Luke Murray spent $100,000 to meet entrepreneur Alex Hormozi and uses expected value math to justify it. Before mentorship, he calculated a $10,000 expected value from increasing client visits. After, his confidence rose from 25% to 75% probability, creating a $20,000 monthly uplift. Over five months, that adds up to $100,000, breaking even on the cost.
I spent $100,000 to hang out with Alex Hormozi. Was it worth it? So the first is expected value. And expected value I define as what are the consequences of an action multiplied by its likelihood. If I got the folks that are coming 1 or 2 times a week to come 3 times a week and that's it, what would that do to my business? And the answer is I'd make an extra $40 grand. So $40,000 times a 25% likelihood of this outcome. So outcome times likelihood is an expected value worth of $10 grand. After Alex, I now have, I think, a 75% chance of hitting this $40,000. So 75% times $40,000 is $30 grand in expected value. Now, marginal utility is the next concept. So marginal means additional, and utility is a fancy economics term that's like good happiness. I went from 10 to 30 in my expected value thanks to the Alex Hormozi experience. So that is a marginal utility of $20,000 per month. So between now, which it's the beginning of August, and the end of the year, I got 5 months. That'll get me to $100 grand. And if you'd like to see the whole video where I talk about what Alex actually told me to do and the effect it had on me, click on the link below.
