Warum Alex Hormozi auf KI als große Chance setzt

0:00well if someone's just like who are you what do you do and you're like in a car somewhere what's your like quick little identifier started with a chain of gyms out of the Southern California I sold those kept God damn I didn't need the whole life story if I was a golden doodle how would you explain what acquisition.com is we do nuclear nuclear fusion you know we cure all diseases and we can reverse aging I didn't really mean to go super balls deep you want a good Cactus it's already too big in my opinion too large for any person to stop what the [ __ ] man we're gonna go and not sleep for a month and like walk on fire I'm just gonna dance on Tick Tock now and I'm just too much of a [ __ ] all right ladies and gentlemen welcome back to don't be sour episode number 36 I'm your host Max tuning we're here with the man with the greatest beard on the internet who might enjoy talking about Chipotle even more than I do Mr Alex romozy thank you for having me how you doing man I may have to be here I'm actually pretty uh I feel like you're just slightly disappointed you you thought I owned a bunch of companies you're not the first person because in my bio it just links them down below so people are like damn you own movement and ghost and that's what I said I mean the other two companies I don't know about yeah foreign no it's all good I uh well I'm glad that you worked with those guys because it's still very cool Brands yeah absolutely man well why don't uh for the people that don't know you why don't you just uh I like to say like what's your Uber pitch of if someone's just like who are you what do you do and you're like in a car somewhere what's your like quick little identifier uh started with a chain of gyms out of the Southern California I sold those kept the IP started licensing the model to just under 5 000 actually I think we're just over 5000 locations now um sold two-thirds of that company last year and some ancillary companies that went with that at 46 46.2 million um to uh private Equity Firm out of San Francisco um and during that whole period of time it was a very cash flow positive company uh and so we started doing a lot of private investing and uh right now uh we started acquisition.com not right now I mean two years ago Oxford acquisition.com and that portfolio of companies does about 200 million dollars a year um I always want to be like and I have um and I make a lot of content now uh just to help other people do it too and hopefully uh grow their business is big enough that we could you know invest in them someday that's what you would tell an Uber driver yeah that exact specific well I have a long ride I got 10 minutes he's gonna just have to listen to it you know he's like God damn I didn't need the whole life story yeah well so like generally when I interview like any sort of guest I like to do some sort of you know deep dive on them so I don't come in fully looking like an idiot but I like to also not you know know everything about them so I'm kind of fresh and I'm very you know on the internet you're the the 100 million dollar man Everyone likes to refer to you as do you like that name I mean it'll it's a little under now and it's you know in five years I'll hate the name so yeah it's kind of disrespectful to only call me the 100 million dollar man it's I mean it's I'm I'm honored it's very nice I'm flattered by it and a lot of it's because of the book so 100 offers was because I think at that point when I wrote the book um you know we've done 120 million-ish in cumulative sales and so I was like here's the stuff that we learned about making offers and so I just put in the book and I think people just took that title and you know slapped it on me do you think people who like own businesses or whatever when they get to one million dollars they like to refer themselves to as a millionaire is that like when the moment you hit 100 million dollars like 100 millionaire I actually made a a video about this but there's like seven different ways I've seen people talk about like their net worth most of them false but there's like how much total sales I've done over the lifetime of my business is like total revenue and then it's um you know one step underneath that would be uh like the value of the company based on equity and then another one underneath that would be like what their current run rate is and then another one is like what their profit is and then another one would be like what their cash flow is and so I'll say one of the things that I have feel like I've learned is like the wealthier you become the more amorphous what net worth even means is amorphous yeah it's just it's muddy it's murky it's not uh like when you're poor you know exactly what you have because you don't have much and you can count it on your fingers right when you have a lot then it's like well what's the value of the 28 stake I have in this business that we're not planning on selling and we're reinvesting profits into yeah I don't know I mean I could probably sell that to different people for different prices like and then so a lot of a lot of assets aren't liquid and so even even when you it's kind of funny because like going through the sale process you get a big chunk of cash and then after that you then have to allocate the cash so when people are like oh this guy's worth a billion dollars it's not like he has a billion dollars in his bank account he just owns something that is worth a billion dollars which is very different you know the only time that it's I feel like it's more accurate is once you go into a public market the equities you have are tradable and you can take loans against them you know immediately and so in that way you really are at least in my opinion like the billion is more real yeah than if you're in private equities uh which you know things are illiquid it takes six to 12 months to be able to sell or kind of transact in any way and it's based on what the market looks like then and what buyers are available do you think a lot of people say different you brought up a lot of good points about when when I when you talk to businesses of like yeah our business you know it it's like how much have you done like 50 million dollars that's crazy like you know 2022 they're like well no like lifetime yeah do you think there's a reason why some people will like there's different types of personalities in the business of like when I say a revenue number it's that year not Lifetime and then even it was relatively recent to me I never ran into someone um until talking about like run rate of like that's not what they're actually gonna do this year that's like what they would do if this best month continued for the next 12 months that's what they would do like why do you think people I don't I don't say like inflate it but is do you think that's kind of like what they're doing yeah making it sound better than it not that it's bad but yeah I think it's status yeah it's like it's always a way of like bumping their status like up one level like rounding up it's something that I actually work on a lot is like try not to round up I like I'm not perfect at it but like I try not to round up um you're around Downer actually I want to be accurate so 46.2 yeah he said that I mean like yeah not more or less and then trying not to qualify it because two very rich people that is nothing and to very poor people that is everything and so I can't guess what someone's gonna see by that so it's just that's what it is okay and with acquisition.com if I was a golden doodle how would you explain what acquisition.com is we are minority investors in companies that are between three and 100 million a year and so we take minority Stakes typically between 20 and 33 of those businesses um and we depending on the business we're either Investing For Cash Flow for some sort of return or we're reinvesting cash into the business so that we can eventually sell it later it really just depends on the business is it a long-term hold is it like a Fix and Flip it just depends on the business but typically we are minority investors in those companies and we bring a lot of Hands-On help to grow the business and so we get discounts um for the valuations ETC that we invest in those companies because we are Hands-On which is not typical for minority Partners most times they write the check and they want to ride you know just ride along and usually just get the the founder some sort of cash no cash usually exchanges hands from us to the founder because we're either investing into the business so that it can grow or we're doing something in kind because it's uh based on the amount of value that we're going to provide I noticed when I went to acquisition.com there's not that golden doodle Spiel on it it's like it's good you just like have to know what is it like you have to know what it is to like you should know what it is before you even go to the websites everything I think it's just because the vast majority of people that do go to the site do know what it is because they've consumed something or multiple things it might like in order for somebody to say oh I'm going to go to acquisition.com um they would usually have consumed at least you know a few pieces of content of mine before they would go there I mean if they click you know investment thesis or any of the other you know links on there but you know I come from a direct response background and so having something that's optimized for uh for conversion is always Forefront of mind and so you know if I had a big paragraph of what we do on the on the home page I guarantee you I would have fewer deals that would be coming to me you think I have fewer deals 100 hmm I can prove it yeah 100 and did you were able to snag acquisition.com or do you have to buy that I bought it how much did the website cost you I think it was 370 something 370 dollars thousand what the [ __ ] yeah was it was it someone just what they call like domain squatting or domain shark it wasn't like someone had a business and you're like hey you know I could do better it's just the name [ __ ] man yeah did you talk it down what was the original price no I just came in at asking they were in talks for somebody else and they're not a negotiator I am but it's like what's the what's the goal you know what I mean for me the cost of negotiating it because you had another buyer that they had been haggling with and so I figured that the seller was kind of tired of haggling with this other guy for like I think the number that they were at was like 325 or something like that and they were trying to create some sort of payment plan or something I was like I'll pay 370 today cash just why I said like I can wear it tomorrow um and so they do close in like two days and they had been in talks for like two months um and so for me it's like what's the like is there actually a difference in how much value I'm going to get out of something if I pay 50 000 less or the downside risk of me just not getting it for me is significantly higher um and I would say that one of the things that I have changed over time is That I Used To haggle every single nickel and dime and I value speed more now because the opportunity cost of the time that I wouldn't have it I will I'll make more money having it sooner and I'll make up the cost difference with speed I guess I guess in my brain not I mean I know you know uh it's all relative to I guess your income totally that you have but in my head I'm like don't you think like an email like would you take 350. save you twenty thousand dollars it just wasn't it is what it is at this point I want to just get the deal done how many of the businesses that acquisition.com invest in would you say get acquired because that's the end goal like to the businesses that would sell would you say do you have like a success rate or anything so for us we're two years in um to the minority investment so even in a normal deal cycle you know I probably wouldn't sell it like unless we're just flipping a company which is not really our model like I would prefer to hold all of them forever that's my preference I am a minority in a minority position though and so if the founders like I really want to sell then we'll say okay then let's get it ready to sell and that might take 24 months to like you know do a couple of little hanging fruit increase the cash flow you know add a couple of value ads that would be you know significantly increase the Enterprise value of the multiple we'd be able to get on the company um and then we can you know go to market and that going to Market process takes 12 months just on its own like once the company's ready it's another year do you think a lot of people invest obviously they they get it from you but like do they expect that Alex is going to promote my company now or is that not really part of the like you're you're going for my expertise of myself my team it's not that you're going to be a spokes model for look at this chapstick brand that I invested in correct so I am not uh I don't I don't endorse any of the the companies that we have um and there's there's a couple reasons for that one is if I'm gonna really endorse something I do want to have it