In this Q&A episode, Alex (@AlexHormozi) goes rapid-fire with real entrepreneurs, giving blunt, tactical advice on everything from scaling service businesses to fixing offers, boosting CAC, and knowing when to walk away. 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
Chapter 1: How can I prepare my partner for my entrepreneurial lifestyle?
Yeah. Yeah. I think we've decided as a team, collectively, we just don't want to be a network. Sure. Because of the lifestyle. No. I guess so.
And who you deal with. Yeah. Yeah. A pain. Literally for you. Or really, I guess for them. So I think, so fundamentally, I think you just have to think about this as basically starting a business over, but with resources already. So it's like, you don't have to think about, you don't really have to think about the service. You probably have to think about the packaging itself.
It's like, what's the, what's the grants I'm offer for this?
Yeah.
And you'll you'll have a number of like you're just going to become a normal business, which is just like you will run advertisements and you will make offers to people and they will come in and then they will take their credit card out and they will buy stuff from you. And so it's probably more that it conceptually feels complex more than it actually is.
And so it's probably a ripping the bandaid off thing. Which is that I would just out like so one is what channel of acquisition you're going to use. I'm guessing right now. Is it mostly word of mouth?
Yeah, it's referrals. Okay. Yeah.
Yeah. So one is you can start sell upselling existing customers. So like, obviously, they have what's covered in from insurance, but then, you know, upselling other packages that'll get your team a little bit used to be like, it's okay to pay us. That's from like a really tactical level.
But from an acquisition perspective, you've got content, you've got outreach, and then you've got paid ads, right? And alternatively, you could have affiliates. So we have to pick. So of those four things, which ones do you feel like you are better suited?
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Chapter 2: What business strategies work for transitioning from out-of-network to cash-based models?
And then what are the other 36 paying?
Are paying $600 per year.
Okay. Got it. Okay. So I think we, we, we chatted about this last night. So you have a, there is no right answer, but there is a path that you have to pick. And so either you're going to be an enterprise company and you're going to build only for that. And I would say like you probably will just transact on the education side in order to fund this.
I, in general, don't like this plan, but you could do this because you'll be split attention. And this is fundamentally why people raise money in software so they can just focus on one customer the whole time, build the product, and then actually get this work. Okay, that's that. Because you said that you're retaining 40% in basically a prosumer-ish market, which is where you're at,
I would be inclined to say that you probably are pretty close to a decent product. So you probably have nailed something there because keeping 40% of people one year later on, you know, whatever it is for musicians that you guys have for contracts and whatnot, you could absolutely go all in on that and get that to like 50 or 60%. And then you just need to have a different acquisition system.
So you probably just need to go spend money acquiring customers. And that already cash flows because of the education side. And are the people who are still paying you on the software also education customers or no?
They usually come from the education or from my legal services as well. So I have some clients that be 80% of the job.
The million dollar question. The million dollar question is if they stop the education, do they keep paying for the software? Yes, because it's a one-time business. Well, then that's... What, you mean the software is one-time business? No, the education.
Oh, so then... Sometimes they just pay and they're going to use the software.
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