Alex Hormozi On Becoming A Millionaire, Quieting Your Ego & Forgetting About Legacy EP 1278

Alex Hormozi is a first generation Iranian-American entrepreneur, investor, and philanthropist. In 2013, he started his first brick & mortar business, successfully scaling his business to six locations in three years. From there, he spent two years turning 32+ brick & mortar businesses around using the same model that made his privately owned locations successful. In total, He has scaled and exited 7 companies. His most notable exit was his majority sale of his licensing company for $46.2M in 2021. Concurrently in 2020, he transitioned from CEO to the owner/shareholder position in these companies and founded Acquisition.com as a way to invest his own wealth (both monetary and intellectual capital) into other businesses. Buy his book: $100M Offers: How To Make Offers So Good People Feel Stupid Saying NoIn this episode, you will learn:How to turn a No to a YesWhen to bring in price when sellingWhy diminishing your ego is so important to your success. The key habit to practice in order to bring in more abundance. The key difference between the rich and the poorFor more, go to: lewishowes.com/1278The Biggest Lies You've Been Told About Money, Debt & Building Wealth w/ Jaspreet Singh (Minority Mindset): https://link.chtbl.com/1257-podScooter Braun On Healing Past Trauma, Building A Business Empire & Finding Peace: https://link.chtbl.com/1244-podOvercome Your Beliefs Around Money & Begin Investing In Yourself w/Grant Cardone: https://link.chtbl.com/1229-pod Get more from Lewis! Get my New York Times Bestselling book, Make Money Easy! Get The Greatness Mindset audiobook on SpotifyText Lewis AIYouTubeInstagramWebsiteTiktokFacebookX

Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:00Alex Hormozi?

  I think the single greatest differentiator between the poor and the middle class, middle class and rich, rich and the truly well faith is...

• 0:07Lewis Howes?

  Welcome to the School of Greatness. My name is Lewis Howes, a former pro athlete turned lifestyle entrepreneur. And each week, we bring you an inspiring person or message to help you discover how to unlock your inner greatness. Thanks for spending some time with me today. Now let the class begin.

• 0:31Lewis Howes?

  Now, what's the difference between someone who's selling all the time and someone who's never selling and doing a disservice because they don't offer someone to buy something? When they know like, okay, I have this coaching program or this course or this thing where I know you could get value if you took action, but maybe they shy away from it because they want to focus on brand so much and not be the salesperson. But then it's actually doing a disservice.

• 0:54Alex Hormozi?

  Yes.

• 0:55Lewis Howes?

  Because they're not in your program.

• 0:56Alex Hormozi?

  So I think it actually has less to do with the ratio of how much they're selling versus serving in their content, but more so the ratio of selling and serving overall. Because most times, because of this, like we were talking before this about the internet marketing space in general, is that most people's products are not serving.

• 1:13Lewis Howes?

  They're not good.

• 1:14Alex Hormozi?

  Right, they're terrible. And so what happens is like, it is the most right hook of right hooks possible, like you just lose a ton of goodwill with the thing. Apple doesn't lose goodwill when they come out with an iPhone. Everyone's just excited about it and they use the iPhone, they tell their friends. So the difference is in the goodwill that comes with the quality of the product. And so I think that's where the issue is. It's not like, do I sell or do I not sell? It's just, is the thing that I'm selling? And the vast majority of people who are pitching all the time are natural promoters, not product people.

• 1:43Lewis Howes?

  Right.

• 1:43Alex Hormozi?

  And so like, most times, the greatest product people, like Naval had this quote that I really like, he said, "You're only selling because you don't know how to market, and you only market because you don't know how to build a product." Because like, the best products market and sell themselves. Now, obviously, if you're Steve Jobs or Elon Musk, it's like, you build amazing products, and then you back them with unbelievable marketing, and then you have an army of salespeople that, that, you know, are selling for you. So it's like, then you have them all, and then you have, you know, a trillion dollars.

• 2:08Lewis Howes?

  Yeah, yeah, yeah.

• 2:09Alex Hormozi?

  But like, just, just being exceptional, any of those will make you money, but you get the multiplicative, you know, compounding effect if you're good at two or three of them.

• 2:17Lewis Howes?

  Right. Were you always good at making money? Or was there a time where you were like, "Man, I'm just broke, struggling, and trying to figure this thing out"?

• 2:26Alex Hormozi?

  Depends on like how much we're defining, you know what I mean? Like right out of, I finished, I finished college in three years and then did the management consulting path. And so like out of college, I was making like 50,000.

• 2:34Lewis Howes?

  Right, right.

• 2:35Alex Hormozi?

  And I lived in Baltimore, so like my cost of living was like $5. And so, so I was able to save a bunch of money. So I, I saved $50,000 in two years.

• 2:45Lewis Howes?

  Wow.

• 2:45Alex Hormozi?

  Living there and that's what I was able to start my, my gym with.

• 2:48Lewis Howes?

  Did you understand money when you were in your teens or growing up? Or did you feel like you were scared of it or it was scarce? Or are you thinking, ah, this, I'm not really worried about money. It'll come when I'm ready.

• 3:01Alex Hormozi?

  I was, I've always been a saver. Always been a saver, not a huge spender. I, I think part of it is because I don't get a lot of like, when I pay a dollar, I feel something different. And most times if I buy something, I don't feel any different. So I don't get a lot of utility.

• 3:13Lewis Howes?

  You spend stuff.

• 3:14Alex Hormozi?

  Right, I just don't get a lot from it. I, I think I've been aware of that for a long time. And so like, if you don't spend a lot and you make even a normal amount of money for a decent amount of time, you end up having a lot. And my, my income went up. I would say that there's definitely elements of scarcity that I, that I believed in for a long time.

• 3:31Lewis Howes?

  Really?

• 3:31Alex Hormozi?

  Yeah, I mean, around competition was one.

• 3:34Lewis Howes?

  Tell me about it. What was that about?

• 3:35Alex Hormozi?

  So like when I had, you know, when I had my gyms, for example, this is, you know, almost a decade ago. You know, I was so concerned with the guy down the street was, what he, who does marketing? Is he copying my ads? Like, I used to get so obsessed with this stuff and like, it just so doesn't matter. Like at all, like you, he could copy and we could both have really big, successful gyms. It's not like there's a lack of people who need to get a gym.

• 3:57Lewis Howes?

  Right.

• 3:58Alex Hormozi?

  Right? And then even then, it's like, we're only talking about a five mile radius. It's not like the rest of the world. Like it's, there's just like, you know, orders of magnitude of thinking in terms of scale that I was just like completely like aloof to.

• 4:08Lewis Howes?

  What happens when we focus on competition so much? What happens to our ability to scale, grow, our creativity, our money-making abilities?

• 4:17Alex Hormozi?

  I think you become emotionally reactive to the activities of the other person. And so you're truly focused on nothing that adds value. And so it's because of, it's not the competi, like competitors don't put you out of business, but you obsessing over competitors does.

• 4:30Lewis Howes?

  Right. What, what should people be doing instead of obsessing over competition?

• 4:34Alex Hormozi?

  It's all customers. It's all just to being, because like, if you can get, you know, there's a billionaire in my, in my building who, um, he was asked, and he was like, if you had one thing that you could tell someone, uh, if they wanted to build, you know, a company like yours. And he said, your customer must absolutely love your product. A lot of people just. Underestimate the amount of effort it takes to go from good to great in product or service. It's like, if you've ever been to like, the difference between a five-star restaurant and a four-star restaurant, you know, looks like 20%, but it's 10 times the effort. You know what I mean? The difference between like a one Michelin star and a two Michelin star restaurant is an ocean. Right. Right, and so I think, like, I use the book as example because it's an easy one to reference. Most people try and just write a book.

• 5:18Alex Hormozi?

  And then, once the final word is done, they're like, send it to the editor, edit it, cool, and let's ship it out. But like, that book, I rewrote five times, end to end, the whole thing. And each time, the goal was to make it shorter. It's like, how can I say this in fewer words? How can I say this in less words? And, um, and in doing that, and the same thing happened with Jim Launch with that product, is that every time we created a 2.0 or 3.0 or 4.0, we made it shorter. How can we make it easier to consume? And then, that was the reason we wrote the book about the value equation. It's like, what is value? Right. How do we define that? And so, if we're customer-focused, we can obsess on value and then have a very iterative approach. And I think that you came from the internet marketing world, like, and I talk, I've given this in like, a couple of like, closed-door masterminds, where I'm like, guys, like, you all say that your product's amazing.

• 6:03Alex Hormozi?

  I'm like, what's your C R C? What's your C H S? What's your N P S scores? What are your T T Vs? And they're like, huh? I'm like, well, if I asked you your C P M, your C P L, your, your, your cost per book call, your cost of acquisition, like, all of these things, you could rather lose off in two seconds. I'm like, so you guys say that your product's amazing, and yet you don't measure a single metric around product. Wow. So you start focusing on that more. Right, so they just, so the thing is, like, if we can get that part right, then you get so much, so, because if we can just get each customer to get one more customer, then we get our, our, our return on ad spend doubles. Right. But then, if you think about what your contribution margin is on that extra customer, if you don't have to spend the cost of acquisition, so much of that drops to the bottom line. And then, the company just becomes so much more profitable. Yeah. Just by like, tiny levers that we do here.

• 6:48Alex Hormozi?

  Like, how can we take, you know, with, I think we were talking earlier about our publishing business. We're like, okay, publishing is something that takes a long time to do. How can we figure out TTV is time to value? So how can we figure out some sort of experience or some sort of win someone can have in the first seven days? Like, how can we get them a dollar? Is there anything that we can do to prove?

• 7:05Lewis Howes?

  Launching their book.

• 7:06Alex Hormozi?

  Yeah, exactly, like something, some proof of concept. And we were able to figure out how to, we're talking about mini, you know, mini book, get that going in a very short period of time so that people could just, and we're like, hey, guys, this is an MVP, this isn't your perfect product, we just want to prove to you that it works. And so then they get $1 in their account, they're like, and we're like, you are now on a

• 7:22Lewis Howes?

  Get some momentum.

• 7:23Alex Hormozi?

