Alex Hormozi
Appearances
Next Level Pros
#142: Alex Hormozi: Why you're still broke // Next Level Pros Podcast
I'll tell you a story that you may not know this. So when I went to, we had that little meetup. It was like you meeting like six other people at your cabin, right? And so some of my audience listened to this like when I talked about that meetup that was actually with Chris. And together, it was like the eight of us were doing half a billion a year in revenue, which I thought was pretty cool.
Next Level Pros
#142: Alex Hormozi: Why you're still broke // Next Level Pros Podcast
You know what I mean? If you just added up all the business, it might even been higher than that, but it was at least half a billion a year in revenue. And it was interesting from an experience for me because that meeting was actually one of the reasons I decided to sell Gemwatch.
Next Level Pros
#142: Alex Hormozi: Why you're still broke // Next Level Pros Podcast
Um, and the big takeaway for me, like, even though we talked about lots of stuff, yeah, we talked about lots of, you know, you know, strategies, tactics, hiring people, scaling, blah, blah, blah, that kind of jazz. But the biggest takeaway I had was I looked at everybody in the room who was doing more revenue than I was.
Next Level Pros
#142: Alex Hormozi: Why you're still broke // Next Level Pros Podcast
And, you know, I was like, okay, is it, is it their skillset that I'm lacking? Like, what, what am I missing? Right. And the biggest thing that I saw as my takeaway was. I was just in a pond and everyone else was going after an ocean. And I think, you know, if I hadn't sold, then I could have continued to go down that path. But I didn't want to be known as the fitness guy.
Next Level Pros
#142: Alex Hormozi: Why you're still broke // Next Level Pros Podcast
Like I already had felt kind of tired of being known as the gym guy. And you can make an argument that that would have been a better move because I've known the space and you just get deeper and deeper knowledge and that becomes your competitive advantage. Um, but in September of 19, I started making general business content and I stopped making content about gyms.
Next Level Pros
#142: Alex Hormozi: Why you're still broke // Next Level Pros Podcast
And so, um, and it was actually almost at that time that, um, things started growing for me. And so like my podcast, I went from talking about only gyms to talk about business. And then it started growing, even though I'd been doing it for like two or three years at that point. Um, And then I think a year later after that, I started making my first YouTube videos.
Next Level Pros
#142: Alex Hormozi: Why you're still broke // Next Level Pros Podcast
And so like, I'll give you a quick extreme example. It's like on one extreme, you've got like info businesses, right? There's lots of people who have those. The pain that you experience is when you wanna get past a million a month, two million a month, three million a month.
Next Level Pros
#142: Alex Hormozi: Why you're still broke // Next Level Pros Podcast
So you basically pick a vehicle that's easy to start, easy to make money fast for, but you're not gonna make massive money, right? It's very hard to do it. Not that you can't, it's very, very hard. On the flip side, you start a software company, And like, if you do it the right way, you're probably not going to make any money at all for a long period of time. And so all your pain is front loaded.
Next Level Pros
#142: Alex Hormozi: Why you're still broke // Next Level Pros Podcast
But once you achieve critical mass, then the things just starts compounding on its own month over month over month, and at no incremental cost to you, and the thing becomes a profit monster, right? And so it's like, those are completely opposite sides of the spectrum. And it's really just like, where do you want your pain?
Next Level Pros
#142: Alex Hormozi: Why you're still broke // Next Level Pros Podcast
And if you know, if you know, ahead of time, this is where the pain is going to happen, not being surprised when the pain comes.
Next Level Pros
#142: Alex Hormozi: Why you're still broke // Next Level Pros Podcast
growth that your company had in the last year is probably more than it did in the first five years right and so like that's the thing yeah like and and it's a it's a tough gear shift probably i mean like oh this is me just to share i know you're you're in in the process of this too but like when you go from comparing your your seven to your eight growth of a business that you owned to your two to year three growth of a newer thing that you're doing
Next Level Pros
#142: Alex Hormozi: Why you're still broke // Next Level Pros Podcast
like we can't compare the two like this is this is i'm just telling this is what's been hard for me that i've had to like wrap my head around is that like oh my god like it's so it'd be so easy for me to add another like 10 million in ebitda uh you know to the solar business right versus like or or in gym watch like add another like six or add another ten whatever it is right like adding that kind of like ebitda like that can happen pretty quickly right whereas uh you know when you're the new thing like you have to think in percentages
Next Level Pros
#142: Alex Hormozi: Why you're still broke // Next Level Pros Podcast
rather than in absolute amounts. Because otherwise you'll just get way too bogged down. Like you'll get way too sad about how things aren't working as fast as you want them to. And so that's been helped too. So shifting from absolutes to percentages to relative changes. And also just, at least for me, thinking that like different businesses have different pain at different times.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
If you want to make more money, you might want to consider doing this. So number one is hold that thought for just a second because the thing that comes before that is this graph. Oh God, this is the entrepreneur life cycle and there are six stages. Now the vast majority of people get stuck on stage three.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Dude, I mean, I'm sure you see it everywhere.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
It's like, I have so much on this. So one is, right when I sat down, you were telling me about the episode that we ran that was like akin to a Shark Tank, but new version that we had on our channel. And you saw me like kind of like groan and be like, it was 56 minutes on video, but it was so much work to produce that one thing. But no one sees all the work behind it. That's the 99%.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So that's thing one. The next thing is, think about the, if you're a founder who's plagued with competition and being upset about it, I was one too, and I want to tell you how I got over it. So number one is think about the alternative, which is that no one copies you because no one cares about what you're doing. Well, then it would be a requisite for success that people copy you.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I might live in inferior living conditions for a short period, which by the way, when you're later on in your life, you'll look back and think of as the good old days because I can't believe I was couch surfing. I was pursuing my dreams, right? It's only like in the moment that it feels bad.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So as long as you are successful, this is just a part of business. The second piece is by definition, if someone copies you, they are second. Period. And so if you want to lead, you can't look at anyone else. You have to consistently be deriving the next step, the step six that's unseen from your first five steps to innovate rather than I'm just going to parrot the next thing.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And as soon as you find yourself copying, you have admitted defeat. You've admitted that you were no longer the leader and that you were just following in someone else's footsteps and you're giving them the baton and saying, you be the champion. I'm happy with second, third, fifth place. And in a winner-take-all world like attention is, all the fruits go to the first place anyways. Amen.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So I will answer with how I derived my kind of life thesis, which was after we, so when we went to, so we had taken about $40 million in distributions from Jim Launch personally throughout the years that we ran the company. And then in the year of the sale, for those of you who've never sold a company before, you typically don't want to change a lot of things.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
You kind of want the company to just be like, be stable, keep working, everything's fine. And so it's one of the most harrowing experiences to go through because you can't really change anything. And if you're the founder, you're always trying to innovate. So you can't do what you're normally doing.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Um, and you also can't start the next, so you can't change current and you can't start new because if the deal doesn't go through, then you don't want to start two businesses. Remember, cause we're, you know, cardinal rule number one, we're not chasing, chasing women in the red dress. And so you basically have to sit idly by and just like let things operate.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
When you look back, like even I find this hilarious, like how long after you do something embarrassing is it funny? At some point, for almost all of us, with enough time, the shameful experience becomes funny. And so if it is going to become funny eventually, it might as well become funny now.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so in that year, it was one of the most miserable years of my life because I basically had nothing to do. And when I looked back on my life, this sounds like, you know, I looked back on my life as though it's been so long. I looked at the days that I enjoyed the most. And on those days, I had worked out and I had produced something and I had done both of those with people I liked. And
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Almost all of those days, I'd worked many, many hours. And when I realized that the idea of working hard so that I can, insert blank, the so that actually makes it still destination-driven. So that was when I derived what I called hard work is the goal. It's just to work hard. That is my goal.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
On things worth doing. And I Those are the days that I love. And I get a tremendous amount of pushback for saying this. And it bothers a lot of people. And to them, I say, live your life whatever you want. This is, again, my life is not a sermon. It's a documentary. This is just how I do it. You can do whatever you want. And for the people who are dissatisfied, try it. And if not, no worries.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I really enjoy working. Like the best days are like when I write those books, it's the happiest I am. And it's not happy in the moment because it's really hard. But the amount of challenge is about proportional to my level of skill. And every book I think is better than the last. And the third book that's coming out is going to be fucking awesome. I'm very excited about it.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
But there's nothing that I enjoy more. But in the moment, I'm like, how do I break this down? And I'm just rubbing my forehead and I'm like, and then I create two, three different frameworks. I'm like, nope, that doesn't work here and that doesn't work here, which means some kid in Afghanistan is going to get stuck on this step because it doesn't work.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I have to figure out how to get it so that it works everywhere. And I keep driving. But the moment it's like it clicks, I'm like, that's it. Fight me. Like, that's the framework. That is what I strive for. And for me, the love, the happiness, and work have all, because of the nature of my life, been one.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Now, some people have lived their lives where their love life and their happiness and their work are all separate. For me, it has just been life. And I like it that way. And for the people who are upset by that, I'm not upset about how you live your life. I just choose to live it this way. And if in the future... I change my mind, I'll change my life.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
If I get to a point where I'm like, this is no longer a priority for me, something else is, then I will. But when I look at the centenarians, and I look at the people who... I look at Warren Buffett as somebody, and Charlie Munger as two of my heroes. Charlie worked until the day he died. And to be clear, I don't work on a seven-day calendar. I don't work a certain hour.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so it's just like pulling the time horizon up. But all of that's prefrontal cortex decision-making. And so, no, but I think that nailed it. Because when I thought about this decision, obviously I had my very emotional statement around, like, his dream has to die for mine to live. Yes. Also... Logic downside risk here. I'll have a story, and I can always get my job back. Okay.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I work as much as I can until I feel like my rate of output drops precipitously because of fatigue, and then I sleep. And then if I feel like on a longer time horizon of like, I've worked nine days, I've worked 20 days, I've worked 30 days in a row, and I'm like, all right, I feel like I don't have any gas today, then I'll take the whole day off.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And whether that's a Tuesday or a Sunday or a Saturday, I take the day off. And that just is what it is. And I've just, I have learned to work that way. And I'm okay with it.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Because that always moves.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so Jesse Itzler has this, and maybe I'll be able to steal it from him someday. But I saw him show a picture of his kid finishing a race and putting a zero up. And what that signified was nothing left in the tank, that he'd spent everything he had on the field. And I would...
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And it's like I have this visual of the 300 movie where the queen says to the king as he goes off to battle, she says, come back with your shield or on it. And I kind of see like my work that way. Like I can't imagine a better way to go out than like doing the thing I love. And it bothers a lot of people that I love something different than they love.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And it's like it really bothers me that it bothers them, to be honest. Yeah. Because I make no projections. Like do whatever you want. And I feel like if I ever had like one thing that people took from me, it was like absolute freedom. And because of that absolute freedom, we are 100% responsible for our own lives. And so where we place the finger of blame is also our power flows.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So if you blame your parents for your life, your parents have power over your life. If you blame your boss for your bad life, your boss has power over your life. If you blame you for your bad life, at least you can change you. And you can do something about it. And so I think absolute responsibility has been my core tenet.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And if you have a life where you're like, I don't want to care about work that much. And I just want to spend all my time with my family. I'm like, congratulations, you fucking won. That's amazing. Just don't assume that everyone's you. And that winning for me is the same as winning for you. And I think the times that I talk about this, I
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I know that my message won't resonate with everyone and that's okay. But it's for the few people who were like me and felt like everyone told them there was something wrong with them. And I still get people to tell me there's something wrong with me. And if wrong means not normal, then yeah, you bet. But it's more so that like you are different and that's okay.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I think that if you're okay with that, then it unleashes this whole new realm of possibility of being able to do what you want. And kind of like I had the, you know, you do 100 of these and you look at the top 10%, do 100 of these, look at the top 10%. That was my way of trying to operationalize happiness.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Because it was this ephemeral thing that when I was 18, 19, 20, 21, 22, I struggled a ton with. I was very depressed. I looked at... you know, religion, I looked at a lot of different things. And this is common for people at that age. And I came up with a mantra for me at that time, which was fuck happiness. Now, people will then hear this, and I'm sure this will get taken out of context. But that
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
was basically like this release moment for me where by continually chasing happiness, it always existed outside of me. And so it was always this carrot that was in front of me that I could never really get to. And so by saying fuck happiness, I was like, it's unattainable. I'm just going to work. And I'm just going to do the stuff I want to do.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And if I can't get that job back, I'll have other ones that will be available. Fine. And if I have a downgrading and some people think that I'm not as successful as them, okay. I'll not stop though. And so I think that that demystifies a lot of the fears. I think that applies not just for entrepreneurial fears. I think it applies for any fear. Like, I can't tell this person this bad news.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And when I started doing the stuff that I wanted to do, I looked up years later and I was like, I actually kind of like my life. And I was like, is this what happiness is? And I was like, I don't know. But I think one of the major plights of humanity, myself included, is the expectation that life should be different than it is.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so we create this idea that whatever we have right now is not what it should be. And I think should is the root of all pain, is that all the things that we think should happen but aren't is basically the measurement of our pain. And so I've tried to eradicate should for my life, should for other people. She should do this. They should do that. And just lean into is. It just is this way.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I work, period. Not I should work more, I should work less, or I should work differently, or I should see my mom more, I should call my dad more. I do this. And if something changes, I will change. And so unconditional shoulds. Now, if there is a condition of like, if you want to make more money, then this is a higher likelihood you might want to consider doing this.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Those are things that I don't consider in that category. But just the generalized shoulds of He shouldn't do that. He should build a family. He should have kids. He should have gotten married earlier. He should have gotten later. He should have married someone different. He shouldn't have the life that he has. He shouldn't work this way. According to what?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so for me, that is my theory on life, on happiness, work, and love has been very unified because I love my work so much that I got out of a relationship and when I started dating Layla, I said, I am not willing to change this. And so you have to be willing to deal with me working this way or this won't work because my relationship with my work is the most satisfying relationship I have.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Now people will hear that and be like, well, that's because he's never experienced true love or whatever narrative they'll say. But it's like, you haven't lived my life and I haven't lived yours and I don't project anything onto you. But I love what I do. And I get attacked for liking what I do so much. And I like working a lot. And it's because they have negative associations with the word.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And that's their own history of their experience with the word. But I see... my goals and my relationship with my goals is one of the most sacred things that I have because I see them as a relationship with myself. And so those proxy, when someone comes in and says, hey, you know, sweetie, you've been working too much. According to what? Why should I stop, right? Now let's do this other thing.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And people will probably see this as a, they'll put whatever labels they want on it. But like I just said, this is what I would like to do with my life. And if you can incorporate yourself into that, that would be amazing. And so my second date with Layla, after we talked about business for four hours on our first date, was I said, I'm going to be working all day.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
All right, let's play it out. I say something and then they're going to kill me? Probably not. So what's going to happen? I'll say these words and then they'll flip the table. They'll flick me off. They'll maybe just feel hurt, and maybe they'll cry, maybe they'll shout. Okay, okay, if they shouted at me, what would I do?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
It'd be cool if you worked with me. And she just worked next to me. She had her own thing, but she just worked beside me. And I was like, this is nice. And over time, eventually was like, hey, maybe you want to work on my thing with me. And she was like, yeah, that sounds good. It was a little bit more than that. But like fundamentally, I got her to switch to working on it with me.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And at that point, what we got to talk about was what we were creating together. And to me, that's been, you know, the journey of my life. And it's been amazing. And I'm not saying it works for everyone. I would say it probably doesn't work for most people. But it has worked really well for me.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And it would make sense for me that my path would be different than most people's because I don't behave like most people. And so I would have to have a different formula for how I drive, you know, meaning or joy from my own life. And since I don't believe in inherent meaning, just the meaning that we choose to ascribe to things, then it's up to me to create that meaning within the work that I do.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so the reason acquisition.com was all based on, and it was during that year where I just basically had nothing to do, where I was like, what do I want to do with my life? Because I don't need to work anymore. And that was, you know, we'd taken 40 out before the sale, and then we obviously got the sale. So like, I don't need to work. I like to work.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I try to spend, I look at, you know, I had this boss that told me this and was one of the catalysts for looking at life this way. She said, I had just had like a good weekend or something. And I came in like chipper. And she said, well, you must have had a good weekend. And I was like, yeah, it was good. And she said, this was like an offhanded comment.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
She said, I'm pretty sure the key to happiness is living as many days in a row like that as you can. And it was actually like really operational. Like I could, I was like, I can use this. Like, what are the good days? How do I live as many of those days in a row as I can? And so I've, you know, I've been attacked for like saying that I don't really enjoy going on vacation very much.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And it's because like, I just want to get, I just want to get back to doing the thing that I really enjoy doing. And I remember we, Layla and I went to Mexico this year for a week. And it's always during the week of Christmas because no one works and it drives me nuts. And I've just like, I've just given up trying to get, you know, work.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Because even if my team will work, because my team will, because they're crazy too, other teams won't. And vendors won't. And so while we were there, all I came out with was like, this is for other people and not me, comma, and that's okay.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And you just kind of play it out and you're like, okay, I think I have most of these conditions prepared for. And then all of a sudden you can have those things.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Can I throw something out that I think might, like, so this blew my mind. So I was in around that same period of time, because I talked to everybody I could to try and get context on this. And so I called a friend of mine up, or not friend, I would say acquaintance that I got connected with, who'd sold his company for hundreds of millions of dollars. Really bright guy.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And one of the questions I asked him, I said, so how do you drive meaning from your life? And he said an answer that really, really shook me, which doesn't happen that much given my world view. He said, why do you think that life needs to be meaningful? And it was just this really interesting question, which is basically that I had an unspoken demand of the universe. Life should be meaningful.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I should be happy. And so it's the shoulds that we don't even know that we think and say that are the ones that change us the most, like hardcore.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so my favorite quote of all time, which is probably at the front of a few of the books that I have and will probably be the one that will be on my tombstone, is a permutation of an Orson Scott card quote, which is, we question all of our beliefs except for those that we truly believe and those we never think to question.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so I would say that a lot of my entrepreneurial career, even just human journey has been, what are the beliefs that I so, so inherently believe that I don't even see them? I don't even think about the should. And so when he said that to me, I was like, whoa, I have had this inherent demand of the universe that my life be meaningful.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And now people would hear this and be like, they have their shoulds and they're going to say, well, it should be meaningful. And I'm like, why? According to what? And if we look at history, history pretty much sweeps everyone under the bed, like within 100 years. And within 1,000 years, basically everyone and the people that we remember, we remember some of their works.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And we go 100,000 years in the future or 10,000 years in the future, probably unlikely that we will be remembered in general. And that is solving for the idea that we need to be remembered. Again, we have to. Why? And so my solving has been for degrees of freedom and responsibility. So what are the things that I can control?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I will do the very best of my ability to try and do the things within my control to ideally make other people's lives better and my own in the process. Now, that is a choice rather than I demand that of the universe. And this gets really abstract and heady really fast. And so I will try and bring us back down to earth. But...
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
by demanding that life be meaningful, by demanding that I be happy, when I understood that I was demanding these things and pursuing them, that they were outside of me, by saying, I need to do this, that I created inherent space that I could never gap or I could never close. And so by trying to forget or eliminate The demand is where it was the first time that I experienced those things.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
It's delay discounting. What's crazy is delay discounting happens both ways. So like you set your alarm for 5 a.m. at night and you're like, I'm going to wake up at 5. But that's because you're delaying the pain of waking up. And when it's immediate, when I have to quit the job, like I'll quit my job tomorrow for 20 years.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so I try to keep them out of my head to the greatest degree possible so that I can be inside of them. That sounds weird. Rather than in pursuit.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
and so that um and so the times where i derive the most joy from my life if i'm if i'm optimizing for that which is i wouldn't necessarily say that i am optimizing for joy um i think williamson was like you definitely optimize for purpose or meaning or something like that and um I kind of reject a lot of it mostly because I do what I have been rewarded for doing in the past.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so because I have a behaviorist view of the world, which is that everything boils down to behaviors, why do I do these things? I do these things because when I have done them in the past, I have enjoyed the result. And so I continue to do things that I've enjoyed the result of. And if other people have done things that they enjoy the result of, then I encourage you to keep doing them.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I also encourage you to not project that other people need to also do those things and that they will experience the same result as you because they might not.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I 100% know what you're saying.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so it's just like we delay the fact that we're going to be miserable into the present. Like we massively discount what a whole lifetime of misery would be.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Okay.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Well, the short answer is obviously 42. But... I actually do think it's learning. Because if we think about what learning is, it's that you're exposed to new conditions that over time change your behavior. And so you are different now than you were 10 years ago because you've learned more things. And so if we think about the meaning of life as what is the output of life.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So I actually do really like this. So people talk, I can relate this to business, of course. I can relate what's the meaning of life to business. But what is the meaning of a business? The purpose of the business is whatever the output of that business is. that's the meaning. It's what the output of that business is.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so if the mission, like with Elon, is like to get to Mars, then the output of the mission is that people get to Mars. And so that's the meaning of that business. And so the meaning of life in general, for me, I think for all humans, is that the output of experience is learning. And so we will learn regardless. Whether we want to or not, we learn. Learning happens whether you want.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Whether you like it or not, you will learn. And I think that that's where I would just leave it. And the question is, are you learning the things that you want? Amen.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Man, this is a really good question. So there's a tweet that I love by Andrew Wilkinson, which is every entrepreneur ever, colon, here's the winning number for my lottery ticket. And so it's like every entrepreneur will say, here's the winning lottery ticket. But it's like that game already, that drawing already happened.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Right? And so, like, you can't cash that ticket in. It's already done. And so, people say the word first principles. No one really knows what it means. I mean, some people do, but I think far more people say it than know what it means. And so, basically, there are foundational truths of business that exist. And the conditions of the environment will change.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so you have to apply those truths to whatever the current condition is. And so that's what I try and tease out with the books and the stuff that I put out in content. But at the end of the day, you have an input of time, like zooming all the way out. Assuming that your goal is to make money, and this is just a purely economic business goal.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
then you have time, which is the primary currency that you trade it and you make dollars over a period of time. And so I tend to reject the idea of like never, you know, never trade time for dollars or anything like that because everyone trades time for dollars. It's just some of us are more efficient at it than others.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
But even exchanges that occur that just are not denominated in time still occur over time. And so you have this foundational unit of time, which you're going to give in. What we're seeking is the highest return on that time. And so there, you know, within a business context, there's kind of three levels of things that have to occur in a business.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
You have to, you know, attract attention, you have to convert attention, then you have to deliver something for that attention. And in each of those things, you want as much leverage as possible. So you want as little time as possible required to get the most output.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so I have built acquisition.com on basically two primary theses, which are in the logo, which is, this is a fulcrum for leverage for people that can't see it's like a triangle. Yeah, so it's like a triangle or the Illuminati, because that always gets brought up. All right. So we've got the fulcrum for leverage, and then inside of it, you have supply and demand.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I see those as the two foundational principles of business, which is you need supply and demand to have a business and then leverage to get as much out of it as you possibly can. And so when you're looking at the assets that you have, assets can also be skills, resources, what you have available to you.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Now, if you have nothing, then all you have is your brain, your hands, and the time that you have that you can put towards learning something, which is why I'm a big fan of skill acquisition as one of the primary things that you can do is educating yourself.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
and not formally educating but informally or alternatively educating yourself on super tactical things uh once you get over the fear then you start asking okay how do i let people know about my stuff and what do i let them know right and so you have to have something to sell which is the offer and ideally you want the offer to have as much leverage as possible like so if you sold software or you sold media those are things that you can uh cut once sell sell a thousand times um
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
If you have a conversion mechanism, it's like you can't have it be automated like a checkout page or some sort of video sales letter or something like that where people just buy without a phone salesperson. If you add a phone salesperson, there's less leverage. Not to say that's wrong, but you want to have the highest leverage opportunity.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And then from the deliverability perspective, I kind of talked about deliverability first, but from the advertising perspective, if you reach out to people one-on-one, that's lower leverage than being able to make one piece of content that a million people see. Right.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so over time, you go from low leverage to high leverage where you have the same inputs, but you just get significantly more for your output. And that fundamentally is like if we're reasoning out from first principles, how do I get that said differently? The question someone I think is really asking is how do I get the most for what I put in?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And you have to reason within your current context of your skills and your resources and your assets in order to derive that solution for you.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Yeah, right. So I would say business ideas typically come from one of three Ps. So it comes from a pain that you're currently experiencing, a past profession, so the thing that you just quit or some of the jobs that you just quit, or passion. So something that you're inherently interested in that you would spend your time doing anyways.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Some skill that you learned while you were in the workforce, which, by the way, is one of the most proven ways of making money because – The economy has already showed you that people are willing to exchange money for that specific job. And so in the world of gig economies and solopreneurs, every business can be dismantled into just jobs being done. And all of those jobs can be fractionalized.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So we look at any business. You've got sales. You've got marketing. You've got customer success. You've got customer support if you want to differentiate that. You've got product. You've got design. You've got web pages. There's so many different components to a business. You just need to learn one of them.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And then it's like, boom, you have a skill that you can trade for money that you don't have anybody else to report to. And then pain is usually, I think, in some ways, sometimes one of the biggest drivers is like, you had an eating allergy, and you couldn't find pancakes that dealt with your specific eating allergy.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And you bet that there's a decent amount of other people with that allergy that also like pancakes. And so then you make pancakes that, that are delicious and amazing that also cater to people with that food allergy. And then all of a sudden, like you have a business based on pain.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
At Acquisition.com, we scale businesses. The content that I generate that we put out, conversations like this, helps people who are going from zero to one, just getting off the ground, to helping people go from 1 million to 10 million, to helping the entrepreneurs going from 10 to 100 either get there or exit along the way.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I think that deep knowledge of the prospect is paramount or very important for creating exceptional products. And you can either do that by doing a ton and ton of research or by being the prospect. And there's a certain amount of like visceral feel that you'll know. Like if someone wants to make a nose product for breathing, I have tried every product since I was in eighth grade.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So it's been 20 plus years, 30, whatever, a lot of years that since then, and I've tried everything. And so I know the pros and cons of every product that exists in the market. And I've done, it's not like, oh, I tried it for a day. It's like, I'll try things for a month at a time.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so I have so much time exposure to this problem that I have a lot of nuance in my opinion on what's wrong with the solutions so I can formulate a way better hypothesis on how to fix it.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I met the guy who invested in Regal Cinemas, which is probably the biggest chain in the US. And it was when I had just one theater. And it became obvious COVID has disrupted that business. But for 20 years or whatever, they crushed. And he said, it was so weird to say that, oh, cinemas are going to make a comeback because they've kind of been on a downturn or something like that during...
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
the time that he was making the investment. And he said, the reason I decided to invest in it was because this guy knew everything about the business down to how much the cost of a kernel of popcorn was. And he just knew it so like the back of his hand that he was like, this guy can't fail. Like he just knows too much about this business to not have it work.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I've made some of the biggest career mistakes at this point and you end up living the same six months for 20 straight years suffering until you learn how to break free from it.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so in investing in, you know, making a gazillion dollars. And so, but I think that deep understanding, and if you look at all of these, the passion things, you'll have deep understanding because you're spending all of your discretionary time pursuing this passion.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
The pain, you have a deep understanding of the problem and the prospects going through it because you've experienced it probably for years. Now, the professional one, I would say, is a bit of a shortcut because if you're quitting the job because you don't like it, and then you say, I'm now going to do this for myself, well... Okay.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I mean, well, the one proven point about that is that that one is proven to work from an economic perspective. You will be able to make money doing that because you already have made money doing it. These other two are less proven but sometimes have a significantly more upside.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Yeah. So Bezos has this great framework where he talks about missionaries and mercenaries. And so it's kind of like you have the guy who says, okay, I looked at market trends and this is a growing category. And, you know, I surveyed people and this was the, you know, the result that came back.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And there are frameworks that cross all three of those that I consider both deep and wide. that help any business navigate whatever strategic decision is in front of them to get the highest potential return for their time.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so I believe that if we time this product right at this point in the market, we'll achieve huge, you know, a mass adoption, blah, blah, blah, blah. And it's like lodging your way through. And to be fair, some people do, you know, do make it work.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
But the missionaries are the ones that end up making the most money because like they do it, sure, for the money because the business has to have some economic engine behind it. But really because they viscerally experience this problem and don't want anyone else to deal with that problem either. And so like if I were to tell that story like you're saying, like –
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
when I was in eighth grade was the first year that I started really noticing I couldn't breathe at night. And so I learned how to fall asleep with my hand on my face like this so that my nostril would, so I could fall asleep and my hand would stay. Because you, there's no actually other, because you can't hold your, because you fall asleep, right?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so if I fall asleep with my hand like this, right? Like I'm on the couch and I fall asleep like that, it keeps my nostril open and I can fall asleep and it doesn't move. And so that's how I learned how to sleep for years before founding like, just like simple nasal strips and things like that. But there's tons of problems with those solutions that exist right now that I won't get into.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
But maybe someday I'll make a nasal product.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I can tell you, if you put every product in front of me that exists right now, I can tell you what's wrong with it. Because I've tried literally all of them. not like I'm pretty obsessive. And so like, I've tried all of them.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I've tried, I've tried the ones from Europe. I've tried the one, like not just us. Like I've tried, I've tried every product that exists on Amazon. I've tried all the ones from foreign countries. Every, every fan or follower who sends me a product that is a nasal company that's new. Um, I will try the product. I still do.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Um, and there has yet, there's, there's yet to be one that has truly solved it.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I think in some ways – so this is actually a really good meta concept here, which is that if you want to be compelling, a demonstration or a model is always more compelling than anything else. And so me even going through that entire narrative, right, is taking everyone else who's been listening to this on some journey.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
It's like if you want to make a compelling pitch for a business, it's like we pretty much just kind of went through one. And so – That's really what it comes down to. It's like, well, what do I do with my business? It's like, create your narrative of why you're even doing this.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so if you're listening or watching, then if one of those frameworks applies immediately to your business and allows you to pull five years forward in your career, I would say that's a pretty good return on time.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And if you can explain to somebody why they should care about this problem, or more specifically, why you care about this problem, I'll tell you this, more investors will like, I might be like, I don't care about kitchen utensils, but this girl certainly does. And I'm sure there's other women who do too. And what everyone wants to see is obsession.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And unfortunately, in like some of the world, I know more in the UK than the US now, like that kind of perspective of like just being all in obsessed with stuff has almost been like bastard or like, you know, been chastised. And I, but the people who are obsessed are the ones who changed the world, at least changed their world.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And, and I think that, so a very close friend of mine did all the Olympic teams, nutrition and supplementation stuff for a country overseas. And he said, you know the difference between champions and everyone else? And I was like, what? And he said, everyone always looks at them and says, what do champions have that I don't have? And he said, they have it backwards.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
He said, it's what do champions not have that I have? It's what do they lack? And it's an off button. They just don't stop. And so in dealing with the gold medals, he's like, they just never stop. They just can't stop. Everything in their life is geared towards one goal. And so finding that thing and they approach everything in their life that way.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I think that that level of obsession around like everything that you touch on a daily basis is required for really getting to where you want to go.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I've had two surgeries. Both of them didn't really work. Like, I mean, like, I've got the story.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I feel like I may have popularized some of the Nedstrom stuff.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Yeah. Ideally, you have all three. If you have all three, then you're, I mean, my God, you're set. Like if you, if basically pain created an obsession and for some reason you also were doing something like that in your work, like I feel like the likelihood that you don't succeed is almost nothing. You only need one of those three. You just pick one.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Like if you just had one pain that you had that you wanted to overcome or one passion that you were just inherently interested. Because sometimes passion has nothing to – like you might just be really into model cars. It's okay. Well, there's a lot of businesses that you can build around model cars. It's like you can manufacture model cars.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
You can have services around model cars, making them faster because some people race model cars. You can be a collector and start flipping model cars. Like you can just make media around how to build them and then have a media company around it. Like there's so many different components of any business. obsession or interest that you can make.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I was talking to you on one of the future episodes of Mosey Tank that's coming out. We have a guy who loves Dungeons & Dragons. So he's an IT guy and just loves Dungeons & Dragons. And he was like, I just want this to make enough money that I don't have to do IT anymore. And but it was so pure, you know what I mean? And so I was like, we're gonna help you do this.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so we kind of walk through the business plan for like, is he going to be a billionaire? No, but I also don't think that's his goal. And so I think being really clear on what you want is important. So if you're like, I want to be the richest person in the world, I think it's a terrible goal. But if you want that, great.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I think it's – there's what they think they want and what they actually need, which are two different things. And so I think what they think they want is some tactic that's going to immediately help them start a business. What they typically actually need is –
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Well, you have to have a multi-trillion dollar idea because now – because by the time that occurs, there's already multi-trillion dollar companies now. So you've got to be looking at like decatrillion dollar opportunity. And so believe it or not, basically the bigger the goal, the narrower the scope of the path to get there.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
If you're like, I want to make $10 million, I'm like, you can literally do that in almost any business. You want to make $100 million? Probably still almost any business you can do it. On a long enough time horizon, you can do it. A trillion or decatrillion, it's going to be some sort of tech. It's probably going to have some sort of AI.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so you get basically the bigger the goal is, the narrower the scope of how to get there. But the vast majority of people are like, I want to be the richest man in the world just because they don't know how to like really think through it and be like, all right, well, after like 100, there's really nothing you can't do. except buy more big things.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
But like in terms of your actual consumption, maybe even 20 is like, you can only eat at restaurants that go so expensive. You can only stay at the best hotels. You can only drive the nicest cars. You can do that with about 25 million.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So I'll tell you what I wouldn't do first, which is I don't think I'd try and out-science the science people. Because, like, unless you have some PhD, there is a PhD guy who's already jacked, who's making content. And so he's more knowledgeable and more jacked than you. So you're not going to win there. And so I think in the game of attention, it's trying to find what is unique, right?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so how do you, quote, stand out when everyone's loud? And this is going to sound trite, but... your fingerprint is unique, literally from a biological perspective, but so is your life and your experiences. And so there's real alpha or benefit to be had above normal level of effort by leaning into you. And so what makes every person unique is what makes their content unique.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so trying to be like, oh, I want to make content like Alex is probably not the best way to do it because you're not going to beat me at being me, but you'll beat me at being you. And so it's basically your flavor of media. So like for me, it's like, you know, what is my brand to model this? It's like, well, I have elements of philosophy that are in my brand. Well, do I need that?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
No, but that's like kind of me. I obviously talk a ton about business, marketing and sales, promotion, conversion. Those are all things that I spend a lot of time thinking about. And so a lot of my content's about that. Fitness is a component of my life. And so there's light sprinkling of fitness in my content.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Also, I come from a background of fitness with Gym Launch and the companies that I owned before that. And so... That would make sense that, and my wife Layla said that sprinkled in. And so like those are basically the components of my life. And so that's what kind of shines through in my content. I consume a ton of comedy.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so sometimes you'll see some dry humor and dark humor that shines through. But that's me. Now you have all of those little buckets of you. And not only are those buckets unique, but also the proportions of those buckets will be different. And so maybe your philosophy is way bigger or maybe fitness part is way bigger. But I think what makes the truly unique personal trainer fitness brand
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
people being interested in you for being you. And then being like, by the way, I have fitness stuff if you want to buy it from me. And I think the key part is the vast majority of products and services are commoditized. You're probably not going to be significantly better than other trainers, just being real. You probably aren't. But you will be different than them.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
the courage to be willing to be wrong and to be willing to have shame by failing at things in front of people whose opinions they care about. And I think that's, if I rewind the clock for me, it was probably one of the hardest things that I had to get over. And so I think that's why maybe my message resonates with a lot of people is because it was so hard for me to get over.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And we want to lean on, I want to buy fitness from somebody, and so I might as well buy it from her, or I might as well buy it from him. So you're taking basically the audience that would buy from anyone, but your brand premium gets them to want to buy it from you. We think about Prime, for example, with the drink company.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
It's a drink that there's other products that already exist in the marketplace that satisfy the same thing as Prime.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
But if you are agnostic to that brand and you have brand affinity with that creator, then you're like, well, then if I have two things that are basically equal and I just like this guy better, I'm just going to, as long as the prices are comparable, I'll just vote with my dollars here.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so I think that if you're a personal trainer in 2025, it's going to be long-term, it's going to be building the content. Short-term, it's going to be outreach to people that you know and making a compelling offer to get people to try to work with you.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
This is going to be f***ing awesome.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And it's, I think, it's leaning into it. And the thing is, is that everything in you wants to not do that. I'm not really sure why. But I was having a conversation with Layla, I want to say two nights ago or three nights ago. I got a bunch of flack for some ex posts that I made. And she just looked at me and she was like, never dilute yourself.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Because I was like, maybe I shouldn't talk about this stuff. Like maybe I should just like, you know, I'll just lean off. And she was like, never dilute yourself. Like there are so many more people who need that message than people who are hating that message.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And she was like, and if you're actually going to make a difference in a lot of people's lives, there's going to be an equal and opposing force of people who want to reject that. And she's like, this just comes with the territory of like how big of an impact you want to have.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
It was just such a great, you know, wife talking to husband, you know, conversation that I guess for me at the end of the day, I'm like, as long as she thinks I'm cool, like, you know, I'll keep doing it. But yeah, it's just because the diluted down version all of a sudden becomes everyone else's stuff.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And what's interesting is basically anybody who's listening, The harder it is for you to break free of whatever kind of mental prison you've made for yourself, whether that's real or just in your head, the more compelling your story will be when you break through it because it will resonate with even more people.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
You know, what's really interesting is navigating the gray. And so there are contradictory ideals. And this is what I kind of come back to when I'm like worried about these types of things, which is like, you've got mercy and you've got justice. They are somehow opposed, and they are both ideals. So how can we believe in justice and also believe in mercy at the same time?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so, I mean, you can have variety and consistency. There's tons of examples of this, right? And so we have these diametrically opposed ideals, which means that if you ever say, by the way, I'm a little bit more of a justice guy. Like I understand they had a hard time, but at some point you gotta take your own personal accountability. So like, no, you're not gonna get out of the speeding ticket.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
You're gonna get like, that's what's just. On the other hand, it's like, hey, single mom gets pulled over for driving too fast. You know what? Maybe we let her off today. Both of those stories, fair. But you're going to get attacked by the other side that has an ideal that all humans try to strive for. And it will feel terrible because they are right. And so what?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so I think that like understanding that that conflict will always exist between two apparent ideals that, and this is fundamentally what politics is, is that there are two apparent ideals that all of us, I would say 99% of people would say justice is good, mercy is good, variety is good, consistency is good, right? Respecting values is good, so is innovating and doing new things.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
How can we have both of these contradictory ideas and at the same time like navigate that without conflict? You can't because how much becomes the question. And so I think that your thumbprint as a creator is that when someone presents a scenario and says, does Alex choose mercy or justice in this scenario, that your audience says, gets it right.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so I think about branding in general as basically a mosaic that you get to create. And so like each piece of content is a little tile that has a single color on it. And if you just see one piece of short content of Stephen Bartlett, You don't really have an idea who Stephen Bartlett is. But if you see a thousand of them, all of a sudden you zoom out and you get to see the whole picture.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I think that the colors that are in those mosaics and the proportion of how many yellows, how many reds, how many greens, and where are they is what ultimately creates the brand. And so – because people want to try and turn this into, okay, so I make one post about family. I make one post about finances. I make one post about whatever, right? It's like – I don't think that's how it works.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Uh, for the people that it was easy that their story doesn't have, it doesn't have a lot of, like I was immediately an entrepreneur. Like I wasn't like that. I had a job when I was in high school. I had a job immediately out of college. Some people were like, I was selling lemonade out of the back of my, you know, thing when I was 13, I didn't do any of that. Like I, school failed me.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I think you just be you. And then those proportions will naturally shake out. And also over time, you will change. And so it also makes sense that your brand will change. And that was also another thing that I had to reconcile, which is like, wait, I don't know if I agree as much with some of the things that I said 10 years ago.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Because the thing is in the digital world, like my first podcast was 2017, July of 2017. Episode eight is called Stop Branding. I have changed my views on branding, to be clear. But that first podcast is 90 days from when I lost everything. And so the entire Hermosi journey, if you want to call that, from zero to billion, is actually documented 90 days from zero. It's all there.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so you can see how my views on business have changed and what I was thinking about at every kind of portion of my life. And so I had to just be okay with the idea that like, I will change my mind because I will get new information because let's take the alternative stance. If I get new information, do I just keep parroting what you did before? This is also an issue with politics, right?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
You've been in politics for 20, like you haven't learned anything, like no stances change. Like I feel like we should be able to do that. And obviously brands don't work that way. So it has to be gradual over time, which I think if you were always you at all times, it will be gradual over time.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So what's interesting about the 20% is that, like, I was thinking about this today. So no matter who you are, you're going to be disliked, period, because no one's liked by everyone. So if we can accept that as a premise, right, no one's going to be liked by everyone, you might as well be disliked for being you than being somebody else. Amen. Amen. At the most basic level.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
The being disliked is a fixed cost. And I think to take the opposite perspective, I think it is far better to be disliked for being who you are than love for someone you're not.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I actually was pretty good at school. I didn't have any of those issues. You know what I mean? And so I had a pretty clear career path. And so I had what many would consider like I had a real opportunity cost. So I had a white collar job and I had a GMAT score above Harvard's mid score. And so I had a really clear path of what my life could look like in the next 20, 30 years.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
An artist in scaling companies into the millions and a leading voice in how to craft your way to success. He's an entrepreneurial powerhouse. Whether you're starting out or want to go from 1 million to 10 million, there are certain behaviors and actions that will increase the likelihood of success that we're going to go through.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Yeah.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I was just going to say that. Yeah, the Willem Dafoe ad. Yeah. Like what's yours is mine and what's mine is mine. Yeah. Just like it was actually the first time that I'd seen something from Nike in a long time that I was like, this is what built this brand. And I think they had lost their way for a while. Yeah. With like the wokeism and all that stuff.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I think it's like Nike means victory, which means people have to lose.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Yeah. I mean, it was the first time I actually felt like I had positive brand affinity towards the brand in a long time.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Yeah. So I'll start with one thing and then I'll answer the question. So I was talking to a mentor of mine and he said, when I was in my 20s, it was all about the destination. He said, when I got to my 30s, I realized it was all about the journey. He said, when I was in my 40s, I realized it was about the company. And I was like, I can't wait till you're in your 50s. The next one, right?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
But I thought that was such a profound shift in terms of how he thought about his business success. Because he was like, I don't need to be a decabillionaire. He's like, I'm cool where I'm at. And now I just want to do it with people that I like. And so to the question about people overall.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I believe that the potential of an organization is directly correlated with the aggregate intellectual horsepower of everyone contained within it. And so if you are the smartest person in the business, then, and you can do everyone's job better than everyone in your company, then it means that the limit of the business is purely based on one person's horsepower and one person's life experiences.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And that will be the cap. And basically it doesn't matter how smart you are. You can't live a hundred lifetimes. Like you can learn quickly. Sure. There's some people who can learn faster than others, but you're not going to be able to live a thousand lifetimes. And so. As a business grows, more expertise is required.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And it was fairly well defined. Like I'll go to Harvard or Stanford or one of the top business schools. And then I will either go back into management consulting or I'll go into investment banking and then eventually end up in private equity. And that would be the path, right? And then all the flowers would be set at my feet and, you know, everyone would say, we approve of you.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I think the easiest litmus test for this is if you look at the richest people in the world, almost none of them own 100% of their business. So number one. Most of them don't even own 50. Like most of them are small percentages. Jensen Wang's at 4% for Nvidia. Bezos is at 7% or 9% for Amazon. I think Elon's at 20% for Tesla. Like small percentages.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And it's because it takes a lot of horses to take a chariot to the moon, right? Mm-hmm. And so basically, as you put in more intellectual horsepower, the potential peak of the business goes so much higher, so much faster. Keith Rebois, he's one of the original PayPal mafia guys, has a really good analogy for this. And he talks about it in terms of barrels and ammunition.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And he says, so as soon as you get some product market fit, the business starts to grow. And you say, OK, we need to start shipping things faster. And this works the same with a services business, a physical products business, software business. The concept's the same. And he said, so what happens is you then hire a lot of people.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And you assume that your throughput is going to increase proportionally. So we have 10 people. We hire 50. We should 5X our output. And then you quickly realize that that is not the case. And so what happens is there are people who are rate limiters for an organization, and those are the barrels.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So think about like a Civil War barrel, you know, old cannon, and you've got these cannonballs next to it. He said most people are ammunition. And so you bring more ammunition, but you're still going to be limited by the one barrel capacity of how many shots can get taken by the barrel. And so you need to find more barrels.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So you have to go from one barrel to two barrels, two barrels to three barrels. And that becomes an increase in capacity or throughput for the organization. And there are very few of those. In a different, I can't remember the law, but it's some organizational law, but the square root of the number of people in a company generate 50% of the work.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So if 100 people in an organization, 10 people are responsible for 50% of the value that's created. Facts. Right. Anybody who's been in a, like, you're like, like, preach. And so the thing is, is I think the real game of entrepreneurship is that your standards rise over time. And it's unfortunate because we hear things that other entrepreneurs tell us. It's all about the people, stupid.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And then you're like, sure, but look at my – and it's like you're not hearing it. And I don't know. I think Williamson talks about this, how there's like some lessons that for some reason it's like we have to learn for ourselves. I still believe that it's like we can operationalize this at a lower level so that we don't have to learn it for ourselves. I'm convinced. I haven't figured it out yet.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So every entrepreneur can resonate with this, which is –
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
every business that i've started i've gotten to the success of the business prior way faster and i kind of liken it to a video game where it's like you beat level one and then you know you get to level two and it's like you spend months trying to beat this boss and you finally figure out how to beat the boss and it's like great and you spend another three months getting beating boss three and let's say you start the game over with a new character it's like you just zoom through level one two and three and then you get to level four and you're like shoot now i gotta spend time it's like virgin land like i don't know how to beat this yet
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
You're an excellent person. But when I saw the people who were 20 years ahead of me, I really didn't want their life. And then it started making me look at my life and I was like, I don't even know if I really want my life. And so the big decisions that I've made in my life, unfortunately, have almost always come at the doorstep of apparent death.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so I think that that happens for archetype finding for skill and talent within an organization. Say that again. So if you have functions across an organization, there are people who are going to drive results within that function. And the first time you hire a salesperson, for example, you don't know what you're looking for. And so you just hire a human who says they can sell.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And maybe they can, maybe they can't. And then you try to train them. That doesn't work, does work, whatever. And then finally, let's say you cycle through three sales guys, and finally you find a killer. And then you have this pattern recognition. You're like, okay, that's what I'm looking for. And then all of a sudden, you try and approximate that person or that archetype as much as you can.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so when you start your second company, you're like, oh, I can quickly staff up sales because I know what I'm looking for. But then you're like, shoot, I've never really nailed sales manager yet. And so then you cycle through, you start whacking away at the boss and then you have to end up firing the boss at a level because you're like, oh God, this didn't work.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And then six months are gone because you had to find them, recruit them, hire them, train them, and then find out they sucked and then start over again. And maybe it takes 18 months to really find the right sales manager. And then you're like, okay, I know what that looks like, but I still don't have a director of marketing. What does that look like?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so it's basically developing this pattern recognition across all functions of the business so that you know what exceptional looks like. And then over time, what happens is as a business grows, your ability to attract talent increases. And so then your standards also grow.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And then you find out that there's even more nuance to this, which is that there's a director of sales at a $1 to $10 million level, which is a different looking person from $10 to $100 million level. And it continues to go all the way up. And so it's basically building this repertoire of identifying patterns.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And if you talk to, I would say, more experienced entrepreneurs now, they don't talk about building businesses. It's like assembling them. You just assemble the pieces, and you just know that this is how it's all going to flow together. And that fundamentally is basically what I try and decode within the content that I have so that it's like, here's a pattern for how you recognize this.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Here's a pattern for how you recognize this so that you can just move faster through the levels to get to where you want to go. And so to loop back to the original question, which is how important are people in an organization? People are the organization.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so if you ever want to build enterprise value, it's building the collective consciousness of the organization, the skills, and how they collaborate together towards a specific outcome. And so knowing how to staff that up is the job.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I think maybe in some ways that makes me a coward for having needed death to make decisions. And so operationalizing that has been something that has helped me move faster to make decisions that I know I need to make but don't. And so like the first big kind of like what felt like a death decision was I was a consultant, 22-ish years old.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
The simplest way of doing it, so the simplest way of attracting somebody to your business when you don't know how to do the job or know who to look for is to unfortunately do the job yourself. And then once you can break down the job, we follow three Ds, which is document, demonstrate, duplicate. That's how we train anybody.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So first, you have to document everything that you do to successfully do the job. And that's step by step into a checklist. Then you demonstrate. So you do this checklist in front of the person that you're trying to bring on. Then they duplicate. They do the checklist in front of you.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
What's interesting about that three-step process is that you'll often find when you try to demonstrate following the checklist, you don't follow your checklist. And so then you have to adjust the checklist until you actually follow the checklist. And then when you can consistently follow that checklist and get the output, then you can have them do that checklist.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so I think this is why bootstrap founders I think oftentimes will find they tend to know more about more things because they had to learn them in order to teach them. Now, what's really interesting about what you said about accidentally finding that star at three or four years in is that I think that happens to almost everyone.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Well, hopefully, the people who end up making it, it happens to almost everyone. Because then you realize, oh, my God, like if I had four of these people, like we could change the world.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So as you go up in the organization with hires, the risk and reward goes up.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so that's something that a lot of people don't like talking about, but I will, which is if you hire somebody, and let's say that they're not a cultural fit, maybe they have the skills, or they are a cultural fit and they don't have the skill fit, and they're a leader, what you find often, and it sucks, is that everyone, it's almost like it's like a tree that has an entirely rotten branch.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
It's like you end up having to scoop out three quarters of what was underneath because you realized that they were ineffective or they just were against the actual mission of the business. And it's harrowing and it's horrible. But I try to give this analogy to my team because we've had to do it in every business. Like it happens. It's just part of business.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
If somebody goes to the bar, and you're at the club, and somebody racks up, you know, just ordering shots for everybody, shots, shots, shots, shots, shots, shots, and then that guy dips, that guy leaves, we all have to pay the bill. In the moment, when we pay the bill, when we scoop out the dead wood, when we scoop out the rot from the organization, it feels horrible.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
But that pain isn't because the scooping out the rot is bad. It's because we planted it on bad ground or because that guy ordered all these shots but couldn't afford it. And I have a different analogy because I really want to drive this home because I think it's important, is that in the relationship world, If one spouse tells the other spouse, hey, I cheated on you. I had an affair.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
That moment is incredibly painful for both parties. And so what it makes you think is, oh, this was wrong to tell the truth. but it's not wrong to tell the truth. What's wrong was cheating. When you tell the truth is when you make it right.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so the pain that you often have to encounter in the organization feels wrong, but is right because you're writing a wrong, and that's where the pain occurs. And that's why so many businesses stay stuck is because they have this affair, they have this person, and they're unwilling to have that hard conversation or multiple in order to make it right, and they stay stuck for years.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I had a paid for, you know, condo that I bought overlooking the city. And I remember thinking like I really hope I don't wake up tomorrow. And that – and I don't mean that to be melodramatic. I just – for a period of time, I just always just like hoped every night. I was like I just really hope I don't wake up tomorrow. Like I just don't want to do this.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Yeah, right. A year later and you're like, it's still John.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Right. And what no one wants to discuss is the fact that everyone else knows John sucks.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And that that becomes the minimum standard for what is acceptable for excellence in the organization. And so I think like, so if brand is what your reputation is externally, I think culture is kind of what reputation is internally. And so I define culture operationalized because I think culture is a very fluffy word. What does that mean? Right.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
It's the rules that govern reinforcement within an organization. What do we reward? What do we punish? Right. And so the thing is, is that there's realistically, there's like, people have values because they're bundled terms that ladder up many behaviors. If I said Rolls Royce probably would have some value, that's quality over speed, probably, right?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so they would have that, but somebody would have to say like, well, what does that mean, right? Well, we hope that we use this as a decision-making filter for how it affects behaviors on every situation so that when you're in the, should I go fast or should I make it right? You make it right. And there are other organizations kind of like the speed, justice and mercy, speed and quality.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Both of them are important. And sometimes they sit diametrically opposed. And so we have to say, where do we sit in the gray so that we can duplicate decision making across the organization so that we can maintain the culture? And so culture, you know, Layla says this a lot, but culture, I think this is a Drucker quote actually, culture trumps strategy like twice a week and every day on Sunday.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
If you have a mediocre strategy but an unbelievable culture, you will crush somebody who has a great strategy and a terrible culture. Because culture ladders up to performance and execution, and almost every business is limited by execution, not strategy. Most business strategies isn't that complicated.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Like, let's do a really good job, so good that people tell their friends about us, and as long as we have enough gross margin, we'll make money. It's not that hard, right? It's just that the doing it is the hard part. And so when we have these, they are the spoken and unspoken roles, mostly unspoken.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
If someone shows up three minutes late to a meeting, and there's 10 people in the meeting, and it's supposed to be a marketing meeting, and I'm there... If I don't say anything, I have now said, we have an unspoken rule that if someone shows up three minutes late to a meeting, it's okay. I've reinforced that rule. Now, I've reinforced it by not punishing the behavior or at least calling it out.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
On the flip side, if someone comes in and I berate them, that's also a way of changing behavior, maybe not the right way to do it. But I could then, like, what do you do in that situation? Someone shows up three minutes late, right? first off, you would probably sideline with that person and be like, hey, I don't know if you realize that you were three minutes late. What happened?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And what was difficult about that was that at that time was when my father was most proud of me because I was doing everything that was according to plan. You know, he could talk about like his son who graduated in three years from Vanderbilt, had the good job, like everything was, we're following the plan. And it was upon realizing that,
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And they're like, I was on a client call. It went late. I'm really sorry. Or I was on a sales call. For me and my organization, clients and sales, like, will take priority. So if you have a meeting and you're on a sale and you're about to close it, close the sale, right? But if you were just doing nothing and we have this meeting, then this is the priority.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so the next time we hop on, I'll be like, hey, guys, I just want to address something. John was late. He was late because of a sales call. Or when I DMed him right as he got on late, I would say, hey, make sure you say that. And he'd be like, hey, guys, sorry I was late. I was on a sales call. And then I would say, that's fine. You're good to go. Always go make money.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And then I'm reinforcing the right thing, right? And so I think we're very big on rapid feedback in the moment because that's how you train behavior. So if you look at, so there's tons of studies on this, but basically if you want to train a dog, right? And you want it to sit. If you have it sit and then immediately give a biscuit, it learns really quickly.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
