Un competidor et copia? La lliçó de 50 milions d’Alex Hormozi

Hey, Alex, thank you. My name is AJ. I own a, did you hear it? The what? Did you hear my question from before? Do I have to restate the whole thing? Oh, restate it. 1.2 million. Yes, 1.2 million in 2024. Or the money? 2025. 25, we doubled it. It's a 2.2. This year, we're projected to do four. Really the goal would be, in the short term, probably by 27, if we could be a million dollar a month company. What we did to double it, this should be. Who do you start a what? say that again. What do you sell to who? We sell motorcross training. Okay. So we hold five day camps is what I'm kind of realising. Yes. Cool. Yeah. So this has

been cool because I start to the gears are turning as far as how to run a good event. Pun intended. Thank you. Yeah. What we did to be able to get our projection to 26 to the 4 million is we scaled down our single day tour dates. We did more in 24. We went all the way to, we scaled from 70 single day towards 8th in 23 to 140 of them in 2024 and it was just a ton of operational drag. I mean it was like we were like a rock, it was much. It was nuts. But what we realized and looking back on it is the bottom 20 of those were net negative. The next 20 were net less than a thousand dollars. So it inconsequential. And then I started looking at in 2024 we did three of the five big camps kind of as a test front each of those net Well over a hundred grand each and I'm like well hang on a second. This is the answer So this year I told the team at first I called them I said hey, I just had an epiphany here. It is We're gonna do 10 camps and I said actually no, I'm we're actually gonna do 25 and they're like 25 when he means 25 my question is do I continue to I'm going to say that.

My. We're just able to charge more for the three days in the one day. The five. So the one day is $300, which is probably not enough. The five day is $1,200, which is definitely not enough. So that's what part of the question, too. Cool. I want to continue to scale the five days and scale down the single days. But my fear is we basically own the space. Nobody else does what I do. It's pretty large market. copycat company and he's trying to hit all these single day tour dates and the regions that we're doing them. So I'm afraid if I scale them down too much, we won't be able to copy the model that makes the money. Say it again? He's going to copy the model that makes no money. Say it one more time. He's going to copy the model that makes no money. That's a great point.

Yeah. Love this first. Right. I hope he does. I can honestly, I could go home right now and I'd be happy after that. Yeah, you're right. you're right and I feel more confident that I don't think he could do what we could do anyways but he certainly can't do what we can do in a five day event. I mean we've run those five layers like nobody else so. Okay. So you can put your own price so let's just handle that real quick. Um, why can't you charge more? I definitely can. The reason I haven't is because I started writing dirt by X when I was two. I turned pro when I was 18. In fact, et cetera, help people I want to qualify. I can't really had no money. So I didn't want to out price the people that were me. Does that make sense? make like content is at the primary way that you get customers.

Yeah. Okay. So you do that for free. Yep. And those people get that for free. Everything's free. Right. And so we have 22 million subscribers. There's 100 people here. A lot of people get you for free. I think that let me say differently. If you will never help in person, even a tiny fraction of a percent of the people that you've helped for free. It's just not the world's instruction, though. You will be able to monetize 1% of the people, maybe, if you're lucky, that you've actually helped in the model that the way media exists today. It might change, but for now, that's how it works. And so, I think you have some sort of guilt that you can't help somebody,

but you won't be able to expand your footprint or the media without the cash flow to grow. And so, if you turn this into a billion dollar company, which I couldn't you, I mean, the market's big, right? If you were to turn this into a jack in a company, you think you'd make a bigger impact than you do now. Yes. Right. And in order to do that, it takes money. Yeah. And so you can serve the person who can't afford it for free. And then you serve the people who can't afford it for the correct price. And we do have a crazy amount of free content. It's based on not knowing anything about the industry. What would you change the price from from 1200 bucks a week? I can't say with the actual numbers. But I can say, what's your closure right now? I don't know. Do you sell on the phone or be a checkout?

I want to begin selling on the phone. We have a website landing page. We just began doing click funnels because what made me sign up for this. And we have to do that. Are you working with us after this? No, I think I should, but I'm afraid that I don't have enough. I afraid I don't have enough data yet because when I was doing this thing out. But you don't have the data of, I promise I don't care. I mean, I don't need the money. I mean that. The reason I bring it up is just because you're going to build a sales motion. There's a lot of mistakes that you can make there and getting it right the first time is worth it. So now it would be a- And all of a sudden the pricing power might not be like 300 to like 400 might be 300 to 3000. And you'll be like, I can't even do that. You're for sure fucking kid. Would you give up on the single dayers completely and just only-

We have to look at the unit economics. Say it again. We have to look at this, is my thing not long? The unit economic. No, I'm just so stuffed up right here. I got it. I'm just reading the left. Yeah. Yeah, we just have to look at the unit economic. So we just have to open the hood, pop it, and just look at both different event days. Sometimes, sometimes the single, we had a business that had, it was a brick and mortar service business, had two models, a micr model, and a bigger facility model. The bigger facilities, obviously had more revenue, and more absolute profit. but the return on capital, the return on effort for the small ones was like 5x. And so even though the founder was like, oh, I love having these, you know, these big whatever, it was like, we can expand so much faster and we can get to our 10 year going three years if we do the one day or the mini version. So we just have to look at it.

