The Game with Alex Hormozi The Mathematics of Business, Explained | Ep 990
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Jan 13, 2026 Discover essential business rules to elevate your company's success. Learn how pricing strategies impact close rates and discover targets for maximizing customer lifetime value (LTV) relative to customer acquisition cost (CAC). Explore the 'Rule of 100' for testing lead generation channels and the critical need for rapid lead response. Delve into the importance of gross margins and cash collection goals for sustained growth, alongside innovative tactics for customer retention and conversion benchmarks. Alex shares valuable takeaways to guide your business decisions.
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Price By Close-Rate Bands
- Raise price when close rates are unusually high; you are likely undercharging by 1.25x–4x depending on close rate bands.
- Test higher prices before lowering them, especially for service businesses where upward pricing is the scalable path.
LTV:CAC Depends On Human Ops
- LTV:CAC ideal ratio depends on operational 'humans in the loop' across attraction, conversion, delivery.
- Aim for higher multiples (3x→12x) as more humans add inconsistency and scaling friction.
Gym Launch 100:1 LTV:CAC Example
- Alex recounts Gym Launch's early year when LTV:CAC hit about 100:1 after spending $100k to make $10M.
- He uses this to illustrate how extreme arbitrage windows can produce massive returns.
