In this episode, Alex Hormozi discusses the importance of affiliates and partners in scaling a business. He shares strategies for picking the right affiliates, making offers, and keeping them advertising. Learn how to launch with affiliates, build an affiliate army, and utilize affiliates for successful launches. Discover three strategies for integrating a product into an affiliate's offer. Explore the concept of affiliates and partners in advertising, including payment structures and forming relationships.
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Quick takeaways
Building an affiliate army can provide a high leverage way to get more leads and customers, resulting in significant scaling and increased revenue.
Integrating products or services with affiliates' offers maximizes returns and creates enduring lead flow, benefiting from the exponential growth potential of affiliates.
Deep dives
Building an Affiliate Army: Recruiting and Activating Affiliates
One of the main ideas discussed in this podcast episode is the importance of building an affiliate army to promote your products or services. The speaker emphasizes that affiliates are independent businesses that can be valuable in driving leads and sales. To recruit affiliates, the speaker suggests finding businesses with warm audiences similar to your customers and making them an offer to earn commissions. The speaker also discusses the significance of qualifying affiliates by getting them to invest, either by purchasing your product or paying for certification. The key point is that building an affiliate army provides a high leverage way to get more leads and customers, resulting in significant scaling and increased revenue.
Maximizing Returns with Affiliate Integration
Another key point highlighted in the podcast is the importance of integrating your products or services with your affiliates' offers to maximize returns. The speaker provides three integration strategies: giving away lead magnets, having affiliates sell lead magnets separately, and enabling affiliates to directly sell your core offer. The goal is to make the affiliate's offer more valuable and incentivize them to promote your products. By integrating effectively, businesses can create enduring lead flow and benefit from the exponential growth potential of affiliates.
Paying Affiliates and Calculating Returns
The podcast delves into the topic of paying affiliates and calculating returns. The speaker suggests paying affiliates based on a percentage of the maximum allowable cost to acquire a customer. This ensures a fair payout for affiliates while maintaining profitability. The speaker also emphasizes the importance of providing value to affiliates by offering cash incentives, free products, or credits towards future purchases. Additionally, the episode explores how to calculate returns by comparing the gross profit generated from affiliate referrals to the cost of acquiring those affiliates. Overall, understanding and optimizing payouts and returns is crucial for building successful and profitable affiliate partnerships.
The Power of Affiliate Advertising and Scaling Strategies
One significant insight discussed in the podcast is the power of affiliate advertising in scaling a business. The speaker shares real-life case studies, including examples from national tax preparation services, a supplement company, and chiropractors, to illustrate how different businesses leverage affiliates to drive leads and increase revenue. The speaker highlights the importance of launches, promotions, and ongoing integration with affiliates to ensure continuous lead flow and business growth. By utilizing affiliate strategies effectively, businesses can tap into a powerful source of engaged leads and achieve long-term success.
“The more they think the other steps will help them solve their larger problem, the more likely they are to buy them.” In this episode, Alex (@AlexHormozi) talks about the importance of affiliates and partners in scaling a business. He shares his strategies for picking the right affiliates, making them offers, and keeping them advertising.
Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned on his path from $100M to $1B in net worth.