The ONLY 4 ways to MAKE BILLIONS as a service based business..

Want to SCALE your business? Go here: acquisition.com
Want to START a business? Go here: skool.com/games
If you’re new to my channel, my name is Alex Hormozi. I’m the founder and managing partner of Acquisition.com. It’s a family office, which is just a formal way of saying we invest our own money into companies. Our 10 portfolio companies bring in over $200,000,000+ per year. Our ownership stake varies between 20% and 100% of them. Given this is a YT channel, and anyone can claim anything, I’ll give you some stuff you can google to verify below.
How I got here…
21: Graduated Vanderbilt in 3 years Magna Cum Laude, and took a fancy consulting job.
23 yrs old: Left my fancy consulting job to start a business (a gym).
24 yrs old: Opened 5 gym locations.
26 yrs old: Closed down 6th gym. Lost everything.
26 yrs old: Got back to launching gyms (launched 33). Then, lost everything for a 2nd time.
26 yrs old: In desperation, started licensing model as a hail mary. It worked.
27 yrs old: "Gym Launch" does $3M profit the next 6 months. Then $17M profit next 12 months.
28 yrs old: Started Prestige Labs. $20M the first year.
29 yrs old: Launched ALAN, a software company for agencies to work leads for customers. Scaled to $1.7mmo within 6 months.
31 yrs old: Sold 75% of UseAlan to a strategic buyer in an all stock deal.
31 yrs old: Sold 66% of Gym Launch & Prestige Labs at $46.2M valuation in all-cash deal to American Pacific Group. (you can google it)
31 yrs old: Started our family office Acquisition.com. We invest and scale companies using the $42M in distributions we had taken + the cash from the $46.2M exit.
32 yrs old: Started making free content showing how we grow companies to make real business education accessible to everyone (and) to attract business owners to invest or scale their businesses.
34 yrs old: I became co-owner of Skool.com to help the many people who want to start a business online do so.
Today: Our portfolio now does $200M/yr between 10 companies. The largest doing $100M/yr the smallest doing $5M per year. Our ownership varies between 20% and 100% ownership of the companies. Many of them we invested in early and helped grow (which is how we make our money - not youtube videos).
To all the gladiators in the arena, we’re all in the middle of writing our own stories. The worse the monsters, the more epic the story.
You either get an epic outcome or an epic story. Both mean you win.
Keep crushing. May your desires be greater than your obstacles.
Never quit,
Alex
FULL DISCLOSURE
I make content to make money - just - on a longer time horizon than most. I want to build trust with business owners so we can find the best ones and help them scale. And if they’re awesome, write them a check and go all the way as partners.

[@SyntheticGrassLaunch]

This is 20 years of amazing business advice, well summarized in less than 15 minutes. This is so well done. Thanks for the video.

[@laszlopetergyarmati6279]

Analysed a lot of business models and this is the best non-bs summary one can come to. Clarity is hard for most, and you just nail it Alex. Fantastic videos.

[@yevheniyk5358]

Alex, I just want to take a moment to really thank you for doing this. This is highly educational and practical. I feel my brain slowly clicking into place when I watch you videos.

[@fgarciz]

Same

[@coolpeips]

This is like a free MBA course online. Thank you, Alex!

[@user-nj1zu2nf1x]

Lol not at all

[@darshandev1754]

@@user-nj1zu2nf1x what do you learn in an mba?

[@jamiehush]

Software engineer and engineering manager here. Can’t agree with Alex enough. I regularly dissuade non-technical people from starting a SaaS companies. I lead an engineering org for a SaaS company and even I wouldn’t ever want to start one from scratch. Long term money is excellent, but the upfront time/money risk is much higher than you think. Without a 50/50 solid tech cofounder it _will_ fail.

