Marketing Crafted

Alex Hormozi’s $20M Prestige Labs Marketing Strategy

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Prestige Labs logo

Alex Hormozi

Founder, Prestige Labs

Follow on X

$1.6M

Revenue/mo

Business Type

E-commerce

Monetization

Subscription

Founded

2018

How it started

The supplement industry is a bloodbath.

Walk into any GNC and you'll see 47 different pre-workouts, 23 fat burners, and enough protein powder to drown a small village. The market is saturated, margins are razor-thin, and customers are skeptical.

Yet in 2018, Alex Hormozi launched Prestige Labs and hit $20 million in revenue in its first year.

Here's the kicker: he didn't spend a dime on traditional advertising. No Instagram influencer campaigns. No Super Bowl commercials. No annoying YouTube pre-roll ads.

Instead, he used a strategy so counterintuitive that most supplement founders would laugh at it.

Let's break down exactly how he did it.


The Backstory

At 26, Alex Hormozi had lost everything. Twice.

He'd opened six gyms, poured his life savings into them, and watched them bleed money. The final nail in the coffin? He couldn't even afford to pay his trainers. He was sleeping on a mattress on the floor of his empty gym, $150,000 in debt.

But here's where the story gets interesting.

While wallowing in bankruptcy, Alex noticed something weird. His gym members kept asking him: "What supplements should I take?"

Being the analytical guy he is, Alex ran the numbers. He was selling maybe 5% of his members supplements. The average gym owner was making $5-10 per sale. Pocket change.

Then he looked at the supplement companies. They were making a killing. But they had a problem: they didn't have direct access to gym members. They had to go through retailers, distributors, and online ads.

That's when the lightbulb went off.


The Problem

Most gym owners think like trainers, not business owners.

They open a gym because they love fitness. They pour their heart into coaching. But they leave tens of thousands of dollars on the table because they don't understand one simple concept:

Their members are already buying supplements somewhere else.

Think about it. Your average gym member who cares about results is spending $100-200 per month on supplements. They're buying from Amazon, GNC, or some Instagram influencer's link.

That money is leaving their wallet. It's just not going into their gym owner's wallet.

The traditional solution? Gym owners sign up with a supplement company as an "affiliate." They get a 10% commission. Maybe 15% if they're lucky. The supplement company does the heavy lifting – manufacturing, fulfillment, marketing.

Sounds decent, right?

Wrong.

Here's why it doesn't work: 10% commission on a $50 supplement is $5. A gym owner sells it to 100 members, they make $500. That's not enough to move the needle. So they half-heartedly mention it once a month and forget about it.

The supplement company gets limited distribution. The gym owner gets peanuts. The member gets a product they could buy anywhere.

Everyone loses.


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