Alex Hormozi Answers Your Questions

English

Transcript

00:00:00I just did an experiment two weeks ago where I posted a video from this very office just using
00:00:05my iPhone partially as a proof point to my own team of like we don't need all this other shit
00:00:09if the stuff's good people find interesting and valuable and if the stuff's not good we put as
00:00:15much polish as we want on it doesn't matter and so I would encourage you to think as little as
00:00:20possible about production and as much as possible the content that's inside of the thing that you're
00:00:23posting and when you do that you will probably do a lot better so with that being said we're
00:00:28gonna do Q's and A's and so let's ace some Q's or maybe I'll Q oh swap some swap my mic out let's
00:00:34swap mics out mic is swapped all right here we go what do we got senor we're gonna do we're gonna
00:00:43do Q's and A's can I put this right here yeah you can I'm gonna put this right here you gonna say
00:00:48how does Zavante? Zavante he's my my my guy who figured out how to do the live stream because I'm
00:00:52a boomer unk I think as far as he's older than I am now how old are you?
00:00:58Am I so dude I thought black of a crack that's what I was that's what I was thinking man
00:01:04I thought you had me I thought you were like in your 40s that's how you carry yourself yeah it's
00:01:07mature all right what do we got I operate a not safe for work video content business that has grown via
00:01:15organic content how can I build my company when I'm not allowed to post ads on normal platforms
00:01:21how can I hire in this type of business too without HR risks what was the first part I operate a not
00:01:30safe for work video content business that has grown okay so you operated not safe for work content
00:01:37business and the difficulty is that you can't post on platforms that type of content all right so
00:01:44believe it or not the solution here is you just build a personal brand that is called adjacent to
00:01:52not safe for work content so this would probably I think the technical term I just learned this is
00:01:55lewds not nudes so basically like content that is called provocative but doesn't show skin and there's
00:02:02tons of that type of content but at the end of the day what people want is they want a character that
00:02:06they find interesting and what I would encourage you to do is make content about that character if
00:02:12you're the head of social media for that thing that basically tells the depth of story honestly just
00:02:16like anything else right and so the fact actually in a lot of ways I think the not safe for work
00:02:22component so let me let me give you a different different example here so there's plenty of
00:02:29people who are you know famous actresses that they're you know like a nude from them would go crazy
00:02:34viral on the internet that's what TMZ and all these tabloids were kind of dedicated for right I was
00:02:38trying to catch them in the wrong moment or catch them on the beach whatever and so they have a
00:02:43huge amount of interest in not safe for work content right um without having to make not safe for work
00:02:49content and so it is a fundamental misconception that you need to make the type of thing uh to
00:02:54get the interest for the thing and so basically you just need to do the same thing any other
00:02:58influencer would do which is make content about the stuff you find interesting uh about you and be
00:03:02interesting and then as a result people be more interesting in you know not safe for work stuff
00:03:08yeah that was racy I had to like I was like how am I gonna answer this in a way that's not
00:03:12not provocative all right let's do uh let's do the next one at what point should individuals enjoy the
00:03:19fruits of their labor and live the life they work so hard to get to
00:03:29so what you ask is a personal question about risk which is at what point is it correct to consume the
00:03:37difficulty or the impossibility of answering that question definitively is because none of us know
00:03:40when we're going to die and so if you were going to die tomorrow you behave differently than if you're
00:03:44going to die in a week or if you're going to die in a year or you're going to die in 10 years right
00:03:48and since we do not know when we're going to die we plan differently because the the timeline that we
00:03:52have to work with um dramatically changes our behavior right um and so basically it's how much
00:04:01of that do you want to consume today versus tomorrow and i think to some degree it's how much of your life
00:04:06do you want on consumption versus investment like how much am i going to delay gratification in the
00:04:10future versus enjoying gratification today um and i do not think that there is a correct answer to that
00:04:15question because it is entirely a personal uh thing now me personally um i mean i think nirvana is you
00:04:23want to find a way to enjoy the game that you play that also builds something for the future and i think
00:04:30when you do that then you kind of you can in some way serve two masters all right let's uh let's do
00:04:37do another let's do another one do you feel like do you feel like private equity has been a force for
00:04:43good or a force for bad in regards to the life and spending power of the average american consumer
00:04:50all right this is a really really interesting question because i think you attempt to make a moral
00:04:55judgment on creation of profit and so to argue against private equity in my opinion is to argue against
00:05:03capitalism and so if you think that private equity is bad private equity is also just another term for
00:05:09private ownership and so do we think that private ownership has been overall good or overall bad
00:05:14well all we have to do is look at places that do not allow private ownership uh or capitalism and do
00:05:20we think that people have more good in those societies versus the ones that have more free markets and
00:05:23more capitalism and the argument for me is pretty stark black and white in terms of capitalism is
00:05:28better for people in general in terms of average living conditions that being said it does not mean
00:05:33that it is a perfect system it is an absolutely imperfect and flawed system and it is also the
00:05:38best one that we have right now and so i think what people struggle with is that they want to have a
00:05:42perfect world and because they do not have a perfect world want to damn the one that they're in
00:05:51these are some heaters these guys these are these are some great great preguntas let's that's spanish
00:05:56by the way for question all right let's go for the next one you always talk about learning before
00:06:02earning building skills and connections before focusing on money how do i know when i've learned enough
00:06:09and it's time to actually start earning so this is another question of delaying gratification um
00:06:18at what point do i have a sufficient amount to start now there's some people who started their
00:06:21first business and they're like i learned you know on starting my my business um
00:06:28i think it depends on the opportunity you're pursuing and also god it's a really good question um
00:06:34i think it depends on the goal so if you want to be a trillionaire i think learn like
00:06:46it's a really good question finding the right moment okay here we go i've better answer for you
00:06:52it's not about when it's about the conditions okay and so instead of thinking i think that i'm going to
00:06:57spend three years doing x y and z to learn uh and then at this point in three years i'm going to begin
00:07:02learning it's more what conditions would have to happen in my external or internal environment
00:07:08uh that would create the maximum likelihood of success of whatever my next endeavor i plan on
00:07:13uh pursuing is and so if i wanted to pursue a smaller endeavor the likelihood that i would be
00:07:18able to acquire those skills faster it goes up and the next question is to what degree are the
00:07:24skills that i'm learning going to transfer over to the opportunity that i'm trying to pursue
00:07:28meaning if i want to uh get into a small social media marketing agency that does lead gen for plumbers
00:07:34if i work at a small social media marketing agency that does lead gen for plumbers the likely that
00:07:38i'll be able to transfer the skills that i learned in that thing to whatever i want to do next super
00:07:42high if i want to then start a sas platform uh from there that doesn't serve agencies and doesn't serve
00:07:49plumbers uh and doesn't serve me as the customer the likely that you cross over those skills is lower
00:07:55and so i think the idea is that um i can't remember what vc firm does this but i really
00:07:59wholeheartedly believe in it which is that they only invest in founders that are the customer
00:08:03because i think there's something incredibly wise about trying to solve your own problems
00:08:07thank you so much oh there we go get the full yeah get the full doubt let's get the delts in there
00:08:12there we go maybe get some good lighting um and so tldr we want to make a list of what skills you
00:08:19think are going to be required to pursue the opportunity and we want to pursue those in an
00:08:23existing opportunity on someone else's pay where you get paid to learn and then once you feel like
00:08:28you've checked off an understanding of the component parts then you can start now do you need to do that
00:08:35no because the big flex here what's the fudge factor between what what if i have 80 knowledge
00:08:39and 20 that's not your figured out factor is going to be your ability to bridge that gap so you could
00:08:45conceivably if you have a really strong figure the out uh muscle start with zero and still figure the
00:08:50out the whole discussion here is how do we minimize risk and maximize likelihood of success
00:08:57that was a good one i didn't really think through that one that was a great question
00:09:01let's do it what are the best businesses to start you've seen with very little upfront capital
00:09:08and why okay so big picture if we think about what types of like when we think it's something
00:09:14businesses to start because i think it's very heavy just think what do i sell much easier all right
00:09:21so am i going to sell stuff physical products am i going to sell pens right am i going to sell software
00:09:27am i going to sell um which is bits right am i going to sell uh service like work of some kind
00:09:34and so if i know that these are the different kind of buckets of things that i can sell
00:09:38then the ones that don't cost money is typically going to be stuff cost money so we can't do that one
00:09:45if you need a physical location that costs money and so it's going to probably be you're going to
00:09:50acquire skills and either use those skills to create a digital product which is either media-based or
00:09:55software-based that does something which you can do that for free or basically free or you do you have
00:10:02a skill and you use that skill and sell that skill to other people who don't have that skill and so when
00:10:07we're thinking about who we target if you're selling either those conditions is that you want to sell
00:10:10to people who either don't know how to do the thing don't have time to do the thing or don't have the
00:10:14desire to do the thing and so those are the three components of who we want to serve and we want
00:10:19to serve the person who has the most amount of money who doesn't have the time knowledge or desire
00:10:23so that we can charge the most for what we do but either way there's tons of businesses that you can
00:10:28literally there's an infinite amount of businesses that you can start that cost no money to start
00:10:36i've heard you say that sales is one of the most important skills to learn how do you measure whether or
00:10:41not you've learned the skill of sales output baby very simple output can you get people to give you
00:10:48money that's it like have you gone to strangers and asked them to buy your thing if they bought
00:10:53your thing then you have learned how to sell if a higher percentage of people give you money after
00:10:57you ask them then you have learned how to sell better than you did before and so i think a lot
00:11:01of these questions ultimately like what's what i would encourage you to do and this is a more challenging
00:11:06skill set is can i boil down my question into math is there a way because oftentimes we discuss these
00:11:13amorphous things but we're really talking about probabilities we're talking about percentages
00:11:17probabilities how likely is it and when you talk in those terms then it's much easier to determine
00:11:21whether it's a good decision or not and so is my close rate of getting people to buy my thing low
00:11:27then i probably need to increase my skill set how do we increase our skill set find people who've done it
00:11:31well so you can see the behavior that is good modeled for you and then also role play aka practice doing
00:11:38the correct behavior the third element which i'd say if you have the ability to do it do it have
00:11:42somebody who understands the correct model and can give you feedback in real time on your own behavior
00:11:47which will then speed up the loop which is fundamentally why every sports team has coaches
00:11:50and trainers and all that kind of stuff good one though these are good y'all are y'all are heating
00:11:55up today you guys are cooking cooking with gas as the as the kids said all right what's the next one
00:12:01i'm a tech founder how would you go about finding ideas in the current economy if you do not have a
00:12:07product yet so really good question start with the customer don't start with the product figure out
00:12:15what someone wants and then go try and solve that and there's a number of different ways to solve
00:12:20it and um there's a great book by not by elon but about elon's process called the algorithm um i'm
00:12:25getting my whole team or i think most of my team already has read it it's a four-hour audiobook you
00:12:29can consume it in two hours so think about it's like a two-hour podcast but the the premise is very
00:12:33simple there's five steps i'm not going to break them down but what we what you want to do is think