If you have it sit and then wait 10 seconds before you give a biscuit, it takes like three times as many repetitions for it to learn that the sitting gets the biscuit. If you wait more than a minute, it never learns.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
You can see the learning curve. The amount of repetitions just skyrockets until eventually there is no amount. But here's where it gets crazy. That biscuit is still reinforcing something, just not sitting. It's reinforcing the thing that just came before it. So if we want people to do something, we have to change it in the moment.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so when we train, and I think that we're a training organization, we're very good at training, whatever skills, is... engineering ways to give many feedback loops in a short period of time around specific skills. So I use sales because it's one that everyone understands.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
If you're training a script with someone, if you let someone read through a script, and then at the end you say, hey, here's the things you could have done better. This is how 95% of people train. It also doesn't work. we set the premise with, you're gonna read through the script and in the first 30 minutes, we might get through a third of it. And I'm gonna probably stop you like 30 times.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And if that happens, it means we're doing it right. So we set the premise that I'm gonna interrupt you a bunch of times. And as soon as you say the first line, I'm gonna be like, stop, say it again, say it like this, go again. And then they're like, okay. And they say it and I'm like, awesome job, do it again. Awesome job. Do it again. So I reinforce it as many times as I can.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Okay, go to the second sentence, right? Now do first and second, right? Do second and third, right? And you keep working your way through until eventually they just say it like a whistle. They can sing it because they've also had so many repetitions and so many feedback loops that they're like, this is what it sounds like when it's right.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I think that the vast, vast majority of organizations have no idea how to train and their entire training, their way of getting talent is just let's hire 10 and we'll just see who works out rather than being able to take someone and level them up.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I think that the ability to train is one of the largest alphas that exist in organizations because if you can buy talent at B skill and get them to A plus, then you net the delta in profit. between what you had to attract and pay the person to come and what they perform at. If you have to use a picking strategy, then you have to pay for current market rate of the skill.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so you actually eat into margin because you don't know how to train. There are advantages to speed, and sometimes it still makes sense to bring in the talent because maybe the training requires so much time that it's not worth it. And so from a hiring perspective, because we were just talking—this is the theme— we always want to hire for the smallest skill deficiency.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
My ultimate expression of living out his dream was me feeling like I didn't want to be alive. And so in – and it took me time to get to that point to even articulate that because obviously you never want to kind of like admit failure of like I have really messed something up here. But I was living my life to win someone else's game.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so in low skilled labor, for example, if we have a cupcake bakery and I need somebody to work the counter, that is pretty low skilled labor. And so if there's a number of skills that are required, being able to be on time, smile, be nice, those things are bundled terms that have many skills underneath of them, right? Mm-hmm.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Whereas teaching someone how to use the register might take like 30 minutes. And so it makes sense to hire for attitude and then train aptitude when you have low skilled labor. When you have really high skilled labor, I can't teach someone 10 years of being a CFO for M&A. This is an extreme example, right?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so in that instance, we still hire for the smallest skill deficiency, but I can probably teach someone to be nice under these circumstances faster than I can teach them to be a CFO if they have everything that I want here. Obviously, you would want both, but the world isn't perfect. And so we just try to hire for the smallest skill gap. And Attitude is a series of skills.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so instead of thinking of things in attitude and aptitude, just think of everything as skills. And then we hire always for the smallest efficiency.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Yeah. Okay.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Oh.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
But here's the really hard truth that a lot of people don't like talking about. Entrepreneurs must be willing to make impossible choices, have the courage to be willing to be wrong, have shame by failing at things in front of people whose opinions they care about. And that fear keeps people stuck in a job and a life they don't want for years. And that was my path.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Dude, kind, not nice. It's one of our cultural, you know, I wouldn't say it's not the one on the site, but things that are repeated internally all the time, kind, not nice is one of the big ones, which is that you're actually being unkind to someone by not maximizing the likelihood that they succeed in their role. And people don't lose jobs typically because of one thing.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
It's usually 100 small things. And so if we can immediately fix those 100 small things, most people want to do a good job. And most people want to succeed. And most people want to move up. And we can maximize the likelihood that those things occur if we help them. This is where the culture is there.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
If on that first day, like I said, we say we're going to work through the script and we're only going to get through a third of it. I'm going to stop you 30 times to correct you. We've already kind of set the expectations of how things go here. Like we will fix things and we will fix them fast. And it's understanding the difference.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And we teach our teams this is what is the difference between an insult and criticism? So criticism is a discrepancy between actual and desired. So you were supposed to be on time, and this week you were late twice, and so that is the discrepancy. And you're lazy is the insult. And so the judgment that's associated with the discrepancy is insulting someone.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Pointing out the discrepancy is purely criticism, and that's objective. And so if you want to improve the team, remove insults, focus on criticism, and tell them what to do instead. And so the easiest way to think through this, I think, is stop, start, keep. So I'll tell you a real story. So we had a director level, so a relatively high person in the organization who was having behavior issues.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And when I realized that, I realized that one of our dreams had to die, either his or mine. And when I realized that his dream must die in order for mine to live was a statement that I kind of crystallized when I was at that point in my life. Like I had to keep repeating that, like his dream has to die in order for mine to live.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I'll say it differently. Everyone thinks you're a dick. And so he ended up making his rounds of the executive team and having a sit down with all of them because he was really proficient at the skill. He was a high performer, like good at what he does. Just no one liked him. And so he talked to four different executives and the behavior didn't change.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so he finally came to my office and he was like a little bit worried and he was like, am I going to get fired? And I was like, no, HR will fire you if you're going to get fired. You're not going to meet with me. What are we talking about? But when we sat down, I said, okay. I want to be clear. I want to decrease the likelihood that people call you a dick in the future.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I was like, does that sound like an agreeable goal? And he said, yeah, I want that. I was like, okay, good. I also don't care if you are a dick. I just care that everyone else thinks you are. And so I just want to minimize the likelihood that I get drawn into this ever again. So, the reasons that they are calling you a dick, we need to dive into that.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Because every other conversation you'd had with, you know, some of the leaders was just like, hey, man, stop being a dick. And the thing is, is what do you do with that? Nothing. You just get insulted. And then you have nothing to do. And so instead, it's like, okay, when you cut people off when they talk, stop, start, keep doing. Do this instead. Shut up.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So when someone else is talking, wait until they finish. And if you're not sure, ask if they're done. He's like, okay, when you give unsolicited advice on how they should run their department, don't. Or ask if they want it. If they say no, don't say anything. And so we identified three or four behaviors that he was doing. And I said, just do this instead.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And literally the next week, we were like, what happened to him? He's like a new man. And the thing is, is that he wasn't a dick. He just didn't know how to behave. And so if you want to teach, teaching has to come from conditions and a behavior. And so if you're trying to get someone to be different, you have to give them the conditions under which they need to change.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So when someone says this, if this occurs, there's a condition, and then this is what you need to do. And so the vast majority of training that exists does none of that. It's just people shouting at each other, insulting them and saying, hey, you need to level up. You need to increase your performance. What does that mean?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so I think one of the easiest ways to identify the actual behavior, because that's actually the tough part, is like, why do I think he's a dick? Why do I think she's lazy? Because I want to insult them, but that's not, so how do I help her? It's like, okay, why am I describing her this way? Okay, so when I Slack, she tends to be slow in her response.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So sometimes it takes an hour, sometimes it takes three hours. I'm like, okay, so I'm going to gather that data and be like, okay. So when I talk to her, I'm like, I'm going to have this branch of data. The next thing is when I get stuff, you know, projects from her, they are incomplete. I feel like they're not all the way fleshed out. I'm like, okay, that's a second bucket.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
The next one is that when she shows up on Zoom, she looks disheveled. I'm like, okay. So now when I talk to Sandy, I'm not going to say, hey, Sandy, you look lazy. I need you to level up a little bit here. Otherwise, we're going to have issues and have to put you on a PIP, Performance Improvement Plan.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Instead of saying that, just put her on the Performance Improvement Plan without saying it's Performance Improvement Plan and just say, when you show up on calls— change your background to like the standard company setting so we don't see your bedroom, right? And make sure that from the waist up, you look professional. And what do I mean by look professional?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Have a collared shirt and put your hair back, okay? Now, some people are like, how does that work in woke politics? No idea, deal with it in your country. But like, you should have a culture where you can say stuff like that. The second thing is that right now, I need you to turn on Slack notifications and I need you to respond within 10 minutes, okay? During work hours, okay?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so to put this in perspective of like how afraid of my father's judgment I was, I left the state and drove across the country halfway through before calling him to tell him that I was gone. And so I bring this up because I'm not trying to be dramatic here, but I'm saying that if you feel a lot of pressure, I get it.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
After work hours, fine. But nine to five, you have to respond within 10 minutes. Do you think you can do that? Yes. And so the end goal here is like, I will get everyone to stop calling you lazy.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I think it sits great. And I think that the amount of references that you go for is proportional to the importance of the role.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So Sam, the co-founder of Skool, so he was a non-technical founder.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Oh, so Skool.com is a platform for building communities. Right now it's online, but we have an in-person component so that people can meet online and meet in person. It's awesome. And so that's the only investment that I've publicly associated myself with outside of acquisition.com. So it was a very big deal. It's something I believe in a lot because it's education.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
It's for education and media meat. So Sam is the founder of school, and he is not technical. And so he knew that to build an exceptional software product, you need world-class talent. And so he interviewed 600 developers to find Daniel, who had become the CTO of school. And he asked everybody to know who the best coders were. And then he talked to all those people.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And then he asked them who the best coder they knew was. And he talked to those people. And then he asked them who they thought the best coder they knew was. And eventually, like, Daniel's name came up as, like, God tier. And he's like, if you can ever get this guy, he'd be amazing. And so he ended up finding a way in to find Daniel, and then he ended up becoming a co-founder of school as well.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Like I tried to leave the job that I was at to pursue just literally anything that wasn't that. Just I wanted to start a business at some point. I didn't know how I was going to do it. I just knew that what I was doing was not the path I wanted to be on. and everybody around me wanted me to be on that path. And so I went to go be like, hey, I'm thinking about doing something else.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And what's interesting about that process is that it actually ladders into rapid learning. And so when I was a consultant, I was 22 years old, and I would go and have to give presentations to four-star generals about weapon systems that I knew nothing about because I was chugging beers like 12 months earlier, right?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so how do you sound intelligent in front of somebody who has 30 years more experience than you do? And so this is the consulting process for rapid learning. First is you find five experts. So you ask the one person, you're like, hey, tell me the five people you know who are the best at this thing. And then you ask them, who are the five people you know who also know a ton about this thing?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And for each of the interviews, you take all of their information down of like, what do you think about this? What do you think about this? What do you think about this? And what happens, you start mapping kind of like the information ecosystem. And the reason you talk to experts first is that there's no lack of information. Like you can Google whatever you want. The problem is there's too much.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so the filter becomes where the highest point of leverage is. And so experts have spent years filtering out for what's important. And so then you basically rapidly consume the most filtered information. And then you reorganize the information. And so this is what a typical analyst will do as a consultant.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So for the Space and Cyber project that I did, we had 600 pages of notes from all the interviews that we did. First step is you recategorize all the notes by category. So it goes from raw notes to categorized notes. Then from there, you distill and consolidate notes into what are the truths or the most distilled beliefs that we have about these particular, in this case, weapon systems.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
But it could be whatever. And then from there, you're able to generate your inferences for what it looks like when it's right, what the problems are, what potential solutions might be. And then that's fundamentally how you say this is what we need to do next. That's if you're trying to learn something.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
But in talking to all those people, it actually works the same way because the interview process, the higher up the talent is, the more I would encourage entrepreneurs to use it as a learning process as a consultant. And so I present somebody who wants to come in for this role, the actual problems of the business for which they would have control over and say, how would you solve these?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so then they tell me all the things that they would be considering and what they're thinking about. And then I'll ask the next guy what he thinks and what he thinks and what he thinks or she thinks. And then all of a sudden, one, I get free consulting, which is amazing. But secondly, you can tell by how the quality and quantity of metrics that someone tracks
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
how good they are at a particular skill. And so this is fundamentally what separates beginners from experts. And so beginners typically have binary thinking in terms of outcomes. Either it worked or it didn't work. An expert, for example, for a marketing campaign isn't going to say, oh, marketing doesn't work or ads don't work.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
They're going to say, this particular campaign didn't work because our click-through rate was too low or because it was sending traffic that wasn't qualified and we weren't converting enough on the page or we didn't have enough people who were taking the second step in our four steps. And like they can break down any part of that continuum.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And, you know, it would always be that, ah, you know, later, later. Like, everything's good later, you know. And I remember when I called my dad, and I told him that. He said... understand why don't you come home? Like, come home. Well, uh, I didn't tell him that I was, I was gone yet. Like I said, Hey, I would, I, you know, I want to go pursue this fitness thing.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
If I'm interviewing a salesperson and the person says, and I say, okay, how are you going to affect these metrics? What behaviors are you going to do? So to the same degree about vague versus specific, if they give me vague things back, I'm going to dial in and say, no, but what are you going to do that's going to change that?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And by the way, this is a wonderful way to teach in the organization how what they do makes a business money. And so if you have like a customer support rep, for example, and you say, hey, how do you make our company money? If they can't explain it to you, they probably aren't doing it.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And it sounds as simple as it is, but if someone says, well, you know, I answer customers' questions, and it's like, how does that make us money?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Now, if they're able to say, when I answer customers' questions, I increase the likelihood that they refer us to other customers, and I increase the likelihood that they stay and continue to pay for us, so I help us get new customers by delivering an amazing experience, and I get the customers that we have to continue to pay us.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And if it makes sense, I recommend other products and services that we have that I can introduce them to sales guys who can explain that so we can generate even more revenue from them. I'd be like, one, if you can articulate that, you're probably not just a frontline customer service guy. You're probably a director, right? And so that level of nuance, the specificity is what shows expertise.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so when I look for and I'm interviewing for candidates, first, I want to gather as much information as I can. I want to drain as much knowledge as possible. But I'm also really looking for the quality and quantity of metrics they track. and behaviors that they do to influence those metrics.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So in the hypothetical problem that let's say we're trying to solve, we have low click-through rates, I'd be like, okay, this is the problem we have, how would you approach changing it? And then that actually gets me to understand what they would do in the organization. Because it's very easy to say, you know, I'm going to come in and let's say a sales director.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I'm going to come in and I'm going to improve the sales team. I'm like, okay, cool. What are you going to do? You know, I'm going to coach the guys up. I'm like, okay, what does that mean? And so just continuing to ask, what does that mean? How do you do that? Until they're like, okay. Well, I'm going to meet with the guys every single morning and we're going to do role play. All right.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Well, how do you role play? Well, we're going to start with the script and we're like, the more detailed they get, the more I believe they can do it because they've actually explained what actions they will take. If someone can't dial it into actions, then it's very unlikely that they're going to take them. And so what I just outlined is basically three core things.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So one is the quality and quantity of metrics that they track. The second is the behaviors that they're going to do to influence those metrics. And then laddering up to third, how do those metrics and these behaviors influence the revenue in the business? If they can explain that clearly, you have a winner.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I think having them explain it as though you were a fifth grader. And so I make the same joke, because you do this enough times, you make the same joke. It's like, hey, I need you to explain this to me like I'm a golden retriever, which is a type of dog. So assume I know nothing. Let's start there. What do you think customer service means? And so...
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Um, he said, cool, come over for lunch. We'll talk about it. You know? And, and, and I was like, I'm, I'm already gone. And then obviously his tone changed a lot. And, you know, our relationship struggled for, you know, years after that.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
If someone really has expertise, so Richard Feynman was famous as the physicist, which is if you can't explain it to a child, then you don't understand it well enough. And so if they do confuse you, then it means that they don't understand it or they're doing it purposefully, neither of which are good scenarios.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Well, I think there's the soft and the hard side, right? So the hard side is compensation. Maybe you don't have as much cash. So it's like you're going to have a few levers at your disposal. So you have, what do you pay them in cash? What's their upside if there's equity or shares that you're going to give them? This is obviously if it's a software business.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And it's probably worth segmenting this. So if you're not in a software company, which is probably the vast majority of people listening to this,
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
there are four elements within equity that that that exist you have control so who gets to call the shots you have risk what happens if everything goes wrong who's liable you have profits which is the cash flow of the business who gets distributions and then basically sale or enterprise value when we sell or if we sell who gets to participate in that upside those are kind of the four elements of equity now the thing is is that you can obviously grant shares or you can give stock in a company
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
that's one way of doing it. But you can also basically contract around any of these things. Now, most of the times they don't want the risk. And they probably won't get the control if it's your company. So you really just have profit and you have upside in terms of a sale. And so you can contract these things. And there's lots of structure. So I'm not going to get into the legal around this.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I also bring that up because sometimes there's this illusion that like, you know, you get on the Oscar stage or whatever it is and you're like, hey, I just want to thank, you know, my mom, my dad, my friends for always supporting me. And I can't say that. And I wish I could. And you might not be able to say that either. And I also don't think that's a reason not to do it.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
But asking somebody, what do you want? Sometimes it's just a very powerful way of beginning this. And my favorite question for these types of scenarios is asking, what would it take So when you have this guy, it's like, man, it would be amazing. Like, how do I sell this guy? I just ask him, what would sell you? So I say, what would it take? Because I don't know. He'll tell me.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I love that frame because it assumes yes. It assumes you're going to come.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I think it's the amygdala story that we started with the nasal strip thing, which now has actually reared its nose multiple times, poked its nose in a few times here. But I think that pitch that you're giving to a potential co-founder or potential early hire who's going to be a leader is the same, more or less, that you'd give to an investor.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
It's almost the same pitch, except instead of investing capital, they're investing time. They're investing their life. They're investing their expertise. But fundamentally, you're asking for investment. I'm just asking you.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Yeah. I have actually fairly strong opinions on this. Oh, great. So I actually think it's – I was talking to the CEO of ButcherBox about this particular thing last week. I think it's a barbell strategy where you have people on either ends and very little in the middle.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So I love lots of young, hungry people who are here for growth and want to learn and are ready to work long hours and just go all in. And the people at the, call it the back half of their career that are here, that they've made enough money. They know they can get a job wherever they feel like. You're not doing them a favor by giving them a job.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And they're not what I, a term I hate, which is careerists. They're not obsessed with their title. They're not obsessed with their career path, what their promotion plan is going to be. They basically have a litmus test, which is like, I have to have make about this to get to come in and do this with you. But they actually just really love the work. And so these people are learning.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So the young people are learning and overcompensating with tons of hours and reps. And these people are bringing their experience to the game and creating significantly more leverage with strategy. The people in the middle are the ones that tend to be the pain in the ass for everybody. And I don't think, and be clear here, I don't think this is actually an age thing.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I think it's a perspective thing. So it's just, are you here for growth or are you here to share what you know? And I think that it's the people in the middle that are like, well, I'm bringing something, but I need some, it's like this kind of tit for tat relationship that, um, I would say the vast majority of people that don't work out are in that bucket.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so we did struggle for years after that to kind of like, because I was basically living as what was once his prodigal son goes and takes a minimum wage job as a personal trainer at a gym, like, you know, cleaning floors and stuff to learn, just to learn the gym business. But that was ultimately like how I broke free, literally, you know, physically leaving the area and, you know, mentally.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I think yes. Uh, you can fundamentally, you can disrupt any industry if you don't know how it's supposed to go. And so, but that's, I think that really teases out something that we said at the very beginning, which is starting from first principles, which is what are the few things I know to be true? And then basically forgetting everything else.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And when you build from those assumptions up, you end up building lots of different paths up the mountain that may or may not have been trodden before. I think one of the most corroborating things that can happen sometimes is that, like, you re-derive a solution that already works. And you're like, okay, well, now I know why this works.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I think, but I think that's actually, then you have more confidence in the path and you're like, okay, that's fine. But now I know why we're doing this, not just because other people did it, but because I understand why it works. And so I think it just comes down to what are the few truths that I know to be true and going all in on those things.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Like I know that if customers love my product, they are more likely to tell other people about it than if they hate it. That I feel very confident. So then we say, okay, what are the things that must occur in order to get someone to quote, love my product, AKA increase the likelihood that they tell their friends about it or post about us. And so now there's, and you can break this.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And again, this is where quality and quantity of metrics matter. So it's like, how much more nuance can I break this up into small pieces? So it's like, okay, at what time do we deliver these messages around what experiences that have high likelihood of them posting? Can we decrease the friction around them sending friends? How can we make it both easy and how can we incentivize it?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so all of these components, whether it's a service business, a physical products business, a software business, it still works the same way. And for each customer, for example, as we're taking someone through this, I have four milestones that I look for, which are the four R's. So how do I get them to review my product? How do I, well, in order it'd be, how do I retain them immediately?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
How do I get them to review my product? How do I get them to refer somebody? And then how do I resell them? And so they're basically, those four R's is what I try and take every customer through. It's a very simple framework, right? When you think, I was like, oh man, customer success, what does it mean? It's just like, well, these are the four things that I want to occur.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so all I'm trying to do is reverse engineer what activities increase the likelihood that each of these four R's happen.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Oh, God. Yeah.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
But I think that I had to accept that there was a timeline where my father would never talk to me again, and I had to be okay with that to pursue what I wanted. And I think that when you asked the original question, what are the people from zero to one really looking for? I read tons of business books at that time, but I couldn't use any of them because I was so afraid.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Yeah. This is the entrepreneur life cycle until you learn how to break free from it. And so there are six stages. You have stage one, which is uninformed optimism. This is where you see your friend or you see something online and it looks like they're making money or it looks like there's some opportunity and you think, oh my God, that sounds amazing.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And you have optimism because it looks great, but it's uninformed because you have no idea what it entails. So then you dive in and you say, okay, I'm going to pursue this thing, whatever it is, baking cupcakes, or I'm going to do lawn mowing, or I'm going to do crypto trading, whatever. Second step is you get into it and you're like, oh, my God, I don't know.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
There's so many things involved in this, and this is significantly more complicated than I expected. So then you become an informed pessimist. You now know that it's hard or significantly harder than you expected. The third stage is you have your crisis of meaning or the valley of despair. So you're continuing to do this stuff. It's continuing to not work. And you keep working.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And it keeps not working. And so this is the step. And this is the point of truth. And this is the cycle where the paths of the entrepreneur split. And the vast majority of people take this next step, which is they then say, you know what? There's that thing over there that my other friend's doing. Maybe I should do that instead. And so then they hop back to uninformed optimism.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And then they go, boom, to informed pessimism. And they just go around and around and around. And they live the same six months for 20 straight years. Now, the other path from the valley of despair is sticking with it.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so then you become an informed optimist because now you understand, you still understood all the bad stuff, but you also understand the good stuff and how to avoid the bad and maximize the good. And then once you're there, you stick on that path long enough and you end up achieving what you originally thought was really easy and fast.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so that cycle, this is more or less the Alex Ramosi life story, which is why I can so intimately describe each of the steps, is that I call that loop and that the person on the other side, the woman in the red dress, which is probably my favorite part of the Matrix movie, which is Neo, who's the main character, is in a program to teach him one thing.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so he's walking through the crowded streets of what looks like a New York City with Morpheus leading him. And he's drawing on about something that he's supposed to learn. And he says, Neo, were you listening to me? Or were you looking at the woman in the red dress? And Neo was looking at the woman in the red dress as Morpheus is talking. And then he says, look again.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And he looks back at the woman in the red dress, and it's Agent Smith with a gun pointed at his head. And in that moment, he's like, freeze. And he explains that you're either one of us or one of them. And they are the people who are sentinels sent to destroy us.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I had a white-collar job, a condo overlooking the city. Everything's according to plan. And I remember thinking, like, I didn't want to be alive because I was so afraid. But once you get over the fear, it unleashes this whole new realm of possibility of being able to do what you want.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so what appears to be the woman in the red dress is actually an agent from the system meant to destroy the opportunity that you're in right now. And so I love the woman in the red dress so much because it's so real. Because you're in this thing. You're in this relationship with your business. And you're like, you know, this girl seems great.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And what's crazy is that, like, I think about it now in retrospect, and it's like, it's crazy how large the perceived monsters can appear, right? And Layla has this quote that I love, but it's, fear is a mile wide, an inch deep. And so you look at it and it looks like this ocean.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And then you get to know her and you find out she snores when she sleeps. And all of a sudden it's like, you know, you see the sweatpants and no makeup in the morning and you realize that sometimes she's moody, whatever. But you start to get to know. You're like, I don't know if we're going to get married, but like, you know, this is kind of where we're at.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And then you see a woman in the red dress. And you're like, you know what? I think that's the girl. And so you quit this relationship with your business and you get into that relationship. But then you realize that that girl has crabs. She has a crazy ex-boyfriend. And you're like, oh my God, I don't want to deal with any of this stuff, right?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so my CFO, so it was one of the first people that were like, oh my God, I hired that person. It changed everything. So my CFO in gym launch had taken four companies from zero to 100 million. She had done over 40 M&A transactions. Her largest one was 5 billion. Super experienced. She was at the very end of her career.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And she was like, I'll take you guys, I'll take this one last ride with you guys. And so, you know, mind you, Layla and I, I'm 26 or 27 at the time. Layla's 23, 24. And we're sitting across the table from a very experienced business person being like, please help us. And so one of the things that she taught me that I will never forget is she said, The grass is always greener on the other side.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
You just don't know that it's fertilized with shit. And she's Southern, so she had this deep Southern accent. She's like, there's always shit. Shit everywhere. And so she's like, I've been in enough businesses to know that all businesses have shit. And so you just have the shit you don't know about and the shit you do know about. And you're in this business, and so this is the shit you know.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And that has been so profoundly impactful in my life because it was so hard for me to break the cycle, really hard for me. I mean, I gave you my life story of the many businesses that I've been involved in. And so like the entrepreneurial ADD has been so real for me. And I've made some of the biggest career mistakes by just pursuing and splitting my attention between multiple endeavors.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I can say truthfully that this 2024 was the first year, and this is now 2025, the first time in my life where I haven't experienced FOMO. So fear of missing out. And it was one of those things that I just always had. I would see somebody doing it and I was like, oh man, I should be getting into that. I shouldn't be doing this, I should be doing that.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And it was one of those things, kind of like being happy, where you don't realize you're happy, you just look back and you're like, you know what, that was a really good year. You kind of see it in retrospect. what I realized was that now when I hear someone say like, oh my God, I crushed it with this thing, I think that's amazing for them.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I'm sure there's tons of problems that I don't know about, and that's amazing. But I'm going to keep doing this thing because this is the only thing I know how to do pretty well. And I'm just going to keep compounding my information advantage against everybody else who thinks this is easy and wants to get into it. And so I think that that
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Any massive company that you know of has existed for multiple decades. And in order for something to exist for multiple decades, the founder has to stay focused on that thing for the whole time. And I measure focus by the quantity and quality of things that you say no to. And I measure commitment... or I define commitment as the elimination of alternatives.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And then you take the first step and you realize you don't drown because it's like, oh, there's ground underneath of this, right? There's other people who are more on my path. And the friends you lose, you gain new friends, right? And so that fear is, was the hardest decision that I've had to overcome in my entrepreneurial career.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so if you think of marriage as the ultimate commitment, then it is the ultimate commitment because you've limited literally every alternative besides this person. And so I think that many business problems and many entrepreneurs would 5x, 10x their business if they simply gave themselves no way out. This is what I'm doing.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I'm, I mean, the term, you know, burning the boats, but I'm eliminating all alternatives and structuring my life such that I make it very difficult to pursue the alternatives.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I think by doing that, you can actually conquer this cycle and make it past the split where you go crash and burn and then restart the doom loop or make it to informed optimism and then eventually to the achievement that you want.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I think entrepreneurship is far more a war of the heart than it is a war of the mind. Like we can understand what we should do. We just don't do it. And I think that's why we're so much better at giving advice than we are at following it. So most people, if they just followed their own advice, they'd be successful, right? And so with this kind of valley of despair, I call it niche slapping.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I think of all the split paths in my life, that was the one that if I had many timelines or many universes that existed, that was probably the one that is the most likely that I would not have parted from. So I think in like 90% of universes that Alex Ramos exists, I'm just a consultant somewhere. And so I would encourage you, if you do feel that, you're not going to die.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
It's like, don't make me niche slap you. Which is like when you have three things going on, it's like, let me slap you into just picking one. Because the thing is, is that any of them can work, but none of them will work unless you pick only one. Because it's actually, in my opinion... an exercise in arrogance to assume that you doing three things is somehow going to beat somebody who's doing one.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I can promise you the competitor who is going to beat you is only doing that one thing. And you think a third of your time is going to beat theirs? No, it's not going to happen. I think it's arrogant. And so there's actually like an underpinning of ego underneath of this. And I say this as somebody who did this. So like when I had the launch business, I also had my six gyms.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I also had a chiropractor agency and I also had a dental agency. And so I would introduce myself and like, oh, I own lots of companies. But I think one of the biggest misconceptions when you're an entrepreneur is not understanding the difference between being an owner and being the CEO. And so they might hear that you have a portfolio.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
They might hear that I have a portfolio and be like, okay, well, they have a portfolio, so I must model that. That guy's tall. I should play basketball. Doesn't work that way. So if I want to be rich, I should fly private. Doesn't work that way. It's conflating order. And so... we must do these things in order to get the outcome.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
We have to concentrate on only one thing in order to get the outsized return. And that spreading of attention, especially when you're newer in the entrepreneurial career, it's like you already don't know so many things. How do you now want to have three sets of unknowns that you want to try and conquer at the same time?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And the fallacy of thinking is that I'm going to try all of them and see which one works. But none of them will work because you're waiting to see which one will work. Because you can force, in my opinion, you can force one thing to work. Provided, like, I'm going to just assume basics. Like, you're not selling $5 bills for $4. Like, you know, the normal economics of a business.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Like, if a real estate business exists, there are other people who are making money. There are hair salon businesses where people are making money. There are lawn mowing businesses where people are making money. You can make money in all of them. You just can't make money in all of them.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Right. Well, it's just from, from, from, from, from suffering. Um, the, the, the woes of this, like, The biggest entrepreneurial mistakes I've made in my career have all come from splitting my attention. Every one of them, like every single one of them. Like I talked about how I had the e-commerce business that I bolted onto my, to my licensing company. I should not have done that.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
As soon as I did that, my, my revenue started slowing down in its growth.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Because I was ADD. I was like, oh my, I don't want to leave money on the table. And I want to be so violent about this. You are always going to leave money on the table. That is the result of focus. But you're leaving a small amount of money on the table to pursue the much larger money that's on another table of just sticking with the thing that you're on right now.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Because compounding, if I would show a chart here, it's like if you're at year three of your thing, and you wanna think about moving to year zero of a new thing, you have to compare, maybe year zero of a new thing grows faster, but it has to grow faster than year three to four of the thing that you're on right now.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I think that's the, people will compare year zero to year zero, but not year four to year zero. And the thing is, is you actually, we have a linear life. And so we, that is, it's an unfair but true comparison of the opportunity cost. And every exceptionally successful entrepreneur that I know has just stuck with one thing for such an inordinate amount of time.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Like you won't die and you might just live.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I think there's a quote by, I want to say Shane Parrish, but he said, success is doing the obvious thing for an extraordinary period of time without believing that you're smarter than you are. And it's just like, we know what we need to do. And So we don't need to make our lives more complex. Complexity will come with scale, I promise.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so just simply trying to do more of what you're already doing well is already hard enough. Don't add anything else. And so like if you need to write some sort of commitment of like, I'm just going to stick with this, then do that. But what happens is when we were talking about the levels earlier about like beating the bosses,
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So what happens is you know how to beat boss one through three of the game. And so then you just say, okay, well, I'm just going to start the game over and beat boss. I mean, this time it's going to be different. But then you just get to level three again, and then you're stuck again.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so people just keep getting up to level three and new endeavors over and over again because they never learned how to get past that boss. And so you just have to confront the uncertainty of knowing that you don't know how to do it, but that you will figure it out if you keep doing enough repetitions. And that's where you talk to as many people as you can. You see what they said.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
You consolidate it all. And you say, I think this is the highest likely path. It might not work. But I do believe fundamentally that if we cut people's hair well... And we do it for a long period of time, we will have a thriving business. And if we have a really good model from that thing, we might be able to open up another location.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And if we keep our costs down, we might be able to have an actual model that we could either invest our own capital or bring somebody else and take it national. Or like all of these, like I have yet to find a business that can't get to $100 million a year. That has a permutation of it that exists. You're a dry cleaner. Fine. Well, cool. We'll build the model.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And either we can license the model, we can franchise the model out, we can get outside investors, we can scale it nationally, we can do it. But the crazy goals are only crazy because people have crazy timelines. They're actually very sane goals if you extend the timeline out. If you have a true 10-year goal or a true 20-year goal, almost anything's accomplishable.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I mean, almost every multi-billion dollar company is about, you know, they get, it's usually between like year six and 10 when companies get to kind of like those big numbers. And most people who are listening to this are five years into entrepreneurship, but you're six months into the thing that you've been working on right now.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And you keep restarting the clock for getting to year 10 every time you start over. And I think that's the part that it took me a very long time to figure out. And I think it takes a lot of entrepreneurs. Like everyone messes around with a lot of stuff in the beginning because you just don't know what you're doing.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so in my experience, it takes about five years for most entrepreneurs that I know to to just find something that works. It takes about five years to figure out which way is north. And then it takes another five years. And a lot of people, that's it. They restart, they go off, crash and burn. And it takes another five years to build something that can create generational wealth.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So it's about a 10-year slug. And here's the really hard truth about it. If you have a job right now, for almost all of that five years, you quit your job because you don't want to work as hard as you are, and you want to make more money.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And as soon as you quit, you will realize that you are now going to work way harder than you were, and you're going to make less money for an extended period of time. The one benefit is that you get to claim all responsibility for how little you make and how much you work. Because you're like, my boss is an idiot, and it's me. But it's the truth. And I think that in some ways, having that...
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Optimistic ignorance is actually one of the really redeeming traits of entrepreneurs. And one of the really hard parts is that the biggest jump you have to make gets so immediately reinforced from the freedom you have from being able to chart your own path. But that big success of quitting one thing and starting another, you need to immediately forget.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I think that fundamentally, that is why so many entrepreneurs keep doing it is because the first time you do it, it's the biggest rush ever. You quit your job, you do the business, and you get some first traction. And that first dollar that you make when the new business, it's like the best dollar ever. right? But it's such a strong reinforcer that what does it reinforce?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
It reinforces stopping what you're doing and starting something else. And so I think one of the fundamental errors of entrepreneurship is that sometimes the jumping ship to start this thing is the lesson that you need to immediately unlearn, because after that, you have to just stick with it for a very long period of time.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I think... Um, and I, and I used what I consider a very non-palatable word of coward purposefully, because no one wants to say they're afraid, because if you say you're afraid, then it means you're a coward. And I think that it only means you're a coward if you don't, if you allow that fear to change your behavior in an aversive way, as in it not towards what you want.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So two things. So one is I had this tweet that went like super viral, but it was like, first time founder, hey, I need you to sign an NDA before I tell you my business idea. I know you've gotten it. I know you have. Third time founder. Here's everything I have. Here's all the documents. Here's all the projections.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
It's probably all wrong and this probably won't work, but I have a couple of smart people and I think we'll be able to figure it out. It'll probably cost longer and take longer, cost more and take longer than we think, but we think it's worth a shot. Because everyone who's been on both sides of that understand – like the entrepreneurs got it because they're like, oh, my God, I was that guy.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And all the investors get it because they're like, oh, my God, I deal with this guy all the time. But actually what you just said with the many, many iterations that from your original idea until what actually happens is – Yet again, one of those demonstrations of the difference between a beginner and expert. A beginner has binary thinking. So they think this worked or it didn't work.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And if it didn't work, then I need a new idea. Rather than having the nuanced thinking of a master or an expert or advanced person who says, What about this if I click into it? I break it into its component parts. What about this didn't work? Okay, it's not that meta ads don't work or advertising doesn't work.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
It's that we didn't nail the hook in our ad or that we didn't make our offer clear enough on the landing page or it was not congruent with the advertisement. Or the offer itself wasn't very compelling. Everyone's coming in and saying, yeah, I kind of want that, but this is actually my issue. We're not solving the core problem. So it's always in the details.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
It's always in the sifting through the many small things that you find the kernel that ends up fixing the business. I mean, I know that Facebook was trying to fix their virality issue. and they were locked in a room for days trying to figure out how they could get more users to retain on the platform, right? People would sign up, but then they wouldn't do anything, and then they'd drop out.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so finally, Zuck just said, okay. We have some belief that if people have more friends, that they will engage. And so they didn't. And here's the thing, like with the uncertainty, they couldn't prove it. He just was like, I feel like that's better than them not having friends. And so he said, all right, the new goal is 10 friends in 14 days. That's the goal.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So we have to create the experience so that we can get it to introduce them to 10 people or connect them with 10 people that they already know on the platform within 14 days. And as soon as that happened, then obviously Facebook took off or continued to grow. And so he wasn't like, oh, Facebook doesn't work anymore or social networks aren't going to be a thing.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
It's usually way smaller and way bigger. the adjustment you need to make is much more nuanced than what you originally expect. If the foundational principle of like cutting hair, mowing lawns, whatever, it's like this problem exists and I can charge a certain amount and make a profit on it, then there's nothing wrong with the business. It's just what is the constraint that's holding us back?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And then usually zooming into the constraint and realizing there's 20 things that are contributing to the outcome, not one. And that's where expertise and you develop that expertise by trying and failing. Yeah. And that's just the name of the game.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so I think you have to have an incredibly high tolerance for failure without internalizing it and feeling like you yourself are a failure as a result of failure.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so, you know, the inverse of that, many people have heard it, courage is not acting without fear, but despite fear. And I think that when you act, when you allow fear to change your behavior the wrong way, that is when you can give yourself that title of coward. And I think that that is a title that I have feared my whole life.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Yeah.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And this goes back to the who, which is if you at some point, if you want to have a really ridiculously successful company, it will require more lifetimes of expertise than you can live. And so then it becomes a recruiting game. Like very quickly, almost all business becomes recruiting. Yeah.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Which is how do I, I mean, if you listen to Zuck talk about it, you listen to Elon talk about it, you listen to Steve Jobs talk about it. Steve would talk about how the best players that he had in the company, he would set aside like a year to 18 months to bring them in. Amen. And he said, every time I, you know, I knew who I wanted.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And then I would, he's like, you know, I would take some calls with other people and I would just be like, But they're not John. They're not John. And so he would just keep working on them and working on them and working them. And so eventually they're like, you know what? Fine. They like give up.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And they're like, if this guy is this persistent, like he probably will be a successful entrepreneur and he will take us there. And I think that like people are the highest leverage thing that you can bring into the company outside of, you know, crazy technology. Yeah.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
The thing is, is that it's just like money won't make you happy. It's one of those things that like every founder like has to figure out for themselves. But the thing is, and I've had obviously a bunch of conversations around this, but like What you think is an A player today is not what you will think an A player is in five years.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And that label is almost, I'm more afraid of that label than the label of failure. I'd rather be a failure than a coward.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so I think one of the hardest mental hacks around this is trying to project yourself into the future, into the size business that you want to have, And say, who would be an A player at that size and scale? And then coming back to the present and saying, how do I get them to work for me today? Amen.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And it's really... And so as a mental process for anybody who does have a business right now and has some employees, if you... Like everybody right now, you probably have some version of your A player because every business has at least one, hopefully, right? Besides you. Imagine your business had five of those people.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Like picture in your head, you've got that one person, now you have five of them. How much more... Would you double? Would you 10x? Would you 50x? And sometimes you realize you're like, no, I think I would actually 10x.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so if that were the case, one, not only would you 10x the company, number two, the value of the company would more than 10x because it would be significantly less reliant on you and it'd be more reliant on the team that you've built. Number three, it would happen faster because you would have more barrels that were firing concurrently, moving things forward.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And those pieces, when put together, you have to then ask yourself from an opportunity cost perspective, What other activity could I be doing that would have the possibility of 10x-ing my company, doing it faster, and increasing the enterprise value multiple? That's not that. And if you can't find one, then it means you're working on the wrong stuff.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I think that is one of those great litmus tests of like, if I can find something, and I'll give you a really simple one that's not human-based, the talent-based here. something as simple as calling your leads. So there's tons of research that suggests that you can four or five X your conversion of leads by calling them within 60 seconds of them opting in for any product you have.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So I think there's like the math behind it. And the math, I think, is pretty straightforward. So like, when do you quit your business? I like you've saved up three to six months of personal savings, number one. Number two is that you have started something because nowadays in the digital age, you can begin a business on the side that can generate income.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
If you have all of these priorities they have across the company, does any of them have the high likelihood of four or five X in your business immediately? with very low cost of doing so, less so than just calling the leads within 60 seconds. If the answer is no, then by God, why are you not calling all your leads within 60 seconds?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And that is when you can learn the real game of entrepreneurship, such as knowing that business ideas typically come from one of three Ps. And you only need one of those three. And then there's the four Rs for customer success. How to learn new skills quickly. How to stand out in a competitive market. The winning strategy for 2025 and so much more.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
The follow-up question would be like, well, I don't have enough people to call our leads within 60 seconds. So then we'd say, okay, what is Forex, the revenue of your company, worth? Okay. What does it cost to hire one person whose only job is to just call the leads? Now, I recently talked to a restoration company. So they did water damage for homes when they got hit by storms.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And he told me he said he was converting 55% of his leads, not calls, leads. And I was like, how on earth are you doing this? And I was like, well, how many leads a day do you get? He said, two or three. I was like, okay. So what's the process? He's like, oh, it's really simple. My aunt, I pay her $60,000 a year, and she has only one job.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
She has no responsibility in the company besides the moment a lead comes in, you stop having sex with your husband, you stop cooking, you stop loving your child, and you immediately call the lead. That's the only responsibility. She just has to make three calls a day at the moment the leads come in. And he pays her $60,000, and that brings in millions of dollars of revenue.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so you're not going to pay for it out of the dollars you have now. You're going to pay for it out of the dollars that you're going to make that you're not making yet because you haven't done it yet. And so pin in that. Back to the people. I think the hardest time, we call this the swamp at acquisition.com, but it's usually between like one and three million is the swamp.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I think there's a numbers reason for why it's such a painful period for entrepreneurs. Let's say $1 million for simple math. If you have a million-dollar business, let's say that you have 20% margins. So that means you're making $200,000 a year in profit. For you to get an A player, it's probably going to cost you 100% of your profit to get that A player.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so you'll have what appears to be an impossible choice. You'll have, do I sacrifice basically 100% of my profit to bring this person in? Or do I work another six hours a day to do the job that this person is doing? Both paths work.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Both are painful and risky because the overworking yourself thing, you can get yourself through that hump and then now you're at maybe three or four million and that 20% is 800. You can spend 200. You still have cash flow. You can still live. The downside for the picking the person path is that what if you pick wrong?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And this, by the way, ladies and gentlemen, is why entrepreneurs get outsized returns is because we take on outside risk. And so this is the job, is that we have to be willing to make impossible choices. And the vast majority of choices for entrepreneurs in the business are impossible choices between two relatively bad scenarios.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And that income in the small amount of time that you're not working replaces or at least matches the existing income you have from your current job. And you've been able to do that or demonstrate that income for like three to six months. If you do that, that's a very like math way of approaching it. That also is basically never the reason that people aren't quitting their job.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Because the rest of the choices don't even feel like choices because they're obvious. Of course, we should call leads faster. Of course, we should follow up more. Of course, we should try and onboard faster. Okay, all these things are the obvious ones.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
But when you have... Man, I'm trying to think of the ones I'm not... Almost all the decisions that you get stuck with, and Elon says this really beautifully. He says, running a business is like staring out to the abyss and chewing glass.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So because the staring out to the abyss component of it is just the fact that this may never work and you're almost facing existential risk at all times to the business. And the eating glass component is that you will, by nature of your role, get funneled the worst problems in the business and the problems that no one else can solve. So it's one, problems that people can't solve.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Two, the worst ones. Or that they don't want to solve and they suck. And so you basically become a filter for the worst things. And that's why it feels like a fire every single day in the business because you're the only one who can make the tough call because no one else wants to choose between these two impossible choices. And you're like, why is it so hard?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And the thing is, is that it literally never stops being hard. It's that the currency that you pay for and the hardness changes, right? And so, you know, a lot of people have this envisionment of like the rocky cut scene of like, it must be hard for business. But I don't think that's where the hardship comes.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I think the hardship is that at every level of business, there's new sacrifices that you didn't know you were going to have to make. Because if it was just, oh, I have to work long hours, there's tons of people who work long hours in their business and don't grow. And it's usually because they're unwilling to have a hard conversation. It's a different currency, right? They have to take on risk.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
It's a different currency. They have to... They have to make some sort of bet, right, that they otherwise wouldn't have had to make. They have some sort of legal issue that they encounter. They have an employee who tries to sue them for some sort of mal-whatever, right? All of a sudden, you're like, wait, all of these things are happening, and they happen on a regular basis.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And at each level, you unlock new levels of glass that you get to chew through. And so this is why most entrepreneurs, in my opinion, don't actually quit. They fizzle. So it's not a big bang. Usually it's, they just, they stop seeking. So either they get content at the level that they're at and they just don't strive for more. And sometimes they say it just wasn't worth the trade.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I respect that. If you're like, you know what, I'm at a million dollars a year and I don't want any more. Fine. You won. Congratulations. Like you won at life. But most of the times they don't really quit. They just stop trying. And then they just either coast or it just fizzles into nothingness.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And that's just my experience of having, and I'm sure you've seen this, having gone through like cycles of entrepreneur. It's like seasons. It's like, oh yeah, I came in through, even like in the media and influencer space, whatever. It's like, there's a bunch of guys that 10 years ago, it's a different landscape now than it was 10 years ago. Some people adapted.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Some of them were like, I don't like the, they, they just, they just, they weren't willing to chew the new glass, which is how do I learn TikTok? How do I learn? But man, blogs were so good. It's like, yeah, and they're not anymore. I talked to an entrepreneur really massively, many hundreds of millions a year in sales. And he was like, dude, we were killing it on infomercials. So TV.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And he's like, we just, you know, we, uh, we just, we really just have to crack YouTube. And I'm thinking to myself, like, Dude, it's 2024. Like, you needed to crack YouTube 10 years ago, and he had the resources to do it. But it was just a different kind of hard. And so most of the hard is, one, a level of uncertainty that goes into it, and almost certain immediate failure.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Like that's a really – like I have backlog. I have matched my current income with my part-time work. And if I just put my full-time work, I would probably make more. Very reasonable. But never actually the reason that people don't do it.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Because the first thing you're going to do will probably not work. And again, it's the iterations of when you get into the new domain, you have to transfer your generalized knowledge, which is that as an entrepreneur, I will know that this doesn't work probably because I only know four things about it and I need to know like 400.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so I will get my first shot and I need to get directionally correct and then just keep doing more of that. And so I gave the consulting way of learning kind of like a new space. But if you want to learn a new skill, The fastest way that I do it that's outside of courses or anything is tremendous volume of activity.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So whether that's like, I want to take a lot of sales calls, I want to do a lot of outreach, I want to make a lot of content, I want to do a lot of customer success calls, whatever it is, you do 100 of those. And then you see, what are the top 10% of these? Okay, what did these top 10% have? have different than the other 90.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And then I say, okay, well, these ones had these three things that were different. Let's try and do those three things on the next hundred. And then because of the variety of life, there's going to be some new variables that exist that you look at the top 10% of the next hundred. And you're like, okay,
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
We did those three, but there's also two more things that happened in this 10 versus the other 90. Now let's do all five of those things. And over time, this is how you develop a checklist for making banger content and banger videos. And I'm sure, like, there's this clip. David Perel talks about Chris Rock's creative process.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And he says, how is it that you see Chris Rock at Madison Square Gardens, and it's just like 60 minutes of just fire? You're like, how is this guy so funny? And it's because what you don't see is the many small clubs, and the first club that he goes to and does a whole hour-long set and has like... three moments that people laugh a lot about. And he's got like five minutes that are good.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And the other 55 minutes basically suck. And so the next time he goes to a club, he takes those five minutes, puts them at the front, and then he tries all new material for the next 55 minutes. And he gets another five minutes. And he continues to repeat this process and put the new stuff at the front until eventually he has 60 minutes of uninterrupted laughing.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And then people are like, oh my God, he's so talented. I can't believe that he can just stand up there and talk into a microphone and make everyone laugh. cross age boundaries, cross cultural boundaries, cross all of the boundaries that you might imagine, how can he be so funny to everyone? That's how. How can that guy be so good at writing?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Well, he looked at the stuff that he wrote, he found the best stuff, made it into the few things that he always does, and then kept writing. And that fundamentally is the process of learning anything. And it's usually not one thing. It's many small things that, when added together in aggregate, create the outsized returns. Sorry, that was a little pulpit there.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I just get violent about skill acquisition because that's what it takes.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I want to do my best shot at operationalizing what you just said for somebody who's listening. When we encounter this issue, we have a specific process that we go through. And so we tell the founder, I want you to make a Google Sheet, really simple, and I want you to have the time slots from 5 a.m. to midnight, however long you work, in 15 minute increments.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I want you to set a timer, easy timer, kitchen timer, like for cooking, for every 15 minutes. And every 15 minutes, I want you to, when it dings, I want you to write down what you did. One or two words. It doesn't take a lot. Now, as soon as I say that, people are like, oh, my God, I don't have time for this.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I will promise you it will be the most productive week of your life because you will be aware of how you're spending your time. Every time I do this, I immediately think I should do this all the time, and I don't. So just do it. Just do it for the one week, okay? And so what happens is you'll do it for a whole week.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And then what the second step of this is you'll look at that and you'll say, okay, wow, I didn't know that 40% of my time is dealing with this thing. And I can hire a role to handle 40% of my time for this amount of money. If I had 40% of my time back, I could double this business, and that would be worth significantly more than what I'd pay this person.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And then you look at the next 15% of your time, and you're like, okay, is this something that I can give to somebody else? Can I push this down? Can I create some process around this that can correct it? Or do I need to keep eating it for a little bit until it's enough that it's a full-time role? And so fundamentally, I see the entrepreneur as –
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
the many-hatted fractionalist that you continue to pull things under your plate until you have enough that you can ship it out to somebody else full-time. And being aware of, again, the one resources we have, which is time, how we're allocating it so we get the highest return. And so if you look at the stack of time as an entrepreneur, we are always getting paid for our time.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Kind of the premise of the whole talk here is that we trade our time for dollars. And so we always... The whole process of entrepreneurship is continuing to trade up what you're trading your time for. And that's like at the most foundational level, that is all we're doing. And so to take this as a hypothetical, your business doesn't need you.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Right now, you spend whatever hours you do working and you do these things. Imagine a world where you could hire somebody who could spend the same amount of time doing all that stuff. Now you own the business. And whatever you have to pay them, you take out of the profit and everything else is now distributions that you own as an owner. That's it.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Now, the entrepreneur who's mission-driven then stacks their plate with even more things that they need to do and then just continues that process over and over again. Now, this is the part where the pushback comes, which is no one can do what I can do. And I want to say, you're right, and. If I wanted to, let's say you're a unicorn. So we can imagine this mythical unicorn.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Got this white horse, got the horn, tail, everything. And the little pixie flies for the magic that's around it. Okay. you probably won't find a unicorn. But you can find a white horse. And you can find a rhinoceros to get the horn. And you can find some fireflies to give you the twinkles. And so you may not hire one person who has all of these things, but you can hire three.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And then those three together can potentially do everything that you're doing better because it's all they're doing with all of their time.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And breaking it up into basically understanding that you're not going to find that unicorn, but you just break it into pieces and then you can partition it out to people who can just do those parts makes it a lot more manageable from an emotional level to think like, I'm never going to find this. Of course you're not. And that's okay because we can find, we can solve for parts of our calendar.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And fundamentally when you buy back the time, you can then do what you're like, basically take the next step in the business.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Look at these dinosaurs.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Adapt. And I think that it's important. So Google has their, I think Sergey solved this mathematically, but I think they called it 70-20-10. So 70% of resources get allocated to the core business, do more of what we're currently doing. 20% goes to adjacent businesses. So things that are high likelihood success that are one step removed from the existing core business.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And then 10% goes to moonshots, totally like off the path, like let's just see, maybe we'll get 100 extra turn, we probably will lose on most of these. And he proved it with math, he's smarter than I am. But fundamentally, that is the concept of more, better, new.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so that's one of the chapters in the leads book, which is okay, now that you have the core four, right, these are the four things that you can do, you can post content, you can run ads, you can do outreach to strangers, you can do outreach to people you know. Those are the four things any person can do to advertise. the first thing you do is you do more.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And for most small businesses, they're doing so little and think they're doing so much. And it's a huge gap in understanding. And so I'll tell this story that's probably the easiest way to explain it, which is when I had my first gym, I called up a mentor. He had 20 locations. I said, how do you advertise? He said, I use flyers. I said, okay. So I put 300 flyers out. It didn't work.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I called him back. I was upset. I said, WTF? He said, slow down. What was your test size? And I said, what do you mean? He's like, well, your test size. So like, I mean, the 300 wasn't the only amount that he put out. And I was like, well, yeah. He's like, well, our test size is 5,000 flyers.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And then once we have a winner, then we do 5,000 every day in terms of flyers that they put on cars to get people in there. And so over a 30-day period, he would be putting out 150,000 flyers. And over a 30-day period, I put out 300.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so he was in a very real way doing whatever the math is there, but like 300 times or whatever, I don't know, a lot more, 500 times the math, sorry, 500 times the flyers that I was. And of course, he was getting a better result. And so one of the fundamental misconceptions of small businesses is that they mistake low volume for volatility. Meaning...
