Wie man 100 Millionen Dollar Unternehmen aufbaut

0:00Good evening, friends and neighbors and Hormozis. Tonight's special, we brought out the good stuff. Tonight, Alex and I go deep when Ryan has whiskey. We won't tell you about the last time we had whiskey together. It got a little bit out of hand. Alex, I'm so pumped for tonight. I have this weird energy about me. Like no one wants to be around me. Children are afraid of me. I'm so pumped to talk to you. Um dude, you're you're blowing up. For For everybody For For every Anybody who doesn't know Alex, the thing that is amazing to me about him is I He and God have a contract where God is like, "Look, Alex, whatever you want, just don't hurt me."

0:50That's what That's what happens is Alex is just like, "Listen, I want to be the world's most jacked billionaire and if you could throw a million YouTube subscribers my way, it wouldn't hurt you." And God IS LIKE, "ALL RIGHT, FINE." AND then Alex is just like it just it just happens. And he's like, "Volume." Volume. So, dude, you have you have the number one book in its category and you haven't even announced it yet. You're getting like 3,000 subs a day on YouTube. Um you have 1 and 1/2% body fat.

1:27What's it like? 12-in personality. Um It's It's uh it's great being friends with you. You always make me feel great about myself. Well, give it a minute. Um For For any of you who saw my email recently or as I said, I have friends who make me feel like the fat kid, I was talking about Alex.

1:57Because I would just to be a pastor and God does not listen to me like he listens to Alex. Hey everybody if you if you are watching live please say hello in the comments so we can say hey. Oh what's up Javier good to see you. Hey Sarah. Hey Felix. Hey Brandon. Hey Soufiane's back. What's up dude? Hey Brandon. Good to see all of you. Paulina is hanging out in the green room. Brian's hanging out in the green room. Jason's hanging out in the green room. Good to see all of you.

2:28Hey Clement. What's up buddy? Hey he's stuck in Canada hanging out with us. Dane's here. Felix is here. Hey Toby what's going on? Hey Dane. Hey Tony. We could be here for a while cuz the the delay just caught up and now they're pouring in. So we're just going to go ahead and jump in guys. I have I have a total blatant pitch and ask tonight.

2:53And it's going to cost you ladies and gentlemen. Let me let me tell you. Alex we all know the secret reason that you really put out a ton of content on the internet and it's cuz you need to get rich selling 99 cent books. Right? And I know you get like 35% of that from Kindle. So you're like I know that's the real reason selfish reason why you're doing all this. So so Look the man's got to eat. He's got to feed these biceps and we have a book it costs a whole 99 cents and you're going to have to go all the way to Amazon to get it. But this is what I'm going to ask all of you to do by by the end of tonight. In fact you should start doing it now. You should go to amazon.com search for Alex Hormozi hit the buy button and review the book once you've read it.

3:45Like review the book. We all know how this works. You are most of you are Amazon sellers. You're going to leave a review, a good one for Alex's book, because I can guarantee you that it's going to be the best book that you read all year. Best book I've read in a decade. So, if unless you're 10 times better than me, it's going to be the best book you read all year. So, Alex, I've told you this privately, but but the thing that I admire about you and and the thing that is so impressive about the fact that you have your Well, your total your total revenue is like $100 million on your main businesses. You have uh businesses that give you 10% of top line just to be an an advisor.

4:34Um and this book is going to go nuts. They all have the thing in in common of your emphasis is on really quality product. And that's not how most internet entrepreneurs approach things. Could you comment on your approach going on in like into any new business?

5:00So, I thought it would be appropriate for a book that was about the product to be a good product in and of itself. And so, I thought I would have to spend an inordinate amount of time on the book to make sure that it was really good so that I could be so I could hold up to the standard that I was trying to tell people that it matters. Yeah. So, um if I'm looking at a business, the first thing that we'll usually do is look at like what it What is the value that you are providing, right? Like what What is the amount of value that's being provided the end user? And is there a way that we can repackage that value to enhance it? And the repackaging can happen in a variety of ways. And I go through that in the book in terms of like can we do more Can we make things happen faster? Can we make things happen easier? Can we do it with less sacrifice? Can we you know, those types of things that we can recombine it? And that's in a real way.

5:46But then on top of each of those things we think like can we do that in just a perceptual shift? Like is there a way that we can change the way they're perceiving the value that they are getting from the product? And a lot of times those are almost more valuable in a real way than even changing things about the product itself. Would you would you comment a little bit What do you mean that the perception can be more valuable? So I'll give you I'll give everybody here like a simple example. So there are things besides the actual thing you're delivering that create value around it.

6:17And so if I were to say hey we have two surgeons and you want to get plastic surgery for whatever reason. And for one surgeon it's their first surgery they've ever done and another surgeon it's their 10,000th surgery. Which of these would you value more? Now mind you it might take the first guy twice as long to do the surgery compared to the second guy. So you're going to get half the time of the 10,000 rep guy compared to the one the first time rep guy. But you still even though this guy's going to take half as much time with you you'd still probably be willing to pay the 10,000 guy more. And that is because perceived likelihood of achievement is one of the things that creates value in a product. And so if we can bake these different lenses or layers into the value that we're providing then we can without actually changing our product itself make it more valuable.

7:02Yeah I have a an old mentor he used to describe this as the magician versus the mule. Yeah the the mule is paid to go out and work all the time gets kicked when it stops. And the magician goes the field is plowed. And and we overemphasize the effort or the time going into it sometimes when we're the provider but in the user's eyes they just want the field plowed.

7:29And one of the things that reading your book reframed for me was like I get intellectually the idea of developing a product that is customer-centric but in reality my actions have always mapped that of a marketer. It's been, okay, how do I make this dance on the page, rather than how do I create the absolute best fulfillment possible. And when that's the foundation of what you are asking, then marketing and sales is still important, but it's really easy to do. You don't like one of the things that I I really love about the way you advertise is your headlines are just like it it it like you don't have to make them sexy cuz they're already sexy cuz of what the person wants.

8:24So, yeah. Big believers in marketing, the actual, you know, the product itself rather than the promise and letting that kind of take care of it. So, like we're big on like for everyone who's listening right now, like we're really big on tracking the data um of client success, you know, on averages. Like you probably don't see a lot of like internet marketers, for example, saying our average client makes X in Y period of time. Like no one says that because most people's average client is zero, right?

8:50Well, rather than I'd say the median client would be zero, right? Um and so for us it's actually a KPI that we track within the business and that's one of the KPIs that we that we drive towards, which is like how can we get the average revenue collected, you know, per client up within the first 14 days, the first 30 days, first 60 days. And so we track all those things cuz we know that the more money we make our customers, the more everything else happens. And one of the you know, some of the truths like there are certain truths that things that you discover, at least that I feel like I've discovered as we've been on this journey, is like the more money that we make other people, the more money we make, period.

9:21Um and that like and and I think that just putting that hat on has been is I mean that's what this book is. Like I know that giving away the book for 99 cents and a course that accompanies it, like I'm sure I could sell it and I could sell it to a coaching program and I could do all that, but like I don't want to do that, and I enjoyed making it, and so that was kind of the point of doing it. One of the things that you you say in the in just the description of the book is that you are out earning, you know, the CEOs of publicly traded companies without having upsell flows that were dialed in, without my goodness, without sending emails to your list, you know, with like with without doing a bunch of complicated marketing. Would you Would you comment a little bit about that?

10:06Because like you're you're in our world, and like the entrepreneur world, you're most famous in like the funnel hacking uh you know, one-click upsell, like that that world, but you use that as a tool, it's not your business. You You haven't had a lot of that dialed in, and you've still made tens of millions of dollars. So, would you would you comment on that?

10:30Yeah, we're embarrassingly bad at most things. I just I think I think most people, at least when I when I talk to a lot of entrepreneurs, I think one of the biggest skills that's important is learning how to discern priority. Like what is important? Like there's so much information, right? So, it's like all this stuff is coming at us. Like what is most important? And we have such limit like we have such limited resources like as entrepreneurs, such limited resources, capital, and the biggest one just being attention, right? We have such limited attention for ourselves, but just as importantly or more importantly, our teams. And so, it's like I might only be able to move one or two rocks forward this year. You know what I mean? Like really, like big important things.

