I don’t know why anyone would spend 4 years studying at university learning from people who don’t have experience in this, when they could watch every video Alex and Leila have put out. The teaching is so simple to understand and thorough! You guys are so appreciated!!
@@TheSkyFallTronic well of course no one automatically becomes rich. But if you'd study their content (vids, books etc) for a while and applied them you'd be way better off. I have been consuming stuff like this for a while and Alex his stuff is simply way better, even if I was already familiar with some of the concepts. The alternative is is going to school for 4 years while not growing anything and going massively into debt you can't get out from under. Good luck paying back that 60k+ loan
@@MozzarellaBasket before i watched alex entrepenuership seemed like rocket science but now it seems easy or at least so much easier than before. Because before this i didnt put much value on it and now i put so much value on it
this has to be one of the greatest videos i’ve ever seen on in depth finance of running a business. just received both of your books and they’re next on my list. great stuff alex
Hey! Business 101… but understandable and from someone who actually has done it, yay! Love the fact that he has taken comedy and performance more seriously to get us to stick around.
This is by far the most technical and most informative value you've given to date in all of your videos man. Good for you. Keep this sort of thing going for the average person and you're going to change a ton of lives.
OMG, loved so much this video! After an MBA in international business and nearly 3 years with my project (currently at the phase of product building) I had no idea on how to set a price for a product. Now, after understanding and putting on an Excel LTGP : CAC ratio, I can finally look at the price I would need to set my product in order to get x in profit in a given period. And since my product will probably be 1 unit with no recurrence (due to its service educational nature) I really needed to understand these variables in order to set a good price. Thank you so much!!!
please do a video about risk. I am currently working on analyzing the market, the customer and the competition. Next step for me is to identify the problems, goals etc.. so i can create my offer. But in the past few weeks/months i was always confronted with the term risk management. Of course i can just learn it by myself, but your explanation videos are always great. They help me out a lot during my learning phase.
@@m3g4ninja just watch it again and again till you can use it anywhere like formula in maths. The only different that these are interesting and clear useage
Alex, THIS is the kind of content that slays. No fluff, down to business, knowledge on blast like an open fire hydrant in NY in July. Seriously, a discipline man could consume ten hours of this content in this format and go build an empire. Thank you, brother. These kinds of videos you do are truly life changing. I wish I knew this decades ago.
I don't understand the point (6) and (7) very well. Are there any videos that go deeper in these two points? Thanks for all the value, I appreciate it!
Great video! How would you factor in a yearly increase (or decrease) in new customers? Let's say you sell to 10% more people every year, how would that affect your hypothetical max?
Amazing video. Exactly what I needed to learn today. When you look at a business like this it is definetly a game I like to play. It's almost as curtain as 2+2=4
Anyone wondering when checking LTGP : CAC ratio in a service based business why are we including salaries in CAC when we already included salaries in LTGP since in a service based company service is the goods being sold and employees are the one producing the product In a service-based business, you include salaries in both LTGP (for employees delivering the service) and CAC (for employees acquiring customers) because these represent two different activities-producing the service and acquiring the customer. This ensures an accurate calculation of profitability (LTGP) and acquisition efficiency (CAC). Without separating these costs, it would be hard to determine how much is being spent on acquiring versus servicing customers, which is crucial for evaluating the health of the business. I had this doubt hope this helps anyone with the same doubt
@pierreroos3233 It confused me as well because Alex haven't clarified is it marketing team. It's a CAC so how much it takes to acquire a customer which means only people that are working on production of marketing and sales go into this cost. It could be salaries of designers by those that create marketing materials.
Alex, I don't know if you reply to comments here but here is what I was wondering. May seem like a dumb question, but is it possible to get paying customers to my business through my you tube channel? I'm not interested in vanity or large number of subscribers, etc but not opposed to it either. Thanks for all the teachings & happy new year.
I’m being honest, I still struggle to fully understand my numbers. I run a multi Six Figure membership that is build purely on content marketing (I don’t run ads). How would I tweak this equation find my ratios?
Any explanation for why Alex values a greater ratio of LTGP: CAC? Consider two businesses, their LTV is the same at $7 per customer. Business 1 has a COS of $2 & CAC of $1, giving LTGP/CAC of 5. Business 2 has a COS of $1 & CAC of $2, giving LTGP/CAC of 3. Both businesses profit is the same at $4, however LTGP: CAC is vastly different, why should this matter?
Where would you track things like LTGP: CAC / Sales velocity, etc? I understand all the concepts but I’m not sure the best approach to track and monitor.
