The Money Printing Machine: Investing in Advertising | Ep 626
"Fundamentally, if you're making more money back from customers than it costs you to get them, then you are printing money." Today, Alex (@AlexHormozi) shares his three-step process for scaling ads in portfolio companies, emphasizing the importance of tracking ad spend, preparing to lose money, and optimizing for the lifetime gross profit to customer acquisition cost ratio. He also discusses the benefits of split testing and creating multiple ad creatives to find the winning formula for successful advertising campaigns.
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.
Timestamps:
(0:54) - Phase 1: Track expenses, spend only when traceable.
(1:44) - Phase 2: Start with money loss, find winners, extend payback.
(6:18) - Phase 3: Reach money printing. Measure LTGP/CAC for growth.
(6:40) - Focus on LTGP/CAC ratio, efficient acquisition, quick payback.
(9:51) - Businesses grow through client-financed acquisition, overcoming bottlenecks.
(11:58) - Scale advertising once foundational aspects are perfected.
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