The Man That Makes Millionaires: How To Turn $1,000 Into $100 Million!: Alex Hormozi | E235
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I'm going to say some stuff that's going
to bother some people people who are
listening to this and are not making as
much money as they want they have to Mr
Alex Heros the100 Million Man ult
preneur investor and philanthropist
taking the Internet by storm this guy
really really does understand how to
build a business I was 22 I had done
everything that my dad had wanted me to
do and I was looking out from the condo
that I had been able to buy with this
job that I had and um I always hoped I
wouldn't wake up the next day I cherish
the fact that it was so miserable that
it got me to change pain motivates sign
iFly faster and stronger than pleasure
does if you are angry use it if you are
sad use it or it uses you I didn't know
whether I would succeed but I did know I
wasn't going to stop right around that
point is when I met my wife and then she
just changed my life how did she change
you
like didn't think we were going to go
here
um she just she believed in
me she stood tall when everything in my
life was crumbling around me I was like
dead broke in her parents house and I
was like I I think you should leave
me she pulled my chin towards her and
she was like I would sleep with you
under a bridge if it came to
that 6 months later I have $3 million in
the bank account all of that was the
first N9 months of our relationship for
have that kind of belief was was
very it was deep for
me and I think that's what most guys
want truly
what makes a really good entrepreneur
leer I'll answerer this differently than
I have in the past and I'm going to tell
a story that hopefully people don't take
the wrong way but I had a
cat before this episode starts I have a
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thank you and enjoy this
[Music]
episode
Alex I spend several hours consuming all
of your content across multiple channels
what is the aim what is the mission what
is the the intent
if you were to try and summarize the
content you're producing and the value
you're trying to add and to who are you
trying to add it
to to make business accessible for
everyone that was the mission of the
company and so our whole idea
was we'll put everything out there uh
for free so no pay walls so there's like
we have courses on the site the books I
have for 99 cents um so that anyone can
get them and you know we'll continue to
produce as much as we can
and we share the learnings that we have
from our portfolio companies in order to
keep the stuff that we are putting out
there relevant new fresh Cutting Edge
because this is what's working today and
by doing that it also brings other
companies to us because they get value
from the stuff and our goal is always to
hopefully provide more value to a
company before they've ever spoken to us
um like kind of pay for ourselves as in
advance is kind of like the thought
process even though we're buying in um
and that's that was kind of the thesis
when we started it I didn't know if it
was going to work uh but it seems to
have gone pretty well uh and it was just
kind of just like if we just give and
keep giving and keep giving we just
focus on the value and delivering to the
audience um it'll come back eventually
what are you giving them and who are you
giving it
to entrepreneurs at all stages um we've
surveyed the audience 25% of the
audience uh has a business 75% does not
have a business but wants to start a
business and so that's just kind of
overall um and then within that 25% then
it just kind of categories all the way
up to you know business is doing 100
million plus a year and so it's everyone
and so we try and our one of the things
that we talk about is like going wide
and deep it's like how can we figure
something that is relevant to somebody
who's you know launching their first
product and also make it accessible or
interesting to somebody who's launching
a new product line within a division of
their conglomerate right I'm just trying
to think about both people at the same
time which becomes more challenging but
it's also kind of fun it's kind of like
a funnel isn't it in some respects um
that's EX exctly what I saw from your
content you're you're making great
content that's helping people that are
at the start of their Journey or you
know 100 employees deep into their
Journey trying to figure out how to
scale you're making content that's
bringing down some of the barriers
whether psychological or practical to
enable them to reach whatever dream they
have let's go way Upstream
then what do I need to know about you to
understand the life you've LED take me
way back to your childhood in the early
context both parents are IM immigrants
to the US uh mother was born in France
came here father was born in Iran um
they met in medical school in Europe uh
and then my mother brought him back with
her to the US and then uh they had me
and uh they split my mom had a lot of
demons she had a lot of things she
struggled with when I was coming up so I
pretty much was raised by my dad uh had
no siblings it was just me and my dad
for until I was about 15 um he got
remarried it was a short s in terms of
uh how long I was like kind of in the
house you know like right at that stage
just when you can drive and I was kind
of on my own almost at that point um as
soon as I could work and drive I was
kind of out of the house um and then
from
there did the thing that most people try
and do which is uh I I I worked hard at
school mostly because I just didn't want
my dad to be upset with me which was uh
the main driver for most of my
achievement in my career for the first
half um was all just trying to gain his
approval um did all the things that I
thought he would want me to uh got a job
at a Government Contracting uh
consulting firm a defense Contracting it
was space cyber and ISR uh so it's
intelligence surveillance and
reconnaissance uh for the military
sounded really cool was less cool when
you were in it um and I was very very
sad um at that point in my life and so
it was very much like I didn't I always
hoped I wouldn't wake up the next day um
and it truly you really mean that
100% 100% because I remember when I was
looking at um a lot of people have like
rock top moments sorry Rock Bottom
moments I think I had more of a rock top
moment which was um I was
22 I had done everything that my dad had
wanted me to do at this point I was
looking out from the condo that i' had
been able to buy with this job that I
had and um I was like is this it in the
whole time I just really didn't enjoy my
life um and it was just you know not
wanting to wake up and it
was the the decision
to leave Baltimore which is where I was
from to quit that path to decide to
start a business of my own was still to
this day the hardest thing I've ever
done by far all the things we've been
through to to build what we have the
hardest decision was taking the leap for
me uh and it was because like I knew
that my dad
so much wanted me to do what I was doing
because he was so happy that I was doing
everything he wanted me to do at that
point and I had told him over and over
again that I wanted to do this other
stuff and he's like yeah like later you
know later um and so I knew that it
would probably put a big dent in our
relationship um if I left but for me it
was actually confronting the fact that I
didn't want to be alive anymore which
was the thing that gave me enough
courage or whatever you want to call it
to actually make the decision to leave
home and so I started driving across the
country I mean it took me six months to
do this like when I between when I
decided I really wanted to do this and
when I actually did it took me six
months and I called him when I was like
halfway across the United States and I
was like I'm going to California I'm
gonna open a gym I'm going to get into
fitness and he was like why are you so
extreme and he like lost it and then we
didn't really talk much for a long time
when you
started realizing that your life
um was one where you didn't want to wake
up in the morning when you had that job
in management consultancy MH did you
experience suicidal ideation is that
what you're saying when you say I don't
want I didn't want to wake up into my
life every day it was never like I've
never had a like this is how I would
kill myself nope never had that I just
always like the idea that I could not
wake up the next day sounded
good when you look back in hindsight
from that moment backwards what are the
series of decisions or the the the
things that led you to find yourself in
the position and I asked that because
there's a lot of people that can
probably
relate and and there's probably quite a
consistent set of frog pads or stones
that one has Walken down for whatever
reason that leads you to a position
where you go what the [ __ ] whose life is
this I think the like the on line
summary for me was that like I felt like
I had to let my dad's dream die for mine
to live and I felt like my entire life
it had always up to that point had been
like go to the school do these studies
you I mean it's it's a common thing like
it's not like I had something that a lot
of people don't have many people and to
be fair I'm very grateful for the skills
discipline Etc that that instilled in me
um because I think you you you have the
the hard hand of an authoritarian um
parent when you're growing up and it
teaches you a lot of skills and then you
know the flip side is if you have a very
less aair parent like you never learn
those skills which then benefit you
later so you know who knows um but for
for me
um I knew that he just wanted me to be a
doctor that's what he was that would
have been his dream I went to school as
Premed um and then I I was like even
changing my degree from Premed to just a
business degree was like a huge deal um
but he was okay with that as long as I
followed like the business path and so
when I did my two years of consulting
which is kind of the typical like two to
four years you do Consulting and then
you apply to go to business school
um when I was going through that process
I was answering the question for like
the Harvard NBA and he was like how will
Harvard NBA help you shorten long-term
goals and I sat there for like two days
trying to answer the question and I was
like it just isn't I want to start a
business and so that was when I kept
trying to you know start that
conversation with my dad and it just
wasn't really happening um and so that's
what that was kind of the breaking point
for me was like I just felt terrible
about my life and I didn't didn't like
the way it was going
and I for me it was such a key point
because the biggest line of reasoning I
had for myself in order to convince
myself to in front my father or at least
disappoint my father or the version of
myself that he wanted me to be was to
say that like I have to be comfortable
dying in his
eyes and a lot of people
like and many people might think that is
hyperbole but for me it was very true
like I I knew that I would die in his
eyes and I
did um to give you
context so I had the gyms and I opened
up multiple after that got to about six
locations sold those started a gym
turnaround business did that for 2 years
um
all the while we weren't really in you
know we were like okay in touch um and
then we started the licensing business
which is gym launch and that's the one
that like really took off and we hadn't
been super in touch and I get a call out
of the blue and he wasn't like a cold
call you know what I mean I was like
this is weird so I pick up the phone and
he's like you're going to want to sit
down for this and I was
like okay uh what's up I was thinking
like cancer you know I mean I'm just
like what what is it going to be he was
like like I'm sorry and I was like for
what he was like you know everything I
was like
okay and I was very angry still because
and this is what I told him so I was
like like you know that point when
people like get on stage and they accept
the awards and mind you at this point I
think we're do we're probably taking
home one and a half million a month you
know what I mean and take home like
personal income from the license it was
it was a decent like a I'm not you know
conglomerate like probably but it was
decent sized
business and I was like you know when
people get on stage and they accept
awards for things I was like the first
thing they always say is like hey I just
want to thank my mom and dad for always
believing in me and I was like I'm not
going to say that I was like because you
didn't I was like you're only saying
this now once everyone believed because
it's not belief anymore it's fact it's
evidence I was like so you're I was like
this apology means nothing to me
and besides that I stopped caring what
you thought 6 years ago which is why I
left and so I had like that's like I I
could have just accepted it and I and I
I didn't do that um how' you feel about
that I probably like today I probably
would have just said thanks I appreciate
it I know where he was trying I he was
trying to extend an olive branch um and
I just wasn't there I was still seething
I was still very angry that I had not
gotten any support during that process
and maybe that was very woe as me um but
I was still very very angry at that
point and you know to give also a little
bit of context you know his response to
that was like well we'll see how long it
lasts you're joking no so like my father
and I like he is a very strong
personality and so do I and we both
think we're right are you angry about it
now honestly no I mean like I think I
can still feel the emotions but I feel
like I've you know thought about it
enough to say that I can logically say I
think he absolutely did the best he
could what he had he's a single dad
another country raising a kid trying to
get that kid to fit in and do the things
that like one of the things that I think
my dad always wanted me to be able to do
is like because he's darker skinned than
I am he's Middle Eastern um he always
wanted me to like have access to like
the back rooms where like deals were
made that he felt like he wasn't a part
of and
so he just wanted me to have that and so
I think he just drove me as much as he
could to to get that it's just like when
you're on the other side of it like all
you feel is never
succeeding but I can appreciate it now
in retrospect um but it definitely was
still it hardened me a
lot but that hardness I think has has
benefit me a lot in business I had
