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Funnel conversion, lead response and sales-capacity rules of thumb

Hormozi's quick checks for a lead-to-sale funnel — 10% close of Meta leads for in-person services, 2–5% of webinar opt-ins, 35% for salespeople, 1–2% for web pages — plus call leads within 60 seconds, keep sales calendars ~70% full, and the "rule of 100" for lead volume.

Funnel conversion, lead response and sales-capacity rules of thumb

TL;DR

  • Conversion yardsticks (Hormozi): Meta leads → in-person service sale ≈ 10%. Cold webinar opt-ins → sale ≈ 2–3% for broad markets, up to 5% niched. A salesperson with a proper process ≈ 35%. Web pages ≈ 1–2%.
  • Call new leads within 60 seconds. He says slow follow-up can make each customer cost about 4x as much and also lowers close rate and margin.
  • Keep sales calendars about 70–75% booked, never above 85% or below 60%. When in doubt, hire another rep.
  • Rule of 100: 100 acquisition actions a day for 100 days on one channel. “Feast or famine” lead flow is a volume problem, not a randomness problem.
  • Don’t benchmark against industry averages. Use them only to spot gaps.

Details

Conversion yardsticks. These are Alex Hormozi’s rules of thumb, measured on leads rather than shows. Out of 100 Meta-ad leads for an in-person service business, about 10 should buy.1 For webinar opt-ins (everyone who registered), expect 2–3% to buy in broad markets and up to 5% in niche ones.2 He wants salespeople, including in-home ones, to close at least one in three. If they close more, he raises price, and if they close less, he fixes the process (see Am I underpriced? Reading price from sales close rate).2 Web pages usually convert 1–2%. Skool’s about page converts about 4% because people already trust the platform. His book’s Amazon page converts about 25% of clicks, but Amazon keeps most of the money: about 10x the conversion per click for about a third of the gross profit, which still nets him roughly 3x more.23

Speed to lead. Letting a fresh opt-in “cool off” gives them time to shop competitors and compare you on price. Hormozi claims that roughly quadruples CAC and also pulls down close rate and gross margin.45 To founders who say they can’t afford someone to call leads that fast, he points out that the extra revenue pays for the hire. He ranks lead response time as the number right under LTV:CAC that reveals how well a business is run.56

Calendar utilisation. If reps are fully booked, total sales rise but conversion falls, so CAC rises. Appointments get pushed further out and into inconvenient slots, and both cut show rates. Reps also stop doing outbound and stop following up on the “six-inch putts” already in their pipeline.78 At about 30% utilisation, morale drops and reps get “commission breath”, needing each call too badly. He aims for 70–75% booked, with 85% as the ceiling and 60% as the floor.8 At Gym Launch, sales stayed flat across high and low ad weeks. Reps were inefficient when swamped and worked their pipelines when calendars were empty. He says he has “yet to make less money by hiring more salespeople”, and adding reps is often a better fix than changing commissions.910

Rule of 100. Hormozi’s rule for starting a channel is 100 actions a day (outreach, content, ads) for 100 days. He says most people get their first customer by about week three.11 Bigger businesses apply the same rule to each new channel or platform.12 Lumpy sales mean too little volume measured over too short a window. If you get one sale every 10 days, do 10 days’ worth of advertising every day.13 Acquisition.com publishes about 450 pieces of content a week. Returns per piece diminish, but diminishing returns are still returns, and people who optimise for efficiency give up the most total output.1415

Disagreements / caveats

See also

Footnotes

  1. The Mathematics of Business, Explained @ 54:53 — Alex Hormozi ↩

  2. The Mathematics of Business, Explained @ 56:11 — Alex Hormozi ↩ ↩2 ↩3

  3. The Mathematics of Business, Explained @ 57:24 — Alex Hormozi ↩

  4. The Mathematics of Business, Explained @ 22:30 — Alex Hormozi ↩

  5. The Mathematics of Business, Explained @ 24:02 — Alex Hormozi ↩ ↩2

  6. The Mathematics of Business, Explained @ 22:30 — Alex Hormozi ↩

  7. The Mathematics of Business, Explained @ 25:44 — Alex Hormozi ↩

  8. The Mathematics of Business, Explained @ 26:36 — Alex Hormozi ↩ ↩2

  9. The Mathematics of Business, Explained @ 27:27 — Alex Hormozi ↩

  10. The Mathematics of Business, Explained @ 28:23 — Alex Hormozi ↩

  11. The Mathematics of Business, Explained @ 15:54 — Alex Hormozi ↩

  12. The Mathematics of Business, Explained @ 17:26 — Alex Hormozi ↩

  13. The Mathematics of Business, Explained @ 18:25 — Alex Hormozi ↩

  14. The Mathematics of Business, Explained @ 19:58 — Alex Hormozi ↩

  15. The Mathematics of Business, Explained @ 21:18 — Alex Hormozi ↩