  Yeah, and now you have that identity shift that happens, just like, I just made one on the internet. Like, yeah, you did. Now, let's do a real book that's like really good, like we don't, this is not the product, but this is proof of concept. And so that was like a more creative one we had to do. But like in other businesses, it's like, how can we always drag forward at least some sort of big win? So we get the emotional buy-in to then fit, you know, fall through. Like when we had the gyms way back in the day, I would run people through like a six-week, really aggressive diet in the beginning. And that was because even though the sustainable weight loss is, it takes a much longer period of time, you know, et cetera, the slower you lose it, the longer it sticks off. But the faster you lose in the beginning, the more likely it'll stick with it.

• 8:03Lewis Howes?

  Interesting.

• 8:04Alex Hormozi?

  So you get this emotional buy-in and you're like, cool, okay, we just did a lot of weight loss in six weeks. I need you to chill for six.

• 8:10Lewis Howes?

  Right.

• 8:10Alex Hormozi?

  And then they're like, but now they believed us because we had just delivered, you know, a big win.

• 8:14Lewis Howes?

  They got the results.

• 8:15Alex Hormozi?

  Exactly.

• 8:16Lewis Howes?

  Quickly.

• 8:16Alex Hormozi?

  Yeah, and so it's like, we know how to do it, but now we're like, you can trust that we do know how, but now let's just maintain for six weeks, get your hormones back, make sure everything's good, unkey dory, but a little more muscle because you lost them during this kind of aggressive cut.

• 8:27Lewis Howes?

  Yeah.

• 8:28Alex Hormozi?

  And then kind of, then we'll get into a more sustainable phase.

• 8:30Lewis Howes?

  Right.

• 8:30Alex Hormozi?

  So it's just how can we drag that forward? And I think that level of obsession, the way people obsess about promotion, if they obsess the same way about product, the amount of profit they would make as a result of that is just like, it's huge. And those are sellable businesses. The marketing-driven businesses do not have nearly the enterprise value that the product-driven businesses do.

• 8:47Lewis Howes?

  So would you say the key to going from good to great is obsessing on product? Great, product greatness?

• 8:53Alex Hormozi?

  Hundred percent.

• 8:54Lewis Howes?

  What if, what if someone, you know, they have any product, a physical product, digital product, coaching, a software, and they're watching or listening? What should they be thinking about to making the product that much better? They've put a lot of time and energy launching it, building it, they've got sales, maybe they've had it for a year or two. How do they break it all down and it says, is it 20 different factors? Is it like, just do these three things and it's going to improve the quality of product? What should they think about?

• 9:20Alex Hormozi?

  It's a really good question. So there's like three different angles I want to take this. So one is like what I talked about in the book, which is like the value equation. What is that? So there's four variables in the value equation. The first one is the dream outcome, which is, is the thing that I'm delivering fundamentally valuable? And this is especially for people, probably more so who are trying like starting out in their, in their like entrepreneurial career. You want to map, draw it out for me too, if you want to? Sure. Well, I'll hold it up for people, yeah. So you've got, you've got your dream outcome. So I just put dream here, right? You've got a dream outcome, which is the first variable. The second variable is the perceived likelihood of achievement. And so the idea is, and I'll give you an example of this. If you have, let's say you wanted to get plastic surgery, whatever, and... Is that what you did with your calves? Exactly.

• 10:05Alex Hormozi?

  If, if you wanted to get plastic surgery and you had the option of two guys who are going to do the surgery, one guy has done 10,000 surgeries and one guy is fresh out of medical school, this is his first surgery, which guy would you go with? Probably 10,000. It might even take this guy half the time to do the surgery as this guy. And double the price. Right. So you might, and it's double the price. Why? Because of the perceived likelihood of achievement. We believe that when we pay this man, we are more likely to achieve what we want. Even though the work is the same, probably longer on this side, but our perception of what we are going to get in a real way increases prior to purchase. Which is the same reason that if you have like 20 people who told you that this restaurant is amazing, you're willing to pay way more, even though you haven't experienced it yet. It's the perceived likelihood of getting the outcome. To rewind on the dream outcome, uh, this is more a commentary that,

• 10:51Alex Hormozi?

  how is it that you have a 50,000, you can, you can solve the same problem, let's say weight loss, because everybody understands that one. If I'm trying to help somebody lose weight, there's $50,000 solutions and there's $5 solutions. There's free solutions, right? $50,000 solutions, you can get liposuction, right? And get a full body lift or whatever. Not in a day. Right. Or you can get an ebook, you know, for five bucks. So the question is, why are these two things, you know, more valuable? And that again goes to perceived achievement. But if I went from the weight loss to let's say making money. If I had two things, in general, all the things in the making money category will be will be priced higher because there's a more direct ROI. Yeah. So that's why between categories, dream outcome as a category can be higher or lower. But then, once you're within a category, it's the other three variables.

• 11:33Alex Hormozi?

  So perceived likelihood of achievements, number one of the other three variables. The next variable is underneath, which is the time delay. So between when I pay and when I get, what's my delay there? Right? So if I were to say, using the weight loss example, if you swipe your credit card and then you look down at your stomach and you just have abs, how valuable People pay a lot for that. Exactly. And all we did was just decrease the time delay. And so if, let's say, in a B2B example, if you had a marketing agency, for example, and normally, it's like, okay, you guys need to send me all this creative, and we gotta get everything spun up, and it's gonna take us, you know, 45 days to really get everything, you know, ramp, we gotta build a funnel and have a lot, blah, blah, blah, right? And then, let's do a different example. We're on the same call. The guy says, "Cool, we're gonna get you going." And you hang up the phone, and your phone rings with a prospect.

• 12:18Alex Hormozi?

  That's pretty big. Even if it's the exact same thing, 45 days from now, your phone rings with a prospect, today, your phone rings with a prospect, how different is the perception of value? Phenomenally different, which is why the time delay is such a huge piece, which is why time to value, we were referencing earlier, is such a huge part of increasing the perceived value of the product. And so that's the time delay. That's the third. Yep. And then the fourth one is effort and sacrifice. And so effort and sacrifice are two sides of the same coin. So effort, as I define it, are things that you must begin doing, that you do not want to do, that you did not have to do prior to the purchase. Give me an example. If I have to wake up early to go to the gym, that would be effort. That is something that I now have to do.

• 13:00Alex Hormozi?

  And so sacrifice, I use as the equal opposite, which is what do I have to stop doing that I want to do? Yeah. That I would continue to do, continue doing if I didn't have to. Have to stop eating milkshakes at midnight or whatever. Yes. And even in the B2B example with the marketing agency, well, now, what do I have to do? I have to start making this content, I have to start hopping on meetings every week, we have to start looking over these metrics, like To hire new people, I gotta, yeah. Right. And so oftentimes, especially like businesses, they think that their price is the most expensive thing that they have in the cost, and it's not. So think about this. If you've ever asked someone, "Hey, I'll give you my service for free," and they said, "No," it's because there are other costs that you're not taking into consideration, which also means, a lot of times, your price has far more wiggle room in it than you think it does.

• 13:43Alex Hormozi?

  And if you can decrease a much bigger hidden cost

• 13:48Alex Hormozi?

  By asking for more money and you can solve a hidden cost, you can make more money and improve their experience at the same time.

• 13:54Lewis Howes?

  Right.

• 13:54Alex Hormozi?

  And that's when you just make oodles and oodles of money.

• 13:57Lewis Howes?

  When does someone know, so this is a good to great concept, right? What we should be focusing on is kind of these, this main analogy and factor. When does someone understand? A lot of people talk about their worth, like I'm worth this, I deserve this. Whether they're an employee or they're an entrepreneur and they want to price something.

• 14:16Alex Hormozi?

  Yeah.

• 14:17Lewis Howes?

  When should they be thinking about their worth and increasing their rates? Whether as an employee or as an entrepreneur? How do they know? Cause the only worth what people are willing to pay. So how do you get people to pay what you believe you're worth?

• 14:32Alex Hormozi?

  So I think there's three variables that come into like how much you can charge, right? The first one is value or perceived value.

• 14:40Lewis Howes?

  From the prospect.

• 14:41Alex Hormozi?

  Perceived value, yeah. So perceived value. The second one is how good you are at negotiating, which would become, which I put that, or persuading, you could probably put that as just persuasion in general.

• 14:51Lewis Howes?

  That's a good.

• 14:52Alex Hormozi?

  Cause if it's, if it's a job, you might be negotiating. If it's a customer, you might be negotiating too, but it's persuasion in general.

• 14:58Lewis Howes?

  And that's a whole skill to develop on its own.

• 15:00Alex Hormozi?

  A hundred percent. And the third one is how unique it is. So that there's no easy alternative, right? And so if, like for example, let's say I provide something that's really valuable, unbelievable at selling.

• 15:11Lewis Howes?

  Rare.

• 15:12Alex Hormozi?

  And then another guy is willing to just do all the same stuff for just less.

• 15:16Lewis Howes?

  Right.

• 15:17Alex Hormozi?

  Right. And so it's being decommoditized, which I talk about in the book too, is that people have to be able to, they cannot, and the goal should be with our, our services that we have, that no one can hold up our service and somebody else's and say, these two are similar enough, I'll pick the cheaper one. And so the goal is how can we differentiate ourselves in enough ways? By looking at the value equation and thinking, what are all the things that are making this take longer? And how can I remove them? What are all the efforts and sacrifices? Even these micro things, these nuances that make things more difficult. And so like the kings of this, if you look at like Amazon, right? Like the biggest companies in the world. I'll reverse. The small companies that are out there, they always focus on the first two things. Let me, let me promise something really big. Let me show you all these testimonials and that's all they do.

• 16:00Alex Hormozi?

  Just promote these things. It's amazing. Listen to Sammy. It's amazing. Listen to Tommy, right? That's all they do. But the biggest companies in the world focus on the bottom side of the equation, which is how can we make things faster and how can we make things more effortless? Like Netflix destroyed Blockbuster, not because they fundamentally changed the product at all. All they did was they made it happen immediately and from the comfort of your home, right? And so they just dramatically decreased the cost and effort that was associated with watching movies. And boom, they blew up. And so like Jason Fladlin, who's a friend, he said, you know, one of the easiest business models in the world is just look at what everyone else is doing and do it in half the time.

• 16:34Alex Hormozi?

