you're one of these

guys who is and like I get the get

because I actually came from the direct

response world of like understanding how

the Arbitrage of like ads bro

that's where I started when I was 18.

right because you think it's right

actually right I was writing [ __ ]

classified ads for a credit booklet that

I wrote credit repair booklet yeah I was

writing classified ads to put in [ __ ]

newspaper yeah like we didn't have the

internet

um but the uh

but what happens is as you scale your

because I'm going to get a little bit

higher level business but hopefully you

guys will ride with me yeah they'll get

it so

as you scale advertising spend you go to

colder and colder audiences meaning

there's people who have less trust and

they're honestly less of a fit than the

warmest like if I if I was like I'm

gonna only Market a vegan powerlifting

women who are moms over whatever and I

had a product that was just for them I'm

probably gonna do okay but if I want to

Market to the nation there's just a less

of a fit with my product and so what

happens is your cost to acquire customer

goes up because ad costs will only go

one way for the rest of time they will

go up and your conversion on future

audiences that are colder will only go

one way which is down so how do you

combat two things that are inevitably

going against you you have to have one

thing that is non-linear in nature that

fights that fight which is word of mouth

because that when that one customer

comes in and tells five people it allows

you to continue to scale because you

have decreased cost of acquisition I'm

getting a little bit like no no business

stuff yeah here but like

it's the only way that it gets big

if what you want if you want to grow

something big then having the strong

word of mouth face which is why like you

can get into transactional sales stuff

sure if you know how to Market you

notice that you can become a millionaire

like you can absolutely do you could

probably become a Deca millionaire

um just by like learning how to sell

[ __ ] and I'm using [ __ ] in the true poop

word like okay yeah terrible stuff that

doesn't doesn't matter right but if you

want to achieve a certain level of scale

my recommendation is to continue to do

the thing at a scale way below your

friends until you figure out a way to

get everybody who buys stuff from you to

tell a friend like if this is a mental

uh exercise I like putting people like

our our portfolio CEOs through I said

okay

the marketing gods have decided that you

are no longer allowed to Market anything

and they eliminate all of your customers

except for one

and every single customer from this

point going forward has to come from

that one customer how do you treat that

customer

and what happens is you start thinking

like well [ __ ] I'll do this definitely

do this differently it's like well then

do that stuff and then what you'll see

is that the result you get from the

remaining the remaining efforts of your

advertising will compound rather than

continue to go linearly in the wrong

direction they compound in the right

direction