Sep 21, 2026 · 8 min · 5 segments
The first product you must sell in a new business ~ Alex Hormozi
Alex HormoziHost
One of the goals of any business is to maximize the amount of revenue per customer you generate, right? And a lot of times you want to have what's called like an accommodating buying curve.
And so what that basically means is at every rung, right? If someone is wealthier, you want them to buy more and spend more money with you.
And if someone has less money, you want them to still buy from you, but potentially buy for less, right? And so this gives way to a lot of these crazy product and service listings where people have a hundred different services and products that they offer because they want to have the ability to serve everyone at the maximum degree.
The thing is, is that most times that will create so much operational complexity and create so many little appendages right little sticky things that are stuck onto the side and bolted on and globbed and duct taped onto a business that it becomes incredibly distracting for all of the employees because they're thinking about all these different things and here's a funny one is that most times if your employees don't understand all the different types of things you sell and the price points you sell them at your customers for sure don't one of the things that we will do when we're looking at a company is we will simplify the product offering and instead try and reach the maximum buying threshold per prospect by changing the payment terms now in a perfect world if everyone had absolute information and everyone was unbelievably well trained and you had a great infrastructure and all that stuff then yes the more products and services you offer in theory you would make more money But we don't live in that theoretical world most of the time.
And so in an effort to combat that, we have used this process over and over again, and it has worked very well.
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One of the goals of any business is to maximize the amount of revenue per customer you generate, right? And a lot of times you want to have what's called like an accommodating buying curve.
And so what that basically means is at every rung, right? If someone is wealthier, you want them to buy more and spend more money with you.
And if someone has less money, you want them to still buy from you, but potentially buy for less, right? And so this gives way to a lot of these crazy product and service listings where people have a hundred different services and products that they offer because they want to have the ability to serve everyone at the maximum degree.
The thing is, is that most times that will create so much operational complexity and create so many little appendages right little sticky things that are stuck onto the side and bolted on and globbed and duct taped onto a business that it becomes incredibly distracting for all of the employees because they're thinking about all these different things and here's a funny one is that most times if your employees don't understand all the different types of things you sell and the price points you sell them at your customers for sure don't one of the things that we will do when we're looking at a company is we will simplify the product offering and instead try and reach the maximum buying threshold per prospect by changing the payment terms now in a perfect world if everyone had absolute information and everyone was unbelievably well trained and you had a great infrastructure and all that stuff then yes the more products and services you offer in theory you would make more money But we don't live in that theoretical world most of the time.
And so in an effort to combat that, we have used this process over and over again, and it has worked very well.