How I Lost Everything Twice and Kept Going (Rachel Hollis Interview) | Ep 852

In this reshare of his interview on The Rachel Hollis Podcast, Alex (@AlexHormozi) opens up about the painful personal sacrifices, betrayals, and brutal lessons that shaped his journey, from losing everything twice to rebuilding with more clarity, discipline, and drive than ever before. Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast, you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned and will learn on his path from $100M to $1B in net worth. Wanna scale your business? Click here. Follow Alex Hormozi’s Socials: LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition Mentioned in this episode: Get access to the free $100M Scaling Roadmap at www.acquisition.com/roadmap

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

• 0:00Alex Hormozi?

  Welcome back to the game. This is a guest spot on Rachel Hollis's podcast. Main things I talk about in this podcast are the reality of hard work and sacrifice. You can't get around it. Learning from some of our failures and investing in companies in the early days of acquisition.com. And I also mentioned a little bit, as is the Hormozi way, talk about death to gain freedom of mind. There is a little bit of my story in this one. And so if you are somebody who's heard my story, then I would skip forward a little bit. And then you can get to the me stuff that is not my story that you've probably already heard. All right, rock and roll. Love you. Enjoy.

• 0:37Speaker 01

  Okay, so I know this is annoying, but I do feel like we have to give a tiny bit of your backstory to the audience who has not met you before. Because a big part, I'll just like lead you down the garden path in advance. A big part of what I'd love to talk to you about today's mindset. Because what I'm so in love with in your story is how many times it has all fallen apart and that you've rebuilt yourself. Because I feel like the world is in a place of really needing that conversation. So will you take the audience on a backstory of how you got to where you are today?

• 1:12Alex Hormozi?

  Yeah, and I will highlight my exceptional proclivity for finding a way to lose everything. You know, pulling defeat from the jaws of victory.

• 1:22Alex Hormozi?

  The quick story is that I was a management consultant out of college. Got to what I would consider a rock top experience where I was 22. I owned my own condo on like a pretty nice high rise, had a balcony, was looking over the city. And I was like, is this it? Like, I just do this until I die and maybe marry somebody. And I was like, this feels terrible. And so I quit with that whole quitting process took me six months from like when I decided that I didn't want to do this anymore until I actually quit. And I still think to this day, that was the hardest decision I've ever made. Because I think in the beginning, it's like you have to forego what you know for something that is unknown. And so you can quantify what you have to lose, but not what you have to gain. And I think that's what makes the decision so hard. Now, obviously, on the other side, it's very easy in retrospect.

• 2:05Alex Hormozi?

  Like, I can't believe it took me so long. It's like, yeah, but you didn't know. Right? It's like saying, oh, I should have just, you know, invested into the stock market for every year, for 20 years. It's like, yeah, but every single time you were about to do it, it's like, oh, but it's down now. Or it's about to go, like, there's all this uncertainty. Maybe it's different now, but just for context for the audience, so that I don't seem more heroic than I am. I ended up. Quitting my, I'll say quitting my family, not hardcore like that, but more so like the harder discussion was getting my family to be on board with the idea that I was going to quit my job. More so than me quitting, like quitting the job actually felt like the easy part. The telling everybody else that I was changing my life was the hard part. And so I drove across the country.

• 2:49Alex Hormozi?

  And when I was in it like halfway point, I called my dad to let him know that I'd quit my job and that I wanted, I was gonna do this other thing. And he was like, well, just come over, we'll talk about it. Cause he'd like talked me off the figurative ledge a bunch of times over the last however many months. And I was like, I'm gone. And then that's when obviously like he was upset about it.

• 3:09Speaker 01

  I feel like that's an important moment to pause because there are a lot of people listening who have these dreams and ideas, but are terrified of the people closest to them and what they will say. And I think because I know your story, I know that culturally it was really important for your dad that you went to college and had this amazing job. And he was a, sounds like a pretty authoritative force in your life. So, did you care that you were disappointing him? You finally got to the place where you're like, fuck it, like I'm out or?

• 3:37Alex Hormozi?

  Yeah, so the biggest decisions I've had in my life have always been in the face of like imminent death or what feels like it. I, I, I don't wanna like go into this like it's a sappy moment or something. But when I say I had like that rock top moment, it was, there was a period of time while I was in that job where I just hope I wouldn't wake up the next day. And so like there's like levels of being sad about things. And I think trying to operationalize sadness, like what is sadness? It's a perceived lack of options. That's why I feel so hopeless. You just don't know what to do. There's nowhere to like, you're like, you just feel very trapped. And so basically the conclusion that I made was if I would rather not be alive than what I'm currently doing, one of our dreams must die. His or mine.

• 4:22Alex Hormozi?

  And so I think my, my father's dream for my life had to die in order for mine to live. And so I guess upon realizing that, it, it, it made the stakes of the decision so much larger. And at the same time, it made my.

• 4:39Alex Hormozi?

  For lack of a better term, give a fuck around his perceived judgment of the decision. It minimized it a lot. And so that's what allowed me to kind of move forward. Basically, I had to accept the fact that I would be dead to my father for an extended period of time. And so I was like, well, I'd rather be dead to him than dead to me. And I think that's what that's what allowed me to really make the decision. But I basically went into it with, I will accept the fact that he will not talk to me again. And I'll accept the fact that most of the people that I know will not will not be around me. Now, as you play it out long term, some people come back, some people don't, whatever. But like in the moment, I had to be, I think, willing to lose it all on the emotional side in order to do what I wanted to do with my life.

• 5:20Speaker 01

  It's funny because I've experienced not the same path at all, but so many times people will look at the success that I have now and ask, women especially, like, how do you convince the people who love you that your dream is a good idea? How do you convince them? How do you convince them? And I'm like, you don't. You prove that you can do the thing you're saying. And then suddenly everyone is like, oh, we always do it. We knew she was gonna be huge. And I'm like, fuck you, you did not. I just feel like so many nuggets in what you're saying for people who are...

• 5:52Alex Hormozi?

  I'm gonna look up a quote.

• 5:53Speaker 01

  Yeah, finding themselves in the same place right now of like, oh, I need to convince so and so. I need to convince my husband. I need to convince mom and daddy. No, you need to stop putting energy into trying to convince those people and convince yourself.

• 6:06Alex Hormozi?

  So Epictetus has this really good quote.

• 6:09Speaker 01

  Let's go stoics.

• 6:10Alex Hormozi?

  He says, "If you're ever tempted to look for outside approval, realize that you have compromised your integrity. If you need a witness, be your own."

• 6:16Speaker 01

  Woo, okay.

• 6:17Alex Hormozi?

  And so I think to the same degree, it's like, how do I get my husband or my whatever, my kids, my cousin, my uncle, that person who I give all the power in my life to? How do I get them to approve of me? How do I get them realistically, what you're asking for is permission?

• 6:32Speaker 01

  Yes.

• 6:33Alex Hormozi?

  Which means that you're actually not in control of your life.

• 6:35Speaker 01

  A million percent.

• 6:36Alex Hormozi?

  And so I think a great frame for anyone who's in this spot is asking for support, not permission. Number one, and number two, being willing to accept the fact that they will not support you.

• 6:46Speaker 01

  Yeah. Oh, absolutely. And there is a freedom that comes in that. It's like, I'm just gonna go do this thing and we'll see how it turns out. But it does free up so much energy for you to focus on.

• 6:55Alex Hormozi?

  Oh, it's huge. It's like you have this massive exhale.

• 6:58Speaker 01

  Yeah.

• 6:58Alex Hormozi?

  That like, and everyone who's had one of these hard decisions that's pending in your life, whether it's the quitting the boss or telling the husband or whatever it is. It's like, as soon as you do it, you're like, why did I wait so long? You're like, you don't realize how, how heavy it is. One of my favorite kind of little isms is the heaviest thing in the world isn't iron or gold. It's an unmade decision.

• 7:16Speaker 01

  Yeah.

• 7:17Alex Hormozi?

  And I think that a lot of people are carrying around too many of them.

• 7:19Speaker 01

  Yeah, there's a great Tim Ferriss quote that I steal a lot, which is, the quality of your life is often determined by your willingness to have tough conversations. And I think a lot of people listening probably need to have a conversation like that with their version of your dad.

• 7:33Alex Hormozi?

  Yeah.

• 7:33Speaker 01

  So you're halfway across the country. You have this call. You're like, peace out. What happens then?

• 7:37Alex Hormozi?

  Then I show up at a gym owner's front doorstep because I'd found him on the internet.

• 7:42Speaker 01

  Why that?

• 7:43Alex Hormozi?

  Because I, so I had, I, I wanted to be an entrepreneur. I wanted to start a business. I had three different ideas. So I was either gonna do frozen yogurt.

• 7:51Speaker 01

  I don't know why I laughed. I'm so sorry.

• 7:53Alex Hormozi?

  No, it's fine.

• 7:53Speaker 01

  It would just be amazing if you were like the king of.

• 7:55Alex Hormozi?

  Frozen yogurt king, yeah. And I'm, hey, in a different timeline, I might be. I wish, I wish I was like in Cincinnati. So I could be like the Froyo king of Cincinnati. Like, I want to have a city associated. Yeah, exactly. Like, I want Frozy Nation. Oh, dude, it would have been.

• 8:10Speaker 01

  Actually, if you guys do a live event, you should do a pop-up like that because the insider peeps would know.

• 8:16Alex Hormozi?

  I can, I can talk about frozen. I'd know a lot about the business. I really do.

• 8:20Speaker 01

  No, I've heard you. I've heard you give advice to things. I'm like, okay, you could do this with any category, actually. Okay, sorry. So test prep was an option.

• 8:28Alex Hormozi?

  So test prep was the, was the third business. And that one, I was good at standardized tests. So it kind of, and it didn't require a ton of startup costs. And so between the three, I actually was leaning towards doing, first, I looked at the Froyo thing. I had only had $50,000 saved up. And it costs like $200,000, or at least that's what I found online. And I was like, oh no, I don't know if I can do it. And so then I was like, okay, maybe I'll do the test prep thing. I spent like four months to like basically creating like curriculum and like all this stuff. And I was gonna partner with one of my professors from Vanderbilt to like do it together. The long story short is that like, I, I flew back in, I presented all the stuff. And I was like, so this is what we'll do. And he's like, this is awesome. And then he just like took it and.

• 9:07Speaker 01

  He stole it from you.

• 9:08Alex Hormozi?

  I don't use those words.

• 9:09Speaker 01

  Okay.

• 9:10Alex Hormozi?

  But, you know, I know, like, he used it and I didn't have it. And so, yeah.

• 9:14Speaker 01

  Man, you've had some bad luck with partnerships.

• 9:17Alex Hormozi?

  Horrendous. Yeah. So, yeah, I used to tell Leila that her, my big red flag with her is that she was into me.

• 9:23Speaker 01

  Yeah, yeah.

• 9:25Alex Hormozi?

  I was like, the big thing, I was like, the thing that really throws me off about you is that you like me. I was actually really disheartened at that point because I was like, this was gonna be my thing. I had the whole business model worked out and everything and I was always into fitness. And so that was kind of the third, kind of third bucket. And, you know, the guys that I worked with were like, dude, you do nothing but talk about fitness. Like, we're tired of you talking about fitness. Just, they, they were like, we'll chip in to help you start a gym. And so that was when I started looking into the fitness business stuff. I found a guy who like had a fitness business like mentorship and it was for gym owners. And so I drove across the country and I showed up at his front door and he was like, what? Everyone has this idea in the movies that people were like, oh, my God.

• 10:04Speaker 01

  Yay.

• 10:05Alex Hormozi?

  And he was just like, I've got meetings right now. You can like hang out at the gym if you want. And I was like, he's like, well, where are you staying? I was like, I don't know. And he was like, what do you mean you don't know? I was like, I just got here. I was like, there's my car. That's all my stuff. He was like, all right, well, you can, you can stay at my place tonight, which is super generous of him. And so I stayed at his place.

• 10:24Speaker 01

  What city are you in at this point?

• 10:25Alex Hormozi?

  I was in Chino Hills.

• 10:26Speaker 01

  Okay.

• 10:27Alex Hormozi?

  So I went from Baltimore to Chino Hills.

• 10:28Speaker 01

  All right.

• 10:29Alex Hormozi?

  Straight through 36 hours. I packed all my food. Didn't stop.

• 10:31Speaker 01

  You wore the diaper and just?

• 10:33Alex Hormozi?

  Yeah.

• 10:34Speaker 01

  Yeah, like that astronaut. Okay, great.

• 10:35Alex Hormozi?

  All in.

• 10:36Speaker 01

  Cool.

• 10:36Alex Hormozi?

  Yeah, I didn't wear diapers. I just, what I did do, and the secret is I just didn't drink fluid. And then I was like, I just got my fluid from the food and called it a day. I'm just being real. I was like, I was, I wanted to, I wanted to leave Baltimore behind me.

• 10:48Speaker 01

  Yeah.

• 10:49Alex Hormozi?

  This is, I'm going. Yeah, I wanted to go. And so anyways, I got there, started being basically, I think this is kind of interesting. So I'll bring it up, which is I joined this mentorship for gym owners. I didn't own a gym. I'm also 22, just per context here. All right, and this is like a lot of old grisly, like grisly dudes.

• 11:09Speaker 01

  Yeah.

• 11:09Alex Hormozi?

  You know, who own gyms, it tends to be the archetype. And I'm like, hey, guys. Some of the best money I ever spent, because the first time they had like a meetup, I was like, yeah, so, you know, I'm trying to start a gym and I'm thinking about this. And they were like, oh, no, you want to have like rent has to be below this. And I was like, well, this is how many square feet. And they're like, oh, you don't need that. You need this. And I was like, okay, well, this is the equipment I was buying. They're like, no, that stuff, that brand breaks. This one has just great marketing, terrible product. This one, although good, girls will slip and break their shins on it. Don't do it. And I'm like, oh, my God. And they're like, oh, you know, you should get is these ones. These ones, you can get them at like these auctions that are like, so they just, I saved like $200,000 or probably like three years of mistakes from that first, just like all the things that they had made mistakes on. I just was sitting there just taking notes.

