WEBVTT 1 00:00:00.000 --> 00:00:03.500 I want to talk to you about how I made my first million dollars in profit. 2 00:00:03.500 --> 00:00:07.940 My due, the reason I'm so big on profit rather than revenue is that at that point, I had 3 00:00:07.940 --> 00:00:10.900 already made, you know, I was already making a couple of million dollars a year between 4 00:00:10.900 --> 00:00:14.580 all the different things that I was doing, but I was taking home basically nothing. 5 00:00:14.580 --> 00:00:17.620 Because I was so spread then, I wasn't paying attention to profit. 6 00:00:17.620 --> 00:00:21.100 I was just looking at revenue, trying to beef myself up and feel status rather than thinking 7 00:00:21.100 --> 00:00:23.300 about what I was actually taking home. 8 00:00:23.300 --> 00:00:29.180 And I told you in a different video how I got an head on collision in a DUI at 60 miles 9 00:00:29.180 --> 00:00:31.580 an hour on the highway and walked away from it. 10 00:00:31.580 --> 00:00:35.100 And that was kind of the catalyst that ended up changing my life in a lot of ways. 11 00:00:35.100 --> 00:00:39.100 Mostly because I decided to confront decisions that I had been putting off and make hard 12 00:00:39.100 --> 00:00:43.020 calls that I didn't want to make to force myself to focus on one thing. 13 00:00:43.020 --> 00:00:46.980 And so what I want to do in this video is talk to you about the result of that decision 14 00:00:46.980 --> 00:00:52.780 and what kind of happened and transpired in the next six to 12 months, which is anything, 15 00:00:52.780 --> 00:00:54.220 anything but a Cinderella story. 16 00:00:54.220 --> 00:00:55.220 I made the calls. 17 00:00:55.220 --> 00:00:56.940 I went all in on gym launch. 18 00:00:56.940 --> 00:00:59.380 I basically fire sold my other businesses. 19 00:00:59.380 --> 00:01:04.260 And just as a quick tangent on that, a lot of times I think the great thing that we have 20 00:01:04.260 --> 00:01:08.740 is sitting right in front of us after we let go of the things that are holding us down. 21 00:01:08.740 --> 00:01:13.340 I'm a big believer in the theory of constraint, which is a system will grow up to its 22 00:01:13.340 --> 00:01:14.620 basically its bottleneck. 23 00:01:14.620 --> 00:01:18.340 And then until you relieve that, systems will grow as long as they are not constrained. 24 00:01:18.340 --> 00:01:21.500 And so most of us are constrained in many ways, and we just do not recognize them, which 25 00:01:21.500 --> 00:01:24.740 is why we have things called limiting beliefs that is a constraint. 26 00:01:24.740 --> 00:01:28.860 And for me, in a very real way, I had constraints in terms of all the different things that I 27 00:01:28.860 --> 00:01:30.020 was allocating my attention to. 28 00:01:30.020 --> 00:01:34.540 I had, you know, I think literally like nine or ten businesses, I'll use quotes here, 29 00:01:34.540 --> 00:01:35.900 that I was trying to run at the same time. 30 00:01:35.900 --> 00:01:38.900 And I was spread so thin that I could barely allocate anything and I was working every 31 00:01:38.900 --> 00:01:39.900 hour of the day. 32 00:01:39.900 --> 00:01:42.700 And I was drinking half a bottle of Johnny Walker at night, so I could just go to sleep. 33 00:01:42.700 --> 00:01:44.660 And so anyways, I got in the head on collision. 34 00:01:44.660 --> 00:01:49.540 I decided to make the next move, which was going all in on gym launch. 35 00:01:49.540 --> 00:01:52.900 And this is the beginning of yet another hard road ahead. 36 00:01:52.900 --> 00:01:58.220 And so at this time, for those of you who don't know, I started flying around and doing 37 00:01:58.220 --> 00:01:59.500 done for you gym launches. 38 00:01:59.500 --> 00:02:02.660 And so what that was was basically Lillyn, I would go and do a gym turnaround. 39 00:02:02.660 --> 00:02:05.300 I didn't like to use that word because I didn't think gym owners liked it. 40 00:02:05.300 --> 00:02:08.660 I was originally going to call it gym rescue, but no one wants to be rescued, so I called 41 00:02:08.660 --> 00:02:10.700 it gym launch and everyone was okay with that name. 42 00:02:10.700 --> 00:02:13.260 We would fly out to brick and mortar facilities. 43 00:02:13.260 --> 00:02:14.260 We'd sit at the front desk. 44 00:02:14.260 --> 00:02:16.500 I would spend my own money on everything. 45 00:02:16.500 --> 00:02:17.500 So the offer was pretty simple. 46 00:02:17.500 --> 00:02:20.100 I said, I would fill your gym in 30 days for free. 47 00:02:20.100 --> 00:02:21.420 That was the offer. 48 00:02:22.020 --> 00:02:23.820 I was like, I'll spend my own money on the ads. 49 00:02:23.820 --> 00:02:27.100 I'll spend my own money on the hotels, the food, the everything. 50 00:02:27.100 --> 00:02:30.660 And the deal is I just get to keep the upfront cash that I collect and then everything 51 00:02:30.660 --> 00:02:32.820 afterwards that's contract failure, you get to keep. 52 00:02:32.820 --> 00:02:34.100 It was a pretty compelling offer, right? 53 00:02:34.100 --> 00:02:35.180 They didn't have to do anything, right? 54 00:02:35.180 --> 00:02:37.700 They would just say yes and then I would show up. 55 00:02:37.700 --> 00:02:40.620 I think I'd ask them for $500 to reserve the date just to make sure that they wouldn't 56 00:02:40.620 --> 00:02:41.660 like not be there. 57 00:02:41.660 --> 00:02:44.500 But I made it a refundable deposit. 58 00:02:44.500 --> 00:02:49.220 But anyways, I would fly out and we would spend all the money in marketing. 