[@jimba6486]

What I love about your comment is that it makes sense. If you do Saas then people are buying are literally buying "Software as a Service", meaning you better have a great operational team to deliver that service. Software is complicated compared to most businesses. But is sounds cool to people you tell

[@arjunlagisetty]

Agreedddd

[@andreeav1082]

Do you even listen what he’a saying? This is literally what he said if you listen between 4:20-4:49 Jeez

[@roodnelcharles4248]

​@@andreeav1082do u understand his comment!! He totally agreed with what Alex said!! He commented in a way to validate what Alex was saying, not to correct! Read the comment again and u will understand

[@adzen97]

You guys are thinking too tight Saas is easy even for non technical if you don't have to develop it from scratch Got mine running for $1500

[@trevorlegwinski1378]

Alex, thanks for all the value you provide. Would be super valuable to expand on this video particularly around enterprise value creation, and valuation multiples.

[@MarketingHarry]

That was another value bomb from you. Every service business owner should watch!👌

[@chingching8820]

Such a great channel. The part about low build cost and low skill service just clicked for me. Thank you.

[@josephbrolly7232]

You have such deep knowledge Alex and a way to simply explain complicated info. Great vid

[@LearntoMakeHonestMoneyOnline]

I'm a simple man. When Alex speaks, I start making BILLIONS! 💪🔥

[@josquinribeirostorm4011]

I think it’s my 2nd or 3rd comment on KZbin in 5Y. Founder of a private company (1st category). 1M+ revenue. I bet next year 30M. Will reach out.

[@KlaasVictor]

This is so next level! You are raising the bar on KZbin!

[@zaklahfaia8924]

Thank you so much for all that you've done - I only hope I can return the favor sometime in the future. Thanks for being a good mentor and for guiding me on the right path. I will always be thankful to you. Not only have you been a fantastic mentor to me, but you have taught me how to mentor other people.

[@designsupplyfit]

The hallmark of amazing marketing/sales.

[@vdynmx]

He dosent read comments. It's a waste if his time. That's what he said

[@kevinrehn3259]

@@vdynmx doesn't matter. If you appreciate someone, tell them.

[@daymenhinrichs1965]

A lot of people are broke and I don’t want you to be one of them, but I don’t care what you have to say. Hire someone to like comment that will help you channel grow. If only he made a software company that generated generic comments in the comment section when people are praising him.

[@robertogilvie293]

Alex, I really enjoy your videos and think it is great that you are providing business development education. So many of the wealth experts online and in the bookstore are really in the education business. What do you think about a #3 and #4 business (think Adobe or Bloomberg or TastyWorks)?

[@bodmitri]

priceless for those of us that have 'service-based' businesses. Thanks Alex.

[@jactinta7367]

Thanks for putting in the time to educate young entrepreneurs and business owners!

[@AlexanderMoen]

Each one of these videos is on par, or better, than many of my MBA lectures. Love it

[@cryptogenik]

@Alex Hormozi - Protip - flip the switch on your camera to manual focus so you're camera isn't refocusing the entire time.👍

[@therenaissanceman441]

I'm an Ivy League MBA, they don't teach this.

[@georgeg2369]

This guy is seriously smart GOAT entrepreneur coach. 🙏

[@jiujitsuismyoutlet]

Alex this is the greatest content online about business and entrepreneurship. Thank you so much for what you do!

[@thisisme55555]

Thanks Alex!! You continually provide unmatched value in the most efficient delivery possible. Thank you for condensing decades of business experience and presenting it in the most digestible ways. I’ve reread your 100M book multiple times, and am now going through your channel and studying as if it were university. And finally I have found someone like you, who I aspire to be. I’ve opened my first small time hotel and and looking forward to opening my gyms and starting my supplement line in 1-3 years. I will contact you when I reach 3M in sales so we can work together and have a lift haha. Thanks again for everything!!! Tom

[@danielmcpherson9062]

How’s it going?

[@jayrodriguez333]

Thanks alex for this advice. It’s so helpful for someone with such grand ideas, but I know I should just start with the highest cashflow highest impact boring business model first then partner with the right person

[@CoffeeAndBusiness]

Man.. I run a remodeling business on the side. I don’t make much, but I outsource all the labor (I have a full time job myself).. the only thing I do is customer relations, quoting, invoicing, and paying contractors… I’m wondering if I should be doing something else if if I should improve this business somehow… idk what to do.

