WEBVTT 1 00:00:00.000 --> 00:00:06.620 Losingation did a podcast with Founder's stories where we talk about three mean things in part one of the podcast first is 2 00:00:06.980 --> 00:00:10.220 Our entrepreneurs hardwired as entrepreneurs or are they born that way? 3 00:00:10.220 --> 00:00:13.220 And I think I have some interesting thoughts around this that will serve you second 4 00:00:13.220 --> 00:00:15.700 Do you have to have a software company in order to become a billionaire? 5 00:00:15.700 --> 00:00:18.620 I'll give you my thoughts on this often overused 6 00:00:19.140 --> 00:00:25.100 Path and the many dangers of thinking that is the only way to become ultra ultra wealthy and the many many many people who have not been and 7 00:00:25.100 --> 00:00:28.740 Third how to craft an offer that's so good people feel stupid saying no 8 00:00:28.740 --> 00:00:30.740 And if you're used to it, it's a nice verbal 9 00:00:31.100 --> 00:00:34.780 Overview and if you haven't read the book then it'll give you a decent crash course if you like it 10 00:00:34.780 --> 00:00:36.780 You can grab the book on Amazon for nine minutes 11 00:00:37.380 --> 00:00:44.500 My belief is like the the three piece of scaling that I adhere to is zero to a million is promotion one to 10 million is product 12 00:00:44.900 --> 00:00:46.900 10 to a hundred is people 13 00:00:47.740 --> 00:00:52.620 Welcome to the game where we talk about how to get more customers how to make more per customer and how to keep them longer and the many 14 00:00:52.620 --> 00:00:55.900 Filiers and lessons we have learned along the way. I hope you enjoy and subscribe 15 00:00:56.900 --> 00:01:00.740 Alex, thank you so much for taking the time to speak with me today 16 00:01:00.980 --> 00:01:05.020 The first question we ask everyone that comes on is how did you get your job? 17 00:01:05.260 --> 00:01:08.460 Okay, how did you find yourself doing what you doing today? Oh? 18 00:01:08.980 --> 00:01:15.060 By a master plan I started out when I was three I kind I iterated and failed my way here 19 00:01:15.060 --> 00:01:22.080 So I went to school for a business degree did management consulting after school for two years did defense contracting 20 00:01:22.080 --> 00:01:27.360 So space cyber intelligence pop secret all that stuff sounded really cool sounds much cooler than it was for me 21 00:01:27.360 --> 00:01:32.760 I was mostly just taking notes during dictated meetings and turning them into and highlighted color coded notes 22 00:01:32.920 --> 00:01:38.080 But didn't like that had co-workers told me that I should start fitness stuff because it was all I was talking about 23 00:01:38.400 --> 00:01:44.160 Use the consulting method to try new which is look up experts and connect with them because it's faster to learn their way 24 00:01:44.160 --> 00:01:48.160 emailed 40 guys when I got back to me. I offered to work for him for free 25 00:01:49.160 --> 00:01:53.800 Left everything I had sold my condo driver across the country 36 hours later. I was there 26 00:01:54.000 --> 00:01:59.560 War for free for three months started my first facility learned about Facebook ads at about that time 27 00:02:00.280 --> 00:02:06.760 Use that as the primary of getting customers after month 15 of the first location open up a new location every six months at full capacity 28 00:02:07.120 --> 00:02:09.600 Went to a different marketing summit saw a guy 29 00:02:10.240 --> 00:02:14.560 Signed up for his his like mentorship. He said I should be showing people 30 00:02:15.080 --> 00:02:20.600 How I was doing what I was doing rather than opening up more gyms. I took his advice because he was richer than me 31 00:02:21.640 --> 00:02:26.520 So then I did turnarounds for so I flew around the country and did 33 turnarounds 32 00:02:26.520 --> 00:02:31.600 I flew out fill people's gyms and had an eight guy sales team doing that turn around eight gyms a month 33 00:02:31.600 --> 00:02:34.520 I was an intense period and then from there 34 00:02:34.920 --> 00:02:37.760 Realize that the logistics were getting really difficult to scale 35 00:02:37.760 --> 00:02:40.720 We're doing probably three three-ish hundred thousand a month at that point 36 00:02:40.800 --> 00:02:44.800 And so we switched to a licensing model and then that is when everything kind of took off 37 00:02:45.040 --> 00:02:50.600 There's a ton of heartbreak and