  Right? Like it's a simple, like people are like, what do I do for business? Just look what like if someone can cut your lawn in whatever amount of hours, you clean houses. So you can clean houses in less time because it's just less inconvenience when you're there in their house.

• 16:46Lewis Howes?

  Less time and less money or same money?

• 16:48Alex Hormozi?

  Same money.

• 16:49Lewis Howes?

  Yeah.

• 16:49Alex Hormozi?

  Or more money. You know, like it depends on what are the, what are the hidden costs? So like probably like with cleaning, what are the hidden, what are all the things that people hate? Scheduling is probably a pain.

• 16:57Lewis Howes?

  Right.

• 16:57Alex Hormozi?

  Hearing the noise is probably a pain, like silent cleaners. Right? Like what are, like you, you list this out and that's, we outlined it in the book of like the process of thinking through this. But like, what are all the pains and problems that your customers complain to you about? And so like the goal is always in the support tickets. So when you talk about like obsessing about a customer, right? It's let's go through all the comments on the videos, right? Let's go through all of the support tickets that are coming in and those complaints, inside of the complaints, sure. Like what you don't want to do is say like, well, these guys are all victims. Because then you lose all the power as a business owner by just blaming them. So if you just accept all of it, it's like, these are all like, as long as the thing that they're saying is not false. If it's unreasonable, then let's see if we can figure it out.

• 17:41Alex Hormozi?

  Maybe no one else has figured out how to do this, but we might as well try.

• 17:44Lewis Howes?

  Yeah.

• 17:44Alex Hormozi?

  Right? And so I think if you, if you can approach it with like very open hands of like when you accept the feedback, it gives you the goal to really create huge breakthroughs in products and services.

• 17:54Lewis Howes?

  Were you always open to the feedback from customers?

• 17:57Alex Hormozi?

  No.

• 17:57Lewis Howes?

  Or when did you learn to be like, when did you learn to be like, okay, this sounds like a victim conversation, but there's something here where this person's struggling. And if I can make it more effortless, it's going to be a better product for that person.

• 18:09Alex Hormozi?

  I think it's just taken time and I think it's because I think a lot of it I think is is really beating down your ego. And I think like in a lot of ways with business, in my opinion, ego is the enemy because it gives us too much confidence when we don't deserve it.

• 18:22Lewis Howes?

  When did you start beating down your ego?

• 18:24Alex Hormozi?

  I mean, I've been trying to do it since I was 19. It's just been a very slow process. I just I just realized that it was the root of all the unhappiness that I had. And like, everything that I have was in comparison to other people with for no reason. And like, you know, I've obviously adopted some perspectives, we'll probably get into later, but that are contrarian in nature in terms of like, how we live, but not just, there's no benefit to ego. There's just none. And then I have a different thing that I've been thinking about recently. I'm excited to share it with you.

• 18:53Lewis Howes?

  Sure.

• 18:54Alex Hormozi?

  So there's, you've probably heard this, but there's a lot of evidence that points to with mitochondrial DNA that we go back to like one, one woman birthed, like the mitochondrial DNA of all humans just comes like tracks back to one, one woman, right? And so I think that that's interesting within the context of legacy, because people talk about legacy and they want to like, like leave something for their, for their progeny. And we, we love our sideways family members, right?

• 19:21Lewis Howes?

  What do you mean?

• 19:21Alex Hormozi?

  Like, yeah, like your, yeah, exactly. But like, if we all came from the same mitochondrial DNA, right? Then, then we, like, not to be like weird and huggy, huggy lovey, but like a hundred percent.

• 19:36Lewis Howes?

  Yeah, of course.

• 19:36Alex Hormozi?

  I find that really fascinating. It's just like, it's like a super distant cousin. And, and

• 19:42Lewis Howes?

  This is why, this is why when I met you for the first time.

• 19:44Alex Hormozi?

  Yeah.

• 19:44Lewis Howes?

  What did I do when I met you?

• 19:45Alex Hormozi?

  Deep, long hug.

• 19:46Lewis Howes?

  Deep, long hug.

• 19:47Alex Hormozi?

  Oh, yeah.

• 19:47Lewis Howes?

  And I do this

• 19:48Alex Hormozi?

  It was a triple hug.

• 19:49Lewis Howes?

  It was a triple, because you, you

• 19:50Alex Hormozi?

  I broke it twice.

• 19:51Lewis Howes?

  I was like, bring it in, bro. And then you have to surrender. There's a reason I do that is because

• 20:01Alex Hormozi?

  Oh, that's a thing? I didn't know that was a thing.

• 20:02Lewis Howes?

  Well, I mean, I, I mean, that's just a, unless it's somewhere where it's like, maybe someone who's older that doesn't want to be hugged or, you know, your wife, I'm going to give a quicker hug. I'm not going to be grabbing, so yeah. But it's a, you know, it's a respectful, you know, understanding the human being in front of you, doing your best, respected, but with you, I knew I could just hug you and it's going to make you uncomfortable. And it's gonna make you uncomfortable, but, but for me, I don't know if I'm ever gonna see you again. I don't know if I'm gonna see you tomorrow, or, or anyone tomorrow. And so why not embrace people with, you know, a three to five, 10 second awkward hug? And let people know that you really appreciate the moment.

• 20:37Alex Hormozi?

  And your present, yeah.

• 20:39Lewis Howes?

  That's what I try to do. It's what I try to focus on. But, um, you know, and if we're all distant cousins. Then why not treat each other that way, the best way possible, you know?

• 20:47Alex Hormozi?

  And I didn't, and I didn't mean to launch all the way there, because I'll go right back to ego. So I can scoot us back, otherwise we'll go in that direction. But yeah, so I think, because all this comparison, I was like, well, if I were comparing myself to a family member, would I feel the same way? And if, if all these people were on the same side as me, because we're all family, would I still feel like I would? Because I've, I've just tried to attack it from a logical perspective of like, how many different ways can I try and defuse this bomb? And I think there's a lot of keys and you just unlock tiny pieces of it. And you can just try, you know, piece by piece. And I don't think anyone ever conquers it, but, or, you know, just hopefully I can over time.

• 21:18Lewis Howes?

  Get better. And I used to be very competitive as well as an athlete. That's all I thought about was winning. It's like I had to win to feel like I was worthy, or I was good enough, or I was talented enough, or, and if I didn't win, then I wasn't reaching my goal of, of winning the championship or the prize, or whatever it was. And I took that into business for many years, and I felt like I needed to compete with other people. And then it's funny, when I started this show, almost 10 years ago, I was like, it can't be about me. It needs to be about collaboration. In order for this to really grow and scale and change lives and impact people, it can't just be The Lewis Howes Show all day long. One, I'm not smart enough. I don't have all the answers. I'm not as talented as you. Shorter guys are way smarter. That's why you're so much more brilliant.

• 22:05Lewis Howes?

  You know, and I was like, I gotta bring on the smart people and create a safe space.

• 22:08Alex Hormozi?

  I gotta bring all the tall guys on, right? And I'll just, I'll catch it, right? Like every, all my audience will get taller as a result.

• 22:14Lewis Howes?

  But, uh, it's funny, because when I started to shift that, the ego goes back into still comparing and ranking and all these things. And I was like, okay, when, when I started to shift that. It's when I, you know, the platform and the community started to expand because I made it about shining the light on others.

• 22:29Alex Hormozi?

  Yeah.

• 22:30Lewis Howes?

  You know, and doing my best to shine the light on others. And when you do that, when you shine the light on an idea or a mentor that taught you something, usually good things come back.

• 22:39Alex Hormozi?

  Yeah.

• 22:40Lewis Howes?

  That's interesting. So when did you start to shed this ego mentality?

• 22:44Alex Hormozi?

  I mean, I started attacking when I was 19.

• 22:46Lewis Howes?

  19, and how old are you now?

• 22:47Alex Hormozi?

  32.

• 22:48Lewis Howes?

  32, yeah.

• 22:49Alex Hormozi?

  And I think I have like 40% less ego than I did.

• 22:53Lewis Howes?

  That's good, yeah. And how do you have, how do you diminish the ego as you continue to scale and exit these big companies and build your brand and get more and more attention and known? How do you bring it back down to the humility?

• 23:08Alex Hormozi?

  I think it's linking the two. So it's trying to link, these good things are happening because I'm decreasing this thing.

• 23:14Lewis Howes?

  That's smart.

• 23:15Alex Hormozi?

  And so that way I can associate, I can have a positive reinforcing association with the success that actually, that would normally amplify in the wrong character traits.

• 23:23Lewis Howes?

  What do you think would happen if your ego was at the highest level right now?

• 23:27Alex Hormozi?

  I think a lot of people would, I mean, a lot more people would not like it. Like, I mean, I don't think the message would get across because, to be fair, I think the message would stop, it would, the spread would happen much slower or not at all because the message would change. Because the message wouldn't be about the message, it would be about me. And I think that's, I think that probably the reason that this has grown so much is because you've, you've tried to quiet yourself in, so that the message and the idea can spread to as many people as possible and you put the message on the pedestal rather than Lewis on the pedestal.

• 23:58Lewis Howes?

  Yeah, of course.

• 23:59Alex Hormozi?

  And I think your audience realizes.

• 24:00Lewis Howes?

  Yeah. That's interesting. So what do you think, you were making 50K the first couple of years out of college. You saved 50K within two years, which is amazing. So you were disciplined.

• 24:09Alex Hormozi?

  Yeah.

• 24:10Lewis Howes?

  What was the, the habit or the switch from one year to the next? That started to bring in more abundance financially, not in an incremental 20%, but it was like boom, this was 5x, 10x. What was that habit or mindset shift for you that started to develop more income?

• 24:27Alex Hormozi?

  So there's like the, the science and the art kind of both sides. So like the science side is just the leverage. So the amount of money you make is proportional, the amount of leverage you employ in your life. And so, you know, four types of leverage, this is not mine, this isn't the Val Ravikant's, but I'll just say them. So you've got labor, I call it, I use four Cs because these are for me to remember. He says labor, I say collaboration. So funny that you said that earlier, but it's just getting other people to basically use their time, right? For your cause. The second level of leverage is other people's money, is getting people to invest in your thing. And then the next two are, so these two are permissionless, the first ones, like you need to get someone's permission to work for you. And you get someone's permission to get, give you their money. The other two are permissionless, so you can do them on your own.