[@Rybo316lax01]

I’m in real estate. I own a wholesaling company and 100% it’s a private chain. I will continue it as such and expand to other others. That’s my model.

[@lpslancelot05]

I’m interested. I’d be open to connect. 10 years of experience with 5 units rented right now under management.

[@LucasJamesTech]

This guys giving out value like I just order an all American business Buffet!

[@financemadesimple]

Thank you alex! best Business Videos!

[@pacovasquezs4168]

What are your thoughts on business coaching for monthly retainers? Seems like these models are a better use of the skillset?

[@jayhoovy]

This is amazing! I make a lot of content that is about how creators can monetize/make through their business(es) as well - pumped to see others making stuff in the same space. Reminds me of a video I created before. :)

[@gabriellorenzo4228]

Hey Alex! Just finished reading your book "$100M Offers", what model would you recommend for a commercial cleaning business?

[@das7820]

Hey Alex, would really appreciate if you made one of these for a “product” based business

[@mandarambre1183]

Thanks for this amazing video. Does cleaning business service fall under any of these models?

[@SamJones1337]

You know this is outstanding content. I know someday you're going to have a big ask and I'm going to buy it because I've goten a lot of value from your stuff.

[@BeacomOfLight]

Please do a video about brick and mortar remote services. I'm starting a business that does Tech Services for homes and businesses using Independent Contractors that go on-site.

[@kasperwabinski]

100% your right about 3rd party developers. Never works, inhouse or nothing.

[@oxfordsarkar]

How did you record this man? I’m interested to know how to use the whiteboard split screen with your own video.

Saas software is very hard, you need to gather a lot of moving parts together to make it work, not only technical but also from marketing perspective to be able to add leads very regularly to your funnel. It’s a massive massive pain to develop but it’s the best thing in the world when it does.

[@Ghxlib]

people are doing it with gohighlevel now

[@henrythomas7112]

I extremely like the video, man. Very helpful and informative. Thank you very much. It is presented so well too. Great, positive work.

[@ChrisPieta]

Thanks for sharing, this is great for my photo biz

[@poni3367]

Alex you dawg w the private chain

[@thafirstking]

How would you categorize Teach 4 America as a service business/organization under these 4 concepts?

[@xavierx1583]

Thank you Alex ! I know we will meet in the future and I’ll thank you again in person 🤗

[@XTen1000DaysX]

Nice as always. I want to have a licensing business like you and start my business journey. Sales really matter in that

[@fgarciz]

Sales are everything bro

[@williamgriffin61]

Thank you for teaching us such valuable knowledge

[@lukekoletsios3236]

Thanks for the video

[@Arc-]

How does this video not have milions of views already? Thanks for taking the time to make this video and sharing your experience.

[@MsTahB]

I was thinking same.

[@understandingyourself]

Does anyone knows what is that whiteboard/note writing tool he is using?

[@MrNeutralizer]

I disagree on the software point...if you are the one project managing the development of a software to use internally for your own business, then I think this works really well and makes you better at delivering your service. Overall, his sentinment is correct but I'd say there's some nuance here.

[@nahaine2476]

The fifth option that isn't here is buy out the competition under a private chain

[@themenu.ph.official]

Hi Alex. Good stuff! thank you and keep it up

[@andrewsuttar]

ALEX - How do you make a licensing model insanely sticky - year over year?

[@Tanyalapatrone]

Alex has become my business mentor

[@houseofshavesbarbershop]

This was so valuable, thanks Alex

[@modelingsuccesssuccessfull2607]

Love the licensing model 👍

[@martinp.975]

Great overview

[@kelvo1987]

Great video mate Can you do this for physical products ? Thanks in advance

[@therealrumblefish]

Dude so motivated, your staff is amazing..your the best thank you

[@markchandler5095]

Money high

[@contentsofjoy]

Thanks a lot sir

[@eyueltolla1221]

hey alex could you talk about that that pps agency business model

[@rolandvarduhn]

All your videos deserve a like and a comment at least! Thank you!

