You Will Stay Poor If You Don't Understand These Equations | Ep 527

It’s all about understanding the formulas. Today, Alex (@AlexHormozi) talks about the importance of understanding the two fundamental equations of business to make informed decisions. He also emphasizes the need to know the number of new sales per month and lifetime gross profit per customer.

Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned on his path from $100M to $1B in net worth.

Timestamps:

(1:05) - Fundamental equation: number of new sales or sales velocity

(2:38) - How to calculate lifetime gross profit per customer

(7:13) - Equilibrium point is where we level out

(9:08) - Cost to acquire a customer

(10:10) - 3:1 LTV to cap ratio or greater is necessary for growth

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(This episode is a re-run. Original airdate was November 16, 2021)