How Acquisition.com Makes Money

AAlex Hormozi
Small Business/StartupsBooks & LiteratureAdvertising/MarketingManagementBeginning InvestingBuying/Selling

Transcript

00:00:00Here's how my $250 million plus portfolio
00:00:03actually makes money.
00:00:04Welcome to ACQ.
00:00:05I'm Alex, co-founder of the company.
00:00:07And the point of this video is to help show you
00:00:10how acquisition.com and ACQ actually make money.
00:00:14And so what I want to walk you through
00:00:16is how we turn raw attention, so eyeballs, into money.
00:00:20And then what we do with that money
00:00:21to kind of spin the entire flywheel.
00:00:23And we do all of this in the service of the larger mission,
00:00:26which is to make real business education
00:00:28accessible for everyone.
00:00:29And the reason we made that the mission
00:00:31is because when Laela and I had sold our first company,
00:00:33we were like, you know what,
00:00:34what's something that gets us out of bed every day?
00:00:36What's something that we're really motivated by?
00:00:38And we are products of the personal development,
00:00:41alternative education, if you will, world.
00:00:43And it's the thing that lights us up the most.
00:00:46And there are very few people
00:00:47who have the credibility to teach business.
00:00:49There's some people who do it.
00:00:50Not all people who have a lot of credibility who do it.
00:00:52And the people who have the most credibility don't do it
00:00:55because they're doing other stuff.
00:00:55And so we thought that that would be a really good
00:00:57void to attack.
00:00:58So let's walk through how we actually make money.
00:01:01So at the onset, we have eyeballs.
00:01:06So there's this big world of people out here, right?
00:01:09And so these eyeballs for us,
00:01:11the ones that we are really targeting
00:01:12are business owners and people who are one degree from that,
00:01:15which would be business interested,
00:01:16watchpreneurs, seekers,
00:01:17people who want to turn whatever they do
00:01:19into some sort of business.
00:01:21Now, the vast majority of people
00:01:23who are what I would consider the watchpreneurs,
00:01:26we help them directly, but mostly for free.
00:01:29And then the business owners who ascend up
00:01:31are the ones that we end up eventually monetizing
00:01:33and create further relationships with.
00:01:35And so you can kind of think of this kind of like an onion
00:01:37and there's going to be a handful of arrows that work around,
00:01:39but I'll do my very best to describe this to you.
00:01:41So in order to kind of get people into our world,
00:01:45the first thing we do is have good markers.
00:01:47So we have, there we go, that's nicer.
00:01:51All right, so this is where we put our media.
00:01:53So this is kind of the first big input
00:01:55that we have as a business.
00:01:56This is where our content goes.
00:01:58This is courses that we have on our site,
00:02:00content, podcasts, et cetera, YouTube videos.
00:02:06All of this stuff goes in here.
00:02:07This is what we create every day.
00:02:08We put money and we put effort and we put team into this.
00:02:12This thing gets some of this attention.
00:02:14And so then we move to the next part of this process.
00:02:17So we have to get this raw attention
00:02:19to then give us some sort of contact information
00:02:21so that we can create some sort of conversion event.
00:02:23Now, depending on where these people are,
00:02:27some people convert because they want to join our email list
00:02:30for the Mosey Minute,
00:02:31which is in some ways a product in of itself,
00:02:33which then gets people on that list
00:02:34so we can further advertise to them.
00:02:36The next thing that some people do
00:02:38is that they'll go to Skool,
00:02:41which is one of our portfolio companies that we have,
00:02:44so people can start communities online.
00:02:45It's the only big brand association that we've made publicly.
00:02:49And that company continues to grow and grow and grow.
00:02:52And the rest of kind of the conversion mechanism
00:02:55then goes to books.
00:02:57So this is people who buy books on our site
00:02:58or buy books on Amazon.
00:03:01And through these things,
00:03:02we get these kind of like minor conversions.
00:03:04This is a free trial into a $9 thing.
