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The Man That Makes Millionaires: How To Turn $1,000 Into $100 Million!: Alex Hormozi | E235

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The Man That Makes Millionaires: How To Turn $1,000 Into $100 Million!: Alex Hormozi | E235

Transcript

3319 segments

0:00

I'm going to say some stuff that's going

0:00

to bother some people people who are

0:02

listening to this and are not making as

0:03

much money as they want they have to Mr

0:05

Alex Heros the100 Million Man ult

0:08

preneur investor and philanthropist

0:10

taking the Internet by storm this guy

0:12

really really does understand how to

0:13

build a business I was 22 I had done

0:17

everything that my dad had wanted me to

0:18

do and I was looking out from the condo

0:20

that I had been able to buy with this

0:21

job that I had and um I always hoped I

0:23

wouldn't wake up the next day I cherish

0:25

the fact that it was so miserable that

0:27

it got me to change pain motivates sign

0:30

iFly faster and stronger than pleasure

0:31

does if you are angry use it if you are

0:34

sad use it or it uses you I didn't know

0:37

whether I would succeed but I did know I

0:39

wasn't going to stop right around that

0:40

point is when I met my wife and then she

0:42

just changed my life how did she change

0:43

you

0:48

like didn't think we were going to go

0:50

here

0:51

um she just she believed in

0:54

me she stood tall when everything in my

0:57

life was crumbling around me I was like

0:59

dead broke in her parents house and I

1:02

was like I I think you should leave

1:05

me she pulled my chin towards her and

1:07

she was like I would sleep with you

1:09

under a bridge if it came to

1:12

that 6 months later I have $3 million in

1:14

the bank account all of that was the

1:16

first N9 months of our relationship for

1:19

have that kind of belief was was

1:22

very it was deep for

1:25

me and I think that's what most guys

1:27

want truly

1:32

what makes a really good entrepreneur

1:35

leer I'll answerer this differently than

1:36

I have in the past and I'm going to tell

1:38

a story that hopefully people don't take

1:39

the wrong way but I had a

1:42

cat before this episode starts I have a

1:44

small favor to ask from you two months

1:47

ago 74% of people that watched this

1:49

channel didn't subscribe we're now down

1:51

to

1:52

69% my goal is 50% so if you've ever

1:56

liked any of the videos we've posted if

1:57

you like this channel can you do me a

1:59

quick favor hit the Subscribe button it

2:01

helps this channnel more than you know

2:02

and the bigger the channel gets as

2:03

you've seen the bigger the guests get

2:06

thank you and enjoy this

2:07

[Music]

