The Game with Alex Hormozi 11. Lifetime Gross Profit LTGP | $100M Lost Chapters Audiobook
Nov 14, 2025
In this episode, the host dives into the concept of lifetime gross profit (LTGP) and shares practical ways to calculate it. He highlights the difference between gross profit and net profit, providing clear product pricing examples. Listeners learn how to compute gross profit for services and the importance of understanding customer churn. The discussion includes strategies to enhance LTGP, arguing it boosts customer value and acquisition potential. With insights on maximizing profitability and competitive advantage, this talk is a must for ambitious entrepreneurs.
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What Lifetime Gross Profit Means
- Lifetime Gross Profit (LTGP) measures total gross profit per customer over their lifespan.
- Gross profit is revenue minus direct delivery costs and is not the same as net profit.
Calculate Gross Profit And Margin
- Calculate gross profit per product by subtracting delivery costs from price.
- Express gross margin as gross profit divided by price to compare product profitability.
Service Example With Account Reps
- Alex walks through a service example with reps handling 10 clients at $3,000 each.
- He shows gross profit is $2,400 per customer given a $6,000 rep cost and 80% margin.