bankruptcy's and failed partnerships intermixed in there 38 00:02:50.600 --> 00:02:55.760 But that is the two-minute story of how I got to the first big successful company, which is gym lunch 39 00:02:55.960 --> 00:02:58.440 Then we started a supplement company 12 months later 40 00:02:58.680 --> 00:03:04.480 Then we started a software company 12 months after that and then we started the parent company acquisition.com 41 00:03:04.480 --> 00:03:07.520 We acquired interest in three other companies about to be four 42 00:03:07.520 --> 00:03:11.760 So we'll have seven in the portfolio and those companies now do about 85 million here 43 00:03:11.760 --> 00:03:21.560 Do you think entrepreneurs are hard-wired or do you think that they can be made and if so why I think it's a really good question 44 00:03:21.560 --> 00:03:22.760 I think it's a nature nurture thing 45 00:03:22.760 --> 00:03:27.920 So I think that there are some people who are hard-corp could never live another way and there are some people who will never be entrepreneurs 46 00:03:27.920 --> 00:03:32.120 But I think there's a whole lot of gray in between that depends on stimuli and circumstance 47 00:03:32.120 --> 00:03:35.760 I think for me I don't think I was hard-wired entrepreneur. I wasn't slinging lemonade 48 00:03:36.040 --> 00:03:40.560 I think if there was like 10 being you know the Gary Vee who says you could never be anything 49 00:03:40.560 --> 00:03:46.280 But an entrepreneur and then a one is you know an academic chair at a department of mechanical engineering 50 00:03:46.280 --> 00:03:55.360 I think I was actually closer to like a three like I think I'm actually left of middle in terms of not being necessarily an entrepreneur personality type 51 00:03:55.720 --> 00:04:01.840 The only reason that I think I even got into this was because I so disliked the career that I was on that 52 00:04:01.840 --> 00:04:07.840 That candidly I just wanted the emotional pain to end and so I just thought like I didn't even want to be alive anymore 53 00:04:07.840 --> 00:04:14.040 And so I just threw away all my goals around money and just said I'm going to do something that I love even if I don't make anything 54 00:04:14.040 --> 00:04:16.040 I'll start a gym. I like fitness 55 00:04:16.240 --> 00:04:19.840 But then I got the bug and realized that like business more than I liked fitness 56 00:04:19.840 --> 00:04:27.440 And then that kind of started the next kind of passion that started growing within me like the day that I opened my gym was the day that fitness became second 57 00:04:27.440 --> 00:04:29.440 Most important thing in my life 58 00:04:29.840 --> 00:04:31.840 Business became the most important thing in my life 59 00:04:31.840 --> 00:04:35.440 I see so you wrote this book called hundred million dollar offers 60 00:04:35.440 --> 00:04:43.440 Yeah, seems like like a lot like it seems like it's doing really really well like what compelled you to write this and what inspired you to write this book? 61 00:04:43.440 --> 00:04:45.440 I share my numbers really transparently on the channel 62 00:04:45.440 --> 00:04:49.440 You know my wife and I have taken a tremendous amount of dividends from the business and we sold 63 00:04:49.440 --> 00:04:53.440 You know one I sold my gyms but that wasn't anything huge 64 00:04:53.440 --> 00:04:57.440 And I we signed our will to give away everything we have when we die anyways 65 00:04:57.440 --> 00:05:04.440 So in thinking through that decision I was like well giving away everything that I have when I die is is neat 66 00:05:04.440 --> 00:05:09.440 I guess because then it decreases some of the pressure around like why I make more now right 67 00:05:09.440 --> 00:05:16.440 But then I was like it I think the most viable thing that I can give isn't money which we do give but it's the skills right 68 00:05:16.440 --> 00:05:18.440 It's the giving fish versus teaching them in a fashion 69 00:05:18.440 --> 00:05:25.440 So that was kind of the spirit behind the YouTube channel the spirit behind the books and the courses and things that I'm just giving away now 70 00:05:25.440 --> 00:05:27.440 Mostly because it feels good 71 00:05:27.440 --> 00:05:35.440 And because I get to participate in some cool companies you know some you know I get to meet new people from this 72 00:05:35.440 --> 00:05:40.440 And I think that Laila and I were really really