Alex Hormozi explains that to grow a big business, you need a high ratio of money earned to money spent on ads. He shows that a 30 to 1 ratio is great, while 100 to 1 is amazing for profit.
- π° Aim for high LTV to CAC ratios.
- - π 30:1 ratio indicates extraordinary business success.
- - π§ Master advertising for optimal returns.
Achieving Wealth Through Strategic Business Ratios
In the video "How I've Made All of My Wealth In Business" from Alex Hormozi, the only way that you can really grow very big is to have a 3 to 1 LTV to CAC ratio. A 10 to 1 ratio is acceptable, indicating that we have a business that's profitable. However, where the real money printing happens is with ratios of 30, 50, or even 100 to 1. I have experienced this multiple times; all of my wealth has been built on those four significant occasions. When I had my gym, we achieved a 30 to 1 ratio. With Gym Launch, when we started, we initially reached a 100 to 1 ratio. Currently, we have maintained a 100 to 1 ratio. I would say that workshops are also performing at very high ratios. Unless I reach these levels, I just know that this will function like a normal business; it won't be extraordinary. You simply need to have insane returns on advertising, which either stems from being exceptional at advertising or, more realistically, having an exceptionally high LTV.
To grow your business massively, focus on achieving a high LTV to CAC ratio. This focus leads to profits that multiply your wealth exponentially. With the right strategy, your returns will skyrocket.
In the insightful video, Alex Hormozi delves into achieving exponential growth by focusing on the key relationship between customer lifetime value and customer acquisition cost. He illustrates how businesses can attain wealth through an exceptional LTV to CAC ratio, sharing practical examples from his own ventures. The strategies discussed can guide you in identifying and optimizing your business's operational metrics, which are essential for reaching a 30 to 1 wealth ratio. Consider how you can implement these insights into your business model for sustainable success.
I encourage you to reflect on how you might apply these concepts to your own business. Share your thoughts in 25 to 100 words in the comment section below. Donβt forget to reply to two comments and like three others that resonate with you!
High returns help businesses grow and succeed beyond dreams. π±