Flywheel, Not Funnel: How Alex Hormozi's Book Launch Went Viral & Rewrote Marketing (2.9M Day One?!)

0:00 Welcome to Create. I'm the JumpCutKing and today we're going to unpack one of the wildest launches of all time. Alex Hormozi, 100 million money models book, sold 2.9 million books in 24 hours. 2.9 million books in a single day? That's not a funnel. It's a flywheel exploding. And here's the thing. He didn't just sell books. He built a viral marketing masterclass right in front of us. He spent millions.

1:03 to profit on ads. He was trying to own attention. Every dollar he spent on ads made it, you know, $1.30. Those margins kind of may seem out of proportion, but that's not the final amount of money he made. And of course, all of this is either self-reported numbers or estimates based off of his reported numbers on his live stream. So if you want to verify his tactics and whatnot, you're going to have to contact him.

2:08 you upsells. It encourages you to get VIP and then upsells and encourages you to get more things. And it's designed to take your interest in this live, in this launch that you're going to get all these free things with that he advertised. He gave away a lot of information. He did give away some free things. He did give, he kind of checked all the boxes, but it wasn't the big, huge hype that a lot of people thought it was.

3:10 can use to fuel it. If you're creating a software as a service like I am, I have a product plan that starts organic. And as I get customer acquisitions, I use a percentage of acquisitions to funnel into ads, do A and B and C testing in a slow path to ramp up. And once I have that ads that are working the key to unlock lots of users, I can turn it all the way up.

4:13 these to launch your product. Like I'm going to use it to launch mine. Okay, maybe not on his grand scale, but who knows? Maybe. So he spent $4 million to get $6 million back. That's not reckless. That's strategic momentum. Now that's just pre-launch. Now you might think, yeah, but I don't have $4 million. Like I said, here's the key. Scale the principle, not the number. The idea is simple.

5:17 Everyone's watching and building up the momentum. Apple has a lot of that word of mouth going. Alex Ramozzi didn't, so he built it. And he built it by kind of a brute force approach on ads, but there are also grassroots ways where he... So I went on, saw his ad, saw multiples of ads. I mean, I think I saw four or five ads of him a week, just constantly.

6:17 landing page, I didn't make a purchase. Second time when I went to his landing page, I made a purchase. So the return was I had to see a couple of ads. I kind of got it, had to get brute force, got people, you know, texting me. Oh, you got to see this guy. Okay. Okay. Okay. Okay. I'm gonna go buy the book. I go buy the book, you know, cause VIP, you're supposed to get X, Y, and Z and all these things and high quality stuff.

7:19 that he was able to execute and kind of designed it in a way where you felt like, okay, you have to go register for a software service. You have to go do this next thing. So when I went to buy VIP, you get some things, I cool, you get entered into a sweepstakes or whatever to go to Vegas to meet him. You get all these things for being a VIP, which is just pre-order the book.

8:24 to, you know, you had 10 people, you get this a hundred people get this thousand people get this. And I will admit some of those were VIP features. You know, if you did VIP, I still got them without having to send the referrals to test and make sure he's honoring his word, but it was curated in a way where it felt like you needed to do affiliate marketing in order for this to work, which isn't technically true, but it was ingenious.

9:27 and like, oh, I can get all these cool features. Okay. I can blast it to people and people would be like more excited to get an email text message from a friend saying, Hey, check out this book. Now, of course, if you're sending a thousand emails, you probably aren't friends with a thousand people, but you might be using your, you know, business newsletter list, et cetera, or include it in the bottom of a newsletter list as if it was sponsored and it's not really sponsored.

10:29 more. And it stayed pretty average and consistent for hours. And it felt like an infomercial. It was really strange. And like, I never would sit around and watch an infomercial, but for some reason the delivery was cool and he was sharing good content and I was taking notes and it was inspirational. But he said he did this to break his record. He created a donate 200 books engine.

11:31 costs were quite expensive. I mean, you're literally packing books, which weigh a lot of money. We're not talking about eBooks. We're talking about physical books. And the framing to donate was a heartfelt pitch from him describing his whole purpose as an entrepreneur to inspire and give resources to entrepreneurs who are starting businesses and don't know how to succeed because he was one of them. In fact, I have the audio book and I've been listening to the first 42 minutes and it's been, it's a phenomenal story.

