Podcasts > The Game w/ Alex Hormozi > Why I Still Learn New Ad Platforms The Same Way I Did At $0 | Ep 980

Why I Still Learn New Ad Platforms The Same Way I Did At $0 | Ep 980

By Alex Hormozi

In this episode of The Game, Alex Hormozi shares insights about building business foundations through hands-on experience. He explains why entrepreneurs should gain practical industry knowledge through direct involvement rather than waiting for perfect conditions, drawing from his own experience of starting as a gym apprentice. He discusses how offering free services initially can help refine offerings and understand customer needs.

The episode also covers strategies for content creation, distribution, and advertising. Hormozi addresses how to maintain quality while increasing content output, use platform-specific features for marketing, and manage advertising campaigns effectively. He emphasizes the importance of creating varied content for different levels of buyer awareness and using storytelling to build trust with new audiences.

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Why I Still Learn New Ad Platforms The Same Way I Did At $0 | Ep 980

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Why I Still Learn New Ad Platforms The Same Way I Did At $0 | Ep 980

1-Page Summary

Building Business Foundations and Gaining Industry Knowledge

Hormozi emphasizes that hands-on experience is crucial for building business success. He advises against waiting for perfect conditions, suggesting instead that entrepreneurs should learn through experimentation and real-world experience. According to Hormozi, spending 1-3 years working in a target industry provides invaluable insights that can't be gained otherwise.

Rather than focusing on credentials, Hormozi recommends demonstrating expertise through effort-based accomplishments, such as creating large volumes of content. He shares his own experience of starting as a gym apprentice, where working for free allowed him to gain crucial industry knowledge. This approach of offering free services initially helps refine offerings, understand customer needs, and build a portfolio of results.

Content Creation and Distribution Strategies

When it comes to content creation, Hormozi challenges the notion of platform limits, suggesting that audiences have an "insatiable demand for value." He recommends increasing daily content output while maintaining quality, and rotating different lead magnets to keep audiences engaged. For social media engagement, Hormozi advises leveraging platform-specific features, such as TikTok Shop for product marketing, and using cross-platform strategies to maximize audience interaction.

Advertising and Marketing Tactics For Growth

In discussing advertising strategy, Hormozi emphasizes the importance of continuous reinvestment in testing and optimizing ads. Drawing from his personal experience, he recommends learning to manage advertising campaigns independently, suggesting that understanding broader ad agency processes is more valuable than focusing on minor technical details.

For audience engagement, Hormozi advocates creating varied content that addresses different levels of buyer awareness. He recommends using storytelling and lead magnets to build trust with cold traffic, similar to Dave Ramsey's approach of consistently providing valuable insights to nurture prospects through the buying journey.

1-Page Summary

Additional Materials

Counterarguments

  • While hands-on experience is valuable, academic research and formal education can also provide critical insights and a structured understanding of business principles that are not always learned on the job.
  • Some industries and ventures may require significant upfront investment in education, certification, or planning before experimentation and real-world experience become feasible or responsible.
  • Spending 1-3 years in an industry might not be practical for all entrepreneurs, especially those transitioning from different careers or those with time constraints.
  • Credentials can be important in industries where they are legally required or highly valued by customers and peers, and they can also serve as a shorthand for a certain level of expertise.
  • Offering free services can be unsustainable for some entrepreneurs and might undervalue their work, potentially setting a precedent that could be hard to break from when transitioning to paid services.
  • Content creation without consideration of platform limits may lead to burnout or diminished content quality, and not all content is suitable for all platforms.
  • Increasing daily content output might not be the best strategy for all businesses, especially if it leads to a dilution of brand message or audience fatigue.
  • Rotating lead magnets too frequently could confuse or overwhelm an audience, potentially reducing the effectiveness of each lead magnet.
  • Platform-specific features are not always the best fit for every business model, and over-reliance on a single platform can be risky if that platform changes its algorithms or policies.
  • Cross-platform strategies require significant resources and may not be feasible for smaller businesses with limited marketing teams.
  • Continuous reinvestment in advertising without a clear strategy or understanding of return on investment can lead to financial waste.
  • While managing advertising campaigns independently can be valuable, it may not be the most efficient use of an entrepreneur's time, and professionals or agencies might achieve better results.
  • Varied content is beneficial, but there is also value in having a consistent and focused message that resonates strongly with a specific target audience.
  • Storytelling and lead magnets are effective, but they must be authentic and genuinely valuable to the audience; otherwise, they can come across as manipulative or salesy.
  • Dave Ramsey's approach to nurturing prospects may not be universally applicable, as different target audiences and industries may require different engagement strategies.

