https://www.youtube.com/watch?v=33LXr9R-htw&ab_channel=TannerChidester

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All right, so guys, I'm
coming with you with the man,
the myth, the mustache, Alex Hormozi.
Me and Alex actually started
talking a lot recently,
had some good conversations with him.
It's actually been great
to get a perspective,
a different perspective.
I think one of Alex's strengths,
in my own opinion is
you think a lot deeper
than I thought may be you would.
And maybe it's because we're
both like in the gym space.
So people are like, ah,
they probably don't think
that deep or whatever,
but I actually learned a lot
of like valuable insight from you.
But guys, what we wanna talk
about today is his book,
&quot;$100 Million Offers,&quot;
and yeah right there,
he's got the hard copy.
You got a hard copy?
You got them all, right?
You got a hard copy
- Yeah, I've got every version
of this book.
(indistinct)
(Alex laughs)
- Yeah, so it was actually
a really good book.
He asked me to read it before the launch
and I thought it'd be good,
but I didn't think there
really be anything in there
that I hadn't heard before
quite honestly, quite honestly.

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And I think for me, and
we'll talk about it.
But I think for me it was that
one page, one or two pages
that broken out into those four parts.
And that really got me thinking,
because I realized some of
the stuff I was doing good,
really hit on those cylinders.
And then some of the stuff I didn't,
yeah, that page right there, absolutely.
And some of the stuff I wasn't
doing well, it was like,
okay, this is how you can improve it.
And I thought it was
just laid out so simple
and so like plain gym
that it made total sense.
So what I wanted to start off with Alex,
I got some questions here
that I think some people
are gonna wanna ask.
Don't kill me, but first off,
let's just start off.
When did the book come out?
Where can everyone get it?
'Cause I know you've had it
out for a couple of weeks now.
- Yeah, so it's just on Amazon.
So there's no book phone
or there's no upsells.
It's 99 cents.
So I try to make it
affordable for everyone
'cause I've just a lot of
people from other countries

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who hit me up, so it's just
like, I just wanted everybody
to be able to (indistinct).
- And I think 99 cents,
you got to do that, right?
- Yes, everyone must do it.
There's also a course that
comes with it as well.
So it's a full course.
It has all the downloads and checklists
for each kind of aspect
of the offer creation,
the guarantees and like how to
structure them, the bonuses,
how to structure them, you know,
the elements of scarcity you wanna add in
how to do it ethically and
then how to add in urgency.
And there's like check
boxes for how to do that.
Especially if you're a type of business
that's running on a regular basis.
So like, urgency is easy if
you want twice a year, right?
But it's much harder when you're like,
why I wanna sell people every day.
And so it's like,
how do you create urgency
in those situations?
So all of that stuff, it's all good.
- No, no, it's good.
Yeah, I forgot I was recording.
Well, the thing I liked about that too,
is I watched some of
those videos that says,
I think a lot of people are very visual.
The one thing I didn't like
when I was wearing black,
I don't know if you've felt this way,
but when I was writing,
I kind of wish like
you could put in videos
because it's almost like
you can just explain better.
So I love that you had that in the book

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because I think it's
easy for people to like,
oh, I don't really get it.
And then you go and you just
literally break it down.
It's perfect.
So that's favorite things
I liked about your book.
How many years of knowledge
would you say is packed into this?
(Alex laughs)
- Thousands.
I mean, it's just our
knowledge scaling our business,
our businesses rather, you
know, for the last decade.
- And, how many mistakes
do you think you made
along the way?
- A lot.
(Alex laughs)
I can directly attribute probably
like $7 million in profit
of mistakes that I did not make just from,
just like one chapter in that book.
- Do you think that you, most
of the mistakes you made,
do you think it's from
your own experience,
do you think it's from
like hiring other people
and then doing what they say,
but it doesn't work out the
way you thought it would,
or maybe it's a minutes.
- It's a good question.
I would say, you know, I would say shuts,
other people's stuff,
but like I've also
listened to other people,

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so it's not like I can like
write other people off.
It's just, you know, especially
when you're starting out,
you have mentors and coaches
and things like that.
And part of it is taking
other people's experience,
you know, at face value and going forward.
And a lot of the things
earlier on did work out for me,
I think as we got much
bigger, you know, a lot,
and I know that you found
out later, you know,
how much we were doing for
a much longer period time
than most people knew.
The people who were giving advice
hadn't even made the amount
of money that we had made.
And so it was just very
difficult for me to find people
who I could, whose
perspective I could trust.
And that was a very difficult thing
for probably like a two
or three-year period,
which is why we started
acquisition.com and whatnot.
So to hopefully provide that for people
who are going from 10
million to 30 million
to 50 million, et cetera.
- Yeah, did, was that, I mean,
was that hard to find those people?
I'm genuinely curious,
like I've had that same feeling
and I'm not at your level.
So that's how I felt was
when I was looking for people
is trying to find those individuals
who are truly at that level.
Was it hard for you to find them?

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- Yes.
But I think you can get there,
like as much as like
there's periods of time
where you have to grind and
like put your shutters on.
I think there's like, I think you execute
until like all of the things
that you have wanted to
execute are executed.
And then I think you have
to look back up again
and look around until like, okay,
I need more information and
new frames and new lenses
to see what I can't see right now.
'Cause like, I always think like
if I were to talk to Elon Musk,
like, I wouldn't wanna ask him questions.
I would just say, like, what do you see
that I don't see from my perspective,
given my resources, skills
and character traits,
that you would recommend I
should do given what you see?
'Cause I wouldn't wanna,
my questions are stupid.
You know what I mean?
It's I mean candidly,
it's like there's an acquaintance of mine
who ended up sitting down with a guy
who's a billionaire at the time.
And he was really fresh in his career
and he was in the fitness space
and he ended up spending
like the whole lunch,
asking about where to
source equipment from?
And he always looks back
at how stupid he was