someone on the podcast say a quote which
I've never managed to forget they said
you've got to realize that everybody you
encounter everybody that does you wrong
if you were them and you had been
through what they've been through and
you had their brain you'd be doing the
exact same thing yeah and it sound it's
obvious on one hand but it's also very
kind of Illuminating that think about
the person that's wrong you the most if
you've been through their shoes and you
had their genetics you'd be doing the
exact same thing doesn't mean you have
to let them off but at least evoke some
empathy if you heard um you cannot both
hate and understand someone at the same
time
true like if you truly understand
someone then you can't hate them because
you understand why like a lot of times
the hate is from the unknown and not
like because you hate because I mean you
almost say you're like how could like
it's it's literally a statement of not
understanding like how could you if you
understood then you would know how and
that resentment is a byproduct of just
not understanding as well I was just
thinking about resentment that I've had
in my life when I think someone's wrong
me that sense of Injustice you're right
how could yeah how dare you did you ever
manage to get your fuel to burn less
dirty are you burning less dirty now
yeah I think so you think so yeah I
think so I my my team tells me um that
that's true and if you look at like
because I do have some older videos that
I made from like you know years ago um
and there's definitely a different
vibe I'm I'm significantly friendlier
now than I was then um I me even the way
I interacted with customers and you know
the team was like purely fear driven
like I was absolutely because I didn't
understand influence as well yet um so
only only the stick I had was like if I
if people are afraid of me then they
will immediately comply
and it's effective for short durations
but not for long durations um and but I
didn't know any better at the time and
then I slow that's when I you know right
around that point is when I met my wife
and then she just you know changed my
life um and she started running all the
businesses and I'd see her and everyone
loved her and I was like man should do
more more of that stuff and less of my
stuff um she changed your life oh yeah
for sure far not I mean she's
like the best
how did she change you she has brought
out the absolute best in
me like in in just about every way
like didn't think we were going to go
here
um she just she believed in me
and I think that's what most guys want
truly at least for me that's what I
want or
needed I'll tell you a story to
illustrate it
so we
met talk for four hours on the first
date only about
business because that's all I wanted to
talk about and I pitched her on working
for me I was like quit your job work for
me and she was like I just met you
logically makes sense she was a a
personal trainer I had a bunch of gyms
and I was like if you're this good you
should totally work for me she was like
well let's you know let's see how this
goes um and so I had this idea for the
turnaround business and it was right as
I had five five locations at that point
and I wanted to try this thing out so I
flew out did three turnarounds flew back
and they started working and then um I
sold all my gyms because it was like
okay this this makes even more money I
took all the money and put it into uh
this gym that one of the guys I was
doing a turnaround with was like dude
you just crushed this like I'm a really
good operator instead of turning these
gyms around and walking away with just
the money he's like you should just keep
owning them and I'll just fill up fill
them up behind you so I could I could
launch one two three gyms a month and
then own them all he's like you're
leaving so much money on the table I
like okay so we did this first launch I
put all the money in he was like of
course he had financial difficulties and
I had to personally gu you know
personally guarantee the lease normal
stuff um and so I crushed this launch
and then I wake up in morning I check
the bank account and uh it's completely
empty I was
like what's happening so I called him up
and he was like well I know you're
you're skimming from the business and I
was
like what he's like I know you're I know
you're you're skimming I was like I'm we
just what no um he's like well that was
my half uh and so I was like what is
happening so I I printed all the bank
the bank statements I went line by line
I was like let me I'll I'll walk you
through all the bank statements let's
just let's get to the bottom of this and
I remember we went sat to the meeting
and he was like I don't need to see that
he pushed it off the table and I was
like oh okay I immediately was like oh
he I just got
[ __ ] and he'd already been indicted
for fraud um and I knew this getting
into business with him and it was just a
big
misunderstanding and you know the saying
goes like uh when experience meets money
money gets the experience and experience
gets money um very much live that and so
after I had all my gyms I sold them put
all the money in this thing and then
they all got taken um and so I had
nothing and um lela's with me at this
point for this like this exciting period
so I was like okay she's like hey you
know maybe we should keep doing these
turnarounds instead of this weird launch
and go thing you side sidelined for I
was like okay we'll do that and so I was
going to launch a gym the next month um
and there was a guy who was local to
that gym and since I was refocusing I
was like all right I'm going to build
all the infrastructure I'll send this
sales guy out to do this thing and uh he
crushed the launch did like 120,000
which for us was a big launch um in like
three day uh in 3 weeks and so now I'm
at lelo's parents house because uh like
we don't really have a house at this
point um and I'm the guy that she met
from the internet that she quit her job
for uh who just lost everything and uh I
was I I needed this 100 Grand to come in
from this launch so that I could
recapitalize
and the money wasn't hitting I was
checking the bank account I was like
where's this money like and I I could
see the processing the transactions and
it was all success what's going on so I
called the the process process her up
and I was like what's up and they uh
they said it's a routine check I was
like I've been with you guys six years
it's never been a routine check and
they're like call again later and I was
like okay so I call about the next day
next day nothing and then finally it was
Christmas
Eve and I owed this guy money for the
commissions from the
sales and I was like I will not get off
this phone until you send me the money
that I am owed and uh to the payment
process mhm and they were like long
story short uh you were doing stuff in
different locations and I was running
this all through a local gym business
even though I was all over the nation
and they were like this is a little
irregular we're just going to hold on to
this for 6 months [ __ ] right now I owe
the guy $222,000 in commissions I in
total now had
$23,000 so I wired him the money and I
had $1,000 left and it was December of
2016 and I was like I screenshot it
because I still have the screenshot on
my bank account so I went from like six
gyms turnaround business all this stuff
to $1,000 and I was like this sucks
and Leila had just got six of her
friends to quit their job to come do
this turnaround business with me and
they were starting two days later from
the 24th so the 26th of December because
I planed on getting this 100 Grand in
and then being able to launch six gyms
because they took about you know
whatever uh it was $3,300 a day in cost
to have six guys out there in the field
selling 3,300 a day that I did not have
and so I saw out a credit card that
$100,000 limit on it um and so I'm at
her parents house like in in an extra
bedroom having lost everything and the
my one hail Mar play of this launch the
money did not come through and I was
like I I think you should leave me um I
I think I am a a sinking ship right now
and I would respect you like we're cool
if you want to walk away like we're good
like I won't think less of you like I
would walk away from you right now cuz
this could this has a very high likel of
not going
right and
um she pulled my chin towards her and
she was like I would sleep with you
under a bridge if it came to
that and it's hard to comprehend but
like I had nothing you know like for
have that kind of belief was was very
um it was deep for me so I was like [ __ ]
it let's go you know what I mean and so
then we we launched the gyms doing
$3,300 a day and uh mind you I had no
way to process money still so I'm
collecting 60 to 80 contracts a day that
I can't process and we're getting calls
from customers like hey why haven't you
run my card why haven't you run my card
I'm calling all these processors to like
hey can you pleas and as soon as you get
shut down from a processor it's like a
black mark it's like going bankrupt for
credit cards um they're like oh no
something's weird we they just won't
theyve other people they can process the
money for finally I get like a highrisk
processor that does like porn and
casinos and stuff to like give me and
they were like yeah so it's going to be
like 8% processing and we're going to
hold 10% as like Safeguard and I was
like Jesus okay yes and they're like and
we can only give you $50,000 as your
limit and I was like I was like I need
like 200 he's like well and I got this
on the 29th of January so this whole
time 3,300 a day is running on this card
and I have no money and I have no way to
process it and 29th of January I can run
50 Grand I run 50 Grand in a day and
he's like but it's by month he's like so
February 1st you can run another 50 so
February 1st I run another 5050 that 100
covers my cost from the month before
and then I get two more processors for
50 boom boom run those and then like I
got a third one or fourth one like two
weeks later and I was able to like start
moving things around um and at the end
of February uh we had made like a
$330,000 profit and um I was like okay I
think we might be out of this the next
month we did a little bit more and I was
like okay I think this is working and
then all of a sudden Lila Taps me on the
shoulder one morning and she's like she
like turn her laptop towards me and it's
our bank account and has all these
negative transactions like hundreds of
them and I was like what's going on she
was like well all these clients are
calling me saying that the gym that we
did this launch at month and a half ago
the guy got in his chair and was like
hey there's too many of you here like
just go home just refund because I was
the one who held the money they had to
do the delivery that was the model it's
like I would fill a gym up I would sell
I'd keep the money and then they deliver
on the services and after that they
could keep the customers that was kind
of like the the setup
and then another gym the next week said
hey this guy made 100 grand out of my
gym the average gym owner makes $36,000
a year take home like this kid from the
internet took 100 grand out in a month
screw that kid and so he told all the
customers who were there after we had
left hey I'll keep Del living your thing
refund him just pay me half what you
paid him so you out right it was a
flawed model like I didn't understand
like I didn't get it at that point and
so we had $150,000 in refunds that I had
to cover and I had had no way of doing
it mind you like Leela's like we're
going to do this I believe in you and so
I'm like I'm like I can't sleep I
remember because what would happen is
like the more we sold the more the
refund like it was a vicious cycle so I
had to sell more to cover the refunds
from the ones that were coming in and so
our sales were going up and it was just
like I just I couldn't breathe and I was
just I would wake up at night anyways
and so I'm like writing down these ideas
of like what I think I could do we had
eight launches that were supposed to
launch next month so I said hey you have
this little weight loss business cuz she
had her personal training business she
converted her on her inperson clients to
online during this whole process so she
was making like $3 or $4,000 a month and
mostly is like I'm not stable I'm like
making all this big money and losing it
all then making it and then losing and
she's just like paying groceries and
actually like making sure that I can eat
and I was like tell me more about that I
was like what's your overhead how much
time does it take you and then blah blah
blah I was like we're going to we're
going to do your thing we're going to
we're going to call Queen transformation
I'm going to start running ads for it
and we're going to take the sales team
and we're going to put it on your thing
and so within 14 days she starts taking
the phone calls because she was a good
salesman um she's doing a th Bucks A Day
online no no all margin what's that
product it was a 16we like weight loss
program that online yeah online exactly
and so it was 500 bucks she was selling
two of them a day and so I was like man
if we get the eight eight guys going
we'll have 8,000 a day 240 after ad span
I was like I can make 150 in profit and
like we'll be in the clear so I called
the eight guys that were supposed to
launch the next month with the the gyms
so I get on the phone with the first guy
and I was like Hey we're going another
Direction you know we're going to we're
going to be a weight loss company s
directed consumer and he was like dude
you launched my buddy's Gym like two
months ago and like he he can't stop
talking about you it's like it's packed
um because there there are other gyms
that everything went fine with just the
ones that didn't is the ones that
crushed the business he's like I know
you can do it um and I just refinanced
my house and I maxed out my credit cards
to to to make this gym happen and I I'm
going to lose it
and given what I had been through up to
this point I was like that's tough
man um sorry about that and then finally
he was like can you okay instead of
flying can you just show me what you did
to help my buddy out can you just give
me like the
system and since I was like I'm going to
get out of this gym business I was okay
like selling my secrets and so I was
like all right man I'll I'll give you
everything I have but I'm not going to
fly out there to save your ass if you
can't sell he said no no it's fine and
so I picked up the highest number I
