# How I got 700 people to pay me $40,000 each...no bs..

## Метаданные

- **Канал:** Alex Hormozi
- **YouTube:** https://www.youtube.com/watch?v=_qspvJAq34M
- **Дата:** 23.08.2021
- **Длительность:** 18:38
- **Просмотры:** 323,944
- **Источник:** https://ekstraktznaniy.ru/video/16635

## Описание

Download your free scaling roadmap here: https://www.acquisition.com/roadmap-yta118
The easiest business I can help you start (free trial): https://www.skool.com/hormozi
Business owners: Want to scale faster? We provide in-person advisory for companies doing at least $1M per year: https://www.acquisition.com/workshop-yta118

If you're new to my channel, my name is Alex Hormozi. I'm the founder and managing partner of Acquisition.com. It's a family office, which is just a formal way of saying we invest our own money into companies. Our 10 portfolio companies bring in over $250,000,000+ per year. Our ownership stake varies between 20% and 100% of them. Given this is a YT channel, and anyone can claim anything, I'll give you some stuff you can google to verify below.

How I got here…

21: Graduated Vanderbilt in 3 years Magna Cum Laude, and took a fancy consulting job.
23 yrs old: Left my fancy consulting job to start a business (a gym).
24 yrs old: Opened 5 gym locations.
26 yrs old: Clo

## Транскрипт

### <Untitled Chapter 1> []

you have to spend an hour arm wrestling a client to sell a $1,000 package. Whereas here, people buy $40,000 packages over the phone in less than 15 minutes. So, when I was 28 years old, I was five or six years into business or my business career, and I had just gone through a five-day gauntlet. So, I had done a two-day client event um which was we had six or 700 clients uh that had come to our highest level program in person. And then the next day I had my executive meeting and then two days after that I did a meeting uh with all 135 of our employees who flew out uh to Austin to to do a two-day conference with us, do some trainings, all that kind of stuff. My dad calls me up after this kind of 5-day marathon. And he says, "Hey, Alexander. " Because that's what he calls me, right? Um he says, "Hey, Alexander. " But he sounded really way more concerned. And I was like, "What's going on? " Um and so I roll out of bed, put a hoodie on, walk in the hallway. So, I didn't want, you know, to wake Leila up. And he says, "I thought you said this was just going to be a meeting of your highest level uh clients. " And I was like, "It was. " He was like, "Didn't those people pay like $42,000 a year, the highest level people? " And I was like, "Yeah. " He's like, "But I thought but you just said you had like 700 people there. " And I was like, "Yeah, I know. " And I was like, "What's the issue? " He's like, "You had 700 people who paid that much money? " I was like, "Yeah. " What kind of came next was something that I think probably stung a little bit at the time, but I knew that it wasn't coming from a place of um or I didn't think it was coming from a place of of meanness. And he says, "Do they know that they're paying you that much? " And I was like, "Yeah, they're aware. It's not like a magically siphoning money out of their bank accounts. " He's like, "Well, I mean, I hope what you're giving them is worth it. " That could have really stung, and it probably did. Um, but I think I was kind of in such an emotionally exhausted state because if you've done 5 days of just pure events of it's I was like I had no adrenals to get angry with. And so I said, "Well, let me walk you through it. " So I said, "If I made you $239,000, would you pay me $42,000? " He's like, "Well, how long would it take me? " And I was like, "It would take, you know, 11 months. " He was like, "Okay, well, do I know I'm going to make that money? " And I was like, "Yeah, you're pretty sure you're going to make the money. " He was like, "Okay. " He's like, "Well, what would I have to do? " I was like, "You would, you know, wouldn't have to do a ton. You'd have to probably do about 15 hours a week of work. " Um, and would I have to pay that all up front or like how would I have to pay you? I was like, "You would pay me as you made the money? " He was like, "Huh? Well, then yeah, I would do it. " And I was like, "And that's why they do, too. " And so when I walked my father through that kind of mental explanation part of it was to make sure that my father, you know, felt like I was legit. But the other part of it, his questions actually uh denote what the components of value are. And so the purpose of this video is to walk you through the value equation, which I think, you know, might be one of the bigger contributions that I'll have into the marketing world. And there are four components to value. That's why I have my little handy dandy uh iPad here, so we can do this all visually. All right. So we'll say value and we have the four components of course of value. When I was creating this, it was because I wanted to figure out what this word meant. I think value is one of the hardest things that we have as entrepreneurs to understand. We just say it. It's used loosely. Lifetime value, you know, provide more value, excessive value, blah blah blah, right? But we don't know what it actually means. And if you ask someone, what is value, right? How do you describe value? How do you measure or quantify value? I think this is my one of my better things. And so this is the value equation as