Actionables

  • You can gain hands-on experience by volunteering with local businesses or startups in your area of interest to understand the inner workings and challenges they face. This approach allows you to apply your skills in a real-world setting and learn from the successes and failures of these businesses. For example, if you're interested in the restaurant industry, offer to help a local restaurant with their marketing efforts or menu design, observing customer reactions and business operations firsthand.
  • Start a micro-project related to your business idea to test concepts and learn from direct feedback without waiting for perfect conditions. For instance, if you're interested in fashion, create a small line of handmade accessories and sell them at local markets or online. This will give you insights into customer preferences, pricing strategies, and the effort required to produce and market your products.
  • Create a content series on a topic you're passionate about and share it across multiple social media platforms to engage with different audiences. You don't need to be an expert; just document your learning process, share insights, and invite feedback. For example, if you're learning about sustainable living, you could start a blog, a YouTube channel, and an Instagram account where you share tips, challenges, and personal stories about your journey towards a more sustainable lifestyle.

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Why I Still Learn New Ad Platforms The Same Way I Did At $0 | Ep 980

Building Business Foundations and Gaining Industry Knowledge

Hormozi advises that building a business and gaining industry knowledge comes from hands-on experience and understanding how to leverage one's efforts effectively.

Build a Business By Experimenting and Learning From Failures Rather Than Waiting For Skills, Cash, and Clarity

Experimenting With Business Ideas Builds Industry Skills and Knowledge

Hormozi suggests that the best way to acquire skills is through trying things out and learning from the experience. By taking action and occasionally failing, one can gain practical industry skills and knowledge.

1-3 Years' Experience in the Target Industry Provides Valuable Insights

He further emphasizes the value of spending one to three years working within the industry of interest. This approach helps to learn the default ways of operating and gather insights that are not easily discoverable without firsthand experience.

Prioritize Experience and Track Record Over Credentials

Effort-Based Accomplishments Like Large Content Volumes Can Prove Expertise Without Accolades

Hormozi argues in favor of using effort-based achievements to demonstrate expertise. By creating a significant volume of content and documenting the learning curve, it's possible to showcase one's knowledge and skills without necessarily having formal accolades.

Offering Free Work or Apprenticeships Helps Gather Feedback, Refine Offerings, and Build a Results Portfolio

He shares his personal journey, starting as an apprentice at a gym, where he offered to work for free. The apprenticeship offered him a chance to gain insights he wouldn't have had otherwise, such as understanding email marketing. Hormozi s ...

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Building Business Foundations and Gaining Industry Knowledge

Additional Materials

Counterarguments

  • While hands-on experience is invaluable, formal education and theoretical knowledge can also provide a strong foundation and understanding of best practices, which can be applied and adapted in real-world scenarios.
  • Experimentation without a clear strategy or understanding of the market can lead to unnecessary failures and wasted resources; some level of planning and skill development may be necessary before diving in.
  • Learning from failures is important, but it's also crucial to recognize when to pivot or stop, as continuous failure without strategic changes can lead to burnout and financial loss.
  • While working in an industry can provide insights, it's also possible to gain valuable knowledge from mentors, industry research, and academic studies without spending years in a specific field.
  • Credentials can sometimes be a necessary signal of expertise or a requirement for certain industries and should not be completely discounted; they can complement hands-on experience.
  • Effort-based accomplishments are important, but they must be paired with actual results and impact to truly demonstrate expertise.
  • Offering free work can be beneficial, but it can also ...

Actionables

  • You can shadow a professional in your industry of interest to gain firsthand experience without the commitment of a job. Reach out to local businesses or professionals and ask if you can observe their work for a day or a specific project. This gives you a real-world view of the industry and helps you build relationships that could lead to mentorship or job opportunities.
  • Start a side project related to your industry to learn by doing and create a portfolio piece. For example, if you're interested in marketing, you could create a blog or social media campaign for a fictional product. Track your results and strategies as a case study to showcase your skills and learnings.
  • Volunteer for a role that aligns with your business interests to gain experience an ...

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Why I Still Learn New Ad Platforms The Same Way I Did At $0 | Ep 980

Content Creation and Distribution Strategies

To optimize the impact of content creation and distribution, Alex Hormozi outlines strategies for building an engaged audience and leveraging social media effectively.

Create Valuable Content to Build an Engaged Audience

Boost Daily Content to Satisfy Audience Demand

Hormozi scrutinizes the myth of a platform limit by suggesting that the audience has an "insatiable demand for value." He encourages content creators to boost their daily content output to satisfy this demand, contrary to a caller's strategy of putting out a single, carefully edited Instagram post daily. Hormozi advises that more frequent posting with better-quality content will help enlarge the audience base.

Rotate Lead Magnets and Calls-To-action for Fresh Content

Hormozi highlights the importance of rotating through different lead magnets to constantly give the audience a reason to engage, especially if they have already accessed previous offers. He also suggests doubling down on content by having each post contain two types of calls-to-action (CTAs): direct booking of a call and responding to the lead magnet. Keeping the content fresh with varied CTAs is vital for maintaining audience engagement.

Leverage Social Media to Engage the Target Audience

Leverage Each Platform's Unique Features

Hormozi recommends using TikTok's specific features like TikTok Shop for marketing and selling products, in this case, jewelry. He suggests telling a narrative behind each piece of jewelry, such as the source of the stones and the significance of the design choices, making the items more meaningful and engaging.