11:08And you kind of have to commit to whatever that rock is, and if you can't pick the rock, then you move zero rocks forward, right? And so, people are like, "Well, I can move nine things forward." It's like, "Yeah, but you got you didn't actually get any of them done correctly." So, it's like you have to really, and I think developing the software companies would taught me a lot about this, but it's like you only have and we have to commit that this is the one thing that we're going to do, and we're actually going to do it well. And I think picking that is one of the hardest things, but if you pick well, then a lot of other things kind of take care of themselves. And so, like coming from the marketer world, the reason a lot of people cap out is because they have zero word of mouth. If anything, they have negative word of mouth.

11:43Like literally word of mouth works against them. And so, Yeah. Like I mean, we even talk about like in the in the marketing world, it's like fighting refunds. You know, you're just you're like you do all the market like all the sales on the front end and you're like hoping people don't refund. And you're And I And you're saying, I mean, like or if you're just really good to your customers, you get a ton of word of mouth and no one refunds anyway. Yeah, and I mean, we do a lot of stuff that's kind of unheard of. You know, we do we run free trials. Like anybody can sign up for our program for free. Like you don't have to sign Like you don't have to pay today, and yet we still get 45% of our clients prepay the entire thing within the first 30 days. They choose.

12:25They don't have to. Um and so, it's like you have somebody who can try something, they can choose not to buy it. And not only that, they choose to prepay the entire thing, you know, within the first month when they had the option not to. And I think that's just it just speaks to you like how can we how can we onboard customers the right way? How can we activate them? You know, what are the leading indicators we know that are going to create a successful customer, and how can we reverse engineer that? And how do we know that what that looks at at day 30? What do what do what does it look like day 60? What does it look like day 90? And then, when we focus on those things, we can drive up our lifetime gross profit per customer so far beyond what anyone else in our space can do, it makes the marketing as ugly as mine is still wildly profitable. And so, I mean, one of the claims in the book that you that you heard is that, you know, we have a 36 to one lifetime return on advertising. And right now, it's actually a little higher than that.

13:08Um and so, for every dollar we spend, we get, you know, almost $40 back. And that's been over my entire career. So, that's not like this one campaign that we talk about because I like sent a DM to someone and, you know, like followers and made a $4,000 sale. That's every dollar that we spend. And so, I think it's because we focus on the back end and and really seeing how can we deliver this thing faster? How can we make it more convenient for them? How can we deliver it in the channel or medium that they want to consume it in?

13:36Um how can we how can we do this so that we can decrease the effort and sacrifice on their behalf so they the stress that they have to go through. What are the What are the hoops that they normally would have to jump through? How many of those hoops can we jump through ourselves? Um and so and by kind of reversing those you know how can we increase their perception of of likelihood of achievement because if we can get somebody who's more convicted that what we're going to do is going to work then they're actually in a very real way going to receive more value. That's right. That's right. And I I want to point out something.

14:04Alex, what does before one of your target clients meets you, what is their average income? Uh $2,943 a month. That That was very specific. I just know the average so it's like 36 a year. So like all right, so everybody listen. Alex's average client when they when they sign up with Alex, his customer makes on average $36,000 per year.

14:33Alex, what is your least expensive product cost? Oh wait wait wait wait hold actually actually for those of you who are watching live, put in the comments what you think Alex's lowest his self-liquidating offer. His front-end offer. My tripwire. What is his What is his lowest least expensive product cost? I want to see. Tell me.

15:03Average client earns $36,000. All right, we got $1,000, $10,000, $9, $47, a free book. $99, $1, $9.99. Oh, $4,000. All right, Alex. What What is your front-end offer cost?

15:30It's 20. $20? 20 20 grand. Yeah. $20,000 Yeah. is your is his low-end. Listen, this is an important point here. First of all, we just shattered a bunch of beliefs.

15:53Ah, but I can't sell an I can't I can't sell my candle for 40 bucks, you know. Alex's client makes 36,000. His lowest price product costs 16 grand. And you just heard him say that after they join, they voluntarily pay it off early. Why?

16:19Because the entire product is focused on getting wins and results for the customer. And what what's your highest tier program, Alex? It's 42,000. 42,000? Yeah. And you have quite the take rate, if I remember correctly. Yeah. I think we have um I think we're at 60%. I I 60%? Yeah.

16:42And uh these people are strong-armed and wrestled into upgrading, or they choose voluntarily? They choose voluntarily, and we let them try it out before they can choose to pay for it. Okay. You guys seeing this? The The entire structure of how Alex thinks is how do we remove all of the barriers for the client for the customer to get the results that they want. And if we do that really well by removing as much friction as possible, then they will voluntarily line up to give us money.

17:16It's kind of how business works. And that's why Alex can spend money on advertising to put people into his pipeline and win and beat everybody else. Am I remembering correctly that nobody was doing this when you started and now everybody is trying to go after the same market? Am I remembering that right? Yeah, I don't think there were many gym gurus at the time when we came into the marketplace. I think the the one guy who was selling a high-ticket course was selling it for $5,000.

17:45That was like the high leader at the time and most guys were selling $500 a month Facebook ads like done for you stuff. For like four gym owners? Yeah. And then you just you just came in totally owned the marketplace and then a bunch of people copied you. And I I like the story of there's people out there who are teaching it and claiming to be successful at it and then you look at their books and they're not so successful at it. Um and you're you're winning because your clients are getting results more than anything else. That, my friends, is how you put together a $100 million offer, which is the name of Alex's book, which you should go buy on Amazon right now for $0.99.

18:28Alex obviously needs the money. He obviously needs you to go buy this book and I need you to go leave a review on Amazon cuz you know how this game works. Uh Alex, I was hoping we could spend a minute or two talking about the ethics of charging $20,000 to someone who makes 36 grand because you lay this out and I love the story you tell about your dad. Um would you tell that story and explain how you think about going high-ticket? Yeah.

19:05So, um I guess I I can try and tell it half as well as I do in the book when I had lots of practice and got the words right. But, um I had just posted a picture of our Gym Lords event. This is pre-COVID. Um and I think we had 800 sorry, 700-ish people in attendance. Um and I posted it and I sent a picture to my dad or he messaged me. I can't remember what happened. Um and he was like, "Hey, I thought this was supposed to be the meeting of like your your really highest level group."

19:34Um which is the $42,000 a year group. And uh I was like, "Yeah, it is." Uh and all of a sudden he uh like calls me up and he's extremely concerned. He's like, "Do they know that you're that that they're getting billed that much?" I was like, "Yes, they're aware. I'm not magically siphoning money from their accounts. Like, yes, they're aware." He's And then he asked, "Is that legal?"

19:58Um and to which I responded, "Yes, it's legal." Um and he was like, "Well, I And I could tell that there was this pause of like major concern." And I was like, "All right. If I could make you $239,000 extra this year pops." I was like, "Would you pay me $42,000? If you knew beyond a shadow of a doubt that you would do that. Like, would you pay me $42,000?" He was like, "Well, what would I have to do?" I was like, "You'd have to work 15 hours a week for it." He was like, "Okay.

20:25Um well, how long would it take?" And I was like, "It would take 11 months to make the entire entire money back." He was like, "Okay. Would I have to pay for it up front?" And I was like, "No, you could pay for it as you started making it." He was like, "Then yeah, I would do it." I was like, "And that's why they do it, too." And so, for perspective, like as much as Ryan talks about like the numbers and a lot of a lot of people have talked about our numbers out of context um and explained our success without actually being in any way associated with our company. Um as it's the funnel, it's the marketing, it's the whatever. Mhm.

