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$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.

  1. Find gross profit

    Subtract the cost of delivery from the price, per thing sold.

  2. Find transactions or churn

    Average lifetime transactions, or churn as people lost divided by the starting count.

  3. 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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