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that these were the questions
that he was asking this man.
But it's 'cause he just
didn't know any better, right?
And I think that that's
what I try to avoid
when I'm talking to people
who have experienced a different level.
Is I try and get them to ask the questions
that I should be asking.
- Yeah, so that's a great point.
I'm on the same mind frame where,
when I'm trying to ask
someone how to me it's like,
is this a good question?
'Cause I sit there and debate.
I'm like, this sounds
like a good question.
Like, no, that's a question
that's like stupid.
How do you get better at that?
Do you feel like it's a skill
you've learned overtime?
- 100%.
I think asking good questions
is probably the single greatest skill
that an entrepreneur can have,
because asking a good question,
shows depth of thought,
like you can, in my opinion,
you can tell how intelligent
and at what level someone's at,
based on their questions
far more than the answers.
And if you ask bad questions,
you get bad answers.
And if you're a stupid questions,
you get stupid answers.
And so I think a lot of times,
like even when we're looking
at our business, right,
and there's a circumstance or a situation
or a problem that arises,
a lot of times, it's like,
they'll ask a question.

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Like even my team will ask a question.
I'm like, do you think
that's the right question
to be asking right now?
- Yeah.
- 'Cause usually it's not,
it's not important at all.
It's totally different
question we should be asking.
Like, I'll give you a fun example.
So I had a very close friend of mine.
She does about 50 million a
year and she takes about 20 home
and she came to me and she was like,
&quot;Alex, I need your brain.&quot;
And I said, okay, what's up?
And she said,
&quot;I need you to show me
how I can make $5 million
in extra profit without
doing anything extra.&quot;
And in 60 minutes we did it.
And then she made an extra 5 million.
It takes me an extra
four and a half million
from one change in pricing.
And so, but like the thing is,
it was so evident because she
was like, she wasn't like,
how can I grow top line?
It's like, well, duh,
there's a million ways
to grow top line, right?
But she was like, how can I?
And she adds constraints to her questions.
And so a lot of times now,
the questions I have have constraints
and the goals that I
have have constraints,
how can I get to 100 million
working two days a week?

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In your 100 million, I
know what I need to do,
but how do I do doing two days a week?
You think different.
- Yeah, now I love that.
I mean, that makes total sense.
Is there, behind that you just
said two days a week, like,
is it more of a challenge for you
or is there a reason you would
do it like in two days a week
is just an example,
but is there a reason behind
that or is it just more
to have the challenge?.
- It's, so like many things,
I think there's multiple
reasons behind it.
So one is, I think it
would be a fun challenge.
The second is I know how to get things.
I know how to accomplish
things through sacrifice,
but I know that when I accomplish
things through sacrifice,
I end up resenting the thing
and I don't want to resent the thing.
And so in order to then shift
the perspective outwards,
the only games worth playing are games
that you can continue to play.
So it's like if I'm
helping Susie lose weight
and I help her lose weight for six months
and then she drops off and
then gains all the way back,
who cares?
And so I'd rather have
Susie just walk every day
if she can absolutely keep walking.
And if she does that for
the rest of her life,
I've genuinely added
10, 20 years to her life

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and probably made her truly fit
in a way that's reasonable and acceptable
over the longer period of time,
which is the only thing that matters.
And so for the business
component, it's like,
I know that the person who
can stay at it the longest,
most of the time will
win because it's just,
I have there's too much
time under the bar.
It would be unreasonable for me not to win
because I just have too
much more experienced
than everyone else.
And so if that's the objective is like,
how can I play this game the longest?
Then the question is, how can I do that?
And so for me, it's like, all right, well,
if I spend two days a
week in truly working,
I'm gonna put quotes here
'cause the other days I'm
obviously doing stuff,
I'm writing the book, I'm recording videos
and things like that.
But those are things that are like,
I love doing those things.
Like those are, I genuinely enjoy.
And if I don't feel like
doing it, I won't do it.
What's up?
- I'm saying, not like
actually inside the business,
just other tasks.
- Yeah, exactly.
And those are fun creative
flow tasks for me.
Like those are fun.
And so that was the idea is like,
if I can create the structure
under which are circumstances

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under which I could continue
this for perpetuity,
then I will win because I
won't quit or switch gears.
'Cause that's usually,
I mean, entrepreneurs don't really quit.
They just change it shit,
because they just can't stay anymore.
- Right.
I was gonna ask you,
do you think part of
your fitness background
is why you're so successful?
Do you see that trend among people
who have a strong fitness background
and maybe business success?
- I actually don't think so at all.
I don't think they're related.
I think that people who have work ethic
then can learn fitness, but most people
who are really into fitness,
this is what I think
is kind of interesting.
I think people who are really into fitness
actually are really into fitness
and never really developed the work ethic.
They actually just do
it 'cause they like it.
And so then they expect,
and they preached that.
They're like, I have discipline
and waking up at five.
I'm like, you love taking
pictures with your shirt off.
You love going to the gym.
This is not you showing...
'Cause here's the thing,
that same person won't fucking
do 100 messages every day.
- Right, right.
- Right, they won't cold call.

