So, here’s what I’ve been up to the past week, what I’ve learned, and what I’m planning to do going forward.
What I’ve done
First, I interviewed at 3 medical schools, one of which is among the top 20 schools in the country (the US), so that was fun.
Second, I attended Alex, the marketing GOAT, Hormozi’s $100M Money Model’s book launch, and it was INSANE! This guy literally made $105,000,000 in a single day.
Third, I went through all of $100M Money Models in 7 straight hours and adjusted my entire strategy going forward in the business.
What I’ve learned
I’m going to share my biggest takeaway from Alex’s event and $100M Money Models as a whole, but I’m not going to summarize everything because the entire course is free.
You can go to his website and you’ll find the entire breakdown.
And no, this is not sponsored at all, I genuinely just got an incredible amount of value from the course so I’m happy to recommend it.
So, the whole premise of $100M Money Models is basically to achieve customer financed acquisition (CFA) on steroids, which is unlocked when every customer pays for at least two more customers.
More practically speaking, the amount of money you make from each customer within the first 30 days (because that’s how long you can borrow money with no interest in the US) should more than cover two times your customer acquisition cost (CAC) per customer.
For context, if I remember correctly Alex said for Gym Launch, each of his customers paid for the next 100 or something. That means, this guy spent $1 to acquire his first customer, which paid him $100, so that he could acquire 100 more customers (he was literally making money from customer acquisition).
What this effectively means is that money’s no longer a constraint to scale because you can outspend your competition to acquire customers.
And the way you can accomplish this level of CFA is by maximizing lifetime gross profit (LTGP) through an effective money model.
A money model is just a series of offers you make to maximize LTGP, and Alex groups them into 4 categories:
- attraction offers (to get people in the door)
- upsells (to get them to buy the next thing)
- downsells (to get them to buy when they say “no”)
- continuity offers (to build recurring revenue)
He has a saying, “Everyone buys something.”
It means, every prospect that entered his ecosystem, back when he ran Gym Launch and his own gyms, bought something, and that was thanks to his money model.
What I’m planning to do
So, I’ve taken Alex’s quote and taken it a step further with my own version, “Everyone buys something forever.”
Thinking about it hypothetically, if every single prospect that’s interacted with your business paid you forever, how valuable would your company be?
It would be the most valuable company on Earth assuming that you also made more money per customer than any other business.
And if you can build a business that actually accomplishes this, it’s hard to quantify the number of people you’d be helping (if you run an ethical business) and the positive impact you’d have on the world.
I think that’s awesome, and going through this exercise has really helped me dial in my own money model.
Just to give you an example, up until now I was just doing one-on-one consulting engagements.
I mean, $5,000 for a week and 16 hours of my time is not bad at all (~ $312 p/h).
But now, I’m pivoting to a group-based engagement, where I’ll charge less per customer, but on an hourly basis, I’ll make way more and actually be able to provide more value to my customers because they can benefit from collaborating with others.
Doing the math (I haven’t completed putting together the offer yet, so it’s still a work in progress):
Before I was at ~ $312 p/h.
Now, if I charge $1500 upfront with a $350 recurring 4-week subscription, and I take on no less than 10 businesses at a time, that’s $15,000 in cash collected within the first 30 days, and then $3,500 per month thereafter.
It will likely take me 24 hours the first month working with 10 businesses, so $15,000 / 24 = $625 p/h
And now, I also get $3,500 recurring on the backend.
Just to put that into further context, if you take the average amount of time that a full-time employee works in a year, which is 2,080 hours, and do the math:
2,080 hours x $312 p/h = $648,960 p/y
2,080 hours x $625 p/h = $1,300,000 p/y
That’s a difference of $651,040 p/y!
The Final Musing
Hopefully that’s enough to convince you to go check out $100M Money Models.
If you do or already have, let me know what your favorite takeaway was!
That’s all for this week.
See ya next Sunday 🙂
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