59 00:02:49.220 --> 00:02:52.180 And we would sell on average when Laila and I would go, we'd sell on average about 200 60 00:02:52.180 --> 00:02:53.180 people in 21 days. 61 00:02:53.180 --> 00:02:57.100 So we'd average about 10 sales a day and then we would take, you know, then we'd fly 62 00:02:57.100 --> 00:02:58.100 to the next one. 63 00:02:58.100 --> 00:03:01.780 This is kind of what we had been doing in 2016 and I was doing this while also having 64 00:03:01.780 --> 00:03:07.820 six gyms and two agencies and all these other things that were going on and I was spread 65 00:03:07.820 --> 00:03:11.500 wildly too thin and that's when I got in the DUI and then decided to end everything 66 00:03:11.500 --> 00:03:12.780 except for gym lunch. 67 00:03:12.780 --> 00:03:18.860 We ended up basically, I had to, I had to, I sold five of the six gyms. 68 00:03:18.860 --> 00:03:23.060 I shut down the two agencies and then I had one gym that was left over and I put the 69 00:03:23.060 --> 00:03:27.260 money from the sale of those other businesses, which is not a lot, into kind of the last 70 00:03:27.260 --> 00:03:28.260 facility. 71 00:03:28.260 --> 00:03:33.820 The partner that I had at that facility ended up feeling like I had been taking distributions 72 00:03:33.820 --> 00:03:39.940 somehow from the business which I had it and then he took what he believed was rightful 73 00:03:39.940 --> 00:03:44.860 compensation for him not being involved in that gym anyways and basically took the rest 74 00:03:44.860 --> 00:03:46.980 of the money out of the account. 75 00:03:46.980 --> 00:03:50.780 And so I basically was left with nothing so I was truly at this, this, you know, rock 76 00:03:50.780 --> 00:03:55.660 bottom moment of just gotten to DUI, I just got rid of all my gyms, I put all the money 77 00:03:55.660 --> 00:04:03.780 from those gyms into this last facility, that money got taken and I then decided to close 78 00:04:03.780 --> 00:04:08.620 that one gym down and then when I did that, I couldn't sell anymore at that facility 79 00:04:08.620 --> 00:04:10.660 to generate cash flow because I wanted to close it down. 80 00:04:10.660 --> 00:04:14.260 I didn't want to be involved in that gym anymore. 81 00:04:14.260 --> 00:04:18.620 And so I basically stomached rent and payroll out of there with no new cash flow coming 82 00:04:18.620 --> 00:04:24.540 in and I watched my bank account basically go from some money to no money. 83 00:04:24.540 --> 00:04:28.980 And so at the end of that, we shut the gym down, I got tons of refunds and things like 84 00:04:28.980 --> 00:04:33.820 that that ended up happening afterwards because people are weird when you shut up business 85 00:04:33.820 --> 00:04:35.220 down so heads up. 86 00:04:35.220 --> 00:04:38.240 And so we just kept, but the coach that I had at the time was just like just write the 87 00:04:38.240 --> 00:04:44.560 checks, do write by everyone and you'll be able to, you know, escape this thing unscathed 88 00:04:44.560 --> 00:04:45.560 emotionally. 89 00:04:45.560 --> 00:04:48.760 And more or less, I did, I was able, like that was some of the best advice I ever got. 90 00:04:48.760 --> 00:04:51.680 Like I just, I didn't try and pursue anything with the partner. 91 00:04:51.680 --> 00:04:56.800 I just wrote the checks for all the customers who, even if, even if we had to fill the services 92 00:04:56.800 --> 00:05:01.040 which I just wrote the checks and I actually didn't lay low wrote the checks because I was 93 00:05:01.040 --> 00:05:05.240 so like destroyed by this entire decision, you know, process. 94 00:05:05.240 --> 00:05:07.480 But anyways, I was completely, you know, clean slate at that point. 95 00:05:07.480 --> 00:05:13.880 I think all in all, I had $23,000 left over at that point. 96 00:05:13.880 --> 00:05:18.200 And so after, after trying six pieces and all that stuff, I like nothing left. 97 00:05:18.200 --> 00:05:21.040 And this was hard for me because I just spent four years building, you know, six facilities 98 00:05:21.040 --> 00:05:24.000 and all that stuff and I almost had nothing to show for it. 99 00:05:24.000 --> 00:05:26.400 And that was one of the biggest lessons that I've had is that like you have all these 100 00:05:26.400 --> 00:05:29.840 skills and experiences and character traits that you developed to show for it. 101 00:05:29.840 --> 00:05:33.080 Like the entrepreneurial journey is one that improves you, not anything else. 102 00:05:33.080 --> 00:05:34.840 And so that's why I'm such a big believer in that stuff. 103 00:05:34.840 --> 00:05:38.400 I was like, I had these things, these assets that I did not value. 104 00:05:38.400 --> 00:05:44.400 And what's crazy is that in the next, you know, 30 days or so we did 100 something thousand 105 00:05:44.400 --> 00:05:47.920 in sales and so I was like, oh wow, we can do this. 106 00:05:47.920 --> 00:05:53.280 And so anyhow, actually I think what ended up happening is I had almost no money and then 107 00:05:53.280 --> 00:05:56.920 we did a launch and then after all the costs and everything, I think I had 20 something 108 00:05:56.920 --> 00:05:59.960 thousand in money for me. 109 00:05:59.960 --> 00:06:04.000 The next month, Laila and I said we were just focusing purely on this business. 110 00:06:04.000 --> 00:06:07.560 She told all of her friends from high school to quit their jobs, right? 111 00:06:07.560 --> 00:06:12.960 So she had six friends from high school that all were doing MLM, shake mix stuff. 112 00:06:12.960 --> 00:06:16.000 And she said, hey, you know, you should quit that and start selling this stuff. 113 00:06:16.000 --> 00:06:18.960 We can make a hundred bucks a pop instead of, you know, making five dollars on shake mix 114 00:06:18.960 --> 00:06:20.560 and they were all like, awesome, let's do it. 115 00:06:20.560 --> 00:06:24.400 In between month, between, I think it was like November-ish going into January, which 116 00:06:24.400 --> 00:06:27.560 is when we wanted to slate the six gyms that we were going to launch at the same time, 117 00:06:27.560 --> 00:06:28.800 which of course makes sense, right? 