Bookshelf · $100M Lost Chapters
$100M Lost Chapters by Alex Hormozi, framework 5 of 14
Calculating LTGP
Back-of-napkin lifetime gross profit.
Alex Hormozi's framework, from $100M Lost Chapters, pp. 46 to 71.
- Find gross profit
Subtract the cost of delivery from the price, per thing sold.
- Find transactions or churn
Average lifetime transactions, or churn as people lost divided by the starting count.
- Combine
Multiply gross profit by transactions, or divide gross profit by churn.
From chapter: Section B: The Expensive Customer Problem, pp. 46–71
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Framework 6 · Money and finance Levels of CFA Where a business stands on funding its own growth.
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Framework 7 · Offers and pricing Ultimate Offer Stacking Process Weave one of each offer type into a customer journey.
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Framework 8 · Offers and pricing Four steps to picking the right offer Check any new offer against four conditions.
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Framework 9 · Offers and pricing Bonus design for continuity Keep customers paying by pairing a when with a what.
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Framework 10 · Exits Creating a one-time fee Add a made-up fee that raises commitment and offsets acquisition cost.
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Framework 11 · Systems and operations 3Ds of training: Document, Demonstrate, Duplicate Turn what you do into a checklist anyone can repeat.