for a very long time or forever um I usually want to have control so I'd want to be majority likely or at least 50 50 in the business most times um I mean there are special circumstances if it's a massive company and like it would make sense I'd be open to it but it would definitely be an additional like an additional negotiating point the biggest risk for me is brand yeah and so like you know making an endorsement is is a big investment because I'm really betting that this guy gal company is not going to do anything really dumb and that's tough because there's a lot of people in businesses you know if you're head of marketing you know DM some girl who's underage and he doesn't and it becomes this whole thing and then my brain gets associated with that it's there's just like I can control me and so if I'm going to do it I want to have as much control as I can um and so that's why I don't normally do it that way it's also a little bit of a risk to the business because if I'm a huge driver of value to the business in terms of percentage of sales Etc um then it does make it more difficult to sell because then the acquirer would have to make a deal with me and to deal with the company right so we do this ultimately to make the companies independently more valuable rather than make them dependent on us which is kind of like the fast track Band-Aid but I think long term robs them of the value that we that they could make on their own you're you're essentially I mean not like do people just compare you to Shark Tank kinda sort of all the time you're like a better looking Kevin O'Leary a more jacked Kevin O'Leary yeah yeah more significantly more hair yeah you know speaking of difficult speaking of I guess like you know bringing up shark tank in the acquisition and uh you know percentages minority Stakes a lot of people that you know and I'll I'll refer to Shark Tank because I think a lot of people understand that show um you'll see a lot of people come in and maybe you know people hey Alex I want you to invest in this we're doing what I see a lot on episodes is is people undervalue valuing or overvaluing their company and a lot of times even I'm a little bit confused when the sharks or you would be like it's not worth that if if some if companies like you know we're we're doing 10 million dollars in sales our business is worth telling 10 million dollars and they get they're like no it's not it's only worth how much cash you have in the bank like what is the biggest misconception people have with value with valuations Beyond like their own ego of like no it's it's worth a whole lot of money yeah so fundamentally when somebody's buying a company they're buying a percentage of future profits right and so the question is how how profitable will the company be if it's in the future how long is that sustainable and what is my risk associated with that and so if there's if there's a business that's incredibly transactional has a single point of failure that's founder-led and they're the face and they're the one that drives all the business that person gets hit by a bus the company's dead right that person gets in a scandal the company's dad and so you want to have as few like you want to have multiple stream you know multiple different sources of acquisition you want to have customers that return for a very long time you want to have some sort of unique mechanism if possible that gives and it could not just even be about the product it'd be a unique mechanism for acquisition it could be unique uh like just some element that makes it a little bit different that gives some sort of competitive advantage or cushion against the new entrant that's going to try and just copy and rip off the same thing brand would be an example of that which is why like Warren Buffett talks about buying big Brands like anybody can recreate the Apple iPhone I mean shoot China does it all the time yeah but they can't recreate apple right and so like a brand in and of itself would be something that's valuable and so when they're thinking about that like you know values of businesses are so uh murky right I don't use amorphous but they're so they're so variable I like the word amorphous I'm adding that into my vocabulary they're uh they're they're a moving Target you know it also depends on the the capital environment so if you can borrow money at a cheaper rate values of companies go up same like real estate because if you can get money cheaper in general the whole Market starts trading higher if it's money more expensive than the the the companies trade lower and so there's just there's a ton of different variables that go into it and then also what the company is going to get from the acquirer so like if a strategic buyer so a company so to Define that if a company buys another company and the company that bought it would directly benefit uh from adding that company to its kind of portfolio like it can cross-sell its existing customers into those Services uh or products then that company will make more from the acquisition than what a financial buyer would be so like if a family office a rich you know rich guy just wants to buy a piece of a business or the whole business he doesn't have any strategic plays he's just going to buy it from what it is and so like Financial buyers tend to buy businesses for less than strategic buyers do so you want to find a strategic buyer if you can but those deals take longer there's more integration there's typically you know a one or two year consult back period where the founder has to like make sure it fully you know transitions there's probably some sort of burnout or kickers along with how well it does with that transition because some of the value the Enterprise Value that gets described is based on how much more money we're together going to be able to make and so um there's a lot of factors that go into how you value business but at the end of the day it's just what someone is willing to pay that's true it's kind of like it's kind of when someone goes to sell anything it's like it's worth this much like it's only worth as much as someone's willing to pay for it it's like if you have a 50 000 watch or you think someone's gonna buy it but no one wants to pay fifty thousand it's not worth fifty thousand dollars if you're selling 2009 versus 2021 same business you get a different number yeah you know and I didn't really mean to go super balls deep on Acquisitions and whatnot but I mean something um else is a lot of people get caught up in raising money a lot of businesses what is your what is your take on the people who either are super prideful that they've never taken money and they're super casual positive um and they're I guess a slower grower right um versus someone who's I want to raise tons of money dilute myself or my company because of this big exit I mean there's I guess there's strategies to both totally so I think there's a right way and a wrong way to use to raise money um the right way of raising money is that you have all the base business economics correct so I'll give you an example so let's say uh you have a product or a software that costs 100 bucks a month right and somebody stays on average for 40 months so it's a 4 000 rltv but it costs you let's say 500 to get that customer well that would mean that the business is going to lose money for the first five months before they even break even on gross margin like let alone run all the rest of the business just on spending to acquire it takes them five months to break even and then they'll make their first quote dollar of gross profit that they can you know start paying payroll and other stuff in in that instance it makes sense for them to raise money to more rapidly acquire customers because the fundamental economics of the business makes sense where it doesn't make sense is where people will raise money to cover the fact that they're not making money so they can artificially lower prices and you know this is kind of the issue that Uber ran into or is running into is that the model is different because if they their whole concept was we're going to lower the price gain a lot of market share and then we'll raise the price but in a very real way the price was a big part of why people wanted to use it yeah if cabs are cheaper than Uber then all of a sudden the entire fact that you had this market share only it was price dependent and so that's where it's the it's the tricky balance of are we using this money to speed up an acquisition cycle where we have the LTV decaf metrics that this makes sense and we just need to do more of it faster to get a certain you know size um the other instance is when you're trying to gain market share but doing it the right way rather than necessarily this Uber example I was giving um the third piece with uh raising money is that you get insane valuations and so because like if I let's say I want to sell 0.1 percent of acquisition.com if I said I was going to do that and I posted it on my Instagram and for some reason the SEC said yes you can be a regulation and I went through all the hoops right to do a public offering I could probably get a billion dollar evaluation for acquisition.com today because I sold so little and so many people wanted a piece and they're just betting on my brand that it's going to be worth that in the future which is fundamentally what it is because you just have to do the math it's like if I sold 0.1 percent at 10 million dollars then I would have a billion dollar company so I think I could get 10 million dollars from my audience right now to invest in acquisition.com it's at point one percent probably because also because most people are sophisticated you know whatever it doesn't matter point is is that if you do it that way at some point someone gets hosed unless the company really does grow to a business that would in based on its actual profit be worth a billion dollars so theoretically I could have I could make I could raise that money and then I would grow into my valuation and have let's say a hundred million dollars in ebitda or you know for people who know that is just fancy word for profit just leave it at that um you know five years from now but the problem is if my sales and my net profit goes up people are going to bet that it's actually worth 10 billion because they think it's going to keep going and so that's the game um and normally those round those fundraising rounds kind of results in when that when there is the IPO for that company the people who get hosed is the general public it's the retail investor who basically does the catch-up for all the investors they basically take out of their wallet um for for those people to be made whole but now they have to grow into that valuation and so those are kind of like some of the things thinking about with with the right and wrong ways of doing it Etc I have always been a no outside money guy and I do that because I I think you approach business a little differently because I think a lot of times people raise money because it's an option and so I believe constraint drives Innovation and so I would rather say okay let's say that that 500 to 4 000 example it's like okay we've got uh whatever that is an eight to one LTV attack ratio great for those who don't know what that means um lifetime value of the customer compared to how much it caught the cost to acquire them so you want a good CAC ratio yeah and so um if we have that if we have that uh eight to one ratio right I would think okay if it costs 500 is there a way that I can say can I add an onboarding fee or can I add a sign up fee or can I add some sort of uh front-end value-add product or service that can liquidate my acquisition costs so that I can be Net Zero on day one or day 30 where I can get a short-term credit line to acquire the customer that's revolving rather than dilute myself in equity and so I think it's like I I like trying to solve the problem rather than saying cool that's the that's the equation let's go um I just I I have a fundamental belief about the world that like if you ask the right questions you can solve the problem and so that's why I don't I don't raise um and I just believe that we can [ __ ] if we're if we're creative enough we can figure out a way to make it grow profitably I I guess is do people ever give you of like you don't you're not about raising money but your company is about you want people to want to raise money it's not really most of the times they're not raising money a um like not in the formal sense because most of the times the the I mean more than half of the deals we have we put no money in because we're like strategic yeah exactly so that's kind of what I was saying earlier the Strategic partner it's like well if I can 10x your business then what is that worth to you is it is it worth you know giving up a third to have a 10 times bigger thing so you are now seven times wealthier than you were at the beginning everybody wins I'm a big like expand the pie guy do you think a lot of people uh assume there's some sort of number that every business has to get to before like let's say people are building a business to get acquired is it do you think like hey I need to get to 10 million hey I need to get 50 million to get 