could think of because he already told
me he was broke so I figured I could
just get him off the phone so we could
move on and I said
$6,000 and he was like 6 grand I was
like yeah he was like oh done and I
remember like looking at the phone and
being like holy [ __ ]
$66,000 and I was like oh what card do
you want to use for that wrote on like a
cardboard box and then the next call had
the same thing and I was like well shoot
I have to make this thing now and I was
like same conversation he's like how
much I was like eight grand and he was
like yeah okay
and I each of the calls I was like next
call same thing 10 grand next call same
thing 12 Grand and then the next you
know at the end of the day I'd sold
$60,000 in in licensing packages for all
of the stuff that we did to do the
turnarounds is that monthly or is that
just one it it was a it was a I didn't
even have any I was just like I'm just
giving you everything I do yeah it it
became more like more uh it became a
recurring model over time but it was a
PDF or
something um it was actually on my
internal stuff so it was like what I
used to train my sales teams that would
fly out and like I would use to train
them on how to do nutrition orientation
like it was all the internal stuff the
only thing I actually made external was
I had to create the uh the advertising
material so I had to basically make a
white label landing page for the gyms
that they could put their logo on and
then I gave I licensed them the ads
themselves that we already knew
converted right so like the videos the
copy everything they used like videos of
me that we knew converted and I taught
them how to run them and then that's
that's what it did it and uh we made
$60,000 in a day and I like Lea came in
from doing her two sales for weight loss
and I was
like I think we're still in the gym
business and she was like what I thought
we were doing weight loss like you just
told me you sold me on weight loss being
like the next thing I was like I just I
just think we were doing it wrong and so
I explained what had happened and she
was like so is this what we're going to
do now and I was like I guess I was like
I can call the other 30 gyms that we did
the turnarounds for I was like they know
we can do it cuz we just did it for them
and so I called all those guys up and we
did like $300,000 and Sal was that month
and it was basically all profit and I
covered the refunds and I covered the
everything and we were like in the clear
and then and then it was just and then
all those gyms that we did that we sold
the average gym did uh $30,000 in extra
cash collected in their first month
using our our system and so the key was
that like if they didn't have to pay the
overhead of the sales guy who's there
every day at the hotel the commission
for that guy like the rental car the PRM
like all the stuff that you have to
incentivize and just like rent it out of
their own gym and work the Le themselves
it became incredibly profitable uh for
them and um and then it just took off
like wildfire like we went from like our
first full 12 months of uh like January
to January uh we did 26 million Topline
17 million in iida our first 12 month
like it was it was insane like it's hard
to comprehend that like I like that was
the the moment I had been like dead
broke in her parents' house and then
like
six months later I have $3 million in
the bank account and then like 12 months
after that I've got like 20 Mill I was
it was it was insane and um I didn't
even know how you could pay taxes like I
didn't like I was figuring all this
stuff out but through that whole thing
Leila was just like you can do this like
we can do this like we've got this um
and I think sometimes you just need one
voice behind you that just just keeps
believing what happened then so that's
2016 um you turned things around over
the next couple years is what happens
you know leading up to where we are
today in terms of your business can you
give me a Topline summary in terms of
what's yeah I'll give you the tldr um
continued to grow gym launch uh two
years later we started a subl company
called Prestige Labs at this point we
had thousands of gym owners that had
licensed uh the business model and the
ads and all the stuff that we were doing
and so we sold through that distribution
base that company grew pretty good
pretty big pretty quickly um a year
after that we started a software company
that um also helped gyms get leads in
the door was just like an automated lead
thing and then um
2021 we sold all three of those
companies uh the supplement and the
licensing company we sold to American
Pacific group which is a private Equity
Firm out of San Francisco for uh 46.2
million for uh we sold two-thirds of the
company and then um the software company
we actually sold to a strategic buyer
who had like a massive base and we just
had a better monetization system than
they did um and that was an all stock
deal um so we're just it's continuing to
grow under their umbrella and they'll
probably sell in four or five years um
but from that and what we had taken in
dividends um during the licensing
business for the five years that it was
Rock still is rocking and rolling um we
started acquisition. so that became kind
of our family office and so we started
our first Investments I think First
Investments we did was in 2020 so there
is some overlap there um and part of the
reason that I was willing to sell it was
because the the Investments the first
three or four Investments we did did
really well
um and I was like okay this is what I
want to do as the next thing that you
know I didn't want to be the gym guy for
the rest of my life um because I'd been
you know at this point it had been I
think more than a decade um that I'd
been from like sleeping on the gym floor
to having multiple occasions to doing
the turnaround business to doing the
licensing like I'd been in that game for
a long time and I think that maybe I
could have stayed there and could have
just continued to compound it and
started doing Acquisitions under that
Fitness umbrella but I wanted
to do more General business stuff and so
that was uh that's what we did and so uh
now we now we buy chunks of companies
usually uh usually minority Stakes 25 to
49 is percent I mean we have one that
we're in the talks of that we were
originally minority stake in and we're
going to take majority because it's been
a great company and they want to the
founder in the same position as I was
like just wants to do other stuff and
it's a great business um so but that's
kind of how we we see it as like growth
Partners um we come in we write a check
we add value we help grow the business
what are you brilliant at you know you
kind of you kind of come to learn what
you're good at based on comparison but
you kind of understand your area of
expertise what is your area of brli
Brilliance or expertise I really want to
ask Caleb um
Caleb where's Caleb we can barely
see so Caleb sat around on the sofa in
the corner of the studio he is um friend
and creative director of Alex and I'm
asking Caleb what Alex is good at what's
his era of brilliance
I like it solving problems um for
companies simplifying complex things
into more digestible actionable um
Solutions as well and how would you
answer that question if you were
answering it for yourself I feel like I
fundamentally a lot of times don't
understand the world and so I think the
reason that some people have found the
content and things like that um good or
useful is because they feel like they
can understand it it's just because like
I didn't get it
right like terms like value right people
like provide more value like what does
that mean and so I just make a make an
attempt to define the terms that a lot
of us use every day and then it makes a
lot easier to solve for those things in
business and so you know a lot of people
like I want to grow my business I'm like
all right what does that mean like well
get more customers make them worth more
okay so it's one of those two things all
right well how do I make get more
customers like well there's eight ways
to do it here are the eight ways which
one do you feel like you're best at and
just like kind of thinking through
Frameworks that way is it's just for me
it's just been my way of
being able to be relatively competent in
a world that feels
confusing like there's a few things I
feel like I can understand and I just
hold on to those I mean that's the very
nature of innovation isn't it like
asking the question you we so so um
often in our lives just accept words and
phrases and ways of doing things then
there's a few people who are really good
like elon's one of them at just like
asking why and then when you ask why
like why can't you make an affordable
quote unquote electric vehicle that is
fast everyone else said you can't
yeah like why but why you know and then
he he's great at breaking it down into
like the core components of that
Innovation so well if we buy the metal
on the the iron exchange and we do this
and this then we can do it yeah it's
that's such an important thing in
entrepreneurship isn't it there's some
people who just ask
why naturally yeah it's like to to the
point like to Elon it's like I don't
understand why we can't yeah like just
explain to me why we can't so that I can
not think about this and I feel like
that's you know
I would say that that's the most common
thing like why isn't this company
growing like I don't get it like explain
it to me and then usually a lot of
people it's like they're they're in this
caught in this Loop you know what I mean
of doing what they've always done um or
like believing that this is the only way
um and I think a lot of times I've
benefited from like not knowing because
I my questions don't seem stupid to
me but only to somebody who like knows
what they're doing um it seems stupid
and so from there we're able to like I
guess to your point innovate um
just by being like I don't understand
that's what Steve Jobs from from
everything that I've read about Steve
Jobs and my brief conversation with
Steve wnc Once Upon a Time um is he was
just the the the voice in the room that
never understood why they
couldn't and even like when we think
about him removing the keyboard and
doing you know not refusing to use a
stylus and all these other crazy things
he did not using JavaScript I think at
the time and changing the port and
removing the iPhone Jack that that is
somebody who is so strong in their
conviction
in terms of like doing things a new way
how important do you think that is
generally like what in your view what
makes a really good um entrepreneur
leer I think that they have to have the
power to influence and that is across
lots of things just they have to be able
to move other people and you can Define
sales as the ability to get people to
comply with your request you can define
leadership the same way um management
marketing to a degree is getting people
to comply with a larger request you know
publicly um but I think that
fundamentally is a skill that people
have to have if they're going to be
successful at entrepreneurship um they
have to have tremendous Drive whether
that's a combination of towards or away
so they have a big mission that they
really want to achieve or they have some
very big fear that they're running away
from either way I think the fuel works
uh just from a pure entrepreneurship
perspective um third piece is impulse
control is that they have to be able to
say no to things on a regular basis for
an extended period of time
um and I think they have to to be able
to boil down the success of their
business into inputs and outputs like if
you do not know the inputs that are
going to get the output that you want
then what are you
doing and so I think for for most
entrepreneurs like if they have those
things if they have the ability to lead
other people SL sell just influence they
have some big motivator they can control
themselves long enough to keep on going
during that period of time and they are
doing the right things because they know
the inputs and outputs uh to be
successful to create their the thing
that they want um becomes a very
difficult person to beat on that first
point then sales one of the things I I
read um in some of your work is this
idea that if everybody just went and
spent two years doing door-to-door sales
that oh my God why is that important why
why do you think do door sales is a key
thing I think it's um just for w for
broader definitions for the audience I
think it's just high volume
transactional sales so whether that's
you doing door to door or you cold
calling um or you working the front desk
at a gym where you do 20 consults a day
like just having a high volume because
in order to learn a skill you want to
have as much exposure as you can to
repeat the action and then you want
quick feedback loops so that you can
learn what you did wrong so the perfect
scenario would be Mentor mentee repeated
exposure fix this try again fix this try
again and um in sales if you can survive
that long then you are good enough that
you will have gotten enough feedback
like for most people if they can weather
the first three months of say sales then
they'll usually be fine and so for the
people who are coming up I always tell
them like go Shadow the best guy and do
twice the volume he's doing because
you're not as good as him so like do
twice the volume that they're doing work
all of the hours and you will get better
faster because you're doing you have to
suck for X period of time and so if you
can condense how how long that takes you
in terms of calendar days not hours um
you can get there faster but I think
that it's important because one you have
to learn how to get re rejected and
still keep going and I think that's a
very valuable skill and then two there's
lots of like little things that you
learn and just interpersonal
communication that allow you that you
can use with teammates later you can use
in marketing because a lot of the best
marketers started as salespeople and
marketing is just sales one to many as
least as as I understand it um and so
having that kind of repetition just
develops a deep understanding of human
psychology I think um and I think it's
important for if you want to get people
to give you money for the thing that you
have um having that as a base skill
comes in handy I think a lot of people
aren't orientated towards developing
skills I think they're orientated to
Lifestyle to what I can post on
Instagram to cool whatever's cool um but
this idea of developing skills requires