• 11:54Speaker 01

  Out of curiosity, were these gym owners who were not going to be in the area you wanted to build a gym, so they weren't direct competition?

• 12:00Alex Hormozi?

  Yeah.

• 12:01Speaker 01

  There's so much mad value in that. I started as an entrepreneur, as an event planner. And I was so desperate, I didn't know what I was doing. And I wanted to find other people who would talk to me about the business, just like you're saying, and nobody, it was like so closed door policy because everyone was terrified of competition.

• 12:17Alex Hormozi?

  Small business stuff.

• 12:18Speaker 01

  Well, it's total small business, but what I ended up finding a wealth of information with were vendors within my industry. So the florist, the photographer, the baker, they all knew the best venues, the best people to work with, don't talk to these clients, you should be charging this much. And they became my community. So if you can find that group of people where there isn't inherent competition, like readily available, I feel like you can find your goldmine.

• 12:43Alex Hormozi?

  And zooming out even one level to, to, to push on this, for anybody who is worried about like helping a competitor out, I have found that a business will fail or succeed based on how good the business owner is. And let's say that there are three event planning, you know, business owners that you know in an area, there are probably like 500 event planning businesses in that area, and you probably will never know any of them. And if all three of you help each other, there will just be three good event planning businesses and the other 497 will not have an advantage. And so I would encourage you to disregard the idea that there really is competition. And I now, you know, I'm friends with a lot of the people that some people might consider like, I mean, like in the M and A world for private equity, it's like, we share a deal flow, like, hey, this is a company that's probably not as much of a fit for me, like,

• 13:27Alex Hormozi?

  maybe like you might want to take a look at it. And I think. You just get a lot more out of collaboration and I think the world's significantly larger than most people give it credit for.

• 13:36Speaker 01

  Absolutely.

• 13:36Alex Hormozi?

  And so.

• 13:37Speaker 01

  Well, also, if you're an entrepreneur and you have that kind of scarcity mindset, you're fucked.

• 13:41Alex Hormozi?

  Yeah.

• 13:41Speaker 01

  Truly.

• 13:42Alex Hormozi?

  No, I agree.

• 13:42Speaker 01

  You're only gonna see the most basic level of opportunity and you're gonna burn out, so.

• 13:47Alex Hormozi?

  Yeah. So I, I, I, I learned all this stuff. I spent three months kind of being like a mini apprentice, just like watching everything, soaking it in. The, the guy who did this, sold the mentorship group, just allowed me to be his like EA essentially.

• 14:00Speaker 01

  Working for free or actually getting paid?

• 14:03Alex Hormozi?

  I got paid minimum wage.

• 14:04Speaker 01

  Okay. But, but honestly, I think that's a really good tip for, if you're listening to this and you don't have responsibilities, you don't have a family, and you have the opportunity to go apprentice for someone, it is, it's a goldmine and you're gonna learn stuff you would never learn otherwise. Anyway.

• 14:21Alex Hormozi?

  And I, and I've repeated this process over and over again in my life. And so I think, I actually do, I am grateful for the work that I did as a management consultant, which was the first job I had at a college, the one that I was miserable at. But I, I am grateful for doing it because it taught me the learning process. And so as a consultant, if you want to, you have to, like, I'm 22 and I have to go into a room with like four-star generals and all these, you know, lieutenants and colonels and all this stuff, whatever. I have to then go present or compile information in a way that has to be better and some interesting insight that they don't know as 30-year, you know, literal veterans of the career, of the, of the path. And so, and you have to do that in like three months. And so the

• 15:02Alex Hormozi?

  process of like rapid learning for a consultant is you go and talk to experts and then you ask them every question you can about what they think about everything. And then you say, can you give me like three to five other people who you respect, who you think have really good insight on this? And they give you three to five people. And so then you do the same thing with them. And then you ask them for three to five people. And so eventually you kind of like map the network of, of like expertise, because the same names will start coming up over and over. You're like, I already talked to Tom, already talked to, you know, Jack. And then we, you'd have like 600 pages of notes. And then you re-categorize the notes by topic. And then you, and then basically you take that and then you distill the notes down into kind of the clearest, like this is what the kind of priorities are. And that's how we would go into.

• 15:48Alex Hormozi?

  You know, how do we, you know, use satellites to kill the most bad guys based on resources? Like between different, you know, armed forces, like just wild stuff at M 22.

• 15:57Speaker 01

  Yeah.

• 15:57Alex Hormozi?

  And so I was doing like space cyber and intelligence for the military back. That was my first thing out of college. And so taking that idea, though, of like, experts already consolidate information for you ahead of time. So no one has a lack of information. It's everywhere, right? The problem is sifting through it. And so when you go to an expert, they've already done a huge amount of the lifting to sift through the information for you. So that you can just get the best information as fast as possible. And so that's why I was willing to pay as a 22 year old to go to this gym mentorship thing. Because I was like, well, they know more about gyms than I do. And I'd rather not waste five years trying to figure it out.

• 16:30Speaker 01

  If someone's hearing this for the first time, how would you tell kids today?

• 16:36Alex Hormozi?

  Yeah.

• 16:37Speaker 01

  To properly disseminate the right expert to take advice from? Because now anybody with a TikTok is like an expert in the field and it's leading people so astray.

• 16:47Alex Hormozi?

  Yeah.

• 16:47Speaker 01

  So how, I know this sounds super basic, but how can you figure out who actually knows what they're talking about?

• 16:53Alex Hormozi?

  It's a really good question. It's a really good question. I'll walk through how I think about it, which is you have, you know, in degrees of expertise, right? You have people who, you have your close friends, right? Those, these are the worst people to listen to because they have no idea. And they'll just give you opinions. And if, let's say if you're in the, in the wanting to make money space, if they are poor, uh, they will likely give you more poor person advice, which is probably not the good advice. After that, you've got, you know, strangers on the internet. Above that, you have people who have done what you want to do, which I think is at least the first real foothold into this of like, maybe some good information here. And then you have above that, people who have helped people like you get to where you want to go

• 17:33Alex Hormozi?

  and have repeatable kind of like metrics around like how they can do, like how they've helped people do that. And then I think the, the ultimate version of that is someone who has both been there themselves and helped other people just like you get to where you want to go in a way that's measurable, that you can see like, okay, this percentage of people do this. You know, it works out. And so that's probably from a, how I would look for vetting. The second thing is a totally different take on this, which is that expect that you will not succeed the first time. And that. You will need to learn from multiple people in order to kind of make it your own. And the easiest kind of visual of this is like, if you imagine you've got a bridge

• 18:16Alex Hormozi?

  and you have to like assemble all these bricks on the bridge to get to the other side. It's unlikely that the first person that you talk to will give you, let's say there's a hundred bricks to get to the other side. It's going to give you a hundred. They might give you eighty because you know nothing. So it's really easy for them to get you a bunch of bricks. But you might be like, wait, but I didn't get a dollar to the other side because the dollar's got to walk the way to cross the bridge. The dollar can't jump. It's got to walk all the way, all the bricks. The dollar has no, you know, no jumping ability. And so, so then it's like the next person you go to, you know, you pay and get help or you just watch their stuff, whatever. And it's like, and they give you another ten. So now you're at ninety, but you're like, man, I haven't, I still haven't made anything yet. And then all of a sudden, you know, somebody gives you the last ten and you're like, this guy's a genius.

• 18:58Alex Hormozi?

  But really, it's kind of like saying, oh, well, I hate my arithmetic teacher because once I learned calculus, I was like, oh, this guy's an idiot. It's like, he just laid the foundation.

• 19:07Speaker 01

  Yeah.

• 19:07Alex Hormozi?

  No, but it's ridiculous, but like we, like, I see it all the time on like internet stuff. Like I used to consume this guy's stuff and now I consume this guy's stuff and the other guy is bad. It's like, you needed this guy to get to this guy.

• 19:19Speaker 01

  Absolutely.

• 19:19Alex Hormozi?

  They're requisites.

• 19:20Speaker 01

  Yeah.

• 19:20Alex Hormozi?

  And so the, the meta concept for me is directional rather than exact. So I asked myself the question, will this person get me closer to my goal or not? And if it is closer, then I will, I'll start walking in that direction. When I get a little bit more information, I'll course correct. And I think that, that series of approximations is a, is a much faster way than trying to have the, what I call the fallacy of the perfect pick, which is that people will just stay for years trying to pick perfectly. When really it's like, well, I know it's not that way, so let's go north.

• 19:50Speaker 01

  Yeah.

• 19:51Alex Hormozi?

  And then as we go there, we'll ask more people and they're like, well, it's kind of this way. And you're like, okay, it's northwest. And then you start working your way towards it. And that's, that's how I kind of wander towards my destination.

• 19:59Speaker 01

  Yeah, I actually love that advice. I was just talking to my husband about this this morning. He was at the gym and he's like, man, there's this guy at the gym. I see him there every single day, like full on decked out, like those shirts with like the very, you probably own one. Just like total gym bro. He has all the equipment.

• 20:17Alex Hormozi?

  Yeah.

• 20:17Speaker 01

  And his body never changes. I see him every day, his body never changes and I feel so bad for this guy. Cause I'm like, how do you not realize that whatever you're doing is not working for you? And I was like, oh, that's a great, that's a great analogy for me to talk to Alex about. That what does that self-awareness look like to understand? I've started on this path. This is year three of doing the same thing. And it's not getting me anywhere.

• 20:44Alex Hormozi?

  Yeah, it's interesting when you said that. My immediate thought was a different direction. So I was circle, circle around.

• 20:51Speaker 01

  Yeah.

• 20:51Alex Hormozi?

  So one, what's interesting is that when I have, I have been made a fool of for assuming that my goals are everyone's goals.

• 21:02Speaker 01

  That's real.

• 21:03Alex Hormozi?

  And so I, so with the guy, because obviously I have a lot, I've spent a lot of time in the gym.

• 21:10Speaker 01

  No, crazy.

• 21:11Alex Hormozi?

  Personally, and then business-wise. What's interesting is that the reason someone buys is not the same as you sold. Not always. And so sometimes people come, I remember I was having this conversation with a lady was in the same position, right? So she's been here for six months and I'm like, Janet, what the hell? Like you look the same.

• 21:27Speaker 01

  Yeah.

• 21:27Alex Hormozi?

  You know, and mind you, she's been paying me for six months and she was like, I, I, I love coming. And I was just like, yeah, but like you wanted to lose weight. You came here to lose weight. You're not losing weight. Like, you know, what's going on? And I was almost a little bit aggressively, I didn't have as much, you know, tacit knowledge of navigating the situations as a 23-year-old.

• 21:45Speaker 01

  Yeah.

• 21:45Alex Hormozi?

  Talking to a 40-year-old woman about her weight, right? After her second child, whatever.

• 21:50Speaker 01

  Yeah.

• 21:51Alex Hormozi?

  And then it kind of dawned on me, I was like, she's not here for weight loss. I sold weight loss because that's what I assume I would have want.

• 21:57Speaker 01

  Yeah.

• 21:58Alex Hormozi?

  But she was here, like, there's a saying we have in the gym world, which is they come for the bikini, they stay for the community. Right? And so, you know, community is one of the things that someone might want. The other is like, some people just like, want to feel good. So they just want to get their sweat on and they just want to feel good or whatever. Some people, it's, it's their penance, right? It's like, I went out last night and I'm going to work out just so I can cancel it out.

• 22:16Speaker 01

  Right.

• 22:17Alex Hormozi?

  And that's, that's their version of it. And so I have, over time, been like, if you want to come to 100 events, then you might be coming for a different reason. And so to the same degree, I think through like, okay, how a customer derives value from a product or service is their choice.

• 22:33Speaker 01

  Yeah.

• 22:34Alex Hormozi?

  And so it's been helpful also from a product perspective and thinking about different customer archetypes in terms of what their goals are so that we can maximize value across all archetypes.

• 22:45Speaker 01

  Yeah.

• 22:45Alex Hormozi?

  Because if we only solve for the person who just wants to lose weight, there's actually a smaller percentage of people who actually want to lose weight versus respond to weight loss advertising, which is a different thing.

• 22:55Speaker 01

  Absolutely.

• 22:56Alex Hormozi?

  And so it was just that was like immediately where my head went.

• 22:58Speaker 01

  Yeah, I love that.

• 22:58Alex Hormozi?

  Obviously, I've dissected fitness goals for a little bit.

• 23:00Speaker 01

  Yeah, no, I love that. That's so real. And it's a really good reminder, too, the idea that not everybody is after the same goals. But I do think I would love your perspective if you're willing to give it on if you are wanting.

• 23:14Alex Hormozi?

  Yeah.

• 23:14Speaker 01

  But you want to raise the revenue numbers, you want to do, and it's just not working.

• 23:19Alex Hormozi?

  Yeah.

• 23:19Speaker 01

  But you are working so hard. You're sort of spinning your wheels.

• 23:22Alex Hormozi?

  Yeah. Typically, at least in a revenue situation, but I would say the same thing for a fitness goal or a relationship goal, I think it's more or less the same, is that so, under the assumption, and this is a big assumption, that you are working all the time, which, when we look under the hood, I would say that that is not often the case. There's the perception or the feeling that this is hard and therefore because it's hard all day, I must be working all day. But that, those two are not the same thing.

• 23:48Speaker 01

  What does it look like from your perspective, which I know is going to be intense, to work really hard? Like, no bullshit, what does it actually take from your perspective?

• 23:56Alex Hormozi?

  Yeah, I'll probably be canceled in the, in the, in the culture that we have today for, for how I work. I, I get it all the time. I get a lot of hate for it, which is ironic because I'm like, you don't need to work the way I work.

• 24:05Speaker 01

  Yeah, you don't have to do this.

• 24:06Alex Hormozi?

  You can do whatever you want.

