The Game with Alex Hormozi
Throwback: Billionaire Recession Advice: Sell to the Rich | Ep 852
14 Mar 2025
Wanna scale your business? Click here.Welcome to The Game w/ Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned and will learn on his path from $100M to $1B in net worth.Follow Alex Hormozi’s Socials:LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition Mentioned in this episode:Get access to the free $100M Scaling Roadmap at www.acquisition.com/roadmap
Full Episode
Hey guys, welcome back to the game. Today's a throwback episode where I go over a handful of things specifically around pricing and the downstream effects it has on the business in terms of the customers that you bring in and what kind of team you can attract as a result, which can spin the long-term wheel for a sustainable competitive advantage.
And I think that there's a little bit of nuance that I dive into in more detail here around the different viewpoints between rich and poor people and how that can have huge cascading effects in the business. Enjoy. When people are poor, they tend to sell out of their own wallet. They sell using their perception of what money is.
And so they think something's expensive and therefore they don't want to be offensive to whoever they're selling to. But what that is, is fundamentally a selfish viewpoint because you're never putting yourself in the other person's shoes and the other person might have all the money in the world and just want to solve a specific problem.
And so what I want to walk through today is why charging more has five significant benefits to your customers that actually make you a better service provider by charging more money. And it'll give you five specific benefits around your actual business itself that'll make your business more successful. And if you don't know who I am, my name is Alex Mosey. I own acquisition.com.
We run a portfolio of companies that does over $200 million a year. And I make these because I want you to make lots and lots of money and then hopefully someday partner with us. Beyond that, it's just to make you more money. All right, so... Have you ever seen this meme that's like, the customer says, well, what exactly am I gonna be getting for $50?
And then it has the rich customer who's like, wire a cent, let me know what next steps are, right? It's this wildly different viewpoint that poor people have versus rich people. And at the same time, I made three tweets in a row that each one of them massively outperformed. And it was so weird to me that this was like a novel concept. And I said, solve rich people problems, they pay better.
And if you solve rich people problems, they will make you one of them. And when you solve rich people problems, you get to charge rich people prices. And so it's this interesting concept that a lot of people miss out on. And part of the reason that a $50 person is saying, well, what exactly am I be getting?
If somebody's got $100 in their bank account, you're asking for 50% of their net worth, right? For them, it's a very important decision, but it's also completely ridiculous. Unfortunately, this still might be half the population. It doesn't mean necessarily you should sell to them. To the same degree, that $50,000 might have been less than 1% of that other person's net worth.
So they just didn't even care. It would have been the equivalent of trying to sell a dollar to that person who's $100 in their bank account, right? And the thing is, is that you can only go to zero, right? Like you'd only be so poor, right? But you can be infinitely rich. And so your upside is uncapped, but your downside is zero.
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