Hormozi Teaches Me Everything He Knows in 90 Minutes

Want to start your own business with less than $1k? Get the playbook here: https://clickhubspot.com/lhs Episode 732: Shaan Puri ( https://x.com/ShaanVP ) sits down with Alex Hormozi ( https://x.com/alexhormozi ) to talk about his newest book, $100M Money Models. The book will teach you how to get more customers to spend more, in less time, over and over again, ultimately eliminating cash flow as a constraint to growth of any business. $100M Money Models, launches at a live virtual event Saturday August 16th. Register free: https://register.acq.com — Show Notes: (0:00) Money Models (9:34) Sell When Pain Is Highest (14:00) Live coaching: Rebuilding Shaan’s Business (30:04) What most founder get wrong (37:55) Make it or Take It: Tough Questions (55:09) What Hormozi is obsessed with now (1:08:51) Playing the YouTube game — Links: • Acquisition - https://www.acquisition.com/ • Somewhere - https://somewhere.com/mfm — Check Out Shaan's Stuff: • Shaan's weekly email - https://www.shaanpuri.com • Visit https://www.somewhere.com/mfm to hire worldwide talent like Shaan and get $500 off for being an MFM listener. Hire developers, assistants, marketing pros, sales teams and more for 80% less than US equivalents. • Mercury - Need a bank for your company? Go check out Mercury (mercury.com). Shaan uses it for all of his companies! Mercury is a financial technology company, not an FDIC-insured bank. Banking services provided by Choice Financial Group, Column, N. A., and Evolve Bank & Trust, Members FDIC — Check Out Sam's Stuff: • Hampton - https://www.joinhampton.com/ • Ideation Bootcamp - https://www.ideationbootcamp.co/ • Copy That - https://copythat.com • Hampton Wealth Survey - https://joinhampton.com/wealth • Sam’s List - http://samslist.co/ My First Million is a HubSpot Original Podcast // Brought to you by HubSpot Media // Production by Arie Desormeaux // Editing by Ezra Bakker Trupiano

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

• 0:01Shaan Puri?

  You probably recognize this guy Alex Hormozi. He's known as the $100 million man and he's probably the most popular business teacher on YouTube. So last week I flew to Vegas and I asked Alex to teach me the things in his new book Money Models.

• 0:14Alex Hormozi?

  Ah, how to make money. Thank you.

• 0:17Shaan Puri?

  He says that this one concept has made him more money than anything else in his career. How would we improve our business by thinking in money models?

• 0:24Alex Hormozi?

  So let me walk you through the actual economics of this. If 10% of people buy something that's 10 times expensive, you double your revenues. So the classic upsells, you can't have X without Y, right? You can't have burger without fries or whatever, right? It's like what you can't have X without Y.

• 0:36Shaan Puri?

  I recorded the whole session and I want to share that with you here today. All right, if I reset your bank account and your followers, change your name and face. So I reset you to zero. How long do you think it would take you to get a million bucks in your bank account?

• 0:48Alex Hormozi?

  Well, having lost everything twice, um, I'll tell you what I did.

• 0:51Shaan Puri?

  What do your haters get right?

• 0:57Speaker 02

  I feel like I could rule the world. I know I could be what I want to. I put my all in it like my days off.

• 1:05Shaan Puri?

  So you got a new book. If I read this book and it's going to start a little campfire in my head, what's going to happen from money models?

• 1:11Alex Hormozi?

  You will love this book if you liked offers. And so a money model is a deliberate sequence of offers. Many businesses have more than one offer. And so it's how do we sequence those in the right way? That accomplishes a financial objective. And so the financial objective for this book and what I try to go for for every business I have is something that I've always called client finest acquisition. And so the reason that we've been able to scale-

• 1:32Shaan Puri?

  One user pays for the next user?

• 1:34Alex Hormozi?

  Yes, and a slight tweak on that.

• 1:36Shaan Puri?

  Okay.

• 1:36Alex Hormozi?

  Which is, um, so it's 2X CAC plus COGS.

• 1:42Shaan Puri?

  Okay.

• 1:43Alex Hormozi?

  So this is our, this is the big thing that we want. So it's basically gross profit in 30 days. So I guess I could move this over here, but it doesn't matter. Gross profit in 30 days is, uh, is greater than, uh, 2 times CAC plus COGS.

• 1:55Shaan Puri?

  Let's just explain the terms people don't know.

• 1:57Alex Hormozi?

  Yeah.

• 1:57Shaan Puri?

  Gross profit, so you're not talking about overheads in this.

• 2:00Alex Hormozi?

  Right.

• 2:00Shaan Puri?

  So gross profit, CAC, cost of a customer acquisition, COGS, what it costs you to deliver the product or service that you deliver.

• 2:05Alex Hormozi?

  Yep.

• 2:06Shaan Puri?

  And what you're saying is my bar, my golden rate, my golden number I'm trying to hit is I want to take the cost to deliver the service and get the customer, double it. And in 30 days, I need to be hitting that number. That's my goal. Whether that came on the first offer or what you're saying now is- The second, third, fourth thing I sell them along the way, along their customer journey.

• 2:23Alex Hormozi?

  It's exactly that.

• 2:25Shaan Puri?

  Can you do like a stupid tangible example?

• 2:27Alex Hormozi?

  Yeah, so the first business I ever did this in was the gym business. And so it's a really simple example because everyone gets it too. So when I came into the gym business, what the vast majority of businesses did is they would run low ticket, like $21, 21 days, or they run a free month or free 14 day trial, whatever. That was the primary way of getting people in. And so let me walk you through the actual economics of this. And so if you have a business, let's say Old Way, right? Someone comes in, let's say you pay whatever, 10 bucks a lead. That's your CPL, cost per lead. And then you can convert, let's say you're getting, you know, 20% of these people to to start a trial. So that means that it costs you 50 bucks to start a trial. And then one out of three of those trials, which is the industry average, convert.

• 3:09Alex Hormozi?

  And typically the conversion for like a bootcamp or something like that is going to be about $99 a month. Right, that's, that's what it costs.

• 3:14Shaan Puri?

  Here's your CAC.

• 3:15Alex Hormozi?

  Yeah, exactly.

• 3:16Shaan Puri?

  Here's the first 30 days.

• 3:17Alex Hormozi?

  Exactly. And so you're, you're upside down here. Now, not only that, it probably took you two weeks to like between when you like got the lead, before you got the trial, and then 21 days, now you're at five weeks. And so by the second month, now you're like, okay, I got 99 times two. Now, that doesn't even take into account that like that 99 is not all free. Like there's costs involved there, but let's just say that these guys are amazing and they're running 100%, you know, margins. And so it's like, okay, so this is going to take 60 days for this business to basically recoup the money. Now, the problem is that in the gym industry especially, many customers leave within four months. And so it's a very tough way to make a buck. And so what I kind of came in and started doing was we'd run these challenges and I'd spend the same amount of $10. I'd have the same.

• 3:59Shaan Puri?

  You were here when you started, you did the same model initially?

• 4:02Alex Hormozi?

  No, I saw people doing it. I saw people doing it. And so then it was like a three step permutation. I like, I don't even want to tell the backstory, but basically figured it out, tried it out at a gym, it worked at that gym, and then I started my gym. That's basically what happened. So same, same cost per lead, I would close the same, I'd get 20% of these businesses. So it would cost me, let's call it 50 bucks, whatever. To, for me though, I would, off of that $50, I would sell upfront and I would make 500.

• 4:30Shaan Puri?

  Because your $500 offer was-

• 4:32Alex Hormozi?

  Yes, a challenge. So you win your money back. So if you lose X amount of weight and next time, we get your money back. Now, that was the beginning of the offer. That's an attraction offer. So it's one of the offer types I talked about in the book. And so it's like, okay, I got $500. But we didn't stop there because what are you going to do after you have your thing? Well, you're going to need some supplements. It's like, all right. So then we'd 48 hours later, we'd sell $200 of supplements, call it 80% gross margins, whatever. It's like, okay, so I get 160 plus 500. So now I'm at 660. All right, great. Now, on top of that, it's like, all right, three weeks in, it's a six-week deal. I would then say, hey, I'm going to roll this towards a one-year membership. And so boom, we'd roll that over, which is another mechanism that we use. And so then I get the one-year member. Great. Now, at week six, or between week three and week six, we'd make a second offer and say, hey,

• 5:17Alex Hormozi?

  you're already a member. Can I just save you some money? And they say, sure. And we say, hey, if you want, what we can do is if you just prepay for the whole year, we'll knock two months off. And so then all of a sudden, I get about 20% of people to prepay for the whole year, which is a $2,000 cash upfront, which if it's 20% and we add all these together, I'm getting about $1,000 upfront in the first same period of time that these guys are getting 99 or 199. And so my ability to outspend them in an auction-based, based on attention on like Facebook or Google search or whatever was unparalleled. And so because of that, I was able to not only outspend my competition, but because it cost me, like if you're actually doing LTV to CAC on this, it cost me $50 to make 1,000. I'm getting 20 to 1, 30 to 1 upfront.

• 6:02Alex Hormozi?

  And so I was actually able to finance the opening of all my locations that way. So I could spend $5,000 in ads and make 100 grand back and literally paint the walls, put the lobby in, buy the equipment. And by the time I actually opened the gym, because I'd do pre-sales for a month or whatever, I would actually already be cash flow positive day one without actually having to invest capital. And so fundamentally, I will continue to tinker. And this is where I got spoiled or whatever. Maybe my belief set changed is that this was the first model I ever had. And so every business I've had since then of like, I know there's a way if I just keep tweaking it until eventually this thing will print. And then when that happens, you don't need the outside investors because you cash flow getting customers. And so you basically almost, like every business I've had has been supply constrained. Because I can blow the doors off on the front end because I can acquire customers.

• 6:47Alex Hormozi?

  And so like this has been the skill that's probably been the largest contributor to my material success. And like Alan went from zero to 1.7 million a month within six months. Jim Launch went from zero to 2.2 million a month in 20 months. Prestige Labs, zero to one and a half ish in six. And so like each of them just very quickly just ramped because I could get customers at a profit. And when you look at the actual like where the mechanics of the money happen, as soon as one customer comes in, right? One guy comes in. Now, if he gives you that 2X CAC plus COGS, then it's like, okay, well, I've paid for him and I paid for the delivery.

• 7:22Shaan Puri?

  Right.

• 7:22Alex Hormozi?

  But he comes loaded, he's holding this guy by the throat. He comes loaded with my next customer.

• 7:27Shaan Puri?

  Right.

• 7:27Alex Hormozi?

  And so, but then this guy brings me two more. And so basically you keep doubling.

• 7:30Shaan Puri?

  He comes loaded.

• 7:31Alex Hormozi?

  Yeah, exactly. And so then at that point, you literally only have to acquire, you have to have the cash or the wherewithal to acquire the first customer. And then everything after that is financed by the customers. And the greater that discrepancy, the more you don't have to even put more capital into the business at all. And so that was a very long, as fast as I could say it, that's what we hope to accomplish with Good Money Month.

• 7:51Sam Parr?

  All right, so a lot of people will talk about how you need a million dollars and three years of experience to start a business. Nonsense. If you've listened to at least one episode on this podcast, you know that is completely not true. My last company, The Hustle, we grew it to something like 17 or 18 million dollars in revenue. I started it with like $300. My current company, Hampton, does over 10 million in revenue, started it with actually no money, maybe $29 or something like that, nothing. And so you don't actually need investors to start a company. You don't need a fancy business plan, but what you do need is systems that actually work. And so my old company, The Hustle, they put together five proven business models that you could start right now, today, with under $1,000.

• 8:34Sam Parr?

  These are models that if you do it correctly, it can make money this week. You can get it right now. You can scan the QR code or click the link in the description. Now, back to the show.

• 8:45Shaan Puri?

  I want to break down a couple of things in here just to, because I can, first of all, this is great. You know, I come from Silicon Valley and Silicon Valley, virality rules all.

• 8:53Alex Hormozi?

  Yeah.

• 8:53Shaan Puri?

  And, and they, you know, the early growth hackers, in fact, there's a book called The Viral Loop. The guy, my mentor, the guy who kind of plucked me when I got to Silicon Valley. He's featured in that book because early on, he was like scraping hot mail and he realized, wait, I have no marketing budget, but one user can get me the next user through this thing called the K factor. And then you measure the K factor, it becomes like this is how Facebook and other businesses grew. You've created a version of the K factor for non-tech businesses that are not going to grow virally, but you can grow, you can finance the next customer through the existing customers. I want to point out a couple of important things. So the first one was, this is what, this is kind of book one. So this is, you know, your hundred million dollar offers book.

• 9:33Alex Hormozi?

  Yep.

• 9:34Shaan Puri?

  And a key difference here for any entrepreneur is that you're able to charge $500 when this guy's probably honestly struggling to even charge $99 a month. I drove by a place here that was like $5 entry offer, the Las Vegas Fitness Club or whatever, because you were not selling a gym membership, which is a cost to the customer, you were selling a transformation promise.

• 9:55Alex Hormozi?

  Yep.

• 9:56Shaan Puri?

  Right, so you're selling customer transformation, the happy ending. So first of all, what are you actually selling? That was a key thing. The second was you were then upselling, upsell one of your money model.

• 10:07Alex Hormozi?

  Yep.

• 10:08Shaan Puri?

  And you had a good insight here in the preview your team sent me, which was basically that you want to sell when the customer pain is highest. Can you talk about that?

• 10:17Alex Hormozi?

