https://www.youtube.com/watch?v=d0dBZbd13jM

1 00:00:00.000 --\> 00:01:00.000 let's give it up for the one the only
alex hermosie so i feel like a um stand-up comedian hi could i have you
turn around for a second all right the thing you got at the door at the
front door now is the time this thing just hang out trust me it won't
hurt it'll only hurt for the first five minutes do you get one would you
guys not get get these oh \[ \_\_ \] never mind i thought every hand
over your face everybody never mind sorry we gave everybody one of these
well for those of you who did decide to grow a mustache momentarily i do

2 00:01:00.000 --\> 00:02:00.000 appreciate it um i'll tell you that it
looks good i'll tell you that if you want to have lots of negative
comments on your paid advertising i highly recommend us a very distinct
piece of facial hair that's associated with 70s porn stars and
pedophiles i used to get so i still get the notifications on my phone
and uh layla like i think only like a few weeks ago she's like you can't
keep reading these i was like you know i feel like it's toughening me i
feel like it's i'm building character so anyways uh first off i just
want to say i'm extremely humbled to be here uh honestly just hearing
the few conversations that i was able to have with the people who were
here honestly didn't think anyone really knew who we were that's not
necessarily a bad thing we keep very much to ourselves i probably don't
leave the house for like four or five days at a time so it's a little
bit different than i think maybe most people's entrepreneurial journey
but nolan am i good to rock

3 00:02:00.000 --\> 00:03:00.000 can't see him i'm good to rock okay
cool so uh kind of what david was saying i like to understand who i'm
talking to so i can try and cater this a little bit more to your desires
is that cool okay so first thing well without it pretend this is
anonymous and no one else knows you're here who here is still working a
full-time job can you raise your hand and for like the one moment of the
night this i'd ask you to just not do the like hey i'm gonna be too cool
to raise my hand because then it like it's to your detriment so the
second thing who here is a full-time entrepreneur who's doing a hundred
thousand dollars or less per year okay cool who's doing between a
hundred and a million a year okay um who's doing a million plus okay
cool a nice smathering fantastic all right so um one of the concepts or
one of the things that i get asked a lot when i go well on the rare
occasions

4 00:03:00.000 --\> 00:04:00.000 that i go out in public is you know how
do i make more money how did you get started what should i be investing
in and i think that it's really important to understand that if
someone's able to achieve something faster than you they're using the
same resources that you have from a time standpoint and so it just means
that they're allocating their attention in places that they're getting
disproportionate returns on it right and so the objective is how can we
find the biggest roi buckets that we put our time into so that we can
extract as much value as humanly possible as fast as possible and so my
belief in this is that information is the single best investment that
you can have because information is the only thing that buys you time
does that make sense a lot of people want to go faster but then they
don't want to spend money on learning how to go faster and that is the
only thing that gets you from point a to point b in a shorter period of
time

5 00:04:00.000 --\> 00:05:00.000 and so where it gets really interesting
is how do you acquire those skills and so i'll give you can i give you
two like habits that i think have done really well for me in terms of
acquiring skills so the first thing is like i was up today at three
o'clock in the morning um i'm usually in bed right now so this is my
amped voice but i i say that because i also know some i have a few
billionaire friends who are who are night owls and so i don't think it's
a morning thing specifically i think it's more important that you can
always have four to five hours a day of uninterrupted time to yourself
the biggest breakthrough that i was able to have in my own life from a
business standpoint came when i was able to move the big pieces forward
every single day because i started my day that way and for me that's
what i'm the most creative is in the morning and so that's where i
invest all of my time in getting and acquiring skills just so i have an
idea is anyone like an early bird here early birds okay

6 00:05:00.000 --\> 00:06:00.000 uh what is early before six before five
before four okay well um it's really big in our community because like
so does anyone know what gym launch does okay a couple people all right
can i give you a 60 second pitch on what we do okay so we own a company
called jim launch we help small business owners that are specifically
gym owners so crossfit's boot camp semi-private facilities uh mma bjj
type facilities that are service based facilities um on average increase
their top line revenue by 240 000 a year they uh decrease their turn
from ten point four percent to six point eight percent month over month
which is awesome they triple their profit on average and that's in their
first 11 months working with us uh every nine days we create another
million dollar facility so we're pretty good at it that has been the
focus of pretty much my entire adult life it started when i had my chain
of gyms in teller california i was able to open up a new facility every
six months

