The Game with Alex Hormozi Get It Right Before Making It Big & The Power Of Compounding | Ep 778
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Oct 16, 2024 Discover the essential strategies behind building a loyal customer network for lasting success. Uncover the secrets of customer retention and how nurturing connections can lead to compounding growth. Learn about the power of organic growth and how fostering audience loyalty trumps heavy ad spending. The insights shared promise to guide aspiring entrepreneurs on their journey toward sustained success.
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Compounding Assets
- Compounding assets are built by selling products with lifetime value or by creating networks that constantly sell.
- This means one sale can lead to continuous revenue or a network of sellers generates ongoing sales.
Recurring Revenue Examples
- Coca-Cola is an example of a product people buy repeatedly, demonstrating lifetime customer value.
- Facebook sells user attention through ads, making money as long as users remain on the platform.
Promotion vs. Compounding
- Initial business growth often focuses on promotion to gain customers since starting businesses lack recognition.
- Increased promotion leads to higher revenue, tempting business owners to focus solely on promotion, but this isn't the only key to success.