• 24:07Speaker 01

  That, it is a very funny thing about, everyone will ask, how do you do it? How do you do it? How do you do it? And you're like, okay, this is how I do it. And people are like, how dare you? That's not a, I'm like, don't, don't do it then.

• 24:17Alex Hormozi?

  Yeah.

• 24:18Speaker 01

  Don't do it.

• 24:18Alex Hormozi?

  So I will, I'll, I'll give two answers. So the first is that, so really tactically, I'll give the tactical answer first and then I'll give the, the larger answer. So I work seven days a week. I take off days when I feel like I need to take off. I don't subscribe to the, the five day, two day setup or even like holidays in general. They are almost entirely manmade. The, the weekend system is only in the last hundred years that that was a thing. And so I reject the vast majority of kind of like societal norms for working. To the same end, I know that I can work usually pretty well about, I can work 12s pretty much straight through, but I would say that I usually work from like 5am to call it like 5,

• 25:03Alex Hormozi?

  like 5 to 5 works fine for me. And on the weekends, maybe it's like 5 to 3, something like that. And that works well. And if I feel a day where I'm like, man, I like, I need a day, then I take a day.

• 25:13Speaker 01

  Yeah.

• 25:14Alex Hormozi?

  And that's, and so that's, that's just like how I work. And I've done that for a long time.

• 25:18Speaker 01

  And I, I'm gonna guess, I'm reading between the lines here, a big distinction is that you enjoy working.

• 25:25Alex Hormozi?

  Oh, yeah.

• 25:25Speaker 01

  Yeah. I love to work too. If I did not have four kids, I would legitimately work 18 hours a day, every single day. And I often believe the universe put me in this exact scenario because it knows that I would have slowly destroyed myself by working nonstop. Because otherwise, like when they finally are grown, buckle up.

• 25:46Alex Hormozi?

  Yeah.

• 25:46Speaker 01

  But I think that's the thing that people don't get, is if you genuinely love it, if it's so much fun to do, because it is, assuming you found a path that you're into, it doesn't feel maybe like it might for someone else to go work at the bank. Like, it feels like something completely different.

• 26:02Alex Hormozi?

  Yeah, someone will take their context and then project it onto your situation and say, I could never do that. That's terrible. And because I could never do that, I have to find something wrong with you and your character in order to make myself feel okay that I didn't take that step.

• 26:13Speaker 01

  Absolutely.

• 26:14Alex Hormozi?

  From a, a little bit also more tactical is I tend to organize my day. For me, I work best in the morning in terms of like my brain's freshest. And so I will work use, like, I call it maker manager time. And so maker time is like, there's nothing on my calendar and I make stuff. There's manager time, which is meetings and everything else, slacks, whatever. I think that you cannot mix the two times. And the unfortunate part is if you want to start something, I recommend like a 444 schedule. So it's like four hours of promotion, which is letting people know about your stuff. Because otherwise, like your biggest threat to your business is that no one knows you exist.

• 26:49Speaker 01

  Yeah.

• 26:50Alex Hormozi?

  The second four hours is delivering what you promised to those people who find out about your stuff. And then the third four hours is figuring out what you need to do next. Now, you can change those four blocks about where you do them. The figure out what to do next is probably the first four hours. The promotion might be the second four hours and delivery might be the third four hours. But fundamentally, that's how I would divide it up if I were starting out. And then the more leverage you get, the more you can have kind of more maker time. Like Leila and I have kind of shadow images or like contrast schedules. So I would say four or five days a week for me, I have basically nothing on my calendar. And then I have two days where I just tell our team, I was like, just load me up. Just put as many things on my calendar as you can. Because if you think about the nature of management, the goal of a manager is to have no blanks

• 27:33Alex Hormozi?

  based on their calendar and to maximize, have as many interactions as possible to make as many decisions as they can to move things forward.

• 27:40Speaker 01

  It's my actual nightmare.

• 27:41Alex Hormozi?

  And that, but that is, that is like super, like, I mean, it's, it's an effective, that's how you manage, right? And so the, the problem is, the alternative is makers where, you know, a manager has, can have time blocks as small as five minutes on their calendar where they can, they can move things forward. For a maker, the time blocks are, you have like two a day. And so you're looking at four to six hour blocks is one block. And like, there's, there's memes about this, but like, there's nothing worse than a 10 a.m. meeting and nothing else on the calendar. Because it's like, okay, well, that's my morning.

• 28:13Speaker 01

  Yeah.

• 28:13Alex Hormozi?

  Because you're not going to like really get into whatever you're trying to do.

• 28:15Speaker 01

  Yes.

• 28:16Alex Hormozi?

  And so, because if you're doing maker stuff, you want to lose yourself into the work.

• 28:19Speaker 01

  Absolutely.

• 28:20Alex Hormozi?

  And so the problem is when makers managers have to work together. Because the manager says, hey, it's only five minutes. Why is this a big deal? And the, and the maker's like, well, that's half my day. And so the, you have to protect that kind of at all costs. And so if you're like, well, Alex, it must be, it must be nice to not be able to have things on your calendar for many days in a row. First answer, yes, it is nice. Second answer, it wasn't always that way. And so what I, the reason I, I mean, partially that I wake up so early is because I come from the fitness world and it's just like, I think that habit dies hard. But the guy that I, that I did that little mentorship with, and I came from a, a job that started at 10 a.m. So it's a totally different like shift for me. And I got to the gym at, at four. So it was a totally different, you know, perspective.

• 29:02Alex Hormozi?

  And so he worked 12 hours a day and he had multiple kids. But he wanted, he was a family man too. And so he just figured out, he's like, I need to work 12 hours a day though. And so he would work four to four. And then he would go home, pick the girls up from school and then have dinner with them and be president and be dad or whatever. And so I would get to the gym at four. And so I basically just would know that between 4am and noon, I would get all of my moving stuff forward done. And then afternoon, I just knew my day was shot. I was like, I'm just gonna be doing fires and doing everything else. And so I think that split has worked really well for me. And like to this day now, if for whatever reason, something has to get booked on the calendar and it's like on an empty day, they book back to front.

• 29:44Alex Hormozi?

  And so it'd be like, the first appointment would be at like 4:30 in the afternoon. So that I have uninterrupted time until then. And the second one, they'd be like at four to 4:30. And so they, they, they booked me back to, to front. And so those few things have helped tremendously for getting things done. The, the larger, so I said, that was gonna be really tactical in terms of like the work. Bigger picture, I think what's really interesting about entrepreneurship is that it is always hard. And I think what makes it hard is that you don't know the nature of the sacrifice that you will have to make to get to the next level.

• 30:16Speaker 01

  Yeah.

• 30:16Alex Hormozi?

  And so a lot of people, myself included, I always, and I still, I always like make this fallacious thinking process where I think like, oh, whatever I have to do to get to the next level is just more of what I'm currently doing. And it's just what's hard about the next level for whatever it is, is you have to sacrifice something different.

• 30:33Speaker 01

  Yeah.

• 30:34Alex Hormozi?

  And so the currency changes to get to the next level. So it's like you're paying in pesos and then you're paying in dollars. And you're like, oh, I have to pay more dollars. It's like, no, no, no, now you have to pay more rupees or you have to pay more euros. And you're like, wait, I have to pay more euro. I didn't think I would have to give euros up. Like I have to pay. So it's like you actually, you're the currency of the thing you pay for changes. And so like in the beginning, you know, the first person you have to conquer is you, right? And that, I don't think that ever really ends, but like, you know, you have to get over yourself. And then the next one is like, you have to conquer, you know, not being beholden to the desires of friends and family. But like, it's a different currency. You're like, I thought it was gonna be all about, all about cold calls and advertising. It's like, well, You have to first get over the fact that everybody is around you doesn't want you to do what you're doing.

• 31:13Speaker 01

  Yeah.

• 31:13Alex Hormozi?

  Because it reminds them of the risk that they were unwilling to take. But anyways, but it's like you have that. And then it's like, okay, what's the next thing that's gonna come? Then you have like the mechanics of the business. It's like, okay, now you switch into that mode. You have to learn all this, all this new language and all like, it's a whole new field, right? So you start learning that and you're like, okay, so I think I'm gonna have to learn a new field. Well, you have to keep doing that, but then the next level is like, okay, well, now I have to deal with people. And so you have employees and you have management, you have all that stuff and you're like, oh, my God. Okay, so this is a whole thing. And then like at another level, it's like then you have legal stuff that starts happening. You're like, oh, God, this stuff. So like it just, it does. But the thing is, is you have to keep paying in dollars.

• 31:50Alex Hormozi?

  And then you start now also paying in euros. And then you start also pay. And so it's, and so, and I think that, because most people who I've seen who either quit entrepreneurship or what I would consider like, stop the good fight, they're like, I'm good here. Is that it gets to a level, and I want to be clear, I don't think there's anything wrong with this. They get to a level like, I don't really want to pay in euros.

• 32:09Speaker 01

  Yeah.

• 32:10Alex Hormozi?

  And I think that's fine.

• 32:11Speaker 01

  Yep.

• 32:11Alex Hormozi?

  And I think people mistake my message. I'm like, I will, I'll talk about what it takes. You can decide whether that's worth it for you.

• 32:18Speaker 01

  Absolutely. Yeah. God, so good. I have distracted you from this journey many times, but circling. I know, we're on a journey together. But for those people who are building or don't know the story, I don't want to miss out on this. So how'd you go from working for that guy?

• 32:34Alex Hormozi?

  Yeah.

• 32:34Speaker 01

  No, this is.

• 32:35Alex Hormozi?

  We're so far.

• 32:35Speaker 01

  No, I love, this is my favorite kind of conversation. Because we're offering these nuggets along the way and I'm the one interrupting you. It's not your fault. But how did you go from being essentially an assistant to this guy to starting your own gym?

• 32:48Alex Hormozi?

  So I'll speed run this. So I, you know, I took all the advice that I could. I found a place that was 45 minutes from his place, maybe an hour from his place in Huntington Beach, California. So do you know his Huntington Beach? Like, I'm not competing, right? For that, for anyone who's worried. And I, I didn't have enough money to pay for two rents. And so I slept at the gym, which seems like more hardcore than it felt. I just felt like it was like a fun adventure. I was 20 something. I was like, all right, I'll sleep at the gym. But started the gym, I found out two weeks before the gym happened, I was supposed to have a partner who's gonna be 50 50 with me. He backed out. So then all of a sudden I was gonna have some savings, but I had already signed the lease. So I was like. All right, so all of my savings are going into this. And so I had, basically, the $50,000 that I had went into the gym,

• 33:31Alex Hormozi?

  and I had basically no money, and rent was $4,972 a month. And I'd never made money before, not really. I only found this out a year later, that I looked at my processing for my first month of business, and what was settled post-fees, like, not in payment plans, like, what actual cash was processed, was $4,972.

• 33:50Speaker 01

  No.

• 33:50Alex Hormozi?

  I found it out a year later. Like, I'd never, like, I'd never pull up my processing stuff.

• 33:54Speaker 01

  That's amazing.

• 33:55Alex Hormozi?

  No, wild.

• 33:55Speaker 01

  Yeah.

• 33:56Alex Hormozi?

  Yeah, so I slept at the gym, and I went to this little thing two weeks earlier, that was this new marketing thing that was cutting edge, 2013. It was called Facebook Ads. And so I ran, I went to a two-day workshop on Facebook Ads in 2013. And that is honestly, like, if I had not gone to that workshop, I don't know if I'd be here. Now, on one level, you'd be like, well, I would have tried again, I would have, maybe. But having a big, massive first loss would have sucked. And so I learned Facebook Ads, and I started running ads, and it worked. And by month nine, I had managers and trainers and all that stuff, and it worked out. And by month 15, I had my second location. And every six months after that, I opened a new location. I started, I decided I wanted to do a turnaround business. So I was like, you know, I'm really good at filling these gyms up. I could fill the gyms faster than, than I could build them.

• 34:42Alex Hormozi?

  So I was like, you know, it'd be easier if I just went to gyms that already existed, and just filled them up, and just figured out something around that. And so I spoke on a stage for showing what I was doing with my gyms. And to this day, kind of weird, I've never been more bombarded afterwards, which is weird, because it was such a, it was like, not a huge stage. And like, I had people for two days around me, non-stop. And I got like-

• 35:03Speaker 01

  Was it a, was it a conference for gym owners?

• 35:05Alex Hormozi?

  No, it was like an internet marketing conference. And so, and, but there were fitness people there. And I had 120 people give me their contact information. I've never had this happen. One guy gave me his credit card, and just said, "Charge me, and tell me what I get later." And I was like, "I'm a gym owner." I don't like, I have gyms. Like, I don't, like, I just got asked to speak, so. And so anyways, I got home, and I called the guy up, and I was like- Do you really want me to charge the card? And he was like, yeah. So I charged the card for $5,000. And he was like, what do I get? And I was like, I don't know, but I'll make you more than $5,000. And so it just so happened that he had a gym that he was about to open. And I was like, perfect. I'll fly out and I'll launch a gym for you. And so that was when Jim Launch was born.

• 35:47Alex Hormozi?

  Flew out to his gym and launched his gym and launched a couple of others in the area while I was there. Just reached out to people and was like, hey, want me to just send more people to your gym? And the deal is I get to keep the money and you get to keep the customer free. Like, that sounds like a pretty decent deal. And people suggested that. I started doing these launches, started working out. The guy that I did that first launch with was like, hey, man, we should do more of this stuff together. I'm a really good entrepreneur. And I was like, oh, cool. I'm young and I have six locations, but I am insecure and so I don't value that. And so I was like, yeah, I should partner with you. And he said, yeah, but here's the deal. I have, you know, I'm a little illiquid right now. And so, you know, my credit's a bit weird, divorce, you know, misunderstanding. You should sign and personally guarantee all the stuff and fund all the new locations and we'll just split it 50 50.

• 36:28Alex Hormozi?