00:12:39how do i solve this problem in the absolute most efficient manner possible and then do that entire
00:12:44process manually and then once you've done it manually over time you will be able to simplify and automate
00:12:49different steps of it so you can increase your margin and increase the effectiveness of the
00:12:52solution you have for a specific customer and sort of says like and this is why i think the question
00:12:56of like what business should i start go one level deeper which is what thing should i sell which one
00:13:00level deeper is what customer problem do i want to solve once you once you figure out the problem you
00:13:06want to solve then figuring out what product or way that you want to solve it is much easier
00:13:10and i'll give you one more kind of like filter for this the reason that so many of you have trouble
00:13:16figuring out what business to start is because you're trying to pick from infinity
00:13:19you need your mind needs constraints and so said differently if you've heard of the jam experiment
00:13:25so they had two different supermarkets they had 24 types of jam out and they had people they free
00:13:30samples and then they asked people to buy a jam and then they had a different table at a different
00:13:34supermarket that same supermarket that only had i think three jars or six jars of jam and the three or six
00:13:39jar of jam table the much lower amount sold far more jars of jam so why is that so it's the paradox of
00:13:46choice which is the more choices we have the more difficult it is to make a choice and the more
00:13:49likely we think that it is that we're going to regret the choice we made and we're also going to second
00:13:53guess the choice right we're going to think wait maybe i should have done something else right and so
00:13:58the reason that i think steve jobs started the first ipods as black and white is because he understood
00:14:02this basic psychology and i think they made mistakes by having all these different colors which i think over time
00:14:05they turned back down and so we we approached the problem of creating a business the same way which
00:14:12is if you had two businesses to pick from you'd be easy it'd be easy for you to pick one or the other
00:14:16and so with that you'd be like i'll walk you through the experiment look at two businesses doesn't matter
00:14:22what they are look around the room look around your wise you're driving here's two businesses which of
00:14:26those two businesses would you rather do once you answer the question because you'll be able to pick that
00:14:30pretty easily the next question is why and so once you have the why then that starts to give
00:14:35you your own preferences of what you're really looking for do you want in person do you want
00:14:38remote do you want a digital business do you want a service business do you want uh your physical
00:14:42products uh do you want to work five days a week do you want to work seven days a week do you want
00:14:46to work two days a week do you want to work only in the mornings uh do you want to have a big team
00:14:49do you want a small team do you want like there are a lot of questions that you'd be able to answer
00:14:52um that if you answer that then very quickly you just narrow down the universe and so all of a sudden at the
00:14:57very end you might have two or three options to pick from rather than infinite and then you'll actually
00:15:01be able to make a choice and you'll feel confident about the choice because you understood the filters that you put
00:15:05in line in order to make the decision so hopefully that helps unconstrained thinking very hard to do
00:15:11let's do another another another hey alex 22 from kazakhstan for two years i've relied on anger
00:15:20energy drinks sugar and heavy metal to stay productive it got results it's hurting my health
00:15:27how do i build natural discipline well all right i'm like all right let's let's cool the jets here
00:15:34for a moment like you drinking energy drinks okay so you're drinking calorie free energy drinks that
00:15:40have caffeine so basically you're drinking caffeine all right well as long as it doesn't interfere with
00:15:44your sleep and you do it before you know nine or noon you're probably okay there i think uh you
00:15:48said nicotine nicotine there's people kind of split on i'm a big nicotine user i'm not saying you should
00:15:53um but there's a bunch of benefits that people have had i started using before it was cool
00:15:57um on top of that uh i think it helps with my add uh beyond that uh i think you just have to look at
00:16:04like your health stuff as in like you need to sleep well and if you sleep well then that's going to be
00:16:11like the 80 20 like sleep well work out don't eat crap if you use some stimulants in order to be
00:16:17stimulated and it doesn't interfere with your sleep or other components at work i think you're all right
00:16:22man i think a lot of it is just judging like somehow you have labeled your current activity as bad
00:16:27and i would kind of say like according to whom like what like what are we defining healthy as like if
00:16:34you can define healthy then you can define a level of work that does not interfere with that definition
00:16:41and there's plenty of people that i know that work incredibly hard that are also extremely healthy
00:16:45brian johnson for example the healthiest man alive he works all the time but he's incredibly healthy
00:16:53now some people say well i don't want his lifestyle fine but he has dedicated his lifestyle to health and
00:16:57so like i think a lot of it is like i actually don't even know i think you were just judging yourself for
00:17:03doing something and say why why can't i do it when it is harder i think you've aligned your conditions
00:17:08to increase the likelihood that you take the action that is desired and that is a good thing so do more
00:17:13of that as long as it doesn't interfere with other goals you have another question i'm a wedding
00:17:21photographer bad at delegating photo editing tried before hated results redid almost all how can i
00:17:29learn to trust the people i hire such as editors okay so first let's just define trust so trust is
00:17:37basically a history of a positive reinforcement with a person so for example and we started this this whole
00:17:43thing with that if you got something and then did a good job with it i would trust you more than if
00:17:48somebody hasn't gotten anything or got something and a bad thing happened right and so if what you're
00:17:53asking for is how do i trust someone which is how do i give them the opportunity to earn my trust
00:17:58meaning how do i give them the opportunity to do a good thing so we want to maximize the likelihood of
00:18:02success and so in it's most likely that you've been giving people tasks with a very small likelihood of
00:18:08success because you haven't give maximize the conditions around them so that they can win so that you
00:18:12could feel good about yourself so that you could say that somehow only you can do it because you are a
00:18:17special snowflake but i promise you you are not a special snowflake because you learned everything
00:18:21you learned as a human which means other people can learn it too and if you are good at teaching
00:18:24you can teach them that skill as well and you can maximize the environment around them uh to increase
00:18:29the likelihood that they're also going to be successful too and so this means that you need to train better
00:18:33and you need to train more robustly and likely you are not you are explaining and not giving them trial
00:18:39attempts meaning you need to say if this then that so do this thing and then have this outcome happen and
00:18:46then giving them feedback in real time if you give feedback to people enough times they will understand
00:18:51how to do it and then you will trust them more because you have evidence that they can do it
00:18:55and so i think what if i were to translate what you asked into what i think actually is happening is
00:19:01how do i get people to do exactly what i want without giving them any instructions and the answer there is
00:19:07you don't you're asking them to guess and then someone get it right i think that was the issue hope that
00:19:13helped another do you feel like private equity has been
00:19:21you often discuss how our actions come from our environments but you also discuss the value of
00:19:27reframes how do you decide when to use reframes versus environmental factors to influence your
00:19:33behavior why not do both like i want to win i don't really care whether it's because i have magic
00:19:43crystals in my pocket or i'm in synchronicity with the universe or because of vibrating at a higher
00:19:48frequency or because i removed everything in the room and only had a keyboard and a screen which made
00:19:52working the keyboard and the screen the most likely action that i had and so at the end of the day
00:19:56like why do we care i think you should just do whatever maximizes the likelihood of success i don't
00:20:03really pick at all i think some things are more emotive meaning more emotional and i think in those
00:20:08situations i think reframes tend to be easier to employ uh basically it's like a reframe can help you once
00:20:14you have you have an emotional outburst that's internal uh whereas i would think about environment
00:20:20more as how can i change the likelihood of me taking an action so if i've already tripwired i'm a little
00:20:24angry a little frustrated or something it's like how can i reframe this versus how do i make sure
00:20:28that i show up every day at the gym different but using both hey alex i've had a web design agency for
00:20:37five years but ai websites are killing my business should i do another business this is so interesting
00:20:44i had a guy who came out here and asked this exact same question and he said that he had a fear that
00:20:51ai companies were going to destroy his business and yet when i asked him how much are you using ai
00:20:56building your websites the answer was we're not and so the thing is there's always a bell curve in terms
00:21:02of adoption and if you are losing sales because of people using ai to build their sites then that is
00:21:08one thing but i think there's a more likely scenario which is that you just don't know how to get
00:21:12customers and you're blaming ai for it but there's plenty of people plenty of people with money that
00:21:18don't know how to use ai which has only increased your leverage in terms of your ability to create really
00:21:23valuable stuff for not a lot of time which i think means that you actually there's still in some
00:21:29ways there's more opportunity now than there was before if your real name contains sounds that most
00:21:38english speakers can't pronounce correctly would you keep your real name for your personal brand or adopt
00:21:43an easier name why i think it's up to you i think it's a good question uh i met a guy literally yesterday
00:21:50who did this exact thing he's a it was an indian guy who had a really long hard indian last name and then
00:21:54he just changed his last name legally to the the nature of the work that he did so imagine it was like
00:21:59alex carpenter wait a second alex smith alex wait a second people used to do this they used to change
00:22:09their name to what they actually did for a living alex gardner no yeah this is the oldest time so if you
00:22:17want to change your name to something that you think is more associated with the brand that you want to
00:22:20have people have done it for hundreds of years um and if you want to keep your own name because you're
00:22:24like this is really special to me then do it like i it's your name it's whatever you feel cool with
00:22:28i don't think there's i don't think there's a right answer there at all
00:22:33that was an interesting one history lesson that was fun
00:22:37oh let's uh let's cook shall we shall we cook some more with some more gas another i know you say
00:22:44don't switch businesses every time it gets hard but how do you know if you're just hitting a wall
00:22:49you need to push through or if the business itself is just not going to work out all right if another
00:22:56business of the same kind exists and is much bigger and more successful than yours then you simply do
00:23:02not have the skills yet yet to make it work it does not mean that this business is impossible
00:23:09or can't be done the only time this is a small minority of circumstances where something where
00:23:15it makes sense to push sorry pivot like change the nature of the business is where something has never
00:23:21been done before and you're trying to be the first one to do it and you don't know if people actually
00:23:25want the thing but if you're like hey i have a dry cleaning store and should i push or should i pivot
00:23:30well dude if you want to do dry cleaning there's plenty of successful dry cleaners you want to do
00:23:33longer there's plenty of successful longer you do hvac tons of successful hvac you want to do
00:23:37you know garage doors there's tons of success garage door people and so like i will almost always first
00:23:42look around and say is there anybody who's doing a version of this business that's doing well
00:23:46if the answer is yes then what are they doing that i'm not doing and then i just try and
00:23:50reconcile the differences between their actions and mine and so my first step is always to replicate
00:23:55before i iterate now to be clear if you want to create a one of zero company that's never been
00:24:00done before then you also incur the risk of you might not have product market fit which is that we
00:24:04don't know if people actually want this thing but if you're going into a market that already exists
00:24:08and saying like hey i want to help people lose weight if that market exists right and you're
00:24:12like i want to do it in a different way i want to do it online with coaching okay well yeah that
00:24:15exists i want to do with supplements that exists i want to do with peptides that exists i want to do
00:24:18with you know med spot or cool sculpting like there's a hundred if i want to do with ashwaganda group
00:24:22i don't really care there's a zillion ways that you can do it and are already proven and so i
00:24:27would say for 99 of you guys it is just you do need to push more and the pushing part is the is is