this thing that's kind of absent in
modern culture which is patience and a
lot like you said rejection who wants
that you know it wasn't there was no
glamour in what you said Alex yeah it's
funny because a lot of us want traits
right we want to be patient we want to
be humble we want to be you know
longsuffering whatever words you want to
use um um but in order to if I would say
hey how would you create if you had to
create a human what would you put them
through to make them
tough it probably wouldn't be a really
chill life yeah what would you put them
through to make them patient you
probably wouldn't give them things
immediately and so it's like we want
these
traits but each of the traits has a
price tag attached to it and it's just
like do you want to pay the price tag to
get the thing and so I think if if
people reframe the the period of life
that they're going through as the price
that they're paying out of their wallet
but the wallet is their time it's the
seconds of life that they're trading for
it then I think more people will be
willing to make the trade because at
least when I look at myself like when
I'm 80 something years old and I'm
looking back on my life I want to have
these traits but in order to have those
traits I know I have to go through these
things and I think for me that's given
me a lot of comfort in hard times one of
the things kind of adjacent to that
which causes patience is the belief that
you are at some point going to get there
so like you know it's all well and good
you saying to me you do this for 5 years
Steve
um you'll build the skill but I go well
listen if I want to be a millionaire um
and I and I have a low self-belief I'm
going to have low conviction so I'm not
even going to take the BET yeah so how
does one build that self-belief self
belief is such an interesting thing
because it feels like this real it's
clear to some degree that you had it in
that moment of turmoil also the reason I
say to some degree is because it didn't
seem like you had a plan B
anyway
so you were already in your like your
parents-in-law like playroom or whatever
so I had nothing to lose yeah you had
nothing to lose so I don't know how much
self belief is applicable but regardless
to to keep gracing those hurdles self
you need some kind of conviction that
like this is the right way to go how do
people build that so I I hear that and
to like to to to Echo the point you just
made I hated my current existence and so
I think some people like don't hate
their current existence enough and so
like I don't think you like you either
have to really believe that this thing's
going to happen or you have to know that
your life sucks and I knew that my life
sucked and so I knew that if I did
something else it would have it would
have a higher likelihood of changing my
life than not doing something and at
least that's how I would say that I
probably saw it in the beginning it's
like I didn't know if it was going to
work but I knew that I wasn't going to
stop I read I heard a quote some 10
years ago which from just came to mind
when you said that on some YouTube
family Vlog where he
said change happens when the pain of
staying the same becomes greater than
the pain of making a change and in your
situation now it sounds like well this
is less painful 100% I think and I think
that's the basis of of most either you
have to have a reward that is that that
incentivizes you it's the away towards
her away it's either we're going away
from pain or going towards pleasure and
I think a lot of people really looking
for that passion that's going to be
towards but I think early days and I
talk a lot about this but like I think
negative motivation is poo pooed too
much like if you are angry use it if you
are sad use it because like what else
are you going to do with
it like you might as well let it help
you like or it uses you you know what I
mean and so I always like to see when I
was in my earlier days I felt like I was
wielding my anger at least in a
direction and I think also a lot of
people think that they have to get like
it right on the first shot but one of
the beliefs that I had was that I just
want to be directionally correct like if
I move I like I know that I don't like
this and so this way is not where I am
and so I will start taking steps way and
from the story that you at least heard
it's like I'll ping pong a little bit to
try and directionally move that way and
it's funny because Caleb's seen plenty
of things from what we do at
acquisition. comom where we're like
we'll try it out and if it doesn't work
then we're like
oops all good do you believe in
yourself I think
that I have a high likelihood of
repeating activities that I've done in
the past and up to this point I have
lots of evidence that would suggest that
it that I will continue why didn't you
say Yes um
because I based the answer on that
question on what I've done before and I
think it's been it's just based on
evidence now so it's it's not like a
like a Charisma thing at least for me
it's just like I've done these things
and so I think it's probable that I'll
be able to
continue is there a deeper reason to why
you didn't just say
yes that's actually how I think about
it is that because it's that feels
difficult to say you believe in yourself
yeah it feels weird I don't know if
hokei is the right word um for what that
feels like for me but like saying the
way that I said it is how I is how I
feel about
it h have you been on a journey of in
terms of Self Doubt over over the last
you
know 30 years for sure I think it was um
but I mean fear was my big fear and
anger hand in hand were my big
motivators in the
beginning and I
maybe that's from soft out but I would
say that the I I was very certain and I
can I can I can feel this and I I
remember this um I was always certain
that I wasn't going to
stop like that I can I didn't know I
didn't know whether I would succeed I
thought it was
probable but I did know I wasn't going
to stop and so for me that was like
enough to get me going or keep me going
was like what are the controllables me
okay well if I do this so like I'm big
on making like unreasonable like
unreasonable that it doesn't work out
statements just like if I do sales and I
do more volume than everyone else on
this team and I Shadow the guy who's the
best and I do that for five years it's
unreasonable that I won't be at least
mediocre it will be probable that I'm
above average and it's also probable
that I'll learn other things along the
way and I'll also have the resources at
that point in 5 years that I can jump
into things now that I have more context
or perspective from which to make a
judge on what a good next opportunity is
and so I like very easy to believe
statements and then having the input
output equation being like the output is
that I will be a very good salesman the
inputs is that I have to do I have to
collect 5,000 NOS if I collect 5,000 NOS
I'll be a very good salesman and that
for me like when I was a kid when I
played video games I would beat the same
level over and over and over over again
so that when I got to the next level I
would crush everybody because I'd had
all the experience points maxed out and
so like those input output equations are
really helpful for me like when I took
the GMAT to get into Harvard my first
score was like okay it wasn't great um
but I I read the study on how to do well
on standardized tests and they had this
graph and it went like this it was just
a straight line it said number of
problems practiced on gmath score so
like the more problems you did on
average the higher your test score was
and I was like done so I bought 16 phone
books of like they like these thick like
test prep books and I did four hours of
problems every day for three months
every day I'd get home from work I would
eat dinner I would do four hours of
problems had a timer did every day and
then I scored a 99 Point whatever
percentile because it was just input
output like I didn't I I didn't I was
naturally not even that good at math um
but I just was like if I do 10,000
[ __ ] problems like I'll start to just
understand how these problems get asked
and so like I always trying and find
like what's the input output for this
the content game I was like okay well if
we post once a day on one platform we
will get some some eyeballs if we post
on every platform every day we will get
more eyeballs if we post multiple times
a day on every platform we'll get even
more eyeballs so let's do that let's
build that system 100% And so like those
are the like I try and make statements
that I believe are unreasonable that if
I do it enough it will be true and so
that's for me that's what gives me the
confidence to say like what if it's not
working like it will eventually like if
we just keep doing it it will
work what does it take to want to do
something potentially for years so that
you can get good at
it cuz you know there's going to be
people thinking well I want to be a
great DJ but I just can't find the
motivation to spend every day three
hours practicing Alex yeah like you
probably won't be a good
DJ but I be I would be like you like
your current state enough that you like
the pain of change thing right like
you're not in enough pain I've said that
to plenty of people we go speak and
someone's like how do I get motivated
I'm like you're not going to get motiv
like you have to hate for me like it I
automatically go there I'm like you have
to hate something like for me I just
hated my current existence and so for me
that was powerful enough to get me out
there's got to be another way though you
know I was thinking to you that moment
where you took the leap MH you know and
there's I feel I often feel like most
people that listen to this podcast often
are at a point in their life where
they're considering a leap yeah feel
like we drag those type of people in we
kind of like we're a magnet to those
people so if they if they're in a
situation that they don't like but it's
not that painful you know it's
comfortable well that's the worst it's
comfortable but little bit miserable
yeah how do you get them to take the
leap when it's so
comfortable my boss is promising me a
promotion I think about death all the
time it's like I'm going to die and I
think you have to agitate the pain for
yourself like you have to stoke the pain
like if you can't get through through
cuz like it would be it it would be odd
that you would be motivated by some
weird passion like not everyone's Mozart
and just like I just love music and I've
been I see in you know see numbers in
colors you know whatever like some
people are like that but most people
aren't and so if you're not that
then you only start really liking stuff
when you get good at it in my opinion
and you only get good at it by doing it
a lot of times before you're good at it
and so if
you this is why I'm a big big believer
in this is that when you are starting
out I think got to find the thing that's
the pain and like pain motivates
significantly faster and stronger than
pleasure does like people are like no
passion is the right way it's like point
of gun at a family member all of a
sudden 10 out of 10 motivation pain and
so like I think people should use their
pain more and if they don't have enough
pain then one maybe that's fine and
you're a dreamer and that's okay but I
will tell you that a word that I can I
read in my like six-month Journey
between when I wanted to quit and when I
actually quit there was this word that
just like pissed me off and it was this
in the self Hub or entrepreneur book and
it said there are entrepreneurs and
there are
wantrepreneurs and I was like and it was
like wantrepreneurs or people who read
these books and don't do anything blah
and I was just like I don't want to be I
was like I am one of these right now and
I just it just like felt
so powerless and I think that my entire
life has been a lot of trying
to have power and I mean that in the
true sense of just being able to direct
influence and events um I've wanted to
have more power to protect myself
protect the people I care about Etc um
and I felt very powerless and I think
that I was in that comfortable like my
dad approved of my current situation I
had a job that when I told people they
were like oh that's fancy but I felt
powerless and I I hated that more than
anything and so I think I think if I
want to say this to anyone who's
listening if there's anything you listen
to all the stuff that I described that
was really tough that I went through was
not as hard as me quitting my
job by far the hardest decision of my
entire life far
none because the things that I was
actually caught up with were the
opinions of other people opinions of my
father and the opinions of the people
that I went to school with who I thought
would judge me for leaving this good job
to probably become a failed gym owner
and how lame that would sound compared
to consultant going to Harvard and bl
like I was going to go from Peak white
collar to a very blue color you know
profession making significantly less
because I quote loved it and like it I
I'll say this again but like sometimes
you have to let other people's streams
for your life die for yours to live and
for me it was like when I when I
continued to every day not want to wake
up that was my wake up call where I was
like either I continue to live this way
and not want to be
alive or I just risk the fact that I'll
die to everybody else and I think that
like it was the hardest decision in my
entire life by far all the all the hard
stuff we went through still the hardest
decision in my life how much was money
on your mind when you made that decision
the desire to be financially free to the
point where you had
Millions it's weird money um Caleb would
know this money doesn't really motivate
me uh I would say that it I mean I love
the game for sure um but I love playing
the game and the tokens are there
um but for me it was it was it was it
was beating my dad you know what I mean
I didn't want him to be right like
that's what it was like I didn't want
him to be right I just I just I remember
like I I'd be sleeping on the floor I'd
be miserable I had you know when I had
my gym and I had no trainers I was
teaching all the classes and so I'd wake
up I'd do 4:00 a.m. 5 a.m. 6 a.m 7 8
a.m. sessions and then I would then uh
work out for myself and then I would uh
do uh I'd do all the marketing and the
ads and the stuff that I have to in the
middle of day and then I would teach the
four the 4 p.m. the 5: p.m. the 6 p.m.