118 00:06:28.800 --> 00:06:32.800 Why go from one to two when you go from one to six because it's a brilliant idea of 119 00:06:32.880 --> 00:06:34.080 Alex's, right? 120 00:06:34.080 --> 00:06:37.680 And so we had one month in between where I was going to go launch a gym with Laila. 121 00:06:37.680 --> 00:06:40.320 We were going to do like a hundred grandish and then I was going to be able to, that 122 00:06:40.320 --> 00:06:42.520 was kind of going to be the restart money, right? 123 00:06:42.520 --> 00:06:43.680 So here's what happens next. 124 00:06:43.680 --> 00:06:49.160 I get a text from a guy and he's like, hey, my brother lives in the same city as where 125 00:06:49.160 --> 00:06:50.160 you're starting your new gym. 126 00:06:50.160 --> 00:06:52.480 And I was like, I'm not starting doing a launch. 127 00:06:52.480 --> 00:06:56.280 I was like, okay, he's like, he's a salesman, he really needs a job. 128 00:06:56.280 --> 00:07:00.560 He's got, he's got a baby and he's got another one on the way and it might be a good fit. 129 00:07:00.560 --> 00:07:04.240 So anyways, I knew I needed to take a month to kind of put all the resources together 130 00:07:04.240 --> 00:07:08.920 to start doing the launches at six at a time and training that, those sales guys and everything. 131 00:07:08.920 --> 00:07:12.360 So I was like, okay, that might work because then I don't have to spend all day selling. 132 00:07:12.360 --> 00:07:15.440 And so anyways, I trained him and he crushed it. 133 00:07:15.440 --> 00:07:21.280 In the next 30 days, he did I think 120,000 in sales in December, which is like a hard 134 00:07:21.280 --> 00:07:25.420 month to do it in and be, it was a great first launch for somebody who's new, which also 135 00:07:25.420 --> 00:07:28.480 kind of proved the model to me because I had done it, Laila had done it, but we never 136 00:07:28.480 --> 00:07:31.240 had someone else who wasn't like super tied to me doing it. 137 00:07:31.240 --> 00:07:36.240 Obviously, Laila was more invested than just, you know, just an employee right at the time. 138 00:07:36.240 --> 00:07:37.840 And so it was awesome. 139 00:07:37.840 --> 00:07:38.840 So I was like, super excited. 140 00:07:38.840 --> 00:07:39.840 I was like, sick. 141 00:07:39.840 --> 00:07:41.840 This 100 grand is going to be the launch money for the next thing. 142 00:07:41.840 --> 00:07:43.200 This will be great. 143 00:07:43.200 --> 00:07:47.240 And so at this point, Laila says, this guy's a winner. 144 00:07:47.240 --> 00:07:51.640 I'm going to take him home to meet my family, which is hilarious because I was not a winner 145 00:07:51.640 --> 00:07:52.640 at that time. 146 00:07:52.640 --> 00:07:57.000 And so anyways, I'm at her at her family's house, Christmas Eve. 147 00:07:57.000 --> 00:07:59.160 And we had been selling for three weeks at this point. 148 00:07:59.160 --> 00:08:02.240 So we had, you know, 70, 80,000 in sales at this point. 149 00:08:02.240 --> 00:08:06.800 And what was weird was I was running all the money through just my gym processor because 150 00:08:06.800 --> 00:08:10.560 I still, you know, maintained the processing, like my POS. 151 00:08:10.560 --> 00:08:14.680 And so anyways, I always got deposits on Tuesdays and I was like, huh, this is weird. 152 00:08:14.680 --> 00:08:17.480 We haven't gotten deposits since, like, I didn't get a deposit last Tuesday. 153 00:08:17.480 --> 00:08:19.160 And I was like, okay, that's odd. 154 00:08:19.160 --> 00:08:22.560 And I called them and they're like, hey, you know, I gave it like three or four days because 155 00:08:22.560 --> 00:08:24.160 I was like, you know, maybe it's delayed or something. 156 00:08:24.160 --> 00:08:27.520 And it had been a holiday because it was in the holiday season, whatever. 157 00:08:27.520 --> 00:08:29.760 And so the deposit is supposed to hit. 158 00:08:29.760 --> 00:08:30.760 It doesn't. 159 00:08:30.760 --> 00:08:33.000 I wait some days, keep checking, doesn't hit. 160 00:08:33.000 --> 00:08:34.000 I call them. 161 00:08:34.000 --> 00:08:36.000 They say, hey, you're in an annual review. 162 00:08:36.000 --> 00:08:37.000 It's standard. 163 00:08:37.000 --> 00:08:38.000 Nothing to worry about. 164 00:08:38.000 --> 00:08:39.000 And I was like, that's weird. 165 00:08:39.000 --> 00:08:40.000 I've been with you guys for five years. 166 00:08:40.000 --> 00:08:42.080 I've never had an annual review. 167 00:08:42.080 --> 00:08:43.080 Interesting. 168 00:08:43.080 --> 00:08:45.840 And then waited a couple of days, called again, was like, hey, man, like, we're really going 169 00:08:45.840 --> 00:08:46.840 to need these funds. 170 00:08:46.840 --> 00:08:47.840 Like, I need you to deposit these. 171 00:08:47.840 --> 00:08:52.840 And they're like, yeah, yeah, we're just working through some final things, blah, blah, 172 00:08:52.840 --> 00:08:53.840 blah. 173 00:08:53.840 --> 00:08:56.480 And so Christmas Eve, I call them. 174 00:08:56.480 --> 00:09:01.120 And we're supposed to launch six gyms starting on the 26th, so two days later. 175 00:09:01.120 --> 00:09:03.960 I call the guys up, and I was like, I'm not getting off the phone until you send me 176 00:09:03.960 --> 00:09:04.960 the money. 177 00:09:04.960 --> 00:09:07.160 Like, I'm not like, I need, there's a hundred grand that's sitting there. 178 00:09:07.160 --> 00:09:08.240 Like, I need that money. 179 00:09:08.240 --> 00:09:12.880 The guy was like, sorry, you know, we've seen some regular activity in your account. 180 00:09:12.880 --> 00:09:17.160 And this is because we had written all these refund checks for clients when I was closing 181 00:09:17.160 --> 00:09:20.800 down the gym, the last gym that I had. 182 00:09:20.800 --> 00:09:22.400 So there's been some regular activity. 