00:03:06This is a $30 book.
00:03:07This is a free email list.
00:03:10So once we have these conversions that come in,
00:03:13at this point, we can funnel them
00:03:14to the different components of the business
00:03:15that have higher value added services that we can offer them.
00:03:19Now, as of today, we really only have one,
00:03:22which is AP or the advisory practice.
00:03:24These are the workshops that we actually hold in Vegas
00:03:29at our headquarters with our associates, our analysts,
00:03:32our directors, who help hands-on with business owners.
00:03:35And so we have three levels within the advisory practice.
00:03:38We have L1, L2, and L3.
00:03:41And some of these things may be subject to change,
00:03:43but as they currently exist right now,
00:03:45this is about $5,000, this is $35,000,
00:03:48and this is $135,000.
00:03:51And so people come into L1,
00:03:53a certain percentage of those people then say,
00:03:55hey, I want more help, so they go to L2.
00:03:57And some of those people say, hey, I want even more help,
00:03:59specifically from Alex or more detailed help,
00:04:01and they go to L3.
00:04:03Very simple names here.
00:04:04Now, underneath of this,
00:04:07this then generates, obviously, revenue.
00:04:10And this is where it gets a little bit more interesting.
00:04:11And I'm gonna fill this extra space in in a moment.
00:04:14But as the revenue comes out the other side here, right,
00:04:18and we have revenue that comes in from our media as well,
00:04:21right, and books also create revenue,
00:04:22and school also gives us revenue.
00:04:24But all of these things then shuttle
00:04:26to money on this side, right?
00:04:28All of these are, in some ways, revenue producing.
00:04:31Once we have this revenue,
00:04:33we then redeploy this revenue into various buckets.
00:04:37So one of them is ACQRE, so that's our real estate arm.
00:04:41This is where we buy real estate properties,
00:04:43typically multifamily.
00:04:44We have a good partnership through ARK.
00:04:46And we've raised funds to do these properties
00:04:49and these deals.
00:04:49And we can also solicit back to the front of our audience
00:04:52and say, "Hey, would you like to do deals alongside us?"
00:04:54But this is one of the prior methods
00:04:56that we reinvest cash, the cash that we have.
00:05:00And part of this is because it's also tax efficient
00:05:02for us as a business.
00:05:03And so that's one of the places that we put the money.
00:05:07The next place is that we put the money.
00:05:09And this is obviously outside of more people,
00:05:11more infrastructure, more tech,
00:05:13the reinvestments we put inside of the business.
00:05:15The excess cash goes into ACQ Ventures.
00:05:20So this is our venture portfolio.
00:05:22This is where we make either one of two scenarios.
00:05:24We either make very, very small bets
00:05:27on kind of unicorn-style tech companies.
00:05:29So we're talking one, two, three, 5% bets
00:05:33in smaller companies that we think have high growth potential.
00:05:36Or we're actually seeding a company at the onset
00:05:38that we think is a good idea,
00:05:40that we can then sell through this distribution base.
00:05:43Now, the reason that this is important
00:05:44for anybody who's joining the ACQ team
00:05:46is that the ultimate career path that I see
00:05:48for anybody who does a really good job,
00:05:50especially like in the advisory practice,
00:05:52is that you get so many repetitions
00:05:53of learning how businesses work,
00:05:56our process of creating value in businesses,
00:05:58that who do we think are the best people
00:06:00to start some of these other ventures
00:06:02that we would love to kind of sponsor on the way in?
00:06:04Well, the people who actually have implemented our process
00:06:07across hundreds of different businesses, right?
00:06:08And so this is where we will have,
00:06:12you could kind of consider this as a separate arms here,
00:06:14kind of coming this way.
00:06:15But this is where insurance, lending,
00:06:19some sort of sales AI,
00:06:22there's tons of different opportunities that are here
00:06:25that businesses that are in our ecosystem
00:06:27would love to participate in.
00:06:29And we would love to fund those opportunities
00:06:31for people who are on our team.
00:06:33So we have our real estate arm, we have the venture arm.