12:34 the information I got. Why? Because this is a viral marketing plus it's money making models. And we'll see how that goes when I launched a product soon. So each buyer got 199 redemption codes to share giveaway if they bought 200. And what does that do? Well, it creates a viral loop. Every single purchase turns into a marketing engine. People were texting, people were sending out that link, people were all those kinds of things, all to raise awareness.

13:38 one for yourself, donate for others. But this wasn't just a sales event. It was a movement. You could do this with 10 free trials, 50 beta invites, 100 samples, templates, free merch, discount codes. A psychology is the same. You turn your customer into distributors of your story, viral distributors of your story. And that's what viral marketing is. It's not, it has nothing to do with putting $5,000 on ads.

14:44 stack that he'll probably release this content in another way, shape or form, either sell it or give it away for free. But for now, it was locked and gated to this $5,998 purchase of 200 books. He increased the perceived value. Okay. So what's the value for 5,998 books? Okay. I get one book. I might read a second book. I might give away a couple of books, but I have all these in the warehouse or I have to give them away or whatever.

15:44 ChatGPT did a deep dive research in him. And we can say, eh, he's probably knows what he's doing, probably is honest about making the millions, probably honest about his work. Now, of course, I don't know him personally, so I can't say for a matter of fact. And I know it kind of gives scam vibes a little bit when you're like, it's kind of standoff just a little, it's like in the border.

16:44 different businesses, retail businesses, software as a service businesses, event planning businesses, agencies, the gym, all nine yards, just random people that have bought this additional, it was 200 books and there was like a 800 book donation, which was like thousands of dollars or more or whatever. And you got a call. He would, he called you on the live stream. And when that like creates more, I mean, I don't know about you, but I was taking nothing but notes.

17:48 115,000. And I bet a substantial amount of them were like me just tuning in the entire time. So this is what he did for his value. Let's go back to value. He's creating viral marketing for his book and he wants to break barriers. He wants to break records, right? Well, no, he just wants to create marketing and expand, get customers and expand his business. So he offers, in addition to the 200 donated books, he offered 12 premium acquisition playbacks, included emails, sales, lead generation templates.

18:50 it open-ended after the successful live and was just going to buy new inventory, he's physically giving away those playbooks. There's not digital. I think one of them was digital and that was the live playbook that exclusively for how he executed the live, included his memos, all those kinds of things. And it felt like it was worth $60,000. It made $6,000 look like an investment into your business worth 60K or more.

19:53 But if it's automated, it should cost you nothing. Improvements, okay, that's going to cost you something. And you might have some coders and such, and you might have some concerns. But when you're building a product, literally the margins on a software as a service that's well-designed, okay, like Twitter warns us, people have spent 90 plus millions of dollars, it's Twitter, 90 millions of dollars on Amazon cloud.

20:55 make that back within 30 days of that purchase. If you don't, don't run ads. Change the ad, update the ad, try something else. If you don't make that back in 30 days, what are you doing? Let's talk about this upsell letter. Okay, just when you thought it was done, Hormozi added another layer. A one-time upsell. We just talked about this. We talked about the 800 copy advisory package, right?

22:02 please note. Last number that he reported was $3,626,000 plus people who pre-ordered the book. Which would include people who bought $200 and the people who bought $800 through these donation schemes. Now, scheme doesn't mean scam. Remember, it may feel like it to someone who's like, I don't perceive the value. Well, great, don't buy it. To those that perceive the value, they loved it and will love receiving this material.

23:04 But his margins were like 3%. That's his profit margin. That's a really low profit margin. Oh, no, it's not. It's 30%. Well, you have to think about that profit margin goes into ads. That profit margin goes into growth. If you're not making a higher profit margin, your business isn't going to scale fast enough to meet the demand or the vision that you have. So we're not just building ladders.

24:08 or you're creating a this and your model is one-time purchase. Well, don't do one-time purchase. He did a multi-tier funnel. You're funneling here, made a purchase. Great. That purchase is people who already made a purchase, guaranteed already made a purchase. And he found that he could upsell to them. Maybe they are entrepreneurs who are spending thousands and millions of dollars in ads. I can upsell them again.

