Alex Hormozi

Which one would you rather have?

In my opinion, most people would rather have a smaller amount of a good thing than a larger amount of a bad thing.

To me, this is what the vast majority of businesses choose to do by saying, oh, I'm gonna hire this person, I'm gonna train them for five hours, and then I'm gonna sell the services at the same price that I sell for myself for this person.

So then they get this very diluted thing.

Now what happens here?

Your reputation starts to take a hit.

And so you started getting word of mouth and that stops happening because you're not teaching as well because they're not teaching as well because they're not as good as you.

On the other hand, these businesses where the main educator also learned some skills with promotion, those people, because they just continue to dilute down access, the rate of you diluting down access is almost always proportional with how good you are.

And so if you have the best milk in the world, you can actually give that tiny shot, the tiniest shot, and it's still good and better than one guy who's mediocre giving 100% of his attention.

And so one of the interesting things about this model is that with technology, technology has democratized, has made it even access for people to get educated.

And when you have democratized access, you often will have consolidated production, meaning if you're the best in the world, you get to do it for everyone.

So what sucks?

Easy to compete.

So it's double-edged sword, right?

Many competitors.

You also create your competition when you educate them.

Retention is almost nothing.

And growth relies on almost constant marketing.

And then you always have a little bit of reputational risk if you're not good at ops, which is a totally different skill set than education, where you can actually scale the other components of the business.

And so reputation can take it in.