20:57client that we work with makes an extra $239,000 top line revenue. They on average triple their profit. It's 3.1x their profit. They take their take home income including our fees, net of our fees, from $29.50 a month to $8900 a month. And so, you're taking someone from $36,000 a year to $100,000 a year on average, meaning half the people make more money than that. And so, yes, we charge $42,000 a year in order to help someone go from $36,000 to $100,000 on average. Um but, I think that that's more than reasonable considering what we, you know, our efficacy at doing that. And you know, we purposely niche down because we understand niche pricing, and we know that we can provide a better solution than anyone else can for a specific avatar. So, it's like, if you are this specific type of person, and you run this specific type of facility, and you have this specific problem, we can solve it, and we've done it 4,000 times, so it's very unlikely that it's been chance at this point um to, you know, hit the however many inches of It's It's possible. It's It's possible. It's possible, it's not It's not probable. And so, that that's kind of the the the overarching scheme, which is like, everyone always looks at like, how do how do I How do I What's the trick at selling this more? But like, there isn't a trick because at a certain point, most people on here are probably have some level of conscious, right? Like, you have some morality, you have some level of ethics. Not me.

22:16Not Ryan, but most people, right? And so, you have this level of ethics, and so, what ends up happening though is that if you don't actually deliver to the vast majority of the customers that you have, you will self-sabotage. You will stop selling, you will you will give yourself reasons, or your sales team will give you reasons, or your customer support team will give you reasons as to why we shouldn't continue this business. And so, like, you have to sell yourself first, and the only way to do that is to truly be convicted. And like, the thing is is you can tell people you're convicted, but like, only you know if you're putting 100% of the effort that you that you could possibly put in to making the product better than it currently is.

22:52Yeah, I Again, Alex is speaking for himself. Not all of us have consciences here. I am a Johnson & Johnson shill. Uh this this This live is brought to you by Johnson & Johnson. They sponsored this for me to shill out everybody getting the vaccine. So, not Not everybody has a conscience. I don't. Um Alex, I wanted you to comment on for those of you who do have a conscience, I wanted you to comment about the the actual ethics of charging high ticket because in your book you talk about Yeah. I don't remember if you said this or if this is my own words, but charging a lot of money is the most loving thing that you can do for your customer or client.

23:36Yeah. Um would you speak a little bit to that? So, I've always been a premium service guy. So, even when I owned my chain of gyms way back in the day before I switched to doing what we do now and now we have our portfolio companies. Um and it was because like I want to be cuz I want to sell from a place of certainty. I want to sell from a place of conviction. And the certainty that I want to have is not that I am certain that the person will achieve the result because I cannot be certain that someone is going to eat the food that I told them to eat. Like, I'm not certain that someone can go to the gym, but I can be certain that I'm the best chance they have at being successful.

24:07And so, that's the pivot that you have to make internally is am I truly Am I certain? Cuz that's where the certainty will come from. Because anybody who says they're certain that someone's going to get a result is lying to themselves if there's anything that the client has to do. And most people who are in a coaching space or education space, whatever it is, the client has to do something. They have to do something. I can teach Spanish and some people are not going to learn Spanish. I could be the best Spanish teacher in the world, right? It's going to happen. And so, the question is Spanish a scam or are there bad students?

24:33There are also bad teachers, right? And so, the the Well, we need to build a wall, Alex, cuz Spanish is a scam. And so, I'll I'll I'll I'll talk cuz I talk at length at about price in the first third of the book. Um but I'll give you a couple of examples that I think might drive this home. So, first off, from a value perspective, people will value things in and of itself. Like, I talked to you about there's different layers of value, right? Like things that you can change outside of the product that will inherently make it more valuable. So, they did a blind taste test with uh three wines, a cheap wine, a middle wine, and expensive wine. And the taste testers asked the people, you know, rate the wines. And they concurrently rated the wines, you know, better, you know, bad, middle, good according to price from poor, you know, from cheap, expensive, whatever, right? But, what ended up being the truth is that when they revealed to the people that all three wines were the same.

25:22And so, in a very real way, price provides value to a prospect. And that was on a consumer good. Now, when you you can put that on steroids when it comes to an educational product or something that has to do with training, there is more lure around expensive things. People want to buy expensive things. People will become more convicted the more they invested they become. So, people pay who pay attention, right? And the more they pay, the more they pay attention, right?

25:48That's right. The idea around this is that it is more ethical if I say that I am trying to best serve my clients, and I'm claiming that this is the best chance that they have of being successful, then I must use every lever in my arsenal to get them invested in their own success. And so, I call this the virtuous cycle of price, but the more someone pays, the more invested they are, the more invested they are, the better the results they get, the better results they get, the more convicted your sales team is, the more people they sell at higher prices, the more profit you have to reinvest in the fulfillment to get more clients results, and around and around you go. And then on top of that, for you as the business owner, you become more convicted, your self-worth improves, the impact you feel like you're making increases, and you continue to have this virtuous cycle. On the flip side, and oh, and as a final one, people who pay the most are also the lowest maintenance.

26:47You have the absolutely correct. Easiest ones to deal with. But, if you flip that entire equation, it's like you price your books so high at $0.99. You do not want annoying readers. Yeah. See, I just don't want annoying readers at all. Um the flip side of this is like if you if you cut your prices, all of a sudden you have less money for fulfillment. People are less emotionally invested. You attract the worst quality customers. The conviction of your sales team drops.

27:12You have less profit left over to provide a better product, etc., right? And so, it's a virtuous or vicious cycle of price. And you if we are claiming to be ethical individuals and we are claiming that we're going to create a product that's going to have the best chance at getting someone successful, then we must anchor in such a way that we're going to get them the most invested so that they are successful. And everybody, this is why socialism sucks. Alex just explained it better than I've ever been able to do. This is why socialism sucks, right? This is why capitalism solves problems and socialism kills people and puts them in jail.

27:47Right? That's just that that There's no profit to be able to run a country or to run or solve problems. You have to have profit to be able to do it. So, And I my favorite thing about all of this is you having the conviction and the certainty to be able to sell something well or to sell something at all. Like and and when you have conviction, you can Look at Donald Trump. You can say words that don't make sense and people will buy into the conviction that you have for the outcome that you want to create. And so many entrepreneurs in our space, the internet online business world, are are trying to find the system that creates money because they are not certain rather than about doing what they are like selling what they are certain. And that is what creates the results and the success. And the thing that shifted me in your book was that if you put in the the required time and commitment to making the product that you have conviction is right for the client and the customer, you win because you naturally out-sell, out-market, and charge higher prices, get higher profits, can more can have more convicted sales people over and over and over again. And you said something when we hung out last week about having these levers that you know that you can pull.

29:20Like, I know that when I spend more on advertising, I make more money. When I hire more sales people, I make more money. Because you have the foundational pieces there in place. And if you don't have that, then those levers can make you broke. But when you have that core foundational piece, you can pull all these levers and everything starts to grow. Is that a fair summary?

29:44Yeah. 100%. And would you would you talk a little bit about those levers, the more advertising, more sales people? Yeah. When I looked back at my um when I looked back at like business decisions over time that have like consistently uh concurred with with making more money, uh hiring more sales people in general makes me more money. Spending more dollars on advertising as a whole, when I spend more money on advertising, we make more money. When I raise prices, in general, we make more money.

30:14And so, these are just these have just been recurring themes that have happened throughout our business career and um and so, we we try and do them, you know, as I don't want to say as frequently as possible. Well, especially I mean, sales team and and things like that for sure as as frequently as we can. Um but yeah, those are I mean, those that's that's how we've done it. So, Alex, I there there's a question that has come up you know, we had we posted the podcast that we did together uh uh just a few days ago. And I've had this conversation come up quite a few times. And I was hoping you could speak to it. And it's the question about how your mindset and your methodol- your methodology applies to physical products. So, a lot of my audience is Amazon sellers. Amazon is kind of a naturally incentivized to have the lowest price. That's what they want to drive up. They want to have a lot of volume. And uh and it's it tends to reward people who have the lowest price. And so, in the e-commerce world, we're definitely skewed to to to the Walmart model. Yeah. And and it completely flies in the face of what we're talking about. How would you reverse that trend as an e-commerce entrepreneur? And and by the way, everyone, Alex is not busy enough, so he also runs like a 15 to 20 million dollar a year physical products brand as well.

