Alex Hormozi

And so how do we actually win in the model?

One is we split out the value to make sure that we're charging appropriately for the one-time thing versus the recurring thing.

We add the consumable components to the recurring elements of the business.

We want to use the cash engine that we get from the one-time purchases to fund one acquisition.

And most importantly, and this is the biggest one of all, brand.

And you might notice this as a recurring theme here, but how can you defend against the low barrier entry, you creating your competition?

How do you defend against that?

And in all of these models, I think the one that is the most impacted by, it's tough to even say that because they're all impacted by brand.

This one also is impacted by brand a lot, is education, right?

Why are people willing to pay to go and take calculus at Harvard versus calculus at CCBC?

and pay $2,000 versus $200,000, why are they willing to pay that difference?

Because of the brand, right?

That is why.

And so that brand association also becomes another value add to the person because that brand actually approximates for a decrease in risk and increase in likelihood that they will get the education that they ultimately want.

Now, Harvard, because it becomes a stamp in and of itself, it's a little bit different.

But that is the ultimate direction that you want to go in, is that when your brand is so good that when people know that they have been educated by you, that that actually confers value to them for whatever they're trying to do next.

So you might have heard of Cordon Bleu, which is a...

cooking school, right?

And if someone's like, oh, I'm a Cordon Bleu chef, then you're like, oh, well, there you go.

Cordon Bleu or whatever they say.