  Yeah, I'd love to talk about this. So basically, I think so many people, businesses, et cetera, get, they think about that, especially services, because 78% of businesses are, they think about they have a term that they deliver for a customer, and they typically want to renew when they're about to stop getting paid.

• 10:33Shaan Puri?

  Right.

• 10:34Alex Hormozi?

  Which is typically the absolute worst time to try and renew.

• 10:36Shaan Puri?

  It's like an ex-boyfriend, "Hey, I'm back in town."

• 10:39Alex Hormozi?

  Yeah, right.

• 10:40Shaan Puri?

  It's like, "Oh, I guess I'm on month 11 of my annual trial."

• 10:43Alex Hormozi?

  No, exactly. And so, there's basically five, five, five times that you want to sell, sell a customer. So, number one, I'm just gonna move this here. Okay, number one is immediately, right? So that's like in the same conversation. The second one is after basically some sort of activation point. Next, you have your halfway, just because like, you're like, "Why halfway? Because it's halfway and that's why it works."

• 11:08Shaan Puri?

  Because we're humans and halfway.

• 11:09Alex Hormozi?

  Yeah, yeah. You have your last chance at the end.

• 11:15Alex Hormozi?

  And then you have milestone, which is, which can happen kind of anywhere in here. But basically, they have something occur. So this is something they do. This is something that happens.

• 11:24Shaan Puri?

  So the action item for a company here is map this for yourself.

• 11:28Alex Hormozi?

  But if you're like, okay, well, which of the five do I do? You want to sell the point of greatest deprivation, not the point of greatest value. Sometimes the point of greatest value and the point of greatest deprivation occur at the same time. Not always, though. So I'll give you my simple example, which is like, if I go to the best steakhouse in the world and I have a steak and I'm like, this is amazing. And the waiter comes back and says, hey, would you like another steak? I'd be like, I'm good. And they're like, what, you didn't like the steak? And I'm like, no, the steak was great. They're like, why aren't you getting another steak? I was like, I'm good. They're like, well, if you, if you like the steak, you'd get more steak. And the thing is, is that so many businesses are trying to sell and upsell that way. They're like, my customers suck, they're so cheap. It's like, no. So at that point, I might have a, I might have deprivation around something that's sweeter and lighter. And that might be the right time to offer dessert. Right? Versus more of that other thing.

• 12:10Alex Hormozi?

  Now, the deprivation occurs at the same time as value creation when the first loop of value that gets created creates the next problem. So if I help you get leads and you get leads and then you're like, holy shit, I'm overwhelmed. If I say, hey, would you like me to help you work those leads? Then it's a very natural upsell where greatest value and greatest deprivation happen at the same time. If you are a business that doesn't have that type of, I'll just, I'll just speak broadly. If that doesn't occur in your business or on a short enough timeline, then that you, you don't want to sell at that time. Right? And so that's basically what we strive for. And that's why I've always been of the belief, like, when someone comes in with red hot pain, that's when you sell, not when you offer your trial.

• 12:52Shaan Puri?

  And so for, let's take, you can use the gym. We can use a different business if that, maybe, maybe that'd be nice.

• 12:57Alex Hormozi?

  Yeah, sure.

• 12:57Shaan Puri?

  If you can. What would you either, you know, either this or a money model? Well, you know, you can either walk through a money model or you can walk through this for another business. Let's do another example.

• 13:07Alex Hormozi?

  Sure. Let's say you have an SEO agency, whatever.

• 13:10Shaan Puri?

  So if you, actually, we can use one of my real businesses.

• 13:12Alex Hormozi?

  Yeah, sure.

• 13:12Shaan Puri?

  Okay, so we have this business, somewhere.com. We basically help you find talent that is overseas. So we help businesses where you're like, I really want a developer, but I'm not trying to pay 150,000.

• 13:20Alex Hormozi?

  Is she invested in that too?

• 13:21Shaan Puri?

  Yeah.

• 13:21Alex Hormozi?

  Okay, got it. I thought it was, okay, got it.

• 13:23Shaan Puri?

  So we, we own this business, somewhere.com.

• 13:27Shaan Puri?

  So for example, I got my assistant through this. You know, I hired developers, graphic designers, data analysts, whatever you need. There's talent is everywhere in the world. Hard to find. They put boots on the ground in different locations. So South Africa, Philippines, and they have hundreds of recruiters in each of those areas to find who's the best 1% in each of those locations to come work for you.

• 13:45Alex Hormozi?

  Amazing.

• 13:46Shaan Puri?

  Right? Great business, great margins. Love it. Happy owner. Yeah, exactly. Okay, so now what's the problem? So today, the way our money model works is customer basically listens to Sean's podcast. We'll just do this. Or they follow Nick on Twitter.

• 14:03Alex Hormozi?

  Yeah.

• 14:04Shaan Puri?

  So we get leads from one place. Exactly. Not exactly fully, but that's a bulk of it. And they come in, they book a call, and on that call, we try to sell them a contingency based thing which says, if we find someone, pay us a fraction of their salary. Now, they're so low salary typically because you're getting talent from different regions of the world, that will come out to, let's say, you know, maybe 6K per customer. And what we do is that happens, and then we stop and we go fishing again for the next one.

• 14:39Alex Hormozi?

  Yeah.

• 14:40Shaan Puri?

  Okay? Help us with our money model. How would you, if I read this book and I want to go help Nick improve this business?

• 14:47Alex Hormozi?

  Yeah.

• 14:48Shaan Puri?

  How would we improve our business by thinking in money models?

• 14:51Alex Hormozi?

  Yeah. So the question would be like, do we need, so if I'm looking at this, right, we have attraction offers. So it's like, do we have a big demand issue? Or do we have an LTV issue which might be upsells? Do we have a conversion issue which might be down sells?

• 15:03Shaan Puri?

  All of the above. Everything can be improved.

• 15:05Alex Hormozi?

  Or do we have a continuity thing? Right?

• 15:09Alex Hormozi?

  And so there are different structures that lend themselves more to one versus the other type of, type of problem, right, that we're trying to solve. And so like for an attraction offer, if you're like, you know what, let's get a shitload more, you know, phone calls in the door. I would say, hey, I just got this absolute savage. And I would put like, this is the dude. All right, this guy's a fucking god.

• 15:33Shaan Puri?

  Right.

• 15:33Alex Hormozi?

  Whatever. Now, who here wants him?

• 15:37Alex Hormozi?

  And I would say the, the business that, uh, like, we're gonna do a raffle and everybody who, who submits to win this guy. Now, obviously you gotta be ethical and loyal, but assuming that you're not a fucking idiot, right? Uh, this is, this is the guy that you're gonna get and you have to be a business that's like this in order to qualify. Cool. So they're gonna enter their information in order to get in the raffle. So they get this guy. Now you're gonna say, we will pay for this guy for a year as our, as the deal, as the big giveaway. Not only is he amazing, we'll also pay for him for a year. And so that makes a hu- you'll get a gigantic amount of demand, but what's beautiful about it is that the demand is for your most expensive or ideal product. And so then at that point, the person, like every single other person who opts in is a qualified lead who say, you know, we can't give you Carlos, but we can give you so and so.

• 16:22Alex Hormozi?

  And you, uh, we'll give you a partial scholarship. We'll give you a partial win, whatever. And you knock whatever off, 10%, 20% off, and then you roll that right into the continuity. So that would be an example of an attraction offer that you could attach to that existing thing. From an upsell, downsell perspective, it would be like, and there's five different ones. That's just one that I pulled out. That's a giveaway. We write giveaway. Yeah.

• 16:44Alex Hormozi?

  Yeah. And so like the, just for everyone's just listening, the, the, the weight loss version that I had was something called win your money back, which is a different, was a different mechanism. Right? So there's, there's five different ones that I think that work exceptionally well for bringing people in, depends on the type of business. And so for yours, there's buy, go buy free. There's a bunch of different versions, but like, think this makes the most sense. Cool. We'll use a giveaway. All right. So then upsells and downsells. So, um, with down, so I'll, I'll start from downsells. So you can have feature downsells. You can have free trials. You can have payment plans. Now for your particular business, payment plans doesn't probably, that doesn't really make sense because it's a continuity thing anyways. And so it's like, okay, we have free trials, which you kind of have with contingency. So it's like that parts, that risk is kind of, um, averted. But from a downsell perspective, they might think, okay, well I can't afford six. Now that's a business decision more than anything. I like to think of feature downsells.

• 17:28Alex Hormozi?

  So I can get you somebody who's maybe not as PhD level, whatever, but we can do it for 3K a month. And that person might give you more opportunities to say yes. That would be the downsell component. From the upsell perspective, there's, there's four different upsell structures that I like. The classic upsells, you can't have X without Y, right? Which is like, you can't have fry, you can't have coke without fries. You can't have burger. Without fries or whatever, right? It's like what you can't have X without Y. And so it's like, you don't want to buy this big, you know, this big framed art without insurance. Right? So there's always a you can't have X without Y. And so the so for here.

• 17:59Shaan Puri?

  Because they said yes, naturally, you just say yes to this next thing.

• 18:02Alex Hormozi?

  Exactly.

• 18:03Shaan Puri?

  In order to make your first decision and even more sound.

• 18:05Alex Hormozi?

  And this is why the whole deprivation thing that I was saying earlier is so important where like. Right now. Supplements. Yes, because some people are like, well, I don't want to sell them something else. It's like, well, you just created this new problem that they weren't aware of, which you will now make them aware of. Which is, oh, sometimes these guys flake out, whatever. And so we have insurance that we can offer for this type of thing. So me just shooting from the hip here. I was I'm running through the different mechanisms.

• 18:27Shaan Puri?

  This situation is payroll. So great. They a lot of companies are not set up to pay people all around the world. We can manage that for you.

• 18:34Alex Hormozi?

  Yeah.

• 18:34Shaan Puri?

  And we'll do it for you for 500 bucks a month.

• 18:36Alex Hormozi?

  Yeah.

• 18:36Shaan Puri?

  We'll take care of this because you're gonna you're gonna build out a remote team here all around the world. You don't want to be doing compliance and payroll and foreign exchange and tax reporting.

• 18:44Alex Hormozi?

  Yeah.

• 18:45Shaan Puri?

  We take care of all that for you for we have we have to count team that does that.

• 18:48Alex Hormozi?

  Perfect. And so that would be the natural upsell that you do you tack on. And so some people, and I'll just make this point. A lot of business owners will think, well, why don't I just include that in the main offer? So I'll just say in my experience, it's a lot of times as as bad as this may sound, it's easier to get the second yes after you get the first yes. And so like, it's like, well, maybe if I included that, they'd buy it at $6,000, $7,000 a month. It's like, yeah, but you might also just raise your price to $7,000 a month and then do it again, right? And then still have it. And so because I mean, the amount of gyms were like, you know what? I'm gonna I'm gonna take the challenge system and then just include the supplements. I was like. Or you could just do it the way that I've already tried 100 times. Like, believe me, if I could sell more upfront, I would. It works better this way. And I had this whole psychology around it, which is like, you have these different wallets in my mind. It doesn't work this way. But like, it's like.

• 19:34Alex Hormozi?

  My grandmother used to say this thing, like, I would go there and probably like your family, like overfit. She'd have she'd have enough food for 10 people when I go and see her on my own. And I would just she would stuff me to the gills. And one time I went there with my dad and she and I have different languages. So she's tough to talk to, but she said something under her breath after she walked away after I was like dying. And he cracked up. I was like, what did she say? And he said, well, you said you were full. And she said, well, your, your, your main stomach's full, but your dessert stomach is empty. Yeah. And so it's the same idea here where it's like, well, their person wallet has been spent, but their, their tax avoidance operation, what a pain in ass isn't. And that one's still full. So we can still tap that one. And so if we're, if we're drawing this, it's like, okay, so we've got payroll as our upsell. Cool. And you'll know your service is better than I do.

• 20:18Alex Hormozi?

  But it's like, okay, so we have one or two things that we can include in the upsells. But the mechanism of doing it is part of like, part of the money models book. And so the X without Y, the way that we probably present it. So each of that whole section is a lot more on the scripting of it. Okay. So it's like, hey, what a lot of people do is they do this. Do you want anything else, do you? And so when you say that, everyone says yes by saying no. And by that, it's like you get 80, 90% take rates on the upsell rather than saying, hey, do you want? It's a, it's a, it's a binary. It's a different question, right? Now they have to just consider a purchase. And so all of them have like tiny little, little repositionings that work really well. But that I think would make sense. Like you'd say, that's, that's the classic upsell. There's rollover upsells. There's, uh, which is one of my favorites is anchor upsells.

• 21:01Alex Hormozi?

  Which an anchor upsell would be like, let's say, uh, you're like, okay, if you want, Nick will go find the person for, I'm just making it up, right? And he'll do it, uh, for $15,000 upfront and, you know, $10,000 a month. Now at that point, they're like, shit, it's like, that's a lot. It's like, or if you're good with the exact same work being done by someone that Nick trained, we can do it for one third the price. And it's like, oh yeah, that's fine. And so the key part is that. You anchored them to. The anchor is, is part of it, but there's also like, um, What you want to anchor. And so the way I learned this was actually at a Salt Lake City suit place. So I go in, a friend of mine sets up a private suit appointment with me. Now, I'm not balling. I have like 10,000 dollars in my name.

• 21:45Alex Hormozi?

