From: alexhormozi
Starting a business requires getting customers to turn “trash into cash” [00:00:05]. This article outlines the “Core 4” methods for customer acquisition, applicable to various services like trash collecting, fitness, cleaning, or IT services [00:02:28]. These methods include warm outreach, posting free content, cold outreach, and running paid advertisements [00:01:29].
The Core 4 Customer Acquisition Methods
1. Warm Outreach: Leveraging Your Existing Network
The easiest way to acquire initial customers is by talking to people you already know [00:00:10], starting with your phone contacts [00:00:15]. This method falls under building an initial customer list.
How to Approach Known Contacts
When reaching out to someone you know:
- Personalize the opening Use a personalized tidbit, possibly from social media, to start the conversation [00:01:48].
- Ask a leading question Instead of asking directly if they need your service, ask about their current situation regarding the problem your service solves (e.g., “Is anyone taking out your trash?“) [00:02:22].
- Offer a free trial or “case study” Provide your service for free to a few people (e.g., five or ten) in exchange for a review or testimonial [00:00:47]. This helps you get feedback and practice [00:04:32].
- Frame it as them helping you Emphasize that by accepting your free service, they are helping you gather reviews and feedback [00:05:11]. Avoid implying they owe you [00:05:17].
- Request introductions Ask if they know anyone else who might benefit from your service, and ideally, suggest a three-way text introduction for immediate lead generation [00:01:13], [00:05:52]. This approach makes it easier for them to act and for the third party to be less rude [00:06:07].
Outcomes from Free Service (Making Money Three Ways)
Even when offering a free service, you can generate value [00:04:20]:
- Direct Customer Conversion: They become a paying customer after the free trial [00:04:40].
- Review/Testimonial: They provide a review, which can attract future customers [00:04:46].
- Referral: They send you a friend or new lead [00:04:51].
- Constructive Feedback: Even if they don’t become a customer or provide a referral, their feedback helps you improve your service, leading to long-term gains [00:05:06].
Limitations of Warm Outreach
This method has two main limitations [00:06:55]:
- Time: You only have so much time in the day to make individual calls and outreach [00:06:58].
- Network Size: You only know a finite number of people (e.g., contacts, social media followers) [00:07:09]. While you can re-engage them, you’ll eventually hit friction [00:07:27].
2. Posting Free Content
Generating free content allows you to gain customers by providing valuable information to a broader audience [00:07:35]. This is a key tactic for producing targeted content for business owners.
Content Framework: Hook, Retain, Reward
Effective content follows a “hook, retain, reward” framework [00:11:34]:
- Hook: Grab attention in the first 3 seconds (the most important seconds) [00:09:39]. This can be a question, a jarring statement, or a crazy topic [00:10:54].
- Retain: Keep the audience engaged using lists, steps, or stories [00:09:58]. Open loops (e.g., “Way number one…”, “Way number two…”) can encourage continued watching [00:11:09].
- Reward: The final piece that encourages sharing or taking action [00:10:20]. It can be something funny that subverts expectations or a direct call to action [00:10:23].
Content Strategy Tips
- Re-remind, don’t just teach: People need to be reminded more than they need to be taught [00:12:16]. Repurpose content across different formats (tweets, reels, podcasts) [00:12:42]. If people like something, make more of it [00:13:08].
- Call to action (optional): While you can include a direct call to action, simply making engaging content can also lead to comments, likes, or DMs [00:13:12].
- Engagement as leads: Anyone who likes, engages, or comments on your posts is a lead [00:13:33]. This engagement provides a legitimate reason to reach out to them [00:13:46]. This is a method for generating business leads.
- Reframe low views: Instead of seeing low views as a failure, imagine the view count as the size of a room you’re speaking to [00:14:10]. For example, 17 views is a full classroom, which is a significant number of people to reach for free [00:14:19]. Everyone starts with small numbers [00:14:47].
Content Focus for Local Businesses
For a local service business, content can be targeted in two directions [00:11:43]:
- Consumer-focused: Provide tips and valuable information to potential customers that improves their lives, regardless of whether they use your services [00:11:48].
- Recruitment-focused: Create content appealing to potential employees to attract talent to your company [00:11:56].
3. Cold Outreach: Reaching Strangers One-on-One
Cold outreach involves contacting strangers individually [00:17:04] through various channels like email, phone calls, direct messages, SMS, voicemails, or even door-to-door [00:17:07].