00:24:36is doing the repetitions with a feedback loop so that you iterate your way to success and so the key
00:24:43is not to do a thousand of the same thing is to do a thousand iterations so that by the time you do your
00:24:49thousandth iteration it is now good you suck in the beginning and you want to suck less over time not do a
00:24:55shitty thing a hundred times in a row and say why didn't it work
00:25:00have for someone who stutters what's happening there you guys try to try to try to try to double
00:25:08time me i see that by the way we're experimenting something new because we thought it'd be more
00:25:11engaging rather than me just squinting at the screen trying to read these uh the comments uh fast
00:25:16enough my team's pulling out the great questions um and then just having them read uh with ai kind of
00:25:22cool all right shoot hi what advice do you have for someone who stutters but wants to start a business
00:25:28because it's hard to talk to people and close sales really interesting um well a couple different
00:25:36scenarios here so one is there's plenty of businesses that don't require a talking person to make money
00:25:42so there's e-commerce there's digital businesses all those things you can do uh without being the person
00:25:47who's actually you know doing the selling option one option two you can hire somebody who can do the
00:25:51sales for you um option three is you can practice to try and get rid of the stutter um i'm not saying
00:25:57you know possible i'm i'm a stage five stutter i don't know that how it works um but it is not an
00:26:04impossibility um if what you're asking for is permission to keep trying because it is hard
00:26:10then think about how amazing the story will be when you actually succeed and then you would
00:26:14just say like dude i was able to make i was able to sell people with a stutter so if you think if
00:26:17you think like you're worried like i couldn't even get the s's out right and so uh and maybe don't sell
00:26:22stuff that begins with us pro tip your content is so valuable to watch how would i go about finding
00:26:31a mentor to help me on my path well i think we can delineate a couple things so first is there are
00:26:40people who give you information so think about the sources of truth or sources of information all that
00:26:45stuff's readily available on the internet for free i think what you're asking for is someone who can give
00:26:49you feedback right so someone who can train you in some way either one-to-many or one-on-one
00:26:53um that basically you can take an action and they can say change this try it again um and there's a
00:26:59lot of different ways you can do that you can hire vendors for that you can hire what i mean a vendor
00:27:02or mentor whatever you want to call it uh there's coaches for that there's sales coaches there's you
00:27:06know insurance sales coaches there's like i'm a big advocate of getting training like i'm an advocate
00:27:13of trying to hire an expert who is good at the thing to give me feedback so that i can shorten my curve
00:27:17to get to where i want to go um and i think there's like there's a couple perspectives on this which is
00:27:23that people i think some people with egos hate the idea that they want to pay for help i think that's
00:27:29silly um but that's up to you uh i don't want to have to figure everything out i would happily take
00:27:34the answers from someone else like this is not school you can pay someone for the answers to
00:27:37the test and then just take the test and ace it and so i like that um the other perspective
00:27:44is that sometimes you pay someone and you didn't get what you wanted out of it and there's probably
00:27:48three core problems that could have happened from that so number one is they promised something that
00:27:51was too big right that's on them uh the second is that you did not do the work right so that's on you
00:27:57um or you had unrealistic expectations that were independent of their promises and so in either of
00:28:05those scenarios you're going to be dissatisfied and so i would say that when i pay anyone for help
00:28:10i always make it my objective to make sure that it is not my fault and so i do that by promising the
00:28:17person and i say it is like i will be your best student that because there there is no way like
00:28:22i will follow this to the t and i will do more just in case because i want to rule out any possibility
00:28:28of failure on me and i will expect nothing and so when you when you approach education that way
00:28:35the likelihood of success is really high and i would say that i've been probably the number one student
00:28:39in anything that i've paid for which is a pretty bold claim but i think it's true um
00:28:47and the approach that i've had is just absolute violence um is that i will i will be religious in
00:28:54my adherence to the steps that they outline and i think what makes one person successful in a program
00:29:02compared to another person is the other skills that they have that the person who selected did not
00:29:08qualify so what does that mean so let's imagine that um to start a program of any kind you need to
00:29:14know how to read and you need to know how to write well if you've never read before you might get accepted
00:29:20into a program but then reading is a requisite which means the likelihood that you succeed is low but
00:29:24they didn't include it because they thought it was implied now there are skills that are like reading
00:29:28and writing that are more nuanced that people who teach and are not as competent at teaching do not
00:29:34know how to select for and so in so doing they sell people and sometimes people win and sometimes they
00:29:39don't now over time and i've heard this story a hundred times and so have you which is i bought four
00:29:44courses and then on the fifth course i made all this money but the thing is is that each of the other
00:29:47courses still gave you skills you just didn't have all of the skills to create the outcome
00:29:52and so let's say there's 20 skills the first one taught you four the next one touched four next one
00:29:55touched four and the last one taught you the last you know four that you needed and all of a sudden
00:29:58you made a dollar so you attribute all of your success to the guy who gets you the outcome but each of
00:30:02the other things that you that you went through still contributed to it it just wasn't enough to get
00:30:07you off across the finish line and so this is why i i have a tremendous respect for teaching in general
00:30:12because i understand the difficulty of getting someone across the line um but i also think that there's just as much
00:30:16responsibility on the students sake of like how bad do you want it and do you just want to have an excuse
00:30:20to prove that that you're right woe is you the universe is out to get you no there's no way to be
00:30:27successful like sometimes people set up games where if they win the prize they lose and i would encourage
00:30:33you to not play those games
00:30:38heating up we're getting spicy today spicy tuesday taco tuesdays is it taco tuesdays we should start
00:30:45doing taco taquito well taquito too you know i haven't done any spanish today i'm gonna get a little
00:30:49spanish let's do uh uh that's other question please another hi alex my name is everest i'm 26 and i've
00:31:05been running a tutoring studio for the last year but i'm stuck getting into dollar per hour battles
00:31:11how would you craft a non dollar per hour offer for this niche i'm gonna smoke this sell to gold
00:31:17sell to gold all right so i will say this until i die sell to gold said differently if i have a lady
00:31:24who's in front of me and she wants to lose weight i'm like you're 180 you want to be 150 you want to
00:31:28sell you want to lose 30 pounds i think it's going to take us 30 weeks and so our weeks are whatever
00:31:34100 bucks a week times 30 three thousand dollars so side here you get you lose your 30 pounds and if you
00:31:39don't i'll keep working with you until you do bingo bingo now in this instance in a tutoring situation
00:31:45right well what if they don't do the homework well then why don't we make a contingent on them doing
00:31:49the homework uh what if they don't x right and so here's the thing if you sell to gold think about
00:31:55what are the requirements or what amount of volume or what amount of actions would be required that would
00:31:59make it unreasonable for this person not be successful so said differently when i was trying to ace the
00:32:05gmat which is the kind of like the sat for for uh business school um i found this study when i was
00:32:12trying to figure out the most effective study habits for for doing the gmat and had this big
00:32:16meta-analysis that basically just proved of all the different study methods there was a direct one
00:32:21to one correlation with the number of problems solved and your score and as soon as i saw that i was like
00:32:26done i'll just do all the problems in every book and that's what i did and i aced it and i got above
00:32:32harvard's gmat score and so and to be clear i didn't start there i had i gained like 200 200 points
00:32:37or whatever on my on my gmat score just by i saw that one graph and what's interesting is that there
00:32:42are so many because there was this lie that we were told which is that like it's it's it's a measure
00:32:46of intelligence it is not a measure of intelligence it's a test is a measure of your ability to take a test
00:32:51which is a skill like anything else and so you should learn how to take tests if you're going
00:32:56to be measured generically on your test taking ability duh so back to the tutor if we know that
00:33:04we want someone to get an a and let's say you're they're at a b level or a c level we say what activity
00:33:09would be required in order for them to get that and then you sell to gold now the person is going to
00:33:13say wait a second you're going to charge me five times more than somebody else will i'm like right
00:33:17what they're going to do is they're going to say i'm going to spend an hour a week with your kid
00:33:21and then i'm going to give them homework which they're not going to do and then in 12 weeks
00:33:24or 12 hours right of 100 bucks an hour uh you're going to be dissatisfied if you work with me we're
00:33:29going to do way more work with your kid but i'm going to force feed the success through them and i
00:33:35will drag their ass across the finish line because they they will have no choice but to succeed unless
00:33:40they literally get to the test and then choose not to win but they will do the problems in front of me
00:33:46and if it takes a smart kid 100 problems and a dumb kid 300 problems to learn because rate of learning
00:33:51intelligence we just got to do more and so there is a certain volume of work that will make it
00:33:57unreasonable and so here's what gets more interesting we can select how much work someone
00:34:01we think is going to have to do based on their initial assessment that's why we do assessments
00:34:05so if the girl who wants to lose weight is 175 pounds and wants to get to 170 there's less work
00:34:11to do if they want to get from 175 pounds to 130 there's more work to do if you've got a 200 gmat
00:34:16and you want to get to a 700 a lot of work to do if you're at a 650 you want to get 700 a lot less
00:34:21work to do and so we have to gauge the gap between where they are and what they want and then how much
00:34:26work would it take for it to be unreasonable for them not to do it and then we sell to go period
00:34:32and you make the the work conditional on the guarantee bingo bingo all right let's do it next ademas otro
00:34:42i run my parents business but own zero percent i want to scale it but don't want to build something
00:34:47i don't own how would you approach getting equity ask bro like how do you think you're
00:34:54going to start a business of your own if you can't ask people right just ask them say hey uh
00:35:01like one of my my biggest frame for having hard conversations is tell the complete truth so the
00:35:06same way you're asking this question to me ask that to your parents hey i really want to scale this
00:35:11business but i don't want to scale a business that i don't own no equity in how do you think
00:35:15or my favorite question what would it take for me to eventually own half or me to eventually own 100
00:35:21and now you can have a conversation and then they will name a price meaning what it would take
00:35:26and then you get to determine because what it takes assumes success it assumes accomplishment of
00:35:31whatever you want and then reverse engineers a price tag which then you can choose to say is this
00:35:35reasonable for me or not if they come back and say well we've always wanted you to own the business
00:35:39and i think that if you work in it for the next 10 years we'll give you uh you know 10 a year
00:35:42for the next 10 years then you're like either that price is worth it to you or not now you might say
00:35:47well and you have to make that calculus for yourself do i think in that same 10 years i could build a
00:35:50business of greater capacity um without having to get their permission to do all the things that i want
00:35:55to do if that's true then prove it and if it's not true then don't complain but either way they
00:36:00will stay at a price and then you will pick whether you want to what you want to make the better
00:36:03but just state the facts tell the truth and say that to them like i'm telling you the best thing
00:36:08to do is ask the hard real question that you would ask me to them i've got this employee who's been
00:36:13showing up late and they're you know they're taking all these coffee breaks and i don't know if they're
00:36:17doing anything say that to them hey you've been showing up late and you've been taking all these
00:36:22coffee breaks and i don't know if you're doing anything help me help me understand what you're
00:36:27doing so that i don't have to ask these thoughts just say what you're going to say when you talk
00:36:31behind someone's back tell them just remove the insults just state the facts we're cooking today
00:36:39i'm feeling it oh it's a heater all right we got a heater coming mr moza if i know we're just apes
00:36:46on a small floating rock in the middle of the universe and nothing really matters are morals good and bad
