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"I'm Broke. How Do I Get Rich?" (1 Hour Compilation) — Transcript

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0:00First steps for for any entrepreneur.
0:03>> Yeah.
0:04>> Fitness industry, branding.
0:06>> Yeah.
0:07>> What advice would that be?
0:09>> So, one thing to one person on one
0:11channel.
0:12So, a lot of people try and get really
0:13cute and try and do lots of things, but
0:16zero to six figures, which is, you know,
0:18is really just sell something to a
0:21specific customer on one channel. When I
0:23say channel, I mean like you learn how
0:25to sell through Instagram DMs.
0:26>> Okay.
0:27>> You learn how to make YouTube videos
0:28that generates inbound leads. You learn
0:30how to run ads. You learn how to do cold
0:33calls. You learn how to do cold Like
0:34whatever acquisition that you learn how
0:35to recruit affiliates. You learn how to
0:36create a referral system. It doesn't
0:37really matter what way you do it. One
0:39method for one specific type of customer
0:42with one product. That is what gets you
0:44from zero to six figures. If you want to
0:45go from six figure to seven figures,
0:47it's doing each of those steps, {comma}
0:49consistently. Cuz what happens is most
0:50people make a sale and then they stop
0:52working.
0:52>> Yeah.
0:53>> Uh and so, it's being able to
0:54consistently do the activities that
0:56generate the sales. If you just do it
0:58consistently, then you get to seven
1:00figures. Um
1:01at that point, you usually have to look
1:03at a bigger picture in terms of the
1:04strategy of the business, which is,
1:06"Okay, how can we afford to get even
1:08more customers?" So, that's usually when
1:10you have to add in some sort of back-end
1:11products um to increase the lifetime
1:14value of each customer. And then, I
1:15won't get beyond that, but
1:17>> Appreciate it.
1:18>> then Yeah, yeah. And then at that point,
1:19you'll be able to afford to go through
1:22other channels to get more customers. Um
1:25and that'll That's just I'll cap it
1:27there. That gets you to a million a
1:28month and then we'll stop there.
1:29>> [laughter]
1:30>> So, so so so basically
1:32from
1:34from entry point here, what what would
1:35be your first step if you lost
1:37everything today?
1:38>> Yeah.
1:39>> Okay. Strip everything back down. Or
1:40you're just giving somebody that's just
1:42walked into the gym. I want to be the
1:43next Alex Hormozi.
1:44>> Yeah.
1:45>> What would be the the the very first
1:47thing that they need to to focus on
1:49other than incredible beard and calves?
1:51>> First thing I'd say is be you, not me,
1:52cuz you're not going to beat me at being
1:53me. Um but
1:56you know,
1:57one, get an LLC set up through the
1:59LegalZoom. Two, go to take the LLC to
2:02bank get them to give you a bank
2:03account. Step three, set that bank
2:06account, hook it up to Stripe or PayPal
2:08to get a way to process money. Step
2:10four, message people with the thing that
2:12you are trying to sell and ask them to
2:14hop on the phone so that you can sell
2:16them the thing. Then they will give you
2:18their credit card and then you run that
2:19card and then you will get money and
2:20then you and then you do the thing that
2:22you said you were going to do in
2:23exchange for money. That is a business.
2:24>> That is the easiest way that
2:26that and the most understandable thing
2:28I've heard from your mouth all podcast
2:29which will [laughter] be honest with
2:30you, man.
2:31Even I was on board with that.
2:34No, but again, we we have a wide variety
2:37of different people are watching you. We
2:38have a lot of young guys, you know,
2:40aspiring young, you know, hustlers. I
2:42know that, you know, you got a
2:43videographer next to me. I was I had the
2:45pleasure of talking to him before we
2:46jumped on the podcast and, you know, he
2:48obviously put himself in uncomfortable
2:50situations until he became comfy and and
2:53put himself into you know, LA until
2:56Alex Hormozi was hit up and you guys
2:58have linked, right? So, again, I love
3:00that approach to
3:03um you know, just turning your hat back
3:05to front and hustling. I I've got my own
3:06story. I came here at 20. I knew one
3:08person. I slept on a sofa. Wanted to be
3:10the best in the world. I put myself all
3:12over California until I put myself into
3:14the gym where I had my kick twice a day
3:17and I was around people um that that
3:19truly got the best version of me and
3:21then I seen the the best version of me
3:23and I realized then I could do this. So,
3:26you know, you got to get beaten down.
3:27You got to be um you know, and have a an
3:30incredible mindset to to focus forward
3:34um and learn from every mistake that has
3:36come. And for me, sitting now in the in
3:39in my shoes that I'm in now, obviously
3:40I'm not as accomplished in business as
3:42as you are.
3:43>> You're more accomplished in
3:44bodybuilding.
3:44>> Bodybuilding is a different thing.
3:46>> [laughter]
3:47>> Um
3:48but again, it's it's more more of the
3:51the circle of people I around me now
3:53with that that I'm I pick
3:55um and I learn from.
3:58Um
3:59you know, again, if it was came to
4:00bodybuilding, I've been around the best.
4:02I I I I feel like I know everything in
4:03that space. Um and there's nothing else
4:06for me to achieve in that space. But,
4:08what interests me now is the business
4:10element. Is other things that that
4:12scared the [ __ ] of me just like being
4:13half naked up on stage did.
4:15So, now I'm chasing these new goals and
4:17these new dreams and um
4:19again, I'm putting myself, as I said,
4:21another cliche, the same thing again, in
4:22in uncomfortable situations until they
4:24become comfy, just like this podcast,
4:25right? This is This is nothing I ended
4:27up, you know, wanting to aspire to to
4:30be. Kid from Wales with his accent and
4:33incredible lisp that I've had to work
4:34through.
4:35Um but again, I I get to be around and
4:38interview friends and get to hear their
4:41stories and and what the common
4:44storyline among among everybody I've had
4:46on this podcast is um
4:49nothing's been given easy. Everything
4:50has come from trials, tribulations,
4:53failures, and they're always still
4:56admittedly learning from their failures,
4:58no matter how much success they've had,
4:59no matter how great their life is, no
5:01matter what car they're driving, how how
5:03big their house is,
5:05um they're still aspiring to be better
5:07every single day. And that's when I look
5:09at you, mate. That that's something I I
5:11always gravitate and get from you is
5:14you're humble, you're driven, you you
5:17live very frivo- frivolously, you don't
5:20uh you spend
5:21on on on exotic stuff and and and front.
5:25And um you're probably one if not one of
5:27the most of if not the most accomplished
5:29person that that that walks around this
5:31gym um in business. So, from me to you,
5:35mate, I truly admire it.
5:37>> Business.
5:37>> [laughter]
5:38>> There he goes again, see? Trying to take
5:40away the compliment.
5:42Which I truly love, to be honest. I do
5:44love the humility. But but again, I
5:45think that that's one of the the traits
5:48and many traits obviously that I that I
5:49like about being around you. You You
5:51lose me in half of the conversation half
5:53the time, to [laughter] be honest with
5:54you. It'd be like me talking about
5:55bodybuilding drop sets and and this,
5:57that, and the other, but
5:59I'm there to a certain point. But again,
6:01with the viewers we have on and getting
6:03you on this podcast today, I I I truly
6:05hope that
6:06you know, a lot of these guys and girls
6:08that are watching this have taken you
6:11know, the storyline of of the success
6:13story and and not seeing it as
6:16this was given to you. This is truly
6:18earned.
6:20>> If I can just talk and first off, thank
6:22you. I appreciate it. It was very nice
6:23of you to say.
6:25If I can toss this out for the people
6:26who are, you know, younger or on the on
6:28the come up or they're not on the come
6:29up, but they want to be on the come up.
6:31Um
6:34One is that you have to figure out what
6:35problem you're trying to solve.
6:37So, a lot of people start down a career
6:39path, you know, even if it's let's say
6:41let's say it's bodybuilding, right? And
6:43they haven't actually played it out. So,
6:44my my three favorite questions to ask
6:47when we're trying to make a big
6:47strategic decision is number one, what
6:49problem we're trying to solve? Number
6:50two is let's play it out. And number
6:52three is which problem do we prefer?
6:54And so, if you figure out what problem
6:56you're trying to solve, then you are
6:57like, okay, well, then there's multiple
6:59scenarios to solve this problem. So, you
7:00play out each of them. So, if someone's
7:01like, well, I want to be a bodybuilder.
7:03Like, why? They're like, well, I want to
7:06make money. It's like, okay, that's a
7:07different problem, right? And so, like
7:09to be fair, the only way you're going to
7:10make that is if you're literally number
7:11one or top five, you know, that you'll
7:13make realish money, right? Right.
7:17On the flip side, you could probably
7:18become an influencer without even
7:19stepping on stage and make significantly
7:21more money. You know what I mean? If
7:22that's the, you know, the the goal. So,
7:23it's again, what problem are we solving?
7:25Then you play it out. You're like, okay,
7:27well,
7:28now I've now I'm number one.
7:29Now what?
7:31So, well, I wanted to like for me,
7:32playing it out was like, okay, I'm going
7:33to go to business school. Okay, then
7:35what? It's like, okay, well, then I'll
7:36get a consulting job that makes me
7:37$120,000 a year. Okay, then what? It's
7:39like, well, I guess I have to work up
7:41the ladder there and then eventually I
7:43would save enough money to start a
7:44business. I was like,
7:46"Well, what if I just did that, if
7:47that's what I want to do?"
7:49And so,
7:50those are the three questions I would
7:51ask myself. The second thing is that if
7:53you do not know the input-output
7:54equation for how you're going to be
7:55successful, you will not be successful.
7:57And so, what I mean that by that is
8:00you have to figure out what primary
8:01actions you have to take that will
8:03continue to stack up over time. So, for
8:05example, if I wanted to create a
8:07marketing agency or I wanted to sell
8:08widgets or whatever it was, like I will
8:10need to get customers. And so, either I
8:12will reach out individually to friends
8:14and family,
8:15I will reach out individually to
8:16strangers to get them to hop on the
8:18phone and buy my thing, right? I will
8:22run ads to get it, or I will post
8:25content in order to get more customers.
8:28Beyond that,
8:29I could get affiliates or I could get
8:31referrals to send me people. That's it.
