Scaling Revenue Through Smarter Monetization and Offers

Key Quotes

"So if you want to so think about it like this, there's there's a couple ways you can grow the business. Number one is that you can sell more media spots. That's the easiest thing you could do to grow the business. So that would be like, I'll outreach to other people who have who who buy media in your type of business and are willing to buy more ad spots. That's like thing one. That's going to be capped though based on the amount of eyeballs and impressions that you're getting, but that would be like the fastest lever."

Alex Hormozi explains that the quickest way to increase revenue for a media business is to sell more advertising spots. This involves reaching out to other businesses that purchase advertising and convincing them to buy more ad space. Hormozi notes that this method has a ceiling based on audience reach but is the fastest way to generate immediate growth.

"The lowest risk thing that you can do is you've you can just be an affiliate, which means that you send traffic and you get paid after the sale. All right, that is the the single easiest thing you can do. The next thing you can do is you can do media sponsorships, which is what you're doing right? So now you're saying, hey, I want to get paid no matter what. I don't care what your outcomes are."

Alex Hormozi outlines a spectrum of risk and reward for growing a business, starting with affiliate marketing as the lowest risk. In this model, the business owner earns a commission only after a sale is made. Hormozi then contrasts this with media sponsorships, where payment is received regardless of sales outcomes, representing a step up in guaranteed income.

"The next level that you can think about is you can do white label, which means that you can go and find a product that you like. You can dropship it or you can like, you're not manufacturing anything like that, but you white label it and you put your brand on it and people buy it from your channel. The next thing you can do is you can do a minority deal, which is where you find an existing product that you like a lot. So maybe it's one of your bigger sponsors and say, hey, I will make this, you know, more exclusive for me, but I want some points of equity, I want sort of royalty or rev share on what I can bring you."

Alex Hormozi describes two more advanced business growth strategies: white labeling and minority deals. White labeling involves rebranding existing products to sell under one's own brand, while a minority deal entails partnering with an existing company to gain equity or a revenue share in exchange for promoting their product. Hormozi positions these as steps beyond direct media sales, offering greater potential for profit and ownership.

"The last and most risky but highest reward would be you own 100%. So you actually just you build your own product or service and you have free advertising from your existing media business to go sell that. But I want to I want to warn you that's getting into the game like you're getting into the business of business. So these two are significantly easier. This one is pretty easy too. I might flip these so like one, two, and minority deal, you basically just keep making media and you just change the economics of how you make media. White labeling and you owning your own thing are you really getting into the game of business."

Alex Hormozi identifies owning 100% of one's own product or service as the highest risk, highest reward strategy, leveraging existing media for free advertising. However, he cautions that this shifts the focus to the "business of business" itself, distinguishing it from simpler models like affiliate marketing or sponsorships. Hormozi suggests that white labeling and creating one's own product are fundamentally different from merely monetizing media content.

"My best friend is a really good web developer, we joined forces, started like using his network to get clients. So we've done around 25,000 in the last 12 months, right? We're proud to say we've never had a client churn, but we're kind of like a glorified tech support department."

Craig describes his digital services business, which he started with a web developer friend. He highlights their success in retaining clients, having not lost a single one in the past year, and achieving $25,000 in revenue over 12 months. However, Craig also expresses dissatisfaction, feeling that their role has become akin to a "glorified tech support department" rather than a strategic service provider.

"I wouldn't use the word audit because I think that sounds boring and not fun. So I would say like, look at like, we will find you at least seven revenue opportunities that you can set up within the next 30 days for free. Gotcha. Okay. And then you walk them through it. Yeah, way better. You walk them through it. You say, hey, you can do this on your own, turn it over to, you know, a web company, or we'll do it for you."

Alex Hormozi advises Craig to reframe his lead magnet from a "boring" audit to something more appealing, like identifying "seven revenue opportunities" within 30 days for free. Hormozi suggests that this approach is more engaging and sets up a clear upsell opportunity. He explains that after presenting these opportunities, Craig can offer to implement them himself or let the client handle it.

"I find it difficult to get customers and my costs are high. Most the rest of the people pay rent. Okay, got it. So I mean, I'm going to guess that you're, I'm not sure if you're running ads, you might be mispriced, but usually like this is something that I call pseudo medical, which is one of my favorite spaces to be in because you have so much pricing power."

Alex Hormozi addresses a beauty salon owner in Romania who is struggling with customer acquisition and high costs. Hormozi suggests that the business might be mispriced, especially given its classification as "pseudo medical," a sector he favors for its high pricing power. He implies that by adjusting prices and potentially implementing specific marketing strategies, the salon owner could overcome these challenges.