Media Loss Drives Value

Alex Hormozi describes running a media operation that loses money directly but creates value through other channels. The strategy focuses on building brand and driving deal flow rather than immediate media profits.

Key Points:

• Media Economics:

  • Loses money on direct operations
  • Revenue sources:
    • Book sales: ~$1M/year in profit
    • Adsense: ~$500k/year
    • Total revenue barely covers media team costs

• Media Team Structure:

  • 10 full-time team members
  • Additional vendors/contractors
  • Content Production Schedule:
    • One recording day every 14 days for direct-to-camera content
    • Additional podcast appearances and interviews

• Strategic Benefits:

  • Attracts top talent for portfolio companies at market rate or below
  • Generates proprietary deal flow
  • Companies specifically seek them out for partnerships
  • Creates trust and credibility in the market

• ROI Philosophy:

  • Continue media despite direct losses because broader benefits outweigh costs
  • Focus on long-term value creation rather than immediate media profitability
  • Use media presence to build relationships and opportunities in core business