8:34Those are the only ways we can get
8:34customers. If you don't know what the
8:37input system is there, where you're
8:38like, "Okay, I need to do 100 reach outs
8:40a day. I need to make five pieces of
8:42content. I need to
8:44I need to get two affiliate
8:45relationships a week. I need to Whatever
8:47the input is, if you don't know what
8:48that is, then you're never going to get
8:49there." So, you have to figure out what
8:51problem you're trying to solve, you have
8:52to play it out, and then figure out
8:53which problem you prefer, and then
8:54figure out what your input-output
8:56equation is to getting what you want.
8:57And then,
8:58you do it.
9:00And you do it as many times as you
9:01possibly can and you ignore everybody
9:03who tells you that you're wrong and
9:04tells you that you're not going to get
9:05there. And most of all, you ignore the
9:06thoughts that you were telling yourself
9:08about why you're not going to get there,
9:09because
9:10you are wrong
9:12on a long enough time horizon if you do
9:14the thing.
9:16And so, if you do that,
9:17it becomes unreasonable
9:19that you won't succeed. And so, I like
9:22to create unreasonable
9:24equations for myself, which is
9:27if I did this thing every single day for
9:3010 years
9:31and I never stopped,
9:33would it be unreasonable that I won't be
9:34a millionaire?
9:36If it's unreasonable that I won't be a
9:37millionaire I won't be a billionaire or
9:39whatever your number is,
9:40then I'm like, cool, then that's what I
9:42need to do. And so, if you haven't
9:43figured out your input-output equation,
9:44which is what I need to do to get the
9:46thing, then it is the first problem you
9:48have to solve. Once you do that, the
9:50rest of it is wake up early, spend the
9:52first 6 hours of your day making your
9:53content, doing your reach-outs,
9:55recruiting affiliates, blah blah blah,
9:56whatever thing it is,
9:58and then don't let anyone stop you.
9:59And that also means saying no to things
10:01that you probably want to do right now.
10:02Because the people who are further ahead
10:03of you have no more time than you do,
10:05they do things differently than you. And
10:06if you fill your time right now,
10:08every day, which you probably do cuz
10:09you're alive, you do things during the
10:11day,
10:13then it's not about adding more to your
10:14plate, it's about removing the things on
10:15your plate right now that you're
10:16>> Maybe the framing is like a lot of
10:17people who are wanting to make more
10:19money just don't know what the avenues
10:21are.
10:21>> Yeah. So,
10:23a lot of people who want to make money
10:25don't understand how money is made.
10:27And so, it's made by getting it from
10:30someone else. And they have to give it
10:32to you voluntarily or it's theft.
10:34And so, assuming you don't want to
10:36steal, then you have to give something
10:38to someone else first.
10:40And then by doing that, they give you
10:42money in exchange, which is why I love
10:44capitalism. It's a voluntary exchange
10:46between two parties. And both parties
10:48say thank you at the end because both
10:50parties think they're better off from
10:51the trade.
10:53And so, the idea is what you want to be
10:54able to do is find something valuable to
10:56trade.
10:58And so, you can either trade stuff, you
11:00can find a place where you can get stuff
11:03and then bring it to other people where
11:05it's convenient for them, so they pay
11:06you more than you did when you had to go
11:08find it in some back alley, cuz, you
11:10know, suburban mom doesn't want to go in
11:12a back alley to get X, Y, and Z, but
11:14you'll give it to her. Man, it sounds
11:15like I'm explaining drugs, but
11:17>> [laughter]
11:19>> Well, there's a reason they make money.
11:20But anyways,
11:21point is is that you can sell stuff
11:23at a mar- at a margin, and a part of
11:25that margin's going to be the
11:26convenience that you deliver them. And
11:28either you're selling stuff that someone
11:29else manufactures or you create your own
11:30stuff. Now, if you're starting out,
11:31you're probably going to sell someone
11:32else's stuff. And I do think and I I
11:34mean, I'm saying this right now,
11:37I do love
11:39the concept that the first thing you
11:40sell is not the last thing you're going
11:42to sell.
11:43And so, learning to sell in and of
11:44itself, the best way to learn to sell is
11:45sell something.
11:47And that's why referral referral
11:50programs, ambassador programs, affiliate
11:52programs for different types of
11:53businesses, almost every business I've
11:55ever owned has an affiliate program. Um
11:57it's great to enroll in those. I'm not
11:59even going to say any names of the
12:00companies that that we have because I
12:01want you like it's not about that. I
12:03want you to
12:04if you can just cuz then you you only
12:06have to figure out one skill. Like if I
12:07just sell someone, if I just promote, I
12:09get paid. Cool. Then I can just do it
12:11over and over again. Now, over time,
12:12you're like, man, I want to make more of
12:14the nut. Cool. Then you just you eat up
12:16more of the responsibility.
12:18So,
12:19you can either sell stuff
12:21or you can sell skills. You can scale
12:24sell outcomes. And so, that's where you
12:26develop a certain expertise. So, like in
12:28the beginning for me and like the first
12:29times ever like the first money I ever
12:32made from a stranger was that I had a
12:34lady at the gym. It's a real story. I
12:37was in really good shape.
12:39I like to think so. And she said, will
12:41you meet me
12:42uh and do a nutrition consultation for
12:44me? And she didn't even say that. She
12:46said, will you help me with my food? I
12:47think that's what she said. And I said,
12:48sure.
12:49Um and so, we met at a at a pizza place,
12:52ironically.
12:53No, this was after college. This is
12:55after I graduated from college um when I
12:56was still a consultant.
12:58So, I I went We met at a pizza place.
13:00And I was like, okay, well, what are you
13:03currently eating? And she was like,
13:05this. And I was like, well, what do you
13:06want to do? She's like, I'm trying to
13:07lose weight. And I was like, well,
13:09this is something I eat for breakfast.
13:10It's less calories than your thing. It's
13:11pretty good. And try this and try this
13:13and try this. And it took like an hour.
13:14And then um
13:16I like a notepad and I gave her the the
13:18notes or whatever. And she took out her
13:19purse.
13:20And she wrote $200 on a check. And she
13:22handed it to me. She was like, thanks so
13:23much.
13:24And I I like,
13:29looked at her just like looking at the
13:30check, looking at her, looking at the
13:31check, looking at her. And I was like,
13:32"Okay, don't act surprised." And I was
13:33like, "Uh thanks."
13:35And then she left. And I was like, "Holy
13:37shit."
13:38I was like, "I just got paid for But
13:40like realistically, I'd been in At this
13:41point, I'm just competing. So, I'm
13:43winning I'm Like I had a state record at
13:44that point. Like I was in I was in
13:45shape. You know what I mean?" Um
13:48And I think she knew I was a state
13:49record holder cuz the gym that I was was
13:50a powerlifting gym. Um
13:52but I had done some stuff. I had gotten
13:55some level of authority on some tiny
13:57thing. And people were like, "Oh,
14:00can you help me with that, too?" And to
14:02be really honest with you, my entire
14:03life And I'm saying like there's a many
14:05paths, but like my life has been
14:08learn something, get good at it, have
14:10evidence that you were good at the
14:11thing, and then people ask you for help
14:13on that thing. And so in the beginning,
14:15people ask me how to get in shape. And
14:16then I started a business around getting
14:17people in shape. And then people who had
14:19businesses around getting people in
14:20shape asked me how I was getting my
14:22businesses that were getting people in
14:23shape to work. And then people who had
14:25businesses that were national scale that
14:27helped people in a specific niche or
14:28industry started asking me how I was
14:30helping people in a specific niche or
14:31industry. And then people who had really
14:33big businesses just started asking me,
14:34"How did you get a really big business?"
14:35And so like my entire life's been simply
14:38doing as hard as I [ __ ] could to get
14:40good at something and then do it enough
14:42times. And to be really like very clear
14:44with you, every time I did it, it was
14:46not to move on to the next step. It was
14:48to just get good at the thing. And then
14:50by getting good at the thing, people ask
14:52me about it. And so it wasn't like I
14:54lost 10 lb and then try to start selling
14:56uh you know, weight loss advice. I had
14:58multiple state records. And I like
15:02I looked good. You know what I mean?
15:03Like I was in very good shape. And then
15:06people started asking me about it. And
15:07then
15:08I didn't have one gym and start telling
15:10people, "Hey, here's how you run a gym."
15:11I had six gyms by the time I was 26. And
15:14then people were like, "Okay, you're 26
15:16and you have six gyms and you did it off
15:17cash flow. Like you're doing something
15:18right."
15:19And then people started asking me about
15:21the stuff. And then and then when I had
15:23the licensing visit doing 4 million a
15:25month, people who had other bigger
15:27businesses or doing a million a month or
15:28500,000 were like, how do you get to 4
15:30million a month? And I was like, well,
15:31this is what I did.
15:32And so like I've just tried to figure it
15:34out. And it's it's like the path has
15:37always been revealed as I took more
15:38steps. And so
15:40I think a big fallacy in the early on
15:41days is trying to think that you're
15:42going to figure out the entire path
15:43before you even take the first step.
15:45It's just not true.
15:47>> When you think about curtains that have
15:48lifted, that have really shifted the
15:51games you play from a value money
15:53perspective.
15:53>> Mhm.
15:54>> Like where someone's turned the lights
15:55on you go, [ __ ] of course.
15:56>> Yeah.
15:57>> Is there anything else that comes to
15:58mind?
16:00Like big macro games that
16:02>> Yeah.
16:03>> Um
16:04I think a big you know, when I the big
16:08I will answer it with the stair steps of
16:10how each order of magnitude changed my
16:12income.
16:13So, when I went from being an employee
16:15to self-employed, I went from making
16:17four figures a month to five figures a
16:19month.
16:20And that was for me just like, I'm now
16:22in control.
16:23The level above that was I started
16:24having other people who worked for me. I
16:26didn't even know that was possible.
16:27Sounds crazy. But like I was like, you
16:28can hire people? Cuz my my members of my
16:30gym were like, you know, other people
16:32can work here. I'm like cleaning the
16:33floor and doing the marketing and
16:35teaching the class. They're like I was
16:36like, didn't think about that. Good
16:37call.
16:37>> bottleneck.
16:38>> Right. And then once it's six figures a
16:39month, right? And then from there
16:42stayed there, did the turnaround
16:44business, still had the same
16:45organizational structure, had another
16:46degree of leverage. And so
16:48the next degree of leverage was that I
16:50was started licensing. So it's digital,
16:51right? So the cost for you know, cost of
16:52goods is basically nothing. And then
16:54that's when things started skyrocketing.