31:35Uh am I underestimating you? Are you over that? No, I think it's like 16. Oh, okay, 16 million. Awesome. Yeah. Peanuts, but um But so, he's done it. So, would you please comment on how you would reverse that trend? So, the first question is just do I have to sell on Amazon? If I do, then I'll like I can answer that way, but if I don't have to sell Let's Let's go there. Let's You're talking to You're talking to an e-commerce entrepreneur who sells a million dollars a year across three to four products on Amazon exclusively.

32:07Okay. But they're getting squeezed by price wars and competing on reviews, how do you reverse that trend with that person? On Amazon? Yes. All right. So, if I'm on Amazon, so there's a section in the book where I talk it's called the delivery cube. But basically, there's ways that you can peel apart your product, and it it's a cube because there's six sides to it. Um but this is like when I'm thinking about ideating for a product, uh this is the process that I kind of go through. And if we have a physical product, it's how can we add any kind of premiums that cost us nothing that are still going to be valuable. And so, I'm going to just give you a hypothetical example just drive it drive this home.

32:46All right, so let's say we had a massage like I'm going to tie it back to physical products in a second, but just bear with me. So, if I had a massage parlor for example, and I were and I had a massage and membership or whatever that I was trying to sell. If I were trying to sell that membership, I could go to every chiropractor in the area. I could go to every physical therapist in the area. I could go to every orthotics dealer in the area. I could go to every scented candle person in the area. I could go to every yoga studio in the area and ask each of them to give me one to two free things of services that cost me nothing and put all of those things in my single offer.

33:23All right? Love it. If I just had let's say I just gave you six examples for one business, right? So, that's six different like industries and let's say we had 10 of each of them. So, we got 60 free goodies. Now, all of a sudden when I say, "Hey, if you get a massage at Alex's massage parlor, you also become a VIP member." All right, and the VIP member means that you're going to get 10 free chiropractor adjustments. You're going to get 10 free orthotics pieces. You're going to get 10 free whatever, right? And so, with that, I took my thing and made it more valuable by using other people's things on top of it, all right? And so, I just wanted to use that as a mental reframe for what I'm talking about. There's a lot of things that outside of the product that we can use to make the core product itself more valuable because the customer has a lot of needs. And the good news is that when somebody has a lot of desires, it means they have a Alex, I'm sorry to interrupt you, but how many of you just had the biggest brain orgasm of your life? Like you can see where this is going and you're like, "Holy [ __ ] I thought I I think I just saw a piece of the matrix." Put in Put in the comments right now if you just hashtag brain orgasm if if you just if if you just got a business boner. Like Like I'm sitting here like, "Oh my god, this is the greatest thing ever." And every page of Alex's book is like, "Oh my like I need a cigarette. I need to step away away from this." The the hashtag brain gasms are starting to are starting to happen. We've got multiple brain gasms happening in the comments, Alex. All right. Now, please please keep going. I'm ready.

34:52Sorry, we both blew some lines of Onnit Switch before we got on. Yes, we did. Proud sponsor. Oh. Oh, and we're sponsored by Onnit Switch and and Johnson & Johnson. Yeah, and Johnson & Johnson. So, the delivery cube is is basically what I walk through mentally to think um how am I going to deliver the thing? So, first is what's the outcome? All right? The outcome is what are the other problems there ancillary problems that this customer is going to have or experience before or after they use the product. Ooh, am I am I dragging? You're good. Okay.

35:24Um what are the things we're going to have to immediately before and immediately after they use the product? And there's going to be problems that are going to be associated with these are not those things. And how can I solve that problem before and after? All right? Now that I've identified what the problems are that are going to be associated with the product, then I can pull these problems out and think, "Okay, now I'm going to splay them out and think, how many different ways can I solve this, right?" And so, let's say we've got somebody and you're in the and you're in the supplement space. I'll just say for example, right?

35:51So, if you're in the supplement space or nutraceutical space, whatever, then this person might want to lose weight. All right. Well, what other things can I do that might that somebody who's trying to lose weight and buy my fat burner, right? What what else might they want? Well, they might want an eating out guide. They might want a a grocery list. They might want a cooking guide. They might want lick your fingers lunches, delectable dinners, a shake guide, a breakfast guide. They might also want a a calculator that's for on budget so they can have stuff that's cheap so that they they can lose weight you know, on a budget. They might want to also have family-friendly meals they can make for themselves and in family, right? They might want to have something they can do for work, right? You might also want to have the workout guide that they can do at a real gym or they can do it at home, right? These are all things that take one-time time investments that you can add into the core product for no added cost and then sell that cost at a sell that product at a premium because of the ancillary values we've stacked onto it.

36:45Now, that's just one example of of the six on the delivery cube. It would probably take more time to get through it, but like each of these things are layers of value that you can look at. Like you can also add premium support on text as a way that you can support customers that no one else has, right? You could do it via phone, you could do it via Zoom, you can do it via chat, you can do it like that that's just one of the things. It's like that is a medium, which is one of the one of the cubes, and then speed and convenience being another one of the layers that you can add onto it. All right, so but but before you go there, all of you who ask questions like, "How do I get my Amazon data? How do I get my customers' email addresses from Amazon?

37:26Amazon hides it from You give them great [ __ ] That's how. You you call attention to all of the other ways that you help them accomplish their goals and overcome their challenges and and then you get them on text lists and emails and they come to Zoom calls and they join your Facebook group and they join your Discord and your Slack channel and any other place that you actually serve them.

37:56You actually treat them like VIPs. That's how you build a VIP list. You actually overcome their challenges rather than just slapping together a free ebook that you put in the inserts in your packaging. You actually over-deliver for the goals that they are trying to accomplish and then they voluntarily find you and buy everything that you put out and then you build launch That's how you build a launch list where you don't need to do a bunch of giveaways and rebates and use rebate key and break terms of service in order to get reviews. You don't need to.

38:28You're too busy winning. You're too busy winning to have to try and copy everybody else's strategies that your customers go to bat for you. That's how you win. That's how you actually build the list and the responsive customers that buy from you over and over and over again. And by the way, the rant that Alex just went on was if you just had one product and you made a list of all the other things that they needed and you didn't create the products around them. You just create partnerships with all these people.

38:56And that becomes part of the stack. Imagine if you started asking the question, okay, well, we have this challenge and now we're going to release this product that actually solves this and now you have the virtuous cycle of price working in your favor. Did you just say that was one of the six cubes? Yeah, one Like just one of the ways that you can do this? Yeah. I need a cigarette. And what's uh what's also kind of cool about this is like we just talked about all those partnerships, right? So if you're trying to increase your average order value, if those people redeem 10 of those things that you just gave them, and those partners that you made a partnership with paid you for free customers, then you're increasing and all of that's true bottom line to you.

39:36So you could give away your product for free and then make all of your money on the partnerships on the back end if you really wanted to. So like Leila and I make a couple million dollars a year just in affiliate partnership rebates coming back to us because we already, you know, we already know we want to enhance the the value of the products that we have. We were going to make the introduction anyways. We might as well get paid for it um by gathering and aggregating the solutions in one place because that's what our customers want anyways. But as a mental mental fun exercise, I want to run three three fun mental tests for everyone that I've gotten good feedback on.

40:07The first is if you were selling your product for $100,000, what would you include to make that product worth $100,000? Like think about it. Like if someone paid you for the same outcome because fundamentally everyone's always paying for the the outcome, right? The girl who buys a $5 ebook and the girl who buys a liposuction are buying the same outcome. The reason that they're priced differently is because the other three all the other I was going to get into the value equation which is also in the book. But like the other variables of value are different, right? Which either enhance or detract the the price that you're able to charge, all right? And so if we have a $100,000 thing for a dream outcome versus a $5 thing for a dream outcome, what would I deliver at 100,000? That's that's thought process number one.

40:50Thought process number two is whatever the price of your current thing, if you had to get them the same outcome for a tenth of the price, what would you have to build or do to get them there? That's the second. And the third one, and this is probably my favorite of them, is if everyone here had no rebates, you had no advertising dollars, and all you had was one guaranteed customer who was going to buy the product, and the only way for your business to grow was for that person to tell someone else about the product, what would you have to do to make that happen?

