Note: This skill is independent analysis and commentary, not a reproduction of the original text. It synthesizes the book's core ideas with modern startup practice, surfaces where frameworks are outdated or incomplete, and integrates perspectives from adjacent disciplines. For the full argument and context, read the original book.
$100M Leads
"How to get strangers to want to buy your stuff" - Alex Hormozi
The Core Four Framework
All advertising falls into 4 categories on two axes:
| Warm Audience (knows you) | Cold Audience (strangers) | |
|---|---|---|
| 1-to-1 | Warm Outreach | Cold Outreach |
| 1-to-Many | Post Free Content | Run Paid Ads |
Rule: Master ONE before adding another. Don't spread thin across all four.
Decision Tree
Do you have 10 paying customers?
├─ NO → Warm outreach until you do
└─ YES → Pick based on resources:
├─ Have time, no money → Cold outreach or Content
├─ Have money, no time → Paid ads
└─ Have both → Cold outreach + ContentAlready running channels?
├─ Spreading across 4 → Cut to 1, master it
├─ One channel profitable → More Better New
├─ Hit personal capacity → Hire someone to run it
└─ Multiple channels profitable → Add lead getters (referrals/affiliates)Lead Definitions
| Term | Definition |
|---|---|
| Lead | A person you can contact |
| Engaged Lead | A person who has shown interest |
| Qualified Lead | A person who can afford and is likely to buy |
Quality > volume. An engaged lead is worth many cold names.
Lead Magnets
A lead magnet is a complete solution to a narrow problem. Free or low-cost. Reveals a bigger problem your core offer solves.
7 Steps to Create
- Pick the problem - Narrow, meaningful, leads to your core offer
- Figure out the solution - One of three types below
- Choose delivery method - PDF, video, tool, trial
- Test the name - Name matters more than content
- Make it easy to consume - Under 10 minutes ideally
- Make it darn good - Good enough to charge for
- Make it easy to ask for more - Clear next step to your offer
3 Types of Lead Magnets
| Type | How It Works | Example |
|---|---|---|
| Reveal Problems | Diagnosis showing problem they didn't know they had | Website speed test, posture analysis |
| Samples/Trials | Limited access to your core offer | Free month, 3 free uses, demo |
| One Step of Multi-Step | Solve step 1 of a 5-step process | Free template, calculator, checklist |
The lead magnet solves one problem, which reveals the NEXT problem your core offer solves.
The Core Four Channels (Summary)
Detailed playbooks in frameworks.md.
1. Warm Outreach (Free, 1-to-1)
Start here. Phone contacts, email, social media followers = your warm list. Personalize. Use ACA framework (Acknowledge, Compliment, Ask). Ask for referrals.
2. Post Free Content (Free, 1-to-Many)
Build an audience. Hook-Retain-Reward. Give-Give-Give-Ask pattern. Don't pitch until they reach out.
3. Cold Outreach (Free/Cheap, 1-to-1)
Reach strangers. Personalization + Big Fast Value. Volume + multi-channel follow-up. List of 1000+ to start.
4. Run Paid Ads (Paid, 1-to-Many)
Trade money for attention at scale. Three phases: Track Money → Lose Money → Print Money. Use lookalike + factor targeting. Detailed math in paid-ads.md.
The Money Math: LTGP:CAC
LTGP = Lifetime Gross Profit (total customer revenue minus delivery cost) CAC = Cost to Acquire Customer
| Ratio | Meaning |
|---|---|
| <3:1 | Struggling to scale |
| 3:1 | Minimum viable |
| >3:1 | Ready to scale |
Note: Hormozi uses LTGP (Lifetime Gross Profit) specifically, not LTV. The distinction matters - LTGP excludes delivery cost.
If CAC is above 3x industry average, fix ads. If below, fix the business model (increase LTGP).
Client Financed Acquisition
Break even on acquisition cost in ~30 days = unlimited scaling. If a customer pays you back in 30 days, you can fund acquisition with a credit card and reinvest infinitely.