  So I was like, he's like, you gotta have a boss suit if you want people to take you seriously. This is many years ago. Obviously, I've really listened to his advice. And so I go in there and the guy's like, all right, I'll get you. And he asked me, what do you want? I said, a boss suit. And so I'm 23 or 24, something like that. And so he puts this suit on me and he's like, what do you think? I was like, oh, I look awesome. And then I, I looked at the tag and it was 16 grand. And I was like, I, I think I turned white, right? And I was like, oh, and I think he saw me like, just like freak out. And he's like, hey, he's like, do you care about the brand? And I was like, no, not at all. And he was like, I got you. And so he, the thing is, is that he had his lineup already picked for me and he just pulled the second one, put it on me.

• 22:25Alex Hormozi?

  And he's like, what are you thinking? I didn't even look in the mirror. I just looked straight at the tag and it was two grand. And I was like, thank God. I was like, okay, I can like, my friend's not going to be embarrassed that he senses poor, you know, his muggle, his non-match folk over peasant. And so anyways, I ended up checking out. Then he was like, whoa, you, you can't have this without that. He was like, well, you want to make sure that you have the little pocket thing and you want the socks, whatever. So I ended up leaving for 2,500 bucks. And I remember after I left, I was like, I spent five times more than I had budgeted for this thing. And I realized, I was like, oh, but the key part wasn't just that there was something expensive. Number one is that you actually have to sell it. As in, because sometimes people put anchors, but they don't really like commit to the anchor. If you just say it and then immediately like, don't even acknowledge it, then it's just like, this is this thing we put in the sales process. I don't know why it's there. That's dumb.

• 23:08Alex Hormozi?

  You have to commit to it because the thing is, is 10% of the time, you have a whale and they'll fucking buy it. You're like, holy shit. But the other 90% of the time, the key is that the thing that differentiates the anchor from the core offer is a very negligible thing. And so for me, the brand didn't matter. Or like, he might be like, do you care what kind of wool this is? I'd be like, I don't fucking care. Now, somebody might, and the reality is they probably don't actually. They just always buy the most expensive thing.

• 23:33Shaan Puri?

  Right.

• 23:33Alex Hormozi?

  Like Leila, just always ask, what's the most expensive thing? And then she just buys it. That's how she rolls, right? She just always wants the best shit. You know, whatever. But the thing is, is you want to have a model that allows for that. And if 10% of people buy something that's 10 times expensive, you double your revenue. So it's still worth it. And that, that's why the anchor should be super fucking high. And so that's an example of a different type one. But this one is a, is a classic upsell, which would be positioned the way I said, which is a no-based, a no-based yes. We covered the downside with a feature down sell and then continuity. Now, you already have a continuity business, so there's no real point to like saying, how do we, how do we do that? But one of that, like, there's a different mechanisms that I use in that, on that side. But one of my favorites is like something called a waive fee. So this works really well with expensive stuff. So we would say, hey, for us to go find this person, it's, it's 10 grand upfront.

• 24:18Alex Hormozi?

  Or I can waive it if you commit to a year. And so you just waive the fee, but you get the commitment. And, and the thing is, is like, oh, if you're not sure, then just pay the 10. You get it month to month, no sweat. And so with that, also you say, and we would stack it. So we'd be like, okay, we're going to waive the fee. We commit to a year. And if for some reason it doesn't work out with Carlos, we'll get you, we'll get you another Carlos within 90 days or whatever, no, no cost. And so then it's like the, so you, you decrease cost and you decrease risk with the continuity and commitment, and we create artificial pain in the moment. Now, what happens if they're like, hey, six months in, I want to cancel? It's like, no worries, just pay the fee.

• 24:53Shaan Puri?

  Right.

• 24:54Alex Hormozi?

  That I waived for the commitment. So it actually creates a very simple contract, which is like, you just got to pay that on the way out the door. So it also increases stick. So that's like, it has like three prongs to it that makes it, but it's very easy to understand and very elegant. And so that's one of the continuity mechanisms that I use.

• 25:09Shaan Puri?

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• 25:37Alex Hormozi?

  When I'm looking at a business, I'm running through the different mechanisms that we do. Like, okay, we're having issues, we're having a lot of friction here, right? Now, I'm guessing because you're selling continuity on the front end is probably not a huge deal, right? But maybe churn is, I don't know. But here, it's like, okay, which part of this process needs to get lubricated? Is it we need to lubricate people coming in the door? And that's where we'd reuse a raffle, or a giveaway, or sweepstakes, or something on the front end. Or it's like, you know, like, the thing is, is they're signing for six, but we need them at 10. It's like, okay, well, then we need to put more lubrication here. Or, you know what, we're getting all these unqualified, like, 80% of the leads that are coming in are unqualified. We make the business decision, we want to sell to these people. Okay, we have a gross product, a gross margin product that's sufficient, that still makes sense. We still have 80% gross margins on this inferior product. Okay, how do we present it?

• 26:21Alex Hormozi?

  And that's where the downsell would actually become really key. So I had a business that a close friend of mine had. And what we did was, for the downsell, he, we basically, the super high-ticket thing that we were selling, he's a PhD for health stuff, and he does all this, like, really weird health stuff for people. I'll just, if you have a problem, he's the last person you go to, and then he fixes it. That's his whole thing. And so, what we did, though, is we created a downsell that re-up-sold people. And so, they'd get sticker shock, and he would say, no worries, if you want, I can do it for, you know, $2,000 less, but I just won't include a guarantee. And so then people were like, I kind of want the guarantee. And then they'd re-up-sell themselves.

• 27:01Shaan Puri?

  Right. The guarantee is worth that $2,000 to me.

• 27:04Alex Hormozi?

  Exactly, which actually gets to show you. So then, there's becomes the art, and I talk about this in the book, of how much do I decrease price versus how much do I decrease value? And so, the play between those two, if you, the more you study the customer, the more you understand which components they value the most. And so, typically, when I'll create a downsell structure, I'm going to think, okay, the first downsell I'm going to give is actually to re-up-sell the main thing. Now, if they really can't, because they clearly said no, even though it's a big issue, then I see the next one I'm going to do is going to be a tiny thing with a large decrease in price. Right? And so, the first one, it's like, small decrease, big drop in value. You know what, I'd rather have the main thing. The next one, though, I'm going to have a bigger drop in price with a smaller change in value.

• 27:45Shaan Puri?

  Because at that point, price is actually... Exactly.

• 27:46Alex Hormozi?

  Right, and so then it's basically how do I ethically lower my price without saying I'm selling different things to different people? That way I can change the terms rather than saying, because I never discount, but I will change terms like, oh, no, they got something different than you, which is why they pay less. If you want, I can give you that. That's fine, but you just won't get what you're getting now. And so that's, so that's a little bit of a brief overview in terms of how I think through creating these. But you can see right now, like if you were to do just even like a raffle once a quarter, it's like that would probably feed all your leads for the next whatever.

• 28:16Shaan Puri?

  Yeah, and I think one of the best parts about this is every business has some version of this, right? This is a different way of looking at a funnel.

• 28:24Alex Hormozi?

  Yeah.

• 28:25Shaan Puri?

  But the cool part of what I think you're doing with your books is you're basically taking the parts of the funnel.

• 28:29Alex Hormozi?

  Yeah.

• 28:30Shaan Puri?

  Offer, getting leads through the door, being able to actually.

• 28:33Alex Hormozi?

  Sell the first thing.

• 28:34Shaan Puri?

  Sell the first thing to them and how do you string together things to maximize the value you're getting for every, that hard earned lead that you already, you know, paid for and busted your ass for.

• 28:43Alex Hormozi?

  Yeah.

• 28:43Shaan Puri?

  And one of the things I like about this is that you've basically codified a lot of what the best people do, but they do it in their business, then they get rich and then they sort of relax.

• 28:52Alex Hormozi?

  Yeah, right, yeah.

• 28:52Shaan Puri?

  Right, like I don't need to go back, I don't need to even label what each of these things were, but you've sort of looked at it and said, okay, let's call that an attraction offer. What are five examples of those that I've seen? And then you're on the lookout for them, you see it in this business and that business, and you start to put it together. So I think that's very, very valuable, even as a structured way of brainstorming. Because I think most people in their business, most founders will understand, yeah, I got to, I want to get more demand and I want to make more money per customer.

• 29:19Alex Hormozi?

  Yeah.

• 29:19Shaan Puri?

  But these vague wishes.

• 29:20Alex Hormozi?

  Yeah.

• 29:21Shaan Puri?

  And I think the key is to sort of not be most people. I have this like rant about most people. I'm like, you know, we try to fit in, that's our nature.

• 29:30Alex Hormozi?

  Yeah.

• 29:31Shaan Puri?

  But it's like, most people in America are overweight or obese. Most people don't like their job. Most people get divorced. Most people don't have enough money to, you know, to pay for an emergency procedure. You don't want to be most people, yet you want to fit in. It doesn't really make sense. And so I'd love to understand from you where you see a lot of entrepreneurs.

• 29:48Alex Hormozi?

  Yeah.

• 29:48Shaan Puri?

  When it comes to money models, what do you see is like, what are your most peoples that you're seeing? That if we just drew kind of like, here's how most people are doing this. And if you just made these sort of one or two tweaks, you're now not in the most people bucket anymore. You're operating in a different way. Your business is going to have a higher chance of success or be worth more.

• 30:05Alex Hormozi?

  I would say not enough entrepreneurs or students of business. And they're students of the thing. And so I'll give an example. So like, I will never claim to know more about remote work business or HVAC or plumbing or whatever, but like people fly out here not for that, but because a very good understanding of the variables that create money. And so it's like, okay, how can we arrange these variables? And then we will fit, like you said, the payroll thing. I was like, okay, great. You have a thing. I'm not going to be the one who immediately knows that.

• 30:31Shaan Puri?

  Right.

• 30:31Alex Hormozi?

  But I'll be like, there's a slot here that we're missing, right? And so one is they're not big enough students of business. Number two is a lot of times it's like, well, this is what everyone else does to your point. And so like, well, I'll give you an example. I had a guy who did guard services, right? And so they staff like buildings like this, right? With with guards. And so he had huge cash flow issues because he was paper thin margins, but it's super sticky. People stay forever. And it's very commoditized in terms of competing for bids. And so, you know, after talking for, you know, extended period of time, I was like, okay, well, why don't we just say that people pay quarter at a time and pay upfront? It's just, oh, yeah. And he's like, well, no one does that. And I was like, so let me give you the best overcome in the world. Someone's going to ask you and then you're going to say, well, everyone else does it.

• 31:14Alex Hormozi?

  You're like, we've just always done it this way. That's all you have to say back. All you have to say, we just, it's always, it's how we've always done it, right? And as crazy as that is, that is still the number one overcome.

• 31:23Shaan Puri?

  Excuse.

• 31:24Alex Hormozi?

  Yeah. It's still the number one overcome. Like when I used to ask for credit cards on the phone for someone to show up for, you know, personal training or trial or something. Like most places do not do that, but they'd be like, why do you need my card? Like, this is how we've always done it. And then they're like, oh, okay. And so there's all this, like, it's so funny how some of these little lines just make huge differences in your life.

• 31:41Shaan Puri?

  Weaponize the the uselessness of most processes. It's like, we're all so used to processes.

• 31:47Alex Hormozi?

  Stupid policies.

• 31:48Shaan Puri?

  That are stupid.

• 31:48Alex Hormozi?

  A hundred percent.

• 31:49Shaan Puri?

  That we're just like, oh, it's one of those. Got it.

• 31:50Alex Hormozi?

  From management. And they're like, oh, yeah, retarded. Yeah, got it. In. And so, um, so one is, but like when I, I had to spend probably 30 minutes with him to just like, just get him to just be okay with asking for the money, getting paid quarterly, number one, and getting paid before you do service rather than after you do service. And so, I mean, everyone throws around the word first principles, but it's like, very few people actually think from first principles. Like, what prevents us from doing this? And I think that's, that's like, this is the constraint, cash flow. Then like, what are all the things we can do? Can we change payment terms? Which is the first thing you're gonna do if you have cash flow issues. Can we push our stuff out, net 30 always?

• 32:26Shaan Puri?

  Right.

• 32:26Alex Hormozi?

  Like, how can we change this, this cash flow balance in our business?

• 32:29Shaan Puri?

  What's the money model of acquisition.com?

• 32:31Alex Hormozi?

  So, this is really interesting. So, it's so hard for me because what I have to write about is not the rules that I have to live by. And so, my favorite movie in the world is, is The Matrix, like many peoples. But there's the line in The Matrix when Neo's looking at Morpheus and he says, "So, you're telling me that I'll, I can dodge bullets?" And he says, "I'm telling you that when you're ready, you won't have to." And so, all of the things that I write about, like, even like selling tactics and things like that, they assume you have no brand. And so, like, when you have a brand, you have so much demand and so little supply, that you can set your own terms. I can have zero attraction offer and make the, the absolute worst offer in the world. I don't have to make a grand sum offer at all.

• 33:14Alex Hormozi?

  Because I might say, "I don't wanna deliver much at all. I will promise zero. I will guarantee nothing." And like, but because then that'll still give me less operational constraints on the backend. And so, at the end of the day, like, the reason I have, the, the two parts of my logo are, this is a lever, and this is supply and demand. And to me, those are the two biggest, the two biggest forces in business. And so, like, if you have-

• 33:34Shaan Puri?

  I always thought it was a whale's tail.

• 33:35Alex Hormozi?

