How to Print ENDLESS Money and Get Rich Forever

Summary

• I reached a net worth of over $100 million at age 32, and our portfolio at Acquisition.com generates $200 million a year.
• Most businesses fail to amass fortunes because they focus on one-time sales rather than on creating systems for recurring revenue.
• To build wealth, one has to harness the compounding power of time, making it an asset where past sales continue to generate revenue in the present and future.
• The goal is to create a product or service so essential that customers preemptively update their payment information to avoid discontinuation.
• Looking at businesses, I always consider if there's a potential for customers to engage in continual payment for the offered product or service.
• You want to be in the reorder business, not just the order business, which applies to both subscription-based models and one-time purchases that lead to repeat customers.
• Treat current customers as if they're your only source of future business through referrals, which will improve customer experience and product quality.
• Sales are not the end goal; getting customers is. Sales are merely a means to establish relationships that generate recurring revenue.
• Many businesses cannot scale because they focus on promotion and customer acquisition without improving their product, leading to unsustainable growth.
• After promoting to get the initial customer base, focus on the improvement loop: soliciting feedback, enhancing the product, and adding value.
• It's crucial to make your product or service indispensable and, in B2B models, consider controlling the money flow for leverage.
• Once the product is refined and valued, scale marketing efforts—outspending competitors becomes feasible due to higher customer lifetime value.
• Contrast this approach with enterprises that prioritize short-term gains through constant new launches without building sustainable value.
• Pricing should be substantially lower than the value the customers get, creating customer surplus and ensuring they perceive it as an incredible deal.
• Improve and iterate on the product for efficiency, cost-reduction, and value increase to maintain a brand reputation.
• Reflecting on my own experience with Gym Launch, I realized the billion-dollar potential missed out on by not focusing on customer retention from the beginning.

Video

How To Take Action

I would suggest starting small and focusing on creating a recurring revenue model for your business. This is about making what you sell a must-have, not just a one-time purchase. Make your product or service so good that your customers don't want to lose access to it, and they'll stick around, paying you month after month.

Here's a step-by-step plan to build that kind of business:

1. Offer Irresistible Value: Price your product much lower than the value customers receive. This makes them feel like they've got an amazing deal they can't pass up.

2. Focus on the Reorder Business: Whether it's a subscription or not, you want customers coming back. Offer something they will need again and again.

3. Improve Customer Experience: Treat your existing customers like gold. They're potentially your only source of new business through referrals.

4. Gather Feedback for Improvement: Consistently ask for customer feedback and enhance your product based on their suggestions. Make your product indispensable.

5. Iterate and Increase Efficiency: Continuously work on making your offering better while reducing costs. This will create a positive brand reputation.

6. Control the Flow of Money: In a B2B model, try to get control over the money exchange, which gives you a better position.

7. Scale Up Marketing: Once your product is excellent and customer retention is high, invest heavily in marketing. You'll likely outspend your competition due to a higher customer lifetime value.

Remember, this isn't about quick sales—it's about building relationships that continue to pay off. And it doesn’t happen overnight. It's about patience, persistence, and relentlessly pursuing value for your customers. They are your most significant asset, and their repeat business is your path to growth. Take care of them, and they'll take care of your business for years to come.

Quotes by Alex Hormozi

"The big problem that most people have when they are starting their business is that they are in the selling business not in the reorder business"

– Alex Hormozi

"For the wealthy, time becomes an asset because the longer you wait, the more you win"

– Alex Hormozi

"You want to be in the reorder, not the order business"

– Alex Hormozi

"If your phone gets changed, your phone carrier and your credit card goes out, what do you do? You call your phone card, you replace it because the value is there"

– Alex Hormozi

"You don't get customers to make sales, you make sales to get customers"

