Identify and Address Business Scaling Constraints Through Content

Key Quotes

"I think that for many people one of the the like a huge leg up that you can have is working one to three years in the industry that you want to get into like i think there's just there's huge upside there because you don't even know what you don't know and you learn so many like default ways of operating"

Alex Hormozi suggests that gaining experience within a target industry for one to three years offers significant advantages. Hormozi explains that this period allows individuals to learn unspoken operational norms and discover knowledge gaps they were previously unaware of.

"And so for me i'd rather just like kind of like if you're building a building like you're building an ikea desk right if you don't have the directions and you have the pieces you might eventually figure it out but it's so much it takes so much more time than having a model to look at because you automatically know you're like okay well first thing i'm going to do is i'm going to separate my tools over here and put my screws over here and then i'm going to put my my blocks over here great so it's the first thing that's what you do"

Alex Hormozi uses the analogy of building an IKEA desk to illustrate the benefit of having a model or clear directions when learning a new skill. Hormozi argues that without a guide, assembling components like bricks or desk parts is significantly more time-consuming and prone to error than following a set of instructions.

"I think you can probably make more i'll just i'll just put that out there i would i would 100 not believe in the mythology of like there's a platform limit there totally isn't and that's on and i i pretty much stand by that on every platform"

Alex Hormozi challenges the notion of platform-imposed content limits, stating that such ideas are mythological. Hormozi asserts that platforms do not inherently restrict the amount of content one can produce, encouraging creators to disregard this perceived limitation.

"So if we have let's imagine that this circle represents a million people okay when you make a post you're getting like one to 2 of your audience to actually see it right okay okay now where your issue comes up is that when you make your call you know your direct call to action posts then it's like goes from like that kind of thicker dot to just like an itty bitty speck because your your reach gets hammered right"

Alex Hormozi explains that a typical post reaches only a small fraction of an audience, but direct calls to action significantly reduce this reach further. Hormozi illustrates this by comparing the audience reach of a general post to a much smaller segment for posts with specific calls to action.

"And so i think if you want to broaden uh kind of like the net that you're going through just make the ask that you have a little bit lighter so i think one you've got your direct like if you're doing one a day i would do like maybe two a week of the direct one and then do the remainder of them as posts that are like like lead magnet centered right like seven tips to fix this or whatever right"

Alex Hormozi advises making calls to action less demanding to broaden audience engagement. Hormozi suggests that for a daily posting schedule, a few direct calls to action per week can be balanced with lead magnet-focused posts offering valuable content like "seven tips to fix this."

"My recommendation is um i would want you to double your content and if you want to keep one of your your ctas as because i don't want you to like i don't want your business to go down keep one cta as your direct to you know book a call and keep the other and make the second cta for the lead magnet and just do two a day sounds good"

Alex Hormozi recommends doubling content output and maintaining a dual call-to-action strategy. Hormozi suggests dedicating one call to action to direct booking and another to a lead magnet, while increasing posting frequency to two per day to sustain business growth.

"And so that's why i think i would recommend make money earn and learn one to three years like my first thing out of college and like college is different now than it was then but like like i did college for three years and then i worked for two years and then the next thing i did is i still didn't even start immediately i then um started as like an apprentice at a gym because i wanted to get in the fitness business"

Alex Hormozi advocates for a "earn and learn" approach for one to three years post-college, emphasizing practical experience. Hormozi shares his personal journey of working in the fitness industry as an apprentice after completing his education, highlighting the value of hands-on learning.

"So what we have to do is basically pair this commodity of jewelry with the meaning that you then ascribe to it or the narrative or the story that you put on top of it and so two years ago i did my book launch for the leads book and some of you guys might have been there and i sold like millions of dollars of hats all right and people were willing to pay 100 essentially for a hat"

Alex Hormozi explains that to sell commodities like jewelry effectively, it's crucial to imbue them with meaning, narrative, or story. Hormozi uses his book launch, where hats were sold for a significant price, as an example of how attaching a narrative can increase perceived value.

"So i'm going to guess right now that that's probably the issue so are you familiar with the five levels of awareness from uh this is eugene schwartz yes i am okay so you have to translate those levels of awareness to the types of hooks that you're that you're making so i'm going to guess so if you have like a hard ceiling on your advertising spend like once you get over a certain level like you can't spend more it's typically because the nature of the hooks and the content that you're talking about only really relates to the bottom of the funnel"

Alex Hormozi suggests that advertising spend limitations are often due to content hooks that only appeal to the bottom of the sales funnel. Hormozi references Eugene Schwartz's five levels of awareness, indicating that advertising content needs to be tailored to different stages of customer awareness to scale effectively.

"So i would want to take as much of that profit as humanly possible and i'm just telling i'm telling you how i do things i take all that profit and i just see that as like this is my opportunity to reinvest in the business when the business is small reinvestment is you you are the reinvestment and so that's where i'm like okay i want to i'm going to pay the my current agency and i'm going to pay the next agency and i'm going to tell both of them i want them to teach me what they're doing and i'm going to spend my own budget too"