Alex Hormozi: How MILLIONAIRES become BILLIONAIRES...

The video discusses how entrepreneurs can shift their perspective on product and delivery in order to become successful and make more money, with a focus on creating value, profit, and a remarkable customer experience.

This video by Alex Hormozi was published on Sep 8, 2021.
Video length: 08:32.

In this video, Alex Hormozi discusses how entrepreneurs can shift their perspective on product and delivery to become billionaires.

He emphasizes the importance of creating a product that is good enough to generate referrals and long-term relationships with customers. Hormozi suggests asking three questions to alter one's perspective on product and service: 1) If the product were 10 times more expensive, what would need to be done to make it worth that much? 2) If the product were one-tenth the cost but had to be better, what else would need to be created to facilitate that outcome? 3) If only one more customer could be sold and the rest of the growth had to come from that customer's referrals, what would need to happen to create that experience?

These questions hit on different aspects of the product, including value, profit, and customer experience.

• Entrepreneurs need to understand the importance of product and delivery.
• Three questions can alter perspective on value, profit, and customer experience.
• Creating value and profit over time is more important than making sales.
• Remarkable customer experience leads to referrals and long-term relationships.
• Entrepreneurs need to focus on creating a remarkable customer experience.

How MILLIONAIRES become BILLIONAIRES... - YouTube

Shift in Perspective

• The biggest shift for entrepreneurs is understanding the importance of product and delivery.
• If you're not making the amount of money you want, it's because your product is not good enough.
• People have found out about your product and are not referring others, so you need to ask why.
• Small entrepreneurs try to get customers to make sales, while bigger entrepreneurs try to make sales to get customers.
• The difference is one person is short-sighted, while the other has a compounding view and perspective on time and value.

Three Questions to Alter Perspective

• Question 1: If your existing product or service were 10 times more expensive, what would you need to do to make it worth that much?
• Question 2: If your product were one-tenth the cost but had to be better than it currently is, what would you need to create or make to facilitate that outcome?
• Question 3: If you were only allowed to sell one more customer and the rest of the growth had to come from that customer referring others, what would need to happen to create that experience?
• These questions hit on different aspects of the product: value, profit, and customer experience.
• The first question hits on value, the second on profit, and the third on the customer experience.

Creating Value and Profit

• Entrepreneurs need to focus on creating value and profit over time.
• Ultra-wealthy individuals think about putting in a one-time effort that compounds over time.
• If you have to consistently promote and sell, the product itself is not good enough.
• Creating a long-term relationship with customers is more important than getting to the money as fast as possible.
• People who are millionaires focus on making sales, while people who are billionaires focus on creating value and profit.

How MILLIONAIRES become BILLIONAIRES... - YouTube

Remarkable Customer Experience

• The customer experience is everything that surrounds the product or service being sold.
• If the customer's experience is remarkable, they will refer others without being asked.
• Entrepreneurs need to focus on creating a remarkable customer experience that will lead to referrals.
• The customer experience is the key to creating a long-term relationship with customers.
• Entrepreneurs need to ask themselves what needs to happen to create a remarkable customer experience.

The Importance of Product in Creating Enterprise Value

• Super wealthy people focus on product, while small people focus on promotion.
• Promotion should only exist to get the product right.
• There are six ways of getting customers: paid media, earned media, contact list, manual outbound, affiliates, and word of mouth.
• Word of mouth is the only one that compounds and creates enterprise value.
• Investing in making the product so good that people have to tell their friends about it is where you get unending scale and profit.
• Putting effort into making the product better in the beginning will pay dividends over time.

The Importance of Compounding in Creating Enterprise Value

• Everything that the ultra wealthy do is compounding, which grows with time.
• Time becomes an asset instead of a liability.
• Investing in making the product better in the beginning will pay dividends over time.
• Most people skip this step because they just want to make the first sale.
• Creating offers that are so good people feel stupid saying no is key to success.
• Investing in the product and creating a remarkable customer experience is the key to becoming successful and making more money.

Watch the video on YouTube:
How MILLIONAIRES become BILLIONAIRES... - YouTube