Alex Hormozi

Very high burn in terms of cash before you start having money.

And even when you do make money, you're still burning more than you're making because...

because of how software works, because of its infinite scale, the vast majority of people are not willing to pay a lot of money for it.

So if you think about how much even enterprise software costs, it might cost a few hundred thousand dollars a year, but compared to the expenses that an enterprise actually spends on other costs, it's nothing, right?

It feels high to the software company, but it's nothing compared to how much the enterprise actually spends.

And on the consumer level, the amount that you have to do to get $9 a month from a person, speaking from experience,

Now, the advantage is it can handle that volume

but it sure as hell is hard to get 100 million customers, right?

And so it can become very emotionally difficult for this long period of time where it basically never makes money.

And so then you have dependency on VCs, or you have to just watch your bank account go down month after month after month in order to maintain as much equity as you can so you don't dilute yourself to the point where finally it does succeed and you own 4% of the business.

And there's more scar stories behind that than I can possibly tell you.

So what's the problem that you have to solve?

Number one is you have to survive the early years before product market fit.

This is the biggest issue.

And this is where marketers basically just can't do software.

It's just like, it's incredibly hard for them to do because they want to market, they want to sell it.

But in order for this thing to actually become big, you have to make sure that people want it.

And

keep wanting it.

It has to stick.