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Yeah. So what's really interesting about that is the guarantee. And so a lot of times we don't look at what I call the don't, which is like the alternate path. And so... If I had played out my existing path, I had a guarantee of outcome I didn't want. It was just added delay. Whereas here, there's a chance that I can make it.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
If you're not sure where your sales come from and you get one sale here and then two weeks later you get another sale and it feels sporadic, it feels volatile. Well, there is a certain amount of advertising activity that is occurring over that period of time. And we know that a month passes and you get one to two sales.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so the companies that are in your space that are doing one to two sales a day, take what you're doing in a month and they do that every day. And I know that you can get this. And I want to put this in context here. I hear, I would like to build a personal brand. And I say, cool. And then I ask, how much country are you putting out?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And they say, you know, I put out, you know, one or two pieces a week. And I think that's amazing. For context, for anyone who's listening to this, we put out 450 pieces a week. And so the brand that we have is way larger because we do so much more than you do. And people can't fathom the idea that someone works two times, five times, ten times, a thousand times more output than they are doing.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
But it is usually the reality of why they are getting a thousand times more than you're getting. And fundamentally, this is the concept of leverage, which is that you get more for what you put in. In the beginning, you're the one doing the flyers.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Then you get leverage because then you make enough from those flyers that you can look at your time study and be like, okay, I can pay two guys to do these flyers and I can get eight hours back. That would be amazing. But now you've got two guys doing flyers, which is still double of what you were doing. Now you have double the revenue that's coming in. You're like, okay, should I hire more guys?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
That's more. Or should I do something better? Should I change my flyer up? Should I change the offer on the flyer? That would be better. Or should I start Facebook ads? Well... The new, which would be Facebook ads, is the 10% thing.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Now, when you're looking at allocation of resources, let's say we're now fast forwarding a little bit into a company that has, you know, profit that they can do stuff with. Part of the reinvestment is insurance for the future. And so every business has three strategic buckets that it has to allocate its resources into. Number one is how do we get more customers?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Like if we get more customers, the company grows, period. Number two, how do we increase lifetime gross profit per customer? So if we got the same amount of customers, but we made all the customers worth more, we would also grow. Bucket three is how do we decrease risk? AKA, how do we increase the likelihood that the first two things don't stop happening? And so those are the three buckets.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so when you look at that 70-20-10, The 70 for the most part is usually going to be directed towards get more customers, make them worth more. And the better also ladders up to that. The risk factor is usually going to be the new thing that you're going to do to ensure your future is going to be there by the time you get there.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so if we noticed, for example, that YouTube becomes like legacy television and viewership starts dropping and it becomes this new VR, whatever, right? At some point, we're going to have to look and be like, we need to take 10%, 20% of our profit every year and start building out this new team. We're going to continue to do what we're currently doing.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And here's the mistake that you need to avoid. Don't take the stars that are making the one thing work and then push them on the other thing. You have to find the people who can build this. Otherwise, you're going to sacrifice the core.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Because all of a sudden, it's like, oh, God, well, now we're totally screwed because now we're not getting customers from our existing thing, and we haven't figured out the new thing yet. And so this is fundamentally where I see the CEO role. It's like...
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
you want to eventually become the flex player, which is that you can parachute in to a specific division or department that's solving a complex issue. And then the benefit that you have as CEO or founder is that you have decision-making power and you have the ability to allocate resources and immediately say yes to things.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And that's why, and to be fair, it's unfair to your team to say, why can't they do things as fast as me? Well, because you can write the checks and because you can say, yes, you don't need to check with the committee. You don't need to run it up the flagpole. It's just you saying, do this, do that. Don't worry about that. I'm telling you, you can stay late for this meeting. This is more important.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so strategy is just a fancy word that people say when they mean prioritization. That's all it means. We have unlimited opportunities that we can allocate things towards, but we have limited resources. And so how do we prioritize those unlimited opportunities against those limited resources? That is fundamentally what strategy is. And that's another way of just saying we prioritize.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so one of the final kind of frameworks for making the decision was guarantee bad, chance at good. And I was like, well, I might as well take a chance. And I strongly encourage thinking about playing it out. And so what I mean by that is like, I think fear exists in the vague, not in the specific. And so when you say, I'm going to quit my job, and then what if this doesn't work?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So there are two types of questions that you shouldn't ask. questions that can be solved with a spreadsheet, and questions that can be solved with testing. And so fundamentally, the outside advice that you get on something that can be solved with math, just solve with math. And I would say like 30% of the questions that I get are like, should I sell this one or this one?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I'm like, okay, well, what's lifetime value of this product and what's lifetime value of that product? Okay, what's cost to acquire for this customer? What's cost to acquire for that customer? Okay, this is a math problem. You have a way higher LTV to CAC ratio here, allocate resources here, but that's a math problem. Anyone can just do that math. For the testing one, I love this.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So like the leads book, I didn't know what to name it. So it's about advertising. So I ran story tests for like a week or two, just saying a hundred million dollar promotions, a hundred million dollar advertising, and then advertising one. It was like a hundred million dollar advertising, a hundred million dollar marketing. Okay, and then advertising wins.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I'm like, okay, $100 million, advertising, $100 million leads. Leads wins. $100 million leads versus two other things, leads keeps winning. Okay, that's the title. And then I did the same thing for the cover. I did the same thing for the sub-headline.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so I tested every component of it to get the thing that people seem to want, which is like the book is advertising, but ironically, people want leads. So it's kind of like, do I want to have a book on drills or do I want to have a book on holes? People want the hole in the wall, not the drill. That's just the vehicle. And so the book is just the vehicle to getting leads.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
But as a quick hack for anybody who has a brick and mortar business, this is just a quick hack for anybody. If you're like, what market should I expand into? Here's five markets we're looking at. Take $1,000, run your best promotion that you win in your current market in all five of those markets. See what your lead cost is in all five markets. The one that has the lowest lead cost,
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I'm going to failure. Tons of fear. If I say, I'm going to quit my job, and then I'm going to try and start a business. And if the business doesn't work, I'll probably have a compelling story that I could tell for business school if I wanted to, to show that I had some entrepreneurial slant.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
then open in that market. Don't spend $250,000 doing all these studies and then building out this location only to find out that the lead cost in that area sucks. Just test it first. It's the best $5,000 or $10,000 that you're ever going to spend to just ensure, this is a risk bucket, ensure that when you're there, it's going to work.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Oh, yeah. I have it in the chapter where I'm like, you have to wrap everything. And I show all the tests that I ran. And I'm like, you can see all the percentages of people saying that's the book title.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So I'll explain what I'm thinking through. So to answer that question, I think it asks, what is required to win? And is a mentor required? No. But there are certain behaviors and actions that will increase the likelihood of success. If you can do those actions faster, then you will have a higher likelihood of winning and higher likelihood of winning faster.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
All of humanity has been built on us standing on our forefathers' shoulders and taking what they learned. We don't have to figure out how light bulbs work. I have no idea how the internet works, but I know that it works, and there's somebody who can figure it out.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so we just start where they kind of lay off the baton, and then we pick it up from there, and we run the next however many, and then we die, and we hit the next guy. And... I think you don't need mentors, but you need to learn from people ahead of you.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so I think in models, not mentors, what can I model about their behavior so that it can change my behavior to increase the likelihood that I win faster? And so everything that I do, and I feel like it's a pretty strong statement, Everything that I do ladders up or down to behavior. And so you've probably noticed it when I talk about training and employees.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
When I talk about advertising, I just want to increase the likelihood that a stranger takes a desired action. That's all I'm trying to do. And when we get into behavior change, it removes a lot of the surface level fluff that I think confuses the vast majority of people.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so I'm always afraid to go on podcasts where somebody is like really heavy in like manifestation and like energy and frequencies and like whatever the hell. And they'll say things like, I manifested this meeting. And I'll be like, you didn't. You have content that did well because you produce content on a regular basis. And then your EA reached out to my EA.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
In the meantime, I could use that experience plus my job experience to probably get another or maybe even better. better job in the meantime and match or, or supersede my existing income. And the actual loss would be maybe the savings that I'd saved up.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
That reach out is what initiated this, not whatever vibes you were setting out into the universe. Now, some people might say, yeah, it was also the vibes. But I would bet that if they made the content and did the reach out, I would still do it, which means that those are the core things because if we've removed those –
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
if we just did the manifestation and didn't make the content of the reach out, I would not be here. And so one of these works, one of these doesn't. And so that is what has allowed me to try and extract the essence from the mentors or heroes ahead of me.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I consume a tremendous amount of Elon, Bezos, Zuck, anything that I can find that they put out or that they're interviewed on, I try and consume it. And the whole goal is I want to think about their decision-making process as it relates to what they did and try and apply that to my context in terms of behavior. And so that has been just like the big, big, big zoom out for, do I need a mentor?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
No, but you need to learn stuff. And so whatever way is the fastest way for you to learn things, do that. And so I'll tell this story because I think it's like, do you need one? No, no one needs one. You can literally just do all of these things through trial and error on your own, and you will figure it out. Time is obviously the one thing that is the big question mark.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I think part of it is a question of how valuable is your time to you? Not in a micro example, but would I pay in time or money to move forward five years and not make five years of mistakes? So when I started my first gym...
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I didn't actually start the gym because I quit my job and I drove across the country and I showed up at a guy's house that I Googled on the internet who said he was good at running gyms. His name was Seven Figure Sam. All right, and so he was a gym guru. And so I showed up at his actual gym unannounced and I was like, hey, I'm here to be mentored and learn. And he was like... I'm working.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I really don't know who you are. And like, maybe we'll talk tomorrow or something. And I was like, okay. And he's like, where are you staying? And I said, I don't know. I haven't decided yet. He's like, what do you mean? I was like, that's my car. I just drove here and all my stuff's in there. And he's like, you have nowhere to learn.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
But if I'm younger, or I haven't made as much money as I want, then that's never been the amount of money that would be material anyways, on the grand scheme of what I would like to make. And in terms of living situation, I will worst case
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I was like, I figured I would just figure it out when I got here. And so he offered me to stay at his house that night, which is unbelievably generous, and maybe my salesmanship got him. You know, who knows? But within a few weeks, he had a meetup of all the gyms that were kind of like following his little system for how he ran his personal training studio and boot camp.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I got to go as a 22-year-old, and I paid to have access to this community of gym owners. And they were all going around talking about what was going good and what was going wrong in the business. And when it got to me, I was like, well, okay, so I want to open a location. And this is kind of what I was thinking about my model. And this is what I was thinking about price points.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And they were like, wrong, wrong. Here's why that's not going to work. Here's why that's not going to work. And I was like, Oh, okay. Well, this is where I was going to buy equipment. They're like, don't buy there. That's retail. You can get it from secondhand over here. And it's literally a 10th of the price. And I was like, Oh, that's awesome. Okay, great.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
I was like, well, I was thinking about getting this type of thing. They're like, no girls will eat shit on that. And they'll fall. Like I've had two girls do it. Don't worry about it. Like you're not going to use it, but you can get sandbags. You can use them all the time and they're super cheap. And if you have to replace them, you can, but you can use them for like hundreds of exercises.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I was like,
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And then I was like, okay, so I was thinking about this kind of square footage for my for my facility. They're like, dude, you don't need all that you can cut that in half. And I was like, okay, and I was like, I'm willing to pay two bucks a foot. And they were like, No, never go over 150. And I was like, okay, never go wrong.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so like, in a matter of a day, I got to take like, all of the knowledge of all of these guys have mistakes that they'd all made with their gyms. And I started my first gym, just on their backs. And so how much was that worth to me? Years. And so for me, I have always been willing to pay in whatever currency was required to get knowledge that I don't know.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Yes. It didn't exist then. YouTube wasn't even a thing. Instagram had just come out, like for context, for everybody who's listening to this. I think about this equation a lot. And I actually had some video of somebody shitting on me for this, but I'm going to say it anyways, because there's the 20% that I'm going to say it. That's right. I'm not going to dilute myself.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So I saw a salesman say this at a conference, and he wrote a million dollars on a whiteboard. And he called up a lady in the audience and he said, how much do you make? And she said, $50,000 a year. So he wrote $50,000 underneath a million and he subtracted it. And it said $950,000. He said, it costs you $950,000 every single year. You don't know how to make a million dollars a year.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
go back to my parents' house with my tail between my legs, or sleep at a friend's couch because I have enough people that would be willing to put me up in a garage if I had to. And so it's like, okay. So my actual worst case scenario is just like, I have a cool story and maybe some shame that is self-inflicted because it's not like no one else cares really.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so the question is, what is the value of that skill? And the answer is the difference. And so the troll who responded to this originally was like, well, you can keep going. What about $100 million a year or $1 billion a year? And I was like, yes, yes. If you had the skill of making $1 billion a year, then the difference between $50,000 and $1 billion is the delta of the value of that skill.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And it's really not one skill. It's many skills that ladder up to when combined together to create that kind of value. But I remember that being like seared into my memory, which is like whatever I want to have, the delta between where I'm at and where that thing is, is what basically what I'm willing to sacrifice in order to learn what I need to learn. to get there.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And I think that if people appraised that delta, not by the money in their wallet or the time that they currently have, but how much they would be making or how much time they would have and how much that's worth to them, then I think far more people would be willing to invest in their education. And it's such a taboo word because people hate the word education. It's like, oh, it's like work.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
But like, you want to be an entrepreneur, like you got to learn. You just have, there's so much stuff to learn.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
This is widely known in the education space, but not as much in the content world. But there are two types of education. There is procedural and there is declarative. So declarative knowledge is knowing about something. Procedural knowledge is knowing how to do something. So a simple example would be, okay, I understand how private equity works. You could talk about it.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
You can explain how, okay, they take some debt and then they have this arbitrage and they get this enterprise value multiple, whatever. Right? But you've never done a deal. And until you've done a deal, you will not have procedural knowledge of knowing how to actually do a deal. And so you can read 100 books on sales, but you will learn more about actually selling from your first 100 sales calls.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Yes. And so the idea, in my opinion, for most people is that if you want to rapidly learn, you want to rapidly do those 100 repetitions as fast as you can so that you can suck 100 times in a row and find the 10 that sucked the least and then say, how do I suck least on the next 100? And you keep doing that so many times until eventually you suck so little that you're actually good.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
But it's self-inflicted shame and maybe a detour or a different story that I have to tell later on in my career. Not as much fear there, right? But like the first one, like I'll fail, everyone will hate me and I'll die.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Yes. And I think, you know, this is actually really interesting because it ladders up to, because there's two types of creators. You've got entertainers and you have educators. At least that's how I separate it. The point of entertainment is to maintain the attention of the audience. That is it. So the point of an entertainer is to literally just keep people watching.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
The point of an educator is to change someone's behavior. And so if you, uh, If you want content to do well in either of these buckets, fundamentally, at least in the education space, you are selling time. So education is, I spent all this time doing this thing to learn these four things that I can give to you so that you don't have to spend this time learning it.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so education is actually, if said differently, what you do is you buy time. So when you buy, it's the only thing, it's the only way to actually buy time today. So if you want to basically time warp into your future, you have to buy education so that you can buy all of the life experiences from all these people and then not pay for it in your life.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
You pay for it with less time by consuming what they have or some money or some combination of those things. And fundamentally, we usually pay with the currency that we value least. And so Interestingly, a rich person values their time more than their money, and so they're willing to pay with money to get time back.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
A poor person will also pay for their time and drive around to 10 different gas stations to find the one thing that's 10 cents cheaper or drive to 10 different grocery stores to use whatever coupons. They're valuing their time over their money in that instance. And so back to the educator.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
If you want to be certain or have confidence in any endeavor, you have to do so much volume of activity that it would be unreasonable that you would suck. And if you were to write out the equation of like, okay, how many public speeches would I need to give for it to be unreasonable that I would suck? Is it 10? Is it 100? Is it 1,000?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Write the number that you're like, there's no way that I would suck after this many. And then all of your effort gets really narrowed, commitment, elimination of alternatives, focus, turn down quality and quantity of other things, to just doing that.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And the key part of this is not just to do the 1,000, but after every 10 or every 20, looking at the top 10 or 20% and saying, what did I do well there? Because you have to have the feedback loop. Otherwise, it's not just doing 100 reach-outs. You have to do 100 reach-outs and then look at what worked and then do more of what worked. And so for the parent versus the practitioner component of this,
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
even if you're starting out, you can have confidence in what you're doing because you derived the solution. And you can actually answer why you do something. So if you cannot explain why you believe what you believe, it's not your belief, it's someone else's. And so most people, I would say, parrot the vast majority of the things that they say because, and to be fair, that's how humans learn.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
You're five years old, you say, what's that? They say bull, and you say bull, you parrot it back, and there we go, right? But when it comes to skills, you can describe what other people have said before, but if something goes wrong, or what about this condition, you won't know what to do.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
But if you derived it from the ground up, and there's a great portion of this in the Y Combinator community that you, or the Silicon Valley community that you probably heard, is maybe like, Three or four months ago, it was like founder mode. Did that get to the UK?
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Oh, yeah. It was awesome, right? And so basically the tenet is that the founder always has special powers in the company because you know what built it. And so that is basically at its core the practitioner versus parrot. The people who came later are parroting why you do what you do. But you know what conditions you were in when you made this rule, and also you know how to break it.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
and when to bend those rules. And so if you build something when you built it from those repetitions to distill out the few truths that exist, you'll know why those are the truths. Like I'll give you a really simple example. So if we, you know, we've tried to learn YouTube and we've gotten better over time.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
But in the beginning, I did this massive review and I figured out that the videos that we had that had three things at the beginning, proof, promise, plan, was the videos that did the best. And so then all of a sudden we said, okay, all videos have to have proof, promise, plan right at the beginning, the first 30 seconds. Great. So we started doing that for a while.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And then we looked at the outliers among those and we're like, oh, well, we also, and some of the ones that did really well, also had some sort of visual picture of this plan. All right. So it became proof, promise, plan, picture. Then we kept looking and we found out over more repetitions that if we also include some sort of pain or problem that's being solved, that also helps.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So proof, promise, plan, picture, pain. And so you're like, wait, if you keep adding to this thing, it's going to get really long. No, sometimes you can check multiple boxes with one thing. And this becomes the elegance of creation. Like how can I check off three of these boxes with one sentence, right? And so that is, by the way, if you're like thinking about this, you're like,
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
Do they really think about this when they're making videos? Yes, and that is the difference between a 10,000-view video and a million-view video. And it's understanding that level of nuance across the entire thing that creates expertise.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And also, when you're like, oh, this video flopped, when you're a beginner, you're like, these videos in general don't work or content doesn't work, rather than saying, this video didn't work, and here's why, because we did three of the five.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So I think you nailed it and said it way better than I did. But I think going from vague to specific basically disengages your amygdala because it can't reason the logic chain of causation and causality of what's going to happen next in a chain of events. And so when you get into the specific of it, all of a sudden you're like, okay, I'm not going to be homeless and then shamed and die.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so it's just like all of the, I mean, the devil is in the details and you only, you only, you meet the devil himself by doing the unreasonable amount of work. And then it becomes, it goes from uninformed lack of knowledge to informed optimism. Because first you're like, I can make videos and get rich. Then you realize that it's really hard to make videos that people watch.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And then finally you start to develop a framework of this is how I make videos that people watch. And when they don't watch it, it's because I didn't follow it.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
The aphorism.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
So this is really interesting because with that Feynman example, it proves that the distillation of knowledge is not bidirectional. So you, Richard Feynman, can break it down to a child, but a child cannot then re-derive what Feynman has done.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so it's convenient for the transmission of communication and for teaching someone who's, let's say, coming new to an organization, here are the things. And these give you the decision-making frameworks around which, and it can give you directional guidance. But that is the whole founder mode. That is basically a different way of getting to the founder mode idea. That person derived this thing.
The Diary Of A CEO with Steven Bartlett
The Man That Makes Millionaires: Turn $100 to $10k With This Step By Step Formula & Build An Audience From 0 Followers! Alex Hormozi
And so when a problem arises, we can re-derive the next solution rather than trying to apply the aphorism to a new setting.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
What's going on, everyone? Welcome back to the game. I have an audio first episode for you guys today. This has been something that's been kind of top of mind for me. But it's about some things that you can immediately sell to make a lot more money in the business. And I think this is something that's wildly underused.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
I mean, if you are, then you don't understand how capitalism works, but maybe you're offended, but you still buy and you still don't use anything else. Right. And so I just, I would, I would encourage you to one, if you're a chicken about it, just change it for new customers. And then it'll slowly like new customers, you know, old customers will slowly over time cycle out.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
And then new customers will cycle in at the higher price. But I would encourage you to just say like, Listen, you can blame it on inflation if you want to. You can blame it on costs of goods going up. You can say that your rent got raised. Blame it on whatever you want. If you want, you can put it to an outside power because you're afraid of just saying, I decided that I wanted to charge more.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
But if you want to blame it on something else, you can. Fundamentally, I think that if you have more demand than you have supply at given times in your business, then it means that you were mispriced. And so you should consider maybe just raising prices at those times. So that being said, I hope this found value.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
If you are a business owner and you like this type of stuff, we have our advisory practice, which we set up last year, which has honestly been really amazing. The reception has been exceptional. I've been really stoked about it. It's one of the business I've been most excited about starting. But yeah, we have business owners out here.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
I think the last time, I think I took a, I looked at the data from four consecutive days and it was the average person in the room was 4.1 million. Median was 1.2 to give you an idea. So we do have big businesses in the room as well.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
And so if you're a business owner and you like these types of kind of profit driving tactics, you know, this is a podcast, but if we do two days and we know what your business is, we can probably help you out a little more. I'm sure you can find it online, acquisition.com. Just click around. If you can't figure it out, then it's not for you. I hope you guys have an amazing day.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
So you build, you know, customer A and then customer B and the customer C. Well, it makes basically no difference to cost for you if you do ABC or CAB, right? Like it wouldn't actually change anything for you. You're going to have the same number of people and you're going to deliver over the same time period.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
Share this with your friends. It's the only way that this podcast grows. And so thank you. Love you all and talk soon. Real quick, guys, I have a special, special gift for you for being loyal listeners of the podcast. Layla and I spent probably an entire quarter putting together our scaling roadmap. It's breaking scaling into 10 stages
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
and across all eight functions of the business so you've got marketing you've got sales you've got product you've got customer success you've got it you've got recruiting hr you've got finance and we show the problems that emerge at every level of scale and how to graduate to the next level it's all free and you can get it personalized to you so it's about 30-ish pages for each of the stages
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
Once you answer the questions, it will tell you exactly where you're at and what you need to do to grow. It's about 14 hours of stuff, but it's narrowed down so that you only have to watch the part that's relevant to you, which will probably be about 90 minutes. And so if that's at all interesting, you can go to acquisition.com forward slash roadmap, R-O-A-D map, roadmap.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
But the thing is, is that customer C might be willing to pay two times more to get it done faster. And so for us as business owners, having the offer available for people to get what they want faster, I mean, and you think about this in the commerce world, like you can obviously always pay for faster shipping, it's almost like a, it's an obvious thing.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
But for some reason, in the services, businesses, people don't do this. And I'm still always lost to why maybe it's because they don't think about it, which is why I'm making this podcast. But But for this individual, when I was talking about the auto shop thing, it just felt like such an obvious thing.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
And so I want to say a month ago, I had a business that came out to our headquarters. It's an advisory practice customer. And the gentleman had a very large business that had many automobile shops. And in talking to him more, it was a very razor-thin margin business as he was detailing it.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
Well, okay, well, if it takes you normally a week to get this stuff back and the vast majority of customers don't care, but a small percentage of customers do care very much about time and they're losing thousands of dollars every day or tens of thousands of dollars, then it would follow to have a speed pass that would allow them to get priority, right?
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
Because somebody else doesn't really care if it adds a day to their service. And so they're willing to pay the standard rate, whereas somebody else, it does matter a lot. And so they're paying for fast shipping, right? Fundamentally, that's all we're doing here. I would say that for me, fundamentally, and I'll talk about the second way that you can use this in a second.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
But for me, fundamentally, I've really shifted. I mean, a lot of my thinking around creating products and services. I mean, I go back to the value equation because it's so core to how I do everything. But like, you've got the impact or outcome. You've got risk, you've got speed, and you've got ease. These are the elements of value. I have yet to find anything else that are not those four elements.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
The thing is that each of these elements can be traded in and out. In the services space, it's very common for people to add features or remove features of services in order to have different prices. That makes sense for a lot of people. But what they don't do is they don't actually change prices on speed or risk. And that sounds odd because those are huge elements of value.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
Just since I'm gonna keep this conversation focused on speed for today, I think a lot about like, what can I do to do something faster? And sometimes to do something faster will cost you more. Like if you're in home services, for example, and let's say you do kitchen remodels, it's like, okay, I could do your kitchen first, And so either I use, you basically have two options.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
You're either using resources from another customer and deprioritizing somebody else who doesn't care about speed as much, which is the simplest option operationally. You just change the sequence of delivery, but your actual kind of like fixed costs say more or less the same. You're just changing orders up. So that's pure profit, which is awesome.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
the second way of doing this is that you have surge support right so you say okay well what would it take if i were to try and get this person who normally i deliver this in three months to deliver it in one month and let's say for that person they're willing to pay two times or three times as much now you may be surprised by this and i want to i want to encourage you to not sell out of your own wallet which is a pretty common thing for business owners is they say well i would never pay for something like that well
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
Well, good thing that you're not your customer because you probably already know how to fix cars or you probably already know how to fix or build decks or do a kitchen remodel or provide whatever service you have. And that makes you not your customer because your customer doesn't know how to do those things, which is why they're paying you, right?
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
And for them, the value may be really big if it comes really fast. Let's just use a hypothetical here. Let's say that for you to build out a kitchen, right? It's going to cost you, if you wanted to rush, right, and say, hey, you know, Mr. Marble Supplier, Mr. Granite Supplier, or Mr. Cabinet Supplier, whatever, I need these things by, you know, next week or by two weeks from now.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
What would it take? That's the question you ask. What would it take? What would I have to pay in order for that to happen? I have a customer who's willing to pay whatever price. I can do it within reason to make it worth your while. And so then it's back to them.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
And so what you might find interesting is that they might say, well, you know, I could rush it and it probably cost about 20% more, might cost 50% more. And you might say, cool, done. Because guess what? If you have to pay 50% more for your cost of goods, and let's say you also pay 50% more for labor, fine, okay.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
But if you charge double or triple the price, not only do you make more absolute profit, if you try to charge triple the price, you're going to make more gross margin percentage too. So like you're going to make more money by percentage and absolute with this offer. And to make matters even better, you're going to be able to deliver something way faster than normal. And guess what happens then?
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
And one of the things that he had was a certain niche type of customer that had tremendous costs incurred for the amount of time that their trucks or cars were off the road, something to the tune of like $10,000 to $20,000 a day in lost income. And what was interesting is I said, okay, I'm guessing these guys are not price sensitive. And he was like, no.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
You get more word of mouth. People are like, holy cow, this guy can deliver fast. And I'm telling you, having been You know, I mean, I would say having been in business for so long. It's not true. I haven't been in business that long. I've been, you know, 13, 14 years, whatever it is at this point. Shoot, it might be longer than that. Anyways, point is, is that speed trumps so much.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
Like when Spotify was competing with the internet of online downloads, which were free. Spotify beat free because it was fast. Think about how crazy that is. I remember another example of this. For Halloween, Chipotle does the, if you wear tinfoil or you dress up like a burrito, they give you a free burrito. They do it every year.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
I don't know if they still do it, but they used to do it when I was younger. And I remember thinking to myself, I went to it as a business owner later on in my life and it happened to be Halloween. For me, it was just whatever day of the week Halloween fell on and I just needed to eat lunch. And I saw this line out the door and I was like, my God.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
And I thought to myself, I was like, man, if I could just pay $30 to have my burrito now, I would so I don't have to wait in this line. But then it just got me thinking yet again of like how valuable speed is because fast beats free. And so the thing is, is that delay is the thing that people hate most. Like think about how Amazon won and Netflix won. They won because of speed.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
Like you want to look at movies. It's like instead of getting in your car and doing all that stuff, you just turn on your television. You can browse an unlimited selection. It was fast. It was right there. And obviously convenience and ease kind of factor into play there as well. It's immediately available. And so
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
if you can try and sell speed now i told you there was two comp two two types of of speed that that uh or rather surge pricing that i wanted to talk about um the second is a little bit different okay so the second here is and now all of these are based on demand right so to be clear like you have some people who want things faster and so you give it to them faster in exchange for more money everybody's happy
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
Another situation is where you have uneven demand cycles. So a very common example, this is like restaurants. And so I just did a Cash Cows episode this week. And if you don't know what Cash Cows is, it's the new kind of pseudo TV show that we've been producing. It's on my YouTube channel. I've been waiting to do this for like over... It's been more than a year.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
It's been probably almost two years now that I've been kind of like wanting to do this. And it just takes a huge amount of resources for every one of the episodes. But their first two episodes are out. Basically, I kind of do like a mini shark tank, except I don't buy the business. I just help grow it. So it's way more tactical.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
Like it's the most positive feedback I've gotten on anything I've ever made. Um, and this is specifically for business owners. So, uh, it's hardcore business content. I think you'll really like it anyways. I think some of you guys have heard the podcast version of it, but if you haven't seen the video version, I think the video is even better anyways. So we have a cash guys episodes coming out.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
Um, and it's, it's, it's my, it's my show so I can spoil whatever I want. the restaurant owners came in and there's a number of things we did to the business. But one of them was they had a lot of people come on on weekends and not as many people come during the week. And this is pretty common for restaurants, right?
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
Is that they get more demand on, you know, Friday, Saturday, sometimes Sunday than they do, you know, the rest of the week. I said, well, do you have the same menu on weekends? And they said, yeah. I was like, well, have you considered just taking, just reprinting the menus and having a weekend menu that has, you know, 10 or 20% higher prices? And they're like, huh.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
And I said, well, do you price it differently for them? And he said, no. I said, but you have other customers or the vast majority of your customers that if it took a week to get their, you know, cars or trucks back, it wouldn't really make a difference to them. He said, right. It's like, okay. So what you're missing is basically a surge price or said differently, a speed pass.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
I was like, if you have a line out the door that lasts an hour, right, and you can't even service the demand, then when price and demand, sorry, when demand goes up on a price curve and it surpasses supply, you shift price up. Like that's just, that's fairly standard. But I say this, you know, quote, fairly standard, but the vast majority of businesses don't do it.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
So very standard from a theoretical perspective, less so from a practice angle. And the thing is, is in a business that's like food, where you're running usually paper-thin margins, you know, if you have... 104 days a year, so two days, you know, your two weekend days per year. And let's say that on those days, you do half your volume, all right?
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
Remember, you're doing more volume in those days than you do the other five days of the week. So 50% of your volume, if we can add 10 or 20%, if a business is running 10% margins, then us running just a 10% price premium on those days adds 5% to the absolute margin. And so what does that mean to the business? It's a 50% increase in profit. If we had a 20% increase in price,
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
then it would be a 10% absolute increase because it's 50% of the revenues coming on weekends, which would double the profit of the business. And so the thing is, is that there's all these tiny little levers that exist in a business that I think a lot of business owners underappreciate, or they're honestly just too afraid to implement.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
They're so afraid of, you know, what happens if someone says no? It's like, well, are you offended when you buy a physical product and it says fast shipping for an extra $2.99? No, if you don't want to, just don't take it. Right. Like if you're at the mechanic shop and he says, hey, how important is this for you? You know, how fast you need this done?
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
Because we can basically we can prioritize your thing and do it like literally we can make yours next in line as in like it's the first thing we worked on. Or we have our standard turnaround, which is, you know, your fifth in line right now. And we'll probably get it to you by end of day tomorrow or whatever. Right. If someone says, end of day tomorrow is fine, then you say, cool, that's great.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
But if someone's like, no, I really need it back because I got to pick my kid up and it's the only car I have, then it's like, okay, well then here's the FastPass price. And they might be like, great, because I don't want to have to pay somebody else to do this and this actually saves me money. And so again, this is where like,
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
You just don't want to sell out of the wall to the customer and assume that you know what they want, that you know what's best for them. I can say the vast majority of human error that exists from a politics perspective is people making rules for other people and assuming that they're the same. People are very, very good at allocating their own capital and their own time for their own benefits.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
Capitalism is built on this idea. We're pretty good at getting what we want for ourselves, and most people are very bad at determining what everyone else in a wide population that doesn't represent them do want.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
right this is why i'm an advocate of smaller government personally anyways every business so zooming back out whether you're in physical products whether you're in sas whether you're in services you should consider two different lenses for surge pricing one is the fast pass which we talked about first which is is there some way that we can either reorder our delivery for customers
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
or drag our customer delivery up faster and be willing to pay maybe a small premium in cost in order to get a big premium in price, that would immediately drop to our bottom line because speed is 100% profit. Think about that. Speed is 100% incremental margin, especially if you just do the reordering of customers.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
If it makes no difference for some and it makes a big difference for others, all profit. If you have to do search support in terms of added cost, then sure, you eat a little bit of margin there, but you still can make more absolute money. and you serve those customers better. And I think you'll get more word of mouth.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
And so what I want to talk about is a couple of different ways you can implement this in any business. And the, and what's really cool about this type of kind of offer or value consideration is that it's a hundred percent margin. So think about it. Like if you deliver anything, let's say you build decks for a living, it doesn't matter. And
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
And then obviously on the surge pricing side, if you have uneven demand or you're seasonal in the nature of how your business runs, or it's end of the month versus beginning of the month, things like that, every business is different, consider having pricing that affects that. And I'll give you a different example. So it can also be on a micro level from a day-to-day perspective.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
So in the gym space, the 5 p.m. class or 6 p.m. class is usually, those two classes are some of the most packed sessions, as you might imagine. But, you know, it was never crowded 7 a.m. It just was that it was the dead deadest time that we had. Right. And so when I when I think about that, I think, OK, well, then maybe there should be two memberships.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
We should have peak hours pricing and off peak hours. Right. And so for people who do care about I can only come in this time, then they can pay the premium. And for other people who have more flexible schedules or work from home or work for themselves or they have shift work or whatever it is, then they might be willing they might be happy to get a discount.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
to come to the less packed times, which is good for you as a business owner, because think about it like this. Let's say your 6 p.m. class is oversubscribed, right? So you only have, let's say, 30 bikes, you know, and so you can only fit 30 customers there. But let's say that if you had availability there, you could fit up to 40 people, all right?
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
Well, the thing is is that there might be people who are in that class who could otherwise come at different times, they just have no incentive to. But if you gave them the incentive, then you would be able to service more customers because the 10 who can't make any other time go to another gym because it's not convenient for them.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
And so you make it convenient for the most amount of people by appropriately pricing your supply to meet the demand. And so again, this literally works in any business. If you're a hair salon girl, like everyone who's listening to this and it's like, well, this doesn't work for me. It works in every business. Like, stop. Speed is always a component of purchasing, period.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
If you're a hair salon girl, I'm going to bet that your Friday and Saturday probably is more busy for cuts and colors than, you know, Wednesday afternoons. And guess what that means? Your cut and color on Fridays and Saturdays should probably be 20% higher.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
And for people who doesn't matter or they're not doing it because they're going out that night, but they're doing it because they just need to get their monthly cut in color, then you charge normal and you charge surge pricing for Fridays and Saturdays. And for those of you who have this weird issue with thinking that, what will my customer say?
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
It's like, well, your demand will go down on those days. And then that means that you will... not have to turn customers away. And then you can adequately serve everybody. The perfect pricing model, which is very difficult to do in reality, is that every single person would pay what their maximum willingness to pay is. Now, that is theoretically great, but practically impossible.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
you have your standard, let's say you have a 30% margin in the business after everything. Okay, fine. Great. If you build that in three months, cool. And maybe you can only take on a certain amount of projects. So you build them, let's say in sequence.
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
And so this is where data is useful. So we can just get our best pockets where we know that these are indicators of high demand, like weekends or like peak hours at the gym. There's always these types of pockets that exist in any business. And we just try to... And you think Facebook doesn't, for example, when you're running ads, what do they do?
The Game with Alex Hormozi
Fast Beats Free Every Time | Ep 842
Surge pricing is during Q4 when all the Christmas shopping happens. Cost per impression skyrockets. If you're an Uber, like if you... order an Uber at Friday night at 10, you're going to pay two and a half, three times more. So like, like, are you offended?
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Welcome back to the game. This is a throwback ep. Last year, after our $100 million leads launched, the top 10 affiliates had 10 hours to ask me questions about their businesses and do it for their audiences. And my team went through that whole period and compressed it down to the absolute best moments. Enjoy.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
But most people want to keep hitting these income goals rather than looking at the metrics of the business that are actually going to drive the long-term goal. Because anyone can market their way to $100,000 or a million a month, even with an app like this. If you blow enough money, enough people find out about it, you can do it.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
But then you can only maintain it as long as you're spending that much money. The moment your spend drops, your income drops. And that's not a business that I want to be a part of.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
I like that. And I mean, then at that point, I would just look at... I tried to model as closely as I possibly can the number one player in the US from a UX perspective, from the selection of titles, all that kind of stuff. And then I would see if my metrics change if I do that. If not, then it's like there's some assumption that I'm basing this business off of that's not right.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
But a lot of women like the going to the hair salon and having that exchange. And so I would probably build a business around services in general would be my way. And then I would continue to scale that. And you could do that at a local chain level and you can make a lot of money doing that. Or you could do it at a national level, which would be like professional services.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
A meta skill is a skill that helps you acquire more skills. Learning how to read is a meta skill. Learning how to learn is a meta skill. With the broadest brushstroke, all the way chunked up, learning to learn well, quickly, and retain information and be able to implement it is a skill. You give 100 people a course that's free.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
The difference between the people who are going to be successful and not successful are the ones who already have sufficient metaskills to be able to then use the information and implement it. At one polar extreme, you've got somebody who's completely incompetent, who you have to teach them how to turn on a computer.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And on the other extreme, I can say, go build me a company and the person can do it. So this person can translate a directive into each of the sub buckets and knows how to do that. And so it's really like your success percentage basically is predetermined by how low you break down the skill requirements for someone to be successful.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
So like the reason that I write the books at the grade level that I do isn't so that people who are experts don't get value from it. It's so that it makes it even easier for experts And it makes it attainable for people who don't know.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
So I can get 70% of people who read the book to get leads versus 10% of people to get leads if I just cut out some of the steps and made assumptions about their skill level. The last 10% or 20%, the people who are experts are still going to benefit from. I'm just also going to include, turn on your computer. Here's how you do that.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And from the software perspective with what you're doing, that's also how you get a way larger percentage of your clients to activate. typically we make assumptions because we assume that every customer is just like us. And so they have the same meta skills as us and they have the same interpretation or perception of the world and the UX. And so that assumption isn't true.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Like all you have to do is, and I'm sure you've done this, like you look at people scrolling on your app and you see the heat maps and you're like, why are they clicking that button? Because they have different skills and experiences that they're bringing to the table.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And so then we just continue to accommodate it, break it down to the level that you could show it to a three-year-old and they would immediately know how to use it. Like the fact that babies learn how to use iPods is an indication of how simple they have made it to humans to use. And that's why they have such mass adoption. How will you teach someone how to learn? We already know how to learn.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
It's just that most people don't know how to teach. Everybody learns stuff all the time, right? If you touch a stove and it's hot and it burns you, you learn not to do it again. Learning is natural. We all learn. But people who want to teach a specific behavior don't know how to do it.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And so it really just comes down to three things, which is what do I reward, what do I punish, and what do I extinguish, right? So reward is you give a carrot right after someone does something. Punish is you zap them or you smack them after they do something. Or extinguish is you do nothing, right?
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
So if your wife walks in and she got her nails painted neon orange and you don't like it, you might not want to punish her because that's probably going to have negative ramifications in the rest of your life. But you might extinguish it. So you might not say anything about the nails, right? Or you might say something different. She's like, do you like my nails?
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
I might say something back like, I'm happy that you got what you want. What we're doing is what behavior are we training? And so if you think about teaching as training, I think it's a much more useful word to think through. Because at the end of the day, you have only taught someone if their behavior changes in the same context.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
As in, if I want you to say these words when the phone rings, if I say, cool, we're going to put you through this training, and then the phone rings, and then you don't say the words, you have not learned, and I have not taught you.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And so it's how many times can I simulate this experience, this stimulus, the context, so that I can have them do the behavior I want within the context that's going to trigger it and then reward them immediately. And that's how you have a feedback loop that trains people to do something.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
No, you're good. You're good. I would focus almost exclusively on meta skills, teaching people how to learn step one, and then teaching people the things that are the next level underneath, which is learning how to write, learning how to read, learning how to speak, learning how to do math. Like those are the building blocks of everything else that follows.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And in the school of Alex or the school of Formosi, everyone passes only when you learn. There are only 100% and you continue to do it until you learn. The arbitrary division of grades along age is ridiculous to me. And I think if there were a lot more clarity around the goal, which is like, until you can read 10 pages out loud without making a mistake, you do not move on.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
If you can do that in a day, fantastic. If it takes you a year, okay. I don't judge you on that. It's just how long will it take you to learn the skill? So a good buddy of mine, Dr. Kashi, taught an autistic kid how to read. He couldn't stay still reading. for more than one word at a time. And then he would like have fits or whatever.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And so he came to train the child on how to read with a bag of Skittles. And so when the kid would read a word, he would give them a Skittle. When he would read more words in a row than he ever had, like a record, he would give him two Skittles. So he rewarded the behavior and then he had big bonus rewards when he would unlock a new level. And so he kept doing that.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And within one afternoon, he had him reading a full page. What is the behavior that I want to reward? How can I reward more of it? Now, none of it was punishing. He didn't smack him when he messed up. When he read less, he still gave him one to reward him for the activity. And then when he read more, he gave him extra reward.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
As the kid becomes less full on Skittles and he's like, you know, sugar, he like doesn't want any skills anymore. The Skittles become a proxy for approval and they work just the same.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
We try very hard to almost exclusively reward because punishment changes behavior faster. Reward changes behavior longer. It just takes longer to work. If someone calls me Alex and I don't like that and I slap them and I say, never call me that again, I might change their behavior really quickly.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
If I leave the room and someone else walks in, they might say I was talking to Alex because I'm not there to punish them. And so punishment only works as long as the source of punishment is there and the person doesn't get accustomed to the punishment because punishment itself becomes desensitized over time. And so
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Yeah, it burns my reputation on the ground with it. So I actually have lost everything before. And so I know what I did and I probably would have done the same thing. So the easiest way that I did to like go make a hundred grand in a month when I had nothing was that I would go find a business that was local, that I understood, and that I could sell something expensive for.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
To effectively punish someone, if you want to consistently punish, then you have to increase the intensity and variety of punishment over time, because otherwise people get desensitized to it. If you're always mean and yell at all of your employees, eventually they stop caring. So you have to increase the level of your threats, right? You then have to say, I'm going to fire you.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
I'm going to kill you, right? You have to make these threats increase because you increase the intensity and the variety of how you claim to punish them. Reward, you can reward long enough that you can then extend the gaps between reward and to eventually you don't need a reward anymore and people will continue to do the activity because they have always done it.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Yeah. I would imagine if he was doing this over and over again, he'd prove the point. He's not like a full-time reading teacher. The concept is that he would read and then maybe the next time he comes in, he gives him a Skittle every other time he reads. And the next time, every third time. And the next time, it'd be only when he hits a new record.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
If I can get the kid to read long enough that he actually starts to like the story, then the story starts to reward in and of itself, and then I can move away. And then the kid reads without me. And so fundamentally, that's what you try to do when you train any activity is that most people who are experts at anything get rewarded from the activity itself.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Because once you develop a level of mastery in the skill, you enjoy it because you're good at it.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Dude, I appreciate you, Christoph. Thank you so much. Thank you for inviting your community and hopefully your community got value from the event. And hopefully they use the books and grow the economy in Hungary and all get way, way better at whatever it is they're doing.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
We do everything off the theory of constraints at acquisition.com, which is basically that a system will grow until it's constrained, until it's limit. So it's kind of like the idea of the weakest link, right? So it's finding what the weakest link in the chain is, or the constraint of the system is so that we can decontrain it and then grow to the next natural constraint.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
It's a very simplistic look, but it's extremely effective because it just cuts down all the noise into like, if I had to pick one thing that is the big limitation of this business, what would it be? And so then we just get laser focused on solving that one problem, solve that problem, and then we move on to the next constraint.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And if we solve their problem and the business doesn't grow, well, then we pick the wrong constraint. And so sometimes the constraint is your ability to judge what the constraint is, which is why wisdom is one of the hardest things to earn, which comes from experience, right? Is that you're able to recognize patterns.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And so for me right now, to answer the other part of the question, I'm focused on learning about brand stuff right now. So brand is my big topic. that I've been diving really deep on brand and media.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And I'll probably write a book on brand just from the findings that I have, because I don't think there's many good books on brand, because you can, I could read you 20 different definitions of brand and branding, and they all sound like cockamamie. And so coming up with an operationalized version of what that means, so that it can actually be useful.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And I try to learn this stuff so that I can use it. And then whatever I learn, I just, you know, pass it forward. Because branding for me, despite being now quote known for this or like an organic content guy. I've only been doing this two years. Like this is brand new to me. Like I, you know, I have way more experience on the paid outside. That's what I did the last decade.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
I would front the capital to market, I would work the leads, and I would sit at the front desk and sell, and I would negotiate what they would be willing to do a big bulk of services at scale for. So for example, if I wanted to find a chiropractor and I'd say, hey, if I sent you 100 customers this month, What's the lowest rate you would do all 100 customers for this level of service?