183 00:09:22.400 --> 00:09:26.040 This isn't the way that, you know, you know, it seems like you have a virtual business 184 00:09:26.040 --> 00:09:27.040 now. 185 00:09:27.040 --> 00:09:28.040 That's not what this is intended for. 186 00:09:28.040 --> 00:09:30.720 This is supposed to be for a single brick and mortar location. 187 00:09:30.720 --> 00:09:35.520 So we're going to hold on to all the funds for six months, and I lost it. 188 00:09:35.520 --> 00:09:39.520 And for those of you who don't know me, when I lose it, I don't actually get like explosive 189 00:09:39.520 --> 00:09:41.720 I just get incredibly cold and very mean. 190 00:09:41.720 --> 00:09:44.800 And so I probably said some of the meanest thing, like I didn't cost. 191 00:09:44.800 --> 00:09:47.600 I was just like, I destroyed the person's character that I was talking to on the phone, 192 00:09:47.600 --> 00:09:50.120 like that person questioned why they were alive. 193 00:09:50.120 --> 00:09:54.960 And so anyways, I got off the phone and Layla and I, as parents are supposed to go to 194 00:09:54.960 --> 00:10:00.200 the movies because it's, it's, it's Christmas Eve and her dad was like, you know, he seems 195 00:10:00.200 --> 00:10:01.200 a little stressed. 196 00:10:01.200 --> 00:10:05.480 She's like, it's here always this way. 197 00:10:05.480 --> 00:10:09.120 And of course, I was a little bit stressed at that time. 198 00:10:09.120 --> 00:10:12.840 And so here's what was crazy is that as we're going to the movie theaters, I'm just like 199 00:10:12.840 --> 00:10:13.840 completely numb. 200 00:10:13.840 --> 00:10:15.440 I just just like, I feel dead on the inside. 201 00:10:15.440 --> 00:10:17.920 And so we go to the theaters, the movie's playing in front of me. 202 00:10:18.000 --> 00:10:19.360 I'm not even watching the movie. 203 00:10:19.360 --> 00:10:22.320 Layla holds my hand and she's like, what's going on? 204 00:10:22.320 --> 00:10:24.320 I was like, I'll tell you later. 205 00:10:24.320 --> 00:10:25.560 She takes my pulse. 206 00:10:25.560 --> 00:10:30.400 My resting pulse is like 120 in a dark movie theater at age 27. 207 00:10:30.400 --> 00:10:32.600 I was stressed out of my mind. 208 00:10:32.600 --> 00:10:36.680 And so we left the movies and I told her I was like, the money's not coming. 209 00:10:36.680 --> 00:10:37.880 And she was like, what do you mean? 210 00:10:37.880 --> 00:10:39.120 And I was like, they're keeping it. 211 00:10:39.120 --> 00:10:40.120 She's like, can they do that? 212 00:10:40.120 --> 00:10:41.120 I was like, apparently. 213 00:10:41.120 --> 00:10:45.480 Like, this is the first time I'd even known this that a processor can hold money. 214 00:10:45.480 --> 00:10:47.480 And so anyways, I got home. 215 00:10:47.480 --> 00:10:50.880 I still owed the salesman from the last month who had done that huge launch. 216 00:10:50.880 --> 00:10:53.960 Like, all these sales that had happened, somebody had sold them, right? 217 00:10:53.960 --> 00:10:55.800 But I didn't collect the money from it. 218 00:10:55.800 --> 00:10:59.320 And so I owed a $22,000 commission check and I had $23,000 left. 219 00:10:59.320 --> 00:11:01.440 And it was on money that I never received. 220 00:11:01.440 --> 00:11:08.120 And so in congruence with the lesson that I had learned from the clean exit of all 221 00:11:08.120 --> 00:11:10.040 these other things, which was like, just do right by everyone. 222 00:11:10.040 --> 00:11:13.560 And then you won't have any emotional scars that would carry with you. 223 00:11:13.560 --> 00:11:19.600 And so I wrote the check, actually I wired it for $22,000 and $1,000 left. 224 00:11:19.600 --> 00:11:21.480 And that's when we got home. 225 00:11:21.480 --> 00:11:26.360 And I told Layla, you know, everything that I had done, I was like, I have $1,000 left. 226 00:11:26.360 --> 00:11:30.360 And she told her six friends to quit their jobs. 227 00:11:30.360 --> 00:11:35.200 And we were going to start launching gyms two days later on the 26th. 228 00:11:35.200 --> 00:11:39.120 And I was like, I have $1,000 and I have a credit card that has $100,000 limit. 229 00:11:39.120 --> 00:11:42.720 I was like, I will do this, I was like, but this could go horribly wrong. 230 00:11:42.720 --> 00:11:45.480 So you don't have to stay with me if you don't want to. 231 00:11:45.480 --> 00:11:50.560 And this was the moment for me that I knew I was going to marry Layla. 232 00:11:50.560 --> 00:11:53.400 And she said, I would sleep with you under a bridge if it came to that. 233 00:11:53.400 --> 00:11:55.000 She's like, we'll get through it. 234 00:11:55.000 --> 00:11:58.800 And that was when I just like, I wanted to like, you know, I would have been teary, 235 00:11:58.800 --> 00:12:02.560 but I was so emotionally numb at this point that I just wanted to just like keep moving 236 00:12:02.560 --> 00:12:06.160 forward and keep getting through it. 237 00:12:06.160 --> 00:12:10.080 And so anyways, 48 hours later, I make all the ads. 238 00:12:10.120 --> 00:12:12.960 I set up all the campaigns, all the funnels, all the everythings. 239 00:12:12.960 --> 00:12:17.280 And I remember turning the campaigns on for all the six locations that we're going 240 00:12:17.280 --> 00:12:20.400 to do. It was like off to on, off to on, off to on, off to on. 241 00:12:20.400 --> 00:12:22.280 And I remember I was sweating. 242 00:12:22.280 --> 00:12:25.800 I was literally sweating when this was happening because I just felt such dread. 243 00:12:25.800 --> 00:12:27.640 I was like, this could literally just ruin me. 244 00:12:27.640 --> 00:12:30.960 I like, right now I have no money, but I've never, I'm not in debt. 245 00:12:30.960 --> 00:12:37.560 And I'm going to be going in debt at a rate of $3,300 per day of money that I do not have. 246 00:12:37.560 --> 00:12:41.280 And so anyways, I turned it on and the six guys were at the locations. 