• 25:10Alex Hormozi?

  One is media, which is what you have here, because the cost of making one video and having one person see it versus a million people see it is the same cost. Right? And then the other is code, right? So I say content and code. So those are my four Cs. So collaboration, capital, content, code. And both of them, and those are not binaries. It's not, am I using other people? Am I not using other people? It's to what extent am I using other people? Am I, do I use other people's money? Yes or no? No. It's how much of other people's money am I using? And so each of these are continuums, not binaries. So like, somebody could just use other people's money and be a billionaire because of the extent they use it. But those are the types of levers that exist. And so as my income went up, it was by proportion to the amount of leverage I was employing.

• 25:48Lewis Howes?

  Really? How were you, what of these four were you leveraging the most?

• 25:51Alex Hormozi?

  So in the beginning, I had no leverage because I was an employee, right? I was using my own time. The next thing that I started doing was I became self-employed, right? So I had a little online training business that I started in between my quitting my job and, and starting the gym. And so when I started the gym, I started getting labor was the first.

• 26:07Lewis Howes?

  Other people, yeah.

• 26:08Alex Hormozi?

  Not a lot of it, but I got some of it. And so that gave me that first next tier. I went from making.

• 26:12Lewis Howes?

  Part-time interns.

• 26:13Alex Hormozi?

  Yeah. Five, I went from $5,000 a month to I think about $30,000 a month. So that was the, that was the big jump. It was just, I had a team, you know, I mean, a small team, but I had a team, right?

• 26:22Lewis Howes?

  Now that's overall in revenue, that's not your take on that sales. You might've been losing money or whatever.

• 26:28Alex Hormozi?

  We made, I made, I made, I was probably making twenty thousand a month at that point.

• 26:32Lewis Howes?

  For yourself?

• 26:33Alex Hormozi?

  Yes.

• 26:33Lewis Howes?

  After expenses and team and everything.

• 26:35Alex Hormozi?

  Yeah, that was then.

• 26:36Lewis Howes?

  And then what did that feel like going from five to twenty? Did that make you feel something different? Was there a shift inside of you when you took that action?

• 26:43Alex Hormozi?

  Cause for me, when I started this, it was all about vanquishing my father. So it was all about, I was Middle Eastern father, only child. So like, I was raised by a single dad. It was just me and him. That was it for the vast majority of my life. And so he's Middle Eastern, came here with the thousand dollars, became a doctor, or he was a doctor, came here, learned English from watching television, you know what I mean? Has the American success story, absolutely.

• 27:04Lewis Howes?

  That's amazing.

• 27:05Alex Hormozi?

  And so I was born here, though.

• 27:07Lewis Howes?

  Speaking another language too?

• 27:08Alex Hormozi?

  French was my first, actually. There's a whole story around it, but anyways, but yeah.

• 27:12Lewis Howes?

  French is your?

• 27:12Alex Hormozi?

  Yeah.

• 27:13Lewis Howes?

  How many languages you speak?

• 27:14Alex Hormozi?

  That's the best one. I, I'll just leave it at that. But all of it was about making him proud, right?

• 27:21Lewis Howes?

  So that's what you did, you set out to do that?

• 27:23Alex Hormozi?

  That's what I was trying to do. And then I think that throughout my like adolescence, I realized that it was something that was always going to be withheld from me. So it didn't matter what it was, the goalpost would always move so that.

• 27:32Lewis Howes?

  He would never be proud enough?

• 27:33Alex Hormozi?

  Right, and it was just, and it was because he wanted the most out of me. And so like, if I got, let's say, you know, a ninety-nine on a test, it wasn't congratulations, it's what'd you get wrong?

• 27:41Lewis Howes?

  Oh, man.

• 27:42Alex Hormozi?

  Right, and that was always what it was. That's okay, like, I'm, we're cool, I'm very happy with my life.

• 27:45Lewis Howes?

  Yeah, yeah.

• 27:46Alex Hormozi?

  And I realized that, and so this desire to gain approval turned into a very deep anger. And so.

• 27:53Lewis Howes?

  Towards the world, him, yourself, other people?

• 27:56Alex Hormozi?

  Mostly him, mostly him, and most, like, him and myself probably split, probably fifty-fifty, you know what I mean? And, and so it was like, my earlier, I'll say quote, success was purely fueled by rage. Like, it wasn't, it wasn't like, it was rage, you know what I mean?

• 28:15Lewis Howes?

  I was in the same boat, yeah.

• 28:16Alex Hormozi?

  Yeah, and it was like, and I, but there was probably some element of me that's like, almost enjoyed the suffering because like, I just would get in the space. When, when you ask like, how did I feel?

• 28:26Lewis Howes?

  Yes.

• 28:26Alex Hormozi?

  By getting the extra twenty thousand a month? First, my goal was to make as much as my dad. And then it was to make more than my dad. And then it was to make more than my dad had ever made his whole life.

• 28:38Lewis Howes?

  Wow.

• 28:40Alex Hormozi?

  And so, once I had done that, the, the, I wanted the success to be unquestionable. Like, it couldn't, there couldn't be a but, there couldn't be an asterisk. It had to be so undeniable that, that vanquishing was the word, right? And so, for a five-year period after I quit my job, my dad did not support. He didn't support me quitting my job.

• 29:03Lewis Howes?

  Why not? Even though you were off making money and building a business and...

• 29:07Alex Hormozi?

  Because he didn't, he's like, you're, what are you, a gym owner? Like, he's like, you went to Vanderbilt, you were on a management consulting career. He's like, you got, you know, you got above Harvard's mid-score for your...

• 29:16Lewis Howes?

  You could have had a credible career.

• 29:18Alex Hormozi?

  Of course.

• 29:19Lewis Howes?

  Right.

• 29:19Alex Hormozi?

  Right? Gym owner doesn't sell well on cocktail parties.

• 29:22Lewis Howes?

  Right.

• 29:22Alex Hormozi?

  What do you, you know, he's, he's figuring himself out.

• 29:24Lewis Howes?

  Yeah, let's do this little gym as a side thing.

• 29:26Alex Hormozi?

  Yeah, yeah, yeah, he'll snap out, right? And so, and I mean, I made plenty of mistakes too, when I had the gym. So, it wasn't like all, you know, sunshine and rainbows for me. Like, I had a lot of mess-ups that I did. I got in bad partnerships. I mean, like, all the things that you could possibly do. And, and over that five-year period of me scaling to six locations with my, with my facilities, at the end of that whole thing, I ended up losing it all.

• 29:46Lewis Howes?

  Really?

• 29:47Alex Hormozi?

  Yeah. Lost everything.

• 29:48Lewis Howes?

  Six locations, lost the whole business?

• 29:50Alex Hormozi?

  Yeah, well, I sold, I sold five of them. I shut one of them down. Cause I wanted to start doing this gym launch thing, which would be like flying around, doing turnarounds. Cause I, I started, that's when I met Leila.

• 29:59Lewis Howes?

  You find a gym that's kind of like not succeeding, you turn it around.

• 30:03Alex Hormozi?

  Yeah, we'd fly it.

• 30:03Lewis Howes?

  And you do a makeover.

• 30:04Alex Hormozi?

  Yeah, exactly. Bar rescue, same thing, like same exact thing.

• 30:07Lewis Howes?

  Wow, should have done a TV show with it.

• 30:09Alex Hormozi?

  Believe me, the many regrets I have, right? That would have been an awesome one. We did thirty-two turnarounds.

• 30:14Lewis Howes?

  Wow.

• 30:15Alex Hormozi?

  It was almost two years, yeah. And so, we, we, we started doing that. Anyways, I lost everything, because I took all the sale money and I put it into my last location, and then the partner that I had there siphoned the money out. Cause I was like, yeah, like, well, I'll put all the money from the sale of these gyms into this thing. Like, anyways, doesn't matter. It was my own mistake, it was on me. But, it was, even then, it was, you know... We'll see, you know, we'll see how like this isn't real like we'll see and then once I started, once Jim launched, really started taking off, it wasn't until I think we did like 17 million in EBITDA, like profit take home. In one year. In one year, that my dad, I was 27. That's crazy.

• 30:56Alex Hormozi?

  My, my dad, my dad called me and he's like, are you sitting down? I remember like at this point, like we, we were like not talking too much. You know, maybe every few months it'd be like a five minute phone call. And so I was like, sure, yeah, I got time. What's up? And he's like, you're gonna want to hear this. And I was like, okay, what? He's like, I'm sorry. And it was the first time he'd ever apologized to me in my life. And what's interesting to me though, is that it didn't feel like anything. I didn't care. Why not? Because I had stopped caring about what he thought about me a long time ago. And it was like, when I quit my job was the day that like I, I accepted dying to my father. Because, because very much to me at that point was, I was, I was really, really sad at that point in my life when I had the job.

• 31:35Alex Hormozi?

  Cause I had really done everything that he'd wanted me to. I finished Vanderbilt in three years as president of fraternity. Uh, I had won writing awards. I'd done like a bunch, like I'd done everything, you know what I mean? I was in, I was vice president of powerlifting team. Yeah, every club. All the stuff I could possibly do. Yeah. Finish it. Yeah. While, while still being president and did it in three years, right? And got a management consulting job that was like a good job. Had all the credibility and it just, I knew it wasn't enough and I knew that. And so I knew that the choice for me was that I either had to die to him or I had to die to myself. Wow. And that was ultimately like the choice that, that I put in front of myself. And that was whenever I was like,

• 32:15Alex Hormozi?

  maybe I should just get, I was like, die to him or die to you. And so that was what gave me the, the, the confidence to, to break that. And then I physically moved because I couldn't be in the same area. So I actually. You were 23 at this point or? So I called my dad when I was like in Ohio and I'm from Baltimore.

• 32:34Lewis Howes?

  That's where I'm from.

• 32:35Alex Hormozi?

  It was for you. I called him when I was there and I was like, hey, by the way, I'm doing the gym thing. He was like, okay. It's like, why don't you come over? We'll talk about it because he knew because he knew that like if he came over with enough battering, I would be like, fine. I know this is smart thing. I'll take the, you know, I'll apply to, you know, Booth and Harvard, whatever, and I'll get the, I'll do that whole thing. And that because that was a cycle. I just kept doing that and I was just like, no, I'm not going to do it. So I was like, well, I can't. I'm in Ohio. He was like, what do you mean? And then the tone totally shifted and he was like, you always do these crazy things and you're always like, he's like, you're never balanced. It's always extreme with you. There's no middle path, blah, blah, blah. And so anyways, I, you know, I did that five years gyms, lost it all anyways. And then started, and then started gym launch and then that's one, and then that really took off.

