non

♛

[non @25StepBySteph]

Someday. One day. I know it will be there. ✨👆🏼💎

[Alen Sultanic @IAmAlenSultanic]

The Breaking Points of Hormozi’s "Free Model"
& The Future of A.I. In The Game

I have a philosophy that I live by, and that is…

…I don’t care much about what’s happening now, as I care about what happens next.

Because if you know what happens next, then you can make the power moves to win the game.

So I only pay attention to what others are doing to the point of determining what happens next.

Once I know what happens next, then I know what’s going to happen to them, their position, and their strategy.

And as such, out of this, I developed a set of principles that are based on “learning and knowing how to think” so that you’re never reliant on any given process or model taught by gurus because as you will see in the rest of this post, they all break and cause a lot more long term damage to you and your business than they do good.

…Hence why I focus on teaching people “how to think”, so they can insulate themselves from any market changes.

And as I write this, the game is in metamorphosis, it’s changing, and where you end up on that side of the change is going to determine if you’re still in the game 5 years from now, or watching others get to where you always wanted to be.

So without further ado, there was a big launch this week by Alex Hormozi, and kudos to him, he did a great job, and I think he’s a super talented marketer, and what I’m about to say is not about Alex himself, but rather his model, which influenced a lot of people in the game and in turn influences “what happens next”.

The model is based on this idea of “give away free stuff” and at some point, you’ll get “rich”.

What’s not said is that a  few will get rich, and the rest will die trying, here's why:

The model of FREE is a model where the cost, which was money, got replaced by a new cost, which is one of time.

Nothing is ever free, what it’s paid with just changes and you're just not aware of what currency you're paying with.

With that in mind, humans have access to far more money than they do time.

With money, we can borrow it, inherit it, beg for it, make it, steal it, whatever, there’s more money than people know what to do with and they print more every single day.

Just look at the value of money 20 years ago compared to today.

Now, look at the value of TIME 20 years ago compared to today.

The value of time went up, and the value of money went down.

So, time, being the great limiter determines how everyone in your industry consumes "your free stuff".

And as time is limited to 24 hours, and tied between countless social media outlets, and entertainment, we have to choose some, and in that choosing, we also choose NOT to participate in others.

And this is why, all money is made from consumption, not production.

We don’t make any money when we create anything.

All the money is made when the counterparty consumes what we made.

If there is a difference between what we produce, and what they consume, then that ends up being a LOSS to us, because it took time for us to create it.

So, if you look at various companies, you can see this is true in every single industry across the board.

Apple doesn't make any money when they make iPhones, they make money when we consume (use) iPhones.

Ford doesn't make any money when they produce cars, they make money when we consume (use cars).

Facebook doesn’t make any money on development etc, they make money when we consume (use the platform)

So on, and so forth it goes, this principle holds true in every single industry.

Now, since all the money is made from consumption, not production.

We have to pay attention to what happens when production is increased across the board.

After all, there are far more videos on YouTube that don't get watched than they do watch.

There are far more people on Instagram who don't have followers than do followers.

There are far more Twitter accounts that don't have any followers, than they do followers.

There are far more companies that don't have enough customers than they have an abundance of customers.

YouTubers, IG's, and Twitterhoilcs are all "giving away stuff", and some are turning that into gold, but most are not, most are buying the stuff, providing them with gold.

Every game has its winners and losers, and the #1 thing that determines the winners and losers in the game is the awareness of the principle of the fact that all money is made from consumption, not production.

So personally to me, my entire philosophy is to compete on economics, and the reason being is that, as someone who owned a huge email ad network and sold it, I understand the game the networks play.

They will trade access to audiences for your content, then use your content to build up audiences, and then dispose of you once they have the audience, it’s a power shift, and that’s already happening across the board.

The only way to overcome this is to be able to pay for access in the network, via paid ads, and the only way to pay for ads at scale is via offers, and the only way offers can make money is through economics, hence competing on economics is the highest competitive advantage that removes time from the equation and lets you scale.

Now, the allure of the “free model” model is that it fully removes responsibility and the risk of running ads and doing anything else, because after all, most people with little to no money (which is the bulk of the audience), do have one thing which they are abundant in, which is their time.

The same was done via ClickFunnels pushing “Free & Shipping” book offers, many went up and they’re all dead.

The same thing is going to happen once again, because what happens, when everyone is producing and giving away stuff?

Does that affect the consumption side of the equation?

Not so much, it puts the value on consumption.

So those that produce are at the mercy of those that consume, and that’s why you see YouTubers getting crazier and crazier these days just to hold attention, at some point, they’ll start tapping out.

The networks have no mercy.

The only ones who win are the ones with status, as the market will consume their stuff, be it free or paid, while the rest of the market watches wondering, get "That used to work but it doesn't work for me?".