100 or like what is your perspective on how companies view like I want to see this company have success they need to get to this certain number or I want to I see the the trajectory that I could be on I want to acquire it before it gets so big that they're that their value is significantly higher like what do you how do you think people from whose perspective I guess both like of a business owner like how much money do I need to build it to um or is it just like just build a great company and worry less about how fast you're going to get to 100 million we'll call it and from a business perspective like how do you think that they analyze businesses to acquire yeah so I'll start with the founder one so founder wise you know I would say that the big thing that we always try and find is missionaries not mercenaries and so it's people who are really passionate about the cause because somebody who's passionate about the cause will always build a bigger company because they're doing it for the reason for a different reason and so it's like the person who loves walking walks further the person who loves the destination and so when people are trying to build a business in order to sell it they tend to just have a different energy about going it's everything it just inherently is shorter yeah right but if you have an unlimited time rise and then there is no such thing as a rush and you can make the right calls for the long right and that's what we really want because you'll get the highest returns with somebody you can think five ten years out but it just won't make sense for one year or two years but like they can make a huge move that's going to make it worth a ton but if they're always obsessed about like that's why public companies it's like quarterly earnings calls like they have to think short-term because CEOs are incentivized blah blah won't even get into that but from a Founder perspective um we prefer long-term thinkers in terms of them getting acquired I think the line is just at what point do you get institutional money so institutional money would be like private Equity money and up and normally that doesn't really happen below 10 million in sales most of the time um I'm excluding tech for like seed and VC and all that this is a different game than like what I would consider traditional business which is what we're in um which is there's like this you know there's a lot of caveats to this uh like with what I was saying earlier with fundraising that tends to happen more in tech companies you know what I mean and sometimes like open AI raised a ton of money to build artificial intelligence did that make sense absolutely did they have any way of making money until it started to work no still made sense yeah you know what I mean so it's like it's trying to keep it within context most businesses that I would consider normal businesses that don't have a million x possibility um oftentimes can solve their problems if they just think about it a little bit harder but back to the founder so founder with institutional usually 10 million in Top Line Sales is minimum that they're going to really be interested in you know a million in ebitda maybe but like if I'm gonna go to market I don't really want to take anything to Market below five like in ebitda in profit per year yeah that's because that that's when you can you can get what I would consider real money you know what I mean um you know you can get a 50 you can get 100 like that's that's a a meaningful enough size and it's like if you got to ten or you know if you're at seven million and you've got one and a half million profit it's like dude we just let's just let's just get to 20 and have five and now this is a company that becomes very acquirable okay and and a bigger multiple with uh you know you're talking about all these different like Acquisitions things and how you're saying you know you could raise money from your your audience yeah speaking of your audience how did you get so popular on the internet and why aren't you verified on Instagram are you pissed about that um I mean you know you gotta be a little pissed suck you know help a brother out um no I actually feel bad about it because there's like a hundred zillion like fake hormuzy accounts that are like hey invest in my thing and so all these people get like scan foreign [Music] bucks and I'll send you a PlayStation 5 and people DM me like is this you I'm like guys yeah like Woody come on like as if you have to ask you already know um so anyways um in terms of the the rise a lot of it was because of the team so I mean the team that's off the side here that you can't see um you got Caleb you got Quinn got the boys with the z um who really who really uh packaged you know me well and make me look cooler than I am uh and so that's my goal every day it's me too um and so it's really just you know applying the same things that we did with business just to kind of media and media is very new to us I mean I've we've really only been doing it hard for I would say a year um we started doing it in general like I started posting like two or three YouTube videos a week of just me like screen recording myself yeah I think in September of 20. so it's been two-ish years um right now and so but anyways taking it more seriously and actually doing like shorts and stuff we did about it a year and change ago is when we started doing that stuff and that started growing I think a lot of it was because there wasn't a lot of people doing it we got in at the right time um yeah we've been we've been very lucky in a lot of things like that I got into Facebook advertising in 2013 you know with with the gyms and the fitness businesses so like I was super early on that I've just I've had a lot of things that just like it worked out that I got in early and we got a disproportionate return um but I mean honestly I think if I were to give you a real answer I'd I don't know you know I think I think there's a little bit of a vacuum for what I would consider real business education because most people that are teaching business don't have very big businesses and people with very big businesses don't make content and I think that's so I think it's just it's a crisscross of those two things which is a a very understandable story of legitimacy um and then the the quote advice you know that we that I you know put out there is um is stuff that people actually I get DMS all the time they're like dude I ran that promotion that you said I just made 50 Grand like all the time like dude I I changed your sales process and we tripled our sales so people are actually using it seeing the result and then they become True Believers because they're like dude this is better than all the stuff I've paid for and that's the goal you know I just wanna again like my selfish intent here is that there's a kid who's 20 right now consumes all my stuff and in four years is doing 10 million a year and it's like dude you've been on my vision board I want acquisition.com as a partner let's make it happen like that's why I do it but it's a long game was it uh you know although you have a similar beard slightly almost as jacked as the liver King you know he had a strategy of like I'm gonna become popular on the internet like it came out right well I'm 50 pounds heavier than the blower King are you yeah you look jacket let the record show oh um and you don't see testicles man yeah wood all three since level three well there was that one time yeah when I went to Omnia yeah um would uh like was was there a point when you were like I want to become I want to become a thing on the internet because you said it was like two years 100 yeah yeah so uh it was actually it was it was like a series of so I'll give you the I'll give you the long real answer which was I really wanted to be rich and Anonymous and there's like one video that Caleb was found of me being like [ __ ] content like all the stuff's stupid like I just would be rich and have no one bother me yeah um and I did that for a really long time and then what happened was like the thing that was like the first big crack is like anybody who's listening to this who thinks is ridiculous but when Kylie Jenner hit the front of Forbes and she was like 20 and a billionaire I honestly I was like depressed for a day like I really was like I think the world was depressed I was like why do I suck yeah like why am I insufficient but I was like you know what Kris Jenner organized her whole life Kris Jenner's the G she's the one who's really older like she's just a figurehead for like Chris's Empire she's also more attractive than you oh yeah right fight too if I had her butt I wouldn't even be here right um anyways so that happened but I like you know my ego is like no it's just Chris and there was organized okay cool and then Conor McGregor came out with uh proper 12 and it was like boom 600 million I was like [ __ ] he did 600 million with that well the company's worth 600 yeah oh um and then and then Huda Beauty she sold a portion of her company for at 600 million just a YouTuber and an Instagram I know and then uh and again I was like this is like this is starting to become a theme and then the rock had taramana and then now they're worth like two to four billion and so this just again it was like these chinks in my armor of like you know all this Fame stuff stupid like why would you want to be famous and so um finally I was at a buddy of mine's house he's he's very famous um who is he and I don't want to name drop him um he's very famous well I just you know I don't wanna yeah I don't blow him up okay and it's Barack Obama yeah his friend's going bar um and so okay okay anyways uh so I was there and he's like and I was like don't you get tired of like the weird messages and like letters at your door and people dropping off like threatening your family and kids and stuff like it's not like I was like that sounds horrible yeah and he said if that's the price I have to pay for the impact I want to have I'd make that trade every day of the week and I just like it just like stabbed me and I was like here I am saying that I like want to help people out and make products and services that you know serve communities and whatnot and I was like and I'm just too much of a [ __ ] to like get out there you were doing a disservice by not producing content right and that's exactly that that was like the and so after that point I was like all right we're doing it and so you know I I got a couple vendors to new different platforms uh because I just started with agencies I was like I don't know what I'm doing and they were like just send us three videos a week I was like okay and then that was what started it and then um you know we started recruiting bring people in-house and now you know our in-house teams bigger than our vendor team um but yeah so we just start you know just started pulling the thread and started getting a little bit better and just try to add new platforms you know every every few months and learn how this whole game works and there's a strategy to become popular on the internet yeah more good content I've been doing it wrong for like 10 years man [ __ ] yeah no it's like actually So for anybody who is trying to do this it's quantity first so you just have to put out a lot of stuff and you do a lot of stuff not because you're gonna get a lot of reach from it but because you don't know what you're doing and so it tells you it gives you two things one is it gives you feedback from the audience because there's gonna be some stuff that does better than others and so it's like cool do more of that and the flip side you'll also start to kind of like learn your voice because if you listen to my older videos I sound just different just less articulate you know whatever I just I wasn't doing this as much and so um quantity first and then you start to learn how to increase the quality that's like doing the more of that good stuff so you start get you're like oh why did that video do well oh is that a topic thing or did I have a good hook like whatever you start studying the things that are outliers that do a little bit better and then you really start focusing on quantity so quality kind of drops a little bit and then you start quantity kind of drops and you just start focusing on like if I put out one really good video it does way better than 10 shitty videos and so you're like I'm gonna do more of that and I think the third phase is quality quantity where you can put out amazing videos and then more of them or you know whatever your version of content is podcasts Etc and so um that's kind of how I see the some of the phases playing out so right now we're right at the I'd say cusp into the condensing down into more quality because we've just been boom quantity to learn what the market wants you know I always want to talk about like LTV to cack you know ratios and like churn ratios and like just different ways of like onboarding customers to increase lcv and like no one cares so I was like huh but I'm like hey I care yeah it depends on the audience you know what I mean um and so we we actually alternate content I mean we're going into it so we'll alternate content where it's like there's there's top of funnel content which