Alex Hormozi: How to MAKE MILLIONS of Dollars in a SERVICE BASED Business...

Last updated: Jun 15, 2023

The video is about how to make millions of dollars in a service-based business by adding value through different categories such as products, services, and access.

This video by Alex Hormozi was published on Sep 24, 2021.
Video length: 08:29.

In this video, Alex Hormozi, CEO of Acquisition.com, discusses the three categories of products and services that businesses can offer:

products, services, and access. He explains how adding a service or access component to a product can increase its value and differentiate it from competitors. He also notes that service businesses can be difficult to scale due to the need to scale culture, training, and onboarding.

Hormozi suggests that businesses should try to add multiple categories to increase their enterprise value.

  • Alex Hormozi is an entrepreneur, investor, and CEO of Acquisition.com.
  • Businesses can be categorized into products, services, and access.
  • Adding a service component to a product or a digital/physical product to a service can enhance its value.
  • Adding value through multiple categories can help businesses become a monopoly and have monopoly prices.
  • Digital access has almost 100% margins, making it a highly profitable business model.

How to MAKE MILLIONS of Dollars in a SERVICE BASED Business... - YouTube

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Introduction

  • Alex Hormozi is an entrepreneur, investor, and CEO of Acquisition.com.
  • He wants to show how to make a tremendous amount of money in a service business.
  • He owns several businesses, including a publishing business, a photography business, a certification business, a gym licensing business, a cell phone business, and a software company.
  • He categorizes businesses into three types: products, services, and access.
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Products, Services, and Access

  • Products are physical or digital goods that customers buy, such as supplements, media, or software.
  • Services are when people do things for other people, such as a massage or a marketing agency.
  • Access is when customers buy physical or digital access to someone or something, such as concert tickets or a virtual event.
  • Adding a service component to a product can make it more valuable and differentiate it from competitors.
  • Adding a digital or physical product to a service can also enhance its value.
  • Digital access has almost 100% margins, making it a highly profitable business model.
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Adding Value

  • The goal is to become so different from everyone else in the marketplace that people have to consider you as your own standalone business.
  • Adding value through different categories can help businesses become a monopoly and have monopoly prices.
  • Pairing concepts, such as adding digital products to physical products, can enhance value and differentiate a business from competitors.
  • Adding access, such as digital access, can be highly profitable due to its high margins.
  • Increasing enterprise value involves figuring out how to add multiple categories of value to a business.
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How to MAKE MILLIONS of Dollars in a SERVICE BASED Business... - YouTube

Conclusion

  • Businesses can add value through products, services, and access.
  • Adding value through multiple categories can help businesses become a monopoly and have monopoly prices.
  • Digital access has almost 100% margins, making it a highly profitable business model.
  • Increasing enterprise value involves figuring out how to add multiple categories of value to a business.
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Adding Value through Access

  • Sell a more individualized, higher touch version of your solution.
  • Offer a small group experience for a big outcome that they're all going to want.
  • Guarantee that they'll get the outcome or you'll keep working with them for free.
  • Have clients prepay the entire period of time for access.
  • Don't offer any kind of discount for this type of offer.
  • Use access to create implied urgency and applied scarcity with a very high ticket premium.
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Maintaining Goodwill and Pent-Up Demand

  • Maintain the vast majority of demand while still selling out.
  • Try to maintain goodwill and multiply it rather than liquidating it all the time.
  • Feed off the top and grow the goodwill of the base.
  • Keep some goodwill kept up and use access to liquidate it in a very controlled burn manner.
  • Have implied urgency and applied scarcity with a very high ticket premium.
  • Get some of the best customers to do this with you and get great testimonials and outcomes as a result.

Watch the video on YouTube:
How to MAKE MILLIONS of Dollars in a SERVICE BASED Business... - YouTube

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