– Alex Hormozi

Full Transcript

if you understand the steps that I'm about to share with you in this video you will be able to step by step create a fortune if you don't know who I am I cross 100 million net worth when I was 32. we have a portfolio at acquisition.com that is 200 million dollars a year can be way too long to learn how fortunes are built if you imagine the amount of people that you have sold in your lifetime and whatever business you have whatever it is side hustles gigs anything and you were to instead add up all of them together and then they continued to pay you month over month over month at whatever price you sell stuff at how much bigger would your business be if it were mine a lot bigger my first big business was called gym launch gym launch to date has 5 000 brick and mortar gyms that have purchased the licensing from it if I had 5 000 of those gyms still paying right now that company would be worth over a billion dollars that company is probably worth now close to about 100 million so I've missed out on about 900 million dollars during my career just from that one company alone because it took me so long to learn what I'm about to share with you the big problem that most people have when they are starting their business is that they are in the selling business not in the reorder business they don't have recurring Revenue they have one-time sales when you see these merch drops and these things where people are just selling crap and they get the one-time purchase and no one buys again the reason they can't make money is because they have no compounding vehicle what that means is that if I sell somebody today I want to get credit for that person that I sold today in a year because what happens is if you don't have that then you're always selling for tomorrow you're always selling for the paycheck this month you're always selling to pay rent rather than benefiting from a sale you made 10 years ago and having that person still pay you today because the thing is that you need to harness time the people who understand wealth understand time if time is a liability against you it means you're thinking like a poor person for the wealthy time becomes an asset because the longer you wait the more you win if you imagine a business as a wall of glue and you're blowing people at it if you never even increase the amount of people you sell let's just say you sell one person a week in 10 years you'd have 500 customers every month who pay you and if you have any price point that is reasonable that is a lot of money that is a fortune and the reason people don't have that happen is because they don't get it and they're only thinking about the short sale for tomorrow the easiest question that I like to ask when we're analyzing one of the businesses that we're thinking about purchasing and is there a way that we can get someone to buy this and never stop paying for it is there a way that we can make this so good the moment their card changes or they get a new credit card they call us ahead of time because they don't want to stop receiving value if your phone gets changed your phone carrier and your credit card goes out what do you do you call your phone card you replace it because the value is there if your credit card goes out what do you call Netflix you're gonna make sure that your car goes through if your utilities go out because your car doesn't go through you [ __ ] pay it if your rent doesn't go through you make sure that it's paid on time because these are things you cannot live without the goal is to figure out a way to make our value so high that people don't want to stop paying you want to be in the real order not the order business there are recurring Revenue businesses and reoccurring Revenue so this applies whether you have a subscription business or you have a one-time purchase business the point is that people come back Facebook is a massive company they do not have a recurring Revenue model they have a reoccurring Revenue model meaning I go to the Facebook store today I buy some eyeballs and tomorrow I might go back again and buy more eyeballs I don't have a subscription but I reorder over and over and over again the question that I ask the portfolio company is that when we're trying to grow them early on and really get the product to be exceptional is if tomorrow you could not Market anything you could not get any new customers whatsoever and the only thing you had were the customers you have today and any new customer that you get could only come from referral and word of mouth of the people you have right now how differently would you treat them how different would their experience be and how much better would your product be if the only way you could get new customers was them sending your business your way when you start thinking like that you start thinking like the wealthy not like the poor who are always in a rush for the next sale the next paycheck because the reality is you don't get customers to make sales you make sales to get customers it's an important distinction we only transact in order to create the relationship so that we can have Revenue again and again and again you want that customer to exist like a node of Revenue in your business that pumps money your way month after month after month so the big issue is that the stuff that most people sell sucks they're constantly focused on promotion they're constantly trying to find the next Customer because they haven't confronted the real issue is that you're just not that good and that's okay but the problem is that you're not focusing on the hard work which is getting better there are three steps that you look at when you're actually trying to scale a business you want to go to zero to a million make a couple million bucks a year you can just promote and sell [ __ ] all day long and never build