00:06:37And then beyond that, this is more or less the landscape
00:06:41of what acquisition.com looks like.
00:06:43So what's all this blank space here?
00:06:45So the blank space here is these pieces
00:06:48as they will exist in the future, right?
00:06:51This is where we will probably have the ACQ network, right?
00:06:55So a business owner association,
00:06:57which is a more scalable offering
00:06:59that costs less than this in-person experience
00:07:02or consulting work that we do.
00:07:04And people would just simply get value
00:07:05from the network of many other business owners.
00:07:07Included in this would be our AI,
00:07:10kind of business consultant that has been trained
00:07:12on all of this in-person experience here.
00:07:14They have obviously the community of other people.
00:07:17They'll have industry calls based on the best practices
00:07:19that we find from the AI that we're seeing
00:07:20in people who are like in home services or healthcare,
00:07:22brick and mortar or professional services.
00:07:24And so this is a membership that'll probably be,
00:07:27and this is probably looking at 2026,
00:07:30somewhere in the neighborhood of $5,000 to $10,000 per year
00:07:34as a membership.
00:07:36So this is not intended to be
00:07:37some super, super expensive thing.
00:07:39It's intended to have enough of a barrier of entry
00:07:41that it should be only for business owners.
00:07:44But the aggregate value of that distribution base,
00:07:47one, obviously it provides cashflow for us,
00:07:48which then feeds this entire machine.
00:07:50But also this base gives us a stronger negotiating position
00:07:54for vendors.
00:07:55So if we say, "Hey, all these guys want to have an agency."
00:07:58We don't want to do agency work,
00:07:59but we'd love to find a handful of agents
00:08:01that we could pre-negotiate a great deal for them.
00:08:03"Hey, we have a credit card provider
00:08:05"that has specific benefits
00:08:06"to the size businesses that we look at.
00:08:08"Can we negotiate on behalf of thousands of businesses at once
00:08:11"so we can get better rates or better deals?"
00:08:13All the way across the board.
00:08:14And so this then creates a huge value-added network
00:08:16where the savings accrued and the value-add
00:08:19is so far in excess of this
00:08:21that no one would ever want to leave.
00:08:22And that's kind of the thought process behind this.
00:08:24And so this in the future will actually, in my opinion,
00:08:26sit as the base mechanism.
00:08:28And then a certain percentage of these people will go up
00:08:30and they will send into the various other things.
00:08:33So it could be advisory practice.
00:08:34They might ascend into sales AI.
00:08:36They might ascend into lending.
00:08:37They might ascend into insurance.
00:08:38They might decide to do a real estate deal with us.
00:08:40We might decide to invest in their business
00:08:43from the venture component.
00:08:44And then the last piece here
00:08:46is that we do have our private equity side, right?
00:08:49And so some of these businesses that come in
00:08:51on the advisory practice or the ACQ network,
00:08:53we eventually say,
00:08:54"Hey, instead of taking one to 5% chunks,
00:08:57"we may take a 30 to 51 or even 100% stake in this business
00:09:02"and allow it to run independently,
00:09:04"maybe take some of our talent and put it inside of it."
00:09:07It's functionally, this is the ACQ universe.
00:09:10And so if we're to fast forward and say,
00:09:12"Okay, well, what's the vision?
00:09:14"What does this look like when it's right?"
00:09:15So that's kind of the flow of how the money would work.
00:09:17But if you wanna have a different visual
00:09:19of how this looks like,
00:09:20we have this big media arm at the top.
00:09:22This is the big brand, right?
00:09:24And then from that brand,
00:09:26we're essentially able to monetize it
00:09:28in many, many, many different ways.
00:09:30And so if you were to think of this like Disney,
00:09:33so Disney is a big brand
00:09:34and they have their Star Wars universe,
00:09:35they have their Marvel universe,
00:09:37they have their theme parks,
00:09:38they have Disney Plus.
00:09:39And so for us, the Disney Plus version of this
00:09:42is essentially the ACQ network.