41:33To guarantee But when you when you say one person, do you mean one type of person or one individual? You get one purchase. And you have to deliver such an experience to that one purchase that that is what kicks off your business. I love that question. I love that question. Cuz I think if you think if we ask the right questions, we get much better answers. A lot of people are like, "Well, how do I make more money?" It's like, "How do you get every single customer you have to send you five customers?"

42:01Well, it's like well, even that question maybe it's been overly heard. So, it's like what if you only had one [ __ ] customer? Sorry. You you can say Who's going to [ __ ] whatever whatever you want. And I like that there's one shot because it's like you have to make it so over the top that you can't say, "Well, we know 20% are going to refer." It's like, "What if we only had one shot? One opportunity. It's everything we've ever wanted. It's our moment.

42:29We can capture that five-star review. Or would you let it slip? Oh, hey. Alex, the video the camera's doing that thing. Camera's doing that thing. Alex. Am I not here? I can see No, I not not not you, Alex. You're not the problem, Alex. Our camera battery died. So, I'm just going to I'm I making faces. Come on. In three, two, one.

42:53Alex. Yeah. Not you, Alex. Sorry. That's going to be annoying. That is. Hold on. Hold on. No, it's not back. You're just making me look stupid in the meantime. Yeah, in the meantime I'm going to this angle, the less cool angle. You can see. You can I'm using this It's over here. This is embarrassing. And are we back over here? Hey, we're back. Okay, woo. That's embarrassing. We Yeah, I like how our our live viewers actually went up during that time.

43:23We took Ryan off screen and our viewership went way up. It grew LIKE BY 10%. SO, THE ALEX that question of if I could if I only had one purchase, that forces you to think about a word of like word-of-mouth referrals. Like if if and and and that forces you to make the experience so good that that person has to tell other people. So, when you ask that question, where does your brain go when you're structuring the product and the offer?

43:59I believe in doing the unscalable first and then being overwhelmed with the amount of business that you have and then trying to make the things that you were doing unscalable scalable with the added resources you now have from new sales. So, I think a lot of people try and solve a problem that doesn't exist. They're like, "Why don't want to do something that's unscalable?" I'm like, "Dude, you don't even have any [ __ ] clients." That's right. Like, what you're doing right now is ultimately scalable. You're doing nothing.

44:25So, like why don't we What just this might be useful from a perspective standpoint is that like before I started Gym Launch, which you know, everyone and their mother tried to create some sort of Gym Launch company because Russell talks about the numbers that we were hitting. Yeah. For 2 years, and this is after I had a chain of gyms of my own, I had six. For 2 years, Leila and I flew around the country living in motels and turned around 33 gyms.

44:51We did 21 to 24 days on site. We would sell on average 100 new members. When Leila and I went, we'd sell on average 190 new members in 21 days. And so, before we made a product about like how to do this, my my solution people like, "Well, what are you going to do? Fly out to your customers?" I was like, I literally flew out to every one of my customers for 2 years to figure out everything that they were possibly struggling with.

45:18And then turned every aspect of their business around. And so, then when we made the product, it solved all of the problems because we spent 2 years literally in the field making it. And it's just like it's hard to comprehend because, you know, we went from nothing to I think our our first complete year we did 28 million in revenue and 17 million in profit. And I was, you know, we were 28 years old. And so, I I bring this up because like it wasn't the advertising. You know what I mean? We spent, I think, I looked it up, I think we spent 4 or 500,000 dollars in advertising that year. 400,000? Yeah, 4 or 500,000 dollars in ads. That's a good return. That's a good return. Right.

45:57Yeah. And so, we get so much word-of-mouth as good as Bitcoin, though? It's not better than Bitcoin. But Doge definitely takes takes the Bitcoin. I think I think the further along that Layla and I have gotten in this in this business game is like virtually every path is unsustainable except for the product. And so, I think that the way that people should most if I'm thinking about this now, I think about it in terms of promotion, product, and then people. And so, and that's like in stages, not all at once. Now, you need all three, but which one's emphasized? In the beginning, you need a little bit of promotion just so you can figure out what's wrong with your product. Right? That's the idea. It's like you shouldn't be blasting, right?

46:36Cuz then you're like you're going to literally just burn all the goodwill you have because no one's going to refer anybody else to your product and it sucks and they've already had a a first bad experience. So, it's like, all right, we need a little bit of promotion just so we have enough flow that we can fix this product. And you keep fixing it until the company can start growing on that same level of promotion. At that point, then you double down on the product and then you can bring and then you can gas the promotion. That's called getting product market but everyone right now is like super excited about spending a 100 grand a month on ads making 120,000 in sales.

47:07Um and it's a miserable existence because at some point the the CPMs do get too expensive if you have no back end and you have no referrals. And so, it's like it's just this pure exercise in vanity that doesn't make you any money and it's honestly just a big waste of time, but a lot of people do it because they get awards and they get recognized and they take the screenshots and it makes them feel good and I get that, but like I can tell you having now been on the other side of this, having a product just really makes life a lot easier because your margins are really good. You don't have to work nearly as hard in the acquisition and you can sleep pretty well at night because you know the product you have is good. And I'll tell you one more benefit that no one talks about, which is I think at a certain level you start like the pressure as an entrepreneur just continues to increase the at the the higher and higher levels. Like I'm sure Ryan has comments on YouTube that are negative.

47:58It's like not me. Nah. And But the thing is is like if I were to say, "Hey Ryan, you have green hair." He probably wouldn't be bothered by that. Because he has 0% He knows that there's 0% truth in that. But all of a sudden if you start getting hateful comments and it starts really bugging you, it's because there's a certain degree a lack of conviction that you know you could do better. That's right. then what happens you start slowing yourself down. It starts eating up your conscious It starts eating up your free space and I think the only way to get through that is to really go through it by improving the product to a degree that you literally cannot think of another way that it could be better.

48:34And that takes years, not months. And I think that's the other piece. It's like, "Dude, I worked on my product all week last week." That's cute. Good start. Yeah, that's amazing. So what are you going to do for the next 51 weeks, you know? Um and I think that just having that kind of perspective shift would serve a lot of people. I I I have nothing to add except the fact that the current comment on the screen is about Jarvis, a company that Alex and I were literally talking about last week. Hey Dave. Hey Dave, how are you, man? Uh we are we are fans of your work because you followed this process, right? Of doubling down on creating great product and now like I you you have Do you have 9 billion users now? I think. In eight In eight months? Eight months, 9 billion users? You can't out-market that. That's the thing is like you can't do it and I'm like David Dave comes from the hardcore direct response world. I've I was I was in, you know, in the hardcore direct response world and like you need to have basics of marketing but far less I think than most people think you need. Right? And that's because the talking heads don't actually have good product and they're just really good marketers and they say, "You just need to have good marketing."

49:47And honestly, I don't think it's malicious that they just don't think they've ever experienced what having exceptional product looks like but it is the only way that you can have something that's unbelievably sustainable and grows virally. Like if you have net negative churn, which they have obviously does here with 25,000 active users on the software in eight months. Right? The only way you can do that is if the people who buy the product tell other people. And I think with the more digital world that we have, like at a certain point everyone will immediately know how good you are within seconds. And so we need to get ahead of the Here's here's an analogy that's coming to mind for me.

50:19Who the people that know the best pickup lines. The dudes that dive deep into pickup and study that world are the most insecure dudes. Mhm. And now sometimes they can use that world as a way to gain confidence and improve themselves. That does happen. But for the most part, most of the guys who go deep into like the that world of pickup are compensating for a lack of confidence for uh where they are flawed and they become masters at manipulation and persuasion to cover up for a feeling of lack.

50:57Marketers are the same way. Marketers become deeply involved with persuasion and sales and sometimes copy or having the best funnel or whatever it is to overcompensate for the fact that their product sucks. That their business sucks. But when you flip the whole thing, when the dude has absolute confidence because he just chooses to have it, he doesn't need to have the best pickup line in order for every girl to prefer him. And when you have the best product, you don't need to sell it that hard because you have the conviction that what you have is the best thing for the customer.