16:56And that got me to seven figures a
16:57month. And then eight figures a month
16:59was using leverage through capital.
17:01Which is where you know, we're at now.
17:03And I would imagine that nine figures a
17:04month will probably be some level of
17:06technology or more
17:09uh media on my side. But all of these
17:11things are about leverage. And so this
17:13is like one of my favorite topics in the
17:14whole world. But if we define leverage
17:16as the difference between what you put
17:17in and what you get out. So, if you have
17:19a lot of leverage, you put a little bit
17:20in, you get a lot out. If you have no
17:21leverage or low leverage, you put a lot
17:23in, you get a little bit out. And a lot
17:24of times, people who are listening to
17:25this and are not making as much money as
17:26they want if they're putting lots of
17:27input in and not getting a lot out. They
17:29have low leverage opportunities. And so,
17:32understanding how to get more for what
17:34you put in is the game
17:37overall. And so, the first level that I
17:39described was labor. It's just work.
17:42First, I was working for someone else,
17:43then I worked for myself, then I got
17:44other people to work for me. First level
17:45in each of those levels was more
17:47leverage. Above that, I had media, which
17:49is the thing that I was licensing out.
17:51So, another degree of leverage. I made
17:53it once, and I could license it out
17:54infinity. On top of that, I have
17:56capital. I can take capital, I don't
17:57have to sacrifice time in order to get
18:00something for it. So, it's high
18:01input-output.
18:02Um above that would be some sort of
18:04technology. You build the code once, in
18:06theory, obviously. You continue to
18:07improve the code, but theoretically, you
18:09build the thing once, and then a million
18:10people can use it. And so, you want to
18:13stack as many types of leverage as you
18:15can, and as much of them as you can,
18:16because like Joe Rogan also has a show,
18:18and somebody else has a podcast.
18:21They both technically are using media as
18:22their as their as their vehicle for
18:24leverage, but he has significantly more
18:25of it. So, it's not just like, "I'm
18:27going to use all these." Right? Yes, but
18:30it's also how much and to what degree.
18:31But like, Facebook had other people's
18:33money, he used media, had other people's
18:35work, max leverage. Amazon, same thing,
18:37right? They used every element of
18:39leverage, and they maxed all of them
18:40out. And um
18:42that's that's at least the the curtain
18:44that Naval talks about this if you're
18:46familiar with Naval Ravikant. Um
18:48he talks about these things as the as
18:49the the the elements of leverage, or
18:52four types of leverage. Um and
18:54understanding that for me has kind of
18:56been a blueprint for wealth overall. And
18:58then, you know, capital, there's degrees
19:00of capital, right? Like, you first you
19:02can get friends and family to give you
19:03money. Then, you can get, you know,
19:05institutional money, and then you can
19:06get public money,
19:08right? Which, you know, you saw like the
19:09IPO money, like the fact that the Nasdaq
19:11was 4x uh the Dusseldorf exchange, is
19:14that where I was? Right?
19:15Um
19:16there's just significantly more capital
19:18in that market. And so, it same work,
19:20more zeros.
19:21Um and so,
19:23I love this topic because I think that
19:25that's fundamentally like the people who
19:26move faster in life don't
19:28>> What's up, Alex?
19:29>> What's up?
19:29>> Um I'm I'm Andrew. I sell uh dental
19:32services to people in Florida.
19:35Um we do about 25 million a year in
19:37revenue. I want to be at about 50
19:39million.
19:39>> How many offices?
19:40>> Uh 10. We're going to 12.
19:42Um what's stopping me mainly is talent
19:45acquisition and uh access to capital.
19:48>> Um
19:50are you doing this all inorganic, so
19:52M&A?
19:53>> Uh they're all de denovos. So, we're
19:55>> Oh, they're all denovo. Okay.
19:56>> uh second-gen spaces. So, we're
19:58basically finding these old dental
20:00offices, signing a lease, we put some
20:02equipment in.
20:03>> Yeah, no, I love it. Okay. So, basically
20:05[clears throat]
20:05you So, what's uh what's EBITDA right
20:08now with the 25?
20:09>> Uh we're We're at about 21%, so
20:11>> Okay, so you got five-ish, whatever, or
20:13four and change. Um or five, yeah. So,
20:16you just need to get more dentists out.
20:18Oops.
20:18Um more uh dentists to staff your denovo
20:23facilities.
20:24>> Right. Which which has been easy for us
20:26so Like, I have a dental podcast, we've
20:27gotten a lot of dentists from that. My
20:29partner's very involved in dental
20:30community, so like that's brought a lot
20:32of traffic our way, but the bigger we
20:33get, the faster we scale, the harder it
20:35is to find those dentists, to find sales
20:37people, to find leadership positions. Uh
20:40so, we're kind of running into a lot of
20:41those issues right now. Yeah.
20:44>> That sounds about right. Uh
20:49>> Any
20:49>> it's harder to open, you know, one a
20:51quarter than it is to open one a year.
20:52I'm like, I agree with you.
20:53>> Right.
20:53>> Um
20:54>> Yeah.
20:55>> Yeah, so I think um
20:58>> [snorts]
21:00>> you're just understaffed. So, you Do you
21:02have capital to do these cuz you said
21:04capital was part of an issue?
21:05>> Yeah, so we we like bootstrapped the
21:06last couple offices. We're trying not to
21:08bootstrap the next couple, but the our
21:10bank basically like put a pause on
21:12funding. They were like we need to take
21:14a breath, we need to take a step back,
21:15we need tax returns, we need this, we
21:17need a you know, beefed-up business
21:19plan. So, we've kind of done all those
21:21things and they're still kind of making
21:22us jump through some hoops. So, we're
21:23right now like I'm keeping cash on hand
21:26cuz I don't know if they're going to
21:27fund our next couple practices that
21:28we've got in
21:29>> How much does it cost to open a
21:30practice?
21:31>> Uh it's about 250 to 300 with the
21:32second-gen spaces. It's It's not bad.
21:34>> So, then why is that the limiter?
21:36>> What? Why is it a limiting factor?
21:37>> Is that I mean, if you're doing 5
21:38million a year like
21:39>> yeah, we're we're trying to open about
21:41five to six a year is kind of the goal
21:42right now.
21:43>> You can more than cash flow that though
21:45with like 20 or 30% of your cash
21:47reserves.
21:47>> We could. You're right. Like we we we
21:49would just have to cut back
21:50distributions. We we could totally do
21:51that or
21:52>> Okay.
21:53>> Yeah. Right. Yeah.
21:54>> [laughter]
21:55>> Like I just wouldn't be able to get the
21:56yacht I also want this year, but
21:58>> exactly.
21:59>> Yeah. That was That was hilarious. Okay.
22:02[laughter]
22:03So, the business is fine. You're just
22:05taking massive cuts.
22:07>> [laughter]
22:07>> I guess, yeah.
22:08>> Yeah. So, you're like I want to grow
22:09faster.
22:09>> though. It It feels less risky to use
22:11someone else's money than to use my own
22:13money.
22:13>> Well, it's not I don't think it's less
22:14risky
22:15>> Yeah, it just feels that way to me.
22:17>> Yeah, no. I don't think it's less risky
22:18cuz they can take your [ __ ]
22:19>> Right.
22:20>> So,
22:20>> Yeah.
22:21>> Um
22:22So, there's that.
22:24Um So, uh so this is a this is a
22:27a good a good point though, which is um
22:30we trade
22:32uh profitability for growth.
22:34>> Yeah.
22:35>> And so, if you So, I'll make this point,
22:37which is that you actually have a model
22:39that is repeatable and what you're
22:40looking at is return on invested
22:41capital, ROIC, right? And so, if you
22:43know that you can do $250,000 in and
22:46let's say it costs you $100,000 to
22:47recruit the team, 350 in, um and that
22:50facility is going to make you said you
22:52have uh 10 open, so 2 and 1/2 million
22:54top line and then you said you had 5
22:55million bottom line, so 500k
22:57uh in profit on $350,000 invested. How
23:00How does it take to get to 500K in
23:01profit?
23:02>> [snorts]
23:03>> Uh our offices are usually doing about
23:051.5 their first year. Now, margins are
23:07usually lower in the first year, though.
23:09>> Okay. So, let's say it takes 18 months
23:10for you to
23:11>> Yeah, that's fair. That's fair.
23:11>> You're 12-month payback, 18 months and
23:13you're you're for sure good. Okay.
23:15So,
23:16anyways, back to the point, which is
23:20the trick I mean, that's the trade you
23:21make. I mean, when you take out profit
23:23today,
23:24you trade risk for security.
23:28And you also trade upside.
23:30>> Right.
23:30>> Yeah. So, I think that one's pretty much
23:32solved from our conversation.
23:35>> Yep.
23:35>> Right. I think that's
23:36>> Yeah, no. Yeah, you're right.
23:37>> You have the cash to do with 20, 25% of
23:39your profits.
23:40>> Yeah.
23:40>> Um then we have the talent side.
23:43And that's also the same equation.
23:46Which is that you probably are doing a
23:47cheaper way to recruit talent, and you
23:49can spend more to go faster.
23:51>> Is it time to have a hiring manager like
23:53one person dedicated to talent
23:54acquisition within the organization?
23:57>> Uh how many roles do you need to hire a
23:58year if you're trying if you're bringing
23:59six offices, then it means you got six
24:01docs, which is one doc every 2 months,
24:03plus
24:05uh what, like four or five staff?
24:07>> Yeah, and then then as we grow, more
24:09leadership. Like right now, we're trying
24:10to hire a regional manager.
24:11>> Yeah.
24:12>> We're we're struggling. I think inside
24:13the I think we're mainly getting
24:15>> You're looking at one hire every 2
24:16weeks.
24:17>> Yeah.
24:17>> Functionally.
24:17>> Basically.
24:18>> It's time to have somebody do that.
24:19>> Okay.
24:20Other methods outside of Indeed, like
24:23>> I mean, I'm a big fan of head hunters.
24:25>> like that.
24:25>> I'm a big fan of head hunters. Now, that
24:26being said,
24:28um I'll delineate this. If I have a
24:29specialized one-time role, head hunters
24:31all the way. They already have networks
24:32of that. I don't want to rebuild that.
