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The Game with Alex Hormozi

One Time Fees | Ep 188

The Game with Alex Hormozi

Alex Hormozi

Business, Education, Entrepreneurship, How To

4.94.8K Ratings

🗓️ 17 March 2020

⏱️ 8 minutes

🧾️ Download transcript

Summary

"When you have a big initiation fee and the larger discrepancy between the initiation fee and then the subsequent billings, the stickier the billings become." Alex (@AlexHormozi) discusses the benefits of using an initiation fee and how it can make subsequent billings stickier. He also talks about different ways of using discount offers and how to monetize them ethically.

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 on his path from $100M to $1B in net worth.

Timestamps:

(1:52) - Benefits of initiation fee: stickier billings, cool discounts

(2:55) - Initiation fee allows cool discount offers

(5:52) - One-time fee explained: one-on-one help, 80% savings

Follow Alex Hormozi’s Socials:

LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition

Transcript

Click on a timestamp to play from that location

0:00.0

Real quick guys, if you can think about how you found this podcast, somebody probably

0:03.8

tweeted it, told you about it, shared it on Instagram, or something like that.

0:07.5

The only way this grows is through word of mouth. And so I don't run ads, I don't do sponsorships,

0:12.2

I don't sell anything. My only ask is that you continue to pay it forward, do whoever showed you,

0:16.4

or however you found out about this podcast that you do the exact same thing. So if it was a review,

0:21.0

if it was a post, if you do that, it would mean the world to me and you'll throw some good comment

0:24.3

out there for another entrepreneur. The larger the scrappancey between the initiation fee and then

0:28.4

the subsequent billings, the stickier the billings become. Welcome to the Jim Secrets podcast,

0:35.7

where you talk about how to get more customers, how to make more per customer, and how to keep

0:39.1

them longer. And the many failures and lessons that we have learned along the way, I hope you enjoy

0:44.2

and subscribe. Good morning everyone, we guys are having an awesome start to your day.

0:50.3

I'm making a badass, one of the next frameworks for the book on acquisition on how to make

0:55.7

different offers. Pretty cool. I'm actually really, really excited. I've got eight different ways

1:00.0

that you can use free and monetize it. Ethically, we've got three, I think four different ways that

1:05.5

you can use discount offers and still monetize the acquisition. And so one of the ones I'm working on

1:10.0

right now is about discount offers. And so one of the things that goes hand in hand with discount

1:15.8

offers, one of the ways to use them is a one time fee. And so what I wanted to kind of go over is

1:23.6

one of the pros and cons of having one time fees. So that can typically in most businesses,

1:29.1

not just Jim's, right? You have one time fee, which might be activation, it might be initiation,

1:33.6

it might be enrollment, I could be service fee, like you'll see it, that fee appear in a lot of

1:39.6

businesses, especially ones that are more established. And that's because they understand the value of it.

1:44.4

So we've at when I know that in the, in my fitness at least, I'm not sure if they do it at 24,

...

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