### The Value Equation [3:47]

Alexi defines it. Okay. So there are four components to this. The first component is what I consider the dream

### The Dream Outcome [3:54]

outcome. All right. And when I was thinking about this, it all started because I was really trying to figure out why some people would buy some things and not other things. And at the very beginning of this, it was if I were selling to men in general, more men value making money than losing weight, right? And so in general, the category of things that make people money cost more for men than the category of things of losing weight. And that's because the dream outcome of making money, at least for men, uh, increases status more than losing weight does. And so, as a result, that is deemed more valuable. And so while I go through each of these components, I'm going to give you two kind of examples of one that exemplifies it and doesn't exemplify it so that you can see it kind of in the real world. The first component is the thing that we are selling valuable in terms of is the dream outcome that we're going to deliver to the prospect something that they would like. The reason this is probably the first one is because it kind of defines the category. Now within a category, the remaining three variables are the things that will determine what is expensive and what is not. And to go back to the weight loss scenario, if I have a woman, for example, who wants to lose weight and I sell, there's probably some things that help people lose weight that are $5 and $50,000. So you've got a $5 ebook and you've got lipo suction. All right, so why is one $5 and one $50,000 when the dream outcome is the same of losing weight? That's where the other three variables of value come into play. Value number two, and obviously the goal here is to increase the dream outcome. more the more appealing we can make it seem, the more viscerally we can describe what the dream outcome is going to be like when the prospect experiences it, then they're going to deem it more valuable and then by extension be willing to pay us more for it. The second component of value is

### Perceived Likelihood of Achievement [5:41]

perceived likelihood of achievement. And believe it or not, this was actually the last of the four cuz I was still trying to figure it out because I felt like something was missing. And so this is the easiest example that I can give you mentally for two things where one is more valuable than the other. based on the perceived likelihood of achievement. And so, for example, if you were going to get, now we'll use liposuction as an example. If you're going to get surgery, right, from a from a doctor, and one doctor, this is their first surgery coming out of medical school, and the other doctor, it's their 10,000th surgery of this specific type of surgery, which guy would you be willing to pay more for? Well, obviously the 10,000th surgery guy, right? I mean, if anything, you probably have the first time surgery guy. You'd want to do it for free or have him pay you, right? And so, and what's funny about this, just as an added tangent, is that the guy who it's their first time would probably end up taking longer. So, you're actually getting less time with the guy who's done it 10,000 times than once or never, right? And so, even though you're actually getting less time, you're willing to pay more for it, which is just another interesting thing, which is why value is not uh time in terms of how long it takes you to fulfill something should never be uh in the value equation for yourself. All right. So, first is dream outcome. Is the thing that we're going to sell this the experience that they're going to have, what they imagine themselves experiencing going to be valid to them. Second is how likely do they perceive the achievement of that dream outcome? If I buy something, right, like that ebook example, if I'm buying an ebook versus lipo section, the likelihood that I think that I'm actually going to get the stomach that I want is probably significantly lower with an ebook than with liposuction, right? So, the perceived likelihood of achievement is lower and by extension, I will now get less value. I will perceive less value and be willing to pay less for it. And so for us as business owners and promoters for our businesses, the goal is that in this equation and the reason it's a fraction is that we want to increase both of these things, right? the perceived likelihood of achievement and when you increase the dream outcome. This is why a lot of marketers start promising bigger and bigger things. I also believe that it's the most amateur, it's the most beginner, but it's where everyone starts. All right, this is where I started my career where all I would do is dream is do bigger and bigger dream outcomes. I promised more and the perceived likelihood of achievement. What I did is I put more and more testimonials. So the more testimonials I had, the higher the certainty that the person or the prospect would experience what I was selling. They believed me that if I had a thousand testimonials versus one, you believe the person is better at the thing, right? And if they're you're more certain, which actually decreases risk, which becomes more valuable. Third, so this is the bottom side of the equation, right? So the top we're trying to increase. The bottom decrease. All right? So this is time delay. So the time delay is the time between when I pay and what I get what I want. I have this kind of in two separate pieces here. Well, I'll just talk about the main one and then I'll talk about the fourth one which will hit it. All right. So time delay

