Lead magnets aren’t free.
People pay with their time, and if it feels wasted, they won’t listen to you again.
Here’s Alex Hormozi’s 7-step formula for creating lead magnets so insanely good, people will jump to buy from you:
What is a lead magnet?
A lead magnet is a complete solution to a narrow problem.
And, once solved, it reveals another problem solved by your core offer.
This is important because leads interested in lower-cost or free offers now are more likely to buy a related higher-cost offer later.
But why do I even need to create a lead magnet? Can’t I just promote my core offer?
Sometimes, people want to know more about your offer before they buy.
This is common for businesses that sell more expensive stuff.
If that’s you, then you’ll often get more leads to engage by advertising with a lead magnet first.
So your lead magnet should be valuable enough on its own that you could charge for it.
And, after they get it, they should want more of what you offer.
Remember, a person who pays with their time now is more likely to pay with their money later.
Now, let’s get to Alex Hormozi’s 7-step formula:
Step 1: Figure out the problem you want to solve and who to solve it for.
To figure out the problem, use the Problem-Solution Cycle (photo below).
Start by picking a problem that’s narrow and meaningful. Then, solve it. And then, a new problem reveals itself.
Here comes the important part- if you can solve that new problem with your core offer, you’ve got a winner.
This is because you solve this new problem in exchange for money. That’s it. Don’t overthink it.
Action Step: Pick the narrowly defined problem you want to solve. Then, make sure your core offer can solve the next problem that comes up.
Step 2: Figure out how to solve it
There are 3 types of lead magnets:
– Problem Revealers: Show them the problems they didn’t know they had.
These lead magnets work great when they reveal problems that get worse the longer you wait.
– Samplers & Trials: Give them a taste of your solution.
This works great when your core offer is a recurring solution to a recurring problem.
– One Step Of The Process: Solve one part of their bigger problem.
This works great when your core offer solves a more complex problem.
Action Step: Pick how you want to solve your narrowly defined problem.
Step 3: Figure out how to deliver it
Alex Hormozi’s favorite lead magnets solve problems with software, information, services, and physical products.
Software: Provide tools like spreadsheets, calculators, or small software solutions.
Information: Share knowledge through courses, lessons, interviews, or guides.
Services: Offer a sample of your service, such as a free audit or consultation.
Physical Products: Send tangible items that provide value, like supplements or assessment charts.
Action Step: As a thought exercise, think of a lead magnet and then a version of it for each delivery method. You always can, I promise. Then, pick how to deliver your lead magnet.
Step 4: Test What To Name It
The three things you’ll want to test are the headline, the image(s), and the subheadline, in that order. The headline is the most important. So if you only test one thing, test that.
For $100M Leads, the title: “How to get strangers to buy your stuff” performed overwhelmingly better than “Get strangers to buy your stuff.”
Action Step: Test. If people engage in droves, you’ve got a winner.
Step 5: Make it easy for them to consume
People prefer to do things that take less effort.
So if we want more people to take us up on our lead magnet, and consume it, we gotta make it easy.
– Software: Make it available on mobile and desktop.
– Information: Provide text, video, audio, and images.
– Services: Offer flexible timings and methods (e.g., in-person, video call).
– Physical Products: Ensure simple ordering and usage instructions.
Action Step: Package your lead magnet in every way you can. It dramatically increases how many engaged leads come your way. And more leads engaging with your lead magnet means more leads getting value from it. This is huge.
Step 6: Make it darn good.
Give Away The Secrets, Sell The Implementation.
The marketplace judges your business based on the value you provide, even in free offerings.
Make sure your lead magnet is so valuable that people feel compelled to share it and consider your paid offer.
Action Step: 99% of people aren’t gonna buy, but they will create (or destroy) your reputation based on the value of your free stuff. So, make your lead magnets as good as your paid stuff. Your reputation depends on it. Provide value. Stack the deck. Reap the rewards.
Step 7: Make it easy for them to tell you they want more
Once the leads consume the lead magnet, some of them will be ready to buy or learn more about your offer.
Good CTAs have clear, simple, and direct language. Not “don’t delay” but instead “call now.”
To make your CTAs insanely effective, use techniques like scarcity (limited availability) and urgency (time-sensitive offers – time-limited bonuses is Alex’s favorite type of urgency) to motivate action.
Action Step: Tell them what to do next, why it’s a good idea, do it clearly, and do it often
To recap:
Step 0: If you’re struggling to get leads, make an amazing lead magnet.
Step 1: Figure out the problem you want to solve for the right customer
Step 2: Figure out how you want to solve it
Step 3: Figure out how to deliver it
Step 4: Make the name interesting and clear
Step 5: Make it easy to consume
Step 6: Make sure it’s darn good
Step 7: Tell them what to do next, why it’s a good idea, do it clearly, and do it often
If you’re interested in collaborating with me to create a converting lead magnet and develop a sustainable email marketing strategy, contact me here for all the details.