The Money Printing Machine: Investing in Advertising | Ep 626

The Game with Alex Hormozi

Alex Hormozi

Entrepreneurship, Education, Business, How To

4.9 • 4.4K Ratings

🗓️ 31 October 2023

⏱️ 15 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

"Fundamentally, if you're making more money back from customers than it costs you to get them, then you are printing money." Today, Alex (@AlexHormozi) shares his three-step process for scaling ads in portfolio companies, emphasizing the importance of tracking ad spend, preparing to lose money, and optimizing for the lifetime gross profit to customer acquisition cost ratio. He also discusses the benefits of split testing and creating multiple ad creatives to find the winning formula for successful advertising campaigns.

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 on his path from $100M to $1B in net worth.

Timestamps:

(1:22) - Phase 1: Track expenses, spend only when traceable.

(2:32) - Phase 2: Start with money loss, find winners, extend payback.

(6:56) - Phase 3: Reach money printing. Measure LTGP/CAC for growth.

(7:18) - Focus on LTGP/CAC ratio, efficient acquisition, quick payback.

(10:19) - Businesses grow through client-financed acquisition, overcoming bottlenecks.

(12:26) - Scale advertising once foundational aspects are perfected.

Follow Alex Hormozi’s Socials:

Transcript

Click on a timestamp to play from that location

0:00.0	Real quick, you guys already know that I don't run any ads on this, and I don't sell anything,
0:04.5	and so the only ask that I can ever have are you guys that you help me spread the words,
0:07.7	we can not more entrepreneurs, make more money, feed their families, make better products,
0:11.9	and have better experiences for their employees and customers.
0:14.9	And the only way we do that is if you can rate and review and share this podcast.
0:19.4	So the single thing that I have to do is you can just leave a review,
0:21.9	but take you 10 seconds or one type of the thumb, it would mean the absolute world to me,
0:25.2	and more importantly, it may change the world of someone else.
0:28.1	And when you play in the big game of paid ads, expect to lose more times than you win.
0:31.9	But when you win, double, triple, quadruple, quintuple,
0:35.5	one million fucking percent down on it and scale the hell out of it, because that's how you make it back.
0:42.7	Welcome to the game where we talk about how to sell more stuff to more people in more ways
0:46.0	and build businesses worth owning. I'm trying to build a billion dollar thing with acquisition.com.
0:50.4	I always wish pesos, musk and buffet had documented their journey,
0:53.2	so I'm doing it for the rest of us. Please share and enjoy.
0:58.1	What I want to walk you through is kind of my three-step process for how I've scaled ads in all of our portfolio companies,
1:02.4	companies that I've owned, majority of, outright, or minority of.
1:05.6	And for a little bit of context here, between our portfolio, we spend over $150,000 a day in paid advertising,
1:11.3	and I have a lifetime return in my own personal portfolio of 36 to one,
1:16.0	meaning for every one dollar I spend, I get $36 back, all right?
1:19.7	So I'm trying to help you do it. This is how I think through it.
1:22.8	Phase one is that you have to track money, all right?
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Alex Hormozi, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Alex Hormozi and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.