Collaborate With Influencer ...

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Content Creation and Distribution Strategies

Additional Materials

Counterarguments

  • While increasing daily content output may engage some audiences, it can also lead to content fatigue where followers become overwhelmed by the volume and disengage.
  • Quality often suffers when quantity is prioritized, and not all content creators may have the resources or time to maintain high-quality output with increased frequency.
  • Rotating lead magnets too frequently might confuse or frustrate an audience if they cannot keep up with the changes or find the constant promotion off-putting.
  • Having multiple calls-to-action in a single post could dilute the effectiveness of each CTA, as it may not be clear to the audience what action they should prioritize.
  • Leveraging unique platform features is beneficial, but it requires a deep understanding of each platform, and what works for one audience segment might not work for another.
  • Storytelling behind products is a strong strategy, but it must be authentic and resonate with the audience; otherwise, it can come across as contr ...

Actionables

  • You can diversify your content by creating a content calendar with themes for each day of the week, ensuring you cover a variety of topics that provide value to your audience. For example, designate Mondays for industry insights, Tuesdays for tutorials, Wednesdays for behind-the-scenes content, and so on, to keep your audience engaged with fresh and relevant material.
  • Enhance your social media posts by embedding interactive elements like polls, quizzes, or challenges that relate to your content, encouraging your audience to actively participate. For instance, after sharing a piece of educational content, include a quiz to test your audience's knowledge on the topic, or challenge them to apply the tips in their daily life and share the results.
  • Create a referral p ...

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Why I Still Learn New Ad Platforms The Same Way I Did At $0 | Ep 980

Advertising and Marketing Tactics For Growth

Alex Hormozi shares insights into how businesses, including a podiatrist caller, can grow their revenues through advertising and marketing tactics that balance strategic investment with skill development.

Implement a Data-Driven, Iterative Approach To Scaling Campaigns

Businesses should constantly re-invest in testing and optimizing their ads, targeting, and bidding strategies. This investment can lead to higher conversion rates and ultimately more revenue.

Invest Revenue In Testing and Optimizing Ads, Targeting, and Bidding Strategies

Despite the lack of detailed information on data-driven approaches, there is an implied suggestion to invest in ads to convert a larger percentage of the audience. Hormozi emphasizes the necessity of reinvesting as much profit as possible into advertising. For a caller spending $150,000 a month on ads and earning $600,000 in revenue, ramping up from $5k a day to $10k a day on Meta platforms has caused issues, implying difficulties in scaling ad campaigns.

Learn and Adopt Ad Agency Processes to Manage Campaigns Independently

Hormozi strongly recommends learning about advertising and managing campaigns independently. He recounts his personal experience of understanding ad management within six weeks by hiring an agency to teach him the process. He believes that understanding and adopting broader ad agency processes is strategic and more crucial than obsessing over minutiae like campaign bidding, which might only contribute a marginal difference.

Tailor Messaging To Audience Awareness

Creating a tailored content mix and utilizing lead magnets can more effectively engage potential customers at various stages of the buying process.

Create a Content Mix to Educate and Nurture Prospects at Different Buyer Stages

Hormozi speaks of translating the levels of awareness into the types of hooks used in adv ...

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Advertising and Marketing Tactics For Growth

Additional Materials

Counterarguments

  • While reinvesting profits into advertising is important, there is a risk of diminishing returns if not done wisely. Over-investment in ads without a corresponding increase in market demand or without improving the product or service can lead to wasted resources.
  • Scaling ad spend on platforms like Meta may not always result in proportional increases in revenue due to factors like audience saturation, ad fatigue, or increased competition, which can drive up costs.
  • Learning and adopting ad agency processes independently can be beneficial, but it may not be feasible for all business owners due to time constraints or the complexity of digital marketing, which could necessitate continued reliance on professional agencies.
  • While understanding broader ad agency processes is important, sometimes focusing on the details, such as campaign bidding, can yield significant improvements in ad performance, especially in highly competitive markets.
  • A tailored content mix is crucial, but it must be balanced with a clear and consistent brand message to avoid confusing potential customers.
  • Different hooks for various awareness levels can be effective, but there ...

Actionables

  • You can enhance your marketing skills by enrolling in a free online course that focuses on strategic advertising and marketing tactics, ensuring you're not only investing money but also improving your expertise. For example, platforms like Coursera or edX offer courses from universities and institutions that cover the latest trends in digital marketing and advertising strategies, which can help you understand how to balance ad spend with skill development.
  • Develop a simple A/B testing framework for your advertising campaigns to determine what resonates best with your audience, using free tools like Google Optimize. Start by creating two versions of an ad – changing one element such as the headline or image – and measure which one performs better in terms of engagement or conversions. This hands-on approach will help you learn how to reinvest profits effectively into ad optimization.
  • Create a content calendar that includes diffe ...

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