And all we're really optimizing for is return on capital. Human capital and financial capital. That's all, like if you think about, if you boil a bit, it's down to its most basic unit, It's an economic arbitrage between what it cost you to make more money. It's all this. And then the difficulty of continuing to do that. And so that means that we spend a certain amount of money to get someone in, which for you is going to be the cost of your immediate team in your time. That's the cost, right? On the back end, it's, what do we make from this people who come in the door and what stops us from doing more of that thing, right? And so if there's a model that right now we can spin that wheel faster and it costs us less here, that's the better model. I just don't know what it is. And in terms of pricing, we just continue to go up until willingness to pay stops. And then we just stay there. The nice thing, here's the thing. And the hunch that they conversions very high. Yeah. Yeah.

Obviously. You'll be able to afford it. But the main point though, you said something ahead much, it was a good one. It was a good one. Yeah. Oh. I'll remember it when I talked to somebody else. But yes, I'm always thinking that you said that it hit me like in the face Your competitor. You're gonna copy something. You're gonna copy a broken model. So you should hope he does that Okay, that was myself to the team not that I need to sell the team on it Yeah, and I'll land the plan on that for you too, which is that You will never go out of business focusing on the customer And I'll tell you a quick story. So the biggest business stake that I've made the two most costly business mistakes I've made One of them has nothing to do with this. This is the other one which has everything to do with us. I had a competitor that ended up taking a bunch of my top testimonials that were that we converted to semi-employees because they were big evangelists back in the gym one-stays. And as soon as they took them, they were big ads for me.

All of a sudden they were running ads for this other guy. So it's kind of like when the Verizon guy went to the AT&T and remember that, that's whichever that actor. It was kind of like that. And this guy was offering 101 coaching to help people out. I never did that. And they were cheaper. So they were cheaper. They were doing 101, and they had some of my top customers becoming advocates. And they said that the 10 of them had come to get, they partnered. He partnered with these 10 people or something like that. And when that happened, I got my feathers got all ruffled. And I was like, it's wartime. We got to go to the mattress. We got to really change the business up. And so I did this big, kind of like relaunch internally to my existing customer base.

And I said, and I did this big value stack. And I said, you're going to get all this extra stuff, not for the same price you're paying me, but for less. And so I took my existing recurring base. And I reduced my revenue by $500,000 top line per month. And so that translated, because we would take it off top line and then the cost went up. So I increased my cost. And I took my top line down by 6 million. And I ended up losing in profit, some of the neighborhood of $67 million a year for that business at the time. I then ended up selling that business obviously, and the business never recovered that profit. It stayed there. And when I did make that move, the first comment in the chat after I dropped that it was less was a complaint that I had not done it earlier. So was not, thank you so much for lowering the price and giving us more shit.

I can't believe I was paying more. And I was like, I want a fucking kill myself. And here is the best part of all. My churn changed zero. So I just cut my top line by 20%, churn remained the same. Because the willingness to pay change that I made, I basically reduced it from call 3,000 month to 2,500 dollars a month. It actually made no real difference in whether someone would cancel or not. who was passed a threshold that this is a lot of money, and so it changed nothing. I just made less money. And then when I sold the company, that six got multiplied by a lot. And so that probably cost me the neighborhood of probably $50 million. And so the big lesson that I learned there was that I shouldn't, and that competitor ended up killing that business because it wasn't fucking profitable. So I was the market leader and someone came into undercut me and then I said, oh, I'll copy the moron. It's easy to let happen. Yes. And so don't lose $15 million. Let him figure that out for himself.

You just focus on the customer and you'll win. Yeah. Good answer. Thank you. Appreciate it. If you're a business owner and you are not growing as fast as you'd like, I'd like to give you a free gift. So my team and I put together the $100 million scaling roadmap, which is basically 200 hours of us looking over all the portfolio companies have had. And what stages of growth they went through and more importantly, where they got stuck and how they got passed it. And so we broke it in these 10 stages and we made this little kind of quiz thing where if you put in your business information, it'll tell you where you're at and the most important part for you what to do for each of the functions of the business across product marketing sales, customer success, recruiting IT, human resources and finance. And so no matter what you're struggling with, someone else has already struggled with it and solved it. And so I'd like to give you this thing, absolutely free. You go to Acquisus.com for its ice roadmap, plug in your business information.

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