Helping Business Owners Reinvest Into Their Businesses | Ep 956
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
In this episode of the Hermosy Hotline, Alex Hormozi takes live calls from entrepreneurs to provide strategic business guidance. The episode features three main callers: John, who runs a $995k/year online back pain program with social media following challenges; Steven, a podiatrist doing $54k monthly with custom insoles but struggling to scale Google Ads; and Liz, who operates a $600k monthly marketing automation business hitting advertising plateaus. (00:21)
- Main Theme: The episode focuses on scaling challenges for established businesses, emphasizing the importance of learning marketing skills personally, reinvesting profits for growth, and understanding customer awareness levels to break through revenue plateaus.
Speakers
Alex Hormozi
Alex Hormozi is a successful entrepreneur and business strategist known for scaling multiple businesses to eight and nine-figure revenues. He's the author of "$100M Leads" and operates Acquisition.com, helping business owners overcome growth challenges through strategic advice and proven frameworks.
Key Takeaways
Reinvest Profits as Personal Education When Business is Small
When Steven expressed concerns about spending more on ads, Alex emphasized a crucial mindset shift around profit reinvestment. (16:36) Alex shared advice from a $35 million entrepreneur about dedicating a percentage of income to learning with the expectation of zero ROI on 9 out of 10 investments, but the 10th making 10x returns. For small businesses, reinvestment primarily means investing in yourself - your skills and knowledge. This approach transforms business owners from being dependent on others' expertise to becoming self-reliant operators who can make informed decisions and spot opportunities others miss.
Learn Core Marketing Skills Personally Rather Than Outsourcing Everything
Throughout multiple calls, Alex consistently advocated for business owners to learn essential marketing skills themselves. (14:19) With Steven's Google Ads situation, Alex recommended a unique approach: pay the agency but control the mouse during strategy sessions, asking questions and recording everything to understand the "why" behind each action. This hands-on learning approach allows entrepreneurs to quickly become competent enough to either take over or make more informed decisions about their marketing investments.
Scale Content Production Rather Than Perfect Individual Pieces
John's team spent 8 hours editing single posts, believing quality over quantity was the answer. (02:04) Alex debunked this mythology by citing examples like Fox News posting hourly on YouTube and Bollywood accounts posting 100 times daily on Instagram. He explained that audiences have "insatiable demand for value" and minimal tolerance for fluff. The real constraint isn't audience fatigue but creator fatigue and insufficient content volume to reach different segments of the audience effectively.
Match Hook Strategy to Customer Awareness Levels
Liz's business hit a scaling ceiling because her ads only targeted the most aware customers - those already familiar with ManyChat and marketing automation. (24:01) Alex explained that Facebook's audience for "$25k monthly spend businesses who know about ManyChat" is extremely limited. To scale, she needed to create hooks for unaware customers using curiosity-driven messages like "your business is losing thousands daily because you don't have this one integration." This requires longer nurturing funnels and lead magnets rather than direct sales calls.
Leverage Your Current Position's Advantages
Alex addressed the common insecurity of newcomers competing against established players by reframing the conversation around positional advantages. (10:45) New entrepreneurs shouldn't try to compete on credibility but on accessibility and personal attention. While established players can claim experience and scale, newcomers can offer direct access, personal phone numbers, and genuine care about individual outcomes. Both positions can win by playing to their respective strengths rather than trying to compete on the other's terms.
Statistics & Facts
- A Bollywood account generates a billion views monthly on Instagram by posting 100 posts per day, demonstrating that platform limits on content volume are largely mythological. (02:24)
- Fox News publishes one long-form piece per hour on YouTube and achieves around 300 million views, showing consistent high-frequency content production by successful media companies. (02:22)
- Only 3% of any audience is ready to buy immediately while 97% isn't ready to purchase, explaining why direct-offer advertising hits scaling ceilings quickly compared to educational content approaches. (26:40)