24:34If I'm doing a repeated role that is
24:36core to my business, so let's say I'm a
24:37a media company and I need editors, I
24:39want to have a very well-defined process
24:41of uh recruiting, hiring, onboarding,
24:43training editors. If I have my
24:44sales-driven company, then I want to
24:46have a really good process of
24:46recruiting, hiring, training, onboarding
24:48sales people. I don't want to outsource
24:49that cuz it's core to the economic
24:50engine that I have.
24:51>> Makes sense.
24:51>> I think for you, dentist is core to the
24:53economic engine. Front desk people is
24:55probably core to the economic engine.
24:56That being said, you probably are only
24:57having issues with the dentist. I doubt
24:59you're having issues with the rest of
25:00the staff.
25:02>> Mainly dentist and sales people or
25:04treatment coordinators are like the main
25:05ones.
25:05>> Yeah, you're your PCC, the patient care
25:07coordinator, etc. etc. Yeah. So, um
25:10yeah, those two roles are going to be
25:11things that would probably make sense to
25:12have a specialized person who focuses on
25:14that. Um I look I mean, my favorite way
25:17to do this is just go find a firm that
25:19does it. Go go in the LinkedIn and go
25:21one level lower to person who's actually
25:23doing it and say, "Hey, want to do that
25:24thing just for me instead of 10 other
25:25people." Okay. And I'll do it and I'll
25:27pay you better and treat you better.
25:28>> Awesome.
25:29>> Invest, then spend the rest.
25:32So, the idea is that you invest first
25:35and then spend what's left over. And so,
25:37an interesting thing is that Switzerland
25:38has the highest per capita millionaires
25:40in the world without having the highest
25:42GDP or even GDP per capita. And so, how
25:45are they able to do that? That means
25:47that they have different rules around
25:48money, which is what this video is
25:50about. And so, if we adopt those rules,
25:52we can get those outcomes. Which means
25:54these are just decisions that we get to
25:56make. And the easiest way to do that is
25:58you take what you need off the top and
26:00then you spend the rest on what you
26:02want. And so, it comes down to saying
26:04that you need your future, you need your
26:07future self to be bigger than your
26:08current self today. And so, you invest
26:11first and then you spend the rest.
26:14And so, the way that I like to think
26:16about this is point 16. This is how we
26:18operationalize this, which is automate
26:20investing and then create friction
26:22around spending. And so, you want to
26:25take the money off before you see it. If
26:27your job, for example, has a way that
26:29they can automatically skim off your
26:30paycheck and put it into some sort of
26:31investment stuff, do it. If they don't
26:33have that, have one of these apps that
26:36does segmentation or has multiple bank
26:39accounts that you can say, "This
26:40automatically goes here. This
26:41automatically goes here and I don't
26:43touch this." And if you want to get real
26:45crazy, the advanced version of this is
26:47that as you make more money, you keep
26:50what you're living the spend the rest
26:53part, instead of making it a percentage,
26:55make it a fixed amount. And then as you
26:57make more, you're just investing more
26:59and more and more into the future. Now
27:01you're like, "Well, how do I invest in
27:02the future if I'm just starting out?"
27:04The future is you.
27:06But you're making sure that when you're
27:07investing that money, you know whether
27:08you're buying declarative knowledge or
27:10you're buying procedural knowledge.
27:11You're learning about stuff that you
27:13need to learn or you're learning how to
27:14do it. And the longer you do this, the
27:17easier it gets.
27:18For the record, I have zero
27:20Lamborghinis, zero Rolexes, zero jets.
27:24While also being able to buy multiple of
27:27these every single month.
27:29And so, the idea is
27:32you start to become addicted to getting
27:34good.
27:36And once you get that first little
27:37reward of seeing an investment that you
27:39made in yourself start paying off, you
27:41see your income go up, you start making
27:43more money, you're like, "Oh my god,
27:45this game is awesome." And so that flow
27:47of investment that comes to you
27:50is one of the
27:51best games that you want to win for
27:53yourself. You want to just keep seeing
27:54keep making cash flow PRs. Keep making
27:57that investment account PR and hit
27:59records in that account. And if you get
28:01addicted to that game, if you can just
28:03do that from everything in this video,
28:05you've already won. And so you want to
28:06automate deposits
28:09and manualize withdrawals. So everything
28:11that is automatic in terms like your
28:14rent, you want to write it as a check.
28:16If you or drop it off as cash. If you
28:19have payments that you make like a car
28:21payment, as much as you like, "Wait,
28:22this is going to cost time." The value
28:24that you get back for knowing exactly
28:26where you spend your money is going to
28:28make you more money than the 1 hour a
28:30month that you have to pay your bills.
28:32That is a promise.
28:34And so that may also mean if you make it
28:37difficult to buy, well then maybe you
28:39delete some of the apps in your phone.
28:41Maybe you don't save your credit cards
28:43on the sites that you tend to spend
28:44money on. You want to make it as hard as
28:46you can to spend money and make it as
28:49easy as possible.
28:50>> What would you say are the three main
28:52skills, if you could only learn three,
28:54to reach your first million?
28:55What would those be?
28:57>> Well, to reach I mean, to reach the
28:58first million is you just have to sell
28:59something to someone.
29:01So, it's just sales.
29:02>> Sales?
29:02>> It's just sales. You can just make a
29:04million just doing sales. Like, you
29:05don't even have to sell your own
29:06products. You can just do a million
29:07dollars just selling.
29:07>> Right.
29:08>> And in order to make more in sales, you
29:10sell stuff that's more expensive. That's
29:11it.
29:13What is the like, learn how to sell and
29:15then find the most expensive thing you
29:17possibly can to sell. And then sell
29:18that.
29:19>> Okay, that's it.
29:19>> That's it. And I will tell this to
29:21everybody who's like not sure,
29:23the more expensive it is, the easier to
29:24sell.
29:25>> Really? Why is that?
29:26>> Cuz you're dealing with better people.
29:27Like, you probably had a consulting
29:29client that pays you 50 grand and is
29:30like, "Oh yeah, by the way, I sent the
29:31wire yesterday."
29:32>> Yeah.
29:32>> Whereas the $50 person is like, "Well,
29:33what exactly am I going to be getting
29:35with this program?" You know what I
29:37mean? It's just It's a different person,
29:38you know what I mean? You're dealing
29:39with a different avatar. And from an
29:41actual selling perspective, almost every
29:43sale is the same regardless. So, you
29:44might as well just do the sales that
29:45you're getting paid $5,000 for rather
29:47than sales you're getting $20 for.
29:49>> Right.
29:49>> Like, I learned and the one thing that I
29:51will say is that if you're starting out
29:53with the intention to develop the the
29:55skill of sales,
29:57sell in the highest volume environment
29:59possible.
30:00That's why a lot of I think some of the
30:01best sales people are fitness people
30:03because so many people every You know,
30:05you work at a LA Fitness, you get 25
30:07memberships a day that you're you're I
30:09mean, you're sitting on 25 consults a
30:10day. And I did that for five years, you
30:12know, four years. Every day I had
30:1420-plus consults every I wasn't at LA
30:16Fitness at my own gym, but like
30:17So, like you get you there's just so
30:19much unconscious confidence that you
30:21develop at that point. Like, in those
30:23those the time and the money like those
30:25things become so ingrained in how you
30:27Yeah, and your language patterns that
30:30um and it and it gives you power in all
30:32all different areas of your life.
30:33So, sales is number one. You might want
30:36to develop the skill in a high volume
30:37environment, but understand that that's
30:38not You might make some money doing
30:40that, but the goal will then be to sell
30:44massive buildings, sell super expensive
30:46cars, sell yachts, sell jets, sell You
30:49know what I mean? Like, sell huge
30:50software packages to enterprise
30:52software. Like, all of these are roles
30:54that you can make $400, a million
30:56dollars a year doing. So, that's That's
30:58where you you know, you want if you And
30:59that's a million income, not even gross.
31:01That's a million income. Um but, if you
31:03just want to like make a million
31:05dollars, just reverse out a million
31:07dollars and just do it looking at daily.
31:09So, it's you know, 3,300 a day,
31:10whatever, roughly. Um and so, at that
31:13point it's like, "Okay, well, I can sell
31:15three $1,500 things, you know, and I'll
31:17be over it." And I can sell one $5,000
31:20thing.
31:21I can sell You know what I mean? And or
31:22you could sell 30 $300 things. And it's
31:25just which of those sounds easier?
31:26They're different, you know? And I will
31:27say that I have this desire maybe in the
31:30future to like look at some sort of
31:31entrepreneurial personality type where
31:33like I do believe that businesses are an
31:35extension of the entrepreneur in terms
31:36of like their personality, their
31:37footprint is on it based on just how it
31:39works. And so, like I've met guys who do
31:41super high volume, really low ticket
31:43transaction. Um and they they're a
31:46little different than the guys who sell
31:48ultra high ticket like service-based
31:50stuff. And so, it's And so, I think And
31:53I've seen people really successful on
31:54both sides. Um but, I do think that the
31:56more expensive the ticket in general
31:58that the less operational complexity
31:59there is. You still have to take If
32:01you're going to take 10 sales calls, you
32:02might might as well make them worth all
32:04Exactly. Take them all. Exactly. Right.
32:15If you like this video and you're a
32:16business owner who wants to break
32:17through your current revenue ceiling, I
32:18distilled every lesson from scaling 10
32:20businesses past 10 million and three
32:21businesses past 100 million into a
32:23completely free scaling road map that
32:25I've used to go from zero to one, zero
32:26to 10, and zero to 100 plus. And so, you
32:29can click here and you can check it out.
32:30Again, absolutely free. And since you're
32:32a business owner, I appreciate you and
32:34uh enjoy.
32:34>> Most people are stuck thinking about
32:36like a 3, 5%, whatever raise. You talk
32:38about scaling income like it's a skill.
32:41What do you think is a
32:4230,000-ft overview of a road map for
32:44someone to go from 50k to 500k, for
32:48example.
32:49>> Uh within a job or within
32:51>> Yeah, I'll I'll do within a job cuz I
32:53think otherwise it's
32:54create a company, dot dot dot, the sky's
32:56the limit.
32:57>> Right.
32:57>> Um
32:58Let's do the hard version, which is
32:59inside a career.