7 00:06:00.000 --\> 00:07:00.000 as a 23 year old off of cash flow so i
pre-sold every facility so that i could open them at full capacity on
the first day i thought everyone was doing that i didn't know that that
was something that was different and so i had my six i sold them when i
was 26 and then i started flying out with my lovely wife who is my
girlfriend that i met on bumble at the time uh that i got to uh quit her
job and join me her parents were very stoked that she left her job for
some bumble dude on the internet to go launch gyms and so she uh so we
would actually fly out to these gyms and do basically like bar rescue we
do gym rescue and uh i did that for six months and then we had an
eight-man team and then we did that for another six months so every
month we'd go out to eight gyms and launch them and we'd go from zero to
full capacity in 21 days and we did that over and over and over and over
again that short period of time that i was referencing in the beginning
when i was when i had my own six facilities during that period of time

8 00:07:00.000 --\> 00:08:00.000 i looked back at our crm and i had done
over 4 000 101 sales in that three year period and so i had my and that
was actually closes because i couldn't count consultations you said no
so i did a lot of sales and i'm telling you this because a lot of people
ask like how did you get here without knowing how how to replicate what
happened and so despite the fact that gym launch in march of 2017 is
when we transition to the model that we have now which is an information
based model we consult and we help them implement the systems to acquire
customers uh send them increase the value of their services and then
keep them longer but it's understanding the things that got you there
because for us we were able to go from zero to a 50 million dollar a
year run rate within 20 months and so a lot of people think that that
comes from nothing but a lot of it's the eating \[ \_\_ \] period

9 00:08:00.000 --\> 00:09:00.000 hopefully the profanity is okay and so
when i had my conversation with david and some like my sales guys come
up to me and they're like dude i got 25 grand you know i'm feeling
pretty good so i'm just like curious you know what kind of investments
should i be getting into you know like crypto's looking pretty good
right now and um and it drives me nuts because i'm pretty sure i didn't
have any money in my bank account at any time until i had a million
dollars in my bank account within a couple months and the reason for
that was because my belief is that you should spend all of the money
that you have to acquire skills until you can't spend money on acquiring
skills anymore and you can pretty much always spend money on to acquire
skills it's you just do it differently and so like the higher up you go
now i have to make donations to charities in hundreds and millions of
dollars in order to get access to the boards of these charities who are
other dudes who can donate hundreds of thousands and millions of dollars
to those charities so that i can

10 00:09:00.000 --\> 00:10:00.000 then see what they know so that i can
learn faster and so i'm going to give you an example of what this whole
concept of talent stacking is so let's say you're good at math right so
that's where you're starting you're like i'm good at math cool that's a
skill not very monetizable but it's a skill and then you're like okay
well i could kind of do credits and debits keep someone's books great
that's a level one skill you've now put two skills together and now you
have something that is actually monetizable and then you're like you
know what i'm gonna learn accounting all right so i'm gonna get my
degree in accounting so i'm gonna become a cpa all right now this is
something that is becoming more valuable and then you learn about tax
strategies right and then all of a sudden you're able to work with a
business and save them hundreds of thousands or millions of dollars a
year because of your understanding of the tax code and then you learn
how to decrease liability with insurance because you continue down this
path of stacking your skills

11 00:10:00.000 --\> 00:11:00.000 and then if i'm if you're if you're
following along and like the next round would be like and then i
understood how to talk to bankers and financiers and raise funding and
do do exits and equity deals etc same person stacks one talent on top of
the other and each talent becomes disproportionately more valuable than
the talents all before them does that make sense and so it's it's a it's
a it's a hockey stick right and so in the beginning you don't make
anything for a very long time and so if you're in the crowd right now
and you have not been able to increase your income for an extended
period of time which i would define as probably a year if your income
has not had a significant increase in that period of time it's because
you've chosen to not look or understand what the next skill that you
need to stack on top of your prior skill is in the entrepreneur world
usually who would consider themselves pretty decent at sales most
entrepreneurs right we're more promoter type people