247 00:12:41.280 --> 00:12:47.280 I was, and it was $3,300 a day because I was paying for hotel, airfare, food, car, ad 248 00:12:47.280 --> 00:12:49.880 spend and commissions every single day for six guys. 249 00:12:49.880 --> 00:12:52.800 And I had, remember, I had $1,000, right? 250 00:12:52.800 --> 00:12:55.760 And so it was all coming out of a credit card. 251 00:12:55.760 --> 00:13:00.240 And the next 30 days, and we ended up getting canceled by the processor, right? 252 00:13:00.240 --> 00:13:02.000 I told you it's the beginning of the story. 253 00:13:02.000 --> 00:13:05.520 So I started all this and I had no way to process money. 254 00:13:05.520 --> 00:13:09.760 So these guys are getting leads, they're making calls, they're closing deals. 255 00:13:09.760 --> 00:13:12.000 And I can't process the money, all right? 256 00:13:12.000 --> 00:13:16.880 And so we're sitting there, right? 257 00:13:16.880 --> 00:13:18.760 And these contracts are just coming in, right? 258 00:13:18.760 --> 00:13:22.280 We had them scan them so we had this mobile app and we had this central drop box, which 259 00:13:22.280 --> 00:13:23.760 of course is not PCI compliant. 260 00:13:23.760 --> 00:13:26.320 I had no idea what PCI compliance was. 261 00:13:26.320 --> 00:13:30.560 And so we had this one lady that we used to work if I did that I was paying part time 262 00:13:30.560 --> 00:13:31.560 to processes. 263 00:13:31.560 --> 00:13:36.480 Mind you, I didn't understand how much work this was because we were doing 50 sales 264 00:13:36.480 --> 00:13:41.000 a day, right, between these locations at like 500 bucks a pop. 265 00:13:41.000 --> 00:13:44.920 And I was paying someone for part time, four hours a day of contract work, which was just 266 00:13:44.920 --> 00:13:45.920 insane. 267 00:13:45.920 --> 00:13:49.560 It was probably two people's worth of work and I was paying somebody part time. 268 00:13:49.560 --> 00:13:54.640 It ended up that ended up blowing up because she couldn't do that and her full time job. 269 00:13:54.640 --> 00:13:58.040 And we didn't even have a way to process the money anyways, right? 270 00:13:58.040 --> 00:14:02.360 And so anyways, I'm calling everybody I know to try and figure out I was like, hey, can 271 00:14:02.360 --> 00:14:06.240 you process this and then you can keep 10% and just send me the rest of the money and 272 00:14:06.240 --> 00:14:10.040 people were like, I don't know, man, I don't know if I want to do that. 273 00:14:10.040 --> 00:14:11.680 And so no one would process the money for me. 274 00:14:11.680 --> 00:14:15.560 And so I called, you know, every person I knew and then I finally got in touch with a guy 275 00:14:15.560 --> 00:14:20.640 named Alex Roy at the time who specialized in like high risk processing, which is basically 276 00:14:20.640 --> 00:14:22.160 the category I was in at that time. 277 00:14:22.160 --> 00:14:24.920 And he said I can get you set up and I was like, okay, cool. 278 00:14:24.920 --> 00:14:28.160 He said, but given the record that you have right now, because you just refunded all 279 00:14:28.160 --> 00:14:31.200 those people at the last, okay, she's like, they're going to want a reserve, which means 280 00:14:31.200 --> 00:14:33.720 they keep a certain percentage no matter what. 281 00:14:33.720 --> 00:14:35.720 And they're going to put a limit on how much you can charge. 282 00:14:35.720 --> 00:14:36.720 And I was like, okay, cool. 283 00:14:36.720 --> 00:14:41.800 He said, they'll give you a $50,000 limit and I was like, dude, I need like four times 284 00:14:41.800 --> 00:14:42.800 that. 285 00:14:42.800 --> 00:14:45.160 And he was like, sorry, man, that's what I can get you. 286 00:14:45.160 --> 00:14:48.920 And so the last week of January, all right, so we were doing, you know, we're doing 287 00:14:48.920 --> 00:14:54.600 five, six, you know, a thousand a day in sales, maybe more than that. 288 00:14:54.600 --> 00:14:56.080 And I had no way of processing it, right? 289 00:14:56.080 --> 00:15:02.280 And the last week I get this processor for $50,000 and I run $50,000 in a day, right? 290 00:15:02.280 --> 00:15:05.320 And he's like, okay, here's the good news is that it's per month. 291 00:15:05.320 --> 00:15:08.960 So it was the end of, he's like, so this week can do 50 and the next week you can do 50. 292 00:15:08.960 --> 00:15:13.640 And then I'll see if I can get more lined up, more processors at 50K to allow you to start 293 00:15:13.640 --> 00:15:14.640 processing for them. 294 00:15:14.640 --> 00:15:16.240 And I was like, okay, fine. 295 00:15:17.200 --> 00:15:19.600 Hey guys, love that you're listening to the podcast. 296 00:15:19.600 --> 00:15:23.680 If you ever want to have the video version of this, which usually has more effects, more 297 00:15:23.680 --> 00:15:28.680 visuals, more graphs, you know, drawn out stuff, sometimes it can help hit the brain centers 298 00:15:28.680 --> 00:15:29.680 in different ways. 299 00:15:29.680 --> 00:15:30.680 You can check out my YouTube channel. 300 00:15:30.680 --> 00:15:34.320 It's absolutely free to check that out if that's what you are into and if not, keep 301 00:15:34.320 --> 00:15:37.200 enjoying the show. 302 00:15:37.200 --> 00:15:39.960 So next week we do 50 on that same processor. 303 00:15:39.960 --> 00:15:44.280 And then we set up another one and another one and another one and I was able to like 304 00:15:44.280 --> 00:15:47.960 catch this, this falling plane as it's going. 305 00:15:47.960 --> 00:15:51.520 And we ended up, somehow I think we ended up processing 100 grand actually that first 306 00:15:51.520 --> 00:15:52.520 month. 307 00:15:52.520 --> 00:15:53.520 I think he got two people. 308 00:15:53.520 --> 00:15:57.000 He got somebody like the last day of the month and I processed another hundred, sorry, 309 00:15:57.000 --> 00:15:59.160 another 50 to get a hundred for that first month. 