• 33:19Lewis Howes?

  Sure.

• 33:19Alex Hormozi?

  And then, but when he called me and he apologized, and this is where I like, you know, I'm ashamed of myself, but like, I could have just let it lie and been like, thanks, appreciate it, you know?

• 33:30Lewis Howes?

  What'd you do instead?

• 33:32Alex Hormozi?

  Instead I said, I was like, you know, when people get up on stage and they're like, hey, you know, they get awards and they're like, hey, mom and dad, I just want to say, thanks so much for always believing me. I was like, I won't say that.

• 33:41Lewis Howes?

  Oh, my gosh.

• 33:42Alex Hormozi?

  I was like, because you never did. I was like, the only time you accepted me, I was like, was once every other person on this planet had accepted it too.

• 33:48Lewis Howes?

  Oh, my gosh, man.

• 33:50Alex Hormozi?

  And so.

• 33:50Lewis Howes?

  That's.

• 33:51Alex Hormozi?

  So I said that.

• 33:52Lewis Howes?

  It's intense. On the phone, he said that?

• 33:53Alex Hormozi?

  Yeah.

• 33:53Lewis Howes?

  What'd he say to that?

• 33:54Alex Hormozi?

  He said, well, we'll see how long it lasts.

• 33:56Lewis Howes?

  Oh, my gosh.

• 33:57Alex Hormozi?

  So that was.

• 33:58Lewis Howes?

  So he's still kind of in competition with you.

• 34:00Alex Hormozi?

  Yeah. And to be fair, when he apologized, he said, you know, I'm sorry. He said, but in my defense, if it had been in my time, I would have been right. And so, you know, but all that to say, like, I should have just said, like, appreciate the apology, you know, thank you. Cause you know, Tony Robbins said something that I thought was really impactful was like, for the vast majority of my life, it's been like, How my father shaped me or whatever. But rather than thinking like, what, what can I use from this dynamic? Like, what gift do I have?

• 34:30Lewis Howes?

  Yeah, like from his mother, kind of like beating him or whatever.

• 34:32Alex Hormozi?

  Yeah, exactly. Like, what do I, like, what do I, you know, they're blaming for the good, right? And so like, I have so many things to blame for good from that, and I'm very, very happy with my life. That is why $20,000 a month didn't feel significant to me because the goal that I had, my expectations weren't to make money. My expectation was that I had to make more than he'd ever made. And so I had a very big vacuum to drive towards, which I think in a lot of ways was a gift because like, I blew past 100,000 a month, 500,000 a month, a million a month. Like, I blew past those things because like, it was never about having enough money for me. It was about feeding this monster. But once I got there, I realized that what I had done was set up a game to win by my father's rules.

• 35:12Lewis Howes?

  Ooh.

• 35:13Alex Hormozi?

  And so then I-

• 35:14Lewis Howes?

  And you could never win.

• 35:15Alex Hormozi?

  Right. And to be fair, would I want to win a game that I wasn't for me?

• 35:20Lewis Howes?

  And it was making you suffer.

• 35:21Alex Hormozi?

  Sure.

• 35:22Lewis Howes?

  You're playing the wrong game.

• 35:23Alex Hormozi?

  I'm playing his game. And so I did win, but I won at his game, not mine.

• 35:25Lewis Howes?

  Right, right.

• 35:26Alex Hormozi?

  And so that was kind of what I think, making that realization was, it was kind of the, the slow shift that happened from there.

• 35:32Lewis Howes?

  So when you won the financial game, or the game of like, I've made more than you in a month or a year than you've made your whole lifetime.

• 35:38Alex Hormozi?

  Yeah.

• 35:39Lewis Howes?

  How did that make you feel? And when did you realize you needed to start playing a different game? And what would that game become?

• 35:45Alex Hormozi?

  Okay, there was three questions there. What was the first one?

• 35:47Lewis Howes?

  How did it make you feel the moment you crossed the finish line of the game of making so much more than he'd ever made in a short amount of time?

• 35:55Alex Hormozi?

  Relief, because we actually got our relationship back. Not like, you know, I wouldn't say we have like sunshine or rain, but like, we have a functioning relationship. I would say it's role-based. Like, I'm a, you know.

• 36:06Lewis Howes?

  Yes.

• 36:06Alex Hormozi?

  But what happened was, we are both very like, strong personalities. And it wasn't until, I think, that he accepted me as off in our relationship, that we were able to kind of like, move forward again. Because before that, my, because my, my dad's, he's a doctor, so he's always had, you know, like decent money. And I wanted to be beholden to no one, you know, excluding, including him. Like, I didn't want his money.

• 36:28Lewis Howes?

  Right.

• 36:28Alex Hormozi?

  I didn't want anything, you know, right? And so I think I had to establish my own, I had to like, really plant my own flag to be seen as a man in his eyes. And so I think once that happened, I think I thought, there was some level of like, there's no conflict here anymore. Like, this is undeniable. This is beyond reproach.

• 36:45Lewis Howes?

  Yes.

• 36:46Alex Hormozi?

  I have an attractive wife who's really nice and awesome. I have a business mix. I'm in good shape. And if you think about it, like the way, I mean, I'm just being really real with you. I blame my father for the many things that I have become in a lot of ways, right? Because everything that was not perfect was criticized, right? And so like, I've had six backs since I was 15.

• 37:06Lewis Howes?

  Wow.

• 37:06Alex Hormozi?

  And it was because he used to always criticize everyone who was overweight. And being that they're undisciplined and they don't, they don't try hard, right? And then I've, you know, like, and then it was like about having pretty, good, nice, everything, perfect women, right? Not just pretty, but like, everything has to be perfect, right? And then, and then making lots and lots of money. And so it's like, all of these elements I had to max out to, again, win it, that game. And, but my whole life was designed to be bulletproof was that, so that I just wouldn't be criticized. And so that was, because that was what I just, I knew that if I could criticize myself harder than anyone could, then if they did say anything, it was never as mean as what I would say to me.

• 37:43Lewis Howes?

  What's the meanest thing you've said to yourself?

• 37:44Alex Hormozi?

  Oh, like,

• 37:48Alex Hormozi?

  it's all around just not being good enough.

• 37:50Lewis Howes?

  Right now?

• 37:50Alex Hormozi?

  You know what I mean? Oh, not now, not now.

• 37:52Lewis Howes?

  But it was what it was, yeah.

• 37:53Alex Hormozi?

  A hundred percent. And it was, it was about being, to be fair, the, the actual thing would just be being weak. And so it was all about strength.

• 37:59Lewis Howes?

  Mentally, emotionally, physically weak, financially weak, everything.

• 38:02Alex Hormozi?

  Just weak.

• 38:03Lewis Howes?

  That's how you felt?

• 38:04Alex Hormozi?

  Yes.

• 38:05Lewis Howes?

  You felt powerless for most of your twenties, teens and twenties?

• 38:08Alex Hormozi?

  For sure. And so everything that I did was to counteract that, right? Like, what can I do?

• 38:14Lewis Howes?

  Get as big and strong as I can get, yeah.

• 38:15Alex Hormozi?

  Yeah.

• 38:16Lewis Howes?

  I'm gonna make as much money as possible, have all the women I can get, yeah.

• 38:18Alex Hormozi?

  Exactly, a hundred percent. And I was, and so I pushed against that to try and to quell that, you know, that, that need or that desire, that feeling.

• 38:26Lewis Howes?

  Did it satiate that need when you had all those things?

• 38:30Alex Hormozi?

  Yes and no. Yes, because when I got there, it forced me to change my perspective. Perspective is what changed the way I felt. Basically realizing that those things were never going to solve anything is what allowed me to. But, and Les Brown, I think, says this, where he says like, everyone knows that money doesn't, money doesn't make happiness, but everyone's like, I'll see for myself. And so I think it was one of those, like, I had to cross all the, like, and I'd say this not as a, as a slight to anyone else, but like, I did check off the easy ones from the list, which is like, from getting in shape, getting the good wife, getting the money in the business, all that stuff. Like, those are circumstantial. That means I can push with enough effort, I can change my conditions, I can change my surroundings and my environment. And if I can change those things,

• 39:12Alex Hormozi?

  will they make me feel better? And so I think, once I knew, beyond a shadow of a doubt, that that couldn't, that didn't work.

• 39:18Lewis Howes?

  Right. Maybe they helped, maybe they helped in some ways, but not the internal ways. So what did you have to shift your perspective, or what was that shift?

• 39:26Alex Hormozi?

  Yeah.

• 39:27Lewis Howes?

  Where you could still have it all, and then have it all internally as well?

• 39:31Alex Hormozi?

  I think that the whole ego death concept that we were talking about at the very beginning, I try not to talk about this too much, because I think it's, it's, a lot of people find, take offense to it, and I don't mean it that way. I sure, this is just what worked for me, and not as a criticism of anyone else's beliefs. For me, the idea that there was no such thing as legacy, that when I died, eventually, everything that I had would become dust, and that anything expanded over a long enough time horizon disappears, right? Which, if you are, like, Christian, for example, it's the whole book of Ecclesiastes. If you, and I think the realization of that allowed me to quiet my ego a lot, so that I could be more present in the

• 40:12Alex Hormozi?

  idea that, like, this moment will only be here in my mind, and anything that I do here will not last. And so, it shifted how I worked, it shifted how I saw relationships, and a lot of my thinking is around, like, my 85-year-old self. I feel like, my number one mentor is, like, my fictitious 85-year-old self, because it's the only person that I really believe has my best interest at heart, and it's no ulterior motive. And so, there's this, there's this tweet that I had that went pretty viral, but it was like, Listening to a billionaire or a millionaire, I'll just use that. Like, when I was in my twenties, I wanted to be a millionaire. And when I was a millionaire, I wanted to be in my twenties.

• 40:53Alex Hormozi?