12 00:11:00.000 --\> 00:12:00.000 and so i hear this stuff all the time
there's no good sales people i can't get anyone to sell like i can sell
what's the skill that that person lacks they lack the ability to hire
find recruit train and manage a salesperson that's lots of skills but
that's the essence of what they're missing then they have one or two
sales people or three salespeople and they're like man we have good
months and then we have bad months and then we have good months i can't
keep it solid like why isn't it it's always variable right what's the
skill they lack they don't know how to manage a sales team and so the
biggest piece of advice that i can say is that it's a frame shift that
everything is 100 your fault and at the same time there are self-made
millionaires and self-made billionaires but there are also self-made 50
000 a dollar a year ers they just don't claim

13 00:12:00.000 --\> 00:13:00.000 it because they don't want to be
responsible right and so you're 100 responsible for the income level
that you have and if you're dissatisfied with it it's because you're
just not that valuable and so you have to learn how to become more
valuable and the first way to do that is to admit that you have a
deficit and so if you have an ego about it you'll be incapable of
becoming better than you are does that make sense the people who you see
who are really talented and then cap is because they can't admit that
they're not good or they could be better i want to give you a different
example for the talent stacking because i want to show that like the
math one's pretty simple because everyone understands it so let's say
jay-z when he started his career he understood he had a rhythm right he
was naturally pretty good with beats okay got it then all of a sudden he
learned how to perform another skill so he he took his sensitivity to
music etc and then he learned how to perform okay great once he learned
how to perform then he learned how to sell and market his own

14 00:13:00.000 --\> 00:14:00.000 materials another big skill then after
that he learned how to create a label a more leveraged skill then he
learned how to attract and find other skilled performers and bring them
into his label and promote them all he did was stack one talent on top
of the other and for every additional talent he had he got exponential
returns on the stack that was underneath of it does everyone here
understand what the next skill that you lack is is there any reason why
you're not aggressively pursuing it if you claim to not have what you
want if you don't wake up at 3 o'clock or 4 o'clock in the morning and
you're dissatisfied i don't get you because for me dissatisfaction is so
soul-crushing that like i will do anything to not feel that way and so
it might not be in the morning it might be after you put your kids to
bed but like there has to be that time where you can invest in learning
those skills so that you can stack the next thing

15 00:14:00.000 --\> 00:15:00.000 so one of the issues with being newer
in the entrepreneur space is that you see a course that's marketed
you're like copywriting right if i buy this copywriting course it says
i'm going to make money right if i buy this traffic course it says that
i'm going to make money if i buy this funnel course money sales course
money right the reality is that it's all yes's and all knows for me it's
just the weekly i choose to dedicate my bank to your first dollar going
absolutely wonderful day where you can create all the meaning you want i
need to learn how to write copies advertisements on media platforms i
need to be able to analyze the data to know how it's actually doing and
know how to adjust it based on the performance i need to know how to
create landing pages that convert traffic once i have a lead

16 00:15:00.000 --\> 00:16:00.000 holy \[ \_\_ \] i have a lead once i
have a lead i have to know how to get that person nurtured in such a way
that they will eventually convert and whether that's a phone sale or
that's going towards a nurture sequence those are two different paths
those are different conversion mechanisms but the points is you see how
each of these is a skill that you have to acquire right and so whenever
you see these courses don't get butthurt that you didn't make a million
dollars after buying one course you're not supposed to and so the goal
is to get as many of them as you possibly can the key is having the
discernment to know which is the one that you're missing right now right
and so like the only thing that i'm not sure how to teach is discernment
because it's the only thing that allows you to prioritize and so if you
see people who are like i said earlier are moving faster than other
people it just means that given the resource that they have that we all
have are equal which is time

