Alex Hormozi: How To Make $5 Million in 8 Weeks

Last updated: Jun 18, 2023

The video discusses a specific process to double the profit of a $5 million business in 8 weeks, using the example of a hypothetical business that teaches people how to grow their cabs, and emphasizes the importance of pricing as the strongest lever for increasing profits.

This video by Alex Hormozi was published on Sep 6, 2022.
Video length: 06:43.

In this video, Alex Hormozi explains how he doubled the profit of a $5 million business in less than 8 weeks by following a specific process.

He presents a hypothetical example of a business with 100 customers paying $100 a month and $8,000 a month in costs, and offers three options to double the business: double the number of customers, double the price, or double how long they stay. Hormozi explains that doubling the lifetime growth profit per customer is the most profitable option, and suggests that pricing is the strongest lever for increasing profits.

He then walks through the steps of surveying the existing audience and testing different price points to find the perfect point of profit.

  • The video discusses a specific process to double the profit of a $5 million business in 8 weeks.
  • The process involves choosing one of three wishes from a business genie to double the business in one of three ways: double the amount of customers, double the price, or double how long they stay.
  • The strongest lever for increasing profits is pricing.
  • The first step in raising the price is to survey the existing audience using the Van Westendorp pricing survey.
  • If the test is successful, the business can roll out the new price to all customers.

How To Make $5 Million in 8 Weeks - YouTube

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Introduction

  • The video discusses a specific process to double the profit of a $5 million business in 8 weeks.
  • The process involves choosing one of three wishes from a business genie to double the business in one of three ways: double the amount of customers, double the price, or double how long they stay.
  • The strongest lever for increasing profits is pricing.
  • The video will walk through a hypothetical example of a cabs business to demonstrate the process.
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Choosing a Wish

  • The business genie offers three wishes to double the business: double the amount of customers, double the price, or double how long they stay.
  • Doubling the amount of customers doubles the top line revenue and profit, but also doubles the cost.
  • Doubling how long they stay increases the lifetime value of the customer and can be more profitable in the long run.
  • Doubling the price can increase profit potential on a customer and can be more profitable than doubling the amount of customers.
  • Raising the price is the strongest lever for increasing profits.
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Raising the Price

  • The first step in raising the price is to survey the existing audience using the Van Westendorp pricing survey.
  • The survey helps to find out more about the customer and their demographics.
  • The survey also asks questions about pricing to determine the optimal price point.
  • After analyzing the survey results, the business can determine the optimal price point and test it with a small group of customers.
  • If the test is successful, the business can roll out the new price to all customers.
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How To Make $5 Million in 8 Weeks - YouTube

Conclusion

  • The process to double the profit of a $5 million business in 8 weeks involves choosing one of three wishes from a business genie.
  • The strongest lever for increasing profits is pricing.
  • The first step in raising the price is to survey the existing audience using the Van Westendorp pricing survey.
  • If the test is successful, the business can roll out the new price to all customers.
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Process to Double Profit in 8 Weeks

  • Identify the most valuable aspect of your product or service through customer feedback.
  • Communicate the value internally to your team and externally to your customers.
  • Set a new, higher price point for the most valuable aspect of your product or service.
  • Expect a decrease in sales volume initially, but let the new price settle and do the math to see increased profits.
  • Consider the possibility of even more sales due to the perceived value of the product or service at the higher price point.
  • Watch the free video on pricing at Acquisition.com for more information.

Watch the video on YouTube:
How To Make $5 Million in 8 Weeks - YouTube

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