51:38People pick up on that. We are way smarter as human beings than we think we are. We are not nearly as persuaded by the words on a page or the words that you say as people think. We are We are persuaded by picking up on the emotions and the certainty that you are projecting and how you really feel about the experience that the person's about to have. So, the most profitable thing that you can do is for you to operate from a place of certainty knowing that your product, your business, and your service is actually the best thing for that customer. And that requires you to take an honest look in the mirror and say, "Is my product and my business the best thing for the customer?" And when the answer is yes, you have 100 million-dollar businesses.

52:26That is the foundation. That is the mindset. That is the the place from which Alex builds his 100 million-dollar empires, and that's what he documents inside of 100 million-dollar offers. If you are still here, there's over 150 of you on here, and you have not yet gone to amazon.com and bought 100 million-dollar offers with the intent of leaving a review, you are hereby booted off of this live.

53:00We are not friends. We We We do not do business together. You cannot come to my house for whiskey. You are not invited. If you did go and buy the book, if you have done it, put it in the comments right now, and let me know, and I'll take it as a personal favor. I Sean Vosler says, "Buy 10. They make great gifts."

53:26That's They're wonderful. What was that? I said they're wonderful gifts. Now, while peo- while people are saying, There we go. Mitchell says, "Bought the book. Stop drinking." While people are putting that, there's a excellent question from Clement Wong. Isn't this the antithesis of an MVP? That's a fantastic question. Alex, how would you how would you answer that? So, if you heard what I was saying earlier, like tactically, it's I want to get a little bit of promotion so that I can get some flow so that I can keep fixing the product. But, what I think what ends up happening though is that people mistake that initial flow and say, "I'm making a sale. I should ramp this."

54:09And that's what it is. It's the first dollar comes across and they see that first dollar as the as the sign or the indication that they now have a successful business when in reality, they have they have signaled that they know how to market this small amount and sell a product. Not how do I get how do I build a business? How do I build a brand? And how do I build a product that people will rave about and remark about? And so, we create flow, we monetize flow, we get the product to the point where it can spin on its own, and then you can jacket.

54:36Now, Alex, this is an this is an important point that was not in the advanced copy that you gave me. In fact, Alex, would you hand me that box right over there? I actually want to hold something up. You gave you Well, I'm going to come back to this point. You gave me an advanced This is my advanced copy. Look at this amazing packaging it came in. I got it from a a place called the Max. I printed it out at the Max over here. This is my advanced copy.

55:07My weathered advanced copy. Alex, so I Back in 2006, I bought my first ever ebook. It was called The Rich Jerk. And uh I was 18 years old and I was like, "That's what I want to be when I grow up. I want to be a rich jerk." And uh I went to the library, printed it out, and I sat on my bed and I leafed through it and I took furious notes. And I just had this thought of if I read this book, this is going to change my life. If I take this seriously, it's going to change my life.

55:39And that was the first book I ever bought on internet marketing, which, you know, built the foundation for my first six-figure business. I learned about affiliate marketing, SEO, taking on clients, email copywriting, uh putting together products. That was the foundation for everything. I have not had that feeling again until I went to the max and printed out 100 million-dollar offers. And this has gobs and gobs of notes about my business I want to make do with this, which is why I say the second chapter of my career started when I read Alex's book. Because it was the same experience that I had.

56:13It felt like the new start. It was like, I get it now. Like, I get this now. And one of the biggest shifts happened after I read the advanced copy cuz you told me about the section that you added, which was about flow before friction. And this was like This was one of those moments where I just step away and get another cigarette. By the way, I've never smoked in my entire life. I should probably stop using that analogy.

56:42Uh I should just I should stop I should just start stick to whiskey. But please explain this concept because it's such a shift for so many people, the flow before friction. So, I I pretty much come from the perspective of give everything you possibly can away for free, um so that you can generate demand. Right? Like, that's the that's fundamentally the idea is like, how can we just generate demand? How can we generate interest? How can we gather attention? And it starts by just giving a lot away. And that's where everyone's like, that's not scalable. I could never like I can't make any money doing it.

57:16I'm like, right. That's the Like, everyone just assumes that the entire business must be done and profitable at scale from day one, which it doesn't work that way. There's There's steps in their sequence. And so, the idea is we generate flow first, and then once I have way more flow than that possibly handle, then I start adding these levels of friction to it to increase the quality of the prospects. And so, I think fundamentally marketing, if we if we think about what it is from a big perspective, is we're shifting the demand curve in our favor by adding artificially inflating the attention that we're that we're putting on our products and making them more persuasive and adding bonuses and all the other things we do, right? And through that, we can then add the perfect amount to get the output on the other side or the throughput of the system to be a qualified lead or a sale, depending on you know, whatever business that you're running. And so, for, you know, a mass consumer products company, it might just be add shopping shop or add purchase page, right? For for a for a private equity company, it might be to cold email, phone call, phone call, phone call, diligence, you know, you know what I mean? Lawyers lawyers, 90 days, and then six months, and then escrow, and then a signed contract, right? And so, the type of sale will depend, typically the higher the price, the higher the friction, right? And the the bigger the front end has to be in order to get that, but that's justified by the higher price of the ticket. And so, I think what most people don't know how to do is like, there's these big pools of attention, and then there's these sales that you want to make. And so, the best marketers know the right amount of friction to apply, and I think the experience of the marketer says, this feels like a two-step. This feels like a three-step.

58:53This feels like a one-step. And they just can do that off of the fact that they have experience, but fundamentally the way I do if I'm approaching a new market is, I want all the flow, and then I will add one layer and see how we do. And then I'll add two layers and then see how we do until we get to a point where I'm like, that's just right. So, let me explain how we just used this in in our business at capitalism.com. So, I spent a few days with Alex last week and he talked about this exact concept, flow before friction. And I realized, I've been guilty of this my entire career of like, build the perfect funnel and launch it, rather than just like get momentum and then improve.

59:31Like, oh my goodness, I I can't believe I made this mistake for 15 years in my career. So, we went back and we've been we've been talking about doing a book funnel for my book 12 months to a million for like, you know, since May 5th of last year when it launched. And we've just never gotten it off the ground. And when it when we have it, it was like, "Ah, it's not profitable. We'll just shut it down." So, we just put together the simplest page possible and put together like the simplest bonus package possible, put a name your own price option on there. And we we put three pricing options on there, one of them being a dollar. Just pick whatever pick one of these three prices.

1:00:12And let's see what happens. Put up a few ads. And now we're going Okay, now we've got blood in the door. Like coming like we've got momentum coming in. I don't know if blood in the door is a real term, but you're all still still tracking with me. We'll go with it. There's lots of blood flowing in under the door. And we then said, "All right, great. Let's look at the numbers." And the numbers like we lose a little bit of money to acquire customers. And it's not nearly as bad as we thought. And now we're getting regular sales and customers add one upsell. Oh, we're profitable.

1:00:44We turn up the ad spend. And now we've got lots of flow, adding friction. And it's that simple idea of let's just get sales or leads or opt-ins or views and then we add in the layer of complexity. And that's how we build the machine. The I don't know why I have not thought of that concept since I became a business owner.

1:01:09But that idea, it's like, "Oh yeah, lay layer one first, then we will lay layer two." And then you end up moving incredibly fast. Alex, every business that you start or every personal brand you start seems to grow incredibly quickly.

1:01:32Is it because you focus on flow? Is it all like the $100 million model like all encompassing or is there like one primary lever that is the reason you seem to move so quickly? I don't know.

1:01:54Good job, mate. Thank you for being here. BUY $100 MILLION OFFERS. WE TRY TO I mean we try to make the free stuff way better than everyone else's paid stuff and that's that's been I mean I feel like there's a lot of truths that people say, but they don't feel. You know what I mean? And so they say like make your free stuff better than other people's paid stuff. But they don't. They make it look like everyone else's content, but it's like what if you actually made it better than everyone else's paid stuff? And a lot of times I think people notice the intention or the spirit behind what you're what you're creating. If anyone reads the book, they can probably tell that I could package it into a course.

