How to Determine PRICING

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)
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.

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.

[goncalonunes]

How do you determine those 10-20% when there isn't a clear financial gain for the client?

[carielauren]

How would this work for teachers of lessons and services like the arts? Trainers etc. When there is no clear monetary value. If I have a person come to me, who wants to learn how to sing or cook or be trained in yoga they don’t have necessarily a monetary future compensation it’s just something they want, so how would you price that? Or if you’re offering products that have a depreciation such as clothing or makeup then how would that work? You must be talking just B2B not B2C

[TheInterestedObserver]

100% I tell people this all the time, especially when you make hundreds of thousands to millions plus worth of differences

[vry]

How do you approach a service that doesn’t have a clear financial gain for the customer?

[jetsetymc]

How would this work if I am a maternity photographer? I service first time expecting mothers over the age of 28 who work full time corporately or pursue entrepreneurship. We focus on capture memories of the pregnancy while also doing all the work for them like hair makeup outfit keepsakes wall art etc.

[coldhands]

So let's say I'm an editor, just starting out, how do I figure out what I should charge??

[AngelDracos]

Is this part of a larger video or just a short? I've been looking for a video of you talking about this specific thing, but kept getting sucked into your other high value content!

[adrianwalker]

The market dictates your prices. You should raise your prices every year until customers start to slow down. The customers will dictate perceived value. Are they willing to purchase your product or service or not. Is it worth it?

[grantjohnsonvo]

What if my perceived value only works if they also need to spend 9 times what they spend with me in order to advertise what I helped make for them? Do I ask for 10% of the outcome still or would I need to secure the air time for them as well so I'm no longer removed from the perceived benefit?

[alextrojan]

Hey Alex, how do you track how much you make then when setting up websites for businesses?

[TheOfficialFloridaMan]

He used to say whatever your product cost is, your product price needs to be 181% of that

[tilosobelman]

10-30 percent people, don’t undervalue your value

[goodolddave]

You don't have an outcome until you have sales, and how do you sell if you haven't established a sale price?

[carielauren]

Not sure how this would apply to the arts

[steveflores]

XRP would even be a great bargain at 100 dollars. Or even 1000 dollars. Just imagine if you had bought 10 bitcoin at 1000 dollars each. Where would you be sitting right now? 300, 000. Not a bad profit. Do when it comes to XRP, you just have to be patient.

[OFFICALMENOFCULTURE]

0 explanation. out of character for Alex