  And so, the idea that my future self would trade all the money he had to be poor in twenty again, made me really reanalyze how I saw living life in the moment. If I literally in the future will value my present moment more than the achievement of the thing that I'm I'm seeking right now in the present, then something's, something's off. Because even my future self knows that. Because right now, I would pay all the money I have to get ten years back.

• 41:19Lewis Howes?

  Isn't that interesting?

• 41:20Alex Hormozi?

  Not even thinking about it. And so then, all of what I'm going to achieve in the next ten years, I would happily give up to be right where I am right now. And so, I think thinking about that really shifted a lot for me because it helped me quiet, I'm not saying eliminate, but quiet some of the thoughts that are more ego-driven. Because the ego always wants to like separate and isolate from others and prove that it's better. And if I know that it will all be dust, there is no better. Because we're all gonna be dust. And so, in that same way, if like, if we're all going to be dust and we're all siblings, like two very strong frames, for me at least, it helped me quiet that aspect. And I think in that way, I was able, I think, ask my people, but like, I think I was able to show up better as a leader.

• 42:03Alex Hormozi?

  I think I was better able to show up better as a husband. Show up better like to make content, things like that. Like, I don't think I could have made the stuff we make now five years ago, because I still think it would have been more, it would have been too.

• 42:15Lewis Howes?

  Proving something.

• 42:16Alex Hormozi?

  Yes. Perfect.

• 42:18Lewis Howes?

  Numbers proving.

• 42:19Alex Hormozi?

  Hundred percent of improving, proving someone, proving a fictitious foe wrong. Right? They're all talking about me.

• 42:26Lewis Howes?

  Right, right. No one cares about you.

• 42:28Alex Hormozi?

  Yeah, no. Exactly. And so that was really, and it's like, I had to shift from like, no one cares about you to like. I really want to have a shirt that says no lives matter, but I feel like it would get way too.

• 42:39Lewis Howes?

  No one cares about you.

• 42:41Alex Hormozi?

  But I think there's like a lot of like meat to that where it's like if we can, because in that way, we are all equal. And so I think it's almost the most egalitarian perspective is that like in the end, we will all be dust. And so I think in that way, that's like we have these exchanges that we have. And in some ways, it makes it more beautiful.

• 42:59Lewis Howes?

  Why do you think so many people care about power and respect so much?

• 43:04Alex Hormozi?

  It usually was withheld from them, I think. I think the things that we are, that were withheld from us are the things that usually we seek the most. I think. How many, how many really successful guys have daddy issues? You know what I mean? So many. And so it's like, okay, well, I didn't get his respect, so I'm going to have to compensate with my circumstances, with my environment, so that everyone respects me. And some people do that through fear, some people do that for violence, some people do that through success. It really just depends what vehicle you choose, but like the, I feel like the deep need is the same.

• 43:33Lewis Howes?

  Yeah, there's something like, I can't remember the statistic, but a number of US presidents, a big number of them like grew up without a father or their father died early in their life. And there was, I can't remember the stat, it's like 30 or 40% or something of like the US presidents lost their father or didn't have a father or something like that early on. And it's like, well, you know, now they're going to go prove something or go to be something. What about the, the habits that you learned of the wealthy people? Once you started to really earn and scale your wealth? Were you studying wealth or were you just fixated on like, how do I get one more customer and increase my prices, make better product?

• 44:17Lewis Howes?

  What did you learn about the habits of the rich?

• 44:19Alex Hormozi?

  I haven't learned much about the habits of the rich at all, to be very candid with you. I think that maybe there are some beliefs that, because like my dad was a doctor, I wouldn't say he was like, you know, ultra wealthy, but like we lived in upper middle class, you know, lifestyle, but. In terms of like wealth as I think you and I would probably understand it, I didn't know anything about that. And I don't think I've ever really studied it very much. I would say that my heroes now, like I started studying wealth after I became wealthy. So like.

• 44:44Lewis Howes?

  What did you learn about it afterwards? And what do wealthy people do that you think poor people don't do?

• 44:48Alex Hormozi?

  They pick higher leverage opportunities in a sentence. So like rich dad, poor dad, like poor dad says, get a job. Poor dad says, get a higher paying job. Like rich dad says, like, and the thing is, there's so many innate beliefs that seem commonplace. It's like, well, of course, you know what I mean? Like, well, of course, you know, and you know, you buy some real estate and it'll appreciate over time. Of course you invest in some stocks. Like, yeah, of course. But like, poor dads just don't say that. And so you have to like, learn that, I think. And I didn't, so I'm grateful in that I didn't have to learn that because I heard. That just was a, of course, yeah, once you have some money, like, of course, you don't spend your whole income. Of course you don't. And so there's a lot of of course you don'ts that I think I inherited just by being in like a saving father.

• 45:30Alex Hormozi?

  But there's also some upper middle class people who don't save anything. So like, but I think my dad did a lot of, I think he helped a lot with like money hygiene. I think I've had a lot of really good money hygiene from my dad. The big, the big breakthrough that I had for me was when I stopped focusing on, and this is going to sound backwards, but when I started my gyms, I was all about building the business. Right? And when I built the biggest companies that I've had and now recently sold, and now we have our portfolio. It was about how do we make the most money? And I know that's sounds completely backwards, but the only way that you can make the most money is to provide an exceptional valued service and charge a ton of money for it. And because I optimized around making money, I, I started going through for low capital expense businesses

• 46:14Alex Hormozi?

  because I had lost everything after that five year stint. And so I was like, never again am I going to reinvest every dollar from the business back into the business because I've lost it before. So when I started the, the next business and every business I've had thereafter, like we take dividends every month. And we do that because

• 46:32Lewis Howes?

  You don't wait till there's an exit 10 years later.

• 46:33Alex Hormozi?

  Exactly.

• 46:34Lewis Howes?

  Put all your money in.

• 46:35Alex Hormozi?

  I'd love to do both.

• 46:35Lewis Howes?

  Yeah, yeah.

• 46:36Alex Hormozi?

  Why not both?

• 46:37Lewis Howes?

  Sure.

• 46:37Alex Hormozi?

  Right? And so that was

• 46:38Lewis Howes?

  Take a dividend and get a bigger deal.

• 46:39Alex Hormozi?

  Of course.

• 46:40Lewis Howes?

  Yeah, but not just put money in and wait and get no money back.

• 46:43Alex Hormozi?

  100%. And the thing is, is, and this was a fallacy I had because people always talk about like reinvesting in their business. But I realized that that just meant that they weren't making profit. And so, and so the vast majority of businesses, even the software world is somewhat shifting in this. But they want to see profit. And then even better is if you have net free cash flow, which is just a fancy word for the amount of money that you can take out every month after making necessary investments in the business. And so I wanted to have businesses that pumped cash flow because I'd lost it all before. And so I think there's a lot of, like every, every one of my business seasons, I would say I've had three business seasons. I had my gym ownership period. I had my turnaround and early gym launch day period. And then I had prestigious labs, the licensing business in Allen. That was like my last season.

• 47:28Lewis Howes?

  Where you exited all of them.

• 47:30Alex Hormozi?

  Yeah. And then I'd say like now we're in, we're in our, this, our third season, I guess. So brick and mortar gyms, licensing, supplements and software. And then, you know, third season is what we have now. And each of those has a huge, huge magnitude of leverage that was added to it.

• 47:47Lewis Howes?

  Hmm.

• 47:47Alex Hormozi?

  And so, you know, this is like gym launch was started on accident in that I was like, this might be a way that I can make money.

• 47:52Lewis Howes?

  Because people were like, hey, you're doing this pretty well for your own gyms. Can you help me turn mine around? Yeah. And you're like, can you teach me what you've done?

• 47:58Alex Hormozi?

  It was exactly.

• 47:59Lewis Howes?

  All right, let me go in here and oh, I just helped them double their revenue in 60 days. Maybe I'm good at this. I'll go.

• 48:04Alex Hormozi?

  People pay me more for that than they'll pay me to help them lose 20 pounds.

• 48:06Lewis Howes?

  Right.

• 48:07Alex Hormozi?

  And so that was the big, that was when I went from B to, B to C to B to B.

• 48:10Lewis Howes?

  Yes.

• 48:10Alex Hormozi?

  And then from there, to be honest, it was just going up another, another order of magnitude because now instead of just building the one business, now we're building lots of businesses at the same time. And so that's kind of like why acquisition.com I think has a much higher, you know, has, has bigger feet for lack of a better term.

• 48:28Lewis Howes?

  Right. And so what do you look for when you're, you're acquiring a business or investing in a business that has cash flow? And what businesses have the best cash flow?

• 48:37Alex Hormozi?

  So this will be relevant for everybody in the audience and also hits on what we were talking about with the wealth thing, like wealthy people choose higher leverage opportunities. And we went over what leverage was earlier. The best businesses, especially in an inflationary period, are businesses that have low capital expenses. Okay. And that's because if you were- Can you have some examples? Yeah, so I'll give you opposite examples to make and then I'll drive it. So something that does have high capital expense, which is what you would not want to get into, would be like stuff that has lots of inventory, stuff that has lots of supply chain, lots of manufacturing, heavy equipment, things where you have to constantly buy more stuff in order to increase capacity, right? A low capital expense business are things like services, right? Services, you know, digital businesses, software is mixed because sometimes the development team can be considered a capital expense.

• 49:21Alex Hormozi?

  It really depends on how you build the dev team. But the idea is that if you can produce 10 times more units without phenomenally changing the cost basis, then you will have a business that has lower capital expenses. And so that's what you like, and most of those types of businesses produce more cash flow, have more pricing power. And so, I mean, that's what Warren Buffett invested in, right? It's high, you know, like insurance, GEICO. Right. There's no capital, it's risk. They're literally assessing risk. Air. It's math, like the business is math. Like if you really think it's just math, is the entire business of insurance. And what's crazy, just as a side note, is that a great way of figuring out the highest leverage businesses that exist is looking at the businesses that have been here the longest.

• 50:06Alex Hormozi?

  Insurance has been here since before the world wars. Right. The banks have been around forever, right? JP Morgan was around 1800s, right? The biggest insurance companies, they're all 100 plus years old. They're founded in the 1800s. And so when you have a business that's lasted that long, to me, that's a great breadcrumb of like, this thing has to print money. Because it means that they were able to still keep making money through wars, through famists, through depressions, all of it, and they were still able to keep going. And so I think that when people are like, when you look at all the, like many of the biggest businesses that exist, they have phenomenal gross margins. I don't want to get too like, you know, business termy here, but like- The gross margin is how much incremental cost it is to make a new, an extra widget.