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They won't, they won't message.
They won't run ads.
They won't do this stuff
that they're supposed to do
because it's hard.
And so they think that because it's hard
for other people to do fitness
that because they do fitness,
they are hardcore or disciplined.
When in reality they just have
a preference or a proclivity
to doing something that other
people just tend not to do.
But if you find me an entrepreneur,
who's a winner and who has the work ethic.
And then you say, &quot;hey, go into fitness.&quot;
That person will be successful.
They might not become a body,
but because they're not
super passionate about it,
but they'll get fit.
- Yeah, I love that perspective.
I love that perspective.
What do you think
is been the scariest moment
along your journey so far?
I have a guess what it might
be from reading your book,
but I'm curious what you think.
- Actually, the worst part.
So I know that I think you,
you might've read the Jim Lynch book.
The most, so it's like the
worst and most painful period
was when I started the first gym.
That was by far emotionally the hardest

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and I think it was because
I was the most alone.
Like I traveled to a new
area, I didn't know anyone.
Like when people left, it was just me.
I had no friends, I had no family.
I had no nothing.
And so I would sit there in an empty gym,
be like, what the am I going to do?
And so, and it was terrifying,
you know what I mean?
But I was so insecure of fearing failure
and feeling the judgment
of what I thought other
people would say about me,
that that was like the only
thing that really compelled me.
And so it was kind of that pain
that I was running away from.
The second probably
hardest time was the one
that I talked about in the book
where I basically lost everything.
(Alex laughs)
That was pretty shitty too.
(Alex laughs)
- What I read from the book.
And will I have a later
question on it, but I feel like,
you know, my parents had similar feelings
about business and so forth as yours did.
And I didn't feel a lot of support.
You think there's a,
you see a trend among successful people
who almost like they're
running from not being a loser
or not being disapproved of in a sense.

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'Cause I know how you said that,
that was 100% my motivation.
- Yeah.
I think it's different for, you know,
like you look at Michael Jordan, you know,
and for him it was the
comparison to his brother, right?
And so I think that, I think
I'll rewind real quick.
I think humans experience pain
and then it just takes
certain types of people,
take the pain and let it
beat the strength into them.
And other people take the pain
and let it beat the strength out of them.
And they blame the person
who caused that pain
is the reason they are not
successful rather than saying,
I will not give this person
power anymore over my life.
And so as a result of the
pain that they beat into me,
I will become stronger and
I will prove them wrong
or whatever it is.
And I think that most people
though, the level of success,
I think in some way in the
beginning is proportional
to the pain that you experienced.
But then I do think that
there is a switching point
because once you have satisfied
and I think that you're rubbing into this,
like right now in some of
the conversations we've had,
it's like, there comes a
point where you're like,
it's not really reasonable
for anyone to say

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that I'm not successful anymore.
It's not like there's no more
marginal utility for money,
like another $1,000,000
or another $10 million
truly changes nothing about my life.
And so then I think that
the motivation has to change
and I don't think it happens overnight,
but I think that it does
switch from a fear-based drive
to a pool based drive.
And as a fun quote that I like a lot,
is that most people
don't know the difference
between fear and motivation.
Most people just, they conflict the two.
They assume the feeling
they have right now.
Maybe some people are
listening to this, that drive.
They might think it's motivation,
but it's actually fear.
And then when fear is gone,
because you've satisfied
all of your needs,
then they don't know what
motivation actually feels like,
'cause it feels different.
- That's a good point.
You know, I see even on
like a YouTube channel,
that thing took off
like a rocket ship, bro.
You know, I think the thing
that resonates with people
is just your thoughts are
like, it's almost like,

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where did you get this perspective?
Do you feel that a lot of your
thoughts now come from just,
I mean, obviously building
a business to your size,
you have to gain
perspective, but is it more,
the people who've been around?
Is it the books you've read
or is it just literally just
the experience of doing it?
- I think I spend a lot
of time not doing much.
So counter to the grind culture.
Most of my day is empty.
I don't have anything after this.
I didn't have anything till
noon today, three days a week,
I have nothing on my calendar.
So, you know, and so a
lot of time, you know,
I occupy my time just
reading stuff that, you know,
that seems interesting.
And they're usually
totally disparate books
and it could be anything
from like religious stuff
to pricing to whatever.
And I also think that my
closest friend, Dr. Kashi
is basically a philosopher.
He and I spent a long
time talking about ideas.
And I think a lot of that
comes into the context,
of death, honestly.
So we talk about death a lot
because I think a lot of people
don't like talking about
death, but in doing that,
I think we get a lot
of perspective on like,
what is important and why.

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And so that's been helpful for me.
- Yeah.
That makes sense.
When putting together offers getting back
to your, you know, your
chapter in your book,
do you think people
have a natural tendency
to make them complicated or not to listen?
Like when I read it,
it just seems so clear,
but do you still have people
who fight you on it or
try to over-complicate it?
- I don't know,
really almost no one's
following me on the book.
Like every person is like, I mean,
we've gotten a lot of good
feedback from the book
and so not really.
I haven't had any negative
feedback from the book,
so I'm like waiting for that.
But no, I think it's a
fairly clear structure
and most people just see it
at least two or three elements
that they could include in their offer
to make it more valuable.
And most times when people like,
as a thought experiment for everybody,
who's listening to this.
The offer, in my opinion,
besides the marketplace you are selling to
is the most powerful lever you have
on how much money you're
going to make, right?
At least on the ability to sell stuff,

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which obviously is a skill in of itself.
But if you have a really good offer,
it's much easier to sell, right?
It makes your job easier.
And so if I were to say,
for example, anyone here, hey,
I will double your business in
the next 30 days guaranteed.
Or I'll pay you twice,
what you paid me, right?
That's it, that is an offer structure.
There's an outcome, there's a timeline,
there's guarantee, right?
And I'm only taking two people, right?
There's some scarcity for you.
(Alex laughs)
And so just like that,
that would probably be
right now a compelling offer
to most people here, right?
And depending on the price,
they just have to factor it
into what doubling the profit
or doubling their business value to them.
You know, if you're
making 10 grand a month
and I charge $1 million for that,
then it might not make sense.
But if you're making $1 million a month,
that it totally makes sense.
And so then it's a very easy
decision for the prospect.
It doesn't take a lot of salesmanship.
It's just a simple decision, right?
Best case, worst case here it is.
And so if that's the extreme example,
then if we take that extreme and just say,
how many steps backwards do we
need to take until we arrive