00:36:53even real i mean i think you asked a philosophical question obviously um i think that if you believe
00:37:01that there is nothing then you would make the argument that there are no morals from an objective
00:37:05capital m perspective now there are absolutely rules of behaving in in society that will increase
00:37:10the likelihood of reward and punishment as you live as a human being and so as much as we can say and this
00:37:16is why i think there's there's low utility in the question it's one of these things where like
00:37:21introspection is a modern invention right like if you look at you know way long ago right like there
00:37:28weren't therapists until like 100 years ago and so we we struggle with these types of questions because
00:37:33we have too much time we don't have to worry about food we don't have to worry about shelter and so we
00:37:37we plague our minds with things that that don't really matter and so even though we might make the
00:37:41argument that none of it matters neither does the question and so then the question is what like
00:37:47what is the relative utility that i'm going to get from answering this and so unless it changes something
00:37:51about your behavior in a meaningful way then it's really not worth wasting the revolutions on and
00:37:56so i think there is a a real there's a there's a real case for productive questions it does the
00:38:03answer to this question is it going to change my life in some way and so for many of you because
00:38:07some of you guys are forget my french ask holes uh you ask questions and then there's always more
00:38:14questions right and you you you get the answer but then it changes nothing about your behavior which
00:38:19actually means that you ask questions as a form of procrastination and use the answers as a form of
00:38:24entertainment but real and so we should only ask questions where the answers will change our behavior
00:38:34and so for you know the individual who asked this question um are you realistically going to go because
00:38:40people people straw man this and say well if there's no good and evil then i'm going to go around you
00:38:45know mogging the streets and lighting things on fire it's like yeah and you will be stopped in short
00:38:49order with men with guns and they will win and so it will be short-lived and is that really worth it
00:38:55probably not and so what do we what are we asking about will it change anything for you probably not
00:39:02because you're probably not gonna take this question do anything with it um and so for those types of
00:39:05questions i kind of just keep living my life and move on hope that helped
00:39:12all right let's just begin cooking with more guys hey alex i need your advice desperately
00:39:1918. medical school don't feel like i belong here magnetized towards entrepreneurship
00:39:27okay then leave dude i thought there was a question coming leave leave so i'll ask the question that
00:39:34you're not really asking which is you're afraid of leaving because someone who's not you will make
00:39:39you feel bad for it because if it were only up to you then you would leave so it means that there are
00:39:44other people's rewards or punishments that are basically acting as tipping the scale on your
00:39:50behavior and so my way of d when i have something that i want and i am not doing it i ask myself
00:39:57who is influencing my behavior in a way that's aversive to my goals and so what's really interesting is
00:40:02that when you feel like you're you feel this tension where you're like hi this can have conflicting
00:40:05priorities right it's very normal right i want to be really healthy i also want to be a great dad i also
00:40:10want to be a great spouse i also be good for a community i also be good for the environment i also
00:40:14want to work on my personal growth right like and i have to do all of that in in 12 hours right or
00:40:20whatever however you're awake well they're conflicting priorities i want to do right by me i want to do
00:40:27right by my siblings i want to drive on my parents i'm gonna be right by my friends and they want different
00:40:31things and so at some point you have to decide a priority of reinforcers meaning you might decide that your
00:40:38family means more to you than your business and that is okay and you might decide that what you think
00:40:43about you means more than what your parents think about you if you can get what you think about you
00:40:48and what your parents think about you to be aligned you won't have any hesitation but when there's conflict
00:40:53one of them has to win and i would encourage you to do the one who's going to be with you the longest
00:40:58which is you felt that one felt that one shall we cook with coal instead this time let us cook with
00:41:09coal bad for the environment but it's okay no coal was made or heated or cooked in the making of this
00:41:14answer all right let's go alex how do i convince rich clients to hire me when my case studies are all
00:41:20from lower end small businesses bro great question so i'll give you a tactical answer um which is
00:41:31you just basically need to decrease the risk for them and so people don't buy because of risk period
00:41:37that is why they don't buy and so they either buy because they don't buy because price they don't buy
00:41:40because of risk they don't buy because of work right it's one of these things so it's either
00:41:43you're asking too much of them in terms of what they got to do you're asking taking too much risk
00:41:46ensures the outcome which is going to be relative to the price so what we can do is we can sync the
00:41:51price to zero okay i'll do it for free we can sync the work down to zero i'll do it all for you
00:41:57and so then the only risk they have is that the outcome won't happen which we've tried to reverse
00:42:00as much the risk as humanly possible the way that the person who did my clips when i started doing shorts
00:42:05got me i think i was like his first account or second like not a lot right the way he did it was
00:42:11he just said hey i already see all this youtube video that you got i will clip them into shorts
00:42:18you don't have to do anything don't pay me please just let me get permission to post and in the
00:42:25meantime if you don't give me permission i will send you the clips and then you can post them yourself
00:42:29and i was like okay man like if you want to go make some make some videos and send them to me
00:42:35and i'll take a look at them and if i like them i'll post them and that is how it started
00:42:39and so i was he punched way above his weight class because he made a truly risk-free offer for me and
00:42:45then as he made more and more clips and they were good i said i'll give you posting permission so that
00:42:49you can post uh from the stuff that i had and then as those did better he was like you know what if you
00:42:53actually made some shorts yourself rather than me repurposing stuff it would do even better and so then
00:42:57one day a quarter he flew out and we'd record a hundred shorts in a day and then that became the
00:43:01next 90 days of content or whatever that's how we did it and so every little bit that i gave him he
00:43:06did well with right so you know to whom much is given much is expected and also to the same degree
00:43:11if you steward someone with a little bit and they multiply it you give them more right and so he did
00:43:16a lot with the little that i gave him and so i kept giving him more and he kept multiplying it
00:43:19and so you just want to get a shot and so i think the big mistake that people are making
00:43:25you specifically in trying to get these richer customers is you're trying to have them take all
00:43:28this risk on right you're like i want you to pay me all this money i want you to do all this work
00:43:31and i want you to take all the risk that's not going to happen well that's ridiculous now once you
00:43:35have enough case studies once you have enough proof then you can say listen i have no doubt that i can
00:43:39that i can help you i have i have a track record and when you have a track record then you can
00:43:43charge the premium prices boom this is fun this is good we should do this again sometime we should do
00:43:49this tomorrow i won't be able to do tomorrow i have an event tomorrow but so just soak it up next one
00:43:55hi alex i've tried a few things and failed and now i'm honestly scared to start again
00:44:00how do you know when to keep trying versus when you're just repeating the same mistakes
00:44:05well i think the last part of your question is actually the most important one which is are you
00:44:09repeating the same mistakes or are you generalizing starting a trying a business in general as a mistake
00:44:16so what we want like one of the hardest parts about making mistakes is we have to learn the
00:44:19correct lesson from the error so said differently if i hire a salesperson and the salesperson doesn't
00:44:24work out do i learn the lesson that sales people don't work do i learn the lesson that all employees
00:44:29suck or do i learn the lesson that i do not know how to pick hire manage train and maintain a productive
00:44:35salesperson if you extrapolated either the first two lessons then you probably learn the incorrect lesson
00:44:41from the actions you took or the error that you made if you take the second or the third excuse me the
00:44:45third uh solution which is that i do not know how to xyz that creates this outcome that is something
00:44:51that is under your control and so fundamentally then it comes down to how to learn how to do that
00:44:55it's like well you watch videos you can hire help you can have people tutor you there's a lot of
00:44:58different ways you can learn stuff um but i think being very clear about what is missing in your
00:45:02business uh because when people are telling me that like my business didn't work it's so interesting
00:45:07because like all businesses like if you've seen a future version of the business that you have or
00:45:11somebody else who has the exact same business as you then we already know the business works so it just
00:45:15means they're doing stuff that you're not doing so let's figure out what they're doing and then go do
00:45:18that and again we replicate before we iterate so don't get cute and try and make it unique until
00:45:23you've at least duplicated another person's level of success at that point you have not earned the
00:45:28right to say now i can be cute now i can try something because i've done enough for iterations that i
00:45:33think this might work a little better and you'll be right or wrong and if you're right you'll make more
00:45:36more money than that and if you're wrong you'll go backwards and then you go back to doing what you
00:45:39did before and that's the game and you basically keep doing that step until you die all right 1492
00:45:46columbus that's what we got live we cook it all right next one hey alex i'm 16 years old and can
00:45:53you please tell me how i could go from zero to million by 18 years old so i could prove to my family i
00:45:59don't need to go to college yes reverse engineer what a million means so is a million in revenue
00:46:07is it a million in profit is it a million over the two years is a million in profit over two years
00:46:11just a million in revenue so number one quantify the goal really discreetly so let's just say that
00:46:15by the end of 24 months from now you want to exit velocity meaning your monthly revenue run rate
00:46:19is 83 000 a month all right so that puts you on peace for a million dollars okay so if that's the goal
00:46:25then we have to sell enough units per month that it equates to 83 000 a month and so let's say that
00:46:32you want to sell a two thousand dollar a month uh thing to business owners to help them get leads
00:46:39so let's say you run meta ads or you do you clip content for them or you manage their reddit uh you
00:46:44know reputation online pick something uh and say okay if i have to get to uh 83 000 a month let's just
00:46:52call it 84 keep it keep it nice and simple math wise i've got two thousand dollars a month per customer
00:46:57then i need 42 customers in order to get my 83 000 a month okay uh in order for me to get 43 customers
00:47:04uh what do i think uh my churn on that subscription is going to be let's assume it's small business owners
00:47:09if it's a small business owner i'll tell you that the rule of thumb is probably going to be about five
00:47:12months it's going to be the uh the expected lifetime so call it 20 churn again i'm not saying these are
00:47:17good numbers i'm saying that's what it's probably going to be so that means that you have five months of
00:47:212k that's ten thousand dollars total in lifetime value for a customer and so your sales velocity
00:47:26which means how many people you need to sell per month has to equate to ten thousand dollars time
00:47:31or rather eighty four thousand dollars divided by the ltb the customer so if i have eighty four thousand
00:47:36divided by ten then i need to sell eight point four units per month which is two per week if we will
00:47:41round up we can say three per week and so then we say okay if we have to sell three units per week at
00:47:46that price point um how many outreach attempts does it take me to get an appointment and we'd say maybe
00:47:51it's let's say it's 100 hours attempts to get an appointment that would be pretty high let's just
00:47:55say it's 100 to get one okay of my opportunities how many of them do i close uh i close one out of four
00:48:02opportunities okay which means i need to do uh 400 to get one of those sales and i need three so i need
00:48:081200 outreach attempts uh per week in order to get my goal and so if i have 1200 outreach attempts per week
00:48:16and i've got six days that i'm gonna be working let's say you take sunday off then you can do 200
00:48:20outreach attempts per day and then you wait
00:48:25that's the game and so i think many of you have these goals but you have not actually broken down
00:48:30what does it take from a numbers perspective and keep going down to from the number to my daily activity
00:48:35that's it you just have to connect what you do to this number and then it's just math
00:48:42rock and roll how to do the things you know you should do i am struggling with discipline oh no
