Alex Hormozi: I cracked Starbucks RECURRING SALES model and built a FORTUNE...

The video is about the key to creating a fortune in business, which is to only sell things that people will never stop buying, and how to structure the product or service in a way that provides far more value than the price paid.

This video by Alex Hormozi was published on Oct 8, 2021.
Video length: 12:36.

In this video, Alex Hormozi shares his biggest takeaway from selling his eight-figure software company and what he looks for when buying and selling businesses.

He emphasizes the importance of only selling things that people will never stop buying and creating a customer surplus where the value received is far greater than the price paid.

He provides mental frameworks for turning valuable things into something that people will never want to stop buying and transitioning from a method selling business to a model selling business.

• Alex Hormozi sold his eight-figure software company with his wife 30 days ago.
• The key to creating a fortune in business is to only sell things that people will never stop buying.
• Businesses should focus on creating products that solve a problem and provide value to customers.
• Transitioning from a method selling business to a model selling business allows for continuous evolution over time.
• The product or service should be structured in a way that provides far more value than the price paid.
• The three-step process to create a billion-dollar unicorn company involves promotion, optimizing the product, and scaling it.
• Creating things that people will never stop buying will lead to a fortune and long-term benefits.

I cracked Starbucks RECURRING SALES model and built a FORTUNE... - YouTube

Introduction

• Alex Hormozi sold his eight-figure software company with his wife 30 days ago.
• He shares his biggest takeaway from selling the business.
• The key to creating a fortune in business is to only sell things that people will never stop buying.

The Importance of Selling Things People Will Never Stop Buying

• The key to creating a fortune in business is to only sell things that people will never stop buying.
• Examples of products people will never stop buying include Starbucks, Coca-Cola, Apple, and Netflix.
• The value of a business can be calculated by multiplying the total number of people sold to by the average monthly price.
• Businesses should focus on creating products that people will never stop buying and structuring them in a way that provides more value than the price paid.
• Customers should feel like they are getting a good deal and a customer surplus.

Frameworks for Creating Products People Will Never Stop Buying

• Businesses should focus on creating models instead of methods.
• Models can have multiple methods that feed into them, while methods are one-and-done.
• Transitioning from a method selling business to a model selling business allows for continuous evolution over time.
• Franchises sell models, and marketing strategies can change over time.
• Businesses should focus on creating products that solve a problem and provide value to customers.

I cracked Starbucks RECURRING SALES model and built a FORTUNE... - YouTube

Conclusion

• The key to creating a fortune in business is to only sell things that people will never stop buying.
• Businesses should focus on creating products that solve a problem and provide value to customers.
• Transitioning from a method selling business to a model selling business allows for continuous evolution over time.
• Franchises sell models, and marketing strategies can change over time.

The Key to Creating a Fortune in Business

• The key to creating a fortune in business is to only sell things that people will never stop buying.
• The product or service should be structured in a way that provides far more value than the price paid.
• The customer surplus is the value discrepancy in what you deliver and the price that you charge for it.
• Increasing the value of the product or service is more effective than lowering the price to create a customer surplus.
• Creating a fortune requires consistently thinking about how to make the product or service so that no one stops buying it.

The Three-Step Process to Create a Billion-Dollar Unicorn Company

• The first step is to get enough promotion to get customers.
• Pricing should be high enough that people will care but not so high that you're trying to maximize profit.
• The second step is to optimize the product so that people never want to leave.
• Continually testing the product is necessary until you get to the point where people don't leave.
• The third step is to start scaling the product once you have something where people don't stop buying.

Creating Things That People Will Never Stop Buying

• Interviewing customers, surveying them, and looking at usage patterns are necessary to create things that people will never stop buying.
• Increasing the collateral within your community is important so that people don't want to leave.
• Doing these things over and over again until you get to the point where you have one percent or two percent monthly churn is necessary.
• The fortunes are made by never losing customers because then you have time on your side.
• Even if you suck at marketing, people will find out about your product over a long enough time horizon if you have a product that people never stop using.

The Long-Term Benefits of Creating Things That People Will Never Stop Buying

• Creating things that people will never stop buying will lead to a tremendous amount of money over a long enough time horizon.
• Even if you weren't that good at promotion, your business would be gigantic in 20 years if you have a product that people never stop using.
• Creating a product that people never stop using will lead to a large number of customers over time.
• Creating a product that people never stop using will lead to time on your side.
• Creating a product that people never stop using will lead to a fortune.

The Key to Creating a Fortune in Business

• Only sell things that people will never stop buying.
• Structure the product or service in a way that provides far more value than the price paid.
• Monetize the product or service in a way that delivers more value than competitors.
• Build sales velocity by selling to more customers.
• Focus on creating a customer surplus, where the amount of value provided is far in excess of the price charged.
• Price is not as important as value, so focus on delivering high value rather than charging high prices.

Watch the video on YouTube:
I cracked Starbucks RECURRING SALES model and built a FORTUNE... - YouTube