Not sure what others are doing, but after watching this video, I use a Google Sheet to track everything on a monthly basis and then connect that to a LookerStudio report I made to visualize each metric by month, quarter, or year. These are the 8 metrics I enter into the sheet each month and the rest are formulas that calculate everything else: Total Monthly Revenue, Active Client Count (beginning of month), Total Cancelled Clients, New Clients, Fulfillment Employee Headcount, COGS, Sales Rep Headcount, and Total Acquisition Cost. I'm sure there are other great ways to track, but this is what has been working for me and it's free if you already use Google tools. Hope that's helpful!
Absolutely. I've been exploring too. It seems like every strategy has its moment of glory, but finding one that consistently works is like chasing a unicorn.
I’ve done so much mental M to Alex that I am noticing new content is updated old content better visuals stories more dialed in. Does this mean I graduated?
Hi Alex, I’d like to start by saying thank you for all of the information you have made available for free. I have watched so many of your videos it is all a blur. I was looking for one in particular where you spoke about the importance of aligned incentives You gave the example of a realtor selling a house above asking. If you think it would be valuable, could you do a video of how a business, employee, and customer can have aligned incentives.
This is a masterclass in business in a free TH-cam video that universities charged $100k to learn from a professor who has never started a business.
Yes👍
00:00 - LTGP:CAC
00:53 - LTGP (Life Time Gross Profit)
06:42 - CAC (Customer Acquisition Cost)
09:00 - ROIC (Return On Invested Captial)
13:10 - Payback
16:05 - Sales Velocity x LTGP
18:45 - Sales Velocity / Churn
👽
your a hero
S@@ididathink5295
thanks
My man!
This type of content is unique on TH-cam. Incredibly valuable, it doesn’t get more practical than this. Thanks Alex!
Agreed I’m trying to get my videos this visually pleasing lol soon soon
@@DadThinkBiggeryour videos are good, just work on your audio.
@@xoxoLando thank you for the tip !
That is correct.
Lmao ok you plant
I don’t know why anyone would spend 4 years studying at university learning from people who don’t have experience in this, when they could watch every video Alex and Leila have put out. The teaching is so simple to understand and thorough! You guys are so appreciated!!
Is the goal to become a business owner/entrepreneur or work for one?
You don't need a degree to start a business, but the education is super helpful.
@TheSkyFallTronic most people will not put the work that's required in to be successful in business
@@TheSkyFallTronic well of course no one automatically becomes rich. But if you'd study their content (vids, books etc) for a while and applied them you'd be way better off. I have been consuming stuff like this for a while and Alex his stuff is simply way better, even if I was already familiar with some of the concepts.
The alternative is is going to school for 4 years while not growing anything and going massively into debt you can't get out from under. Good luck paying back that 60k+ loan
@@MozzarellaBasket before i watched alex entrepenuership seemed like rocket science but now it seems easy or at least so much easier than before. Because before this i didnt put much value on it and now i put so much value on it
Alex still recommends studying to to upskill and make more money to get a higher hourly rate rate.
this has to be one of the greatest videos i’ve ever seen on in depth finance of running a business. just received both of your books and they’re next on my list. great stuff alex
Yes, 👍
This type of content is 10x better than the MBA I have 🔥🔥🔥
Loved how product based businesses got some love in this video
Hey! Business 101… but understandable and from someone who actually has done it, yay!
Love the fact that he has taken comedy and performance more seriously to get us to stick around.
This is by far the most technical and most informative value you've given to date in all of your videos man. Good for you. Keep this sort of thing going for the average person and you're going to change a ton of lives.
Yes👍
That good @11:33 was very GOOD!
Top notch content both in actual value delivered and in editing. Thank y'all!
08:15 - crap, you just blew up what i thought about my business on real CAC calculation. I wasn't calculating the labor involved with our ecom op.
Wow. I have very little knowledge of business jargon. This video is EXTREMELY educational for a newbie. Appreciate you, bro.
Yes👍
OMG, loved so much this video! After an MBA in international business and nearly 3 years with my project (currently at the phase of product building) I had no idea on how to set a price for a product. Now, after understanding and putting on an Excel LTGP : CAC ratio, I can finally look at the price I would need to set my product in order to get x in profit in a given period. And since my product will probably be 1 unit with no recurrence (due to its service educational nature) I really needed to understand these variables in order to set a good price. Thank you so much!!!
Interesting point ! Good luck
Great content Alex, amazing editing Mozi Team ⚡️
I have the utmost appreciation for you and Leila’s dedication and commitment to good systems and processes 🙏Happy Holidays 🎉🙏
Yes👍
Epic Business Master Class!
please do a video about risk.
I am currently working on analyzing the market, the customer and the competition.
Next step for me is to identify the problems, goals etc.. so i can create my offer. But in the past few weeks/months i was always confronted with the term risk management. Of course i can just learn it by myself, but your explanation videos are always great. They help me out a lot during my learning phase.