33:00>> Yeah. So, um you would have to be likely
33:03at a company that had like you're not
33:05going to make $500,000 a year in a
33:07business that makes $500,000 a year.
33:08>> Right. Yeah.
33:09>> Right. So, it has to be a business that
33:10could Well, yeah. And
33:12And the thing is is a lot of people
33:13don't know this, that there's plenty of
33:14businesses that exist that make $100
33:15million, $200 million, $500 million a
33:17year that aren't on the S&P 500. And
33:19they do very well, and some of them are
33:20family-owned manufacturing businesses.
33:21Like it's There's plenty of
33:23significantly larger businesses than
33:24people expect. Um so, number one is I'd
33:26go to kind of a If you wanted to make
33:28$500,000 a year, you'd probably be
33:30needing to look to work at a company
33:31that does minimum
33:33call it 10 million a year. Probably
33:35maybe 20 plus uh to get that kind of
33:37level compensation unless you're a CEO.
33:39Um Now, beyond that, you basically want
33:41to tie yourself to the closest
33:43Basically, as as close to revenue as
33:44humanly possible. And typically, you
33:47want to take on as much risk as humanly
33:48possible. So, this is where you
33:50basically become an internal
33:51entrepreneur. And so, what are the What
33:53are the factors of entrepreneurship is
33:54like you are taking more risk. And so,
33:56um most companies, most people uh who
33:58are at least good business people, so
33:59the caveat there. Um If you said, "Hey,
34:01if I could bring an extra $5 million
34:03into the business, would you be willing
34:04to give me 10% of that?" And if it's an
34:07extra $5 million, then most people would
34:08say, "Yeah, I they would." And so, it's
34:10always going to be a discount on the
34:12amount of money you can make somebody
34:13else is what you're ultimately going to
34:14make, which also works the exact same
34:15way as an entrepreneur, right? Like
34:17fundamentally, if if you're B2B, then
34:18you're going to be trying to make a
34:19business make more money in some way,
34:20and they're going to pay you some
34:22smaller percentage of that. And if you
34:23do that for many businesses, you make a
34:24lot of money, right? On the on the
34:26business-consumer side, uh well, this is
34:28all business. I'll just keep it there.
34:29So, even within a business, you're still
34:30basically a service provider to the
34:32business itself. And so, you just want
34:33to kind of think of yourself more as a
34:34vendor than as an employee. And thinking
34:37like, okay, in what way And this is this
34:39is a wonderful exercise, by the way,
34:40which is And for the business owners
34:42listening, it's also good. Um
34:44can you clearly explain how what you do
34:48makes the company money?
34:50Sounds like a very simple thing to do,
34:51but if you go around and ask your
34:52customer service rep, "How do you make
34:53us money?"
34:55Now, they
34:56your finance person, "How do you make us
34:57money?" Your law, "How do you make us
34:59money?" Right? I actually walk around.
35:01And the thing is is the people who
35:02understand business will very clearly be
35:03able to explain how each of those roles.
35:05Now, sales is an obvious one, okay,
35:06well, if I don't sell, we don't make
35:07money, sure. But, like, many of these
35:09things are second or third order uh you
35:10know, consequences away from the primary
35:12revenue generation. And so,
35:15if you can even articulate that and say,
35:16"Hey, uh I'm in customer success and our
35:19churn is
35:2010% [snorts]
35:20and I want to lead this project that I
35:22think can cut us from 10% to 5%. If I
35:24get us to 5%, will you bump me to here?"
35:26Right? And so, all of that though is
35:27based on performance. And so, you want
35:29to get into a situation where you could
35:30say, "Hey, I believe I can generate this
35:32much value. I would like to be, you
35:33know,
35:34uh paid a small percentage of that. Are
35:37you open to it?" Now, if you're in a
35:38business where they're not willing to do
35:40that, then that's where I would say,
35:41"Okay, well, then there is very real to
35:43have capped upside, for sure." Like,
35:44there are there are for sure
35:45[clears throat] business owners who say,
35:46"No." And in that case, move. Leave. I
35:49mean, I think it's a dumb move from a
35:50business owner perspective. Now, there's
35:51also going to be that "Well, I think I
35:53can do this." Okay, well, what resources
35:54are you asking me to to to to put into
35:56it? How much money do I have to put in?
35:57How much time?
35:59So, the the more of that outcome you can
36:01own in terms of uh money and time, then
36:04the more of the upside you'll be able to
36:05>> Um go and eat your money, Alex Hormozi.
36:08Web 3 SaaS guy. I don't think you can
36:10eat money. I think it's a bit gross.
36:13It's so funny when people have like
36:14weird views around money, because it
36:16actually just shows who they are.
36:19Because if someone has an issue with
36:21someone making a lot of money,
36:23it's like it's like trying to decry a
36:25thing that you want It's like, "I don't
36:27want to get I'm going to make fun of
36:28somebody who's in shape. It's like,
36:30here's a great way to never get in
36:32shape.
36:33And then on top of that, it's the
36:34assumption that somebody like money's
36:36just potential, right? Like whatever you
36:38do with it is a dictation of whatever
36:40you're going to amplify. So, do you give
36:41more back? Right? Do you help more
36:44people? Uh
36:46I don't know.
36:47So,
36:48they they they build they build uh they
36:50build skyscrapers and hospitals just as
36:52much as they they fuel uh bad movements.
36:56It's just potential. That's all it is.
36:59So, thanks for that Web3 SAS guy. Uh
37:03So, uh appreciate appreciate you, bro.
37:05>> Anyhow, so I run a nonprofit. We're
37:07focused on closing the gap on care cost
37:08and coverage for hardworking Americans.
37:10And that's by providing better benefits
37:13to the companies that are employing said
37:14people.
37:16>> How do you make money?
37:17>> We get paid based on the savings we
37:18generate for clients.
37:20>> Cool.
37:21>> Yep.
37:21>> So, it's not a like endless charity
37:23fundraiser. You actually [clears throat]
37:24provide value.
37:25>> No, 100%. So, uh I used to work for a
37:27good old Uncle Warren at at Berkshire
37:28Hathaway. And so,
37:31one of the things that I found and he
37:33said it himself as to Charlie Munger,
37:35the the insurance with health insurance
37:36industry is the most broken model in
37:37America.
37:39And so, it ends it's sad, but brokers
37:42and insurance companies get paid more
37:43money to convince their clients to
37:44continue to overpay cuz they're taking a
37:465% commission.
37:48And so, instead we say, "Hey, we're
37:49going to take about a 20% cut on all the
37:51savings we generate for you." And that's
37:52how our comp is done. Uh so,
37:54>> Do you sell to consumers?
37:56>> No, we sell to businesses.
37:58>> Okay. So, you sell
37:58>> Yeah, we sell to consumers, but yeah,
37:59our focus is 50 plus to
38:01>> Okay. So, acquisition.com, right? We're
38:03we're about that size, right? So, what's
38:05So, you pitch me, right?
38:07>> Yep.
38:07And so, I don't
38:09The the primary pitch that I've been
38:11doing right now and with some help from
38:12your team I've already tried to workshop
38:14that a bit, but the original pitch is
38:15we're going to help you attract and
38:16retain talent and increase
38:17profitability.
38:18>> Okay.
38:18>> And I can simply tell them just based on
38:19like if if you tell me how many
38:21employees do you guys have at
38:22Acquisition Point
38:23>> What do you pay them?
38:24>> Well, yeah, but
38:25>> Sure, let's just say it's 100. Just
38:26round it out.
38:26>> 100. So, I can tell you like right off
38:27the bat, I'm going to save you about
38:29200,000. Or it's about 2,000 per
38:31employee. That's on the low side.
38:32>> Okay.
38:33>> But that sounds like a scam. Truthfully,
38:34that sounds like a scam. Like, how the
38:35hell am I going to save you $200,000?
38:37Which most people just like immediately
38:39run away.
38:40And so like, that's pretty much the
38:42biggest issue we run into right now.
38:44>> Just say
38:44>> Is it sounds too good to be true because
38:47we're truly using US tax codes.
38:49>> Yeah.
38:50>> So like, we can only help US companies.
38:51We use US tax codes to get better health
38:53care benefits.
38:54>> Yeah.
38:54>> And so you start with the business
38:56owners.
38:57>> Uh-huh.
38:57>> The business owners, of course, want the
38:58profit cuz they have equity in it.
39:00Business owners don't want to do
39:01anything HR related.
39:03>> Can I give you a different angle for the
39:04pitch?
39:04>> Please.
39:05>> Yeah, so I would say cuz like you need a
39:07more believable reason and I think the
39:08absolute amount like I'm still I'm not
39:10totally sold on that first part, but
39:12I'll just put a pin in it.
39:14Um
39:14if you took the perspective of like,
39:16"Hey, we'll save you 15% on whatever
39:19your number is and the reason we can do
39:20that is because we are a nonprofit. So,
39:22we take the profit that most businesses
39:25like Here's the industry average profit
39:27margins for a business in my space is
39:2920%. We take that 20% and make it zero.
39:31And that zero goes to you. That's how
39:33our business works." That's me makes a
39:34lot of sense.
39:35>> Yeah.
39:36>> Okay.
39:36>> That's how I would pitch it.
39:37>> I already like that.
39:39Um so
39:40So, that's that's one thing that I
39:42really like.
39:43>> [laughter]
39:44>> But when we think about like smoked
39:46advertising
39:48When when I think about advertising like
39:49Google
39:49>> Yeah.
39:50>> ads, like all that type of stuff again
39:51in in this line of business, you don't
39:53really capture a lot there. So, I've got
39:55about like 170-plus affiliate partners
39:57now.
39:57>> What?
39:58>> Like that's where we get our traffic is
39:59affiliate because as you're talking
40:00about, it's authority.
40:01>> Totally.
40:02>> And when you're trying to tell somebody
40:03that like what they've been thinking for
40:04the last 20 years on their health care
40:06benefits is now all of a sudden wrong
40:08>> Uh-huh.
40:08>> you have to have a trusted
40:09>> your affiliates?
40:10>> Uh primarily like CPAs, financial
40:13advisory groups. The way I actually set
40:14them up as clients first cuz the other
40:16issue we run into and I I love your
40:18black host by the way, they're great. Um
40:20but the the challenge I had is proof
40:22testimonials.
40:24Um cuz most of the time I I used to work
40:27at P&G and I will tell you our tax rate
40:29was was all right. It was 0%. But we
40:32never disclose that cuz everything's
40:33NDA.