sheltered in terms of how we've done our business career at this point 73 00:05:40.440 --> 00:05:42.440 I mean you know we were known within a very small niche 74 00:05:42.440 --> 00:05:45.440 But for the most part we've just kind of stuck to doing that 75 00:05:45.440 --> 00:05:49.440 That was actually an active decision about a year into gym lunch once we transitioned the licensing 76 00:05:49.440 --> 00:05:53.440 We were doing about two and a half million a month and we said we can't mess this up 77 00:05:53.440 --> 00:05:59.440 And we've got too many families too many employees who rely on us and so we basically said we're not going to have friends 78 00:05:59.440 --> 00:06:04.440 We're not going to drink we're not going to go out we're just going to work and right or wrong you know what I mean 79 00:06:04.440 --> 00:06:08.440 That was just where I was mentally at the time I was like I just need to do this and do a really good job 80 00:06:08.440 --> 00:06:12.440 And we did but now that we've kind of come I would say come out of that season of life 81 00:06:12.440 --> 00:06:16.440 Now it's like hey we can look around and share some of the lessons that we've learned along the way 82 00:06:16.440 --> 00:06:22.440 Yeah that's cool I respect that so I have to ask you and just delve a little deeper on that piece that 83 00:06:22.440 --> 00:06:29.440 You said you you guys are you and your partner Laila have already written your will and you give everything away like why why 84 00:06:29.440 --> 00:06:35.440 We're not big believers in legacy you know I believe at least you know America is built on equal opportunity 85 00:06:35.440 --> 00:06:40.440 I don't think that inherited wealth does anyone any good I think it's I think it ruins people 86 00:06:40.440 --> 00:06:47.440 I think you have to learn how to like I believe money is a is a tool and my favorite magic card which there's a game called Magic Gathering 87 00:06:47.440 --> 00:06:51.440 I played once kid but it was um she wished for a weapon but not the skill to wield it 88 00:06:51.440 --> 00:06:55.440 And so I think that people get this very powerful tool and they don't have the skill to wield it 89 00:06:55.440 --> 00:07:01.440 And I think the only way to have not have money on you is to know how to generate it 90 00:07:01.440 --> 00:07:06.440 And then you can respect it for what it is know what its limitations are and know what you can do it use it for 91 00:07:06.440 --> 00:07:10.440 And I think that most people who are gifted it so if I don't have kids 92 00:07:10.440 --> 00:07:14.440 But if I did have kids I still wouldn't give them the money because they have to they have to do it on their own 93 00:07:14.440 --> 00:07:16.440 But I said I think it'll ruin them 94 00:07:16.440 --> 00:07:20.440 And when it comes to aspirations one of my close friends 95 00:07:20.440 --> 00:07:27.440 He's a he's a gym guy so I think he yeah he even got following you for a long time 96 00:07:27.440 --> 00:07:34.440 He mentioned to me that your aspirations had to become a billionaire right so like you want to you still want to acquire 97 00:07:34.440 --> 00:07:38.440 A sizable amount of wealth right? 98 00:07:38.440 --> 00:07:43.440 Yes the easiest way for me to explain is like I want to have a very big goal that sounds exciting 99 00:07:43.440 --> 00:07:46.440 But I have absolutely no emotional investment if I never hit it I wouldn't be upset 100 00:07:46.440 --> 00:07:49.440 I do think I'm going to get it but I wouldn't be upset either way 101 00:07:49.440 --> 00:07:54.440 Can you talk to us about the how like conceptually kind of like top level 102 00:07:54.440 --> 00:07:56.440 Like how do you plan to get that? 103 00:07:56.440 --> 00:08:01.440 We're just going to be investing in businesses that are similar the ones that we scaled and participate in the growth 104 00:08:01.440 --> 00:08:03.440 It's a very simple model 105 00:08:03.440 --> 00:08:11.440 And just you know penciling out the numbers like I know that I can acquire probably a decent sized chunk of 48 businesses a year 106 00:08:11.440 --> 00:08:13.440 And I think that I can reasonably 107 00:08:13.440 --> 00:08:16.440 Three to five X those in three years 108 00:08:16.440 --> 00:08:20.440 Because we're just looking at niche businesses that we know that we can crush 109 00:08:20.440 --> 00:08:22.440 So the thesis I'll I'll zoom out for a