1:02:35You know what I mean? And I put a course with the book. Um and you can probably tell that it's not a webinar that just got transcribed and put into a book so that I could sell it sell a thing which is not that's not how it is, right? And so the idea for me is to create such a high price to value discrepancy that I engender goodwill. Um which is candidly all I want right now at this point in my career. Um and that's that's the whole point. That's it. And the there's six pages called the delicate dance of desire which is in the book which is the last thing I added to the book before it um it got published and um and it kind of talks this concept a lot which is like we're artificially stimulating demand with our marketing, right? And so you can also control your supply to increase prices by increasing scarcity. Right? Like if Ryan, for example, sold 1 hour per month and it was open on the calendar and it was a bidding or auction system, right? Or he only sold one, then he would probably be able to fetch a very good price for it. If he sold 10, he probably wouldn't be able to get nearly as good of a price.

1:03:35Right? And so, the idea is how can we find the delicate dance between supply and demand that best serves us as business owners and best serves our clients? And so, I give I I say this to say um my goal is always to create far more demand than I have supply. And to not try and immediately meet the demand, but always stay just behind it.

1:03:58And in so doing, create far more pricing power uh for my products, far more profit, and continue to keep a little bit of demand in that in that pool that's pent up. Right? And so, I I think I used the analogy like if you sleep with your partner every single day, your desire will inherently be lower than somebody who hasn't slept with their partner in a week. Right? And so, I don't want the uh the aroused customer, I want the ravenous customer. And so, the idea is we only want things that we cannot have.

1:04:31Right? Desire is literally the at is the wanting of something you do not have. As soon as As soon as you have it, you are satisfied. And if we are saying that we are demand generators, then we are generators of desire or better stated, we're channelers of the desire that already exists. And so, if we're going to make stuff, right? We're going to make something, then we want to make it so good that that demand becomes so so great and the supply so small, right? That the profits that we get are breathtaking.

1:05:00And we keep it there. And then maybe next month we do this much. But now, because of how good the product was and the word of mouth that happened on the back end, that pool of demand doubled. Right? And And we open up a little bit more. And then that is how you never go hungry because you always have every time you open the door it sells out and it sells at the price that you want to sell at. So, that's my goal. And I think that's why we've been able to have tremendous uptake on the on the products and things that we've sold is that we try and try and work in that in that manner. You tell a story in the book about being at Arnold's charity event where there was a lot of demand, more demand than there was supply.

1:05:38And the person that you met there said, "When there's that much demand, you have the capacity or you create even more scarcity." Yeah. Explain to me why that's the case. So, this guy was like an Eastern Bloc guy, came here, definitely been through rough times, big dude. And he sold ultra-high-end jewelry. So, I think the pieces we're talking about between, you know, 1 million, 5 million, 10 million-dollar pieces of like status. They weren't even jewelry at that point, right? And he's figured out a way to do this, and this guy was a master. He told them at the Arnold, um, the fundraiser at Arnold's house, they had more demand for tickets from the from the year prior. They'd sold 200 tickets.

1:06:19I think at at at 10 grand. And instead, he told or it might have been 5 grand. And instead, he told them to cut it from 200 to 100 and raise the price to 25,000 a ticket. And he's like, and the charity fundraiser was like, "Dude, I I don't know about this. Like, what if we don't sell any of the tickets?" And he was like, like, "Fucking trust me." And so, the demand went up and they cut the supply and they jacked the price.

1:06:45And he was like, "We made more in selling tickets than we ever have and we haven't even started the event yet." And so, they had made more just selling tickets than from the auction than they had the year before because he had learned how to master supply and demand. And so, I remember I remember seeing him do that, and it was such like a pivotal moment for me. That's why I tell the story in the book is that I truly think that the the strongest the single strongest factor in all of pricing is supply and demand. And I think a lot of people don't take into it into account and that you can you can manipulate it and that's fundamentally what we're supposed to be doing here. We're manipulators of demand when we're marketing. We're stimulating, we're artificially inflating it so that we can sell what we want to sell.

1:07:21Right? And so if we can play that dance then we can get the outcome that we want and I think that I talk about that stuff in the book and I think uh when I was there it was it was it was uh impactful. You know, it it's it's interesting because there's still questions coming in on the chat about how this applies to e-commerce. And it it's this this idea of where you take the sale is the is like where your business ends.

1:07:47And because like if if you're selling on Amazon or even if you're selling on Shopify, if you're selling any stuff, the idea of limiting the amount that is available is a little bit of a foreign concept unless you're launching them in connection with an NFT which I kind of think might be around the corner. You could do flavor drops, you could do Sure. But but but even beyond that, Alex, what you said earlier about taking the conversation off of that primary sales channel where now your platform like Amazon is really just a place where you're collecting leads at break even.

1:08:23Because you have you're having all these buyers flood in but the entire business is is constructed to give the customer an unbelievable experience that gets them to their dream outcome. The business is actually the backbone. It's not it's not the front. Right? It is it is everything else that overcomes their challenges like you mentioned those partnerships with outside vendors. It is the memberships on the back end. It is the offers that you send them in the customer follow-up process. It is that entire structure and all of those can can limited. All of those can be can have an amazing amount of scarcity. And I think so many people in our circle, specifically like e-commerce circle, they don't think in terms of scarcity in in a positive sense, meaning limit the amount that is available, because they're just thinking about selling the next widget.

1:09:21And the beautiful thing about what you just suggested is that when you're able to have that flip and realize that you can generate demand, you can pull levers in your business all day long. Like it And that's when it gets fun. Because you're literally liberated to just do whatever you want in the business that is in the best service to the customer. Yeah.

1:09:48This is so fun. This is so fun. Um Alex, you're doing like you're getting like thousands of subs a day on your YouTube channel. Um I love and hate you for it. Because you're you are the you're the one you're the one YouTube business channel that's better than me. The only one. The only one. Gary Vee and Gary Vee's got nothing on me.

1:10:14But but but Alex Hormozi's better than me. And so the the market has spoken. You're doing great. What is the reason you think that that, which is like it's just a passion project for you? Yeah. What why why is that growing so quickly? And why did you even write the book besides the fact that you need the 99 cents? It's mostly the 99 cents. So I just I just need to get that out of the way.

1:10:39Obviously, capitalism. Yeah. Actually, capitalism. Um So yeah, I mean Leila and I uh we have a portfolio companies under the umbrella acquisition.com. Um and so the book is kind of the launch of that. Uh and so you know, we take companies between three and 15-ish million, um, and we're, you know, with the goal of taking them to 50 to 100. And so, you know, we've got three companies that are in there. We started this about a year ago. Um, I've I've wanted to take on, you know, one company-ish a quarter.

1:11:11Um, that's kind of a a penciled-in goal. We started a year ago, we have three, and so, we're four months in and we have three. Um, and we've turned down probably 150 companies. And it's really just like this is just a way for us to, um, help 99% of people for free, and for the 1% that are hyper-executors who can take something and implement it immediately and see their business go from 500 grand to 3 million or 1 million to 5 million, and then want to allow us, you know, to, uh, participate in the growth with them, we can invest alongside and, um, and and crush it together. And so, that's kind of the idea is like is there a way that we could create, um, a business model where we could just help everyone, um, and still have the people where we can who need a more customized, like, you know, when you're going from five to you know, 50 million, like, it's like, buy my course on it doesn't really it doesn't really, you know, lend itself to that type of solution. And so, it's like, okay, well, how do I work with the people that I only want to work with, and then how can I give everyone else what they normally are paying 5,000, 10,000, 20,000 dollars for, and give it for free, and I can do it from the perspective of someone who's not made their money selling how to market, but actually marketing.

1:12:25Like the example I'm thinking of, I'm comparing you to Taylor Swift. It's like, for 99% of people, Taylor Swift music is free. Yeah. Right? You can you can get it. Actually, she might not be on Spotify, but just go with me. Yeah. All all the music's free. You can listen to it anytime you want. And for a small fraction of people, you know, they pay her a million dollars to come sing somewhere. And so, you're kind of similar. Right? You're like you're for a small percentage of people, you're coming in and taking a a nice swath of business and helping them grow from 5 to 50.