is content that we think will just reach a lot of people and so that will like if I make something about Chipotle which is reference at the beginning of the show delicious right it got you right and so you might be you know it'll attract everybody which means the net will also include bigger business owners because it includes everyone but then to earn trust with that person that's where the track you know the track record Etc helps like having the you know the companies that we have in the exits and whatnot um but then we have deep content that doesn't get the same amount of reach as kind of like the more General content but then those people get to have in my opinion just like a deeper relationship that's my running Theory I could be completely wrong so that's how what I got from that is Chipotle is the reason for your success yes the common the common thing about among the people yes and chorizo which is delicious you made a comment about uh like uh I don't call them like fake gurus or fake business people but I'm sure that was probably frustrating of seeing seeing popular people on the internet who you're like lump sum's not right there do you ever get people that think you're a fake Guru yeah it doesn't I don't I honestly don't think much about it because I'm sure there are people who I was doing a little Deep dive and first of all I've learned to never go into Reddit forms just in your life right because the it's the dark side of the internet and some comments that I was seeing which which again is that because I was doing research about you right is that people were like there's no way that this man is just giving out information for free there's some ulterior motive right and I think someone said what you know some of your your books are super cheap and and they were like it's a strategy which it might be but like what do you say to people who are being like there's no way he would just give all this information I'm just trying to suck us for money I'm super transparent about my intention I'm here to absolutely make money but I just don't need most people's money so if I have one Facebook investment I make more than I would sell then I would if I sold coaching and programs and and courses and all that kind of stuff you know what I mean I I don't need to because like I said if I make one you know like we have 16 companies in the portfolio right now like most of them I could probably like My Equity stake is probably worth I don't know 5 10 ish million um just as a conservative medium how many you know how many thousand dollar courses do I have to sell to do that a lot yeah and in terms of a brand that I want to build I don't want to do what everyone else does so why would I want to you know I don't want to live their life and to be fair like most that like there's a cap to how much money you can make if that's the game like you can't get in my opinion you're not gonna get like ultra wealthy so for me to get to a billion I'm not going to get there selling courses yeah so I have to I have to own something or stuff that's worth a billion and so I have to play the game differently so if we were like you know he's trying to suck us for money I'm probably not trying to suck that person for money because the type of person that I'm going after understands exactly what I'm doing um so they have nothing to fear um but no I mean we have I have books and the reason I had the book it's 99 Cents and you know it's crazy it's like so many people from like Bangladesh and like Pakistan like people who really like they can buy the book and they're like get all these thank you messages which is cool um but I also think it's like part of the reason I'm doing this way is because like I kind of want to prove a point which is that you don't have to like you don't have to play the game the same way like if and I just have this big belief that if you give the most away in the marketplace you get the most over a long enough time Horizon you get the most back and so everyone gets a little bit of Goodwill and they try monitor a little bit of good what they monetize right but if you can just deposit and deposit and deposit and people are like I don't know when is the other when is the other shoe going to drop and yeah and then and then you just keep proving it wrong then that doubter that person actually ends up becoming your biggest fan like they become your biggest supporter I think people just want to assume that everyone has some evil intent or I'm here to make money they're like I'm very yeah a lot of people that'd be like saying like God Apple only comes out with new iPhones to make more money it's like no [ __ ] like of course yeah and um like what do you what do you think about we'll call them fake gurus like or people that are uh trying to sell the people who sell sell courses about how to build a business but their only business experiences so making a course about how to build business yeah so I think so this is a really um it's an I have I have a I have a lot of thoughts about this um because I I have really strong reviews about the formal education system I believe that they're the supply and demand of like the demand for income generating skills will not go away that's only going to get more right and the supply of people who could provide those skills in the formal education system was basic is basically nothing and so they their poor job the fact that they never adapted they skyrocketed their price which is subsidized by the government so that no one could bankrupt themselves out of it which created these insane tuitions and and no longer provided because they never changed so it's the same education you got 50 years ago but the markets changed dramatically and so they just sell a really outdated product for an egregious price and so the market continues to shift so every every year for the last three years college enrollment has dropped and it's dropping faster every year because gen Z is like I don't think this is Roi I'm just gonna dance on Tick Tock now or whatever you know or I'll start a business because now because like when I went to school like YouTube wasn't a thing you know I mean Instagram wasn't a thing and so like the the content that exists now wasn't there and how old are you by the way 33 samsies there you go same age same physique it's great done um and so uh this Marketplace of alternative education sprouted from demand people want to have these skills and so a market will always appear where there's demand and so people started providing that I do think that we're in kind of still early days big picture on alternative education uh because there will be illegitimate players and there will be legitimate players because if someone wants to learn a skill and someone says like I want to learn how to sell and there's a sales School what's wrong with that the problem for the alternative education scene is that is the expectations that people set and the track record that they lie about so I'll dive into both those real quick so the expectations that are set is the primary issue that people don't have a problem with formal education and do have a problem with alternative education so people spend 200 000 in four years and go into debt that they can't get out of because College promises nothing they promise nothing yeah they don't say you're guaranteed to get a job they just say you'll have four years here you miss it good luck what we do guarantee is that if you get grades we'll give you a diploma that's the guarantee and they fulfill that promise which there's a whole other conversation about expectation setting on the other hand a guy sells a thousand dollar course and promises that you're going to make ten thousand dollars within 30 days the course may be exceptional it may teach a lot of skills but if someone doesn't make ten thousand dollars in 30 days they hate the guy yeah and so even though there may be in a very real way more value in that course than they do get in the in the the four-year education and my wife's father is actually a former dean of engineering school uh professor and he said and he's like bought some of the courses and he's like making money online now he's like I would never tell someone to go to school anymore he's like I've learned so much more from these courses than I did from anything that we teach at school and so like the the the game is shifted and now also because YouTube has just blown up a lot of really good stuff is available online for free yes and so all that to say uh fake Guru in my opinion just comes down to deception so deception in terms of what you did to to validate yourself to say that you are an authority so it's kind of like the example of like I own a hundred million dollar business and what it really means is like all of the customers that I've ever serviced over my entire life make a hundred million dollars yeah and you're actually an agency that has 10 clients and one of them happens to be like if someone it's like if my if if a vendor from in this this [ __ ] happens is a vendor of mine makes like one Tick Tock a month for me and he's and then he would say I you know my clients make half a billion with C then he's even still putting clients in but some guys will go you just drop the clients and be like are you know our company is 500 million dollars a year like that's a lie right and so it's really about the premise and the expectation that's being set if someone says I was a sales guy at a company and I was a top 10 sales guy for five years I can teach you how to sell um that's a pretty straightforward like and he teaches somebody how to sell and the way that he delivers that is a course and some sort of like you know call feedback and reviews calls because you know maybe helps you get a job like that's a business and it's a demand and the person wanted to get a sales job which there is no good college career you know path for sales so the demand existed and the market created itself I think a lot of the the issues with it is that it it's like the further it goes down the rabbit hole of it starts with a good intent and then people teach people how they're going to like how to sell and then now they're like oh I've learned everything from this course now I'm gonna get some people to teach them what I learned from this person and it just gets like I don't want to say dumber and dumber but it's like less yeah less from the authenticity of like yeah the top of the funnel um it's interesting stuff it's and that's and that's so it's either it's the deceit around expectations and it's the dispute around legitimacy and I think those are the two core issues for why like if those two problems were solved and like let's just play it out a perfect scenario if someone you know if Bob Iger from Disney now Bob Iger from Disney doesn't need to sell a course because he because he's Rich enough on its own on his own but if Bob Iger wanted to sell a course on how to be a CEO and said I'm Bob Iger and I've been CEO of Disney and I promise you that all I'm going to teach you is the lessons that I've learned I don't think people would have an issue with it right they would buy the course they wouldn't buy the course whatever but like he's not gonna say if you do this you'll be CEO of a company that's where he'd get in trouble right so it's what's my legitimacy and what are the expectations that I'm setting for the customers what promises am I am I making and can I deliver on them and so it's like if we have these two things that are legit here's why you should trust me and you're not lying or exaggerating and then here's the expectation you should have and you're not lying or exaggerating I think you're completely in the clear but most people can't do that because it's so easy to just push it a little bit just a little bit and uh and get way more people to buy and raise your price by a lot more and blah blah blah yeah and I I completely agree with you do you do you well do you sell any courses on how to no no it's all free on the site you don't have to opt in you know some things I look at is and I guess some people want to have maybe uh uh they want to pay someone to have this specific like I paid so I'm gonna feel like I need to follow through with something because in my head and maybe that's just how my brain works I'm like why would you pay someone if people who are building businesses like you like maybe even a garyvee or something they're literally putting out hours and hours and hours a week of content of what they're doing how they do it tips and I'm like why wouldn't you just listen to these people so people should do that um but most people aren't that way and so there's a couple things that like uh you know a tweet that went really viral mine was um give away the secrets sell the implementation right and so you know you could make the same argument like use all my stuff and get to 100 million which you can right but you also want personalization which is like does this apply to my company right now ah okay well that requires nuance and I can't make personalized Nuance in a video right and so a lot of people think and this is the crazy thing people think that if they give away their secrets they're not going to make money but you're gonna make