### Time Delay [8:31]

and this is probably one of if not the most powerful things. Like if you want to enter into a marketplace, you can do whatever the best guy's doing and do it in half the time and you will become more valuable, right? People will pay for speed. All right? And if you ever compete against somebody who's free or giving away free stuff, sometimes you compete against government services. I've got a friend of mine who does DMV expedited services in uh in New Mexico. All right? And they have 14 locations of basically ex expedited DMV services so you can renew your license and all that kind of stuff. And they cost 50 bucks instead of being free from the government. And they murder it. Even though they're competing against something that's free, they beat them on speed. And so if you ever are competing against uh free, compete with speed, right? Fast beats free. Okay. So time delay. Can I do the thing faster? Can I get them there faster? Now the longer it takes, the less valuable my service or product is, right? The shorter it takes, the more valuable it is. So in theory, if I were to click buy on a digital product for a six-pack and then look at my abs and I have a six-pack, that would be an infinitely valuable product, right? And so if we can think about our services is like how quickly right can I make this happen in reality. A different example would be um if I were selling marketing services right to a physician and as soon as their card ran their phone rang right on the front desk was somebody saying hey I just heard about your thing I'm qualified. I'd like to buy your services. That would be unbelievably valuable, right? Imeasurably valuable because of the speed, right? And so you can in a very real way increase the value of what you sell without changing the thing but only delivering the outcome faster. That's the third component of value. So the idea here is that we want to decrease the time delay, right? We want to make it faster for the prospect to experience the outcome that we are promising. Fourth component of value. All right? And there's two components to this. I'm going to give you some nuances here.

### Effort and Sacrifice [10:21]

It's effort and sacrifice. So effort is what someone must do that they don't want to do in order to achieve the outcome. Sacrifice is what they have to give up or stop doing that they do enjoy doing in order to achieve the outcome. So I'll give you an example of both. All right? So it's kind of like four 4 A and 4 B, right? But I think they're kind of I bulk them in the same thing because I think they are similar enough that they're worth uh putting in the same bucket. So effort, for example, would be like if I wanted to lose weight, right? Then uh if I'm, you know, Cindy Lhoo, all of a sudden I'm not doing certain things. I might not be weighing my food. counting my calories. I might not be eating, you know, shopping at the healthy grocery store. I might not be working out in the morning. I might not be waking up right early uh in order to get the gym. I might not have an extra hour or two um every day that I have to dedicate to this. I might not be sore, right? These are all things that I now have to experience that I don't want to experience that are part of effort, right? These are things that make this less valuable. On the flip side, if I were to uh sacrifice, I'm sacrificing the foods I love. I'm sacrificing sleeping in. I'm sacrificing walking down the stairs without being in pain. And so I think effort and sacrifice often times are flip kind of both sides of the coin, right? They're either they're heads or tails of the same concept, which is why. But I think if you can think of that in terms of your own services is like what am I making someone give up and start doing that they weren't doing before that they don't want to do, right? And so again, the goal here is how can I decrease the effort and sacrifice associated with achieving the outcome when they buy from me. The example would be if I had the the abs thing right now, let's say it was instant, but it was like incredibly painful, right? When I you click the button, then you get the abs, but it was just like it felt like fire all over your body. That would be a lot of effort and sac. I mean, that's painful, right? That's literally painful versus nothing at all. Well, in each of those examples, the one that isn't painful is going to be more valuable, right? And so as I think through product lines, service lines, I always attack it from this perspective. All right? Is how can I create more value by increasing the dream outcome and my expression of it so that they believe what I am saying and the way I have depicted what they want to be actually what they want. And you would be surprised how many times people get this wrong. Right? I was talking to um Dr. John Bardi is the co-founder of Precision Nutrition. They sold for a nine figure plus exit. He was talking about one of the biggest breakthroughs they had in their business when they understood the job to be done. All right? So they sold C certifications, right? He said most people think that selling certifications is about selling continued education. He was like that's not the dream outcome. People are not actually wanting to buy the certification. The dream outcome of the certification and the experience around that is actually being in a community and being meshed with other people who are just like you. Weird just like you. And so as soon as they realized that was actually the job to be done and people just wanted a socially acceptable excuse to go do that, right? Certification is socially acceptable excuse to do that then in that instance now they had defined the dream outcome properly as to what people actually wanted, right? And so that was a huge breakthrough in their business and then business will up and all that kind of stuff. And so getting the dream outcome right may seem simple but a lot of times being able to depict it accurately back to the prospect as they desire it um is extremely valuable. So the goal is to increase the top side and decrease the bottom side. And one of the things that and the reason this is a fraction and not an addition and then subtraction equation is that if you can get these bottom things down to zero, right? Getting the bottom to zero, you have an infinitely valuable product. So no matter what your promise is on the top, even it's tiny, a tiny inconvenience you help people avoid. If it's immediate and it requires no effort on their part, you have an infinitely valuable product. And when I look at the biggest businesses, my own businesses and how I've changed as an entrepreneur over time, I used to focus only on the top side. And now when I look at the Amazons, I look at the Netflix, I look at Uber, all of that stuff is stuff that decreased the downside. Uber made it immediate. And you now if you've seen on Lyft, you can be uh you can get first in line, right? So it's like boom, you can hit it for an extra $5. You can get picked up an extra like in a minute, right? It's crazy. But they were smart about it. They realized they could increase the value by decreasing the time delight. Netflix made decreased all the effort and sacrifice that went along with watching television and seeing uh and running movies and all that stuff. It was immediate for them, right? There's no effort, no sacrifice. It's all right there. You don't have any picking. It just boom. They're like make suggestions, etc. This theme Amazon, right? You buy it and then they've got drones delivering it to you in two hours, right? They consistently, the biggest companies decrease the downside of the equation, which is where more of the work happens, but in my opinion, it's also where the biggest moat lies from a competitive advantage standpoint. And so this as I look at my companies, this is what I'm focusing on with our products and our services. How can we decrease the time delay? effort and sacrifice that are associated with achieving the outcome that we want and then in so doing increase the perceived likelihood of achievement of the pro of the prospect. So what I want to do is give you one sideby-side example of this concept. So you've got personal training and you've got uh lipo. All right? So you've got both kind of versions of the same dream outcome. All right? So both dream outcomes are you're going to look good, you're going to feel good, all that kind of stuff, right? So I would say this is a one out of one. Um if we were to rate this on a binary scale of does it achieve the dream outcome. Yes, personal training will help you look good, feel good, etc. Lipo section All right. Now look at let's look at the