  That's exactly what it is, yeah. But like, those are the two strongest forces in business. And so, all of these things are to help lubricate or create or channel demand when you have little. When you have an ocean of demand, it's hard to lose. And so, the model that we have is very different. It's almost like a word away model of like, we, you know, we invite entrepreneurs out here who we think are interesting. We look at the business, and then we say, "Hey, change these things. Call us in a year." And that's, that's basically what we did. We took our diligence process that we were doing for multiple years. And I was like, what hap- the, the catalyst for it was that we had, we were getting all these thank you emails. So, all these founders come in from my content or whatever, and they'd be like, you know,

• 34:20Alex Hormozi?

  they took, we, my deal team took six calls with them. And it was like, at the end, it was like, "Listen, these two metrics suck." Do these things, see how it works for a year, give us a call. And they were like, this was the most valuable process I've ever gone through. And then I was thinking like, that cost me a lot of money.

• 34:35Shaan Puri?

  Right.

• 34:35Alex Hormozi?

  And so I was like, well, what if I just charged for diligence functionally? And then I got, then I could actually staff it better and all these other things. And so that's functionally what we do from the advisory practice and then feeds the deal side.

• 34:46Shaan Puri?

  So you have the content, which creates the brand.

• 34:48Alex Hormozi?

  Yep.

• 34:50Shaan Puri?

  What you did is you turned your cost into, whether it's a profit center or breakeven, I don't know. But you know, something like this, this is your workshops.

• 34:58Alex Hormozi?

  Yeah.

• 34:58Shaan Puri?

  What did you call it? You called it something else just now?

• 34:59Alex Hormozi?

  Advisory practice.

• 35:00Shaan Puri?

  Advisory, okay.

• 35:01Alex Hormozi?

  Yeah.

• 35:01Shaan Puri?

  So this is your advisory.

• 35:03Alex Hormozi?

  Yeah.

• 35:03Shaan Puri?

  And you say, okay, pay us five grand, come over here.

• 35:06Alex Hormozi?

  Yeah.

• 35:06Shaan Puri?

  But then you do have to upsell here to like more advisory.

• 35:09Alex Hormozi?

  Which is like, yeah, so we just do, so basically from there, it's, this is how we, basically how we see value creation. And so we say like, this is our framework for creating value. If you like this, happy to help you. If you're like, this is cool, I'll go do this, awesome. But the consulting side's true consulting, it's, it's one thing. Like they come, we identify the constraint, we say, okay, okay. Well, we're going to go look at comps, we're going to look at the different ad strategies of people who are bigger. We're going to say, this is the funnel and this is the offer we think you should do. And we say, this is all you have to do. When you do that, call us. And so it's a hundred percent from point to point. It's not like a ongoing thing. It's literally one-time consulting. And that's the quote, that's the quote upsell.

• 35:50Shaan Puri?

  And then at the bottom here, you have the equity side.

• 35:53Alex Hormozi?

  Yep.

• 35:53Shaan Puri?

  Where you're like, great, the private equity side, right?

• 35:55Alex Hormozi?

  Yep.

• 35:56Shaan Puri?

  You're going to buy the businesses that.

• 35:57Alex Hormozi?

  Yeah, and the venture arm now, which we do a lot of.

• 36:00Shaan Puri?

  And venture, okay, gotcha.

• 36:03Shaan Puri?

  Interesting. When you started, how much of this was figured out as you go?

• 36:07Alex Hormozi?

  A hundred percent of it.

• 36:08Shaan Puri?

  Grand master plan, visionary.

• 36:10Alex Hormozi?

  Well, there's.

• 36:11Shaan Puri?

  Turtleneck.

• 36:12Alex Hormozi?

  Some things were master, yeah, right, yeah. Some things, I would say, the, the big goals were master plan. The, all of this mechanics was absolutely like figured out as you go. Like the books and how they've all been structured has been a five plus year plan. And you'll, you'll see what, what I do at the launch and why. It's going to be awesome, but it will, it will, it will all be revealed. But like the mechanics of like the prices and like how we do that like that was very much born from like I am currently spending money on this team. We have way more demand than we have supply. Maybe if I can generate more revenue here, I can staff it better. I can get more luck surface here because I can look at more of these deals. Because you've probably seen this, like some companies look terrible on paper and then you meet them and you're like, oh, these guys are awesome.

• 36:56Alex Hormozi?

  And so we had to do so many like, I mean, we probably talked to 1% of the papers that we that would come in and I was like, I know we're missing stuff. And so that was that was basically the thesis behind this.

• 37:07Shaan Puri?

  I mean, I think it was brilliant. I was like, wait a minute. So he's basically gets paid for people to come and open up the kimono. They get value too. Otherwise, they wouldn't be doing it. These are not dummies. These are business owners. Like they should be making good decisions. But I was like, wow, that's a.

• 37:19Alex Hormozi?

  Yeah, the median size is 4 million. So it's not like they're not small business. This is median. So like, there's plenty of like tons of good businesses. Every, every, every time we have a workshop, top ones usually between 30 and 100, you know, and there's plenty in the eight, like every single, I don't think we've ever had one that doesn't have multiple eight-figure companies.

• 37:36Shaan Puri?

  I want to play a game with you. Do we have the, the game here?

• 37:39Alex Hormozi?

  Oh, what is, what is the game?

• 37:41Shaan Puri?

  So the game was this.

• 37:43Alex Hormozi?

  Raro.

• 37:44Shaan Puri?

  Okay, so, so this is gonna be a game.

• 37:49Shaan Puri?

  That we're calling. Make it or take it. All right. So you're gonna have to shoot. I know, I know you're not big in the battle. We're gonna have to get up for this.

• 37:56Alex Hormozi?

  Yeah, okay.

• 37:57Shaan Puri?

  So you're gonna take a shot. We're gonna see how far back we're gonna go here, but I think we'll set that as the benchmark here. You make it, you're off the hook.

• 38:06Alex Hormozi?

  Okay.

• 38:07Shaan Puri?

  You miss it, you have to take it with one of the tough questions that.

• 38:10Alex Hormozi?

  We spin the bottle.

• 38:11Shaan Puri?

  I was like, I really like Alex. And I was like, what do people want? So I asked people, what do you want to episodes? A guy puts out a ton of content. You know, I'm not just going here to get views. Like, well, yeah, let's do something new. Let's do something fun. And so they were like, ask him some tough questions. So I said, okay, let me think of some tough questions, but let's make it fun. How we do this. All right. So first shot, go for it. And then you get a.

• 38:31Alex Hormozi?

  And then if you miss it, do I ask you the question?

• 38:33Shaan Puri?

  If you make it, you can ask me the question. That's fair. Or I burn the question. So it's up to you. So here's the question I have.

• 38:39Alex Hormozi?

  Okay, what's the question?

• 38:40Shaan Puri?

  Perfect. So the question is, what do your haters get right?

• 38:44Alex Hormozi?

  What do my haters get right?

• 38:45Shaan Puri?

  Meaning, you know, you get criticism as anyone does, but sometimes there's, you know, some criticism is fair or there's components of it that's fair. So what do the haters get right?

• 38:59Alex Hormozi?

  Steroids is one, you know, he's just, you know, he's here for the money. I would say from like the philosophical angle, you know, I'd say there are people who are like, you know, the, say that like Alex doesn't have a life and I'm like, well, yeah, I'm pretty open about that too. You know, so it's like, they will use a fact as an insult and I'll be like, I agree.

• 39:18Shaan Puri?

  Right.

• 39:19Alex Hormozi?

  So that's.

• 39:20Shaan Puri?

  Well, I think that qualifies. I think that's one, right?

• 39:22Alex Hormozi?

  Yeah, I mean.

• 39:22Shaan Puri?

  They're intending it as a hater comment.

• 39:25Alex Hormozi?

  Yeah.

• 39:25Shaan Puri?

  But you're like, yes, and I agree.

• 39:27Alex Hormozi?

  I agree. Yeah. And if you, if only you knew.

• 39:28Shaan Puri?

  And I'm open with that.

• 39:29Alex Hormozi?

  Yeah. No, like, cause if you ask, he's like, I'm here seven days a week. Like I work all the days until I cannot work and then I take a day and then I continue to work again. And I, I work 12 hours most days. I'm usually here five to five for six. And so it's.

• 39:43Shaan Puri?

  Is that a temporary thing? Are you like, I'm in an era of my life where that's what I want to do? Or you're like, that's who I want to be?

• 39:49Alex Hormozi?

  It doesn't feel, this doesn't feel like a push. Like if I, if I, when I'm pushing, I work third shift, which is I work 18. If I do that for an extended period of time, that starts to grate at me. But like 12 is like, that doesn't, yeah, like five to five, five to seven. I'm like, I still feel like I've got plenty of time to like chill out and do whatever.

• 40:07Shaan Puri?

  All right. This episode is brought to you by Mercury. They are the finance platform of choice for over 200,000 companies. Shouldn't be surprised because I use it myself for not one, not two, but I have eight different Mercury accounts. I have seven for different companies that I'm a part of. And then I have my own personal account because now they have personal banking, which is a really cool feature. I highly, highly recommend it. Like I said, I use it myself. And the reason why is because the way that Mercury works is beautiful. It's very intuitive and you could tell that it's actually made by a startup founder. It's an entrepreneur. You could tell it's made by somebody who used other banking products in the past and didn't like all the different rough edges and annoyances and decided to, you know, actually fix it himself. And really any type of entrepreneur you are, let's say you're an agency. Well, one of the things every agency has to do is be able to send invoices, easily create them, send them to customers

• 40:51Shaan Puri?

  and stay current on your balances with all your customers. Well, you can do that inside Mercury. And so I think that Mercury is great. Highly recommend you check it out and thank you for sponsoring the show. For more information, check out mercury.com. Mercury is a financial technology company, not a bank. Check show notes for details. So. Let's do another question.

• 41:07Alex Hormozi?

  Yeah, okay. Yeah, make it or take it.

• 41:09Shaan Puri?

  All right. Next question.

• 41:10Alex Hormozi?

  All right. What do I got?

• 41:12Shaan Puri?

  I love it. All right. If I reset your bank account and your followers, change your name and face. So I reset you to zero, basically drop you in another, drop you in another life, not another country. How long do you think it would take you to get rich again?

• 41:24Alex Hormozi?

  What's rich?

• 41:26Shaan Puri?

  Rich would be, let's say, for the name of this podcast, my first million. To make a million bucks, get a million bucks in your bank account.

• 41:31Alex Hormozi?

  A year.

• 41:32Shaan Puri?

  And what would be the approach? So you're back to nameless, faceless Alex.

• 41:36Alex Hormozi?

  Yeah. Well, having lost everything twice, I'll tell you what I did, which was I find a local business. That's typically a service that I think I can sell for a lot of money. And they're typically undercharging. And so I will say, hey, how cheaply will you let me sell? Basically, if I, if I send you a hundred customers, how cheaply would you do it? Would you charge me to do that? And so I get an agreement on price from them. And then I sell for whatever the hell.

• 42:03Shaan Puri?

  I brought you volume.

• 42:04Alex Hormozi?

  Yeah.

• 42:04Shaan Puri?

  What's the lowest you could deliver the service for that volume?

• 42:06Alex Hormozi?

  Yeah. And so let's say it's a bat cracker, it's a chiropractor, whatever. And I say, okay, how much will you crack backs for at the absolute cheapest? And he says 25 bucks a session. I say, okay, cool. So I can sell packages of 10 for 250 and you're cool with it? And he says, yes. So I'm going to go and sell packages for three grand.

• 42:22Shaan Puri?

  Right.

• 42:22Alex Hormozi?

  And I'm going to make the spread. And it's because I know how to sell and I know how to get leads.

• 42:25Shaan Puri?

  Right.

• 42:26Alex Hormozi?

  And so, I mean, this is what I did. I mean, obviously I did it in the gym space, but that's, that's what I did when I lost everything. I just went to gyms and said, hey. But for them, I negotiated zero. So like, you already have all your cost basis. I'll just add you customers and then after.

• 42:40Shaan Puri?

  The first month.

• 42:41Alex Hormozi?

  Exactly. So I would, I would take the first, the 500 bucks. I'd say like, I get to keep that. And then after six weeks, you can convert memberships are all yours. So zero CAC for you. I take all the risk. I do all the work.

• 42:49Shaan Puri?

  Right.

• 42:50Alex Hormozi?

  And that's, and then I would, I did about a hundred grand every 21 days doing that.

• 42:54Shaan Puri?

  Is there a better or worse type of service business that you'd go for? Like knowing what you know now, like maybe I sold to gyms.

• 42:58Alex Hormozi?

  I for sure do healthcare.

• 43:00Shaan Puri?

  Healthcare.

• 43:00Alex Hormozi?

  Oh, my God.

• 43:01Shaan Puri?

  Healthcare means what?

• 43:02Alex Hormozi?

  White lab coat.

• 43:03Shaan Puri?

  Anything, any service in healthcare.

• 43:05Alex Hormozi?

  Like pseudo, I call it pseudo medical.

• 43:07Shaan Puri?

  Okay.

• 43:07Alex Hormozi?

  So that's where like, I mean, that's why I like teeth whitening. That's we have a chain of 28, 28 stores. Like I love pseudo medical stuff. So laser, you know, laser, laser skin stuff, laser hair removal, you know, the, the chemical peels. I love all that stuff. Like the, the beauty, medical, like intersection, you can just sell your eyes out. It's amazing.

• 43:29Shaan Puri?

  What's the why you love it? Because of the demand, because it's?

• 43:32Alex Hormozi?

  Huge supply-demand inequality. So there's, if you look at the stats there, it's insane. Like, the amount of demand of like boomers and all this stuff who like wanna stay young, and the supply side on it is so low. And the reason I know this is because every single med spa that walks in these doors is killing it. And I talked to the founders and I'm like, whoa. And I'm like, so how do you market? They're like, we just kinda like open up. We just, we just announced that we're there.