• 50:48Alex Hormozi?

  Right? And so like a pill, for example, costs a hundred million dollars to make the first pill. And then every pill after that costs a penny.

• 50:54Lewis Howes?

  Sure.

• 50:56Alex Hormozi?

  And so the gross margin on the pill is very high because if they sell each pill for $10, they cost them a penny, those are great margins. And most people who are small business owners or people who are trying to get into small business, price like small business owners. They say, "Well, it costs me a dollar, I'll sell it for three, or I'll sell it for two." But if you're already starting on like a 50% gross margin, it's very, very hard to make money. Because think about like, that's at 100, you're already at half. And then you have the rest of everyone else you have to pay off that extra 50. Very hard to do. And so like, I'll give a couple of rules of thumb if anyone wants those. But like, if you're, if you're building a service-based business for us, I would, I, by all means, I have to get gross margins above 80%, which means five times the, the cost of goods. So if it costs me a hundred dollars a month, the minimum I'll charge is 500. Right?

• 51:39Alex Hormozi?

  And so that also gets you to think about business differently, which is not necessarily even how much can I charge? But how can I provide value and make it cost as little to me? How can I be as efficient as possible? And if you think about what technology does over time, is technology takes something that's valuable and makes the cost of delivering it less. And so that's what happens is a lot of people are able to have access to things that were once only for the wealthy, but now become for the common man because the cost basis decreases as a result of technology. And so, technology as we see it, you know, like, we can create technology, but you can also have technological breakthroughs just through process in your own business. It's like, and that's where niching down and being very specific about the avatar becomes important, especially when you're starting, because then you can productize the service. Because if you're doing everything custom, which most people when they're starting out do,

• 52:24Alex Hormozi?

  it becomes really difficult to become efficient. And it's really difficult to become efficient, you have very little margin. Right? Or you have to charge huge fees, which most people are too afraid to do. And so the flip side is, if I do the same thing over and over and over again, I will get better and more efficient at it, and I will know how to do it faster and quicker and cheaper. And I specifically choose this type of customer so that I can have more margin, because there are millions of even this one specific type of avatar. And then from there, I can take the gross margin, the extra cash that I have, and I can hire the best people, I can invest in marketing. But when you have such little margin to work off of, it's very difficult to make money.

• 52:57Lewis Howes?

  Yeah, it's so hard to grow. That's interesting. What, do you think it's going to be harder or easier to become wealthy and start businesses over the next few years with everything that's happened in the last couple of years? And where this whole great, you know? 2030 agendas coming, all these different things are happening, the war and all the, you know, there might be another pandemic, whatever it might be. Do you think it's gonna be easier or harder to make money?

• 53:19Alex Hormozi?

  I think technology in general makes things easier for most people. I mean, cause at the end of the day, it's just, it's, it's increased access for more people.

• 53:26Lewis Howes?

  Yeah.

• 53:26Alex Hormozi?

  And so I think.

• 53:27Lewis Howes?

  To reach more people.

• 53:28Alex Hormozi?

  Yeah.

• 53:28Lewis Howes?

  At any moment.

• 53:29Alex Hormozi?

  Yeah. If I were just to use history as a, as a, as a guide, businesses only gotten easier to get into. It's gotten more competitive and easier to get into. And so I think that what happens is just the arena gets bigger. So you got more gladiators, so it's more competitive, but more people can walk in. And so I think, but it, but for the world in general, the more people you have fighting to make amazing products and services, the better it is for society.

• 53:53Lewis Howes?

  Yeah.

• 53:54Alex Hormozi?

  But the downstream effect of that is that in a capitalist system, it is a winner take all for most, for, for many, not all, but for many businesses. And just by the nature of it, that does create social disarray. And it's just, but the thing is, is like, it's still the best system that we have. We don't have a perfect system. Cause the other, other systems remove incentive and humans are driven by incentive.

• 54:15Lewis Howes?

  Yeah.

• 54:15Alex Hormozi?

  Even the survivorship bias, like every MLM in the world exists off the fact that there's that one guy who makes $500,000 a month selling shake mix. And the other 5 million shake mix producers are like, someday, that'll be me.

• 54:25Lewis Howes?

  I could get there, yeah.

• 54:26Alex Hormozi?

  And it's just survivorship bias, right? But that's why the whole capitalist machine works. So I think they're like figuring out some sort of a, you know, creative way, like my, I, I put this in my, on my YouTube channel. But like the idea of having a hundred percent death tax, I thought was like, take down like the income taxes and all this stuff, but like the thing that creates the conglomerate at the top is that if, let's say, let's say I have a hundred billion dollars, right?

• 54:53Lewis Howes?

  That's interesting.

• 54:54Alex Hormozi?

  And if I have a hundred billion, I'm probably pretty good at managing it. Cause that's why I have a hundred billion. So let's say I gain 15%.

• 54:59Lewis Howes?

  You're holding it, you're, you're not using it yet.

• 55:01Alex Hormozi?

  Yeah. Let's say I gain 15% on my assets. So like 15 billion dollars, right, on my assets. It is so hard for anyone to to make that up in a lifetime with just the one and like that might be my kid who gains 15 and the next year he gains 20 like and so it the compounding effect of the wealth is across generational is where I think it gets crazy. But if there were 100% death tax, because obviously this is aligned with my belief that all of it disappears anyways. So this is obviously Alex's two cents in the world. But it's just basically dramatically lower the income income taxes. I think income taxes should be like as close to zero as possible and then make the capital gains taxes higher because that's only going to really affect the wealth if you really want to think about

• 55:43Alex Hormozi?

  it, right? Because people who if you make with your hands, awesome.

• 55:47Lewis Howes?

  Right.

• 55:47Alex Hormozi?

  If you make on your assets, that's just what that has has infinite leverage with with time. So if you trade the most expensive thing for your money, then I feel like you should get taxed less than if you trade no time for your money.

• 55:57Lewis Howes?

  Sure.

• 55:57Alex Hormozi?

  This is like a weird thought experiment.

• 55:59Lewis Howes?

  What do you think would happen if it was 100% death tax?

• 56:02Alex Hormozi?

  I think that billionaires would become far more giving. And as they approach the end, they know they can't keep it. And I also think it would change the way the game is played. Because if you know, because this is the analogy that I like, I haven't heard it anywhere else. I think it's mine. But if you were to imagine life as a poker game, right? And we everybody grows up, they become 18 years old, they can go into the casino, they get a chip or 21, whatever age you can be. And then you get it, you get a chip, and then you sit down at the table and you're dealt cards, right? There's all the other players around the table. And depending on the cards you're dealt and the skill you have, you begin to amass chips, right? And the difference between this fictitious, you know, casino and the casino of life is that in the real world, you can amass chips, you

• 56:43Alex Hormozi?

  cash out, you have a big wad of money, you walk out the door. But in the casino of life, when the grim reaper taps you and says you it's tells you it's time, you have to get out from the table, but your chips stay on the table and they push them to the middle to be distributed by everybody else and continue to get played for. And that's when you realize that it was a fake game with rules that never mattered to begin with. And so I bought this piece of land in Austin. It was this huge, it was like a big, really, really nice lot. And I remember thinking to myself like, Yeah, got me some land, right? I own this. I have that tree to that thing on the horizon. My, yeah, right. And then I thought to myself, I was like, well, the guy before me thought the same thing. And the guy before him thought the same thing. And the guy before him thought the same thing.

• 57:26Alex Hormozi?

  And I was like, and we've literally still been looking at the exact same piece of dirt. And it's just been cycled, even if it was father to son, even if it was family to whatever, like, like, death taxes everyone 100%. Like, even if the government doesn't, death taxes everybody 100%. And then time taxes your money to infinity, because like, people are like, I want to build a legacy. It's like, that's even just with like, within Americana, you know what I mean, within the times of America. But like, you go 1,000 years, and there's never been the same superpower over a 1,000 year period. And so we're like, I'm going to leave a legacy. It's like, but that would be like, you know, let's say, an ancient Greek saying, I'm going to leave a legacy for my kids, when like, they might change their currency by, you know, XYZ, or, and there's so many things, and I've had a real experience with this, because

• 58:07Alex Hormozi?

  my great, great grandfather was a ruler in Iran, which is where we're from. We got kicked out because we were a little of the Shah back in the day, which is why my dad came to the US. And so, despite that, my great, great grandfather had like, 400 wives, ruler, very, very wealthy.

• 58:25Lewis Howes?

  Really?

• 58:26Alex Hormozi?

  Yeah, very, very wealthy. Different time, different, different culture. Very, very wealthy. He was a ruler, right?

• 58:30Lewis Howes?

  Yeah, yeah.

• 58:30Alex Hormozi?

  All the money, all the women, all the everything.

• 58:32Lewis Howes?

  Everything.

• 58:32Alex Hormozi?

  Literally, a ruler, right? And, doesn't matter. And here I am, I'm not even that many generations separated from him, right? Even that, still.

• 58:40Lewis Howes?

  You don't have all that wealth, you don't have that land, yeah.

• 58:43Alex Hormozi?

  Right. And so like, the idea that we're going to somehow, because the desire for legacy is the desire to cheat death. Like, that's what it stems from. It's like, we don't want to die, we want to last forever. And so, we want to make something that is impermanent. And so, we fool ourselves into thinking that the accolades, and the material success, and the books we write, whatever, are going to last forever. And they're probably not. Right? And so, like, I mean, the sun's going to disappear at some point, right? So, like, if we don't do anything before then, like, at the very least, that's going to happen. And so, if that is the inevitable outcome, I think it shifts the way people think. And I think that's when you start changing, I mean, Tony Robbins talks about like, global, global belief systems. And that's why if someone like, adopts a new religious belief, like, everything changes, because the reasons they do, and the way they believe the world works, changes.

• 59:27Alex Hormozi?

  And so, I think that if they did do 100% death tax, it would be a really interesting way to see the downstream effects of how it would change the, the way the players played the game.

• 59:35Lewis Howes?