### Perceive Likelihood of Achievement [15:44]

second thing here, right? Perceived likelihood of achievement. If you're buying personal training, the perceived likelihood of achievement probably kind of low, right? Because you're like, am I really going to do this? follow the nutrition plan? Am I really going to wake up? you know, am I going to do all this stuff? Do I really think it's going to happen for me? Probably put a zero. Most people don't actually think they're going to be successful when they buy the thing. Now, on the contrary, liposuction, do you think that you're going to have less fat on your stomach when you buy lipos section? The answer is yes. You do think that you're going to have less. So, the perceived likelihood that you're going to do it very high, which is a one. Let's go to number three. So, time delay. All right. So, personal training. Am I going to have it immediately? No. Personal training might take 12 months or 18 months or 24 months before I get to my ideal weight. And even then, I still might not be my body might not look the way I want it to look or my stomach might have extra skin, all that kind of stuff, right? So, it's going to take a long time for me to get to where I want to get to, right? It's not going to happen soon. Boom. We've got another zero here. Now, lipo section, if they just suck all the stuff out of my stomach and they cut the skin off, right, and it's nice and tight, right? What's the like what's the time delay on that? I don't know, maybe a month, maybe two months, right? Before it's all ready and sucked in, right? So, it's a short a much shorter time delay for the dream outcome to occur. And then finally, effort and sacrifice for personal training. All the things I gave earlier, right? I got to give I got to go I got to change the way I shop. eat. I got to wake up early. I got to be sore three days a week, right? I might not be able to eat with my kids. Like, there's all these other pains that go with I got to learn how to cook healthy. All these things, right? Lipo, I don't change anything, right? The effort and sacrifices. I I fall asleep and instantly I'm woken back up from my medical coma. I am sore in my stomach for sure, you know, for three or four weeks, but then after that it's done, right? Whereas here on this personal training side, right? I'm going to be sore for years, right? Now, my goal here is not to debate whether uh you know, I think people should do fitness or do lipo section. I'm obviously just do whatever you want, right? But for the for the context of us as business owners to understand the difference in value, this is a one out of four and this is a four out of four. Which is why you have to spend an hour arm wrestling a client to sell a $1,000 package. Whereas here people buy $40,000 packages over the phone in less than 15 minutes. And that is the difference of value. And that is why the value equation is how I think that I this is how I see business. This has taken me a long time to figure out and so I wanted to share it with you guys. So anyways, lots of luck. Keeping amazing. And if this was interesting for you, FYI, my book just released. Um, it's 99 cents. You can get it. I made it 99 cents. And the goal of all the things that I have here is, um, you know, we're trying to build a portfolio of companies that does a billion dollars a year in revenue. We're currently at about 85 million. I know there are a lot of broke people in the world. And, uh, my point here is to make sure that you are not one of them and to equip entrepreneurs with the stuff that they need to succeed without having to buy any courses on the internet. So, uh, keeping awesome lots of love and see you in the next vid.