the 7:00 p.m. and then I would do sales
consults at 8 9 10 11 and then I would
do the billing for all the all the
contracts from 11: to like 12 12:30 and
then I'd wake up again and I did that
for like six months and like I started
to like lose my mind because I wasn't
sleeping um but even during like those
times I just literally I would Envision
going back to Baltimore to my father and
have and knowing that he would give me
the false modesty of like why know you
tried about it now let's get you back on
this thing and I knew that from that
moment on he would own me and I just
couldn't I I couldn't I couldn't do it I
was like I will do anything but go back
to that and for me that was my I I would
do
anything and so whatever that maybe you
need to agitate some pain in your life
you know to get out of your current
circumstance um and just as a total side
note play it out what if you just never
do anything is like maybe May some
people just need to stop
dreaming maybe they need to accept their
current reality and actually enjoy it
because there's a lot of people in their
70 and 80 and they didn't do their
dreams and if they went back like they
didn't do anything but that whole time
they were dissatisfied because they
didn't try but what if they were just
like I have a good life I have a wife
who loves me I've got some kids I have a
job that I you know like I don't mind it
pay the bills I mean if you go back 500
years it wasn't people are like man this
is my passion he's like dude I'm just
rowing rowing a boat across a ferry and
that's what I do and that's what my dad
did and his dad did like this is how we
eat and so like we have these these um
idealized versions of purpose that I
think Instagram and all this stuff kind
of make terrible but like I think
there's a lot of honor and work period
And I think a lot of people uh fool
themselves by thinking that what they do
for some reason is not honorable and I
think a lot of it is like the internal
versus external scorecard of
like I was saying what I said earlier
about like I believe these things to be
true about the universe or like the
world but a lot of those are like what
do I believe about myself which is like
I can choose to do work in this way
which then I can derive Joy from so like
if I'm Shoveling
[ __ ] I can choose to be like I will be
the best [ __ ] shoveler because I believe
that I will figure out how to do this
more efficiently and I will you know I
will I will get better and I'll have
calluses on my hands and I'll have a
better back and whatever um but I will
do this
well and I think you can find joy and
work if you decide to do it well so on
one hand if you are if if you if your
dream causes you so much pain then you
will quit what you're doing and do it
and if it doesn't cause you enough pain
that you're not pursuing it or that you
don't like if you don't feel like you're
in a cage right
now then maybe you're not in a cage and
maybe you just need to like the life you
have and that's cool too a previous
guest on this podcast called moat said
we're unhappy when our expectations of
how we think life is supposed to be
going are unmet and in that there's
something very sort of linked to what
you just said there which is we have
this external expectations set by
Instagram or whatever by People Like Us
yeah who who who um are in a position of
um Financial Freedom and have built an
audience who you know admire those
people for what they've achieved and if
someone wants to be admired they think
well I need to be like Alex right um and
that I could be working in a shop
actually objectively like subjectively
having a great time in the shop but I
look up at Alex and go my life sucks
right
and and like so in that I'm like it's
very difficult um because of the
pressure of external I was just thinking
when you said it that I was thinking
this whole idea of like passion and
purpose is probably like 60 years old
yeah it's all brand
new and it probably originated when we
were like connected you know like radio
TV yeah all of this ad advertising which
made us change our expectations of our
own lives when living in the village and
like helping out at the bakery was
probably delivered the same amount of
Happiness core happiness than being on
the private jet and whatever else does
now I think most people are just as
happy and just like you're 50% happy 50%
sad for most of your life if you're in
an extreme circumstance then change your
life if you're not like conditions like
people get handicapped they break their
legs you know they they can never move
again and they have a dip in their
subjective well-being and they go back
to the same Baseline and so like the
Baseline is independent of
conditions and so the world World wants
to tell us that we need to change our
you know change our circumstances and
then we will be whatever but like every
modern religion every Buddhist monk will
tell you that all of that's from the
inside not the outside um but these are
words and words that me and you yeah can
say don't follow
yeah because I'm sure that you've you've
experienced like the attainment of a
goal and then I just need three times
more yeah I'm referencing a study there
where they they ask people how much
money they would need to be happy and
all the way up the income wealth
Spectrum people said three times more
than they have now so people with 10K
said 30 people with 3 million said you
know 9 million fing can do math three
time 3 * 3 yeah um and you you I imagine
you still experience that now right yeah
different reasons but yeah for sure when
is enough enough um I don't think it's
enough thing I think it's more like who
I want to be who do you want to be I
want to be the person capable
of of doing that doing X like we'll get
to a billion and then after a billion I
I'll make it 10 I already know that you
know what I mean but like I love playing
the game what is the game game of
business to what to what end or just
just for the play to play yeah I'm I'm
sure you know more about this than I do
but like just Game Theory like the
finite and infinite games Simon sonck
has a great piece on it um but yeah with
infinite games you have known and
unknown players you have no greed upon
rules and the point of the game is to
keep the game going and so a lot of te
people will take a finite game game
where you have known only known players
agreed upon rules and a set outcome um
for winning and they will apply it to an
infinite game so people are like I want
to they apply a finite contract to
health they're like I want to win Health
it's like you don't win Health like okay
you're in shape now what you stay in
shape you keep staying in shape I want
to win at marriage you don't win at
marriage you keep the marriage going
that's playing the game of marriage if
you want to you don't win at business
you keep playing the game of business
and so we want to take these finite
contracts and put them on on on infinite
games and I think that's where people
get get in trouble because they're
they're like I have to keep moving the
goal post but if the goal post is to
play then you win by playing and so for
that re like sure we set goals for the
company but like I'm a th% super
motivated and at the same time if we
never hit it I'm just going to be happy
that I was able to play I also know that
in three generations everyone will
forget who I
am I saw your post about the queen yeah
was that a
stab no no no it wasn't it wasn't for me
if I'm being honest um but uh but it's
an interesting what did the post say
remember well she amassed more wealth
than
99.99% of the world she ruled for 70
years uh was you know a female Monarch
which is insane especially 70 years AG
could just like all it's had amazing
family all this amazing whatever I I
don't know the tabls you do um and when
I posted it it had been I think five or
six months since she had died
exactly and I was like you probably
haven't thought about her today except
for this post she probably accomplished
more in her life than we probably
will so if you afraid of other people
thinking about you just remember that
six months after you die they're not
going to be and so it's like we have all
these fears about other people but like
most of them won't even show up to your
funeral because they're going to be
busy and so like I I think about death
all the time and that's that's what I
think for me has given me a lot of uh
freedom to take big shots because like
at the end of the day I think that it's
not going to matter no one's going to
remember people in Thailand don't know
who I am today let alone in five 10
years 100 years it's a trap that the
mind can quite easily fall into though
thinking you are the center of the
universe and with that comes an immense
amount of weight and pressure and
anxiety totally I I have a trick I've
never talked about this before but
whenever I feel myself slipping into the
Trap of kind of overstating my
importance and what I mean by that is
like thinking my problems are big
problems
I go on YouTube and I type in
um there's this one video that shows a
camera on Earth that just zoom out and
it keeps going and eventually Earth
becomes this tiny Speck then Earth
becomes this tiny Speck which is the
Galaxy then the Galaxy becomes this tiny
Speck in a bunch of galaxies then you
can't see any of it anymore and then
also this idea that like hundred years
ago I didn't feel anything didn't think
anything nobody KN knew me 100 years
from now exactly what you said
absolutely I mean [ __ ] five minutes
after I die I
think but um and that feels really
liberating it like relieves stress from
my
body which is an interesting thing
because a lot of people don't like
thinking about the death you know a lot
of I love thinking about it yeah all the
time I know from doing this podcast that
a lot of people won't click if we we
post something about death they won't
because they don't even want to confront
the concept of it which
is people are afraid of it just because
they don't understand
it it's kind of like the Hate Thing how
do you feel about death I'm good with it
when you say I'm good with it what do
you mean if I die tomorrow I'm good with
it like I want to leave it all on the
field I'm going to try as hard as I can
and I know that no one will remember me
on a long enough time Horizon and I'm
good with that like I'm cool with
it if I told you you were going to die
tomorrow would you be
sad I'd probably hang out with Lila
a little I guess a little more than I
always do but like um I would say I
wouldn't be sad I'd be bummed be like
man there's all [ __ ] I want to do uh but
I don't think I'd be like depressed I
think I'd be I mean my D to be fair
maybe I'll find out and maybe I'll get
hit by a bus tomorrow but um no I think
like I've lived life the way I want to
live life
and I'm good with it if you were to go
today had you really like given it
everything had you lived the life you
you feel like you were really destined
to
live me absolutely an interesting Mind
Trick around the same topic is so when
when Betty White dies right at 99 or
whatever like people are like she lived
a good life but when Kobe dies before
his time right it's a big
deal and I see that as a contrast
between expectations in reality and I'm
going to tell a story that hopefully
people don't take the wrong way but I
had a cat and really liked the cat and
it died at two years old really liked it
young guy heart thing or something
whatever and I remember being like
really bummed about it and I was like
huh how can I not think this and so I
was like the only reason I bummed is
because I think that he should have
should being the the big word that
Everyone likes to use he should have
lived longer I was like what if cats
only lived 6 months and I got to have
him for two years I was like I probably
be pretty stoked about that and all of a
sudden I was significantly less sad
about it and I was like I got to have
him for two years I was like awesome and
so I think like for for me for us
whatever um if we were to change our
expectation like people think they
should live until everyone thinks
they're going to live to 100 which is
kind of interesting because like the
average life expens is 74 and if you're
like 36 you're middle-aged if you
actually do the math which no one wants
to do uh being middleaged 36 I know
right I know right I want to go yeah but
I think if we shift our expectations
then like expectations is the thing it's
the it's the thing right and so we can
if we expected if I expected that I was
supposed to have lived 20 years and I
made it to
33 stoked Jesus lived till 33 he did a
lot more than I have you know what I
mean and so I'm good with it if I die
tomorrow like only reason I would be
upset is is if I demanded from the
universe that I live longer
but like 500 years ago average life
expectancy was like 35 you know it was
just not like Dark Ages ladies and
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month on us working hard we talked about
repetitions earlier working hard is
quite a controversial Topic in
2023 which is weird do you see what I
mean though
yeah I'm probably not in the circles
where it's
controversial it's like they're like
gravity's controversial now I'm like I
don't know sure man it's controversial
in the sense that there's like toxic
work oh my God you know there's toxic
hard work and there's I think Society
prescribes a certain amount of work
which is
good yeah by their definition of like
I'm going to say some stuff that's going
to bother some people I work all the
time I have no Hobbies besides working
out if you can consider that a hobby
like four times a week that's it I work
all the time that's all I do and I work
until I can't work meaning like my put
per unit of time starts to drop
precipitously and then I know that I
just need to take a break of some sort
and then I usually bend some sort of
Television because that's what for me
Works some people are like I Garden
that's not me Netflix I'm good you know
what I mean or dark room in a movie
theater rocking
um comma and that's okay like why do I
need to take their expectation of what
they want like they're like that's not
healthy I'm like Define healthy I do as
much as I can of the thing that I want
to do with every minute of my day why is
that not healthy why do you want me to
do something that I would prefer to do
less cuz I do what I do every other of
the day because that's what I want to
do almost like how dare you cast your
expectation of your life onto me and to
be fair the same
degree they cannot work at all doesn't
affect me like I'm a I'm a big big
advocate for destroying should the word
in general should is just like the
expectation motor of like all of our
psyches you should go to school you
should get a degree you should do this
job you should marry her you shouldn't
stay up so late you shouldn't work so
hard you shouldn't you should be more
balanced you shouldn't be working out so
much you're not working out like it's
there's all these shs that other people
tell us and it's like and you zoom out
and then you see that it's a galaxy with
a little dot of dust it's like should
what there is no should do what you want
to do at least that's how I see the
world that pressure applies to both ends
of the spectrum doesn't it because
people that quote unquote overwork they
get hit come back into the middle and
that people that underwork they get hit
work harder and then the presumption
there in within Society is that there's
this sweet area in the Middle where it's
optimal and like the question should
become then like what is the measurement
like what are we measuring is it are we
measuring when we're defining this
amount of work as good work or healthy
whatever is the is the real measurement
my happiness and my
