Podcasts > The Game w/ Alex Hormozi > How to Close a Deal on the Phone Before They Hang Up | Ep 952

How to Close a Deal on the Phone Before They Hang Up | Ep 952

By Alex Hormozi

In this episode of The Game, Alex Hormozi tackles the business challenges of swim school owners, addressing how they can expand beyond traditional word-of-mouth marketing. He outlines specific strategies for pursuing cold leads through targeted advertising and explains how to structure sales calls to maximize conversions before potential customers hang up.

Hormozi details practical approaches to pricing and customer experience, including how to bundle lessons effectively and create a compelling guarantee of results. The episode covers methods for enhancing revenue through branded equipment sales and explains techniques for upgrading customers to more comprehensive packages. These strategies aim to help swim school owners tap into previously unexplored market opportunities while maintaining high-quality instruction standards.

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How to Close a Deal on the Phone Before They Hang Up | Ep 952

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How to Close a Deal on the Phone Before They Hang Up | Ep 952

1-Page Summary

Sales and Marketing Strategies for Swim Schools

Alex Hormozi provides strategic advice for swim school owners, focusing on expanding beyond word-of-mouth marketing and effectively approaching cold leads. He notes that many swim schools are missing opportunities by not pursuing cold leads, suggesting that spending around $1,400 monthly on advertisements at $12 per lead could tap into a significant untapped market.

Pre-selling and Sales Call Techniques

Hormozi emphasizes the importance of pre-selling by positioning the swim school as the ultimate authority in swimming education. He recommends creating urgency by emphasizing the importance of early swimming preparation and addressing potential objections upfront. During sales calls, Hormozi advises staying on the line until sign-up completion and using a structured framework called "Closer" to guide conversations effectively.

Pricing and Customer Experience

To make the purchase decision easier, Hormozi suggests offering a bundle of 12 initial lessons with a proficiency guarantee. He recommends providing an upgrade option midway through the initial sessions, crediting the initial payment toward a more comprehensive package. To enhance the experience, Hormozi advises offering branded equipment like swim caps and shorts, which can create a sense of community while providing additional revenue. The swim school should focus on high-quality instruction, guaranteeing that children will learn to float and reach the wall within 12 lessons, or continue receiving instruction at no extra charge.

1-Page Summary

Additional Materials

Counterarguments

  • Relying on cold leads may not be as cost-effective for some swim schools, especially if the conversion rate from these leads is low.
  • The $1,400 monthly advertising budget might not be feasible for smaller swim schools with limited financial resources.
  • Positioning as the ultimate authority could be misleading if the swim school does not have the credentials or experience to back up such claims.
  • Creating urgency might pressure customers into making hasty decisions that they later regret, which could harm the school's reputation.
  • Addressing objections upfront could overwhelm potential customers with too much information, leading to decision paralysis.
  • Staying on the line until sign-up completion could be seen as pushy and might turn off some customers who prefer a more relaxed sales approach.
  • The "Closer" framework may not be suitable for all types of customers or sales representatives, as it might not accommodate different communication styles or preferences.
  • Offering a bundle of lessons with a proficiency guarantee assumes all children learn at the same pace, which may not be realistic and could lead to customer dissatisfaction if expectations are not met.
  • The upgrade option might be perceived as a bait-and-switch tactic if not presented transparently and honestly.
  • Selling branded equipment could be seen as an unnecessary upsell, especially if customers are already satisfied with their current swim gear.
  • Guaranteeing that children will learn specific skills within a set number of lessons may not account for individual differences in learning abilities and could result in some students not meeting the guarantee.

Actionables

  • You can diversify your marketing approach by exploring local partnerships with pediatricians or family health clinics to reach new customers. By setting up referral agreements or information exchanges with these trusted community figures, you can tap into a network of families who value health and safety, which aligns with the importance of learning to swim.
  • Enhance your credibility by creating informative content on water safety and swimming techniques to share on social media or local community boards. This could include simple how-to videos, infographics, or articles that help parents understand the stages of learning to swim, positioning you as a knowledgeable and trustworthy figure in the swimming community.
  • Develop a referral incentive program for current customers, offering them discounts or freebies for every new sign-up they bring in. This strategy leverages your existing customer base to generate word-of-mouth marketing while also rewarding them for their efforts, creating a community-driven growth model.