more money if you give away [ __ ] because you're just afraid of it right and so you sell the implementation and so to your point like fundamentally the entire Fitness industry is based on selling accountability like stop eating and move more like it's not complicated right but the heart is in the execution and so that's so to your point um should people just execute sure do they no demand market and so they're like I need help I need someone to hold me accountable I need someone to personalize it if I get if I have a plateau someone who's done this with a hundred other people before me so that I can avoid the common pitfalls and so that that promise exists in every industry you want to implement a CRM sure you can watch the CRM videos but they're probably not perfect for you or your business right now so you pay for implementation you know if you have you know a gardening thing like you can teach people how to garden but then some people like can you just do it for me sure like you know what I mean like all of these things um there's always an opportunity like you can provide all the value up front and people will still want help and I think that that's a totally Noble and fine business you help people out who want it you help everyone else for free it's a win-win with the angle of your like Mass producing production of content that is teaching people was there a point like when you made the uh the idea to become popular you know more popular than than you were at the time right yeah um did you have to make a shift in your because obviously running a bunch of companies is completely different in the time it takes to running a bunch of companies and now I need to be a public figure and produce content and be active and all those things how did that how did that shift of balance of work happen or were you just like delegate this now and now I'm I'm a instagrammer YouTuber guy um well the team's great so honestly I get a ton of Leverage from from you still have to sit down for hours and whatnot to make all these videos I I understand you're not editing them but you know to to sit down or do this yeah and yeah you're going a lot of podcasts which I'm like a lot of people would maybe think of like I'm a business owner like I can't do anything how is this guy so successful and you can go on to our podcast every week yeah I think the nature of work looks different so I think the biggest misconception is like there's you know there's people talk about like there's in the business there's on the business and then there's above the business and so like the the portfolio companies have CEOs like they have people running you know the their company day to day and then you know at Old Coast acquisition.com like Layla is actually the CEO so Layla has a much harder time of balancing it than I do um my job is more so get deal flow like that is that's always been my hat in any business that we've owned is just make sure that we have people the phones ringing and people are knocking on the door and so this is a way of doing that so this is in some ways my primary responsibility um but in terms of time right now um I would say probably one to one and a half days a week right now and that's up from what it was last year and so my goal is to do more of this so I would like to continue to increase that percentage which is different than like Gary Gary's like I'm running all day long and people are going to capture it we're going to be more purposeful about uh curated content like I'm gonna we're gonna we we will put more time into our videos into our shorts into blog posts into things like that um and I honestly the big reason is because like I actually like it I enjoy it a lot and so that's why we do more do the ideas that like all your videos of you know do this make a thousand dollars a day whatever is that do you have like a notes in your phone of like when you think I have cool ideas and then when you go to film them is it I'm gonna bang out 12 videos and change my shirt or not change my shirt or something or is it I'm gonna film one have another idea or do you have like days where you do it or is it sporadic yeah so how many video ideas do you have in your phone right now or in your brain so my video you can look at my video idea of board it's public uh oh really my Twitter okay okay so Twitter is my is my homepage so that's like it's so funny because some people are like I thought you had a ghost right I was like that's me all day long just tweeting ideas of like things that I think are interesting or funny or whatever and then the team grabs from that is like I think this will be a banger video I think this would be a great short I think this would be a great whatever post um and so all my like my Instagram posts and the short videos come from Twitter that's for me that's my easy brain dump um in terms of recording uh we've been doing every other week uh one day and that's where we do a few Longs and shorts like today is a recording day so I was recording before this and I'll be recording after this um Fridays are usually my day and so that's how we do it now now I would like to get to you know once a week so when I said a day and a half part of that's like the mental headspace of like okay game planning things like conversations I'm having around the media right um and if you include the book then it's even more than that because the book takes probably a day and a half a week too the book uh so 100 million offers is the the book that I put out um but I have a second book that's coming out after that 100 leads well yeah the gym launch book and the 100 million dollar office so this is the third book those books aren't related how do you have so much time in the day dude you're a you're a machine Layla okay Layla like Layla like Layla run [ __ ] like layla it's it's a it's a it's a travesty um if Layla were a guy and we were just business partners and not married she would be more popular than I am by a mile she just doesn't get the credit because she's a girl why do you think that is because there aren't many girls who are successful I mean like if you look at the Forbes list of female billionaires like the top girls like I don't know 12 billion dinner no she's not even close yeah um the top girl is like an old lady who has a roofing company what yeah um but like to be on the top on the Forbes on the top 100 self-made self-made because you can marry you know McKenzie basis is number one you know technically whatever but self-made uh female entrepreneurs to be on that list is 250 million to be on the guys list of top 400 so four times as many like to get on the list you got to be at like three billion what there's just not as many and who you know nature nurse or whatever but like Leia's a player you're like Layla's a gangster and the reason that my income you know catapulted as soon as she and I hooked up um it was her you know what I mean like I had six gyms but like I would you know I wasn't raking it and you know we made probably a few million bucks a year Top Line but not bottom line you know I mean it's a low margin business um and I know I'll tell you this I never felt like I had money um and then when she and I got together it was like she just she was just willing to do whatever it took like I told her um I was like the number one thing that she's just [ __ ] down like I was like we're gonna go and not sleep for a month and like walk on fire she's like all right I'm in dancing you didn't sleep for a month and he walked on fire yep that's crazy and she was down yeah like a ride or die you know 100 that's why in the first book she's that's the that's the thank you um she is my ride or die so um I think you got to find that person if you can because most people marry people who are constantly making compromises with them of like you can only work this much you can only pursue this much of your dream and either you create a super distant marriage where one person just resents the other and it's like whatever um or one or they both compromise you know and um I've been fortunate that I have a partner who wants to do it just as much as I do and so we get two times the output rather than half of my output or just one X on my output do you think that uh you know when we're not gonna live in like an alternate universe here but do you think that if you found someone that wasn't as business savvy focused determined driven as your current wife do you think it would have completely changed you or do you think that you you could you could still do the things you do do and maybe have someone who wants to live that casual second part of like the day the life the evening type of thing rather than business focused like do you think it's important for people who are trying to be that grind entrepreneur that they have to find this other half that's like them with the same business mindset yeah I won't speak in half twos um I can say for me this now that I have this I don't know how I would not have this yeah um I had relationships in the past and I have all the love and respect for those people um but the dynamic was much more kind of what you're saying which is like hey stop working let's go you know be social and do that and I could definitely rationalize the fact that it's like hey it's good to have some balance in my life and whatever but like in some ways balance is silly because like in a different saying it a different way it's like hey stop doing the thing you like the most and do something you like less that's balance I'm like why why don't I just do more the thing I like more of like a lot of it is just taking external judgments on what we're supposed to do based on some arbitrary societal Rule and projecting it on our lives and saying what we're doing is good or bad and I just fundamentally reject that like we do what we want to do and if we want to work for 30 days straight then we work for 30 days straight and we want to take three days off we take three days off like I just it just is so do you think that people uh I think there's a lot of the mindset especially with the whole you know like red pill stuff of like you know especially when you're trying to I'm not super familiar with that okay well um I guess the the best phrase to say would be especially when people are coming up and be like disregard women acquire wealth currency you know it's like um that kind of mindset of like I don't I I can't get a partner or like significant other um until I get to this point or do you think people can build something with it or um like how's your thought on people who maybe are single and want to build a business do you think they should should only focus on themselves and and not try to have that relationship balance or wait until they find the yeah I won't should because I don't believe in shoulds but um I will say if you make more money sooner you will attract more attractive women that being said they may be more attractive physically but then if they came to you because you have money then why do you think they're there and so it really just depends on what kind of relationship you want to have and so you know there's a reason that they have like the stories of like the popper and the prince or you know what where the guy pretends like he doesn't have money to find a girl who actually likes him because I mean it's great for Instagram to have the the model next to you or whatever it is so that you can gain status from that but like when you're alone at night and the person that's in bed with you you like have no shared reality and everything that they believe about the world you hate is it worth it that's some deep [ __ ] for me it's not you know uh my just to give you a little insight on my my relationships I've been I was single for seven eight years um and it was very transparent with that on YouTube and I was like the single guy for just it was like I was gonna be the single I was gonna be the cool Uncle I was gonna be the cool you know whatever um and I you know started building businesses and became you know on a relative uh very successful at what I'm doing and when I found my current girlfriend who were a year in and it's the best thing that's ever happened to me you know we got a lot of or I got a lot of you know this person's only with you now because you're successful and I think a lot of people where you say you know hey build you know get yourself uh get to a point where you know you're successful and then the the higher level of of women or Partners like will be there um a lot of people will just assume that when you get there the only people that you're gonna be able to find are people that are going to want you for your money so I'll I want to add up like how do successful people find women I wanna yeah I want to put a really important I think this is really good you want somebody who's attracted to you because of your character not because of your assets and so if the character is the thing that created the assets and that's what they're attracted to then if you lose the assets they still love you if they're attracted to you because of the assets and what those assets can do for them and you were just a part of that package then that is something that I would run the other way from but again that's