40:34Same thing with Coca-Cola.
40:37I think it's been 15 years.
40:39>> Super high. Yeah.
40:40>> Yeah. Yeah, they're they're paying so
40:41much tax.
40:43But so like most clients they don't want
40:44it well known on the record that they're
40:46reducing their tax burden in America cuz
40:48it's cancel culture. So most clients of
40:50course don't want to be proof or
40:51testimonial explaining like hey I'm
40:53saving this much on my taxes. So like
40:56how do you work around that cuz again if
40:58you're coming like
40:59>> So I would so I would chunk up my
41:02thinking one level. So
41:04if you were to reimagine the business in
41:06terms of the value proposition and your
41:08acquisition process not as
41:10how do we cuz like you're getting
41:13introduced to these customers through a
41:15partner primarily.
41:17And so if you were to chunk up a level
41:18and say my customers are actually the
41:19CPAs the you know the centers of
41:21influence, right? These are our
41:23customers and so I would actually redo
41:25all my acquisition metrics on how much
41:27does it cost me like what do I do
41:29metrics wise in order to acquire a
41:32center of influence? And all of my
41:34marketing messaging would be around
41:35that. The warm handoffs from the centers
41:38of influence to you that whole process
41:39like we can obviously work with you on
41:41that. That's like bread and butter. Um
41:43but to me that stick that like up level
41:46in thinking also gives you significantly
41:47more leverage because how many years has
41:49the business been around?
41:50>> We've only been around two years.
41:51>> Oh amazing. What's your revenue right
41:53now?
41:53>> 3 million.
41:54>> Okay, got it. So
41:56it's like okay so you have 170. How did
41:58they all did they just refer each other?
42:00Is that how that worked?
42:01>> Uh using my I was at P&G Nike Berkshire.
42:04I have a good network of there so I just
42:07worked my network.
42:08>> Okay, so outreach was Is primary. Did
42:10you do any content or anything like
42:11that?
42:12>> No, I do LinkedIn automation which
42:15>> I mean, I'm just trying to get the
42:16initial phone call with a lot of these
42:17guys.
42:18>> So, I think like if I if I were to like
42:20swap places, right? I would be building
42:23out the sales all my sales efforts would
42:25be centers of influence.
42:27>> Yeah.
42:27>> Bring those guys in like what's the
42:29sales messaging? What's the onboarding?
42:30Like and then because if I can
42:34what I want to do, so you're at the
42:35Leads Book?
42:37>> Uh no, I am
42:38>> Read the affiliates chapter of the Leads
42:39Book. So, there's two elements that I
42:40want to do with any kind of affiliate.
42:42There's a launch and there's an
42:43integration. The integration is the more
42:44valuable. The launch is the thing that
42:45gets them to buy buy faster, right? And
42:47so, if I have a new affiliate that
42:49already has a pool of customers, I'd
42:51say, "Hey, give me some sort of launch,
42:53refer me 10 people so that you can have
42:55an internal case study. One of those 10
42:57is going to allow you to do an
42:57internal." And or you could just in
42:59stipulation for doing all the work for
43:00free is that, you know, we get to use
43:01your story. Fine.
43:03Once you have the initial, you say,
43:04"Cool, one of your value props as a CPA,
43:08as a whatever, is that you also will
43:10save them this percentage." And they can
43:12include that in their pitch. And then in
43:14their onboarding process, I just plug
43:16myself in.
43:17And that way you get 100% of their new
43:19customers rather than whoever they
43:20choose to refer you to.
43:22Does that make sense?
43:22>> Yeah, it does.
43:23>> So, I want full integration with all 170
43:25of them. How many clients do you sell a
43:26month off of referral partners?
43:29>> Uh honestly, our close rate is only
43:30about 10%.
43:31>> Well, no, absolutely.
43:33How many absolute accounts do you close?
43:35>> Probably about one account per month.
43:38>> Jesus. Okay, yeah. So, if you have 170
43:40referral partners, like a lot of those
43:42are really not active.
43:43>> Yeah, they're they're not active. They
43:43might know five to 10 companies.
43:45>> Yeah, so we have so like we need to do a
43:48launch and integration strategy with
43:49that affiliate layer
43:51um and then figure out where in their
43:53onboarding process we can integrate so
43:54that every one of those 170 is sending
43:56you
43:57>> qualified
43:58>> one a month and then all of a sudden
43:59you're a hundred in our business.
44:01>> Okay.
44:02So, then to that follow-up point,
44:05um you're talking about like the the key
44:07influencers in that space.
44:09You guys are key influencers in that
44:10space. How do I make you guys a partner
44:12on it cuz I have already built out like
44:13that content library.
44:15I have
44:16a soon got a very strong group coming in
44:19with like 2,000 agents that can do a lot
44:22of this work for me. So, I don't have to
44:23create the library. How do I then get
44:25that to more groups like you guys that
44:27hell, you want to increase your
44:28profitability for the companies you own.
44:30>> Yeah.
44:30>> And it it works. Um, so like how do I do
44:33that? How do I get my foot in the door
44:34in these places?
44:35>> Honestly, do all the stuff that we tell
44:36you to do first.
44:38So, then I know that you actually did
44:39it.
44:39>> Okay.
44:40>> And then
44:40>> So, I got to read your book first.
44:43>> No, we can help with the sales process
44:44though. We should like
44:45First, if you're closing 10%,
44:47>> Yeah.
44:47>> like with the offer you have, your sales
44:49process sucks.
44:51So, like I'm just saying like that like
44:54that would be my first area of focus cuz
44:55you could probably get a triple in the
44:57business there.
44:58>> Sure.
44:58>> Doing nothing else. Then from a top of
45:00funnel perspective, I would think about
45:02the affiliate strategy.
45:03That'll be my two
45:05>> You don't want to love money.
45:07You want to learn to love making money.
45:08So, there's two misconceptions and then
45:10one truth around this.
45:12The first misconception is money is the
45:14root of all evil. And then that
45:16obviously is a quote from the Bible, 1
45:19Timothy 6:10.
45:20The 201 version, someone says, "No, it's
45:23not money that's the root of all evil,
45:25it's the love of money that's the root
45:26of all evil." But that's just the 201
45:29version.
45:30The actual translation, there's five
45:33translations for it, and four of the
45:35five are the love of money
45:39is the root of all kinds of evil.
45:41Meaning,
45:42if you desire money
45:45more than anything else, then you will
45:47commit the other sins in order to attain
45:50it.
45:50And so, the idea is that it's only a
45:53pathway that has a high likelihood of
45:56causing you to do things that are
45:58unethical or immoral.
46:00And so, there's this huge terrible
46:03paradigm in society that money is
46:05somehow good or bad.
46:07It is just potential energy. It's just
46:09bottled time. And that bottled time can
46:12build bombs. That bottled time can build
46:14hospitals. It can build wells. It can
46:16build schools. It can make YouTube
46:18videos that educate.
46:20And so, the idea that you're afraid to
46:22make money means that you're afraid of
46:24having power.
46:26And maybe you should be afraid of having
46:28power cuz maybe you'd misuse it. But if
46:30you do want to help the world, then all
46:33it's going to do is amplify your ability
46:35to do that. And if you have that mission
46:37on your heart or in your mind,
46:41then it's your duty to remove everything
46:43else in your [ __ ] way.
46:45>> How do you How do you make
46:48B2B content actual like actually go like
46:52viral or get people to care online when
46:54so few of the people watching it are
46:55actually like business owners? I'm sure
46:57there's a lot of them, but like for
46:59example, like the majority of our
47:01audience, say there's someone watching
47:03this episode right now in I don't know,
47:05Tuscaloosa, Alabama, right? For example,
47:08right?
47:10What what industries do you see right
47:12now or what places do you see right now
47:13that they could break into to start
47:14businesses that actually could be
47:16successful? Like what's Where are the
47:17holes in the market right now?
47:20>> Well, I mean, I think there's pretty
47:21obvious ones for just like AI enablement
47:23for like for like Main Street.
47:25>> man.
47:25>> Oh, yeah, it still works.
47:27>> No, I know, but he's like he's like 19
47:29years old. He just left Walmart. And
47:31he's like, all right, so I can start I
47:33can do plumbing. I can do power washing.
47:35I can do AI enablement. Like he's not
47:37going to do AI enablement.
47:38>> like I got like Maddox is on my team is
47:40from a smaller county than that from
47:42like Little Rock, Arkansas.
47:44No, no, my point is this is like dude,
47:46the internet's the internet. Like that
47:47kid can watch YouTube for free just like
47:49anybody else can and can learn how to
47:50use make.com and N8N and do whatever the
47:53hell they want. And they can go to the
47:54local plumber in Tuscaloosa and be like,
47:56"Hey, instead of having this girl who
47:57you paid $1,500 a month to answer your
47:59phones, I can have an AI do it for $200
48:02a month." And he can do that to 100
48:03different places in his local town.
48:05Like, he absolutely can do that. He also
48:07could not stick to Tuscaloosa and just
48:08use the internet like everybody else.
48:09>> Yeah, you got smoked you got smoked
48:10right there.
48:12Didn't think I didn't when you brought
48:13up AI enablement, I didn't make that
48:15connection.
48:18I guess what I'm trying to do is bring
48:19value back to people that are lost,
48:23starting to discover
48:25things.
48:26>> Well, the reason I did school, so to
48:27your question, right, is like 30 I think
48:30So, at the book launch, 2/3 of the
48:31people who were there were business
48:32owners, self-selected said, "I'm a
48:33business owner." And then 1/3 of people
48:35who were at the book launch
48:37uh said they wanted to start a business
48:38or didn't have one.
48:40Um but like if you look at the US, 9% of
48:42Americans own a business. So, it's 32
48:43and 1/2 million, 33 million people out
48:45of 300-ish. So, 10% 9% of people have a
48:48business.
48:49Um I was okay with not being like the
48:51widest person. Like, I want to go deeper
48:53with the people that I can like make the
48:55biggest impact for. And so, if no one if
48:57the if 90% of people never know my name,
49:00I see that as totally fine.
49:02>> That's a That's an interesting number.
49:05Um
49:05about 30 million people are business
49:07owners. Are those the people buying
49:11your books? Cuz you you're a
49:13best-selling author. I think I think on
49:14my PDF here it says you you've sold over
49:164 million copies of your stuff, which is
49:18a lot of books, dude. That's a lot of
49:21books.
