Podcast Summary: "Back End. The Value Grid."

Podcast: The Game with Alex Hormozi
Episode: 15. Back End. The Value Grid. | $100M Lost Chapters Audiobook
Date: November 14, 2025
Host: Alex Hormozi

Overview: Main Theme & Purpose

In this episode, Alex Hormozi explores the concept of maximizing Lifetime Value (LTV) through what he calls the "Value Grid," a strategy cut from his book "$100M Offers." Instead of only focusing on acquiring more customers, Hormozi demonstrates how stacking offers and designing backend revenue systems can help businesses make significantly more per customer—an approach that gives them a sustainable, outsized competitive edge in their market.

Key Discussion Points and Insights

1. Rethinking Customer Value and LTV

• Hormozi reframes Dan Kennedy’s maxim:

  “The business owner who makes his customer more valuable to his business than to that of his competition wins.”
  (00:05)

• Emphasizes that increasing LTV is the "arms race" of business, allowing you to outspend competitors on acquisition and dominate markets.

2. Real-World Consulting Example

• Shares a pivotal consulting conversation:

  “‘Wait, so you sell twice as many people as I do every month, but you make 56 times more profit than me?’
  ‘Yeah, seems like it.’
  ‘Holy cow. So I just need to focus on making more per customer. I don’t need to get more clients at all?’
  ‘Correct.’”
  (01:00 – 01:30)

• Many businesses struggle to scale not from lack of leads, but from under-monetizing each customer.

3. The Power of Outspending Competitors

• If you can pay multiples more per customer than competitors, you effectively price them out of the market:

  “If you can pay 10 times more to acquire a customer than your competition can, you can decide to increase your spending budget such that you compete against yourself until you raise the bar so that no one else can buy ads in your niche.”
  (04:15)

• This creates a situation akin to a (legal) monopoly.

4. The Value Grid vs. The Value Ladder

• Traditional value ladder: Customers ascend offers in sequential order; fails to recognize that not everyone buys everything.
• Hormozi’s Value Grid: Visualizes offers in a matrix so customers can buy any mix of products/services.

  “They don’t buy linearly, they buy the ones they want to buy or solve their specific need.”
  (10:00)

• This model captures multiple pathways customers use, unlocking more revenue opportunities with the same customer base.

5. Concrete Example with Revenue Numbers

• Walks through a trial-to-membership model:
  • 10 prospects → 8 take a trial → 3 convert to paid.
  • Revenue from 10: $600
  • “You can afford $60 per show and the amount of money they collect per trial in the first 30 days is $75.”
    (14:30)
• After accounting for labor/fixed costs, these profits evaporate—classic small business challenge.

6. Stacking Offers & Alternative Revenue Streams

• Illustrates how stacking front-end, high-ticket, downsell, and upsell offers dramatically multiplies LTV.
• Example:
  • “Our first example is $75, and the bottom example is now $1,763.”
    (20:25)
  • Utilizing alternative offers—like a wellness review leading to supplement sales for non-converting customers—creates more monetization opportunities.

7. The Competitive Advantage and Impact on Scale

• If you can monetize leads at $1,763 instead of $75, you can outspend and outperform any competitor—even with average marketing.

  “This is the difference between making a killing and getting killed. This is how you can outspend anyone on any platform.”
  (22:45)

• High LTV unlocks unprecedented growth and resilience—even with increased ad costs or less-than-perfect campaigns.

Notable Quotes & Memorable Moments

• On the centrality of LTV:

  “LTGP, like I’ve said earlier, is the arms race of business. The higher you can get that number, the more untouchable you become.” (03:30)

• On business model design:

  “It never costs too much or too little. It just costs what it costs. It’s up to us to design our business in such a way that we make more money from that same customer to be able to not only afford them, but profit from them.” (17:05)

• On alternative monetization:

  “We offered them a complimentary wellness or lifestyle review…at this review, we sold them supplements even though they didn’t want to buy services from us, thereby making money from people who said no.” (21:40)

• On the end result of value stacking:

  “Having this type of revenue per lead unlocks scale unlike anything you’ve ever experienced. It is the key for unending growth.” (23:10)

Timestamps for Key Segments

• 00:00 – Reframing customer value/Dan Kennedy quote introduction
• 01:00–01:30 – Consulting day conversation on profit per customer
• 03:30 – Why increasing LTV is the “arms race” of business
• 04:15 – Outspending competitors and market dominance
• 10:00 – Value grid vs. value ladder model
• 14:30 – Example: Trial-to-membership revenue breakdown
• 17:05 – Real-world costs, challenge of monetizing customers
• 20:25 – Stacking offers: $75 to $1,763 per client
• 21:40 – Monetizing non-buyers with alternative offers
• 22:45–23:10 – Competitive advantage, scaling and growth

Final Thoughts

Alex Hormozi makes the compelling case that the true competitive advantage in business lies in maximizing what each customer is worth to your company—not just acquiring more of them. By shifting from the “value ladder” to a “value grid” mindset and implementing robust backend/upsell strategies, businesses can unlock exponential profit, scale with confidence, and become almost unbeatable in their niches. The episode is rich with actionable examples, clear analogies, and memorable lines, perfect for entrepreneurs seeking to level up how they think about monetizing their customer relationships.