fulfillment in your view is that what
you're like is that your measurement or
is it just [ __ ] how you feel
I work because I enjoy working and I'm
sure that if I stop enjoying working I
won't work as much like just being
really like not not being per I'm not
being simplistic to be you know Annoying
um I work because I enjoy working and if
I and if for some reason I didn't get
reinforcement from work I'm sure that my
amount of work would go down is there is
there a I think about like human needs
yeah but are there any human needs
that are being sacrificed by always
working in your
case I'm good um yeah I mean which gets
to the point of the measurement which is
like how do I feel I'm good yeah I a lot
of people really overanalyze a lot of
things and like I don't think well I do
I do I do spend a lot of time thinking
about death and things like that but I
usually use those as frames to give
myself permission to do the things that
I want to
do and just do them without hearing the
Judgment that I know that other people
would probably cast on my life they're
like why don't you have kids like cuz I
haven't wanted to yet and that's okay
and if I want to later I
will I'll okay I'll tell you an argument
that I got into so I was at you got into
an argument I did I got into an argument
um with my stepmother so Lea's
father's whatever doesn't matter okay it
wasn't her different person it's fine
anyways I was at in the kitchen table
and she said
I would never want your
life and I was like what she was like
it's so unbalanced I was like okay how I
was like do you feel like I'm not in
shape physically I was like do you feel
like business-wise financially I'm I'm
not fit do you feel like romantically
like my marriage is in some way like not
good and so I I like we
where do you feel like I'm unbalanced or
it's just that I do more than you or I
do things differently than you do
because to the same degree I wouldn't
want your life and that's why I don't
have your life and that's why you don't
have my life so it's good that we don't
want each other's lives because that
would be tough wouldn't it and so that
was the argument that we got into in in
in so many words and it just came down
to the idea that like I
think that person was casting judgment
on themselves because maybe on some
level maybe they did want some aspect of
the life that we had and I hope that
doesn't sound like weird but it's just
like I think we all do this we see
something we're like and then we look at
our Delta and then we either say man I
would like that or we cast stones at it
so that we don't feel bad to our ego and
say like no there's something wrong with
it they're not happy whatever and I just
I would say that if there's one thing
that I I will try and beat out of me
until I die is caring what other people
think and I think everybody cares what
other people think and I think over time
we just care a little bit less and so I
feel like I'm 30% better than I was 10
years ago and maybe in 10 years I'll be
like 30% better than
that but that 30% has been very
meaningful for me because it's enabled
me to do things like I got married in
eight days none of my parents were there
and I'm cool with it because that's what
I wanted to do and I work with my wife
every hour of every day and people are
like is that healthy I'm like I don't
know we like it why do you care like how
does it affect you here's here's a trap
though I can relate in many in many ways
to what you're saying and I mean my team
will know that instinctively um one of
the traps we can fall into one of the
risks when we have that perspective is
that we kind of cast that expectation on
others people that work with
us I think entrepreneurs oftentimes when
they have
that drive which is sometimes driven by
a shame or an insecurity that comes from
their childhood too often um so often
maybe not too often but so often um that
when they lead people who don't have
that same insecurity shape whatever that
predisposition to you know workaholism
whatever you want to call
it they struggle to relate you know yeah
have you have you had that
sure but I think that's okay have you
had to work on
that Leela's
better I I say that judg but like
realistically I think we we try to
maintain a culture of high performance
and we're like on the screening Parts on
the front end we're like these are the
values we have here examples of those
values to play so it's like if your
shift ends at
5 and somebody asks a question that's
going to take 30 minutes to answer at
459 what do you do that's an interview
question we're like and we need you to
be honest because if you say you would
work but you would actually be
dissatisfied you're not going to do
either of us Justice because you'll come
in and you'll get fired quickly and
that'll be hard for you and hard for us
so like we want you to win at whatever
you do in life so lela's very big on
like human first in terms of how she
does everything that we do in the
company is like human first than
everything else you can tell that's why
like we're yin and yang for this this
kind of thing um but I think it's really
just about expectation setting and being
very truthful and as transparent as
humanly possible about like this is what
we expect if you don't like that or if
your worldview is contrary to this then
you shouldn't work here because there's
another company that totally shares your
worldview and you would do great there
and there's other people who feel like
Misfits in the companies that they're in
and then work all the time and they're
frustrated that no one else does and
they're all like telling them they
should slow down come hang with us cuz
we'll work we'll respond slack at 5:00
a.m. on Saturday cuz we're on that's but
like I just I just hardcore reject there
is a right way to do
things in that example you've touched on
something I wanted to talk about which
relates to your first book I believe
offers making offers to people yeah I
read that you said um if there's one
skill you have it's making offers what
do you mean by making
offers so so uh offers are the terms of
exchange so I right before I started my
first gym I went to this weekend
Workshop to learn how to Market and get
this this
2013 it was on Facebook ads and so I got
lucky so I learned how to run Facebook
ads in 2013 two weeks before I started
my gym this is when you're getting Penny
clicks and you could put a girl with a
bikini and say weight loss click here
and it would run and so at this thing I
hadn't opened my gym yet and the guy was
like a gym marketing dude and he said do
you know the secret to sales cuz he
could see I was wayar over my head all
the other guys there were gym owners
except for me and I was like yeah
because i' never at that point had never
sold anything I didn't even know the
word sales was a thing that's how out of
it what I was and so he pulled me over
the side and he asked me that question I
like pulled my notebook out to like
learn the secret to sales as though it
was one line and it kind of was he said
make people an offer they'd be they'd
feel stupid saying no
to and I like wrote it down and I
highlighted it and that actually became
like a core concept that we do in every
bu in every business that we have which
is like how can we make this offer
better how can we make it more valuable
and that was why defining value was such
a key thing because people like provide
more value make valuable content I'm
like what does this mean and so we
boiled down value into four variables um
and then there's things that enhance
value but like core variables and then
things that enhance so like one is like
what is the overall dream outcome of the
the customer and so a difference inje
position is like for guys if I say I can
help you make more money versus I can
help you lose weight most guys would pay
more for the thing that will give them
more relative status and so in that way
between two types two categories of
outcomes this one will be more valuable
okay cool now within everything and
let's call it weight loss because that's
an easy one everyone can understand
within weight loss every other thing
between a $5 ebook and a $50,000
liposuction surgery the difference in
those prices are the other value
variables and so the second variable is
perceive likeu of achievement which is
if I buy this thing How likely do I
think I will get the outcome and so if I
have a surgeon that's going to do this
liposuction for example and it's the
first surgery they've done out of
medical school and there's another
surgeon that has done 10,000 and has
10,000 F Stars which one would I be more
likely to go to the 10,000 festar
surgery even if it actually takes that
guy less time to do it how unfair but my
perceived lik of getting what I want is
significantly higher so it's actually
opposite of
risk those are the things that we try
and enhance in the offers we try and
have a very compelling dream outcome try
and make it very likely that they're
going to succeed and give it there's
lots of elements that make someone feel
like it's likely they'll
succeed on the bottom half of the
equation so it's a fraction there's two
on the top two on the bottom you have
time delay between when they buy and
when they get so if someone were able to
click a button on a website and
immediately look at their stomach and
have a six-pack that would be incredibly
valuable right on the flip side if it
takes them two years in order to get
that it's significantly less valuable
and so for that same reason you have to
arm russle someone to get them to buy a
personal training package you have to
spend an hour and a half to get them to
buy a 20 pack of trading trading
sessions whereas women walk into the
doctor's office to do liposuction and
drop 20 times that amount of money
because the time delay is nothing you
get on the table you wake up and you're
thin
right then the last the last variable is
uh effort and sacrifice which is two
sides of the same coin so effort are the
things that you have to start doing that
you don't want to do as a result of this
purchase waking up early getting sore
like in the workout
example eating Foods you hate on the
flip side the sacrific are the things
that you have to give up that you don't
want to give up as a result of this
purchase and so that might be sleeping
in eating the foods you enjoy Margarita
Mondays whatever and so when you look at
these variables each of them has a has a
has a evil twin right so you've got
perceived like of achievement which is
the positive and then you've got risk
which is the negative you've got a time
delay which is the negative version
you've got speed which is the positive
version you've got effort and sacrifice
you've got ease right and so when we're
trying to make an offer we try and think
through each of these elements of value
and think how can we maximize the upside
make it super super likely they're going
to hit it paint the vision that they
have it and then on the bottom side
minimize the time delay between when
they buy and when they get and how much
they have to do because in a perfect
world The the moment someone says I want
that thing that beautiful dream outcome
they'd be virtually guaranteed they
would get it it would happen immediately
and it would be effortless and I think
that is the perfect ideal that we look
at in terms of value and as
entrepreneurs we innovate our way to
just keep trying to Chisel towards that
perfect ideal outcome that we'll never
actually get to the other variables are
like scarcity if I have one gatorade
bottle left on planet Earth it's
significantly more valuable I didn't
change anything about the bottle itself
but it's significantly more valuable
than if there's unlimited Gatorades
right urgency is if Gatorade no matter
how many Gatorades there were on planet
Earth I'll give a different example if
JK Rowling uh decides that uh she's no
longer going to sell Harry Potter
digital copies ever again as of tomorrow
there will be a lot of sales of the
digital copy even though there's
unlimited units scarcity is a function
of units urgency is a function of time
and so scarcity and urgency add to the
value by enhancing those other four
variables there's more but like those
are the core things that we look at in
terms of when we're trying to make an
offer uh for a business and so that
becomes very relevant when we're trying
to increase price uh for a business that
we take on so I'll give you an example
we had a PR Company that we invested in
that was a generic PR Company for like
small business owners and they had
really high turn but they had a really
good sales engine I was like okay like
there's something here but like I think
we need a tweet I just really like the
founder 85% of their customers were
small business owners and turned out in
like three or four months 15% of their
customers bought the most expensive
package and stayed like
forever and I was like hey crazy idea
what if we only served these customers
and they were people who wanted to get
fundraising very different than the
traditional like dry cleaning store
plumber whatever and so we redid the
entire business model around finding
only that Niche we only cold called cold
emailed people who were in that very
narrow window were able to 10x our
prices because we and we got higher
response rates to the emails than we did
before because now we were targeting and
speaking very specifically to an avatar
and now we could provide so much more
value to that specific person and so
that's the maybe if Caleb answer from a
business perspective like solving that
equation is probably the thing that I
enjoy the most because it is how I feel
like I've unlocked the most value in a
business which is like what are all the
what are all the good things this
business has what are all the things it
can do okay is there a way that we can
rearrange it for a specific customer
that will make significantly that will
make what we do significantly more
valuable to them and then that's what we
try and repackage and when we do that
that's often times when we get like with
launch for me I had the knowledge of how
to help people lose weight have the the
nutrition plans I knew how to sell I
knew how to Market but it was only when
I like rearranged the variables that I
went from making a few million dollars a
year in topl line revenue and basically
no profit to millions and millions and
millions of dollars a year in topl line
and bottom line profit simply by
rearranging the variables and that was
just so ingrained in me that from that
point going forward I was like I just
have to make things that are so good
that people will feel stupid saying no
and if we can't get enough people to say
yes we need to make the offer better and
to me that's been like the single thing
that it affects all aspects of the
business it's the highest leverage thing
I think you can do in the business which
is why it was the first book because
answering the question what do I sell is
the first book the second book leads is
to whom do I sell it I got to get leads
right and that's the second book but
that affects pricing it affects profit
affects marketing it affects sales
affects delivery like getting the offer
affects everything and it's one of the
hardest things to change because it
affects everything but it also has the
most ability to unlock incredible wealth
or value in a business and the concept
there is incredibly transferable when
you were going through the equation
sounded in some parts similar to an
equation we used to have for
competitions when we were trying to get
people to sign up to competitions the
idea when we sort of like a it was an
equation where on one end little
investment so just click here and you're
entered High perception that um you have
a chance of winning so if there's 10