  And then you can also work them, but like, I'll come behind you and, you know, operate them. So I ended up being like, okay, this launch thing works. So I sold my six, put all the cash into this new like launch and go model where he was going to come behind me. And the first gym crushed the launch that we were going to do together. And, and one morning I wake up and all the bank account is just empty. And I was like, hmm, that's not good. And it was just a deposit straight to him. And I was like, that's weird. And so I hit him up and I was like, hey, like, what's going on? And he was like, hey, I was just taking my half. And I was like, that was all of it. And he was like, well, I figured you're just skimming. And I was like, so you're accusing me of stealing? I was like, you haven't even been here. Like, first off, you haven't been here. Second, like, what?

• 37:10Alex Hormozi?

  And so I was like, I'd never been accused of any, like, I was like, I can't even imagine this. And so I had a, I had a mentor who I was talking to at the time. And he was like, might've been a misunderstanding. He was like, print out the bank statement, go line by line and just show them where all the expenses were. And I was like, okay, I'll do that. So I printed all out, highlighted everything, I annotated it and I like went to go meet with him. And I remember being like, let's just figure this out. I've got the stuff, we'll go through it. And he pushed it off that he's like, I don't need to see that shit. And as soon as that happened, I just remember like my stomach dropped. I was like, Oh, I just got robbed.

• 37:40Speaker 01

  Yeah.

• 37:40Alex Hormozi?

  And I was like, oh, fuck. Um, cause I, you know, I had my, I had six gyms. So like, it was years of work that went into this new thing and then it was gone. And I was like, what do I do? Anyways, uh, very stressful time for me. I got into a head-on DUI collision. Walked away 60 miles an hour. Yep. Walked away. Leila picked me up, uh, from prison or jail or whatever, whichever one it is.

• 38:02Speaker 01

  You were drunk. You were drunk.

• 38:04Alex Hormozi?

  I was drunk.

• 38:04Speaker 01

  Oh dang.

• 38:05Alex Hormozi?

  I was drunk.

• 38:06Speaker 01

  Oh wow.

• 38:08Alex Hormozi?

  Uh, I was, I was at a low point.

• 38:09Speaker 01

  Yeah.

• 38:10Alex Hormozi?

  You might, you might consider.

• 38:11Speaker 01

  Yeah.

• 38:11Alex Hormozi?

  And so she was like, hey, you know, we're dating at this time. We're six months into dating.

• 38:16Speaker 01

  Bless her heart.

• 38:17Alex Hormozi?

  Yeah. And she came with me a month. So a month after we met, I was like, I'm gonna do this launch thing. And mind you, when she met me, I have multiple gyms.

• 38:24Speaker 01

  Yeah, you're crushing it.

• 38:25Alex Hormozi?

  I'm crushing, just got off stage. All these people want to do business with me. I'm, you know, I'm the man. And then, you know, fast forward six months, she's coming out with me to do these launches. Cause I wanted her to learn how to do it so that we could, you know, do more of these together.

• 38:36Speaker 01

  Do more, yeah.

• 38:36Alex Hormozi?

  And, uh, she was like, hey, we should, uh, we should go back to doing that thing that worked. Instead of this whole partner thing. And so Leila went and, and, and launched a gym in Hawaii. I had to keep this gym running, but I didn't want to sell any more customers because it was clear that he wasn't gonna run it. And so I had to watch the very small amount of savings that I had left go to payroll and rent. But I couldn't do, I couldn't generate sales. Cause if I sold, then I'd have to keep, I'd have to keep pushing out when I would close the gym.

• 39:04Alex Hormozi?

  Real quick, guys, I have a special, special gift for you for being loyal listeners of the podcast. Leila and I spent probably an entire quarter putting together our scaling roadmap. It's breaking scaling into 10 stages and across all eight functions of the business. So you've got marketing, you've got sales, you've got product, you've got customer success, you've got IT, you've got recruiting, you've got HR, you've got finance. And we show the problems that emerge at every level of scale and how to graduate to the next level. It's all free and you can get it personalized to you. So it's about 30-ish pages for each of the stages. Once you get to the questions, it will tell you exactly where you're at and what you need to do to grow.

• 39:43Alex Hormozi?

  It's about 14 hours of stuff, but it's narrowed down so that you only have to watch the part that's relevant to you, which will probably be about 90 minutes. Um, and so if that's at all interesting, you can go to acquisition.com forward slash roadmap. R O A D map, roadmap.

• 39:59Alex Hormozi?

  I ended up closing the gym and basically losing everything else that I had at that point in paying for all like refunds and things like that. But everyone talks about harder to start a business, much harder to shut one down.

• 40:09Speaker 01

  Oh my god, so hard.

• 40:10Alex Hormozi?

  Much harder.

• 40:11Speaker 01

  So hard.

• 40:12Alex Hormozi?

  I had Leila write the checks. I was like, I can't do it. Like this is years of my work, like my whole, everything I have. And so anyways, we're back at zero again. So that's, you can consider that big failure number one.

• 40:21Speaker 01

  Yeah.

• 40:21Alex Hormozi?

  And so at this point, we're starting the launch business. And so we're like, we're gonna go all in on this. She's like, focus, please. Because I also had a chiropractor agency, a dental agency. I had this launch business and I had my six gyms.

• 40:33Speaker 01

  Yeah.

• 40:33Alex Hormozi?

  And so when I had the DUI, my mentor was like, your stress will kill you.

• 40:37Speaker 01

  Yeah.

• 40:38Alex Hormozi?

  And so from the beginning of this, I said, I only make my decisions when confronted with apparent death. And so this was the second time that I made one of these big decisions, which is I, I basically ended all my partnerships. So I called up, I was partnered with a guy on a couple of the locations back home. I said, hey, I'm out. And then I talked to the people I was partnered with on the chiropractor and the dental agency. And I was like, I'm out. The problem was that I was the one that was bringing all the business in. And so like, they're like, what are we gonna do? I was like, your half.

• 41:08Speaker 01

  Yeah.

• 41:08Alex Hormozi?

  You know, like, figure it out. Those all failed eventually, which was sad. But I was, I was, I was out. We started the new launch business. And so Leila's like, okay, this is what we're doing. I'm gonna get all my friends from, from high school to quit their jobs. And we're gonna go all in on this. And so she got her six friends from high school to quit, all of them to quit their jobs and join us in this like, we're gonna launch gyms now. And of course, because I'm dumb, I was like, yeah, we'll go from one to six a month immediately. Because I was like, we gotta make up for lost time. We would be here if I hadn't been an idiot. So we have to start there. We had one, we had one month in between when, when I basically lost everything and when I'd set up these next launches and when her friends were gonna quit. And in that month, one gym came up. And I was like, this is perfect. Like, this will replenish the bank account so that we

• 41:52Alex Hormozi?

  can fund these new launches. And so a launch, for context, would make about a hundred thousand dollars in a month. A guy hits me up out of nowhere and says, hey, I saw you speak at this thing years ago. I've got a newborn baby on the way and a two month old. And I need a job. And do you have anything in sales? And I was like, well, I have this gym I'm thinking about launching. And he was like, I can't really travel. And I was like, okay, well, this is where it is. And he was like, that's 10 minutes from me. Crazy. Like he met me at not there, like just random. I was like, all right, this actually might work because he could just, because it's all day when you're set, like when you're doing a launch. Like it's, you know, 12 hours, 14 hours a day of sales all day long. And so I was like, if I get the 14 hours back, I could build all the materials that I need for this, for the real business.

• 42:35Alex Hormozi?

  And that could be great. And so we launched the location. It does awesome. The guy crushes it. We do a hundred thousand dollars in sales. But what's weird is that all of a sudden I'm like, where's the, where's the money? Like I'm spending money on ads. I'm looking at the, the, the payment processor and the, it's, it's saying successful. But there's nothing coming in. And so I call Heartland, which is my processor. And I was like, hey, like it's too. My deposits come on Tuesdays. Like I've been doing this for many years. Like, why is it not there? And they're like, oh, it might've just been like something, I don't know. It, it'll come in the next few days. Didn't come. Next Tuesday, nothing again. And I was like, okay, it's been two weeks. Like what's going on? So I called back up and they're like, oh, the person you talked to probably didn't know. You're, you're doing, we're doing an annual review of accounts.

• 43:19Alex Hormozi?

  And I was like, I've been with you for like five years. Like, what do you mean annual review? And they're like, ah, it's just a new policy, blah, blah. And I was like, okay. So now the next Tuesday hits. And so there still hasn't been anything. This is now Christmas Eve and I'm now at Leila's parents' house because I've lost everything and I'm a winner. And I, I get on the phone with them and I was like, I am not getting off the phone until you send me the money. Like I was like, it's, it's, it felt weird being like, it's my money.

• 43:49Speaker 01

  Yeah.

• 43:49Alex Hormozi?

  But like, it was my money, you know, like just take your fee and deposit it, whatever. And they were like, well, we've seen some irregular activity. And the issue was, one, we'd done all those refunds at the gym that I had had, that I had to shut down.

• 44:02Speaker 01

  Oh, right.

• 44:03Alex Hormozi?

  The second issue was that I was processing payments for different states and areas.

• 44:09Speaker 01

  Yeah.

• 44:10Alex Hormozi?

  Out of my local gym processor, but I didn't, I didn't know how this worked. I was 20 something, right? So like, I'm processing transactions in Virginia. In a gym in California.

• 44:19Speaker 01

  Yeah.

• 44:20Alex Hormozi?

  And it just like, didn't make any sense. And so they were like, we're gonna, we're gonna shut your account down and we're gonna hold on to all of this for six months. And I was like, that's, what do you, what do you, how, I was like, how, how is this legal? Like, I was like, this is like theft. I was like, just, I was like, if you need to keep some of it to cover whatever, like, fine, keep it. But like, give me like, give me, give me half.

• 44:39Speaker 01

  Yeah.

• 44:39Alex Hormozi?

  Like, give me something.

• 44:40Speaker 01

  Yeah.

• 44:41Alex Hormozi?

  And they said, no. And so at this point, I had $23,000 left in my bank account from the, the launch that Leila did to cover our asses during all the refund period. I owed $22,000 in commissions.

• 44:52Speaker 01

  To the sales guy.

• 44:53Alex Hormozi?

  To the sales guy. For sales that I had not collected on.

• 44:55Speaker 01

  Yeah.

• 44:56Alex Hormozi?

  And so it was kind of one of these like moral, like, what do I do? And so I sent him $22,000 because he was with the guy, the kid and the baby and whatever.

• 45:05Speaker 01

  Yeah.

• 45:05Alex Hormozi?

  I just didn't want to give myself the opportunity to not. I just was like, just send it.

• 45:08Speaker 01

  Yeah.

• 45:09Alex Hormozi?

  Uh, that was the screenshot that I have, $1,000 left in my bank account in December of 26th. Oh, sorry, December of 2016. So I, I still have that screenshot because I was like, remember this.

• 45:17Speaker 01

  Yeah.

• 45:17Alex Hormozi?

  And so that was tough. That was the second time that I kind of lost everything. Big mistake there. And then, um, so then, you know, Leila has all of her friends quit her, quit their jobs, but I have no money. Uh, so they all quit their like, real jobs to do this with me and I have nothing. And so this is when I told Leila that I, um, thought that she should probably leave me. It would be a wise choice. I was like, this is probably not going to go well statistically. This is really low likelihood. Like, I can appreciate, like, I still have some brain power. Like, I don't think this is gonna work. But I was like, but I'm not, I'm not, I'm gonna do it, but I don't think it's gonna work. And so I still had my gym credit card that had a hundred thousand dollar limit on it. I went to go turn on the ads because it was for New Year's. So it's 26th, this is Eve, right?

• 46:02Alex Hormozi?

  I was like, we can make it all back.

• 46:04Speaker 01

  Yeah.

• 46:04Alex Hormozi?

  You know, like, come on. And so we're, we're, so here we are. We're, uh, so I turned on all the ads the next day after getting off the heartbreaking call on the 24th. So on the 26th is when I turned all the ads on. And, um, I was like, I'm going broke at $3,300 a day of money that I don't have to make this work. Cause I have six guys, hotels, airfare, per diems for food and then marketing spend for the location.

• 46:33Alex Hormozi?

  Every day, and that was shoestring. Like, those guys were living in hovels. I'll just put, I'll be honest. Like, they were young dudes, too. They, they, they stuck it out. But, within the next, you know, month, we made exactly the amount of money that my credit card bill was. So I basically broke even, but like, we had payment plans that were coming after that. So I was like, okay, this could work. The next month, I, I made like an extra, we did like a hundred thousand dollars the first month. The next month, we did like a hundred and seventy or eighty or something like that. And I was like, this might work. I made like thirty or forty thousand dollars in profit. Like, holy hell, like, this'll work. The next month, we did another, a little bit more, and made a little bit more profit. I was like, this, this could be a thing. But then, all of a sudden, Leila hits me, like, she tapped my shoulder one morning. I'm working early. And she was like, she just turns her laptop towards me, she was like, what's this?

• 47:17Alex Hormozi?

  And, it was just, it was just like, this never-ending waterfall of negative transactions. And I was like, what's going on? And so, it turns out that the gym owners that we had sold all these people into, we had one guy get on a chair inside of his gym and just say like, this is too many people. I can't handle this. Just refund and go home. And we'd already left the gym, like, we'd already launched the gym, filled it up, and our guy's at the next gym. But like, the way business works is that you don't run a hundred percent margins. And so, if you have to refund one hundred percent of your sales, you had costs, like, the credit card company will take a hundred percent, but you had costs that you spent that you don't have that money. So that happened. And then, word got around, and then the second gym owner did that as well. He did a little bit more cleverly.

• 48:01Alex Hormozi?

  He said, hey, I saw how much you paid that guy. I'm the one delivering the service. Refund with him. You can sign up for me with, for half. After I already paid the price of, basically, the cost of our customer, paid the commissions, paid the marketing, paid the hotel for the sales guy, all that stuff. And so, I learned a very important lesson, which is that you need to control the money and the delivery.