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at something that's reasonably.
- Scalable?
- Yeah.
I would say reasonable first
and then scalable second
'cause maybe a certain
percentage of people listening
to this, it's so funny.
There was a guy who I
went to high school with.
He got furloughed because
he was a chiropractor.
So he graduated from chiropractors,
a doctor chiropractor,
and then got furloughed like
the next month after COVID
and he was like, bro,
I need to make money.
And I was like,
do you wanna make money
being a chiropractor
or do you wanna make money?
And he was like, I'd
rather just make money.
And I was like, okay.
So we just put him in
gym launch and I said,
just sell weight loss (indistinct).
What he got?
And so he's selling and
literally 90 days later,
he's doing 20 grand a month
and he's stuck, right?
So, but the reason that I
brought this up was that
before he started making the money,
he was like, hey, here's my offer.
I'm trying to put these pieces together.
You know, I'm afraid that, you know,
if I give away too
much, it's not scalable.
And I was like, bro, you
don't have any clients.
I was like, what scale issues
are you worried about right now?
You have no clients.
So it's like worry about scale leader

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once you have cashflow.
And to prove the point of
how much I believe in this,
I spent two years launching gyms.
So people were like, Alex,
how'd you build such a big
coaching business in gyms.
It's like, 'cause I
launched gyms for two years.
I flew out.
I showed up at the front desk
and I sold membership for 24 days.
And then I flew out and did it again.
And then I flew out and
then I did it again, right?
And then I had other guys
that were flying out with me.
So I was running a sales
team and doing that.
And they're like, how
are you so good at it?
It's like I did it so
many fucking times, right?
And so I think so many people
aren't that good at the thing
that they think they're good at,
which is why they don't
make any money, right?
And so anyways, right over.
But in terms of scalability,
I think it is far better
to get good at the thing
and think how can I provide so much value
that this person wouldn't
say no, get the yeses,
get the cashflow and then determine
what people find valuable,
what they don't find valuable
and then peel back the offer
until you still have the
ultra valuable stuff.
But you can pull back some of the things
to make a little more scale.
- Yeah.
That's a good perspective.
In fact, I mean, I didn't do the gyms,

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but I did do the online.
- Yeah.
- And that's kind of what made it.
And in fact, I got to that point
where I had to start to sign,
am I gonna do low ticket fitness?
Or am I gonna go more high ticket?
And you know,
I had like trainers lined up
out the door that were like,
hey, can you do this for me?
That's actually how I got into this.
I never thought I get into this.
Back to your point of what you just said,
something that I've found interesting
that you keep bringing up is
when you talk about scaling,
getting to the next level is
not doing too much, right?
So not having too many offers,
not getting too convoluted.
So is there a litmus test to know
when you're adding in
too much cheer offer?
So let's say you have a coaching offer
and then you throw in the agency
and then you do this done for you that,
and then emails and all of a
sudden you have all offers.
Is there a litmus test of that
to know when it's a good idea
and when it's not a good idea?
- It's a good question.
I think it's a really good question.

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- Got to have one a day.
- Yeah, it's a really good one.
I wish I gave a perfect answer,
but I don't know if I have one.
Yeah, I don't wanna give a false answer.
I don't know.
- Okay.
- I mean, I feel like
I know when I see it,
you know what I mean?
But in terms of like,
what framework would I use
to say this is too much or too little,
most times the easiest litmus
test that I was like from,
if we're going big picture.
The easiest litmus test
that I would think of is,
are we changing avatars?
That'd be the first,
the first litmus test.
The second would be,
are we changing place in the market?
And so, there's four
major strategic positions
in any marketplace.
You've got ultra low, which is like,
what you can see, like VA's
for $400 is ultra low price.
Then you've got your low
price, which is Walmart, right?
And then you've got premium,
which is more expensive
than the average stuff.
And then you've got luxury, right?
Where demand increases as a
result of status and price,
where the higher the price
is, the more, the status
that's associated with it.
Now, people who might be listening to this
might think they're in luxury.

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They probably aren't.
They're probably in premium,
which like your program,
my program, they are premium products.
They're not luxury products, right?
No one did it,
no one has status associated
with how much they paid you.
And so if I were changing
where I sit on that graph,
then that would be another thing
where I would say, okay,
will you still want to occupy
one position, number one?
Number two, we wanna serve one avatar.
And I think part of the reason
that the question is so
difficult to answer is that
there has to be context behind it.
So like right now we have six businesses
that were in like heavily, right?
And so you're like, people might hear that
and be like, well, Alex,
I thought you told me
to focus on one thing.
And the answer is yes, but it's also,
at what point do I have the
skill set and character traits
that would allow me to do these things?
And so I think like when I
started my second business,
which is Prestige Labs, I
did that out of sequence.
I should not have done
it as soon as I did it.
Now that I have it now,
it took me a long time
of failure and suffering
during that period of time,
a transition of being CEO of two companies

24
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that I can now see that in retrospect,
I don't know how things would
have turned out differently,
et cetera.
But I think that there's a skillset thing.
Could you have multiple
offerings if you have champions
for each of those product lines?
Yes, I think so.
Because if you can run multiple companies,
you can run multiple product lines,
but most people don't have
the skillset to do it.
So as a broad statement
for most entrepreneurs
who are under $10 million a year,
I say focused on selling
one product in one channel.
And then the second going
from three to 10 million,
it's just increasing
the backend lifetime
gross profit per customer.
- Yeah.
With your businesses.
The thing that impresses me
the most is the fact of scale,
how much scale you've
had with essentially,
and I may be wrong, but in your portfolio,
I still believe you
don't run hardly any ads.
That's accurate, right?
Overall.
- That is accurate.
Well, one of the companies
runs a lot of ads.
It's not general, different components.
- One i'd say.
So, to me that's the most impressive.
And the reason is I thought
my profit margins were high
and then I heard yours and I go, shit,

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I guess if I didn't run ads,
they'd be that high too.
So, but then what impresses me further
is the amount of scale.
So when you're starting these businesses,
did you just figure out a formula?
And then you make sure these
businesses fit that formula
or did it just so happen
that you'd start a business
and you're like,
how can we get these leads
without paying for them?
- I think it's both those
thought processes, honestly.
Now, in terms of the
check boxes for business,
I have five that I look at.
So it's my little moniker
is unique, expensive, sticky, air,
and managed with a person of integrity
who has a long-term mindset.
So those are the five things.
I'll unpack it real quick.
So unique is like,
is there something that
we have a unique thing
that only we can do that we have unique
and it might not even be
the thing that's different,
but do we have a unique story
that can still differentiate us?
Like for me and Jim wants, there's nobody,
who's had as many gyms as I have,
or who did two years of turnarounds.
That's a unique angle that I
know that I'm better at, right?
Expensive is gonna be just
a function of pricing.
And it's more than it is
expensive in absolute terms.
It's more, what is the gross
profit of the business, right?

