Making Money is a Game (Here's the Cheat Code) | Ep 883

Huge Announcement 👉 My next book is here: $100M Money Models Register free & get big free stuff here: ⁠https://register.acq.com⁠ I’m releasing it live at a virtual book launch event in 6 weeks, on Sat Aug 16. What you need to know: A good money model gets you more customers, to spend more money, in less time, over and over again Businesses that have good money models beat businesses that don't - in every industry If you don’t have one, the business will fail on a long enough time horizon If you do, it gives you the one thing that keeps a business going: cash flow *What you’ll get for registering*→Access to 4 amazing free bonuses should you upgrade to VIP for the event (by just pre-ordering a copy of the book). The 4th bonus is absurd. *What you don’t know that’s going to happen at the live launch*→A lot. And you will like it. Expect fireworks. Register here for free ⁠https://register.acq.com⁠ See you there. PS - Every person who shows up live gets a secret project I’ve been working on for 2+ years. It's better than an NFT and less than a bitcoin. It is not a “free bonus” it is a paid product. But you will only get one - if you are there live. Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned and will learn on his path from $100M to $1B in net worth. Wanna scale your business? ⁠Click here.⁠ Follow Alex Hormozi’s Socials: ⁠LinkedIn ⁠ | ⁠Instagram⁠ | ⁠Facebook⁠ | ⁠YouTube ⁠ | ⁠Twitter⁠ | ⁠Acquisition Mentioned in this episode: Get access to the free $100M Scaling Roadmap at www.acquisition.com/roadmap

Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:00Alex Hormozi?

  What's going on everyone? Welcome to the first money model installment podcast. I'm going to be talking about some of the contents of the book, kind of a conceptual hierarchy. The stuff that's in the book that hopefully can make you the dollars. I put so much of my soul into this book and to this live launch event. Saturday, 9am Pacific, 12pm Eastern is when the launch event occurs. You can go to register.hc.com and let's get into the pod.

• 0:23Alex Hormozi?

  Business is hard, but you can make it easy, or if you have the right cheat codes. And that's what I'm going to talk about in this video. So it's something called a money model and they are responsible for the vast majority of my material success. And I'm finally revealing what they are in my new book, 100 million dollar money models. And I'm launching it live August 16th. So in this video, I'm going to show you number one, what is a money model? Number two, why it's important. Number three, how I'll get more customers to spend more money with you in less time over and over again. And number four, common questions that I'm going to get about the book that I'm almost positive that you might have too. You might be a little skeptical. That sounds like a pretty big promise. So let me tell you a little bit more about the book overall. So what is a money model? So money model is a series of offers deliberately structured, generate the most upfront cash. That's this guy.

• 1:06Alex Hormozi?

  Get the most leads together and get the highest lifetime value, which you generate by getting people to buy again and again and again. And we purposely also accelerate this cash flow so that we can get them to buy in less time. And by doing that, we can outspend our competition and future proof the business. Because the one thing that I can absolutely guarantee that will not change in the history of mankind is that the cost of advertising will only go one way, which is up. And so how is it that some businesses can be 100 plus years old and other businesses struggle in their first year, despite the ones that are brand new, starting in this digital age, whereas these ancient businesses are still able to outcompete? The difference is a money model. That's how you see companies like JP Morgan. That's how you see companies like Northwestern Mutual.

• 1:48Alex Hormozi?

  Some of these companies that are 100 plus years old, GE, that have existed and been able to continue to exist, not because they're hopping on some influencer trend or because they have the latest trending hashtag or they've got meme music in the background, but because they have a stronger money model. So money models are sequences that when combined are so profitable, they're responsible for the vast majority of my material success, like nothing else comes close. And to put this in context, I have not talked about the concepts in this book publicly. And I started writing this in 2021 and I have saved every single concept from this book just for now and for the live launch. So let me put this in context. Most businesses have it completely backwards, right? They spend money to get customers and then they hope to make it back over time. That's what makes business so hard. That's playing on hard mode, right?

• 2:32Alex Hormozi?

