Why I Don't Sell Courses Ep 331

Summary Notes


Alex Hormozi, founder of acquisition.com, critiques the traditional education system for its high costs and low value, advocating for skill-based learning as a more effective alternative. He outlines his vision for education, emphasizing the need for specialized, high-value skills that can be directly exchanged in the marketplace. Hormozi shares his success in selling seven businesses and growing his company portfolio to $85 million in annual revenue. He reveals his philanthropic approach, donating significant personal income and planning to offer his business acumen for free to empower others to build their wealth. Hormozi announces the release of a series of courses and a book, "100 Million Dollar Offers," aiming to equip entrepreneurs with the tools to create compelling offers, generate leads, and scale their businesses without the need for external capital.

Summary Notes

Broken Education System

  • Alex Ramosi expresses his belief that the current education system is fundamentally flawed.
  • He questions the value of expensive education that does not significantly improve job prospects.
  • Alex criticizes the government's role in perpetuating student debt, which cannot be discharged even in extreme circumstances.
  • He finds it unreasonable to burden 18-year-olds with such a huge, inescapable financial responsibility.

"I believe the education system is broken and many of you probably agree with me, right? Who wants to pay 50,000, hundred thousand, $200,000 a year, right. For an education that adds zero value."

This quote reveals Alex's stance that the high cost of education is not justified by the value it provides to students.

"And not only that, because it's government subsidized, they don't let you get out of the debt, which is insane to me. In what world would you give an 18 year old $200,000? They can never get out of."

Alex criticizes the structure of student loans and the inability to discharge them, highlighting the financial trap it creates for young adults.

The Rise of the Guru Space

  • The demand for high-value skills remains constant, but the education system fails to provide these skills.
  • People have an inherent desire to work and exchange their skills for money.
  • The lack of necessary skills leads people to continue seeking education, which creates a demand that is not being met.
  • Alex attributes the growth of the guru industry to the unsatisfied demand for practical skills.

"The reason I believe that this explosion of the guru space has happened over the last 1015 years is because the demand for high value skills has not changed."

Alex suggests that the guru industry has grown due to the unmet demand for valuable skills that the traditional education system fails to provide.

Technology's Impact on Education

  • Alex Ramosi quotes Naval Ravikant to explain how technology affects consumption and production.
  • He believes that technology allows the best in the world to serve a global audience.
  • Alex predicts that education will become more fragmented, moving away from a one-size-fits-all approach.

"And I'll quote Naval Ravikant because I like this quote a lot, technology democratizes consumption and consolidates production."

Alex uses Naval's quote to explain how technology enables the best producers to reach a wider audience, which he believes will also apply to education.

Acquisition.com's Mission

  • Alex Ramosi owns Acquisition.com, a portfolio of companies generating substantial annual revenue.
  • He shares his experience and skills gained from growing Acquisition.com and selling multiple businesses.
  • Acquisition.com aims to provide valuable skills and knowledge, challenging the traditional education model.
  • Alex hints at a valuable offering at the end of the discussion that he believes will be more beneficial than many online resources.

"So my name is Alex Ramosi. For those of you who are new to the channel, I own acquisition.com. It's a portfolio of companies that does about $85 million a year in revenue."

This quote introduces Alex's business background and the success of his company, setting the stage for his credibility in offering an alternative to traditional education.

"The reason that I do acquisition.com thesis behind it is that I believe the education system is broken."

Alex ties the mission of Acquisition.com to his belief in the shortcomings of the current education system, positioning his company as a solution to this problem.

Specialization in Education

  • The education system is increasingly focusing on teaching niche, high-value skills.
  • These skills are specific to certain professions and are directly applicable in the marketplace.
  • Learning such skills enables individuals to earn a living and become self-sufficient.

They'll learn how to become hairdressers. They'll learn how to become plumbers. They'll learn how to run gyms. They'll learn how to be online trainers. They'll learn how to be life coaches.

This quote illustrates the variety of specialized skills that are being taught, highlighting the trend towards vocational training in education.

Philanthropy and Skill Sharing

  • Alex Ramosi and his wife donate a significant portion of their income to charity.
  • They have committed to donating the majority of their wealth to charity after their passing.
  • Alex believes in sharing his skills as a form of philanthropy that has greater leverage and scale than just giving money.

And so my goal with acquisition.com is to give the thing that I have that is more valuable than money, which for those of you who do follow our channel, my wife and I donate about a million dollars a year right now of a personal income.