[@neighborlyconcrete6865]

Under Licensing can you elaborate or redirect me somewhere to understand what you mean by low defensible? And more about the 80% retainer?

[@adventures223]

Very good content but you will be very limited in the transportation business if you only rely on transportation brokers for your business you would have to find your own contracts and customers but Alex has the best contact in this was excellent A1

[@playapnoyx05]

Do you need to be good at tech for franchising? or do you have to get a 3rd party tech company to label the software with our brand?

[@giovannicruz327]

I’m in school for heavy diesel I’m going to get my certification for it, I plan to one day open my shop I feel since the start up cost could be quite costly so this business would do better as a franchise? I’d really love some advice

[@SaamanthaTM]

“Let me give you a 3 million dollar gift 😂👏”

[@girl_hub69]

I really liked your video. I wish you success in your endeavors 🤗🙂

[@RepayEvilWithGood]

I lost only $50k trying to create my own SAAS. $3M is crazy, but that's what happens when you make fast money. I know, you know.

[@randomstuff2650]

What were you trying to develop? Did you hire software developers? If yes, off shore or from the US? What was the biggest challenge?

[@HHH-tx9nc]

You should've made a cheap MVP on Fiverr for $200 first before investing $50K and going all in.

[@theshapeupmentor5951]

Do you have or would you do a video on how to Best set up and execute a corporate business model.

[@jaydutt9361]

You are my mentor, whether you like it or not!

[@MRBBALLMAN10]

Which of these is best for a Basketball Trainer who just rents out court time and works out clients daily? What the next step for a fella who does that for a living and makes 6 figures but wants to be at 7 figures and beyond?

[@PlankActual]

I'm trying everything in my power to figure out how to grow my service based business, I'm a framer/ home builder and though I make good money sometimes, I also have not so good times. I feel like I've grown as far as I can for I only have so many hrs in a day, and can only do so much work during those hrs, Trying to bring in dependable help to do what I do while I expand to a second crew has proven disastrous. I believe I'm gonna have to break away from running a crew to hiring other crews, Otherwise I'll be swinging a hammer everyday until I'm dead.

[@sfa-voiceofafrica]

Work on customer acquisition and train a team.

[@Michelle_Nifty]

WIth regards to licensing, does your name have to be trademarked?

[@freddiechipres]

Where can we find these solid tech cofounders?

[@Techpodshed]

And paying the tax to I.R.S

[@DJMDesign]

Revisited this episode pretty good🎉

[@magicalsounds7966]

So how can you do that for a plumbing company?

[@MsTahB]

For option 1, could you break down the formula more because we are exactly there because we are in a small town and want more locations.

[@MrParnellLivingLife]

tam i think total total addressable market if your city is to small you may need to find another location / strategy where you can get to more people because you can cap out your current location if it is small enough he talks about it in videos just search tam alex hormozi video of him taking a selfie flexing 💯🦾

[@ThatFlyGuy98]

I’m trying to see how to scale a window tint business while still charging premium prices. Average full car (sedan) price is between $200-$600

[@Bluebird22200]

Are you mobile, or stationary shop?

[@ThatFlyGuy98]

Currently mobile. Need a lot of clients to be able to have a shop location. Profit margins are insane in this business . Average film cost per car ranges $25-$50 depending on car type

[@Bluebird22200]

@@ThatFlyGuy98 get yourself more vehicles and hire technicians to serve more clients. Focus your time on finding those clients to keep the techs working

[@robroy289]

How do you scale getting your customers? That may play a part in whether you grow mobile or go brick/mortar.

[@victorcameron1933]

Do you have a partnership with other related but non-competitive businesses in your area? Like carwashes, for example, if you can set up this type of partnership, you will be able to sell something else to your client without any cost on your part at all. You can refer your clients to them, and profit from it, and they can refer their clients to you. It's a win-win. I did this with a burger joint here in Brazil. We partner up with non-competitive businesses, and they were all distributing a flyer with one offer of the burger joint to their paying clients. Doing this doubled my client sales in 7 days. I also would go to neighborhoods where the people are proud of owning things. Dan Kennedy did that with Joe Polish in his carpet cleaning business. First, Joe was advertising in the wrong neighborhoods, where the majority of people would only rent the houses. He was having a hard time selling to these people. Soon as he changed the location where he advertised his business, his business started to change for the good.

