Alex Hormozi Explains Why You NEED To Build A Brand in 2024

0:00The biggest mistake that I made with Prestige Labs, which was my supplement company, I'm glad we wrapped around. Um was that I treated the supplement business purely transactionally. I did everything that I'm telling you that I not to do. I did it. That's why I'm telling you that it didn't work. Is that >> And by the way, that's the norm for the supplement industry. >> Right. >> 100%. So, it's not like you were doing something abnormal. That's the norm. >> It another normal example of like, "Hey, if everyone else is doing it, it's probably not the best idea." But anyways, um and so I I basically built the whole brand off of transactional sales and teaching how to hardcore close. Cuz that was the skill I had. So, I was like, "Okay, I'm going to hit it with my sales hammer." Cuz that's like everything looks like a sales hammer when you're good at sales. And so, I taught all the scripts, all the processes, how to set up the lobbies, how to like how to get assumed closes, and how to get people on subscriptions, all that stuff, right?

0:46But the thing is is that I I like it actually happened with First Form, so this is a plug for you. A close friend of mine um was a First Form athlete, right? And uh I was like, "Dude, sell Prestige Labs." It wasn't cuz I was you know, it's it's like >> We didn't even know each other. >> Yeah. Yeah. >> [laughter] >> And I was like, "Dude, sell my stuff." And and and uh and the commission that I was paying was significantly higher. And I was like, "And I'll give you the special homie to like I just like come on." I like we're going to dinner, let's be on the same team. You know what I mean? All the time.

1:14And the thing is is that he continued to hem and haw, and to this day he still sells First Form. And I was like, "I don't get it." Cuz I knew cuz I did have this really super doctor like make all the products and like make them accept like that part I felt very strong about, and I knew my commissions were higher. So, I was like the products are very good, and the you get paid more. And I just like I couldn't compute. Which meant that I had a distortion of reality. I saw the world in a way that it wasn't.

1:40And that hurt my business. And so, when you're taking these lenses off and like Andy's squeegeeing your eyeballs, right? So, you can see things more clearly, the thing that I missed was actually the soft stuff. It was the brand stuff. I actually my my creative director sent me a podcast, my eighth podcast of all time. I'll tell you the title. Stop branding. Because I felt so confident about the fact that I was like, you don't need a brand. I was like, you need to run ads, you need to cold and cold call cold outreach.

2:06>> Yeah, see you're the guy I'm talking to. You're the dude I'm talking to saying, "Hey, use those skills to build a brand." >> Yeah. >> Yeah, dude. >> And I didn't get it. And the like and what's happened is it's like brick by brick my belief in this first was like, okay, brand and the direct response stuff and knowing the hand-to-hand are equally important. But the longer I've been doing this and you've been doing it longer than me, the more I'm just like it's just brand over everything because if the brand's right, everything else follows. And the reason that he didn't come over to quote my team was because like I had no brand or I had a negative brand, whatever you want to say it, but like I didn't have a brand that was as strong as force on him. He didn't want to associate his brand with my brand.

2:44>> Got it. >> And that was the thing that I did that I I just missed. I didn't get it. And so, as soon as I learned that lesson and it took me selling the companies and doing all the stuff to like really reflect like what could I have done better? Like that's why we built acquisition.com and I was like, I've so If you think about getting customers, right? There's like eight ways you can do it. You can you can reach out to your friends and family individually. You can reach out to strangers individually. You can post content or you can run paid ads. Those are the four things that one person can do.

3:11Leveraging other people, you can get referrals. So, you get customers to tell people. You get affiliates. So, you get other people who have businesses to refer their customers to you. You can hire agencies to go get you customers or you can hire employees to do the first four, right? Those are the only ways that people like you can get new new customers. And I had built a business off of every one of them except for off of content. And so, I was like, with acquisition.com, I'm going to build it off content cuz I don't know how to do it. So, I'm going to figure it out. And it was only through building content that I understand that it was all about brand.

3:38>> Yeah. >> And what's weird is that when you do start building a brand or a personal brand, you realize if you do in my opinion if you do it the quote right way, which is just give and you give and you give and you give and then you take a breath and you give and you give and you give and you give and you're like, wait, should I? Nope, you keep giving, you keep giving. And there's a there's a popular say that Gary has which is like give give give. Sorry, no. He says >> Uh jab jab jab right hook. >> Yeah, that's what it is. Jab jab jab right hook, right? I think that that's actually the perfect ratio for a mature platform. So, if you actually look at television, the uh add to uh give ratio which is the content that the actual shows is 47 minutes to 13 minutes.

4:13It's jab jab jab right hook. >> quarters, yeah. >> If you look at Facebook which is a mature platform, it's three news newsfeed uh like from your friends and family whatever and then an ad. So, that is the ratio for when you're maintaining your current level. But, if you look at the platforms that are trying to grow, what is TikTok or when they were growing what they didn't have any ads. They just it was all content. It was all give. >> Right. >> And so, the the nuance at least how I understand it for that strategy if you're trying to build a brand is give give give until they ask.

4:42Which means that you just keep giving and if no one's asking you, just keep [ __ ] giving. And in my opinion >> my whole strategy. >> Yeah. >> Yeah, as a person >> All the players, right? >> Yeah. Yeah. >> We're like So, there's I you've seen these ads in the direct response where they're like the the secret the 1% don't want you to know. It's horse [ __ ] There is no secret. But, there are things that the 99% refuse to believe. >> Yeah. Dude. Dude. Big facts on that. >> [laughter]

5:08>> That's [ __ ] gold. >> And so, like and and I say this stuff because it because it I went like you, I felt so much pain for such a long time because I just didn't understand the way the world works especially as it related to business. >> Yeah. >> So, like if you can build the brand, when you actually do it as I've now you know been doing it, like you realize that you were wrong before. Like I can just tell you clear as day, you know that this is the right way to do it. And it's slower and you eat [ __ ] for a year or two years or three years of you building it and what you're doing is you're finding your voice, you're figuring out your values and you're learning how to actually do cuz if every person who comes to you only came from just consuming value from you ahead of time, the type of the customer is different, how bought in they are, they share your values. And so it actually builds this base that becomes a pillar that you just keep that just keeps expanding on your behalf. And it becomes kind of like it's so little it's too little for you to notice until it becomes too big for you to ignore. Right? Like that's how compounding works. If you start, you know, you invest in the S&P 500 $100 every month, it becomes tiny and then all of a sudden it becomes unstoppable.

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