Alex discusses his philanthropic efforts and introduces his goal to share valuable skills through his platform, acquisition.com.

Transfer of Skills and Business Growth

  • Alex's aim is to transfer his business skills to others.
  • He wants to help people grow their businesses to multi-million dollar levels.
  • He offers to invest in and help grow businesses that reach a certain scale.

And so the thing is that as much as I can give money, the thing that I can give at far more leverage and at far more scale is the skills that we have acquired in order to create that money.

Alex emphasizes the importance of skill transfer over monetary donations, suggesting that teaching skills can have a more significant impact.

Free Educational Resources

  • Alex is releasing a series of courses, books, and audiobooks for free.
  • These resources come with downloads like checklists and standard operating procedures (SOPs) used in his businesses.
  • The content is available without any requirement to opt-in or make a purchase.

And today marks a very important announcement that I have for everyone on the channel. Mosey Nation. Love you all. And it's for you guys.

Alex announces the release of free educational materials for his audience, demonstrating his commitment to sharing knowledge without barriers.

Solving Non-Monetary Problems

  • Alex acknowledges that money only solves financial issues.
  • He has reached a point where his remaining problems cannot be solved with money.
  • This realization has influenced his decision to provide free educational content.

And this is why I do this for free, is because, candidly, I have gotten to a point where money only solves money problems. And I have solved all of my money problems.

Alex explains his rationale for offering free resources, linking it to his personal experience with the limitations of money in solving all types of problems.

Book Promotion and Community Contribution

  • Alex has authored a book titled "100 Million Dollar Offers."
  • The book is available on Amazon and has received positive reviews.
  • He promotes the book as a valuable resource for the community and as a means to establish a connection for future partnerships.

Hey, guys, real quick, if you're new to the podcast, I have a book on Amazon. It's called 100 million dollar offers that over 8005 star reviews.

In this quote, Alex promotes his book, highlighting its success and the effort put into creating it as a gift to the community.

Purpose and Philosophy Behind Giving and Teaching

  • Alex Ramosi expresses the desire to give back and share his acquired skills and beliefs.
  • Believes that anyone can acquire the skills, traits, and beliefs that led to his success.
  • He aims to make his knowledge available to all those with the desire to learn.
  • The motivation for writing a book and creating courses is to share and enjoy the process of giving.
  • He acknowledges that wealth will eventually dissipate, and legacies will be forgotten, so he focuses on enjoying the journey with others.

"Problems that money can't solve, which for me are meaning, meaning in life to me."

This quote emphasizes that Alex Ramosi finds meaning in life through solving problems that cannot be addressed by money alone.

"I want to make that available to everyone and anyone who has that desire."

Alex Ramosi expresses his intention to share his knowledge widely, not restricting access to those who are eager to learn.

"I am your number one fan. I'm rooting for you more than you can imagine."

He conveys a deep sense of support and encouragement for his audience, highlighting his commitment to their success.

"All of the money and wealth that our companies will amass will eventually get scattered to the wind and the legacy that I will leave will eventually be forgotten."

Alex Ramosi acknowledges the impermanence of wealth and legacy, underlining the importance of enjoying the present moment.

Commitment to Quality and Impact

  • Alex Ramosi is focused on releasing courses and books only when they meet high standards of quality.
  • The goal is to make each new release better than the last, ensuring continuous improvement.
  • He emphasizes the significant difference between good, great, and exceptional work.
  • The process of creating quality content involves time, refinement, and simplification to ensure knowledge is transferred effectively and engagingly.

"The litmus test for when I will release it is when it is good enough to be better than the thing that you just had."

This quote sets the standard for releasing new material, which is based on surpassing previous offerings in quality.

"The difference between good and great is vast. And the difference between great and exceptional or remarkable is even wider."

Alex Ramosi highlights the substantial effort required to transition from good to great, and even more so from great to exceptional.

"It takes time to have several coats of paint on work and let it sit and let it marinate and let it simplify and distill."

The quote describes the meticulous process of refining work to ensure it is of the highest quality before being shared with others.

Course Offerings and Business Strategy

  • The "100 million dollar offers" course is now live, teaching how to make compelling offers.
  • The course addresses common sales struggles by improving the quality of the offer.
  • Courses are taught in sequence to align with the process of improving and building a business.
  • Upcoming courses will cover lead generation and growth without outside capital.
  • The concept of "client finance acquisition" is introduced, which involves using marketplace revenue to fund business growth.

"The courses that will be coming out are first, the one that is now live is the 100 million dollar offers course."