• 48:17Speaker 01

  Yeah.

• 48:18Alex Hormozi?

  And so, that was my big lesson there.

• 48:19Speaker 01

  Yeah, I just heard, I've been listening to your stuff forever, and I just heard the story the other day, because I was listening to the audiobook. No, no, the audiobook from the newest book. And I was like, oh, my God. How many times have they been wiped out?

• 48:33Alex Hormozi?

  Yeah.

• 48:33Speaker 01

  Which is such, like, brutal inside of it, but such a superpower. Like, if you actually look, because I think about this with you guys, from like, this was not that long ago to where you are today. And I think you have this super skill of moving fast because you've got your ass kicked so many times. And the difference is, you're standing back up. You have the knowledge of why it went wrong, and you're moving forward at a quicker pace. But how the fuck do you stand back up? The, I don't know, millions of times you feel like you've been screwed over.

• 49:08Alex Hormozi?

  Yeah, I think it's always been looking at the don't, I call it, which is like the, the other path. So I teach this with sales too, which is that like someone will present with some sort of obstacle. And a lot of times it's like, I mean, you can obviously overcome the obstacle, but I think it's a lot more powerful to be like, I understand this is your concern, but what about all the other things you could do that aren't this? And it's just selling against the don't. It's like, so like the biggest competitor in fitness is not the guy down the street, it's the couch. Like that's who you're competing against. For me, like in these situations, it was like, this sucks. But the alternative is what? Like I stop? And like, that was just like, not really an option. I used to repeat this stuff to myself a lot, which is like, you'd be amazed what you can accomplish when you have no choice.

• 49:52Alex Hormozi?

  And so it just like, wasn't a choi-, it wasn't on my, on my, my menu of things that I could do.

• 49:58Speaker 01

  Yeah.

• 49:59Alex Hormozi?

  And I was like, I'll just try again.

• 50:00Speaker 01

  Yeah.

• 50:00Alex Hormozi?

  You know, I'll just try again.

• 50:01Speaker 01

  Yeah, in 2020, I had, um, my business was based on live events.

• 50:06Alex Hormozi?

  Yeah.

• 50:06Speaker 01

  Which is a brutal time.

• 50:08Alex Hormozi?

  Mine was on gyms.

• 50:09Speaker 01

  Yeah, great, uh, great.

• 50:12Speaker 01

  Had 60 employees, had, you know, four huge events on the docket for the rest of 2020 and just slowly, yeah, just absolutely wiped out. And truly swear to God, the reason that I could stand back up and go again is for kids.

• 50:29Alex Hormozi?

  Yeah.

• 50:30Speaker 01

  I'm the person who supports my family. Like I, these are my kids, I gotta take care of them. There is no other option.

• 50:35Alex Hormozi?

  Yeah.

• 50:36Speaker 01

  Because there is a sort of wounded part of me that would have loved to just been like, fuck all this. I'm gonna take what I have and go, I don't know, live on a farm and just be okay.

• 50:47Alex Hormozi?

  Yeah.

• 50:47Speaker 01

  But that, that like, you gotta, you gotta find something in you. And honestly, if you don't have something that's easily accessible, create something, create something in your own mind, create an enemy, like prove the girls from middle school wrong, like prove your parent wrong, like do something to make yourself stand back up. Cause it's like, God, you might be so close to a breakthrough. And if you walk away now, you're never gonna know.

• 51:12Alex Hormozi?

  Yeah, I see a lot of it as like chapters in a book. We're like, this isn't where I want the story to end.

• 51:17Speaker 01

  Yeah.

• 51:18Alex Hormozi?

  And so we just get to, it's like, I think if you continue, it's like, I'm just gonna keep writing. Like, we're just gonna, we're gonna add another chapter. And another chapter has, and here's the interesting thing is that regression to the mean is, is normal. So like, if things are good, it's likely that they'll be less good in the future.

• 51:34Speaker 01

  Yeah.

• 51:34Alex Hormozi?

  If things are bad, it's likely they'll be less bad in the future. And so, I'm like, okay, well, things are, I mean, it's hard for things to get worse than this, but like, you know, I have a high probability that it'll get better.

• 51:46Speaker 01

  Yeah.

• 51:46Alex Hormozi?

  And so, and I think Joel Oregan has this really great way of framing it, but it's like, a lot of video games, you kind of like wake up as a character, and then you have a backstory. But then it's like, at that point, you decide what you want to do with the character.

• 51:59Speaker 01

  Yeah.

• 51:59Alex Hormozi?

  And so, in a lot of ways, it's like, this is just my backstory. And in a very like weird, you know, weird woo woo way, it's like, the past doesn't exist. And so if I'd started at zero, I'd already started at zero before, and I've started at zero multiple times now. And so it's like, I know what to do because I've been at zero before. And I was really excited the first time I was at zero, why should I be heartbroken now?

• 52:20Speaker 01

  Yeah.

• 52:21Alex Hormozi?

  Except now I have way more experience than the kid did in the beginning, so I probably have a way better shot than he did, and he was stoked. So why shouldn't I be stoked?

• 52:27Speaker 01

  Yeah, that's sick.

• 52:28Alex Hormozi?

  There's a friend of mine, Brooke Castillo, you might know her.

• 52:30Speaker 01

  Yeah.

• 52:31Alex Hormozi?

  She asked a really good question on like bad situations, which was like, how could this be awesome? So it's like, I'm about to get divorced, how could this be awesome?

• 52:39Speaker 01

  Mm-hmm.

• 52:39Alex Hormozi?

  I'm about to get sued, how could this be awesome? Like, in what, in what storyline or what timeline would this terrible thing be awesome? And what do I need to change about myself and my surroundings so that that becomes the pivotal moment to basically become the foundation for the next thing?

• 52:54Speaker 01

  Yeah.

• 52:54Alex Hormozi?

  And so, yeah, I'll close the loop for everybody. We ended up basically having to make a hundred fifty thousand dollars in profit in the next thirty days, and I never made a hundred fifty thousand dollars in profit ever in a month. I worked forty-eight hours, asked Leila, I said, you know, she was, had these side clients that she was doing fitness with because she had a personal training business before that. And I was basically paying for the groceries. Leila was, was basically supporting. So like, Jibba was making all this revenue, but like, no profit, and like, making money, just losing everything, making money, losing everything. And, and I was like, how long does that take you? And she was like, I don't know, four hours a month. She was like, why? She thought I was like attacking her, and she's like, why? Like, hey, it pays for our food. And I was like, I'm not, I'm not saying it's bad. I was like, four hours, that's not bad. You're making four grand a month? I was like, you know, four hours, forty? I was like, if we did forty hours, it'd make- Forty grand, you know, a week, that's not bad, right?

• 53:38Alex Hormozi?

  And so I like took a bunch of prescription stimulants and like didn't sleep for two days. And banged out like one of the best sales letters.

• 53:45Speaker 01

  What, like Adderall?

• 53:45Alex Hormozi?

  Yeah.

• 53:46Speaker 01

  Oh, my god.

• 53:46Alex Hormozi?

  They got one of the best sales letters ever written. And it was, and it was, it was Leila's story of how she lost a hundred pounds and then did a fitness competition. She was like, this is ridiculous. She's like, this is so heart wrenching and you don't even know my story. She's like, I would, you know, I was like, I was like, my thighs are rubbing together because I was overweight. And I was like, and I would always wear the cover all like when I was on the beach with my family. Because I didn't want anyone to see it. I would always be on the edge of pictures. I just tried to think of all these like terrible moments. Anyways, I started running ads to it. She started, we just started doing the sales and doing like a thousand bucks a day in sales. And I was like, okay, at this point, we had eight sales guys. Uh, because I had to sell more to start to, I had to keep selling more every month to cover the refunds from the month before of these gym owners who were doing this. Cause I didn't know a way out.

• 54:27Speaker 01

  Yeah.

• 54:27Alex Hormozi?

  So that was how I was, I started doing that. And then that's when it was actually really stressful. Cause I was like, I have to just keep selling more to cover refunds from the month before. Like this is not sustainable. And so that's when we started doing this. Thousand bucks a day, I was like, great, I could take the eight guys, bring them in. We can do eight thousand a day, almost all profit. We could get a hundred fifty thousand dollars of profit. So I got really excited. And so I ate more gyms that were supposed to launch the next month. And I was calling them up and I was like, hey, we're out, we're, we're changing our model, like, you know, wish you the best. And that's when, you know, I said, I'll just, I'll, I'll, I'll show you how to do it. Rather than me flying out there and doing it myself. And, um, and then the guy was like, well, how much? And I said, I just picked a big number because I wanted to get them off the phone. I was like six thousand dollars. And he was like, six K, he was like, done.

• 55:07Alex Hormozi?

  And I just remember, I just remember like, like floating out of myself being like, because I'm used to selling memberships here. Like I'm used to making three hundred, four hundred, five hundred dollar sales, two hundred dollar supplement sales. Like that was the, so me adding a, me ten X or twelve Xing what I'm used to collecting was like, just like an unfathomable number. And you said, yeah, and I was like, holy shit, six grand. And I had seven more calls that day. So then I was like, okay, he's like, well, when do I get my login? And I was like, it was Friday, I was like, Monday. And so, and he was like, okay, cool. Called the next guy, same conversation. And he was like, how much? And I was like, eight grand. And he was like, yeah, done. And I was like, holy shit. And so by the end of the day, I collected $60,000. And I was like, and Leila came in from doing all these sales, doing weight loss sales. I was like, how's your day?

• 55:52Alex Hormozi?

  She got, so two for two. And I was like, that's awesome. And I was like, I think, I think we're still in the gym business. And now, and now she's like, you just told me.

• 55:59Speaker 01

  You suck.

• 56:00Alex Hormozi?

  You just told me we're going all in on queen transformation, which we called it. Like you wrote this whole sales letter. You sold me on how we're not doing the in-person thing. We're doing the online thing. And I was like, yeah, I think we were just doing it wrong.

• 56:10Speaker 01

  Yeah.

• 56:11Alex Hormozi?

  I then called back all the 30 plus gyms that I'd done turnarounds for. And I was like, hey, remember how I just made a hundred grand out of your gym? And you're really upset about it because I'm just some kid and you're an experienced gym owner? And I still filled it up. Want me to show you how I did it? And they were like, yeah. And so I just went back, got 30 more sales. And I was able to cover the $150,000 in basically refunds I was gonna have to pay for within 30 days. And got like back to neutral, back to zero.

• 56:34Speaker 01

  Yeah.

• 56:34Alex Hormozi?

  I was, I was, I was $150,000 poorer than zero.

• 56:37Speaker 01

  Yeah. Just wanted to get even.

• 56:40Alex Hormozi?

  And so, yeah. And so then, uh, and then that's when, that's when gym launch took off. And so that's when it, so I'll give you, I'll give, the rest of the story is the, is, is, is less fun, less fun. It's like, we went from, you know, zero to four, four and a half million a month in like 20 months.

• 56:53Speaker 01

  The fact that you just said it's the less fun part.

• 56:55Alex Hormozi?

  Yeah.

• 56:56Speaker 01

  I mean, that probably says something about your psychology, but actually this is the, this is the victorious moment. Is that it went on to be very successful. You guys launched a supplement, grand as well. Did you sell both of those or you still retain?

• 57:08Alex Hormozi?

  Yeah, okay.

• 57:09Speaker 01

  So you sold those together. Now you're an acquisition. Will you tell us a little bit about that?

• 57:14Alex Hormozi?

  Yeah. Hopefully the audience is bored to tears yet.

• 57:16Speaker 01

  Are you kidding? They are peeing their pants right now. They love this conversation.

• 57:20Alex Hormozi?

  Leila and I had probably taken about 40 million in distributions from gym launch during the time that we owned it. And then the sale was for 46. And so we had a decent enough amount of money to start like a family office. Well, from, from, from investing perspectives, like that's small, like after, you need about 50 to like really start a true family office.

• 57:38Speaker 01

  Got it.

• 57:39Alex Hormozi?

  Otherwise it's like fractional, it's different. You know what I mean? We're like, I think we can, we can do this. And so we started making investments in companies that were, when we started this, it was gonna be e-learning businesses to try and basically run the same playbook. That we did with gym launch. It turned out that was not a good model for a variety of reasons. We have now just transitioned to taking larger and larger stakes in companies. And we now really just look for revenue retention. Uh, which is the only thing that we really care about. And then, because we know how to do the marketing and sales.

• 58:07Speaker 01

  Yeah.

• 58:07Alex Hormozi?

  And so it's like, we just want to find products or services that people never want to stop buying.

• 58:10Speaker 01

  Right.

• 58:11Alex Hormozi?

  And I will tell you, for anybody who's listening to this, one of the big pieces of advice that I can give you is that, instead of trying to find a product and then being like, how do I get people to not stop buying this? Just find stuff people already don't stop buying.

• 58:25Speaker 01

  Yeah.

• 58:26Alex Hormozi?

  It's a lot easier. It's like, if you're like, I promise you that there's nothing that you can do to a gym membership to get someone to stay more than their insurance or their internet.

• 58:36Speaker 01

  Hmm, yeah.

• 58:38Alex Hormozi?

  It's just like, just, it's just, it's just, it's the dynamics of the, of the service or business. And so, and that, that, that took me probably like two years to learn.

• 58:46Speaker 01

  Yeah.

• 58:47Alex Hormozi?

  So there's, you know, two years and two, in one minute.

• 58:49Speaker 01

  Well, and I think e-learning in a lot of ways, I know this is gonna feel maybe harsh for people who are in the e-learning business, tends to be trendy. So certain things will spike and become more popular. Yeah, um, become more popular. Something that blows up in 2020 or 2021 might not be relevant in 25.

• 59:07Alex Hormozi?

  Yeah.

• 59:07Speaker 01

  And I've heard you guys talk about that, that you're interested in businesses that are retaining profit, not just hitting a certain revenue goal, which is so crucial. So that's a big learning in the last couple of years. How long have you guys been doing it now?