The best way to get status of course is to teach easy models that focus on production, because they have the highest adaption rate as time is abundant, and then use that to increase one’s status, while they’re all going to be killing themselves competing using th esame model.

The reason I don't teach process is that every process breaks and this is a process that breaks it.

With enough people using it, will break sooner or later, and the tip-over that breaks it will be when the production far exceeds the ability to consume.

This has happened to every single model in the game for the past 20 years, and I’ve seen them all come and go, along with the gurus who created them went and gone.

The same argument goes for A.I., and all these copywriters saying that A.I. is going to create wonders, and it will create wonders, by fucking up the production/consumption equation.

And truth be told, personally, I don't care much about A.I., all I care about is what A.I. does to the market and how it changes it, the same principle applies above.

Once again, as all money is made from consumption, and the production goes up, the value of production goes down, so therefore copywriting and copywriters will be devalued because the consumption will not increase in proportion to the production.

So those that use to be able to charge $50k, are now down to $25k (too much production, not enough consumption).

The only ones who can retain massive price elasticity in the market palace are those with status.

Those that do retain status and elasticity will go on to use that money to run paid media, while the rest are left scratching their heads as to “wtf happened over the last 3 years, and why am I stuck?”.

Now you know, because the reality is as production increases across the board, everyone is being devalued at the same time, so it takes 1/10th the energy to leapfrog them, once you know how the mechanisms work behind the scenes, which you do know.

The other side of the coin is that there's a larger game at play here, and it's known as the "Who vs What" game, I've taught this early on in FF and NHB+, and I'm going to make a banger post for you guys tomorrow, so you're always one step ahead of the game.

Until then, ask yourself...what happens to the value of things that you produce, when everyone else can produce them?

What happens to your advantages? And what happens to you?

The end game here is that those who can buy audiences will be on top of the networks seen by all and they’ll be able to sell to all, and the rest, due to the increase in production will be fighting for the scraps of attention from the massive influx of “free” in the ecosystem.

Once again, look at YouTubers, and good proxy example is the music industry, where artists have to pay other artists to be featured on their songs.

And when I say buy audiences, that doesn’t only mean buy ads, it also includes buying podcast placements because that’s where podcast guest appearances will go, they’ll be for pay appearances, and where once again you need economics to offset the costs.

So the whole idea of hopping on podcasts and “giving away free stuff” won’t work either.

Everything is going to be monetized, and if you’re going to be in a game where every aspect is monetized, there are two things you need:

Learn how to think so you can create, change, and modify processes and models

Know how to compete on economics so that when that day comes, as it’s coming, you’re ahead of the game.

The game has always been one and the same, those who can pay more to get the customers, get all the customers.
That’s food for thought, you do the dishes.

Alen Sultanic

P.s. The models typically last 6-24 months depending on the volume of usage by the industry, so pay attention to that to give it estimation of life span.

[non @25StepBySteph]

Distractions - they're everywhere
Dreams - they're in you 😌

[non @25StepBySteph]

All my life i am actually being prepared for this moment...
mambudol. :P

[non @25StepBySteph]

Almost over [you] now ;)

[non @25StepBySteph]

♥️🥲🍎

[TmarTn @TmarTn]

LOOK WHAT THEY DID TO THE IPHONE NOTCH?!

#AppleEvent

[non @25StepBySteph]

Tiwala lang 🤍😇

[non @25StepBySteph]

Choose what to feel. You don’t have to accept it all. 🥹 #shakeitoff

[non @25StepBySteph]

Hey Check it out! https://t.co/JXNHIgj6sL

[non @25StepBySteph]

The obstacle is the way. 💪🏼

[non @25StepBySteph]

Saya din nung may naka-miss sayo 🥹

[non @25StepBySteph]

“I-login ko ba yung email account ko - [email protected]” ?

Me: AY HINDE. EMAIL KO ILOGIN MO SA PHONE MO. GUSTO MO ATA EH. 🥴

[REMNANT. @remnantph]

In case you needed a reminder:

[non @25StepBySteph]

Yun bang Spanish speaking yung kausap mo… then you realize sa Portuguese queue mo naitransfer.

Then pag-view mo ng profile nya— Director, Business Development 🤭👀😬

[non @25StepBySteph]

“Gratitude is born in the struggle…”
🌻

[non @25StepBySteph]

When you have to focus, turn off all notifs 😌

[non @25StepBySteph]

excited for that day when the one is here with me 💕
he’ll tell me it’s just a bad dream and that i can safely go back to sleep 🥺

for now, i’ll be fine here 🤍

[non @25StepBySteph]

hindi lahat ng katotohanan, kailangan pang sabihin
hindi lahat ng sinasabi, katotohanan

[non @25StepBySteph]

sipon sipon go away come again another day haha char no pala. wag ka nang babalik. everrrr.