[@AZANlA]

Alex is SO smart. How do they know all this

[@carlosargueta5449]

Great content thanks 🙏

[@tylerzegil365]

When you say 6x exit for licensing, are you talking EBITDA? How many years rolling average? I assume 3 (because selling price based off one good year doesn't seem reasonable)

[@jonathanjones4692]

Alex why would you not be able to just control the software company with leverage over the company instead of actually owning it in your name?

[@jmes1109]

Coaching is a service based business, but I don't think it falls into any of these. The same goes for consultancy business.

[@Dhuurv]

i am addicted to this channel

[@hustlenation4779]

Thank you so much for the content

[@martinmenesestv]

Great video! By the way, the video lack end screens

[@FrugalNation]

Great stuff but, I own a stump Grinding business. How could I license it out? Im making good money but I'm getting sick of trading time for money.

[@MomoRetired]

Love it!!

[@topdev_tech9156]

Glad I am a software engineer

[@ciscohernandez4384]

Thanks for the insight Alex, much appreciated. One quick question. We operate a manufacturing business, CNC machining. We have a fairly profitable business but having a hard time finding a way to scale. Something as simple as acquiring new customers is a bit daunting. This is probably a result of my own limiting beliefs (definitely trying to change this) but reaching government buyers, or procurement people in private companies like Space X or other large manufacturing companies isn't as straight forward as the marketing material available online. Any suggestions how you would scale a manufacturing business (as a service - make other company's parts)?

[@TehPoet]

I'd identify the 20% of companies that make up most of your revenue. How did you find those companies? What do they have in common that might help might help identify other companies with similar problems? Approach those companies and show them how well companies in a similar space are doing using your parts. Most will have contact info on their website for inquiries

[@kaylynpowell3386]

SALES

[@slayden633]

I work for a government company that uses many outside machine shops to meet our needs, I had highschool friend who somehow started a machine shop and they send him hundred of thousands of dollars of work a MONTH. There’s pretty much one guy who leads the machine shop here on site and he basically makes most of the decisions. So there’s 2 or 3 in the area we use. Are company has about 12k employees so you can imagine it’s a lot. I would suggest trying to network with anyone at companies. If you had a really good website and cold emailed them it would work pretty well.

[@ciscohernandez4384]

@@slayden633 That is awesome! Seems like it's all about "who you know" vs "what you know." I have a decent website (I think) but most of my customers have been earned through word of mouth from colleagues I used to work with during the engineering days. Since you work for a company that sources machining work, do you or your buyers need help sourcing more vendors? I can send over a capability statement or whatever you need. How can I help?

[@ohyagocastro]

Alex please do a video about how do you run and organize your video company, please! incredibly astonishing content, love your channel!

[@AZANlA]

Video company ?

[@TheChubbaa]

Alex I am in directsales, door to door, do you have any experience or tipps?

[@curiosityshop2297]

I don’t really think my service based business can do a subscription model. But I do have super high margin and charge high ticket.

[@HHH-tx9nc]

You can but first you need to "Productize your Service".

[@savorthepassion]

That eighty percent retention necessity. But yeah, that works.

[@GlennGabrielMedia]

Where does a digital marketing agency fall into this?

[@AustinDavis24]

nice advice

[@RennyKelvy]

Do you think a mobile detailing business could achieve this?

[@onlyhustlers7173]

This made me 200k this past month…..

[@Larry21924]

This content is a guiding light, unveiling new intellectual and personal pathways. A book with parallel material deeply influenced my perspectives and approach. "A Life Unplugged: Reclaiming Reality in a Digital Age" by Theodore Blaze

[@krististark1671]

Investing is a stepping stone to success, investing is what create wealth.