2:14

episode

2:17

Alex I spend several hours consuming all

2:21

of your content across multiple channels

2:24

what is the aim what is the mission what

2:27

is the the intent

2:30

if you were to try and summarize the

2:32

content you're producing and the value

2:34

you're trying to add and to who are you

2:36

trying to add it

2:37

to to make business accessible for

2:41

everyone that was the mission of the

2:43

company and so our whole idea

2:46

was we'll put everything out there uh

2:49

for free so no pay walls so there's like

2:52

we have courses on the site the books I

2:54

have for 99 cents um so that anyone can

2:56

get them and you know we'll continue to

2:58

produce as much as we can

3:00

and we share the learnings that we have

3:03

from our portfolio companies in order to

3:05

keep the stuff that we are putting out

3:06

there relevant new fresh Cutting Edge

3:08

because this is what's working today and

3:11

by doing that it also brings other

3:14

companies to us because they get value

3:15

from the stuff and our goal is always to

3:17

hopefully provide more value to a

3:20

company before they've ever spoken to us

3:22

um like kind of pay for ourselves as in

3:24

advance is kind of like the thought

3:25

process even though we're buying in um

3:28

and that's that was kind of the thesis

3:29

when we started it I didn't know if it

3:31

was going to work uh but it seems to

3:33

have gone pretty well uh and it was just

3:35

kind of just like if we just give and

3:37

keep giving and keep giving we just

3:39

focus on the value and delivering to the

3:41

audience um it'll come back eventually

3:45

what are you giving them and who are you

3:46

giving it

3:47

to entrepreneurs at all stages um we've

3:51

surveyed the audience 25% of the

3:52

audience uh has a business 75% does not

3:55

have a business but wants to start a

3:56

business and so that's just kind of

3:57

overall um and then within that 25% then

3:59

it just kind of categories all the way

4:01

up to you know business is doing 100

4:02

million plus a year and so it's everyone

4:05

and so we try and our one of the things

4:07

that we talk about is like going wide

4:08

and deep it's like how can we figure

4:10

something that is relevant to somebody

4:12

who's you know launching their first

4:13

product and also make it accessible or

4:15

interesting to somebody who's launching

4:17

a new product line within a division of

4:20

their conglomerate right I'm just trying

4:21

to think about both people at the same

4:23

time which becomes more challenging but

4:24

it's also kind of fun it's kind of like

4:26

a funnel isn't it in some respects um

4:29

that's EX exctly what I saw from your

4:30

content you're you're making great

4:32

content that's helping people that are

4:34

at the start of their Journey or you

4:36

know 100 employees deep into their

4:38

Journey trying to figure out how to

4:39

scale you're making content that's

4:42

bringing down some of the barriers

4:44

whether psychological or practical to

4:45

enable them to reach whatever dream they

4:47

have let's go way Upstream

4:50

then what do I need to know about you to

4:52

understand the life you've LED take me

4:55

way back to your childhood in the early

4:57

context both parents are IM immigrants

5:00

to the US uh mother was born in France

5:02

came here father was born in Iran um

5:05

they met in medical school in Europe uh

5:08

and then my mother brought him back with

5:10

her to the US and then uh they had me

5:15

and uh they split my mom had a lot of

5:18

demons she had a lot of things she

5:19

struggled with when I was coming up so I

5:21

pretty much was raised by my dad uh had

5:23

no siblings it was just me and my dad

5:24

for until I was about 15 um he got

5:28

remarried it was a short s in terms of

5:31

uh how long I was like kind of in the

5:32

house you know like right at that stage

5:33

just when you can drive and I was kind

5:35

of on my own almost at that point um as

5:37

soon as I could work and drive I was

5:38

kind of out of the house um and then

5:40

from

5:43

there did the thing that most people try

5:45

and do which is uh I I I worked hard at

5:47

school mostly because I just didn't want

5:48

my dad to be upset with me which was uh

5:51

the main driver for most of my

5:52

achievement in my career for the first

5:55

half um was all just trying to gain his

5:57

approval um did all the things that I

6:00

thought he would want me to uh got a job

6:04

at a Government Contracting uh

6:06

consulting firm a defense Contracting it

6:08

was space cyber and ISR uh so it's

6:10

intelligence surveillance and

6:11

reconnaissance uh for the military

6:13

sounded really cool was less cool when

6:17

you were in it um and I was very very

6:19

sad um at that point in my life and so

6:22

it was very much like I didn't I always

6:24

hoped I wouldn't wake up the next day um

6:27

and it truly you really mean that

6:31

100% 100% because I remember when I was

6:34

looking at um a lot of people have like

6:36

rock top moments sorry Rock Bottom

6:38

moments I think I had more of a rock top

6:40

moment which was um I was

6:44

22 I had done everything that my dad had

6:47

wanted me to do at this point I was

6:48

looking out from the condo that i' had

6:50

been able to buy with this job that I

6:51

had and um I was like is this it in the

6:55

whole time I just really didn't enjoy my

6:57

life um and it was just you know not

7:01

wanting to wake up and it

7:07

was the the decision

7:09

to leave Baltimore which is where I was

7:12

from to quit that path to decide to

7:15

start a business of my own was still to

7:19

this day the hardest thing I've ever

7:20

done by far all the things we've been

7:22

through to to build what we have the

7:24

hardest decision was taking the leap for

7:26

me uh and it was because like I knew

7:28

that my dad

7:30

so much wanted me to do what I was doing

7:32

because he was so happy that I was doing

7:34

everything he wanted me to do at that

7:36

point and I had told him over and over

7:38

again that I wanted to do this other

7:39

stuff and he's like yeah like later you

7:42

know later um and so I knew that it

7:45

would probably put a big dent in our

7:48

relationship um if I left but for me it

7:51

was actually confronting the fact that I

7:54

didn't want to be alive anymore which

7:56

was the thing that gave me enough

7:58

courage or whatever you want to call it

7:59

to actually make the decision to leave

8:02

home and so I started driving across the

8:04

country I mean it took me six months to

8:06

do this like when I between when I

8:08

decided I really wanted to do this and

8:10

when I actually did it took me six

8:11

months and I called him when I was like

8:13

halfway across the United States and I

8:14

was like I'm going to California I'm

8:17

gonna open a gym I'm going to get into

8:19

fitness and he was like why are you so

8:21

extreme and he like lost it and then we

8:22

didn't really talk much for a long time

8:25

when you

8:27

started realizing that your life

8:30

um was one where you didn't want to wake

8:32

up in the morning when you had that job

8:35

in management consultancy MH did you

8:38

experience suicidal ideation is that

8:40

what you're saying when you say I don't

8:41

want I didn't want to wake up into my

8:42

life every day it was never like I've

8:44

never had a like this is how I would

8:45

kill myself nope never had that I just

8:47

always like the idea that I could not

8:50

wake up the next day sounded

8:53

good when you look back in hindsight

8:56

from that moment backwards what are the

8:58

series of decisions or the the the

9:00

things that led you to find yourself in

9:01

the position and I asked that because

9:03

there's a lot of people that can

9:04

probably

9:05

relate and and there's probably quite a

9:09

consistent set of frog pads or stones

9:13

that one has Walken down for whatever

9:15

reason that leads you to a position

9:16

where you go what the [ __ ] whose life is

9:20

this I think the like the on line

9:22

summary for me was that like I felt like

9:24

I had to let my dad's dream die for mine

9:26

to live and I felt like my entire life

9:29

it had always up to that point had been

9:30

like go to the school do these studies

9:33

you I mean it's it's a common thing like

9:35

it's not like I had something that a lot

9:36

of people don't have many people and to

9:38

be fair I'm very grateful for the skills

9:40

discipline Etc that that instilled in me

9:43

um because I think you you you have the

9:45

the hard hand of an authoritarian um

9:47

parent when you're growing up and it

9:49

teaches you a lot of skills and then you

9:51

know the flip side is if you have a very

9:53

less aair parent like you never learn

9:54

those skills which then benefit you

9:55

later so you know who knows um but for

9:59

for me

10:01

um I knew that he just wanted me to be a

10:03

doctor that's what he was that would

10:05

have been his dream I went to school as

10:07

Premed um and then I I was like even

10:10

changing my degree from Premed to just a

10:12

business degree was like a huge deal um

10:15

but he was okay with that as long as I

10:16

followed like the business path and so

10:19

when I did my two years of consulting

10:20

which is kind of the typical like two to

10:22

four years you do Consulting and then

10:23

you apply to go to business school

10:26

um when I was going through that process

10:28

I was answering the question for like

10:30

the Harvard NBA and he was like how will

10:32

Harvard NBA help you shorten long-term

10:33

goals and I sat there for like two days

10:36

trying to answer the question and I was

10:37

like it just isn't I want to start a

10:39

business and so that was when I kept

10:41

trying to you know start that

10:42

conversation with my dad and it just

10:44

wasn't really happening um and so that's

10:46

what that was kind of the breaking point

10:47

for me was like I just felt terrible

10:49

about my life and I didn't didn't like

10:51

the way it was going

10:52

and I for me it was such a key point

10:55

because the biggest line of reasoning I

10:57

had for myself in order to convince

10:58

myself to in front my father or at least

11:00

disappoint my father or the version of

11:01

myself that he wanted me to be was to

11:03

say that like I have to be comfortable

11:05

dying in his

11:06

eyes and a lot of people

11:08

like and many people might think that is

11:10

hyperbole but for me it was very true

11:12

like I I knew that I would die in his

11:14

eyes and I

11:16

did um to give you

11:19

context so I had the gyms and I opened

11:22

up multiple after that got to about six

11:24

locations sold those started a gym

11:26

turnaround business did that for 2 years

11:29

um

11:30

all the while we weren't really in you

11:31

know we were like okay in touch um and

11:34

then we started the licensing business

11:36

which is gym launch and that's the one

11:38

that like really took off and we hadn't

11:41

been super in touch and I get a call out

11:43

of the blue and he wasn't like a cold

11:45

call you know what I mean I was like

11:46

this is weird so I pick up the phone and

11:50

he's like you're going to want to sit

11:51

down for this and I was

11:53

like okay uh what's up I was thinking

11:55

like cancer you know I mean I'm just

11:57

like what what is it going to be he was

11:59

like like I'm sorry and I was like for

12:02

what he was like you know everything I

12:06

was like

12:09

okay and I was very angry still because

12:13

and this is what I told him so I was

12:14

like like you know that point when

12:17

people like get on stage and they accept

12:18

the awards and mind you at this point I

12:20

think we're do we're probably taking

12:21

home one and a half million a month you

12:24

know what I mean and take home like

12:25

personal income from the license it was

12:27

it was a decent like a I'm not you know

12:29

conglomerate like probably but it was

12:31

decent sized

12:32

business and I was like you know when

12:35

people get on stage and they accept

12:36

awards for things I was like the first

12:37

thing they always say is like hey I just

12:39

want to thank my mom and dad for always

12:40

believing in me and I was like I'm not

12:42

going to say that I was like because you

12:44

didn't I was like you're only saying

12:46

this now once everyone believed because

12:49

it's not belief anymore it's fact it's

12:51

evidence I was like so you're I was like

12:53

this apology means nothing to me

12:57

and besides that I stopped caring what

12:59

you thought 6 years ago which is why I

13:02

left and so I had like that's like I I

13:06

could have just accepted it and I and I

13:08

I didn't do that um how' you feel about

13:11

that I probably like today I probably

13:13

would have just said thanks I appreciate

13:15

it I know where he was trying I he was

13:17

trying to extend an olive branch um and

13:19

I just wasn't there I was still seething

13:21

I was still very angry that I had not

13:23

gotten any support during that process

13:25

and maybe that was very woe as me um but

13:28

I was still very very angry at that

13:30

point and you know to give also a little

13:32

bit of context you know his response to

13:34

that was like well we'll see how long it

13:36

lasts you're joking no so like my father

13:39

and I like he is a very strong

13:41

personality and so do I and we both

13:44

think we're right are you angry about it

13:46

now honestly no I mean like I think I

13:50

can still feel the emotions but I feel

13:54

like I've you know thought about it

13:55

enough to say that I can logically say I

13:57

think he absolutely did the best he

13:58

could what he had he's a single dad

14:02

another country raising a kid trying to

14:05

get that kid to fit in and do the things

14:06

that like one of the things that I think

14:08

my dad always wanted me to be able to do

14:09

is like because he's darker skinned than

14:11

I am he's Middle Eastern um he always

14:14

wanted me to like have access to like

14:16

the back rooms where like deals were

14:18

made that he felt like he wasn't a part

14:20

of and

14:22

so he just wanted me to have that and so

14:25

I think he just drove me as much as he

14:26

could to to get that it's just like when

14:28

you're on the other side of it like all

14:31

you feel is never

14:33

succeeding but I can appreciate it now

14:35

in retrospect um but it definitely was

14:38

still it hardened me a

14:42

lot but that hardness I think has has

14:45

benefit me a lot in business I had

14:47

someone on the podcast say a quote which

14:48

I've never managed to forget they said

14:50

you've got to realize that everybody you

14:54

encounter everybody that does you wrong

14:55

if you were them and you had been

14:57

through what they've been through and

14:58

you had their brain you'd be doing the

15:00

exact same thing yeah and it sound it's

15:02

obvious on one hand but it's also very

15:04

kind of Illuminating that think about

15:06

the person that's wrong you the most if

15:07

you've been through their shoes and you

15:08

had their genetics you'd be doing the

15:10

exact same thing doesn't mean you have

15:12

to let them off but at least evoke some

15:15

empathy if you heard um you cannot both

15:18

hate and understand someone at the same

15:19

time

15:21

true like if you truly understand

15:23

someone then you can't hate them because

15:25

you understand why like a lot of times

15:26

the hate is from the unknown and not

15:28

like because you hate because I mean you

15:30

almost say you're like how could like

15:32

it's it's literally a statement of not

15:34

understanding like how could you if you

15:37

understood then you would know how and

15:38

that resentment is a byproduct of just

15:40

not understanding as well I was just

15:41

thinking about resentment that I've had

15:43

in my life when I think someone's wrong

15:44

me that sense of Injustice you're right

15:47

how could yeah how dare you did you ever

15:51

manage to get your fuel to burn less

15:53

dirty are you burning less dirty now

15:55

yeah I think so you think so yeah I

15:57

think so I my my team tells me um that

15:59

that's true and if you look at like

16:01

because I do have some older videos that

16:03

I made from like you know years ago um

16:06

and there's definitely a different

16:08

vibe I'm I'm significantly friendlier

16:11

now than I was then um I me even the way

16:14

I interacted with customers and you know

16:15

the team was like purely fear driven

16:18

like I was absolutely because I didn't

16:20

understand influence as well yet um so

16:23

only only the stick I had was like if I

16:25

if people are afraid of me then they

16:27

will immediately comply

16:29

and it's effective for short durations

16:31

but not for long durations um and but I

16:34

didn't know any better at the time and

16:36

then I slow that's when I you know right

16:37

around that point is when I met my wife

16:38

and then she just you know changed my

16:40

life um and she started running all the

16:43

businesses and I'd see her and everyone

16:44

loved her and I was like man should do

16:47

more more of that stuff and less of my

16:48

stuff um she changed your life oh yeah

16:53

for sure far not I mean she's

16:57

like the best

17:00

how did she change you she has brought

17:02

out the absolute best in

17:04

me like in in just about every way

17:12

like didn't think we were going to go

17:14

here

17:15

um she just she believed in me

17:29

and I think that's what most guys want

17:31

truly at least for me that's what I

17:35

want or

17:39

needed I'll tell you a story to

17:41

illustrate it

17:43

so we

17:45

met talk for four hours on the first

17:47

date only about

17:49

business because that's all I wanted to

17:51

talk about and I pitched her on working

17:53

for me I was like quit your job work for

17:54

me and she was like I just met you

17:57

logically makes sense she was a a

17:58

personal trainer I had a bunch of gyms

18:00

and I was like if you're this good you

18:01

should totally work for me she was like

18:04

well let's you know let's see how this

18:06

goes um and so I had this idea for the

18:09

turnaround business and it was right as

18:10

I had five five locations at that point

18:12

and I wanted to try this thing out so I

18:14

flew out did three turnarounds flew back

18:17

and they started working and then um I

18:20

sold all my gyms because it was like

18:22

okay this this makes even more money I

18:24

took all the money and put it into uh

18:26

this gym that one of the guys I was

18:27

doing a turnaround with was like dude

18:28

you just crushed this like I'm a really

18:30

good operator instead of turning these

18:32

gyms around and walking away with just

18:34

the money he's like you should just keep

18:35

owning them and I'll just fill up fill

18:37

them up behind you so I could I could

18:38

launch one two three gyms a month and

18:41

then own them all he's like you're

18:42

leaving so much money on the table I

18:43

like okay so we did this first launch I

18:45

put all the money in he was like of

18:46

course he had financial difficulties and

18:47

I had to personally gu you know

18:49

personally guarantee the lease normal

18:51

stuff um and so I crushed this launch

18:54

and then I wake up in morning I check

18:56

the bank account and uh it's completely

18:57

empty I was

19:00

like what's happening so I called him up

19:02

and he was like well I know you're

19:03

you're skimming from the business and I

19:05

was

19:06

like what he's like I know you're I know

19:09

you're you're skimming I was like I'm we

19:11

just what no um he's like well that was

19:14

my half uh and so I was like what is

19:18

happening so I I printed all the bank

19:20

the bank statements I went line by line

19:21

I was like let me I'll I'll walk you

19:23

through all the bank statements let's

19:24

just let's get to the bottom of this and

19:26

I remember we went sat to the meeting

19:27

and he was like I don't need to see that

19:28

he pushed it off the table and I was

19:29

like oh okay I immediately was like oh

19:33

he I just got

19:34

[ __ ] and he'd already been indicted

19:36

for fraud um and I knew this getting

19:39

into business with him and it was just a

19:41

big

19:42

misunderstanding and you know the saying

19:43

goes like uh when experience meets money

19:45

money gets the experience and experience

19:47

gets money um very much live that and so

19:49

after I had all my gyms I sold them put

19:52

all the money in this thing and then

19:53

they all got taken um and so I had

19:55

nothing and um lela's with me at this

19:58

point for this like this exciting period

20:01

so I was like okay she's like hey you

20:04

know maybe we should keep doing these

20:05

turnarounds instead of this weird launch

20:07

and go thing you side sidelined for I

20:10

was like okay we'll do that and so I was

20:11

going to launch a gym the next month um

20:14

and there was a guy who was local to

20:16

that gym and since I was refocusing I

20:18

was like all right I'm going to build

20:18

all the infrastructure I'll send this

20:20

sales guy out to do this thing and uh he

20:22

crushed the launch did like 120,000

20:25

which for us was a big launch um in like

20:27

three day uh in 3 weeks and so now I'm

20:31

at lelo's parents house because uh like

20:34

we don't really have a house at this

20:36

point um and I'm the guy that she met

20:38

from the internet that she quit her job

20:39

for uh who just lost everything and uh I

20:43

was I I needed this 100 Grand to come in

20:45

from this launch so that I could

20:48

recapitalize

20:49

and the money wasn't hitting I was

20:52

checking the bank account I was like

20:53

where's this money like and I I could

20:55

see the processing the transactions and

20:56

it was all success what's going on so I

20:57

called the the process process her up

20:59

and I was like what's up and they uh

21:01

they said it's a routine check I was

21:02

like I've been with you guys six years

21:03

it's never been a routine check and

21:05

they're like call again later and I was

21:06

like okay so I call about the next day

21:07

next day nothing and then finally it was

21:08

Christmas

21:09

Eve and I owed this guy money for the

21:12

commissions from the

21:13

sales and I was like I will not get off

21:16

this phone until you send me the money

21:19

that I am owed and uh to the payment

21:22

process mhm and they were like long

21:25

story short uh you were doing stuff in

21:27

different locations and I was running

21:28

this all through a local gym business

21:30

even though I was all over the nation

21:31

and they were like this is a little

21:32

irregular we're just going to hold on to

21:34

this for 6 months [ __ ] right now I owe

21:37

the guy $222,000 in commissions I in

21:39

total now had

21:41

$23,000 so I wired him the money and I

21:44

had $1,000 left and it was December of

21:48

2016 and I was like I screenshot it

21:50

because I still have the screenshot on

21:51

my bank account so I went from like six

21:53

gyms turnaround business all this stuff

21:55

to $1,000 and I was like this sucks

21:59

and Leila had just got six of her

22:01

friends to quit their job to come do

22:03

this turnaround business with me and

22:04

they were starting two days later from

22:06

the 24th so the 26th of December because

22:09

I planed on getting this 100 Grand in

22:11

and then being able to launch six gyms

22:13

because they took about you know

22:14

whatever uh it was $3,300 a day in cost

22:19

to have six guys out there in the field

22:22

selling 3,300 a day that I did not have

22:25

and so I saw out a credit card that

22:26

$100,000 limit on it um and so I'm at

22:29

her parents house like in in an extra

22:32

bedroom having lost everything and the

22:35

my one hail Mar play of this launch the

22:37

money did not come through and I was

22:39

like I I think you should leave me um I

22:43

I think I am a a sinking ship right now

22:47

and I would respect you like we're cool

22:51

if you want to walk away like we're good

22:55

like I won't think less of you like I

22:56

would walk away from you right now cuz

22:58

this could this has a very high likel of

22:59

not going

23:01

right and

23:03

um she pulled my chin towards her and

23:06

she was like I would sleep with you

23:08

under a bridge if it came to

23:10

that and it's hard to comprehend but

23:12

like I had nothing you know like for

23:14

have that kind of belief was was very

23:17

um it was deep for me so I was like [ __ ]

23:21

it let's go you know what I mean and so

23:23

then we we launched the gyms doing

23:24

$3,300 a day and uh mind you I had no

23:27

way to process money still so I'm

23:29

collecting 60 to 80 contracts a day that

23:31

I can't process and we're getting calls

23:33

from customers like hey why haven't you

23:34

run my card why haven't you run my card

23:36

I'm calling all these processors to like

23:38

hey can you pleas and as soon as you get

23:39

shut down from a processor it's like a

23:40

black mark it's like going bankrupt for

23:42

credit cards um they're like oh no

23:45

something's weird we they just won't

23:46

theyve other people they can process the

23:48

money for finally I get like a highrisk

23:50

processor that does like porn and

23:52

casinos and stuff to like give me and

23:54

they were like yeah so it's going to be

23:56

like 8% processing and we're going to

23:58

hold 10% as like Safeguard and I was

24:00

like Jesus okay yes and they're like and

24:02

we can only give you $50,000 as your

24:04

limit and I was like I was like I need

24:06

like 200 he's like well and I got this

24:08

on the 29th of January so this whole

24:10

time 3,300 a day is running on this card

24:13

and I have no money and I have no way to

24:14

process it and 29th of January I can run

24:18

50 Grand I run 50 Grand in a day and

24:20

he's like but it's by month he's like so

24:22

February 1st you can run another 50 so

24:24

February 1st I run another 5050 that 100

24:26

covers my cost from the month before

24:29

and then I get two more processors for

24:31

50 boom boom run those and then like I

24:34

got a third one or fourth one like two

24:37

weeks later and I was able to like start

24:39

moving things around um and at the end

24:42

of February uh we had made like a

24:44

$330,000 profit and um I was like okay I

24:48

think we might be out of this the next

24:51

month we did a little bit more and I was

24:52

like okay I think this is working and

24:54

then all of a sudden Lila Taps me on the

24:56

shoulder one morning and she's like she

24:57

like turn her laptop towards me and it's

24:59

our bank account and has all these

25:01

negative transactions like hundreds of

25:02

them and I was like what's going on she

25:06

was like well all these clients are

25:07

calling me saying that the gym that we

25:08

did this launch at month and a half ago

25:11

the guy got in his chair and was like

25:12

hey there's too many of you here like

25:15

just go home just refund because I was

25:17

the one who held the money they had to

25:19

do the delivery that was the model it's

25:20

like I would fill a gym up I would sell

25:22

I'd keep the money and then they deliver

25:24

on the services and after that they

25:25

could keep the customers that was kind

25:26

of like the the setup

25:28

and then another gym the next week said

25:32

hey this guy made 100 grand out of my

25:34

gym the average gym owner makes $36,000

25:36

a year take home like this kid from the

25:38

internet took 100 grand out in a month

25:39

screw that kid and so he told all the

25:41

customers who were there after we had

25:42

left hey I'll keep Del living your thing

25:44

refund him just pay me half what you

25:46

paid him so you out right it was a

25:49

flawed model like I didn't understand

25:51

like I didn't get it at that point and

25:53

so we had $150,000 in refunds that I had

25:56

to cover and I had had no way of doing

25:59

it mind you like Leela's like we're

26:01

going to do this I believe in you and so

26:05

I'm like I'm like I can't sleep I

26:07

remember because what would happen is

26:08

like the more we sold the more the

26:09

refund like it was a vicious cycle so I

26:11

had to sell more to cover the refunds

26:13

from the ones that were coming in and so

26:15

our sales were going up and it was just

26:16

like I just I couldn't breathe and I was

26:18

just I would wake up at night anyways

26:21

and so I'm like writing down these ideas

26:23

of like what I think I could do we had

26:26

eight launches that were supposed to

26:27

launch next month so I said hey you have

26:29

this little weight loss business cuz she

26:30

had her personal training business she

26:31

converted her on her inperson clients to

26:33

online during this whole process so she

26:35

was making like $3 or $4,000 a month and

26:36

mostly is like I'm not stable I'm like

26:38

making all this big money and losing it

26:40

all then making it and then losing and

26:41

she's just like paying groceries and

26:42

actually like making sure that I can eat

26:45

and I was like tell me more about that I

26:47

was like what's your overhead how much

26:48

time does it take you and then blah blah

26:49

blah I was like we're going to we're

26:52

going to do your thing we're going to

26:54

we're going to call Queen transformation

26:55

I'm going to start running ads for it

26:57

and we're going to take the sales team

26:58

and we're going to put it on your thing

27:00

and so within 14 days she starts taking

27:02

the phone calls because she was a good

27:03

salesman um she's doing a th Bucks A Day

27:05

online no no all margin what's that

27:08

product it was a 16we like weight loss

27:10

program that online yeah online exactly

27:13

and so it was 500 bucks she was selling

27:14

two of them a day and so I was like man

27:18

if we get the eight eight guys going

27:19

we'll have 8,000 a day 240 after ad span

27:22

I was like I can make 150 in profit and

27:24

like we'll be in the clear so I called

27:26

the eight guys that were supposed to

27:27

launch the next month with the the gyms

27:29

so I get on the phone with the first guy

27:30

and I was like Hey we're going another

27:32

Direction you know we're going to we're

27:34

going to be a weight loss company s

27:35

directed consumer and he was like dude

27:38

you launched my buddy's Gym like two

27:39

months ago and like he he can't stop

27:41

talking about you it's like it's packed

27:43

um because there there are other gyms

27:45

that everything went fine with just the

27:46

ones that didn't is the ones that

27:48

crushed the business he's like I know

27:50

you can do it um and I just refinanced

27:52

my house and I maxed out my credit cards

27:54

to to to make this gym happen and I I'm

27:57

going to lose it

27:59

and given what I had been through up to

28:00

this point I was like that's tough

28:03

man um sorry about that and then finally

28:06

he was like can you okay instead of

28:08

flying can you just show me what you did

28:10

to help my buddy out can you just give

28:12

me like the

28:13

system and since I was like I'm going to

28:15

get out of this gym business I was okay

28:17

like selling my secrets and so I was

28:19

like all right man I'll I'll give you

28:21

everything I have but I'm not going to

28:22

fly out there to save your ass if you

28:24

can't sell he said no no it's fine and

28:25

so I picked up the highest number I

28:26

could think of because he already told

28:27

me he was broke so I figured I could

28:29

just get him off the phone so we could

28:30

move on and I said

28:31

$6,000 and he was like 6 grand I was

28:34

like yeah he was like oh done and I

28:37

remember like looking at the phone and

28:39

being like holy [ __ ]