  What do you think would happen if all the billionaires started distributing their wealth sooner?

• 59:39Alex Hormozi?

  I think what would happen is

• 59:40Lewis Howes?

  Or would they be as hungry to be and driven to push and build and innovate?

• 59:45Alex Hormozi?

  Yes.

• 59:45Lewis Howes?

  To generate the wealth if they knew, ah, I gotta give this away anyways, quickly?

• 59:49Alex Hormozi?

  I think they would. Why? I think it's because it's, I think it's, I think, I'm gonna say something that may sound bad, but I think winners win because of who they are.

• 59:58Lewis Howes?

  Mm-hmm.

• 59:59Alex Hormozi?

  And so I think it's like sales guys, like you can have an incentive or a comp plan.

• 1:00:02Lewis Howes?

  They just wanna win.

• 1:00:03Alex Hormozi?

  But they are salespeople. And if I get on the phone, I want to sell because of who I am, not because of the comp. The comp is the ticket to get me to say yes to the deal, but it will not change my activity. I will do it because I love to sell, right? And so I think billionaires get there because they love the game. Like, you don't get to a billion without just, because you obviously don't need it for you. You stopped needing it for you millions and millions ago, right? And so you do it just because you love the game. What I do think, and the reason that I like that solution is because Elon Musk said this, but private enterprises 10 times as efficient at capital allocation compared to the government.

• 1:00:36Lewis Howes?

  Right.

• 1:00:36Alex Hormozi?

  So every dollar that private enterprise spends is 10 times more efficient. And so it is like if we were to death tax 100%, so whatever you accumulate while you're alive, it just goes back like, and the thing is, is it's not that it would go back into the system through the government. It would if you were lazy. But most people knowing the government was going to take it, the less efficient vehicle at the end of your life, you would then start thinking about how can I allocate this money efficiently? And so what I think what would happen is you'd create far more ingenuity and innovation around social enterprise before they die.

• 1:01:05Lewis Howes?

  Solving problems.

• 1:01:06Alex Hormozi?

  Knowing that the wealth would eventually disappear.

• 1:01:09Lewis Howes?

  Mm-hmm.

• 1:01:09Alex Hormozi?

  So like, it's more there's this backstop that no one wants to hit. And so I think what happened is they would change their behavior before hitting the backstop. I don't think a lot of people would just be dumping their billion to the government. I think just knowing that they had to would then trigger them to, yeah, yeah. That would be, you know, hey, that's Alex's two cents of the world, which is obviously different.

• 1:01:27Lewis Howes?

  What's, you just had a big exit, right? Last year, what was that for? How much?

• 1:01:30Alex Hormozi?

  It was 46.7.

• 1:01:32Lewis Howes?

  46 million. So when that enters your account.

• 1:01:35Alex Hormozi?

  Yeah.

• 1:01:36Lewis Howes?

  What did you expect would happen? What did happen? And what can you teach other people about what they should expect to happen when they have a big exit?

• 1:01:45Alex Hormozi?

  So I will say that I did not feel the money. I did feel the loss of cash flow because I had this, you know, I measured myself off cash flow for since.

• 1:01:54Lewis Howes?

  Now you don't have any.

• 1:01:55Alex Hormozi?

  Right.

• 1:01:56Lewis Howes?

  You got a big chunk, but then no money coming in every month.

• 1:01:58Alex Hormozi?

  So I actually felt and I probably still feel poorer now than I did before the exit.

• 1:02:06Lewis Howes?

  That's interesting.

• 1:02:06Alex Hormozi?

  Because the cash flow is going down. Now, I know that acquisition.com is going to be, I think significantly bigger than than those companies were. But in the interim, I definitely did not feel any better after that. I am happy that I did it because I do think I'm in the right, you know, vehicle doing what we're doing now. Making the books, making the YouTube channels, the Twitters, the social medias, all of them. But the cash flow is what I felt. And because I'd taken dividends my whole life, the amount of money that we got out was pretty much about what we already had anyways. So it was not life changing in any way. It didn't change how I lived at all. Like not at all. We didn't, we didn't have any big like, what are you gonna buy? I was like, well, I could, you know.

• 1:02:50Lewis Howes?

  I'm happy already.

• 1:02:50Alex Hormozi?

  Yeah, I could buy a hundred Lambos before the sale. You know what I mean? Like that wasn't, and I'd never bought them and I never did. So like, you know, because I don't get a lot of, out of that. What else was different? Losing, losing the team is hard. Because when you sell a company, you sell, you sell the people. Like that's something that people will talk about because it sounds bad. Yeah, but you sell, you sell the organism.

• 1:03:10Lewis Howes?

  You sell the, the system, the people, the processes and everything.

• 1:03:14Alex Hormozi?

  A hundred percent. And so that was, that was hard because there's definitely times now that we're building acquisition.com where I'm like, man, I wish I had so and so. Oh, I already taught this person everything I'd like, I have to do it again. So there is, but there's also some level of beauty to it because now that I'm doing acquisition.com, I have a different appreciation for what I'm doing. Because every other time that I've started something, it has been from a place of lack. It has been from a like, well, this is what's going to not make me poor. You know what I mean? Like the gyms was all about that and then I lost it all. So the second time was all about that again. So this time I'm starting not like that. And I know what it got like before we sold the companies last year. I spent basically 12 months not doing anything because I wasn't required in the business.

• 1:03:59Alex Hormozi?

  Like it truly, it ran. And so I had a lot, like it was very depressing.

• 1:04:04Lewis Howes?

  Exactly. It was very depressing for me. What happens if we don't have a purpose?

• 1:04:09Alex Hormozi?

  I mean, you find one.

• 1:04:12Alex Hormozi?

  You know what I mean? And so for me.

• 1:04:13Lewis Howes?

  But you're in a depressed state, even though you have, I mean, I'm sure you were fine, but you were emotionally, mentally like, what am I doing every day?

• 1:04:19Alex Hormozi?

  Exactly. I have nothing to do.

• 1:04:20Lewis Howes?

  Going to the gym for so long.

• 1:04:21Alex Hormozi?

  Right. Go out to dinner. Yeah. I mean, like, what else are you gonna do?

• 1:04:24Lewis Howes?

  I can eat every meal I want. I can travel. Okay, now what? After three months of that. You gotta have some mission. You gotta have some purpose, right? Even though you have the money, your safety, you have everything.

• 1:04:34Alex Hormozi?

  Yeah.

• 1:04:34Lewis Howes?

  Security, but it wasn't fulfilling.

• 1:04:36Alex Hormozi?

  A hundred percent. And so that was, that was 12 straight months. And it was because we were going through a sales process. So you can't start new initiatives because I'm in the middle of a sale.

• 1:04:47Alex Hormozi?

  And you don't want to like make any massive new hires. And so you just basically have to just like maintain. And the whole time you're wondering, I hope this deal goes through. Because if it doesn't, then you just wasted a year just doing nothing. And then you might have to do it again. So it was this, it was, it was a super, super, it was one of the most emotionally tiring years of my life because it's always like, this is about to happen. It's not going to happen. The deal's on the table. The deal's off the table. Like, there's all of this drama that's happening constantly. And I also, one of the things that sucked, that I didn't like was as soon as I had made the decision to sell, or that I was going to entertain the idea of selling, and this is a mistake I made. Everything became about satisfying a fictitious overlord of like, whoa, whoa, they think about this move?

• 1:05:32Alex Hormozi?

  Well, how will they value this? And I started thinking, whatever acquirer, whatever private equity was going to buy the company, like, how are they gonna see this? Are they gonna value this? Or is this a waste? And so what happened was I started making the private equity buyer my customer.

• 1:05:48Alex Hormozi?

  And that was a mistake. And so I think that like, at the end of the day, and now that, and what happened was, interestingly, we started the sales process because my wife and I were beat down. Like, we were just very tired of, you know, we've been in gyms for almost 10 years, you know, at that point. Not to say that. That's not a good thing, but like, whatever.

• 1:06:04Lewis Howes?

  You're on the course.

• 1:06:05Alex Hormozi?

  We were ready. We were ready. But in order for us to sell it and make it a solid business, we had to fix all the things that were wrong with it, right? And so we took a year before the year.

• 1:06:14Lewis Howes?

  So it was like 2020 or 2021?

• 1:06:16Alex Hormozi?

  Exactly, yeah. So it took two years, basically. One year to like fix everything and then one year to sell it. The thing is, it's just like when you have a house that you like fix up before you get ready to sell it. By the time you're about to sell it, you're like, I love this house.

• 1:06:26Lewis Howes?

  This is amazing.

• 1:06:27Alex Hormozi?

  I just fixed all these, all the problems I fixed.

• 1:06:29Lewis Howes?

  Now I've got more cash flow. It's more efficient. You know, I got rid of the toxic people.

• 1:06:33Alex Hormozi?

  Yes, exactly. And so it was again, a very like mind trip experience where I'm like, well, maybe I should just hold it as an asset that just produces cash flow. You know, Uncle Warren never sells anything. Like selling is what makes you rich. Keeping is what makes you wealthy. Like, you know, I'm like, I've got all these kinds of things in the back of my mind. But I think ultimately, like, I think no matter what we had done, we would have been fine. But I think for me right now, I think the likelihood that the choice, if I had two alternate realities, which I don't have to play in, I think that the choice will ultimately yield more impact for more people. I would not have the attention to do acquisition.com and the media stuff that we're doing right now. I wouldn't be here. Just straight, I wouldn't.

• 1:07:07Lewis Howes?

  You'd be focused on your gems.

• 1:07:08Alex Hormozi?

  Yeah, or the, yeah, exactly. On those companies that were in that portfolio. And acquisition.com would still be a side thing, but it probably wouldn't be the main thing. Whereas now it is 100% of my attention and the companies are killing it. And I feel renewed.

• 1:07:24Lewis Howes?

  Thank you so much for listening. I hope you enjoyed today's episode and it inspired you on your journey towards greatness. Make sure to check out the show notes in the description for a full rundown of today's show with all the important links. And also make sure to share this with a friend and subscribe over on Apple Podcasts as well. I really love hearing feedback from you guys. So share a review over on Apple and let me know what part of this episode resonated with you the most. And if no one's told you lately, I want to remind you that you are loved, you are worthy, and you matter. And now it's time to go out there and do something great.