Get 36X More Results | Skool Q&A Ep 783

28 Oct 2024 · 15 min

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Podcast Notes: The Game with Alex Hormozi - Episode 783: Get 36X More Results | Skool Q&A

Episode Overview In this episode of *The Game*, Alex Hormozi discusses strategies for business growth, specifically focusing on maximizing results from content creation and outreach. He introduces the concept of the "Rule of 100" and emphasizes the significance of platform selection for generating revenue and customer engagement.

Key Concepts

  1. The Power of Platform Selection
  2. A case study of two brothers with a credit community:
  3. TikTok: 800,000 followers, but generated only 10% of revenue.
  4. Instagram: 200,000 followers, generating 90% of revenue.
  5. This highlights the importance of where to focus efforts for maximum return on investment (ROI).
  1. Rule of 100
  2. 100 minutes of content creation: Focus on producing high-quality content daily.
  3. 100 minutes of outreach: Engage with followers who interact with your posts.
  4. 100 comments: Comment on relevant community posts to boost visibility and engagement.
  5. Engaging with existing content can yield greater returns than creating new posts due to algorithm advantages.
  1. Consistency Over Novelty
  2. The importance of consistent effort in content creation and outreach.
  3. New entrepreneurs often seek novelty, but businesses thrive on consistency.
  1. Effective Engagement Strategies
  2. Engage with commenters on your posts to warm up leads.
  3. Comment thoughtfully on others' posts to gain visibility and attract reciprocation.
  4. Build relationships within communities to enhance visibility and partnership opportunities.

Key Takeaways

Platform Effectiveness

  • Content Performance by Platform:
  • Highest ROI platforms are YouTube, Instagram, and Email.
  • TikTok was noted as the lowest performer for service-based businesses.

Importance of Email

  • A significant percentage of revenue can be generated through email marketing (e.g., 90% in a case study with a $600 million/year business).
  • Email serves as a high-conversion channel despite its slower growth.

Practical Application

  • For new content creators:
  • Focus on one platform to master it before diversifying.
  • Use the Rule of 100 to manage content creation and outreach strategically.
  • For growth operators:
  • Target Instagram and YouTube influencers for collaboration and promotion.

Conclusion Alex Hormozi emphasizes the strategic allocation of time and resources on platforms that yield the best results. By following the Rule of 100 and focusing on consistent engagement rather than chasing novelty, entrepreneurs can maximize their business growth potential.

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Transcript

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0:00There was a pair of brothers. They own a credit community. They have a TikTok that has over 800 ,000 people who follow them. And then they have an Instagram that has like 200 ,000 people who follow them. This is where it gets suspicious or interesting. Guess where 90 % of their revenue is coming from? The 200K platform was generating 90%, 90 % of their revenue. This is where like I get really interested in this because that wasn't even a apples to apples comparison. person that was a 4x differential but you still had a 90 10 split which means it's more like a 36 to 1 difference in terms of return on effort so this is why I think this is really important if you can get 36 times the return on one platform versus another then where do you think you should put your attention some of you guys are contemplating beginning making content other of you guys have already started and you're split between different platforms platforms.

0:58First off, if you are starting out, pick one platform, it'll make it much easier for you because you'll be able to learn the platform or consume the platform, become native to it. One of the things that we're doing in the 100, which I'll share with you, is we are encouraging the newer people to comment. Kirby, why don't you give the adaptation of the rule of 100 I have from the book? So we spoke with a lot of people making between$10 ,000 a month and up to a million dollars a month through school. And we saw a pattern between what lots of people were doing. And we called it the rule of 100. It's inspired by a wise man.

1:33It's basically 100 minutes per day creating content, 100 minutes per day doing outreach. And you do the outreach to the people that have engaged with your comments or your posts or have followed you or have liked it. And then finally, you do 100 comments. And that's the thing that's different. If you create a post, it relies on the algorithm, which means your posts have to be great. Whereas comments oftentimes just go to the top of the feed. So you can get a lot of attention, even if you're not the best at creating content through comments. 100 minutes of content so that you can get people who like and comment on your stuff, which then creates the beginning of your leads list for outreach.

2:12So you hit all those people up first that also will decrease the number of true colds that you're doing. The thing is, is like if you're getting consistently at least 100 engagements between comments and likes, like specifically is going to get a lot more. That will automatically massively shift your response rates on your outreach. OK, so one is you're not going to get your account shut down as easily. It's going to be warmer and have higher returns, replies, et cetera. So you just get more engaged leads for the work you put in. This is leverage. Right. The last piece is commenting on other people's stuff.

2:43And so you can do that within communities or you can do that on public posts. Either of those work. I think we prefer communities because it's even tighter and you have to compete even less on rankings. And so by doing this, the point of those comments, by the way, is that you make the best comment on the post. And the interesting thing is that the bar for the best comment is so much lower than the bar for the best posts. And so this is kind of the arbitrage opportunity that we see that people are doing really well with kind of a combination of because like a really good comment is like a weird combo of organic content and outreach.