• 59:18Alex Hormozi?

  Uh, the first deal was 2020.

• 59:20Speaker 01

  Okay. So, okay, so it's been a, it's been a hot minute.

• 59:23Alex Hormozi?

  I've like a, I would say investors usually are like 10-year cycles. So I'm like halfway through a cycle, basically. Learned, I mean, learned a lot. Most of the things I learned will probably not be interesting to the audience, but, uh, but yeah.

• 59:33Speaker 01

  Let's steal some.

• 59:35Alex Hormozi?

  We're talking about mindset, right?

• 59:36Speaker 01

  Yeah, no, no, no. I would love to steal a bit from your brain too, because I've heard you now and I really want to encourage the audience. Your podcast is fantastic. Um, and I feel like you guys do a great job of doing so many different types of content, which I love, because it's not all going to be relevant to every type of business owner. But what are some of the biggest mistakes you see new business owners make? Or the most common questions you get in that, from the newbies?

• 59:59Alex Hormozi?

  I'm pumped for this.

• 1:00:00Speaker 01

  Great.

• 1:00:00Alex Hormozi?

  So there are five that I see that happen on a regular basis.

• 1:00:06Speaker 01

  Great.

• 1:00:06Alex Hormozi?

  And they come from apparently impossible choices. Overcompensation of employees structurally. It's like, for example, I've got, you know, I've got people at my chiropractor clinic and I pay the therapist 50% of revenue. Tough to scale, underpriced, my facility. I'm using brick and mortar, but this works for, you could be digital, it doesn't really matter. I'm at capacity and I'm not making profit.

• 1:00:30Speaker 01

  Yeah.

• 1:00:30Alex Hormozi?

  That's a pricing issue.

• 1:00:31Speaker 01

  Yeah, a million percent.

• 1:00:32Alex Hormozi?

  But with each of them, though, there's an apparent rock and hard place scenario, though. If I pay people less, I'm gonna lose all my therapists and I'm gonna lose my business. If I raise my prices, I'm gonna lose all my customers. Right, like, and next one is woman in the red dress. So more commonly known as shiny object syndrome, chasing multiple rabbits and catching none, and spinning your plates because, and if you, if you, if you heard, at least backtrack into the story there, like, I had a chiropractor agency, a dental agency, I had six gyms, and I was doing a launch business. I made no money. I mean, I made revenue, but I didn't have enough attention to go deep enough on anything. So all I was doing was pure fires all the time, which is, one, a miserable existence, but, two, you just make way less money.

• 1:01:11Speaker 01

  Yeah.

• 1:01:11Alex Hormozi?

  And the guy you're competing against who's beating you is only doing that.

• 1:01:13Speaker 01

  Yeah.

• 1:01:14Alex Hormozi?

  And that's the thing. And I think it's actually, believe it or not, I actually think it's arrogant to believe that you can do multiple things and beat somebody who's only doing one.

• 1:01:20Speaker 01

  That's so real. I, I'm on a, a book tour right now, and I do a Q and A at the end. And this woman stood up in, I wanna say Toronto, and she's like, I have a business, and I'm doing this, and I'm doing this, and I'm doing this, and I'm doing this. And I was like, can I tough love you right now? She said, yeah. And I said, you don't have a business. You have a bunch of side hustles.

• 1:01:37Alex Hormozi?

  Yeah, sure.

• 1:01:38Speaker 01

  None of these things are connected. You gotta pick one, you gotta go all in. And a lot of people need to hear that. I, I've never thought about it as ego, but you're exactly right. Like, why are you the one person who can successfully navigate 10 businesses at once? Of course you can.

• 1:01:51Alex Hormozi?

  Well, Elon does it, and it's like, well.

• 1:01:53Speaker 01

  He has a billion staff members.

• 1:01:56Alex Hormozi?

  And he, yeah, we won't even talk about it, because he's an alien, and so it doesn't really matter. But like, for all of us mere mortals, and this, I'll, I'll tell you this little framework. So if you're like, well, Elon did it, it's like, well, did you, you know, drop out of whatever Ivy League school that you, he dropped out of, and then code from scratch, zip two when you were 21? No, you didn't do that? So you're probably not Elon.

• 1:02:17Speaker 01

  Yeah.

• 1:02:17Alex Hormozi?

  Well, I'm gonna be the next Warren Buffett. Did you buy your first stock at H7?

• 1:02:22Alex Hormozi?

  Did you make a huge purchase right after Pearl Harbor got bombed? When you thought the nation, like when people didn't know?

• 1:02:30Speaker 01

  Do you know Charlie Munger? Like, do you are? No, you are not.

• 1:02:33Alex Hormozi?

  No, it's just like, okay, I'm gonna, I'm gonna have a hold co. And, and you know, I'm 30 years old. It's like.

• 1:02:38Speaker 01

  With love.

• 1:02:39Alex Hormozi?

  Let's be real.

• 1:02:39Speaker 01

  I, I say this with so much love and I'll take this on myself, too. If you were a phenom, we'd know it by now.

• 1:02:47Alex Hormozi?

  Yeah.

• 1:02:48Speaker 01

  If you were a genius, we'd already know. So just assume that you're gonna work hard like a lot of other people and find a way. If you were those people, we would already know. Uh, there's this great quote, I, I was a little nervous. I was on my run this morning. I was like, Jesus, I hope I don't accidentally quote Alex to Alex. I listen to so many podcasts, but I heard this thing the other day that was like, if you're the guy, you don't have to tell anybody you're the guy. Like, if you're her, you don't have to tell anybody you're her. We already know. So, yes, good advice.

• 1:03:18Alex Hormozi?

  I like that.

• 1:03:18Speaker 01

  You're not Elon, so pick one freaking thing.

• 1:03:21Alex Hormozi?

  The next is over expansion. I, I just opened my second location and I'm, I'm just talking brick and mortar terms with the supplies for everything. And it's, it's almost like the shiny object one, except you, they, the businesses are interrelated and it was the correct next step, just not now.

• 1:03:38Speaker 01

  Yeah.

• 1:03:38Alex Hormozi?

  And so typically over expansion is actually a function of being under talented. And so, yeah.

• 1:03:44Speaker 01

  Someone just got punched in the stomach right now. Someone was just like, oh, I needed that.

• 1:03:48Alex Hormozi?

  And so, and, and when I say under talented, there's two, two components to that. One is there's you, right? The other side of it is that the talent on your team is just insufficient.

• 1:03:55Speaker 01

  Yes.

• 1:03:55Alex Hormozi?

  And so like, could you have gone to the second location? Could you start that second product line or the second service line? Absolutely. If you had enough bandwidth for you, which you can only get back with somebody else who's good.

• 1:04:05Speaker 01

  Mm hmm.

• 1:04:06Alex Hormozi?

  Right? And so that's, it's usually a who issue for over expansion. Number five is you're serving too many. Different types of customers. And I want to be clear, it's super normal in the beginning for you to have one qualification for a customer, which is credit card impulse. So I guess that's two. Very normal. The problem is, as soon as you start selling a little bit more, you're like, oh my God, I have to like, I have so many different things that I have to deliver. And this guy's a little bigger, this guy's a little smaller, but my product's not that, whatever. You have to pick. But and obviously this, again, these are rock and hard place areas, but this is half my business is this type of avatar. At some point, I'm fast forwarding a little bit, but usually it's one in three million is where you have to start being like, I have to be narrow on my avatar. And the fear is, and for each of these, the fear is logical and also wrong. And that's what's really interesting.

• 1:04:51Alex Hormozi?

  So like, so Roy Sutherland, a big marketer that I love, he's chairman of Ogilvy. He talks about psychological and logical solutions. And so like, for example, if I want people to like the elevator ride better, so people complaining, for example, that the elevator ride is too slow. You could then think, okay, we'll have to reinstall a new elevator that has a bigger engine and make it go faster, right? And that would cost us lots and lots of money. An alternative is just put mirrors inside the elevator so they can stare at themselves and no one notices the fact that it's slow.

• 1:05:19Alex Hormozi?

  Psychological solutions. And so what's interesting is that like all logical solutions, if you have a logical problem, sometimes you have to use a psychological solution rather than logical ones, because the logical ones have already been tried and don't work.

• 1:05:30Speaker 01

  Yeah.

• 1:05:30Alex Hormozi?

  And so when you have the apparent rock and hard place, there's usually a different way around it, which is that like, how could this be awesome? So what if when you change your compensation structure, your team feels more at ease because the business actually has a profit and has a chance for expanding so that they can have a career path?

• 1:05:45Speaker 01

  Yeah.

• 1:05:46Alex Hormozi?

  What if that was how you positioned it, which is I've walked, I've had to do this myself, but also for other people. If you're underpriced, it's like, well, what if when I raise my prices, I attract better customers and because I have more profit, I can attract better talent and I can ultimately provide a better service and they're lower maintenance and like all of these things cascade down from this higher price. If I focus all of my attention on one thing, I remember I met a business owner who was telling me, I don't call it all the businesses he had. And I was like, and I knew roughly, I think, how much money he was making and it was not a ton. And I think he had 78 things that he was involved. It was the biggest thing I've ever seen. And he couldn't name them all. And he's like, I have an Excel sheet that has them all.

• 1:06:27Alex Hormozi?

  And I think he was doing about eight figures a year, which I know some people were listening to this like, oh, that's a lot. I promise you between 78 businesses doing that would be unbelievably stressful and who knows what the profit is, right? And so then I said, if I had a magic wand and I said, which of these 78 is the one that you're like, this is the one, this is my baby. This is the one that I think could go all the way. I was like, do you know which one it is? He was like, yeah. I was like, if I waved a magic wand and I cut the other 77 and you just did that. I was like, how easy would it be to double the business? He's like, oh, my God, I could do it in my sleep. And I was like, then why don't you do that?

• 1:06:57Speaker 01

  Yeah.

• 1:06:57Alex Hormozi?

  That's like how you handle that one. The over expansion is, and this is the tough one. You either got to, and it usually happens at that, that same like million, two million ish level. And I have a theory around it, which is that if you think about the cost of talent, right? So let's say you have a 20% margin business and you're doing a million dollars a year. So you're making 200,000 dollars a year in profit. You either have to work double time or you have to not have a profit and bring someone in who's really good. Those are basically your two choices and they're both tough.

• 1:07:29Speaker 01

  To open a second location. Yeah.

• 1:07:31Alex Hormozi?

  Right. And so like that's, I mean, by the way, this is why you get compensated as a business owner out, outsized returns because you take outsized risk. That's why we get paid what we do because we're willing to lose it all.

• 1:07:40Speaker 01

  Right.

• 1:07:41Alex Hormozi?

  And so, but it's, it's based, it's usually right at that size, one to three ish, because your margin is almost equates to one or two good employees. And so you have to make this bet and/or you just work like crazy. It's one or the other. And so when you're in that over expansion area, it's like, you just have to work like crazy and then train someone up. Or you have to bring someone in and then obviously they can, they can help you take it over. The third path is that you just accept the fact that you don't have who you need. You cut the, cut the short-term loss for the long-term gain so that you can get the one location or one product or service right. So that. I like this framework of called Scale Zero, which is like every business that I've had that's been exceptional has been a business that I didn't start to become a business.

• 1:08:26Alex Hormozi?

  They became, they were things that I just was like, I'm just gonna make some money. And then, and I don't wanna work a lot. And when I do that, cuz you actually solve for zero ahead of time. And so you're like, I'm solving for something that is super profitable, that doesn't take a lot of time. It's like, well, shoot, then why can't I do a ton of that? And that's what ends up happening. Whereas every time I've been like, I wanna just build a huge business. I was like, I ended up building something that doesn't like actually work.

• 1:08:50Speaker 01

  Yeah.

• 1:08:50Alex Hormozi?

  And so it's just very weird that every time that I like, when I look back on my life, the times that I've like, I've had to make money or wanted, you know, to make money and not build a business is when I build a business. When I build a business, I don't make money.

• 1:09:02Speaker 01

  Yeah, yeah.

• 1:09:03Alex Hormozi?

  So it's just kind of like interesting. So that's solving the over expansion issue. The avatar issue, you solve with data, which is you look at all the customers you sold up to this point. And you're like, okay, look at the top 10% and say, what did these people have in common? And so I think about it in terms of demographics, like what do they look like? Where are they from? I think about it in terms of psychographics, which is like, how do they think? What are their beliefs and values? And then I think about actions. So what things did they do while a customer that other people did not do that caused them to be successful? And so then I start selecting for those people in the advertising and the offer so that we just only get those people. And so if you're in that spot, my recommendation is you don't have to kill your business. Just start advertising only to the one avatar, which is usually the higher up avatar.

• 1:09:48Alex Hormozi?

  I'll just give you the.

• 1:09:50Speaker 01

  The cheat code.

• 1:09:51Alex Hormozi?

  It's probably the guy who's, that's probably the, the one that you have fewer of, but that are better. It's probably that one. You advertise to them. And what happens though, is that you will still get the, the minnows that are coming. But you'll get a greater proportion of the better ones by just saying, I'm only working with these better ones. And you can basically slowly shift the percentage of the pie so that a small and small percentage are minnows. Until eventually you can, you know, maybe when you're at 80%, you just say, I'm not taking minnows anymore cuz of the distraction. I just wanna work with whales.

• 1:10:18Speaker 01

  Yeah.

• 1:10:19Alex Hormozi?

  And so that's the transition there. The bonus sixth problem that small business owners have is no data daddy, as I like to call it, which is that they don't know anything about their business.

• 1:10:30Speaker 01

  Yeah.

• 1:10:31Alex Hormozi?

  And so, I mean, if you've seen Shark Tank or anything like that, like the thing that they always tell you is like, just know your numbers.

• 1:10:37Speaker 01

  Yeah.

• 1:10:37Alex Hormozi?

  Because you can't, if you don't know what to do, it's because you have no data.

• 1:10:40Speaker 01

  Yeah.

• 1:10:41Alex Hormozi?