28:44

$66,000 and I was like oh what card do

28:46

you want to use for that wrote on like a

28:48

cardboard box and then the next call had

28:50

the same thing and I was like well shoot

28:51

I have to make this thing now and I was

28:52

like same conversation he's like how

28:53

much I was like eight grand and he was

28:55

like yeah okay

28:58

and I each of the calls I was like next

28:59

call same thing 10 grand next call same

29:01

thing 12 Grand and then the next you

29:03

know at the end of the day I'd sold

29:05

$60,000 in in licensing packages for all

29:08

of the stuff that we did to do the

29:09

turnarounds is that monthly or is that

29:11

just one it it was a it was a I didn't

29:13

even have any I was just like I'm just

29:14

giving you everything I do yeah it it

29:16

became more like more uh it became a

29:19

recurring model over time but it was a

29:21

PDF or

29:22

something um it was actually on my

29:24

internal stuff so it was like what I

29:25

used to train my sales teams that would

29:27

fly out and like I would use to train

29:28

them on how to do nutrition orientation

29:30

like it was all the internal stuff the

29:31

only thing I actually made external was

29:34

I had to create the uh the advertising

29:36

material so I had to basically make a

29:38

white label landing page for the gyms

29:40

that they could put their logo on and

29:42

then I gave I licensed them the ads

29:43

themselves that we already knew

29:44

converted right so like the videos the

29:46

copy everything they used like videos of

29:48

me that we knew converted and I taught

29:51

them how to run them and then that's

29:53

that's what it did it and uh we made

29:54

$60,000 in a day and I like Lea came in

29:57

from doing her two sales for weight loss

29:59

and I was

30:00

like I think we're still in the gym

30:02

business and she was like what I thought

30:04

we were doing weight loss like you just

30:05

told me you sold me on weight loss being

30:07

like the next thing I was like I just I

30:11

just think we were doing it wrong and so

30:14

I explained what had happened and she

30:15

was like so is this what we're going to

30:16

do now and I was like I guess I was like

30:18

I can call the other 30 gyms that we did

30:20

the turnarounds for I was like they know

30:22

we can do it cuz we just did it for them

30:24

and so I called all those guys up and we

30:26

did like $300,000 and Sal was that month

30:28

and it was basically all profit and I

30:30

covered the refunds and I covered the

30:31

everything and we were like in the clear

30:34

and then and then it was just and then

30:36

all those gyms that we did that we sold

30:38

the average gym did uh $30,000 in extra

30:40

cash collected in their first month

30:42

using our our system and so the key was

30:45

that like if they didn't have to pay the

30:47

overhead of the sales guy who's there

30:49

every day at the hotel the commission

30:51

for that guy like the rental car the PRM

30:54

like all the stuff that you have to

30:55

incentivize and just like rent it out of

30:57

their own gym and work the Le themselves

30:58

it became incredibly profitable uh for

31:01

them and um and then it just took off

31:04

like wildfire like we went from like our

31:07

first full 12 months of uh like January

31:10

to January uh we did 26 million Topline

31:14

17 million in iida our first 12 month

31:17

like it was it was insane like it's hard

31:20

to comprehend that like I like that was

31:22

the the moment I had been like dead

31:24

broke in her parents' house and then

31:27

like

31:28

six months later I have $3 million in

31:30

the bank account and then like 12 months

31:31

after that I've got like 20 Mill I was

31:34

it was it was insane and um I didn't

31:36

even know how you could pay taxes like I

31:38

didn't like I was figuring all this

31:40

stuff out but through that whole thing

31:42

Leila was just like you can do this like

31:45

we can do this like we've got this um

31:48

and I think sometimes you just need one

31:49

voice behind you that just just keeps

31:51

believing what happened then so that's

31:54

2016 um you turned things around over

31:57

the next couple years is what happens

31:59

you know leading up to where we are

32:01

today in terms of your business can you

32:02

give me a Topline summary in terms of

32:03

what's yeah I'll give you the tldr um

32:07

continued to grow gym launch uh two

32:10

years later we started a subl company

32:11

called Prestige Labs at this point we

32:13

had thousands of gym owners that had

32:15

licensed uh the business model and the

32:16

ads and all the stuff that we were doing

32:18

and so we sold through that distribution

32:19

base that company grew pretty good

32:20

pretty big pretty quickly um a year

32:23

after that we started a software company

32:24

that um also helped gyms get leads in

32:27

the door was just like an automated lead

32:29

thing and then um

32:32

2021 we sold all three of those

32:35

companies uh the supplement and the

32:37

licensing company we sold to American

32:39

Pacific group which is a private Equity

32:40

Firm out of San Francisco for uh 46.2

32:44

million for uh we sold two-thirds of the

32:47

company and then um the software company

32:50

we actually sold to a strategic buyer

32:52

who had like a massive base and we just

32:53

had a better monetization system than

32:54

they did um and that was an all stock

32:56

deal um so we're just it's continuing to

32:59

grow under their umbrella and they'll

33:00

probably sell in four or five years um

33:02

but from that and what we had taken in

33:04

dividends um during the licensing

33:06

business for the five years that it was

33:09

Rock still is rocking and rolling um we

33:12

started acquisition. so that became kind

33:15

of our family office and so we started

33:17

our first Investments I think First

33:19

Investments we did was in 2020 so there

33:20

is some overlap there um and part of the

33:22

reason that I was willing to sell it was

33:23

because the the Investments the first

33:25

three or four Investments we did did

33:27

really well

33:28

um and I was like okay this is what I

33:31

want to do as the next thing that you

33:32

know I didn't want to be the gym guy for

33:34

the rest of my life um because I'd been

33:36

you know at this point it had been I

33:38

think more than a decade um that I'd

33:40

been from like sleeping on the gym floor

33:41

to having multiple occasions to doing

33:43

the turnaround business to doing the

33:44

licensing like I'd been in that game for

33:46

a long time and I think that maybe I

33:48

could have stayed there and could have

33:49

just continued to compound it and

33:51

started doing Acquisitions under that

33:53

Fitness umbrella but I wanted

33:55

to do more General business stuff and so

33:58

that was uh that's what we did and so uh

34:01

now we now we buy chunks of companies

34:03

usually uh usually minority Stakes 25 to

34:05

49 is percent I mean we have one that

34:07

we're in the talks of that we were

34:09

originally minority stake in and we're

34:11

going to take majority because it's been

34:12

a great company and they want to the

34:13

founder in the same position as I was

34:15

like just wants to do other stuff and

34:17

it's a great business um so but that's

34:19

kind of how we we see it as like growth

34:20

Partners um we come in we write a check

34:24

we add value we help grow the business

34:26

what are you brilliant at you know you

34:28

kind of you kind of come to learn what

34:30

you're good at based on comparison but

34:32

you kind of understand your area of

34:33

expertise what is your area of brli

34:35

Brilliance or expertise I really want to

34:38

ask Caleb um

34:40

Caleb where's Caleb we can barely

34:43

see so Caleb sat around on the sofa in

34:45

the corner of the studio he is um friend

34:48

and creative director of Alex and I'm

34:51

asking Caleb what Alex is good at what's

34:54

his era of brilliance

35:02

I like it solving problems um for

35:05

companies simplifying complex things

35:06

into more digestible actionable um

35:10

Solutions as well and how would you

35:12

answer that question if you were

35:13

answering it for yourself I feel like I

35:15

fundamentally a lot of times don't

35:16

understand the world and so I think the

35:18

reason that some people have found the

35:20

content and things like that um good or

35:24

useful is because they feel like they

35:25

can understand it it's just because like

35:27

I didn't get it

35:28

right like terms like value right people

35:30

like provide more value like what does

35:31

that mean and so I just make a make an

35:34

attempt to define the terms that a lot

35:36

of us use every day and then it makes a

35:37

lot easier to solve for those things in

35:39

business and so you know a lot of people

35:41

like I want to grow my business I'm like

35:42

all right what does that mean like well

35:44

get more customers make them worth more

35:46

okay so it's one of those two things all

35:47

right well how do I make get more

35:48

customers like well there's eight ways

35:49

to do it here are the eight ways which

35:51

one do you feel like you're best at and

35:53

just like kind of thinking through

35:54

Frameworks that way is it's just for me

35:56

it's just been my way of

35:58

being able to be relatively competent in

36:00

a world that feels

36:01

confusing like there's a few things I

36:03

feel like I can understand and I just

36:05

hold on to those I mean that's the very

36:07

nature of innovation isn't it like

36:08

asking the question you we so so um

36:12

often in our lives just accept words and

36:14

phrases and ways of doing things then

36:16

there's a few people who are really good

36:17

like elon's one of them at just like

36:19

asking why and then when you ask why

36:22

like why can't you make an affordable

36:24

quote unquote electric vehicle that is

36:26

fast everyone else said you can't

36:28

yeah like why but why you know and then

36:31

he he's great at breaking it down into

36:32

like the core components of that

36:34

Innovation so well if we buy the metal

36:36

on the the iron exchange and we do this

36:38

and this then we can do it yeah it's

36:40

that's such an important thing in

36:41

entrepreneurship isn't it there's some

36:42

people who just ask

36:44

why naturally yeah it's like to to the

36:49

point like to Elon it's like I don't

36:51

understand why we can't yeah like just

36:52

explain to me why we can't so that I can

36:54

not think about this and I feel like

36:56

that's you know

36:58

I would say that that's the most common

36:59

thing like why isn't this company

37:00

growing like I don't get it like explain

37:02

it to me and then usually a lot of

37:04

people it's like they're they're in this

37:06

caught in this Loop you know what I mean

37:07

of doing what they've always done um or

37:09

like believing that this is the only way

37:12

um and I think a lot of times I've

37:14

benefited from like not knowing because

37:17

I my questions don't seem stupid to

37:19

me but only to somebody who like knows

37:22

what they're doing um it seems stupid

37:23

and so from there we're able to like I

37:25

guess to your point innovate um

37:28

just by being like I don't understand

37:30

that's what Steve Jobs from from

37:31

everything that I've read about Steve

37:32

Jobs and my brief conversation with

37:33

Steve wnc Once Upon a Time um is he was

37:37

just the the the voice in the room that

37:39

never understood why they

37:41

couldn't and even like when we think

37:43

about him removing the keyboard and

37:45

doing you know not refusing to use a

37:47

stylus and all these other crazy things

37:49

he did not using JavaScript I think at

37:50

the time and changing the port and

37:52

removing the iPhone Jack that that is

37:54

somebody who is so strong in their

37:56

conviction

37:58

in terms of like doing things a new way

38:00

how important do you think that is

38:01

generally like what in your view what

38:03

makes a really good um entrepreneur

38:08

leer I think that they have to have the

38:10

power to influence and that is across

38:12

lots of things just they have to be able

38:14

to move other people and you can Define

38:17

sales as the ability to get people to

38:18

comply with your request you can define

38:20

leadership the same way um management

38:23

marketing to a degree is getting people

38:24

to comply with a larger request you know

38:26

publicly um but I think that

38:28

fundamentally is a skill that people

38:30

have to have if they're going to be

38:30

successful at entrepreneurship um they

38:32

have to have tremendous Drive whether

38:34

that's a combination of towards or away

38:35

so they have a big mission that they

38:36

really want to achieve or they have some

38:38

very big fear that they're running away

38:40

from either way I think the fuel works

38:43

uh just from a pure entrepreneurship

38:44

perspective um third piece is impulse

38:47

control is that they have to be able to

38:50

say no to things on a regular basis for

38:52

an extended period of time

38:55

um and I think they have to to be able

38:58

to boil down the success of their

39:00

business into inputs and outputs like if

39:02

you do not know the inputs that are

39:03

going to get the output that you want

39:05

then what are you

39:06

doing and so I think for for most

39:08

entrepreneurs like if they have those

39:09

things if they have the ability to lead

39:11

other people SL sell just influence they

39:15

have some big motivator they can control

39:17

themselves long enough to keep on going

39:20

during that period of time and they are

39:21

doing the right things because they know

39:22

the inputs and outputs uh to be

39:24

successful to create their the thing

39:25

that they want um becomes a very

39:28

difficult person to beat on that first

39:30

point then sales one of the things I I

39:33

read um in some of your work is this

39:36

idea that if everybody just went and

39:38

spent two years doing door-to-door sales

39:40

that oh my God why is that important why

39:43

why do you think do door sales is a key

39:45

thing I think it's um just for w for

39:48

broader definitions for the audience I

39:49

think it's just high volume

39:50

transactional sales so whether that's

39:53

you doing door to door or you cold

39:54

calling um or you working the front desk

39:57

at a gym where you do 20 consults a day

39:59

like just having a high volume because

40:01

in order to learn a skill you want to

40:02

have as much exposure as you can to

40:06

repeat the action and then you want

40:08

quick feedback loops so that you can

40:10

learn what you did wrong so the perfect

40:11

scenario would be Mentor mentee repeated

40:15

exposure fix this try again fix this try

40:18

again and um in sales if you can survive

40:21

that long then you are good enough that

40:23

you will have gotten enough feedback

40:24

like for most people if they can weather

40:26

the first three months of say sales then

40:27

they'll usually be fine and so for the

40:30

people who are coming up I always tell

40:31

them like go Shadow the best guy and do

40:34

twice the volume he's doing because

40:35

you're not as good as him so like do

40:37

twice the volume that they're doing work

40:39

all of the hours and you will get better

40:40

faster because you're doing you have to

40:42

suck for X period of time and so if you

40:44

can condense how how long that takes you

40:46

in terms of calendar days not hours um

40:48

you can get there faster but I think

40:49

that it's important because one you have

40:50

to learn how to get re rejected and

40:52

still keep going and I think that's a

40:53

very valuable skill and then two there's

40:55

lots of like little things that you

40:56

learn and just interpersonal

40:58

communication that allow you that you

41:00

can use with teammates later you can use

41:02

in marketing because a lot of the best

41:03

marketers started as salespeople and

41:05

marketing is just sales one to many as

41:07

least as as I understand it um and so

41:11

having that kind of repetition just

41:12

develops a deep understanding of human

41:13

psychology I think um and I think it's

41:16

important for if you want to get people

41:18

to give you money for the thing that you

41:19

have um having that as a base skill

41:22

comes in handy I think a lot of people

41:25

aren't orientated towards developing

41:28

skills I think they're orientated to

41:30

Lifestyle to what I can post on

41:32

Instagram to cool whatever's cool um but

41:37

this idea of developing skills requires

41:39

this thing that's kind of absent in

41:40

modern culture which is patience and a

41:43

lot like you said rejection who wants

41:45

that you know it wasn't there was no