00:48:56because you have enough discipline to finish the question um so i'm gonna guess the question because
00:49:08you didn't have enough discipline to actually say it um bro just align the environment to make doing
00:49:19the right thing the easiest thing and so if you want to not drink don't go to the bar if you want
00:49:26to not scroll on instagram then get an app or delete the apps that you have from your phone
00:49:33entirely that that that you're distracting yourself with and so like the key to being focused is to
00:49:39remove all distractions not to use more willpower willpower doesn't work willpower is a myth not really
00:49:45a myth but like just for the purpose of what we're saying don't worry about that try to not use your
00:49:50willpower and still win anyways and so like the thing is is if you want to win no matter what we
00:49:55have to make the right choice the easiest choice because you're going to have because willpower does
00:49:59actually diminish over time that's why you make bad decisions at the end of the day not the beginning
00:50:02of the day right we're freshest in the beginning not at the end when we're decision fatigued beat up
00:50:06right we make mistakes and so the idea is well if i have to win in all environments then i need to
00:50:11in under duress under fatigue still be able to perform and so in that condition how do i maximize
00:50:17my look of success which is remove everything else that's an option at that moment
00:50:22and so you have to basically make your life boring so that the work becomes interesting
00:50:31for that period and that period can be defined as that the hours you work it can be for that season
00:50:37of your life or for the work year and then you take off in the summer whatever but during the constraints
00:50:42of when you want to achieve the thing you remove everything that is not the thing and then the thing
00:50:46becomes the most important thing that you have in front of you interesting right that was a good one
00:50:52all right let's do it another one of my employees asked for a 25 000 raise from 100 000 salary however
00:51:01he hasn't added enough value how would you structure his comp growth plan to 125 000
00:51:08without making him feeling bad oh i think that you have some beliefs that we need to break so if
00:51:15someone asks you for more money you can say no but you just say no and explain why and
00:51:22i think more importantly explain how to get even more so you said you wanted 125 i want to give
00:51:26you 150. the issue is that i need you to make the 150. is that feeling reasonable yes okay and so what
00:51:33you're currently doing is yielding this amount of money and in order for the business to maintain
00:51:38profitability so we can continue to grow so that you can have career growth and a trajectory in a much
00:51:42larger business because that's what the future version of this business is is bigger than it currently is
00:51:46we need to basically align what you do to increasing more revenue now what i think is very
00:51:52valuable is that a lot of people who ask that they you know they watch the tick tock and it says
00:51:57you know go ask your boss for more money sometimes they should ask for more money because maybe
00:52:01they are being underpaid but a lot of times maybe they're being appropriately paid maybe they're
00:52:04being overly paid right but we have to break down is tying what they do to how the business yields
00:52:11business outcomes how does what you do make the business money and if they can describe how their
00:52:17activities generate the business money by the way huge value add if it like by the way if you guys
00:52:23don't know what how what you do makes the business that you work in money you will not make as much
00:52:28money as you could if you did understand how it worked because then you can describe when i do this
00:52:34churn goes down which means ltb goes up and if ltb goes up we make more per customer
00:52:39we make more per customer the assistant that's more without having to acquire more great if you can just
00:52:43articulate that which is by the way we're learning the language of business that's what i'm asking to do
00:52:48and so you need to give the person or tell the person the skills that they need and what activities
00:52:54they must do that if they do those activities these outcomes would happen and if these outcomes
00:52:59happen then their request is reasonable right or beyond reason you'd happy to pay it because every
00:53:05business owner and i would start with this frame which is that every business owner will always pay
00:53:09for a fraction of future earnings that they have not had what they will be reluctant to do is give a
00:53:15percentage of money that they are already making for work that did not contribute to it
00:53:21all right what did i i care a lot about my long-term girlfriend my stats go down when with her
00:53:29she is cheerleader and wants same life and very smart should we try business partner route or break it off
00:53:36imso 50 50 50. tough tough um really tough because you have conflicting priorities so what that means is
00:53:52you have multiple things that you want and in wanting those things uh they are interfering with each other
00:54:00which means that you have two options option one is that you can deem uh one of those two things business
00:54:06or cheerleader girlfriend the priority and you say i know that my stats are lower with her and i am okay
00:54:12with that trade because i value her more than the business outcome option one option two i value my
00:54:18business outcome more than i value my relationship with her and so i will cease having a relationship with
00:54:24her in the hopes that i will find somebody else who i can have a good relationship with and get the
00:54:31business outcome and so the idea is that um it's a question of and or or it doesn't need to be or um
00:54:38and so what i would i would before you do this though because let's say let's say you're in the second
00:54:41scenario because the first scenario is easy you just say that your business goals aren't important to you
00:54:45in the second scenario before breaking up what i would encourage you to do is very specifically say
00:54:51what you do in these situations decreases the odds of my success and the lifestyle that you
00:54:57have told me that you want and so i'm having a lot of difficulty serving two masters i want to be a
00:55:04good boyfriend to you based on your requirements and i need to be a good business owner based on the
00:55:09market's requirements now the market's requirements are not negotiable yours are and so is there a world
00:55:15what would it take for me to be able to do this in the business in that environment under those
00:55:23conditions would you still like our relationship and want to continue to date me if you can establish
00:55:29that up front these are the rules of engagement i'm going to work uninterrupted for 10 hours a day
00:55:33and i'm going to work six days a week that being said outside of those business hours i'll be fully
00:55:37dedicated to you and you'll have my full and undivided attention if that works bingo bingo we got
00:55:42above and sometimes there's actually a very strong argument for that it's like you can actually check
00:55:45out fully switch gears and i think that's great uh for the people who can do that like i've seen tons
00:55:50of very successful business people who have that type of type of dynamic um but i think what you need
00:55:54to have is very clear expectations and boundaries around what what her requirements are to have a good
00:55:58relationship and then what is required by your definition in this season for your business to be
00:56:04successful and making sure that those are her requirements and the requirements of the business
00:56:07ideally do not conflict if they do conflict you have to pick one that's warm born
00:56:13one all right what would you say to a bunch of kids who want to start a marketing agency together
00:56:23eight people in total no stop just an idea and desire not sure who will be there till the end
00:56:36uh tell me you have a terrible idea with that tell me you have a terrible idea um
00:56:45if you're just like we're eight buds and we're going to start this thing together and you haven't
00:56:48thought about what your skills are and you already know that some of you guys aren't going to be there
00:56:51until the end i think we have to ask the question of like why we're doing this to begin with if you
00:56:55are like man i just want to do something with my friends and like go play video games like go to
00:56:58amusement parks go go drink beer you know like go go do friendship um but i promise you the relationship gets
00:57:04far more complex when you introduce money and you likely won't have those friends for a very long
00:57:08time and you will permanently lose the friends uh because when money gets involved the likely that
00:57:12you lose the friendship goes up dramatically um because all of a sudden somebody is getting paid
00:57:16on something that they didn't deserve and that can be very tough and so fundamentally when we're
00:57:20looking at business partnership we want to see does the person have skills that i don't have they
00:57:23have money that i don't have do they have time that i don't have and so we want to make sure that
00:57:27the people that are around you that are going to be your partner um contribute their share towards the outcome
00:57:34and those are going to be the three normal ways that someone is going to pay uh into the partnership
00:57:39to yield out a contribution now is it going to be perfect no um and in the future it has to be
00:57:43reconciled you want to get as close to you know close to ideal as you can some people develop more
00:57:47skills and become more important that's the nature the nature of things um but i think that having
00:57:52kind of like eight equal partners or something that is probably a pretty bad idea because the
00:57:56likelihood that you guys have uh truly complementary skills uh or different time requirements or different
00:58:02capital requirements is probably low and so i would think that this is probably not going to work long
00:58:06term that being said if you want to like get together do a moving company for the summer or an
00:58:09agency for the summer that's fine i would just say that this is a project that we're going to end at
00:58:12the end of this period of time then we're going to renegotiate based on who we think is actually going
00:58:16to do this there you go all right let's get a spicy one let's get something interesting let's get
00:58:23something that with a little stirring of the pot shall we in continuation of the discipline question
00:58:31what if you can't eliminate distractions for example you need internet access to work
00:58:36but then i just end up watching youtube oh no
00:58:44first off you can block sites so i don't like you can block apps you can block sites if you actually feel
00:58:51like you you you can't control yourself in that environment again it's just like this is like the
00:58:56fact that you asked that question is really frightening for me because it's like this is solvable like
00:59:01this isn't like i didn't need to tell you that answer and so like i think i think a lot of people
00:59:07are asking questions just because they want like a hug you know they want to high five like what do you
00:59:11want me to say here do you want me to say you know what man you're right youtube's too distracting you have no
00:59:18chance so the way your life is right now is how it's always going to be so you know enjoy that right of
00:59:25course not it's ridiculous you got to change the change and so we just want to maximize the odds and
00:59:30of course i mean you started the premise of like some things you can't eliminate you started the
00:59:33internet but then you said youtube it's like that's a straw man right of course the internet yes okay
00:59:38eliminate some of the other stuff that you have but if you really need to on the internet it's what
00:59:42are we using the internet for is it for research do we need it just because we need to process words
00:59:47we need to type shit okay like what are we actually using the internet for you might be able to actually
00:59:51work airplane mode if you're actually that worried about it like there's always little things that you
00:59:55can do because you might only need it for a specific period of time i have a timer that i use that's on
01:00:00my desk that i time my tasks with because i know if i have a clock in front of me the my speed of work
01:00:06probably triples i stay on task when i can see that there's a clock that i'm timing myself even though
01:00:10there's no jury or judge or executioner to determine whether i did or not i see that there's a clock
01:00:15i'm like i gotta stay on task that's how i manage myself i'll give you one more tip and this is for
01:00:20people who have a little bit of add uh you can get a work buddy and so uh basically if you work better
01:00:26with somebody else like you actually are both more productive uh it's a great way of keeping each other
01:00:30their own task a little pro tip all right go ahead i'm a software engineer turned entrepreneur i started
01:00:42a luxury dating app how would you market a product like this you started a luxury dating app so you want
01:00:51rich people um i mean it's going to start with billionaires only depends how high you want to go
01:01:01there's only 3 000 people in this app they're all billionaires and most of them are married
01:01:04um so it's really just for rich people to have affairs uh no don't do that um you're going to want
01:01:10to start with keystone partners meaning we want to have big strong brand associations early and basically
01:01:16you need to either do it for free or give some sort of incentive for those people maybe they get
01:01:19preferential uh you know like mating matching or whatever uh that can help them find a better mate
01:01:26because if they are in the market then they would want that and so i think that you basically want
01:01:30to get 50 you know ish people who are your perfect avatar that have some sort of clout uh to begin it
01:01:37right and then over time you have the people who are the seeders of the brand and then everyone else