second 110 00:08:22.440 --> 00:08:29.440 So the thesis my acquisition dot com is that formal education at least you know in America for me I feel like formal education failed most of us 111 00:08:29.440 --> 00:08:37.440 Right you know we we put a lot of money in there's some in the US you can't bankrupt out of the debt like you cannot get out of the debt that you go for your schooling 112 00:08:37.440 --> 00:08:42.440 And the entire idea at like the original premise of higher education was that you'd now be a more valuable member of society 113 00:08:42.440 --> 00:08:44.440 Be able to be more gainfully employed and provide value 114 00:08:44.440 --> 00:08:51.440 Right the problem is that the promise is under liver right and people go in and get the same level of income after they get a degree as 115 00:08:51.440 --> 00:08:56.440 What they could get before and if you just look at the parallel track of somebody who took the same amount of money 116 00:08:56.440 --> 00:09:00.440 And spent it on what I would consider alternative education over a four-year period 117 00:09:00.440 --> 00:09:07.440 I would say almost invariably the person who spends an alternative education would be far better off four years later than somebody who party for four years at college 118 00:09:07.440 --> 00:09:11.440 And so I think that with technology I borrow this from the baravacan 119 00:09:11.440 --> 00:09:12.440 I just like the quote a lot technology 120 00:09:12.440 --> 00:09:18.440 Democritizes consumption and consolidates production which means if you're the best in the world you get to do it for everyone 121 00:09:18.440 --> 00:09:23.440 And so I think that education is going to become or already has been and will increase in its fragmentation 122 00:09:23.440 --> 00:09:29.440 So you'll have more niche verticals and instead of having generalist which is what formal education is based on liberal arts 123 00:09:29.440 --> 00:09:33.440 Where you get like a good English and math and astic literature and female studies and whatever right 124 00:09:33.440 --> 00:09:36.440 Instead it's how to use air and be to make money 125 00:09:36.440 --> 00:09:38.440 How to drive Uber and make money? 126 00:09:38.440 --> 00:09:41.440 How to you you know do Amazon FBA? 127 00:09:41.440 --> 00:09:44.440 What's hilarious to me is that like there's more Amazon sellers than there are almost 128 00:09:44.440 --> 00:09:47.440 Then you can pick you can pick a profession that's out there in the United States 129 00:09:47.440 --> 00:09:53.440 And there are more individual Amazon sellers than there are almost of any you know sub sub group of individual thing 130 00:09:53.440 --> 00:09:57.440 But why isn't Amazon or e-commerce a a major in undergraduate? 131 00:09:57.440 --> 00:09:59.440 It's a real you know, it's a real way of making money 132 00:09:59.440 --> 00:10:05.440 And so I think that with this huge fragmentation education isn't hasn't gotten close to catching up 133 00:10:05.440 --> 00:10:08.440 But the demand for high value skills has never been higher 134 00:10:08.440 --> 00:10:13.440 And so you have this huge amount of demand for people who want to have skills so they can feed themselves and provide value 135 00:10:13.440 --> 00:10:15.440 And then you have almost no supply 136 00:10:15.440 --> 00:10:20.440 And so what that's given birth to is what I would consider you know the alternative education scene which is 137 00:10:20.440 --> 00:10:26.440 Blowing up right the entire all the gurus and e-learning and all that stuff and some of it's bad some of it's good 138 00:10:26.440 --> 00:10:29.440 But at the end of the day the demand is going to drive it 139 00:10:29.440 --> 00:10:35.440 And so my bet that in my thesis find acquisition.com is I want to find the people who are the best at their specific thing 140 00:10:35.440 --> 00:10:43.440 The best salon girl the best auto mechanic the best gym owner the best all of these things and then wrap the model that already know how to deliver 141 00:10:43.440 --> 00:10:49.440 You know provide exceptional service provide great value how to teach effectively so that people can understand the concepts 142 00:10:49.440 --> 00:10:56.440 And then also we make a lot of profit and then participate in that process so that's that's the thesis behind it 143 00:10:56.440 --> 00:11:02.440 Aimos in Asian quick break just to let you know we've been