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Building an initial customer list

6 min read

From: alexhormozi

This article outlines a 10-step process for getting your first five customers, drawing insights from the book “100 Million Dollar Leads” [00:00:08]. The approach emphasizes simplicity and direct outreach to begin building a brand from zero audience.

Step 1: Build Your Initial Customer List

The first step to getting started is to compile a comprehensive list of contacts [00:00:17]. This provides a starting point for outreach, utilizing existing connections you already have.

  • List 1: Email Contacts Pull all contacts from your email account, including anyone you’ve ever messaged or emailed [00:00:22].
  • List 2: Social Media Contacts Gather all direct message-capable followers from every social media profile you possess [00:00:30].
  • List 3: Phone & Private Personal Contacts Export all contacts from your phone [00:00:40].

Adding these three lists together will result in significantly more potential leads than initially anticipated [00:00:51]. This method has been used to successfully start businesses, with people expressing gratitude for the outreach [00:01:01].

Step 2: Pick a Primary Platform

From your compiled lists, choose one platform to primarily use for messaging or emailing [00:01:06]. Start with the platform where you have the largest number of contacts [00:01:12].

Step 3: Personalize Your Message

When reaching out, use something you already know about the person or prospect to initiate contact [00:01:22]. This demonstrates genuine interest and engagement [00:01:48].

Personalization

Take 30 seconds to look at their profile and find a commonality. Examples include:

Step 4: Consistent Outreach

Commit to reaching out to 100 people every single day [00:01:55]. Overcoming the initial difficulty of sending the first message will make subsequent outreach much easier [00:02:07].

Step 5: Warm Up Replies (ACA Framework)

If someone replies, use the A.C.A. (Acknowledge, Compliment, Ask) framework to warm them up [00:02:17]:

  1. Acknowledge: Acknowledge something about them (e.g., “Oh, so you have two kids?“) [00:02:22].
  2. Compliment: Compliment them based on the acknowledgment (e.g., “Wow, you must be a super mom working full-time and having two kids!“) [00:02:26].
  3. Ask: Tie your question to the compliment, leading them towards the service you sell [00:02:34].

Step 6: Invite Referrals

Do not directly solicit or sell your service at this stage [00:02:53]. Instead, after they share information, ask if they know anyone who might benefit from your offering [00:03:02]. This is asking for a favor from a friend, not a sale [00:03:14].

Leads vs. Engaged Leads

  • Lead: Someone you can contact [00:03:28].
  • Engaged Lead: Someone you can contact who has shown interest in your service [00:03:31].

Step 7: Offer Services for Free

To get engaged leads to become customers, make the initial offer free [00:03:44]. This is crucial for initial customer acquisition, especially when you are not yet experienced [00:03:48].

Terms of the Free Exchange

Offer your service for free under these conditions [00:03:52]:

  1. The client actually uses your service [00:03:54].
  2. They provide feedback on it [00:03:56].
  3. They leave a killer review if they believe it deserves one [00:03:58].

Benefits of Offering Free Services Initially

  • Gain Experience: It provides more “reps” to improve your skills [00:04:04].
  • Improve Service: You learn to “suck less” by doing more, and receive valuable feedback [00:04:08].
  • Lower Barrier: It’s easier to get people to work with you if the barrier is free [00:04:11].
  • Hidden Costs: Understanding why someone might not even work for free (due to hidden costs like time or effort) allows you to eliminate those costs and eventually charge more [00:06:42].
  • Value Exchange: Even if monetarily free, clients exchange their time and effort for your service, making them customers [00:05:18].

Example Script for Free Offer (Long Version)

“By the way, do you know anybody who is [describe their struggles], looking to [dream outcome] in [time delay]? I’m taking on five case studies for free because that’s all I can handle. I just want to get some testimonials for my service or product, and we’re being honest because this is their first business and you have no idea what you’re doing so you better not take more than five customers. I just had a girl named XXX work with me to get [dream outcome] even though she described the same struggle the person you’re talking to is struggling with. I’d like to get more testimonials to show it works across different scenarios. Does anyone you like come to mind?” [00:05:31]

  • If they say no, a humorous follow-up: “Haha, does anyone you hate come to mind?” [00:06:08]

Example Script for Free Offer (Short Version)

“I help [the type of customer] get [dream outcome] in [time period] without [effort and sacrifice], and I guarantee [XYZ] to decrease risk.” [00:06:17]

Step 8: Iterate and Get More Leads

Once you have your first customers through the free offer, restart the process [00:07:31]. Some people you ask for referrals will directly provide free leads [00:07:37]. Reaching out to 3,000 people with a free offer will likely yield five people who accept [00:07:41].

Step 9: Start Charging

Once people start referring clients to you, it indicates your service is good enough to begin charging [00:07:50].

  • Gradual Price Increase:
    • Start by offering 80% off for the next five clients [00:07:57].
    • Then, move to 60% off for the next five, then 40%, then 20%, until you reach full price [00:08:03].
    • You can even exceed full price as your value increases [00:08:10].

This gradual increase is possible because the feedback from your free clients has allowed you to improve your service significantly [00:08:24].

Transitioning Free Clients to Paid

When you reach capacity with free and discounted clients, you create true scarcity, allowing you to ethically sell with conviction [00:08:43]. When a paying client wants a slot, you can offer your free clients the option to start paying to continue the service [00:08:58]. If they decline, gracefully request the killer review you asked for [00:09:12].

Value of Free Clients

Free clients are invaluable because they will get you business in three ways [00:09:18]:

  1. They leave reviews [00:09:24].
  2. They send referrals [00:09:26].
  3. They may transition into paying clients themselves [00:09:28].

Step 10: Keep Them Warm

Maintain contact with your large list of people by checking in as a human being and providing value regularly [00:09:44]. This builds goodwill and eventually leads to people soliciting you for your services, as they see your testimonials and results [00:09:51]. This is a key long-term customer acquisition strategy.

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