Measuring paid ad efficiency is important for running a successful business. It involves comparing the lifetime gross profit (ltgp) of a customer with the cost to acquire that customer (cack). By expressing this ratio as ltgp to cack, you can determine if your advertising is profitable or if you're losing money. A good ltgp to cack ratio is three to one or higher. When this ratio is achieved, businesses can scale and thrive. Remember, ltgp is the actual money used to cover expenses and run the business.
“If you want to become a great entrepreneur, you have to learn about them.” In this episode, Alex (@AlexHormozi) discusses his expertise in making profitable ads and shares his personal experience and insights on targeting the right audience, crafting effective ad copy, and achieving efficient monetization. Listen to learn from his experience and avoid the mistakes he made, with a focus on how to create ads that generate leads and drive profit.
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.
Get your own copy of the book at acquisition.com/books
Timestamps:
(0:58) - Run Paid Ads I: Making Ads
(11:32) - Elements Of Making an Ad
(34:19) - Run Paid Ads II: Monetizing Ads Efficiently
(45:47) - Personal Lessons from Paid Ads
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