Are you looking to grow your brand and increase your revenue by making the best use of social media platforms? It’s crucial to understand where your time and effort will yield the most results. Alex Hormozi, a successful entrepreneur, recently shared valuable insights on how to prioritize social media platforms based on their potential to generate income.
His evidence-based approach is designed to help marketing professionals and business owners maximize their returns by focusing on the platforms that convert the best for their specific audience.
TikTok: High Growth, Low Conversion
TikTok is an exciting platform with significant growth potential, especially for new creators. It ranks high in discoverability, meaning you can quickly gain followers, even with minimal content. However, Hormozi’s data reveals some downsides. TikTok’s audience largely consists of users under 30, and only 27% of users come from households earning over $100,000 annually.
Even though growth is easy on TikTok, the depth of engagement is very low. Most videos get between 5 to 20 seconds of attention, leaving little room to build meaningful relationships with your audience. Hormozi rated TikTok an “F” for conversion, as many users scroll without engaging deeply, and it only generated 2.5% of his overall traffic. Although TikTok Shop shows promise for low-ticket items, it’s not ideal for businesses offering services or high-ticket items.
YouTube: The Highest Converting Platform
YouTube is where Hormozi sees the most potential. With 89% of households earning over $100,000 using the platform, YouTube is filled with affluent audiences. Additionally, 83% of the U.S. population uses YouTube, making it a dominant player in the content space.
The average view duration on YouTube is 8.5 minutes, which allows you to create deeper connections and provide value to your audience. While conversion rates may seem low at first glance, the caveat is that YouTube traffic tends to convert at three to four times the rate of other platforms. For Hormozi, 60% of the serious leads he converts come from YouTube, making it a top-tier choice for business owners. He ranked YouTube “S” tier, indicating it’s where he’s investing most of his resources.
Instagram: High Traffic, Decent Conversions
Instagram comes in as another top performer for business owners. With 54% of users coming from households earning over $100,000 and 47% of the U.S. population on the platform, Instagram provides a strong mix of high-earning users and mass market reach.
Instagram’s recent growth through Reels has made it easier for new creators to gain visibility. Hormozi noted that his Instagram account generates 48% of all traffic to his website. However, Instagram’s average session duration is shorter, at about 28 seconds, which means users don’t stick around as long as on YouTube. Despite this, Instagram ranks highly due to the multiple conversion tools available, such as stories, direct messages, and swipe-up links. Hormozi gave Instagram an “S” tier rating, making it a must-focus platform for generating traffic and conversions.
Facebook: A Resurgent Platform
Surprisingly, Facebook has made a comeback with the introduction of Facebook Reels. Despite being an older platform, Facebook now boasts a user base where 68% of households earn over $100,000, and it has the second-highest session duration of 53 seconds.
Hormozi found that his smaller following on Facebook (150,000 followers) generated more traffic than his much larger TikTok following (900,000 followers). He now ranks Facebook in the “A” tier, seeing it as a high-conversion platform worth investing more resources into.
LinkedIn: Targeted and High-Converting
For B2B marketers, LinkedIn remains a goldmine. With 53% of LinkedIn users coming from high-income households, and the platform being highly targeted for outbound sales, LinkedIn allows you to find and connect with decision-makers in your industry. Hormozi highlighted LinkedIn’s Sales Navigator as an essential tool for finding qualified leads.
LinkedIn also allows for direct messaging, which increases conversion potential. Though growth on LinkedIn is slower, it has a laser-focused audience, making it a “B” tier platform for Hormozi due to its outstanding outbound capabilities and high-quality leads.
Email Marketing and Podcasts: The Long-Term Nurturers
Email marketing is often overlooked, but it is by far one of the most effective ways to convert your audience. Hormozi emphasized that if you’re not generating at least 30% of your revenue from email, you’re leaving money on the table. Email has a remarkable 36:1 ROI, making it the most cost-effective channel for conversions. Hormozi gave email marketing an “A” tier ranking for its ability to build long-term customer relationships.
Podcasts also offer deep engagement, with listeners spending an average of 20 minutes per session. While it’s difficult to grow a podcast audience, those who follow tend to be highly engaged and loyal. For that reason, Hormozi rates podcasts as “B” tier, perfect for nurturing existing relationships rather than rapid growth.
Conclusion: Where to Invest Your Time
If you’re looking to maximize your efforts across social media platforms, Hormozi’s findings point you toward platforms that not only offer growth but also foster meaningful conversions. YouTube and Instagram should be top priorities for most businesses, offering both depth and breadth. For B2B businesses, LinkedIn remains highly effective, while Facebook has surprising potential due to its recent updates.
Lastly, don’t underestimate the power of email marketing and podcasts for building long-term relationships with your audience. By focusing on platforms where your ideal audience spends time and engages deeply, you can scale your business and grow your revenue faster.