310 00:15:59.160 --> 00:16:03.800 And the next month I had three processors so I was able to process 150 and things actually 311 00:16:03.800 --> 00:16:06.080 started working out, right? 312 00:16:06.080 --> 00:16:09.280 So you know, we did a hundred thousand, which basically discovered my credit card, which 313 00:16:09.280 --> 00:16:10.840 is doing 3,300 a day, right? 314 00:16:10.840 --> 00:16:15.200 So I just boom, I'm back to zero again, but at least I like had a way of getting out 315 00:16:15.200 --> 00:16:16.480 of this thing, right? 316 00:16:16.480 --> 00:16:19.040 So the next month, I think we did 150 or 180. 317 00:16:19.040 --> 00:16:24.120 I have the chart in my book, $100 million offers I can't remember what it was, but it was 318 00:16:24.120 --> 00:16:25.120 somewhere in there. 319 00:16:25.120 --> 00:16:27.800 And so I processed that February and we actually had a profit that month. 320 00:16:27.800 --> 00:16:33.440 I was like, holy cow, like we, I think we made like 30 or 40 grand and I was like, oh 321 00:16:33.440 --> 00:16:36.240 my God, I think we might, we might get out of this, right? 322 00:16:36.240 --> 00:16:37.240 But wait, there's more. 323 00:16:37.240 --> 00:16:38.240 There's more to the story. 324 00:16:38.240 --> 00:16:39.760 It gets worse. 325 00:16:39.760 --> 00:16:42.520 And so I think we're, I think I'm in the, in the home stretch, right? 326 00:16:42.520 --> 00:16:44.080 And so then March rolls around, all right? 327 00:16:44.080 --> 00:16:48.600 So at this point, people that we had sold in January, we, we were selling six-week weight 328 00:16:48.600 --> 00:16:54.840 loss programs at local gyms all of a sudden, I see this massive hit on the bank account 329 00:16:54.840 --> 00:16:56.320 for a hundred grand. 330 00:16:56.320 --> 00:16:58.320 And I was like, whoa, what's going on? 331 00:16:58.320 --> 00:17:00.560 What happened? 332 00:17:00.560 --> 00:17:04.840 And it turned out that two of the facilities that we had launched in January, and this 333 00:17:04.840 --> 00:17:14.440 is now at end of February beginning of March, they told a number of their clients, hey, 334 00:17:14.440 --> 00:17:20.800 if you refund, you can just sign up through me and I'll do it for less. 335 00:17:20.800 --> 00:17:25.280 And so we had already paid for the airfare, the flights, hotels, commissions, ad spend, 336 00:17:25.280 --> 00:17:26.280 for all these sales. 337 00:17:26.280 --> 00:17:28.640 So, you know, the margin on this was low-ish, right? 338 00:17:28.640 --> 00:17:31.560 I was probably running 20% margins. 339 00:17:31.560 --> 00:17:37.320 And that 100,000 completely wiped out all of the savings that I had over the last month 340 00:17:37.320 --> 00:17:39.640 or two, right? 341 00:17:39.640 --> 00:17:43.080 And it was actually more than I could even handle. 342 00:17:43.080 --> 00:17:46.400 And so we had to sell more to cover the refunds. 343 00:17:46.400 --> 00:17:50.240 And so this is where things got even more fun, and I say that sarcastically. 344 00:17:50.240 --> 00:17:51.760 So this is what happened next. 345 00:17:51.760 --> 00:17:55.720 February, we do more money, March, I know that we have to sell even more. 346 00:17:55.720 --> 00:17:58.760 So I hired two more sales guy, we do eight launches that month. 347 00:17:58.760 --> 00:18:03.120 And that's to cover the refunds that are starting to come in from January, all right? 348 00:18:03.120 --> 00:18:04.800 You can probably see where this is going. 349 00:18:04.800 --> 00:18:06.120 The refunds start getting worse. 350 00:18:06.120 --> 00:18:07.200 There's more and more and more. 351 00:18:07.200 --> 00:18:12.880 It turns out after everything, 35% of all of our sales that we were making were getting 352 00:18:12.880 --> 00:18:16.680 refunded, which is an astronomical number that is hard to even comprehend. 353 00:18:16.680 --> 00:18:19.240 And it was because we had no control over the fulfillment, right? 354 00:18:19.240 --> 00:18:22.880 So we were selling, and then other people were filling on contracts that we had sold. 355 00:18:22.880 --> 00:18:27.080 And so, and there was a lot of, you know, hey, just refund, sign up through me, don't 356 00:18:27.080 --> 00:18:28.080 worry it. 357 00:18:28.080 --> 00:18:29.080 It's gone, right? 358 00:18:29.080 --> 00:18:32.200 We were already left the location, and these people were getting fulfilled on contracts. 359 00:18:32.200 --> 00:18:35.440 And so we didn't have the relationship with the customer, the business owner did. 360 00:18:35.440 --> 00:18:38.480 And so it was a really dumb model from that perspective. 361 00:18:38.480 --> 00:18:39.480 I learned, right? 362 00:18:39.480 --> 00:18:42.160 One of the lessons I learned there was control, like you want to control everything and 363 00:18:42.160 --> 00:18:43.160 end. 364 00:18:43.160 --> 00:18:45.240 And if you want a life lesson. 365 00:18:45.240 --> 00:18:49.240 And so anyways, the next month were we have to sell more. 366 00:18:49.240 --> 00:18:51.640 And so I think we did 280,000 in the next month. 367 00:18:51.640 --> 00:18:55.760 And I was like, okay, cool, but all of the access cash that came from that, from like the 368 00:18:55.760 --> 00:18:59.320 profit went into funding these refunds from the month before. 369 00:18:59.320 --> 00:19:01.160 And then refunds just kept going up. 370 00:19:01.160 --> 00:19:04.520 And so I knew that in April, I was going to have to sell even more to cover the refunds 371 00:19:04.520 --> 00:19:06.880 from February and March. 372 00:19:06.880 --> 00:19:08.920 And I felt like I was in a death trap. 373 00:19:08.920 --> 00:19:10.480 I was like, I don't know how to get out of this. 374 00:19:10.480 --> 00:19:13.600 Like every month, I have to sell more to cover the refunds from them a month before. 