17 00:16:00.000 --\> 00:17:00.000 they're able to with discernment
allocate that to the highest skill that would be next in this in the
stack of skills that they need to learn so my opinion is that if you
have twenty five thousand dollars if you have fifty thousand dollars if
you have a quarter million dollars if you have five hundred thousand
dollars in your bank account i genuinely believe that there is no point
to trying to save money if your income is less than two three five
hundred thousand dollars a year i don't think there's a point and i mean
that genuinely and that's not a diminutive way it's just that saving not
going to starbucks to become a millionaire congrats you made 40 years
and you enjoyed nothing in life like now you have a million dollars i
feel like that's not the i mean is that a life that anyone wanted right
\[ \_\_ \] that so thank you i'll be here all night um until 9 15. um
when i go to bed i'm kidding um

18 00:17:00.000 --\> 00:18:00.000 sorry entreprened totally where was i
yeah yeah so so exactly so my objective for when you should actually
consider looking at investments is when you have so much money coming in
that even when you're aggressively searching to find a way to allocate
the money to acquire the next skill there's still an excess and
abundance that is coming on top of it that is the state that you need to
get to when in my opinion you have like the alex stamp of approval not
that i'm some whatever but i'm just saying like that in my opinion is
where it actually starts to make sense the next piece of it is that once
you have that abundant flow of money that's coming towards you you also
probably have a lot of skills and so then looking at investment vehicles
of like bitcoin the stock market real estate you have to also understand
because all the things that got you to where you are

19 00:18:00.000 --\> 00:19:00.000 like i'm petrified of going into real
estate because i know that there's guys like me willing to crush me the
moment i go in there because they know the game and i don't know the
rules yet and so there's a person in every one of your spaces who has a
talent stack that far surpasses you and what you need to figure out is
deconstruct look at their path so you can figure out what talents they
were able to stack together so that they can so they're able to continue
to crush you so that eventually you can get strong enough to crush them
right and so it takes so long to get good at the game and the amount of
effort oh this is really okay i'm trying i wish okay first off i did not
know that we could have presentation powerpoints i'm a big visuals
person so i apologize but the amount of effort the amount of return that
you get from learning a new skill goes down with time right your first
20 hours of reading about sales your first 20 hours of sales in general
your first 20 sales consults you will learn more

20 00:19:00.000 --\> 00:20:00.000 from zero to then than you ever will
in the rest of the career of sales but despite the fact that you have
marginal returns the absolute incremental return at the end goes up so
an example of that would be an olympic runner in the beginning you get
much faster much faster right and then as they get better and more
advanced and more advanced they're trying to shave off quarter you know
quarter seconds from their time and so they put months and years to save
a half a second on their 100 meter right right here right at the very
end but what's the difference between first and second and third so the
absolute return you get on the very small incremental return you get at
the very end is where all the juice is when you're just this much better
than everyone else at marketing when you're just this much better than
everyone else

21 00:20:00.000 --\> 00:21:00.000 that sales when you're just this much
better at messaging and strategy then that's when you go like this and
so that's why they have these overnight successes and it's usually
because they stacked 20 skills and it was on the 21st skill that the
bridge was finally completed and then it popped up has anyone heard the
story of the bamboo tree okay one person fantastic so you all be
punished for not responding so so i'm i'm pretty sure this is a chinese
proverb hopefully i'm not butchering it but essentially a bamboo so if
you if you plant a bamboo tree and you keep it underground and you look
and you wait a whole season and it doesn't seem like it's growing the
stubborn farmer will go and dig it up and try and plant it again be like
i must have been a bad seed right and the stubborn farmer goes back a
year later ah must have been a bad seed changes the area changes the
sunlight changes the watering changes all of these things constantly
right but the wise farmer knows that he plants it and it takes

22 00:21:00.000 --\> 00:22:00.000 five years for the the sapling to
break the ground and then within the first three months it's like 60
feet tall because it's spending the whole time digging down rather than
digging up so that it can have the root system to support the growth and
talent stacking works the exact same way so i want to make sure that i
is there a direction that you'd want me to take this at all or is that
good or is there a is there like hey i'd like to know more about selling
\[ \_\_ \] or like hey yes perfect yep love it love it yup i will so he
asked an awesome question thank you he said could you give revenue
guidelines for what skills you need to acquire at different revenue
levels that's a great question i wish i had a graph and i could have
pondered it more but