prizes and you can see there's 10
entrance your brain goes okay all I had
to do was click and then
um in the competition aspect we thought
a lot about credibility because that's a
big factor in competitions like do I
think anyone's going to win and do I
trust these people to even give out a
prize um and it's even the same thing
and it's even the same thing in
content when you're thinking about a
title for your YouTube
videos five minute six pack abs
yeah yes is a fantastic equation little
investment high potential reward
apparent
um and that's also yeah there's even
another thing which I've thought about
which I've not been able to necessarily
explain which is why people are more
likely to click on things I guess it's
ease when it says things like five steps
to finding love versus like how to find
love five steps I guess it's that ease
Point feels more accessible just five
steps yeah perceive legga of achievement
like what's my risk of not achieving if
there's five steps that feels easier
than just how- to maybe
when you um when you think
about where you are in your journey um
as an
entrepreneur and you think about it
maybe as like Steps how far are you up
that
staircase would you not know I was like
I I felt like that was going to be the
question that you were going to ask and
I was thinking I was like I feel like
every entrepreneur feels like they're
just getting started like you talk to
guys in their 70s they're like I'm just
getting started you know um I mean I I'm
about to cross a decade of being no I am
right just at at the decade point for me
from the first business I started to now
um so I feel like I've got a few seasons
left you know if I can keep living uh
which I'd be stoked about if I can um
let me ask a different question Caleb in
the corner who works for you he's your
cretive director if Caleb said to me no
Caleb said to you he said
Alex I want to be a millionaire
yeah what would you say to him what
advice would you give to me he says
listen I've heard you doing all these
podcasts you're running around I've been
filming the camera but I've been filming
I've been listening yeah and this
millionaire stuff this sounds amazing
yeah so what advice how old are you
Caleb 29 what advice would you give to
29y Old Caleb if he said to you Alex how
do how do you knowing me how do you
think I become a millionaire so there's
a lot of ways to do it it just depends
on which way you want to go so say first
off you can stay at acis.com that'll
probably happen on a long enough time
Ron just because we're going to get
really big we're already pretty big and
we're just getting
started um so like I I genuinely believe
that and that's 100% my goals that every
single person that that we have um
becomes very very wealthy um because I'm
going to die and it's not going to
matter anyways and if everybody else can
make some too great um so that is a path
another path is he peels off and goes on
his own and starts a business of some
sort and so it depends on whether he
wants to make the business itself what
his core skill is which would be like
media and maybe services around Media or
using the skill that he has of media in
an opportunity and get two or three
other people to maybe co-found it with
who have other complimentary skills and
then he just runs that division or
portion of the business uh within the
larger context and that's like a classic
question of like I'm really good at
making wallets like what do I do it's
like well you can continue to make them
and then when you can't make as many as
you have demand because you're so good
at it you can either raise the price and
just continue to keep raising the prices
until eventually become Versace of of of
wallets and you make tons of profit but
you don't have tons of units and that's
okay and you're a luxury brand or you
put on the put on the business owner hat
and you say okay how do I mechanize the
wallet building process and I become
more busy and so I think it's like do I
want to be the artist or do I want to be
the entrepreneur both of them are fine
it depends which one you feel like
you're more naturally inclined to or
have a higher likelihood of success
doing I like the game of business I've
played lots of different games in terms
of Industries like I like the game
overall I don't feel like I have a
particular are like I don't think I'm
really good at any aspect of business I
feel like I've been decent enough to not
make one of them the constraint like I'm
not a great copywriter but I'm good
enough that that's not going to be the
limiter like I'm I'm good enough like
I'm good enough at hiring that I can
make sure that that's not the limiting
factor right and so that's kind of how I
think about it in terms of business
growth overall and so it' be the same
thing with Caleb is like we have to
identify what the constraint of the of
the system is and then
so this is one of my favorite topics
um many skills like 1 plus 1 equals five
when you put them together so let's say
you have somebody who's really good at
math in the beginning that as a skill
not super monetizable right okay well
then you learn bookkeeping okay well now
you had a proclivity for math but you
learned something that um has value in
the business World okay then you learn
to you know you get your CPA now you
become an accountant okay more valuable
um then you start studying around uh tax
law and insurance and you're like oh
significantly more valuable then you
learn how to how Capital markets work
and how debt markets work right and and
you understand how mergers and
Acquisitions work and all of a sudden
you're a CFO and then you learn how to
sell and promote a little bit all of a
sudden now you're a rain maker and so
you still needed to be good at math but
when you stack these other skills on top
of it the original math skill becomes
significantly more valuable when you
have these skills on top but each one
kind of requires the one before which is
why one of the things I hate about kind
of the entrepreneur World a little bit
is like they'll learn something new and
then poo poo the thing before it's like
I'm not upset up the teacher who taught
me arithmetic as I learned algebra one
was necessary for the next and so um as
entrepreneurs a lot of times it takes I
think the self-awareness to say like
where am I at on my skill stacking
Adventure right and each skill every
skill you add to your skill tool belt
makes the rest of your skills more
valuable which is why I think it's so
cool which is why I'm such a big
advocate for Education overall and
that's I mean mission of acquisition
knon make business accessible to
everyone um that's why we put all this
free stuff out there is because like if
we can give people enough skills they'll
be able to stack them on their own and
then just achieve whatever they want in
a totally different way if you'll allow
me to go there it's like you look at
Jay-Z right maybe he was somebody who
naturally had Rhythm right and so then
all of a sudden he learned how to rap
okay took his rhythm put in a WAP okay
and then he made his first CD okay and
then he learned how to promote o
significantly more valuable and then he
learned how to make a label and then he
learned how to recruit other artists and
so he still needed to learn how to know
how to promote the other artists if he
didn't know how to promote at all he
wouldn't have been able to do it but
once he had the label he got
significantly more leverage on the skill
of promotion and he could recognize
people because of his skill in rapping
and Rhythm and so like each of these
skill stacks on top and then eventually
he he pinnacled into Beyonce as his as
his top skill I'm just kidding um like
where's he going um but no but like
that's the idea so like it and that's
why I'm just like learn the skill find
the next skill and and the nice thing is
that it doesn't even matter how
disperate the skills are like if Jay-Z
is really good at math and understands
Capital markets and understands the
label those combine into another cool
malange right a little French word like
mix of skills that's like unique to
Jay-Z and the longer you play the game
the more skills you get and the more
unique your mix of skills is and that to
me is like the coolest part about
business and just like education in
general I I I stumbled across a bit of a
a similar but maybe adjacent idea um in
my career where when I learned when my
company went public on a Stock Exchange
in um Europe I then learned from an
investment Bank when we were having the
meetings with the banks we went on this
road show met 20 different investment
Banks we considering an IPO um in
another country they told me that our
business would be worth four times more
if it was just on a different stock
market if you move it to the NASDAQ the
exact same business would be worth four
times more which meant that my net worth
would be Forex just by taking the exact
same business and moving it to a
different Stock Exchange and I thought
about that a couple of years later when
I was thinking about the skill set that
I had acquired over my career which was
this skill set of marketing and social
media and Entrepreneurship and I was
thinking you have to not just have the
skill but know what Market to apply it
to and what ended up happening I've
never told this story before but
um I looked I looked for an industry
where my skill set was in least Supply
but highest demand and return the
greatest and it turned out that industry
in terms of social media marketing and
storytelling I felt was most in demand
and would return the greatest
value for companies that were about to
IPO because essentially when you're
going to IPO if you have a good story it
can swing your valuation by hundreds of
millions or in the case of the first
company I worked with when their IPO
listed at 3 billion um billions yeah and
so my skill set of social media and
marketing I could do what with it I
could go help a local gym and get paid a
th000 bucks or I could go help a company
that was in the leadup to an IPO that
was you know where I where I can
potentially had hundreds of millions in
value and take 7 million yeah as part of
an equity deal so upon leaving my first
company the equity Arrangement that I
had was
valued somewhere between four uh I'm
going to say between depends because the
share price fluctuated but I think on
the day of the IPO the equity that I got
for for the 9 to 12 months work that i'
done was worth in the region of 7 to8
million
right nine months work yeah basically
freelance yeah you know same skill stack
but apply to an industry that would
would pay me more for the same skills um
and so I thought a lot about that and
that's ultimately why we started our
company which is now called flight story
we have um probably the time of the
Airing there about 100 people we started
the company about about a year and a
half ago oh crazy and that's basically
that's applying the skill set we have to
Industries where that need it and we
started out in the IPO Market did a
little bit of work in this um biotech
Market um and now we've kind of
broadened out but people don't think
about that a lot you're like my skill
set where is it in highest demand and
can pay the most 100% I thoroughly agree
with everything you just said I also
think that that's a skill
I wish some just said it to me oh yeah
totally and that's the like information
to be like the most like uh you know the
biggest debt one of the things I um I
love saying this but like the biggest
debt all of us pay is ignorance and so I
I heard this close at this pitch years
ago and this guy got on stage and he and
he was like Hey ma'am he was like how
much do you make she was like $50,000 so
he wrote $50,000 on the Whiteboard and
then he wrote A Million Dollar on top of
the 50,000 and he subtracted raed it and
said $950,000 he said you pay life
$950,000 every single year for not
knowing how to make a million dollar a
year and it was a crazy concept he was
using it to close the audience but I
like the most expensive thing that all
of us are paying for is the information
that we don't know and that's like both
frightening and also incredibly exciting
because
like fish in the best ponds right like a
good fisherman knows where to fish and
everybody can put a hook and a and a
thing and stick it over the water but
like the best fishermen know where and
when Etc and that's exactly the story
that you said was like I had the hook
and I had the The Reel and all that
stuff but like I went to where the best
where the best fishing was and like to
me that's skill same work yeah same
amount of time same Rod more
zeros one of the things in the first
book is like you want to like sell
better customers so if you want to sell
better customers yeah like the it's the
exact same thing you just said which is
like if I were to do cro work so
conversion rate optimization for a
website that's e-commerce
and I work for a store that's doing a
million dollars a year and I say cool
I'm able to increase your conversion
onite by 20% Okay cool so now that's
doing $1.2 million a year I made
$200,000 in value and maybe I can get
10% of that I get 20 grand okay cool I
do the same work to a business doing
$100 million a year I make them $20
million for my 20% bump and I get 10%
that and I make $2
million 20,000 2 million 100x same work
to your point and to me me that's skill
like to know that simple simple fact
like I had this tweet that went super
viral which was uh solve rich people
problems they pay
better lot of controversy around that um
but it's true and so find the people and
a different way of saying it is find the
people who value what you have the
most and I'm sure you've heard this have
you heard the story of the the father
and the son with the car no okay so
maybe I have it's good it's good so
there's there's a father who givs his
son an old beat up car and he says you
know hey I don't know if it drives or
not but you can take it down to the um
the dealership down the street see if
you can trade it and get some money he's
like okay so he goes down the street
goes to the dealership they say we'll
give you a th000 bucks for it and he
come you know hears him out comes back
home he's like Dad they say give me a th
bucks he's like okay he's like go to the
impound yard where they you know break
the cars up just for Metal He's like see
what they'll give you goes there and uh
the guy's like ah I don't know this
might be 500 bucks of metal kid like you
know comes back home he's like Dad you
know he said it was going to be500 he's
like okay he's like hey go down the
street to that uh that antique uh
dealership see if they've got anything
that use car lot he's like okay so he
goes down there talks to the guy comes
back home super EXC he's like Dad you
won't believe it he's like this is a
historic car there's only like 10 of
them left he's like it's worth
$100,000 and so the father smiles and
he's like and the lesson I want you to
know is that it's not necessarily who
you are but the people that value you
the most and so you can talk to
different people and go to the people
who value you and I just I I love that
story because from a it's a Hu it's a
huge business story in terms of like
sell sell where the fish are where the
big fish are like if you if you're going
to go Hook Fish go to go where the
whales are um it takes a same work but a
lot of it's just belief people don't
think it's possible and so a lot of
times you have to just keep leveling up
and you sell your first $10,000 thing
you sell your first $100,000 thing sell
your first multi-million dollar package
you realize it's the exact same thing
it's just so maybe if I'm list if
anybody's listing right now it is the
same thing it's the exact same thing and
sometimes it's