How: upsells, order bumps, higher upfront pricing - anything to collect more cash faster.
Rule of 100
Every day, do ONE of:
- 100 cold outreach attempts (calls, emails, DMs)
- 100 minutes creating content
- 100 minutes of paid ad work
- $100 spent on ads
Minimum viable daily advertising. Do this for 100 days before concluding "it doesn't work."
Open to Goal (Advanced)
Work until you hit a specific OUTCOME, not a number of inputs.
| Stage | Use |
|---|---|
| Starting | Rule of 100 (effort-based) |
| Scaling | Open to Goal (outcome-based) |
More Better New (Scaling)
Framework for scaling what works:
- MORE - Do 10x what you're currently doing. What's stopping you?
- BETTER - Find the constraint, fix it, do more again
- NEW - Only after exhausting more+better:
- New placements on same platform - Same placements on new platform - New placements on new platform - Add another Core Four activity
"More" and "better" work together. Do more until it breaks, then make it better, then do more again.
Lead Getters (Others Get Leads For You)
Once YOU can get leads, get others to do it.
4 Types
| Type | Who | How |
|---|---|---|
| Customers | Existing buyers | Referral program |
| Employees | Your team | Train + incentivize |
| Agencies | Marketing firms | Pay for results |
| Affiliates | Partners with audiences | Commission structure |
Detailed playbook in lead-getters.md.
Warning Signs
Spreading Too Thin
- Running ads + cold outreach + posting content simultaneously
- None of the channels are profitable
- Can't answer "what's your best lead source?"
- "Testing" multiple channels for 6+ months
Outreach Is Broken
- Response rate below ~1% (actual rates vary heavily by list quality, channel, market - this is a directional warning sign)
- No replies to follow-ups
- Frequent "unsubscribe" or "stop"
- Can't get past the first reply
Content Isn't Working
- 3+ months posting with no leads
- Engagement but no DMs or comments
- Followers but no buyers
- Content gets no shares
Rules of Thumb
- Warm before cold. Your network is worth more than you think.
- One channel mastery beats four channel dabbling. Depth > breadth.
- Volume solves most problems. Not enough leads? Do more outreach.
- Follow up until they buy or tell you to stop. Most quit too early.
- Track everything. If you can't measure it, you can't improve it.
- Give first. Value before ask, always.
- Speed wins. Respond to leads in minutes, not hours.
- The best ad is a happy customer. Referrals typically convert better than cold traffic.
The Order
- Warm outreach (free, start here)
- Pick ONE: content OR cold OR paid
- Master it until profitable
- Hire someone to run it
- Add next channel
- Add lead getters (referrals, affiliates)
Test: If someone asks "how do you get customers?" and you can't give a clear, specific answer - you haven't mastered your channel yet.
When This Doesn't Apply
| Context | Why |
|---|---|
| Pre-product | Don't generate leads until you have something to sell |
| Capacity constrained | Don't get more leads than you can handle |
| Retention problems | Fix churn before adding more leads |
| Offer problems | A bad offer won't convert no matter how many leads (use 100m-offers) |
The Mindset (Many-Sided Die)
You have a die with unknown sides - one green, the rest red. Roll green and a red turns green; roll red and nothing happens. The only way to lose is to stop rolling. More rolls, more greens; persistence is mathematically guaranteed to work. Full breakdown with the advertising application in cases.md → The Many-Sided Die.
Supporting Files
- frameworks.md - Detailed Core Four channel playbooks (warm, content, cold)
- paid-ads.md - Paid advertising deep dive (targeting, callouts, budgets, metrics, three phases)
- lead-getters.md - Referral programs, hiring, agencies, affiliates, the 3Ds training framework
- cases.md - Roadmap from $0 to $100M (7 levels), case-style examples, decade-in-a-page
- examples.md - Email templates, ad scripts, content hooks, checklists
- integration.md - How leads connects to mom-test, 100m-offers, influence; conflicts with crossing-the-chasm channel choice