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And I, you know, people got to see a tiny taste of that when I was launching the book, but that's, that's the big thing is fighting out with the constraint of the businesses. And if you need to chunk all the way up, it's, if you want to grow a business, you have to sell more clients or make them worth more or decrease risk. Those are the things that are going to grow the value of a company.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And so just simply asking the question, why do we not have 10 times more customers? Or why are we not making 10 times more money? And then figuring out what the answer to that question is, oftentimes is the constraint.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
This is like a Pandora's box. If I start talking about it, it might be like 10 minutes. So I can riff on it, but buckle in the audience. So if we look at the origins of what a brand is, right? Where do brands come from? Brand comes when you brand cattle, right? That was the original use of a brand. And so why would you brand cattle?
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Because you want to change the behavior of people who look at the cattle. So if you have a cattle that doesn't have a brand and the cattle that does, the people who are looking at it will behave differently. If the cow doesn't have a brand, I might take the cow for myself or I might kill it or I might eat it. I might do whatever.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
But if the cow has a brand on it and I know the guy, I might return the cow to him, right? So it changes what I do, all right? That's an important point. So the point of a brand is to... change or elicit a desired behavior in the widest percentage of your target audience. Now, how do you do that?
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
You do that by making associations between something they don't know, your brand in the beginning, with something that they do know that is positive and rewarding, if that's what you want. And so the index, it's a four by four box of what brand really is. You have the direction, so you've got away from and towards, and then you've got strength. So very high and very low.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
So if you have a really weak thing, That's away from it's like, I kind of don't like this thing, you know, slow Wi-Fi, you know, like bad brand. On the flip side, you might have a political party, which depending on the audience might be super strong and away from or towards. Now, Taylor Swift, for example, would be something that I would say has a very strong brand and towards.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
There's not a lot of people who really hate Taylor Swift. And a lot of people who really love Taylor Swift, right? So it's positive and it's strong, right? Somebody like Ray Romano, if you heard that, you know, or like Tim Allen from the old sitcom days might be someone who is positive, but weak. A lot of people know who he is. Am I going to show up to his event? Probably not.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
The idea is that in order to build a brand, we simply pair things that people know with things that they don't know. The things they don't know is our logo, our tagline, our company with things that they do know and think are positive. If you were to think about the brand as a bouquet of flowers, It's like having many flowers in a bouquet.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And so if I were to break the bouquet and spread all the flowers, there is no bouquet. But simply by gathering them together, by making associations, I create something new. And that bundle of associations is the brand. Now, if I were to break one of the flowers or make it rotten, it would affect the appearance of the entire brand.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And so that's why if you make a single mistake, a Dylan Mulvaney move for Bud Light... you can affect the entire brand. If I get a DUI or somebody you know gets accused of doing some sort of terrible, heinous act, it affects the entire brand. R. Kelly, bad brand now. Despite all the positive, the one broken rose or the one rotten flower affects the entire bouquet.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And then I would just negotiate that down. And then I would spend as much as I could and sell it for as much as I can so I can make the spread. And then they would service the customers. And for them, it's a zero risk offer because they don't have to do anything. I front everything else. And then for me, I don't have to do anything but market and sell. And I can take all of that.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
We have to be very deliberate about what associations we want to make with our own brand so that we can continue to positively associate ourselves. And the point of the brand is that we get a desired action or behavior from a specific audience. The idea of growing the brand a lot of times is that you sacrifice some audience for other audiences.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
So like when I was starting making content, I did it in my closet, right? And there were some hardcore people in the OG Mosey Media days that are like, I appreciate you. That were like, man, I miss the closet videos. Now, I might have lost some of those people when we started making a little bit more polished videos, etc. Some people, not all. I traded losing some audience to gain more.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
When you're making a brand move, you're basically always making a bet that you will gain more of your desired audience than you lose by making a change. And so you can approximate or slowly move a brand over time by making more associations in one direction and fewer associations in the other. And so that's how you can move a brand over time. Bud Light made a wrong bet.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
They thought, and maybe this is just a corporate group think, right, that if they made an association with Dylan Mulvaney, that they were going to get more people to buy their beer. I mean, fundamentally, that's the only reason you would do it as a company, right? You'd believe that long-term you'd get more people to buy your beer. The problem was that wasn't true.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Now, the interesting thing is that there probably are people who were a big fan of that move. It's just that there were more people who weren't. They were far away. Right. There were more people who were not a fan of that move. And so that became an away from association. And so that is what I am trying to encapsulate and put together into how to brand.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Because now that I feel like I understand it a little bit, I see it as, in my opinion... It's kind of like Neo in The Matrix when he's talking to Morpheus and he says, so you're telling me that I can dodge bullets? Morpheus says, well, when you're ready, you won't have to. And so we learn all these tactics about sales and marketing and show up rates and CRO hacks and all this shit.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
But if you have a brand, if you see The Matrix... Everyone shows up to your calls. No one has price objections. Everyone is excited and refers their friends. It just takes longer to make associations because fundamentally, all branding is, is teaching. You are teaching someone to do something. You want them to behave a certain way and you have this red, red card.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And when you see red, it means stop. That's all we're doing. So green lights have strong associate, strong brands. They're positive. Everyone loves green lights, right? Like it's a simple thing. Just no one owns it. But green lights are a great positive association. It's a great brand, right? And so that's the idea of what I'm kind of diving more into.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And I see it as the ultimate cheat code for business. It just takes a long time to do and most people aren't patient.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And so when I lost everything, I immediately was able to make 100 grand the next month by doing that playbook.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
I'm telling you that once you have a brand, they become irrelevant.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Chunking all the way up to like, will this cost me number of sales, like sales velocity? Will this decrease the lifetime value of customers? And will this increase or decrease the likelihood that whatever I'm doing right now continues to occur? So we're trying to value a company, right?
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
We look at what's the sales velocity, how many customers they sell, what's the lifetime value of every customer, because then you can extrapolate what their run rate is going to be at scale at max, unless we change something. And then you divide that by risk, which is how likely is it that there's going to be an outside event that's going to change the
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
this thing from continuing to occur this box of making money how likely is that they will it will continue to grow or at least stay the same and so if i have a problem i have to be able to track it back to one of those three things and if it doesn't really track one of those three things or there's another problem that has a much higher likelihood impact in terms of it's higher likely and it has a greater effect size then i'm going to prioritize that it's just that oftentimes if someone's like man i really think we should change the colors on the site
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
I would just say like, what's the likelihood? Like I have been notorious for having ugliest shit sites my entire career. And you can make branding, make associations. And I think there's an argument there. But what's the likelihood that it's going to affect how many companies do a deal with us? It hasn't up to this point. And so is it a constraint of the business? No.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Is it something that I could improve? Absolutely. There's also a hundred other things I could improve. I could also send more emails, which I don't do. Like there's lots of things I could do, but what are the few things or the one thing that matters most, which then ladders back up to what is the constraint of the business?
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
There's basically four positions in the market. You have luxury all the way at the top, which is technically a Veblen good, which means when I increase the price, demand goes up. And that's because there's an association with the price that makes it more valuable. So the fact that everyone knows how expensive it is affects the value that I get from it.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
The fact that everyone knows the Rolex is $100,000 the one that I'm wearing, whatever, then I actually, it makes the Rolex more valuable. So it becomes a virtuous cycle, which is why LVMH is one of the most valuable companies in the world. Then you have premium, which is basically the above average. So it's there you have to pair utility with the premium.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
In luxury, the extra price tag is the value. Whereas with premium, like BMW is premium. They're not luxury. They're a little bit better at a lot of stuff. And so you pay a premium because it is a little bit. They use better materials. It breaks less, whatever, right? And so then you have your run of the mill, your commoditized space, which sucks.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And then you have your low cost leaders, which they make their entire business on how can I drive efficiencies and operations at all levels of the business so that I can be the lowest priced person in the marketplace. Right. And still make a profit to route to your question of like, when is enough enough?
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
The key indicator for me and most of this, like the quote, higher ticket world, you're not luxury goods. The fact that it's expensive is not the reason that people want to buy it. Right. It's so it's actually technically a premium. I'm more extreme about the price to value discrepancy than anything else.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And a lot of people get into trouble because they raise the price so much that it's just an excess of the value they provide. And so then they actually create a negative experience. Like if Chipotle were $50, people would probably not like Chipotle, even though the product is really good. But at $50? I don't know. And so the reason Chipotle is so viral, you know what I mean?
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
It's like the price to value discrepancy is so good that they tell their friends, right? And so that's where this kind of marriage of how can I just short circuit people's brains from value perspective, which is what I try to do with the books and the courses so that it becomes viral on its own. And then my cost to our customers is zero. And so then everything after that is just gravy.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Or the four variables when you're using this is you've got the price, the value at the top, which is what they get. The price is what they pay. You've got your cost of goods to deliver, and then you have your profit left over. And so it's playing with those four variables so that you can maximize the amount of absolute profit that the company makes. Pricing high has become shorthand.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Well, those are the three big buckets. One is that leadership is just the internal bucket of getting people to do what you want them to do at scale. And then from a selling perspective, I include that in all things that are marketing, letting people know about your stuff, promotion, and actually converting people into customers.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And where I think people get a lot of benefit from the offers book is that when you price higher, you automatically weed out shitty customers. And I think many times that is the real reason that a lot of people's businesses grow from that price. Now, obviously, there's more profit. You have access to things that you can deliver on.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
But a lot of people don't actually take that excess money to create a better experience. They do a gotcha. And then they never get anything from that customer again. And so that's the wrong way to use it. But if I had to think like, okay, what are the reasons that a company might be successful that does charge premium?
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
It's that they actually reinvest the premium price into a superior product and...
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
They are very clear about the avatar that they go after and what the quantitative requirements are that are black and white that they know from looking at their best customers, their top 20, top 5% of customers, and then saying, we're only going to cater to these customers in the future because the likelihood that we can give them a great outcome is higher.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And then that can create, you know, you can merit or earn the premium that you have because you have data that supports that if you are this type of person, we can get you this type of result.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
A lot of professional services should look at Wi-Fi for inspiration. You're like, what does that even mean? You don't want to like clap when the Wi-Fi is working. You just notice when it doesn't. And so you just want it to be in the background. You just want it to work. And so a lot of companies are like that. There's a lot of services that people think they need to over communicate stuff on.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
I just want the financials to be accurate and I want them to be timely. That's it. And I want things broken down in a way that allows me to make business decisions. And that's where I think the top tier of accountants transform into fractional CFO and CFO kind of materials where they actually help you use this data to make informed decisions about the business.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Is there a way that I can translate what we do into how it would affect a business owner's life? So I'll tell you a little story because I think this will be really relevant for you guys. Mosey Nation, real quick, if you are a business owner that has a big old business and wants to get to a much bigger business, going to $50, $100 million plus, we would love to talk to you.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And then the third piece of building product and services is so that at scale, if the product is good enough... then you won't lose customers. And if it's exceptional, the product itself will get you more customers. And so most businesses taken to their natural extreme on a promotional level, typically are leaky buckets because the product actually sucks.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And if you like that or would like to hear more about it, go to acquisition.com. You can apply anywhere on the page and talk to one of our team and see if we can help you get there. So one of our portfolio companies has had a ton of growth. Three years, they went from one location to I think we're at 38 locations now, right? All self-funded, off cash flow.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
All right, so really, really tremendous growth in three years. And it's compounding, so it's growing faster and faster. And when we were at about 30 locations, we were stuck at 30 locations for like two quarters, right? And so I got on the phone with the CEO and he was like, dude, I just I just feel like I don't know how many locations I can open based on cash flow.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And because they had net receivables were a little bit extended, things like that. Right. I like shook the screen for a second. I was like, I need you to freeze frame this feeling you have right now. I was like, okay. I was like, think about this feeling you have. I was like, what you are feeling is finance as the constraint of your business.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
You do not have a finance function that is operationalized enough. You are underdeveloped in the finance function. You have a bookkeeper who's not that good. As soon as I could see, it just clicked. I was like, that is the constraint of the business. Until we get the finance function in, you're going to just be operating blind. And then once you know... We have this much cash flow.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
We can open two locations a month or three locations a month. Then you can be more aggressive with everything else because you're confident that you're not bankrupting the company accidentally on your own. If I were an accounting firm, I would try and pinpoint the problems and relate them to how it's going to affect growth in the business.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
How is the constraint so that you can talk in the language that a business owner is going to understand? They just... How many, I'll bet you, like if I could see everyone's hands, how many people in your audience, all the business owners just go to the right, go to the bottom and say, so we made more money this month? Great.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And so I think adding that level of strategy of like, by the way, I think this is a little fat compared to other companies that we're looking at. This is a little bit under compared to other companies we're looking at. And this might be an area of opportunity. Little things like that that actually add value to the business if I were somebody who is in charge of an account.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Yeah, sales management, what you what you hit at is one of the hardest parts of business, you need to make an informed decision without context, which is why being an entrepreneur, you end up becoming a jack of all trades so that you can have enough context to make at least an informed decision. And so I'm going to steal a playbook out of oops, wrong shoulder, there we go out of Layla's book here.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And I'll give you my tactic around this, which is You want to interview for people who are sales managers. And you don't want to hire anyone for a little bit, which sounds tough. But what you want to do is you basically want to interview for information. Now, if you meet a gold star, that's amazing. But you want to talk to people. And if you know more about it than they do,
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And most businesses suck in general, because most products aren't good. And most people want to cancel very quickly and don't want to continue to use them, which is why very, very good companies are very rare. Most of them generally are mediocre or not good.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
they should be teaching you. And once you talk to 10, 20 people, they're basically like expert interviews for what it should look like. And so then you get a very good idea of what the role should look like after listening to people, and you'll get an understanding of the level of nuance. And I'll give you this one little tidbit that is super powerful when it comes to judging skill.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
The quality and quantity of data that someone chooses to collect around their particular department is almost directly proportional to their skill. And so, for example, I have lots of marketers who are like, my product's amazing. And I say, cool, tell me your metrics are. I was like, what's time to value? What are the key activation points? What's churn? Just some of these metrics.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And they're like, well, dude, our refund rate's really low. But I'm like, okay. I was like, well, what about the marketing side? They're like, well, CPMs are this. This is our click-through rates. This is our conversion on the page. This is our percentage of the schedule. This is our percentage of the show. This is percentage open rate. This is percentage click.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
They go through all this stuff and I'm like, right. So I can see very clearly that you're a better marketer than you are a product. And so simply getting an idea of the quality and quantity of the data that someone collects around their department is When we hired our director of people, it was the first time that I had someone actually tell me metrics I'd never heard of.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And I was like, she's the lady. She's the gal.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
So coaching models in general tend to be very difficult to scale because the reason people come to you is for expertise. In order to get other people to provide that expertise, then you have to create lots of experts who then eventually walk off and start the business on your behalf and take your customers with them. I would say like there's a couple different approaches.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And so I prefer to solve a business from back to front, which is like, can we find something that people actually like and want to continue to use and continue to pay for? And then the marketing is almost a commoditized skill. Like it's very easy to let other people know about your stuff, but And do so louder and louder and louder, provided the product is good.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
So the first is that there's a law firm and McKinsey kind of consulting model. There's a track to become a partner in the business. And then that's kind of the whole business structure. So there's a way to share in the profits. They do make lots of money, but the owners of those end up having to dilute themselves out. Not that there's anything wrong with that. You can make lots of money doing it.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
But that is that is a version of the model. The other way is to productize the basically get narrower on the solution that you're providing and productize it to the greatest degree possible so that anyone could do it, even if they have no knowledge of it in terms of like the implementation of the thing.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
That is more the direction that we went with gym launch because we had a very specific we don't even we didn't even work with all gyms just to show how narrow we were with it. We worked with only micro gym owners. We have now expanded to health clubs as well. The five or six years that I was doing it before we sold, we were only micro gyms.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And so just to show how incredibly narrow that was, someone had to have at least 30 members, assigned leaves, one employee, and be running this type of model for them to be a customer. And then if they fit all those things, we could generate a lot of revenue using our playbooks. I could have somebody who had no gym industry, no expertise whatsoever, and still say, send this email, say these words.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Here's 10 recordings of people doing this exact same thing. This is the expected value. And so that's like from the delivery perspective. Now, operating the business overall comes from talent and being able to find people who are just as smart or smarter than you.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And people say that, but when you actually meet somebody who's smarter than you, and then they admire an aspect of what you've done so that they start to work for you, that's where you really start to have the magic happen.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Okay, so what things should an agency owner avoid when they're trying to scale? Yep, yep. I mean, the same things that any business owner would want to avoid when they're scaling. Agencies tend to fall into the you know, they they tend to fall into the bucket of trying to be everything to everyone.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
So maintaining the discipline to be very focused about the problem that you're solving and who you're solving it for. And I think that solves 90% of the problems from a strategic perspective for any small business owner, including an agency.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
The second piece is that if you're in a service based business, the quality of your talent is going to be directly proportional to your growth because you're you're basically selling people, fractionalized people. That's what service businesses are, right? You're selling some level of training that you're able to give
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
and having more efficiency than an individual business owner would have like the the classic you know small business owner lead gen agency that charges two thousand dollars a month the idea is that if they were to hire somebody full-time to run these ads it would cost them five or six thousand dollars a month but you have copywriters designers and media buyers and page designers who all work a fraction of their time for this one business and they can get it more efficiently and you can still do it
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
at good margins, right? Like that's fundamentally what services are. And so the quality of that talent and the culture that you have at the business to attract and keep that talent are the kind of the key or the crucial pieces of the success of the model.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And then the internal has to get run with a leader that can attract the talent to continue to do this. Because quickly, the business will bottleneck based on the founder and their expertise. Or usually they have a niche. They might be product people. They might be tech people. They might be finance people. They might be whatever.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Creating the irresistible offer isn't necessarily about having a zillion products. It's more about explaining and communicating the many small things that you have to do anyways. And so rather than saying, like, I'm going to generate leads for you, that's like one outcome. But there's many things that have to happen along the way. You have to create landing pages. You have to write copy.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
You have to you have to have follow up sequences. You have to work the leads. You have to have scheduling. You have to you know, you have to split test. You have to make new creative. Like there's lots of things that have to happen in order to just get the single result.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And it's just making sure that we're delineating those things because an unbeknownst or an ignorant business owner, I say ignorant in the technical sense, like they just don't know.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
um would have no idea what you're doing you're like yeah just go get me leads it's like well it's much easier said than done and if i was doing it from an outbound perspective i'd be like well i have to warm up domains i have to you know spin up different accounts i have to split test different email openers i have to split like you have to explain all the steps and they're like wow there's a lot more work that goes into this now i can i can appropriately value this price tag that you described to whatever the service is so that's piece one in order to be irreplaceable oftentimes you'd have to go after significantly bigger customers
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
If you're an agency for Fortune 1000, for Fortune 500 companies, it would be so costly for them to spin up at scale the level of talent that's required to do like programmatic media buys across 100 different platforms in different countries. And then the likelihood that they want to leave or do this on their own is significantly lower.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
The idea that any service provider is going to become truly irreplaceable, like any business can do anything on their own. And I would prefer to put myself out of business and do it in a way that aligns my customers with me than have a model that I know is basically has a timer for obsolescence. Not everybody works with Fortune 500 companies, right?
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And the thing is, the small business owners are really tough because they're the problem. Like they're super erratic. They're super volatile. Their cash flow is lumpy. They don't know where their next paycheck is going to come from. And to no fault of your own, they can cancel because they just can't make payroll that month. Look at the biggest agencies that exist.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Ogilvy, you have Vayner, you know, is up there now. Who do they service? massive companies. Why? Because the quality of the customers are higher. And so they know that when they sign a contract, they actually stick with the contract. We all know that if you have a small business owner who signs a 12-month agreement for agency services, he's good for three months.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And then they have to be of the character to attract the talent that will allow them to get to nine figures or whatever it is that the goal is.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
The biggest model that I've seen for small business owners from a marketing perspective was an agency that was running $300 a month. What? $300 a month price point because they had figured out and like there's a key here is that like those business owners are so price sensitive. It's not whether you can sell them. It's whether you can keep them on their worst month.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
The price isn't based on the value that you can deliver on the best month, but how much you can keep on the worst month because that's where the churn comes in. The best model that I saw was doing SEO for small business owners. And they had completely automated every aspect of it. It was basically just a playbook. And I think it generated reviews and maybe a couple phone calls a month.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
But at a $300 a month price point, if they got one or two phone calls a month, it was worth it. So the bar to get over to ascribe value, and especially on something that I call like a nuisance business, where it's like, I know I should be maintaining my reputation. I know I should be doing some of this stuff. Okay, for $200 or $300 a month, I don't feel guilty about not doing it.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Because this is being handled.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
You talk to basically one of the core problems of all B2B businesses, which is that you end up taking over the person's entire business until eventually they're like, yeah, if you could just send me a check every month and you run the business, that would be awesome.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
That's why being very disciplined about problem definition from the services that you provide, number one, and here's the one that everyone messes up. who you pick. It's not like, even if you work with chiropractors, right, as that example, you don't necessarily even want to work with all chiropractors.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
You look at the customers that you have right now that are the best customers, like the top 20% or the top 10%. You say, okay, what characteristics do these people have that other people don't have in my client list?
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And that's both from the soft, the hard perspective, what are the quantitative differences, they have a certain size business, they're over a certain amount of month, they have a number of locations, they have a certain amount of employees, number of customers, like you just get all that data on them. And then also, what was the experience that they went through when working with me?
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And was it different than some of my other customers? Because one of the things that happens oftentimes is that the first few customers you get are become really sticky. And then you start scaling. And then you have this front revolving door, but you still have your core business of these people that you had in the beginning, right? So why is that?
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Because these people got more help from you and actually got delivered more value. And then you basically tried to scale without scaling the value that you delivered to the original customers, right? And so if you're at whatever, 15,000 a month, and you've got five customers, and they're all like having a great experience, and you keep signing people on, they keep leaving.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
It's like, okay, well, instead of me trying to sell five this month, why don't I just sell one and do a great job and then not lose them? And that's the key to compounding in a service business once you pay down the inefficiencies of them not knowing what to do yet and being very specific about who you serve and who you don't. We didn't work with personal trainers.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Cycling studios and yoga studios 100% could use our model. We didn't work with them because the founders tended to be psychologically different. Their adherence was super low because they just come from a totally different worldview than the guys who are more fitness, weight loss, transformation focused.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Even though at the end of the day, it's just a membership with a backroom where people work out. But mindset wise, they had a very hard time kind of adopting a different model. Even though monetarily, it totally made sense. Which means you need to have discipline to say no.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
I have 13 companies. I get 1,800 a day who reach out. Right. So you have to say no. It feels weird to say no because a lot of the time I get... That's why most people stay poor. They can't say no. And what happens is you go for the short-term money and you sacrifice the long-term money because then you just get in this operational rat race.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And then you scale up your costs to meet the fact that you took on all these customers that you shouldn't have taken on to begin with. And then you have to pay them every single month. So then you have to keep on taking on customers that you shouldn't have taken on to begin with. And you get in this vicious cycle that you can't get out.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Until you downsize, you take two steps back, five steps back, fix your ego, and then say, I'm only working with these customers because ethically, I know that these are the ones that I have the highest likelihood of success with. Everyone else, I have mediocre success. And I can say it's their fault. I can say it's my fault. It doesn't really matter.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
All that I know is that the likelihood that they achieve what I think they should achieve is low. Period. So I'm not going to sell them. Aren't you afraid that the time will go smaller? Of course. You can build a niche an inch wide and a mile deep. There's 30 million small businesses. You don't need to service them. There's 50,000 gyms that fit the model that we have.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Now, if you want to build a $10 billion company, then yeah, you're gonna have to go after a bigger problem. But if you want to build a nine figure company, you can do that in almost any industry.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Honestly, it's just being authentic. 99% of the fitness market just looks at what other influencers are doing and say, I'll just copy that and I'll do stuff like that. But then you just do a worse version of what somebody's already doing. Zooming all the way out, fitness, like there's no secret. Work out more, stop eating shitty, you'll look better over a longer time horizon.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Like that's what it is, right? There's going to be a subset of an audience that is like you, genuinely, and they could get fitness information from Alex, but if I'm a 45-year-old Indian mother, I'm probably not going to be her source for fitness information, even if I see the identical stuff as another 45-year-old Indian mother.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Now, if that 45-year-old Indian mother looks at my fitness content and tries to make content like mine, it's going to seem weird. You can stick out by actually being yourself. I know it sounds trite, but this is real. There are so many unique aspects
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Like if you know that when you stay up late, like there are times when I will gas it and go past my red line in terms of work. And I know that I'm eating into tomorrow. But if I'm like in a flow and I'm crushing it and the muse shows up and the muse wants to work, then I work. You know what I mean?
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
of someone's life and the things they're interested in compared to other people, that if you just lean into those differences, those unique, the things that you're actually into that are weird, right? Rogan's into aliens and mushrooms and comedy and fighting. Who would have told him like, you should be Joe Rogan?
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And you're going to have people who like some aspects, and then the super fans will be people who overlap on two or three of the interests that you have. If you picked my brand, it'd be like dessert, working out, philosophy, business, marketing, sales. They're people who follow me because they only like the business and money stuff.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
They're people who follow me because they only like the philosophy stuff. They're people who follow me because they just think the desserts and cav stuff is funny. Like it just depends on what someone's going to come in for. But if you're just you, then you can stick with it for the long term.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And that's what's going to build over time and make you quote stand out because there is only one version of you that's lived your life. So just live it publicly.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
I hope you make so much money from the book and crush it. Because at the end of the day, there's more problems than any one person can solve. And I hope you build businesses to solve them. So explain to me how the franchise works.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
The franchise thing is interesting because I feel like you would be able to achieve that simply with a profit share rather than getting investment and equity and all. Because if speed is the goal, then you could basically do the makeshift because I'm assuming many of them aren't planning on selling.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And so the only reason the equity would be valuable is if they're going to sell it sometime in the future. And buying, quote, more locations isn't really a thing either. I would imagine that it'd be a lot faster to just contract
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
you know basically put put legal language around getting a profit share in the structure you know the cut that you have like many companies have scaled sales orgs you know i mean like insurance brokerages are just massive sales orgs like real estate agents are massive sales orgs and so um they don't necessarily have equity you don't need equity deals because those can just get litigious and there's lawyers and just take i'm sure you guys have already seen this like it just takes more time and i feel like there might be like you could probably remove a couple of components to get the same behavior which is ultimately what you're trying to do is get people who
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
But if there's some days on the flip side where I wake up and I just feel foggy as shit and I just like for whatever reason, I ate too much Mexican last night and I don't have it that day, then I might call it earlier. Like the idea of me pushing through and punishing when it comes to the type of work I do. If I were doing a more brute force work, then I would care less. You know what I mean?
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
I mean, based on the model you have, you guys can own 100% of the franchisor. But even if it was just like the main co., You can still have streams because you have the software. So tracking becomes the issue. But since you already have that infrastructure built, the ability to just make sure that they get overrides.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Now, if you want to put a $10,000 buy-in or something just because you feel like that increases commitment levels, I mean, that's fine. But if you look at like a Chick-fil-A, for example, are you familiar with their model? Yeah. Right.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And so that, you know, each location probably costs, I actually don't know the build out cost, but I would imagine it costs at least a million, probably one and a half to build a location for Chick-fil-A. And the operators put $10,000 in.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And so it's more of a symbolic gesture than it is like them actually, you know, contributing capital to whatever the thing is, but they actually don't own equity in the business. So they get a 50-50 profit share after a royalty that goes to Holdco.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Just looking at what they've been able to build, it seems that that structure works without the equity in terms of eliciting the behavior that you guys are going for. But from everything that you said, even right at the beginning, you were like, well, we needed something that was more scalable because obviously we had lots of people.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
There's many people who have scaled businesses with lots of people. And so it sounds like it's actually a talent deficit. Like you need to hire somebody or bring someone who's a high-level operator who has scaled a sales-driven org. What's revenue right now?
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Is that GMV? So like gross sales volume, and then you're getting whatever, 20, 25% on that. Yeah. So you'd be looking at somebody who's scaled a sales org from 10 million to 100 million and who's really ops heavy. So you'd want somebody who looks like, who's very leadership driven, not a systems person. That's not the right person. You're looking for somebody who you admire. Take this away.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
I mean, you need an adult, right? That's not a function of age. Just saying you need someone who has experience doing this. Because if I were looking at like, if I were going to go buy in right to phone sales, the first thing I would do is hire an operator. Because right now, all the things that you've described have been people issues.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
So if I'm operating on the theory of constraint, which is what we do, I'd say, okay, well, then people issues seem to be the main problem for this business. So I'm going to hire somebody who has experience in this particular domain in a sales org who has gone from X to Z.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Where do you find such people? Well, you guys are sales guys, right? So it's outbound. Outbound is the easiest thing to do. You could also run ads, but the best people already have jobs. And I mean, you guys know this from your business, right? And so it would be outreach. Outreach is the easiest thing to do. Go to LinkedIn. And LinkedIn has so many tools now. Like
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
If I was just doing reach outs, I was doing cold calls, I was training, personal training sessions, I was cutting hair, I'm just I'm just going to brute force my way through it because I don't need to have higher brain function. And that's not an insult. I'm just saying, like, you're not like thinking of creative things. You know what I mean? You're just you're working the work.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Search for people who meet these three or four job titles, probably like a senior vice president or a VP of sales. Sales director might be a little too low, but probably a VP of sales or VP of sales ops, something like that. You'll have to play with the title. It is kind of like an ad in advertising. You have to play to figure out when you get the right avatars on the phone.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And I have no money, right? I would probably build a boring business in services. And I would probably pick something around the body. You know, I wouldn't just start a design firm because I think that has a high likelihood of getting disrupted or, you know, in some way by AI.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
uh but as soon as you get to click then you're like okay these are the types of people i want and then you talk to as many as you can and the limits test that i have for high level talent is that i should be learning from them on the phone call so if i feel like i have to teach them stuff they're not the right person like if they're teaching me things which is also great because then you can keep taking notes and after 20 or 30 phone calls you're like okay i have a very good idea of what excellent looks like
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And I can make a more educated decision on the type of person that I want. But that person who's very operational should be a people-driven leader, especially in this type of org.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
I think it depends on the product that's being sold.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
I think you can do... So the way that I like building sales orgs is having repeated sales materials and then individualized. So repeated sales materials are going to be like the VSLs, the webinars, things like that. But you're not closing on those webinars. You're just qualifying and setting.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And so I want sales guys to be doing as little information spewing as humanly possible and really being able to start the call with, so you're ready to buy? And then
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
yes or no and then work your way so you have 60 minutes to close rather than okay great now like discovery like let me talk to you about how we might be able to help you because if you because then sales guys get really tired of saying the exact same pitch then they sound like robots then they get zoned out because they're saying something they're not listening and so the talk ratios get way off um and so i prefer having as much of the standardized information sharing being done before the call so that the closers time can be maximized to closing rather than just like teaching
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
But I wouldn't be trying to pitch 30k stuff directly to a payment page. I'd probably be pitching that to qualifier set calls.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
But when it comes to like writing or making presentations or communication of some sort, it's more I try and optimize around how can I maximize over a week how much flow state I can be in so I can just get the most total quality output. So it's not about rules. It's more like which of these things has a highest likelihood of getting me the most. What's up, Kristoff?
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Correct. At the end of the day, there's a certain amount of information that someone needs to have or a certain amount of exposure that they have to have to a brand or a product for them to make a buying decision. And so that can be a long set and then a short close. It can be a set webinar close. It can be a long webinar, then a close. There's just a certain amount of selling.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
The runway for the plane has to be a certain length. It doesn't really matter where you slice it. This is the amount that the majority of people need to have before making a purchasing decision. Now, some people might need less, and that's okay because they probably got it beforehand from other things that they've consumed. So if you want to say, okay, how do I sell?
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
I want to increase the likelihood that the highest percentage of people buy, then I want to create an experience that... The highest percentage people get all of the information that they need prior to the closing conversation. And so if you do a webinar as a big set thing, I mean, to me, that's the same. I mean, that's all the same.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Like if you run ads to webinar ads to VSL, then they go to a scheduler. Or, you know, if you have a live call team where you have a number that becomes the CTA, and then the call teams answering calls in real time. operationally, I wouldn't, I wouldn't upend my entire business because of just a slightly different way of doing it.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Because I think it's more happy to glad, um, as long as your throughput is good and you're, you know, like you're making money and you're growing right now, I would, I don't know if that would be the constraint of the business.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
So like, I think the stuff that we were talking about earlier, like that seems more of the constraint than kind of the, the, the individual tactics, you know, in the example you gave.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Well, I mean, brand matters more than anything, like right off the bat. And the vast majority of the hard closing tactics and hard sales tactics have to exist in lieu of not having a brand. It's like we have to make up all this...
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
hard stuff uh it's kind of like in the matrix when it's like uh when you're good enough you won't have to dodge bullets or like you're saying i can dodge bullets it's like well when you're ready you won't have to so like the brand is when you're ready you won't have to but if you don't have that which is the big thing that you should have but if you don't have that then it's the same things that you would normally do you're going to try and find common ground be relatable uh try like a lot of it just comes down to how well do you understand the avatar
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
So I think a lot of sales teams underprepare by under-understanding the avatar, the prospect, and over-educate on the product. If I understand what a 45-year-old woman is suffering from, I can basically do the same sales call. And at the end of the call, say, I can pitch therapy. I could pitch weight loss. I could pitch a gym membership. I could pitch cleaning services.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
It doesn't really matter because if I understand the avatar really well, I'll be able to speak to her pains.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Yeah, strong brand, strong product, for sure. Fair question, though. Yeah, relatability, common ground. What's been the number one reason you've seen show-up rates increase or decrease? It's 100 golden babies, no silver bullets. So when we go into a company, we have something called a lead nurture checklist. And so it's just like 17 things that we do. And each one of them adds like 2% to 5%.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And so that's how we can get something from like 30%, 40% show rates to 85% show rates. It's just...
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
doing a lot of little things so i would not look for like the one trick it's just like okay how quickly are we responding how how much information we provide them beforehand are we providing a personalized video like can we give them a gift card for showing up that they can share our coffee with us like just how many different things can we add in to increase the likelihood that they show can we can we create an open loop between the set and the close that they're going to get information that they are they have got their inter their their interest peaked is there a way that we can say that we're going to show them that we're going to do a certain amount of work on their behalf and we're going to give them the deliverable on the next call
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
right so they have a huge incentive they have huge curiosity so that they would want to show up like this is particularly true in insurance products so like we have an insurance company and so like we create personalized insurance plans it's like okay well how do we get more people to show up but we don't want to send them the insurance plan that we're going to make them before the call we just say we'll explain it to you on the call yeah we implement a lot of those tactics as well probably there's some stuff that you're doing now we currently don't have at the moment as well i don't know if it makes sense to share on this call but you said there's kind of like 17 things is it possible you can maybe like send it to us no
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
All right. Honestly, it really depends on what the business is. If we're looking at an insurance business versus a weight loss business, it's more applying a principle across. But that being said, the big one that's probably missing, it's usually the big obvious thing, which is we can always do the hundreds of little tactics, but you're trying to dodge bullets.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
rather than like winning before you start, which is like, why, why do so few people trust you? Like that's the big, that's the big, like I see the matrix and then everything else becomes irrelevant. So for acquisitions.com, our show rate on calls is nearly a hundred percent. So if we call, if we say, Hey, we'd like to find out more about your business today is Tuesday.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Our next opening is Thursday of next week. So nine days from now, show rates still a hundred percent because of brand, we actually don't need to do any of those tactics. Now, we have those tactics so that we can help the companies that don't have those level of brands. But you want to stack the deck. You want to answer the question, why does no one trust me? And solve that.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Otherwise, you're always going to deal with these issues. Do the fundamentals, for sure. But the big things that will matter most is who you're choosing as your customers. So Vista, you guys heard of Vista Private Equity? So they're the biggest software private equity. They've got a gazillion dollars, whatever. The way that they look at a business is that they do a customer analysis.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And so they look for the 80-20, right? They look for the 20% of customers that are worth more than everyone else. And they then do a customer analysis and say, what do these 20% have that the other 80% don't? And then they exclusively look for customers that are that 20%. And then they say no to everyone else.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
When you have nothing to lose, it also makes it the best time to make high risk decisions because you have a disproportionate upside. Not quitting if you want to do something else, like if you have this desire to do something else, is like not taking a stranger up on a free lottery ticket on the street. If they give you a free lottery ticket, and you lose, you're back to not having anything.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And so then what happens is if the sales velocity remains unchanged, they 5x the business. So sometimes you'll make more money just by saying no so that you can have the capacity to say yes to the few guys that matter more. And if you're not getting more of those people, then solving that problem rather than saying like, how do I polish a turd?
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Instead of going from that perspective, just saying like, maybe I just should not try to polish turds because it's still a turd, right? And like, how do I get the people who are much better companies to be attracted to my business? And if you have a customer list that people aspire to be like, then you'll get more and more people.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
That's kind of the branding side for you guys, which is how can I associate with better quality brands so that other better quality brands realize that what we do is legit. You can try and optimize the shit out of something, but usually it's the big obvious stuff. And we don't look at the big obvious stuff because they're actually harder problems to solve and they take longer.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
But it's where the most value is unlocked.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
So I would say it's less about the topics of the calls and more about what you're training repeatedly and what you're rewarding. So sales is one of those really interesting businesses or departments that you can see very clearly. You guys have probably seen different sales teams and they have very different cultures. And so it'd be like, what are the cultures that create the highest performance?
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
In our experience, you can go on either extreme. You can have a very punishment-driven culture, which is very individualistic, or you can have a very team-driven culture, which is typically reward-based. What you want to reward is adherence to the script, not closing. That's a huge shift for most sales teams.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
If you reward adherence to the script, then what happens is you get everyone to follow the script. Now, if they aren't closing, then you need to change the script. But it's much easier to change the script once you've taught adherence than it is to have a bunch of lone wolves who do anything they can to close the deal, which then impacts your brand.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
So like a really simple tactic we did at one of our chains was we just said, cool, we'll give them five bucks if they follow the script, whether they close the, now mind you, the tickets are smaller, right? It's just higher volume. We'll give them five bucks if they follow the script. And if they close or they don't close, they get paid either way. You know what's interesting?
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
The thing they're most curious about when they send their managers is do I get the five bucks for the adherence, even though they make three times more on the close. So we still give them benefits for closing, but they want to know whether they got the approval of the manager because the $5 actually matters less than the approval from the manager saying you did a good job.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
The $5 is more of a token.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And if you can imagine, because everybody here has sold before, if you got on a call and you knew that you could get paid no matter what just for following the process, it takes some of the pressure off. Think about it. You hop in the car like, I'm just going to make sure that I get my bone no matter what on the adherence. But guess what happens when everybody hears to the script?
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
You fucking close more.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Because sales is one of the biggest issues where you have false positives, where someone goes rogue and then closes and basically gets reinforced for doing the wrong thing. And then they start doing the thing that they did that one time that worked and then it doesn't work over and over again. So they change the behavior. They learn the wrong thing. And so then you have to course correct, right?
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
That's why sales, like it's all about adherence. And then we can be really strategic about really making sure the script is beautiful and crisp and concise. And we just drill the team on adherence.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
You don't sell emerging tech. It's selling the plane flight versus the vacation. If I could tell you that your financials would be absolutely accurate and updated in real time, would you want that? How much would you be willing to pay compared to what you currently pay? A lot more. Great. What if I said I could do it for less than what you're currently paying? Are you interested? Great.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
This is what I need. The fact that I'm using AI is irrelevant. You just sell the outcome and then you're not really... Yeah, no one cares. AI is great for YouTube clickbait, but for sales, it's irrelevant. That was like one of the main... What else do you want to do for the next 16 months?
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
The vast majority of AI businesses that I look at are dog shit. And so either they're not real AI, which is 99% of them. They're basically just built on chat GPT, which is fine. There's nothing wrong with that. But I'm just like, let's not claim that we're creating AGI. On the other hand, it's people who have no business acumen. And so they're like, it's totally different.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
If you win, then your life changes forever. And so I think a lot of people place a disproportionate amount of weight on the opinions of other people who are going to judge them in the short term because quitting your job is short-term pain for long-term fulfillment.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Like the normal laws of business don't apply. It's like they have always applied and they will always apply because they're just how business works, right? Those are the vast majority of people that I see in that. I do think that... AI implementation for Main Street is an enormous opportunity. So AI-ifying, if you will.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And I don't think, I think your first conclusion is right, which is being the custom guy is tough. You know what I mean? It's just, it's all things to all people, which is nothing to no one. If I'm talking to the audience now, if you guys want to get into this world, what you want to do is look at an industry or an avatar that you understand well.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And so one of the things that like Y Combinator and some of these great, like, you know, legendary investors look at is how much time a founder has suffered and lived through a problem. I can talk about breathing because I've had two nose surgeries. I've been falling asleep on my hands since I was in eighth grade so that I could breathe.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
So I've lived with the problem for a long time, and I've tried many different types of solutions. So I have tons of industry knowledge if I were to start a company like that. If you have a job right now or have had any type of job, you've worked in a business. That's a great baseline of background knowledge that's difficult to just jump.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Even if you were a server at a restaurant for two years, you still will probably know more about restaurants than 99% of people who aren't in the restaurant industry. I don't know anything about how restaurants work because I've just never really worked in one.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
You could probably be aware of, because you now also have this understanding of what AI can do, to think, okay, there's 100 problems in a restaurant. Is there one very specific problem that I can solve well and is very similar between restaurants? Because as soon as you get the point A to point B, you can create the clear value prop and you can message around that.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Getting extremely specific, which is I think what you were saying that you give the advice to, is super smart. And it makes the problem set really narrow to solve. So you can become an expert that's an inch wide and a mile deep. The exact same thing. The reason that most people don't do that when they're starting out is because you don't have enough demand.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
You have so few leads that come to you that you're like, well, I mean, shit, I need to pay rent this month. And I only got four leads this month and all four are completely different, but I need the money. And so I get it.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
If that's what if that's what you want to pursue, because the short term pain comes from the judgment of others and likely a back, you know, back step in income. But long term, you're working on the thing that you want to be working on. Now, if you like your job, and you know what I mean, then that probably doesn't apply to those people.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Redeploy that cash into getting really concentrated on your marketing, which is what offers and leads is all about, so that you can find that specific avatar that you can over and over again repeat, which is also why referrals are so strong, because if you do a good job, they will send you other people just like them.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
So yeah, I definitely wouldn't do it as a consulting relationship. The thing that you're going to be selling is the product. And so having a consultant who's the one who's in charge of the primary value that you're driving is not a good idea.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And so you'd want somebody who's long term incentivized to continually improve the product, continue to innovate the product, see the things that are coming around the corner to keep it up to date, make it better, make it stronger, etc. It really just comes down to how to have a normal business partnership. So all the normal rules of business apply.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And this person has some specific knowledge you don't have. And you should ideally have specific knowledge they don't have. They should be asking the question, like, why do I partner with the people in your community? If I'm an AI developer, right? If you're trying to figure out which of the problems to solve in an industry, it's just value created times ease of implementation.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
That's the equation, which if you chunk it up, it's number of potential customers times gross profit per customer. If I have six different problems I could potentially solve, which one has way more people who have it? Which one's easier to do? Which one unlocks the most value?
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
But like, if you're in that situation, it's really a long term, short term sacrifice, which a lot of people aren't able to make.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Okay. I mean, we were thinking the same thing. So I was glad to know you agree on that. It's the product. Like if you're in a service business, the quality of the people that you use to provide the service is the product. And so those people usually want to be compensated well, because if they are really good, then the places that they're coming from will want to pay more to keep them.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And so you have to give them a great place to work and a financial incentive or some upside that they get exposed to that they wouldn't otherwise. Like you want them to feel like owners. And the best way to do that is for them to actually be owners. If you're trying to get on the cutting edge of technology, then actually having the people who are good at that is the business.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Because we don't know it. It's easier for you to do the marketing stuff because you're good at it. So you know if someone's full of shit on the interview. You just don't know if anyone's full of shit on the interview because you have no context. The most important hire, which is why I say this, is you need a technical co-founder.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
You need somebody who has a real stake in making sure that the people who are coming in are actually good. Not that you're checking a box and saying, hey, I have 14 people on my development team. Anybody in the true high-tech world knows that one amazing developer is more valuable than 100 B developers.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
This is the hardest part of business, is hiring people who are really good at something without knowing the in-depth knowledge. And that's where leveraging somebody who might not want to work for you that you do think is brilliant to at least interview or double-check on how good they are
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
um is really valuable that's where like building a network becomes important and getting even some tests like of aptitude for them to take so that you can at least get some sort of baseline but it's all going to be about how skilled that person is because ideally if they were as good as you are at marketing then you guys would probably have a really successful business
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
All right. Appreciate you guys. Thank you. And appreciate the community. Thank you guys for showing up. Hopefully the book serves you guys well.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Real quick, guys, I have a special, special gift for you for being loyal listeners of the podcast. Layla and I spent probably an entire quarter putting together our scaling roadmap. It's breaking scaling into 10 stages and across all eight functions of the business.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
So you've got marketing, you've got sales, you've got product, you've got customer success, you've got IT, you've got recruiting, you've got HR, you've got finance. And we show the problems that emerge at every level of scale and how to graduate to the next level. It's all free and you can get it personalized to you. So it's about 30-ish pages for each of the stages.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Once you answer the questions, it will tell you exactly where you're at and what you need to do to grow. It's about 14 hours of stuff, but it's narrowed down so that you only have to watch the part that's relevant to you, which will probably be about 90 minutes. And so if that's at all interesting, you can go to acquisition.com forward slash roadmap, R-O-A-D map, roadmap.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
So Layla had quit her job to join me to start Gym Launch. This is when we were doing turnarounds, so we're flying around the country. So she quit her job after knowing me for only a month and then started basically living with me in motel rooms. She had built up a book of business. So she was actually giving up something that she had spent two years building to pursue this thing with me.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
If I were, you know, it's as silly as it sounds, like a nail salon or a lawn care service, things that, I mean, especially body ones, you know, dentist stuff like you still have to go in and get your teeth taken care of. And many times people value the human exchange more than something robotic. So, for example, in the fitness world, like this is my like my data point around this.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And we were new, like we had just started dating. About six months into that, I told her that I needed a break. and the she actually asked me she was like it sounds like you don't really want me to be here do you want me to leave and i was like yes that would be great i had just lost all the money from the partner i had this location that i had to either shut shut down and had no cash to do it
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And I had to service all these contracts that didn't have the money to service. And I also had like three other businesses that I was trying to run at the same time. I had a chiropractor agency. I had my gyms. I had Jim launch the turnaround business. I had a dental agency, all of those with different partners. And I was the one who did marketing sales for all of it.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And so I was just so spread thin. And so I needed to generate money. to basically pay the bills of the gym that the money had just gone out the door for. Right after me saying, I don't think we should be together, she had to leave the next day to go to Hawaii to launch a gym for this guy that she's no longer dating, that she quit everything to leave.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Tough situation that 99 out of 100 girls would have just said no. They would have been like, I'm just going to go back home and you know, try and get all my clients back. But she didn't do that. So she flew out to Hawaii. I didn't have enough money to give her like a nice place. And so I had her split an Airbnb with five guys, five dudes and Layla, not ideal.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And so she worked out of the Airbnb and well, realistically, she worked out of the gym most of the time and did the biggest launch that we'd ever done. And so like when my world was crumbling around me and I really needed her to come through, she stood tall and she did it in a time that I probably didn't deserve that level of loyalty because I hadn't shown her any. And so she did that.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And then I made enough money from her launching that gym that I could pay off all the bills of the gym that was going under that I just lost all the money on to basically come out breaking even so that we could actually go back all in on gym launch and get rid of the other companies.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Well, when she did that, I wanted to be with her. She had extended me loyalty that I had not given her. There was probably a few defining moments in our relationship. That was the first big one.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
The offer is a strategic question that influences all aspects of the business and is also a mental exercise that people can feel like they're making progress on their offer a lot faster.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
leads is a lot more about activity and implementation and so people can get ideas from like the lead magnet chapter but then you have to start reaching out to people posting content or running ads to start getting leads in the door right and so there's a little bit bigger of a hurdle with leads than there is offers but it's also the the main driver of business is letting people know about your stuff and so i think that many people will mentally masturbate to the idea of making these amazing offers but i think former people make money
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
by actually letting people know about their stuff, which is leads.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Unless I can work once and have something provide value on an ongoing basis, which is a high leverage activity, then it makes no sense. I think most people shouldn't write books because the amount of work it takes to make a great book that actually lasts the test of time is extremely difficult.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
It's exactly that. There's diminishing marginal return, but an increase, an exponential increase in absolute returns. The gold medal sprinter in the Olympics versus the silver medalist. From a business context, the person who's at the gold medalist might have worked 10 times more to get this much more out. But what's the difference in absolute of gold versus silver? Everything.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
There was a brand called Cocoa Fit, and they struggled a ton and then eventually went out of business because they tried to automate personal training. So they created these all in one machines that would you'd have a key fob and it would count your reps. And every time you went to the machine, it would say how to do more and what you did last time. It's a really cool concept.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Just being this much better, people are like, well, I don't want to work 50 more hours to be this much better. But being this much better might make you the best at that, whatever the blog post is or that business or that solution. And the amount of winner takes all the economy has shifted towards, people want the lowest risk solution.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And so if you have the best solution, then it is the lowest risk thing to buy. And so to be number one versus number two, 80% of the economics, sometimes 90% of the economics go to number one. And so it makes absolute sense to work 10 times harder, even though you might only be this much better from a marginal perspective on the chart of rankings that might make you 10 times higher. Some context.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
Did you use them before? I don't read many book summaries, mostly because you rely on the person who's doing the summarizing to find what they think is the most viable thing for you, right? Because a lot of times what I find if I read a book, the nuggets that I find are not the main concepts. It's actually the details.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
If you don't know anything about a topic, then the summaries are great to give you a latticework, a framework to understand the rest of the information that you're going to consume. But once you have a basic understanding, it's in the edges, which is where you can expand your knowledge, right? And so there's not a lot of shortcuts to getting really good at something.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
At the end of the day, everything's going to be capped LTV. So like if there was one single metric that I'm going to look at a business, it's capped LTV ratio. So how much it costs me to get somebody and how much I make from them over the lifetime. Until that metric is better than the competition. So like Blinkist, right? I think that's one that's like that.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
I would have to look at their LTV and what are the things that they're doing that like, why am I, why are people going to come to me versus them? So either I have to be more niche in my selection of books so that I'll have a wider selection for a narrower audience. Competing against Amazon is very tough.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
But if you niche down into a specific topic, then you can actually have a wider selection because Blinkist is just going to take the bestsellers for every category because that's going to be the most people. And they're VC backed and they're funded and they can acquire customers at a loss for a long period of time, acquire a market share.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
The problem was their theory was that the reason that people were getting results is that they didn't know what to do when the reality is that no one was showing up at the gym. People hire personal trainers because they want another human to talk to and to hold them accountable to showing up. Same reason like if you had a robot cutting hair, there might be a percentage of the population that do it.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And unless that's the game you're trying to play, then you have to play it different, which is I want to be really specific about the avatar that I want to go after. And so that's where you do a little bit of research ahead of time and say, okay, is there an underserved market that might actually, A, have a big reading preference?