• 43:54Shaan Puri?

  We have a website.

• 43:54Alex Hormozi?

  Yeah, no, they're like, yeah, we have a phone number. People just kinda come in. I was like, they don't know. That's not, that's not how it works.

• 43:59Shaan Puri?

  That's not how most businesses do it.

• 44:00Alex Hormozi?

  That's how, that's how crazy the supply-demand difference is. And they don't think about pricing. They think about nothing. They just, and they make, you know, 40%, they have no idea. And so that's why I would go there.

• 44:09Shaan Puri?

  That's like a heat signal for you.

• 44:10Alex Hormozi?

  Yeah, that's, yeah, 100%. When I see a lot of people who don't know what they're doing, all making money, I'm like, okay, there's something there that's good. Um, and so that's what I would do, because that's what I did do.

• 44:19Shaan Puri?

  Right.

• 44:20Alex Hormozi?

  Thank you.

• 44:21Shaan Puri?

  All right. Let me get, wait, wait, let me get another question here that I wanna do, because I got a couple.

• 44:24Alex Hormozi?

  Yeah, because it's like, if you need to make a hundred grand to a million bucks, you could do that. Like, if you just, if you know how to generate leads locally and sell, you just get a service business that agrees to take customers for a price, and then you just sell as much as you can.

• 44:36Shaan Puri?

  All right, go ahead.

• 44:38Alex Hormozi?

  Well, then just get.

• 44:40Shaan Puri?

  You want me to burn it? You can ask me.

• 44:41Alex Hormozi?

  What are you doing? Uh, what did you get most wrong in the past three years?

• 44:45Shaan Puri?

  Okay, I'll tell you this. I started with a bit of a portfolio approach.

• 44:50Alex Hormozi?

  Mm-hmm.

• 44:50Shaan Puri?

  So I kinda had this thing where I was like, I don't wanna operate. But these guys are operating well. I can add a bunch of value, similar to what you guys do, private equity, whatever. And I took minority stakes in several companies that have done well. But basically, when they do well and I add value, I just sit there wondering why the hell don't I own more of this company? And I realized that I could have made more and really simplified my life with one great business. Like, it doesn't take many great businesses to get to the next levels of wealth. You know, business can be worth 100 million, 500 million. Like, they can get very big. And so I would have been better served doing less. And I got it wrong. I thought that I was being, I thought I was playing the game at a bit of a higher level, uh, when in actuality, if I just kept it simple,

• 45:32Alex Hormozi?

  Yeah.

• 45:33Shaan Puri?

  picked one of those businesses or built one, one great business, I could have done better than I did spreading my focus, uh, with less work.

• 45:40Alex Hormozi?

  I made the same mistake. Yeah, we did, we did 24 deals in 24 months, and then we consolidated down to five.

• 45:46Shaan Puri?

  Yeah.

• 45:46Alex Hormozi?

  Like, you, it's, it's, I mean, it's 80/20. You're like, wow, that was dumb.

• 45:49Shaan Puri?

  The power law applies at basically all levels of life.

• 45:52Alex Hormozi?

  It still rules, yeah.

• 45:53Shaan Puri?

  All right, let's do the next one.

• 45:54Alex Hormozi?

  All right. All right, now I've got my.

• 45:57Shaan Puri?

  Yeah, I gotta move the benchmark back.

• 45:59Alex Hormozi?

  Fine, you can just ask it, whatever.

• 46:00Shaan Puri?

  All right, I was gonna ask you, this one's funny. Should entrepreneurs, should successful entrepreneurs get a prenup?

• 46:07Alex Hormozi?

  Should's tough, as a, as a frame.

• 46:09Shaan Puri?

  If it's your kid?

• 46:11Alex Hormozi?

  It's my kid, uh, well, if they're my kid, then they're gonna have my money. So yeah, I'd say, yeah, get it.

• 46:16Alex Hormozi?

  I mean, um, for me, I, I asked Leila. Basically, it's like, when you, you wanna, you wanna have a prenup in the, when you have somebody who doesn't wanna sign a prenup.

• 46:27Alex Hormozi?

  Like, that's, like, that's the only, that's the only way I can say it. Yeah, it's actually, so like, um, Leila and I, um, I thought I was like, rich when I met Leila, which I wasn't, but like, I thought I was rich. Um, and I said, will you sign a prenup? And she was like, sure, like, I don't care, I don't want your shit. And so, we were on the way to the courthouse to get it, the notarized or whatever, and in a dramatic flare, I tore, I tore it, I tore it and threw it out the window.

• 46:51Alex Hormozi?

  Because I, like, it was so not a thing, she was like, I don't want your shit, like, it's fine. And I believed her, and, like, we've built everything together, so, um, but I think that is very risky advice, and so I would say the vast majority of people should, like, should strongly consider it.

• 47:07Shaan Puri?

  Romantic, I like it. All right, here we go, I'm gonna give you one, okay, I like this question, so I'll do this one. Oh, perfect.

• 47:13Alex Hormozi?

  Bumped in and out, I know.

• 47:14Shaan Puri?

  This is an easy one, this is actually not that tough a question. If you could only follow three people on X, meaning if you had to slim your content diet down.

• 47:21Alex Hormozi?

  Ooh, that's a really good question.

• 47:22Shaan Puri?

  To bodybuilder mode, where it's like, chicken and broccoli or whatever.

• 47:24Alex Hormozi?

  Mm-hmm.

• 47:25Shaan Puri?

  Who's your chicken and broccoli of your content diet? People you genuinely, you genuinely value what they're putting out there on, uh, I think maybe Twitter's one of your big platforms.

• 47:34Alex Hormozi?

  Yeah, no, it is. It is. I mean, Elon would be one, um, so I have two more, two more people to, to, to use.

• 47:46Alex Hormozi?

  You know what's weird? I'm actually, I totally like, use Twitter like a, like, I just like, let it serve me, whatever.

• 47:52Shaan Puri?

  Right.

• 47:52Alex Hormozi?

  And so, I just like, love all the threads. Yeah, I just like, kinda like, just let it feed me, whatever. Um, I'm trying to think about the other accounts that I would be like, oh, I would, I'd miss them if I didn't see them.

• 48:01Shaan Puri?

  Right.

• 48:02Alex Hormozi?

  It's actually hard, it feels like I'm like, who are two of yours? Who are two of yours?

• 48:06Shaan Puri?

  Um, Naval would be one.

• 48:08Alex Hormozi?

  Okay, Naval's a good one.

• 48:10Shaan Puri?

  You know, the others, I mean, I would cheat and be like, the news aggregator, so it's like, oh, at least I get all that. But I wouldn't actually pick that.

• 48:19Alex Hormozi?

  You know who actually I think puts really good content? Anker from Carrie?

• 48:22Shaan Puri?

  Okay.

• 48:23Alex Hormozi?

  Yeah, I actually like his stuff a lot.

• 48:25Shaan Puri?

  Interesting.

• 48:25Alex Hormozi?

  Yeah, I like his stuff. That probably my second one. Just it's a very tactical, very, oh, you know, I love George Mack's stuff. Yep.

• 48:31Shaan Puri?

  George Mack, although I'd cheat, I'd be like, just text me the thing.

• 48:35Alex Hormozi?

  George is really good. I actually really like George's stuff. Yeah, now as I'm thinking about it, it's like, Sayhow puts good stuff out. Obviously Williamson puts good stuff out. So like, now that I'm thinking through, it's like, I have like this blank, but no, I like, I think George, George has some of the most unique takes, and I think that's why I like his stuff a lot.

• 48:50Shaan Puri?

  Yeah. All right. Well, thank you for playing the make it or take it. You took the tough questions.

• 48:54Alex Hormozi?

  From Ozzie Hot Hands.

• 48:57Alex Hormozi?

  Hard questions. Yeah, the three, you know, the biggest errors, man, that's a, because it's like, which ones cost me the most? And then which ones did I miss the opportunity the most? So it's like, I have, it's like, I, it's like, just based on the, like, I, I thought, I've really beat myself up on this. I have missed more hundred million dollar net gains and multiple hundred million dollar net gains than I have made, which makes me really angry. But then I thought about it and I was like, you always say no to more deals than you say yes to. So you're always going to miss, you're literally going to miss more winners than you have.

• 49:33Shaan Puri?

  Right.

• 49:33Alex Hormozi?

  But like, but like, every, I could tell you all, like, it's like, I say their names before I go to sleep at night. Like, I, like, one of them was, yeah, and some of them, I'm like, I should, like, this one was in the, like, I, there's no, like, there was a gym franchise. Like, buddy of mine, I've known him for years, he's been in the business for 30 years. He finally went out on his own to start a franchise. And then I, I was like, we need to do the business this way. And he's like, I just, I just want to run a franchise. So I was like, dude, let's just privately own them all. It's a great model. And I was like, I'll fund the whole expansion. And he's like, I've already sold 40 units, like, you know, I don't want to foot back. And, and so I ended up like not doing the deal. And he'll exit for probably 120 million. And this is in three years. And I, I was gonna, it was for 50% of the company.

• 50:16Alex Hormozi?

  And I was just like, he was a friend, it was fitness for, I was like, there's, I should not have missed this deal. You know what I mean? There's a content creator that I, that I love and have followed for more than 10 years. Talked to them, you know, we had a, we were going to get a 33% stake in the company. And from the time that I, we said no to the deal, I'd say 24 months later, they're now probably 150 million dollar company. And it's just like, I have like four or five of these ones that I'm just like, I should like, that was like, that one I said no, because I knew the amount that he he slash they wanted from me was going to be more than I wanted to commit to like I could they it was like,

• 50:59Alex Hormozi?

  I think they saw it as like an aqua hire. And I was like, I'm not gonna like, I will do this, but I'm not gonna dive in.

• 51:05Shaan Puri?

  I had a moment like this in Silicon Valley. I was

• 51:08Alex Hormozi?

  Yeah.

• 51:08Shaan Puri?

  I thought I was saying my big miss.

• 51:10Alex Hormozi?

  Yeah.

• 51:11Shaan Puri?

  I was like, I forget what you want to was maybe it's like calm or something. I was buddy with Alex and, you know, he was like, raising it probably like a four or five million dollar valuation. It's now two billion, right? So I could have easily written a check into calm. Disregarding the fact that at the time I had no money, was not angel invested. Like, there's many reasons I missed that. In addition to just not thinking it was going to be a winner.

• 51:28Alex Hormozi?

  Yeah.

• 51:29Shaan Puri?

  Um, but besides that, I I was telling some story about one of these, one of these misses. And I thought I was like, sounding cool because I missed it. And literally, I just got big dogged by this guy in Silicon Valley. He was just like, he's like, okay, welcome to Silicon Valley. He's like, what are you talking about? Everybody, anybody has

• 51:44Alex Hormozi?

  Yeah.

• 51:44Shaan Puri?

  Baskets of these. Are you kidding me? You want to start like?

• 51:47Alex Hormozi?

  Yeah.

• 51:48Shaan Puri?

  I could, how much time you got?

• 51:49Alex Hormozi?

  Facebook number one, Uber's first and second round.

• 51:52Shaan Puri?

  Exactly. It's like, oh, I wrote the check. I missed did the date, you know, how many different versions of this? And he, but he said something smart, you know, he was first, he was like, shut up. Basically, he's like, shut up. You think this is like, a really cool, unique story?

• 52:02Alex Hormozi?

  Yeah.

• 52:02Shaan Puri?

  Not only is this not cool and unique, it's actually just a standard cost of entry if you're gonna play this game. So like, what are you talking about?

• 52:08Alex Hormozi?

  Yeah.

• 52:08Shaan Puri?

  But the second thing he said was, he's like, I think you're taking the wrong lesson from this. Because I was focusing so much on what I missed out on.

• 52:14Alex Hormozi?

  Yeah.

• 52:15Shaan Puri?

  Versus what the root cause analysis of why didn't I do this?

• 52:19Alex Hormozi?

  Yeah.

• 52:19Shaan Puri?

  Oh, okay. And I've actually since then changed this where it's like, actually, a lot of these misses were like, deals I liked, I wanted to do, they want to do it. We just didn't chase or kind of follow up.

• 52:26Alex Hormozi?

  Yeah.

• 52:27Shaan Puri?

  Enough to like, make sure a transaction goes through because doing a deal

• 52:31Alex Hormozi?

  Sure.

• 52:31Shaan Puri?

  Takes a sprint at the end. And we actually like, operationalized a bunch of those. Once we, once we got over ourselves and the, the kind of weird ego of missing, uh, you know, life got a lot better for us. But I had to, I had to learn that the hard way.

• 52:44Alex Hormozi?

  But that's, that was probably a big one. I, um, and then a lot of my big misses have been like, strategic mess ups. Like, one of the big, like, one of the biggest errors I ever made at Gemwatch was I started Allen, the software company. And I should have built a CRM for gyms and that was like, I had the right idea.

• 53:00Shaan Puri?

  What did Alan do if it wasn't?

• 53:01Alex Hormozi?

  It just, it worked leads because the biggest pain point they had was working leads. CRM wasn't a pain point from a monetization perspective. If I had put them all on the platform, then I would have all their metrics. I would have been control revenue. There were so many things I would have been able to do.

• 53:12Shaan Puri?

  You could have used the pain to get them into like the sticky forever product.

• 53:15Alex Hormozi?

