How Airlines Make BANK
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- Опубліковано 3 жов 2024
- Want to SCALE your business? Go here: acquisition.com
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If you’re new to my channel, my name is Alex Hormozi. I’m the founder and managing partner of Acquisition.com. It’s a family office, which is just a formal way of saying we invest our own money into companies. Our 10 portfolio companies bring in over $200,000,000+ per year. Our ownership stake varies between 20% and 100% of them. Given this is a YT channel, and anyone can claim anything, I’ll give you some stuff you can google to verify below.
How I got here…
21: Graduated Vanderbilt in 3 years Magna Cum Laude, and took a fancy consulting job.
23 yrs old: Left my fancy consulting job to start a business (a gym).
24 yrs old: Opened 5 gym locations.
26 yrs old: Closed down 6th gym. Lost everything.
26 yrs old: Got back to launching gyms (launched 33). Then, lost everything for a 2nd time.
26 yrs old: In desperation, started licensing model as a hail mary. It worked.
27 yrs old: "Gym Launch" does $3M profit the next 6 months. Then $17M profit next 12 months.
28 yrs old: Started Prestige Labs. $20M the first year.
29 yrs old: Launched ALAN, a software company for agencies to work leads for customers. Scaled to $1.7mmo within 6 months.
31 yrs old: Sold 75% of UseAlan to a strategic buyer in an all stock deal.
31 yrs old: Sold 66% of Gym Launch & Prestige Labs at $46.2M valuation in all-cash deal to American Pacific Group. (you can google it)
31 yrs old: Started our family office Acquisition.com. We invest and scale companies using the $42M in distributions we had taken + the cash from the $46.2M exit.
32 yrs old: Started making free content showing how we grow companies to make real business education accessible to everyone (and) to attract business owners to invest or scale their businesses.
34 yrs old: I became co-owner of Skool.com to help the many people who want to start a business online do so.
Today: Our portfolio now does $200M/yr between 10 companies. The largest doing $100M/yr the smallest doing $5M per year. Our ownership varies between 20% and 100% ownership of the companies. Many of them we invested in early and helped grow (which is how we make our money - not youtube videos).
To all the gladiators in the arena, we’re all in the middle of writing our own stories. The worse the monsters, the more epic the story.
You either get an epic outcome or an epic story. Both mean you win.
Keep crushing. May your desires be greater than your obstacles.
Never quit,
Alex
FULL DISCLOSURE
I make content to make money - just - on a longer time horizon than most. I want to build trust with business owners so we can find the best ones and help them scale. And if they’re awesome, write them a check and go all the way as partners.
Small, Medium, and Large McDonald's analogy
But do people go for medium? Or is large more popular
@@TinRapper yes because most of the times its 40c difference but hundreds is bigger than cents, they are targeting small or lange, i dont think many order medium.
@@TinRapperto the point even better, they pay extra for the large because there’s the option
Thank Alex, Small car dealership here, mat try service contracts low mid, snd high and see if we can add some backend products! Thank you, I drove you and your wife in my Taxi 98 or so, wish I invested in your buying businesses back then. Love the content always!!
I recently paid for the very first seat on a flight and priority boarding…
On two flights I was the first off the plane… can’t go back.
That's funny. People I travel with want to rush forward, me I just wait till everyone in a rush goes past me. That couple minutes really doesn't make a difference, getting back through security which is always a dantean-bosch hellscape
Hells
@@TheKlink right, I never got that either. Ive only flown first class on foreign airlines but it was actually a good price because it included baggage abd it wouldve been ten bucks more to add the bagage plus you got priority boarding and all that. It depends on what you are doing. A fun trip with just a carry on for me will always be economy.
good stuff, now you get be first to stand there and wait for you luggage
I never check bags, only carry on. Yes, even multiple week trips. My carry on & back pack I’m good for at least two weeks.
Another day, another gold!
Genius
Thanks Alex
This made a lot more sense. Sometimes you are complicated.
What? Lol
Yes, @@MattGarcyaDC he's right.
Alex shorts are complicated most times.
Mainly because they're cut out of context
Thanks Alex ! 🔥🔥🔥
Thank you so much.
You are 100 percent right
Paradox of choice with an asterisk and create urgency
Apparently, this is very true and the wine world. Do you want to save money? Don’t be afraid to be cheap.
That’s right, baby..
Nice lesson for the day😊
TBH? I built my service company into a Comfort+ option, in terms of pricing and the actual service and customer service to expect.
I understand the psychology behind it… my take rate on First Class is about 10-15% on average. In Comfort+ about half of the time. 12-15 flights a year. Most of the F tickets were bought at prices that were lower than typical C+. If I’m traveling for business, C+ makes sense at minimum. Helps with productivity, massively. If leisure, normal ticket is more than fine. I’ll just sleep or zombie mode some TV/sports anyways.
I plan on extending my mentality to any employees that have to travel for my company. C+ as a standard, within reason. Or only the front section on a LCC.
Anybody building a business, consider your own buying habits. Observe yourself. If you can’t market to others, figure out how you’ve been marketed to!
Well they don't really make BANK most airlines are only getting back a few percent in revenue some are in debt, but most commercial world class airlines, make most of there money through there loyalty programs
The point is that the strategy worked. It's not about airlines
@@rockyblumble yeah I know, it is a good strategy and many businesses in different sectors and industries make a lot using this strategy, but airlines aren't really getting much from it, because every flight is a gamble they still pay the same for fuel even if only half the plane is filled , and wars and restrictions can spike fuel prices hugely, and other events like 9/11 and covid can destroy airlines
Tendency to the middle, this is scientifically prooved human behaviour
comparison
What I wonder is how you can honestly be fine with using this type of marketing psychology without feeling like you are backstabbing your fellow human beings.
Because you aren't forcing anybody to buy anything. If they value price above everything, they'll take the cheapest option. The customers have all the power. You are just framing the situation so the people have an easy default that also works well for you.
This is a very poor example of this idea. First Class was the only option originally offered by the airlines. They didn't add it on later to make Comfort+ seem more attractive.
The point has been missed.
Thats why youre a multi-millionaire and hes not huh
@@Tkt_t I am far wealthier than he.
Hes saying airlines figured this out after first, middle, and lower class tickets were already in existence. They found that they could sell more of their premium (middle class) tickets just by rearranging the way they present the same three products to consumers, and they didnt have to make a new product lines to do it.
@@youdontknowwhoiam2449 When did this supposed rearranging occur?
So true.
What is economy plus?
most times free booze, more room, earlier boarding
U looks more smart without hat and neck bandage
💎
And they sell more tickets than exist
😮😮😮
lol…Airlines don’t make bank Alex. One of the worst industries financially.
Still ass. airlines and airports.
Yeah dont buy mid grade gasoline either, its just a tax for cheap snobs.
That is not correct. Gasoline is graded by Octane level. It has nothing to do with quality.
If you have an engine that requires higher octane then it will be damaged by the improper gas.