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
So like salespeople is one of the most common professions on planet Earth. From a personality perspective, how many sales guys read all the time? I don't know. I would have to look into that. And so you might be like, okay, well, sales guys aren't the guy, but maybe HR specialists read a ton.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
OK, well, if they read a ton and there's like Blinkist might have one book on HR, but I could put 100 different things that are related to that or one degree separated. And then I can create the illusion of a wider selection of topics, but around a narrower, narrower avatar or concept. Right. I would start there.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
And then over time, you can expand if you if you want to and just reach, you know, you go adjacent, you go to finance, you go to whatever. Like this is me just spitballing again, like I did the no strip thing. From the economics perspective, you have to get LTV to the point where your churn should be under 3%. in order to make this really work. Once it's under 3%, monthly, yeah, monthly.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
I mean, ideally you want to maintain 80% annually, at least. If you want this thing to be a big thing, all of my attention would be only focused on that. Like until you fix that, there's no point in acquiring customers because they're just going to fall out the back end. Like there's literally no point because then you're also getting lots of people in that will then say that that thing sucks.
The Game with Alex Hormozi
Throwback: Money Making Advice You Needed to Know Yesterday | Ep 839
You know what I mean? I'm not saying it sucks, but I'm just saying like a friend of theirs is going to say, hey, I signed up for this thing. They're going to be like, oh, I tried. I didn't like it. And then they're like, oh, okay, maybe I won't. I won't stick on it. I want to be so quiet about what I'm building until all my metrics are right. And then I want to blow the doors off.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And I think a lot of that is because people don't have the emotional maturity to say like, hey, I'm going to break up with this girl and she can be a great person, just not a great person for me.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
most people can't do that most people have to in order to justify their decision talk their ex-girlfriend talks their ex-boyfriend or whatever in order to feel okay about that decision because they probably did have some conflicts right if they work there for an extended period of time and then they ultimately decide not to work there they have to like feel good about it and so to their way of feeling good about it is making everyone else feel bad and this is something that we've worked uh pretty hard on is like when we when we hear it now we actually just get them out i would rather suffer
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
the hole or the vacuum, then have the cancer kind of like take even more root and plant more seeds while it's gone or while it's on the way out the door. So that's a tactical nugget that I would say that I've changed about my behavior with relation to the parables that I was telling earlier.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
The Parable of the Drowning Ship So a merchant owned a ship that sprang a small lake. The repair would cost him a month's profit. I'll fix it next quarter, he decided, taking on more cargo instead. The leak grew. Now repairs would cost six months of profit, significantly more. I'll fix it next year, he reasoned, taking even more cargo to make up for the lost speed because it was leaking.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
So hopefully that can at least save one of you guys a massive headache when it comes to running your business. I also saw you had the parable of the bread maker, if you wanted to go into that. Well, I'll tell you guys that one pretty quickly. I mean, for everybody who's like starting out, it'll probably be a little bit more applicable for you. The parable of the bread maker.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
So bread maker sold the best bread in town for one copper coin. He worked 18 hours daily, but barely survived. So one day, an old merchant walks up to him and sees him turn away customers when he runs out of bread, which he does all the time. And so the merchant goes to him and says... Hey, double your price. And the baker says, that's impossible. I'll lose all my customers.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And the merchant, who's much wealthier than the baker, says, just try it. And so reluctantly, the baker decides to listen, and he does. So he doubles his prices. And so then the next day, he loses half his customers. But he made the same amount of money working half the time.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And so now that he had half of his time back with his free hours, he experimented on new recipes, new ways to bake the bread, new ingredients, and the bread got even better. So all of a sudden, over time, now the customers that he lost, he got some of those back, but he got even more customers. So now he's selling out yet again, but at double the price. But now he's working 18 hours a year.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
So the merchant goes up to the baker and says, hey, double your prices again. So he does. Yet again, he loses half his remaining customers, but the profits now rise. Because he's now done two doubles. He's at 4X. And ultimately, at this point, the customers just devalued the quality over the price.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And so by a year later of this process of continuing to improve the product, he ended up selling the same amount of loaves as he used to, but at four times the price. And to people who really loved and treasured his craft. So he worked less, he earned more, and he loved his work again.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And so the moral of the story is that basically the price you charge, you tell the world to value your product at that price, and the world will believe you. And so for some of you, and I've overheard this, there's been an unwillingness or like a fear around raising prices. So I want to like put some of that, quell some of those concerns.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
So number one, worst case scenario, you can just change it back. All right, like not a huge deal. You can just change the price back. Not a big deal. Second, the risk of not raising your price. Everyone's talking about the risk of raising your prices, but what are the risks of not raising your prices? The risk of not raising your prices is that you work all the time and make no money.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
You attract the worst customers. You attract people who demand even more for every dollar off that you give them. Fundamentally, what I'm going through is the virtuous versus vicious cycle of pricing. And the thing is that your conviction also goes up. And because you have higher gross profits, you can spend more on the product and on the experience to make it even better.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
You can also attract better talent because you may have more money left over. So there's all these cascading downstream effects. Now, if you're a technology platform, Fine, it's a little bit different, right? But if you have any kind of services that you're rendering, it's almost always in your best interest to try and be the premium seller rather than a budget dealer.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
The only way to be in the service business and try to win on price is that your entire competitive advantage has been built on the lowest cost basis possible. And if you didn't start that way year one, you're basically just at a race to the bottom to go out of business.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
So the counterintuitive thing, which is raise your prices, often feels like it's the riskiest, but it's actually the least risky thing to do. Because you will attract people and you will signal to the marketplace that you are like other premium providers who sell fewer customers and ultimately provide a better experience. The thing that's a mind game
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
By year's end, the ship could barely stay afloat. Repairs would cost everything he had. He then said, I can't afford to stop now, mortgaging his house to add yet more cargo. The ship eventually sank. Staying on the shore, a wise trader told him, the best time to exit a bad deal is when you first realize it's bad. The second best time is now. And so...
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
trying to be PG here, but it's a mindfuck, is that when you raise your prices, you will hear no more, more often, but you will make more money. And that's what I think gets people really twisted. You will have more people turn you down, but you will make more money. Think about the equal opposite.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
If you make it free, you never hear no, or just about never hear no, and then you just want to end everything because it sucks. And so at the absolute extreme, you only have one customer who's 100% of your business. And so for sure, there is a sweet spot, right, as you continue to raise prices.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
But if you had some sort of certainty that that one customer would never leave, then it would be the most efficient business model in the world. You'd find the person who could pay you the most, who valued the thing the most, and then that's the business. And then you could just absolutely over-deliver like crazy to that person. obviously there's a sweet spot.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And the parable exists really just to point out that when you have fewer customers, it doesn't mean you have a less healthy business. It often gives you back resources, not just money, but time to improve their experience and ultimately reinvest with your focus and attention into making the product or service better.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And so for the vast majority of you, there's so many businesses that are mispriced. So I'll give you a couple of like little telltale signs here. If you're getting on the phone with prospects, and you're over 50% close rate, you're probably mispriced. Now, if you're the founder and you're the one selling, it's normal for it to be a little inflated.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
But if your team's selling over half of people they get on the phone with, the price is probably too low. And so I'd say the sweet spot, this is just my rule of thumb, is about 30% to 40% is kind of the benchmark. And so big picture, you just need to do the math. You can't always do the math when you have small data.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And so this is me just giving you a rule of thumb of what I have found is that usually closing about 35 ish percent is kind of like, okay, we're doing okay here, right? You get much above mid forties. It's like, maybe we're a little high. If you're like in the 70 to 80%, you almost certainly have a double or triple in pricing capacity available to you. A double or a triple.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
very a huge amount of pricing is kind of it's kind of there. Does this depend on the elasticity of the good? Sure. But for most services, consumer and business services, that is a good rule of thumb to go by that that I use.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
With both of those parables, I find them really telling because I want to now translate that into kind of real world stuff for me. So one of the most difficult and painful things that you have to do as an entrepreneur is that you have to replace anybody on your team.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
But the further up they are in the organization, the more painful it is because typically if they are not a culture fit or there's a performance issue or a combination of both, the people that they hired underneath of them will likely also suffer some form of deficiency related to that leader. So it's almost like an entire tree branch of the company becomes rotten.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And it's not that they're bad people. It just might not be that they're a fit for the culture that you have at the business. What makes this so painful, and this is the thing that I find really interesting. I remember a pastor was telling this story. He said he was talking to a husband, and the husband had cheated on his wife. And so he was saying, you know, you have to tell your wife.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And he was like, I feel like it's really selfish for me to tell my wife and hurt her. He said, why should I hurt her? That feels like the wrong thing. Basically saying it would be almost a sin to hurt his wife. And so then the pastor said, the sin occurred when you cheated on your wife, not when you told the truth.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And so I kind of see it that way within a company, which is that when you have somebody who works for you or is especially a leader, You basically incur this debt, right? And so this is operational debt, leadership debt, management debt. There's different ways of saying it. But basically, you have somebody who's not there.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And then I kind of want to just, like, juxtapose that against a lot of different scenarios. So... I will tell you the first parable now. You guys ready? So this is the parable of the infected tooth. So a CEO has a talented but toxic executive who drove short-term results but poisoned the culture. Her board and employees warned her repeatedly, but she kept this executive.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And for every day that you don't replace that person, you incur more debt of what's going to come later. And that debt comes due with interest. And so it hurts even more. And that's something that I would say that it's taken me a long time as an entrepreneur to just come to terms with. It's just like when you see something bad, the moment to address it is immediately.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
Because when you wait, it literally just gets worse. And so sometimes we wait until our hand is forced. But wouldn't it be better to not have your hand forced and then never have to get to that moment? And so I was giving this example to a new leader in the business who took over a department yesterday.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And he was going through some of the pains of having to like basically raise the standard, raise the bar, you know, cycle some people out who weren't really aligned with kind of the direction of just like high performance. And I said, so if I walked around here and I told everybody that they didn't have to use the bathrooms and they could just shit all over the building, they could literally shit.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And that's what I said. That was the expectation that I said. Well, the day that I come in and say, hey, guys, stop shitting in the building and use the bathrooms. Everyone needs to be like, what the hell, man? That's not how we've been doing things. You know, why are you changing the expectations? Why are you changing everything? Right. And. The reality is, who's the one whose fault it is?
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
Now, ultimately, it's always the entrepreneur's fault because everything within a business is your choice, either directly or indirectly. But under that assumption, the fault was from the manager prior, not the person who's basically paying the bill. And so it's like this person, whoever they are in the business for you, will basically run up this tab. They're just spending.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
They're spending, and it can be money, but a lot of times it's spending goodwill, it's spending culture, right? You're basically doing this work at the cost of culture. And the thing is, is that the bill will come due. And the thing is, is oftentimes the person who runs the debt up and spends lavishly and gets everyone to love them is not the one who pays the bill.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And that's where it's really tough. Because like, if you're, for example, and here's the real, real, you may be this person. Like this may be you. And so you're going out there and you're splurging, right? You're saying everything's great. You guys are doing awesome when you know they're not doing awesome. All you're doing is kicking out a bill that you're going to have to pay later.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And the bill comes due with interest. And that interest is usually just the entire culture of the team has suffered. And so then you have to, it's like, it is like a decaying tooth. You have to pull it out, but then you got to scoop out all the gunk and all the root and everything else around it so that you can start fresh. And it's just been this was just top of mind for me.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And that's why I had these two parables that I I tried to put together around this. And and I guess that's the that was the moral of the of the story for this morning is that you you probably know who that person might be in your business. And, you know, the best day to root out cancer is the day it happens. The second day is right now.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And so I think that some of you may have some people on your teams and it may just be you that you need to have that talking to and say, like, I'm no longer going to stand for this. Because if we think about the job of the CEO or job of the entrepreneur, our job, in my opinion, above, I'd say we have two primary kind of roles overall. Number one is that we are chief allocator of resources, right?
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
We have limited resources in terms of time, money, human capital, people. And we have to allocate that limited amount of time, money, effort against unlimited potential things. And so the best entrepreneurs get the highest returns for the limited resources they have. Fundamentally, it's an exercise in resourcefulness rather than resources. The second job, in my opinion, is holding the bar.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And so fundamentally, this is a combination of the vision of where we're trying to go, but the bar is more about how we're going to get there. What are the ways that we choose to deem valuable? What are the behaviors that we say, this is how we want to do it? And your culture is a direct reflection of you.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
Like, what's been top of mind for me has been parables, all right? And I think the reason parables are so interesting is that they're very memorable, right? Like, remember stories better than just about anything else. And there was a parable that I've been thinking a lot about. It's two different ones, and they apply a similar lesson.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
fearing the pain of removal and the dip in performance that would inevitably ensue after the removal. So quarter after quarter, you know, she would rationalize. She would say, well, next year, or after this big contract, or once I onboard this new customer, or after I hire, you know, fire replacement, et cetera, et cetera.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And I think it's one of those really true, very harsh realities that if you don't like the culture, there's really only one place to look. You have to look at the leader. And it trickles all the way up. Whatever you deem acceptable,
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
what everyone will deem acceptable because there's no place realistically that you're going to be able to house 200 rules of behavior right and so what we do is we try to abstract that into a you know a few pithy aphorisms a few little quotes that say you know we're customer obsessed we're you know speed over everything whatever right but it's more so because if i look at somebody and say speed over everything
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
There's some inferences I can take from that, but it's not actually very good directions in terms of how do you act, how do you behave, right? And so we're expecting that someone uses their second brain cell to then reason for themselves in this situation, how do I balance all three of these values? And then what behaviors would ensue?
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And so fundamentally, the reason that values can decentralize decision-making across an organization is that it's supposed to be a very high-level filter for what to do in situations that have not been prescribed, right? Like a traditional rule has a condition and then a behavior, if this, then that, right?
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And so if we want, I mean, fundamentally, we could write a rule of behavior around everything that exists in the business. There's a couple of problems with that. One is it would take forever. Two is that it would then we'd expect everyone to then refer back to this book of rules, which would also be a pain. Three, the rules would be constantly changing and dynamic.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And so instead, we try and chunk up to values and we hope that in the gray, in the nuance, people can reason. But we're always, you know, flabbergasted at people's inability to use the second brain cell, as I like to say. And so it's like, what do you do? What do you do in this situation?
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
So I think that the biggest thing that happens as you continue to move on in your entrepreneurial career is your understanding of what talent means and what talent looks like. And so if we look at how quickly an entrepreneur will, like anybody who's listening to this, if you've had more than one business, which if you're an ADD entrepreneur, you probably have,
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
Um, your first thing compared to your second thing, I'll bet your second thing happened way faster than your first thing. As in like you got to your old first things level in half the time, a third of the time, a 10th of the time, right? Because you knew how to beat all the bosses. And then you got into quote virgin territory where you're like, I don't know what to do from here. Right.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And in my opinion, especially if you build an organization, The where do I go from here part, a lot of it comes down to who do I hire from here and what do they look like? And so if we think about a company as the output of the collective intelligence of the people contained within it, which is one of my beliefs, I think Elon said something to that degree, not that like a couple of days ago.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
So then when she finally needed to fire him, she had to, morale then plummeted. And then project stalled, three key employees quit. And so she goes to her mentor and she says, see, removing him wasn't a good idea. And so then the mentor replied, the pain you feel isn't from removing the tooth. It's from letting it rot so long that it infected the jaw.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
But I've long held this belief. If you think about a business as a Christmas tree, let's say that there's four heads across and that's like the second rung of the tree and then the peak kind of goes a little bit above that. In many smaller businesses, the person who's learned everything is you, the founder. You did every single person's job, and then you try and buy some of your time back.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
But what ends up limiting the business is that it's limited based on one person's skill and experience, because you know how to do everything, and you can do it better than them. But the limit of that business is purely based on your, basically, intellectual capacity.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And so you can make a significantly larger business if you can visually imagine, like, beefing up the, you know, the top part from, call it, four people to 20 people. All of a sudden, the hypothetical peak goes way, way, way, way, way up if that was the width of the peak, right? So the width of the part before the peak, the peak rises.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And so if you're adding people to the organization, you want it to be a net increase in overall intellectual capacity and or skills and experience so that every person who comes in actually adds to the peak, right? Adds more knowledge that other people didn't already have. And by doing that, it's just a really good razor.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
It's like, does this person know things that other people don't know within the organization? Now, I want to be clear. Sometimes there are roles that are front level. It's likely you have the third sales guy. Then that might not be one of those.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
But when we're talking about leaders, which are going to be the people who are going to increase the rate of growth of the business, because they're actually the people who can take things off of your plate or start new divisions, start new revenue, revenue streams. What most of us lack is a high enough standard.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And that's what I think really develops most over time as an entrepreneur is that like what happens is you just hire a bunch of people in the beginning. They have a pulse and they seem like they can speak a language that you also speak. And you say, oh, that must be all that is required in order to do my job or do this job. And then by pure dice roll.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
pure chance you will hire somebody who's actually pretty good. And then all of a sudden you're like, man, if I only had five Sarahs, like this company would be so much bigger. And so what happens is your bar raises. And one of the most difficult things about transferring from one entrepreneur to another kind of like between generations is pattern recognition.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And so there are some lessons, and I think Williamson talked about this, and I actually really liked the frame, which is like, why is it that some lessons – we have difficulty transferring, whereas other ones are immediately accessible. I'll give an example.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
Like if I needed to teach you how to cold call or teach you how to do outreach or teach you how to sell, it's a very easy to transfer skill, right? But if I had to teach you, let's say that money isn't going to make you happy, it's like you hear it, but you're like, well, I'm going to find out for myself. Right.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And so it's like what separates these types of and that's more of a statement than it is a skill. But anyways, the zoom out thing here is that pattern recognition amongst people, I think, is one of the harder things to transfer from one quote generation to another or for me to transfer via zoom. Right. Is that like, hey, you know, I remember I met.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
I mean, I've met a lot of number twos, people who have, they're like, hey, this is my COO, this is my whatever. And within like one minute, I'm just like, yeah, this isn't the guy. But it takes the entrepreneur two years to figure that out. And so this is, in my opinion, where people stay stuck.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
The extraction just revealed the damage that was already there. And so she realized that every day she delayed had made both the problem and its inevitable solution more painful. And so then the mentor added, remember, the mistake wasn't pulling the tooth. It was washing it decay and calling that patience. That's parable one. Parable two.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
This is why they stay at the same level for an extended period of time is that they don't know what they don't know. It's the unknown unknowns that kill you. It's not the known unknowns. It's the unknown unknowns. It's the what is the sales director supposed to look like? What is the VP of finance supposed to look like? What is my first sales guy supposed to look like? You don't know.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And so then you waste six months hiring somebody, training them. Maybe it doesn't work out. And then you have to start all over again. And then you do it again. And then it doesn't work out. And then you start again. And then finally, on the third shot, you get it right. And you're like, oh my God, this is what a salesperson should look like. And it takes you that 18 months to do one thing.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
Recognize a pattern. It's a set of behaviors, a set of skills that somebody exhibits that you can say, ah, this person has this. And that is now what I'm going to look for, this archetype. And so you level up as an entrepreneur. And so I think a lot of the levels of entrepreneurship are about who not how and figuring out what does this person look like?
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And I would say conversely, how quickly can I get people out when I know they're not it? And I think that speed on both side is what ultimately dictates the growth of the company.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
Because taking a hypothetical extreme here, if you're the absolute best people in the entire world in each of the positions or functions within an organization at your stage of growth, your company would grow probably insanely fast. And so then the question becomes like, if that's true, then who do you need to become in order to get those people?
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
And what skill sets and behaviors and even what vision do you have that people who are high quality find compelling? So those are my two little parable anecdotes for the day. Just food to think on for you guys. It's something that was kind of top of mind for me. And I think a lot of the mistakes that I've made as an entrepreneur have been
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
betting too long on someone that they were going to be different, or recognizing that someone was insufficient and then keeping them for a long period of time. Leyla and I have also worked recently to eliminate two-week notices. So basically, if someone says that they want to quit, we just want to let them go immediately.
The Game with Alex Hormozi
Stop Confusing Patience With Delaying The Inevitable | Ep 843
Because we actually suffer more as a business with a cancer of somebody who doesn't want to be there, just poisoning everyone around them once they've basically, it's like, they're like, I'm out the door and let me tell you how much, you know, this place sucks, whatever.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Hey guys, welcome back to the game. Today's episode is a throwback city of one of our top episodes of all time. And so if you are new to the channel, then you will probably like it. It's titled how to get ahead of 99% of entrepreneurs.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Then I became self-employed. I gained a little bit of leverage just over my own time. So I went from having someone else control my time to me controlling my time, which was leverage. I got more for what I put in. And I went to five figures a month. Then I went to employing other people. Which is then I would say the first level is me now having the first level of leverage.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
So I went to six figures a month. And this is right as I would say first when I started my gyms and I had multiple gyms. And then when I transitioned that to turnarounds, I still stayed at six figures a month. But fundamentally, it's because I actually didn't change leverage. I changed how I was structuring it. But fundamentally, it was people doing the same work.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
So this was both me being a gym owner with six locations and me doing the turnaround business with other people. You're like, how do you go from six figures a month to seven figures a month? Then you start licensing. Now, what is that? I made content fundamentally, and then I made it once, and then many people could have access to it. And so when I did that, I went to seven figures a month.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so if you have those two things together, then you create a $10 million plus business. And If you've consumed any of my other content, I used to talk about how entrepreneurs have three main things. You've got skills, you've got character traits, you've got beliefs. I've thought about this more and I've actually simplified it to one degree, which is I think you just have skills and beliefs.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Now, the question is, how do I get from seven figures a month to eight figures a month? Because that's what we have at acquisition.com. What did I add into it? Capital. So now we buy into companies that have other people working for them. I use content to attract those businesses. Now, I don't have any code right now. I have one software investment, maybe two, I think, that are major investments.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
But the rest of my stuff, really, if we're talking about it, is that I made content, I had capital from the things that I'd done before, and we have the ability to get other people to help us get to our goals. And so this is acquisition.com and that's eight figures a month. Now, what do I need to do to get to nine figures a month? I may just need to add time to the existing thing that I'm doing.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Key point is that leverage is about getting more for what you put in. People who move faster in life don't actually move faster. They get more for their inputs. They get more for every step, right? I'm not like frenetically moving to move faster. You just get more out of every move. And so that means that if you're getting more out of every move, it's a function of time.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so if I had, for example, maybe some code that was implemented within everything that I do at acquisition.com, I might be able to get to nine figures a month faster than I currently am. But I feel confident with these three that we'll get to nine figures a month eventually. And so you might say, Alex, that might be a limiting belief. It might be.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
But that's kind of how I'm choosing to play it. And so let me reverse the clock here. If I had just kept my gyms from the time I started my gyms until now, I might have 100 locations. And I might also already be doing... nine figures, not nine figures, I'd probably be doing eight figures a month from the gyms. And so you're like, well, wait a second. So was it the best move?
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
I can't go back and replay time. I don't know. But that's where, to me, this is why the game gets interesting is that every time you switch vehicles, you start at zero again. So the pace that the leverage affords you for each step you take has to be disproportionate because year four of a business, you'll typically grow more than year one of a new business.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so that's where doing the same thing for a longer and longer period of time, you still get more leverage. The guy who owns Panda Express opened 600 new locations this year. Because he has done this, because now he has enough capital, he has enough collaboration, that he's maxed, no, he doesn't do any content. And he doesn't have any code, right?
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
But he has these two at such a high degree that when he adds 600 locations, and each location does $3 million a year, right? Or it might even be a month. I don't know. It's a lot. And just to give you context, Panda Express in 2021 did $3.7 billion in top line sales. And he owns 100% of it. No outside investors with his wife, Peggy. And they took home 27% net margins on brick and mortar food.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Character traits... If you think about this, you're like, I want to become patient. Patient is just a general term for lots of little skills. And so if you want to become more patient, you want to do things that patient people do. And that means that if I can train someone to become more patient, then patience is a skill.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
All right, so let's do the math. That's $935 million in income. Like that was his distributions from owning this thing. Now, if you're like, wait, but did he pay taxes on it? Sure didn't. Why? Because he owns all the land in the dirt for most of the locations that he had that are freestanding. So he depreciated all of that against his income. So he took all of that tax free.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
So point being, he did this and you're like, well, how did he do it? He's been making chicken and orange chicken and Kung Pao chicken for 45 years. So even though he might not have been in the highest leverage vehicle, he was able to stick with that vehicle for 45 years. And being able to stick with something for 45 years makes it really hard to suck.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And when you do that, you start unlocking multipliers on the leverage you have rather than thinking, I need more leverage in terms of more types of leverage. Maybe you just need more of the one that you've been using since you started with. Remember I gave the little phone call example of like two people doing the same thing. One person has more leverage.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Well, each of these things are big buckets with many smaller skills underneath of it. So collaboration is I have to know how to recruit talent. I have to know how to recognize talent. I have to know how to onboard. I have to know how to train. I have to know how to manage. I have to know how to grow talent.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And I have to know how to run meetings and I have to know how to have one-on-ones and I have to like, you know what I'm saying here? Like all of those micro skills chunk up to collaboration for capital. It's like, you have to be good at math. Being bad at math is probably not like it'd be tough to raise capital if you really can't do math. Right.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
It's like, okay, well that's a skill you need to know. Well, what else do you need to know? It's like, well, you need to be able to reach out to people and get rejected. Why? Because when you try and raise capital, you get rejected a lot more times than you get checks. Right.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
From there, it's like you also probably have to have an understanding of legal because you have to learn how to set up a fund structure. You also have to know how to negotiate because every single person who writes you a check is going to want different terms. You then have to structure it in a way and negotiate so that you can get mutually beneficial terms for both parties.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
So these are all other skills that go into raising capital. Right. Making content. It's like you have to understand the different platforms. You have to understand how to tell stories. You have to understand how to have. I mean, and even understanding here is just like you might even have to just do the work to have credibility to make the content about whatever you're making it on.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And you know what? I'm going to side quest this real quick. A lot of people make content right now and they're trying to hit it big. But what they do is like, in my opinion, you've got entertainers and you've got educators, right? The thing is, is that a lot of people who haven't done shit are trying to educate on things they haven't done. And so they have no credibility.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so the thing is, is that like the reason Mr. Beast was able to get so big is that when he was 15 years old, he wasn't teaching people about business. He was being funny and being cool. People are like, oh, I want to be like him. And so then they say, oh, I'm going to educate people on house flipping. but they're 22 years old and they haven't flipped that many houses.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so as a total side quest on this, what's interesting about this is that you've probably heard people say soft skills and like hard skills. In my opinion, hard skills are just skills that are easy to measure. Soft skills are just hard to measure, but they're both 100% skills that you can train and improve.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so they have no credibility in their content. And so in my opinion, when you're doing this content thing, if you're gonna do it, then make sure that you have the backing of experience and proof, because then I promise you, like when you get shit on from the public, cause you will,
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
because they don't know who you are, and most people are lying, you'll be able to know that what you're saying is true because you lived it. And so then you won't second guess yourself. The people who like tank and self implode because they're like, they can't handle the hate is because on some level they believe it.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
So if you want to be an educator, then I think that the middle ground, the pre-education stage is the documentation stage where you just say, this is what I'm doing now. Check it out. Like right now, I can't educate really on nine figures. Not really. Excuse me. I can't educate on nine figures a month. Haven't been there. I know what eight figures a month is.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Don't know how to get to nine figures a month. I have my theory, which is that I just have to add time to this equation. The math spells that out. But I just got to wait. Once I get there, then I can talk about how to build a billion dollar portfolio. And you can imagine how my content might change, right?
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so if you're making six figures a year and trying to talk about how to make seven and you've never made seven, then you're full of shit. And you rightfully should get the hate that you do. Right? And so these are skills that you have to learn how to acquire to make content. And to make code, you have to learn how to go code. And this is how little I know about coding. This is it.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
So I would even give you examples of micro skills, but like you have to learn HTML and JavaScript and Ruby and Python. That's about it. That's all I know. And data architecture. And yep, that's it. That's all I got. And so you have to learn these smaller skills to then say, I'm very excellent at code so that I can then have more leverage on the things that I do.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
But it's really a podcast about leverage, which is about the skills, beliefs and traits required to get more for what you put in so that you can move faster towards your goals. And I think it's one of the better things I put out. So enjoy. One in every 250 businesses does over $10 million a year in sales. And that means that 99% of entrepreneurs never hit it.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And then you can walk yourself up this income ladder with more leverage, right? And again, leverage is about speed. Any of these vehicles that I had done, if I had done it for 45 years like Mr. Panda, you could get there. because my N on input is so high.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
If I spend 45 years doing something, I might not have the strongest arm, but I've done it 45 times more, so I still get more out than the guy that's over here that does it two times.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
this is where strategy comes into play is making sure that you're picking the right vehicle chris for example made less money in the first nine months scaling enchanted fairies than he did before but at month 10 he matched it at month 24 it was it was like so small in comparison that didn't even matter but i can tell you this
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
really easy to say this really hard to do that for nine months, eat shit and feel like you're losing and always knowing that you could always go back. And that's the hard part. Go back to what you were doing before that was comfortable and made you X versus staying the path. And I can tell you, it was, I mean, it's hard for me.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so if we say, man, I wish that guy had better people skills, what we mean is 100 micro skills that are like, I wish he would smile when someone walked in the room. Can I train someone to do that? Absolutely. If I said, hey, I wish you would greet someone by their first name immediately every time they walk in the door, right? Boom, that's trainable. I wish someone wouldn't interrupt.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so like, these are things that you have to like take in, but I do believe genuinely your 10 of acquisition.com, I think is bigger than your 15 of gym launch to make the apples to apples comparison. Because the thing is, is that you actually never get an apples to apples comparison because you can't go back in time.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so you have to look at what your 10 of one business is compared to your three of another. And so if you're at your sixth year, Maybe you should just keep riding it out because whatever you started with is the thing that you have the longest lever on number of times that you got reps in. And people want to change industries. And I'll give you a little tidbit from Y Combinator.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
One is they don't take solo founders as a side note. Now, mind you, they're only interested in billion-dollar companies. So if that's not you, then you could totally be a single founder. But it's just harder to be successful with one person's skills versus three. The second interesting thing that they have, they have many things they select for, but one of them is industry experience.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so if someone says, hey, I want to get into this industry, if you don't have any experience in that industry, and then second to that is personal experience, like you've suffered from whatever problem you're trying to solve, then they're not interested. And so you might have six years of experience in the mortgage business. I wouldn't recommend getting into weight loss.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
I would say maybe you take a half pivot so you're in the same industry because it's so hard to make up those six years. This hopefully gives you a more nuanced view to making the right picks to making the most money. By the way, if you guys like the whiteboard of me drawing with markers, this is a throwback to what I used to do. I finally got another board because I love these things.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
But if you like this style, let me know. I love this style, but I just try and do the things that the data suggests that you like the most. I'll do what you guys want so that I can hopefully transfer the skills that I have to you faster. I said earlier that the unknown unknowns are the most expensive thing in business, right? Because you don't know what you don't know.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so I want to give you a quantifiable example. I remember the first time I heard this, it changed my life. And so it was actually a whiteboard just like this. So you get to like, I'm getting goosebumps. You'll have the same experience I did. So a guy was on stage and gave this whole presentation about learning skills and about how you have to invest in yourself to get better, right?
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And he called somebody in the audience and he said, ma'am, And as he's saying this, he's doing what I'm doing. He says, ma'am, how much money do you make right now per year? She stood up and she said $50,000 a year. He was like, okay. So what would be the main reason that you wouldn't want to invest today? So he was closing. This was actually a close.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
But as a side note, I think the reason I like sales so much is because many of the obstacle overcomes that you learn to overcome are actually self-bullshit. And so in a way, learning how to sell other people, for me, was learning how to sell myself.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Because I had so much head trash of like why I couldn't do things or why I shouldn't start now or why I had to think about or why I needed permission from someone else or why the universe was stacked against me to be successful. Like these are all things that I had to learn the arguments against to convince myself to do stuff.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so he asked the lady, he says, okay, so what would make you not want to invest in this? And she says, well, I don't have the money. And he said, okay. Well, you probably don't have the money because you've been paying a really expensive bill every single year. And she's like, what do you mean?
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
It's like, OK, well, we can just give someone a cookie every time they don't interrupt someone and let someone finish their statement. And then we train them. And so all of these soft skills are just soft because they're hard to measure. Doesn't mean that they're not skills or they're not important.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
He's like, well, right now you've been paying $950,000 a year, not knowing how to make a million dollars. He said, this is the cost of your ignorance. Hey guys, love that you're listening to the podcast. If you ever want to have the video version of this, which usually has more effects, more visuals, more graphs, you know, drawn out stuff.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Sometimes it can help hit the brain centers in different ways. You can check on my YouTube channel. It's absolutely free. Go check that out if that's what you are into. And if not, keep enjoying the show. This is the debt that you carry for the rest of your life until you learn how to make a million dollars.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so the reason I'm so heavy on learning skills and becoming educated is that right now I'm paying down ignorance debt. I'm paying down $950 million a year not knowing how to make a billion. It's the debt I'm paying. We all pay ignorance debt. And so the idea is how quickly can I pay this down so that I can have more cash flow to continue to pay this down faster?
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Now, strategy, like I said earlier, is about how you allocate limited resources against unlimited options. That's the fancy word of just saying prioritizing, all right? And so right now, you have limited resources. You have time and you have money. Now, you might have more time than money, but either way, you have some limit on what you have.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so for you to move faster, you have to identify, prioritize priorities. the thing that you're going to allocate your time and money towards, right? And you want the thing that gets you the most for it. Remember the input output that we had earlier, the leverage? So you want the thing that gives you the most leverage.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Now, one of the tough parts about reality is that the things that you have access to when you have fewer resources are less than the things that you have access to when you have more resources. Like Mr. Panda can go buy a building for a billion dollars and flip it for $2 billion in a year or two and make a billion dollars because he has more resources than you do. And you can't do that, right?
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And oftentimes, most of us know that like within an organization, like the way that you gain influence is the soft skills that are hard to measure, but incredibly important. So if we're talking about how do we make the highest leverage entrepreneur, we want somebody who has lots and lots of skills. And really, it's about beliefs that don't limit them.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Not right now. But you do have things that could get you there, which is why Charlie Munger talks about how do whatever you can do, beg, borrow, steal, eat ramen, walk with your lunch pail both directions, do whatever you have to do to make your first 100,000. It's because he understands, and mind you, him saying 100,000 is probably like a million dollars today.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Because he knows that once you get that, you can actually get a little bit more leverage in terms you get way more for what you put in because you can't only put your time in because it's so limited in terms of how much you can do. All right? So... This is why I talk about investing in the S&P 500 more than the S&P 500.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
So if you don't know this, it's standard and poor 500 companies on the stock exchange. It's probably like the gold standard index that we track how the US economy is doing. It's really just the stock market in general is doing. All right. And so if you dollar cost average in the S&P 500, you get 9% to 10% a year for life, or at least that's what it's done historically. All right.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
So the question is, rather than investing in this, we just have to say, can we do anything that gets us more than 10% back? Great. Now we can quantify this. And so if I have, let's say, $1,000, right? And here's the magic of this, is that when you invest $1,000 into the S&P, you have nothing else that you add to that thousand. Like you can't juice the thousand.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
You're buying at the same valuation that every other investor buys in it. And so I'll tell you one of the magic, so I'm gonna open up the curtain here for a second. One of the magic of what we do at acquisitions.com is that we pair capital with know-how. And so we can buy a company
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
At a decent valuation and have a big margin of safety because of our skill set So we know that we can triple or 10x the business when we invest in it So we don't have to pick amazingly like warren buffett's a better picker always will be than I am right at picking businesses But warren buffett doesn't work in the business, right? So that's the advantage.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
That's my advantage over warren buffett right now mind you he has way more advantages over me right made 90 billion on his apple trade, but But this is the game that I'm supposed to play right now because here's the leverage that I have on him. I have 60 more years of life than he does. Right? He's 93. I'm 33. So I have a lot more of these left on my move set. Okay? Now, we have our $1,000.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
We get 10%, meaning at the end of the year, we're at $1,100. Dollars, roughly. Okay. Or let's say you buy a sales training course. They teach you how to sell and you get implementation from that where they review some of your calls so that you can improve. And all of a sudden you take your income from $40,000 a year to $220,000 a year. Okay. Well, what does that mean?
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
That means that that thousand, think about this return. All right. In scenario one, you have $1,100. In scenario two, and here's the crazy part, you have an extra 180,000, all right? So compare this to that. But here's the crazy part. This is every year. Because once you have the skill, you only get better from there.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
If someone had no limits in terms of what they believe they could achieve, then the only thing that would limit them was their skills. But most of the times, The beliefs that we have are things that just decrease our potential. And it's not really our fault because most of the people that were around us when we grew up, just by statistics, were poorer than you might want to be.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so one of the things my dad used to tell me that when I was growing up was that he was always really big on education. Cause he came here a thousand dollars, didn't speak the language and he learned English. Like that was a skill he didn't have. Like we'd take so many skills for granted. Like the man didn't, he couldn't even speak the language of the country, right? In a thousand bucks.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And he was able to take his medical school education and apply it here in the US because he fled during the revolution in Iran. And he said, the one thing that no government can take from you and no wife can steal from you in a divorce and you can't get sued out of is your education.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
can't take it from you and he had uh relatives who were actually really well off who actually owned the lottery in iran so it was a private company so they made a lot of money but they were like second third generation and they hadn't learned the skills and so when they fled during the revolution they could only take what they could carry because all of their assets got seized by the government and they never were able to go back to what they had because they didn't have the skills
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Because the government could take their assets, but they didn't have the education, right? And the guys who were businessmen from Iran straight to LA became businessmen in LA and crushed it there too because they understood the game, right? And so this is why, like, if you think about it from actually an investment perspective, like, education can't go down. It can't be taxed.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
It can't be taken from you. It only gets better over time, right? And it compounds unto itself. Because when you learn the next skill, so let's say this is the lift we got from sales, then you learn lead gen. And then all of a sudden this, because then you 5x the demand on your sales skills, and you just paid down your ignorance debt with two investments.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so is that worth it more than putting the money in the S&P? In my opinion, every fucking time. Is going from 40 to 220 realistic? If you're a killer and you're part of Mosey Nation, abso-fucking-lutely. If you do it the way we tell you to do it, which is you look at the top guy on whatever company, whatever team, and you do twice what they do. Because you know why?
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Because they're going to be better than you. And so you've got to make it up in inputs. It's like, but Alex, does that mean I'm going to have to work harder and longer hours? You bet. Welcome to the world. Because think about it. If you work the same hours as that guy, that guy always has the advantage because he's already better than you.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so if he puts a month in and you put a month in, he's going to get further ahead than you because he already has skills through which to judge his own performance and improve. And so you have to put way more inputs in to get the same output than that guy.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so that's why Kobe spent five summers doing two-a-days when everyone else was doing one-a-day because he knew he had to make up for the guys who were way better than him naturally.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so I would like to think of everybody in Moza Nation as mini Black Mambas from that perspective, is that we're willing to put in twice the work, three times the work, four times the work, despite the natural talent deficiencies, to make up for it. Because on a five-year or a 10-year or a 25-year timeline, you become unbeatable. Do I think you can get to 220? Hell yeah.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
But if you were to just look at average, which I don't want you to be, but if you were to look at average, you might make $100 a year or $120 a year. It would still triple what you were making before. And if you don't adjust your living from what you were making at $40, Mr. Smart Cookie, then now you have even at $120, this was $120.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so they told you how they see the world. If there's ever something that's going to be on my tombstone, it's this quote, which is... We question all of our beliefs, except for those that we truly believe and those we never think to question. And so like the things that you actually believe, they're so invisible to you because that's just your lens through which you see the world.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
you have 80K a year extra that you can then invest in more skills to pay down your ignorance debt. A key point here is I said that there was an advantage that I have with Warren Buffett, which is I got money and time slash effort, right? If you go spend the money, but you don't put this in, then you lose your advantage.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so it's not just about spending the money because here's an interesting factoid for you. When you sell someone, you understand that the moment someone buys, they actually feel like they've solved the problem emotionally. And so you can sell that because you learn how to sell.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
But the reality is that that just gives them the license to begin solving the problem of whatever it is, especially if it's a skill or it's education-based. Here's my ask for you guys. One of the beliefs that I think has served me well is that whenever I joined a group or I joined a community, free or paid or otherwise, I always wanted to become number one.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And the way that I thought about that was, and I always wanted to join groups of people who are all ahead of me. Like when I joined that internet group that I was talking about earlier, everybody there was making more money than me. How do I get status in this group? And the way that I did that was like, be good. You know what I mean? Make more money.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so what I did was I talked to every single person in the group and I had only my small skill set and I gave it to them for free. And I want to fucking hit on this because I get DMs every day about this. Guy this morning even said it. He said, Alex, I want to make you 100 videos for free if you're willing to employ me.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
The amount of times that I get this request, whether it's I want to make you this website in exchange for a job. The point of Mosey Nation, the point of everything that I do at acquisition.com that I hope to live by example is that you give first without asking. you're doing it wrong, right?
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
You think, because like, and I was like, hey, in the spirit of Moses, it's like, you're not doing it in the spirit of Moses, you're doing the spirit of John, all right? You're doing the spirit of you. The way that you do it is that you give, and then you give, and then you give, and then you give, and you keep on giving until that person is like, dude, what can I do for you?
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And then you make your ask. Like, whenever I get frustrated, and I think, like, why do I even bother doing this? Like, I think about giving up. I just think, this is where most people stop, and this is why they don't win. it transitions into one of my most used sayings to myself. I don't say it a lot out loud, but to myself, it's like, I won't do my best. I'll do what's required.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so right now, what is required for you to win or get a job or get the skill might be better than your best. And so it just means that your best just needs to get better. All right. So you might be riled up and be like, I'm going to go do this and take over the world and make all the money. So, but you're like, fuck, I got to pay bills. So how do we take this and then put it into reality?
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Number one is like, and this is how you transfer any skills in general, by the way, a little sneak peek from the book that's coming up. All right. Coming soon. Is that you have The person who's teaching you documents the skill. That's step one. Step two is that they do it in front of you. So they demonstrate it. And the third piece is duplicate. You do it in front of them.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Whereas when you're like, oh, I want to debate this point. It's like you don't really believe that. You just have an opinion on it or you have some assumptions that you're willing to back. Right. But the true beliefs of like, well, no one would be willing to pay for something like that. Or like, that doesn't exist. I didn't know that was possible.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
So document, demonstrate, duplicate. Now, I can do this and I can do this. But you have to do this. I can't duplicate it for you. You have to take the stuff and actually execute on it. And so if you're like, okay, Alex... what does that actually look like in my life? I'm actually a big, big proponent of having jobs.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And I think that's probably taboo nowadays, but yeah, why not get paid to learn shit? And if you're like, well, the place that I work at doesn't teach me anything, then you should absolutely go apply for other jobs, like change your conditions. All right. So I'm all about get paid to to learn.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And as an aside, the reason that keeping your living expenses low is so important is because if let's say you make a hundred thousand dollars a year now, and you're like, Alex, I've got a pretty good white collar job right now, but I really want to get into this. Then it might mean that you have to go from a hundred thousand dollars a year to $30,000 a year to learn the skill.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Because right now you go from earning to learning. All right. And like, I want to tell you, like I walked this walk. So I was a management consultant at a boutique strategy firm In DC, I had a top secret clearance. I was 20. I did shit that people could brag about. And then I went and became a personal trainer at a gym for $14 an hour. Think about that.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
I went from a high-rise condo that I owned to renting someone's bedroom for $400 a month in their house. And I went from having Hugo Boss suits to wearing Beast Mode Engage t-shirts and showing up at 4 a.m. ready to teach Nancy how to lose the last five. You know what I mean? And so I had to swallow my pride on this because I wanted to I wanted to get learned. All right?
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so you have to be willing to relinquish getting paid for getting learned. All right? Once you get yourself in an environment where you actually have a business that is investing in you, and it doesn't mean that they actually have to write checks, to be clear. Now, if you have a company that's willing to do that, awesome. Level one is,
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
You communicate to them, this is the skill that I would like to learn upon working for you. And so you're like, these are the skills that I bring to the table. This is what I would like to learn. Is this a place that I can do that? Any business owner loves clear communication. And it's like, if you want to learn that, and if they're a good business owner, they'll be like, let me help you support.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
You don't even question those things because they weren't even in your mind to begin with. It's the unknown unknowns that are the things that limit us. The question is, how do we up-level someone's beliefs? So let me give you a quick example here. So there was an entrepreneur that I know who had a fitness app. He was a super high-level CrossFit Games competitor.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Now, if they're like, my job isn't to teach you, wrong place. And I'm going to be real. A lot of business owners are like that. And so if you're like, well, man, it's not fair. It's like, well, I mean, getting paid to learn is a pretty good deal. It's just that that's not always what happens. And so I would say switch your conditions.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
But let's say you finally get into a business that teaches you stuff and you feel like you're getting better, you're moving faster. I would say once you feel like, and this is a big caveat, this is like fucking caveat, Once you have nothing left to learn from the current position, you communicate to them that you feel like your learning has slowed down.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And then they may give you another opportunity to learn more. And if they feel like they can't actually teach you internally, they might say, I'll pay $10,000 a year for you to go through these programs or workshops or seminars or whatever, or certifications, so you can continue to level up your skill. A good employer will do that.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And if you look at big corporate America, as much as people shit on them, they usually have pretty strong corporate reinvestment programs. Why? Because they want their human capital to appreciate. And so if you can pay $10,000, because they do the same SME 500, except the SNU 500, right? They invest in you $10,000 and they get a three times more valuable person.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Like one of the biggest arbitrage opportunities, side note, this is me talking to business owners, that's out there in the marketplace is that you could pay 25% more for an A player versus a B player and you get five times the output. So like you think about value arbitrage, like instead of paying 100 a year if that's the market, pay 125 and get five times the output.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Why would you never make that trade? Once you've done this, here are the three steps that you can transition from getting learned back to getting paid. All right, number one is that you live below your means. The less risk you take in your personal life, the more risk you take in your business life. Let's say that I own a business that does $10 million a year in profit.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
If my living expenses are $800,000 a month, then I'm not leaving much for the business to weather a storm. And let's say that it's all fixed. It's like mortgages and cars and jets and all the other stuff that I do. Well, if there's a hiccup, the business might go under. But if I live on $400,000 a year, then I have $9.6 million every year that I can go on the offensive and I can take huge swings.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
I can be like, I want to buy this company even though it's risky, but it might 10X, right? And that offense is what you have to do as an entrepreneur because you have to take calculated risk, but you don't want to introduce multiple risk if you can control it. And this is controllable risk, okay? So you live below your means so you can stack cash, okay? Level two is that you take this cash and
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And I want to be clear, I'm actually kind of against side hustles as a long-term thing. I'm pro them as a way to transition. Again, this is how I play the game. I'm a maximizer. I want to win big. And so I think if you follow my stuff that you probably want to win big too.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so if you're doing a side hustle, it's because you want it to eventually become your main hustle, not because you're just looking for side income. I'm just not that guy. There's other guys who will talk about that. It's just not me. All right. And so you stack the cash, you can start your side hustle. And you keep doing this until... you have matched your income.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
So you start your side hustle and you keep doing it until you match your current income. And if you're like, wait a second, for me to match my current income, I'm going to have to work 40 hours a week in my job and then work another 40 hours a week at this thing. Yep. And the thing is, and this is just one man's caveat. There's going to be different takes on this.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And he started this app, and he didn't want to tell anybody about it because he never placed top three. He placed fourth place in multiple competitions, which is insane. But he had a belief that if he wasn't the winner, he didn't deserve to have an app. Like, think about how crazy it is. But he didn't question that. That was just what he believed reality to be. He was like, well, of course.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
If you're not making more money on 40 hours a week of the new thing, you're still not doing it right. Remember, I went from employed to self-employed. You have a level of leverage. So those 40 hours, you have more leverage than the 40 hours that you're working for someone else. And if you're not making more there...
