How MILLIONAIRES become BILLIONAIRES…

Summary

• As an entrepreneur, I realized that the product is key; if you're not making enough money, it likely means your product isn't good enough.
• People not referring your product is a sign that you need to improve it, and that should make you think deeply about why.
• The goal is to build long-term customer relationships by providing value over time, adopting a compounding perspective, rather than focusing on quick money.
• Dan Kennedy said small entrepreneurs focus on getting customers to make sales, while big entrepreneurs focus on making sales to get customers; the latter builds an enduring business.
• A friend who's extremely wealthy taught me to invest in things that grow on their own over time, suggesting that a product should be good enough to sell itself without constant promotion.
• To improve your product, ask yourself: If the product were 10 times more expensive or one-tenth its cost, what would you have to do to make it worth the price or better than it currently is?
• Consider what needs to happen for a customer to become a promoter of your business based on their remarkable experience alone.
• Super wealthy people talk about their products, while the less successful talk primarily about promotion.
• There are six ways to get customers: paid media, earned media, contacts, manual outreach, affiliates, and word of mouth; only word of mouth is compounding and creates enduring value.
• Invest time in perfecting your product at the start, so it grows with time and effort becomes an asset rather than a liability.
• Making the front-end effort into a product pays dividends over time, while most skip this step to make quick sales.
• I've shared my insights in my book "100 Million Offers," which teaches how to create irresistible offers.

Video

How To Take Action

I would suggest focusing on making your product so valuable that customers can't help but talk about it. If your product isn't getting referrals, it's a sign to rethink its worth. Start by asking yourself if your product was way more expensive, what would have to change to still make it a killer deal? Take time to refine your offering until it's a no-brainer for your customers.

Think about the last time you raved about a product. Your aim is to create that same excitement for yours. It can be a simple shift in your approach or a complete overhaul for better value. This investment in your product quality is crucial. It's what super wealthy folks do – they ensure their product grows in value over time – so you should too.

Now, consider if your product was much cheaper. How could you still improve it? What one-time asset can you create that delivers ongoing value? These assets can be FAQs, how-to guides, or customer service standards.

And never underestimate the power of a remarkable customer experience. Imagine you could only sell one more product, then make the experience for that buyer so amazing that they'll bring in more customers on their own. Aim for that level of satisfaction for every customer.

Remember, word of mouth is the only method of customer acquisition that multiplies on its own. Referral business is like a snowball – it gets bigger and better as it rolls.

Perfection takes patience. Instead of rushing to make quick sales, take the time to develop your product. This front-end effort will pay off with enduring business growth. It's about setting up for the long game – that effort becomes an asset, not a liability.

To wrap it up, think of your product not just as something you sell, but as the foundation of sustainable business growth. Refine it, value it, and make the experience exceptional. Stick with this mindset, and you'll see the power of compounding value in action.

Quotes by Alex Hormozi

"Most small entrepreneurs try and get customers to make sales; bigger entrepreneurs try to make sales to get customers"

– Alex Hormozi

"If it's not going to grow on its own over time, it's not worth doing"

– Alex Hormozi

"If I had a business and I were only allowed to sell one more customer, the rest of the growth of my business had to come from that customer without me asking"

– Alex Hormozi

"Word of mouth is the only one that compounds"

– Alex Hormozi

"Everything that the ultra wealthy do is compounding; it grows with time where time becomes an asset instead of a liability"

