Opportunity Vehicle Framework

Alex Hormozi's framework for evaluating business opportunities and maximizing their potential. This framework helped him scale from gym owner to building multiple successful businesses.

Opportunity Vehicle Components

• Three key multipliers to evaluate any business opportunity:
  1. Number of potential units to be sold
  2. Gross margin per unit possible
  3. Supply-demand dynamics within the space

Real World Example (Gym Business)

• Initial metrics achieved:

  • $26M top line revenue (year 2)
  • $17M EBITDA
  • 30:1 LTV to CAC ratio

• Marketing performance (2013):

  • $10 CPM on Facebook
  • 4-5% click-through rates
  • 50% landing page conversion
  • Average cost per lead: $2
  • Some markets achieved $0.25 cost per lead

Business Model Optimization

• Created irresistible offer structure:

  • Free 6-week challenge
  • Money-back guarantee if they lost 20 lbs
  • 70-80% success rates due to financial stakes
  • $500 upfront payment structure

• Revenue optimization:

  • Multiple revenue streams (service + product)
  • Focus on recurring revenue
  • Upsell strategy during peak customer excitement
  • Built backend revenue through supplement sales
  • 40% commission structure for partners

Key Lessons

• Evaluate market opportunity before maximizing effort
• Better to be "hustling level 10 at a level 10 opportunity"
• Focus on creating multiple recurring revenue streams
• Sell additional products/services when customer excitement peaks
• Price testing showed higher prices didn't affect churn (learned from reducing $800/week to $600/week with no benefit)