  Hundred percent. And so like, that was like, that was probably a $300 million miss. And so like, that sucks. Like, I've, that's probably like my biggest strategic miss I've made. From like, I literally allocated capital to build technology and I built the wrong one.

• 53:29Shaan Puri?

  Right.

• 53:29Alex Hormozi?

  Like, but I didn't know enough. I mean, I was 27, you know?

• 53:32Shaan Puri?

  On the other side of the coin, what are the biggest hits that have happened post the gym launch and whatever?

• 53:36Alex Hormozi?

  This building. So this was like unexpected, like, wow, this was way, way more alpha than I would have, would have guessed.

• 53:42Shaan Puri?

  Like the, literally the real estate value or you mean just the serendipity of doing an office?

• 53:46Alex Hormozi?

  So I bought this building before we did any, like, it was just like, I just wanted a place of a gym. So like, I was like, I'm gonna, I'm gonna buy the building. And Leila was like, we don't like, we're all remote. And we have like, you know, with the, on the, just the pure holdco, I think at the time with like 15 employees, just on the investment side. And I was like, and so, and so anyways, I was like, I really want this building. Cause it was the, it was old UFC building, it's just kinda cool. I was like, I will figure out a way that it will pay for itself, right? And so, the only reason the advisory practice got stood up was because I was like, well, we have this space. I was like, let's just, I'll make a post and see if anyone wants to come out. And then that's what sprung this, like, there's huge demand for that in person versus remote stuff.

• 54:28Alex Hormozi?

  And so then it was like, great, so we meet all these businesses and we generate cash flow. So it's like both things, but like this for sure, like that whole thing would not have happened if we didn't have a building. Like zero chance, I wouldn't have done it. Cause I, it was just like, I have the space, let's try. I just would never have taken that leap.

• 54:44Shaan Puri?

  Right.

• 54:44Alex Hormozi?

  So that was probably a huge like, didn't guess it was gonna be a win-win. That's probably like the biggest, the biggest one that's like that.

• 54:51Shaan Puri?

  Plus, I mean, you've got like, you know, Michael and a bunch of other guys who are here all the time now, which I think it was very tempting and very easy to be fully remote.

• 54:59Alex Hormozi?

  Yeah.

• 55:00Shaan Puri?

  And I think remote works, but remote works.

• 55:02Alex Hormozi?

  Yeah.

• 55:03Shaan Puri?

  But in like the business Olympics, the people who are serious about it, they're gonna be together. They're gonna be co-located.

• 55:07Alex Hormozi?

  Yeah.

• 55:08Shaan Puri?

  You know, like, I paid Diego, I was like, move across the country, I'll pay you more, just live. As like, the rule is here's a five minute radius from like, you know, where I live.

• 55:16Alex Hormozi?

  Yeah.

• 55:17Shaan Puri?

  Pick a place, you know, that, that's the only rule of coming out here and because. There's, you know, you can't really replace that.

• 55:23Alex Hormozi?

  Oh, totally. We're eighty. So now we're eighty percent in person. Instead, I think we're at like ninety-ish employees, something like that. And so the only thing that we allow as remote is infrastructure. So HR, well, actually, HR is here. So like, but finance can be remote. Certain tech roles can be remote. Legal can be remote.

• 55:44Shaan Puri?

  This has actually become my favorite podcast question. I don't know if you have a good answer to this because I think you're so locked in and focused on what you do. But it just, what are you, what are you like really interested in lately? Like, what are you very obsessed with lately? That's not your core day-to-day work, meaning not like a hobby, but just like, dude, I'm kind of fascinated by this. Or just like, keep reading about this, or I keep wanting to meet people in this, doing this thing. What's that thing?

• 56:07Alex Hormozi?

  I only have two, and they will not be, well, one's the tried answer, which is like, I'm reading up on AI just like you are. And I spend a ton of hours looking into it. The other thing is completely unsurprising is that I'm actually really into gym equipment. Like, I, like, my Instagram is gym equipment. It's gym equipment.

• 56:23Shaan Puri?

  Are we talking like novelty gym equipment? Or what do we like, like, kind of like, I get all these like, your neck cracker, your Achilles machine.

• 56:29Alex Hormozi?

  Mine's like commercial, like giant pieces. Yeah, like, like the stuff that you see at gyms.

• 56:34Shaan Puri?

  And why are you so interested in it? What's, what's, get me interested in it?

• 56:38Alex Hormozi?

  Well, if you, like, if you train hard, like, you start to notice that, like, some, some machines are better than others. And like, why are they better? And then you start looking at like force curves for like, okay, where does the, you know, where's the tension the highest? And then it's like, does it correspond with where hypertrophy is maxed out for like the range of motion for the muscle? And like, just like, what's the feel of the, of the, of the equipment and the range of motion and the adjustability? And, and like, what, like, what kind of bearings are they, like, you can get, you can go like pretty far into this. Yeah. And so I'll say this, there's the, there's this, a new thing that came out. It's called the Voltra. I'm not sponsored by Beyond Power. And I think that, I think in, I think ten or fifteen years.

• 57:16Alex Hormozi?

  Gym equipment will look very different and it has not changed for a very long time. And it's because basically magnetic resistance hasn't, wasn't a thing and now it is. And so like a Vulture, for example, is it's like a brick, it's literally the size of a brick. It's this big, it can get to 200 pounds of resistance, right? But not only that, you can do single pound increments, which is amazing for strength work. Cause like most people, like side note for anybody, a lot of reasons you get stuck at a, at a, at a machine or on dumbbells is because the percentage jump is too big. Like girls with dumbbells, it's like the worst. They go from 20 to 25 pounds for a girl. It's a 20% jump in, in, in, in weight. And so they just can't make the jumps, they just get stuck. Whereas like the perfect gym would have literally a hundred dumbbells that are one pound, two pound, three pound, four pound, all the way up.

• 58:00Alex Hormozi?

  And then you can make those progressions much easier. So anyways, it goes single pound increments. You can also change the eccentric so you can have it be way harder on the way in versus the way out. The next thing is you can change the curve. So you can make it like really hard at the front. So for any kind of pulling movement, you want heavier here because you're stronger here, lighter here. On the flip side, if you're doing pushing movements, you want to be lighter here, heavier here.

• 58:18Shaan Puri?

  And you do that by just telling it the movement?

• 58:20Alex Hormozi?

  Yeah, you can just move the curve. You can change the curve.

• 58:22Shaan Puri?

  You can manually change the curve.

• 58:25Alex Hormozi?

  And so because of that-

• 58:27Shaan Puri?

  Is this a European company, by the way?

• 58:28Alex Hormozi?

  I don't know.

• 58:29Shaan Puri?

  I, I, somebody sent me this. They were like, cause I was buying the, the both likes like adjustable, like two dumbbells, but you can do all these weights. And he's like, I really want to get it, get these. And I thought that might have been the one.

• 58:40Alex Hormozi?

  That's probably Newbell.

• 58:41Shaan Puri?

  Okay, maybe that was the one.

• 58:42Alex Hormozi?

  That's probably what it is. But yeah, the, the best ones right now are the Rep slash Pep in adjustables. They go to 120 and they're all metal. There's no plastic. It was, I mean, like I can talk equipment, but that is probably my, I'll, I'll circle, I'll close the loop on the, on the Vulture thing. The reason that I think it's so interesting is that like all the select rise pieces you see stacks of weight, right? You put a pin in it and there's the stack. Those, they take up so much room because you have to have room, you have to balance the, the piece of equipment from when people are moving it. And the stack takes up a huge amount of space and from a shipping perspective, it's so expensive to ship 400 pounds.

• 59:15Shaan Puri?

  Right.

• 59:15Alex Hormozi?

  Plus the machine, right? And so it takes more square footage, it's more expensive, it has smaller increments, you can't change the strength curve. There's all these reasons. And so they find, like the tech is finally- There where I think that there will be a next generation of machines where they will only have the electronic. Yeah, exactly. And you just literally plug it into the wall. And the thing is the square footage will be smaller, the actual machines will be cheaper. Because this is Volta's Gen one. As soon like like in five generations, it'll be $200. Right now it's 2,000 for the brick. But it'll be cheaper than weight. As soon as it's cheaper than than mass based.

• 59:50Shaan Puri?

  Physics, yeah.

• 59:51Alex Hormozi?

  Yeah, as soon as it's cheaper than mass based wire, there's there's basically no point to having mass based resistance. So I I get very excited about that stuff because I think it's going to be really cool for gyms because I mean, I obviously come from that space. But the amount of things that you can now be able to do as a gym owner now, I don't own a gym right now. I do own a gym, but just not commercial. There's so many more things you can do with customers that like your ability to do like true hypertrophy training in a large group setting. When you have that type of resistance, it's safer. You can't get hurt on it. Like there's all these things that are beneficial for it. So I think that that's my that's my 10 year call.

• 1:00:27Shaan Puri?

  Yeah.

• 1:00:28Alex Hormozi?

  That people aren't expecting. I think it all. I think a huge amount will be magnetic. It could be cheaper for gym owners. They don't break as often incremental, all the reasons I said, and it's less space.

• 1:00:37Shaan Puri?

  Dude, that was a sick answer. That was the one I was like, I don't even know if I'm gonna ask him. I feel like he's totally like, I really liked writing this book. And I'm like, okay, great.

• 1:00:45Alex Hormozi?

  No, gym equipment. Have you seen my gym?

• 1:00:47Shaan Puri?

  No.

• 1:00:47Alex Hormozi?

  I'll show you.

• 1:00:48Shaan Puri?

  Okay, yeah, that's cool.

• 1:00:49Alex Hormozi?

  Yeah, you'll see it and be like, oh.

• 1:00:50Shaan Puri?

  You said you're geeking out on AI. Anything like what's it? You use it a ton? What do you use it for?

• 1:00:54Alex Hormozi?

  Yeah, I use it a lot. I use it. I mean, I feel I I just say I'm ashamed. I use it all the time and I am ashamed at I'm my use cases. I know I should be using it better, which I think many people feel that way. But I feel like at all levels, everyone feels like they should be using it more. But.

• 1:01:11Shaan Puri?

  There should be a word for like AI guilt.

• 1:01:13Alex Hormozi?

  Yeah.

• 1:01:13Shaan Puri?

  I have this like overwhelming sense of AI guilt.

• 1:01:16Alex Hormozi?

  Yeah, I think Elon has AI guilt. You know what I mean? So I'd say like. I'm the most interested part that I'm in for like where I'm focused on AI is actually phones. Cause obviously I come from the sales background and so that use case like I want.

• 1:01:30Shaan Puri?

  Phone call?

• 1:01:31Alex Hormozi?

  Yeah.

• 1:01:31Shaan Puri?

  Like sales calls, customer support calls.

• 1:01:34Alex Hormozi?

  Like right now, we have, we have fully implemented AI support and it's crushing. It's doing so, it's like, it's amazing. So right now, over 90% of all tickets are being resolved entirely with AI. Which is, I mean, you have any commerce or multiple, right? Like it's so, it's amazing. And like the, like I'm getting, I'm getting these thank you emails like you guys rock. Like this was two minute response, like you guys are on it and like the whole thing's AI. And so I'm like that, it's obviously the text based side is there, but like it's weird because the, if you let, you like Grok four, I'm sure you got the upgrade or whatever.

• 1:02:08Shaan Puri?

  The voice keeps getting.

• 1:02:09Alex Hormozi?

  Yeah, they're so, like I, Grok's the one I use for voice. So it's the only one that I do voice stuff with. I do all the other stuff with the other ones. But I'm like, why, like it's so close. Like the latency is so close that I just, I, that's the use case that I'm waiting to crack. Like we've been working on one for a year now and the latency is, but it's, it's still like, it's, it's like not, it's not good enough that I'd be like, I want to waste money on, you know, leads for it to call. But it's like, maybe it's six months, but that's the one, that's the one that I have my most finger like on the pulse.

• 1:02:42Shaan Puri?

  Yeah, that's great. Yeah, dude, I hired an AI tutor, like basically every week. Cause I'm like, it's a full-time job to keep up with.

• 1:02:49Alex Hormozi?

  No.

• 1:02:49Shaan Puri?

  Vanz's, the use cases, etc. So I said, I'm gonna sit down. I was like, I'm paying $500 an hour.

• 1:02:54Alex Hormozi?

  Yeah.

• 1:02:54Shaan Puri?

  What you're gonna do is you're gonna come with a list of like below my mind point one, below my mind point two, but I get to drive.

• 1:03:01Alex Hormozi?

  Yeah.

• 1:03:01Shaan Puri?

  Right? Cause like you, you set it all up, but then like I get to be caveman.

• 1:03:05Alex Hormozi?

  This is how I learned everything, just so you know. Like, yeah, that's how I learned how to run Facebook ads. I paid a guy $7.15 an hour and I said, just explain to me how you're doing this and then I'll learn it. That's how I learned it.

• 1:03:12Shaan Puri?

  Literally coaches are, like coaches for adults.

• 1:03:15Alex Hormozi?

  Yeah.

• 1:03:15Shaan Puri?

  It's just like, I don't know why, there's maybe an embarrassment factor or like a lack of imagination or creativity. I think this is like massively underrated.

• 1:03:21Alex Hormozi?

  Highest ROI money.

• 1:03:22Shaan Puri?

  Also like the difference, it's just like engineering, right? Like they tell like 10x engineers, there's really like an average coach, a good coach and like the best coaches is these orders of magnitude jumps in how good they are. So the other thing people do get wrong is they just take the first coach that they have versus like. Be really promiscuous and like, you know, go date around and like, go find a coach that will just like rock your world because whether it's fitness or food or whatever. I have like probably six or seven coaches like in rotation right now in my life.