00:09:45It's a B2B version of something
00:09:47that would have some level of media and education,
00:09:49but also a lot of ancillary benefits.
00:09:51But it's super scalable.
00:09:52It's meant to be something that everyone can participate in
00:09:54outside of the obviously just the content
00:09:57that the whole world can participate in.
00:09:58Beyond that, they have their parks, right?
00:10:00And for us, the parks translates in a B2B setting
00:10:04as the advisory practice.
00:10:06This is where they come in person,
00:10:07they get a great experience with us.
00:10:09They get hands-on help from our team,
00:10:12the people that they've looked up to,
00:10:13the people that made a lot of the case studies
00:10:15that come out in our content,
00:10:16they actually get to meet them.
00:10:17So this is meeting Mickey, meeting Minnie,
00:10:19meeting Goofy and all those people,
00:10:21but in a B2B context.
00:10:22Now, the remainder of these pieces are the other spokes.
00:10:29So for the Star Wars,
00:10:30that's like what's the Star Wars universe here?
00:10:32So for us, that would be like school.
00:10:33That's like a franchise that we're invested in.
00:10:35For a specific type of avatar,
00:10:37there's a lot of people who have knowledge
00:10:39and they would like to monetize that
00:10:40in some sort of community and we own the platform, right?
00:10:43Or we're co-founders of the platform.
00:10:44And so this is a mechanism for us
00:10:46to take some percentage of the audience
00:10:48that isn't maybe ready for the advisory practice
00:10:51or ACQ network and put them in here.
00:10:54Now, some of these people are totally qualified
00:10:55for these other things 'cause this can scale,
00:10:57but it's such a low barrier entry
00:10:59at like a $9 a month price point
00:11:00that it completely works, right?
00:11:02Now, the future arms here
00:11:05are going to be the other elements in the future.
00:11:07Like I said, the insurance, sales AI,
00:11:11and plenty of other opportunities that are going to come up.
00:11:15Now, where does the private equity
00:11:18and the real estate arm fit in here?
00:11:20Well, these are just other spokes
00:11:22that are still on this larger machine.
00:11:26And the difference is that our,
00:11:32I'll call it legacy portfolio,
00:11:34were just companies that we thought we could provide value to.
00:11:36Future looking, we're trying to only do deals,
00:11:39especially in the private equity side,
00:11:41to companies that we think can directly benefit
00:11:43the distribution base of businesses that we have,
00:11:45rather than just be businesses
00:11:46that we're very comfortable growing,
00:11:47instead be businesses that we think can handle the scale
00:11:50of what we bring.
00:11:51And so this is where the types of bets we're doing
00:11:53at ACQ Ventures,
00:11:55which will then stand up some of these other entities,
00:11:57and the ACQRE, which we can obviously raise from the audience.
00:12:01But functionally, this is what we're doing.
00:12:03We're trying to build this universe
00:12:04where once a business owner comes in,
00:12:06they don't want to leave
00:12:08because we have provided so much value on the media side,
00:12:12so much value in the network,
00:12:13or when they came out in person to meet us
00:12:16and meet the team and the consulting work that we did,
00:12:18they were like, you know what, I trust them,
00:12:20and I would like to invest my money with them.
00:12:21I would like to buy insurance with them.
00:12:24I would like to use their platform
00:12:25for the community that I have for my drumming business,
00:12:28or for my real estate business.
00:12:30I put all my home buyers into a school community
00:12:32so I can stay in touch with them.
00:12:34So this is what we are building.
00:12:37And functionally, the flow of money is straightforward.
00:12:40We put money in effort here.
00:12:42We then capture information here.
00:12:46We convert through different conversion mechanisms.
00:12:50So we had a launch, and this is where we had a webinar
00:12:53that went to the book packages,
00:13:01which for us was 6K.
00:13:04Here, the ACQ network, this might be a checkout,
00:13:07it might be a phone, it might be both.
00:13:09Here, we do almost all of these conversions over the phone.
00:13:12So our phone team then sells people