  Money models is flipping that. You make more money getting a customer than it costs you to get them within the first 30 days. That's the cheat code. So let me give you an example of what this looks like in action. So when I started my gym, you know, obviously things started slowly, but then I started running ads and things started improving. Now that worked for a minute until my ads became too expensive, right? The algorithm changed overnight, which happens over and over again throughout, you know, time. And all of a sudden, my cost of getting a customer went from like a hundred dollars to like $500. And I'm using these as placeholders, but just say they went from I could afford it to not afford it. You can do the math here. If I charge a $99 a month membership, which I did at the time, and I'm spending $500 to get them. I'm literally paying $400 out of pocket for the privilege of having a customer that I hope will someday make me money later.

• 3:16Alex Hormozi?

  Now, if that person stays for, call it 10 months, then I pay 500 to make a thousand. Kind of tough because I still have other costs that I have to make out of that 500, but like maybe tenable. But not realistically tenable because that means that I have to be negative for five months before I make my first dollar profit, which means I have to front money that I might not have, which is the situation that most business owners find it, find themselves in. And so option one is you either just burn through your savings and pray. Option two is you take on debt and then just give away, you know, your future essentially. Or number three is that you take on cash from investors. You raise money, then you sell, you know, sell your equity, which you may or may not want to do. Or you just eventually go broke and close the doors, right? So this is kind of what I was facing at this moment. I was flying home for the holidays and this is before I stopped flying home for the holidays.

• 4:00Alex Hormozi?

  And I was at the airport and a guy that I knew in college came up to me. He was like, oh, you know, you know how things going? I was like, oh, I started business. He's like, oh, well, I have two locations. I was like, so what's the business? And he was like, oh, I have a supplement store. And I was like, okay, how much you making out of the stores? And he said, I'm making 80 grand and 130 grand a month between, you know, in each one. And mind you, again, I didn't ask him for bank statements, but that's what he said. And I was like, holy shit, like 80 grand a month. And I was like, Shit, like if, if he can do that, just selling supplements, I was like, and he doesn't have members. I was like, I've got members at my gym. I'm sure I could get like at least a quarter of that if I tried. I then, you know, bought a bunch of supplements. I couldn't figure out how to get them to actually buy. But eventually I was able to figure out how to get them to buy.

• 4:43Alex Hormozi?

  Once I did, that took my person walking in the door. And then I was able to get them to buy a few hundred dollars in supplements in the first forty eight hours. And then after that point, all of a sudden I could afford to run ads again. And so that very small change of just saying, oh, I'm just gonna sell them supplements after they come to my gym. That change fundamentally changed the economics of my business. It changed my money model. And as a result, I was able to now spend more than my competitors who were at the, at that time only spending enough to just get enough leads. They burned through their marketing budget and then they had to wait to the next month to reload up on customers. And this is what allowed me to continue to expand and expand until the point that I would open up new locations over and over again,

• 5:25Alex Hormozi?

  because it made me money to open locations, which makes absolutely no sense. But if you have a money model, if you have a way of getting customers to pay you more than it costs to get them upfront, then figuratively you unlock your ability to get more customers. Now, you're going to have other constraints in the business. I had four walls. I had to get trainers. I had other operational issues. But getting customers and more succinctly, the cash required to get more customers no longer was a constraint, because if every customer comes preloaded within them, the cost of getting them, the cost of delivering for them, and the cost of getting the next customer, plus the cost of delivering for the next customer, when you have all four of those preloaded in one, in gross profit, you can spend as much as you want.

• 6:09Alex Hormozi?

  The next actual question is like, well, so how does this actually work mechanically to get customers? In the book, after I looked at all of the different businesses that I've had over my career, I realized that I could basically bucket deliberate sequence of offers into four buckets that kind of meet four different objectives. And when you combine all four, you maximize the likelihood that you generate the most cash flow from most customers in the shortest period of time. So number one is you have. Attraction offers. So these are offers that maximize the likelihood of conversion. So think about getting the most leads to buy something. And these ones tend to often have what I would consider upfront cash components. So things that pool cash flow forward. The next is upsells, which is, okay, now that we've maximized the number of customers that are walking the door, how can we maximize the gross profit per customer? So this is the getting them to spend more money part.

