DeepSummary
In this episode, Alex Hormozi provides seven strategies to get new customers for free using referral tactics. He explains that these tactics have made him millions of dollars and can be implemented at different stages of the customer journey. The first tactic is to ask customers who else they know after making a sale, as it encourages them to provide referrals.
Other tactics include offering discounts or additional services in exchange for referrals, providing monetary incentives for referrals, asking for referrals at the point of success, using handwritten cards to invite customers and their friends to events, and promoting a 'spouse program' where customers are encouraged to involve their partners.
Hormozi emphasizes the importance of referrals as they compound business growth, have higher conversion rates, and lead to customers who pay more, stay longer, and refer more people. He provides specific scripts and strategies to increase the likelihood of getting referrals and highlights the scalability and effectiveness of these tactics.
Key Episodes Takeaways
- Implement referral tactics at different stages of the customer journey to get new customers for free.
- Referrals compound business growth, have higher conversion rates, and lead to customers who pay more, stay longer, and refer more people.
- Ask customers for referrals after making a sale, offering discounts, bonuses, or monetary incentives in exchange.
- Leverage success moments, handwritten cards, and 'spouse programs' to encourage referrals.
- Provide specific scripts and strategies to increase the likelihood of getting referrals.
- Word-of-mouth marketing is powerful and increasingly important in today's connected world.
- Referrals are a scalable and effective way to grow a business, as demonstrated by Hormozi's tactics generating millions in revenue.
- Consider the cost of acquiring a customer when offering discounts or bonuses for referrals.
Top Episodes Quotes
- “Now, referrals are super valuable for a number of reasons. One is that they compound with the business, meaning whether you're a hundred million dollar business, 30% on 100 million or 30% on 100 grand is still going to be 30%. And so it's one of the most scalable ways to grow business.“ by Alex Hormozi
- “It's so funny because people are like, man, why are my ads? They were working. Now they're not. Everybody believes in positive word of mouth. They don't believe in negative word of mouth. But both word of mouth happen because that's how this works.“ by Alex Hormozi
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Episode Information
The Game w/ Alex Hormozi
Alex Hormozi
6/26/24
"These have made me millions of dollars." In this episode, Alex (@AlexHormozi) breaks down 7 different tactics for getting customer referrals, which are an incredible way of getting leads because they close at higher rates, stay longer, buy more, and also are usually FREE.
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:
(00:23) Ask customers who else they know after a sale
(7:54) Offer a discount to customers in exchange for introductions
(10:28) Offer more free services
(11:07) Offer them money
(12:52) Referral at success
(15:02) Handwritten card
(17:28) "Spouse program"
(18:41) BONUS!
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