1:13:01I freaking love this. Is it the tail of the business? This is the business Taylor Swift? Is that what the the headline You're the You are the Taylor Swift of the online business, Alex. Uh Alex, I am proud to call you my friend. Um I am thankful for your friendship. And I told I told somebody I'm so glad I was friends with you before you write wrote this book because I would have been fanboying like a madman. I'd be like, "This person's the smartest man I've ever met in my entire life." The book is that good. Like, it's it's kind of weird. I only I only ever had this experience with one other person. I became uh friend a friend with uh with a guy named Dan who had won the TV show Big Brother.

1:13:49And I don't watch I don't watch Big Brother, but after I became friends with Dan, I was like, "Oh, that's so cool. Like, I'm going to go back and watch your seasons." Turns out he was the greatest Big Brother player of all time, and I had no idea. And I was like, "I'm really glad we're friends before because like I didn't know you were you were the the Dan." And that's how that's how I felt about you after reading his book. I'm like, "This is the smartest person alive." Like, I This is my homie. Like, he lives up the street.

1:14:19Like, I can't Like, I can't believe this. And so, like, my daughter even likes this guy. She doesn't like anybody. You have 100 million dollar offers, Dad. I don't feel like we've got enough affiliate offers in here. So, I did like I'm not just saying this as your friend, but this is probably the best business book I've ever read. Like, it's it's it's really, really freaking good. So, well done. Uh my friends who are watching, there's still over 150 of you watching, go on Amazon, buy this book. It's called 100 Million Dollar Offers.

1:15:00It's by Alex Hormozi. Click write a review when you're done. Cuz it's 99 cents, and if you don't make a million dollars from reading this book, you read it wrong. You read it wrong. Well, the book's a scam, right? If you you don't you don't make a million dollars, then you know, that's what it is, right?

1:15:28That is that's not a legally binding guarantee, cuz I have no affiliation with this book, but like if if this does not radically change your business, you're doing something wrong. You you misunderstood. I was going to call it a million dollars in 12 months, but it was already taken. But my my second favorite name. You should have called it 100 million 100 million dollars.

1:15:52In 11 months. So, I I Tim the Master says, "I just bought a million copies. Did I do it right?" You did it perfectly. Thank you, Tim. I I mean, I'd say that's a good start. It's a good start. Just uh just for a little bit of uh context for everyone else here, the the the the book's broken into probably like three main sections. So, you've got the primary section, which is picking the right market to go after, which I think Brian and I had a lot of conversations about, but like there are ways to pick the right markets that are probably counterintuitive. Um and so, this is how we pick niches that we think are going to to do well, and it's not complicated, it's just different. Um and that is what unlocks the pricing power, the purchase power of price, things that we talked about, charging what it's worth, getting a premium, um over-delivering, all that kind of stuff. Uh the second kind of chunk of it is the actual product itself, which is kind of the entire ideation, the different lenses and perspectives through which My favorite part. product. Yeah, and that's and candidly that's the meat of the book. I mean cuz that's it should be.

1:16:48It's the about the product. You know what I mean? And so that's that's where we talk about the value equation. We talk about how we can solve problems, the six different parts of the cube in terms of delivering on the product. And then the third main section is what we call or what I call enhancers. And so that's the the bonuses. That's the scarcity. That's the urgency. And fun fun fun fact everyone, can flate the two. Like scarcity is a function of quantity, urgency is a function of time.

1:17:16And so you can have just urgency and you can have just scarcity or you can have urgency applied to bonuses, scarcity applied to bonuses, you can have a scarcity applied to a guarantee. Like there's different ways you can combine these things. Um guarantees, there's four different types of guarantees that exist. A lot of people don't know that. You can also combine guarantees so you can have like a 30-day unconditional with a 60-day conditional. Um you can have an anti-guarantee, you can have an implied guarantee which is the fourth type of guarantee.

1:17:43Um and so I talk about the different guarantees, the pros and cons. I've used all of the guarantees in that book um and I pulled out my 13 favorite that are were the highest converting for us. Um so I have those in there. And then um and then finally one of one of the sections I think that's underrated is um is is just naming. Uh so like how do I go about naming a promotion or how do I go about naming a product? And it's more about promotions. It's kind of at least how the the the naming section is is set up. Um but it's like more about promotions and bonuses is how to name those things.

1:18:11Um and there's some interesting things on like how to rhyme the names, how to alliterate the names and things that make names catchy and stick that have just been things that I found over time that I think a lot of people find valuable cuz a lot of times simply by changing the name of the promotion, you can three or four X the conversion even though you haven't even changed the product. And so that's what's crazy, right? And so it's like sometimes people just miss the most basic thing. It's like you're 6 in away and you just need this last push and that's why I think I pulled out the name because I thought it was an important enough component to wrap the whole journey up. So, that's the that's the book in a nutshell.

1:18:45I think that's why we've had such a high return on advertising. It wasn't you know as much as people enjoy our sales content and the pricing stuff that we talk about and all that. I think that at the end of the day getting the product to be so good that people can't help but line up and buy it. That's the that's the goal. And let me wrap with one thing that is early on in the book that is so motivating and inspiring and uses the best analogy possible, baseball.

1:19:16The best the best thing the biggest win that you can have in baseball is to score four points. The absolute best case scenario is to walk up to the plate with the bases loaded and to hit a home run. We call that a grand slam. That is literally the best play that can happen in the entire sport.

1:19:41But in in business, the great game of business you get to take as many swings as you want. And just hitting one grand slam in business can make hundreds of millions of dollars. And so often we get caught up in getting it just right and making the one thing that we have going, I call it the golden turd, and we just polishing it until it's perfect and hoping that it becomes something one day.

1:20:15Instead of just swinging and swinging and swinging and swinging until we have the grand slam. This book uh gives you the loaded bases, right? It can't help you connect. It's not going to do push-ups for you so that you're stronger, but it loads the bases for you. And you get unlimited swings in business until you die. You can keep swinging, and you can keep trying different experiments, and eventually you're going to connect.

1:20:44And what this book did for me is make me feel like I was coming up to the plate with loaded bases. And now it's up to me to become the the person who has the skills and the habits and the mindsets and the beliefs and the right approach for me to be able to swing and connect and hit a home run.

1:21:08And when you've got the bases loaded, it's a grand slam offer. So, my friends, I as as someone who cares, go get this book and go through it, and let it impact your business, because this world is filled with business owners, entrepreneurs, marketers that are in it because they want to do something for themselves, which is a great start.

1:21:38They start a business cuz they want to have a different life. But you have real freedom and control and upside and value and freedom and peace of mind when your business is completely in service to the customer. The beautiful iron- irony of entrepreneurship is that you get everything that you want as soon as you build the business that is completely in service to everyone else.

1:22:09That is the beautiful irony of it. Is that entrepreneurship is learned selflessness. And people on the outside see rich people and they think it's all about selfishness, which brings more people into the game. And they slowly discover that the more that it's about them, the more they lose. And the more that it's about other people, the more they win in the process. It's a beautiful virtuous cycle. And this is a playbook, 100 million dollar offers, how to make offers so good people feel stupid for saying no, is a playbook for actually building the business that has the foundation to be completely in service to other people and help you get everything that you want in the process.

1:22:54Please give some hashtags and some thank yous to Alex Hormozi for hanging out with us tonight. Alex, I appreciate you. I look up to you and I want to be you when I grow up. Thanks for hanging out with me, buddy. All right. Thank you so much, Ryan. Uh you guys have are are lucky to have That was like a phenomenal uh synopsis, by the way. That was I was like such a beautiful soliloquy about entrepreneurship. Um thank you guys all for giving me, you know, giving both of us your attention or lending it to us tonight. I hope you got a positive return on it. That's always everyone's most valuable asset and I appreciate you investing it with us.

1:23:25Thanks, everybody. Go get the book. Leave it a review or else. Good night, everybody. See you.