01:01:43approximates that and says i want to be like them or i am like them i associate them with cool stuff
01:01:47or i want to date people like them and then as a result i will join your platform um but typically
01:01:53wealthy people want exclusivity and so um i think somebody's already succeeded at this it's an app
01:01:57called raya or raya i don't know how to pronounce it but r r a y a um i would model what they did and
01:02:03they've done a really good job at basically being like super famous or super rich people in their own
01:02:08exclusive group and you have to apply and it's very it's legit from what i understand of like a lot of
01:02:12people get denied um but yeah so basically it should be by application people should get denied
01:02:18and you ask for how do i create an exclusive thing you have to have something worth joining
01:02:23which means you have to get those first people that's what makes people want to join and you have
01:02:26to keep the bar high so that the people who come in add to the network rather than diluting it
01:02:33and then wait a long time is really hard all right next one at sugar underscore mama underscore 23 asks
01:02:42why can't i get a job i have a master's oh that is the entire question um because you think that the
01:02:50fact that you have a master's somehow requires a business to give you a job that would be where i'd start
01:02:57um if i could remake education i would have the master's degrees only apply to departments that
01:03:03they would be in because you probably want to get a master's in order to get a job if you want to get
01:03:09a job you will work inside of a department and so are we working in marketing are we working in sales are
01:03:13we working customer success are we working in tech are we working in finance are we working in legal like
01:03:18where are we working what department are we working in um and that would make if you want to get into
01:03:22private market as in capital normal privately owned businesses um then you want to be able to describe
01:03:27how what you learned will help the business make more money and so again i would encourage like if
01:03:32you have a master's whatever you might be able to get on the interview but that's not going to get you
01:03:36the job and so of course there's interviewing skills but i i so strongly encourage anyone who is looking
01:03:41for a job to be able to clearly articulate what they do and how it interacts with the metrics that a
01:03:49business wants to drive that's it if you can describe that you will set yourself apart from many other
01:03:56candidates and you will be more likely to get roles that are meaningful what other wild ass questions do
01:04:04we have here i'm good in tech i've worked and interned with big fortune 500 global companies i'm just having
01:04:13analysis paralysis of starting my own business since this tech market is actually so bad what to do
01:04:19okay
01:04:27trying to pick from the entire universe of very very impossible trying to pick between two things
01:04:32much easier so we need to take all of this and make it small how do we make it small we have to add
01:04:37filters right if you're looking at 1200 products on a shopify page right what are you going to do you're
01:04:41not going to look at all 1200 it would take you way too long and it would be overwhelming so you say okay
01:04:44well i want this size i want this color i want uh i want something that's a top i want it to have
01:04:50straps and all of a sudden you have 13 items to pick from right and so you want to take the same approach
01:04:54to figure out what what possibility you want to go there and then when you have the 13 there in front
01:04:58of you at some point you just got to roll the dice you got to jump right and i think that it is very
01:05:02important for you to understand that just like you have a quote analysis paralysis in order to pick a
01:05:06business at every single step in entrepreneurship there will be multiple options in front of you that you
01:05:11would uh be able to take in order to solve a problem and no one is going to tell you whether
01:05:15you did it right or not until after it has happened and so if said differently if it takes you
01:05:22more time to make the decision then it would take you to just do the decision and find out
01:05:28then you should just do the decision and find out and then you will know
01:05:34wonderful answer you mentioned you think chick-fil-a has one of the best business models
01:05:40what would you tweak in their model to improve their revenue i mean honestly i would just look
01:05:45at what raising canes doing um i would take what they have and just limit the menu even more probably
01:05:55that's i mean that's probably it i mean they already have i mean they're probably one of the
01:06:00most successful you know brands of all time um like how to how do you mess with uh something that's
01:06:07worked so well yeah i mean that's probably the only thing i would consider doing is like maybe i'd limit
01:06:12the menu a little bit more make it a little bit easier um for the staff to get trained up uh have
01:06:16fewer fewer decisions for a customer to make um as raising canes has proven and has just destroyed
01:06:22um that's about it otherwise i mean big fan of chick-fil-a
01:06:27good book by the way wealth is it worth it by s truett kathy his story of chick-fil-a a little read
01:06:34do you think gen z are still competent enough for business or at reliable workers i think there are
01:06:41humans that are reliable independent of age right and so this idea of like gen alpha gen z gen w gen you
01:06:48know x whatever who cares um you have people and there's stuff that needs to get done and people
01:06:54who have skills in order to do it i have very little i put very little weight in terms of generations i
01:06:59think these are also labels that we apply to blocks of years arbitrarily you know i'm actually a gen z
01:07:07millennial hybrid okay you know it's not like you're a you know a werewolf vampire hybrid with split dna
01:07:13it's like you've got a mom named mary and a dad named david and you went to school just like everyone
01:07:18else did and some technology changed in the meantime and you either had the skills to learn the technology
01:07:23or you didn't i don't think the basic drives of human have gone away i've met some absolute savages
01:07:28who are gen z and gen alpha and i've met some absolute duds and that goes all the way up
01:07:38i'll actually say this you know this generation doesn't want to work as hard this generation has
01:07:45it so easy well what the did you think was going to happen if our whole goal was to make it better
01:07:51for the next generation we wanted to make it better and want to make it easier than we had it we right
01:07:57and so if we actually accomplish that objective then it means that there's going to have less hardship
01:08:01for someone to go through isn't that the point right and so in either way either you make the
01:08:08argument that maybe they did get softer and whose fault is that ours and if they didn't get softer
01:08:13which again there are spikes if we're looking at generalities maybe but i think it's more so that
01:08:19there's people they just work differently then they work not as hard i think it's more likely they just
01:08:23don't want to work hard for you it's like saying there's no good girls out there it's like there's
01:08:30tons of good girls out there there just probably aren't good girls out there that want to date you
01:08:33so let's look inwards because that we can control
01:08:38all right what else do we have what other preguntas do we have what their q's
01:08:43need potential a's i have no promise of a's to be clear disclaimer no a's are promised only q's
01:08:49and spicy takes hmm we've got a comment saying your spanish is especially good today ah
01:08:55molto grazie that's italian
01:09:02muchas gracias all right that was spanish with italian accent
01:09:09okay let's rip thanks for your answer on chick-fil-a i'm listening to this while in a raising canes
01:09:15drive-through lol cooking with oil that's what we were doing we're cooking with with beef fat or chicken
01:09:23fat i don't know what they cook with probably corner probably a canola it's chrisco is it bro
01:09:32dude they are filthy all right let's go hey alex i'm trying to get into content production but i have
01:09:39no skills i could make videos about so i'm stuck trying to be entertaining slash funny like you
01:09:44which is tough and makes doing volume tough any thoughts what was the first part hey alex i'm
01:09:51trying to get into content production but i have no skills i could make videos about i'm stuck trying
01:09:57okay so you're saying you're not good at stuff and you want to make content
01:10:02so either you have to do a volume of content looks let me let me zoom out for a second good content
01:10:09gives people a return on their time all right so it happens one of two ways either they get a return
01:10:14on their time in that they would have been bored and now they are entertained version one so they're
01:10:18distracted by your content the second way is they get a return on the time in that they could have tried
01:10:22to do try to figure out how to code a thing but then your tutorial saves them time and so in either
01:10:29situation people want to return and so for you if you have no evidence that you were good at the thing
01:10:35then you want to do a lot of work and then show the work that you did and then demonstrate your
01:10:39learnings from that work so for example if i wanted to say hey i made 100 pieces of content
01:10:43here's what i learned from it make 100 pieces of content that suck of those 100 pieces of content
01:10:47suck one of them will be suck the least of that one that sucked the least you can then make a video
01:10:52about that one that sucked the least and what you learned from it and so fundamentally there's always
01:10:55an iterative process that we can apply that still makes what you have interesting and so this
01:10:59is the concept of documenting what you're doing um but i would encourage you also to do a lot of
01:11:03stuff that isn't necessarily recorded and then talk about the lessons that you learned in those actions
01:11:07so if you do 100 cold calls day one of doing 100 cold calls and then you do a time lapse and then
01:11:11at the end of the doing 100 cold calls you describe what you learned from those 100 cold calls i'll bet
01:11:15you that that series would probably be pretty good and if you do 100 days of cold calling 100 times a
01:11:20day and you do those 100 pieces of content i will bet you that by day 100 you will probably be in a pretty good
01:11:25spot right both your content will be improved and you'll probably be better at cold calling and so
01:11:30you're there's always a meta that can be applied uh when you don't have uh skill you can always
01:11:36demonstrate the the effort and the lessons that you learn in real time that still give someone a return
01:11:40on a short that took you five hours
01:11:46all right how would you build a powerful personal brand as someone striving to reach peak physical
01:11:53form before a possible third heart transplant in the next one to two years
01:11:59those seem not to be apparent conflicts so it's like i want to reach peak physical form and i want
01:12:07to build a personal brand i mean you could build a brand around how you're achieving peak physical
01:12:13form before your third heart transplant and maybe avoid the third heart transplant i don't know third
01:12:17heart transplant what are we kidding me hold on third i don't even know that even the more than
01:12:24two i didn't know one one's a lot two's two's a lot two's a lot three three's insane
01:12:33bro i mean there's content right there geez
01:12:39three
01:12:42what'd you do to the first two whatever you're doing is not working oh my god
01:12:50yeah i mean i would make content around how you're trying to i mean shoot make the third one a keeper
01:12:55holy cannoli and hopefully this is giving you a laugh
01:13:00i heard laughter is good for the heart studies science that's right take it home the more you know
01:13:10all right what's the next one
01:13:15we're cooking today we're getting spicy all right what do we got for the 18 year olds whose loved
01:13:20ones don't share their vision how do you really bring them along instead of losing them for that
01:13:25period in your life i like i think some of this is is words which are really important meaning bring
01:13:33them along versus losing them i think that catastrophizes the reality of the situation fundamentally they
01:13:40will disagree with the actions that you're taking i think that if you are still polite and still
01:13:43respectful and then you choose to live your own life because you're an adult i think that you will also
01:13:48gain some respect from them for at least pursuing your own path rather than trying to do whatever
01:13:51they're telling you to do um and so you will bring them along you don't need to say you for not
01:13:59believing in me you can just say hey i'm gonna do this love your support and if you don't want to
01:14:05support what i'm doing please at least support me and if they don't want to at least support you
01:14:08then maybe you have a slower and less frequent communication cycle with them am i doomed i don't
01:14:16you might be doomed
01:14:21but basically you got to do that's going to get you what you want and if they disagree with you
01:14:26be respectful to them if they want to disrespect you and decrease the likelihood of you hitting your
01:14:30goals then i would say you can distance for yourself for a period distancing is again an amorphous word just
01:14:36means don't contact as much don't see as much don't respond for as long um and then in the event that
01:14:42you know once you become successful uh by your means if that means that they're going to talk to
01:14:47you then you will then have to deal with the fact that like they didn't want to talk to you in the
01:14:50meantime and that's kind of tough um and so i would encourage you to quote bring them along and i think
01:14:54the way you do that is you just don't necessarily need to talk about that stuff that's a non-therapist
01:14:58answer which is like if there's 20 topics we can talk about and one of them we get into fight about
01:15:02just talk with the other 19.