26
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Which has a function to do
with the second thing, unique,
expensive, sticky, air.
And the air is, sorry the fourth thing.
Is basically no marginal costs.
How can I sell something that
costs almost nothing, right?
So that I don't wanna
have 80% or 90% margins.
I wanna have 97 and a half
percent gross margins.
And the difference between
a 90% gross margin business
and a 95% gross margin business is twice.
That sort of from fucks up.
A 95% gross margin business
is twice as profitable
as the 90% gross margin
business, because it means I can,
I would have to sell twice
as many units, right?
Or for each increment of cost,
I can sell two versus one.
And that is why it's
twice, it's not 5%, right?
And everyone messes that up.
So unique, expensive, sticky
is how can I make it recurring
and have some sort of habit
forming component to it.
And either it's recurring
because of the model
or because of how good the product is.
So how can I have some
element of recurring
that's gonna come into it, right?
So unique, expensive, sticky, air.
Those are the four,
and then managed by
someone who has integrity,
who has a longterm perspective.
And then that way they'll
make the right calls
at the right time
and not sacrifice
short-term for quick pop.

27
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And so that's in terms
of like the businesses
that I'm looking at.
In terms of the question about how do I,
how do we have such low ad
spend related to our revenue?
So there's, so this is, this
has been evolved over time.
Having spoken with like
all the guys I know
who are worth 250 million and up, right?
What was interesting to me is
that the vast majority of them
want to do one time inputs
with compounding returns.
And so most people do the opposite.
They do things that they have,
like spending money on
advertising, for example,
you have to come up with a whole campaign,
you have to write all the copy,
you have to put money in it,
and then it stops working
eventually, right?
And you have to do it again.
And it stops working eventually.
Now, contrast that with,
I'm gonna write a book
and it has to be so good that on its own,
if I give it to 10 people
that more than 10 people
will get it as a result
of this first 10 people.
So then, so each of those 10
people sends it to two people,
those two people sends it to two people.

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00:27:00.000 --> 00:28:00.000
So right now, this book
was almost a test for me
of that concept, given
the book in the course,
and that has actually worked.
So I made one post on Instagram
and that was my promotion.
I've run no ads for this book.
And it's selling 1,000 copies a day.
(speaks faintly)
It's nuts!
Right, I mean, 1,000 copies,
you can multiply the
math, it's a lot, right?
But there's no advertising.
None.
And so when you look at
to round that point off,
if you look at the six ways
of getting customers, right?
So you have paid ads,
you have earned media,
which is the followers
that we all have, right?
We have owned media,
which has all the people
who have given us permission
to contact them.
So all of our followers in their inboxes,
the DMS, et cetera, your
phone contacts, CRM,
and then you've got manual outbound.
I know, you know, this,
I'm just saying this for everyone else.
Manual outbound, which
is the actual coal diem.
So same concept,
but we're doing it to
on a one-on-one basis
to people who haven't given us permission,
we have affiliates.
So people already have the
pool of customers that we have,

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that we can partner with
and make a full integration
to their business,
and they can keep sending us new clients.
And then finally you have word
of mouth and referrals right?
Now, if I were to ask the audience, right,
which of those is quadratic
compared to which of those is linear?
Which of the six is which
they might think for a second,
because we're only talking
and I can't see the comments.
I will answer the question, right?
Referrals, word of mouth is the only one
that is quadratic.
So if I put $1 in advertising
and I get $10 back,
then I get, then I put
$100 in, I get $1,000 back.
It is linear in the relationship, right?
It's a straight line,
same thing with outbound.
If I do 100 calls versus 200
calls versus 1,000 calls,
and it's the same response rate,
more or less large, large numbers.
With referrals, if we make
the product good enough,
then I can give it to one person.
And that person gives it
to two, two give to four,
four give to eight,
and then it multiplies,
it's quadratic, right?
And so when I look at the
people who make the most money,
they spend all of their time
or disproportionate amount of their time,
truly getting product market fit.

30
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And a lot of people talk
about product market fit,
but they don't actually ever achieve it.
Their idea of product market fit
is that people are buying it.
That is not the way
that product market fit
is actually determined.
Product market fit is actually
determined based on the fact
that these customers
stay and continue to pay
and want to buy more.
That's a fun product market fit.
And so the idea is we shouldn't
be promoting just enough
to keep fixing the product
until the product itself
does enough selling force
that it becomes a virtuous cycle,
but most people just learn
how to make that first dollar
and then try and max out.
And then they're really
disappointed by the fact
that they're not making
as much money or profit
as they'd like to make.
And then also feel shitty about that.
And so when I look at that,
if I'm trying to build something
that has compounding returns, it's like,
how can I take a one-time effort
and really go all in on the product.
I know enough about promotion now
to make sure that I
can get the first sales
to grow and then keep tweaking this
until eventually it is good enough
that I get an outsized
return on any effort I do.
And then at that point,
I'll turn the other ones on.