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
then you're like, you still need to keep doing it until you've matched at least, at least matched your income. And then once you've matched the income, I would say sustain it for six months. Two reasons. One is because now you're going to be making double time. You're going to be making money on your job. You're going to be making money.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
So you're going to be doubling your actual income, which means you might be like three or four X in your savings. And the second is so that you don't just quit on the one good month you had because you sent out three clients. Okay? We want to make sure that it's not seasonal. We want to make sure that we get... Like, it's not just normal volatility because really small businesses, super volatile.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Right? If you're selling two customers a month, if all of a sudden you sell zero, your income goes to zero. Right? Unless you retain the people, et cetera, et cetera. And then... Cut bait. Cut the cord. And go out on your own. Spread those wings. Like a beautiful butterfly. And a lot of people look at this thing, the side hustle, and they're like, but this isn't Facebook. Like, this isn't... Sure.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
It's not. But I think a lot of people put undue pressure on themselves by expecting their next thing to be a trillion dollar company. And... The likelihood that it happens, super, super, super, super, super, super small. But again, it's like, what are your goals?
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
If your goals are just like get out of poverty, get above the middle class, get above, get into the upper class, like a lot of businesses can get you there. If you want to be a trillionaire, there's only a few. And also what we don't see is the zillions of not Zuckerbergs who put everything into their social media thing and it didn't work.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
I'm a big fan of service businesses because it costs you nothing to start. It's just your time. You have no overhead in the beginning. Those ones are harder to scale, but you'll usually learn a lot of other skills during that process. Like I learned more from running a gym that allowed me to do gym launch. Like if I hadn't run the gyms, I don't think I would have been able to do gym launch.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so think of whatever this is as the stepping stone. And again, we're still trying to get learned. Like that doesn't change. We're just going to also get paid as we do it. And that's one of the beautiful things about entrepreneurship is that like, once you get past a certain level, you get to get paid to learn more.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And I think that's like, for me, why I love the game so much is that you just keep getting better and get paid to get better. Don't judge yourself on the side hustle. And especially don't listen to other people's judgment on your side hustle.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
You know, many people like I was like Vanderbilt, Magna Cum Laude, you know, white collar consultant job, like had a above Harvard, you know, GMAT score say like, and you want to become a trainer. Like the amount of people that like I used to compete against frenemies, whatever you want to call it. They were like, oh, great. He's he's out of the race. You know what I mean?
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Like he's he's doing stuff to make himself happy. Right. You know, I was younger and I probably had more fucked up shit in my head then than I do now. But like I used to just think about them all the time when I'd be sleeping on the floor. I'd be selling where I was like, they're not willing to do this. They're not willing to do this. They're not willing to do this. And then you come from behind.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Right. And you do Kobe and you work twice a day. And while they're working their job and they have their three series BMW and they're, you know, going out to dinner and they have the football on the weekends and their fantasy league and you have none of that. Just know that you're doing your two days during the summer or your three days during the summer.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Of course I wouldn't want it. And so he built this app for himself and just the members of his gym. But the app was so good that people started sharing it. And... Finally, a client of his was a marketer and said, you need to start marketing this. You need to start posting about it. And he wouldn't post. And finally, she convinced him to just make one post. And he doubled his revenue.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
But because your rate of input is so much higher than theirs is, you will catch up and you will surpass them. And that's if you want to compare. And the main reason I don't think you should judge yourself on whatever you do is because in my opinion, like I'm married to the game, right? More than anything. Like I'm going to keep playing the game because I love the game.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so if you want to play the game a long time, then it's the game itself that you want to stick with rather than the vehicle you're in, right? Most entrepreneurs start more than one business over their career. You
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
are above the business the problem is that people identify so closely like their identity is their business but you have to just think about it and this is me just trying to give you like a you know big brother what do you want to call it piece of advice but like the further you can separate your identity and your self-worth from the worth of the business the better off you'll be as an entrepreneur because you also start to see as an asset that can be sold can create value in the asset you can make hard decisions whereas if it's you you're like what will people think it's like I made a decision about a business that I own
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
That's okay. Simon Sinek has a great piece on this, but when I learned the difference between infinite and finite games, it really changed my perspective. The infinite frame will always beat the finite frame. And there are finite games within every infinite game. And so you have quarters, you have years, you have goals. These are all finite games that we play in an infinite game.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so when the US invaded Vietnam, we lost. Why did we lose? We lost a war of attrition, which was that they were willing to play the game longer than we were. All right, and so the difference between a finite, infinite game is that a finite game has known players, agreed upon rules, and an outcome, and an end. That's why it's finite.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
An infinite game has known and unknown players, has no agreed upon rules, and the point of the game is to keep the game going. And so the problem that most entrepreneurs have is they approach an infinite game with a finite frame. They are the United States trying to invade Vietnam, and you will lose every time. because there will be players who are playing with an infinite frame.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so let me give you two more examples of this. If you want to get healthy, right? You don't win at health. There's no end goal to being healthy. You're not like, okay, I'm done working out. I did it. I've achieved it, right? Of course not, right? Same thing with marriage, right? Like you're not, the point isn't to get married. The point is to stay married.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
The point is to stay in the game, to keep the game going. Most of the games worth playing are infinite games, not finite games, which means the point is to just play. And so business, you don't win. The point isn't to finish. Because even if you were trying to say finish first, it's like, by what metric? On what time period? Has there anyone who's been the richest man in the world for all time?
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
No, of course not. which means that anybody who would try to do that is coming from a finite frame. And so, but there have been people who've won the game of business in my perspective because they played their whole lives. If you want to be a stronger player and be somebody who can succeed as an entrepreneur, then the day you start playing is the day you win.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And the day you stop playing is the day you lose. And so the goal is to find games that you don't want to quit. That's where learning what you are into from executing is the mega win here. So for me, I found out that I actually liked business more than I liked fitness, which is crazy because I loved fitness, getting into fitness.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
He'd gone from $20,000 a month to $100,000 a month with his app simply because he changed his beliefs. And so fundamentally, he had all the skills. He was already a really good CrossFit Games competitor. He already had the product that was really good. And he already had the skills to be able to market it. He was just choosing not to.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
But like the day I started my gym was the day my love for business outpaced my love for fitness. I was like, this is amazing. This is so cool. And so you have to find whatever that thing is. And I'm going to be clear, business sucks all the time. But it's just that if you're willing to play, and there's plenty of times marriage sucks. There's plenty of times you don't want to work out.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
But it doesn't mean that I'm going to stop working out. It doesn't mean I'm going to stop being married. It doesn't mean I'm going to stop being in business. And so I think if you can unlock that frame that you want to play until the day you die, even if the vehicle changes, even the players that you're playing with on the court change, then you'll be the guy who stays on the court the longest.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
You might think, oh, I don't like video editing or, oh, I don't like, you know, dry cleaning or I don't like mowing lawns. I don't like washing cars or whatever it is. Right. But the higher up you get in business, the more all businesses are the same. Right. You're going to have marketing. You're going to have sales. You're going to have product.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
You're going to have customer success or customer support. You're going to have IT. You're going to finance. You're going to have legal. Like all these departments are going to these functions will more or less exist in every business. And so my advice is, a lot of people quit industries when they really actually just quit a function of a job. And so they're like, oh, entertainment wasn't for me.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
It's like, do you know how many jobs there are in entertainment? You might love sales in entertainment. And you were in... And the actual like product side, right, or the production side or the support side. And so, again, remember I said earlier that like if you stay in the same game longer, you'll be likely to get more reps in and you'll do better.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Well, then maybe stay in the same industry, but switch roles. Now, in a micro business like your side hustle, you'll get to taste all the roles and you'll find out the things that you like more. and that's where you can shift some of your attention there, and then you backfill people who are, because you have a little bit of context, good enough to do what you do better.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
You document, you demonstrate, you duplicate. They duplicate, and then they run with it, right? And so... Today, for example, what I do looks very different than what I did 10 years ago. What I did 10 years ago was the highest value scale I had then, which was just closing. That's all I did. I had consults all day because I got trainers to train for me.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
I knew how to run the ads and that didn't take me that long. It took me two, three hours a week to run the ads, make them and manage them. The rest of my time, was sitting in appointments and closing. And I had somebody else make the phone calls and texts for me. So I would just sit there and close because that was the highest value thing I could do at the time.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
But the thing is, is that your baseline skill will continue to level up. If I lost everything then, like if I lost everything, I knew that I would sell cars during the day and I would strip at night. Right. Once I had that skill before I had the skill of sales, I would drive Uber during the day and strip at night because I had the skill been in shape. Right.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so your baseline continues to grow, like being the best car salesman, you make 400, 500, maybe even a million a year at some of the best dealerships. Like if you're an absolute savage and I would consider myself an absolute savage if I was going to do that. Right. If I lost it all, I'd be there 12 hours a day for sure.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Unchaining an entrepreneur is figuring out the reasons they give for why they can't do something. Those are known limits, right? Well, I can't do it because of X. That's the things that you know because you can even explain it. I can't do it because I'm not number one. I can't do it because I'm not in good enough shape. I can't do it because the app doesn't load well enough.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And then once I learned how to market, marketing and sales together, my new minimum was a million bucks a year because I knew that I could sit in front of any brick and mortar business and I could get them leads and I could close them. Once you have that, you can make a million, two million, three million. I can't go below that because I have skills that are above that, right?
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
You keep learning these skills as you keep doing your business and you might, you'll start ping-ponging in different directions until you hone in on the things that you're best at. And so I think if you can find that game, make it the meta skill of continuing to learn then you won't stop. And then at that point, it means you win by default. So we had talked about a lot of stuff, right?
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
But the question is like, what's the next thing you're going to do? And so I'm just going to give you advice that I followed, which is like, what was the first thing I did to get myself out of this million dollar or below million dollar category to the above million dollar category, and then to eventually the 0.4%, $10 million category. And it was actually just learning how to sell.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Because if you can't sell anything, you can't make money. It's the first part of the equation. Number of sales times. If you have no sales, it doesn't matter how good the lifetime value is, if no one buys it, zero.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Every business that I've started since I was 25 has crossed 10 million. B2B services with Gym Launch, B2C consumer products with Prestige Labs, our supplement company, Allen, our B2B software, and Acquisition.com, which is an investment firm for all of the money that we made during those businesses to invest in other ones.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
I can't do it because it's only on one platform. I can't do it because insert whatever, right? Now, the dangerous ones are the unknown unknowns, all right? When I started my chain of gyms was that I wanted to be America's next gym. So I bought the trademark United Fitness. I was really proud of it. I had six locations. I joined this group of internet entrepreneurs.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Now, mind you, the reason I think this is funny is because I was sold by the sales guy that there was other gym owners in the room and they were all like doing well and doing stuff on the internet too. Got in the room. Not only were there no gym owners, there weren't even any brick and mortar business owners in the room. And so I was like, wow, this is a shock.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so everybody's going up there explaining their ads and their funnels and their upsell process and all this stuff. And I get up there and I'm like, I own six gyms. And I was like, but these are the ads I run to get members into my gyms.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
The thing is, I gave this whole breakdown of everything I did and how I opened every location at full capacity on the first day without taking cash out of the pocket, all this stuff. And I remember the guy who was running the whole group said, And I really looked up to this guy at that time because he was the first person who was way more successful than me that I actually had access to.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so I think at that point, he was doing a million dollars a month. And I remember thinking like, whoa. And so I go through this whole presentation. I'm talking as fast as I can, explaining all the stuff that I do. And he stops and he's like, Alex, I don't think you should be in the gym business.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And I remember hearing that it was like time slowed down because I felt like he like punched me in the gut because this was like my whole plan, my whole dream. This is what I was going towards. But I like paused and just like heard him out. He said, you have a level 10 skill set and a level two opportunity. I don't think you should be running gyms.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
I think you should be teaching people how to do what you just walked through. and i had a belief and i still do that if someone's further along in the game of business you always have things that you can learn from them and if i paid to be in this room if i don't take the advice it's the closest thing to me burning all the money that i paid to be here and so
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
When he told me that, to me, that was an unknown unknown. I didn't know that there was another opportunity vehicle outside of me just owning gyms. Like, I didn't know it was possible. So I hadn't thought, like, I didn't know how franchises worked. I didn't know how licensing worked. I didn't know how any of, I didn't know how to B2B national, any of that stuff worked.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Now, there were some skills that I would have to learn in order to enable it, but I couldn't even start on that skill path or see the deficiency of skills that I had because I didn't even think I could pursue it. And so these are the ones that, in my opinion, are the most powerful to overcome. It's the things that you didn't know were possible. I'll give you a different example.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
In Chain of Fairies, which is one of our portfolio companies, amazing business, super successful single location. And the founder had an agency when he approached me saying like, hey, I want to do what you did with Gym Launch, but with photography studios. And so we talked and we talked and we talked and his model was so good. I was like, I don't know, man.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
I think like one of the things that I didn't have with Gym Launch is that like I couldn't control delivery. With photography, you can control delivery. And so that means that we could actually centralize a lot of stuff. I was like, what if we just owned all of them with like a hybrid model?
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
We actually took the agency from what it was doing, which for most people watching this would be a very good business for you, to zero. to start this next thing. We had such good rapport that he's like, if you really think so, and we walked through the math, and he's like, I mean, this makes sense, but I'm going to kill something that makes a lot of money.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
I was like, yeah, but I think it's going to be for something that's going to make way more. And then for the next six months, we worked and tweaked the original model to get this new model off the ground. And 30 months later, that business is two and a half million a month with 30 plus locations because I said, let's just own it all. He didn't think that that was a model that was really available.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And then as soon as we made that switch, everything took off. Even in my own personal story, when I switched from having my gyms to doing a done for you fly around the country model, that took the same skills that I had as an entrepreneur and put them in a better vehicle.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And then even from doing the gym turnaround business for two years, I accidentally fell into the licensing model because I didn't want to fly out. Somebody asked me if I could just show them all the stuff that I did so they could do it for themselves. And then at that point, he bought it. And it was all margin. And I was like, holy cow, this is insane.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
That's when everything took off like a rocket. And so I had my brick and mortar gyms. And then I scaled to a done for you turnaround business. And then I scaled to licensing. And each of those were higher leverage opportunities. And it was because I didn't know it was possible. And so once I learned that it was possible, that unlocked all of the potential value that my skills could have.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Because fundamentally, in every one of those examples, I knew how to do the same stuff. I knew how to market and sell for a local gym. I knew how to build them more profitably, create the workouts, the meal plans, all that kind of stuff that got people results. That's what I knew how to do. But at each level, when I went from gyms to turnarounds, the leverage increased from each of these things.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so the same skillset put into a new bucket or a new vehicle unlocked huge value. And that's why a lot of entrepreneurs don't get past a million or even get to 10 million is that they're in the wrong vehicle. So I talk about leverage a lot, and it's actually one of the core concepts in our logo.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
So we have a supply-demand curve, and then we have a fulcrum, which is the acquisition.com logo, and it's because it's core to everything we do. If you think about leverage, you've ever heard Archimedes, he said, give me a long enough lever and I can move the world. This is our lever, and we'll put our little hand here. That's my arm.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
It doesn't look that way on Instagram, but this is the vast majority of businesses, right? Now, 9% of businesses cross this million dollar threshold, right? And then only 0.4%, which is one in 250, right? do 10 million plus. It's so rare. And so the nice thing is that success does leave clues. I want to kind of separate this into two major categories.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
If we grab the lever here, we have the most leverage on something that is here. If we grab the lever here, we still have the most leverage on something here, but we have less leverage overall compared to how much we have on this side. And the main difference here is how much force goes up the other side. And so leverage is the difference between what you put in and what you get out. That's it.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
So let me give you an example in the real world. If you are really skilled at cold calling, skill itself is leverage. Because if somebody who doesn't have the skill makes 100 phone calls, that's their input. And somebody who does have the skill puts 100 calls down. And the guy who doesn't have the skill gets zero appointments set. And the guy who's amazing at it gets 10 appointments set.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
He has, well, let's just say the first guy had one for sake of math. He has 10 times the leverage on that skill compared to the newbie. Getting and acquiring skills gives you more leverage because it gets you more for what you put in. And so if you're more skilled entrepreneur, being a skilled entrepreneur is a big bucket for hundreds of smaller skills underneath of it.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Because it means that you know how to prioritize what to do next. And so one of my favorite quotes about leverage comes from Warren Buffett, Uncle Warren. He and one of his closest friends graduated Columbia Business School at the same time, same year. And he said that guy was smarter and harder working than him. Now, they then went their separate ways.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Warren ended up getting into investing with Ben Graham and his friend goes into the steel business. Because that was back in the day when like American steel was like a thing, which it really no longer is. What he learned from that experience is that you fast forward 30, 30, 40, 50 years. And he said his friend did okay.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And he said, mind you, this is a guy who was smarter and harder working than him. He said he did okay, he did pretty well, but not close to what Warren did. And he said his biggest lesson from that was it's not about how hard you row, it's about what boat you're in. And I love that because it really encompasses the concept of leverage, which is Warren got more out
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
for what he put in than his buddy in the steel business because the steel business had a lot of headwinds. A lot of things going against them. They had globalizations that started happening. You had other imported steel that was cheaper from China, blah, blah, blah. And so those forces, he had to roll harder against the wind than Warren did while riding one of the best
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
growth curves of the US economy overall. And so he got higher returns. And so over my career, I make more now than I did before because I've moved further back along this lever. So I have more leverage now on what I put in than what I did before. When I was selling one-on-one in person and I was doing 20 consults a day, I was working more hours probably than I do now.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
But I get so much more for what I put in. So I'm going to show you two triangles that show increasing amounts of leverage. All right. Now, one of these I've stolen ruthlessly from Naval Ravikant. All right. And so he talks about the four types of leverage. I've renamed them so they're C's and it's mostly just so I remember them more easily.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
But you've got collaboration, which just means other people working for you. All right. Then you've got
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Capital which means other people worked for you and gave you the fruit of their work so that you can invest it on their behalf So for example if I get people to give me a billion dollars Which I could do just raise the money and then I invest that money and I say I get 20% of the gain I didn't have to work all the time to make a billion dollars, but I still get 20% of it, right?
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
That's the idea of using leverage of other people's money. So capital so you've got collaboration and Capital, you've got code and content. If I'm a genius coder and I could build one piece of software, I can build it once and people, a million people can use that same piece of software. With content, Joe Rogan can make one podcast episode and millions of people can listen to it.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so he gets more for what he puts in, right? So if you think about each of these things, it's like you have the influence on someone else. I trade me selling for 40 hours a week to me managing a salesman for two hours who then sells for 40 hours a week. Or higher leverage. I spend a week or two weeks recruiting the best sales recruiter. And then I do that one time in my life for two weeks.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
One is the entrepreneur and the other is the opportunity vehicle they're pursuing. You'll notice I said leverage rather than opportunity vehicle, but fundamentally leverage is the difference between what you put in and what you get out. And so you want to have the best entrepreneur getting the most out of what they put in.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And then that sales recruiter works 40 hours a week to get new salespeople in every single week on my behalf. And then those salespeople on my behalf then sell every single day. And so I did two weeks of work for 100 salespeople over the lifetime of that one hire. More leverage. I get more for what I put in. Compare that to me taking 20 consults a day.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Higher leverage skill, but same concept done at scale. Capital, we went over. Code, content. Those are the four types of leverage. Now, this is where this gets interesting because once I learned this, I was able to put words to what I kind of knew intrinsically, and I can now explain it. So if you look at my career trajectory, and one of the key points here is that
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
you can actually just max out one of these things. So you don't need to have all four. Now, if you have all four, cool. But if you think about what leverage is in general, it's just you get more for what you put in. And so if you get 1,000x on any of these, it's still 1,000x. So somebody can just be an amazing private equity guy or amazing at raising money and become a billionaire.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
They don't need to do any of these other things. Somebody could be amazing at galvanizing people and creating movements, and they wouldn't need any of these other things. If someone's amazing at writing software, they don't need anyone else's capital, and the software does the collaboration on their behalf.
The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
And so all of these things, even though they're structured like this, you don't have to have all of them. If you do have all of them, well, you look at Facebook that is code about content. He raised other people's money, and he has people working for him. But let me show you how this changed for me. So in the beginning, I was an employee, right? And I made four figures a month.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
What's going on, everyone? Welcome back to the game. We talk about getting more customers, making more profits, and making more impact. I guess. I don't know. I think that's what we talk about. And so today is a special audio first edition, so I hope you guys enjoy it. I want to talk about a concept that I've been thinking a lot about. It's related to content.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
I, over this last nine months, have had people who I really like a lot who are in my life who said, you know what's interesting? I actually came to your stuff because I saw some short of you wearing a chef hat and making some meal, right? And I got that from both YouTube and on Shorts. And I thought that was so interesting.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
And other people were saying, hey, you know, I actually found you from this really broad podcast that you did with Lewis Howes or with Ed Milet. And, you know, I talk about business, but I talk about a lot of philosophical stuff because that's something that I'm interested in. And so people are like, you know, it actually really resonated with me.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
But they're business owners, but they're like your philosophy is what rang true to me. Like it wasn't sugarcoated. It wasn't fluffy. And, you know, you didn't seem like a complete asshole. Notice I didn't say, you know, nice guy. I said complete, not 100%, right? Or at least I try not to be. Anyways, point is, by me hearing this though, it has shifted my perspective yet again.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
I'm going to explain my current thesis for the quote, perfect thing to be managed. So I already give you the perfect algorithm for quantity and quality, which is maximum quantity, maximum quality is the goal, right? Now, what is the goal with content for topics? You want max wide and max narrow, so that's the obvious one.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
But here's the little special ticker, here's the special, the sauce, the flakes that we sprinkle on top, is that I believe that the content should reflect who you are. Hold on. It should reflect your thumbprint. Basically, it should be an accurate representation of the proportionality of your time or interests. And so for me, business is the vast majority of my life.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
Philosophy is a portion of my life. Fitness is a portion of my life. My relationship with my wife and partner, business partner from that perspective, wife otherwise, is a portion of my life. Now, if you don't want to be public about something, that's different.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
But if you want to be public and you want the perception to match reality, then you'd want those proportions to be as close as possible to one another. And so I think that if you just go narrow and wide on your topic, I think you'll build a super, super, super loyal following from that thing.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
But I think having the little sprinkles, the little elements, the occasional pure philosophy video, the occasional pure meals video does more benefit than it does harm. Now, if you get obsessed with that game and then get into the views game, then you lose, right? But it's that little bit.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
It's like in a brand when you have like, you know, primary color, secondary color, tertiary color, and then there's like accent color. It's the accent color.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
It's that little bit that just shows a little bit more depth, a little bit more texture to you, your brand, your personal brand, that also allows, in my opinion, because we live in a world of algorithms, allows the algorithm to go fishing outside of the normal pool and then drag people in who otherwise wouldn't be.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
Again, some of the people that I love the most in my life actually came from stuff that wasn't really business-centric. I would say that my adaptation here is probably to follow the Google algorithm for how they do strategic business planning. So they have the 70-20-10 rule, which I've talked about before, but basically 70% of activities go to the core business.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
You know, it's funny because like, I get so much, I get so much, pushback and sometimes hate publicly for like sharing the stuff that I do. And people were like, you're faking your numbers or like this guy's, you know, some guru. And I'm like, I just, I, I just share the stuff because this is what helped me out. And if it doesn't help you, then don't use it. You know?
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
So for me, so for them, it's obviously Google Ads. For me, it's business content that is both narrow and wide. To me, that right there is the core, that's the meat, that's the meat and potatoes of what I'm going to put out. 20% is probably going to be business as it applies to X thing. So it's still going to be business flavored, but it's adjacent. That's going to be the 20%.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
And then the 10% is moonshots. So one out of 10 videos should be something that's just like something I'm just really passionate about or something I'm really interested in. And so for me, it's like I'm probably going to do a video of my office gym sometime in the next month or so.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
And so you guys will be able to see the actual gym that I work out and that I've built that I could talk about at length. I just don't. And you'll probably get to see a different side of me because a lot of you forget that I come from the gym world. I actually am probably the ideal equipment collector because I am both bodybuilder and incredibly wealthy. I'm kidding.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
Well, not about the wealth, but kidding about stating it. And so I can buy the best stuff and have the knowledge of how to not just be some generic dude who has dollars and says, hey, just build me a sick gym. I can tell you why I have every single piece in there, what make and model it was, the other ones I was considering, why I like this one, and it'll be a really fun video.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
And so you'll basically be able to see depth of expertise in a different domain, and I think that'll be interesting for some people. For other people, you won't care, and that's fine. But the thing is there'll be people who are outside of my normal world who will see that and then be like, oh, I thought this guy was just some money guru and he's not so bad.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
And so I think that that 70-20-10 kind of split is the quote answer to the accordion of wide versus narrow in content.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
And so those are the two accordions that I consider on a regular basis, which is we're always going to make more quantity, and then we're going to trim it down and make it better, and then when we do better, we're going to say, can we do better and more, and then we're going to do more, and then we're going to say, hey man, if we could just do this better, we'd do even better, and we just accordion back and forth.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
And here, we're going to have wide and narrow, and sometimes we're going to have some broad content, but it's going to be less so, and then we're going to focus for the most part on the narrow stuff that is core. to our audience. And so for those of you who make content, I hope this provided some insight for you in terms of like answering the eternal questions of like, am I making enough content?
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
Is my content good enough? What topic should I be making it on? And I think the answer is there is no one answer. And it is also dynamic over time. You may find yourself leaning more towards some of this type of, you know, X type of content for a while.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
And I think the key to making this sustainable and I speak this firsthand here because I'm definitely somebody who it has to be something that I want to do. I won't do it. If you can't make content for 10 years, you shouldn't make content. And so solving for a decade is probably how I would reverse engineer my day.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
Real quick guys, I have a special, special gift for you for being loyal listeners of the podcast. Layla and I spent probably an entire quarter putting together our scaling roadmap. It's breaking scaling into 10 stages and across all eight functions of the business.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
So you've got marketing, you've got sales, you've got product, you've got customer success, you've got IT, you've got recruiting, you've got HR, you've got finance. And we show the problems that emerge at every level of scale and how to graduate to the next level. It's all free and you can get it personalized to you. So it's about 30-ish pages for each of the stages.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
Once you answer the questions, it will tell you exactly where you're at and what you need to do to grow. It's about 14 hours of stuff, but it's narrowed down so that you only have to watch the part that's relevant to you, which will probably be about 90 minutes. And so if that's at all interesting, you can go to acquisition.com forward slash roadmap, R-O-A-D map, roadmap.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
And so I'm definitely not somebody who enjoys the spotlight. And for the vast majority of my career, notwithstanding the last five years, my entire attention was to be rich and unknown. And so it's only in the last five years that that has changed anyways.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
the accordion of content so i think what might be helpful is kind of walk you through the different seasons of content creation that i've gone through and then kind of explain kind of the concept of the accordion of content so uh in the very beginning i started making content by making facebook lives when those were like a thing um into a group that was for gym owners that was basically the first thing that i did and that was what started the gym secrets podcast
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
I would do these lives and then we'd rip off the audio and then put them on this podcast. Right. And that was July of 17. So kind of cool because that was 90 days after I lost everything, which still to this day, I think is like the coolest thing is that like basically from zero all the way to here is documented. Not not always, you know, the prettiest documentation, but it's it's out there.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
So that was kind of that was honestly, I did that for like, two and a half, three years before I did anything else. Then I want to say in 2020, 20 is either very late 2019 or 2020. Nope, it's 2020. It's 2020. I'm almost positive 2020. I decided that I thought YouTube was a good idea. And so I went to a vendor and he said, just do your normal podcasts, but I'll just post them on YouTube.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
So I'm going to call this the accordion of content, all right? And so I get, I'd say, one of the most frequently asked questions I get, and I would say about a third of the people who listen to this podcast, this is me estimating, but about a third of the people who listen to this podcast generate their leads from inbound content.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
And so he would just trim them, which I found out what the difference between trimming and editing was much later. But I thought he was editing. He was actually just trimming them, which just means taking out the oohs and aahs and whatever craziness that I say.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
Um, and so the reason that the first videos are like me in my closet or whatever is because I was doing, you know, like the aesthetics didn't really matter for a podcast or, you know, Facebook lives. They didn't, it didn't really matter. So I would just talk to my webcam and just record probably pretty terrible quality audio, but that's what I did.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
And so I committed to three times a week and that's, and it worked. And I think I went from zero to like 400,000 subscribers, I think in that period of time, just trimming and posting. Um, So then after that, and so at this point, just to give you like a recap here, I was just doing... Basically only long forms. I was just doing YouTubes and podcasts, and that was basically it.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
So then I had a guy who reached out to me and said, hey, I can do these new things called Reels for you. And it was right as Reels and TikTok and stuff was coming out. And I really didn't want to get into that. I was like, you can't say anything in 60 seconds. All these kids with their short time attention spans, whatever. But he said he would do it for no extra work for me.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
He said, you already have enough stuff out there. I'll just clip stuff that already exists. And I was like, all right, that's pretty compelling. I don't have to do anything. You can just like basically advertise me for free. And he said, I'll even post it. And I was like, great. And so he just started doing that and they started really doing well. And I was like, wow, that's pretty cool.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
After a quarter or two, he said, you know what would work even better is if we just like flew out and just did like one dedicated day. to get clips. And so that was kind of the next iteration is we would do 100 clips in one day, every 90 days. So that's what I would do. I'd sit down, I'd do 100 shorts in one sitting once every quarter.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
And then that basically created my clips for the whole time period. So I'd have one new one and then one repurpose. I'd have like two a day. So we did that for a while. Then I had a really good editor reach out and say, hey, you know, you don't edit your videos. Like if you edited them, they do better than if you just trim out the oohs and ahhs.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
And so he started editing the videos and then by editing them and like actually ordering them and, you know, maybe having some sort of sequence in mind, the videos did significantly better. In this time period, and you're like, okay, where's he going with this? What happened is I would have these moments where I would say, okay, I need to make more content. So this was quantity.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
I'd be like, okay, I'm going to make more. I made three a week. Let's see what five a week does. And when I would do it a five a week, all of a sudden I make, you know, I would have 60% more views. And I was like, wow, what do you know? Volume works. It works everywhere. You know, I'd go from making two, you know, two shorts a day to five shorts a day or eight shorts a day.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
So they're either doing SEO, they're making content on social media, they're making YouTube videos, they're making shorts. Basically, they use organic stuff to attract customers, right? And one of the most common questions that I get about that is quantity versus quality and narrow versus broad.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
By doing that, we got more views and we got more people who kind of came into our world. And so that was beneficial. But what happens is at some point you're like, man, when I look at the distribution of where views go from these eight shorts a day, it's like, well, every like 50 shorts, I've got one that does like a hundred times the views.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
And so then you ask yourself like, man, if we just tried a little harder on these and made a, you know, a little bit fewer, would we get, you know, maybe even more views. And so then you accordion in from quantity to quality. And so you start making, you know, fewer, fewer, better things. And then maybe you get close to matching the views that you were making before.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
And then you start to get used to that. Let's say it's two times a week instead of five times a week. And then you're like, huh? And you do that for a few months and you're like, you know, I feel like we could go from two to four now. I feel like we've really got this down. And so you go from two to four and then you coordinate out your quantity.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
And then you do the four a week for a while and you're like, man, but these formats do really, really well. If we just focused on doing these even more, then we could probably cut our volume in half and hit the same total views, but it'd be higher quality. And so then you go back to quality. And so quantity and quality is this accordion.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
And so a lot of times I get the question of like, what's the optimal amount to post? The true theoretical answer is that you would want to post as much as humanly possible. That's the highest quality stuff. Now this sounds obvious, duh. But the thing is, is that people think that there's some specific cadence or like, oh, Instagram, there's a lot of mysticism, a lot of like mythology around this.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
Like, oh, you know, Instagram can only do two a day and TikTok can only handle three a day and tweeting can only do 10 a day or whatever. I genuinely believe, and the people who write the algorithms have come out and said this, Mosseri on Instagram, Elon on Twitter, their platform is incentivized to distribute good content.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
So the more good content you have, the more they will distribute it, period. Mosseri even on Instagram said, when you have a good post, you should post again faster so you can ride the benefit of the one before, which kind of goes contrary to how a lot of people do. Like, oh no, I don't want to mess with it. It's like, dude, that one's already on its own rocket ship.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
It's like, but you're getting views to your page, so put more stuff out. To give you an example on this, I think one of the top Instagram pages posts 100 times a day. It's an Indian account in Bollywood. 100 posts a day, they get 9 billion views a month. Billion with a B. It's like one for every person on earth. That's right. That's math.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
Anyways, the answer to how much content you should make is as much amazing stuff as possible. But here's the kicker. Everyone has limited resources. You have limited time. You have limited bandwidth. You have limited money for both recording, editing, and manpower, etc. So... What do you do? I think you basically think about this as the two factors.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
You've got, call it Q1 is quantity and Q2 is quality, is if you want Q1 times Q2 to be the highest absolute number. That's it. And so if you think that you can dramatically ramp up quality if you cut quantity in half, so basically if you can more than double quality by cutting volume in half, then you should do it. If you can keep quality more or less the same and double quantity,
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
And I do think that I have some pretty developed thoughts on this as I've gone through a lot of iterations for how we create content. And this is especially, I don't know, I feel like I have a lot of context on this because I come as somebody who didn't This isn't the only way that I get customers.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
You should do it. Now, I will say this on a personal note is that, in general, when you increase quantity, you almost always grow. And that's usually because when you know how to do something at a certain level, just doing it more is typically easier than doing it better. Because usually, like, I don't know, but I'll just do more now.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
But here's the crazy part is that the more you do it, the better you get at it. And so it is a virtuous cycle between more and better. And so there is no answer. It is, it is not a problem to be solved is a dichotomy to be managed. So that's the accordion on quality and quantity. Now the next one that I get really a lot of questions about is the topics themselves. What do I talk about?
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
What blog posts do I make? What emails do I send? What shorts do I make? What longs do I make? And as someone who's experimented with this a lot, I feel like I have a decent amount to say on the subject. So obviously, I am first and foremost for business owners, right? That's that you guys are my people. That's why I do this from a financial perspective.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
But I am not immune to the fact that if I make a meals video, or if I make just kind of a generic life advice video, it will almost always do significantly better asterisk, if we measure it by views. Now, does that necessarily translate to more sales? In the data that I've collected, the answer is no. Asterix again, but there is some nuance, which I want to explain.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
And so I said, this is the accordion of content, but the second accordion is the narrow versus broad, which is. I have gone super broad for periods of time being like, okay, I want to get as basically the theory is if I just talk about everything, that's really big and affects everyone. If I talk about health, I talk about relationships. Maybe I talk about just personal finance.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
Those are very broad topics. I talk about careers, jobs, things like that. Those are broad topics that affect almost everybody. And so when I do that, the theory would state that if I got the whole world in my audience using that stuff, then I'll have a smaller percentage of people as a relative percentage of my audience that are business owners, but I will have a higher absolute amount.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
Now, when we did this in practice, it didn't actually work out that way. And that's because branding doesn't work that way. And I'll give you a simple example on this. So I don't know if you know, Kim Kardashian started a fund for private equity. And she recently had to close down the fund. And I actually don't think it got a lot of press. I don't know why. Maybe it didn't.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
Maybe it had a five-day news cycle. Anyways, I noticed that they had to shut it down or it wasn't performing the way they had expected. And so you'd think, well, wait, everybody knows who Kim Kardashian is. And so she should be able to raise, one, monster money, and two, be able to crush things. But the thing is, is that her influence... is not of a business person. Think about that for a second.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
Do you trust Kim for beauty? Sure. Do you trust her for fashion? Sure. Why? Because she's demonstrated that. She's got, you know, 20 plus years or 30 plus years. Man, it's been a while. Anyways, a while that she's been kind of like a fashion icon. I think she's wanted that. Now, I think she's tried to shift towards business tycoon or businesswoman, but it takes a long time to, quote, undo that.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
And my experience before acquisition.com and starting the YouTube worlds that I did was not this at all. It was almost the majority direct response, just kind of like paid ads. And so adding in content and kind of branding has been something that I've had to take very like scientifically. And what I mean by that is like it didn't come natural to me. I wasn't like, oh, I just want to make content.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
you know, 20, 30 years of branding, right? And so she doesn't have the same influence in business as, say, somebody who's maybe a much smaller creator, but has provided significant value. So I want to explain the difference here, all right? There are elements of persuasion. One of them is power. So I'm going to explain what that is. So power in different contexts could mean different things.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
But for the purpose of what we're talking about, we want say-do correspondence. which means if I say, hey, raise your price in this way, and then you end up raising your price in that way, and it works, you will like me more. And that likingness will be specific to the domain under which the context of the deliverable occurred.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
All right, that hopefully sounded like a little bit wordy, but follow along with me. If I then go and say, hey, here's fashion advice, that probably wouldn't be on brand for me, right? I'm not known as a fashion icon, probably laughably so, right? And so it would be very weird for me to start a fashion line. And so to the same degree, Kim doesn't talk about business, not much.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
And even if she does, she doesn't talk about stuff that provide value to business owners. Now she might talk about wealth in general, but not something that she says do this and this other valuable thing occurs. Now I'll give you a different example. So Martha Stewart, I think, became one of the most influential people because she literally gave out instructions.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
She gave out recipes, and people would follow the recipes, and they'd get a good outcome, which is the cookies were great, the cake was great, I did this quiche, and it was amazing, whatever. They followed the steps, got the good outcome, and then as a result, liked Martha more. And here's the cool part about this.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
People don't need to follow all of your instructions for them to have the positive liking towards you. And so if you're worried about like one, repeating content or two, well, what if people don't follow most of my stuff? That's one, normal, two, fine. Because it only takes one good experience for someone to have positive affinity towards you and your brand.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
And so you might be like, wait a second, how's this relating back to the, you know, the accordion content thing? All right, so let me bring it back in. When I was making all the broad stuff, what I found was my book sales actually went down. The number of companies that were planning to become portfolio companies went down.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
All my views metrics went up, but all the metrics that mattered to me actually went down. And so then I was like, oh gosh, complete pivot. And so I went from super, super broad to back to business. And so I've actually been in the back to business kind of vein, I would say for a while now. It's probably been at least nine months at this point, maybe longer. No, I think about nine months.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
In this time period, all of the metrics that matter to me have gone back up, which I care a lot about. Now, within the context of business, the objective is still to be, or within the context of whatever your narrow thing is, the objective is still to be get as many views as you can within that pond, right?
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
And so if I can make business content accessible to more people so that it's both narrow and wide, so let me explain what I mean by that before you freak out. Hold on. So I would define wide content as content that is only valuable to a beginner. I define narrow content as content that is only valuable to someone who's advanced.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
So for example, if I said how to get your first five customers, that will be only valuable to someone who's a beginner. Somebody who's advanced already knows how to get their first five customers. They're not that interested in that. On the flip side, if I say how to sell a company, that is not going to be valuable to a beginner and will only be valuable to somebody who's advanced.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
Now, here's the cross section. If I talk about strategy, or I talk about leverage, or I talk about pricing, these are things that are valuable for both beginners and advanced people. And so that's to me, as I think, as I've kind of evolved in my content, it's like, how do I make stuff that's valuable for everyone, but still gets me the people that I want, which is business owners, right?
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
Like, first off, I'm not somebody who I don't wake up every day thinking like, man, I want to make content. That's not that's not me. Some people are like that. I'm also not somebody who's like, man, I love attention. I would say that once a month, I'm like, I don't even know if I want to keep doing this. And so, but the many notes that I get from you guys honestly do keep me going.
The Game with Alex Hormozi
My Approach To Scalable Content - The Content Accordion | Ep 845
You're like, again, how does this go to the accordion? I'm going to get there. As my content has gone from, you know, super niche to what I want to talk about, to super broad, to now what I try to aspire to do is both narrow and broad. wide together content within a business theme.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Hey guys, welcome back to the game. I have been getting your feedback and y'all have been saying you like the more interactive content, you like the more real business content, which hallelujah, so do I. I prefer actually talking about business rather than not. And so I'm stoked about it and I'm gonna keep doing more of this because I love it.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
I would consider just rebranding the old one, given your partner. Um, and then just kind of relaunching if you can bandwidth wise in parallel, but just knowing that this is going to be basically an asset that you're going to sunset. Is there a huge amount of like, uh, operational resources after it gets filled up that you have to deploy to like manage it or no?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Professional, professional.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Okay. Yeah. I will say this as a side note, notice how easy it is to like make money in this other thing versus the hard thing in general. If you weren't like, I really want to help the kids. I'd be like, dude, just do the really easy one. No, you're like, it takes nothing. I can fill it up in a day, cash flows, whatever. Like, like do more of that. Um, if the goal was money. Yeah.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
If the goal, like, okay.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
That's the issue. And so it's like, I think... So it's like, it's a sequence thing, right? Like you have a thing that you're good at making money on. And then you have a thing that you want to give back on. I would imagine the professionals one makes you more money than the kids one does. It doesn't. No. Man, this thing.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And so I have a very simple framework that I walk through for when we are figuring out what matters most. And if we think about strategy as prioritizing limited resources, time, money, you, to unlimited potential actions, then The better we do that, the higher the return we get on what we have and what we put in. And so fundamentally that is leverage, getting more for what you put in.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Okay. So I stand by my original thing. Bridge this for the cashflow and then switch to the kids. professionals fill up your existing ones so that you don't, you're not going into debt and you're not going negative. And then basically the rest of your priorities going forward, you sunset that. It's like, that was our legacy model. Now we do kids.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Don't keep, don't keep growing that side of the business.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Right. Fill up the ones you have because you have all these vacancies because you had to get the kids out. Fill that up really quickly. Get the cash flow back up. And then if you can make more money with the kids thing, and that's what you want to do it and you make more money, do that. But you got to get to there.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
That's my two cents.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Yeah. I mean, I really think prioritization is the most important skill.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Everyone here is limited. So it's what you do with the limit.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
You bet. Thank you, man. Kudos to the kids. The next set of kids, not the old ones. So as I was picking through avatars and he was saying he has the kids thing and then he's got the professionals thing. I'm thinking like, how easy is it for him to get customers? What's the gross margin per customer? And are there lots of them, right?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
So it's like, if you have a lot of people that you can get really easy, really quickly and make a lot of money, that's a good path, right? And so when he immediately said that he could do, you know, professionals really fast,
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
um and easily i was like and that's obviously a lot of them i was like okay this sounds like the right path and so then i just asked that one last question was like i'm assuming you make more money on the professional he's like oh no not at all so that's what then basically redirected my attention to like okay well maybe this other path is okay and is the better long-term play but we have to get there and if we don't get to the future then it's never gonna happen and so then it just became a short-term cash flow bridge that he needed to create which you either get you know you get
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
somebody to lend him money or things like that, which I don't prefer to do. But given the fact that it was real estate and he could just fill up apartment buildings and just kind of like move on and then just restart with new leases for the government program that he was placing children into, that felt like the best kind of two step play.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
It's common that entrepreneurs will try and use one business to fund another business. It's often not a good idea. And it's usually just a massive distraction. And then the problem is that they can never turn off the thing that's funding it. And I'll say from my experience, the vast majority of the time, the thing that's funding it is the real business.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And the other thing is some hobby that they think in their mind some way someday might work. But the thing that just pays their bills, if they just focused on that one thing, it'd be 10 times bigger. I mean, fundamentally, prioritization tells you what you're going to do with what you have. And so I can't think of something that's more important than that.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
What's the issue with doing more of that?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
You just have to make more. I don't think there's anything wrong with your existing. So this is a good meta one. So we, you know, fortunately, unfortunately, we look at a lot of different businesses and like we know the numbers for a lot of different industries. And you'd be surprised at how similar CAC is between industries.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And so as much as people will generally obsess about like, I just need to get more leads, I just need to get cheaper leads. It's almost never really the solution. Once you have some working way to acquire customers, which you obviously do, it's usually about extending LTV. And that's where you see the huge disparity between businesses.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
I think I made a short about this, but Starbucks LTV is $14,000 per customer. And so the coffee guy down the street is like, I just need cheap relates. It's like, dude, Starbucks is making $14,000. They can spend it wherever they want. And so the companies that make just tons and tons of money just find ways to get customers to never leave.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
So every task that you have, because right now you probably have this big list of to-dos, right? You have this list of a hundred different notes that you're thinking about for the cleaning business. And you're like, okay, which one am I going to start with first? And when you get on the plane tomorrow, you'll have your empty page and you'll have like, okay, what am I actually going to do? Okay.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And then they just basically keep printing money as soon as they acquire them. And so what the game really then becomes is a cash flow management game. so that you can spend as aggressively as you want to get customers that will never leave. And so that's why like you hear in the software world, like, you know, six month, three month payback periods, things like that.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And it probably doesn't resonate as much because you're like, well, I make $4,500 and I spend $1,400. It's because people keep leaving out the back. And so from a Solve perspective, there's a couple kind of couple ways to look at it. Are you charging $4,500 upfront?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Yeah, and so front end's four and then they get ascended?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Yeah, so I don't think, so this is a great example. It's like, as much as this was like, should I do more organic or should I do more paid? I don't think that's the issue. I think basically figuring out the ascension links between each of the phases, but the real, I mean, that would be like first thing to do. But the second thing that I would do, which is like the long-term fix for the business is,
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
is we have to get the price, basically we have to get churn below 3% per month. And you can do it. You 100% can. So if you're below 3% per month, this business will just continue to grow. And so I would basically put all of my effort into doing that because you will never outsell bad churn. You'll always feel this crippling anxiety of what happens if my ad account gets shut down?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
What if this happens? Because you never feel like you're really building a permanent asset because you're like six months away from no customers. And so it's worth taking the time to solve that problem in the beginning, especially to be fair, the smaller you are, the easier it is to solve. the bigger you are, the harder it is. So it's like, solve it now, get it right.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And then just, it'll just keep stacking. Cool. From a churn perspective, it's usually going to be around pricing. And, um, so what I found in that space is that the price points, um, that like have the lowest churn are between like 600 and 1200 a month, um, for, for fitness trainers, et cetera. Um,
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And there's usually some component of, you know, two times a year, three times a year, they get to meet up. And beyond that, I don't think you need a huge amount more delivery besides whatever kind of one to many thing that you're doing. If they have at $600 a month, it's not that hard to justify, but that's what continues to stack.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
I'll go big headlong tail. So like 3K down, 600 bucks a month after that.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
I prefer pay and then pay immediately. Okay. So it's like rather than, you know, like 5K, I'd rather get, as crazy as it sounds, I'd rather get 3,500 and then have them pay 500 three times in a row Whatever the math works out. Yeah, that works out to 5K. I would rather that because I don't want to have a second sale for Ascension because then I'll lose whatever conversion percentage.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
So this is how I think through it. And I would teach this to your teams because they will come to you with ideas all the time. And being able to say no and here's why, I think helps a lot.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
So I'd rather just get like 3,500 you're invested. Now we start at $500 a month. Does that make sense?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Great. Does that one churn less than the other ones?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
When you pay $3,500, the $600 doesn't seem that bad. That's what I would do. I think you're doing fine on the advertising side. $1,400 is fine. If anything, it's good. So I don't think you should obsess on that.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
You've got to cut it by three quarters. That's where you attack. Part of it is going to be a pricing thing. Part of it is going to be expectation setting on the onboarding call. Um, and sometimes a little bit of is the marketing and what they're, how they're getting sold.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Yeah. And also probably just customer avatar, like making sure that you're not taking people who want to start, uh, you know, fitness training businesses, but people who already have training businesses.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And if you tweak the marketing so that the messaging is clearer, you will attract more of those people. Just being like, this is only for people who... And then you keep going into the ad, you'll get more of those.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
If not, watch my free show.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Yeah, you bet. Rock and roll. You know, this is a business that is very sales and marketing driven, but if you want to get really big in that world, or really any world, you have to keep customers.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
So number one is every single goal that you have in the business or any action that you're going to take has to increase the number of customers that you're going to get, increase the lifetime gross profit per customer, or decrease the risk associated with making action one or action two. And so...