375 00:19:13.600 --> 00:19:16.360 But then the cash from these things, I'm going to need to cover the next month and sell 376 00:19:16.360 --> 00:19:17.440 even more. 377 00:19:17.440 --> 00:19:19.520 And honestly, I had no idea what I was going to do. 378 00:19:19.520 --> 00:19:24.200 And so all of a sudden, Leila at this point, because she still has one foot out the door 379 00:19:24.200 --> 00:19:26.920 a little bit, because she's like, I don't know about this guy. 380 00:19:26.920 --> 00:19:29.920 And so this whole time, she had been living on like $3,000 a month that she was getting 381 00:19:29.920 --> 00:19:31.720 from her like online coaching business. 382 00:19:31.720 --> 00:19:35.360 So she transitioned to her personal training class online, and she was doing like three 383 00:19:35.360 --> 00:19:36.360 grand a month from that. 384 00:19:36.360 --> 00:19:38.800 And I was like, hey, why don't we take the middleman out of this? 385 00:19:38.800 --> 00:19:40.080 We know how to mark and sell weight loss. 386 00:19:40.080 --> 00:19:43.200 Let's just sell it online, which by the way, is a massive transition from doing brick 387 00:19:43.200 --> 00:19:44.200 and mortar. 388 00:19:44.200 --> 00:19:47.760 But anyways, I was like, you know, I was in absolute desperation. 389 00:19:47.760 --> 00:19:51.520 And so I wrote one of the best sales pages of my entire life out of just sheer need. 390 00:19:51.520 --> 00:19:55.880 It took me two days to write the sales letter, maybe three, and I didn't even like get 391 00:19:55.880 --> 00:19:56.880 up from the computer. 392 00:19:56.880 --> 00:19:58.440 I was just writing the sales letter. 393 00:19:58.440 --> 00:20:04.120 And so I started running traffic to it, and we started doing a thousand bucks a day of 394 00:20:04.120 --> 00:20:05.120 just online. 395 00:20:05.120 --> 00:20:06.120 So there was no mark. 396 00:20:06.120 --> 00:20:07.120 There was no, it was all margin. 397 00:20:07.120 --> 00:20:08.120 Right? 398 00:20:08.120 --> 00:20:09.120 Minus ads meant. 399 00:20:09.120 --> 00:20:10.120 And I was like, holy cow, this could work, right? 400 00:20:10.120 --> 00:20:11.120 And so we had eight sales guys. 401 00:20:11.120 --> 00:20:12.120 And so I was like, okay, we can tell these guys. 402 00:20:12.120 --> 00:20:13.120 They don't have to sell at gyms anymore. 403 00:20:13.120 --> 00:20:14.120 They can sell from home. 404 00:20:14.120 --> 00:20:15.120 They can see their wives. 405 00:20:15.120 --> 00:20:16.120 And we can do 8,000 a day. 406 00:20:16.120 --> 00:20:19.920 Because if we're doing a thousand, just with her selling, we could do 8,70 more guys 407 00:20:19.920 --> 00:20:21.720 and do 8,000 a day. 408 00:20:21.720 --> 00:20:25.840 And so I told the guys the next month, the gyms that were lined up to launch the next 409 00:20:25.840 --> 00:20:28.080 month, hey, we're not going to, we're not going to be doing this anymore. 410 00:20:28.080 --> 00:20:29.680 Sorry, we're going to be going in another direction. 411 00:20:29.680 --> 00:20:32.640 And they were like, hey man, like we need this. 412 00:20:32.640 --> 00:20:38.520 And I was like, sorry man, like I, it's just, I'm not doing that model anymore. 413 00:20:38.520 --> 00:20:40.560 And they were like, well, can you show us what you're doing? 414 00:20:40.560 --> 00:20:44.360 Because like my friend told me that you signed up like 200 people at his gym in like three 415 00:20:44.360 --> 00:20:45.360 weeks. 416 00:20:45.360 --> 00:20:47.640 And I was like, no man, sorry. 417 00:20:47.640 --> 00:20:51.920 And they were like, dude, please, like, I'm not flying out there, man, I'm sorry, I'm 418 00:20:51.920 --> 00:20:53.400 not doing it. 419 00:20:53.400 --> 00:20:57.080 And so anyways, push comes to shove, I was like, fine, I'll show you how to do it. 420 00:20:57.080 --> 00:20:59.200 I was like, but I'm not flying out there to see if you're asked if you can't sell. 421 00:20:59.200 --> 00:21:00.560 And he's like, no, no, that's fine. 422 00:21:00.560 --> 00:21:03.520 And he was like, well, how much to show me how to do it. 423 00:21:03.520 --> 00:21:08.120 And at the time, I picked what was the highest number I could possibly imagine in my head, 424 00:21:08.120 --> 00:21:10.240 which was $6,000. 425 00:21:10.240 --> 00:21:13.160 And I said that because I didn't want him to say yes. 426 00:21:13.160 --> 00:21:16.200 And because I didn't want to do it, I just wanted to move on. 427 00:21:16.200 --> 00:21:20.280 So hopefully at this point, you see how smart I was by all of these experiences leading 428 00:21:20.280 --> 00:21:21.880 up to this. 429 00:21:21.880 --> 00:21:27.520 And the guy said, okay, and I looked at the phone and was like, you've got to be kidding. 430 00:21:27.520 --> 00:21:30.320 And I was like, holy crap. 431 00:21:30.320 --> 00:21:32.320 And so it was $6,000. 432 00:21:32.320 --> 00:21:35.280 And then I had seven more guys that I was supposed to call, you know, to tell them that 433 00:21:35.280 --> 00:21:36.920 I wasn't going to do their launch the next month. 434 00:21:36.920 --> 00:21:40.840 And so the next conversation I had, I was like, well, shoot, if I'm going to do it, I 435 00:21:40.840 --> 00:21:45.760 guess, I guess I have to make it now that I sold one of them this whole program. 436 00:21:45.760 --> 00:21:48.000 This guy, conversation with the same way, and he was like, well, how much? 437 00:21:48.000 --> 00:21:49.000 And I was like, eight grand. 