41:47

glamour in what you said Alex yeah it's

41:50

funny because a lot of us want traits

41:52

right we want to be patient we want to

41:53

be humble we want to be you know

41:54

longsuffering whatever words you want to

41:56

use um um but in order to if I would say

41:59

hey how would you create if you had to

42:02

create a human what would you put them

42:04

through to make them

42:05

tough it probably wouldn't be a really

42:08

chill life yeah what would you put them

42:10

through to make them patient you

42:12

probably wouldn't give them things

42:13

immediately and so it's like we want

42:15

these

42:16

traits but each of the traits has a

42:18

price tag attached to it and it's just

42:19

like do you want to pay the price tag to

42:21

get the thing and so I think if if

42:23

people reframe the the period of life

42:25

that they're going through as the price

42:26

that they're paying out of their wallet

42:27

but the wallet is their time it's the

42:29

seconds of life that they're trading for

42:30

it then I think more people will be

42:32

willing to make the trade because at

42:33

least when I look at myself like when

42:35

I'm 80 something years old and I'm

42:36

looking back on my life I want to have

42:37

these traits but in order to have those

42:39

traits I know I have to go through these

42:40

things and I think for me that's given

42:41

me a lot of comfort in hard times one of

42:46

the things kind of adjacent to that

42:49

which causes patience is the belief that

42:51

you are at some point going to get there

42:53

so like you know it's all well and good

42:54

you saying to me you do this for 5 years

42:56

Steve

42:57

um you'll build the skill but I go well

42:59

listen if I want to be a millionaire um

43:01

and I and I have a low self-belief I'm

43:03

going to have low conviction so I'm not

43:04

even going to take the BET yeah so how

43:06

does one build that self-belief self

43:09

belief is such an interesting thing

43:10

because it feels like this real it's

43:12

clear to some degree that you had it in

43:14

that moment of turmoil also the reason I

43:16

say to some degree is because it didn't

43:17

seem like you had a plan B

43:19

anyway

43:22

so you were already in your like your

43:25

parents-in-law like playroom or whatever

43:27

so I had nothing to lose yeah you had

43:29

nothing to lose so I don't know how much

43:30

self belief is applicable but regardless

43:33

to to keep gracing those hurdles self

43:35

you need some kind of conviction that

43:37

like this is the right way to go how do

43:39

people build that so I I hear that and

43:41

to like to to to Echo the point you just

43:45

made I hated my current existence and so

43:48

I think some people like don't hate

43:49

their current existence enough and so

43:52

like I don't think you like you either

43:54

have to really believe that this thing's

43:55

going to happen or you have to know that

43:57

your life sucks and I knew that my life

43:59

sucked and so I knew that if I did

44:02

something else it would have it would

44:03

have a higher likelihood of changing my

44:05

life than not doing something and at

44:08

least that's how I would say that I

44:10

probably saw it in the beginning it's

44:11

like I didn't know if it was going to

44:12

work but I knew that I wasn't going to

44:14

stop I read I heard a quote some 10

44:17

years ago which from just came to mind

44:18

when you said that on some YouTube

44:21

family Vlog where he

44:22

said change happens when the pain of

44:25

staying the same becomes greater than

44:27

the pain of making a change and in your

44:29

situation now it sounds like well this

44:31

is less painful 100% I think and I think

44:33

that's the basis of of most either you

44:35

have to have a reward that is that that

44:37

incentivizes you it's the away towards

44:39

her away it's either we're going away

44:40

from pain or going towards pleasure and

44:42

I think a lot of people really looking

44:43

for that passion that's going to be

44:44

towards but I think early days and I

44:45

talk a lot about this but like I think

44:48

negative motivation is poo pooed too

44:50

much like if you are angry use it if you

44:54

are sad use it because like what else

44:58

are you going to do with

45:00

it like you might as well let it help

45:03

you like or it uses you you know what I

45:06

mean and so I always like to see when I

45:08

was in my earlier days I felt like I was

45:10

wielding my anger at least in a

45:12

direction and I think also a lot of

45:14

people think that they have to get like

45:15

it right on the first shot but one of

45:17

the beliefs that I had was that I just

45:18

want to be directionally correct like if

45:20

I move I like I know that I don't like

45:22

this and so this way is not where I am

45:25

and so I will start taking steps way and

45:27

from the story that you at least heard

45:28

it's like I'll ping pong a little bit to

45:30

try and directionally move that way and

45:33

it's funny because Caleb's seen plenty

45:34

of things from what we do at

45:36

acquisition. comom where we're like

45:37

we'll try it out and if it doesn't work

45:39

then we're like

45:43

oops all good do you believe in

45:47

yourself I think

45:49

that I have a high likelihood of

45:51

repeating activities that I've done in

45:52

the past and up to this point I have

45:54

lots of evidence that would suggest that

45:56

it that I will continue why didn't you

45:58

say Yes um

46:01

because I based the answer on that

46:03

question on what I've done before and I

46:05

think it's been it's just based on

46:06

evidence now so it's it's not like a

46:08

like a Charisma thing at least for me

46:10

it's just like I've done these things

46:13

and so I think it's probable that I'll

46:15

be able to

46:16

continue is there a deeper reason to why

46:18

you didn't just say

46:21

yes that's actually how I think about

46:24

it is that because it's that feels

46:27

difficult to say you believe in yourself

46:29

yeah it feels weird I don't know if

46:32

hokei is the right word um for what that

46:33

feels like for me but like saying the

46:35

way that I said it is how I is how I

46:37

feel about

46:39

it h have you been on a journey of in

46:42

terms of Self Doubt over over the last

46:45

you

46:45

know 30 years for sure I think it was um

46:50

but I mean fear was my big fear and

46:52

anger hand in hand were my big

46:53

motivators in the

46:55

beginning and I

46:57

maybe that's from soft out but I would

46:59

say that the I I was very certain and I

47:01

can I can I can feel this and I I

47:03

remember this um I was always certain

47:07

that I wasn't going to

47:08

stop like that I can I didn't know I

47:11

didn't know whether I would succeed I

47:14

thought it was

47:15

probable but I did know I wasn't going

47:17

to stop and so for me that was like

47:20

enough to get me going or keep me going

47:22

was like what are the controllables me

47:26

okay well if I do this so like I'm big

47:28

on making like unreasonable like

47:29

unreasonable that it doesn't work out

47:31

statements just like if I do sales and I

47:35

do more volume than everyone else on

47:36

this team and I Shadow the guy who's the

47:38

best and I do that for five years it's

47:40

unreasonable that I won't be at least

47:42

mediocre it will be probable that I'm

47:44

above average and it's also probable

47:46

that I'll learn other things along the

47:48

way and I'll also have the resources at

47:50

that point in 5 years that I can jump

47:53

into things now that I have more context

47:55

or perspective from which to make a

47:56

judge on what a good next opportunity is

47:59

and so I like very easy to believe

48:01

statements and then having the input

48:03

output equation being like the output is

48:05

that I will be a very good salesman the

48:07

inputs is that I have to do I have to

48:08

collect 5,000 NOS if I collect 5,000 NOS

48:12

I'll be a very good salesman and that

48:14

for me like when I was a kid when I

48:15

played video games I would beat the same

48:17

level over and over and over over again

48:19

so that when I got to the next level I

48:20

would crush everybody because I'd had

48:21

all the experience points maxed out and

48:23

so like those input output equations are

48:25

really helpful for me like when I took

48:27

the GMAT to get into Harvard my first

48:29

score was like okay it wasn't great um

48:33

but I I read the study on how to do well

48:36

on standardized tests and they had this

48:39

graph and it went like this it was just

48:41

a straight line it said number of

48:42

problems practiced on gmath score so

48:46

like the more problems you did on

48:48

average the higher your test score was

48:50

and I was like done so I bought 16 phone

48:52

books of like they like these thick like

48:55

test prep books and I did four hours of

48:57

problems every day for three months

48:59

every day I'd get home from work I would

49:01

eat dinner I would do four hours of

49:02

problems had a timer did every day and

49:04

then I scored a 99 Point whatever

49:06

percentile because it was just input

49:08

output like I didn't I I didn't I was

49:10

naturally not even that good at math um

49:13

but I just was like if I do 10,000

49:15

[ __ ] problems like I'll start to just

49:17

understand how these problems get asked

49:18

and so like I always trying and find

49:19

like what's the input output for this

49:21

the content game I was like okay well if

49:24

we post once a day on one platform we

49:26

will get some some eyeballs if we post

49:28

on every platform every day we will get

49:29

more eyeballs if we post multiple times

49:31

a day on every platform we'll get even

49:32

more eyeballs so let's do that let's

49:34

build that system 100% And so like those

49:37

are the like I try and make statements

49:40

that I believe are unreasonable that if

49:41

I do it enough it will be true and so

49:44

that's for me that's what gives me the

49:45

confidence to say like what if it's not

49:47

working like it will eventually like if

49:49

we just keep doing it it will

49:52

work what does it take to want to do

49:55

something potentially for years so that

49:57

you can get good at

50:00

it cuz you know there's going to be

50:02

people thinking well I want to be a

50:03

great DJ but I just can't find the

50:05

motivation to spend every day three

50:07

hours practicing Alex yeah like you

50:11

probably won't be a good

50:13

DJ but I be I would be like you like

50:16

your current state enough that you like

50:19

the pain of change thing right like

50:21

you're not in enough pain I've said that

50:23

to plenty of people we go speak and

50:24

someone's like how do I get motivated

50:25

I'm like you're not going to get motiv

50:27

like you have to hate for me like it I

50:29

automatically go there I'm like you have

50:30

to hate something like for me I just

50:33

hated my current existence and so for me

50:34

that was powerful enough to get me out

50:36

there's got to be another way though you

50:38

know I was thinking to you that moment

50:39

where you took the leap MH you know and

50:41

there's I feel I often feel like most

50:43

people that listen to this podcast often

50:46

are at a point in their life where

50:47

they're considering a leap yeah feel

50:49

like we drag those type of people in we

50:51

kind of like we're a magnet to those

50:52

people so if they if they're in a

50:54

situation that they don't like but it's

50:56

not that painful you know it's

50:58

comfortable well that's the worst it's

51:00

comfortable but little bit miserable

51:02

yeah how do you get them to take the

51:03

leap when it's so

51:05

comfortable my boss is promising me a

51:11

promotion I think about death all the

51:14

time it's like I'm going to die and I

51:17

think you have to agitate the pain for

51:19

yourself like you have to stoke the pain

51:22

like if you can't get through through

51:23

cuz like it would be it it would be odd

51:25

that you would be motivated by some

51:27

weird passion like not everyone's Mozart

51:29

and just like I just love music and I've

51:31

been I see in you know see numbers in

51:33

colors you know whatever like some

51:34

people are like that but most people

51:35

aren't and so if you're not that

51:40

then you only start really liking stuff

51:43

when you get good at it in my opinion

51:45

and you only get good at it by doing it

51:46

a lot of times before you're good at it

51:49

and so if

51:51

you this is why I'm a big big believer

51:54

in this is that when you are starting

51:55

out I think got to find the thing that's

51:57

the pain and like pain motivates

51:59

significantly faster and stronger than

52:01

pleasure does like people are like no

52:03

passion is the right way it's like point

52:04

of gun at a family member all of a

52:06

sudden 10 out of 10 motivation pain and

52:09

so like I think people should use their

52:13

pain more and if they don't have enough

52:14

pain then one maybe that's fine and

52:17

you're a dreamer and that's okay but I

52:19

will tell you that a word that I can I

52:21

read in my like six-month Journey

52:24

between when I wanted to quit and when I

52:25

actually quit there was this word that

52:27

just like pissed me off and it was this

52:29

in the self Hub or entrepreneur book and

52:30

it said there are entrepreneurs and

52:32

there are

52:33

wantrepreneurs and I was like and it was

52:35

like wantrepreneurs or people who read

52:37

these books and don't do anything blah

52:39

and I was just like I don't want to be I

52:41

was like I am one of these right now and

52:42

I just it just like felt

52:45

so powerless and I think that my entire

52:49

life has been a lot of trying

52:50

to have power and I mean that in the

52:53

true sense of just being able to direct

52:55

influence and events um I've wanted to

52:57

have more power to protect myself

52:58

protect the people I care about Etc um

53:01

and I felt very powerless and I think

53:03

that I was in that comfortable like my

53:05

dad approved of my current situation I

53:07

had a job that when I told people they

53:09

were like oh that's fancy but I felt

53:12

powerless and I I hated that more than

53:15

anything and so I think I think if I

53:17

want to say this to anyone who's

53:18

listening if there's anything you listen

53:20

to all the stuff that I described that

53:22

was really tough that I went through was

53:25

not as hard as me quitting my

53:28

job by far the hardest decision of my

53:31

entire life far

53:33

none because the things that I was

53:36

actually caught up with were the

53:38

opinions of other people opinions of my

53:40

father and the opinions of the people

53:41

that I went to school with who I thought

53:42

would judge me for leaving this good job

53:44

to probably become a failed gym owner

53:46

and how lame that would sound compared

53:48

to consultant going to Harvard and bl

53:51

like I was going to go from Peak white

53:54

collar to a very blue color you know

53:57

profession making significantly less

53:59

because I quote loved it and like it I

54:04

I'll say this again but like sometimes

54:06

you have to let other people's streams

54:07

for your life die for yours to live and

54:09

for me it was like when I when I

54:12

continued to every day not want to wake

54:13

up that was my wake up call where I was

54:16

like either I continue to live this way

54:18

and not want to be

54:21

alive or I just risk the fact that I'll

54:24

die to everybody else and I think that

54:26

like it was the hardest decision in my

54:27

entire life by far all the all the hard

54:30

stuff we went through still the hardest

54:32

decision in my life how much was money

54:34

on your mind when you made that decision

54:35

the desire to be financially free to the

54:37

point where you had

54:39

Millions it's weird money um Caleb would

54:42

know this money doesn't really motivate

54:44

me uh I would say that it I mean I love

54:47

the game for sure um but I love playing

54:49

the game and the tokens are there

54:52

um but for me it was it was it was it

54:56

was beating my dad you know what I mean

54:57

I didn't want him to be right like

54:59

that's what it was like I didn't want

55:00

him to be right I just I just I remember

55:03

like I I'd be sleeping on the floor I'd

55:05

be miserable I had you know when I had

55:06

my gym and I had no trainers I was

55:08

teaching all the classes and so I'd wake

55:10

up I'd do 4:00 a.m. 5 a.m. 6 a.m 7 8

55:12

a.m. sessions and then I would then uh

55:15

work out for myself and then I would uh

55:18

do uh I'd do all the marketing and the

55:21

ads and the stuff that I have to in the

55:23

middle of day and then I would teach the

55:23

four the 4 p.m. the 5: p.m. the 6 p.m.