25:15 you building? Oh, I just want to sell my one product. What's the lifetime value of a customer to you? What if you could change that lifetime value? What if you could change a customer from $129 for a one-time purchase to a $6,000 purchase to a $3,000 a month purchase for six months to a possible acquisition or to a possible advisory placement where you're there spending $150,000 a month or whatever it is, up to maybe even eventually acquiring them into his portfolio of companies?

26:18 this is how you say his name. I am terrible at pronouncing names. I can barely pronounce my last name. So please don't take it personal. Anyway, when you think about it, your business, don't ask, what's my funnel? Ask, what's my model? And how can I turn that funnel into a flywheel? How does each customer create the next customer? That's flywheel marketing. How does each customer create the next customer?

27:24 one person referred a hundred out of a hundred people that bought that purchase. Well, then they referred another hundred. What if that one person refers on? What if you get someone that has a $10,000 email list? And it's like, dude, I'm going to include this in, I don't know, morning brew. I'm not saying they did. I don't think they did. Well, I'm going to go include this in morning brew and everyone's going to see.

28:26 Buy 200 books. Take one for yourself and donate $199. And if you do, here's my playbook. Here's my AI. And we're talking about sales playbook, marketing playbook, email playbook, advertisers playbook for Instagram ads and Facebook ads and all these information that a lot of people that's available to you on YouTube, but never boiled down to one resource like this, at least two businesses that were buying it up like bulk.

29:32 and maybe it was over-marketed afterwards. And maybe, you know, the buzz of Alex Hormozi is wearing off because I got so many emails. I mean, email after email, after email, text after text, like during his live, it was, Hey, I just launched this. Hey, I'm giving this away. Oh, did you get this? And I mean, email, email, email, email, email, like, like one an hour, one every 30 minutes.

30:34 but he kind of knew where that line was. And it, I think he did a fairly good job with execution. I, I may not execute it as hard of a sale as he did because I feel like it was a little too much, but I'm taking notes. I'm taking notes. So your blueprint, let's, let's make this actionable for you. Here are five steps you can model right now.

31:40 I have ad blockers to the extreme, like Alex Hormozi reached me. And that in itself either speaks how gullible I am or speaks how impressive his brute force approach, his viral marketing approach worked. Four, layer in a smart upsell letter. Now, upselling may seem like, oh, they made a purchase. I want to upsell. You need to do that. But the upsell should never be less or the same price.

32:41 perceived value if I bought the $5,998 or the $3,000 a month for six months, or even the $29,500. Think flywheel, not a funnel. Flywheel, not a funnel. You don't just sell an offer. You launch a movement. You don't need millions. You just need the structure. Because the structure scales up or down. Here's the truth. You spend $100 on ads a day will get you a result. Here's the truth.

33:46 told you anything else, look, as you build momentum, as you create those flywheels, you'll get more cash from that. The whole benefit of the flywheel funnel approach, so tossing away the funnel, going to a flywheel approach, is it designed to give you cash flow first. Here's the bonus I promised I'd give you. If it costs you, let's say it costs you $127 to acquire one customer, then you make a flywheel approach, multi-tiered funneling, flywheel approach that results at the end of that transaction or the end of 30 days.

34:49 you're paying back that credit card that's on the ads. You're not going into debt, right? Most small businesses and most people, I can't give specific client information, but I can tell you, I've seen clients spent hundreds of thousands of dollars for less than $1,000 return on investment. And it sucks. And you don't have pass. You don't have lead magnets. You're not getting valuable emails. Even when you're getting them, you're not using them.

35:50 systems. Use them responsibly. Fiscally responsibly. Use your brain. Okay. Use ethically or use responsibly. I'm going to post that everywhere. If I start doing this kind of stuff, but like use responsibly. So you can start at a hundred. You can start at a thousand. You can start at a hundred thousand. You build and build and build and build and build. And eventually you'll be in a profit plus because someone comes in, pays the cost of acquisition, and those flywheels start growing and expanding.

36:53 vision and purpose that God has placed on your heart. That's my whole goal for you to pursue your vision and purpose. And I'm excited to see what you can do. That's why I'm building that software as a service. I'm excited to launch. That's how the universe exists. That's why this podcast exists. You have a purpose. God's given you a purpose. You have a divine destiny. And the only way you're going to activate it is if you use knowledge and understanding, and you use that wisdom that God's given you, and you run with it.