01:15:08practical non-therapy advice from alex
01:15:13all right let's do the next one am i doomed i don't have skills but can't get a job to learn
01:15:18because no companies are hiring fresh graduates right now no companies on earth whoa that's crazy
01:15:28i guess the fresh graduates that we hired i guess we don't exist i guess we are not a company
01:15:34i think that the statements that you're making are absolute because you have not succeeded as
01:15:39quickly as you wanted and then are extrapolating the fact that it is impossible but here's the good
01:15:44news is that if it's hard for you it's hard for other people and if you have more or higher
01:15:47frustration tolerance meaning that you can tolerate difficult longer and you can get punched in the
01:15:51face more then you the pool of people that you were competing against as time goes on narrows because
01:15:57other people have fallen out because they've given up hope and so uh yes i think that you can absolutely
01:16:02negate uh inferior odds with superior volume of work and so if your acceptance rate let's say into a
01:16:09company is uh one percent likelihood then you need to apply to 100 places now to be clear you just
01:16:15submitting a resume not putting a cover letter not taking any outreach not trying to talk to somebody
01:16:19um at that place from a cold call cold outreach cold email to show that you're putting the extra work
01:16:23in uh that will dramatically uh increase the odds of success but if you're doing none of those things
01:16:29if you're doing none of those things uh to to make it work then you should expect that you're going to have
01:16:35inferior outcomes and so the big the big highlight here though is stop saying that no companies are
01:16:43hiring freshmen they are probably just not hiring people who are not putting all of the work in
01:16:50for enough time period to meet the needs of the business and you need to go above and beyond to
01:16:55break out of the mold so if everyone else is not putting a cover letter you put a cover letter if
01:16:59everyone else is not reaching out or trying to find somebody else who works at the company to just say
01:17:02like hey can you at least give me an interview um then that's the extra work that you do to make it
01:17:07more likely that you're going to win and by the way that never stops like following the process
01:17:13is important and also doing above going above and beyond and that's going to happen for customers
01:17:18it's going to happen for business owners like that never ends
01:17:23all right
01:17:26so i'm a fresh graduate that just got a job and i just started a new sdr
01:17:32wait slash cold calling can you give me some tips please wait there's a freshman who got a job
01:17:38there was a company that hired a freshman what that's impossible because no companies are doing
01:17:44it no company that that's improved like broke the laws of physics crazy all right so you're fresh sdr
01:17:52and you started on the call floor by the way there's a job um maybe maybe they're not hired for the job
01:17:59that you're applying for um but just about every like if you're like i i can't get a job try doing
01:18:05door knocking try door knocking and selling solar they'll take you like they'll take you in and if
01:18:12you go close sales they'll pay you like of course of course there's jobs if you need to take a job that
01:18:17has higher risk then take a job that has higher risk because right now you're not getting paid anything
01:18:20anyways right might as well learn some skills and maybe get paid a lot um anyways i digress so sdr
01:18:25um i'll give you the same exact advice that i gave jacob who was my 15 year old neighbor when he
01:18:31started as an sdr at gym launch i said number one find the number one guy on the team and sit next to
01:18:38him and listen to everything that he does and then do everything he's doing and just do twice the volume
01:18:45that's it i said just do whatever the number guy does and just double it so you'll get the feedback
01:18:50and iteration loops in terms of skills of the right way to do things by modeling success and then because
01:18:55that person is better than you you can't just do the same amount of work as there because then they're
01:18:57advancing faster than you or at least they have more skill and they're doing a lot of reps so that
01:19:02you'll never be able to catch them so this is like kobe doing two days or three days when everyone
01:19:05else is doing one a day right you can't you can't catch up if you're doing the same amount of work
01:19:09you got to do more work to catch up and you have to work like you were coming from behind because you are
01:19:19that one had smoke on it that one cooked a little bit that had some sizzle all right let's do another
01:19:25question another cue your wife and your life do you think having your wife in your life has been
01:19:33essential to the massive success you've achieved mine changed my life oh that was it uh yeah i think
01:19:43i think i would have been successful financially without layla because i was successful financially
01:19:46without layla before um i think the degree of success and the speed of the success um i can't play out
01:19:52another life but layla absolutely the longer we have been in business together the more i think the
01:19:58success um well i would not have achieved the level of success that we have at this rate um for two
01:20:06main for two very i'll give you two very tactical reasons why i should give you three um number one
01:20:12layla's decision making um paired with my kind of ideation has been the combination that has made
01:20:19everything work and i think that in a lot of ways she makes more decisions than i do in the business
01:20:23on a daily basis and some of the decisions that she makes i would not have made and her decisions were
01:20:28better and so i would say from number one she would she has helped me avoid many calamitous mistakes
01:20:36that would have probably set me back many years um number two
01:20:45layla is exceptional at managing and leading people and that is probably a larger deficiency for me
01:20:51than it is for her um and so we would not have been able to attract a level of talent that was required
01:20:55to pursue the level of opportunity that we going after today um if it had been just me i think that
01:21:01because i also don't think i would have had the level of track record to attract a little talent either
01:21:05and so if you look at the company like i would say the company is by and large more loyal to layla
01:21:08than they are to me um because layla is the one who actually like leads like the company from
01:21:14a day-to-day perspective internally um i think the third reason and this is one that will probably
01:21:19surprise a lot of you is that layla i think actually has bigger aspirations and dreams than i do
01:21:25and i had material goals that i wanted to hit and i would say that in the short term i was more
01:21:32motivated to hit those goals than she was but in the long term as we surpass those goals like beyond
01:21:38needing money for anything else her desire to make an impact and her desire to more importantly build
01:21:44an environment that people love to work in um has been a greater contributor to our continued growth
01:21:51and i would say like pushing and striving uh to do more and so i think those are the three reasons why
01:21:56um i would not have had the level of success that we have had um if i had done it alone or would not
01:22:01have happened on this fast of a time too elegant well said giving myself feedback all right
01:22:12let's get let's get a little let's get let's get weird let's get a weird one we got a weird one
01:22:16see if we can find a weird one oh they're they're they're nodding so this one's going to be the wind
01:22:24up in the pitch all right let's hear it are aliens real all right go ahead how tf do i get a house i know
01:22:38you will answer why do you want a house and yeah i want one so uh interesting because the assumption
01:22:46that you had about my response is uh to question your desire um i think it's good to question our
01:22:52own desires but less productive to question someone else's right um that being said uh you want what
01:22:58you want so if you want a house you want a house um i would say it is probably valuable to break apart the
01:23:04uh under underlying needs that you're trying to satisfy is it a saddest thing for you is because you want
01:23:08shelter is you want an investment what is it that you want is it because you want to invest for your
01:23:11family whatever it is that being said um the question that you ask is a financial question of
01:23:17like how do i save up the amount of money to make a down payment on a home and then uh how do i make
01:23:22the monthly payment going on thereafter which then reverses to how do i make a certain amount of money
01:23:28uh and how do i save a certain amount of money and so the saving comes from not spending and making
01:23:31more than that for an extended period of time and i think the rest of my content covers how to make money
01:23:35so i think the house is actually kind of a a um a placeholder for an income and saving goal
01:23:44which if you want an income goal do more that that makes money um uh and spend less of it when you
01:23:52make it and i know that's probably not the answer you wanted but also what answer would you be looking
01:23:55for it just comes down to money so what other would do we have i wasn't gonna get into political nature
01:24:04of home ownership in this environment
01:24:09you guys digging this this is our what is it day five of our of our day 30 for 30 or something like
01:24:14that don't ever ever watch uh was it was it e 30 for 30 was that a espn yeah i used to watch that i think
01:24:23was tuesday nights was 30 for 30. it was no maybe wednesdays i used to watch that when i was in the
01:24:30fraternity back in the day and i would drink beers and pre-game watching 30 for 30. um just as a fun the
01:24:37more you know about back back in the day alex all right what other uh what other ones we got these
01:24:42are fun this is good all right what else we have solo founder of ecom business gained traction with
01:24:47muslims quickly but is on pre-order and self-funded religiously anything tied to interest loans or
01:24:53excessive debt is no-go best way to scale
01:24:59so the scaling is actually a rate issue so as long as you're making sufficient profit with the business
01:25:04then you should be able to reinvest the profit that you're making into new and additional inventory
01:25:11the difficulty is just if you let's say you 10x in one month just hypothetically you would not be able
01:25:17to have sufficient cash flow from the last month's called profit of sales unless your profit was you know
01:25:21insane uh which is probably unlikely um so you you you ask a math question which is that what is the rate
01:25:30of growth that you can cash flow and what you need to do is basically control your sales to control
01:25:36growth if you truly have that kind of like product market fit so that you could say okay um let's say
01:25:42that our net free cash uh you know per month is you know whatever 20 of of our revenue it's like right
01:25:49right so the max we can grow and let's say that our our uh you know buying more inventory takes three
01:25:54months to um to materialize uh we basically have to plan for 12 weeks out we can have 20 growth in 12
01:26:02weeks and then that becomes our kind of uh model for how we need to grow but it is solvable if the
01:26:08question is um do you put yourself at a disadvantage uh the answer is yes sort of because if you wanted to
01:26:14you could raise money right so that's not debt uh it has no interest you could just sell a portion of
01:26:20your company i'm sure investing is probably allowed um and you sell a portion of your company and then
01:26:25that capital goes into the business so you can buy more inventory and so then you have a partner and
01:26:28maybe that partner is distribution or they have cash or they have help or whatever and so there are
01:26:32for sure other ways and so this by the way is very common for a business that has a lot of capital
01:26:36expenditure not to see that e-commerce is one of them it is a business that does require capital to scale
01:26:39but there are other businesses that require capital to scale and typically in those businesses people
01:26:42bring on investors so they can get additional cash they can pull the future forward like for example
01:26:47if you're like i want to build a billion dollar you know beverage dispensary right it's a very capital
01:26:53intensive business and let's say that you're you have one beverage dispensary right now and you do
01:26:5610 million top line and two million dollars of a profit there's nothing wrong with that business
01:27:00and let's say that each each new market you're guaranteed to make that money but it costs you
01:27:04eight million dollars to start one right so that'd be a 25 return invested capital which is not terrible
01:27:08it's not great but it's okay and but that would mean that every you know four years you'd be able
01:27:12to i guess five with taxes if you had a c corp um you'd be able to start a new location and that
01:27:17means that and then after that your rate would double and after that your rate would double um
01:27:21but it just means that it takes time so the only way that you can get around that is that you would
01:27:24raise capital so that you could open up 10 in that first year and then you basically do the
01:27:27arbitrage on uh how much is my is the time of my life worth uh so that i can trade percentages of my future
01:27:36earnings for more earnings today that's the trade
01:27:44hey alex serious question i fell into a business as a psychic giving advice i'm making enough to live
01:27:51but i feel bad because i don't actually have psychic powers is this okay
01:27:58i would have i was wait i had it fully loaded to be like uh well you should know the answer this question
01:28:07but at least she admitted it right at least you admitted it um if you're looking for a rationalization