55:25

the 7:00 p.m. and then I would do sales

55:27

consults at 8 9 10 11 and then I would

55:29

do the billing for all the all the

55:31

contracts from 11: to like 12 12:30 and

55:34

then I'd wake up again and I did that

55:36

for like six months and like I started

55:37

to like lose my mind because I wasn't

55:39

sleeping um but even during like those

55:42

times I just literally I would Envision

55:45

going back to Baltimore to my father and

55:49

have and knowing that he would give me

55:52

the false modesty of like why know you

55:55

tried about it now let's get you back on

55:57

this thing and I knew that from that

55:59

moment on he would own me and I just

56:02

couldn't I I couldn't I couldn't do it I

56:05

was like I will do anything but go back

56:06

to that and for me that was my I I would

56:10

do

56:11

anything and so whatever that maybe you

56:14

need to agitate some pain in your life

56:16

you know to get out of your current

56:17

circumstance um and just as a total side

56:21

note play it out what if you just never

56:23

do anything is like maybe May some

56:26

people just need to stop

56:28

dreaming maybe they need to accept their

56:31

current reality and actually enjoy it

56:34

because there's a lot of people in their

56:35

70 and 80 and they didn't do their

56:36

dreams and if they went back like they

56:38

didn't do anything but that whole time

56:40

they were dissatisfied because they

56:41

didn't try but what if they were just

56:43

like I have a good life I have a wife

56:45

who loves me I've got some kids I have a

56:47

job that I you know like I don't mind it

56:49

pay the bills I mean if you go back 500

56:51

years it wasn't people are like man this

56:53

is my passion he's like dude I'm just

56:54

rowing rowing a boat across a ferry and

56:57

that's what I do and that's what my dad

56:58

did and his dad did like this is how we

57:00

eat and so like we have these these um

57:03

idealized versions of purpose that I

57:05

think Instagram and all this stuff kind

57:06

of make terrible but like I think

57:07

there's a lot of honor and work period

57:10

And I think a lot of people uh fool

57:12

themselves by thinking that what they do

57:13

for some reason is not honorable and I

57:15

think a lot of it is like the internal

57:17

versus external scorecard of

57:19

like I was saying what I said earlier

57:21

about like I believe these things to be

57:22

true about the universe or like the

57:24

world but a lot of those are like what

57:26

do I believe about myself which is like

57:28

I can choose to do work in this way

57:30

which then I can derive Joy from so like

57:32

if I'm Shoveling

57:34

[ __ ] I can choose to be like I will be

57:36

the best [ __ ] shoveler because I believe

57:38

that I will figure out how to do this

57:40

more efficiently and I will you know I

57:41

will I will get better and I'll have

57:42

calluses on my hands and I'll have a

57:44

better back and whatever um but I will

57:46

do this

57:47

well and I think you can find joy and

57:50

work if you decide to do it well so on

57:53

one hand if you are if if you if your

57:56

dream causes you so much pain then you

57:58

will quit what you're doing and do it

58:00

and if it doesn't cause you enough pain

58:02

that you're not pursuing it or that you

58:03

don't like if you don't feel like you're

58:04

in a cage right

58:05

now then maybe you're not in a cage and

58:08

maybe you just need to like the life you

58:10

have and that's cool too a previous

58:12

guest on this podcast called moat said

58:15

we're unhappy when our expectations of

58:16

how we think life is supposed to be

58:18

going are unmet and in that there's

58:22

something very sort of linked to what

58:24

you just said there which is we have

58:25

this external expectations set by

58:27

Instagram or whatever by People Like Us

58:33

yeah who who who um are in a position of

58:37

um Financial Freedom and have built an

58:39

audience who you know admire those

58:41

people for what they've achieved and if

58:43

someone wants to be admired they think

58:44

well I need to be like Alex right um and

58:47

that I could be working in a shop

58:49

actually objectively like subjectively

58:51

having a great time in the shop but I

58:53

look up at Alex and go my life sucks

58:55

right

58:56

and and like so in that I'm like it's

58:58

very difficult um because of the

59:00

pressure of external I was just thinking

59:02

when you said it that I was thinking

59:03

this whole idea of like passion and

59:04

purpose is probably like 60 years old

59:07

yeah it's all brand

59:10

new and it probably originated when we

59:13

were like connected you know like radio

59:15

TV yeah all of this ad advertising which

59:19

made us change our expectations of our

59:21

own lives when living in the village and

59:23

like helping out at the bakery was

59:25

probably delivered the same amount of

59:27

Happiness core happiness than being on

59:29

the private jet and whatever else does

59:31

now I think most people are just as

59:33

happy and just like you're 50% happy 50%

59:36

sad for most of your life if you're in

59:38

an extreme circumstance then change your

59:39

life if you're not like conditions like

59:42

people get handicapped they break their

59:44

legs you know they they can never move

59:46

again and they have a dip in their

59:47

subjective well-being and they go back

59:49

to the same Baseline and so like the

59:52

Baseline is independent of

59:54

conditions and so the world World wants

59:56

to tell us that we need to change our

59:57

you know change our circumstances and

59:59

then we will be whatever but like every

60:02

modern religion every Buddhist monk will

60:04

tell you that all of that's from the

60:05

inside not the outside um but these are

60:07

words and words that me and you yeah can

60:10

say don't follow

60:12

yeah because I'm sure that you've you've

60:14

experienced like the attainment of a

60:16

goal and then I just need three times

60:18

more yeah I'm referencing a study there

60:20

where they they ask people how much

60:21

money they would need to be happy and

60:23

all the way up the income wealth

60:24

Spectrum people said three times more

60:25

than they have now so people with 10K

60:27

said 30 people with 3 million said you

60:29

know 9 million fing can do math three

60:32

time 3 * 3 yeah um and you you I imagine

60:37

you still experience that now right yeah

60:40

different reasons but yeah for sure when

60:42

is enough enough um I don't think it's

60:44

enough thing I think it's more like who

60:46

I want to be who do you want to be I

60:48

want to be the person capable

60:50

of of doing that doing X like we'll get

60:54

to a billion and then after a billion I

60:55

I'll make it 10 I already know that you

60:57

know what I mean but like I love playing

60:59

the game what is the game game of

61:02

business to what to what end or just

61:04

just for the play to play yeah I'm I'm

61:07

sure you know more about this than I do

61:09

but like just Game Theory like the

61:11

finite and infinite games Simon sonck

61:13

has a great piece on it um but yeah with

61:16

infinite games you have known and

61:17

unknown players you have no greed upon

61:20

rules and the point of the game is to

61:21

keep the game going and so a lot of te

61:24

people will take a finite game game

61:26

where you have known only known players

61:27

agreed upon rules and a set outcome um

61:31

for winning and they will apply it to an

61:33

infinite game so people are like I want

61:34

to they apply a finite contract to

61:36

health they're like I want to win Health

61:37

it's like you don't win Health like okay

61:39

you're in shape now what you stay in

61:41

shape you keep staying in shape I want

61:43

to win at marriage you don't win at

61:44

marriage you keep the marriage going

61:47

that's playing the game of marriage if

61:49

you want to you don't win at business

61:51

you keep playing the game of business

61:53

and so we want to take these finite

61:54

contracts and put them on on on infinite

61:56

games and I think that's where people

61:57

get get in trouble because they're

61:59

they're like I have to keep moving the

62:01

goal post but if the goal post is to

62:02

play then you win by playing and so for

62:05

that re like sure we set goals for the

62:06

company but like I'm a th% super

62:09

motivated and at the same time if we

62:10

never hit it I'm just going to be happy

62:12

that I was able to play I also know that

62:13

in three generations everyone will

62:15

forget who I

62:16

am I saw your post about the queen yeah

62:20

was that a

62:21

stab no no no it wasn't it wasn't for me

62:24

if I'm being honest um but uh but it's

62:27

an interesting what did the post say

62:29

remember well she amassed more wealth

62:31

than

62:31

99.99% of the world she ruled for 70

62:34

years uh was you know a female Monarch

62:38

which is insane especially 70 years AG

62:39

could just like all it's had amazing

62:41

family all this amazing whatever I I

62:43

don't know the tabls you do um and when

62:47

I posted it it had been I think five or

62:48

six months since she had died

62:50

exactly and I was like you probably

62:53

haven't thought about her today except

62:54

for this post she probably accomplished

62:57

more in her life than we probably

63:01

will so if you afraid of other people

63:04

thinking about you just remember that

63:05

six months after you die they're not

63:06

going to be and so it's like we have all

63:08

these fears about other people but like

63:10

most of them won't even show up to your

63:11

funeral because they're going to be

63:14

busy and so like I I think about death

63:17

all the time and that's that's what I

63:19

think for me has given me a lot of uh

63:21

freedom to take big shots because like

63:24

at the end of the day I think that it's

63:26

not going to matter no one's going to

63:27

remember people in Thailand don't know

63:30

who I am today let alone in five 10

63:34

years 100 years it's a trap that the

63:36

mind can quite easily fall into though

63:37

thinking you are the center of the

63:38

universe and with that comes an immense

63:40

amount of weight and pressure and

63:41

anxiety totally I I have a trick I've

63:43

never talked about this before but

63:45

whenever I feel myself slipping into the

63:49

Trap of kind of overstating my

63:52

importance and what I mean by that is

63:53

like thinking my problems are big

63:55

problems

63:56

I go on YouTube and I type in

63:59

um there's this one video that shows a

64:02

camera on Earth that just zoom out and

64:05

it keeps going and eventually Earth

64:07

becomes this tiny Speck then Earth

64:09

becomes this tiny Speck which is the

64:11

Galaxy then the Galaxy becomes this tiny

64:12

Speck in a bunch of galaxies then you

64:14

can't see any of it anymore and then

64:16

also this idea that like hundred years

64:19

ago I didn't feel anything didn't think

64:21

anything nobody KN knew me 100 years

64:23

from now exactly what you said

64:24

absolutely I mean [ __ ] five minutes

64:25

after I die I

64:27

think but um and that feels really

64:29

liberating it like relieves stress from

64:31

my

64:32

body which is an interesting thing

64:34

because a lot of people don't like

64:35

thinking about the death you know a lot

64:36

of I love thinking about it yeah all the

64:38

time I know from doing this podcast that

64:39

a lot of people won't click if we we

64:41

post something about death they won't

64:43

because they don't even want to confront

64:45

the concept of it which

64:46

is people are afraid of it just because

64:48

they don't understand

64:50

it it's kind of like the Hate Thing how

64:52

do you feel about death I'm good with it

64:56

when you say I'm good with it what do

64:58

you mean if I die tomorrow I'm good with

65:01

it like I want to leave it all on the

65:06

field I'm going to try as hard as I can

65:09

and I know that no one will remember me

65:12

on a long enough time Horizon and I'm

65:14

good with that like I'm cool with

65:19

it if I told you you were going to die

65:21

tomorrow would you be

65:23

sad I'd probably hang out with Lila

65:26

a little I guess a little more than I

65:27

always do but like um I would say I

65:31

wouldn't be sad I'd be bummed be like

65:33

man there's all [ __ ] I want to do uh but

65:35

I don't think I'd be like depressed I

65:36

think I'd be I mean my D to be fair

65:38

maybe I'll find out and maybe I'll get

65:40

hit by a bus tomorrow but um no I think

65:44

like I've lived life the way I want to

65:47

live life

65:49

and I'm good with it if you were to go

65:51

today had you really like given it

65:54

everything had you lived the life you

65:55

you feel like you were really destined

65:57

to

65:58

live me absolutely an interesting Mind

66:02

Trick around the same topic is so when

66:06

when Betty White dies right at 99 or

66:09

whatever like people are like she lived

66:10

a good life but when Kobe dies before

66:13

his time right it's a big

66:16

deal and I see that as a contrast

66:19

between expectations in reality and I'm

66:21

going to tell a story that hopefully

66:22

people don't take the wrong way but I

66:24

had a cat and really liked the cat and

66:28

it died at two years old really liked it

66:31

young guy heart thing or something

66:33

whatever and I remember being like

66:35

really bummed about it and I was like

66:37

huh how can I not think this and so I

66:41

was like the only reason I bummed is

66:42

because I think that he should have

66:45

should being the the big word that

66:46

Everyone likes to use he should have

66:48

lived longer I was like what if cats

66:51

only lived 6 months and I got to have

66:53

him for two years I was like I probably

66:55

be pretty stoked about that and all of a

66:58

sudden I was significantly less sad

67:00

about it and I was like I got to have

67:02

him for two years I was like awesome and

67:05

so I think like for for me for us

67:08

whatever um if we were to change our

67:10

expectation like people think they

67:13

should live until everyone thinks

67:15

they're going to live to 100 which is

67:16

kind of interesting because like the

67:17

average life expens is 74 and if you're

67:19

like 36 you're middle-aged if you

67:22

actually do the math which no one wants

67:24

to do uh being middleaged 36 I know

67:26

right I know right I want to go yeah but

67:29

I think if we shift our expectations

67:31

then like expectations is the thing it's

67:33

the it's the thing right and so we can

67:35

if we expected if I expected that I was

67:38

supposed to have lived 20 years and I

67:39

made it to

67:40

33 stoked Jesus lived till 33 he did a

67:44

lot more than I have you know what I

67:46

mean and so I'm good with it if I die

67:49

tomorrow like only reason I would be

67:51

upset is is if I demanded from the

67:53

universe that I live longer

67:57

but like 500 years ago average life

67:59

expectancy was like 35 you know it was

68:02

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68:18

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68:20

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68:21

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68:22

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month on us working hard we talked about