starting to post on LinkedIn and want to connect with you 144 00:11:02.440 --> 00:11:06.440 All right, so send me a connection request and note letting me know that you listen to the show and I will accept it 145 00:11:06.440 --> 00:11:13.440 There's anyone you think that we should be connected with tag them in one of my religious posts and I will give you all the love in the world 146 00:11:13.440 --> 00:11:15.440 All right, so let's get back to the show 147 00:11:15.440 --> 00:11:22.440 We share similar views on education and that whole system 148 00:11:22.440 --> 00:11:25.440 What won't go too deep because could talk about it forever 149 00:11:25.440 --> 00:11:33.440 You talk about the you know the billionaire goal once you hit that like what's next and how and when do you want to do that buy 150 00:11:33.440 --> 00:11:38.440 I think if I said it it would sound unreasonable but I think that I mean I'll tell you what I have in my head 151 00:11:38.440 --> 00:11:44.440 I don't think I've said it publicly but I think 10 years is what I is what I think I can I mean it'd be cool to do it sooner than that 152 00:11:44.440 --> 00:11:47.440 And that's boring you know a global meltdown and reset or whatever 153 00:11:47.440 --> 00:11:56.440 You know like an erasing of currencies and crypto really in the world but you know short of that happening and as long as you know whatever the recession that is coming comes in 154 00:11:56.440 --> 00:12:02.440 It's just a normal level recession and not like a global depression meltdown. I think that in 10 years we could get there 155 00:12:02.440 --> 00:12:10.440 And that's just based on normal like just based on the assets that we already have how I plan on allocating the assets and what kinds of returns I think will be able to reasonably expect 156 00:12:10.440 --> 00:12:16.440 That's where that's that's based out of because all I have to really do is get to a hundred million in EBITDA in 10 years 157 00:12:16.440 --> 00:12:22.440 And then the company you know the portfolio I'll have will be worth a billion that's what I have to do so I feel like I can do that though 158 00:12:22.440 --> 00:12:26.440 I'm curious as well kind of like what would be next once you hit that? 159 00:12:26.440 --> 00:12:34.440 So what would be next is just continued as Alex is boring recipe for success is just keep doing what's working 160 00:12:34.440 --> 00:12:40.440 I would just continue to do that but I think that what'll be different about acquisition.com the way in the designing it is 161 00:12:40.440 --> 00:12:46.440 I'm trying to design it so that everybody every single party that touches it benefits 162 00:12:46.440 --> 00:12:54.440 So the vast majority of the like because there's a time it's like an ecosystem with what I'm trying to build so everybody who consumes all the content for free 163 00:12:54.440 --> 00:13:00.440 Right gets hopefully value foreign access to the time that they're investing because that is the real cost is the time that you're investing in consuming the content 164 00:13:00.440 --> 00:13:04.440 Right and so if you get value foreign access of that then you will be left better off 165 00:13:04.440 --> 00:13:12.440 And that's going to be 99.9% of people because I'm not selling anything for the 0.1% or 0.01% of companies that we may end up you know partnering with 166 00:13:12.440 --> 00:13:18.440 They're doing some sort of investment dough with those companies will benefit because we'll be able to directly invest in them and we'll help them help them grow 167 00:13:18.440 --> 00:13:26.440 The team that I have within acquisition.com I'm recruiting the absolute best in the world so we're talking about people who have uncapped earning potential 168 00:13:26.440 --> 00:13:33.440 So they can make five hundred thousand a million two million dollars a year five million dollars a year within that structure 169 00:13:33.440 --> 00:13:39.440 So the people who will work for me will be able to make you know tremendous amounts of income and create their own independent wealth 170 00:13:39.440 --> 00:13:48.440 And then obviously acquisition.com as a portfolio itself has to make money and then maybe in the future I'll be able to help all of those company you know all those people they could reinvest their own money 171 00:13:48.440 --> 00:13:59.440 And then also participate as both an investor and a and a doer