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'Cause then it becomes very...
'Cause then making the
advertising profitable
is basically inevitable because
for every customer getting more customers.
- Yeah, the biggest lessons I've learned
from you recently is,
I mean, simply I've seen that.
So I'm like, what can I do different
to where I don't have to market so hard?
'Cause I can market.
I can market,
but I can not outbeat that
performance with marketing.
And then also it's wrapping
my head around, okay.
Maybe these offers,
what do I have to do
to change these offers?
What new offer would I
need in that criteria,
because I have a lot of experience.
I think it's easier for me
to wrap my head around that.
But that to me is like,
what I've seen is it's like
he's doing something in a way
where it's like almost
funny where it's like,
we don't really have to
do anything to sell this.
The cold calling,
especially I think is
absolutely ridiculous, right?
Like you can call someone
the offer is so good.
You're just like, yeah, we'll
just kind of do it with you,
whatever, if it doesn't want
to pay us and they're like,

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all right, I will do it.
And it's brilliant, it's brilliant.
One of the questions I
wanted to ask is, you know,
in the book and I understand this,
but you said if your company
isn't growing at Stein,
and I think some people don't
understand that they think
like, well, my company's here.
Like it's not, can you
give maybe an example
because you've said it really
black and white in the book
that people can understand what
you mean by that statement.
- So if you look at the
marketplace in general,
the marketplace is growing
at 10% a year, right?
And so if you are not
growing by 10% a year
relative to the market, you are shrinking.
And so that means that you are dying.
And I use grow or die as
a very polarizing term
because it's memorable, right?
But fundamentally, most businesses,
if they are not adapting or innovating,
we all get outpaced by the marketplace
and then eventually
varnish into nothing else.
And so the idea is that
we must continually grow
and must continually innovate
to keep our products
sharp and top of the game.
- And have you ever had, you
know, a time in your business

33
00:32:00.000 --> 00:33:00.000
where I finally saw it this year
where I felt like this was the first year
where I was like, man,
I got to start changing or
we're not gonna keep going up.
Have you had that happen
in your business at all?
- Well, yeah, I got kicked in the nuts
during COVID cause I shut gyms.
But,
(Alex laughs)
- I did know you well enough then,
but I remember I said a
distinct prayer and I was like,
thank you, Lord.
I'm not Alex Hormozi during this.
(laughs)
- So yes, you know what I mean?
I've definitely, you know,
I've definitely experienced it.
- In the book, you know,
your dad questions,
whether what you were
doing were legal, you know,
after one of the pictures
from your events,
so you didn't initially have
that support from your family.
What would you say to
people who are watching
and they're kind of in that same boat.
I see this a lot with beginners,
to how to deal with that because it's,
I think it's easy to maybe say now,
but I know when I started,
I don't know how you felt,
but I got very close to
quitting a few times,
which in retrospect is
crazy, but you know,

34
00:33:00.000 --> 00:34:00.000
getting kicked in the nuts
over and over, it's tough.
How did you deal with it?
Or how will you deal with it?
(Alex laughs)
- It's such a visual,
just getting kicked in the
nuts over and over again.
- Especially if you're new.
- So, I mean, I'll briefly share the story
that got me started.
'Cause I think it might have relevance
because for me the hardest decision
was actually quitting my job.
So that was the hardest
decision I had to make.
'Cause I was actually a very good student.
I graduated from Vanderbilt
Magical Maori in three years
and I got a good job as
a management consultant
and I got paid good money.
And so I had,
I pretty much had done
everything that I was told to do
up to that point, I was
president of a fraternity.
I, you know what I mean?
I was editor of the things like
I did all that stuff, right?
And so I'd fallen everyone's
path and I was miserable.
And so I remember I was
looking out of my balcony
'cause I own a condo in a
high rise and I was 22 and I,
all I could think about
was how I just didn't wanna be alive.
And so it was,
and that's why I say like a
lot of my decisions have been

35
00:34:00.000 --> 00:35:00.000
in the face of my mortality
because it's like,
apparently the only thing
that get me to move.
And so when I was faced with
the fact that like, I was like,
if I'm driving tomorrow, I was like,
I could just accidentally
go in the other lane.
And like, it would be all right.
Like no one would no,
no, no would be fine.
And I wouldn't wake up and
it would be over, right?
And so the thing is just like
this kind of passive variation
was something that like
occupied a lot of my time.
And so I was like,
it got to the point where
I was in so much pain
of just living this existence
that I didn't wanna live.
That I was like, well, if at
least if I start a business,
that'll be doing something that I like.
And I won't like, I won't be thinking
about fucking killing myself every day.
And so that was really,
that was kind of like was when
I was faced with my mortality
of like, well, I've got
the judgment of my parents.
I was like, well, I could die.
And I was like, well,
I guess judgment of parents
is better than death.
And so that was how like straight up,
that was how I made the decision.
But then even when I
did make the decision,
I still had the same level
of like fear of failure and judgment.
And I told you so, and
we've been right all along
and you should have listened to me

36
00:35:00.000 --> 00:36:00.000
that I never wanted to hear.
And so when I started the business,
it was just that fear that I just like, I,
and I had so much anxiety
every hour of every day,
which is why I didn't take a vacation
until December of 2019.
- Yeah, I can relate to a lot of that.
And I remember distinctly
after finishing football,
that was my whole life,
I just wanted to play in the league.
I mean, I was in engineering
class, had a year left
and I was like, ah, this
just is not gonna work.
And it really hit me
because I was like, my,
I was looking at that
for the rest of my life.
So I can 100% relate to that.
I didn't even know that part
about your story that young.
- Yeah.
Infact to answer the
question for the people
who are struggling with
like their parents' stuff
or their sister, whoever
that person is, like,
I think, 'cause like a
lot of people are like,
I'm so afraid of what people think,
but if you really narrow it down,
there's only like two or three people
whose opinions you actually care about.
And maybe it's just one.