me some there are people that I know who have that relationship and from everything that I can see are very content and they and they have clear expectations they know that it's a transactional relationship she and this isn't got a girl you know the guy where the guy's making it uh the girl knows that when you know Daddy has to work Daddy's going to work you know what I mean then she understands that her lifestyle is a result of the fact that he works and she's less demanding because he says I can't have you demanding and if I'm here and we'd only see each other for two hours a week and it's when we go to the pool thing and you have your girlfriends around that's how he unplugs I think it's really not about the shoulds it's about like how it works for you uh for me I want I want a partner who I can share my life with the battles the scars the things that we're going through and for me if I don't have somebody that I can share that with I feel very alone and I don't like that and so or rather lonely and so I've been in relationships where I feel unbelievably lonely because I just feel like I'm the only person going through this and so having her as my partner we can have we can have we can we can talk about business all day which is what all I want to do anyways and it's all she wants to do um and it's great you know I mean again this is just what works for me some people don't function that way and that's fine you know what I mean I would just say that if what you're currently doing is not working consider an alternative yeah I agree I agree and with building building yourself up and building maybe to get to this point where again you know relationships and you're super happy in life and you you talked about the Forbes lists um is there a number that you have in your head that I mean you're clearly someone who enjoys building enjoys creating enjoys the the grind right um you know whether you have internal improving myself I can do this I can get to this number is there like a number that will hit that will you know satisfy you well I'm satisfied playing the game and so it's like the person who loves walking versus the person who loves the destination I'm walking so I'm good and because of that I'll probably keep walking and so if I keep walking we'll start you know knocking over Milestones but I'm walking because I like walking and the Milestones just happen the mile markers just continue as you just keep walking so you know the the tangent you know the the hard goals are just Milestones that you hit but like it doesn't matter and and you're not well yeah because he has a certain point more money is not going to do anything for you right um and you know an interesting thing is always like I want to create wealth for the Next Generation the Next Generation yeah and uh it you're not so much of a tangible Bugatti you know Lamborghini guy I know you went through a phase where you sold everything I mean I know you you were I watched a bunch of videos in your mindset on how you spend your money is very interesting to me um about you know the the place where you live rather than having a house where you had to you know maintain the house and have all the cleaners yeah and even your opinion on food what is your uh like why don't you feel like you want to have a fancy car big fancy house I don't know yeah do you have any fancy watches or anything no what's the dumbest thing you've ever seen me about spent your money on apparently how much was that 350 I think and then when you got it were you like this is sick or you're like I hate myself it just it it was nothing yeah I was like this is another car you know what I mean it conferred no incremental benefit to my life so like I spend tons of money on gym equipment because I love gym equipment you know what I mean like I loved I have too much of it and I still want to buy more um and it's fun and it's one of the few things that I drive a lot of Joy from in my life where do you put your gym equipment it will be in our office that we're building okay but I mean before that it was in my house I had a full commercial gym at my house and your big uh you spend your money on I guess you could say experiences but like food like your take on food is very I I agree with a lot of it um can you explain your I only eat sour sour candies specifically sour strips everyone that's been my diet the past couple days but your um I saw something on Instagram recently and it got the comments made me want to like smash my face against the table because I feel like people take certain things for exactly the face value and they're not like extrapolating it um you said about like cooking food is dumb buy all your food what explain that yeah I mean it's just opportunity cost so like if you are if you are something I said if you were if you're making 15 an hour or more uh then the amount of time that it costs at least for me when I went to the grocery store like I made my lists checked it twice went to Costco bought all the food came back unpacked it prepped it cooked it boxed it put it in the fridge and then every time I would eat it I would take it out I would eat the food I would clean my dishes like all of that cost me more time than just working that period and then eating out like the incremental cost difference as a single guy with families it's a little bit but as a single guy if you only need to make for one oftentimes you have to cook twice anyways because like by the sixth day the chicken starts looking weird yeah it starts running a third third leg you're like what the [ __ ] is the top of my Tupperware container there's an eyeball growing in there and so so now it's like now I'm cooking twice a week right and so when I started adding up the math I was like the math didn't pencil out and to be fair I made more than 15 an hour and so for me I was I've I've been selling since I've been an entrepreneur and so I knew that if I just worked my leads for a day I would make an extra Grand so there was just there was never it just never made sense um and so my the the message of that is do the math like if you make two dollars an hour by all means you know go like go go to the grocery you know do all that stuff but if you if you make just pencil out how long it actually cost you in all the costs clean prep cook grocery shop Plant all of that cost for most people it's like 10 hours a week yeah 10 hours a week I'm like that's a that's a quarter of a work week if I had a quarter to my income and then how much does the incremental cost compared to the groceries that Delta is it more than 25 of my income that's probably the easiest equation if it's more than 25 of my income that that Delta then I shouldn't I shouldn't do it is that how your brain works whenever you go to like do anything so I was like do you want to swing into Chipotle be like well I did the math on uh how long it would take to sit in that line over there and I believe that that McDonald's would uh give me more valuable time if I go through that it's a bit cheaper is that how you're like brain works yeah 100 I want to hear with uh with optimizing your time and optimizing efficiency yeah I want to dive a little bit into AI because that's going to change the world and I watched your video and what is why are you so bullish on AI I mean I don't think we're gonna stop AI yeah yeah I mean I don't the only so interesting I think um so there's two it's like I don't even know if Government intervention could stop AI like it's just the wheels of progress don't stop turning they never have in the history of humanity to my knowledge like they don't really stop turning unless it's super Niche and there's tons of money that can squash a tiny invention like a light bulb that lasts forever and then like Phillips and all the other companies like buy the company and then don't produce the product because it cuts into their margins or whatever um but this it's already too big in my opinion and the wealth that can be generated from AI is too large for any person to stop um and very transparently I'm very afraid of it um because every other Innovation to this point has been around a specific Improvement in human productivity so the Industrial Revolution you know Revolution the Agricultural Revolution like these are all improvements in how we did things and we became more productive and the people just moved up a level in productivity this is an invention that can undermine the Human Institution because if a robot can human better than humans can then what is left for humans to do I'm scared of AI too because I've seen iRobot and I know it happens in that [ __ ] movie yeah exactly it's just you and a dog and so it's not a bad life but um but yeah so I I think that there may in a very weird way you might actually see people moving out of really developed countries into undeveloped countries because they don't have ai and they might be like back to normal that's like a weird like potential predictional throughout there um Black Mirror [ __ ] yeah you might see people moving to Africa because like AI hasn't taken over yet do you well I think one of I mean there's a lot of uh people's opinions on that uh one of the large ones I would say is like you know the the South Park like they took her gerbs you know like they're taking the jobs of the people and what's interesting is people really want to fight it because you know we want to get I understand like we want to give jobs to people but then they're when they go to the grocery store they they hate standing in line for the one checkout person but they're like they love the self-checkout because it's so fast like they're starting to like well that's okay because it's really fast for me to get in and out of my groceries but like it like when it affects them in a certain way they allow it or like don't mind it yeah but but they hate how you know at McDonald's instead of needing a person to take your order you can just tap on the machine so this is this is a clear example of the tragedy of the commons so like global warming that whole thing is tragedy of the commons so everybody has to agree that we're all going to long term do this thing and if we don't and any player can individually like benefit themselves that players will benefit themselves right and so the example you gave with McDonald's it's like no one like most people don't want global warming most people don't want uh AI to take their job but they're okay with it taking someone else's job and the thing is is that we're going to vote with our dollars in the way that's most convenient for us and so we will vote locally for the things that's convenient for us but in so doing invest globally in the thing that will put us out of business and so um I for that reason I don't think it it will be stopped because you said I think people are going to vote with their dollars that they're fine with an AI checkout person and they're gonna have a an entirely automated Starbucks like I think that they will vote that way because they'll get cheaper coffee they'll get it faster and they won't mess up the order I think it just shifts you know instead of the people working you know the the machines replaced now they will need people to build the machines or make the machines until they have machines that make the machines but then they'll need machines to build those machines that build the machines how do you think it's like when do you think it'll stop in terms of the The Cutting like I get I guess like what is the future for the jobs for basic entry-level jobs when machines and AI can do all of the things for you the chat yeah it's like things like that of write write a website write a code create a you know thing of you know where is the shift of where jobs you think are secure because people need to get there we'll go there I've stumped them I've stumped them everyone I don't know because again as soon as AI can human better than a human can it's tough like right now the knowledge based skills are going to go first which is reverse of what people thought they expected it to be blue collar like if you had asked people two years ago would say I can fix first they're gonna be like well all the low skill jobs all the labor that's going to get replaced first and then it'll be the slightly lower skilled White Collar jobs and then the higher skilled White Collar jobs like programmers and things like that and then finally maybe the creatives but it's been the exact opposite of that it started with the most creative things like making images and paintings and and pictures and and essays and words like most of human Communication in a creative venue like it can do that first and Robotics is already there in terms of being able to do better than what a human can it just hasn't become cost efficient but we know on any time Horizon that technology becomes more efficient over time and when that AI brain meets this robot body it can now do what humans can do in the real world um and so like where do humans go that's fundamentally the issue they have a four and a half year Ubi study that's being undertaken by open AI because they I'm pretty sure know what's going to happen which is that many many and like even if there are like to your point like even if there are jobs