69:07

repetitions earlier working hard is

69:09

quite a controversial Topic in

69:11

2023 which is weird do you see what I

69:13

mean though

69:15

yeah I'm probably not in the circles

69:17

where it's

69:19

controversial it's like they're like

69:21

gravity's controversial now I'm like I

69:23

don't know sure man it's controversial

69:26

in the sense that there's like toxic

69:28

work oh my God you know there's toxic

69:30

hard work and there's I think Society

69:33

prescribes a certain amount of work

69:35

which is

69:36

good yeah by their definition of like

69:40

I'm going to say some stuff that's going

69:41

to bother some people I work all the

69:43

time I have no Hobbies besides working

69:46

out if you can consider that a hobby

69:47

like four times a week that's it I work

69:50

all the time that's all I do and I work

69:53

until I can't work meaning like my put

69:55

per unit of time starts to drop

69:57

precipitously and then I know that I

69:58

just need to take a break of some sort

69:59

and then I usually bend some sort of

70:01

Television because that's what for me

70:03

Works some people are like I Garden

70:04

that's not me Netflix I'm good you know

70:06

what I mean or dark room in a movie

70:07

theater rocking

70:10

um comma and that's okay like why do I

70:13

need to take their expectation of what

70:14

they want like they're like that's not

70:16

healthy I'm like Define healthy I do as

70:20

much as I can of the thing that I want

70:21

to do with every minute of my day why is

70:24

that not healthy why do you want me to

70:25

do something that I would prefer to do

70:27

less cuz I do what I do every other of

70:30

the day because that's what I want to

70:32

do almost like how dare you cast your

70:34

expectation of your life onto me and to

70:37

be fair the same

70:38

degree they cannot work at all doesn't

70:40

affect me like I'm a I'm a big big

70:44

advocate for destroying should the word

70:47

in general should is just like the

70:49

expectation motor of like all of our

70:52

psyches you should go to school you

70:54

should get a degree you should do this

70:56

job you should marry her you shouldn't

70:57

stay up so late you shouldn't work so

70:59

hard you shouldn't you should be more

71:00

balanced you shouldn't be working out so

71:01

much you're not working out like it's

71:03

there's all these shs that other people

71:05

tell us and it's like and you zoom out

71:08

and then you see that it's a galaxy with

71:10

a little dot of dust it's like should

71:12

what there is no should do what you want

71:15

to do at least that's how I see the

71:18

world that pressure applies to both ends

71:20

of the spectrum doesn't it because

71:21

people that quote unquote overwork they

71:23

get hit come back into the middle and

71:25

that people that underwork they get hit

71:27

work harder and then the presumption

71:29

there in within Society is that there's

71:32

this sweet area in the Middle where it's

71:33

optimal and like the question should

71:36

become then like what is the measurement

71:38

like what are we measuring is it are we

71:40

measuring when we're defining this

71:42

amount of work as good work or healthy

71:44

whatever is the is the real measurement

71:47

my happiness and my

71:48

fulfillment in your view is that what

71:50

you're like is that your measurement or

71:52

is it just [ __ ] how you feel

71:55

I work because I enjoy working and I'm

71:58

sure that if I stop enjoying working I

72:00

won't work as much like just being

72:02

really like not not being per I'm not

72:04

being simplistic to be you know Annoying

72:07

um I work because I enjoy working and if

72:11

I and if for some reason I didn't get

72:12

reinforcement from work I'm sure that my

72:14

amount of work would go down is there is

72:17

there a I think about like human needs

72:19

yeah but are there any human needs

72:22

that are being sacrificed by always

72:25

working in your

72:28

case I'm good um yeah I mean which gets

72:33

to the point of the measurement which is

72:34

like how do I feel I'm good yeah I a lot

72:38

of people really overanalyze a lot of

72:39

things and like I don't think well I do

72:41

I do I do spend a lot of time thinking

72:43

about death and things like that but I

72:44

usually use those as frames to give

72:46

myself permission to do the things that

72:47

I want to

72:48

do and just do them without hearing the

72:51

Judgment that I know that other people

72:52

would probably cast on my life they're

72:54

like why don't you have kids like cuz I

72:56

haven't wanted to yet and that's okay

73:00

and if I want to later I

73:02

will I'll okay I'll tell you an argument

73:04

that I got into so I was at you got into

73:07

an argument I did I got into an argument

73:10

um with my stepmother so Lea's

73:13

father's whatever doesn't matter okay it

73:17

wasn't her different person it's fine

73:19

anyways I was at in the kitchen table

73:23

and she said

73:26

I would never want your

73:28

life and I was like what she was like

73:31

it's so unbalanced I was like okay how I

73:36

was like do you feel like I'm not in

73:37

shape physically I was like do you feel

73:41

like business-wise financially I'm I'm

73:45

not fit do you feel like romantically

73:48

like my marriage is in some way like not

73:52

good and so I I like we

73:55

where do you feel like I'm unbalanced or

73:57

it's just that I do more than you or I

74:00

do things differently than you do

74:02

because to the same degree I wouldn't

74:03

want your life and that's why I don't

74:05

have your life and that's why you don't

74:06

have my life so it's good that we don't

74:08

want each other's lives because that

74:10

would be tough wouldn't it and so that

74:12

was the argument that we got into in in

74:15

in so many words and it just came down

74:17

to the idea that like I

74:20

think that person was casting judgment

74:22

on themselves because maybe on some

74:25

level maybe they did want some aspect of

74:27

the life that we had and I hope that

74:28

doesn't sound like weird but it's just

74:30

like I think we all do this we see

74:31

something we're like and then we look at

74:32

our Delta and then we either say man I

74:35

would like that or we cast stones at it

74:37

so that we don't feel bad to our ego and

74:39

say like no there's something wrong with

74:40

it they're not happy whatever and I just

74:45

I would say that if there's one thing

74:46

that I I will try and beat out of me

74:48

until I die is caring what other people

74:50

think and I think everybody cares what

74:52

other people think and I think over time

74:53

we just care a little bit less and so I

74:55

feel like I'm 30% better than I was 10

74:57

years ago and maybe in 10 years I'll be

74:59

like 30% better than

75:01

that but that 30% has been very

75:03

meaningful for me because it's enabled

75:05

me to do things like I got married in

75:06

eight days none of my parents were there

75:09

and I'm cool with it because that's what

75:11

I wanted to do and I work with my wife

75:14

every hour of every day and people are

75:15

like is that healthy I'm like I don't

75:16

know we like it why do you care like how

75:20

does it affect you here's here's a trap

75:23

though I can relate in many in many ways

75:25

to what you're saying and I mean my team

75:27

will know that instinctively um one of

75:30

the traps we can fall into one of the

75:31

risks when we have that perspective is

75:33

that we kind of cast that expectation on

75:35

others people that work with

75:37

us I think entrepreneurs oftentimes when

75:41

they have

75:42

that drive which is sometimes driven by

75:44

a shame or an insecurity that comes from

75:46

their childhood too often um so often

75:48

maybe not too often but so often um that

75:51

when they lead people who don't have

75:53

that same insecurity shape whatever that

75:56

predisposition to you know workaholism

76:00

whatever you want to call

76:02

it they struggle to relate you know yeah

76:06

have you have you had that

76:08

sure but I think that's okay have you

76:11

had to work on

76:12

that Leela's

76:15

better I I say that judg but like

76:17

realistically I think we we try to

76:18

maintain a culture of high performance

76:19

and we're like on the screening Parts on

76:21

the front end we're like these are the

76:23

values we have here examples of those

76:25

values to play so it's like if your

76:27

shift ends at

76:28

5 and somebody asks a question that's

76:31

going to take 30 minutes to answer at

76:32

459 what do you do that's an interview

76:36

question we're like and we need you to

76:37

be honest because if you say you would

76:39

work but you would actually be

76:40

dissatisfied you're not going to do

76:42

either of us Justice because you'll come

76:43

in and you'll get fired quickly and

76:44

that'll be hard for you and hard for us

76:47

so like we want you to win at whatever

76:48

you do in life so lela's very big on

76:50

like human first in terms of how she

76:52

does everything that we do in the

76:53

company is like human first than

76:55

everything else you can tell that's why

76:57

like we're yin and yang for this this

76:58

kind of thing um but I think it's really

77:01

just about expectation setting and being

77:04

very truthful and as transparent as

77:05

humanly possible about like this is what

77:07

we expect if you don't like that or if

77:09

your worldview is contrary to this then

77:12

you shouldn't work here because there's

77:13

another company that totally shares your

77:15

worldview and you would do great there

77:17

and there's other people who feel like

77:18

Misfits in the companies that they're in

77:20

and then work all the time and they're

77:21

frustrated that no one else does and

77:22

they're all like telling them they

77:24

should slow down come hang with us cuz

77:27

we'll work we'll respond slack at 5:00

77:29

a.m. on Saturday cuz we're on that's but

77:32

like I just I just hardcore reject there

77:35

is a right way to do

77:37

things in that example you've touched on

77:39

something I wanted to talk about which

77:41

relates to your first book I believe

77:43

offers making offers to people yeah I

77:46

read that you said um if there's one

77:48

skill you have it's making offers what

77:52

do you mean by making

77:53

offers so so uh offers are the terms of

77:57

exchange so I right before I started my

78:01

first gym I went to this weekend

78:03

Workshop to learn how to Market and get

78:06

this this

78:07

2013 it was on Facebook ads and so I got

78:11

lucky so I learned how to run Facebook

78:13

ads in 2013 two weeks before I started

78:16

my gym this is when you're getting Penny

78:18

clicks and you could put a girl with a

78:19

bikini and say weight loss click here

78:21

and it would run and so at this thing I

78:25

hadn't opened my gym yet and the guy was

78:27

like a gym marketing dude and he said do

78:30

you know the secret to sales cuz he

78:32

could see I was wayar over my head all

78:33

the other guys there were gym owners

78:34

except for me and I was like yeah

78:36

because i' never at that point had never

78:38

sold anything I didn't even know the

78:38

word sales was a thing that's how out of

78:40

it what I was and so he pulled me over

78:42

the side and he asked me that question I

78:44

like pulled my notebook out to like

78:45

learn the secret to sales as though it

78:47

was one line and it kind of was he said

78:49

make people an offer they'd be they'd

78:50

feel stupid saying no

78:53

to and I like wrote it down and I

78:55

highlighted it and that actually became

78:57

like a core concept that we do in every

78:59

bu in every business that we have which

79:01

is like how can we make this offer

79:03

better how can we make it more valuable

79:07

and that was why defining value was such

79:08

a key thing because people like provide

79:09

more value make valuable content I'm

79:11

like what does this mean and so we

79:13

boiled down value into four variables um

79:18

and then there's things that enhance

79:19

value but like core variables and then

79:21

things that enhance so like one is like

79:23

what is the overall dream outcome of the

79:25

the customer and so a difference inje

79:28

position is like for guys if I say I can

79:30

help you make more money versus I can

79:31

help you lose weight most guys would pay

79:32

more for the thing that will give them

79:34

more relative status and so in that way

79:37

between two types two categories of

79:39

outcomes this one will be more valuable

79:41

okay cool now within everything and

79:43

let's call it weight loss because that's

79:44

an easy one everyone can understand

79:46

within weight loss every other thing

79:49

between a $5 ebook and a $50,000

79:51

liposuction surgery the difference in

79:52

those prices are the other value

79:54

variables and so the second variable is

79:57

perceive likeu of achievement which is

79:59

if I buy this thing How likely do I

80:01

think I will get the outcome and so if I

80:03

have a surgeon that's going to do this

80:04

liposuction for example and it's the

80:06

first surgery they've done out of

80:07

medical school and there's another

80:09

surgeon that has done 10,000 and has

80:11

10,000 F Stars which one would I be more

80:14

likely to go to the 10,000 festar

80:16

surgery even if it actually takes that

80:18

guy less time to do it how unfair but my

80:21

perceived lik of getting what I want is

80:22

significantly higher so it's actually

80:24

opposite of

80:25

risk those are the things that we try

80:27

and enhance in the offers we try and

80:29

have a very compelling dream outcome try

80:30

and make it very likely that they're

80:32

going to succeed and give it there's

80:33

lots of elements that make someone feel

80:35

like it's likely they'll

80:36

succeed on the bottom half of the

80:38

equation so it's a fraction there's two

80:40

on the top two on the bottom you have

80:42

time delay between when they buy and

80:44

when they get so if someone were able to

80:47

click a button on a website and

80:49

immediately look at their stomach and

80:50

have a six-pack that would be incredibly

80:52

valuable right on the flip side if it

80:55

takes them two years in order to get

80:56

that it's significantly less valuable

80:57

and so for that same reason you have to

80:59

arm russle someone to get them to buy a

81:01

personal training package you have to

81:02

spend an hour and a half to get them to

81:04

buy a 20 pack of trading trading

81:06

sessions whereas women walk into the

81:09

doctor's office to do liposuction and

81:11

drop 20 times that amount of money

81:12

because the time delay is nothing you

81:14

get on the table you wake up and you're

81:15

thin

81:17

right then the last the last variable is

81:20

uh effort and sacrifice which is two

81:22

sides of the same coin so effort are the

81:24

things that you have to start doing that

81:25

you don't want to do as a result of this

81:26

purchase waking up early getting sore

81:30

like in the workout

81:31

example eating Foods you hate on the

81:34

flip side the sacrific are the things

81:36

that you have to give up that you don't

81:37

want to give up as a result of this

81:39

purchase and so that might be sleeping

81:40

in eating the foods you enjoy Margarita

81:43

Mondays whatever and so when you look at

81:45

these variables each of them has a has a

81:47

has a evil twin right so you've got

81:49

perceived like of achievement which is

81:50

the positive and then you've got risk

81:51

which is the negative you've got a time

81:53

delay which is the negative version

81:55

you've got speed which is the positive

81:56

version you've got effort and sacrifice

81:58

you've got ease right and so when we're

82:00

trying to make an offer we try and think

82:01

through each of these elements of value

82:03

and think how can we maximize the upside

82:05

make it super super likely they're going

82:06

to hit it paint the vision that they

82:08

have it and then on the bottom side

82:10

minimize the time delay between when

82:12

they buy and when they get and how much

82:13

they have to do because in a perfect

82:15

world The the moment someone says I want

82:17

that thing that beautiful dream outcome

82:19

they'd be virtually guaranteed they

82:20

would get it it would happen immediately

82:22

and it would be effortless and I think

82:23

that is the perfect ideal that we look

82:24

at in terms of value and as

82:26

entrepreneurs we innovate our way to

82:27

just keep trying to Chisel towards that

82:29

perfect ideal outcome that we'll never

82:30

actually get to the other variables are

82:32

like scarcity if I have one gatorade

82:34

bottle left on planet Earth it's

82:35

significantly more valuable I didn't

82:37

change anything about the bottle itself

82:38

but it's significantly more valuable

82:39