• 1:03:49Alex Hormozi?

  For AI or in general?

• 1:03:50Shaan Puri?

  I have AI, no, just general. I have AI, I have my food girlfriend. She calls me every morning, helps me think about like,

• 1:03:56Alex Hormozi?

  Okay.

• 1:03:56Shaan Puri?

  How am I gonna eat today?

• 1:03:58Alex Hormozi?

  Yeah.

• 1:03:58Shaan Puri?

  And helping me like uproot all my bad habits through that. Uh, I have my personal trainer who does like a very specific like functional training thing that I like and I do. I got a basketball coach. There's people like, are you going, you're not going to the NBA? What are you doing? It's like, well, I love playing basketball. I decided like being better at basketball is

• 1:04:15Alex Hormozi?

  Not sucking?

• 1:04:15Shaan Puri?

  Not, yeah, like this is more fun. It's like, I can go to cardio or I can have like an NBA trainer train me.

• 1:04:20Alex Hormozi?

  Oh, it's awesome.

• 1:04:20Shaan Puri?

  Way better than just doing cardio and, you know, so why would I not do that? So I just have a bunch, but like it's, it's become to the point where it's like comical. It's like,

• 1:04:27Alex Hormozi?

  Yeah.

• 1:04:28Shaan Puri?

  I'm just like looking for an excuse like,

• 1:04:29Alex Hormozi?

  No, but that, I mean,

• 1:04:30Shaan Puri?

  What other coaches can I add to my, piano teachers, everything?

• 1:04:32Alex Hormozi?

  I'm such an advocate of this, um, for anyone who, if we're still even rolling, but, um,

• 1:04:37Shaan Puri?

  They've all left.

• 1:04:37Alex Hormozi?

  They all left, yeah.

• 1:04:38Shaan Puri?

  We're just hanging out here.

• 1:04:39Alex Hormozi?

  No, but like, um, I think the, some of the highest ROI money you can spend is one-on-one tutoring. Like, just like, like every time I really need to learn something, what you said, like, I just, I'm like, I will pay you a huge amount of money to just sit with me and teach me.

• 1:04:52Shaan Puri?

  Which by the way is the killer AI use case, right? It's like, that's gonna be the thing where, once we get it, I forgot what it's called. Have you heard like the Bloom two sigma thing? Basically, there's this long-term studies. People want to fix education. So if rich people fund like,

• 1:05:04Alex Hormozi?

  Yeah.

• 1:05:04Shaan Puri?

  How do we do it? And then they go do the research and they're basically like, the number one way to get like an actual two sigma, which is like the standard deviation jump in outcome is one-on-one tutoring. Problem is, doesn't scale. So we, they wrote it off.

• 1:05:16Alex Hormozi?

  Yeah.

• 1:05:16Shaan Puri?

  So for the last 30 years, we've just been like, well, we know the thing that works.

• 1:05:19Alex Hormozi?

  Yeah.

• 1:05:20Shaan Puri?

  Doesn't really scale and doesn't, you know, can't be affordable. So we'll try all these other things.

• 1:05:24Alex Hormozi?

  Yeah.

• 1:05:25Shaan Puri?

  But it's like, hey, wait a minute.

• 1:05:26Alex Hormozi?

  It's bad.

• 1:05:26Shaan Puri?

  That's now, that's now viable. And so let's see what happens, you know?

• 1:05:29Alex Hormozi?

  Are you in Austin?

• 1:05:30Shaan Puri?

  No, I mean barrier.

• 1:05:31Alex Hormozi?

  You mean the barrier.

• 1:05:32Shaan Puri?

  Alpha school.

• 1:05:33Alex Hormozi?

  Yeah, yeah, because Joe, yeah, so I talked to, I talked to Joe about Alpha School. And, um, I mean, the, the stuff they're doing is wild, but the, the issues that they are encountering has nothing to do with.

• 1:05:43Shaan Puri?

  Education.

• 1:05:43Alex Hormozi?

  Yeah, it's everything to do with policy.

• 1:05:45Shaan Puri?

  Right.

• 1:05:45Alex Hormozi?

  Such a pain, but it's like, okay, two hours a day, we're moving at twice the speed. So that's, that's, so one fourth the time, twice the speed, they're moving at eight times the speed of a normal school and their scores are top 98 percentile. So it's like eight times the speed and the quality metrics there. And then the other six hours of the day is the kid just learns whatever they like. They code apps, they do public speaking, they do budgeting, they learn all these other life skills. And it's just like, God, uh, did you hear, did you see that clip by, um, Alexander, um, Wang? Hopefully I didn't.

• 1:06:17Shaan Puri?

  Scale, Lucile.

• 1:06:18Alex Hormozi?

  Yeah, yeah.

• 1:06:19Shaan Puri?

  Which clip was it? Well, he's like, I don't want, like, I don't want a kid until I'm.

• 1:06:21Alex Hormozi?

  Yeah, until, until it's native. And I was like, man.

• 1:06:24Shaan Puri?

  That was one of the more insane statements I've ever heard.

• 1:06:26Alex Hormozi?

  Yeah.

• 1:06:27Shaan Puri?

  And the good, like, that's the good weird of Silicon Valley is you run into people very.

• 1:06:31Alex Hormozi?

  He's on the edge.

• 1:06:32Shaan Puri?

  Who will say batshit insane stuff with a straight face. And then you're like, wait, am I insane?

• 1:06:36Alex Hormozi?

  Yeah.

• 1:06:36Shaan Puri?

  Or is he insane? I can't tell.

• 1:06:37Alex Hormozi?

  Yeah.

• 1:06:37Shaan Puri?

  He's, he's probably right.

• 1:06:38Alex Hormozi?

  Yeah.

• 1:06:39Shaan Puri?

  But he's crazy.

• 1:06:39Alex Hormozi?

  He has way more context on this, which is what scares. It's like, when you have one of those, it's like, well, you have to know something like, if we have the, the same information, you might be crazy by my standards.

• 1:06:49Shaan Puri?

  Right.

• 1:06:50Alex Hormozi?

  But if I assume that you are intelligent and can make good decisions, then it means you know something I don't know. And so that's what, that's what frightens me from the AI.

• 1:06:56Shaan Puri?

  Or you have different values, but.

• 1:06:57Alex Hormozi?

  Yeah, yeah, yeah, exactly.

• 1:06:58Shaan Puri?

  But like, you know, Peter Thiel had a great, one of the great Peter Thiel, like, sort of insights was when he was, went around and he was like, university is a bubble. And he was basically saying like, you have to look at university as a bundle.

• 1:07:07Alex Hormozi?

  Yeah.

• 1:07:08Shaan Puri?

  Education, great, sure, 10%.

• 1:07:10Alex Hormozi?

  Yeah.

• 1:07:10Shaan Puri?

  You know, babysitting, uh, you know, you know, maturation, maturation of 18 to 22 year olds is what, what's there? Social, there's a insurance policy for parents where you're like, I don't know, just go to college.

• 1:07:20Alex Hormozi?

  Get a stand.

• 1:07:21Shaan Puri?

  I feel like that's what I needed to do for you. And there's like a filtering thing, which is like, well, we trust that Harvard filters you, so we, yeah, we'll just trust their filtering process.

• 1:07:29Alex Hormozi?

  Yeah.

• 1:07:30Shaan Puri?

  So like, college does all these different jobs.

• 1:07:32Alex Hormozi?

  Yeah.

• 1:07:32Shaan Puri?

  And his take was basically like. If you want to disrupt it, you don't just disrupt the whole thing. You have to unbundle the bundle and figure out what to do. And so like, I feel like this is just such a common business thing, which is like, "Oh, healthcare sucks," or "this sucks." It's like, "Yeah, it sucks. Cool." But until you've realized that that thing is actually a bundle,

• 1:07:48Alex Hormozi?

  Yeah.

• 1:07:49Shaan Puri?

  You really have no shot at like upending it in any way, right? You've got to take one part of that bundle and just 10x that.

• 1:07:54Alex Hormozi?

  Yeah.

• 1:07:55Shaan Puri?

  And figure out a way where the other stuff doesn't apply to you because you didn't promise that. And if you could do all that, like, it works, you know?

• 1:08:00Alex Hormozi?

  Yeah.

• 1:08:00Shaan Puri?

  Like, you know, the way I think about what you do is you're a teacher on YouTube, which is not a surprise to you, but like, people think of YouTube as like either A, social media, okay, maybe another, it's just content, it's entertainment. Right, but like, dude, I got little kids. Ms. Rachel is the best preschool teacher in the world.

• 1:08:15Alex Hormozi?

  Yeah.

• 1:08:16Shaan Puri?

  She has 34 million preschool students.

• 1:08:18Alex Hormozi?

  Yeah.

• 1:08:18Shaan Puri?

  Who watch her on her app. Great, like that, she is the best teacher, therefore she should get this huge outsized number of students.

• 1:08:25Alex Hormozi?

  Totally.

• 1:08:26Shaan Puri?

  And like Khan Academy was a great teacher. You know, you're a great business teacher. Like, I literally look at YouTube like it's a high school. There's just classes to offer. Like, I can go to David Stern and get the history of entrepreneurship. That's an elective I decided to take.

• 1:08:37Alex Hormozi?

  Totally.

• 1:08:38Shaan Puri?

  And like, you're basically like Business 101 or Business whatever, you know, Business Fundamentals.

• 1:08:42Alex Hormozi?

  Yeah.

• 1:08:42Shaan Puri?

  Um, and it's like, great, I can go take Business Fundamentals with my professor, you know, Hermosy. And like, I think when you start to look at YouTube, there's also a bundle of music and entertainment and education, then you start to think about how I might use it differently than the average person, right? Because like, both you and I probably wish we started on YouTube 10 years earlier.

• 1:08:57Alex Hormozi?

  Yeah.

• 1:08:58Shaan Puri?

  Uh, and it was the people who saw YouTube as more than what others saw it that actually got that advantage.

• 1:09:03Alex Hormozi?

  Yeah. No, I think that's really good. Yeah, I think that it reminds me of the Volk quote that I like a lot, which is "Technology democratizes consumption and consolidates production." And so it's like, which means if you're the best in the world, you get to do it for everybody.

• 1:09:14Shaan Puri?

  Right.

• 1:09:15Alex Hormozi?

  And so, yeah, I actually, I think about that a lot when we talk about our channel, which is like, how do we, how do we just make this the best business content, you know, possible? Um, and that's, I mean, that's the whole goal. It's like, if we just keep doing that, then we'll be okay.

• 1:09:28Shaan Puri?

  Yeah, I think you're doing a pretty damn good job of it.

• 1:09:30Alex Hormozi?

  I appreciate it.

• 1:09:31Shaan Puri?

  The hard part is, is, uh, I'm curious how you do this. Because at one point in time, I think I even talked about this on the podcast. I was like, I think he's great and smart, but then the problem with YouTube, because the goddamn views are public.

• 1:09:42Alex Hormozi?

  Yeah.

• 1:09:43Shaan Puri?

  Is they gave you an outer scorecard to use.

• 1:09:45Alex Hormozi?

  Yeah.

• 1:09:45Shaan Puri?

  That may not be the one you want, right?

• 1:09:47Alex Hormozi?

  No, totally.

• 1:09:48Shaan Puri?

  And I remember once I looked at your channel and it was like, if you're broke, do this.

• 1:09:51Alex Hormozi?

  Yeah, yeah, yeah.

• 1:09:51Shaan Puri?

  If you don't have enough money for Chipotle, do this. And I was like, dude, he's just gonna attract broke people.

• 1:09:55Alex Hormozi?

  Yeah, yeah, yeah.

• 1:09:56Shaan Puri?

  That's the opposite of what he kind of like wants.

• 1:09:58Alex Hormozi?

  No, a hundred percent.

• 1:09:58Shaan Puri?

  Or like, it's easy to optimize, because guess what? There's more broke people who are more desperate that are on YouTube with a bunch of time to kill. You're gonna get 2 million views on the Broke Guy video.

• 1:10:05Alex Hormozi?

  Yeah.

• 1:10:06Shaan Puri?

  But like, I'm never gonna click that. And you probably want some people like me clicking some of your content.

• 1:10:10Alex Hormozi?

  Totally.

• 1:10:10Shaan Puri?

  And so like, I think that's the challenge with YouTube overall. It's like, if you take their metrics as your metrics, you might have a big problem.

• 1:10:17Alex Hormozi?

  It's a hundred percent. It's a, so yeah, it's a thousand percent a problem. Um, and we, it's like, we just, we put as many controls in place as we can, and it's still tough. And so right now, here's where it gets like, let's peel a layer back.

• 1:10:29Shaan Puri?

  Yeah.

• 1:10:30Alex Hormozi?

  So where it gets really interesting is that if I make six videos, this is our actual cadence. Five of them, I want to be business first, business deep, whatever we wanna call it. And then one out of six, I say, I'm okay to just like, make it wide. Brutally honest truth about whatever, right? That one video will get more views than the other five together. And so then, how much does that actually weight the brand? So even if I actually think about my input.

• 1:10:56Shaan Puri?

  Production versus consumption.

• 1:10:57Alex Hormozi?