23 00:22:00.000 --\> 00:23:00.000 if you're under 100 000 a year in your
business i'm assuming you're self-employed you probably don't have
anyone else who's working for you it's probably just you at that point
everything is going to be about promotion right you're going to have to
know how to market know how to sell i highly highly highly highly
recommend never outsourcing anything for as long as you possibly can so
that you can like i still think i'm probably the best marketer in my
business even though i have a whole department and i know how to make
adjustments on what they're doing and i also know who's trying to \[
\_\_ \] me right i know what ad costs are supposed to be and the only
way that you know that is having done it the same thing with sales don't
try and hire a sales guy because you're like well i'm not good at sales
well then that's always going to be a weak link for you and you're never
going to have a good sales team because you don't have the the
confidence to be able to look back at them in the eye and say like this
is wrong you're not doing it right they're going to be like well how do
you know and you're not going to be able to have the confidence to look
back and have an answer and so in the beginning it's all about okay i'm
going to pause that

24 00:23:00.000 --\> 00:24:00.000 does anyone want to have like the 100
million dollar blueprint okay great so if you want to get to a 100
million dollar valuation type company in my opinion the way that you
have to do it is get really \[ \_\_ \] good at one thing and this is
what david was talking about earlier so i wanted to make sure i brought
it up and i mean so good that people start coming to you because of how
good you are because how people talk about you if you don't have that
happen that is the quota for not being good enough it means you need to
keep doing that thing until you have past the incremental return where
it starts going like this and in some businesses that means referrals
and that's usually what it starts with until you're so good at that
thing you do nothing else and it's counter to your entrepreneurial
character to stay disciplined enough on this one track because you want
to be scatterbrained and chase the next opportunity and dig up your seed
and start another one and dig up your seed

25 00:24:00.000 --\> 00:25:00.000 and start another one i'm going to do
fitness for a while actually i want to be a marketing agency actually i
want to sell a course actually i want to do a webinar you know affiliate
marketing sounds cool sound familiar anyone right if you get so \[ \_\_
\] good at any of those things any one of them you can get to 100
million i had a friend who called me and i'm going to complete that i
had a friend who called me from high school and he's got a roofing
company he was like yeah you know we we buy these homes and then we we
we fix them and we flip them and i was like that's awesome man he's like
uh we also do windows i was like okay he's like we also do roofs though
and that's like really our bread and butter and i was like okay he's
like so like you know so this is what i'm thinking we got and i was like
great so pick one he's like what do you mean i was like pick one like
any one of them can be a 100 million dollar business the biggest fallacy
that you have as an entrepreneur is that you need more things

26 00:25:00.000 --\> 00:26:00.000 to make more money when it's the
opposite you need less things to make more money and it's the only way
you'll make more money is when you do less so that you can get better
and dig deeper because that's how you're going to be better than
everyone else because the other guys you're competing against are also
scatterbrained as \[ \_\_ \] right and so you can out discipline them by
knowing that you're going to dig deep and deep and deep and deep i can
say with a lot of confidence that there aren't too many people who know
how to make a gym as profitable as me it's been really boring for me for
a very long time i really understand how to make gyms profitable but we
stay here and we still keep innovating and figuring out new things
because we try and put blinders on so that i don't look at the other
opportunities so that we can keep getting better and better and better
once you have your one skill so i'm coming back once you have your one
skill you can then monetize teaching that skill now you have a high
margin business that has high value because you really are good at that
thing now remember it takes

27 00:26:00.000 --\> 00:27:00.000 years to become good enough that
people talk about how good you are before you enter the room and when
you leave people like dude that guy's \[ \_\_ \] legit that's what you
want if you don't have that you're not good enough in my opinion
everyone wants to start preemptively but their product isn't strong
enough and then they fizzle because they they can't hit the next level
because their actual product isn't strong enough so thanks man
appreciate it i thought it was the music i was like ah \[ \_\_ \] okay
um so you have your first skill so you've got your years right we're
talking about what revenue levels if you're doing your revenue level
it's awesome that you're like that you're making money but you have to
just keep doing that thing until you get so good at it that you're stock
full like you can't take any more clients and then you raise your prices
and then you do it again and then you raise your prices and then you do
it again and then you raise your prices then you do it again and you
keep doing that and so you're the most sought after at that point you
can then sell that

