The Game with Alex Hormozi 12. Payback Period PPD | $100M Lost Chapters Audiobook
123 snips
Nov 14, 2025 Unravel the secrets of customer acquisition finance as Alex explains the payback period using a lemonade stand analogy. Discover how faster payback accelerates business growth and the profound impact of gross margins on profit. Learn about 30-day cash, a crucial metric, and how to leverage customer payments for scalable growth. Alex contrasts different acquisition channels, showcasing the power of low CAC and rapid payback for exponential results. Prepare for a masterclass in financing your business through strategic reinvestment!
AI Snips
Chapters
Transcript
Episode notes
Payback Period Is The Speed Of Return
- Payback period (PPD) measures how fast you recoup acquisition costs from a new customer.
Lemonade Stand Demonstrates Customer Economics
- Alex uses a recurring lemonade stand to illustrate LTV, margins, and payback concepts simply.
LTGP Is Revenue After Fulfillment Costs
- Lifetime gross profit depends on price, customer duration, and gross margin, not just revenue.