00:13:13into these various levels.
00:13:15But functionally, that is how the money works
00:13:18and how we make money at acquisition.com.
00:13:20We make money from our content.
00:13:22We make money from people buying books.
00:13:24We make money from people buying school,
00:13:26and obviously there's an equity value in that company as well,
00:13:28but we also get distributions from school as well.
00:13:30We make money from all the people who come to our parks,
00:13:33our themes.
00:13:34In the future, we'll make money
00:13:35from the people who join the network.
00:13:37And we'll make money from all the other ancillary services
00:13:40that they choose to buy.
00:13:42And should they choose to invest with us,
00:13:43we would make money there too.
00:13:45But all of this is predicated on the one single promise
00:13:47that has to be true before any of this works,
00:13:49which is that we have to make real business education
00:13:52accessible for everyone.
00:13:53And we have to make our free stuff
00:13:54better than everyone else's paid stuff.
00:13:55And we have to maintain absolute premium brand credibility
00:13:58that we are who we say we are,
00:13:59that we've done what we've said we've done,
00:14:01so that that reinforces the position
00:14:03that we have in the marketplace.
00:14:04And functionally, this is a position
00:14:05that very few people can occupy
00:14:07because the only people that I think
00:14:09have more credibility than us,
00:14:10most of them don't want to do this part.
00:14:12They're just running their businesses.
00:14:13And I think this is the unique wedge in the marketplace
00:14:16that exists that we are capitalizing on.
00:14:19And at the end of the day, what we're doing
00:14:20is we're helping the people that we care the most about,
00:14:22which is the backbone of the economy,
00:14:24the small business owner.
00:14:25And from a who is the avatar for this,
00:14:29for us right now, in terms of our monetization,
00:14:32it's usually about $500,000 to $50 million in revenue
00:14:35is kind of our sweet spot of the business owners
00:14:37that are coming in through this network.
00:14:38Now, for everybody who's less than $500,000 per year,
00:14:42it doesn't mean that there's zero, quote, monetization
00:14:45of those people or those eyeballs.
00:14:47It's just different.
00:14:48It's very distributed.
00:14:49And so we're going to get some ad revenue
00:14:50that comes from the platforms.
00:14:51We're monetizing through a lower ticket platform here.
00:14:55Books are, you know, between, you know,
00:14:57the books are free, but if you want hard copies,
00:14:59they can buy them, or if they want to buy them on Audible,
00:15:01they can get them.
00:15:01We can make a couple bucks on that stuff.
00:15:03But for these people, the goal is not to monetize in this way.
00:15:07The goal is that these people use these tools
00:15:10to create businesses that then ascend them
00:15:13into this category, which then opens up
00:15:15this entire universe of potential products and services
00:15:17that we can help them continue to scale their business.
00:15:20And then ultimately, maybe we buy the company.
00:15:22Maybe we invest as a venture company.
00:15:25Maybe they just make enough money to exit
00:15:26and they want to put some of their money with us
00:15:27in the real estate arm.
00:15:29Or they just want to buy other services from us.
00:15:32And so functionally, this is what we're building.
00:15:36And we're super excited to have you on.
00:15:37And hopefully that helps you understand a little bit better
00:15:39of how ACQ makes money.
00:15:41This is actually an internal recruiting video
00:15:43that we share to new recruits.
00:15:45And I thought that would be cool for one,
00:15:47you guys to see everyone I think should have
00:15:49a video sales letter that sells your company as the product
00:15:52to new potential candidates.
00:15:54And then second, if you are a true A player,
00:15:56especially AI or tech forward in any kind of function
00:15:59in the department or roles within a business,
00:16:01we'd love to talk to you.
00:16:03Hopefully my team will put the little link here.
00:16:05Apply if you're a star.
00:16:07And we are always hiring for A talent.
00:16:09Doesn't matter the role, we're always hiring.