real well for me I want to build a fortune and the only way to build a fortune is to get people to never stop paying you if that is our goal we only need to learn how to promote as much as we just need people to start trying our product the point of making the first sales is to get customer members the point of those first customers is to give you feedback and you keep getting feedback and not even caring too much about how hard you're marketing because the goal is to get the product and service better and better and better and this is why most people can't scale because they start selling a little bit and say oh I should promote even more but the problem is they never fix the product they keep selling more and more [ __ ] and then what happens is if you sell 100 people this month you have to sell 100 people next month just to maintain and then the month after that if you up to 200 new sales a month then the next month you have to sell 200 just to maintain but if you have 10 customers a month and they never leave you in five years you have 600 customers a month that are paying you only with 10 new customers a month when you get customers who do not leave you you can afford any marketing you can afford to outspend everyone there's a company that we're about to make a huge investment in and right now their lifetime value per customer compared to their competition is 10x and their cost to acquire customer is the same as their competition who's gonna win in a bidding auction for who can buy the next customer on Facebook or YouTube or pay for the eyeballs between them and their competitors they'll win every time because when you get that right everything else is easy step one is you promote just to get people to become customers promote it so that you get the first seed which is consumption the second piece is that actual Improvement Loop what happens is when their business gets hard when they hit a plateau when people can't grow anymore they do one of two things they start marketing more which is crazy because it means that more people find out about the stuff that you sell that sucks or they create another product if people don't consume your product people don't consume you serve it it's not that they're numbnuts it means that you suck means you have created such a difficult experience for someone to interact with you made it so difficult for someone to onboard that they never even experience the benefit the amount of people that I hear especially in the in the Internet space who are like oh these people don't work hard they never follow through does Amazon complain about all the service tickets they get no because they fixed the price products they spent the time to keep solving problem after problem after problem until there were almost no problems left with the product taking full responsibility and saying you know what we can make this better and the way you do that is through surveying the customers to figure out what you can do better looking at their client experience looking at the results seeing if you can make it happen faster seeing if you can make it happen easier making sure that you've added so much value that there's no one else that they can compare your product to you keep doing the feedback loop on those customers until you get a product where people are referring business to you to add the cherry and sprinkle on top you make it harder to leave and if you're in a b to B situation you want to add in collateral or controlling the money flow if you work with stripe they probably process your money they control the money flow they don't worry about decline cards because they collect your money for you up front the person who controls the money has leverage and then once you crack that once you say I'm only going to sell so that I make sales to get customers I'm going to continue to improve and iterate the same product over and over and over again until the point point where I have so many people who are coming to me because of how good it is then I'll put gas on it and spend as much money as I can on the marketing because now I can outspend everyone in the same Marketplace I'm making 10 times 100 times more than my competitors because when people buy from me they don't want to stop but most people do in Reverse news they sell as many as they possibly can burn all the Goodwill they have and then come out with another product put lots of hype around it sell a bunch of them and then do it again and again but they cannot build a compounding vehicle of Enterprise Value because if every single launch if every single customer that they had sold for the last 10 years we're still paying them today they would have more money they know what to do with it's not about the price in an absolute term it's all relative to the value that someone receives so if someone's price is here and the value delivers here you can make this price whatever you want if this price is a million and they get 10 million in value they will pay you for it price is what you pay value is what you get what we want is a customer Surplus we want an insane deal we want a bargain that people do call ahead of time to make sure that they never stop getting billed the game is saying hey I've got a 500 000 house I'll sell it to you for 50 Grand and I learned how to build it for 10. even if you provide more value up front and it's less profitable that's okay because then through the iterations that you have of getting better you get more and more efficient and you can drive down your costs while also increasing the value and maintaining your brand and reputation this lesson took me seven years to really internalize because when I looked back at my own customer list and I saw 5 000 locations on there I was like I would have a billion dollar business if I had taken more time up front to figure out how to never lose people