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Strategies for business growth through advertising and sales

7 min read

From: alexhormozi

For business owners and high-level employees, understanding and applying the right “work” can be the most tactical way to generate revenue [00:00:03]. Many individuals claim to work hard but struggle to define what “work” truly means in a business context [00:00:35].

Defining “Work” in Business

The scientific definition of work (force x distance) is not useful for knowledge workers [00:00:45]. Defining work by hours spent or effort expended is also insufficient because many people work long hours or try hard without achieving significant results [00:00:53].

A more effective definition of work for business is:

Work = Outputs [00:01:34] Outputs = Volume × Leverage [00:01:39]

  • Volume: The number of times you do something [00:01:42].
  • Leverage: How much you get out of each time you do it [00:01:43].

To work “faster” or do more work per unit of time, the formula is (Volume × Leverage) / Time, which translates to “output per unit” [00:01:53]. High output results from high volume on good leverage [00:02:51].

Key Business Growth Levers

To grow a business, there are fundamentally two ways [00:04:05]:

  1. Get more customers [00:04:07] (sell more units).
  2. Make existing customers worth more [00:04:08] (increase Lifetime Value - LTV).

These can be broken down into specific actions [00:04:14]:

1. Getting More Customers

  • Generate More Traffic: Advertise more and better [00:04:16].
  • Increase Conversion Rate: Practice sales or improve your offer [00:04:17].

2. Making Customers Worth More

Many businesses spend their “working” time doing almost none of these critical activities, which leads to stagnation [00:05:03].

Prioritizing Growth Activities

For most businesses, especially smaller ones, effort should be disproportionately focused on getting more traffic (advertising) and increasing conversion [00:05:52]. Without customers, there’s no one to upsell or increase LTV for [00:06:11].

Strategies for Effective Advertising (Traffic Generation)

To advertise “more and better,” one must advertise more [00:06:24]. Excellence comes from repetition [00:06:26]. To become exceptionally skilled at advertising, engage in so much advertising that it would be unreasonable to fail [00:06:40].

Examples of dedicated advertising “volume” [00:06:47]:

  • Running Ads: Commit four hours a day to scripting, analyzing, writing copy, and recording ads [00:06:49]. This may include learning editing software [00:06:55].
  • Outreach: Spend four hours a day reaching out to people across social media platforms [00:06:57].
  • Content Creation: If content is the primary advertising method, create content for four hours a day, every day, on every platform [00:07:04].
  • Partners/Affiliates: Dedicate four hours a day to outreach or creating content to help affiliates send more customers [00:07:09].

These actions become the “volume” that generates leads [00:07:22]. If you’re concerned about finding four hours a day, remember that “doing everything else” is often what keeps businesses stalled [00:07:30].

“If you keep doing the same stuff and your business isn’t growing then the stuff that you’re doing is wrong.” [00:08:04]

This is the essence of strategy and business growth strategies and challenges: prioritizing what’s most important, even if it means neglecting other things for a season [00:08:20]. When a specific area becomes the “limiter” or “constraint” of the business, it then demands four hours a day of focused effort until resolved [00:08:30].

Strategies for Sales Conversion

Once traffic is mastered and leads are abundant, if conversion is the bottleneck, shift focus to optimizing sales [00:08:40].

Activities to optimize conversion include [00:08:54]:

  • Tracking close rates [00:08:57].
  • Recording all sales interactions and reviewing them [00:09:01].
  • Watching “game tape” of successful sales calls every morning [00:09:12].
  • Practicing sales scripts aloud daily [00:09:15].
  • Hiring someone to provide daily feedback on sales performance [00:09:17].
  • Implementing a two-minute mental prep before every sales consult [00:09:21].
  • Using a pre-sale questionnaire for every person [00:09:26].
  • Qualifying people better on the phone to pre-sell them [00:09:35].