37
00:36:00.000 --> 00:37:00.000
And so then if you can
actually just narrow it down
instead of making it the
faceless, like everyone's opinion,
but like,
who's that one person whose
opinion you care about,
then it's asking a more pointed
question, which is like,
is my opinion of what my father
thinks of me more valuable
than what I think of me?
And I think if you can
answer that question
and hopefully it's like,
I think what I think is more important
then you can take that first step.
I mean, I remember my dad called me
and this is after we had
probably taken home 20 million
at this point, you know what I mean?
This a few years ago.
And he was like, hey, you
might want to hear this.
And I was like, what?
I like stepped out from dinner.
I was like, what?
He was like, you ready?
And I was like, yeah.
And he was like, I'm sorry,
first time he's ever apologized.
And I was like, and I was
like, and I was like, for what?
And he was like, you know,
for everything, he was like,
you were right.
He was like, but in my defense,
if it had been in my time,
I would have been right.

38
00:37:00.000 --> 00:38:00.000
And I was like, and what
was interesting was,
- Are you saying, sorry Dad!
(laughs)
- Right.
But I remember when he
said that to me though,
that my response was, I was
like, you rooting for me now
when literally everyone else in the world
has already recognized that I
am good at this means nothing.
And I was like, if I
cared about your opinion,
I would have never quit to begin with.
And I was like, and you know,
when people can stand on stage
and the first thing they say
is, hey, mom and dad,
thanks so much for always
being there and believing me.
I was like, I'm not gonna fucking say that
'cause you weren't.
And I was like so,
I'm glad that that's apology
made you feel better.
I was like, but your
opinion stop mattering
to me a long time ago.
And so that was the conversation
that I had with my father.
Hopefully it was less targeted
than that for everyone here.
But I guess, you know, what
conversation do you wanna have?
And if you never quit,
then you won't fail.
And that is like,
that's the prerequisite
of entrepreneurship.
If you do not quit, you won't fail.
And so they can never say,
I told you so until the
moment that you give up.

39
00:38:00.000 --> 00:39:00.000
- Yup.
I think, sorry, man.
I, that just resonates with me so much.
Like, that's the number one thing.
Like I say that all the time, I'm like,
as long as you don't quit
and you don't have a mental
disability seriously,
and you can make decisions
like that didn't work,
that didn't work, don't do that again.
You eventually will hit success.
It's just time, that's it.
It's just time.
Do you think you would
have made it without Layla?
(Alex laughs)
- So I had six gyms before I met Layla,
you know what I mean?
So I think I had a reasonable
level of confidence,
but I wouldn't have made it as big
or it would have taken me much longer.
- Yeah, I mean, was it easier with her?
- Oh, my God, yeah.
I mean, everything blew
up when I met Layla
and that's because I always
had half the equation, right?
I didn't have the other half.
And so half the equation is
marketing and sales, right?
And she had product
operations fulfillment.

40
00:39:00.000 --> 00:40:00.000
And so that was once I had that piece
because I could always
outsell my problems,
but I just couldn't, I couldn't
keep people, I didn't know.
I didn't, I didn't get that part yet.
Which might be funny for
people listening to this
compared to how I just
talked about the first half
of this talk, right?
But like, it's because I've
learned that lesson, right?
I've learned how much more powerful it is
to not have to tell you.
It's so much more profitable
to make the products
exceptional and then get people
to buy over and over and over again,
you make so much more money.
And so like,
although I came up from the
marketing and sales perspective,
I would no longer consider myself that.
I'm just much more of
a business person now.
At least I consider myself that way.
But having Layla as early as I did,
I kind of got to leapfrog
a lot of the pain
I otherwise would have had
to figure out the hard way.
It was just like, you take all that stuff
'cause I don't like dealing with that.
And she was like, okay.
And then she crushed it.
And so by doing that, it just blew up.
And then in retrospect, I was like,
oh, that was really important.
I need to make sure that
that's always there.
And so now when we create businesses,

41
00:40:00.000 --> 00:41:00.000
it's like front end, back end, shared ops.
And we always have all three
with everything that we do.
And then that way they
work on the first run.
- Do you, well, let me ask you this.
I mean, a lot of people,
I feel like I got a good
concept of what you do now,
but everyone's always like,
what's a day in the life look like Alex?
What do you do?
So what does that kind of
look like now that, you know,
you stepped out of most things
and you're basically just being an owner.
- I mean, it's like, it's not a lot.
(Alex laughs)
I mean, I spend my time.
Yeah, I mean I spend my,
so like today I was reading this book.
It's okay, it's not great, it's okay.
You know, I was writing these books.
I still have book two and
book three that are written.
I'm just going through the
editing processes now for those.
The only things that
are set on my schedules
that I'm meeting with the CEOs
of the acquisition.com companies.
I meet with those guys once
every week or every other week.

42
00:41:00.000 --> 00:42:00.000
And that's like, that's
the majority of that's.
Those are my half the dos and all the,
and everything else right now.
My focus right now is promoting the book.
You know, I wrote it.
So I figured I should
promote it a little bit.
So that's pretty much
like I have like Saturdays
and Sundays, there's nothing.
I usually have one or two days of the week
that are completely blank.
Monday afternoons is
when I did the meeting.
So that was a nice tweak if you, if you,
for everyone else here.
- Okay.
- Yeah, so number one heart attack time,
in the U S is first thing Monday morning.
And so a mentor of mine, sold
his company for 3.4 billion.
He did heart rate variability
on all of his executives
and he found out there were
most stressed in the morning.
So we just pushed all the
meetings back until afternoon
and everyone was okay.
And so I can tell you, it changes
the feeling of everything.
It's weird, it's so weird.
I just don't work Monday mornings.
And like my first meetings at like noon.
- That's so interesting.
As first time I've heard that.
I might have to try that.
It's so interesting.
- Dude, it's weird.