than if there's unlimited Gatorades

82:41

right urgency is if Gatorade no matter

82:44

how many Gatorades there were on planet

82:45

Earth I'll give a different example if

82:47

JK Rowling uh decides that uh she's no

82:50

longer going to sell Harry Potter

82:51

digital copies ever again as of tomorrow

82:54

there will be a lot of sales of the

82:56

digital copy even though there's

82:57

unlimited units scarcity is a function

83:00

of units urgency is a function of time

83:02

and so scarcity and urgency add to the

83:05

value by enhancing those other four

83:07

variables there's more but like those

83:09

are the core things that we look at in

83:11

terms of when we're trying to make an

83:13

offer uh for a business and so that

83:16

becomes very relevant when we're trying

83:18

to increase price uh for a business that

83:21

we take on so I'll give you an example

83:22

we had a PR Company that we invested in

83:24

that was a generic PR Company for like

83:26

small business owners and they had

83:28

really high turn but they had a really

83:30

good sales engine I was like okay like

83:32

there's something here but like I think

83:34

we need a tweet I just really like the

83:35

founder 85% of their customers were

83:38

small business owners and turned out in

83:40

like three or four months 15% of their

83:42

customers bought the most expensive

83:44

package and stayed like

83:46

forever and I was like hey crazy idea

83:50

what if we only served these customers

83:52

and they were people who wanted to get

83:53

fundraising very different than the

83:55

traditional like dry cleaning store

83:56

plumber whatever and so we redid the

83:59

entire business model around finding

84:01

only that Niche we only cold called cold

84:04

emailed people who were in that very

84:07

narrow window were able to 10x our

84:09

prices because we and we got higher

84:11

response rates to the emails than we did

84:13

before because now we were targeting and

84:14

speaking very specifically to an avatar

84:16

and now we could provide so much more

84:18

value to that specific person and so

84:22

that's the maybe if Caleb answer from a

84:24

business perspective like solving that

84:26

equation is probably the thing that I

84:28

enjoy the most because it is how I feel

84:32

like I've unlocked the most value in a

84:34

business which is like what are all the

84:36

what are all the good things this

84:37

business has what are all the things it

84:39

can do okay is there a way that we can

84:41

rearrange it for a specific customer

84:43

that will make significantly that will

84:46

make what we do significantly more

84:47

valuable to them and then that's what we

84:49

try and repackage and when we do that

84:52

that's often times when we get like with

84:54

launch for me I had the knowledge of how

84:56

to help people lose weight have the the

84:59

nutrition plans I knew how to sell I

85:01

knew how to Market but it was only when

85:03

I like rearranged the variables that I

85:05

went from making a few million dollars a

85:07

year in topl line revenue and basically

85:08

no profit to millions and millions and

85:11

millions of dollars a year in topl line

85:13

and bottom line profit simply by

85:14

rearranging the variables and that was

85:16

just so ingrained in me that from that

85:17

point going forward I was like I just

85:19

have to make things that are so good

85:21

that people will feel stupid saying no

85:23

and if we can't get enough people to say

85:25

yes we need to make the offer better and

85:27

to me that's been like the single thing

85:29

that it affects all aspects of the

85:30

business it's the highest leverage thing

85:32

I think you can do in the business which

85:33

is why it was the first book because

85:35

answering the question what do I sell is

85:37

the first book the second book leads is

85:39

to whom do I sell it I got to get leads

85:42

right and that's the second book but

85:43

that affects pricing it affects profit

85:45

affects marketing it affects sales

85:47

affects delivery like getting the offer

85:49

affects everything and it's one of the

85:51

hardest things to change because it

85:52

affects everything but it also has the

85:54

most ability to unlock incredible wealth

85:56

or value in a business and the concept

85:58

there is incredibly transferable when

86:00

you were going through the equation

86:02

sounded in some parts similar to an

86:04

equation we used to have for

86:05

competitions when we were trying to get

86:06

people to sign up to competitions the

86:07

idea when we sort of like a it was an

86:09

equation where on one end little

86:11

investment so just click here and you're

86:13

entered High perception that um you have

86:16

a chance of winning so if there's 10

86:19

prizes and you can see there's 10

86:20

entrance your brain goes okay all I had

86:22

to do was click and then

86:25

um in the competition aspect we thought

86:27

a lot about credibility because that's a

86:29

big factor in competitions like do I

86:31

think anyone's going to win and do I

86:32

trust these people to even give out a

86:34

prize um and it's even the same thing

86:37

and it's even the same thing in

86:41

content when you're thinking about a

86:43

title for your YouTube

86:45

videos five minute six pack abs

86:49

yeah yes is a fantastic equation little

86:51

investment high potential reward

86:53

apparent

86:55

um and that's also yeah there's even

86:58

another thing which I've thought about

86:58

which I've not been able to necessarily

87:01

explain which is why people are more

87:03

likely to click on things I guess it's

87:04

ease when it says things like five steps

87:08

to finding love versus like how to find

87:11

love five steps I guess it's that ease

87:14

Point feels more accessible just five

87:16

steps yeah perceive legga of achievement

87:18

like what's my risk of not achieving if

87:20

there's five steps that feels easier

87:21

than just how- to maybe

87:24

when you um when you think

87:28

about where you are in your journey um

87:32

as an

87:33

entrepreneur and you think about it

87:35

maybe as like Steps how far are you up

87:37

that

87:39

staircase would you not know I was like

87:42

I I felt like that was going to be the

87:44

question that you were going to ask and

87:45

I was thinking I was like I feel like

87:46

every entrepreneur feels like they're

87:47

just getting started like you talk to

87:48

guys in their 70s they're like I'm just

87:50

getting started you know um I mean I I'm

87:53

about to cross a decade of being no I am

87:55

right just at at the decade point for me

87:57

from the first business I started to now

88:00

um so I feel like I've got a few seasons

88:03

left you know if I can keep living uh

88:06

which I'd be stoked about if I can um

88:08

let me ask a different question Caleb in

88:10

the corner who works for you he's your

88:11

cretive director if Caleb said to me no

88:13

Caleb said to you he said

88:16

Alex I want to be a millionaire

88:21

yeah what would you say to him what

88:23

advice would you give to me he says

88:24

listen I've heard you doing all these

88:26

podcasts you're running around I've been

88:27

filming the camera but I've been filming

88:28

I've been listening yeah and this

88:30

millionaire stuff this sounds amazing

88:32

yeah so what advice how old are you

88:35

Caleb 29 what advice would you give to

88:38

29y Old Caleb if he said to you Alex how

88:40

do how do you knowing me how do you

88:41

think I become a millionaire so there's

88:43

a lot of ways to do it it just depends

88:44

on which way you want to go so say first

88:47

off you can stay at acis.com that'll

88:49

probably happen on a long enough time

88:51

Ron just because we're going to get

88:53

really big we're already pretty big and

88:55

we're just getting

88:56

started um so like I I genuinely believe

88:59

that and that's 100% my goals that every

89:00

single person that that we have um

89:03

becomes very very wealthy um because I'm

89:06

going to die and it's not going to

89:07

matter anyways and if everybody else can

89:08

make some too great um so that is a path

89:12

another path is he peels off and goes on

89:14

his own and starts a business of some

89:15

sort and so it depends on whether he

89:17

wants to make the business itself what

89:18

his core skill is which would be like

89:20

media and maybe services around Media or

89:25

using the skill that he has of media in

89:28

an opportunity and get two or three

89:29

other people to maybe co-found it with

89:30

who have other complimentary skills and

89:32

then he just runs that division or

89:34

portion of the business uh within the

89:36

larger context and that's like a classic

89:38

question of like I'm really good at

89:40

making wallets like what do I do it's

89:42

like well you can continue to make them

89:45

and then when you can't make as many as

89:46

you have demand because you're so good

89:47

at it you can either raise the price and

89:50

just continue to keep raising the prices

89:52

until eventually become Versace of of of

89:54

wallets and you make tons of profit but

89:56

you don't have tons of units and that's

89:58

okay and you're a luxury brand or you

90:00

put on the put on the business owner hat

90:02

and you say okay how do I mechanize the

90:04

wallet building process and I become

90:06

more busy and so I think it's like do I

90:08

want to be the artist or do I want to be

90:10

the entrepreneur both of them are fine

90:12

it depends which one you feel like

90:14

you're more naturally inclined to or

90:15

have a higher likelihood of success

90:17

doing I like the game of business I've

90:19

played lots of different games in terms

90:20

of Industries like I like the game

90:22

overall I don't feel like I have a

90:23

particular are like I don't think I'm

90:24

really good at any aspect of business I

90:27

feel like I've been decent enough to not

90:29

make one of them the constraint like I'm

90:31

not a great copywriter but I'm good

90:33

enough that that's not going to be the

90:34

limiter like I'm I'm good enough like

90:37

I'm good enough at hiring that I can

90:39

make sure that that's not the limiting

90:40

factor right and so that's kind of how I

90:42

think about it in terms of business

90:43

growth overall and so it' be the same

90:44

thing with Caleb is like we have to

90:46

identify what the constraint of the of

90:47

the system is and then

90:54

so this is one of my favorite topics

90:58

um many skills like 1 plus 1 equals five

91:03

when you put them together so let's say

91:05

you have somebody who's really good at

91:06

math in the beginning that as a skill

91:08

not super monetizable right okay well

91:10

then you learn bookkeeping okay well now

91:12

you had a proclivity for math but you

91:14

learned something that um has value in

91:16

the business World okay then you learn

91:17

to you know you get your CPA now you

91:18

become an accountant okay more valuable

91:21

um then you start studying around uh tax

91:24

law and insurance and you're like oh

91:27

significantly more valuable then you

91:29

learn how to how Capital markets work

91:30

and how debt markets work right and and

91:33

you understand how mergers and

91:34

Acquisitions work and all of a sudden

91:35

you're a CFO and then you learn how to

91:38

sell and promote a little bit all of a

91:39

sudden now you're a rain maker and so

91:42

you still needed to be good at math but

91:44

when you stack these other skills on top

91:46

of it the original math skill becomes

91:49

significantly more valuable when you

91:51

have these skills on top but each one

91:52

kind of requires the one before which is

91:54

why one of the things I hate about kind

91:56

of the entrepreneur World a little bit

91:58

is like they'll learn something new and

91:59

then poo poo the thing before it's like

92:01

I'm not upset up the teacher who taught

92:02

me arithmetic as I learned algebra one

92:05

was necessary for the next and so um as

92:09

entrepreneurs a lot of times it takes I

92:12

think the self-awareness to say like

92:14

where am I at on my skill stacking

92:17

Adventure right and each skill every

92:20

skill you add to your skill tool belt

92:22

makes the rest of your skills more

92:24

valuable which is why I think it's so

92:25

cool which is why I'm such a big

92:27

advocate for Education overall and

92:29

that's I mean mission of acquisition

92:30

knon make business accessible to

92:31

everyone um that's why we put all this

92:33

free stuff out there is because like if

92:34

we can give people enough skills they'll

92:35

be able to stack them on their own and

92:36

then just achieve whatever they want in

92:38

a totally different way if you'll allow

92:39

me to go there it's like you look at

92:40

Jay-Z right maybe he was somebody who

92:43

naturally had Rhythm right and so then

92:46

all of a sudden he learned how to rap

92:47

okay took his rhythm put in a WAP okay

92:49

and then he made his first CD okay and

92:53

then he learned how to promote o

92:55

significantly more valuable and then he

92:57

learned how to make a label and then he

92:58

learned how to recruit other artists and

93:00

so he still needed to learn how to know

93:02

how to promote the other artists if he

93:05

didn't know how to promote at all he

93:05

wouldn't have been able to do it but

93:07

once he had the label he got

93:08

significantly more leverage on the skill

93:10

of promotion and he could recognize

93:12

people because of his skill in rapping

93:14

and Rhythm and so like each of these

93:16

skill stacks on top and then eventually

93:18

he he pinnacled into Beyonce as his as

93:21

his top skill I'm just kidding um like

93:24

where's he going um but no but like

93:26

that's the idea so like it and that's

93:28

why I'm just like learn the skill find

93:30

the next skill and and the nice thing is

93:32

that it doesn't even matter how

93:34

disperate the skills are like if Jay-Z

93:36

is really good at math and understands

93:37

Capital markets and understands the

93:39

label those combine into another cool

93:42

malange right a little French word like

93:43

mix of skills that's like unique to

93:45

Jay-Z and the longer you play the game

93:48

the more skills you get and the more

93:49

unique your mix of skills is and that to

93:52

me is like the coolest part about

93:54

business and just like education in

93:56

general I I I stumbled across a bit of a

93:59

a similar but maybe adjacent idea um in

94:02

my career where when I learned when my

94:05

company went public on a Stock Exchange

94:08

in um Europe I then learned from an

94:12

investment Bank when we were having the

94:13

meetings with the banks we went on this

94:15

road show met 20 different investment

94:16

Banks we considering an IPO um in

94:19

another country they told me that our

94:21

business would be worth four times more

94:25

if it was just on a different stock

94:26

market if you move it to the NASDAQ the

94:28

exact same business would be worth four

94:31

times more which meant that my net worth

94:33

would be Forex just by taking the exact

94:35

same business and moving it to a

94:37

different Stock Exchange and I thought

94:38

about that a couple of years later when

94:40

I was thinking about the skill set that

94:42

I had acquired over my career which was

94:43

this skill set of marketing and social

94:45

media and Entrepreneurship and I was

94:47

thinking you have to not just have the

94:51

skill but know what Market to apply it

94:54

to and what ended up happening I've

94:56

never told this story before but

94:59

um I looked I looked for an industry

95:03

where my skill set was in least Supply

95:05

but highest demand and return the

95:07

greatest and it turned out that industry

95:10

in terms of social media marketing and

95:11

storytelling I felt was most in demand

95:15

and would return the greatest

95:17

value for companies that were about to

95:20

IPO because essentially when you're

95:22

going to IPO if you have a good story it

95:24

can swing your valuation by hundreds of

95:27

millions or in the case of the first

95:28

company I worked with when their IPO

95:30

listed at 3 billion um billions yeah and

95:33

so my skill set of social media and

95:35

marketing I could do what with it I

95:37

could go help a local gym and get paid a

95:39

th000 bucks or I could go help a company

95:42

that was in the leadup to an IPO that

95:43

was you know where I where I can

95:45

potentially had hundreds of millions in

95:46

value and take 7 million yeah as part of

95:48

an equity deal so upon leaving my first

95:51

company the equity Arrangement that I

95:53

had was

95:54

valued somewhere between four uh I'm

95:57

going to say between depends because the

95:59

share price fluctuated but I think on

96:00

the day of the IPO the equity that I got

96:02

for for the 9 to 12 months work that i'