All problems are solvable with skills, and all skills are attainable through repetition and feedback [00:09:51]. Once a skill is mastered, it takes less time to perform, providing “leverage” [00:09:56]. This shifts effort from “growing a skill” to “maintaining a skill,” which is significantly easier [00:10:14].

Every minute spent must clearly lead up to one of these four core growth activities (traffic, conversion, price, LTV) [00:10:36].

Finding and Buying Time for Growth

Success in the marketplace doesn’t care about excuses; it cares about output [00:11:24]. Everyone has 24 hours a day; those who move faster use their time more effectively [00:12:14].

Finding Time: Maker vs. Manager Time

Entrepreneurs typically have two types of work time [00:12:50]:

  • Maker Time: Long, uninterrupted blocks (4-6 hours) for high-importance, low-urgency work that moves the business forward [00:12:55]. Interruptions can destroy an entire block [00:13:09]. A productive maker calendar is an empty calendar [00:13:07].
  • Manager Time: Small, fragmented blocks (5-15 minutes) for training teams, coordinating, communicating, and putting out fires [00:13:33]. The goal is to fill the calendar with these slots when in manager mode [00:13:37].

Disaster occurs when manager tasks bleed into maker time [00:14:03]. It is crucial to understand and communicate the difference between these work types to your team [00:14:21].

Maker Habits

To facilitate maker time:

  • Decide on one most important project to work on [00:14:44].
  • Wake up early (e.g., 4:00 AM) and work for a substantial block (e.g., until 9:00 AM) [00:14:50].
  • Turn off all notifications [00:14:55].
  • Create an environment with minimal distractions (dark room, no windows, earplugs) [00:14:57].
  • Realize there are no true “emergencies” in business outside of life-or-death situations [00:15:08].
  • Maintain a consistent sleep schedule, including weekends [00:15:25].
  • Be aware that drinking alcohol can cost two days of productivity (day of drinking + day of recovery) [00:15:44].
  • Utilize weekends as a “hack” for uninterrupted work time (104 days a year) [00:16:03].

Buying Time

As the most valuable person in your business, maximizing your productive moments is crucial, just as you would for a star employee [00:16:25]. Productivity increases more by eliminating unproductive things than by optimizing existing time [00:17:09]. Cutting things out provides permanent reductions in energy drainage, which can be reallocated to making money [00:17:44].

By outsourcing low-value personal tasks, significant time can be reclaimed:

  • Food (groceries, eating, prepping, cleaning): ~50 hours/month. Replacement cost: $800/month [00:18:40].
  • Home Cleaning: ~25 hours/month. Replacement cost: $500/month [00:18:51].
  • Laundry (washing, drying, folding, organizing, dry cleaning, driving): ~16 hours/month. Replacement cost: $200/month [00:18:57].

For approximately 15/hour with your time, this trade is highly beneficial [00:19:18]. This is a form of reinvesting in yourself, but the time bought must be used for valuable work, not leisure [00:19:27].

Many entrepreneurs hesitate to spend money on services that make them “feel fancy” or “frilly,” despite being willing to hire an employee for $50,000 a year [00:19:46]. This is illogical, as investing in your most valuable employee (yourself) to gain 50% more output is a clear win [00:20:10].

Consider the potential for exponential growth and scaling strategies:

  • Someone working three productive hours per week vs. someone working 96 productive hours per week (from buying time and focused maker habits) [00:18:21]. This can lead to a 30x faster pace [00:18:25].

“You will become more productive through elimination than by adding optimization.” [00:17:18]

This approach allows entrepreneurs to manage daily operations (manager time) while also dedicating substantial time to high-impact growth activities (maker time) [00:22:57]. By eliminating distractions and low-value tasks, one can work 30 times more effectively than competitors who are distracted and inefficient [00:24:25].

The secret to rapid fast business growth strategies and compressing “multiple lifetimes of growth into one” is to maximize your time and eliminate as many energy drains as possible that are not aligned with your goals [00:25:20]. This is a core entrepreneurial strategy for increasing business value.

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