gross margin

This is the golden ratio. Today, Alex (@AlexHormozi) talks about how the most successful framework involves only three important lines that will dramatically bring in more value and money to your company and the different combinations of these lines.

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 on his path from $100M to $1B in net worth.

Timestamps:

(1:30) - Three lines: sell price, value, cost to you

(2:56) - Examples of combinations based on different levels

(6:49) - Golden ratio: provide valuable, low-cost, create customer surplus

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The slightest difference can make the biggest change. Today, Alex (@AlexHormozi) talks about one of the number one issues he faces when he talks to small to medium-sized business owners: knowing the difference between gross vs. net margin. By knowing the difference between these two, you will instantly shift how you view money and the growth of your business.

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 on his path from $100M to $1B in net worth.

Timestamps:

(0:47) - Difference between gross and net margin & calculation involved

(2:11) - Gross margin creates net margin. Alex's example explains why.

(4:38) - Increasing gross margin: decrease fulfillment cost, increase price now.

(6:42) - Greatly increasing margins scales and yields enormous profit.

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You need to lay down all the right cards before claiming your win. Today, Alex (@AlexHormozi) talks about the different factors that should be considered when you’re reopening your business after COVID-19 and making sure that you’re reaching the right percentage points in order to become profitable again.

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 on his path from $100M to $1B in net worth.

Timestamps:

(1:40) - Price services at normal rate

(2:32) - Determine when it makes financial sense

(4:05) - Aim for 80% gross margin, adjust customer billing

(7:15) - Make tough decisions for increased profitability

(9:58) - 5 steps to scale business after reset

(10:42) - Profit model not suitable for large group training

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"The only number that really matters in marketing from an acquisition standpoint is cost per acquisition." Today, Alex (@AlexHormozi) discusses the importance of measuring marketing success based on cost and lifetime value ratios, rather than just the cost per lead. He walks through each step of the funnel and emphasizes the need to measure as close to the sales stream as possible.

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 on his path from $100M to $1B in net worth.

Timestamps:

(1:12) - Cost per acquisition is the only important marketing metric.

(3:58) - Aim for a 3:1 or higher LTV to cost of acquisition ratio.

(8:21) - Analyze marketing success based on cost and lifetime value ratios.

(10:38) - Lead quality can improve 3-5x based on pre-opt-in information.

(11:54) - Non-opt-ins due to program details save time and effort.

(12:51) - Measure revenue per show to evaluate campaign success.

Follow Alex Hormozi’s Socials:

LinkedIn  | Instagram | Facebook | YouTube  | Twitter | Acquisition