• 6:54Alex Hormozi?

  After that, we have the downsell component. We have customers who come in and aren't willing to pay for the most expensive thing, but they may be willing to buy something. And so by doing that, we turn no's into yeses. Now, the key part is that downsells are very risky if you don't know how to do them properly. If you do them the wrong way, what ends up happening is you take all your customers that were otherwise going to pay up for a more expensive thing, and then they just buy a cheaper thing. That's bad. So we want to present the offer in such a way that we get all the people who are going to buy the first thing that was the most expensive, and then also capture additional sales from customers who otherwise would have said no. And I'll walk through that in a second in terms of more details. The fourth element is continuity, right? Because if you just got a bunch of cash upfront from people and you upsold and downsold, well, then what do you have after that? Well, you have a one-time transaction.

• 7:39Alex Hormozi?

  We don't get customers to make sales. We make sales to get customers. And the point there is we create a relationship with the customer that increases the likelihood they continue to purchase from us again and again. And so there are offer structures that each of these objective points that increase the likelihood that that objective occurs. We want to have an offer that gets people in the door. We want an offer that gets them to spend more money. We want an offer that captures the other part of people who weren't originally going to say yes. And then we want them to have something that gets them to buy over and over again. If we have those things, we have a model that can outspend our competition, or at least in the most basic way, outspend the cost of getting customers. If we think about, like, what is required for a business to exist? You have to have cash. That's literally it. Like, you could have nothing else, but as long as you can pay your bills,

• 8:21Alex Hormozi?

  as long as you can pay payroll, as long as you can pay the incorporation fee every year to maintain a business, you are still in business. Your ego might be bruised, you might have lower revenue, you might not be hitting the goals you want, but you are still in business. And so if you have a money model that increases the cash flow in the business and pools it forward, then by doing that, you have a way that you can stay alive. And what I have found from all the people that I've known in my life, and I would say myself included, is that business is an endurance game. It's a marathon. It's about staying alive and outlasting. And the way that you outlast is you continue to have ways to generate cash flow for the business. So I'm going to walk you through the model that broke the gym industry. So when I got into the gym game, what people ran was something called an LBO, which is not a leveraged buyout, but they called it that because it was a low barrier offer. All right.

• 9:06Alex Hormozi?

  And so this is what those gyms did at the time. So they would run a $21, 21 day promotion. Right, so that was their front end offer. That was their attraction offer. Now, is that a good attraction offer? Not by my standards, but it was an attraction offer. For me, this would probably be a down sell. But for them, this is what they were running on the front end. And what's really interesting about all the offer structures that I mentioned in the Money Models book, which you'll soon learn about, is that all of those offers can be used anywhere. But I tend to bucket them in this way because I think they better satisfy this specific objective. Back to the story, they were spending, you know, they were running $21, 21 day promotions. And this is back when people could, in a local market, convert maybe 25 or even 30% of leads. Lead quality has gone down on those platforms. But let's just walk through it with like really bull case scenario, the best case scenario.

• 9:52Alex Hormozi?

  So they're closing one out of four leads. So let's say they get 100 leads, which would cost them, let's say that their, their lead cost was 20 bucks. All right, so it's going to cost them $2,000 to get 100 leads. Okay, fine. Now, they're going to convert 25% of these leads and their price point is going to be $21, which means that they're going to make $525. Well, that's in the first 21 days. Now, of these 25, what percentage of these people are going to convert to continuity? This guy, the membership. Well, the industry average for these types of trials is 35%. So let's just call it a third and say eight of those people are going to convert. And let's say that their price point is $99. All right, so now they have another $800 here.

• 10:37Alex Hormozi?