that like some humans can do most humans can't and so like chat EBT writes better than like 60 of Americans in 15 seconds as well right and that's today the question is what chat GPT 100 can do maybe writes better than all humans because there's something called the drift which is right now ai is learning from humans right it's learning from the stuff we do and it's mimicking that but in a future iteration it will learn from itself it'll it'll be AI learning from Ai and then at that point it starts to drift away from what we know to what is purely AI generated um and I mean I've been very transparent like I'm I'm very I'm very worried about what will happen for the vast majority of people um you know I'm a competitive person we absolutely have embraced AI within our company and that's because we don't have a choice as far as I see it you know I Elon has far more clout than I do and he lobbied with the government for years to get AI regulated and they refused to hear him out at all um and the thing is even if the US regulated it China won't and we need to stay competitive because if they use that against us you know blah blah blah um so it's tough it's tough it's super tough and you know like what about education and things in schools like you know they're like no school uh technology can use chat CBT it's like yeah the kids don't have phones that's like saying uh everyone don't use your ti-83s to cheat on this uh essay and you're like that's fine I'm going to my notes right now and yeah I got all the formulas written out yeah so it's it has really profound implications and I think humans are really bad at predicting things that's what I can say like the fact that AI two years ago people said blue collar jobs and it's literally the last thing that's being replaced just shows you how bad we are predicting yeah so my predictions are weary at best to go I hope it ushers in a golden era for Humanity I hope more than anything we we just you know we we do nuclear nuclear fusion and we you know we cure all diseases and we can reverse aging like I hope we can figure all that stuff out but if you can get your logo designed in five seconds and get 10 different versions who gets fired yeah and get the designer turn it alternate versions alternate colors in a millisecond in the short term and I said this in the video the short term the people who are going to do quality assurance on the stuff that chat GPT spits out will be the opportunity they'll actually have an outsized opportunity so like if you know how to write code then what happens is now you can write 10 times the code so the execution has been delegated but you still have to think is you validate the code is correct or is good or does the job that it needs to if like it can write code if I were to ask you to write code I don't know how to read code so it doesn't matter that it can write code for me because I don't know how to judge it so I still need a human to do that and that human can now check 10 times as much code or 100 times as much code which means the value of an expert increases in the short term long term once the AI can check itself and can do it better than a human can and can check millions of lines of code outside of business related things just to go a little nerdier deep on that neuralink yeah are you what do you think the future of you know we have essentially what like petri dish babies now I can choose the eye color the hair color what gender they're gonna be um and with the neuralink we might be able to was it you that I was watching a video that was you know some people can do certain tasks and with neuralink maybe everyone can have these uh attributes to them you know there are some people with photographic memory now what if everyone has access to photographic memory yeah everyone becomes superhumans what do you think of the future race if everyone's just a perfect I mean it's gonna be sick they'd be better than the current race damn I mean at the end of the day you know survival of the fittest means the survival of the most adaptable and so if you have a you know if you go from bio flash that can get diseased it can get hurt it can it ages it eight days right and you have a robot that's you know 100 times as strong can upgrade itself you can like no one gets old because you literally can just upgrade yourself as you're going um I know we're bordering into you know science fiction here but point is one in our lifetimes some of the stuff is possible you know and if AI can start innovating on its own then there was a futurist who said like AI will be the last invention Humanity ever needs to make because then it will make all Innovations after that faster better stronger than we can and if the future race is emerge between humans and Ai and Cyborg then that would be interesting the question is why they would need us robot's gonna take over it's it's an interesting take but but I I will say though I disagree that robots like how like strong they can be because I mean I can deadlift 650 pounds there's no way a robot's gonna be stronger than me period with the whole AI thing look I I do a lot of dumb jokes here what do you think about that just see cranes man with AI the whole idea is that you're offloading tasks you don't need to do back to kind of business what is What is your a lot of people you always hear about outsourced Outsource delegate delegate when do you think people need to get to the point where they are doing it like like what are things that people shouldn't let go of and things that people should let go of immediately that generally they hold on too long so again I won't say should insurance but I would say if you're optimizing towards making the most money then you have to trade up uh in higher leverage activities so it's what do I so Leverage is just defined as the difference between inputs and outputs in a system so if I do this then I get this output and so the Leverage is the discrepancy between that so if I have a one-to-one ratio I have low leverage if I have a one to ten ratio I have higher leverage right and so um when we are leveling up as entrepreneurs we need to trade out the things that we get one to two on and trade in things that we get 1 to 20 on and you just keep trading the whole way up and you just keep going and that's the kind of unending infinite game of business what do you think is like the number one thing that people shouldn't delegate like when you start a company right you have a passion behind it there's still something like what's what's the point you get to when you're just like it's you're not even you just collect a check and you don't even like live in the world of that business anymore like do you think everyone should get to that or like even with acquisition.com or some of your stuff like do you think there would be a point where you're like I don't literally do anything I just own it I don't need to look at it ever like did you lose the interest and the passion for it when it gets to that point though well if you get to that point then you're probably inherently disinterested so if you like so again I won't do shuts if you if you like doing something then by all means do it if you're optimizing for how much money can I make then it's theoretically if you can get someone to do the same thing that you're doing and do it for less than 100 of your Equity then you trade up and if you get lots of people to do that then you make more money so the idea is to actually is solve for zero so if you solve for no time no energy then you have infinite leverage on that thing and so if you have lots of zeros then you have all your time and you have checks that are coming in in terms of like life fulfillment that's a totally different question but if you have no commitments and you have cash flow that's going in then if you want to you could pursue the next business you know if that's what you were interested in or if you like painting or whatever you know what I mean um so what are the things that people should Outsource nothing you should be able to you know you can Outsource whatever you want I think it's just what goals you know what goals do you have if you love painting and your whole business is painting as soon as you hire painters you're no longer painting anymore is that what you wanted yeah some people yeah some people know because the difference is if a painter wants to make money painting that is different than somebody wanting to start a painting business and so one is a business career the other is a Technician career and a lot of people and that's actually a really big one a lot of people who are technicians love the craft and hate the business and they need to decide whether they want to be business people or they want to be technicians and I don't think there's a right or wrong answer they just need to decide for themselves and then stop their expectations about having both because the businessman wishes he could paint all day the painter wishes he could make the money the businessman you know a relative thing of that is uh I have a buddy who is a a leather crafter I guess you will he makes leather leather goods my wallet is made by him right and um we've done a lot of collabs and he has to make them in this High quantity he's physically doing everything to make these wallets and at some point he's like oh like there's X crazy amount of hours in here and I can't create out but but he wants to continue to grow the business I'm like well well bro like why don't you just hire people to make the wallets with you or to do it he's like well then I'm not going to be it's not going to be like Handmade by me and then you know he wanted to um create duffel bags but he's like I can't create these and he outsourced them you know and it starts losing touch but he's so like obsessed with him needing to like make the wallets but I'm like are you trying to make wallets or build a business yeah it's it's it's interesting and and having passion in your work I would you would you say that most people should find a business that they're passionate about I don't think people should or shouldn't do anything I think they like a few words should no I don't like should um I think people can if they if they want to make more money then you optimize for the vehicle that will make you the most money and then you do that the the whole passion piece teases at the psychology of humans because if you're just looking at first principles of like what has to happen like build the business that has the highest leverage that has the highest total adjustable Market that has Highest Potential gross profit per customer and do that that's what you would need to do if you wanted to make the most money if you're but if you as soon as you add in the psychology of humans it's like when do you get tired of this when do you lose interest in it and so the big thing for me at least is that I love business and so as long as I'm doing business I'm good and so the nature of the business doesn't matter as much and I would say a lot of entrepreneurs are that way um and so the big the big decision is do I want to be a technician or do I want to be an entrepreneur and they are very different paths and I just don't it's very difficult to have both like if your buddy like he needs to make that decision of like okay I have more demand for my wallets than I can fulfill so he has two options he can hire and train other people or buy a machine that can do the same quality thing as he can and he becomes a business owner of a wallet or leather company or he raises the price of his wallets because he has more demand than he has time and so over time his business does grow but based on quality and based on the fact that it's handmade and it's you know blah blah and his special his special touch and he kisses and he sings it you know sleep every night and so but like that's the that if he wants to keep making wallets and he wants to keep making money he will have to do that and his profits are actually going to go up he's probably not going to build a billion dollar wallet company but he could make a few million dollars a year so it's just like what does he want and I actually think that teases to the core issue which is most people don't know what they want are you would you say you're a passion business I love business would you do would you do things that for example I had a friend uh approached me years ago and was saying how much money he was making from it was super popular it probably still is to do the Amazon Drop Shipping thing and he was telling about all the money that he's making I'm like oh that that sounds really cool man like like what are you selling he's like uh uh plastic shower caddies to put your soap on yeah that I get from China I'm like what you're interested in making shower caddies he's like no no no like I was getting from China I don't give a [ __ ] about the shower caddies but I was making I was like why why do you care to sell shower cakes I'm making money like I guess it's just different strokes for different folks of you know do you like making money there's a balance of the passion and it's not necessary where the passion is around like I like the game I want to like we're like said differently I love looking