28 00:27:00.000 --\> 00:28:00.000 skill that you have acquired whether
you're a videographer whether you're a graphic designer whether you're a
salesperson whether you're a marketer any of those skills are skills
that other people value and you can teach people how to do it in a very
high margin environment now when you have your high margin environment
business it is not a business that has enterprise value because it's you
you've just productized your skill does that make sense which means that
after you've taken out the profits from that business and that which
should 100 percent be your objective in that first phase first is skill
acquisition second is monetization of that skill third is reinvesting
the profits from that high margin business into a business that does
have enterprise value that does not require you so that could be
software that could be product that could be anything once you have that
you use the talent stack that you've acquired up to this point to grow
that business to the point that you can then flip it and sell it does
that make sense

29 00:28:00.000 --\> 00:29:00.000 that's the 100 million plan or billion
depends how big you play but that's exactly how you do it if you have no
money which is how i did it well hold on not that i did it what i'm
saying is like that's who here has funding like from my outside vendor
okay three people so for everybody else who's bootstrapping that was for
you if you have outside money you can start in different ways and i
think that there's some disadvantages to that as well because then
there's some talent stacks that you skip over that then you don't know
you got this jet pack and then you don't know what the missing link is
when you get there so if you hit a plateau who here has been at a
plateau for over a year okay awesome great this is for you right now
you're not good enough you're not good enough and if you can accept that
and internalize it then you can create actions around the thing that you
need to do and do over and over and over

30 00:29:00.000 --\> 00:30:00.000 again the actions that you need to
take has to be in terms of number of volume and so what i mean by that
is if you're like i'm just not that good at sales cool how many
consultations can you get into per day i'm not that good at marketing
one of the best things i was ever given was from ezra firestone if
you've ever heard of him um he was at a small event a private event with
me and some other guys and he said i take a percentage a fixed
percentage every month of my marketing spend and i spend it on crazy
ideas that i have with zero intention of making an roi and he did that
because there was no point in him trying to learn from other marketers
at that point because he was above most of the marketers courses that
were out there and so the only way that he could learn was by learning
in the real world and so each of the skills that you're lacking has a
way to do that it can be taking more sales it can be saying i'm going to
always create so where's my videographer where's nolan somewhere

31 00:30:00.000 --\> 00:31:00.000 if i'm nolan i'm going to think every
single day i'm going to make two commercials every day i'm going to make
two commercials and every day we're gonna run them and i'm gonna see
which ones did better and i'm gonna do i'm gonna deconstruct the ones
that did well and then i'm gonna try and do more of those until i get so
\[ \_\_ \] good at it that every single video that i make is a winner
and i'm gonna keep doing that and it doesn't take a week or a month it
usually takes years right that's how it works i was on a podcast not
that long ago and um the host has a slightly younger male audience and
he was like you know man i know you always talk about doing the boring
work and just like eating \[ \_\_ \] and like waking up at you know
midnight um he's like and you know you totally suffered and we love that
that's great but um so for anybody who like wants that success and wants
to just shortcut that like what's your advice to them um and uh i was
like you're not going to like you're you're not going to because you're
not going to be good enough

32 00:31:00.000 --\> 00:32:00.000 because the guy who did do that and
took 4 000 101 sales is gonna be better and one question that layla and
i got at this event a while back was a lady in the audience said how are
you guys so certain like when you guys talk about your gyms or when you
talk about your business how are you so certain um and i think that
level of certainty just comes from being like i did it four thousand \[
\_\_ \] times like it's not like it's not like i wake up i say my
affirmations like i'm a i'm a gym guru i'm a gym guru i'm amazing i'm an
expert you know what i mean i'm an expert like i just it kills me um
because it gets to a point where you've done it so many times that it's
not amazing it's not fantastic you're just stating observations of
history and when you get to that point that's when you've probably
acquired the level of mastery that is required to be able to monetize
that skill

33 00:32:00.000 --\> 00:33:00.000 does that make sense okay cool so i
think i went probably way over so anyways uh thank you guys i'm very
honored to be here i appreciate you thank you \[Music\] \[Applause\]
\[Music\]