  Okay, fine. Now, the average stay of a customer that's at $99 a month is going to be usually, and this is kind of sad, somewhere they have like five-ish months for the industry average. It's much lower than you think it is. And so that means that they've got another $4,000 that's going to come in off of these eight people. So all we have to do is add this up. So they got 525, they got 800 at the conversion, and then they got five more months. I'm actually technically giving them six, but let's just, let's give it to them, right? And so that means they were at 4,800 plus that, we're at 53. 25. Now, if they spent $2,000 to make that, it's okay. You know, they made some money, but they still have rent, they have admin, they have trainers, they have other stuff that they have to get factored into this. I'm not even taking into account gross profit here,

• 11:21Alex Hormozi?

  which is a huge factor. All right, but let's just leave it at these numbers. That's okay. You can kind of compete, you'll live, but you're probably not going to make much. And so this is what I did in the gym industry, and this is what changed the game. I'll put this little number here. So we had 100 leads, right? Well, we got, we made 5325, which means the maximum amount of money that we could spend, right, from these would be $53 per lead. Now, you couldn't actually realistically spend that money because you have every other cost in the business you'd have to spend and you'd be losing money. Let's just use that as a hypothetical. And again, I'm just trying to bolster this scenario. Real quick, guys, I have a special, special gift for you for being loyal listeners of the podcast. Leila and I spent probably an entire quarter putting together our scaling roadmap.

• 12:05Alex Hormozi?

  It's breaking scaling into 10 stages and across all eight functions of the business. So you've got marketing, you've got sales, you've got product, you've got customer success, you've got IT, you've got recruiting, HR, you've got finance. And we show the problems that emerge at every level of scale and how to graduate to the next level. It's all free and you can get it personalized to you. So it's about 30-ish pages for each of the stages. Once you enter the questions, it will tell you exactly where you're at and what you need to do to grow. It's about 14 hours of stuff, but it's narrowed down so that you only have to watch the part that's relevant to you, which will probably be about 90 minutes. And so if that's at all interesting, you can go to acquisition.com/roadmap. R-O-A-D map, roadmap.

• 12:48Alex Hormozi?

  Now, what we did was this. Someone would come in and we ran a free six-week challenge or a six-week challenge, 42-day detox, 42-day transformation, tons of different wrappers, but basically a six-week thing. All right, and so let's say we got our same 100 leads. Now, our 100 leads, especially if we had a free offer on the front end, would be usually about half the cost. And so that means that, let's say, we were spending, you know, they spent 20 bucks a lead, we'd spend 10. Now, I'm gonna, again, I'm gonna make this the worst-case scenario for this one. So let's say we spent 20. We spent the same amount for these leads, even though we wouldn't. Let's just say we did. So we spent the same $2,000 to get these leads. Great. All right. These are our leads. Let's say we convert even less of these leads. All right, let's say that we're going to convert 15% of these leads. So we're going to get 15 sales.

• 13:32Alex Hormozi?

  Important point, I had the perspective that when someone signs up for something like a gym, their highest point of motivation is the moment they walk in the door. That is when they're the most deprived of the outcome. They're so in pain that they booked an appointment, they clicked the lead, they opted in, they responded to a phone call. They got in their car, they drove all the way there. They're ready to change. That is the point that I'm not trying to sell someone something for 20 bucks. I'm trying to sell them something for $500, right? The point of very pain. Now, maybe it's $5,000. But at the, at this point in my career, you know, $5,000 wasn't in my lexicon. So 500 was, was high ticket. All right. I'd have 15 people that would come in and I'd sell them for five or 600 bucks. All right. So let's just use 500 as simple math. So we would make $7,500. Now, mind you, this is upfront, upfront. So that means that if I'm spending this money to get these customers in,

• 14:17Alex Hormozi?

  I'm already positive. I still have my membership. I still have other things that I can sell on top of that. But remember here, we had to wait a month plus to get to this 5325. Here, I'm getting it day one. But after that, I realized, wait a second. All these 15 people, I'll bet you I could sell 12 of them on supplements. And so the average person there would spend about 200 bucks. I'd make $2,400. Now, gross profit on that, you actually have physical costs there. But I ran close to 80% gross profit on the products that I sold. That was roughly $2,000 in gross profit that I'd make from selling these 12 people. All right. But you'd be like, okay, well then that's already, you know, 9,500 compared to the 53.