at a Marketplace and finding where there's a supply demand mismatch and I know and I love talking you know to and negotiating with these third-party you know manufacturers and getting the stuff over here for as low as I can and I love marketing it so that I can get all these people to buy it but he's he's passionate about finding the opportunity rather than the opportunity itself like it's the hunt that he's passionate about rather than the product that he's passionate about which is fine it's all fine you can do whatever you know like there's a million ways to make money um or really A Million Ways To Live uh it's just and that's not good or bad in my opinion yeah but the guys who the guys who are super passionate about the product and become evangelist for it in my opinion they go the biggest the furthest because they really are it's and the only reason for that not only reason but the my bet for why one of the biggest contributors is uh people who think that way think in an infinite time Horizon and if you can play on an infinite time Horizon it's hard to beat you it's hard to beat an infinite player because you never win because they never stop I agree what everything you you said is a very like you go so in depth with it and it seems like your knowledge is of infinite expansion right and uh it's cool to hear you talk [Laughter] it works you probably you probably like hearing yourself talk with the with the headphones on it's a trip I'm still like I feel like I'm echoing first ever podcast that you've done with these first ever what do you think your biggest single trait is that has allowed you to get to the where you are now man you know the first thing that came to mind Chipotle luck I mean a little bit of luck I mean there's the luck skills got a lot of luck yeah yeah I was born in America I was born to uh higher SES income family uh my dad was a doctor and I was an only child so I got personal training from a doctor on how to Human a lot of people don't have that I I was born genetically gifted for muscle I put muscle on really easily I can tell I I had a bilingual family so French was my first language English was my second language when you have when you're born like I didn't pick that I just got that but it develops better language centers so you were you're able to take on more languages faster more easily you have better vocabulary if you're bilingual or more um I I mean and if the average person around me was a physician then the the words that they're using are higher I mean it's just higher grade level in general um and so like all of those things together like I think the stars were already aligned for me uh and so yeah the single greatest thing was locked I already was like at the five yard line that's like a really that's not the answer that I would expect really from anyone what would you tell the people who don't have the luck which would be the majority of people right of yeah and no there's a lot of people even individuals that I know of what was me everything bad happens to me there's this black cloud following me I'm I can't be successful because of this because of where I live because of the like what words do you tell people who have the complete opposite upbringing as you well you that want to have that want to be you well you you stay in poverty until you learn all the lessons that poverty has to teach you and the first two words that get you out of that is my fault and so even though it may be true that you were not born in America and your parents hated you and you were born with one language and everything was stacked against you as long as you keep your finger pointed outwards to all the reasons that you can't be successful you will guarantee that you are not but until you say like well what things are under my control and the fact that I'm not doing at least those things is my fault because those are the only controllables and then just piece by piece Brick by Brick going from there damn what an answer didn't expect to get so deep on this podcaster hey man this is good man well I don't want I want I want to kind of wrap it up because I know you're a busy man you got to make 800 pieces of content after this yeah Millions why not to spend any money cooking your food and uh I just want to say it's been an honor to to meet you man and um again I'm a relatively new follower of your content and it's uh really cool to see what you've done what you've built is there anything like uh what's next for Mr Alex we're going to uh continue mastering the mundane middle you know the starts fun the Finish is fun but the middle is the is the part that no one wants to do and that's that's what we will do we will do the work and you're gonna are you gonna you're gonna get to the I don't I don't want to disrespect and say the 100 million dollar man obviously do you think you're gonna you you're gonna get to the billion dollar man yeah I mean unless I die I mean that could definitely happen I mean [ __ ] AI robot comes and smacks it dude I could die I mean very I mean but I think a lot of high rise and like because thing is it's like we're on a conservative estimate we're worth probably about 100 million bucks now um you know if I value the other things more than it'd be hard though but like conservatively it's about 100 million bucks if I do nothing uh over if I put all of that just in the s p and did nothing at 30 years from now we would be worth over a billion so if I do nothing we'll get there and so as long as I don't lose money and do something really boneheaded so it's like I can't die and I can't do something to get me to zero so those are kind of my my two big risks and so as long as I don't make bets that would get me to zero and I don't die I think there's a high probability that we'll get to a billion wait wait you said something there you said you're going to put all your money in stocks and you're going to be worth a lot more that's not what's happening to me because I put all my money in the stocks and I have less money we got to put it in now you got to buy the [ __ ] dip man it's just the never ending months later it's like it's still 40 down well you got to buy more of the depth and you're like I don't have any [ __ ] money yeah there's no more tip to buy yeah the dip keeps dipping man well thank you so much for coming on the show I'm gonna put all of your socials businesses books down in the description if you guys are if you haven't if you're living under a rock and you don't know about them go check them out a lot of knowledge uh you know and doesn't film it in his garage really exciting stuff we had here hopefully uh my jokes didn't come off too stupid and uh I mean dude you can deadlift more than a cranes I mean that's all that matters that was my biggest takeaway I really can you're telling me a crane can dead lift everything I should do a YouTube video of you versus a crane it's the old John Henry story you should do it you versus a crane well I would win I know that's why it would be a viral video actually one one more question do your viewer Jack dude what are your what are your three max lists what are your bench Squat and deadlift I haven't maxed out in years um that's that's someone who doesn't have a high Max would say I don't know I did 475 for 20 or 17. so wait on what I was deadlift um 475 for 20 17 I think I gotta actually I've tried to count the Reps in the videos a lot tap and go yeah straps straps yeah okay you did about five reps that's all right No I um I think I I benched 390 uh I got four or five I'd be four or five is like so close I know yeah bench 390 um I scored a four five for 20. uh four or five for 20. um that was bigger though they're big those legs they're big those Birkenstocks yeah did you squat in the Birkenstocks no no no no no no um no but I was bigger than I was two I was 235.

1:28:13how much do you weigh now like 2 15 ish never in my what's it like to be over 200 pounds because I will never in my life be you could totally be over 200 pounds now I promise you man you see these legs you think you think the mass is going to go here it's not going here I can squat I've squat I've squat 501 pounds in competition with these little [ __ ] ham hocks it's amazing the mass doesn't apply to me I don't gain weight well I so not eating enough take whatever you want but um you know I had this thing where I couldn't get over 200 for a really long time so like I trained for guess what was I was 20 23 I've been training for eight years at that point and so that was the last time I powered so when I was 181 and I was 21 was the last powerlifting competition I did um and that's when I was at 181 I did I think four seventy-ish first Squad and deadlift and then I benched 340 when I was 20 20 or 21 whatever that was um and I just I was like I'm a hard Gainer and I looked honestly I looked at a very similar build to you sounds like an excuse right yeah it was and it was like I've been training for eight years I'm already passed all my newbie gains like this is all I can achieve naturally um and then I read uh this thing by John Meadows about insulin and I was like huh okay not injecting it just like eating more carbs um and so I started eating more carbs and then I started Living with a guy named Greg Knuckles if you're familiar with him if you're in the power thing he's friends with Sonic right Greg Strong as [ __ ] yeah uh oh yeah Greg can you teleport a crane uh he can he can develop more than you um he's very strong uh and he basically reframed my whole thinking around a lot of stuff with volume and so he got me going on way more volume than I was used to from the powerlifting days and so you know I used to only train pretty much like six and under you know like anything over six is cardio you know what I mean um reps yeah there you go and yeah reps right and so I started trading tens 15s 20s 25s 30s you know in terms of reps and I just blew up sounds miserable oh it was horrible um and I started eating like a tank and um eating a lot and I I grew and it had been after almost a decade and I you know I was an advanced you know lifter at that point and I competed and and and then and then I just started doing all this volume and I never really went back to powerlifting that's why like those rep the rep ranges when I was like 17 20 all that stuff that was because I just never needed to max out anymore I just didn't I didn't care I remember like I I would hit a PR and I'd look around at the gym and no one gave a [ __ ] no I make sure to I have like a deadlift ritual I jump around and kind of go oh I make sure that everyone in the gym is watch when I'm dead lifting that's that's good um I've always had most of the time I've had private gyms so like I haven't had people around me so it's just been like a silent victory of myself and then I'm like you know anyone see that yeah my hips kind of hurt and uh no one cares and so I just I was like you know what for me what was more functional was looking jacked and so I transition like that like I remember because earlier on I was like that's not functional like blah blah blah and all my piloting buddies used to make fun of me because I would stay afterwards and like do dealts you know I mean like do my calves and stuff like that they'd be like ah he's got a good speech party you know whatever um but it was way more functional for me to look jacked in my life every video I use it versus you know whether I can you know wait 12 weeks do a shitload of joint stress and then like add another you know 15 20 pounds of my deadlift I mean to be honest it's it's kind of I've been powerlifting for a long long time and it's like what's the point of being so strong while looking like this you've motivated me dude 2023 we're going to 200 pounds ladies and gentlemen you can do it I'm gonna dude I'm dead [ __ ] serious the amount of the the amount of food that I would have to eat is like a it's not enjoyable it sounds like you're saying it's hard no it versus I can't do it no no no I'm saying like back in college days I would do the you know cup of oats milk peanut butter you know olive oil all that [ __ ] I don't want to [ __ ] drink that anymore so it just was so getting into 200 is not enjoyable for you correct okay you can't do it and I would the process of going from like 175 to 200 and to look good at 200 would the process to get there I would hate the way I look on a daily basis you could do it slow 2024 we're getting the 200 pounds ladies and gentlemen I've been inspired that will wrap up this episode make sure if you're watching on YouTube to comment like subscribe hit the notification Bell and if you're on any sort of podcast streaming service first of all go to YouTube but then leave us a five star review thank you so much for tuning in eat more sour strips and ever forward that was fun appreciate it get acquired thank you so much man dude I I couldn't get past like dude I had like serious like 182 I was stuck there for [ __ ] ever 191 I got stuck there forever and then I cracked at 205.

1:33:08um I stayed there for a long time and then that's when I started doing all that volume stuff with Greg and then that got me to like 2 20. and then I did another cycle of that um and I got to 235 [Music] [Applause] oh [Music]