3:19So it's kind of like a little bit of both. But you'll often get you'll kind of piggyback on the exposure of the post of someone else's high quality post, which, again, gets you more for what you put in. And if you're starting out, this is a great kind of method overall. And so that 100 minutes of content, just to be clear, because I apparently didn't make this clear in the book, you need to publish it. You don't make 100 minutes of content and then not publish it. So maybe I have to put that update to that chapter. I can't even believe I have to say this. You make the 100 minutes, then post it.

3:48Then you can engage with everybody who engages with that post. And then basically your excess capacity, in addition to that, you then do 100 comments inside of communities that have your avatar. And this is also as a side note, where it gets kind of important is, if you're in a community that's really massive and doing really well, reach out to the owner of the community, because like, don't do it up front, provide value first, let's put our smart cookies hats on, provide value first. And then if you've done that a little bit, you'll kind of start ranking up in the community on any platform as a top contributor or whatever.

4:18And then that'll give you some kudos. Many of you here, obviously have your own communities. And so if someone makes your job easier, you like that. person. And so when you have top contributors, like right now, think about your top contributors, you're almost like you have like warm and fuzzies towards, right? You're like, man, those guys, those guys are awesome. Those guys help me out. Reach out to those people to let them know like what you're doing, what you're up to and see if you can help them in any way. Sometimes it creates the bridge for great partnerships because sometimes they have more lead flow than they can handle.

4:43This creates opportunities for growth operators. For those of you who are pursuing that path, the rule of 300 is the whole 100 times three, just with no paid ad. So it's kind of like the organic version of the 100 spelled out really, really clearly. Okay. So we knew this 100 minutes a day somehow has just thrown people. Guys, the 100 minutes a day is going to be for scripting and research. Like because in the beginning, you can use minimal edits and have good scripting and good content itself that you can get away with not having great edits. I have a lot of posts because I do less pre because I don't have as much time.

5:21And so my team will take a three minute rant and shove it into 60 seconds so that it can become a short. But if I spent all my time taking 100 minutes to make a short, then I would be able to condense it into 60 seconds, buy a teleprompter and say the words. 100 minutes isn't much time. Well, it's enough. An ounce of pre is worth a pound of post is what we say internal. How would you get started growing on Instagram? I know most people are on Instagram. Dude, it's the rule of 300 for those of you guys who were asking. So like you make one piece of content. And if you're like, shit, man, that's going to take me more than 100 minutes.

6:00Well, 100 minutes is just the content piece. We still have the outreach and the comments. We still have the other pieces. And so if you're like, dude, this is so much work. It's like, oh, welcome to starting a business. There's a reason that people don't have them. It's not easy. It's simple. It's very simple to understand. It's hard to do. And so the thing is, is that your motivation will wane far before the strategy stops work. You become less motivated and then you seek out different shiny things because you seek novelty. But your business seeks consistency. Your goal is to make yourself into the ultimate weapon for your business, which is like, how do I become a machine?

6:37How do I consistently make my 100 minutes of content and 100 minutes of content? Guys, this is not me saying go make an hour and 40 minutes of content. This is me saying take an hour and a half to make one piece of content that's good. That's it. That's all you're doing. Simple. And then you reach out to every single person who engages. And by the way, you probably had people who engaged in yesterday's content and the day before's content and the day before's content. Because content keeps running for a week plus, by the way. And when people go to your page, they like multiple things. And so you can then look at your notifications and every single person you likes.

7:12Guys, this is how it compounds. So the first day, you're only going to have people respond on the first day. The second day, you get the first thing and the second thing. The third day, you get first, second, and third. And you're going to have comments on each and likes on each. And guess what? Very quickly, your outbound messages are going to be 100 % eaten up by people who are only engaging your content. And this is our objective for everyone in speedrunners is to get to that point as quickly as possible. And I don't think it's going to take you longer than like 7, 14, 30 days tops for your outbound messages to be 100 % from likes and comments of the stuff you have.

7:43Now, this is especially important when coupled with commenting on other people's stuff. Because if you comment on other people's stuff, thoughtfully, guess what they do? They click on your profile, they visit, sometimes they subscribe, and then guess what happens on your next piece of content? They tend to reciprocate. People are like, wow, that guy left me a comment. I'm going to leave a comment and tell him his stuff was good. This is also how you build a deeply engaged audience on your own profile. And then that's where you have a guy who's got 3 ,000 followers on Instagram outselling somebody who's got 100 ,000 followers on Instagram who just did a bunch of algo hacking.

8:14So you're building a deep brand around the stuff that your ideal avatar likes, which is good. And they will subscribe. People subscribe. Think about the people that you subscribe to. Sure, you've got your big guys. You might subscribe to me. You might subscribe to Gary V. You might subscribe to Ed Mylay. You might subscribe to whatever. You got your big dudes who capture a lot. Sure. and then you've got probably a like a this middle ground where there's not a ton and then you probably have a bunch of micro creators that you follow that you're like oh i love this girl's case oh i love this guy's uh paper plane thing or whatever right and you just love that stuff and so when that guy makes an offer you're like oh this guy's fucking great and if that guy messages you're like oh he's a real person right and so all of these things build the relationship that we're trying to get everybody into as fast as possible if you are going to be on a platform and you're going to be spending your time.