  And so, the actual constraint of the business isn't the action you need to take, or rather, the action you need to take is to get the data.

• 1:10:46Speaker 01

  Yeah.

• 1:10:46Alex Hormozi?

  Because when you have really clean data, the next step actually is usually pretty obvious.

• 1:10:51Speaker 01

  Mm hmm.

• 1:10:51Alex Hormozi?

  So you look like a genius from the outside because you're making these good decisions and the business continues to grow, but you know that deep down, it's just because you collect good data.

• 1:10:58Speaker 01

  Yeah.

• 1:10:59Alex Hormozi?

  And so, it's like, you know, you should be able to know what happens from click to close and from close to renewal. And you should know what all of the metrics are between those steps. And I mean, at the most minute level, because that's where all the alpha, to use an investment term, like that's where all the huge gains in business growth come from. It's like, okay, let's say we've got, you know, a 2% CTR on our ads, fine. We've got a 20% conversion on our landing page. Okay, it's a little bit low, but fine. And then we've got a 7% schedule rate. We're like, ooh, okay, well, we could probably go from 7 to 30. And if we did that, we would 4X the business. Ooh, that feels like that's worth tackling.

• 1:11:39Speaker 01

  Right.

• 1:11:40Alex Hormozi?

  Right? But you're like, I don't know how to grow.

• 1:11:41Speaker 01

  You don't even know, that's the thing.

• 1:11:42Alex Hormozi?

  Right.

• 1:11:42Speaker 01

  It's like, I don't know what to do because you don't know what the reality is.

• 1:11:46Alex Hormozi?

  You know where the holes are.

• 1:11:46Speaker 01

  Given, just to break it down to a basic level, in case people don't know some of the terms that you're using. So I'm imagining like, you own a small town coffee shop.

• 1:11:55Alex Hormozi?

  Sure.

• 1:11:55Speaker 01

  And you, you know, you've done your best, you're just getting things done. You're making sure there's enough coffee, are the muffins there? You're just doing the like, the things of running your business. But you hear you talking right now and you're like, I don't, what data? What would I need? So for example, what is the average, what's the average tally for each customer that comes through? You know, if you're like, oh, I have no idea. Okay, well, if you have no idea, you don't know how to improve those numbers. So if you find out that the average person who comes through spends $6, and, well, here's an easy hack, what if I train the people who are at the cash register to ask if every single customer would like a muffin to go with their coffee? What's the percentage of people who increase and suddenly it's 1050 per person? And you're increasing the value of that interaction.

• 1:12:39Speaker 01

  But if you don't have those specific data points, you don't know what to push on. Again, I was at this mastermind this week and they would do hot seats. So people were, you know, talking about their business. And I'm not in the mastermind, I'm just there as a, as a speaker. But every person who would ask, they'd ask questions to, they'd say, you know, how much did he make last year? And they'd say, uh, we did between.

• 1:13:01Alex Hormozi?

  Oh, God.

• 1:13:01Speaker 01

  And I'm like, you don't know your numbers. You didn't do between.

• 1:13:05Alex Hormozi?

  That's wild.

• 1:13:05Speaker 01

  An entrepreneur knows exactly down to like, oh, man, we really wanted to do 2 million, but we did 1.73. Those are our numbers this year. There's no between.

• 1:13:15Alex Hormozi?

  Yeah.

• 1:13:15Speaker 01

  Um, the average person pays almost, I'm like, girl, you don't, like, you're stretching. So knowing that kind of information, like you said, helps to figure out what to actually move against. Like, for instance, if you can get, if you can book 20 calls and you know for a fact that you're really good at closing, you can close 50% of those customers. So great, if I get more calls, can I close more?

• 1:13:38Alex Hormozi?

  Yeah.

• 1:13:39Speaker 01

  Um, just for anybody who didn't understand.

• 1:13:41Alex Hormozi?

  This is great. And for, uh, I'll, I'll just say that for, if you're, if you're sub a million, um, in revenue, the answer is almost always more. And there's a math reason behind that. And so like, improve, you know, because if you're sub a million and you are actually, you know, making, you are making sales and you are making a profit. You have priced it such that you haven't, you're not selling $5 bills for $4. Let's assume that that's, that's true here. All right. If that's the case, I'll, I'll give the simplest example I can, which is that, uh, if I have one salesperson who works for me, and let's say that guy does outbound and he generates, you know, business for our IT services, whatever, I could probably try and take his close rate from 30% to 40%. I could probably do that. How much time would that be?

• 1:14:25Alex Hormozi?

  How risky is it? How likely is it to happen? We can go through all that. But it would probably be better to just hire a second sales guy to do the outbound. Uh, cause that would have a high likelihood of doubling my business. Now, later on, when you have 20 sales guys, you then have to see, okay, if I'm at, you know, we're at 30 to get to 40, okay, that would be a, a 33% improvement in, in, in revenue. If we made, if we just got everybody to go from, you know, 30 to 40, okay, that sounds reasonable. But, uh, the alternative would be to get that same increase with 20 guys that have to hire seven more sales guys. And so then you look at the risk adjusted return from each, each of those actions and say, okay, well, I think there's a higher likelihood that I could just improve the sales guys from 30 to 40.

• 1:15:09Speaker 01

  Yeah.

• 1:15:09Alex Hormozi?

  Then onboard, hire, train, recruit. Seven more productive sales guys that are at the same KPIs the rest of the team. And so you'll actually notice it's a little bit like a pinball or like an accordion where it's like you'll do more and then you do better. And then you do more and then you do better. But in the beginning, you're usually just not doing nearly enough. And I'll, I'll give you this little ism that I end up repeating a lot, which is that volatility is a symptom of low volume. So if you're like, man, you know, it's word of mouth and I, you know, I get, I get a sale every, you know, every, every month I get one or two sales that come in. So the reality is that there's a certain amount of advertising that is occurring.

• 1:15:49Alex Hormozi?

  So a certain amount of people are telling other people, a certain amount of posts on Facebook, a certain amount of outreach attempts that you make are creating one to two sales per month. The businesses that are doing one to two sales a day are doing that amount of advertising activity per day.

• 1:16:04Speaker 01

  Yes.

• 1:16:04Alex Hormozi?

  And so I'll tell you the story because I think it'll, it'll resonate with the audience. So when I was younger, when I started my gym and there was a period of time where like lead costs went up because some Facebook change, whatever. I talked to a mentor of mine and I said, you know, how, how are you advertising? And he was, he had 22 locations and it was tanning stuff. And he said, I use flyers. And I was like, okay, I'll use flyers. I'll try that. And so I printed out flyers and I put 300 flyers out on cars or whatever. And, you know, I waited to go collect my money. And one guy called and he said, are you the guy who put the flyer on my car? And I was like, yeah. And he's like, you dinged my Mercedes. And then I was like, ah, and I just like, and he never called again. Thank God. But anyways, I called my mentor back and I was like, hey, and he was like, hey, how the, how the flyers work out?

• 1:16:47Alex Hormozi?

  And I was like, I was ready to like, give him like a talking to. I was like, it didn't work. Huh? You know, like, what are you going to say about it now? And he took it really, he was just like really great. He gave me a lot of grace. He was like, well, what was your test size? And I was like, what do you mean? And he was like, well, would you test, like, how many did you put out that you test first? And I was like, well, I put out 300. And I was like, 300? And he was like, oh, man. We test with like 5,000. And I was like, oh, he's like, and then after that we do 5,000 a day. So he was doing 150,000 flyers a month. And I thought that 300 was a campaign. And so a lot of times when you're starting out,

• 1:17:28Alex Hormozi?

  you have such a dramatic misunderstanding of the sheer volume that people who are ahead of you are doing. So like Mozy Media, us, we put out 450 pieces of content per week.

• 1:17:40Speaker 01

  Yeah.

• 1:17:41Alex Hormozi?

  It's a lot.

• 1:17:41Speaker 01

  Yeah.

• 1:17:42Alex Hormozi?

  It's 60 or 70 a day. I can't do the math, somewhere in there, right? And so when people are like, well, uh, what? I won't even get into the like, must be nice, but like, you're making one post a day on Instagram.

• 1:17:54Speaker 01

  Yeah.

• 1:17:55Alex Hormozi?

  And you have seven and I have 450. And I've also been doing it longer.

• 1:18:00Speaker 01

  Right.

• 1:18:00Alex Hormozi?

  And so I have 450 a week times years.

• 1:18:03Speaker 01

  Yes.

• 1:18:04Alex Hormozi?

  And so we like, it is a volume game. And in order to accumulate more volume, you have to allow for time to pass. Like there, like, and you know, hypothetically, could I get to a thousand a day? Probably I'm just, we're just not there yet. And I'm sure five years from now, I'll look back and be like, I remember when I was doing 60 a day. My God, I was so cute. You know, give myself a little.

• 1:18:24Speaker 01

  But also just to give people a frame of reference, how much has social grown for you in the last?

• 1:18:30Alex Hormozi?

  Oh, done.

• 1:18:30Speaker 01

  Five years.

• 1:18:31Alex Hormozi?

  Yeah.

• 1:18:31Speaker 01

  Cause you're in the millions now.

• 1:18:33Alex Hormozi?

  Yeah.

• 1:18:33Speaker 01

  And I swear when I started following you.

• 1:18:35Alex Hormozi?

  So 10K on Instagram.

• 1:18:36Speaker 01

  Yeah, like you've grown so much.

• 1:18:38Alex Hormozi?

  Yeah, I think we have like 13 or 14 million.

• 1:18:40Speaker 01

  Yeah, yeah, no big deal.

• 1:18:42Alex Hormozi?

  Yeah, I mean, who's counting? But yeah, no, but and, and I, I like to bring this up, which is that, just like Rachel was saying earlier with like, you'd know if you were the guy or you know, if you were the girl. I'm, I think we're making this for everyone who's not that.

• 1:18:55Speaker 01

  Yeah.

• 1:18:55Alex Hormozi?

  And so I didn't have a clip go viral and then all of a sudden become this person.

• 1:19:00Speaker 01

  Right.

• 1:19:01Alex Hormozi?

  This was a deliberate choice that I was like, I'm going to try and do this. I started by making three, uh, I mean, I started in July of, well, if you, you on the podcast, like my, so this is actually kind of probably the coolest thing I think about my story, hopefully in the future that'll be called, is that 90 days after I had lost everything, the last time. Clarity on dates. Ninety days after I lost everything the last time is when I started my podcast. And so, one, if you're like, I'm at zero, like, what do I have to say? Well, there's that. Number two, my rule is that I only talk about things I know. And so the first 300 episodes are just like, how to run a gym, because that's all I knew. So it was called Gym Secrets. And it was like, and I had six locations.

• 1:19:43Alex Hormozi?

  So I had some stuff that I like, I could talk about, but I just didn't go into topics. I was like, I just, this one, someone walks in, this is how, you know, like, I just, I just talked about what I knew. And for, for years, it was at, you know, 100 pot, you know, downloads. And then it went to, I think it took like, four years to get to like 2,000 downloads an episode. Not a lot of people were listening to Gym Secrets. I, I bring this up because the whole thing is documented from zero to here. And I think that's like, that, I think to me, that's like the coolest thing. And so, you know, a couple of years ago, I started doing the, the YouTube. That was like my next big commitment. I was like, I'll make three YouTube videos a week. And then I had a guy randomly reach out to me and say, hey, these shorts things are going to be a thing. And he was like, you already have longs. I'll just take the stuff you already have and make them into shorts.

• 1:20:27Alex Hormozi?

  And then that did really well for us. And then we're like, and then we started bringing it in-house. And that's pretty much what we've done ever since is just do more, do more, do better, do more, do better. And we just keep doing it.

• 1:20:38Speaker 01

  I keep referencing this thing that I was at this week, but there, everyone's trying to figure out the next marketing hack. Like, what's this thing? And how does it? I was there to speak about books, because I've had a lot of success as a writer. And they were like, what do you, what do you do? And I was like, well, you show up for your audience every day for 15 years. And you just provide a shit ton of value again and again and again and again and again. And every once in a while, I like, hey, guys, I have a book. And then everybody buys it. That's my whole plan. That's what we do. And

• 1:21:06Alex Hormozi?

  Master.

• 1:21:07Speaker 01

  Exactly. Like, I just, I don't, I've never figured out ads. I don't know how to, I don't have a funnel. I don't have, and it was like, but what is the book a lead for? And I'm like, nope, just readers, just trying to, you know, have, but I, that's. Don't commit to something if you aren't willing to give a decade.

• 1:21:25Alex Hormozi?

  Yeah.

• 1:21:26Speaker 01

  Cause I really don't know any other way. Yes, could you have something go viral? Can something pop off unexpectedly? Can you hit a trend right when the wave is cresting? Absolutely.

• 1:21:34Alex Hormozi?

  Yeah.

• 1:21:34Speaker 01

  But I don't know how you have a long-term play if you're not actually trying to provide value in a real way.

• 1:21:40Alex Hormozi?

  I think so. This is, this is just something that I feel like I've seen across a lot of business owners. Cause I, I talk to many of them. That's basically my, my full-time job. It takes about five years to figure something out. And it takes about 10 for you to probably realize the success that you were hoping for in one or two.

• 1:21:55Speaker 01

  Hmm.

• 1:21:56Alex Hormozi?

  So just like, just as a, as a, as a baseline for anyone who's listening to this is like, you're like, okay. You know, let's say you have some corporate job that's, you know, you make a hundred fifty thousand dollars a year. You will for sure make less money for the next two, three years that now you might make revenue. Very different than what your take home is.

• 1:22:12Speaker 01

  Very different.

• 1:22:13Alex Hormozi?

  Right? Like you might start making sales, but you imagine that it's, you're immediately like that. One, that revenue is profit and it's not. And that you're gonna immediately have more time, you're gonna have less. There's all the, but to be fair though, sometimes it's good to be ignorant of it so that you take the jump. But it's, it's literally just harder, it takes longer and you make less for a while.

• 1:22:32Speaker 01

  Yeah.