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How to Close a Deal on the Phone Before They Hang Up | Ep 952

Sales and Marketing Strategies for Swim Schools

Alex Hormozi advises swim school owners on how they might be neglecting an opportunity by relying solely on word-of-mouth marketing and guides on how to approach cold leads successfully.

Swim Schools Depend On Word-Of-mouth, Ignoring Potential Cold Leads

Improve Sales: Spend $1,400 On $12 Leads

While talking with a swim school business owner, Hormozi points out that the owner spends around $1,400 per month on advertisements, acquiring leads at approximately $12 each. The swim school has previously grown entirely by word of mouth and had not attempted to sell to cold leads, indicating there could be a significant untapped market waiting to be reached through a more structured sales approach.

Pre-sell to Maximize Initial Sales Call Success

Positioning the Swim School As the Best Choice By Addressing Objections and Closing Alternatives Upfront

Hormozi emphasizes the strategy of preemptively closing any alternatives by steering the conversation on the sales call towards acknowledging that there's no suitable alternative to the offering of the swim school, thus making it the optimal choice. He proposes establishing authority by communicating that the school provides unique insights and guidance on effectively teaching kids to swim, unlike any competitors. By differentiating the success rate of their methodology, they can disqualify other options and establish themselves as the authority in swimmi ...

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Sales and Marketing Strategies for Swim Schools

Additional Materials

Counterarguments

  • While paid advertising can generate leads, it may not always result in a high conversion rate, especially if the target audience does not resonate with the ads.
  • The cost per lead is not the only metric to consider; the return on investment (ROI) is crucial, and a high cost per lead may not be sustainable or profitable for the business in the long term.
  • Cold leads may require more effort and resources to convert compared to warm leads generated through word-of-mouth, potentially increasing the customer acquisition cost.
  • Pre-selling and addressing objections upfront can be effective, but it may also come across as pushy or presumptive if not handled delicately, potentially alienating potential customers.
  • Establishing authority and differentiating the swim school's methodology is important, but it should not lead to overconfidence or dismissal of competitors who may also offer valuable and effective swimming education.
  • Creating urgency can encourage quick decisions, but it can also pressure customers into making a decision they are not ready for, which could lead to dissa ...

Actionables

  • You can explore local partnerships with pediatricians and family centers to extend your swim school's reach beyond word-of-mouth. By setting up referral programs or informational booths at these locations, you tap into a network of parents who trust these sources and may not have heard of your swim school through their usual channels.
  • Develop a simple email marketing campaign to nurture cold leads who've shown interest but haven't signed up for classes. Use a service like Mailchimp to send a series of informative emails that share success stories of past students, quick tips on water safety, and gentle reminders of the upcoming summer season to maintain engagement and gradually build trust.
  • Organize a community event like a "Water Safety ...

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How to Close a Deal on the Phone Before They Hang Up | Ep 952

Techniques for Effective Sales Calls and Closing Deals

Alex Hormozi provides detailed strategies for guiding customers through sales calls to ensure successful deal closures and customer commitment.

Swim School Should Guide Sales and Stay On Call Until Sign-Up Completion

Address Roadblocks and Steer Conversation To Successful Sale

Hormozi highlights the importance of staying engaged with the customer over the phone throughout the entire sign-up process. If a customer presents roadblocks, such as preferring to start lessons in the summer, Hormozi advises to move the anchor point by emphasizing the urgency to start lessons immediately. This approach helps to steer the conversation towards overcoming objections and securing the sale.

Structured Sales Framework "Closer" Addresses Customer Objections

Using a structured sales framework called "Closer," Hormozi instructs sales representatives to delve into why the customer sought out the swimming lessons, to consider other options they may have contemplated, and to effectively counter potential objections. This framework aids the sales team in systematically guiding the conversation and in assisting the customer in overcoming hesitations until the sign-up is complete. Hormozi suggests sending a payment link and affirming details such as the timing of lessons during the phone call to keep the customer engaged and committed.

