def.
1-1-1 rule
Sell one product or service to one avatar on one channel until you make $1 million.
Glossary
Hormozi terms without softening them.
1
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100% margin
Alex's shorthand for founder-delivered time where the incremental revenue largely goes directly to the seller.
4
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4-4-4 split
A day structure of four hours of promotion, four hours of delivery, and four hours of building.
A
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AI first
Building or operating so AI is central to workflows from day one, rather than adding AI language onto a legacy organization.
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AI slop
Generic, internet-sounding AI output caused by poor instructions, weak training data, or missing standards.
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Active income
Money made from making money directly, which Hormozi frames as the source of most self-made billionaires' early wealth.
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Anchor
A high-priced offer that raises perceived value and makes a lower-priced offer feel more attractive by comparison.
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Apples-to-apples comparison
Judging AI only after giving it comparable training, SOPs, and optimization to the human process.
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Avatar
The specific buyer the offer is built for, including whether they have money, feel the pain, and are easy to reach.
B
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BYOA
Bring your own agent or agents: the worker brings trained AI agents that perform a function at scale.
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BYOS
Bring your own software: the future employee or contractor arrives with software that produces business outputs.
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Barbell strategy
Pair aggressive AI-native bets with durable bets on things unlikely to change.
C
def.
Cloud-to-dirt knowledge
Vertical integration of knowledge from high-level strategy and people to marketing, communication, systems, and API-level implementation.
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Commoditized automations
Default, already-seen automations a technical person may suggest when they lack deeper business context.
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Core economic arbitrage
The spread between the cost of getting customers and what the business makes from those customers.
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Cringe
Supposed secondhand embarrassment; someone saying they are embarrassed for you.
D
def.
Defensive status play
Alex's interpretation of calling someone cringe: a signal that the target is beginning to change status relative to other people.
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Dream outcome
The result the customer actually wants to buy, rather than the seller's time or delivery mechanism.
F
def.
Frustration tolerance
The number of times you can be rejected, fail, or get no reward and try again; Hormozi calls it learnable.
def.
Fulfillment
A broadening of things that bring you joy, contrasted with addiction as a narrowing of joy.
G
def.
Guilt
Breaking your own rules.
H
def.
Hourly rate
What someone earns divided by the time they spent earning it, even if they do not label their compensation hourly.
L
def.
Latency
The delay between purchase and outcome; Alex frames lower latency as higher speed.
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Learning
Same condition, new behavior.
M
def.
Maker
A work mode for building, writing copy, editing videos, making content, creating templates, learning, and doing deep work with an empty calendar.
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Manager
A work mode for interacting with people through client calls, team calls, vendor calls, Slack messages, touch points, and decisions.
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Manufacturing belt
A way to view the business as a sequence that turns raw attention into profit.
N
def.
Nostalgia
Memory minus pain.
O
def.
Operational leverage
The ability to add revenue without adding proportional headcount or coordination cost.
P
def.
Passion
A narrow interest that is a bad judgment filter for business because monetizing or scaling it requires many tasks outside the thing you love. [, ]
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Pattern recognition
Hormozi's demystified explanation for intuition, instinct, taste, or gut feeling.
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Perceived likelihood of achievement
How strongly the buyer believes the offer will actually get them the desired outcome.
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Proof
The real-world achievement or outcome that gives a person, avatar, or content source credibility.
R
def.
Reinforcing event
An event that makes you continue a behavior, even if the event itself is painful, because it serves a valued outcome. [, ]
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Role-based thinking
Organizing work around job titles and headcount instead of the concrete tasks and outputs being produced.
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Rule
An if-then statement.
S
def.
Self-licking ice cream cone
An automated loop where content becomes CTA-overlaid ads that launch continuously from fresh inputs.
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Shame
Breaking someone else's rules.
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Speed to content
How quickly a lead or prospect receives relevant follow-up, nurture, scheduling, or sales communication.
T
def.
Trial attempts
Money spent trying the thing, such as ads, content software, or other small investments that create feedback and leverage.
W
def.
Workflow-based thinking
Breaking work into linear tasks, inputs, and outputs that can be automated or improved one step at a time.