Alex Hormozi

You can notice that it's almost a straight line up.

And so this business makes money quickly.

And then it hits a hard stop or becomes very difficult to make it make more money from there.

So why is it shaped this way?

So one of the most difficult parts about information or education-related businesses is that there's low retention, right?

If you do a good job educating someone, they graduate.

Your high school isn't like, oh my God, I can't believe we didn't retain that kid.

The goal is not to retain them, right?

The goal is to actually graduate them.

Now, what's the continuity program for education?

Well, you go four years of high school, you go four years of college, and you have a master's degree, then you have a PhD, then you have a double PhD.

So they definitely have an ascension program.

But the point, ideally, is that you provide more value than the cost of the education.

And then as a result, this person now has a skill that is more valuable in the workplace, in the competitive environment.

That's the point.

So the reason that education can make so much money so quickly is that if you have a valuable skill, and that skill is unique and difficult to acquire in the marketplace, then you can charge a big amount of money for something that actually costs you very little.

It costs you a lot of money

and time to acquire the skill one time for you, but then you get to duplicate that skill through the education over and over again through other people.

And so I'll just use simple math here.

If I can teach someone a skill that takes them from $40,000 a year to $100,000 a year, many people would pay lots of money to add $60,000 of income per year for the rest of their life.