Offer a Clear, Risk-Free Pricing Structure to Ease Customer Purchase Decisions

Bundling 12 Initial Lessons With a Proficiency Guarantee Provides Value and Certainty For Customers

In order to provide customers with value and certainty, ...

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Techniques for Effective Sales Calls and Closing Deals

Additional Materials

Counterarguments

  • The approach of staying on the call until sign-up completion may be perceived as high-pressure by some customers, potentially leading to a negative experience or customer discomfort.
  • Emphasizing urgency to start lessons immediately might not always align with the customer's personal circumstances or preferences, which could lead to a loss of trust or a feeling of being manipulated.
  • The "Closer" framework, while systematic, may not be flexible enough to accommodate unique customer needs or objections that don't fit neatly into the anticipated sales script.
  • Sending a payment link and confirming lesson details during the call might rush the customer's decision-making process, not allowing them enough time to consider their options thoroughly.
  • Bundling 12 initial lessons with a proficiency guarantee assumes that all customers will be satisfied with a one-size-fits-all package, which may not cater to individual ...

Actionables

  • You can create a personalized follow-up checklist for customers who show interest in a product or service, ensuring you remember to touch base at each critical step of their decision-making process. For instance, after an initial inquiry, your checklist might include a reminder to send a detailed email with product benefits, a scheduled call to address any questions, and a final follow-up to assist with the purchase.
  • Develop a set of engaging, scenario-based questions to better understand a customer's needs and present your product as a solution. For example, if you're selling educational software, ask the customer about their learning goals and challenges, then explain how your software's features specifically address those points.
  • Experiment with creating a loyalty ladder for your customers, where each step represents a deeper level of e ...

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How to Close a Deal on the Phone Before They Hang Up | Ep 952

Creating a Valuable and Seamless Customer Experience

Alex Hormozi discusses strategies for enhancing the experience and value offered by swim schools through the provision of branded equipment and a focus on high-quality instruction.

Swim School Should Offer Branded Equipment to Boost Community and Belonging

Additional Revenue and Professionalism With Swim Caps and Branded Shorts

Hormozi suggests that the swim school could offer branded items such as swim caps and shorts, which not only make participants feel part of a community but also provide an opportunity for the school to upsell these items. This approach serves the dual purpose of offsetting the cost of customer acquisition and elevating the sense of belonging and professionalism within the school.

Focus On High-Quality Instruction to Build Customer Trust and Loyalty

Child's Ability to Float and Reach the Wall Guaranteed In 12 Lessons or Continued Instruction

Hormozi emphasizes the importance of providing high-quality instruction as a cornerstone for building customer trust and loyalty. He guarantees that a client’s child will be able to float a ...

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Creating a Valuable and Seamless Customer Experience

Additional Materials

Counterarguments

  • Offering branded equipment might not be financially feasible for all swim schools, especially smaller ones with limited budgets.
  • Some customers may prefer to use their own equipment or find the cost of branded items unnecessarily high, which could lead to dissatisfaction.
  • The focus on selling merchandise could detract from the core mission of providing quality swim instruction.
  • Guaranteeing that a child will learn to float and reach the wall within a set number of lessons may not account for individual learning paces and could set unrealistic expectations.
  • A flat rate of $600 for a lesson package might not be affordable for all families, potentially limiting access to swim education for those with lower incomes.
  • The performance guarantee c ...

Actionables

  • You can create a referral program that rewards current students with discounts or free merchandise for bringing in new members. This strategy leverages the sense of community by encouraging students to invite friends, which can also help reduce marketing costs as it relies on word-of-mouth promotion.
  • Start a social media challenge where students share their progress or a specific swim technique they've mastered, tagging the swim school and using a unique hashtag. This not only fosters a sense of achievement and community but also serves as organic advertising, showcasing the school's commitment to results and the effectiveness of its teaching methods.
  • Organize a family swim day event where students can bri ...

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