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And so that business, you can either sell more customers year over year over year, knowing that they're going to fall out the back, or just take the extra year or two and fix the churn in the core thing. Now, my caveat is that will you ever eliminate churning that business? No, but you can dramatically reduce it. It's not going to be the same as a CRM business, right?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
It'll just be worse than that, but better than what he's got, right? And so that, by fixing it for a year, would then allow him year over year over year to have consistent growth rather than always having to be worried about where his next ad campaign is going to be doing.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
It gives more stability in the business, increases cash flow, increases margins, and fundamentally just makes it a more enjoyable business.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
You did 150 sales in December and had a record month using the Black Friday play doing a giveaway. Yes. Now you've got the bigger group that's happier revenue doing $180,000 a month, 6,000 members at 30, right?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And then you have your hire ticket.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Big picture, you'll never feel like the business is solid until you find out how to get people to not leave. Everything else is window dressing. In terms of acquisition, I would rather you go from paid meta ads to adding in paid YouTube ads than trying to go a whole new method for affiliates or a whole new method for content as like your primary kind of like new investment.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
When someone comes with some sort of proposal of like, hey, I would like to use some of our limited resources to do something, you say, great. Which one of these things is it going to do? Is this thing that you want to do going to increase the number of customers we're going to get? Is it going to increase how much they're worth?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And so I would probably just go YouTube ads as my kind of like next thing. And you're knocking on the door of a million a month. So it's about that time. Does that make sense?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
That's what I would do.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
So this gentleman trying to go from six million to over a million dollars a month, so he's right here, right? And his current constraint is that lead flow is volatile because he only has one way to get customers. And so to graduate, he has to fund his second acquisition general for what I like doing, and he actually just ran the play.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And so when I started this, I was like, you just ran this referral process play, which he had just done, to generate more cash flow. and then segment long-term lead nurture by lead scoring, and then pick the most similar platform, which in this instance was go from paid ads on Meta to go to paid ads on YouTube. And so that was the most similar thing that he could do to get more customers.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And so fundamentally, that's all I did was basically walk him through what his current constraint was, how to graduate for it at this level. And if you want a personalized version of this to know exactly where you're at and know what constraints you have and how to graduate, this scaling ramp is absolutely free. Just go to acquisition.com forward slash roadmap.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And on the thank you page, if you'd like to have my team tell you where you're at and kind of apply this to the business rather than having just kind of like the automated thing, then book a call. We'd love to meet you. Otherwise, enjoy.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
So project-based isn't bad, right? You just need to demonstrate. So this is the concept of recurring versus reoccurring, right? And so if you go project to project, there's nothing wrong with that as long as you can demonstrate that you have a high renewal rate between those things.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And so I'm in general, I do like having kind of project based stuff because typically you can price two to three types higher than you can for a subscription.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Or is it going to decrease our risk as a business, aka increase the likelihood that these two continue to occur? And if they can't clearly draw a line to how what they want to do changes these things, you should probably not do it. So I'll walk you through an example. So let's say Sharon comes up to us and says, hey, I think we should redesign the site. And you're like, okay, why?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And so you have usually way better cash flow because people are willing to commit to a certain amount for this period of time versus, you know, this forever, which is what a subscription feels like, even though realistically we know that it's not that, that, that case. So, um, You want to get to $100 million subscription business. You have a $1.3 million non-subscription business.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
I would say I don't think the limit to your business is that. So we'd have to dive a level deeper and say, like, what's stopping you from getting to $10 million with your current model?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Is subscription already or that's the goal?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Okay, got it. And you said you have whales.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And you have small companies.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
What percentage of companies are in either bucket, revenue-wise?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And so this is full of business owners who ask me questions in person about their particular businesses. What's really nice about this is that there were so many common through lines that applied to every business in the room. Okay, I've got this other opportunity. Should I pursue that or should I keep the one I'm on? I've got multiple customers that I'm serving. Which one should I switch?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
I'm serious. So how do you get whales?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Yeah. Okay. Got it. So if you had twice the outbound team you have now with equal skill, would your business double? Yes. Great. So what stops you from doing that? You don't have a recruiter?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Okay. So you have a bad recruiter?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
So hopefully this line of reasoning was fun for everyone. But that's what we have to work on. The rest of the stuff that we talked about is basically irrelevant. You need to go get another recruiter who's good and can get you outbound guys. Basically, my advice is to continue increasing the outbound team until you can't handle the sales anymore. That's it.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
In Wales, fundamentally, it's not uncommon for them to work on projects. Just extend the terms. If you sign, they're currently doing six-month engagements, try to go for 12 or 18-month engagements.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Does that make sense?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Yeah. And that's just as valuable. Like if you have like a five-year contract with a Fortune 500, it's recurring. As far as like an investor would be concerned, it's the same thing. Make sense? Yes. All right. Rock and roll. Hopefully it's simpler. Hey guys, real quick, this podcast only grows from word of mouth, quite literally. There's no other way to grow a podcast than word of mouth.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
If there's some element of this that you think somebody else should hear or would be relevant to them, it would mean the world to me if you shared this via text, via Instagram, via DM, via whatever way you like to share stuff with the people you love. Thank you.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Well, I mean, I think it just looks a little outdated, right? And you say, okay, understood. Well, how much... Do you think that's going to cost money wise? And she might say something like, well, I think, you know, we get a firm in maybe like 25 grand or something like that to like do a full rehaul. And you're like, all right, got it. How long? About eight weeks. Okay.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Can you just say a higher number when you get to the asking for money part?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
I understand. I'm saying, like, what stops you from just changing nothing and just saying a higher price?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
So, a couple things. So, one is that it feels like you need to be sold more than anything, which, like... Great. But are you good at it?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
No, Christmas tree lights. Oh, yeah. Okay, good. The best. So great. So then you can you can charge whatever you want. In terms of it has the business all come from referrals?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Okay, got it. So you want to get to 2 million. You raising your prices, what percentage do you want to raise them?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Got it. So the thing is, is like, if you want to raise some 50%, I'll bet you got so much more room than that because you seem not as convicted. So I'll bet you there's like a ton of room. Okay. So you're charging. Okay. Let's just, let's start with 50 and then bump it again. Another 50.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
If basically you have no change in close rates and I would like you to keep bumping it by 50% until you see that you're making less money. Got it. That sound okay?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Okay. That sounds great. I love this. Is that as good for you as it was for me? I'm kidding. That's what your partner said. There you go. Thank you. That's also what she said.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Okay, so I'll give you a little script for the people who are old that are going to come back, because I know some of them are going to recur, is that I would give them a heads up ahead of time and say, hey, just so you know, we're raising prices on all these new crazy people who are trying to give us money.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
But since you're an old OG, if you want to reward you for being a previous customer, I'll honor your old price as long as you buy now for Christmas. Otherwise you'll get the new price. So it's like, I'm giving you the love now because I'm like, Hey, I'm letting you in, but then you can front forward. You can pull cashflow forward. Does that make sense? Perfect.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And then everybody else just raised the price and you'll feel okay about it because you'll have a full bank account. Right. Okay. Thank you. So pricing is one of those weird dogmatic things that founders have these like deep-seated beliefs about it. And I think there's because there's a lot of fear, right? No one wants rejection. Everyone fears their business is going to go away.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And it's usually because you think that like, oh, if I, you know, change the price to one customer, everything's going to change. It's like, well, if you weren't selling, then you can just change the price back next week. But the risk of not testing your pricing is so much greater than the risk of keeping it the same. Like think about it at its absolute extreme.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
What internal resources do you need? Probably need to take Tom and Bill and put them on it full time. Okay, great. And what do you expect is going to increase revenue? throughput for the business? I don't know. I guess opt-in rate could go up by 10%. She probably wouldn't say that, but let's just say she did say that. I think we could get a site-wide opt-in increase by 10%. Okay, great.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
If you kept your business prices the same forever, you would eventually got a business. Think about how crazy it is because over time prices inflate, right? Costs go up. And so you have to be able to adjust prices. If you haven't adjusted your price in the last four years, you're making 30%, 40% less profit for sure bar none in terms on a per unit basis. So like, why wouldn't you do that?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
and so with this particular guy he wanted some like strategy to get his head around you know i i want to charge more so how do i increase the value but he's closing a ton of people and he's obviously doing a good job and so the easiest way to price higher is to just raise the price and i just gave him a little tactic which is you want to reward existing customers
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
but the thing is you can reward them whatever you want so you can reward them by giving them early ability uh to pay you you can give them a discount for three months if it's a recurring membership so it's like hey i'm changing the prices you know today effective now but i'm grandfathering you in for three months right rather than forever right so as long as you give them some consideration it kind of like smooths things out and it's easier for a discount to go away than a price to go up
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And so increase the price, give them the discount. Say you grant for the discount for three months or six months, and then the price goes up. So what Don was struggling with is an issue that I cover in the $100 million offers book. So he was dealing with a virtuous versus vicious cycle of price.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And so there's always this fear of like, okay, well, if I decrease my price, maybe I'll make more money. But when you decrease your price, you decrease your client's emotional investments. You decrease their perceived value. You decrease the results they get. You increase their demandingness towards you. They're more of a pain.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
You decrease your revenue per customer so that you have less money to actually like do the thing that you delivered. You have less profit, less value for yourself, less perception of impact, lower service levels, and your whole sales team, which sometimes when you start it's just you, your personal conviction drops.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
So wouldn't it be so much better to increase their emotional investment, increase results, increase demandingness, increase the revenue for fulfillment so you can get better talent, and have more profit, increase your own perception of self, increase the service levels you have, increase the impact, and increase your own conviction?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And so the thing is, is that changing your prices is the single easiest thing that you can do operationally that can make you more money. And you should always exhaust that as fast as you can before thinking about other things. Because literally the only thing you need to do when you raise your prices is just when you get to the end of the sale, say a different number.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
It's like every, it's like I say it on one podcast, like four years ago. It's like everyone, it was like the best HubSpot endorsement ever.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Is there anything else that we can do for $25,000 and eight weeks and two of our people full time that can get us more than 10%? And if the answer is yes, then we shouldn't do that idea, that Sharon's idea. We should do the other one instead. And so fundamentally, the thing is, is that there's lots of very logical reasons of things that can increase the business.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Um, stake, basically you just need like your CEO of it for basically this whole quarter. It's the easiest way to say it. And so I would have really rapid feedback loops with each of the department heads. Um, if you have functional heads at the holding company, um, and then you'd want to have basically separate lines of communication for all the location heads.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
So I think about, do you use Slack or something like that?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Okay. Yeah. So I'd want to have basically different threads by function. So one is the actual function. So people who are handling sales, people handling marketing, and I'd have the leaders there.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And then I still want like, you basically want the different slices, basically lines of communication to the different slices of the org so that you can get as much transparency top down into how it's working for them and making their life easier. And then that way you can triage the
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Basically, because you have limited resources in terms of which of these bugs are we going to fix, which process flow sucks. And then you can basically stack order which of these things has the highest driver for revenue. But you can't really do it appropriately unless you basically can drink in all that information. And as, are you CEO? Yeah.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Yeah. But, but you're in charge of it. So you're CEO of this. So, um, that, that's, that's basically, basically it's just like, you need to eat, breathe, breathe and sleep this stuff.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Yeah. Just like, it's okay that it is unscalable.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
But you have to do that in order to make it scalable.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Yeah. You bet.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
I just wouldn't.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
I wouldn't do it.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
You're going to go from six to 15 this year. Do that.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Like I'm not, I'm not trying to be like a short to like, like these are, these are the mistakes that we make. There will literally always be money on the table. Like you, you can't sell everything as much as you want to. Like you just, you just can't.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And the thing is, is like, if said differently, if this company can go from six to 15 and the next year goes from 15 to 30 and the next year goes from 30 to 60, if you hit the same numbers and have two different product lines versus one, which would you rather have one? Right.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And I'll also tell you that if you just do with one, you'll increase the likelihood, not decrease the likelihood that that occurs. And so like, that's all the, that's the focus and discipline stuff that you hear all the Steve jobs and all that. Like, it's just, it's, uh, he called it the, uh, the quantity of unbelievable ideas that, you know, you could crush that you say no to.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
The question isn't whether it's going to work. It's but to what degree will it work? How much is it going to work? And fundamentally, the best entrepreneurs get the highest returns for the things they put in. That's the game. And so I think about this all the time because the highest leverage moves are oftentimes moves that are off the board. They're moves that you don't see.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
That's what focuses.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Um, when we have bandwidth, which if you're continually, like if you're basically doubling every year, your bandwidth is getting eating up by doubling. So just double. Basically, it's like, why, why would we do it?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Yeah. But if it's like, I want to grow, why would I like, why? Like, then let's just grow with the thing that already is working and is really profitable. And we know everything about it rather than this, you know, crazy girl in the red dress that like walking by and like has a crazy boyfriend, has crabs. You're like, what's going on? You know? So like, why bother? It's like, we have this girl.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
She loves us. She knows me. I know her. Let's go. I define focus as the quality and quantity of things that I say no to. And so if you think about commitment, the ultimate commitment is the elimination of alternatives. You have nothing that you can do besides that one thing. That is the ultimate, like the perfectly focused person who plays video games would do nothing but play video games.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Everything that is not that decreases his focus. And so focus isn't like, are you focused or not? But how focused are you, right? And so the idea is the more things we eliminate, the more focused we are. And so that is always my constant reminder, especially the Steve Jobs quote, because he's like, it has to be something that you want to do in your core.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
You know you could crush and you still have to say no. Yes, sir.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
The Coaching Federation, internationally, you have the certification. 18 people is the cap. How do we get around it? Let's go.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
I like working. I spent a year thinking about that question when I had enough money to do whatever I wanted and could just live on treasury bills for the rest of my life. When I looked back on the days that I enjoyed most, they had three things in common. I worked out. I ate with people that I liked and I worked hard and had something to show for it and had nothing left in the tank.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And that's where sometimes you meet somebody who's in your industry and all of a sudden they change your paradigm and they show you a different move that you get 10 times more for what you put in rather than continue to play the kind of incremental game that you're on. Now, that being said... you know what, I'm going to explain this because I think it's really worth it.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And so once I realized that those were the days that I enjoyed the most, then I made it my goal to live as many of those days in a row as I could. And the way that I live my life bothers a lot of people and that's okay. And so I think, I mean, I got that advice when I was 22 years old from, I'll just, whatever, from a person in my past. And I'd had a good weekend and I started work.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And she said, you're in a good mood. And I was like, yeah, I just had a good weekend. She was like, I'm pretty sure the secret to happiness is living as many days in a row like that as you can. And that was like the closest to operationalizing kind of joy that I'd ever heard. And so I have just stuck with that. And I think that the things that bring you joy will change over time.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
But I think that structure of just trying to find what that perfect day is and living in as many days in a row as you can is kind of the way to do it. That's how I do it. You can do whatever you want.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
As a side note, for those of you who feel like you have lost your passion for your prospect, And I'll, I'll, I'll give you a simple example. Like I used to sell weight loss to women between the age of 25 and 55. And at a certain point I just really stopped caring. Um, they were like, Oh my God, my life changed forever.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And I was like, I know you had a calorie deficit and you moved like, yes, that's how that works. And I would have to kind of like fake myself into feeling excited about it. And, um, It really bothered me because I was like, I quit my job to do something that I loved and I don't really care about this. I ended up loving business more than I loved weight loss. And then I fell into that.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
But I had a friend who was a personal trainer who quit being a personal trainer and started a cookie business. Brick and mortar, big cookie store, like did it right. And I remember being like, are you passionate about cookies? And he was like, not really. And I was like, but he crushed it. He did a really good job. Everything was like really tight.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And what I realized was that he was passionate about doing things well, rather than the cookie business. And once I realized that, I was like, oh, I don't have to be passionate about weight loss, but I can be passionate about being good. And just saying like, when I do things, I will do them well. And I think that has been something that has helped me stay motivated in times when I feel less so.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
So one of the biggest breakthroughs that I had as an entrepreneur was my understanding of change and cost of change. So I'm going to show a little visual here. Let's say this is normal business function. All right, your business is moving. Everything's fine. Okay. Now, Let's say that you change something in your sales process because you think it's going to get better.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Paul had kind of fallen out of love a little bit with his business, which is, I just want to say, if you're an entrepreneur, I get it, and you're not alone. It's very common. You've been getting beat up for two years, three years, five years. You're trying to support your family. And at some point, you just feel like it's just the amount of crap that you have to deal with on a regular basis.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
It's no longer romantic anymore. But the thing that really changed my perspective on this was leveling up the ideal that I wanted to be loyal to, right? So originally it was like, I wanna be loyal to my interest in weight loss or my passion in weight loss and fitness. But over time, I just found new interests. And for me, from a forever perspective, I always want to be excellent.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And so that becomes a hypothetical ideal that I can always chase and never achieve. So like I want to be great at what I do and do excellent work. And so every day I can improve towards that ideal independent of whether I'm baking cookies or selling weight loss or doing IT services or cybersecurity or coding for software or sweeping floors.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Like it's a very trite statement of how you do one thing is how you do everything because I don't necessarily agree with that. But how you do the things you care about is how you do the things you care about.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
When you say channel, dial into the channel sales that you're talking about.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
So like affiliates.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Got it. Okay. So you're an affiliate expert for big IT companies and you have a network of people that can do, basically sell their services for them with a markup.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
So the question is, well, I mean, it sounds like you did okay with your announcement. Why do you feel like you can't out-compete the other people?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And this is the channel part. So the crowded part doesn't bother me at all.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Cause that just means that there's lots of demand.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
So the 14,000 people, you have a lot of high up people in those companies who follow you.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
I mean, you could do either path, but I mean, it's a good question. Um, I think it's more the statements that would initially jar me of like, it's saturated, I think it's going away, things like that. Because my big questions are always logic, evidence, utility. So what does that mean? Define that for me. How do you know that? And so what? Logic, evidence, utility.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
So when I asked channel partners, please define that for me, it's like, okay, that's affiliates. How do you know that they are going down? How do you know that?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Who's on the market for 11 months?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Okay. And those people are looking for jobs?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Well, this is what's going to immediately happen. which is that you're going to go down by about 20%. This is just from pattern recognition from doing this for a decent amount of time. You change stuff, basically your team has to relearn a new process, customer success, marketing, onboarding, content, whatever. You're going to go down by 20% because they just don't know what they're doing.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And when you say a lot of people reached out to you, like how many is that?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Okay. The big conflicting data point I have is that you like made a post and made 360 grand. Yeah. So just shut up and focus. Yeah. No, I mean, it's real, though. But I think I'll tell you what I like. If I'm in your shoes, I get excited by this stuff. Maybe because I'm broken on the inside. Who knows?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Yeah. And like, I see everyone bleeding and I'm like, let's, let's finish them off. You know what I mean? Like they didn't deserve to be in business to begin with. And I will make sure that everyone knows.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And so if you have this in and you're better and you're seen as a market leader, if things are consolidating, for example, then it means that like, as long as if the industry isn't going away, but it's consolidating, then it means a winner take all. So it just means the stakes got higher, which if you're better, that's a good thing.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
No, you bet. What Heather presented with is super important because a lot of businesses deal with this same issue, which is the perception that the market's getting harder and the perception that saturation has gone up and those both may be true and so what. Right. And so the thing is, is that like business pretty much always gets harder.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And in the opportunities where you have in the sectors where there's opportunity, more fish are going to come. Right. More sharks are going to enter. But like that's not always a reason to not pursue it. It just means that you have more competition. You have to be better. And so in some ways I can see lots of demand as a big market to go after. And if you're good, there's just more for you.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Now, I want to be clear. There's a difference between consolidation and degradation. So a degrading industry would be like newspapers, right? They're getting smaller and smaller every year. But a consolidating industry is when the same amount of demands there is just aggregating into fewer, fewer customers.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And so given the fact that Heather is better at high level deals with these bigger companies, it felt like a
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
good a good risk adjusted move for her to go after that kind of big pie because she already had a company she'd already sold it she had good connections there she immediately made a post and made you know three four hundred thousand dollars to me it's like she's got a good reputation obviously like it seems as though she's doing a good job and so i have a hard time telling someone to start brand new in totally different industries totally different spaces where they don't know the devil that's going to come whereas here it's the devil she knows
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
because she gets to harness the compounding benefit of being in the industry for a long time is that you know how it works and you know how the game is played. And so if you look at some of the richest people in the world, it's people who've just been in the same industry for their whole careers. And so it's really hard for me to give someone advice to be like, yeah, just change it.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Okay, so if they're down by 20% and you thought you were going to get a 5% improvement from this thing, if it worked, is it really worth the bet? No. Now, this is where it gets really hairy, because some people are like, well, you know what? It'll improve by 5% a month, and by month six, I'll be plus 5%. But let's be real.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Self-crack, if you will.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
But you have a practice.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And then you also have an academy where you train other chiropractors.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Yes. And you also want to start a physical products business.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
You don't want to leave money on the table. So, okay. What's revenue right now?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
You want focus? You want to do that by doing more things?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Sorry? You have the Academy though.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Month two, you're going to think of something else, and you're going to be here again. And so what this has translated into, for me, is two things. One, and I'm going to be crude on purpose here, some shit stays fucked. And so what I mean by that is, is that there are things that are in your business that are wrong and that you're like, this drives me nuts. And that's okay.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
So you're saying it takes time to build a big business?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Yeah, I believe you.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Let me help for a second. Sorry. You're good, man. You're also like probably, you know, everyone's laughing, but like you're probably one out of four, one out of three of you here is in this exact same boat. So hope so. Here's the thing. The opportunity will only get bigger, not smaller. So the rush that you have is a rush to do a smaller version of what you want.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
One's easy to get, one's harder to get. The other one that's harder to get is more profitable. The market's getting hard right now. How do I continue to scale despite that? And a few more questions that affect just about every business owner. Enjoy. Okay, Q&A stuff. So, typically I have a longer preamble that I'll do going into this. But before I do, did you guys enjoy this morning? Yes?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Because if you get bigger on social media, you will have more customers who want to buy your thing. right?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Oh, no.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
I had nothing to sell anyone for years. So, point being, the thing is, I don't actually think I'm going to convince you. I think you're going to do it. No, I'm serious. So, I don't even know if there's a point. You want to sell your thing. You want to sell your widget.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
So, what am I going to do?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
You want to be CEO of multiple. There's a difference between ownership. I also own stocks in zillions of companies online.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
So no, you have not. This is important.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
So for everybody, there's a difference between owning something and being CEO and operator. You can only really operate one thing. That's it. If I buy a stock in Apple, I'm an owner. I don't do anything, but I'm an owner. Does that make, do you get the difference here? Yeah. You're like, well, I'm going to be more. So like the, where you would get me if you wanted to was school I'm the face of.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
But when I did that deal, I said, I will change nothing about what I do. So my regular day must remain the same in order for me to do this deal. I'm going to continue to make content. I'm going to continue to record stuff. And then all I'm going to do is point in a different direction. That's it. So the pointing is a copy paste on a link. Everything else remained the same.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
So I boil this down to what does this change about what I do? And so the reason that this is very difficult is that you're going to start another business and it's going to change what you do.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
All right. I don't know what your question is anymore.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
I would take your 500 medical people and be like, how do I go from 500,000 in my first year to 5 million? That's what I would do. You already have something that works. You already have a following of people who have this thing. If you want, you can sell through them as an affiliate base. Then you have one business.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Yeah, I had no idea where this was going to go, but it seemed like this guy had a lot of stuff going on. This was a classic entrepreneur ADD rush issue. And so fundamentally, I think the reason that entrepreneurs end up opening up multiple things is because we're all in a rush. We all think that somehow an opportunity is going to disappear. So there's two things.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Number one is that opportunities do disappear, but then other opportunities come. So there will not be a shortage of opportunities. The better you understand the game of business, the more opportunities will come your way that you'll have to learn how to say no to. There will always be opportunities. That is a promise. I don't promise often. You can take that to the bank.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And there's tons of things. Literally, I have a list. It's Alex's big list of ideas. It's six pages long of things that I think we should do better at acquisition.com. And whenever I get up and I see people breathe for a moment, I'm like, I'm going to pull another one off the list. I'm going to mess their days up. It's going to be great.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
There will always be opportunities. The next issue is the timing around this, which is... some opportunities actually just get better with time. And so I'll give you a perfect example. So if I say no to people introducing me to people today, and the reason they're introducing me is because I have a big business.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
If I continue to grow my business, the people who wanted to introduce me to these other people today will want to still introduce me to those people tomorrow. But I'll also unlock the people that, now that my business is bigger, will want to also introduce me to even more people. So the opportunity grows by me not taking up the opportunity.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And so the thing is, is that he's got this brand, he's grown it a little bit, and so he wants to basically monetize it because he's like, some people wanna buy something from me. Well, welcome to advertising, right? But the point is, is that those people aren't gonna go anywhere. And maybe even if those specific people go somewhere, If the brand doubles, he'll have more people that'll come up.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
That's the new opportunities will present themselves. But the thing is, is that you have limited resources and bandwidth. And so we have to allocate that to the highest return opportunity. And if he in the first year of a new business does $500,000, probably very profitably, I would have a hard time being like, yeah, now a year later, let's start another business.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And I only say that because I've only done it every other time in my career and made a terrible mistake. And it's just like, I'm so vehement about this particular mistake because I have done it so many times. Can you hire a CEO for a business? Yes, but unlikely for a couple of reasons. So number one, he had a very small business. So the likelihood, think of it from a numbers standpoint, right?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
So let's say that he's got a business that does $500,000 a year and let's say he's profiting $200,000 from it, okay. So it's $200,000 in profit. what is he gonna pay a CEO to go like run this business? It's not even gonna be a CEO. It's gonna be like a manager, kind of. And so it's like, okay, maybe you can pay $100,000 a year for someone to do that.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
But then there's $100,000 a year that's left over in profit. But that assumes that that person's gonna run it as well as he does as the founder. And that's unlikely. And so it's likely to have like a decrement in performance. So like, would it be fair to say a 20% decrease in performance? Yeah, that's fair. And guess what? Now it's breakeven, you make some money.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
So like it's so small that unless you have a manager model that like is really built for that, like brick and mortar stores can sometimes work for things like that. It's unlikely to be able to find somebody who can take over like his influencer business. But can bigger businesses hire CEOs? Sure. But if you also look at the biggest businesses in the world, almost all of them are still founder-led.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And I think that there's a little bit of a pendulum right now that's kind of swinging from like professional managers to the people who are like the heart and soul of the business. Because the one advantage that you have as a founder is that you wrote the rules so you know why they exist and you know how to break them and when to break them.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
But the thing is that I appraise those things that can get better by can it at least improve this process or the overall business by over 20%. And so that's my rule of thumb. If it's not going to, if I don't have strong confidence that this will have a more than 20% lift, I'm not willing to take a guaranteed 20% cut.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And so when somebody else takes over, they're like, well, these are the rules, but they never derived them from zero. And so if you know how the infrastructure was built, you know how to navigate it without messing up the business overall while still accomplishing the objective. So fundamentally, you make the system more adaptive because of your knowledge of it.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Self-cracking.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
You're 3565 referral versus meta. You did 48 customers per month. Yeah. The issue that you have 750 when it gets to 2.3.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
because we're losing- You lose half your customers, but you keep a little bit more revenue. So you're talking revenue retention versus- Yeah, so I'm like, which one do I focus on?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And if you made more money, you'd definitely be happier. Not necessarily. That was a joke. Okay. So you have a location, you're doing 750. What does it cost to open a location?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Well, outside of real estate, what's the cost to outfit the location?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Okay, got it. What's profit?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Because what you'll find is that if you actually do none of these things, this is what happens in reality. People just get better at doing their jobs. People just get more efficient. Humans don't want to work as hard. They find better ways. And so not changing things in and of itself oftentimes does result in improvement.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Well, what's SDE? So seller discretionary earnings. So what do you make plus the profit of the business?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Each? No. Total?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And you have 13% on 75. So another 100. So 200K on 750. Yeah. Okay. Got it. So whatever. That's 20, 30, 30% ish margins. Okay. So you want to get to 2.3. Why 2.3?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Okay, so that location can do 2.3 million. Okay, so the issue is we have to solve retaining customers. Now, if you keep 50% of customers Like if, if let's say you lose half your customers, you're one, but then after that they stay forever. That's fine. We just have, we just like in next year, you'll double.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
If that isn't the case then, and you lose half of those customers the next year and then half of those the next year kind of thing. Um, I would see what we could do to improve that. Um, that being said, you're in a business that traditionally is marketing heavy. Um, it's kind of like weight loss. Cause like people get fixed and then they're like, yeah, deuces.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
So, um, the, the strategy that I've seen that has worked really well in the chiro space is basically going significantly higher ticket number one and number two, niching down in terms of the different problems you solve. So this is like neuropathy, um,
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
You know, diabetes stuff, those types of like kind of segments and having more targeted advertising for those avatars and selling significantly higher price packages. And that's typically how those businesses will get to like a few hundred thousand dollars a month just with one like very small store.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And so typically that model is a, you run ads for some sort of free workshop, free dinners, free whatever.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
So then what's the ticket price that you're charging?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Well, you're selling 50 customers a month and you're doing 60K.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
No, I know. But if I just did simple math, I'd say $60,000 a month, 50 new customers, average customer is 1200 bucks. Yeah. Okay. So it's not the same model. Cause I'm talking $10,000. Right.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Yeah. So I think you have to get niched down in terms of, so like if you're doing all those things, I think you probably need to add a zero to your price tag.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Like, well, then it won't change. You'll still be the most premium.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Like, would that be, well, if you keep half your customers, you're pretty close to three. So again, you're pretty close to three. If you keep half your customers, right.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
I mean, are there things that you could do to improve it? Sure. I think you have more of a model issue. Like you obviously can acquire customers and you're doing a decent enough job keeping them. If we need to improve how much money this thing makes, it's either a pricing thing. Basically it's an offer and pricing thing is that you need to charge more so that you can make more money.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And so if I know I have a guaranteed cost of 20% and basically a fixed improvement of 5% to 10% that I'm going to get from doing nothing, I now have a 30% spread for change. You've got to be really sure that it's worth the bet. So this took me way too long to really understand. And so I would encourage you, if you have this big list of things coming from here,
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And then once you have the cashflow, then the expansion becomes pretty straightforward. That goes for basically everyone. Like a lot of times it's like, you know, we're doing 20% and you have what I would consider is like a normal business.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
makes money we work hard but there's no like you never feel like you really can like get ahead yeah it's usually because there's some significant hole in the business and you're decent at both sides and i think that the issue is that you just you need to be making way more money okay which is i think you need to add more do you sell physical products and consumables Not really.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Do you sell like braces and orthotics?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
So the key is there's two models that have worked really well. One is where you basically upsell them some sort of machine that they can take home and do other work. And there's a big markup on that. And the other is supplements.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Because you can sell a year's worth of supplements or six months worth of supplements upfront, make a really good bit there and it doesn't increase your operational drag at all. Because you just make the sale, give them the product. Does that make sense?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
But that's what I would add in to justify the higher price so that you could make more money per customer, which will then make you more money overall, which then fixes the model, which then allows you to scale.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Rock and roll. All right. Thank you. So he's kind of at the five getting to 10 employees. So he's at stage four. And so if you look at his product, he said yes to anyone who would pay. And because he's getting feedback from so many different customers, he has created so many different products and services. There's basically too many different things.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And so what I wanted him to do was get really clear on a higher level avatar. So specialized product and price to serve niche down customer. So I talk about the neuropathy and diabetes and kind of like thyroid. These are all like kind of sub segments that allow a chiropractor to charge much higher rates.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And so we had to reconfigure the offer and the avatar to charge more and then ultimately make significantly more profit for the business. Now he had a decent marketing and sales machine and I would say he had a decent delivery machine and as a result had decent margins.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And so all we need to do is just change the offer and we could probably double or triple the business from that one move alone, which then opens up cash flow to then hire the people he needs to then be able to expand. Because at his current profitability, 13% margins after you have a manager essentially, you know, it's not a compelling model and that's with him running it.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
So, you know, if you spend $100,000 and you make something that makes $90,000 with you running it in profit, not including the manager pay, which he was taking personally, it's not a super compelling model. And so we had like, what you'd want is like you pay 100 and then it makes like 400 or 500. You're like, this is a model and that kind of cashflow allows you to scale.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
So that's what I wanted to get to. And I think honestly, if you just does that one thing, you could easily add 250, $500,000 to the business with maybe half that drop into the bottom line. Now you have a much more interesting business. Real quick guys, I have a special, special gift for you for being loyal listeners of the podcast.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Layla and I spent probably an entire quarter putting together our scaling roadmap. It's breaking scaling into 10 stages and across all eight functions of the business. So you've got marketing, you've got sales, you've got product, you've got customer success, you've got IT, you've got recruiting, you've got HR, you've got finance.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And we show the problems that emerge at every level of scale and how to graduate to the next level. It's all free and you can get it personalized to you. So it's about 30-ish pages for each of the stages. Once you answer the questions, it will tell you exactly where you're at and what you need to do to grow.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Pick the three that you think are absolutely, there's no question in your mind, are going to increase the business and cost you the least amount of operational risk in order to implement. Okay. So going back to this, and now I'll go to Tuesdays. Let's say that we say, all right, we want to increase, you know, a number of customers. Great. So let's say to do that, we want to double our sales team.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
It's about 14 hours of stuff, but it's narrowed down so that you only have to watch the part that's relevant to you, which will probably be about 90 minutes. And so if that's at all interesting, you can go to acquisition.com forward slash roadmap, R-O-A-D map, roadmap.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Okay. So when we do that, we have three options for any strategy. And if you follow my stuff, hopefully this should look familiar. But either we're going to do more of what we're already doing, we're going to do what we're doing better, or we're going to do something brand new. So if you're sub 1 million, you almost always have to do more. period.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
You're just pretty much like there's, there's a math explanation behind it, but basically if you're, you know, you're closing at 25%, you know, your sales guys are, and you're like, okay, uh, I could spend my time trying to get the sales guy better. And maybe I'd go from 25% to 35%. Okay. That would be material. Um, or I could just hire another salesperson, salesperson and double the business.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Well, you should probably just hire the second salesperson and double the business. When you get bigger, when you have 20 salespeople, um, If you wanted to have, let's say, you're closing the same percentage, 25% close, right? If you wanted to go from 25 to say 35, in order for you to make that same increase, you'd have to get like eight more sales guys.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
So at that point, it's like, well, maybe it makes more sense for us to kind of retrain the team. And that would be a better rather than a more. And so math-wise, you can just math out which one of these actually makes more sense based on the risk and the cost associated with basically doing whatever path you're choosing to take. Does that make sense? Okay. So...
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
we wanted to get more customers we said okay could we improve our close rate or should we get more sales guys we said we're gonna get more sales guys and then if i see quarter over quarter that i have the same objective and it hasn't happened I usually have a who issue.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And so one of the things that I made a lot of mistakes with this early on, and I would say even midway on, maybe even three quarters of the way on too, was that I would come up with a plan. I would check this out. I think it's a good return. I think it's low risk. And then two quarters in a row, it hasn't happened yet. And so then my immediate assumption was I must have done something wrong.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
This is a bad plan. More times than not, the plan is not that bad. You just have a bad person doing it or somebody who's incompetent. And I used to have a lot more like, you know what? Last two quarters, I know Sharon's going to turn it around. I think this is going to be your quarter. And I just don't have enough time for that anymore. I want things to improve.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
We're on a mission to do what we want to do. And I just really need competence. And so at the end of the day, I think we do Sharon a disservice because there's a company that has mediocre standards that she will be welcomed to in open arms and feel at home and find her brethren be able to move up in that company because everyone there sucks and she's mediocre.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Okay, awesome. It was cool to meet other people from the portfolio. Okay. Yeah. So those are the people actually do the stuff that we do kind of every day. Um, and hopefully I kind of fulfilled on the promise that I made yesterday that yesterday was all kind of like theoretical. This is kind of the framework that we think about creating value today. It was all about kind of tactics, right.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And so by, you know, imagine the fulfillment that Sharon could get in that company compared to yours. And I feel like I owe it to her to release her to that. And so I want to, you know, release her to free agency. Okay. So jokes aside, let's get into Q&A.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
I just like this as a backdrop for when you're making, okay, which thing am I going to be focused on so that's going to move my company forward the most in the shortest period of time? So guys, what you're listening to is one very miniscule sliver of the scaling workshop that we run here at acquisition.com in Vegas at our headquarters.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
If you want to be in the room and figure out exactly what you need to do to scale, then come check it out. Obviously, you got to be a legit business owner, got to have employees, got to have revenue, all that kind of good stuff. I think the room that this was, I think the average is over 3 million in terms of business size. So pretty legit businesses.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And if you want the easiest link in the world, acq.com forward slash go.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
I make 1 to 100 million a year. In there. You're good.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Cooking skills, balancing a budget, things like that.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
How do you make money?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
And actually making sure that you're asking the right questions and move your company forward the fastest. So, um, The big thing, hopefully, that I would like for you to get out of this is making sure that you're prioritizing the right things. And so I have had the fortune or misfortune, depending on how you see it, of sitting on a lot of quarterly meetings and annual planning.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
I don't know if that makes sense. Okay, say the two people that you're running it out to is the difference.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
The kids? Yeah. What's the revenue split now?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
So the whole kids thing doesn't exist right now?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
I was like, this guy's doing the Lord's work. He's like, well, someday. He's like, for now, I'm just a landlord.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Well, technically, he fucked her.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
This is the highest Q&A I've had today. For sure.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Got it. Okay, that helps a lot more, context-wise. Just thought you'd sneak that by me. I'm kidding. That's what your partner did. Anyways. Okay. So how quickly are you able to fill it up with the professionals thing?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Wait. No, so you can fill up all your properties using the professionals? Yes.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Okay, so is it just that your heart's not in it with the professionals? Yeah, my heart's not in it. Okay, cool. Well, first off, kudos. How quickly can you fill it up with kids?
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Yeah, I'm guessing you have a cash flow issue in the meantime.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Yeah, I think you've got to bridge the gap to where you want to go.
The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
So basically... Sometimes you got to do what you don't want to do to get to what you do want to do. As much as I could be like, you should only serve the one person. I think that you have the properties you already have leases on. You have the commitments that you have to stick with. Fill up the properties with the working professionals so that you can create cash flow.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so whatever your standards are, he's like, you always have to keep pushing that standard because as things grow too, some people grow out of their sphere of competency. They're not as good at this level as they were before. There's nothing wrong with them or with you. It's just seasons. And so my understanding of that has shifted in terms of my role as well.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Like I see myself as lead recruiter for the top people because the absolute best people only want to talk to the CEO because you're not giving them an opportunity to have a career. They already have a career. They're giving you basically everything they know to help grow your vision. And so it's a lot more of you selling them than it is them selling you. They already have a tracker.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
They have offers. They have headhunters that call them every day. You're not giving them anything that they don't already have. And so it's like Sheryl Sandberg with Zuckerberg. He met with her for dinner like once a week for a year before they... before she transitioned and took over Facebook. And so it's a much longer recording process.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And all the people that I'm looking at, they're all killers. And so rather than thinking like, man, we really need someone to fill this role, it's like, I need John to fill this role. And John doesn't currently work for me. He works for somebody else. It might take six months. Exactly. And I have to figure out a way to get John to leave what he's doing and come work with me.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so that has probably been, those have been the two biggest challenges those have been the two biggest changes or shifts, um, that I think have propelled, uh, acquisition.com, um, to just the last few years have just continued to get better and better is focused on the one thing that matters most and be disciplined enough to say, yes, we aren't going to do these things.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And yes, they are problems. And we will get to it as soon as we finish this one thing that matters most. And then in order to execute on that, you need the absolute best and brightest because the arbitrage on, um, Imagine the difference if we had this as engineers, this taxi driver thing.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
If a good engineer costs $250,000 a year and an amazing engineer costs a million dollars a year, but you get 100x return on that guy, it's still a better deal even though it costs more. And I think that's where people get mixed up is that it costs more, but it's a better deal. And so talent is a better deal.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
So what we outline is the job of the entrepreneur, risk. The reason that our compensation is outsized to our effort is because we're willing to take on risks that other people aren't. It doesn't always work out. Of course. But the thing is, if you think about it like that, let's say there's a casino, right? And you have a game where you've got a one in five shot at 100x payout.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Well, you should play that game every time knowing you're going to lose four out of five times. Because it's worth it for 100x payout. But you lose more times than you win. And that's the difficulty from the human brain perspective is that we see two, three losses in a row and we're like, oh, this doesn't work or I'm a failure or whatever. But it just may be intrinsic to how the game works.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so... Most volatility comes from lack of volume. And that's all the way down. So me trying to get my side business going, Etsy or whatever, I'm trying to get my little accounting or bookkeeping business started. They're like, clients are kind of sporadic. I'm getting one every other week or so.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
But if I took the whole year of the amount of promotional effort you did, and then I crunched it into a week, then you'd actually be able to have predictive metrics that make sense. It's just that you're having 100 conversations over,
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Six months and those hundred conversations create three deals And so it's like okay with what appears sporadic or what appears volatile is actually a function of low volume You're just not doing enough.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
We're not on a on a fast enough time horizon And so I think about this a lot whenever there's inconsistency I said do we just need to do a lot more so it becomes consistent and we have the illusion of inconsistency and But we just need to increase N by a hundredfold. And then all of a sudden it feels very consistent that 3% of conversations turn into customers.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And then all of a sudden now we have a business.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
No, the bonus one is basically my understanding of branding has, I feel like, also developed. So all three of these things are not new concepts. I feel like my understanding of them has evolved. And I look forward to deepening my understanding of them even more in the future. So I had a wonderful conversation with Ben Francis, who's the CEO of Gymshark.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
For those of you who don't know, he's like 32. They do a gazillion dollars a year. They're like number two biggest apparel brand in the UK. Really impressive, awesome guy. And we were talking about basically the ratio of branding versus asks direct response that is the right for a business. Now, everybody who's listened to this is like, I don't even know what he's talking about.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
But I'll tell you a story that he told me, and it changed my perspective. It was probably the most influential conversation I had of the year. So the CMO of New Balance got fired because they had 15 years of decline. So the new guy came in and he went to the CEO and said, hey, can I just swing for the fences here? Can I really, can I take a big bet? And the guy said, sure, go for it.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so what he did was they had 70% of their advertising budget going towards just, you know, discounts and deals and getting people to directly buy shoes. And then 30% was going towards like influencers, sponsorships, endorsements, more top of funnel awareness, like, you know, cool factor. And so what he did was he flipped it. And he made it 70% influencers and sponsorships and cool factor.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Branding. Branding, exactly. Positive associations for their ideal audience. And then 30% was, you know, hey, come buy the shoes. And so over the next 18 months, they just kept losing more money. And then on month 19, it just went boop. It started going up. And then it just shot up like a gun.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And they're having a complete rebirth right now. They're crushing it.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Yeah. You see, it's like it used to be dad shoes and Gen C girls who have like white socks pulled up going to the gym and New Balances. I'm like, what is happening? But there's a number of smaller lessons that I took from that. The first one is that branding happens at a delay. It's like he changed the behavior and it took 18 months in a big company that spends a lot of money.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so when I think about that for myself, it's like I'm living today based on work I did two years ago. And so you want to dig the well before you're thirsty. And so if I'm thinking to myself, what do I want two years from now? It's like I have to start digging for that water today. I need to plant that tree now.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so that was number one is just the delay between how long, basically when you need to start changing your behavior and when you see the result of that behavior. The second thing is founder-led companies tend to do significantly more investment in brand versus the corporate suit-owned guys because they are measured by quarters.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so that's why they tend to destroy companies over the long term because the day that you go shift from branding to 70% direct, hey, buy the shoes, for a period, you do better. You're pulling forward revenue. that's maturing, kind of like a fruit on a tree. It's like you're plucking some fruit a little bit early, but you end up filling the basket faster.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
But then there's no more fruit to pick because you haven't been planting new trees. Right. Interesting. And so that dramatically shifted. And it also had a quantifiable metric, too. And what's interesting about the 70-30 is that it's super well-studied. Because, so TV, Facebook, if you look at the ratio of posts to ads on your newsfeed, you look at the ratio of minutes on a show compared to ads.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
They've already studied this. They know how to maximize, okay, how do we put as many ads as possible without getting people to stop watching, right? And so the ratio is about three and a half. of basically good experiences to ads that has to occur. And so when you think 70-30, they're a little bit on the lower side. So for me, I take it as it'll probably be closer to 25-75.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Also, I'm assuming that they're rounding and numbers change. But the fact that it was in parallel with the same ratio that consistently delivers value and allows you to monetize. It corroborated different evidence that I had on different platforms.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
My book. I literally, this quarter, after looking at everything, I was like, because obviously I'm in the business space, and so it's not like I can sign C-Bama like Gymshark can and just get all the athletes and have them promote my thing. I can't get Elon Musk to promote me. As much as Elon, if you feel like it, let me know. I doubt it, and I say that with the most respect.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so I was like, within the context of business, there's really only two things that I can do. One is go do big aspirational things, which is what we're doing with our actual portfolio companies. And the other is help other people do those aspirational things, which I can do most effectively with leading with the books, leading with value. And so I'm pushing more into content.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
I'm pushing more into the books. The books are free. Unless you want a physical copy, obviously you can buy them. But like, those are big gives. And so I'm like, how do I put, and I'm looking at how much I'm spending on team and what the team is creating. relative to what the give versus ask ratio is. And so I'm going to be putting really heavy, I'm going to be doing more than 75%.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
I'm going to be putting like 95% towards it because I'm always happy to plant more trees for the future.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
it's both basically the call to actions I'll likely shift towards will be the book and from a content perspective I I'm using the same concept of the talent piece which is if I had the absolute best people in the world who could help me with the content that I have we could get 10 or 100x improvement in what we do and so I am going to be paying even more and I gave my whole team just massive raises and I also eliminated the people that I thought weren't
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
up to that standard or just weren't as invested, don't like business, things like that, right? Just good objective editors, things like that that didn't mesh with where we're trying to go.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Yeah, I see that as being kind, not nice. As long-term, I want somebody to have the opportunity to be at a company where they have a very long-term trajectory. They're aligned with the mission. And if someone isn't, I think the day that you realize they're not, you owe it to them. It's kind of like being out of a relationship.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
If you don't think you're going to marry somebody, I think the day you realize it, you should release them to free agency. Because somebody else will, and they are the right person. There's a company out there that they're best for. And even though those conversations can be trying in the short term, I've seen it work out so many times that I have limited emotional affect when approaching them.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Because I'm like, I know this is going to be better for you. I know this sucks right now. But you will not go homeless and you will not die. Right, right. You'll figure it out. You'll figure it out. You will be okay. Yes. And we obviously, you know, we do our best to try and make recommendations.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Yeah.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And all three of those things are aligned. What's the one big thing? If I can continue to 10X the brand, that's the focus. What do I need for that? I need the absolute best people. And then how do I back that up? With dollars and cents and time, the only resources I have. And so I'm putting all my resources into doubling down on that.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Only think about the actions and not about anything else.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
um ever i mean honestly a lot of it was what other people would say it's so weird because it's so foreign to me at this point but i remember that the most terrifying thing that i ever did was quit my job it was the most terrifying thing was the hardest thing i've ever done for sure bar none not even close the hardest thing i ever did was quit my job i belabored the decision for six months i held every friend i had i wasn't sure i would i remember just pacing in my in my tiny little condo back and forth just on these endless phone calls where i just loop in circles it'd be like how
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
I don't know, but I mean, but I really wanted to, but I could fail, but what if I fail? You know, like there's all this nonsense, right? And so the thing that ultimately allowed me to get over the hump was actually playing out the worst case scenario in exquisite detail. Like most of the reason that we're afraid to fail is because we're afraid of dying in an abstract reality.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
we think, oh, we catastrophize. Okay, I'll lose my job and then no one will like me and then I won't be able to get a job again and then I'll be homeless and then I'll die. That's how we go, right? But when I thought through it, I was like, what would actually happen? So if I went there and I failed, what would I do? I was like, well, I'd apply to business school
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
and I'd have this cool story and they like entrepreneurs or people who tried to do things. So this would actually, this would be fine. This would be okay. And I have plenty of friends who would let me sleep on the couch.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
If I had to, I could go back to mom and dad's house with my tail between my legs, which I felt it was, was that was honestly the most horrifying thing that I could imagine going back home as a failure. Yes. Um, but the idea, the one that, that got me out of it was I can always get the job back. Mm hmm. So this is actually a significantly lower risk move than I'm perceiving it to be.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
I can get the job back. Or I can get another job that's comparable. I have the experience. And me doing all this stuff only makes me more valuable because I'll have a cooler story than somebody who just did four years of this job rather than two and then did two years of things on their own. And so that was actually the one argument The secondary argument was for me, I was young at the time.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
I was like, this is extremely hard to do. If you say, cause I used to always tell people like, yeah, and I'd like to own my own business someday. Like, it's almost like you like tag it on to like, what's your, what do you do now? And I'd like to. And so I, I thought to myself, if it's this hard now, when I have no kids, I have no wife, I have no steaks.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
it's gonna be nearly impossible for me to do later. And so I was like, I have to do it now. And so I'm actually a very risk averse person, despite the fact that I am a quote entrepreneur now. I guess they're not quotes, I guess I am an entrepreneur. I think it's just because the influencer was so like, everybody's like, everybody's an entrepreneur.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
But those were the two strongest arguments that got me to take the plunge and make the bet.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
I don't know what that means.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
I don't, So I define everything by actions because it's the only thing that's observable.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Yeah. I mean, at the most basic level, yes. And then, you know, one level above that, I'd be like, money is exchanged for goods and services. And parties, when they make exchange, both parties are better off. The person who sells the goods and services believes they'll be better off if they had the money.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And the person who buys the goods and services feels like they'd be better off if they buy the goods and services. And so it's a mutual exchange. Both people say thank you, which is why capitalism is wonderful. But the point is that You have to look at, and I like people starting out with service-based businesses because when you ask the question, does somebody need to have money?
