Alex Hormozi

And so as a result of all the businesses I just described, the fewest number of businesses are here, are in software.

And it's because the barriers to entry are higher.

Now, vibe coding, things like that have made it easier.

More people are coding now.

Some engineers can, there's coding bootcamps plus vibe coding where people can do components of their job with it.

And so it's becoming more democratized.

That being said, it's still between the other three, way fewer people here compared to the other ones.

But it is shaped this way because once you get a product more fit, you can go to the sky because it is the most scalable of all four business models once you have it.

Again, that's the hard part.

So what's the great part about it?

Infinite scale, incredibly high gross margins once you have it.

If done well, if done well,

Very sticky revenue.

The vast majority of people who build software don't have sticky revenue.

But if done well, can be incredibly sticky because it gets integrated into someone's workflow.

And you can have huge enterprise value long term.

So why do software companies have such high valuations?

One person can exit it because somebody else can own the product and the customer can have the exact same experience.

So there's almost no risk at point of sale if all the other metrics of the business are there.

Number one.