• 15:00Alex Hormozi?

  And this is all within the first 48 hours because I'd sell these people within the first two days or so. And you might be thinking, wait a second. I thought they just bought a gym membership. Why would you sell them supplements afterwards? Because people have different wallets. They have different needs that can get satisfied. And so just because you spent all your money on your membership, doesn't mean you spent all of your supplement money. And once you spend all your supplement money, what else are you going to do? Well, you're going to have gym clothes, which is a different wallet. And then once you buy your gym clothes, what else are you going to buy? You probably have to get food. That's going to be your new fitness food, right? All of these things have these different buckets that customers are willing to spend money on. And the, and the business that's able to capture the, the highest percentage of that money in the shortest period of time is the one's going to be able to outcompete and outspend. Now let's continue. So for me, remember this is a six week thing that I sold them on.

• 15:42Alex Hormozi?

  But does that mean that I wait till the end of the six weeks to sell them something else after the supplements? Of course not. What would I do? Well, I would say, hey, we can take your $500 here. And if you want, we can credit it forward for the year. How's that sound? If you just choose to stay with us afterwards. Now, in the first scenario, I've got no leverage, right? I can't say like, hey, you gave me $21, why don't you put that $21 towards your $99? It's like, who cares, right? But if I said, hey, I'm going to take your $500 and put it towards a year, that's real money. And so all of a sudden, I could get somewhere in the neighborhood of around 70% of people. So double the percentage here to take the next offer. And so I take my 15 originally, and I've got about 10 who stay on the backend.

• 16:25Alex Hormozi?

  Now, at this point, because I learned a little bit more about pricing, instead of charging 99, I'd be charging 250 a month. And then that would knock me down to about $200 per month for my large group training studio. Now that means that I've got $200 per month, which means $2,000 per month in recurring. Now let's assume that I had the same stick as them. Let's just assume that. Well, now I've got $10,000 here, right? In total, because it's times five, five months. So I got 10 grand here. But wait a second, do you think there's anything else we could do? Great idea. I said I had six weeks, right? And I got a percentage of these people to say, hey, I'm going to continue on and credit my money. Fine, what happens at week six here? Well, I would still weigh them out from their promotion that I had. But what else would I do? I'd say, hey, you're already committed for the year.

• 17:08Alex Hormozi?

  If you want, we can save you another 10% if you just prepaid a day. I saved you 500 on the first one. I'm going to save you another 200 or 400 if you take 10 or 20% off. Like, why not? And I would get somewhere in the neighborhood of 20 to 30% ish. Not a promise, not a guarantee that if you do this, this is what's going to happen. I'm just giving you a rough estimate, right? And so that means that I'm going to get two or three people, which kind of factor. I'll say in my experience, it's like 20 ish percent of customers, so one out of five will buy something that's significantly more expensive. So customers tend to be Eighty twenty, right? And so here I would get somebody to then spend, call it $2,000. And so I'd make, let's just call this $5,000. We can take the average here. $5,000 extra. Now let's add up the difference here.

• 17:51Alex Hormozi?

  My competitors could spend up to $50 a lead. That was very important, right? Fifty-three bucks a lead is what they were able to spend. But if we're adding ours up, I'm going to get 7,500, 2,000, 9,500, 10,000, 19,500 plus five. So I've got 24,500 that I'm making from the same 100 leads, remember? Which means that my ability to spend is that I can spend $245 per lead at max here. Obviously I have other costs, etc. But I just want to make the math example simple. Compared to my competitor who could only spend $53 per lead. Five X, not like 20% more or 50% more, but five times more.

• 18:33Alex Hormozi?

