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How to Close a Deal on the Phone Before They Hang Up | Ep 953

Alex Hormozi coaches a swim school business owner currently generating $300,000 annually with $1,400 monthly ad spend and $12 cost per lead. The owner's challenge is converting cold leads from advertising, having previously grown entirely through word-of-mouth referrals.

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Alex Hormozi episode thumbnail: How to Close a Deal on the Phone Before They Hang Up | Ep 953
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Key Takeaways
  1. 01

    Swim school owner generates $300k annually with $12 cost per lead but struggles closing cold leads from ads

  2. 02

    The CLOSER framework: Clarify needs, Label problems, Overview solutions, anchor around urgency, close alternative doors, then present offer

  3. 03

    "Honestly, the best time to start would have been last month. So you're a little late" - Alex demonstrates urgency anchoring

  4. 04

    Front-end offer restructured from $100/month to $600 for 12 guaranteed sessions with completion promise

  5. 05

    Back-end upsell targets $2,500 for full water mastery program (60-100 sessions) with front-end credit applied

  6. 06

    "You've never sold before, man. Referrals don't count" - Alex distinguishes between warm referrals and cold sales

  7. 07

    Take payment over phone using secure link while staying on call to ensure completion and booking confirmation

  8. 08

    Three pillars framework: right environment, right expertise, right process - close all alternative doors systematically

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Alex Hormozi coaches a swim school business owner currently generating $300,000 annually with $1,400 monthly ad spend and $12 cost per lead. The owner's challenge is converting cold leads from advertising, having previously grown entirely through word-of-mouth referrals.

The conversation covers three core areas: pre-selling customers before presenting offers, creating genuine time urgency without being pushy, and completing phone sales with payment processing. Alex demonstrates his CLOSER sales framework and restructures the business model from monthly subscriptions to higher-value package deals.

The session reveals fundamental differences between selling to warm referrals versus cold leads, with Alex emphasizing that referral-based growth doesn't develop true sales skills. The discussion includes specific scripts, objection handling, and upsell strategies for maximizing customer lifetime value.

The CLOSER Framework for Phone Sales

Alex teaches the CLOSER methodology: Clarify the problem, Label their situation, Overview alternatives, anchor around urgency, close other doors, then present the solution.

"So we have to say, hey, if you're not going to do this, what would you do? Well, I would do it at home. Well, do you have access to a pool?" - Alex demonstrates systematically closing alternative options.

The three-pillar framework positions the service: right environment (no distractions), right expertise (trained instructors vs lifeguards), and right process (systematic approach).

"Is it safe to say that there's no reasonable alternative for you right now?" leads to "honestly, you're the perfect fit for what we have" - establishing authority before presenting the offer.

Creating Time Urgency Without Manipulation

"Honestly, the best time to start would have been last month. So you're a little late" - Alex shows how to anchor urgency by repositioning timeline expectations.

When parents say they want to start in summer, reframe it as "you want him ready by summer" and explain they need to start immediately to meet that goal.

"If you want a woman to miss the summer, he needs to start coming like tomorrow. So it's like, what's the first day this week you can bring him in?" - moving from vague future to specific immediate action.

Phone Payment Processing and Completion

"What card do you want to use? Visa or MasterCard?" - assume the sale and give limited options rather than asking if they want to buy.

"Don't read the card number. It's fine. Let's just keep it safe. I'm going to send you a link right now. I'll stay on the phone line to make sure works out" - secure processing while maintaining control.

Stay on the call through completion: "Let me make sure that I see it on my end because the times go quick and we've got a huge amount of students that are actually just scheduling this on their own."

Restructuring Pricing from Monthly to Packages

Current model: $100/month plus $40 registration fee changed to $600 upfront for 12 guaranteed sessions with completion promise.

"Let's just charge $600 to make sure that you don't have to worry about your kid drowning. And if your kid has any issues at the end, I'll keep working with them until they float."

Back-end upsell targets $2,500 for complete water mastery (60-100 sessions) with front-end payment credited toward the larger program.

"You'd be making 12 grand on your $1,400 ad spend. That's up front, that doesn't even include back end" - demonstrating the revenue potential of proper pricing structure.

The Reality Check on Sales Experience

"You've never sold before, man. Referrals don't count. You've never sold. It's okay" - Alex distinguishes between warm referrals and cold lead conversion.

Business owner admits to being "used to very hot leads who are calling us" rather than having to actively sell to cold prospects from advertising.

Despite no sales experience, the owner managed 5 conversions from cold leads, which Alex considers promising for scaling to 15-20 with proper technique.

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