and so that's what I'm trying to create is just a huge ecosystem that just creates value for all parties that are involved 172 00:13:59.440 --> 00:14:07.440 Yeah, I love it. So I want to dive into your framework more but I have to ask one question selfishly it's not something down here 173 00:14:07.440 --> 00:14:15.440 Like dude if you want to become a billionaire wouldn't the fastest way from my perspective and this comes from I've interviewed a lot of billionaires 174 00:14:15.440 --> 00:14:21.440 Spoken to a lot of like extraordinary successful people probably hundreds at this point 175 00:14:21.440 --> 00:14:31.440 There is no doubt about it at the fastest way from my perspective to acquire and generate serious amounts of personal wealth is starting a software company 176 00:14:31.440 --> 00:14:34.440 And getting it to a hundred million ARR 177 00:14:34.440 --> 00:14:38.440 Why don't you do that like you're a super smart guy why wouldn't you just focus on that? 178 00:14:39.440 --> 00:14:47.440 It's a really good question it's it's what I mean my wife and I talk about all the time because I say the same I mean we go back and forth on this thing 179 00:14:47.440 --> 00:14:50.440 I'll walk you through the decision making process or at least the reasoning behind it 180 00:14:50.440 --> 00:14:57.440 So I think that software if you look at the people who are billionaires right many of them created through software now 181 00:14:57.440 --> 00:15:03.440 And so what I feel like is not represented is the many people who try to create it with software and failed 182 00:15:04.440 --> 00:15:11.440 And so if we're looking at the ones who become billionaires it's like VC if I bet on 50 one of them or two of them are going to hit it 183 00:15:11.440 --> 00:15:15.440 But if you're the entrepreneur in the one you're success likelihood is far lower 184 00:15:15.440 --> 00:15:23.440 Whereas I feel like if I invest the way that I plan on investing I will have a vehicle that compounds capital at a very high rate of return 185 00:15:23.440 --> 00:15:28.440 And I can diversify my risk and and virtually guarantee that I get there 186 00:15:28.440 --> 00:15:37.440 And so that's the it's a risk analysis which is I could probably hit bigger but the risk that I don't hit it is high 187 00:15:37.440 --> 00:15:44.440 It's reasonable at least whereas the risk that I don't hit it on the other side I feel like is is dramatically lower 188 00:15:44.440 --> 00:15:48.440 And I still have software companies that are coming to me that I can still participate in that process 189 00:15:48.440 --> 00:15:52.440 So that's that's the that's the overarching reasoning behind it 190 00:15:52.440 --> 00:15:56.440 Now that being said maybe in three years we'll get on here and I'll be like you know what man I was full of shit 191 00:15:56.440 --> 00:15:58.440 I saw the software opportunity and I crushed it 192 00:15:58.440 --> 00:16:03.440 So maybe that's but where I currently stand and I think part of that's because my heroes are like 193 00:16:03.440 --> 00:16:06.440 Charlie Munger and Warren Buffett like those guys from my absolute 194 00:16:06.440 --> 00:16:11.440 Heroes in terms of how they live their lives and how they make decisions and how they think through things 195 00:16:11.440 --> 00:16:16.440 And so that's I think that's been a big influence on why I'm choosing to go in this direction 196 00:16:16.440 --> 00:16:20.440 Yeah that makes sense so you go and like the portfolio model 197 00:16:20.440 --> 00:16:23.440 Look to be honest it's probably more fun that way too let's be honest 198 00:16:23.440 --> 00:16:27.440 That was a big part of it because later when I spent 18 months figuring out what do we want to do 199 00:16:27.440 --> 00:16:30.440 What do we really want to do is the next thing the next season for us 200 00:16:30.440 --> 00:16:35.440 And I had all these like non-negotiables right I was like I don't know if I want to run another one 201 00:16:35.440 --> 00:16:40.440 End to end I mean I can do it I just I don't know if I want to do another you know grind first three years again 202 00:16:40.440 --> 00:16:46.440 Maybe but I don't know what's something that I won't get bored of because for me I get bored in about 24 months 203 00:16:46.440 --> 00:16:51.440 That's my that's my window I know that and so if I can participate in lots of different companies 204 