01:28:13i don't want to i don't want to give you a rationalization um but i'll say this no i won't
01:28:20say this i won't say this um i think that it is very likely that you have other skills that have
01:28:26allowed you to make this business that you could advertise and sell ethically by not um deceiving
01:28:33deceiving your customers and so uh the first rule of business and marketing for us is state the facts and
01:28:39tell the truth and i think that what you probably are pretty good at is just like life coaching and
01:28:45therapy and i think if you did that rather than say that there's mysticism behind and you have psychic
01:28:50powers you're probably able to help like i'm assuming that your customers are okay like isn't that they
01:28:55are happy with the services but what you feel bad about is that you are lying and so i would discourage
01:28:59you from lying but i would encourage you to help customers and so just state the facts and tell the
01:29:03truth about what you're actually doing and i'll bet you if you told the patients that you have patients
01:29:08customers that you have right now or clients that you have right now um some of them might be turned
01:29:11off but i think if you just said listen sometimes i just tell you what i think and sometimes i don't
01:29:15think it's psychic are you okay with that great and then every time you're like i don't think it's
01:29:19psychic at all i think i'm just helping you out and you're good with that and sometimes the answer is
01:29:23just yes and some people will say no and that's okay you'll find other customers that are okay with just
01:29:26that and in that transition you'll have gone from being an unethical business owner to an ethical
01:29:30business owner and great you've done it so the tldr is you have some skills that are making customers
01:29:37happy all we need to do is state the facts and tell the truth about those skills really are
01:29:42and then just advertise that and then you won't have this issue and i'll bet you you'll grow a lot
01:29:46faster because you won't be holding yourself back because you won't feel bad about it
01:29:50that was a tricky one a little minefield right there
01:29:55all right what else what else you guys got let's get some fastballs or a curveball perhaps
01:30:01maybe a spit-based knuckleball you guys having fun in this office this office uh get up this is my
01:30:07this is it for those of you guys who are joining you're like oh look this is this is it this is the
01:30:13the billion dollar office right the i don't have uh fancy lights or actually really pretty harsh lights
01:30:19um yeah this is where i work every day these are all my books there's the things i'm very proud of
01:30:25that's been a lot of my life writing and they are i keep them around because they make me feel good
01:30:29because i know how much work i put into them which by the way if you haven't read the books
01:30:33fucking read the books they're free all right they're free on the internet if you want hard copies
01:30:36you can get them but they're free just google it all right what do we got if neural link was proven
01:30:42enough and good enough would you put a neural link chip in your brain to become super hormosy
01:30:49yeah i mean the premise that you started with is it proven is it safe um because then you ask the
01:30:54question would i take an advantage versus not taking advantage that's safe that sounds like a asking will
01:31:02someone take a risk-free upside um and so to me it's fine um maybe in the future like we'll find out
01:31:09that it is not exactly risk-free and that there are more significant traits um but yeah i'm all for
01:31:15personal growth of all kind what is the weirdest business slash business model you ever saw that was
01:31:23actually huge what are the weirdest businesses out there but work tremendously i don't even want to say it
01:31:29because it was so good that i don't want to like i don't want to blow the business owner up because
01:31:33he paid me a lot of money for help and so i'm i'm not going to but there are some wild businesses
01:31:38out there that absolutely print money all right um there's so many i mean shoot i met a guy yesterday
01:31:47who sells luxury doors like how do you get into that business another guy yesterday does uh tree removal
01:31:54just stumps and stuff just removing trees makes millions of dollars a year the door guy millions
01:32:00of dollars a year like i've seen guys who sell fasteners millions of dollars a year like everything
01:32:06that you look around like you look around this room everything that you see there's a business behind it
01:32:11and even within that there's multiple businesses like there's a paint company there's painters there's
01:32:15people who do drywall right there's a e-commerce company that does this wallpaper you know whiteboard
01:32:22thing you know these uh there's a there's a company that does folders right there's a printing company
01:32:27there's a company that sells the ink to the printing company there's a company that sells the raw paper
01:32:30materials to the company that does the print there's a binding company there's a three you know a third
01:32:35party logistics company that uh will actually that bind and ship right that stuff to an end location
01:32:40there's a company that installs cabinets there's a company that gives them the base wood there's
01:32:45a company that gives the glue that glues this like cover of the wood on it like all you have
01:32:50to do is use your eyes there's business everywhere
01:32:59interesting one though i really want to tell you the one that that was wild i'll just say it was sexual health
01:33:05and yeah i'll give you i'll give you the big answer so sexual health and it was a specific subpopulation
01:33:13that that needed some medication and the guy got some sort of licenses to administer this medication
01:33:20and he was getting several thousand per year to administer the medication i think like monthly or
01:33:28something like that to the customers and so he had something like 80 net margins doing like 30 million
01:33:36dollars a year out of one brick and mortar store like absolutely printing 3 000 square feet like 10
01:33:44employees crushing so like there are there are i mean i've seen i've seen you know dick enhancement doctors
01:33:53that are making you know 30 million bucks a year selling dick pumps that are surgical that are 100
01:34:01grand that you know add girth and length like it's just they're like there are so many businesses i'm
01:34:08just thinking about this because they're weird because they're sexual health but like there's so many
01:34:11different things there's so many different ways to make money like the big rule is just state the facts
01:34:15and tell the truth like don't not be psychic and claim your psychic now to be clear if you're buying from
01:34:19psychic on some level like all right you know maybe maybe you might need a psych check too right but uh
01:34:25but like
01:34:29my teeth find me they're like dude what are you doing uh that they're like this is why we have to edit so
01:34:34much this is why we have to censor i know this is why we get up nice things all right rip it let's do
01:34:39another weird one hey alex i'm hey alex i inherited my dad's weapons manufacturing company got kidnapped
01:34:52by a terrorist group had a literal change of heart long story and came back wanting to pivot the entire
01:34:58business away from weapons against my board's wishes while wearing a metal suit to work most days
01:35:04how do you convince stakeholders to let you kill your most profitable product line for something unproven
01:35:16what does anyone else think that was absolutely insane
01:35:23uh i mean i guess the question is why do we need to kill the proven thing can't we just take profits and
01:35:30then reinvest it in the new thing and then try it out i mean it sounds like you need to make a bet
01:35:37do you need to bet the entire company probably not if i was a stakeholder i'd be like hey let's keep
01:35:41making profit and then we can try this other thing out that's okay um it's really rare that you truly
01:35:46need to bet the entire company um if you have a superior thing it doesn't mean the other thing is
01:35:50like just because something is inferior another product is inferior business model or revenue line
01:35:55is inferior doesn't mean that it's not productive and so say differently if i have something that
01:35:59gets me four to one and then i find something else that gets me ten to one i should try and do four
01:36:03to one and ten to one right now if the ten to one opportunity requires all of the resources of four
01:36:09to one we have to put something called a risk-adjusted return which is that we are it's ten to one we
01:36:13think but it's not proven and so it's like what is our success likely is it 20 is it 50 and so we have
01:36:19to be really realistic and so of course there are business use cases or studies that have been done where
01:36:24you know kodak you know didn't make the jump or blockbuster didn't make the jump to you know
01:36:28streaming and whatnot so there are those stories and we love to tell them because they are so rare
01:36:33but far more often people kill good businesses because they get bored and have a shiny object
01:36:38idea that they think is better but if this is a business that you inherited from your father
01:36:43then i'm going to guess that you didn't build this business based on what you just said which means
01:36:47you probably don't have the knack right off the bat for knowing exactly how the market is because you
01:36:51weren't the one who built it let's be real for a second like you didn't build this thing
01:36:54and so to say that you know better than the board who's probably been there for a long time like of
01:36:59course there's the situation where like the board's out of touch blah blah blah blah but like you also
01:37:03have to show some respect the amount of reps and experience and time that they have spent while you
01:37:07were just a child building this business um and so i think that what you need to do is just like give
01:37:12them evidence and then make a an appropriate size bet and if they don't believe you at all
01:37:18then you can start your own company and do it your way
01:37:24this is also still the most absurd story that is that is probably the most absurd question that i've
01:37:29ever gotten was it jesus christ i was like i was like that is the most absurd plot that is like the
01:37:35most absurd thing i've ever um actually kind of funny when you think about movie plots as
01:37:45as uh as q a questions like that that was insane if i yeah i'm the only one yeah i missed that one
01:37:52just like that see i'm taking these questions seriously all right i'm trying to actually answer
01:37:57these and i'm getting trolled uh no it's great that was uh that was something okay what else we got
01:38:04all right so friends family countrymen lend me your ears um i hope this was an amazing 34 30
01:38:13and uh i will see you in the next daily live stream stay awesome bye

Description

Download your free scaling roadmap here: https://www.acquisition.com/roadmap-yt-d If you’re new to my channel, my name is Alex Hormozi. I’m the founder and managing partner of Acquisition.com. It’s a family office, which is just a formal way of saying we invest our own money into companies. Our 10 portfolio companies bring in over $250,000,000+ per year. Our ownership stake varies between 20% and 100% of them. Given this is a YT channel, and anyone can claim anything, I’ll give you some stuff you can google to verify below. How I got here… 21: Graduated Vanderbilt in 3 years Magna Cum Laude, and took a fancy consulting job. 23 yrs old: Left my fancy consulting job to start a business (a gym). 24 yrs old: Opened 5 gym locations. 26 yrs old: Closed down 6th gym. Lost everything. 26 yrs old: Got back to launching gyms (launched 33). Then, lost everything for a 2nd time. 26 yrs old: In desperation, started licensing model as a hail mary. It worked. 27 yrs old: "Gym Launch" does $3M profit the next 6 months. Then $17M profit next 12 months. 28 yrs old: Started Prestige Labs. $20M the first year. 29 yrs old: Launched ALAN, a software company for agencies to work leads for customers. Scaled to $1.7mmo within 6 months. 31 yrs old: Sold 75% of UseAlan to a strategic buyer in an all stock deal. 31 yrs old: Sold 66% of Gym Launch & Prestige Labs at $46.2M valuation in all-cash deal to American Pacific Group. (you can google it) 31 yrs old: Started our family office Acquisition.com. We invest and scale companies using the $42M in distributions we had taken + the cash from the $46.2M exit. 32 yrs old: Started making free content showing how we grow companies to make real business education accessible to everyone (and) to attract business owners to invest or scale their businesses. 34 yrs old: I became co-owner of https://Skool.com, which is a platform for people to build communities online, making a living doing what they love, with people like them. 36 yrs old: I did a $106M book launch selling 3.6M copies of my $100M Money Models book, in 72 hours, breaking the Guinness world record for the fastest selling non-fiction book of all time. Today: Our portfolio now does $200M/yr between 10 companies. The largest doing $100M/yr the smallest doing $5M per year. Our ownership varies between 20% and 100% ownership of the companies. Many of them we invested in early and helped grow (which is how we make our money - not youtube videos). To all the gladiators in the arena, we’re all in the middle of writing our own stories. The worse the monsters, the more epic the story. You either get an epic outcome or an epic story. Both mean you win. Keep crushing. May your desires be greater than your obstacles. Never quit, Alex DISCLOSURE Information shared here is for educational purposes only. Individuals and business owners should evaluate their own business strategies, and identify any potential risks. The information shared here is not a guarantee of success. Your results may vary. Copyright © 2026.

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