Hormozi Teaches Me Everything He Knows in 90 Minutes
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My First Million
This episode is titled:
Hormozi Teaches Me Everything He Knows in 90 Minutes
Notable Quotes
"If you have a business, let's say old way, right, someone comes in... typically the conversion for like a boot camp or something like that is going to be about $99 a month, right? That's what it costs. Here's your CAC."
"When someone comes in with red hot pain, that's when you sell, not when you offer your trial."
"The reason I know this is because every single med spa that walks in these doors is killing it."
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Get More InsightsEpisode Summary
In this episode, Alex Hormozi, known as the '100 Million Dollar Man', explains key concepts from his latest book, 'Money Models'. He introduces the idea that structured offers can lead to significant revenue increases in business. Hormozi prioritizes understanding customer acquisition costs and incorporates a strategy to always exceed these costs with gross profit in the initial 30 days. He articulates that the traditional pricing strategies often hinder businesses; instead, he advocates for a model where the first offer not only covers CAC (Cost of Customer Acquisition) but also sets the stage for upsells.
He discusses his experience in the gym business, emphasizing how businesses typically struggle with low-ticket offers that do not recoup costs quickly enough. Hormozi transformed this by introducing high-value challenges with substantial upfront costs and follow-up upselling of supplements and memberships, enabling him to achieve a better profit margin.
Throughout the conversation, Hormozi stresses the significance of proper timing when making offers to customers, focusing on their pain points instead of their needs. This insight is drawn from his method of analysis on existing business conditions and the customer journey.
Listeners learn various strategies to implement in their business models, including the importance of understanding the financial makeup of customer acquisition, and how to better structure offers to enhance profitability. Hormozi concludes with thoughts on how ongoing adaptability and fine-tuning offers and customer engagement is pivotal for sustainable business success.
He discusses his experience in the gym business, emphasizing how businesses typically struggle with low-ticket offers that do not recoup costs quickly enough. Hormozi transformed this by introducing high-value challenges with substantial upfront costs and follow-up upselling of supplements and memberships, enabling him to achieve a better profit margin.
Throughout the conversation, Hormozi stresses the significance of proper timing when making offers to customers, focusing on their pain points instead of their needs. This insight is drawn from his method of analysis on existing business conditions and the customer journey.
Listeners learn various strategies to implement in their business models, including the importance of understanding the financial makeup of customer acquisition, and how to better structure offers to enhance profitability. Hormozi concludes with thoughts on how ongoing adaptability and fine-tuning offers and customer engagement is pivotal for sustainable business success.
Key Takeaways
- Creating a structured sequence of offers can significantly improve revenue.
- Understanding and exceeding customer acquisition costs is crucial for financial sustainability.
- Selling to customers at their 'point of highest deprivation' leads to more effective upsells.
- High-value upfront offers can finance customer acquisition, allowing businesses to scale quickly.
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