– Alex Hormozi

Full Transcript

one of the biggest shifts that i had as an entrepreneur going from you know making a few hundred thousand dollars a year a million dollars a year to making you know just 10 or nine figures like we do now has been um a simple understanding that i'm trying to hit at a couple different ways and hopefully you'll be able to shift your perspective in terms of how you see product and delivery and so right now if you're not making the amount of money that you want to make it's because the product you have is not good enough and it's it's really hard to confront that fact but if you really do and sit here i can't tell you the amount of times i talk to entrepreneurs and they're like man if i just had more people if more people would just find out about my product then all my problems would be solved but the reality is that if you have any amount of customers then people already have found out about your product and for one reason or another they have chosen not to tell anyone else about it and you have to sit with that for a second you have to realize that like people have found out about your product and they're not referring people and you have to ask why why are these people not sending me business and so one of the one of the first times i heard a statement that i really liked about this was from dan kennedy and he said most small entrepreneurs try and get customers to make sales bigger entrepreneurs try to make sales to get customers and the difference is one person is all about trying to get to the money as fast as possible what do i need to say to get this person say yes what i need to say to get this person to buy right how do i get the money right the other way is how do i make some sort of exchange so that i can now create a long time relationship with this customer and continue to provide value over time one has a compounding view and perspective on time and value and the other is short-sighted and i can tell you the difference between the people who are millionaires that i have that i'm friends with and people who are billionaires that i am friends with this is probably one of the most fundamental differences and so i was talking to a friend of mine who's worth of rebellion and he was saying if it's not going to grow on its own over time it's not worth doing and i really sat with that for a second and it was like if if i if you put in a one-time effort like this is what this is how people who are the ultra wealthy think if you put one-time effort into something and it compounds over time then that is an enterprise or product that they want to continue to invest in on the flip side if you have to consistently show up and consistently promote and consistently get out there and sell and sell and do all this stuff then what ends up happening is that the product itself is not good enough right because people in and of themselves are not referring business and so let me let me give you three questions that really changed and hopefully will alter your perspective like they did mine around product and service and so the first is if i have an existing product or service and i were to make it 10 times more expensive so really think about the price so or you can say a hundred thousand dollars or a million dollars whatever it is right just a huge number and if that's how much i were charging for it what would i need to do what would the experience need to be what would the product need to deliver in order for it to be worth that much what happens is you start thinking in a very different type of mindset about how much value you have to create right and so that is the first question that i ask there's two more and the third one's my favorite and i'll get to in a second the second question i ask is if this product that i have cost one-tenth as much as it does right now but i had to make it better than it currently is what would i need to do what one-time assets would i need to create that would consistently provide value that i could do at scale that could i could do profitably right so first question if this were 10 times expensive or 100 000 or a million dollars is what i charge for my product what would it need to be what would the experience need to be and what value would i need to deliver in order for it to be worth that much the second question is if it were one-tenth the cost but i had to make it better than my current product or service what else would i create or do or make in order to facilitate that outcome and the third question which is probably my favorite which i think underpins the entire ideology that that i'm hitting on here is if i had a business and i were only allowed to sell one more customer and the rest of the growth of my business had to come from that customer without me asking as in that that customer's experience was so remarkable was so positive was so amazing that they they alone had to on their own volition tell other people about my service what would need to happen what would need to happen to create that experience and when thinking about all three of these product frames i like them because they kind of hit on different aspects of the product the first question which is a hundred thousand dollar million dollar question hits on value which is how do i create the most value in the product itself the second question hits on the profit of the product because if it's one tenth of cost and i have to make it better this means i don't have to do high margin one-time investment type things to make the entire product more valuable right so that hits on profit so first is the value of the product the second is the profit to me right as a business owner and then the third question hits on the experience which is what's the customer experience which is everything else that surrounds the product that we're selling or service that we're selling right what is the experience that has to occur in order for this customer to become a raving fan that it's so good that they remark about it they cannot help themselves but remark about it and what's interesting is that every super wealthy person that i know pretty much exclusively talks about product and usually the really small people that i know only talk about promotion and promotion should really only exist to get your product right and then once it is right then you can juice it and then let it go and take care of itself and the reason that it's so important at least in my opinion is that if you think about the six ways of getting customers right and if you don't know what those are it's paid media earned media so paid media's advertising right in promotions uh earned media is followings right if you have any kind of organic following the third is through your contact list so people on your phone and your email list et cetera you already own their contact information the fourth is through manual outbound so that's dms cold emails cold calls cold all of that stuff where you reach out to people the fifth is through affiliates so partners who can promote your stuff and the sixth which is the most powerful and the only one that compounds is word of mouth so think about that for a second every of the other five ways of acquiring customers is not compounding those are linearly scaled right it means if you double the amount of outbound people you have you double the amount of customers that you get if you double your ad spend you might be able to double the amount of customers you get sometimes it's less than that but you get the idea they skill relatively linearly right whereas word of mouth referrals which is the sixth way of getting customers is the only one that compounds it multiplies rather than is additive all right if you get two people to tell two people and those people tell two people then it continues to compound and that is what creates enterprise value that is what creates an enduring thing and that is what when you spend the extra time to make the product so good that people have to tell their friends about it then that's where you get the unending scale and also is where all the profit is right you don't have to worry about the turn as much because the product's so good you don't have to worry about the negative reviews because the product's so good you don't have to worry about customers badminton because instead they're telling their friends about how good you are and this has been one of the shifts that has been most helpful for me and honestly what i when i look back on my own trajectory how much i talk about promotion in the beginning of my career versus now i talk so much more about people and product the real nuts of this is that everything that the ultra wealthy do is compounding it grows with time where time becomes an asset instead of a liability and if everything you do you have to go out and get more business go out and get more business go out and get more business right it means that it requires effort every single day whereas if you put a lot of front-end effort which is the investment which is the patience right to make the thing that much better in the beginning then it will pay you in dividends over time and most people skip that step because they just want to make the first sale they're just trying to get a customer to make a sale rather than trying to make a sale to get a customer and so um anyways i hope you found this valuable um i cover this stuff uh in in my book which is basically free it's 99 cents it's the cheapest i could let amazon do it it's called 100 million offers if you want to grab it i'm donating the 35 cents that amazon gives you like it gives me um it's for you guys it's everything that i've learned about how to create offers that uh are so good people feel stupid saying no um i think it's the number one seller in advertising and direct marketing on amazon right now um love you all hope you got value from this if you did hit that subscribe button and i'll see you guys in the next video lots of love catch you soon bye