  And all of this money, and this is where it got weird. All of this money minus this 5K was in the first 30 days. Which means that if I spent money on ads and I put it on a credit card and I was able to make 19,500 after I originally just put $2,000 in, I'm getting $8, $9 back for every dollar I put in. And I still have the lead. I still have the customers. I can still sell them Lean by Halloween and Slim for Santa, and I can still sell them semi-private training. I can still sell them other stuff, more supplements, right? Throughout the rest of the relationship with the customer. And when you do this, now let's think about how, why this is important, why I bring up money models. The guys that I was competing against functionally sold the same product as me.

• 19:17Alex Hormozi?

  Maybe my trainers are better, maybe my location is a little bit better. But fundamentally, they had trainers, they had access to the same talent pool I did locally. They had to pay their trainers probably roughly what I was paying my trainers. And so how was it that I could out-compete them so clearly? I had a better money model. And so, right now, there's probably a version of your business that can generate five, 10, 15 times more than somebody who's in identical spaces you. And I want to push on this because a lot of business owners have very limiting beliefs in saying like, I don't think I could charge that much. I can't, I couldn't, I couldn't ask someone to buy supplements two days after they bought a membership. Why not? They're gonna buy them either way. Might as well buy them from you. But they didn't finish the six weeks or they didn't finish the trial. Why would I ask them to buy something else? Because they've had a good experience up to this point. And you make an offer so good, they can't refuse.

• 20:01Alex Hormozi?

  Key point here is it's a deliberate sequence of offers that's structured to generate as much cash upfront as humanly possible and maximize the likelihood of conversion into continuity or reoccurring. So like, let's walk through some of the examples here. Their money model, call it a free trial almost, but a low-ticket front-end offer that was basically a paid trial functionally. And then they just had a continuity offer on the backend, which was $99 a month, but there was no mechanic, there was no lubricant there. It's just, hey, you bought this thing, you're the end of your trial. Do you want to buy the next thing? What's crazy is that this is how a lot of businesses run. But the thing is, is that wouldn't it be more compelling if we said, hey, you want to take the $21 and put it towards something like that would be more compelling than just saying buy the next day?

• 20:45Alex Hormozi?

  So now, let me show you the pieces that are involved in this one. So, we had a win your money back as offer one, which is an attraction offer, which then rolled into a classic upsell, which is the supplement offer. You can't buy X without Y, which then rolled into a rollover upsell, which is how I took the cash that they had here and put it towards a membership. The third, which is an upsell offer combined with a continuity offer. And then, I did a buy X to get Y, which was the paid and full discount. Buy 10 months, get two months free as the offer at the end. Now, are all of these continuity offers? Well, two of these are kind of, but the mechanics behind what make the offer compelling is

• 21:29Alex Hormozi?

  the components of the money model. That lubrication, that reason why, that compelling thing that gets someone to say yes more likely than no, that is what can transform a business. And these Are the tricks of the trade that people rarely share publicly. And it's because it's the engine, it's the machine. And so I've spent the last thirteen, fourteen years documenting all the little things, the little nuances, the how I say this and then that gets them to say this. And if I present the price like this first and then I say this, then I get way more people to take it. Those mechanics are what create a money model. And so where does money models fit within kind of the universe of the hundred million dollar series? Right?

• 22:10Alex Hormozi?

  So the first book, one hundred million dollar offers teaches how to create an offer so good people feel stupid saying no. Said differently, if you were selling a straight membership, you're going to lose compared to somebody who's selling a transformation. If you're selling, hey, just come get workouts versus, hey, we're going to do a grocery store tour with you once a week to make sure that you know what to buy. And on top of that, you're going to have an accountability coach who's going to check in with you every morning to make sure that you weighed in and that you're, you know, attending your workout later. And on top of that, you're going to have a group of people who are just like you, who are going alongside. And we also have prizes for people who are winning. On top of that, we've got meals that we can, you can order through us if you want, that are already, you know, pre-approved. We also have these supplements that can help you feel better and make this feel less bad as you're doing it. Right?

• 22:54Alex Hormozi?