easier it's normally easier like you
know you've seen that Meme that says
like uh so what exactly am I going to be
getting for this $50 thing right and
then it's like uh $50,000 clients like
wire sent yesterday like what do else do
you need like it's and that's totally
true um but I think there's a skill in
understanding where to
fish certainly a skill um information
it's information it's even knowing that
there was another Lake over there in
part and and that's why like listening
to conversations like this is so
valuable for people because it lifts a
curtain and you go what the [ __ ] you
guys were behind here the whole time
partying that's what my business life
has been like it's like gradually like I
think I heard Kevin Hart describe on Joe
Rogan one time where he said there's
this other room yeah where these people
are playing this other set of money
games yeah and then when you get in that
room you get you're almost pissed off
that nobody told you this room existed
but then there's another door yeah yeah
and then you get through there maybe a
couple of years later and you find these
other people these [ __ ] billionaires
that are playing another set of games
and you're going what and they're
chilling yeah they're just smoking
cigars they're not even doing any hard
work can you go tell me the games that
you guys have been playing in here yeah
and then again the frustration is and
that's kind of what I feel like in my
business life it's been like where at
the jump I'm charging I don't know I
remember my first we found our first day
from 2014 charging I remember the
package we did gold silver and bronze it
was like you know like $200 package for
like support and then $500 and then the
gold package where we threw everything
in for $1,000 and I remember my one of
my first clients um accepting that and
then I think today like the only
difference okay there's skills that have
increased but information is the big
thing knowing how to do it you know
um when you think about curtains that
have lifted that have really shifted the
games you play from a value money
perspective like where someone's Turned
the Lights On You [ __ ] of course yeah is
there anything else that comes to
mind like big macro games yeah um I
think a big you know when I the
big I will answer it with the stair
steps of how each order of magnitude
change in my income so when I went from
being an employee to self-employed I
went from making four figures a month to
five figures a month and that was for me
just like like I'm now in control the
level above that was I started having
other people who worked for me I didn't
even know that was possible sounds crazy
like I was like you can hire people
because my my members in my gym were
like you know other people can work here
I'm like cleaning the floor and doing
the marketing and teaching class they're
like I was like didn't think about that
bottleneck right and then went to six
figures a month right and then from
there stayed there did the turnaround
business still had the same
organizational structure had another
degree of Leverage and so the next
degree of Leverage was that I started
licensing so digital right so the cost
for you cost of goods is basically
nothing and then that's when things
started skyrocketing that got me to
seven figures a month and then eight
figures a month was using leverage
through Capital which is where you know
we're at now and I would imagine that
nine figures a month will probably be
some level of technology or more uh
media on my side but all of these things
are about leverage and so this is like
one of my favorite Topics in the whole
world but if we Define leverage as the
difference between what you put in and
what you get out so if you have a lot of
Leverage you put a little bit in you get
a lot out if you have no leverage or low
leverage you put a lot in you get a
little bit out and a lot of times people
who are listening to this and are not
making as much money as they want
they're putting lots of input in and not
getting a lot out they have low leverage
opportunities and so understanding how
to get more for what you put in is the
game overall and so the first level that
I described was Labor it's just work
first I was working for someone else
then I worked for myself then I got
other people to work for me first level
each of those levels was more leverage
above that I had media which is the
thing that I was licensing out so
another degree of Leverage I made it
once and I could license it out Infinity
on top of that I have capital I can take
capital I don't have to sacrifice time
in order to get something for it so it's
high input output um above that would be
some sort of Technology you build the
code once in theory obviously you
continue to improve the code but
theoretically you build the thing once
and then a million people can use it and
so you want to Stack as many types of
Leverage as you can and as much of them
as you can because like Joe Rogan also
has a show and somebody else has a
podcast they both technically are using
media as their as their as their vehicle
for leverage but he has significantly
more of it so it's not just like I'm
goingon to use all these right yes but
it's also how much and to what degree
but like Facebook had other people's
money he used media had other people's
work Max leverage Amazon same thing
right they used every element of
Leverage and they maxed all of them out
and um that's that's at least the the
curtain that and nval talks about this
if you're familiar with Nal rant um he
talks about these things as the as the
the P the elements of Leverage or four
types of Leverage um and understanding
that for me has kind of been a blueprint
for wealth overall and then you know
Capital there's degrees of capital right
like you first you can get friends and
family to give you money then you can
get you know institutional money and
then you can get public money right
which you know you saw like the IPO
money like the fact that the NASDAQ was
Forex uh the dorf exchange is that where
it was right um there's just
significantly more capital in that
market and so it same work more zeros
um and so I love this topic because I
think that that's fundamentally like the
people who move faster in life don't
actually move faster they get more for
every
step are you happy I'm stoked Max Stoke
you know not asked this question for for
a long time but thought I'd ask it
because it's kind of similar to what
we've um been talking about today but if
um if happiness was like a list of
ingredients and it was a recipe
is there anything missing from your
recipe that would make you even more
happy and sometimes that recipe is about
balancing the ingredients you need two
eggs and 100 eggs yeah one cup of flour
yeah um for me it's always been about
autonomy I just be able I want to I want
to be able to do what I find interesting
um and that's that's been the core of it
and what I do will change but the core
of having the freedom to do it has been
the center of it and so for me I don't
think my freedom has I mean not in
recent history my freedom hasn't
fundamentally changed in any way and so
I would say that I'm the same level of
contentedness as I was last year um but
I find
engagement in what I do and that that's
that's I'll give you my definition of
Happiness which is doing what you like
to do with people you like and doing
that as much as you possibly can and
that's my simple
definition interesting
I I've tried to I've tried to figure
that out that like professional like I
guess it's not even a professional thing
but I've tried to figure out and
summarize that's a wonderful summary the
the place i' got into is if you're
surrounded by people you love you're
doing something that challenges you
which I think is an interesting one
you've kind of encapsulated it just by
saying things you like but yeah that
challenges you gives you a sense of
forward motion and
progress um towards a meaningful goal
and that's a subjective thing could be
raising a kid or making a million
dollars whatever I think that's kind of
what I call it Mya guy if I find if I'm
in that state and it's a state um I
think I'm
happy we have a closing tradition on
this podcast where the last guest asks a
question for the next guest
oh without knowing who they're going to
be asking it
to I'm terrified why why does everyone
get so scared when I do this like aren't
my questions scary
like everyone someone's going to like
try and stick the neck like okay I'm
going to think of
it what going to get we have these um
conversation cards where we've taken all
the questions written in this book and
we've made them into cards so people can
play at home um I'm actually gonna slide
them over to you and just ask you to
pick one conversation card okay um I've
picked a couple there that I think are
stitch-ups so go from the middle okay
see what else we got here and the
question is what are the failures you
cherish the
most I'm going to give
two I am very grateful that I hated the
job that I had because I think that I am
the type of person because of how hard
it was for me to quit that if I had
liked a job enough I don't think I would
have left and I think I would have gone
to the business school and done the next
thing like if I had had a job worked for
people whatever it was that I enjoyed
enough just enough I might not be where
I am now and I think that I cherish the
fact that it was so miserable that it
got me to
change like that that that job changed
my
life from a like Soul
perspective um going through what I did
with Leila I cherish those times
because a lot of people live worst case
scenario years into their marriage years
into their relationship and then they
kind of like see what the other person
is made
of I got to do that before I married the
person and so there haven't been any
surprises since then and it's something
that's like shared misery to a certain
degree but like spiritual strength or
spiritual whatever you want to call it
um I know she's got my back and there's
an element to that story that I didn't
tell but when we really needed money at
one point I flew Leila out to do this
launch I couldn't go with her and I
actually I don't want to say broke up
with her but I was like I can't do this
right now and so for 28 days we were not
together and
most girls people would probably been
like screw this
guy um but instead Leila set the
all-time record for a launch that still
hasn't been
broken
and when she came back I was like she
stood tall when everything in my life
was crumbling around me and she like
made it happen and I knew that wherever
I wanted to go I needed someone like
that with me and so I cherish
the failures that of that entire season
because there were many um because I
wouldn't know what I have today if I
hadn't been through those tests with her
then man that's beautiful in the Diary
of a CEO we have hundreds of questions
that have been left by our guests and
we've put them on these cards and on
these cards you have the question that's
been left in the dire of a CEO the name
of the person who wrote the question and
if you turn it over there's a QR code if
you scan that code you can see which
guest answered the question and watch
the video of them answering it every
time I've done this podcast and every
time we've asked the kind of questions
we ask here I feel a tremendous sense of
affinity to the guest and our aim with
these cards is that you can create that
sense of connection through
vulnerability at home with the people
you love the most and I have some good
news for you as of today you can add
your name to the waiting list to be the
first in line to get your own set of
conversation cards at the conversation
cards.com we have a another question
which is the question that people leave
in the book I thought I just nailed it I
thought that was it I thought this is
the new tradition we talking about the
old tradition one last question Alex but
you did nail that so I'll be honest you
stuck that Landing um when do you feel
the most emotionally connected to
yourself literally my like heartbeat
thought was when I'm working like the
first heartbeat thought and then like if
I had to be really specific when I'm in
the throws of writing um I had a a
writing scholarship coming out of high
school I uh was the vice editor of the
newspaper I was the editor-in chief of
the literary magazine when I was in high
school I've enjoyed writing um it's one
of those things that for me like you
said like challenge like writing is a
thing is a monster that only gets
stronger and stronger and you get better
and better at writing and you see the
flaws in your writing the better you get
at writing and so it always feels like
it matches the difficulty matches my
ability at all times and so it's it is
the thing that I experience the greatest
degree of flow in the most
regularly makes a lot of sense answers a
lot of questions that we talked about
earlier on as well Alex thank you so
much for your time um and being here
it's been an incredibly diverse and
enlightening and honest and vulnerable
and inspiring and soul filling
conversation in so many respects and um
I I know for sure you're just at the
very start of your journey I asked you
about the staircase I know that you've
just got one foot on the first step and
I think it's going to be incredible to
watch um the next couple of seasons of
your life because you're destined for
incredible things there's absolutely no
doubt in that so thank you Alex
appreciate your time I appreciate that
thank you those kind
words I've now been a Hu Drinker for
about four years roughly so much so that
I ended up investing in the company um
and I play a role on the board of the
company but they also very kindly
sponsor the podcast and to be honest
I've never said this before but hu
believed in this podcast before anybody
else the CEO Julian um told me before we
even launched the podcast how successful
it would be and that hu would back it
and I absolutely have a huge amount of
gratitude for them for that support but
an even greater sense of gratitude for
the fact that they've helped me stay
nutritionally complete throughout the
chaos and hecticness of my tremendously
busy business schedule so if you haven't
tried out hu which I hope most of you
have at least given it a go by now try
it out it's an unbelievable way to try
and stay nutritionally on course if you
have a hectic busy schedule and let me
know what you think send me a tweet and
a DM tag me let me know what you think
quick one as you guys know we're lucky
enough to have blue jeans as a sponsor
and supporter of this podcast for anyone
that doesn't know blue jeans is an
online video conferencing tool that
allows you to have slick fast good
quality online meetings without any of
those glitches that you'd normally find
with other meeting online providers you
know the ones I'm talking about and they
have a new feature called Blue Jeans
basic which I wanted to tell you about
blue jeans basic is essentially a free
version of their top quality video
conferencing and that means that you get
immersive video experiences you get that
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limits on meetings and calls it also
comes with High Fidelity audio and video
including Dolby voice they also have
expertise grade security so you can
collaborate with confidence it's so
smooth that it's quite literally changed
the game for myself and my team without
compromising quality at all so if you'd
like to check them out search blue
jeans.com and let me know how you get on
DM me tweet me whatever works for you
let me know how you find it
[Music]
Ask follow-up questions or revisit key timestamps.
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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