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
No, usually you have time. The first rule of entrepreneurship is you use what you have. First rule.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Yeah. And so that's because everyone focuses on resources rather than resourcefulness. And so every self-made billionaire and millionaire was in the exact same position as you because they were self-made, which means that you have the same exact ingredients they had, which is nothing, but also nothing to lose. And that's what makes you the most dangerous player on the board.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And that's the piece that I think anyone who starts out misses. You're the one, if you lose it all, you're still at zero. You have unlimited shots on goal. It's like life gives you a lottery ticket and you're like, well, what if I lose? It's like, well, the lottery ticket's free and you can keep cashing it in until you win.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so you might start a car detailing business or you might start a lawn care business. And the thing is, is that everyone has this fallacy that the first thing they pick is going to be the last thing they pick. They think that's going to be their business forever. But I've had a lot of businesses over my career. And you learn it each time.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Like every business I've had, I've, I learned lessons from the ones before that, before I moved on. And it took me, it took me nine businesses before I actually had my like first real successful one, uh, with gym launch.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
I shy away from things that I can't define. And so I function 100% in the observable reality. And when someone says, I have manifested this, I would say if you have a set of beliefs that you repeated on a regular basis that then changed your behavior, the behavior is what created this outcome, not what you repeat to yourself.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
and so as long as whatever you do translates into changing what you do in reality then then great whatever whatever it takes for you to do there but i just focus ruthlessly on that because how do you how do you know someone's like he's really motivated you can't see if someone's motivated until after they've taken action which means do i need to be motivated at all i actually need to do something right and that makes for me this has made business teaching people training
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
learning so much easier. Because what happens is if someone's good at something, a lot of times getting good at something and then teaching someone else to do that thing are two very different skills. And so people who don't know how to teach or train then add a lot of energy and mindset and all this stuff. But it's like, dude, just do this. Just do this.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so what happens is we have these terms. So people are like, man, I want to be more charismatic, for example, right? Well, if I looked at someone and said, be charismatic, What do you do? You can't do anything with that. And so what happens is we have these, I call them bundled terms. And so it's these words that actually have a laundry list of behavior underneath of them.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
So be charismatic really might mean when you walk into a room, stand up straight. When you talk, talk louder. When you shake someone's hand, grip them firmly, look in the eye, try and say their name as many times as possible. When someone's talking, you're doing it right now, nod your head. It shows that you're listening.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And over time, if you do this laundry list, and there's more, people will begin to describe you as charismatic. But if I said, be charismatic, it's useless. But if I said, do all of these things, then all of a sudden, people would then say, charisma has occurred.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so in training people to do things in the companies that we have, and also in trying to train myself to do stuff, because I try to learn all the time, I see the purpose of life as learning, as changing my behavior.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
How can, if someone has a skill that I want, I just, instead of looking at, and I don't even listen to what they say, because a lot of times they don't know why they're that way either. I just try and look at what did they do that was different than what I'm doing and try and compare their reality versus mine and say, oh, I need to do this. Ah, now it works.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And all of a sudden people describe me in that way. And so trying to operationalize as many words as possible that are amorphous is how I've made sense of reality.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Honestly, not really. I like to always know what I make per minute because that so I'll say I'll rewind the clock in terms of the things that I have now, I think, are a result of behaviors that I did in the past that I haven't changed. And it's just I have more time under my belt.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so I think one of the big misconceptions of people who are starting out is that the amount of results you get in the beginning for correct behaviors are not indicative of how correct the behavior is. And so the first week you go to the gym, you're not really going to see anything. It doesn't mean that going to the gym is wrong. It just means that your results are going to come out of delay.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so for me, it's like I checked my bank account every single day for years until I had more money that didn't make sense anymore because the volatility of the things I was invested in made it irrelevant. But I call it having a pulse on the money. You need to know where it's going and where it's coming from.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And when you have that pulse, all of a sudden you're like, I know what an expense that costs $500 means to my bank account. And I know what a $1,000 check means to my bank account. And all of a sudden, I started seeing my expenses as bundled time. So I remember the first time I had this realization. I used to work at a minimum wage job at a Smoothie King. I was a blender tender.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
So I made $6.75 an hour.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so I remember my coworkers, it was like three or four people to a shift. They would go get lunch at Cosi, which was next door. It was like a sandwich shop. And I went with them one day. And I bought a normal meal, and I think it was $12, something like that. And you're like, dang, that's two hours. Exactly. And I was like, wait, I'm only working a five-hour shift.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And I'm using post-tax dollars. And I was like, if I do this every time I'm here, I only get credit for three of the hours that I'm working.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so immediately I was like, wait, I'm going to cut my work efficiency in half every time I go to eat lunch out while I'm here. And so I was like, oh, I have to change that.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
But then as soon as I realized that, you know, when I go to the mall on the weekend, because that's what you do when you're, you know, 15 or whatever, I would look at, you know, a new shirt from The Gap, which was cool back then. Yeah. And I would look at it and it was like $30.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And I was like, man, if someone if my boss came to me at the beginning of the shift and said, hey, work a whole shift and I'll give you this T-shirt, I'd be like,
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
nah I don't want to do that and so in thinking about how much time it took me to pay for things all of a sudden a lot of stuff wasn't worth it and so it shifted so from a my relationship with money is more like what what did it change about how I spent and bought sorry how I spent and and how I acted to make more and so I um I've always been a saver in terms of I always live below my means um I don't if like the first rule of money is spend less than you make
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
First rule of money. You don't need to listen to anything else. You don't need to do any investing. Nothing else. The first rule of money is spend less than you make. The second rule of money is take what's left over and invest it in making more money.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And I think the big piece, especially people who are starting out, miss out, is that they expect that they're going to get rich as rich people get richer. And it's a different strategy. when you're starting out, you have to think about how you're going to make money while you're awake, not while you're asleep.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
The only reason that people who are really rich think about how to make money while they're asleep is because they've already maxed out their waking hours. And they can't put more time into investments. And so they have to, by consequence, pick passive things. to make money, but they already maxed out their active. Currently, you haven't maxed out your active.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And the returns on active are significantly higher and lower risk than passive income opportunities. So for example, if I were in a, you know, it's about to be winter time in most of the U.S., If there's snow in the area that you're at, you could probably buy a push snowblower for a couple, I don't know what the rate of snowblower, call it a thousand bucks, right?
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And you could use a shovel in the beginning and you might be able to do two, maybe three big driveways in a day. Okay. If you have a snowblower, you might be able to do 20. And if you have that, then you just seven extra earning capacity. And so it's a small, like what $1,000 stock is gonna 7X your pay? Nothing.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so I think people wildly, wildly undervalue the active investments where you put a little bit of capital and a lot of time and how much that capital multiplies what you make with your time. And so that's obviously in the physical labor where you have a machine that helps you out. But even on knowledge-based work,
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
The one of the highest leverage things I did is I paid a guy who knew how to run Facebook ads. I didn't know how to run them. I had a gym. I knew. OK, because I'd like looked online and stuff. But I knew I was like, I need to get better at this. And so I went to I went to three different agency owners and they all pitched me their services. And I said, honestly, I couldn't afford it.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so I said, what would it take for you? This is the question. What would it take? for you to teach me how to run ads. And I was like, I'll pay you every hour. He's like, I don't sell my time. And I was like, it's America. Everybody sells their time. Yeah, how much? Yeah, exactly. What would it take? And he said, $750 an hour, which to me was an unbelievable amount of money at the time.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so I said, OK, deal. And I said, but the terms are, I have to have my hands on the computer, not you. And you need to tell me what to do, and then I have to do it. And then if you change something, I need to understand the decision making behind it. Why you did that. Exactly. And so it took me eight sessions with this guy. Eight one-hour sessions.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Oh, he asked for $5,000 a month. And I was like, oh, my God, I can't afford that. But every time I would do it, and then I'd record it, and then I'd rewatch it a couple times. I would take notes. And then the next one, I was like the best student ever, right? But by the sixth time, I got it. And by the eighth time, I was like, I don't need this guy anymore. I get it.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so that $6,000 investment made me millions of dollars in my life because I knew how to advertise. And I didn't know how to advertise before. I could get leads. I could call them and close them and bring them to my gyms. And then eventually I showed other gyms how to do the same thing that I did. And so... This is the leverage, right? How do you get more of what you put in?
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And the biggest and best investment that you can make is in your own skill set. Because skills are the ultimate hedge against inflation. They're the hedge against currency changes. People are like, what's going to happen to the dollar? Doctors are going to get paid in seashells or Bitcoin or US dollars. It doesn't matter. If you have value to exchange, the world will exchange for it.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so that's the big thing that I think people who are starting out miss.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
You need to learn to advertise. So if you think about it in sequence, right? If you start a business, what are the contingencies? If no one knows you exist, no one can buy your stuff. And so you have to first let people know you exist. So it begins with advertising. Now, advertising doesn't mean you have to run paid ads. I say advertise. I define that as letting people know about your stuff.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so you can let people know one-on-one via outreach. You can DM. You can email. You can phone call. You can knock on doors. All that's one-on-one. You can make content. You can post on public platforms. You can stand on the sidewalk and shout. It's one to many, right? And the third way you can do it is you can run ads.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
The fourth and kind of like secret or more advanced ways that you can use those, to then go get somebody who already has that audience that you want. So you get an affiliate to then prefer you business. And that's an amazing strategy. But in order to get in touch with those, you reach out one-on-one, you make content, or you run ads.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
So those are going to be the core things that you're going to be able to do. And so in the beginning, you have to do that to get the first interest. Now, I think where people make mistakes is, They then double down on that at that stage. Oh, this worked. I should do more, which is a logical thing to think.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
But long term, the product is going to be the thing that's going to allow you to scale really, really big. Now, don't get me wrong. You can make a few million dollars a year, $10 million a year being a really good marketer, being a really good promoter. You get limited at a certain point because you burn through a marketplace because people understand the concept of word of mouth.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
They're like, yeah, you want to have word of mouth. But what they fail to realize is that negative word of mouth is significantly stronger and more viral.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so all of a sudden, when their advertising stops working or their cost to our customers doubles and triples, but the cost on the platform hasn't doubled or tripled, it means that you have an invisible hand that's suppressing your results, which is that somebody who would have bought heard that you're not good or heard that you're even mediocre and just decides not to.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And we do this all the time. You're like, I was thinking about checking out that restaurant. It's like, I went. And that's it. It's done. Just like that. And you would have gone if that person hadn't said anything. I was going to go to that movie. How was it? I mean, it was okay. Done. You're not going. That's it. And so people overestimate.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
It's so hard to get positive word of mouth, and it's so easy to get negative word of mouth. And that's what suppresses you long term. So in the beginning, you advertise. then you maintain that level of advertising to continue to iterate the product because you need to get the people in.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And this is the unfortunate part, but you bring people in knowing your product's not that good and you just do the best you can and you keep making it better and better and better until you get people to stick or get people to come back. And so if you have a membership business, it's obvious you want people to not cancel.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
If you have a consumer business, like if you sell coffee, you sell Coca-Cola, whatever it is, it's how reoccurring is the revenue. How likely does that person who buys your coffee come back again to buy coffee, whether it's a shop or it's a product, doesn't matter.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so once you know that people are coming back, it means you fixed the product sufficiently, that now you go back to the advertising and then you double down, you go crazy on it.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
You know where I'm going with this one. So my favorite ism that I like is don't invest in the S&P 500. It's invest in the S&ME 500. Because you will get so much more on active income by investing the small amount you have into increasing your earning capacity than you ever would. Just think about the dollars here. So let's say that you had $1,000 saved up.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
If you invest in Apple, whatever, you'll have a 20% gain this year, a 30% gain this year. Okay, great. So now you have $1,300. But $1,000 can teach you a new lesson or a new skill that can take your earning capacity. Because if you only have $1,000 saved up, you either make very little money or you're not following the first rule, which is you've got to spend way less than you make.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so if you're on the I don't make a lot of money part, by the way, you can still definitely save more, but if you're on the I don't make a lot of money part, then doubling your earning capacity would, by the end of the year, you might have $30,000 saved up rather than one or 1,300 in the alternative scenario. It's not even close. It's an order of magnitude difference. It's not even close.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
But everyone's afraid of work, and everyone wants to get rich quick, which is why lotteries continue to make money. And so if you can just get out of that basic fallacy that you're somehow going to get lucky, I would rather get rich for sure. That's for me. Success insurance is extending the time horizon and being willing to learn skills along the way. That's success insurance.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Play out the other scenario. If you actually do hit the lottery, you also lose it because you don't have the skills to keep it. It's true. So the other path is pure fallacious thinking. It's false. It's a false dream. It's never going to result in wealth. If you get rich quick, you get poor even faster.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
If you get rich quick, you get poor even faster. Why? Because you don't... So my favorite magic card... Hold on. I'm going to bring it back. My favorite magic card was this card called Burning Wish in Magic the Gathering. And the flavor text on the card said, She wished for a weapon, but not the skill to wield it. And I always loved that text because I thought about that as business, as money.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
It's like we wish for money, but not the skill to wield it. Because money is just a potential for exchange. And so if you don't know how to make it, then everything you have is just a nut that's going to go down. Because you also don't know how to multiply it if you got lucky. Because anybody who wants to get rich quick only is relying on luck. You're relying on chance. You're gambling.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
You're not investing. And so if you want to play the game, and unfortunately, the tweets, the Instagram posts, the whatever, we see someone screenshot when they go from $10,000 to $1.5 million. You just don't see the other 100 people or 1,000 people who put $10,000 and went to $1. And so, the idea is, I wanna get rich for sure.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And the surefire way to get rich, and the reason all these billionaires get up there and they say, hey, just invest in skills, and it's like, sure, it's because that's the only thing that protects you. And I come from a country, or my father comes from a country, rather, where my family, everything we have is taken from us. by the government.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so it's very real that you may have to start over halfway through your life at zero. And if you do lose it all, the only thing you have is what you can do with your brains and your hands. And so my grandfather, who I was very, very close with, used to always say, you have two hands and one brain, use them. And my father came here with $1,000 and he built the life that he has now.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
So there have been, I would say, Two really key ones and a third kind of bonus. So the first big one was my understanding of focus has changed. And so if we were to define focus as the quality and quantity of things that we say no to, right? Because the most focused person would do nothing but one thing.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
He's a doctor. But that was only possible because he had skills. And even though everything was taken, land, houses, everything was taken, you can't take no divorce, no tax, no government can confiscate who you are and what you can do. And I see that as the ultimate freedom and independence of excellence and representation of excellence.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so I will, first off, I don't know what money wounds are, but if I can define it the way I would define what you're saying. So it's like bad money beliefs, money wounds, money trauma, bad money energy, all of that I'd bucket into bad behaviors under specific conditions, which is that you don't know how to behave with money. That's all it is.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Well, you just follow very simple rules. The first rule is that you spend less than you make, period. No questions asked. That's it.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
So I think it's thinking in ratios. So it's like, I will save this percent. I will spend this percent. This percent goes to my house or my lodging. This goes to food. And you just have to stick with it. Now, I think that that process is good to go through. But I agree that when you don't make a lot of money, what feels like a lot of sacrifice results in very low payoff.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And that's why I'm bullish on put as much as you can in increasing your earning capacity.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Yeah. And the thing is, is you don't have to you don't have to buy. So you really only have to have one skill and then you can get everyone every other skill you need in your life. And so when I when I got into the business game, the only real skill I developed quickly was sales. And I even have that skill, but I had to for the gym. So I learned how to sell. I got pretty good at it.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so I would go to these networking things. I would meet other business owners. And I felt like I was a collector of fine skills. I would find people, and I'd be like, hey, how do you get customers? And somebody would be like, oh, I'm really good at Google PPC. And I'd be like, ooh, I don't know how to do that. That sounds interesting.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so what I would do is I'd go and say, hey, what's your sales process look like? And they'd be like, oh, you know, it's okay. And I'd be like, hey, do you mind if I just like, I'm pretty good at it and I can walk you through what we do because I might help you out. And so then this is the key part.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
If they said yes, which plenty of people take free work, I would then treat it as though they had paid me for like a $10,000 like consulting gig. I would do tons of research. I would talk to the team. I would re-script what they had. And then I would train their team on how to manage it. And this is when you know you did it right. I would present it to them as though I was making a presentation.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And they'd be like, dude, this is too much, man. Like, whoa. And then the magic thing comes out. They say, what can I do for you? And I'd be like, it's funny you ask. Can you show me your PPC stuff? And the thing is that they would give me less than I gave them, but it was more than I had. And so it was a net positive gain.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so you only need to develop one skill, and then you can barter for everything else. So in the networking groups that I joined, I got voted the best member of the year in the first year they ever had it. When I was in my fraternity back in the day, I became voted president. When I was in high school, I was editor-in-chief of the literary magazine and vice editor of the newspaper.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
I always try to like, how can I trade what I know? How can I just keep trading up? And that's fundamentally what I've done my whole life is just trade up. And the risk here is that let's say you do all this work and the guy says, thanks, and then just gets off the call. Well, there's two possible scenarios. One is you're not as good as you think you are.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
or they don't function with reciprocity. And that's okay. Because again, volatility only appears volatile with low volume. Yeah, you gotta do it a lot of times. If you do it 100 people, you'll get what you want. And if there's three guys who know PPC, you give to all three and maybe one of them helps you out. Absolutely. But you're still better off than you were before.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so this is how I leapfrogged in my earning capacity. Really? Oh, 100%. And then for the people I couldn't, I would do a favor and ask to pay them. You know what I mean? I would do whatever I could. And I would encourage people to... I spend so much money for one-on-one time. And I also think there's something very powerful about being in person.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so anything that's not that thing would make you less focused if that's the definition of what focus is. But I've thought about it like it's almost like wine where like as it ages, there's more nuance and there's more depth to the flavor.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Yeah, I think there's something, I think that you can observe far more behaviors in person. There's so many things that are lost on Zoom.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
I spent $350,000 for an hour.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Yeah.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
A guy who was worth $7 billion.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
I think that there's something powerful about knowing that someone who is much further ahead says it to you. And it's not that that advice is something you haven't heard before, but it's the advice that you needed to hear right now. And that was what I needed to hear. Wow.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
You can only control what you do. And so the Stoic approach to this is that you know the truth. And, you know, there's the whole like, you know, bad, bad news. Lies get out of get around the world before, you know, the truth gets out of bed. But I see lies a lot. So Warren Buffett says this about the stock market. He says in the short term, it's a popularity contest.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
In the long term, it's a weighing system. And I see reputation the same way, which is in the short term, somebody could make some viral thing about you or they make some piece of content, some hit piece, whatever it is. But if you do right by the values that you have on a long enough time horizon, you touch enough people, the surface area of your reputation compounds.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Because it's not just that you do business with one person, but as soon as... Because if you do grow in your reputation, then more people will ask about you to the people who have met you. And then they will give their opinion, just kind of like the movie before or the... The restaurant. Yeah, exactly. And so if every person who has done business with you is like... He's tough but fair.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Or like, he's very ethical. Or like, you know what? I would trust him with money. You know what I mean? If you have that core set of beliefs and you behave consistent with that, those bundled terms, I want people to think these things about me. What are the behaviors I have to do in order to get them to think that? I'll give you a story about this.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And I feel like as my entrepreneurial journey has has like progressed, my understanding of what focus means has changed because it's actually like focus from the top. It's literally from the top all the way down, meaning the company needs to focus on one thing, not five.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
So when I was in college, I had a bad reputation with women.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
uh in my freshman year i went from high school where it was small you know small pond and i kind of ruined my reputation there and so i went to like a new area where like no one knew me and i was like oh this is like it's like virgin land right um not with the pun intended uh but i went to college and i very quickly got the same reputation in weeks yeah oh wow and so i went home
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
depressed and I went to my dad and I was like man I was like how do I get all these people to stop saying that I'm you know a man whore or whatever and like that I'm just like this guy who just goes around and sleeps with girls uh because it's preventing me from sleeping with And he said, and I had all these ideas of like, maybe I could do this or I could, like I had all these like strategies.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And he said, have you considered not acting like a whore?
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Yeah. And I was like, no, no, it can't be that. And so, but it's like as a kid, like you, you know, for the parents, they are listening, right? I dismissed it immediately. But, you know, on the flight back and in thinking when I'm, you know, sitting there alone in my dorm, I was like, maybe I do need to just stop acting this way.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so what ended up happening is I decided, I was like, I'm going to be someone that I want to be proud of. I want to be proud to associate me with me because I want a different caliber of girl. And that caliber of girl is not going to go for this, you know, this guy who's always chatting up. Like, I want a good quality girl. Not just hot, but good character.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And it took basically two full semesters of me acting like a priest, basically, and just like doing well in school, studying hard, just, you know, being a contributing member of society that all of a sudden, like more like the reputation started to change. But like the New Balance reputation, it took time.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so it's like there's this period of time that you have to go through and be willing because right now you are living through consequences of actions you took last year, five years ago. And so you have to be able to split it without getting the reward for it. And that's the hard part. And that's the part that no one's willing to go through.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
This is a really good point. So the reason I think it's so hard for people back home, right? So for anybody who's ever left home and you go back and people treat you a certain way. They knew you for 20 years. Exactly. And what's interesting is imagine over, imagine you went to high school with somebody and middle school. All right.
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Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And if we have five objectives for the year, it's because we, me personally, I haven't done my job because one of those things is the most important. And if I can't tell my team this is the most important, then how am I going to expect them to make that judgment without the context that I have? And so it's like being willing to make the hard call.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
So it's like they had eight years with you and they had every single day, they had hours and hours of exposure. You go back and they have two days a year during the holidays to see you. Well, it's like, okay, well, two days out of 10,000 were this way. Yeah, yeah. It's almost never going to outweigh it. I've given a lot of thought to this because I was like, why can't I change everyone's mind?
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Because I have changed so much. But the reality was that the exposure required to change their perception of me was greater than the time that I was willing to dedicate to it.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Exactly. And then the trade-off is, is it worth it? No, it's not.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And I'll make this point to anybody who's in that situation where you're like, man, I don't want to be like these people. I don't want to be like my friends that I have right now.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
is that you have to be willing to accept that you may lose those friends or you probably will lose those friends but you will gain many more with the caliber of person that you want to become and you'll get caliber friends that match it but there is a transition period where you'll have neither it's tough man for about a decade i felt like i didn't have many friends i felt like all my childhood high school college friends
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
yeah and i think um well two parts one is the people who hate it or the people who don't accept the new version of you they downplay your success for being willing to take a risk that they were unwilling to take because like your success makes them feel bad whether they whether they say it or not it does because humans are comparative creatures we look at one another that's i mean we learn through modeling we see what someone else does and if they did something that we aren't willing to do and they have something that we don't have we start not liking them because what does that mean about me
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so the what does that mean about me? It's much easier to say he's changed and he sucks now rather than saying I didn't and I suck. So hard. Because the people who don't know how to say you've grown say you've changed and they say it like it's a bad thing. And I think the simple response to that is and you have it. And I think it's being willing to sit in that and be like, I'm okay with this.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And I have lost almost every friend, or rather I could say I have actively cut off every friend that I've had from the beginning. I have one friend that I still have from middle school, one friend. But basically no one else. And that one friend is because he is a champion. Like he's a cheerleader. He has a different life, but he's just like, dude, go get it. He's not criticizing you.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And I think a lot of people are afraid of making it. And the more I've doubled down on saying, if I have to choose one thing, you think differently. So like, for example, if I said, you know, Lewis, what one thing, if you could only have one thing happen in 12 months, what would reality need to look like in 12 months for you to hit your goal?
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And he's also not a money guy. He's an FBI agent. And so he's exceptional at what he does. It's just not money related. So we have this perfect thing where neither of us, we have no competitive overlap. So I'm like, how many drug rings did you bust this month? He's like, dude, let me tell you, these Syrians, this whole gang I took down. And so I get to hear this whole thing.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
He's like, what deals have you done? Because we get to kind of live vicariously. But those relationships are rare. And if you find somebody who speaks well of you behind your back and talks to you to your face... Those are the friends that are worth keeping.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And if you can find somebody who can do both of those without flipping every conversation and making it about themselves, I think you have somebody who's worth keeping. But most people don't even meet one of those criteria, let alone all three.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
you have to be willing to trade the things you love right now for the things you want and you may not like the price of what you want but you can't change the price and so there's all this groveling that goes back and forth for younger men of like basically wishing it didn't cost this much time or cost as much failure or cost as much risk in order to get to where they want to go and so they basically stomp their heels and then you know retreat inwards into their basement and video games and whatever else
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
rather than confronting their own inadequacy because the first thing you have to do is say it's my fault everything that i have in my life is my fault but if it's your fault it's also under your control to change because you cannot change what you do not control and so to me it's taking full accountability so that's number one um the the second thing is
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
if you want to change your behavior, change your conditions. And so one of the most powerful things that you can do is change who you surround yourself with and where you live. And so if you have an environment of people around you who speak ill of you or like basically reinforce the wrong traits and the wrong actions, there's a reason I left Baltimore. And there's a reason you left, right?
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
As I went to where I thought, I was like, I want to get into fitness. And so I was between Miami and Southern California. I was like, those are kind of the fitness capitals. I'm going to go to one of those places because I want to do fitness and I want to be around the best. And so Baltimore is not the capital of fitness.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so me changing my environment allowed me basically a blank slate to start behaving the way that I wanted without interference. Because a lot of people have interference in their surroundings. And so I think it's a lot of times you have to, well, I think this leads to the third thing. So you change your environment. That's number two. The third is delete everything.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
That is not getting you closer to your goals. And so I have used that. This razor has not changed in my life, which is my probably the two most often asked questions that I have that I like mentally think I probably think of 10 times, 20 times a day is number one. Does this action, this person, this decision increase or decrease the likelihood that I achieve my goals? Yes or no.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Like what one thing, if that only thing happened, the rest of your goals would either be accomplished or become irrelevant as a consequence, which is the more common one. And so in thinking about that, like this was four years ago, the big thing that I had was like, if I just built a big business brand, then I don't need to be the best picker of investments. I don't need to be the best negotiator.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Does it increase or decrease? Does this friend who always wants to go out, does you playing fantasy football increase or decrease the likelihood that you hit your goals? And then it's just, it's black and white. It's pretty, like, you know, it's pretty, like, you know. Now you can make the whole, like, but shouldn't I have a, I'm talking about winning.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
If you want to talk about fulfillment and all the joy and all that stuff, I'm not the guy for that.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
I like looking back and enjoy it because memories pay dividends in the future. And so suffering lasts only for a moment, but the memory of the achievement lasts forever. And for me, I love looking back on what I've done only insofar as it excites me about what's to come. And so delete everything using that question. And the second question, which is my prop, it might be my favorite question.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
It might be my favorite question in general, which is what would it take? And the reason I love that question is because it assumes success. So if you go up to some girl who's way out of your league and you're like, what would it take? it assumes that she's going to go out with you.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Fine, right.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Either you don't like the shoes or you don't like the price. You gotta pay it if you want it. And so what would it take? And it's like, hey, if we have a deal that we're working on, what would it take? Now you can make the decision whether the price tag's worth it, but at least you learn the price.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And what I have found in my life is that when I try to answer those questions, like what would it take for me to be number one in this field? What would it take for us to lead this market? What would it take for me to be the best salesman in this company? The answers are not as crazy as you'd think. And so a lot of people spend most of their time answering questions not worth answering.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
It's playing games that aren't worth playing. It's like if you play stupid games, you win stupid prizes. And so no one asks the question before they play the game, is this game worth it? And so when you ask the question of what is the big goal and what would it take then you just get to solve for it. And to me, it's just great.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
If I know what it is, then either I have those resources or I have to use my resourcefulness to get them. But it's under my control. And these are how the big leaps in my life have occurred. When I wanted to get in the gym business, I was like, okay, what would make it the highest likelihood that I hit my goals? So what I did was I joined, I said, I'd say $50,000, 23 years old. I lived on nothing.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
I said $50,000 and I traveled to California because I was like, all the best fitness people are here. Then I joined a gym mastermind of all gym owners. I didn't own a gym. I joined a gym mastermind without owning a gym. And he was like, you sure? And I was like, yeah. He's like, why? I was like, well, I think I'll learn from everyone else's mistakes before I start. Smart.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Right, so the first thing I said, I was like, where do you guys open? One guy's like, oh, I have a terrible location. I wouldn't have done this. Another guy's like, oh, I, my, and then the guys who had the best location, it's like, what was it? Okay, well, how many square feet should I have? Oh, how should I organize the gym? What equipment? Oh, no. Should I buy or lease my equipment? Exactly.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
I thought I was going to, they're like, oh, don't buy those. They're really expensive. I thought I was going to use them. No one uses them. Oh, yeah, girls trip on those. Don't use them. And so I was like, uh-huh, uh-huh. I was just taking all these notes.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
because I'll have more proprietary deal flow. So people will want to, they'll just want to come invest with me or have me invest in them. And I'll be able to pick the best company because I'll get more at bats than anyone. And I don't need to be a pro negotiator because people want to do a deal rather than just like auctioning off between me and 10 other parties.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so then I was like, okay, if I'm around the best gym owners and I'm learning from them, then I can be at year 10 in my career on my first year because if I do what the best people did, I will get what the best people got. And so I've always just focused on what did they do? Forget the energy, forget the manifestation, forget the vibrations and the frequency. Like, what did they do?
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
I will do that. And not only will I do that, I'll do way more of it because I don't wanna just pace them, I wanna beat them. And so, like Kobe, it's like if he's working out, if the best guys are working out twice a day, he's like, well, I gotta work out three times a day because they're already ahead of me.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
So if I'm working out twice a day and they're working out twice a day, then we're gonna advance at the same pace. But I gotta work out three times a day. If this guy's doing $100 a day ad spend, I gotta spend $500 a day. If this guy's doing one piece of content, I gotta make 10 because he's better at it than I am. So I have to make 10 just to make up for my skill deficiency.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so again, this volatility is a consequence of volume, is that you're typically just not doing enough. And the people who outwork you, they out output you. And I'll give you a really simple example that will demonstrate this, that it's very real. So in a company, so I just took over operating one of the divisions. on the media side.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And the first, you know, day I came in, I was like, okay, so, you know, what are we going to do? And so they're like this. I was like, okay, what are we going to get done by? And they're like, you know, next meeting, which is like the next Monday is a weekly meeting. And I was like, okay, how many hours does that take? They were like, I don't know, probably like four hours to do this thing.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Exactly. And then I was like, okay, well, it's noon. Let's meet at four. I'll give you an extra hour. And show me what you did. And then we met four hours later. It was done. And then I was like, okay, well, what can you do tonight so that we can do tomorrow morning? And he said this thing. So we just moved the buck along. And in three days, we did three months of work.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Because if you think there was 12 actions that had happened and you had a one-week cadence, in a very real way, we moved forward at 20 times the pace. And so a lot of people think that it's not speed of activity, it's elimination of waste. There's all these other things that people are distracting themselves with.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so if you were that young man, you have to recognize the trade-offs that you have to be willing to make. You have to change your environment so you can change your behavior. And you have to delete everything that's not the thing that you want most. And if you can't decide what you want most, then that's what you need to do first. But once you know what you want, then go get it. Yeah.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
So if we define traits as bundled terms, right, which means that there's just series of behaviors that bundle into one word, convenient for communication, hard for training, is that you know what, there's actually just a hundred small skills that you need. And I think demystifying this makes it easier. So it's like, I want to be confident.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so it's like, if I can just, what's that one thing for this year? And I think where kind of strategy comes into things is by forcing that focus and saying no to the other things, you get really, really selective. And that's at the top level.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Well, confident is an approximation of how statistically likely something is to occur. So in statistics, you have a confidence metric. How likely is this thing to occur? And so if you... want to be more confident, it means you need to do enough repetitions that you can make a statistical prediction that it's likely.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
If I go up on stage a hundred times in a row, I do the same presentation and I get up there like, how are you so confident? I'm like, because I've done this a hundred times and I know how this is going to go because I've done it before. And so people want the confidence before the reps. But especially in confidence, the proof comes before the pudding.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
You have to do the reps before people are like, wow. Because you can't fake, I mean, you can fake confidence, but not to yourself. You'll know. And as far as I'm concerned in life, I'm the only one I'm trying to impress. And so if I know I'm fake, I'm the one who in the middle of the night is looking up being like, I can't believe I'm so full. I would hate that. It's an empty life.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
It's also living for other people. And so... If the toxic trade is people wanting the outcome without the repetition, right? It's without the price. That's how I say that's number one. Let me see, what are they saying? I'm trying to think of like a really specific thing. Well, the second one is, has everything to do, it's offshoot, but it's entitlement, right?
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Is fundamentally believing you deserve things and that the world must accommodate you.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
I think parenting in the school system has made it so that you can have a safe room and you can have a cry corner. And if you think that one plus one is five, this is emotionally safe for you. I don't want you to feel... The thing is you can't change reality.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so you can believe whatever you want, but if your actions aren't aligned with how the world works, you're not going to get what you want. And you're going to be very upset for a long time until you figure out that the universe doesn't bend to your will.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
No.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
I play within the realm of reality.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
I think that the universe anthropomorphizes it so I don't humanize it and say it wants anything.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Yes, based on reality. And if I had said I want to become the best business guy and then sung songs every day, that's not going to be a line. Now, I can manifest all I want, but that's not going to be the thing that makes me the best businessman. And so I don't get to set those rules, but I can play by them.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
For this next year.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And I think a lot of men specifically waste a tremendous amount of time stomping their feet, demanding that the world be different than it is. And so to me, that's a loser's mentality. And they then spend more time defending their excuses than defending their ambitions.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so if you put all of the effort into how do I make this thing into reality rather than how do I excuse my behavior up to this point? Winners think about... what they can make happen, and losers think about what happened to them. And it's one flip of a switch, which is I will judge myself on what I do and what I make happen, not what occurred.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And I think that divorcing those things is like, and this is a freeing thought for me, it's a little bit heady, so maybe your audience will like it. The past doesn't exist except for in your mind. It's gone. It's gone. We only have this moment, and then this will be gone, right? And it only exists in our memory.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
So this year was actually developing like a farm system for the portfolio.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so I have this mental idea where, what if I woke up one day, I got hit with a shovel, and all these things, I forgot about them. What does it change? And so a lot of people are like, I need to process my trauma. I'm going to get into this, because I think there's somebody who's listening to this, and this could change their life.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
I define trauma as a permanent change in behavior from an aversive experience, from a bad thing that happened. Now, does that mean that trauma is inherently good or bad? To me, the answer is no. If I'm a child and I touch a stove and it burns me, that's traumatic. If I never touch a hot stove again, it permanently changed my behavior from a negative experience.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Is me not touching hot stoves a bad thing? No, it's just a matter of learning. And so if you have PTSD, you had a traumatic experience, which is fundamentally rapid learning. That's what trauma is. You learn, you have an accelerated rate of learning.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Yeah. So basically what we figured out was We looked at our number one. So we looked at our whole portfolio. And right before we were talking about this, I was saying how we had kind of pruned things. And so I'm a big believer in deleting as much as possible because you only have fixed bandwidth. And if strategy is limited resources against unlimited opportunities.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Bombs go off, loud noises, your friend dies in front of you, and then a car honks really loud and you're in, basically you take the same condition and then you repeat the same behavior because you learned it, which might be ducked down or whatever it is, right? And so this idea that people espouse that trauma is stored in our body, it's in our banks, it's in our DNA now. I'm like, where?
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Where is this compartment in our physical biology? No, you learned a different way to behave under circumstances. And so we just need to behave differently. I had a young guy who got on my, who was on my team in one of the portfolio companies and I wanted everybody because he was sales manager. And he said, you know, I have some demons that I need to like, you know, slay.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And I was like, what does that even mean? He's like, you know, I just, I tend to like self-sabotage sometimes. And I just said, you don't know how to behave. Period. Period. In certain conditions, you don't know how to act. Great. So we'll expose you to those conditions and then we'll teach you how to act the right way. That's it. That's all it is. That's it.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Yes, and that's how you change behavior. Same condition, new behavior. That's learning. And so I bring this up because I think so many people are chained by the idea of trauma rather than thinking, okay, this thing occurred. I learned a behavior that is aversive to my goals, makes it less likely that I achieve my goals. And here's the key point. This is the thing that you ask yourself.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
What can I do instead? And so, for example, if you give feedback to someone, The reason no one can or very few people are good at giving feedback is that oftentimes they insult rather than criticize. So if you say you suck at that or you're a dick, right, that's insulting, but it doesn't tell someone what to do instead. Yes. And so criticism is the difference between desired and actual.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Now, that can be very non-emotional. You can say, hey, you said you were going to show up every day, and you've been late. Great. Okay, so desired action. Now, if I said, and because of that, you're lazy, that's an insult. Me saying this is reality is just looking at what we can observe.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And the reason I come back to this over and over again is like, what can I observe is because these are the only things that affect the world, is what you do. And so... in trying to, quote, conquer trauma, like, I could say, like, I can create a narrative around whatever.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
So it's like, if you were to say, hey, Alex, what do you think happened in your childhood that made you, you know, driven or whatever, right? I could make up something, but no one knows. I can't run a split test on my life. I know that I do these things, and I've been rewarded in the past for doing so. I repeat them. That's about the only thing I could probably say.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
But if I said, I treated women that way because I had a broken relationship with my mother. Okay, fine. And all I needed to do. You still have to change the actions. Right. It's like, all it is is it acts as a defense for maintaining behavior that we know doesn't help us hit our goals. And so every ounce of effort that goes into defending trauma or a negative behavior from a negative experience
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
is waste. And so using that head in the shovel, like got hit, you have amnesia, you don't remember that that thing happened, great, but you can do that today. And you can just say, okay, under the next time this happens, when my husband comes home drunk again, what can I change about my behavior? Now it might be leave. It might be telling him, hey, don't do this or I'll leave.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so your prioritization of that limited amount of stuff against the things you can do like that is strategy. Yes. And so we had 24 portfolio companies. And so I trimmed that to 10 within the last 12 months. On top of that, I did no new deals.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
That's a consequence, not a threat, it's a consequence. And so this has massively simplified my life and I have this belief that Billionaires see the world more clearly than everyone else. Why? Because they've been able to predict what's going to happen better. And so my only goal is to be able to see more clearly how reality works.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And my hypothesis is that the more clearly I understand how things work, the better I will be able to execute within that realm and predict what's going to happen. And make better decisions.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And that's what I would define as good decision making. A high likelihood of getting the thing that you want.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Whenever I have a big decision. Okay.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Five? Yeah, that's actually about it. Probably about five is probably what I would say.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
I think about this a lot. And I think that most people have deathbed regrets because it's easy to make them under deathbed.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so basically we wish we could have lived six lives. And so the, the concept of regret basically is like, I wish I could have had it's, I wish I could have had my cake and eaten it, eaten it too. Right. I wish I could have lived the life as a musician and as the perfect husband and as the best businessman and as a professional health, whatever. And I think it, um, skews, uh,
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
the idea of trade-offs, which is what life is more realistically about, which is that you make trades given the information you had. And for me to wish for a different outcome would mean that I would wish for a different decision-making algorithm, which would then massively change my life in general.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Yeah, you just got them out. Yeah, I basically got rid of them at a loss or whatever you want to call it. But the thing is that the portfolio as a whole still outperformed the previous year by focusing on the stallions. And so, on top of that, over the last year, we only did one deal. Which, before that, we'd done 12 deals the year before.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Because saying, oh, I wish I had spent more time with my wife or whatever, if that meant it would have... People say, I wish I would have done this, but they don't accept the cost
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
of that would you actually because the thing is is that if you play all that all the way the other side they might say I wish I would have done this right so I see this as fundamentally we want to have everything and we can't and for me and that's okay what's the biggest regret that most billionaires have that you've talked to um I don't talk to them about regrets.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
I talk about business with them to be really real. The real answer is if I have an hour with a billionaire, I'm talking about money stuff. That's about it. I mean, if I think about my younger self, right?
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
i'll play this out for you so let's say today i'm not 85 but i'm in a very different time in my life than i was when i was 23 when i started 22 when i started my first gym um i know what that young man was going through and i know how hard he worked and how hard he wanted it and if i were to look back at that young man and tell him what to do differently if i were to go back i would look at him and i would smile and i would say nothing why
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Because I love the life I have. And I wouldn't want to change anything. Right now you do. Yeah, you'd be like, whatever you're doing, whatever you're going to do, do it. I wouldn't want to mess with it. Yeah, yeah. Exactly. So I've already played it. If a time machine ever exists and an old version of me comes back and he says nothing and smiles, I'd be like, all right.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Right, exactly. And so I think the regrets only happen if you dislike the present. Like that is where regret comes from. There's some part of the present. In this moment, yeah. Right. But I spend all of my time doing the thing that I enjoy most. And I have to the criticism of the vast majority of people in my life, past, present, and probably future.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Like we were talking at the very beginning, like I worked the first hundred days of this year, I didn't take a day off. and I've probably taken 11 days off since the halfway point or whatever of the year. And I went on a vacation that was a two day vacation and I left one day in. I got to this beautiful resort, very expensive, crazy, 22 villas, that's all it is, super high end, whatever.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
There's like a three to one person who works there to you ratio, like it's crazy. And I remember we had this beautiful view of this mountain, you know, and there's this lawn chair. I'm sitting on, you know, fancy lawn chair, but I'm sitting there and I look out and I say to myself, this is beautiful. And I don't give a shit.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
I don't care. And the thing is that there's this expectation of myself that I should care. Like I should take a vacation. But I think about like how recent is the five-day work week? It's a 50, 60-year-old concept. It's not something that happened for hundreds of years, for thousands of years for humans. This is a new thing.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Yeah. It's just life. That's what they call it.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Your name was literally what you did. Carpenter, butler, tailor, like all of these were names because what he was like, oh, John the tailor, John the butler, John, like, and then eventually they just became names that we have now. The Smith, like it's the same thing. And so I spend an inordinate amount of effort trying to remove every should from my life. Why should I go on vacation?
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Why should I go home for the holidays? Why should I call my mom once a week? Right? Now, some people may disagree with me, and that's fine. Live your life differently. That's okay. Do your thing.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
No, and so I think about output in terms of net output over a long period of time. So if I said, okay, you have to work as hard as you can for 24 hours, then of course you take every stimulant in the world and you don't sleep because you only have 24 hours. But if I said do the most work you can in a month, then it doesn't really make sense to do that, right?
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Oh, I think so. Yeah. Yeah, I think so.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Because you really just want to maximize your effective time. And so that also means that you're going to have periods of rest and maybe it isn't working, you know, 18 hours every day. Maybe you're good on 14 hours a day or maybe you're good on 12. That's going to be dependent on you. But I also think that your ability to work itself improves.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so, like, in the fitness world, there's something called work capacity, which is basically your ability to recover. But I think there's work capacity and work as well. Like, my ability to do work. So, like, I have, like, you know, if you speak on stage, right, and you do these, you know this.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
So, people are, if I were to say, hey, I'm going to go do 100 of these in a quarter, people might be like, that's insane. You did 100 speaking events, right? But if I were to say, I'm a university professor, and I do eight of those a day because I have lecture halls that I give presentations to, why is this different? It's only different for people to say that it should be different.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
You should be tired. You shouldn't travel that much. You should feel exhausted. Whatever. And I'm like, why? And is there another alternative reality that I can ask like the thousand years ago or the teacher that would make the current struggle that I have just par for course? And if I can do that, then why don't I do it now? Yeah. And so if if my priorities change, I'll change my behavior.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
I think that's a great point because it's very much like, okay, if I want to be rich, I should just fly private planes. It's like, it doesn't work. If I want to be tall, I should play basketball. It's like people conflate what you're doing now versus what it took to get there. And so those are kind of two separate things.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
If in if tomorrow I wake up and I say, you know what, I have enough money and my achievement goals no longer matter to me, then fine. But I believe that we're a whisper in the wind anyways. And so I think we just I think life is hard. Then you die.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And it's just what what type of hard you want. This has already been talked to tears, but like in the business context, like growth is stressful. stagnation is stressful decline is stressful so disease is stressful yeah life is stressful and so to wish that life weren't stressful is to live is to wish to not be alive like stress is just an indication that you are alive
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
yes that you exist congratulations so that would actually be a positive thing again all of these are just shoulds that people tell us and so i just i really push back on that a lot and try and keep my space and say like i'm going to do the things that i think increase the likelihood that i get what i'm going to have and if someone has a problem with that then they can they can they can not be in my life and that's okay because there's eight billion other people
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Just acquisition.com forward slash training. We just released it. I spent so I probably spent I spent so many hours on this. Wow. I vetted it with three other billionaires and I walked through each of the stages and they're like, dude, I can't like this is so accurate. And so basically break down every stage of business across all functions. going from zero to 100 million plus.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
So what does sales look like? What does marketing look like? What does customer service look like? What does product look like? What does IT look like? What does HR look like? What does recruiting look like? What does finance look like? Across zero, which would be you don't even have a business yet. Next stage is you graduate by making your first dollar. Next stage, you get your first employee.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And then you basically scale all the way up from there. And so I got all the way to 500 employees, which for most businesses will be over 100 million a year. I scaled it by headcount because headcount is more similar in terms of structure of business rather than revenue. Like a software company can have 20 guys and do 100 million a year, and then a restaurant has 20 and does, right?
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
But back to the focus piece, if strategy is prioritization of the resources, then having focus is part of strategy. And then all the way down, because I've just hopped, I recently hopped into the media side of the business. back into operating, which I haven't done in years.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
But the structure of the organization is more similar by headcount. And so basically walk through each of these as functions, what must occur to move to the next level. And so basically you can take the roadmap assessment. It'll tell you where to go. It's all free. And it'll give you a personalized plan of like, this is what you need to do your sales at this point.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
This is what you need to do advertising at this point. And then there's videos that go with it if you're more of a video learner.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Yeah, just training. I think roadmap, it's forward slash, backslash, whatever the slash is. Roadmap, one word. I'm pretty sure that's what the URL is. Worst case, if you're going to Amazon.com, you'll find it. You'll be up there somewhere. Yeah, you'll find it. Or I will have failed as an advertiser if you get to the page.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Sixty-five.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And it's been really fun for me, because I have a better skill set now than I did five years ago, which was really the last time I really operated stuff. And just ruthlessly focusing the team on what one thing, if we did in media, would change everything.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so to the question that you had, this whole year has been dedicated to the farm system, which was like when we looked at the portfolio, we saw that our number one, number two and number four highest performing portfolio company were companies that we had met prior to doing deals.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so we'd work with them for a little bit, just like me helping them out, hopping on phone calls, meeting in person, whatever. And I was like, oh, OK, there's something interesting there. How can I recreate that process on purpose rather than by accident?
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
After you started doing this, right? So number one, number two, and number four, those happened by accident. Before. Just for me, yeah, me doing normal deals, you know, meeting people, whatever. Yeah.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
but now i was like okay how do i create that and so that's why we started running these little workshops at our headquarters so there's i mean it's just what we can fit in our office so it's not huge um but we invite entrepreneurs out and that way we can we can meet them my team meets them we say hey this is what i would do like a lot of them aren't necessarily portfolio revenue ready but if we've helped somebody go from call it 5 million to 20 million a year interesting then when they want to get a growth partner or they want to exit our hope is that they call us first
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Exactly. Because I don't have the resources to do that. And I don't want to take my eye off the ball. But it felt like it. So that was basically this year. That was the big thing that we did this year.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
I want to say we probably did like 14. Okay. This year. So probably a little bit more than one. Like basically one-ish a month. Sure, sure. And it's like, you know, if we're busy, then it pushes out. And then we can do, hey, we're kind of free. Let's do two as well. Yeah, yeah. Yeah, so that was the big thing.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And then focus all the way down because it's just been more and more ruthless in terms of being able to say no. Like I talk to somebody on my team and I say, your job, if you just did this one thing, it would make your job the most valuable version of your job. And then they say something to the degree of like, well, I have all this other stuff. And I'd be like, cool, don't do it.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And they just look at me and I'm like, yeah, don't do it. I'm the boss here. I'm the one who pays you. Don't worry about it. It's fine. If you just do this. And so the feedback I'm getting back is like, dude, it's so much easier. If I just have to do this one thing, I can totally crush this. And so... Everybody needs focus.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And I see the job of the boss at every level, entrepreneur or division head or department leader, manager, whatever, as constantly assessing the things that are on the people who report to use plate. It's like, what do they have in front of them? And how can I prune that tree? How can I strip things away from them so that they can put all their resources into one thing?
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And to me, acquisition.com, like our little logo here, is the two main forces of business as I understand them. You've got supply and demand. And the reason that it's a fulcrum is for leverage. And so leverage is getting more for what you put in. And so the people who move fastest in life don't do more than other people. They get more for each rep.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so I think about that within, across all the organizations that we have. Like we spent a full day with our largest portfolio company, and I'm sure we'll transition off of like hardcore business, but this is what's top of mind for me. We spent a full day with all the executives from our large portfolio company, which this year will probably close out at $110 million. That's a software business.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And we grew from $2 million. So we've been very integral in the growth of the company. And what they came in with the day was five objectives, and each objective had five sub-tasks. So there's 25 things that we had to do for, quote, this year. And I was just kind of sitting a little bit more quietly throughout the day, just taking it in. Something felt wrong.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
It's a lot of stuff. And so at the very end of the day, I ended up going to the whiteboard that was on the side of the wall. And I wrote one, two, three. And I wrote the three things that I thought we needed to do. And I said, and we don't do number two until number one is done. And it was this really clarifying moment. Because I was like, if we don't do this one, nothing else matters.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And if we do this one, then this one will be worth more. And so it's like this will multiply the second thing. And I think there's this big fallacy of concurrent tasks. A lot of people, it's been super well studied that if you switch between tasks, you're way less effective.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
You're like 75% less effective when you switch between two things, let alone like five, and your phone, and your kids, and your whatever, right? And so I think there's this big fallacy that I've changed in terms of how I operate, which is that we actually do things in sequence. We do things in an order.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
Meaning, although you might have five people on your team, we need to deploy all resources towards solving this one problem. And then once that problem is solved, what happens is the fact that the other four fires exist, because let's be real, there's always gonna be problems. But the fact that the other four fires exist gives you urgency to solving the first one.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
and so you actually get five things done faster when you do them in order than trying to do all five at once and yet for some reason we don't we don't regularly remind ourselves of that and so this has been like i'd say like that has been the the single largest shift in my entrepreneurial like career and the reason that like at gym launch which was the company that i sold for those you were listening um the biggest mistake i made in that business was that when it was crushing
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
I then started another basically another company rather than doubling down on what worked. And basically the year that I started the second company, revenue didn't go down, but my growth rate went down a lot. So, you know, we added maybe like 30% in revenue when we probably could have doubled because I put all my attention to this other thing.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And so things are going really well at acquisition.com. And I had this inkling to do the same thing, just repeat the same mistake. And I was like, I cannot learn this again. It'll be more painful. Right, I can't. So much more painful. The stakes are higher. So focus has been the biggest thing so far. Number one.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
The second one has been my understanding of talent has also kind of developed like a fine wine in terms of like... how there's so much leverage with good talent. So, for example, Steve Jobs gives this great, great analogy. He says, you know, in New York, there's a ton of taxi drivers.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And the worst taxi driver, if he had to get you across town, would maybe take you twice as long as the best taxi driver. Maybe he'd take you a third of the time of the bad guy, right? But that's the difference between the absolute best and the absolute worst.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
But in a knowledge-based business like mine, like yours, the absolute best could get 100 times more return than somebody who's even just good. And compared to bad, obviously, it wouldn't even ever happen. They couldn't even succeed. And so in thinking about that, I've doubled down on the arbitrage of intelligent, hardworking people, which is like, it's worth paying someone
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
millions of dollars a year if they can make you tens of millions or hundreds of millions of dollars a year. And I think that it's one of the great opportunities that will always exist because there will always be cheap entrepreneurs and who will not recognize the outsized value of talent.
The School of Greatness
Alex Hormozi: How To Invest In YOURSELF To Become A Self-Made Millionaire
And I think that as I've as the longer I've been in the game, to be fair, the more the more exposed to higher level talent I've become, and the more I know what's out there. And one of my great mentors, he told me, the best talent is always in the future.