  You go through all the different potential issues that someone might have. And we say, how do we flip all of the objections that someone has and make it into an offer? If you don't have an offer, there's nothing you can sell. Right? Right? You will sell a commodity. Memberships between two bootcamps is the same thing. But if we have a transformation, now all of a sudden we have more stuff that's going to be more compelling and more differentiated, which will then allow us to command a higher price. And so I had to start there because if you don't have an offer to sell, there's nothing I can do. The next is leads. Right? So once you have the offer, you're like, okay, I got the thing I'm going to sell. I've got my transformation, whatever your transformation is, right? How am I going to let people know about it? And so leads shows you how to advertise, how to get leads, how to get customers. Right? Which is either you're going to have some sort of content that you're making, you're posting stuff.

• 23:38Alex Hormozi?

  You're going to have some sort of outreach that you do, which is you DM, you cold call, you're emailing. You have some sort of advertisements that are paid that you run. And you can do those to get customers to send you referrals. You can do those to get affiliates who also send you customers as well. Right. And so those are the different sources that you're going to get. I can go to more details, but that is the gist of $100 million leads. And so now you're like, I got a thing and I got a way to let people know about it. Well, then the money model comes in is to connect all the dots. It runs the water through the funnel, through the pipeline. And the idea is we put the advertising in on this side and money comes out the other side. And so it teaches you how to get more customers to pay more money faster over and over again

• 24:19Alex Hormozi?

  with all four types of offer structures that when you design a good money model, you're going to use multiple. I told you, I just, I gave you four that I was using in this money model. And by combining those Lego blocks and you're going to, for your own business, mix and match, there's five attraction offers that I have in the book. It's like, okay, I'm going to use attraction offer one here. I'm going to use upsell offer two here. I'm going to use attraction offer four here. And I'm going to use down sell offer two and three here. And then I'm going to use continuity offer four on the back. When you put that together, that is how you assemble the business. That is how you outspend everyone. That is how when Facebook ads become expensive, you don't care. And that's why that guy goes out of business and you stay in business and you keep growing.

• 25:01Alex Hormozi?

  Believe it or not, the offers, leads and money models books were actually all one book that I first started writing in 2021. And it was called Lead Generation and Monetization Structures. Very, very sexy title. And so I wrote it as a textbook because I, I thought I was an academic. I thought I was, you know, very fancy. And so when I wrote it though, the thing is, is I had a couple of meaty sections in there. I was like, man, this is like really, really dense. I feel like I have to unpack this. And so believe it or not, the leads book actually was just one very long chapter in that book. And I was like, okay, I need to, I need to talk more about this. Like no one's going to be able to just take this chapter and then immediately use it. So I had to write the leads book, but then I was writing the leads book. I was like, well, shoot, none of these ads are going to work. None of this posting content is going to work unless they have an offer.

• 25:46Alex Hormozi?

  So then I had to peel out the offer section, which was really the very beginning of the book, just saying, hey, you gotta have something compelling to sell that people don't price compare you on. Here's the how you make an offer. Here's you put it together. Here's the value equation. These all together are actually one system of acquisition. Now, to be clear, you could take just the leads book and advertise your stuff and you'll make more. If more people find out about whatever it is you have, even if you have just the most basic membership in the world, more people find out about it, you'll have more customers, right? If you only had a better offer, if you go from a membership to a six week challenge, you're going to have a more compelling offer. More people will buy. Sometimes systems have multiple dependent components. So like for a car, if I don't have wheels, the car won't go. But if I have wheels and I don't have an engine, the car still won't go.

• 26:29Alex Hormozi?

  On the other hand, if I have a pipeline of water that's going through a pipe, if I make one part thicker or thinner, I can still increase the throughput of the pipe overall. And so in this type of setup, all of these are additive, they're multiplicative. All of these things just make businesses better. Think of them as business enhancers, if you will. Sometimes you're only one crazy offer away, you're only one big advertising campaign away, or you need the cash flow to support both of those things through having a superior money model. And so to be clear, you don't need to read offers or leads in order to use money models. But if you do, it'll be even better. But you don't need to, just like if you don't read money models, you can just advertise more and your business will grow. The follow up question might be like, what if I have a small business or a big business? Like how it worked for me?