49:22So, are the people that are buying your
49:25books,
49:26I would assume are the business
49:28>> It's both. Entrepreneurs and
49:29entrepreneurs.
49:31So, the wantrepreneur side like the
49:32reason that I that the school deal made
49:33What like wantrepreneurs like
49:35wantrepreneurs.
49:37Yeah.
49:37>> Like aspirational.
49:39>> Yeah.
49:40But the um
49:41but the with the books, like the reason
49:43I put the books out there the reason I
49:44put the content out there like the
49:45long-term play is there's tons of
49:4719-year-olds who are in Tuscaloosa who
49:49are like, "Dude, how the [ __ ] do I make
49:50money? The education system's [ __ ]
49:52College doesn't make any sense anymore.
49:53Like, what do I do?
49:54And so, like, I put a ton of content out
49:56for those people, but I also put out a
49:58ton of content for like, okay, when does
49:59a roll up make sense? When do you you
50:01know, how do you exit a business? Like,
50:02what are the key risks that you have to
50:04eliminate so a private equity investor
50:05would would want to make that purchase?
50:07Um and so, I make kind of like
50:10information on all sides there because
50:11the amount of people who who've been
50:12watching my stuff for a few years used
50:14it all and they're like, I quit my job,
50:16I started using your stuff, and I just
50:18built this tourism van business in Ask
50:22Alaska, real story.
50:24Um and then they like fly out because
50:25they're like, dude, I'm doing 2 million
50:26bucks a year. And I'm like, that's
50:27awesome.
50:28>> I was going to say, so okay, so you
50:29don't sell courses, but you do sell
50:31books.
50:31>> Yeah.
50:32>> Have you seen
50:33>> I also give them away for free.
50:34>> Oh, you do?
50:34>> Yeah, if you want a hard copy, you can
50:36pay for it. But yeah, they're they're
50:37for free on my podcast. I just give them
50:38away.
50:39>> Oh.
50:39>> Check your bank account before you check
50:41social media first thing in the morning.
50:43And if it hurts you to check your bank
50:45account first thing, then you need to do
50:47it even more.
50:48Because for me, I started not knowing
50:51where my money was going. And so, I had
50:54a friend who was like, dude, just look.
50:56And I honestly had anxiety looking at my
50:58bank account, looking at what money was
51:01going out and all that kind of stuff.
51:02And so, I started making that habit and
51:05I had to confront it. But the crazy
51:06thing is is as I started looking at my
51:09money, as I started paying attention to
51:11my money, my money started paying
51:12attention to me and hanging around.
51:15And so, Peter Drucker said,
51:17"What gets measured gets managed." And
51:19so, one of the most fascinating things
51:22that I found with human behavior in any
51:24kind of change is that the first thing
51:26that you can do to improve any metric
51:28for any skill is to actually measure it.
51:31And so, if you want to lose weight, if
51:33you weigh yourself every day, no how
51:34matter how painful the number is, that
51:37intervention alone helps people lose
51:39weight. You don't even have to talk
51:40about diet. You don't have to tell
51:41someone to exercise. If they look at the
51:43scale every day, they become aware of
51:45it. And when you become aware of a
51:46problem, you start consciously or
51:48subconsciously making moves to change
51:50it. You have that hesitation before you
51:52put that food in your mouth. You have
51:53that hesitation before you take your
51:54wallet out when you're looking at your
51:55banking account every day. It doesn't
51:57matter what it is, whatever you're
51:58trying to improve, but look at it,
52:00confront reality, and then reality will
52:02start to improve. And if you're curious,
52:04how long do you still check your bank
52:06account every day? And I'll The honest
52:08truth is, I stopped checking when we had
52:10about 20 million bucks. Um and so that
52:12started when I had in the hundreds to
52:14thousands of dollars
52:15uh and continued to check every day. And
52:17when I stopped checking it was when I
52:19realized my daily fluctuations in in
52:22market movements and things like that
52:24across my assets,
52:26uh it like I didn't I I basically wasn't
52:28able to really see it on a daily basis.
52:30So I had to start extending my time
52:32horizon for when I would check it. So
52:34it'd be monthly or quarterly that I
52:35started checking it. Uh because that way
52:37at least I know I should have some
52:38movement upwards, and that
52:41is something that if you've done
52:43checking your bank account every single
52:45day for years, you start to already have
52:47developed some of those disciplined
52:49skills, which then you can delay
52:51gratification of having saved money. How
52:53would I get someone to be poor? I would
52:56get them to keep starting new things
52:58rather than getting good at one thing.
53:00And so do you remember that guy who got
53:02rich drop shipping, day trading, buying
53:04crypto, and wholesaling all at the same
53:06time? Yeah, me neither. You have to
53:08focus. And it's arrogant to think that
53:10you could do multiple things at once and
53:12beat someone who does one thing with all
53:14their effort. You have to pick one thing
53:16and go all in, and then you become the
53:17one who's hard to beat. So I told you
53:19earlier that I had nine failed
53:20businesses. Now, here's the part that a
53:22lot of people don't know. Six of those I
53:24had at the same time. And so I like to
53:26tell people to oh yeah, I'm a CEO, I've
53:28got multiple companies, right? Like kind
53:30of the way I do now, but it's very
53:32different now. Because the thing is is
53:33that I actually have CEOs who run those
53:35businesses, right? Not me. Cuz you can
53:38only be CEO of one thing. You can only
53:39drive drive thing. Now I drive
53:41acquisition.com,
53:43right? But CEOs of each of the
53:44divisions, of each of the portfolio
53:46companies, like those are people who run
53:47their own profit and loss statements.
53:48And I didn't understand that. And so I
53:50had a chiropractic agency, a dental
53:52agency, a gym launch business where we
53:54did turnarounds. I And then I also had
53:56five gyms of my own at the time. All
53:59right? Depending on how you want to
54:00describe it, I had five locations plus
54:01the three, so I had eight. It's a lot,
54:03all right? It's too much. And because of
54:05that, I was stressed out of my mind. I
54:06was so spread thin. And basically, I had
54:09lots of things that generated revenue
54:10and I didn't make any money. The only
54:12thing that it fed was my ego, not my
54:14bank account. When did this big
54:15turnaround happen for me? Layla came
54:17into my life and she was like, "Hey,
54:19you're clearly really good at this one
54:20thing. Why don't we just cut everything
54:22else?" And that's exactly what I did.
54:24And it was the hardest period of my life
54:25cuz I had to shut down all the other
54:26businesses but one, which also meant
54:28that I had to end partnerships with all
54:29these different other people that were
54:31relying on me. And that was hard. I'm
54:33not going to lie, like it was not fun.
54:34Like these are people that I liked. But
54:36I had to make this decision. I had to
54:38cut off the life that I didn't want to
54:40have the life I wanted. If you want to
54:42impress people who are poor, talk about
54:44how many things you do. If you want to
54:46impress people who are rich, talk about
54:49how good you are at one thing. Like at
54:50the end of the day, your ability to
54:52demonstrate excellence is going to be
54:54the only thing that someone who is ahead
54:56of you will look at. And so you only
54:59fool the people who have no idea. And
55:01I'll be real, there's a lot of people
55:02who have no idea. So the thing is is
55:04that this is where the whole impostor
55:05syndrome will start creeping up on you.
55:07Because you're like, man, I you know, I
55:09kind of feel like a little bit of an
55:10impostor. Because you are. You're
55:11misrepresenting yourself. You know
55:13you're not as successful as you pretend
55:15to be. And so if you want to eliminate
55:16impostor syndrome, just stop lying. When
55:18I say lying, people are like, "I don't
55:19lie." If you present something in a way
55:21that you know is going to be perceived
55:23differently than what reality is,
55:25posturing, in my opinion, lying. You're
55:27misrepresenting. What you want to be
55:28able to do is state the facts and tell
55:30the truth. Period. And then if those
55:32facts and truth are not compelling and
55:34do not get you status, then change the
55:36facts and change the truth. Meaning, not
55:38that you lie about them, but you work so
55:40hard that the truth is compelling. And
55:42sometimes that takes time. But I promise
55:44you the people who are who are all in on
55:45the imposter stuff, the guys that I knew
55:47that are that were, you know, when I was
55:48in my 20s who were kind of like hustle
55:49bros, whatever, a lot of those guys
55:51faded, you know? And or they're still
55:53like jumping from thing to thing to
55:54thing kind of like pretending to be
55:56successful. Like I know that they're
55:58barely able to afford their house. At
55:59the end of the day, it's a choice that
56:01you have to make. Do I want to pretend
56:03to be rich? Do I want to pretend to be
56:04successful? Do I want to look like I'm
56:06successful? Or do I want to be
56:07successful? Which more likely is do the
56:09things that success requires, which
56:11today do not look like success. It looks
56:13like a very long string of failures.
56:15Because you will be rewarded far more in
56:17life for your determination than your
56:19intelligence. But the problem with
56:21determination is is that
56:23>> when you're broke, every dollar means so
56:25much to you.
56:27But
56:30and you want to see the dollars in your
56:31bank account go up.
56:33But I never made that my goal. I made
56:37the amount of money I made every month
56:38my goal.
56:40Because I saw that as my like potential
56:42energy versus stored energy.
56:44Not to get I mean, whatever, physics
56:46people, you get what I'm saying.
56:48And so, I was willing to take that
56:50stored energy and reinvest it to take
56:52$5,000 a month in income to make it
56:54$6,000 a month. Because I knew that over
56:56a year, I was going to make 12. And so,
56:58if it cost me two to make the 12 in
57:00income, I would make that trade every
57:02time. And so, whenever I'd save up a
57:04small like nut. Now, obviously, I've
57:07always been pretty good at about
57:08spending money. Like I've I've I haven't
57:10had that that habit. So, like again,
57:12foundations. Like first, it's your
57:14fault. Second, spend less than you make.
57:17Third, take all of the excess and spend
57:19it on making more. Because if you're
57:21making
57:23minimum wage,
57:24I'm going to say what you probably
57:26already know. You're not going to get
57:27ahead. Like you're not going to save
57:29your way there. You're not. Like
57:31everyone loves to tell the story of that
57:32one girl at McDonald's, but you know
57:33they don't tell the other 100 million
57:35people who work at McDonald's over the
57:37over the world who didn't make it. And
57:38like the outcome they're talking about
57:40is like she made a million dollars over
57:4240 years of working at McDonald's. Like
57:44you can shoot for more.