00:16:51.440 --> 00:16:57.440 I think that I will be able to keep my attention on one thing and I think that's probably the biggest 205 00:16:57.440 --> 00:17:03.440 It's probably the biggest one because like every company we've started has gone from zero to two million a month in less than a year 206 00:17:03.440 --> 00:17:08.440 Like every company so we know how to scale them I just you know what I'm saying 207 00:17:09.440 --> 00:17:14.440 Do you talk about crafting an offer that's so good that people feel stupid saying no 208 00:17:14.440 --> 00:17:21.440 So why is the offer the most important part when it comes to selling anything or building a business in general 209 00:17:21.440 --> 00:17:29.440 I struggle with saying it's the most important because you and I both know it's it's like an engine right like a business is like an engine 210 00:17:29.440 --> 00:17:34.440 You need wheels as much as you need cylinders as much as you gas all of them are important right 211 00:17:34.440 --> 00:17:39.440 But I see the offer is like the spark what we're actually giving them exchange for their money 212 00:17:39.440 --> 00:17:42.440 And I think most entrepreneurs were starting out do it out of sequence 213 00:17:42.440 --> 00:17:51.440 And so they try and fix step two or step three and they're like hey, why is my copy bad or why are my ads not performing when they're not starting with the very first part of the process 214 00:17:51.440 --> 00:17:59.440 Which is that initial transaction right and so a lot of my learnings around the offer came out of necessity because I prefer 215 00:17:59.440 --> 00:18:07.440 To be dealing with tremendous demand and fixing operational problems rather than trying to generate demand and so 216 00:18:07.440 --> 00:18:14.440 My belief is like the three piece of scaling that I adhere to is 0 to a million is promotion 1 to 10 million is product 217 00:18:14.440 --> 00:18:19.440 10 to 100 is people right and you can say well if you have the right people you can do that 218 00:18:19.440 --> 00:18:24.440 Yeah, but that's not typically how it actually happens right so you have to know enough promotion because if you have nothing 219 00:18:24.440 --> 00:18:28.440 Then you need to get people to find out right so you have to start generating some traction 220 00:18:28.440 --> 00:18:33.440 Once you get the traction and this is where I think people mess up is they get their first dollar from promoting 221 00:18:33.440 --> 00:18:38.440 And then I need to spend more dollars promoting when it's like the whole point here is to get the product market fit 222 00:18:38.440 --> 00:18:43.440 And make sure that the product is exceptional and we're getting viability from it people are sharing it we're getting amazing reviews 223 00:18:43.440 --> 00:18:48.440 All of that stuff is happening because then when we go back to really scaling 224 00:18:48.440 --> 00:18:52.440 We're going to get so much more return on every dollar of advertising or media that we're buying 225 00:18:52.440 --> 00:18:57.440 That it all makes the whole machine work whereas most people then try and dump more promotion on top of it 226 00:18:57.440 --> 00:18:59.440 But the product isn't fixed 227 00:18:59.440 --> 00:19:05.440 And so the reason that the offer was so important was because just getting that first traction that first spark started 228 00:19:05.440 --> 00:19:11.440 It's so much easier to just give someone everything they possibly could dream of and then work backwards from there 229 00:19:11.440 --> 00:19:19.440 I'm curious kind of you said also that the past few companies that you've worked with you've taken from zero to two million a month in a year 230 00:19:19.440 --> 00:19:20.440 Is that correct? 231 00:19:20.440 --> 00:19:25.440 Yeah so prestige launched 1.7 million a month by month I think like four 232 00:19:25.440 --> 00:19:32.440 Do you launch two million a month within 12 months of us hitting a switching a licensing 233 00:19:32.440 --> 00:19:36.440 And then Alan was at 1.7 as well so just under two 234 00:19:36.440 --> 00:19:44.440 Yeah wow okay so multiple different industries which was the steepest learning curve 235 00:19:44.440 --> 00:19:50.440 Software why I see this like there's three pieces where you've got acquisition you've got product and you've got ops 236 00:19:50.440 --> 00:19:58.440 Shared services what everyone will call it