Oct 29 • Growth 📈
💡 If Alex Hormozi Sat Beside You for an Hour - Could You Show Him this Math?⬇️
Hey Guys,
When Alex says “show me the math,” he’s talking about the unit economics that prove your business deserves to scale. This is what Wayne Shirreffs looks at in the builders club too.
Here’s the math he expects you to know — cold:
The 7 Numbers Hormozi Cares About
1. CAC – Cost to Acquire a Customer
How much you spend to get one new paying customer.
Example: You spend $500 on ads → get 5 customers → CAC = $100.
2. LTV – Lifetime Value
How much revenue you collect from a customer before they churn.
Example: $100/month x 12 months = $1,200 LTV.
3. Payback Period
How fast you recover your CAC.
Example: If you earn $100 profit in month one and CAC = $100 → 1-month payback.
Shorter payback = faster compounding = scalable business.
4. Gross Profit Margin
Your take-home after direct delivery costs (not including marketing).
Example: $1,000 sale – $400 delivery = 60% gross margin.
Hormozi says “if your margin sucks, your marketing doesn’t matter.”
5. Conversion Rate
How many leads turn into buyers.
Example: 100 leads → 10 sales = 10% conversion.
This tells him if your offer and funnel are dialed in.
6. Average Order Value (AOV)
How much the average customer spends per transaction.
Upsells, bundles, and pricing tweaks all raise this number.
7. Retention / Churn
How long people stay before quitting.
High churn = leaky bucket.
Low churn = wealth compounding.
8. The Core Equation:
LTV / CAC = Scale Potential
If LTV ÷ CAC < 1 → You’re losing money.
If LTV ÷ CAC = 3 → You’re stable.
If LTV ÷ CAC = 5+ → You’re ready to pour gas on the fire.
That’s the math Alex wants.
That’s how he spots which lever to pull — and which business to back. He uses the $1M Equations set. Want $1M Calculator? Comment "Cal" and I'll share with you.
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💡 If Alex Hormozi Sat Beside You for an Hour - Could You Show Him this Math?⬇️
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