96:05

done was worth in the region of 7 to8

96:08

million

96:10

right nine months work yeah basically

96:13

freelance yeah you know same skill stack

96:16

but apply to an industry that would

96:18

would pay me more for the same skills um

96:21

and so I thought a lot about that and

96:22

that's ultimately why we started our

96:23

company which is now called flight story

96:24

we have um probably the time of the

96:26

Airing there about 100 people we started

96:28

the company about about a year and a

96:29

half ago oh crazy and that's basically

96:31

that's applying the skill set we have to

96:33

Industries where that need it and we

96:35

started out in the IPO Market did a

96:38

little bit of work in this um biotech

96:39

Market um and now we've kind of

96:41

broadened out but people don't think

96:42

about that a lot you're like my skill

96:44

set where is it in highest demand and

96:45

can pay the most 100% I thoroughly agree

96:49

with everything you just said I also

96:51

think that that's a skill

96:55

I wish some just said it to me oh yeah

96:58

totally and that's the like information

96:59

to be like the most like uh you know the

97:02

biggest debt one of the things I um I

97:04

love saying this but like the biggest

97:06

debt all of us pay is ignorance and so I

97:08

I heard this close at this pitch years

97:11

ago and this guy got on stage and he and

97:13

he was like Hey ma'am he was like how

97:15

much do you make she was like $50,000 so

97:17

he wrote $50,000 on the Whiteboard and

97:20

then he wrote A Million Dollar on top of

97:22

the 50,000 and he subtracted raed it and

97:24

said $950,000 he said you pay life

97:27

$950,000 every single year for not

97:29

knowing how to make a million dollar a

97:31

year and it was a crazy concept he was

97:34

using it to close the audience but I

97:36

like the most expensive thing that all

97:38

of us are paying for is the information

97:39

that we don't know and that's like both

97:41

frightening and also incredibly exciting

97:43

because

97:44

like fish in the best ponds right like a

97:47

good fisherman knows where to fish and

97:50

everybody can put a hook and a and a

97:52

thing and stick it over the water but

97:53

like the best fishermen know where and

97:54

when Etc and that's exactly the story

97:56

that you said was like I had the hook

97:58

and I had the The Reel and all that

97:59

stuff but like I went to where the best

98:01

where the best fishing was and like to

98:03

me that's skill same work yeah same

98:05

amount of time same Rod more

98:08

zeros one of the things in the first

98:10

book is like you want to like sell

98:12

better customers so if you want to sell

98:15

better customers yeah like the it's the

98:17

exact same thing you just said which is

98:19

like if I were to do cro work so

98:21

conversion rate optimization for a

98:22

website that's e-commerce

98:24

and I work for a store that's doing a

98:25

million dollars a year and I say cool

98:27

I'm able to increase your conversion

98:28

onite by 20% Okay cool so now that's

98:31

doing $1.2 million a year I made

98:33

$200,000 in value and maybe I can get

98:35

10% of that I get 20 grand okay cool I

98:38

do the same work to a business doing

98:39

$100 million a year I make them $20

98:42

million for my 20% bump and I get 10%

98:45

that and I make $2

98:47

million 20,000 2 million 100x same work

98:52

to your point and to me me that's skill

98:54

like to know that simple simple fact

98:57

like I had this tweet that went super

98:59

viral which was uh solve rich people

99:01

problems they pay

99:02

better lot of controversy around that um

99:06

but it's true and so find the people and

99:11

a different way of saying it is find the

99:13

people who value what you have the

99:15

most and I'm sure you've heard this have

99:17

you heard the story of the the father

99:18

and the son with the car no okay so

99:22

maybe I have it's good it's good so

99:25

there's there's a father who givs his

99:26

son an old beat up car and he says you

99:30

know hey I don't know if it drives or

99:32

not but you can take it down to the um

99:35

the dealership down the street see if

99:36

you can trade it and get some money he's

99:37

like okay so he goes down the street

99:39

goes to the dealership they say we'll

99:41

give you a th000 bucks for it and he

99:43

come you know hears him out comes back

99:45

home he's like Dad they say give me a th

99:46

bucks he's like okay he's like go to the

99:48

impound yard where they you know break

99:50

the cars up just for Metal He's like see

99:51

what they'll give you goes there and uh

99:54

the guy's like ah I don't know this

99:55

might be 500 bucks of metal kid like you

99:58

know comes back home he's like Dad you

100:00

know he said it was going to be500 he's

100:02

like okay he's like hey go down the

100:04

street to that uh that antique uh

100:07

dealership see if they've got anything

100:08

that use car lot he's like okay so he

100:10

goes down there talks to the guy comes

100:13

back home super EXC he's like Dad you

100:15

won't believe it he's like this is a

100:17

historic car there's only like 10 of

100:18

them left he's like it's worth

100:21

$100,000 and so the father smiles and

100:24

he's like and the lesson I want you to

100:25

know is that it's not necessarily who

100:28

you are but the people that value you

100:29

the most and so you can talk to

100:31

different people and go to the people

100:34

who value you and I just I I love that

100:36

story because from a it's a Hu it's a

100:38

huge business story in terms of like

100:41

sell sell where the fish are where the

100:43

big fish are like if you if you're going

100:44

to go Hook Fish go to go where the

100:45

whales are um it takes a same work but a

100:47

lot of it's just belief people don't

100:48

think it's possible and so a lot of

100:49

times you have to just keep leveling up

100:51

and you sell your first $10,000 thing

100:52

you sell your first $100,000 thing sell

100:54

your first multi-million dollar package

100:57

you realize it's the exact same thing

100:59

it's just so maybe if I'm list if

101:01

anybody's listing right now it is the

101:02

same thing it's the exact same thing and

101:03

sometimes it's

101:05

easier it's normally easier like you

101:08

know you've seen that Meme that says

101:10

like uh so what exactly am I going to be

101:12

getting for this $50 thing right and

101:14

then it's like uh $50,000 clients like

101:16

wire sent yesterday like what do else do

101:18

you need like it's and that's totally

101:20

true um but I think there's a skill in

101:23

understanding where to

101:25

fish certainly a skill um information

101:29

it's information it's even knowing that

101:31

there was another Lake over there in

101:32

part and and that's why like listening

101:34

to conversations like this is so

101:35

valuable for people because it lifts a

101:37

curtain and you go what the [ __ ] you

101:38

guys were behind here the whole time

101:39

partying that's what my business life

101:41

has been like it's like gradually like I

101:44

think I heard Kevin Hart describe on Joe

101:46

Rogan one time where he said there's

101:48

this other room yeah where these people

101:50

are playing this other set of money

101:51

games yeah and then when you get in that

101:53

room you get you're almost pissed off

101:55

that nobody told you this room existed

101:56

but then there's another door yeah yeah

102:00

and then you get through there maybe a

102:01

couple of years later and you find these

102:03

other people these [ __ ] billionaires

102:04

that are playing another set of games

102:05

and you're going what and they're

102:07

chilling yeah they're just smoking

102:10

cigars they're not even doing any hard

102:11

work can you go tell me the games that

102:12

you guys have been playing in here yeah

102:14

and then again the frustration is and

102:16

that's kind of what I feel like in my

102:17

business life it's been like where at

102:19

the jump I'm charging I don't know I

102:21

remember my first we found our first day

102:23

from 2014 charging I remember the

102:25

package we did gold silver and bronze it

102:27

was like you know like $200 package for

102:29

like support and then $500 and then the

102:32

gold package where we threw everything

102:34

in for $1,000 and I remember my one of

102:36

my first clients um accepting that and

102:39

then I think today like the only

102:40

difference okay there's skills that have

102:42

increased but information is the big

102:44

thing knowing how to do it you know

102:48

um when you think about curtains that

102:50

have lifted that have really shifted the

102:53

games you play from a value money

102:55

perspective like where someone's Turned

102:57

the Lights On You [ __ ] of course yeah is

102:59

there anything else that comes to

103:01

mind like big macro games yeah um I

103:06

think a big you know when I the

103:09

big I will answer it with the stair

103:11

steps of how each order of magnitude

103:14

change in my income so when I went from

103:17

being an employee to self-employed I

103:18

went from making four figures a month to

103:20

five figures a month and that was for me

103:22

just like like I'm now in control the

103:25

level above that was I started having

103:27

other people who worked for me I didn't

103:28

even know that was possible sounds crazy

103:29

like I was like you can hire people

103:31

because my my members in my gym were

103:32

like you know other people can work here

103:35

I'm like cleaning the floor and doing

103:36

the marketing and teaching class they're

103:38

like I was like didn't think about that

103:39

bottleneck right and then went to six

103:41

figures a month right and then from

103:43

there stayed there did the turnaround

103:46

business still had the same

103:47

organizational structure had another

103:49

degree of Leverage and so the next

103:51

degree of Leverage was that I started

103:52

licensing so digital right so the cost

103:54

for you cost of goods is basically

103:55

nothing and then that's when things

103:57

started skyrocketing that got me to

103:59

seven figures a month and then eight

104:01

figures a month was using leverage

104:02

through Capital which is where you know

104:04

we're at now and I would imagine that

104:06

nine figures a month will probably be

104:08

some level of technology or more uh

104:11

media on my side but all of these things

104:13

are about leverage and so this is like

104:15

one of my favorite Topics in the whole

104:17

world but if we Define leverage as the

104:19

difference between what you put in and

104:20

what you get out so if you have a lot of

104:21

Leverage you put a little bit in you get

104:22

a lot out if you have no leverage or low

104:24

leverage you put a lot in you get a

104:25

little bit out and a lot of times people

104:26

who are listening to this and are not

104:28

making as much money as they want

104:29

they're putting lots of input in and not

104:30

getting a lot out they have low leverage

104:32

opportunities and so understanding how

104:35

to get more for what you put in is the

104:38

game overall and so the first level that

104:41

I described was Labor it's just work

104:44

first I was working for someone else

104:45

then I worked for myself then I got

104:46

other people to work for me first level

104:47

each of those levels was more leverage

104:50

above that I had media which is the

104:52

thing that I was licensing out so

104:54

another degree of Leverage I made it

104:55

once and I could license it out Infinity

104:57

on top of that I have capital I can take

104:59

capital I don't have to sacrifice time

105:01

in order to get something for it so it's

105:03

high input output um above that would be

105:05

some sort of Technology you build the

105:07

code once in theory obviously you

105:09

continue to improve the code but

105:10

theoretically you build the thing once

105:11

and then a million people can use it and

105:13

so you want to Stack as many types of

105:16

Leverage as you can and as much of them

105:18

as you can because like Joe Rogan also

105:20

has a show and somebody else has a

105:21

podcast they both technically are using

105:24

media as their as their as their vehicle

105:26

for leverage but he has significantly

105:27

more of it so it's not just like I'm

105:29

goingon to use all these right yes but

105:32

it's also how much and to what degree

105:33

but like Facebook had other people's

105:35

money he used media had other people's

105:37

work Max leverage Amazon same thing

105:39

right they used every element of

105:41

Leverage and they maxed all of them out

105:43

and um that's that's at least the the

105:46

curtain that and nval talks about this

105:47

if you're familiar with Nal rant um he

105:50

talks about these things as the as the

105:52

the P the elements of Leverage or four

105:54

types of Leverage um and understanding

105:56

that for me has kind of been a blueprint

105:58

for wealth overall and then you know

106:01

Capital there's degrees of capital right

106:03

like you first you can get friends and

106:04

family to give you money then you can

106:06

get you know institutional money and

106:08

then you can get public money right

106:11

which you know you saw like the IPO

106:12

money like the fact that the NASDAQ was

106:13

Forex uh the dorf exchange is that where

106:16

it was right um there's just

106:18

significantly more capital in that

106:20

market and so it same work more zeros

106:23

um and so I love this topic because I

106:27

think that that's fundamentally like the

106:28

people who move faster in life don't

106:30

actually move faster they get more for

106:32

every

106:34

step are you happy I'm stoked Max Stoke

106:40

you know not asked this question for for

106:42

a long time but thought I'd ask it

106:44

because it's kind of similar to what

106:45

we've um been talking about today but if

106:48

um if happiness was like a list of

106:50

ingredients and it was a recipe

106:53

is there anything missing from your

106:54

recipe that would make you even more

106:56

happy and sometimes that recipe is about

106:59

balancing the ingredients you need two

107:00

eggs and 100 eggs yeah one cup of flour

107:05

yeah um for me it's always been about

107:07

autonomy I just be able I want to I want

107:10

to be able to do what I find interesting

107:12

um and that's that's been the core of it

107:15

and what I do will change but the core

107:19

of having the freedom to do it has been

107:21

the center of it and so for me I don't

107:23

think my freedom has I mean not in

107:25

recent history my freedom hasn't

107:26

fundamentally changed in any way and so

107:28

I would say that I'm the same level of

107:30

contentedness as I was last year um but

107:33

I find

107:34

engagement in what I do and that that's

107:38

that's I'll give you my definition of

107:40

Happiness which is doing what you like

107:42

to do with people you like and doing

107:44

that as much as you possibly can and

107:46

that's my simple

107:50

definition interesting

107:54

I I've tried to I've tried to figure

107:55

that out that like professional like I

107:57

guess it's not even a professional thing

107:58

but I've tried to figure out and

108:00

summarize that's a wonderful summary the

108:03

the place i' got into is if you're

108:04

surrounded by people you love you're

108:06

doing something that challenges you

108:07

which I think is an interesting one

108:09

you've kind of encapsulated it just by

108:10

saying things you like but yeah that

108:12

challenges you gives you a sense of

108:13

forward motion and

108:14

progress um towards a meaningful goal

108:17

and that's a subjective thing could be

108:18

raising a kid or making a million

108:20

dollars whatever I think that's kind of

108:22

what I call it Mya guy if I find if I'm

108:25

in that state and it's a state um I

108:28

think I'm

108:29

happy we have a closing tradition on

108:31

this podcast where the last guest asks a

108:33

question for the next guest

108:35

oh without knowing who they're going to

108:37

be asking it

108:39

to I'm terrified why why does everyone

108:42

get so scared when I do this like aren't

108:44

my questions scary

108:46

like everyone someone's going to like

108:48

try and stick the neck like okay I'm

108:49

going to think of

108:51

it what going to get we have these um

108:53

conversation cards where we've taken all

108:54

the questions written in this book and

108:55

we've made them into cards so people can

108:57

play at home um I'm actually gonna slide

109:00

them over to you and just ask you to

109:01

pick one conversation card okay um I've

109:04

picked a couple there that I think are

109:05

stitch-ups so go from the middle okay

109:09

see what else we got here and the

109:10

question is what are the failures you

109:12

cherish the

109:17

most I'm going to give

109:20

two I am very grateful that I hated the

109:24

job that I had because I think that I am

109:27

the type of person because of how hard

109:28

it was for me to quit that if I had

109:30

liked a job enough I don't think I would

109:32

have left and I think I would have gone

109:34

to the business school and done the next

109:35

thing like if I had had a job worked for

109:38

people whatever it was that I enjoyed

109:39

enough just enough I might not be where

109:42

I am now and I think that I cherish the

109:45

fact that it was so miserable that it

109:47

got me to

109:49

change like that that that job changed

109:52

my

109:53

life from a like Soul

109:57

perspective um going through what I did

110:00

with Leila I cherish those times

110:06

because a lot of people live worst case

110:09

scenario years into their marriage years

110:11

into their relationship and then they

110:12

kind of like see what the other person

110:13

is made

110:15

of I got to do that before I married the

110:18

person and so there haven't been any

110:21

surprises since then and it's something

110:22

that's like shared misery to a certain

110:26

degree but like spiritual strength or

110:28

spiritual whatever you want to call it

110:30

um I know she's got my back and there's

110:33

an element to that story that I didn't

110:35

tell but when we really needed money at

110:38

one point I flew Leila out to do this

110:40

launch I couldn't go with her and I

110:43

actually I don't want to say broke up

110:45

with her but I was like I can't do this

110:47

right now and so for 28 days we were not

110:51

together and

110:53

most girls people would probably been

110:56

like screw this

110:58

guy um but instead Leila set the

111:01

all-time record for a launch that still

111:04

hasn't been

111:05

broken

111:09

and when she came back I was like she

111:12

stood tall when everything in my life

111:14

was crumbling around me and she like

111:16

made it happen and I knew that wherever

111:18

I wanted to go I needed someone like

111:19

that with me and so I cherish

111:23

the failures that of that entire season

111:25

because there were many um because I

111:27

wouldn't know what I have today if I

111:31

hadn't been through those tests with her

111:34

then man that's beautiful in the Diary

111:37

of a CEO we have hundreds of questions

111:39

that have been left by our guests and

111:40

we've put them on these cards and on

111:44

these cards you have the question that's

111:47

been left in the dire of a CEO the name

111:49

of the person who wrote the question and

111:51

if you turn it over there's a QR code if

111:54

you scan that code you can see which

111:57

guest answered the question and watch

111:59

the video of them answering it every

112:01

time I've done this podcast and every

112:02

time we've asked the kind of questions

112:04

we ask here I feel a tremendous sense of

112:06

affinity to the guest and our aim with

112:08

these cards is that you can create that

112:10

sense of connection through

112:12

vulnerability at home with the people

112:14

you love the most and I have some good

112:16

news for you as of today you can add

112:19

your name to the waiting list to be the

112:21

first in line to get your own set of

112:22

conversation cards at the conversation

112:26

cards.com we have a another question

112:28

which is the question that people leave

112:29

in the book I thought I just nailed it I

112:31

thought that was it I thought this is

112:33

the new tradition we talking about the

112:34

old tradition one last question Alex but

112:37

you did nail that so I'll be honest you

112:39

stuck that Landing um when do you feel

112:42

the most emotionally connected to

112:44

yourself literally my like heartbeat

112:47

thought was when I'm working like the

112:49

first heartbeat thought and then like if

112:51

I had to be really specific when I'm in

112:53

the throws of writing um I had a a

112:57

writing scholarship coming out of high

112:59

school I uh was the vice editor of the

113:01

newspaper I was the editor-in chief of

113:03

the literary magazine when I was in high

113:04

school I've enjoyed writing um it's one

113:07

of those things that for me like you

113:09

said like challenge like writing is a

113:12

thing is a monster that only gets

113:13

stronger and stronger and you get better

113:15

and better at writing and you see the

113:17

flaws in your writing the better you get

113:18

at writing and so it always feels like

113:21

it matches the difficulty matches my

113:23

ability at all times and so it's it is

113:25

the thing that I experience the greatest

113:28

degree of flow in the most

113:33

regularly makes a lot of sense answers a

113:36

lot of questions that we talked about

113:37

earlier on as well Alex thank you so

113:39

much for your time um and being here

113:41

it's been an incredibly diverse and

113:44

enlightening and honest and vulnerable

113:48

and inspiring and soul filling

113:51

conversation in so many respects and um

113:54

I I know for sure you're just at the

113:55

very start of your journey I asked you

113:56

about the staircase I know that you've

113:58

just got one foot on the first step and

113:59

I think it's going to be incredible to

114:01

watch um the next couple of seasons of

114:03

your life because you're destined for

114:05

incredible things there's absolutely no

114:06

doubt in that so thank you Alex

114:07

appreciate your time I appreciate that

114:09

thank you those kind

114:11

words I've now been a Hu Drinker for

114:14

about four years roughly so much so that

114:17

I ended up investing in the company um

114:18

and I play a role on the board of the

114:20

company but they also very kindly

114:21

sponsor the podcast and to be honest

114:23

I've never said this before but hu

114:24

believed in this podcast before anybody

114:26

else the CEO Julian um told me before we

114:29

even launched the podcast how successful

114:31

it would be and that hu would back it

114:33

and I absolutely have a huge amount of

114:34

gratitude for them for that support but

114:36

an even greater sense of gratitude for

114:37

the fact that they've helped me stay

114:39

nutritionally complete throughout the

114:41

chaos and hecticness of my tremendously

114:43

busy business schedule so if you haven't

114:45

tried out hu which I hope most of you

114:46

have at least given it a go by now try

114:48

it out it's an unbelievable way to try

114:50

and stay nutritionally on course if you

114:52

have a hectic busy schedule and let me

114:55

know what you think send me a tweet and

114:56

a DM tag me let me know what you think

114:58

quick one as you guys know we're lucky

115:00

enough to have blue jeans as a sponsor

115:01

and supporter of this podcast for anyone

115:03

that doesn't know blue jeans is an

115:04

online video conferencing tool that

115:06

allows you to have slick fast good

115:08

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115:10

those glitches that you'd normally find

115:12

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115:15

know the ones I'm talking about and they

115:16

have a new feature called Blue Jeans

115:18

basic which I wanted to tell you about

115:19

blue jeans basic is essentially a free

115:21

version of their top quality video

115:23

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115:25

immersive video experiences you get that

115:27

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115:29

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115:32

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115:34

comes with High Fidelity audio and video

115:36

including Dolby voice they also have

115:38

expertise grade security so you can

115:40

collaborate with confidence it's so

115:42

smooth that it's quite literally changed

115:44

the game for myself and my team without

115:46

compromising quality at all so if you'd

115:48

like to check them out search blue

115:50

jeans.com and let me know how you get on

115:53

DM me tweet me whatever works for you

115:56

let me know how you find it

116:00

[Music]

Interactive Summary

This transcript features an in-depth conversation with entrepreneur and investor Alex Hormozi. Hormozi discusses his early life, his difficult relationship with his father, and the pivotal moments that led him to transition from a corporate career to entrepreneurship. He shares stories about the hardships of building his business, the crucial support of his wife, and his philosophy on value, making offers, and the importance of resilience. Hormozi also reflects on his perspective regarding life, death, and the nature of success, emphasizing the need for autonomy and the power of focusing on input-output frameworks.

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