Alex Ramosi introduces the first course, which focuses on creating irresistible offers to improve sales and lead acquisition.

"How to make offers so good, people feel stupid saying no."

This quote encapsulates the objective of the course—to create offers that are so attractive that potential customers would find it difficult to decline.

"The second course and book will be around lead generation."

The quote indicates the subject of the next course, which will deal with strategies for generating leads once a compelling offer is in place.

"We've been able to grow each of these businesses that we have without any outside capital because we use a process called client finance acquisition."

Alex Ramosi explains a business growth strategy that relies on using revenue generated from clients to fund further growth, reducing the need for external financing.

Acquisition Strategy

  • Alex Ramosi emphasizes the importance of having sufficient days of cash to reinvest in acquisition.
  • Acquisition is not a bottleneck for the company.
  • The company has a strategy to script and choreograph the sales process.

"So we can continue to reinvest in acquisition. So the acquisition is no longer a bottleneck..."

This quote highlights the importance of financial liquidity in enabling ongoing investment in acquiring new customers or assets, and how removing constraints in the acquisition process can facilitate growth.

Sales Process

  • Alex Ramosi plans to show how to script the sales process.
  • There will be a book focused on the sales process detailing the choreography and wording.

"All right, so I'll show you how to script the sales process, choreograph the process and the words and all that kind of stuff. That'll be the next book."

This quote indicates that Alex Ramosi intends to produce a book with detailed instructions on structuring the sales process, implying a methodical approach to sales that can be replicated and taught.

Scaling Sales Teams

  • The subsequent book will address scaling sales teams, which includes recruiting, compensation, management, and training.
  • Scaling teams is essential for building large enterprises.

"The book after that be scaling sales teams, because that's a whole nother skill, is scaling the actual team and recruiting and compensation and management and training and all that stuff."

Alex Ramosi suggests that the complexities of expanding a sales team require a separate set of skills and considerations, which he plans to address in another book, underscoring the significance of human resources in growth.

Profit Maximization and Operational Efficiency

  • Strategies for increasing lifetime gross profit per customer will be covered.
  • Operational efficiency is a key factor in maximizing profit.
  • The back end (profit per customer) informs the front end (acquisition spending).

"After that will go into pricing and increasing lifetime gross profit per customer. So how do you actually do that in a way that is operationally efficient?"

Alex Ramosi introduces the concept of maximizing the profit obtained from each customer over their lifetime with the company, which is crucial for scaling and operational efficiency.

Marketing vs. Product Importance

  • The product is the primary determinant of a company's success.
  • Marketing can lead to short-term gains, but long-term success is built on customer relationships.
  • Value provided should exceed the price paid for sustained customer loyalty.

"But the guys who build fortunes learn how that once they make a sale, they make a sale to get a customer. They don't get customers to make sales."

Alex Ramosi contrasts short-term sales tactics with the long-term strategy of cultivating customer relationships, where the initial sale is the beginning of an ongoing business relationship.

Value and Customer Perception

  • Customers pay for the value they perceive in excess of the price.
  • A good deal is determined by the value, not the price.
  • Alex Ramosi aims to provide maximum value at no cost.

"People pay for the discrepancy between what they pay and what they get. That is the value. That is the customer surplus."

This quote explains the concept of customer surplus, where the perceived value of a product or service exceeds its price, leading to customer satisfaction and the perception of a good deal.

Alex Ramosi's Personal Motivation and Goals

  • Alex Ramosi enjoys reading, writing, and transferring skills to others.
  • His executive coach helped him find a purpose in educating entrepreneurs.
  • Acquisition.com was created to assist entrepreneurs at various stages.
  • The long-term goal includes investing in businesses that have reached a certain size.

"And so, anyways, mosey Nation, I do this stuff for you guys. I do this because, candidly, I enjoy it."

Alex Ramosi expresses his personal enjoyment and motivation in sharing knowledge and resources with entrepreneurs, which led to the creation of Acquisition.com and his educational initiatives.

Support for Entrepreneurs and Investment Opportunities

  • Alex Ramosi offers free resources to entrepreneurs.
  • There is a potential for investment in companies that have grown beyond $5 million in revenue.
  • The emphasis is on helping entrepreneurs reach new milestones.

"But otherwise, everything we have is free. Mosey Nation, I have nothing to sell. You keep being awesome, and I'll see you guys in the video wash."

Alex Ramosi assures his audience that his resources are freely available and that his ultimate goal is to support and possibly invest in growing businesses, reinforcing his commitment to the entrepreneurial community.

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