Alex Hormozi

And so what do I mean the difference between, I'm gonna get a little bit softwarey, but Logo churn versus revenue?

So revenue retention is if I have 10 customers that pay me $10 a month, that means that I'm making $100 a month.

A year later, am I still making $100 a month from those initial customers?

Now, I might have lost a few of those customers, but if some of those other customers spend more money, because we build our software in such a way that we have the opportunity for them to spend more, if we have more than $100 from those original customers, we have 100% or greater revenue retention.

That's the game you want to be in.

And that works the same for consumers as it does for enterprise sales, for B2B.

So all the way through.

Now, it tends to be easier to have stick on enterprise customers because they're willing to incur more costs.

Switching costs are higher for them.

Whereas consumers, it's harder.

But there's a whole hell of a lot of them.

So how do you win in software or in SaaS?

Number one, you have to obsess over product quality and customer feedback.

You have to be absolutely customer obsessed.

So at school, for example, so we own a software platform, we have 20 million users, right?

So kind of, you know, kind of legit.

People think it's a big deal.

So in order to do that, you have to be absolutely militant.

And one of the interesting things about this is that it's not that you listen to the customers, that you give customers everything they want, because the customers will hang themselves with their own requests.

And so if you just keep feature adding, feature adding, feature adding, you end up building a Frankenstein that no one can make their way through.