Alex Hormozi

And so you have to be incredibly diligent in terms of what features we really think are gonna be worth the cost of the user experience that we're adding in complexity.

And so complexity is the antithesis of elegance, right?

And so when you add more stuff, it almost always adds complexity unless you have exceptional product design and that you can only do with just tons of loops of iteration of thinking time and intelligence and feedback.

to make it it's kind of like standing off the edges um and it's the tiny little details that make software work so two companies can have the same core problem that they're solving but the level of quality that they can approach it with is so much greater um with that so

Next one is in terms of the way you went in this.

So you have to retain the customers.

The next one is you have to have some sort of viral component to the business.

We want to have a loop to this so that when we bring one customer, they bring 1.1, right?

They get an extra customer in the door for us because at the ultimate scale, especially with software that tends to be lower priced, it becomes very difficult to use paid ads as your primary way of requiring customers.

And so you can absolutely use paid ads as a way to get customers, but you need to have some viral loop that over time can continually compound down the cost of acquisition.

And so like Facebook would have had to spend gazillions of dollars.

They spent for sure a lot of money to acquire customers, but the key component that they knew is that if they could spend to acquire one, they could get two more or whatever their viral coefficient was.

to come afterwards.

So it takes that cost and then divides it by three because two other customers, but then those customers get two other customers and it continues to proliferate, right?

ChatGPT was able to get to a million users in a week because of virality, because of strong word of mouth.

The other way that I would note is that software is a quality over quantity game when it comes to talent.

There absolutely are 10x and 100x engineers.

They also tend to cost 10 or 100x the price.

And so you have to be willing to spend a huge amount of money for way better talent.

The difficulty is if you've never built software before to have the perspective from which to make the judgment on that talent.