• 1:22:33Alex Hormozi?

  And I say this as somebody who was a management consultant before this, like I had saved fifty thousand dollars when I was 22. And I know it was just because I made decent money and I was prudent with my spending. But it took five years before like we figured out the gym launch thing. Now I had the locations that made money, but then you make mistakes and you will lose things. And you will take back steps. And so I think, um, you know, I talked to a really close friend of mine last night. And he said this, and he said, you know, in my, in my twenties, it was all about the destination. And he was a Goldman Sachs guy, like for those who don't know, it's a probably one of the most prestigious investment banks. Guys there make 10, 20 million dollars a year at the higher levels, like very smart people. And very A type A driven area. And he said, in my thirties, I realized it was about the journey, right?

• 1:23:18Alex Hormozi?

  He said, and in my forties, uh, I realized it was about the company. And so, um, I was like, can't wait to see what it is when it's 50s.

• 1:23:25Speaker 01

  Yeah.

• 1:23:25Alex Hormozi?

  You know, but like, I just, I really liked that process. And so I think if you solve for forever, you can go for a very long time. Like when I started YouTube, I told the vendor that I was working with, I was like, I'll make a call whether I keep doing this in 10 years.

• 1:23:38Speaker 01

  Yeah.

• 1:23:38Alex Hormozi?

  And he was like, At six months, I was the fastest growing whatever that he'd had. And he said, I just want you to know that I've never in my whole career had anybody say that they were gonna do this for 10 years. He said, everybody is always like 30 days, 90 days if they're like, you know, long-term thinking or whatever. And I was like, I just figured if I do so much of it, that it would be unreasonable that I suck. I'll probably be better than average.

• 1:24:05Speaker 01

  Yeah.

• 1:24:06Alex Hormozi?

  And so there's a certain amount of volume that's required to get good. And so my approach has always been like violence is the answer, which is just unbelievable amounts of execution. And just trying to get, just get, I remember I read outliers when I was in college, I think, which is Malcolm Gladwell's book. He talks about 10,000 hours. It was such a pivotal book for me to read because it set the bar for what I expected volume to look like.

• 1:24:27Speaker 01

  Yeah.

• 1:24:28Alex Hormozi?

  And so it's like, well, if I want to be a master of something like I, one, I have to start now. Like, oh, my God, I'm so old.

• 1:24:33Speaker 01

  Yeah.

• 1:24:34Alex Hormozi?

  But secondly, the part that I thought was really interesting was that like Bill Gates, he considered like a genius or virtuoso coder at like six or seven years, whereas some people would take like 10 or 12. And so that one little nugget for me gave me the realization that like, oh, I can cram. I can take 10 years of normal work and cram it in four or five.

• 1:24:54Speaker 01

  Absolutely.

• 1:24:55Alex Hormozi?

  And so that's where saying like, you know, I have the rule of 100 for people who are starting out for getting their first customers. So you make, you know, 100 outreach attempts per day. You spend $100 in ads per day, or you make 100 minutes, you work for 100 minutes on content and you post it. And if you do that.

• 1:25:15Speaker 01

  And you post it is the key. That is key. Get it out of your graph folder and on to social media.

• 1:25:22Alex Hormozi?

  And I'll tell you why you have to do it in a second. And then you do that for 100 days. And I promise you, if you do that, you will have a customer.

• 1:25:28Speaker 01

  Yeah.

• 1:25:28Alex Hormozi?

  Period. You will have a customer. And what's crazy is that I get, I get these screenshots of people who are like, holy shit, dude, I'm on day 31. And like, and they show me their stats on like TikTok or Instagram or whatever. And they're like, and look at the leads that they're like, they just do it. You know what I mean? And like, if you actually count it out and you actually do the whole, like I've never, to this day, had somebody do the full 100. All three and not have customers.

• 1:25:49Speaker 01

  Yeah.

• 1:25:50Alex Hormozi?

  And the reason you have to put it out and do the outreach, test the ads if you're gonna do ads, or just do, or do the content, is that the only, at least my favorite way to learn, is to do a huge amount of effort, a lot of repetitions, and then look at the data of the last hundred and say, what were the top 10%? What do these have in common? Okay, my next hundred are gonna be just like those.

• 1:26:12Speaker 01

  Yes.

• 1:26:13Alex Hormozi?

  And then you do 100 more of that.

• 1:26:15Speaker 01

  Yes.

• 1:26:15Alex Hormozi?

  And then, because of variability and variety of life, you're gonna have another top 10% of those and say, what did those have in common? How do I do more of that?

• 1:26:22Speaker 01

  Yes.

• 1:26:23Alex Hormozi?

  And this is the process of learning that you won't get in any course, because it'll also be specific to you.

• 1:26:28Speaker 01

  Can I also add something too? For people who are using social media as a way to talk about their business, is to make sure that you're paying attention to the right metrics. Because there's such a hustle for views.

• 1:26:41Alex Hormozi?

  Yeah.

• 1:26:42Speaker 01

  Not all views are created equal. Not all followers are created equal. And you could get a million views on something that will not be relevant to your business at all, but will create sort of vanity metrics that make you believe that your channel's really successful. But if it is not making you money in the way you wanna make money, it's not the right video. It would be better to try a different style, different approach, long form versus short form. Like, change it up to get the right kind of customer. Because there's so much content right now telling people how to game the algorithm, and it's not actually serving you.

• 1:27:13Alex Hormozi?

  No. As a visceral example, if I go up to a stranger and slap them, and then, like, I will probably get a lot of views.

• 1:27:22Speaker 01

  Yeah.

• 1:27:23Alex Hormozi?

  Does that increase or decrease the likelihood that someone will purchase something from me? Probably not. Right? It just sounds like, it just, sometimes I just like asking the simplest question. When you look at this meme that you're posting, does this increase or decrease the likelihood that someone's gonna buy from you?

• 1:27:35Speaker 01

  Right.

• 1:27:36Alex Hormozi?

  In all likelihood, it just does nothing. It does neither.

• 1:27:38Speaker 01

  Wasted your time.

• 1:27:39Alex Hormozi?

  Yeah.

• 1:27:39Speaker 01

  Because you spent nine hours trying to make that one video.

• 1:27:41Alex Hormozi?

  Right. And so, that's always been our litmus test in terms of, basically, what we're, I think, what we're really teasing out here is the difference between getting views and building a brand. And building the brand is, what are the pairings and associations that I want people to associate me with? And that's the people that I appear with. That's the subject matter that I discuss. And everything else that is, that surrounds that, what are the values that I have that come through in the content? And I will say that me personally, the more I just try to think like, and this is probably useful, if you have a customer that is your favorite customer, and if you don't have a customer, think about who that customer might be.

• 1:28:18Alex Hormozi?

  Make content for them.

• 1:28:19Speaker 01

  Yeah.

• 1:28:19Alex Hormozi?

  And if you just do that, you will be already like in the top 10%.

• 1:28:24Speaker 01

  Yeah, for real. I want to talk to you forever, but I want to be conscious of your schedule and a very busy day that you have ahead of you. I just want to say one more thing to you before we wrap up. I know you talk a lot about not really caring about your legacy.

• 1:28:37Alex Hormozi?

  Sure.

• 1:28:37Speaker 01

  Which is fascinating, but whether or not you care about what it is, it's going to be really big. And it's going to be really impactful. As someone, you don't think I'm your demographic, but I receive a lot of help from you and have for years. Through the books, through the podcast, really want to encourage the listeners to go check them out. So whether or not you care that you have a legacy, you do. And you help a lot of people with what you do, and you don't have to help people the way that you do. So I am grateful for your time and your wisdom, and I know the audience is too. So thank you for being here.

• 1:29:07Alex Hormozi?

  Well, I appreciate it.

• 1:29:08Speaker 01

  Yeah.

• 1:29:09Alex Hormozi?

  And I would, I would love to respond if that's okay. And if it, if it ends up sucking, you can take it out. This has been something that I think is so interestingly, in the last 24 hours, I had like two massive accounts try, try to like take attacks at me because of this.

• 1:29:21Speaker 01

  No.

• 1:29:22Alex Hormozi?

  Yeah, no, it's fine. Not a big, I, my worldview allows me to deal with these things pretty easily.

• 1:29:26Speaker 01

  But also people who create content, just shitting on other people's content.

• 1:29:30Alex Hormozi?

  Wholeheartedly agree.

• 1:29:32Speaker 01

  Yeah.

• 1:29:32Alex Hormozi?

  Wholeheartedly agree.

• 1:29:33Speaker 01

  So stupid.

• 1:29:33Alex Hormozi?

  And I feel like I can actually like make this as about like, I will not make content that insults people.

• 1:29:39Speaker 01

  Yeah, same.

• 1:29:40Alex Hormozi?

  And I think there's, and it's probably useful for anyone who's listening, the difference between an insult and criticism. So criticism is a discrepancy between actual and desired. Hey, Sandy, you didn't show up, you haven't shown up on time three days in a row. The expectations that you set up, you show up at 9:00 AM. This is criticism. And because of that, you're a lazy piece of shit. That is an insult. And so basically, making a judgment is where insults come from. Pointing out to an observable discrepancy is what criticism is. For those of you who are like, how do you deal with criticism? It's like, well, make sure that it's criticism and not insults.

• 1:30:12Speaker 01

  Yeah.

• 1:30:13Alex Hormozi?

  I had, most people insult me. It's fine. I, I survived about this. And I, I really want to take the opportunity, if you'll allow me. I'm just the ultimate believer in freedom of choice. And many people.

• 1:30:28Alex Hormozi?

  There's, there's both sides of this. On one hand, there's many people who don't start because of, out of fear of what other people are going to say about them. And that ends up paralyzing them. And so when I talk about death and the fact that most people will move on in weeks, not years, and like, they're gonna go from the funeral and go to a pizza place and they're all just gonna like, have dinner, and then they're gonna like, go to school the next day. It's, it's, it's crazy, but it's also reality. And I think in minimizing that, for me, when I, when I say this message, it's so that people, it decreases the perceived fear around taking the action and potentially failing.

• 1:31:06Speaker 01

  Yeah.

• 1:31:07Alex Hormozi?

  No one's gonna care anyways.

• 1:31:08Speaker 01

  Yeah.

• 1:31:09Alex Hormozi?

  On the other extreme, I think that there are many people who want a legacy. And I tend to take a universe look at it, which is, you know, if I try to make it real, I'll say, okay, do you know who your great, great, great grandfather is? You probably don't know their name. And they're the reason you're here today. And so that's not that long ago.

• 1:31:37Speaker 01

  Yeah.

• 1:31:37Alex Hormozi?

  And so we have this, and I think it's just, we all have a desire to matter. We all have that, and I, in my life, that obsession handicapped me, which is why I make so much kind of countering that, which is that, I was, I've, I think I've had a lot, deep-seated fears around judgment of others and things like that. And so I have to constantly remind myself that these people will not even be at my funeral.

• 1:32:02Speaker 01

  Yes.

• 1:32:03Alex Hormozi?

  And like, if they're not gonna talk about me at my funeral, why should I give them the power to speak over me in my life? And so it's, it's, it's, that's, that's the, the essence of what I'm getting at. And I can understand that when I make these comments about how people at your funeral are gonna argue over your belongings, and that they're going to talk about the food and the venue, and some people aren't gonna make it because something came up, because they were busy. Some of the people that you love and care about today aren't even gonna be there.

• 1:32:31Speaker 01

  Yeah.

• 1:32:31Alex Hormozi?

  Because they haven't even been there in 20 years in your life. And your friends' family won't even know to have invited them. And does it even matter if they're invited? Because you're already dead.

• 1:32:39Speaker 01

  Yeah.

• 1:32:40Alex Hormozi?

  A lot of people get very triggered by that. And I think it's because humans have a fear of death and that makes sense. But I think that for me, trying to use death as my ultimate motivator, insofar as if I can embrace the idea that I will die and I will eventually be forgotten. Call it, now everyone's like, 10,000 years, 100,000 years. Eventually I will be forgotten, right? There'll be a start, you know, the sun will have a mega death and who knows, right? Like, whatever. And, and when, I mean, who, are we really paying attention to the people in the 1100s? Are we really? You know what I mean? Like, okay, there's six people who we've had that have one book. You know what I mean? That like, okay, maybe, right? And that's not that long ago, right?

• 1:33:24Alex Hormozi?

  The reason I solve for like, or I try to really look death in the face and become comfortable with it is because if I can accept that as zero, then everything that I get to do in my life is free range. It's carte blanche. I can, I can, I can, I can make my own way. And I think that that has been something that has given me tremendous freedom of action and agency around being able to make up my own damn mind for my own life. And I think that, that is why I hit on that. And I, and I, and I push on that button because that also, because I have so many people who message me being like, I was borderline suicidal. And when I, when I really thought about it, the way you broke it down, I was like, all these people that I, that I, I cared so much about their opinions, like,

• 1:34:09Alex Hormozi?

  they don't even, they're not even gonna remember me.

• 1:34:11Speaker 01

  Yeah.

• 1:34:11Alex Hormozi?

  Like, they're, they're like, they're gonna have like a couple jokes too soon about my death. Too soon, bro.

• 1:34:17Speaker 01

  Yeah.

• 1:34:17Alex Hormozi?

  Like, they're gonna say it. Like, you know, like, it's gonna happen. And I think that that allows me to not take my failures as seriously or my successes.

• 1:34:26Speaker 01

  Yeah. And I think if that idea resonates with people, take it, and if it doesn't, ignore it. Like, it's so simple.

• 1:34:35Alex Hormozi?

  And I'm good with it. If you're like, screw this idea, like, then by all means, do you.

• 1:34:39Speaker 01

  Yeah. Well, I am grateful for you and your work.

• 1:34:44Alex Hormozi?

  I appreciate it.

• 1:34:45Speaker 01

  And thank you so much for coming on the show. Seriously, this was such a treat.

• 1:34:48Alex Hormozi?

  Yeah, instead of leaving a legacy, try living one.