Strategies for Cold Outreach
- Visual Demonstration: When doing door-to-door, visually demonstrate your service and dress in work clothes to pique curiosity even before the door opens [00:17:21].
- Leverage Existing Customers: Use a “secret weapon” by name-dropping an existing customer, especially a neighbor, to build trust and disarm the stranger [00:17:45]. This makes them more polite and likely to give you time [00:18:32].
- Ask a “No-Based” Question: Instead of “Do you want me to do X?”, ask “Would you be opposed to me doing X?” or “Would it be an inconvenience?” [00:07:50]. People are more likely to say “no” to a negative question, which results in a “yes” to your offer [00:08:00]. This is an innovative customer acquisition strategy.
- Offer “Big Fast Value” (BFV): Since strangers don’t trust you, provide an amazing, superior offer, often free, to incentivize them [00:26:00]. This is a significant force multiplier for cold outreach [00:26:09].
- Handle Objections with Rapport: If they already have a service provider, pivot by asking if their current provider offers something superior (e.g., “Are they as awesome and smiley as me?” or “Do they do it for free?“) [00:16:01]. Use humor and a positive, upbeat demeanor to disarm people [00:21:11].
- Shut Up After the Yes: Once a prospect says yes, stop talking immediately to avoid increasing the likelihood of them changing their mind [00:19:59].
- Embrace Rejection: Expect and accept “no”s. Every “no” is like a coin tossed into a machine that eventually leads to a “yes” [00:23:32]. Learning to get rejected and move on is a foundational skill for entrepreneurs, regardless of the business [00:23:16].
Solving Cold Outreach Problems
- Building a Contact List:
- Software: Use specialized software to export lists of contacts based on your criteria [00:24:34].
- Brokers: Purchase lists from brokers who sell contact information to multiple businesses [00:24:44].
- “Elbow Grease” (Self-Assembly): Manually build a “virgin list” using resources like Yelp, Google Maps, free online databases, or Facebook/Reddit groups [00:25:01]. This is considered the most valuable method as the leads are not “tired” from other businesses [00:25:07].
- What to Say (Script and Offer):
- Have a clear script and an amazing “Big Fast Value” offer ready [00:25:40].
- Not Enough Replies (Volume):
- Increase the volume of your outreach efforts [00:26:21].
- Utilize Automation: Automate parts of the process, from list building to setting up calling systems and direct messaging [00:26:30].
- Collaboration: Work with others to generate more volume [00:26:34].
4. Running Paid Ads
Paid advertising allows you to reach strangers on a “one-to-many” basis by paying platforms for access to their audience [00:29:25]. This is crucial for marketing and customer acquisition strategies and can leverage personal experiences in scaling businesses with advertising techniques.
Ad Structure: Hook, Meat, Call to Action
Paid ads follow a similar structure to free content but emphasize a strong call to action [00:29:43]:
- Call-Out: Before the hook, use visual or auditory cues to immediately signal who the ad is for (e.g., “Las Vegas homeowners…“) [00:30:51].
- Hook: Capture attention within the first 3 seconds [00:33:53]. This can be a question, a problem statement, or a jarring visual [00:30:11].
- Meat (Problem Agitation & Solution):
- Agitate the pain points: Deeply describe the audience’s problems, highlighting the negative impact on their time, status, or comfort [00:31:36]. Using multiple pain points increases the chance one resonates [00:32:58].
- Present Solutions (e.g., Three Benefits): Clearly outline how your service solves these problems, often using a “three things” framework for clarity and retention [00:31:34].
- Guarantees: Strategically place guarantees to build trust and offer strong value (e.g., “three free months if we miss a pickup”) [00:32:04].
- Call to Action (CTA): Clearly instruct the viewer on the next step (e.g., “click the link” or “call 1-800-Alex-Trash”) [00:33:31].
Tips for Paid Ads
- Test Hooks Heavily: The hook is the most crucial part as 80% of people decide not to watch an ad in the first 3 seconds [00:33:57]. Test multiple hooks to find what resonates best [00:34:00].
- Match Avatar to Audience: The person featured in the ad (their appearance, setting) will do more to attract the right audience than anything else [00:34:37].
- Diverse Representation: To double or triple your reach, include two, three, or four different people (e.g., men, women) in your ads [00:34:54].
These four methods provide a comprehensive approach to developing a high-value customer acquisition strategy and are crucial for effective marketing and cost-saving strategies for new businesses.