Alex Hormozi Reveals the RISKS of Info Businesses

0:00Information is really high margins. Nothing wrong with it. Long term, you want to transition as quickly as you can to a service-based business. Again, this is if you want enterprise value. Like if you sell if you make a new course every year and you sell it, you don't care someone copies it cuz you create a new one every year. Which is fine. And I'm like no judgement. I'm optimizing towards how do I create an asset that's sellable that is valuable to other people who might want to buy it.

0:26If that's the case, then you need to build other things around it and think, "Okay, what are all the consumables of my business?" So it's like community is consumable, accountability is consumable, feedback is consumable. As in like if I use it, I want more of it afterwards. A course video, if I use the course video and I learn it, I don't need to use it again. Right? Like by and large. And so information has diminishing value over time really quickly. Whereas accountability, feedback, community retain value month over month over month. People still want each of those things this month as much as they did last month, which means that they're willing to exchange some amount of money in order to keep them. And if you have this thing that's valuable information, then use that valuable thing as your lead magnet to attract people and then have all these things which then become the next natural needs, which is like, "Man, I wish I could make money doing this. Man, I wish I could get a job doing this. Man, I wish I could get better at doing this." And all of those are offshoots of services that you could offer. I use sales as a simple one cuz everyone does it. If I had a sales coaching business, I would not do that.

1:30I would give away all the information and then what I would sell is the implementation of let me listen to your calls, let me give you feedback, let me give you real time like I'll listen in while you're on the phone and give you like say this instead. Like you would be it would be the service associated with that. So I would demonstrate expertise expertise, generate demand, gain trust, [music] help people ahead of time, and then when they want to take it to the next level, I could flip that into a recruiting business, I could flip that into I could still help them. I could flip that into done Like there's a lot of angles you can do that without actually selling the information. I love the position of taking what other people charge for and giving it away for free and making it better. Like I love that position. And so like if you have a business model that's predicated on anything and then a competitor is able to give away what you sell and make it better for free, you're [music] If you like this video and you're business owner who wants to break through your current revenue ceiling, I distilled every lesson from scaling 10 businesses past 10 million and three businesses past 100 million into a completely free scaling road map that I've used to go from zero to one, zero to 10, and zero to 100 plus. And so you can click here and you can check it out.

2:41Again, absolutely free. And since you're business owner, I appreciate you and enjoy.