There are two risk management concepts he already discussed in the video
Bruhhh AMAZING CONTENT, Right to the point, great examples and no BS
This is Gold! No hype, just pure facts from someone that's actually done it.
Love this video on business ratios man! Would love to learn and apply more of this from you!
I probably learn more from Alex in one video than I would a four year business degree.
The hard part is retaining that information
@@m3g4ninjatrue. But that’s great me and obs also for Alex cause I keep watching them over and over
@@m3g4ninja just watch it again and again till you can use it anywhere like formula in maths. The only different that these are interesting and clear useage
Not really, this is mostly just financial accounting ratios which you'd learn in literally BUS100
@vilej
Not "Business 101": Managerial Accounting.
Alex, THIS is the kind of content that slays. No fluff, down to business, knowledge on blast like an open fire hydrant in NY in July.
Seriously, a discipline man could consume ten hours of this content in this format and go build an empire.
Thank you, brother. These kinds of videos you do are truly life changing. I wish I knew this decades ago.
I don't understand the point (6) and (7) very well. Are there any videos that go deeper in these two points?
Thanks for all the value, I appreciate it!
No BS, no useless marketing … straight to the point , incredible valuable
This is why it’s so crucial to have a small CAC
Alex, you changed my life when I heard from you this quote "If you die with even a single idea unspoken, that means your life wasn't worth living"
He didn’t say that exactly. But you heard what you needed to hear to motivate you
Imagine having a private 6 months coaching with this man
Damn!!!
Waiting for a Buisness fundamentals book based on videos like this from Alex. Would read that front to back everyday
Yes👍
Very likely to be in $100M Money Models
I can't believe this was free. Thank you
This is the best 20 minutes I have ever spent learning the true concepts of business!
Yes👍
Great video! How would you factor in a yearly increase (or decrease) in new customers? Let's say you sell to 10% more people every year, how would that affect your hypothetical max?
I love your energy! No wonder why you stay at the top for so long time. You inspire me a lot for my own channel. Thank you Alex!!
Yes👍
Gyattt Damn! i'm blown away by how well the first concept works. Not even done with the vid yet, lol. Alex the goat!
Amazing video. Exactly what I needed to learn today. When you look at a business like this it is definetly a game I like to play. It's almost as curtain as 2+2=4
How can I start a community when I’m not an expert? Full disclosure I love Alex❤
Anyone wondering when checking LTGP : CAC ratio in a service based business why are we including salaries in CAC when we already included salaries in LTGP since in a service based company service is the goods being sold and employees are the one producing the product
In a service-based business, you include salaries in both LTGP (for employees delivering the service) and CAC (for employees acquiring customers) because these represent two different activities-producing the service and acquiring the customer. This ensures an accurate calculation of profitability (LTGP) and acquisition efficiency (CAC). Without separating these costs, it would be hard to determine how much is being spent on acquiring versus servicing customers, which is crucial for evaluating the health of the business.
I had this doubt hope this helps anyone with the same doubt
Nice video & tutorial 👍
I've noticed its very helpful to watch Sabri Suby's "Your Ads Suck" playlist alongside Alex's "The Game" playlist
I’ve been hoping to find a video that walks through business concepts and definitions while being entertaining for a while. Much appreciated.
Highly engaging with the sounds in the background. It's keeping me on my seat, I feel like I'm waiting for something to happen, very exciting
Absolute sigma. Thanks, king 👑
These metrics have been huge for me & my clients at my ad agency (mainly LTGP : CAC ratio). Thanks for these gems brother!
God bless you man❤❤
Awesome video, especially coming from a small TH-camr.
Appreciate you fam.
Has anyone followed all of Alex's videos and seen their business thrive even more? Genuine question
This feels like free school. Thanks for taking the time to do this when you could be doing absolutely anything else with your time. 🙏
Yes👍
7:11 When calculating cac, are those 5 employees specifically for marketing or do you include all employees in the business?
@pierreroos3233 It confused me as well because Alex haven't clarified is it marketing team. It's a CAC so how much it takes to acquire a customer which means only people that are working on production of marketing and sales go into this cost. It could be salaries of designers by those that create marketing materials.
You calculate whole team COGS [costs of goods sold] in LTGP to get GROSS PROFIT
Thank you so much for your teachings Alex, I'm buying your books just to say thank you for teaching us.
People pay for this kind of content. This is incredible.
Love your content. Very practical
As a business owner this info is invaluable!
