Alex Hormozi's money making formula

Alex Hormozi has a great mind for how to make money in business. After watching one of his longform presententations I distilled down some of his concepts of how to make money into a simple formula. It’s all about identifying the value of an opportunity, leveraging it to the maximum extent, and putting in the necessary effort to realize its potential.

The formula is as follows:

Value of the Opportunity - This is the inherent worth of the opportunity you’ve identified. It could be a gap in the market, a unique skill you possess, or a product or service that is in high demand.

Leverage - This is how you maximize the potential of the opportunity. Anything and everything you can do to achieve scale while maintaining a postive ROI.

Effort - This is the work you put in to realize the opportunity. It could involve long hours, learning new skills, or overcoming challenges.

Anyone can put in a ton of effort. there’s tons of people who work from morning until night and don’t get much to show for it.

Quantifying the quality of opportunities is difficult, but there are a few ways you can try and validate them. Start by asking yourself who you’re selling to. You want to be selling to people who have money, but lack time. Selling to people who have time, but lack money is a recipe for low margins and ROI.

In order to achieve any really big successes, you’ll need to create leverage. no billionaire fortunes are created without it. It’s your unfair advantage. The things that make you hard to compete with. Maybe it’s an advantage in distribution, maybe it’s a skill you have others don’t. Regardless, it’s something that makes it hard for other people to compete against you.

In essence, the formula is: Value of the Opportunity X Leverage X Effort = Success

By understanding and applying this formula, you can significantly increase your chances of making money and achieving success.