4.9 • 4.4K Ratings
🗓️ 20 December 2022
⏱️ 20 minutes
🧾️ Download transcript
Business doesn't have to be hard. You just have to think through the math and be willing to be embarrassed. Today, Alex (@AlexHormozi) breaks down the business behind test prep tutoring, how this simple business can give you a great opportunity you could make top 1% earnings with no capital out of pocket, and some tips you can do to sustain the business.
Welcome to The Game Podcast where we talk about how to get more customers, make more profit per customer, and keep them longer, and the many failures and lessons we have learned along the way to $100M in sales. We've got roll-up-your-sleeves kind of hustle with a little bit of cleverness and a lot of heart.
Timestamps:
(1:41) - Sell the outcome of the product
(5:56) - The business model of test preps is extremely repeatable
(13:46) - Your fear gets in the way of inquiring
(14:15) - Giving services for free in exchange for feedback, testimonials, and referrals
(17:23) - 2 ways of reaching out: ads and referrals
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0:00.0 | Hey guys, real quick. So Layland, I are definitely working on our social media presence if you guys haven't noticed and we're just breaking now into linked in. |
0:06.2 | Alright, it's not as bad as I thought. It's actually been pretty awesome so far and you guys have been really cool in there and people are sharing our stuff a lot. |
0:12.2 | So if we aren't connected on LinkedIn, go ahead and let's connect and let's rock and roll. |
0:17.0 | The best businesses start for students where you can earn $1,120 per day in profit, not revenue, meaning you're above the 1% earning in the nation. |
0:29.0 | In the wealthiest nation in the world, while you're still in school pretending to try and get a degree so you can somehow make money, you can do it while you're still in school. |
0:35.8 | And for anyone who's not in school, you could still do it only 4 hours per day. |
0:40.6 | The wealthiest people in the world see business as a game. This podcast, the game, is my attempt at documenting the lessons I've learned on my way to building acquisition.com into a billion dollar portfolio. |
0:49.8 | My hope is that you use the lessons to grow your business and maybe someday soon partner with us to get to $100 million in beyond. I hope you share and enjoy. |
0:56.6 | You can make $1,100 a day working 4 hours a day with no inventory, no physical location, and basically no startup costs. |
1:04.6 | And it was one of the three businesses that I almost started before deciding to start my GM. |
1:09.4 | And the business was test prep and or tutoring. |
1:12.6 | So most people go about test prep tutoring the wrong way. What they do is they try and get 101 clients who will pay them 40 to 60 dollars, maybe 80 dollars per session. |
1:23.6 | And so the problem is that they're selling time and they're not selling an outcome. |
1:27.6 | And so if you want to do the same business model but do it way better and make more than the top 1% of the United States. |
1:33.6 | If you want to make more than 400,000 dollars, you can do it part time, whether you've dropped out of college or still in college, you still have a job, and you can do it for 4 hours a day. |
1:41.0 | So here's how the model works. |
1:42.4 | So number one is that you don't want to sell tutoring. You want to sell the outcome of tutoring, which is to get into either a job that's going to pay more, |
1:50.4 | or be able to pass a test of some sort, or ideally the standardized test, which in my opinion are the most viable tests that you can help some repair for. |
1:57.8 | Because when you get into a better school, either college or business school, graduate school, that has a material difference on the network that those people hang out with. |
2:07.6 | The companies that recruit from those schools and the average salary and earning capacity of those people. |
2:12.6 | And so you can a very real way tie the increase of someone's test scores to how much money they're going to make. |
2:19.6 | Alright, if you think about it, college was the original bizop. It was the original anybody can come in and you will make more money as a result of going through this training. |
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