Agreed !!
another Masterpiece from Alex as always & simplified as it can be. You're an absolute LEGEND
Yes👍
I appreciate the knowledge Alex Hormozi
LOVE THE BUSINESS MATH
Alex, I don't know if you reply to comments here but here is what I was wondering. May seem like a dumb question, but is it possible to get paying customers to my business through my you tube channel? I'm not interested in vanity or large number of subscribers, etc but not opposed to it either. Thanks for all the teachings & happy new year.
Amazing. Thank you Alex!
I’m being honest, I still struggle to fully understand my numbers. I run a multi Six Figure membership that is build purely on content marketing (I don’t run ads). How would I tweak this equation find my ratios?
Thank You So much man !
So helpful immediately
This is a masterclass!!!
I wish I had discovered Alex in 2019 when I left my job to start my first business.
Yes👍
I love this! Thank you for sharing!
Some user experience feedback, some of the captions are low contrast and hard to read.
Hey Alex,
Huge fan! If you were a real estate agent what would your offer look like that they couldn’t say no?
Thank you!
Amazing, thanks
This information is a little difficult to perceive, but where it is difficult, there is growth. Thanks for this content!
invaluable video thanks man
awesome Alex!
Thankyou for doing this with or without your family.
Awsm video alex
Alex, I don't like the background noise
Bro u getting this for free...
@@flameynoob trying to give honest feedback so he can improve
Okay then you can focus on his words with caption
Agreed
@@antfungames don't mind these people lmao
don't let them dictate what you should focus on LOL
Thank you so much for the valuable information.
This inspires me to do the work and don't quit
Bro, Alex is my spirit animal.
A 5x business is very hard to find and a 5x business at scale is even harder to find!
Interesting audio cues
Any explanation for why Alex values a greater ratio of LTGP: CAC? Consider two businesses, their LTV is the same at $7 per customer. Business 1 has a COS of $2 & CAC of $1, giving LTGP/CAC of 5. Business 2 has a COS of $1 & CAC of $2, giving LTGP/CAC of 3.
Both businesses profit is the same at $4, however LTGP: CAC is vastly different, why should this matter?
Where would you track things like LTGP: CAC / Sales velocity, etc?
I understand all the concepts but I’m not sure the best approach to track and monitor.
Not sure what others are doing, but after watching this video, I use a Google Sheet to track everything on a monthly basis and then connect that to a LookerStudio report I made to visualize each metric by month, quarter, or year.
These are the 8 metrics I enter into the sheet each month and the rest are formulas that calculate everything else: Total Monthly Revenue, Active Client Count (beginning of month), Total Cancelled Clients, New Clients, Fulfillment Employee Headcount, COGS, Sales Rep Headcount, and Total Acquisition Cost.
I'm sure there are other great ways to track, but this is what has been working for me and it's free if you already use Google tools. Hope that's helpful!
As always, brilliant advice . Thank you for taking the time to teach.
What if customers get a one time offer normally? Like say for a moving company I own? 👀
Thanks Alex for the Golden Nuggets of Wisdom!
BEST type of content right here thank you!
thank you so much , Gods Speed, Godbless you . such an genuine content . Thank you .more power,
Thattttt thumbnail was the best hook evvvva!
It's easier said than done. The risks are high, and success stories like that are rare. It's not a practical path for most people.
Absolutely. I've been exploring too. It seems like every strategy has its moment of glory, but finding one that consistently works is like chasing a unicorn.
Consider financial planning
Generating substantial gains at uncertain times involves experience and intricate strategies best executed by financial planners
I can understand the wisdom behind working with a professional advisor because I’m completely aware of the psychological effects of wrong investments.
How does one find a good finance advisor?? How do I know they are trustworthy and competent?
Free CFO training.. sooo good!
Thank you Alex ❤
Really amazing thanks. Just got tons of clarity on my business
7:59 Why do we add fulfillment costs to CAC, wouldn't it make more sense to subtract it from LTV to get LTGP? Anyone?
Nice pattern break with the flannel change
is average customer lifespan the same as customer lifetime (or the LT in LTGP)
I waiting for this video I needed this thank you so much bro
I’ve done so much mental M to Alex that I am noticing new content is updated old content better visuals stories more dialed in. Does this mean I graduated?
I was watching Hormozi videos on TH-cam a few years back and I had more subs than him. Obviously he’s doing it better 😂😂😂
20 minutes of pure value
nicely described
Great addition to understand better the $100M lead
'Preciate you fam, bout to get this bag now
On point! Thank you Alex.
Hi Alex, I’d like to start by saying thank you for all of the information you have made available for free. I have watched so many of your videos it is all a blur. I was looking for one in particular where you spoke about the importance of aligned incentives You gave the example of a realtor selling a house above asking. If you think it would be valuable, could you do a video of how a business, employee, and customer can have aligned incentives.
Great stuff.