9:02You want to be spending your time on the platform that's going to yield you the most results. I have a monster video coming out, so I'm not going to spoil it, but I will tell you some of the highlights. We actually looked at our traffic and conversion by platform. The TLDR is that TikTok was by far the lowest value platform for us. Now, that may not be true if you have a TikTok shop and you're selling$19 widgets and fidget spinners, but if you're selling services, you're selling B2B, even B2C high ticket, TikTok's not going to, it probably wouldn't be my first choice. I'll just put it that way.

9:35The three highest ROI or ROAS channels that we have are in order, YouTube, Instagram, and email. That was very interesting for us. Now, mind you, email doesn't inherently grow, but it is very much a platform. And so it kind of like sits a little bit off to the side. I was talking to somebody that I was interviewing for a marketing director role at the portfolio level. So basically to oversee all the marketers of all the portfolio companies. And he came from a$600 million a year business. Very, very good. And so they had hired, he had hired while he was with that company, a company that does a billion dollars a year in sales.

10:11And he asked them to consult. And one of the things that was really interesting about that consulting period was that he found that 90 % of the revenue, or they shared that 90 % of the revenue they were generating was from email. And I was like, that is wild. Now, as soon as they heard that, they then started implementing email far more heavily inside of their$600 million business and started generating 40 % of revenue over the next 18 months started coming from email. And so I heard those stats. We ended up not hiring that particular guy for different reasons. But if you've noticed, we actually just started emailing a lot too at acquisition.com for those of you who are on the list.

10:46And for me, I use a proven hook because like tweets that outperform is what I use as my word. So I already know people like that. And you can also like if you have two, you could put the other one below because you're going to send far fewer emails and you will tweet or have any kind of short form content. And so all of those things are useful. We have TikTok and Instagram, right? And so when we looked at this, what was interesting is that we get the most traffic to acquisition.com. Now, this one shocked me. The most traffic we get to acquisition.com comes from Instagram, not YouTube. By a lot, actually, which is I know.

11:20Here's where YouTube makes it up. the conversion on YouTube traffic is four times that of Instagram. And so the intent of the traffic is significantly higher. So basically YouTube sets half the traffic of Instagram, but it gets four times the conversion. And so YouTube still creates twice as many contacts as Instagram does for us. And so those are my two primary growth channels. Then beneath that, you have LinkedIn, which for me is super valuable on the recruiting side, which probably matters less for some of you guys but for me linkedin's super valuable in that i see podcasts a lot like email very very difficult to grow but it kind of becomes a bucket and so i kind of see podcasts as my like audio email and then i see my email as my written email that tends to work i i inherently don't like investing money in growing my podcast i want it to be able to grow on its own before putting money into it it's kind of like it's kind of like a product like if i have really high churn on something, I don't want to put money into it.

12:20Like you want to fix the product, right? Right now, my podcast about maintains at about a million a month. And honestly, it's been because I haven't made podcasts for Wisconsin. So if I just make kind of like repurposed content, it basically maintains. Whenever I make a video where I just do a podcast, it always outperforms everything. Surprise, surprise, like you have to work more to make things grow. That's kind of the what I have found from those platforms. But if I'm thinking about where I'm going to be allocating my time, first and second are Instagram and YouTube by far, by a good margin.

12:55And if I had a third thing, it would be email that's capturing and remarketing to those people. That would be my first simple business if I just did two things or three things, right? That would be it. It's like two front ends. And then this just continues to remarket using the structure that I gave you guys. Now, here's where this relates to you very personally. If you're a growth operator and you're trying to figure out who should I go after, I would be going after Instagram influencers and YouTube influencers. OK, and if I honestly had to pick, I'd probably do Instagram if they had genuine engagement because Instagram has way more ways to generate clicks than YouTube does.

13:35So YouTube's very good for top of funnel brand awareness because people see your face, they engage with you. But I can't like DM my subscribers. I can't say like swipe up on my YouTube shorts. Like none of that stuff can happen. On YouTube, YouTube's very good at making YouTube money, right? And so I think honestly, YouTube has made up for that by paying creators well, because it's more difficult to do commerce because you have to get everybody off the platform. Whereas Instagram, they don't need to pay creators because it's much easier to convert Instagram traffic. You've got LinkedIn bio, which is way more effective than the profile or even the description on YouTube.

14:15You have your story CTAs that you can ask people to do. There's many chat integrations that you can run, which is a lot of the school games winners. You know, come at this and I'll give you this lead magnet. Like none of that's available on YouTube. You can't do that. You have to drive them to a funnel. I bring this up because if you are a growth operator, that's probably who I would go after. and then also if you're making content, then I would be looking at those as my two primary channels.

From the publisher

Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned and will learn on his path from $100M to $1B in net worth.

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