• 27:13Alex Hormozi?

  Well, it doesn't matter what industry or size you're in. A money model is core to every business. The question is just how good yours is and how many different components you've implemented so that you can maximize each of those objectives. This is the most how to win at business manual that I've ever made. And I truly believe that it will change people's businesses and lives more than anything I've ever released. And to be clear, Jim Launch as a business was functionally structured on just having a superior money model in two ways. I showed a superior money model for gyms to run, which allowed them to advertise in more ways, in more places, more profitably, get better talent so they could out compete. People in the area. But I also had a superior money model at the gym launch level.

• 27:56Alex Hormozi?

  My business that showed how this money model worked. Because other people were in that space trying to help gym owners out. Whether they were marketing agencies or they were they sold courses or whatever. They sold to the same avatar, right? Equipment companies, all of these companies sold to the exact same avatar. If we think about it like this, you have a person that your business sells to. And this person is going to have, let's say it's a gym owner. He's going to have equipment dealers who are trying to get his eyeballs. You're going to have supplement sellers who are going to try and get them to wholesale. You're going to have marketing agencies who are going to say, hey, you know, buy our services. You're going to have construction companies, which are going to say, hey, do remodels for your gym. You're going to have apparel companies that are trying to say, hey, use our apparel line to do it at your gym.

• 28:38Alex Hormozi?

  And so all of these people have to buy ads on the same person. All of them are buying advertising space for these eyeballs. In an auction of attention, the person who can outspend, let's say this one's the biggest, can have an ethical and legal monopoly of the attention of their prospect or their ideal avatar, simply because of the economics of their business. They make more money on this person's eyeballs than all of these people. And so for all of the blank spaces on this person's newsfeed, this guy can put his barbell ads over and over again. And so what happens is that you can actually outspend and increase the CPMs in your marketplace, such that no one else can compete.

• 29:20Alex Hormozi?

  Hopefully you see the difference between a generic gym that sells a membership and this gym model. And the biggest one is how the money works, how the money flows, how quickly and to whom. And when you have that, you can be this business that outspends the remainder of other businesses that compete for the same attention. And by doing that, you can win. This is an overview of the conceptual hierarchy of the ideas that are contained within the Money Models book. These are the nitty gritty tactics that only the pros know and that most people keep close to their chest. I always know that a book is good when I feel very insecure before I release it because I'm like, Oh my God, these are all my secrets. What am I gonna do? But I've learned enough times that the more money I make out of people,

• 30:05Alex Hormozi?

  the more money I end up making. If you're like, man, this sounds really interesting, or this sounds really cool, then I'm having the launch event of the season. I'm spending millions of dollars on the launch event just because I want to blow you guys away. You can register for the live launch event. It's August 16th. You can register for it now. It's register.acq.com. What's beautiful about this is that the whole event's free. I've got five mystery speakers that are coming out. They're headliners and they've never shared the same stage before. And many of them don't speak publicly much at all. It's gonna be awesome. But beyond that, I'm gonna be showing you the concepts in this book in real time. And I'm gonna be pulling them out and you're like, you probably even heard some of these things that I said today. And you're like, oh, I can use something like that. Well, imagine an entire book of those. And you'll be able to preorder a book before the live launch event because it actually helped my warehouse team out a lot.

• 30:49Alex Hormozi?

  And so to incentivize you, I've got four amazing bonuses that you can find out about when you go to the register.acq.com page. And I have a surprise gift that I have been saving for a while now that I've been working on for more than one year, multiple years in anticipation of this event that I will be releasing live at the launch. And every single person who shows up live will get one. And I can't say what it is yet, but I can tell you that it's better than an NFT and it's less than a Bitcoin. And every single person will get one, but you gotta be there live. All right, so it's register.acq.com. Over the next four weeks, I'm gonna be revealing one model per week. And so I'll see you next week for the next money model.