  Right, so if I actually put my inputs, like, I might have a 50% philosophy brand, and 50% or you know, motivation, whatever you wanna call it, right? Like mindset, et cetera. And then 50% business-y, but in terms of my production, it's 90% of my time is business. It just like, doesn't get the reach. And so it's actually one of the things that frustrates me in some ways, cuz like, if I, like, if I get stopped on the street, I'm always curious, like, what was the, you know, what was the thing? And so, but like, business owners, for me, cuz like, I see the people walking the door, and you have to be at a certain level to walk in there anyways, is like, they are more, more listening and reading. In general, and like we have the, we have a whole series we do called Cash Gals, which is kind of like what we did with the Hormozia Hotline.

• 1:11:39Alex Hormozi?

  But I have them in person and then I do the whole, the whole thing and it's like an hour. And those ones right now average like 150,000, maybe 200,000 views per video. But like a brutally honest million, like it's just like, I could do like, we could, we could do it right now. And like, I know, like, I know exactly what we're gonna say. But the, but when I ask who here likes those who shows up, they're like, please keep making those.

• 1:12:05Shaan Puri?

  Right.

• 1:12:05Alex Hormozi?

  And so I have, I keep asking them just because I need the reinforcement.

• 1:12:08Shaan Puri?

  Yeah, of course. No, because you need an inner scorecard.

• 1:12:10Alex Hormozi?

  No, I need something.

• 1:12:11Shaan Puri?

  The outer scorecard is only gonna tell you one thing. So you have to like instrument, like an antenna yourself to get the signal that you're actually looking for. In a way that's not necessarily biased, but if I don't put up an antenna, there is no generic antenna for this, you know, like.

• 1:12:23Alex Hormozi?

  Also a little, a little tiny thing that maybe, maybe helpful, useful. But we actually just this quarter switched our metric. So we used views as basically the way that I did it before was like, we will make content about these topics. And then as long as they're within these topics, then we maximize views. So that's the, that's the constraint and then maximize within that constraint. We have now switched to subscriber count, subscriber growth, even though subscribers matter zero.

• 1:12:46Shaan Puri?

  Right.

• 1:12:46Alex Hormozi?

  It's just, yeah, it doesn't matter for distribution, but it's a great quality.

• 1:12:49Shaan Puri?

  It's a signal of loyalty, yeah.

• 1:12:49Alex Hormozi?

  Exactly. It's a quality score of like, I thought this was valuable enough that, so now I can still do the same constraints on, on the content, but then use the subscriber because that gives us the, because subscriber still has baked into it some element of reach. But if you, if I make a brutally honest video, I'm not gonna get the same amount of subscribers I am as like 13 years of business advice. Like one of my best videos ever. That's, but hardcore business. So anyway, just something that we've switched to just this quarter.

• 1:13:15Shaan Puri?

  I, I can't figure, so I, I basically figured out what do I want, which I can't measure. So first was what do I want? I was basically like, I created a, like, you know, you know, in popularity, they have the Q score.

• 1:13:27Alex Hormozi?

  Okay.

• 1:13:27Shaan Puri?

  So I basically was like, give me the Z score. What's the Z score? A Z score for me is a trust score. So I was like, all right. Probably should have been a T score, but I think about it, but it was the Z score, which is basically, I realized that all content, what you actually want is number of people reached, times the quality of the person reached, times the depth of their trust in you.

• 1:13:44Alex Hormozi?

  Sure.

• 1:13:45Shaan Puri?

  And basically, that's the equation you ultimately care about. So like, you can reach a lot of people on TikTok, but if they're just like, you know, if they're not the people you're trying to do.

• 1:13:52Alex Hormozi?

  Like, dobby.

• 1:13:54Shaan Puri?

  Yeah, exactly. You know, it's, you have to discount factor because you're not, your second variable is not very good. And then the third, which is like, how much do they actually trust you? Not like, they watched that piece of content, or they liked that thing, or they hate watched it. And you're like, yeah, I got views, but like, actually, they're like, this guy's an idiot, or like, and I hate this guy, right? So, that's, that's what I wish existed. Now, that's never gonna exist. So I had to back channel it, and basically a shame metric. So I said, if, if I make a thing, do I want to go put it in my favorite group chats? Me, myself, being like, I made this, guys. Because there's a lot of shit I make that can get, that's popular, that I would cringe putting it there. Because they'd be like, bro, what the fuck is this?

• 1:14:30Alex Hormozi?

  That's a great, that's a great bar.

• 1:14:32Shaan Puri?

  We don't need this or care about this. Like, what is this for? Why did you put this here? Versus other things. Like, I did this one thing that went nowhere virally. I did this, like, I spent like two months just studying the process of creativity.

• 1:14:43Alex Hormozi?

  Yeah.

• 1:14:43Shaan Puri?

  I recently realized with AI is like productivity values going down and creativity values going up. So I was like, how do the most creative people in the world work? I've studied Elon and all those guys, but I actually have no idea how, you know, Seikah and Vekaso and all these other guys, how they operate. So I studied that, I put it together, and I put it out there. Again, went nowhere, kaput. But I like internalized these lessons deeply, so it was still a win. But that was the one where if I put it in my group chats,

• 1:15:07Alex Hormozi?

  Yeah.

• 1:15:08Shaan Puri?

  my most successful peers were actually like, dude, this is actually sick. Like, I actually have, I didn't know this, I took this, I needed this, blah, blah, blah. So I've had to use basically like my own cringe factor of like, do I want to put this in there? Or would I feel like kind of stupid doing that? Would I, would I feel like I need to soften it with some context and some excuses to put it in?

• 1:15:29Alex Hormozi?

  Yeah, that's, um, I think, I mean, I think what you hit on is like, such a painful part of, of creating content is that the entire, the reinforcement system. Leads you away from the actual business goal. I mean, if you do this for business, which I do, like, it leads you away from your business goal, which makes it very, you just have to have a lot of discipline of like, this is the stuff I'm going to make and it will underperform and that is okay. And it gets harder when you know how to make the stuff that really hits. From a views and all that stuff perspective.

• 1:15:58Shaan Puri?

  The more you know.

• 1:15:59Alex Hormozi?

  Yeah, yeah, I mean, but you know, I mean, this has been, it's probably one of the largest focal points that we have for our brand and I feel like it's in a accordion. It's like, you know, if we do just hardcore hardcore business content and then we'll be like, all right, let's make a little bit of personality stuff. Let's show a little bit and then it's like, oh, that did great. And then we're like, oh, fuck, we're way too wide. And then like, so I think we just kind of oscillate.

• 1:16:22Shaan Puri?

  One thing I wish you did more of, just my personal request was that you did something, it was like a short or something. I don't know who made this, somebody in this room might have made this, but it was like, you were just talking about your figure you wear, you're talking about your shoes.

• 1:16:34Alex Hormozi?

  Yeah, right.

• 1:16:35Shaan Puri?

  And I bought those shoes and so, yeah, you hold your Darwin outfit. You're like, I can wear this in the rain and in the pool. And then I can get out of the pool, go to a restaurant and it works. I can go for a hike tomorrow. And, you know, I think that's great because first of all, first of all, I didn't feel like I'm trying to be the Kardashian, so it didn't feel like you were trying to show me something.

• 1:16:52Alex Hormozi?

  Yeah, yeah, yeah.

• 1:16:53Shaan Puri?

  It was just like, oh, you want to know like something I do in my life? Here's something I do in my life.

• 1:16:56Alex Hormozi?

  Yeah.

• 1:16:56Shaan Puri?

  What I thought was interesting about that was, A, it was a good find. You'd actually put real like your own nerdiness into like doing something for your own lifestyle. So it was like, it meant something. But B, every time I wear those shoes,

• 1:17:09Alex Hormozi?

  Yeah.

• 1:17:09Shaan Puri?

  I think of you.

• 1:17:10Alex Hormozi?

  Oh.

• 1:17:10Shaan Puri?

  And there's something to physical anchors in a digital world that like actually matters.

• 1:17:14Alex Hormozi?

  I'm a huge believer in that.

• 1:17:15Shaan Puri?

  Yeah.

• 1:17:15Alex Hormozi?

  Side note, like huge.

• 1:17:16Shaan Puri?

  So I think this is like a little sauce there. And I think the other part of it was, I like made a mission for the year, like a Masogi for the year. And like, I thought it was like, it should have been about, you know, business or like getting in great shape or whatever. But when it was like, oh, I know what I want to do. I was like, I want to learn to jam out on the piano. I was like, and so I just made that my mission and I took it like incredibly seriously and like had a great time doing it. And so just yesterday, I just turn on, I just turned on a live stream on Twitter. I was like, I think they have this feature. I just live streaming myself doing like a piano practice, not even like a performance. I was just like fucking around like trying to learn these songs. I'm not good. I've been doing it six months. Dude, I got so many DMs from like, again, the same thing, like the people who I don't want to send my content to, because I'm like, you're a billionaire. What do you? How to get rich.

• 1:17:57Alex Hormozi?

  Yeah, right.

• 1:17:58Shaan Puri?

  From a guy ten times less rich than you.

• 1:17:59Alex Hormozi?

  Yeah.

• 1:18:00Shaan Puri?

  But I got them being like, dude, I've been wanting to practice. I love how you made time for this. Which one did you get? What room is that? Who's that teacher? How'd you find her? Do you think a teacher is better than the apps? And I got so many of those. That was like, there's something to the lifestyle content when it's really like.

• 1:18:14Alex Hormozi?

  I can talk about gym equipment, for example. Like you can probably see that I like, I'll light up when I talk about it.

• 1:18:18Shaan Puri?

  Exactly. If it genuinely lights you up and it shows, it's like for other successful people who I don't like, I've read all the books now. I don't really need a lot of like, how to grow my business. I'm actually pretty good at that.

• 1:18:28Alex Hormozi?

  Sure.

• 1:18:29Shaan Puri?

  And so like, one cool way I thought your lifestyle stuff worked was, it attracted me to that where I probably wouldn't watch like 10 of the other videos, but that one I was like, kind of interested in.

• 1:18:37Alex Hormozi?

  Really interested.

• 1:18:37Shaan Puri?

  From a different angle. And I think you kind of turned this bigot off on that, I noticed. Uh, but like, my personal request is give me 10% of that back.

• 1:18:44Alex Hormozi?

  Yeah. So this is the, the dichotomy that has to be managed, which is the, the, the thumbprint of the creator, in my opinion, should be the representation of their current life, which means it can change, right? And so it's like, I spend, maybe it's like, 10% of my time is fitness oriented. And so like, maybe 10% of my content should be fitness oriented. And then probably 80% of my time is business oriented, then maybe 10% of my time is philosophical and maybe five, and this is now 105, but, uh, is, is relationship, whatever, right? And so it's like, that, that's my mix. And maybe in a different season, it'll change. And so, the content should be, I was thinking it was like, should be glass. It should be like, when someone meets me, it's exactly as they expected.

• 1:19:20Shaan Puri?

  Presentation, yeah.

• 1:19:21Alex Hormozi?

  The only thing that fucks that whole thing up is the algorithm.

• 1:19:23Shaan Puri?

  Yeah.

• 1:19:24Alex Hormozi?

  Because I can absolutely make that, that, that thumbprint. It's just that this one will get 10 times the views. And so then if you're trying to manage the mosaic of your brand with all the little, all the little shorts as tiny little squares, it's just that you can't control how big the square is in the middle of the fucking face that you're trying to build. So.

• 1:19:43Shaan Puri?

  That makes sense, but that's what I'm saying. Like those, that thing about your shoes didn't get a lot of views, but it made an imprint on me.

• 1:19:48Alex Hormozi?

  Yeah.

• 1:19:48Shaan Puri?

  I would say like, I would carry more weight than like, I would say a thousand random views. Tim Ferriss said this once. He's like, Do I want 10,000 random people selected at random somewhere in the world to like my stuff? Or half of Davos to be like, to really respect what I do? It's like, one's a big number, one's a big, one's big value, right? Like, which one do I want? I think there's something similar there. And also, like, you know, you were talking about like, they have different wallets or different stomachs?

• 1:20:13Alex Hormozi?

  Oh, yeah.

• 1:20:13Shaan Puri?

  It's like, I only have a certain wallet or stomach for like, educational, business content, me reminding myself, I need to do more at work.

• 1:20:20Alex Hormozi?

  Yeah.

• 1:20:21Shaan Puri?

  Right? But I actually have other wallet share to give you on another area. My fitness wallet share, you could get some of that. You could get some of my outfit wallet share or my relationship wallet share as an entrepreneur dealing with, you know, busy but relationships, right? Like, so think of it maybe with your own analogy.

• 1:20:36Alex Hormozi?

  Yeah, no, I really like that. That's, I mean, it's always, I, we need to be reminded more than we need to be taught.

• 1:20:42Shaan Puri?

  Yeah.

• 1:20:42Alex Hormozi?

  So I'm with it.

• 1:20:43Shaan Puri?

  All right, we should, we should cut it.

• 1:20:45Alex Hormozi?

  Appreciate you. Thanks for, thanks for having, thanks dudes.

• 1:20:59Sam Parr?

  My friends, if you like MFM, then you're gonna like the following podcast. It's called Billion Dollar Moves. And of course, it's brought to you by the HubSpot Podcast Network, the number one audio destination for business professionals. Billion Dollar Moves, it's hosted by Sarah Chen Spelling. Sarah is a venture capitalist and strategist. And with Billion Dollar Moves, she wants to look at unicorn founders and funders, and she looks for what she calls the unexpected leader. Many of them were underestimated long before they became huge and successful and iconic. She does it with unfiltered conversations about success, failure, fear, courage, and all that great stuff. So again, if you like My First Million, check out Billion Dollar Moves. It's brought to you by the HubSpot Podcast Network. Again, Billion Dollar Moves. All right, back to the episode.