57:47And so like
57:49take the money you make, live on
57:50nothing, and the hard part is just
57:52swallowing the pride for the fact that
57:53in the short term everyone's going to be
57:55right when they say that you're
57:56amounting to nothing.
57:57And that's the tough part. That's the
57:59glass that you have to you have to
58:00swallow, that you have to pull towards
58:02you.
58:03And
58:04there's just no other way.
58:06Like you have to learn the skills. Now,
58:08I mean to be fair, YouTube didn't exist
58:11>> [laughter]
58:11>> when when I was doing this.
58:13And like Instagram was like a new
58:15platform. So like all this stuff like
58:17the stuff we have today is crazy. Like
58:18the stack of these videos in this
58:20podcast like all this stuff didn't
58:21exist. Like I remember when podcasting
58:22came out. Like I was already a business
58:24owner.
58:24>> [laughter]
58:25>> Like none of this stuff existed. But at
58:27the time I just took all the money I
58:29had. And I I want to I want to I want to
58:30make this point again is that
58:32people think that the money is about
58:34buying courses and stuff like that. And
58:35you can. Like there's nothing wrong with
58:37that. I've learned a ton from a lot of
58:38the stuff that I've bought, to be really
58:39honest with you. But I think that I've
58:41always had an amazing return on
58:42education because I always did it.
58:44And I think like I always wanted to be
58:46the best student in every class. And I
58:48was good at school. And I
58:49I just took business as a different
58:50another another type of school. But part
58:52of the expenses that come into like what
58:54you take that money for is experiments
58:56that fail.
58:57And so one of the things that happens
58:58when you're broke is that you bet on
59:00stuff and then it doesn't work and
59:02people feel like they're back at zero.
59:04But you're not back at zero. You're at
59:05where you were plus one experience. Plus
59:08two experiences. Plus three experiences.
59:10Plus four experiences. But when you have
59:11plus 18 experiences all of a sudden
59:14boop, you level up one.
59:16You get experience points. There's a
59:17reason in video games called experience
59:18points. So you didn't trade it for
59:19nothing. You got an experience point.
59:21And then with enough experience points
59:22you get to the next level. And so I
59:24think if you just even thought about it
59:25like that it's not a loss, but an
59:26experience point it could get you could
59:27bridge the gap between your current
59:29income level and the income level that
59:30you want to get to. And then guess what?
59:32There's more experience worth that you
59:33have to get there. And those experience
59:34points also cost more money. Because
59:37when you take a bet in the beginning,
59:38and when I say it costs money, it's like
59:41if you run an ad and it doesn't work, it
59:42costs money. If you want to set up a
59:44Shopify store or an e-commerce store,
59:46and you spend 30, 40, 50 bucks a month,
59:48whatever, it costs money.
59:50Um
59:51and it does you know like all of these
59:52things cost some money to start. Now
59:54mind you, it costs a lot less than it
59:55did in the '20s when you had to mortgage
59:56your house and guarantee that you'd win
59:57or you'd lose everything forever.
59:59Um so like the bar has it never been
1:00:01lower than it is now, but there still is
1:00:03a bar and you have to get over it. And I
1:00:05still think that the vast majority of
1:00:06the [ __ ] that people trying to get over
1:00:08has nothing to do with the difficulty of
1:00:09business, but the first step, the
1:00:10foundation, which is it is my fault
1:00:13that I am here.
1:00:14And in it being my fault, I am the one
1:00:16who can get me out of it.
1:00:18>> It sounds like in that stage three when
1:00:20you start experimenting and investing in
1:00:22that, and let's say the the kid who has
1:00:23a failed drop shipping experiment or
1:00:25starts a school group, and they want to
1:00:26win the school games, but they don't.
1:00:28Their measuring stick for whether or not
1:00:29they're doing well shouldn't [snorts] be
1:00:31how much money they're making.
1:00:33Or should it like should they be
1:00:34thinking about money at that point or
1:00:38>> So, the wealthiest people I know
1:00:41only think about skills. They think
1:00:43about what can I learn and then what can
1:00:45this skill get me. And so,
1:00:48they will always
1:00:50take any money they can to buy more
1:00:52skills.
1:00:55And in the beginning, you have to buy
1:00:57all the skills yourself.
1:00:59Once you have enough skills that you can
1:01:00generate an excess of income, you can
1:01:02start buying other people's lives. And
1:01:04what I mean by that is like everything
1:01:05comes down to buying time.
1:01:07And so,
1:01:08at some point, you're 10 years into your
1:01:10career and you have a handful of skills,
1:01:12but you can buy someone else's 10 years
1:01:13of skills by just paying them to do
1:01:15something, too. So, you don't have to
1:01:16learn all those things. And so, you do
1:01:18need to get good at stuff, and then
1:01:20eventually you generalize to being good
1:01:21at people. And that's pretty much always
1:01:22the path for everyone.
1:01:24>> If you want to impress poor people,
1:01:26outspend them. If you want to impress
1:01:28rich people, outwork them. And I can
1:01:31tell you this, being in the position
1:01:33that I'm at because I have tons of young
1:01:34men who work for me, and I mean they
1:01:37hear all the content that I make and
1:01:38they know that. And so, if you lease a
1:01:41Ferrari for $5,000 a month or whatever,
1:01:44I know you're not rich.
1:01:46And every rich person isn't impressed by
1:01:49that because we know what it cost. You
1:01:50only impress poor people. And if you do
1:01:52it really early in your career, every
1:01:54rich person's like, "Man, you should be
1:01:55reinvesting that to get way [ __ ]
1:01:57bigger." Now, if you're like an
1:01:58efficient auto and you want to have lots
1:01:59of cars, and that's like again, that's
1:02:00different. It depends on the reason
1:02:02you're doing it. It's like, you
1:02:03shouldn't be cooking your own food
1:02:04unless you love cooking. But if you
1:02:06don't love cooking, then you should
1:02:07outsource that [ __ ] as fast as possible
1:02:09so that you can get your time back. It's
1:02:10understanding the context of this, which
1:02:11of course this will be taken out of
1:02:13context. But hopefully, you watching or
1:02:15listening to this can at least get it.
1:02:17Layla and I both collectively started
1:02:19buying nicer things. So, living in nicer
1:02:21places, having nicer cars. I bought my
1:02:24home, which was a nice house, in Austin.
1:02:26I think it cost me 1.7 million. I bought
1:02:28it in cash, and I bought it off one
1:02:30month's paycheck. And so, I want to put
1:02:33that in context to like, was it a
1:02:34balling house? Totally. It was sick. I
1:02:36was super happy to be there. But where I
1:02:39lived before that cost me 1,200 bucks a
1:02:41month. And so, you're like, "Wait, 1.7?"
1:02:43Right. We spend money, but by
1:02:45percentage, the amount of money we spend
1:02:47is inconsequential. If you want to buy
1:02:50the toys and you want to buy that stuff,
1:02:51I'd say, "Sure, understand one. Whatever
1:02:53you spend, you're taking away from the
1:02:54future." Now, there is always a point
1:02:56you have to balance between consumption
1:02:57and investment. If you never spend
1:02:59anything, you live you live your entire
1:03:01life and you end up with a big pile of
1:03:02money and you didn't enjoy any moment of
1:03:04that. I don't think that's the way to do
1:03:06it. But I do think there's a ratio
1:03:07there, and I think that ratio depends on
1:03:09you as an individual. I tend to always
1:03:10over-index on investment because I just
1:03:12I want to become a really like great
1:03:14version of me, and I think that's going
1:03:16to cost money and it's going to cost
1:03:18time and I like to be ready for those
1:03:20opportunities because the opportunities
1:03:21get bigger and have more zeros next to
1:03:22them and there's no masterminds you get
1:03:24to at a certain level. You just do a
1:03:25deal with someone and if for me to pony
1:03:27up for the deal might be like, "Hey, you
1:03:28got to write a check for 10 million."
1:03:29I'm like, "All right, I got to have that
1:03:30ready for just like on the sidelines
1:03:33waiting for opportunities, right?" And
1:03:35so
1:03:36the idea is
1:03:38being on the defensive so that you can
1:03:40be on the offensive. It's living far
1:03:42below your lifestyle so that you can
1:03:44more heavily invest in the growth of the
1:03:45business. And so your lifestyle is your
1:03:48competitor's opportunity. There's you
1:03:50and other version of you. There's
1:03:51bizarro you, right? And bizarro you
1:03:54wants to live this great lifestyle and
1:03:55has the Ferrari and the nicer place and
1:03:57whatever. But when an opportunity comes
1:03:59along, bizarro doesn't have any savings
1:04:01because he's trying to
1:04:03to show face, right? The thing is is
1:04:04everyone he's trying to show face for
1:04:06hates him anyways cuz it looks like he's
1:04:07bragging. But also, they know how much
1:04:10he makes relatively and they're like,
1:04:11"God, he's got to be spending his whole
1:04:12check paycheck. He looks irresponsible."
1:04:15There's zero advantage to being
1:04:17accurately judged. If you are strong,
1:04:19you want to appear weak. You want to
1:04:21have more money than people expect you
1:04:23to have. And so for me, when we did buy
1:04:26the Bentley, which I bought because I
1:04:28got I'll be honest, I got pressured into
1:04:30it. They're like, "Dude, come on. You
1:04:32make all this money. Like, buy something
1:04:33nice for yourself." And I was like, "I
1:04:34guess people buy nice cars." So I bought
1:04:36a car. I bought a Bentley.
1:04:37And um I returned it 6 months later. Uh
1:04:40and I lost 20 grand on it. I was like,
1:04:42"This is just a complete waste of
1:04:43>> If you like this video and you're
1:04:44business owner who wants to break
1:04:45through your current revenue ceiling, I
1:04:47just sold every lesson from scaling 10
1:04:48businesses past 10 million and three
1:04:50businesses past 100 million into a
1:04:52completely free scaling road map that
1:04:54I've used to go from zero to one, zero
1:04:55to 10, and zero to 100 plus. And so you
1:04:58can click here and you can check it out.
1:04:59Again, absolutely free. And since you're
1:05:01business owner, appreciates you and
1:05:02enjoy.

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