Key Takeaway

Acquisition.com operates a 'Disney-style' B2B ecosystem that converts free media attention into a $250 million plus portfolio by ascending business owners from low-cost books to high-ticket advisory services and private equity stakes.

Highlights

The portfolio generates revenue across multiple tiers, ranging from $30 books to $135,000 high-level advisory workshops.

Targeted monetization focuses on business owners generating between $500,000 and $50 million in annual revenue.

Excess cash flow is redeployed into multifamily real estate through ACQRE and early-stage tech investments via ACQ Ventures.

A scalable network membership launching in 2026 targets a $5,000 to $10,000 annual price point to provide industry-specific AI consulting.

The business model uses free high-quality education as a wedge to capture attention before ascending users into paid advisory and equity partnerships.

Timeline

Converting attention into business education

  • The $250 million plus portfolio operates on a mission to make credible business education accessible to everyone.
  • Raw attention from 'watchpreneurs' and seekers serves as the top-of-funnel input for the entire ecosystem.
  • Credibility in teaching business is a market void that established business owners rarely fill due to other commitments.

The system begins with capturing eyeballs from individuals interested in turning their skills into businesses. While most 'watchpreneurs' receive help for free, this audience provides the base for the business owner ascent. The founders identify as products of alternative education and seek to provide the credibility often missing in the business coaching market.

The conversion mechanism and media funnel

  • Media inputs include courses, podcasts, and YouTube videos that serve as the primary markers for the brand.
  • Minor conversions occur through a $30 book, a free email list called the Mosey Minute, and the Skool community platform.
  • Conversion events require capturing contact information to move users toward higher value-added services.

Daily efforts and team resources are poured into content creation to harvest raw attention. These viewers transition into the ecosystem by purchasing hard copies of books or joining the Skool platform, where the brand has a significant public association. These low-barrier entries like $9 trials or $30 purchases create a foundation of data for further advertising.

Advisory practice and revenue tiers

  • The advisory practice features three distinct service levels priced at $5,000, $35,000, and $135,000.
  • In-person workshops in Las Vegas provide hands-on help from associates, analysts, and directors.
  • Revenue flows from media, books, and the advisory practice into a central pool for redeployment.

The advisory practice (AP) represents the 'parks' of the B2B universe, where customers get a premium in-person experience. Level 1 (L1) acts as the entry point for professional help, while L3 offers direct access to the most detailed consulting. This structure ensures that as a business owner grows, the portfolio has a corresponding service level to match their increasing complexity.

Capital redeployment and venture arms

  • Excess cash is invested in multifamily real estate through ACQRE to ensure tax efficiency.
  • ACQ Ventures makes small bets of 1% to 5% on high-growth potential 'unicorn-style' tech companies.
  • The internal career path for advisory staff leads toward becoming founders of sponsored ventures like insurance or lending companies.

Revenue is not just profit but fuel for new engines, including a partnership through ARK for real estate deals. The venture arm focuses on seeding ideas that can be sold through the existing distribution base. Employees who see hundreds of business repetitions in the advisory practice are positioned as the ideal candidates to lead these new, funded opportunities.

Future scaling and the ACQ network

  • The ACQ Network is a scalable membership planned for 2026 with a target price of $5,000 to $10,000 per year.
  • Collective bargaining power allows the network to negotiate better rates with vendors, credit card providers, and agencies.
  • An AI business consultant trained on in-person workshop data will provide automated advisory services to members.

The future of the business lies in a more accessible, scalable network that acts like the 'Disney Plus' of the brand. This membership creates a high barrier of entry for quality control but offers industry calls and pre-negotiated deals that exceed the cost of the membership. This network eventually feeds into the advisory practice, lending, insurance, and real estate arms.

Private equity and the long-term vision

  • Private equity deals involve taking 30% to 100% stakes in businesses that can benefit from the portfolio's distribution scale.
  • The strategy relies on making free content better than competitors' paid products to maintain brand credibility.
  • Monetization for businesses under $500,000 in revenue is secondary to helping them grow into the $500,000 to $50 million sweet spot.

The ultimate goal is to build a universe where a business owner never needs to leave because every service—from insurance to investment—is provided. The 'Disney' analogy clarifies this: media is the brand, workshops are the parks, and specific franchises like Skool serve targeted avatars. By providing extreme value at the low end through books and free content, the portfolio builds the trust necessary to eventually buy or invest in the most successful companies in its ecosystem.

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