43
00:42:00.000 --> 00:43:00.000
It's tripping, like it's, you're like,
I feel like I'm cheating.
Like I'm not stressed right now.
And so all of a sudden, no
one else has stressed either.
And then it eliminates this
false urgency you feel.
'Cause it's like first thing
that I got to do stuff on Monday morning.
It's like, no, you don't
'cause us deciding now
versus four hours from now,
it's gonna change nothing.
But like the stress levels go way down.
So my Monday afternoon,
I spent like three or
four hours in meetings
and then I have Thursday
mornings, I do a little bit.
That's it.
- Final two questions
Alex, what's next for you?
What's next for you?
You got the portfolio companies.
Are you just going to keep adding to it?
What are you gonna do next?
- Yeah, that's 100% of my focus was like,
how can I play something?
So, I spent probably two
years trying to think about
what the next thing was gonna be.
I know you and I have had
offline conversations about this,
but like I had no,
I'd really had no more
marginal utility for money.
So money only solves many problems.
And once you've solved
all the money problems
that exists in your life,
there's not a lot more that money can do.
And I recently did my will and
my estate planner updated it.

44
00:43:00.000 --> 00:44:00.000
And like, I don't have kids
and all the stuff that I have,
I'm gonna be donating anyway, when I die.
So like, there's really
no reason for me to like,
for me, the idea of
legacy is kind of silly
'cause I know a hundred generations,
my gym pool would be done,
even if I did have kids.
And if I did have kids,
I probably wouldn't give him the money
'cause I think it ruins them,
which means that I can't give
the money to anyone anyways.
And even if I did in
a hundred generations,
don't even remember who
I was to begin with.
So it doesn't really matter.
So all that to say,
I had to think like, what
is my ideal day look like?
And then how can I create
a company that fits that.
And that was, it was like a two year.
I still have a note on my phone
that has like 11 different,
big business ideas
of what I was gonna do next.
And then piece by piece,
I started crossing them
out until I was like,
the acquisition.com one
just kept feeling right.
It kept coming back to like,
I would have moments where I was like,
this one might be cooler,
but I would always come back to that one.
And so that's why, I think
I'll be able to win with it
because I keep coming back to it.

45
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And I think that I'll be able
to do it for a very long time.
And so if I do it for a very long time,
then I think it will grow much bigger
than anything else I've done.
So for everyone who's listening,
we're acquiring minority positions
in education or training based companies
that are really 5 million
plus it's like five to 15 ish.
The biggest company in the portfolio
is doing 35 smallest
companies doing 8 million.
So just for like context,
but that's kind of the range,
but 5 million plus is kind of,
at least where we kind of draw the line.
So we're looking at those
companies and saying,
hey, we've already done this
like a zillion times now.
So, you know,
helping someone get to 30 million
or 50 million or whatever,
like we understand how to do it.
- Yeah, it doesn't is it
too difficult for you?
So guys out, so you so much, man, guys,
make sure you go to Amazon, get his book
and then Alex, when do your books drop?
(Alex laughs)
- The next book will drop when
I think it's good enough that

46
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when people read it,
they'll tell their friends.
- Fair enough.
- So, you know, I think,
I mean, it's done now.
I have a whole rewrite in my head though.
I've rewritten the second
one, three times now.
So I'll probably end up
rewriting it two more times.
So I'll probably rewriting
it one more time.
- When you're writing it Alex,
are you doing pretty much
the heavy work as well?
Like you're not getting
a lot of help, I know.
- I do everything.
- That's, that's--
- I do everything.
- That's incredible,
'cause it's a lot of work
for people who are watching this.
These it's not easy to
write a book by the way.
So incredible.
- And a good book's, even harder.
(Alex laughs)
- Yeah, yeah.
- So, it's how can I make it?
Like, it has to be so simple
and so digestible that,
'cause like when I'm reading,
'cause I've read this
book a zillion times,
'Cause every time I edited
it, I basically read it.
It's like, where is it
that my eyes I gloss over
like where is it where I lose interest?
Or where is it that it's like chunky
and it's like I gonna have
to rewrite it and massage it.
And how can I break this idea

47
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of giving it a different example?
And I think what happened,
the reason I like the
writing stuff so much
is because I get better.
You mean like I get better
at explaining the concept.
So like my depth of understanding,
my perspective on expertise
is how deeply you understand the basics.
I don't really think that
there's a lot of advanced stuff
in business.
I think it's how deeply do you understand,
like people use the term value, right?
For how long have you
heard people say value
and no one had a fucking equation for it.
You really provide more value?
Like what does that mean?
Right?
- I mean it's true,
like even that equation,
if you took that whole book and
you gave me those two pages,
that was what I got out of the book
that was worth the read for me.
'Cause I was saying, they're going.
So if I just do one of these four things,
then that makes it better
and then it's easier to sell.
And as soon as you start implementing it
or I have at least already,
it's easier, isn't it?
(Alex laughs)
- And so that's, what's
interesting about that
is that it ends up creating
scalable enterprise, right?

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Because like, you know
how to build sales teams.
I know how to build sales teams, right?
But what really scale sales more easily
rather than having absolutely
savaged salespeople
and that's very important and good
and amazing sales training
is just giving an offer that
would be so easy to sell.
And then all of a sudden you don't have
to take nearly as much time to ramp up.
You don't have as much cost in sales
that are not closed by a new closure
when you put them on the roster,
like there's all these other
costs that are mitigated
when you have a much better offer
and people are more convicted about it
'cause they believe in
what they're selling.
- Yeah, I understand.
I've already seen that across the board.
We'll dude, everyone please get his books,
thank so much for your time, man.
I know you're just so busy today.
I thought the schedule
guys be on the lookout.
I think I'll just do doing 10 books?
- Yeah.
- He's gonna be writing books and courses.
Absolute killer read, I loved it.
That's part of why I wanted to do this.
And he had a birthday yesterday.
So spam his walls, make
sure to bother him.

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I think he's 22 or something today.
So just make sure to give
him some birthday love.
All right.
(indistinct)
(Alex laughs)
All right guys, I'm gonna
turn off the live stream
until next time.
See ya.
- See you guys, thank you.
(upbeat music)

