The Game with Alex Hormozi 11. Lifetime Gross Profit LTGP | $100M Lost Chapters Audiobook
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Nov 14, 2025 Discover the significance of Lifetime Gross Profit (LTGP) for business success. Alex breaks down how to calculate LTGP for both products and services, highlighting key concepts like churn and customer acquisition cost. He emphasizes the strategic advantage gained by maximizing LTGP in the ever-competitive market. With practical examples, Alex shares insights on enhancing profitability and customer retention. Tune in for a blend of financial acumen and entrepreneurial wisdom!
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Lifetime Gross Profit Is The Key Metric
- Lifetime Gross Profit (LTGP) measures total gross profit a customer generates over their lifespan with you.
- LTGP is central because the business that makes customers most valuable wins the attention auction.
Calculate Gross Profit, Not Net
- Calculate gross profit by subtracting only delivery costs from revenue, not all expenses.
- Use gross profit to run your business and differentiate it from net profit which subtracts every expense.
Service Example Shows Per-Customer GP
- Alex gives a services example: one rep handles 10 clients who each pay $3,000 per month and the rep costs $6,000.
- This yields $24,000 gross profit per rep and $2,400 gross profit per customer monthly (80% margin).