The Game with Alex Hormozi

7. Section B. The Expensive Customer Problem | $100M Lost Chapters Audiobook

19 snips
Nov 14, 2025
Discover the intriguing concept of the 'expensive customer' and how faster payback can drive scalable growth. Alex delves into the importance of customer-finance acquisition, explaining how ensuring gross profit outpaces customer acquisition cost is crucial. He advocates for a 2x payback strategy, highlighting three key levers to help businesses fund their growth through their customers. Tune in for insightful lessons from Alex's journey to financial success!
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INSIGHT

Customer-Finance Acquisition Is The Scaling Lever

  • Customer-finance acquisition (CFA) means customers pay you fast enough to fund growth without outside capital.
  • Fast 30-day gross profit versus CAC removes cash as the bottleneck and enables exponential scaling.
INSIGHT

Cash Velocity Beats Cheap CAC

  • Recycling acquisition dollars via quick profit turns one customer into multiple new ones, creating exponential growth.
  • Cash velocity (how fast you turn revenue into reusable acquisition funds) is the real limiter of bootstrap scaling.
ADVICE

Get Paid Fast Before Taking External Capital

  • Prioritize getting customers to pay faster so you can reinvest cash immediately into acquisition.
  • Prefer profitable day-one growth before taking loans or investors so you control timing and terms later.
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