5 Customer acquisition strategies that work like magic, according to Alex Hormozi
Serial entrepreneur Alex Hormozi reveals 5 powerful customer acquisition strategies that helped his portfolio companies generate over US$250 million in annual revenue.
Serial entrepreneur Alex Hormozi recently shared powerful customer acquisition strategies that have helped his portfolio companies generate over US$250 million in annual revenue. As the founder of Acquisition.com, a family office that invests in and scales businesses, Hormozi has built, flipped, and sold multiple ventures generating eight to nine-digit revenues yearly.
Acquisition.com's portfolio companies reportedly acquire a new lead every six seconds. Through his experiences scaling ten startups, Hormozi has developed several customer acquisition "flywheels" that deliver results so quickly they almost feel illegal.
1. Give away what others charge for
Hormozi's favorite marketing strategy involves a simple but powerful approach: look at what competitors charge for, assess the hard costs of delivering it, and then give it away for free.
"The idea is that you can give something significantly better away for free than everyone else does, ideally something that other people actually charge for," says Hormozi.
This strategy creates an immediate value proposition that attracts prospects into your ecosystem. When you give away premium content that exceeds what competitors charge for, you establish authority and generate leads that can convert to paying customers.
According to a recent report[1], 29% of marketers consider content marketing a core strategy. However, Hormozi takes this concept further by advocating for giving away genuinely valuable assets rather than just content pieces.
For example, Hormozi spent over 200 hours creating a free scaling roadmap that helps businesses navigate growth from zero to US$100 million. This comprehensive asset breaks down ten stages of growth across eight different business functions, providing personalized solutions for entrepreneurs—all at no cost.
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2. Prioritize quality over quantity in marketing talent
When building a marketing department, many businesses make the mistake of either understaffing (relying on one or two people) or overstaffing (hiring too many mediocre marketers). Hormozi suggests a different approach: invest in fewer but better marketing professionals.
"The people who have skills are the ones that are moving the needle," Hormozi explains. "The difference between the best guy and the worst guy in marketing isn't like the best guy who can cut a lawn and the worst guy who can cut a lawn... With somebody in marketing, somebody who's a zero marketer versus a 10 marketer, the 10 marketer might literally be able to do 100 million times more of the output."
Hormozi shares an example from his experience at Gym Launch, where he reduced the marketing team from 17 people to just five—and then saw output triple. The lesson: one exceptional marketer might deliver more value than ten average ones.
3. Ask the "what would it take to be #1" question
Instead of incremental thinking (trying to improve by 10% or 20%), Hormozi recommends a more radical approach: ask what it would take to become the number one player in your market.
This question forces businesses to think beyond traditional constraints and envision what would be required to outpace even their largest competitors. By working backward from this ambitious goal, companies can identify the few critical factors that would truly move the needle.
"What happens oftentimes when I ask this question is they usually state one or two key big things that would have to happen for the business to be number one," says Hormozi. "Then I ask, what would it cost for us to do that? Do we have the resources to make that happen?"
Hormozi applied this thinking to his own career when he asked himself what it would take to build one of the best investment firms in the world. His answer led him to focus on building a massive business brand through content creation and book publishing—which eventually became the foundation of his success.
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4. Create irresistible affiliate models
Rather than offering standard referral commissions (such as 20% of a purchase), Hormozi recommends a more compelling approach: let affiliates keep 100% of the revenue from a specific subset of your offerings.
Here's how it works: Instead of splitting revenue, carve out a portion of your product or service that affiliates can sell entirely for themselves. For example, if you operate a massage business, you might allow affiliates to sell three-massage packages and keep all the revenue, provided they meet your minimum price requirement.
"What ends up happening is they either use it as an upsell or they include it in their $1,000 thing and put your thing in and charge $1,000 and give them the three massages," Hormozi explains. "You don't care either way—you have a $90 cost of getting somebody who spent a lot of money and is perfectly qualified for whatever your next thing is."
This unconventional approach creates a powerful incentive for affiliates. Rather than feeling like they're splitting revenue with you, they perceive it as an opportunity to generate pure profit. As Hormozi puts it, "If you're going to have affiliates, do it like you mean it. It has to be incentivizing enough to change their behavior, or it's useless."
5. Make truth your greatest marketing asset
While some marketers might feel tempted to hide their weaknesses, Hormozi advocates transparency—even about potential shortcomings. He suggests using a "damaging admission" formula: acknowledge negatives but follow them with an offsetting positive.
"Nothing sells like the truth," says Hormozi. "A lot of what people think are negatives are actually things that make their offer or their business more compelling, especially to the right audience."
For example, if your business is small with limited capacity, don't hide it—emphasize how this allows for more personalized service. If your gym owner isn't in perfect shape, acknowledge it while highlighting how the gym still helps members get results.
This approach builds trust and disarms criticism. When you openly admit potential weaknesses, prospects are more likely to believe your claims about strengths. As Hormozi explains, "If you claim them, then people can't hold it against you, and the hardest thing in all of marketing is getting someone to believe you."
Putting it all together
These customer acquisition strategies can help businesses quickly build a customer base without relying on conventional marketing approaches. By giving away premium value, investing in top marketing talent, thinking boldly about market domination, creating win-win affiliate models, and embracing radical honesty, businesses can accelerate growth while establishing a foundation for long-term success.
For companies looking to implement these strategies, Hormozi offers a final piece of advice: "The truth isn't just a good strategy; it's the only long-term strategy."
Sources
- Content Marketing Institute. (n.d.). Content marketing statistics. https://contentmarketinginstitute.com/content-marketing-strategy/content-marketing-statistics