right so with the first two companies so with with Jim launch the Jim licensing company acquisition 237 00:19:58.440 --> 00:20:04.440 I could cover product I could cover because I knew everything about because what I was showing was how to acquire customers 238 00:20:04.440 --> 00:20:14.440 Just within a smaller niche right and run the business model and all the other things so I had I understood both the acquisition and the delivery to a to an immense amount of detail right I knew I was a 239 00:20:14.440 --> 00:20:22.440 I would say it was a master at it I'd master level both of these things and then my wife is a is a prodigious operator like she can build a team around 240 00:20:22.440 --> 00:20:29.440 Anything which is why we've been able to scale so many things so quickly so with the first company all three pieces were in place it blew up 241 00:20:30.440 --> 00:20:37.440 The second company I contracted the best doctor that I'm aware of to create all the formulas for all the products that we sold 242 00:20:37.440 --> 00:20:43.440 And so I had the acquisition I had the product and then we had the operational piece again with my wife 243 00:20:43.440 --> 00:20:49.440 With software I knew how to acquire the customers we knew how to build the team but I'm not a code guy 244 00:20:49.440 --> 00:20:56.440 And the mistake that I made when I was building Alan was that I did not have a technical co-founder which is what I should have had 245 00:20:56.440 --> 00:21:00.440 And so I had an outsourced development team and I was a big mistake I shouldn't have done that 246 00:21:00.440 --> 00:21:05.440 And I just didn't and the thing is is it's so difficult you know I was I was blind 247 00:21:05.440 --> 00:21:10.440 Negotiating is how I'd say it's like you I would say hey can we change this button right and then you'd say 248 00:21:10.440 --> 00:21:13.440 You know it takes a month and I'd be like 249 00:21:13.440 --> 00:21:19.440 I feel like you can do better than that I had no idea could have taken two years I have no clue so I'm blind negotiating 250 00:21:19.440 --> 00:21:23.440 Trying to just keep a front but I have no clue what I'm talking about 251 00:21:23.440 --> 00:21:30.440 And I hate operating from some sort of that kind of information disadvantage and so that was the that was why it was so difficult 252 00:21:30.440 --> 00:21:34.440 Now I blew the doors off for the acquisition because I can go market and sell all day long 253 00:21:34.440 --> 00:21:41.440 But with software to your point getting you know 100 million ARR to get the 10x multiple that you're going to get on it 254 00:21:41.440 --> 00:21:47.440 It's about having negative turn and that's going to be all product driven right that's going to be making sure that you exit amazing engineering teams on point 255 00:21:47.440 --> 00:21:50.440 You know like people are promoting like crazy all that kind of stuff 256 00:21:50.440 --> 00:21:53.440 And so I feel like it's interesting because in the internet marketing world 257 00:21:53.440 --> 00:21:57.440 Because I see this all over the place so many of these guys are switching to trying to do software 258 00:21:57.440 --> 00:22:01.440 But they're selling the software the same way they sell their digital products 259 00:22:01.440 --> 00:22:04.440 Which means they have a shit software and they're just selling it and then everyone's leaving 260 00:22:04.440 --> 00:22:06.440 And they're like I'm going to be able to sell this for a ton of money. It's like no you're not 261 00:22:06.440 --> 00:22:11.440 You're only going to be able to sell for a ton of money if if you didn't market it still grows 262 00:22:11.440 --> 00:22:16.440 Most nations hope you enjoyed that podcast got some nugs on the hardwiring versus born 263 00:22:16.440 --> 00:22:20.440 So that you can no longer use that as an excuse or use an excuse for other people that you know 264 00:22:20.440 --> 00:22:24.440 Why you hopefully don't have to start a software company to become incredibly wealthy 265 00:22:24.440 --> 00:22:27.440 And hopefully give you a couple tips and tricks that you can use to improve the offers you have 266 00:22:27.440 --> 00:22:30.440 So you can get more customers making pay more and keep them longer 267 00:22:30.440 --> 00:22:34.440 Stay tuned for part two where we dig into even more Mama Jamba of business stuff 268 00:22:36.440 --> 00:22:39.440 You