Alex Hormozi: How to get unlimited funding to build your business in 30 days...

Last updated: Jun 15, 2023

The video explains how to use client financed acquisition to get unlimited funding for your business in 30 days without taking on outside capital or investors.

This video by Alex Hormozi was published on Oct 11, 2021.
Video length: 07:23.

In this video, Alex Hormozi explains his equation for client-financed acquisition, which he used to turn $1036 into over $120 million in sales without taking on outside capital or investors.

The equation states that 30-day cash must be greater than two times the cost of acquiring and fulfilling a customer. Hormozi breaks down each component of the equation and emphasizes the importance of profit in a capitalist society.

He also explains why the 30-day timeframe is crucial for interest-free financing and how he used credit cards to acquire customers and make a profit.

  • Alex Hormozi shares the equation that helped him turn $1036 into over $120 million in sales.
  • Client financed acquisition means getting customers to pay for all marketing and acquisition costs.
  • The equation is 30-day cash must be greater than two times the cost of acquiring customer and the cost of fulfilling that customer.
  • The cost of acquisition includes marketing team, sales guys, commissions, and advertising, while the cost of fulfillment is the cost to fulfill and sell the thing.
  • Client financed acquisition can help get unlimited funding for a business in 30 days without taking on outside capital or investors.

How to get unlimited funding to build your business in 30 days... - YouTube

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Introduction

  • Alex Hormozi explains the equation that helped him turn $1036 into over $120 million in sales.
  • The concept of client financed acquisition has been central to how they've grown each of their portfolio companies with 100% equity without taking on outside capital or investors.
  • Most people think they have to take two or three years before their business is break even or positive, but that's not necessarily true.
  • The key is to change the variables of the game and figure out a way to make money all the time.
  • The equation that Alex is going to outline is what he calls client financed acquisition.
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Client Financed Acquisition

  • Client financed acquisition means getting your customers to pay for all of your marketing and acquisition costs.
  • If you can plug into the universe's money, you can pretty much cash flow anything you need.
  • If you can make more money getting someone to enter your world than it costs you to get them there, and you still have all the lifetime value that you're going to collect, then you have what is called a negative acquisition cost.
  • The actual equation is 30-day cash must be greater than two times the cost of acquiring customer and the cost of fulfilling that customer.
  • 30-day cash is the amount of money that you can collect in net free cash flow to your business within the first 30 days of a customer entering your world.
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Cost of Acquisition and Fulfillment

  • The cost of acquisition includes your marketing team, sales guys, commissions, and advertising.
  • The cost of fulfillment is the cost to fulfill and sell the thing.
  • The sum of the cost of acquisition and fulfillment must be multiplied by two.
  • The result must be less than the 30-day cash.
  • The reason it's 30 days is because that's the amount of time that you can get interest-free financing.
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How to get unlimited funding to build your business in 30 days... - YouTube

Conclusion

  • Profit matters if you want to be in a capitalist society because it's the only way that you're going to be able to weather the storms.
  • Client financed acquisition is a process that can help you get unlimited funding for your business in 30 days without taking on outside capital or investors.
  • The key is to change the variables of the game and figure out a way to make money all the time.
  • The equation is 30-day cash must be greater than two times the cost of acquiring customer and the cost of fulfilling that customer.
  • The cost of acquisition includes your marketing team, sales guys, commissions, and advertising, while the cost of fulfillment is the cost to fulfill and sell the thing.
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How to Get Unlimited Funding for Your Business in 30 Days

  • Use client financed acquisition to get unlimited funding for your business in 30 days without taking on outside capital or investors.
  • Design a process in every business where the amount of dollars made in the first 30 days is greater than two times the cost to acquire plus the cost of fulfill.
  • If you can make this 10 times, it's even better.
  • CFA or client financed acquisition is the minimum requirement for this process.
  • Use your customers' money to finance all of the growth in your business.
  • Getting new customers and making sales will never be the thing that is limiting your company.

Watch the video on YouTube:
How to get unlimited funding to build your business in 30 days... - YouTube

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