438 00:21:49.000 --> 00:21:52.440 And he was like, okay, and I was like, holy cow. 439 00:21:52.440 --> 00:21:57.000 And then every single one after that said yes, and I ended up doing $60,000 in sales 440 00:21:57.000 --> 00:21:58.240 in a day. 441 00:21:58.240 --> 00:22:02.200 And I looked at Layla and I was like, we might be able to get out of this. 442 00:22:02.200 --> 00:22:08.600 And at that time, as much as people talk about the romantic vision and strategy and impact 443 00:22:08.600 --> 00:22:12.560 and saving lives and all this stuff, it wasn't any of that. 444 00:22:12.560 --> 00:22:16.840 I was just trying to be able to not be in debt and pay the bills that were mounting 445 00:22:16.840 --> 00:22:18.880 every single month off. 446 00:22:18.880 --> 00:22:24.040 And so I knew that I needed to make $150,000 in profit in the next like 30 days or so. 447 00:22:24.040 --> 00:22:26.480 I in order for this to work, right? 448 00:22:26.480 --> 00:22:28.280 And this was the only way I could do it. 449 00:22:28.280 --> 00:22:32.000 And so what I did was I called, you know, those guys, they all bought. 450 00:22:32.000 --> 00:22:35.520 And then I called up every gym that we had launched at that point, which was like 32, 451 00:22:35.520 --> 00:22:36.520 I think. 452 00:22:36.520 --> 00:22:38.760 And I called every one of those guys and was like, hey, you know how we filled your gym 453 00:22:38.760 --> 00:22:39.760 up? 454 00:22:39.760 --> 00:22:41.160 I want me to show you how I did that. 455 00:22:41.160 --> 00:22:43.560 And they were like, yeah, that would be great. 456 00:22:43.560 --> 00:22:44.560 That's exactly what we did. 457 00:22:44.560 --> 00:22:49.680 And so I ended up doing like 300,000 in sales the next month selling a digital product, 458 00:22:49.680 --> 00:22:53.520 which was actually more like a consulting type thing. 459 00:22:53.520 --> 00:22:55.280 And here's what's crazy. 460 00:22:55.280 --> 00:23:04.080 The next 30 days, the average gym that used the consulting program, gym launch, did $30,000 461 00:23:04.080 --> 00:23:11.120 in collected cash, not contract, not contract, not anything like that, but $30,000 in sales. 462 00:23:11.120 --> 00:23:13.040 In the next 30 days. 463 00:23:13.040 --> 00:23:17.840 And then that is when everything took off like a rocket because every single one of those 464 00:23:17.840 --> 00:23:21.560 guys told every person that they knew that was in the gym space like, dude, I just did 465 00:23:21.560 --> 00:23:23.600 this thing and it killed. 466 00:23:23.600 --> 00:23:28.360 That was what gave birth to gym launch as it became the consulting company, the licensing 467 00:23:28.360 --> 00:23:32.840 company, where we license out all the materials, all the ads, all the copy, all the scripts, 468 00:23:32.840 --> 00:23:34.320 how to set up the lobbies. 469 00:23:34.320 --> 00:23:39.280 And the thing is that when people ask me about the story and this is, you know, now we're 470 00:23:39.280 --> 00:23:41.720 six months into 2017 at this point. 471 00:23:41.720 --> 00:23:44.400 So I've gone through like the hardest 18 months of my entire life. 472 00:23:44.400 --> 00:23:50.640 That is when we just went from, I think we did 100 brand that first, you know, month 473 00:23:50.640 --> 00:23:57.960 or last, last few weeks, then we did 380, then 780, then a million, then one, two, then 474 00:23:57.960 --> 00:24:04.960 one, five, one, eight, two, two, two, like we just kept, we just grew like a rocket. 475 00:24:04.960 --> 00:24:08.160 And a lot of people think it was because of the marketing that I was running at that 476 00:24:08.160 --> 00:24:09.160 point, but it wasn't. 477 00:24:09.160 --> 00:24:10.160 There was a lot of it. 478 00:24:10.160 --> 00:24:13.360 It was just the word of mouth and the actual product worked, you know what I mean? 479 00:24:13.360 --> 00:24:16.680 And I use that as an example because like right now I launched the book, $100 million 480 00:24:16.680 --> 00:24:17.680 offers. 481 00:24:17.680 --> 00:24:24.880 It's $0.99 with one post on my Instagram, which is not that big, of the following. 482 00:24:24.880 --> 00:24:30.360 And right now it sells about a thousand copies a day with no funnels, no ads, no whatever. 483 00:24:30.360 --> 00:24:35.440 And it's because the product was good, you know, and people talk if the product's good. 484 00:24:35.440 --> 00:24:39.480 And with this product, I was able to charge an egregious amount of money, but it was because 485 00:24:39.480 --> 00:24:42.560 we charged, because we were making people so much money. 486 00:24:42.560 --> 00:24:47.400 Like if I gave you a system that made $30,000 on average in the first 30 days, how much 487 00:24:47.400 --> 00:24:48.400 does that system work? 488 00:24:48.400 --> 00:24:49.400 Right? 489 00:24:49.400 --> 00:24:52.960 Most guys charge, you know, for franchises, they'll charge 500,000 first system that does 490 00:24:52.960 --> 00:24:54.200 something like that, right? 491 00:24:54.200 --> 00:24:57.880 And I was just charged on 16 grand, because I was like, holy cow, like they're going 492 00:24:57.880 --> 00:25:00.880 to make double their money in the first 30 days if they just do this, right? 493 00:25:00.880 --> 00:25:05.640 And I was so, I knew every aspect, every piece of this process, because I had done it, 494 00:25:05.640 --> 00:25:09.640 not only for my six gyms, but for the 30 plus that we had launched. 495 00:25:09.640 --> 00:25:11.720 And so like I knew the differences between different markets. 496 00:25:11.720 --> 00:25:13.800 I knew how to train sales guys to get them to do it. 497 00:25:13.800 --> 00:25:17.200 I knew how to position them off, or I knew how to do the layout of the sales room and 498 00:25:17.200 --> 00:25:19.800 the lobby so you can maximize the amount of people that you could sell. 499 00:25:19.800 --> 00:25:22.520 I knew how to do the nutrition consultations the next day, so you could cover all the 500 00:25:22.520 --> 00:25:25.160 ads bend just with product sales, right? 501 00:25:25.160 --> 00:25:27.440 Like I knew all these things because I did it. 502 00:25:27.440 --> 00:25:30.560 And so I tell this story to illustrate one thing. 503 00:25:30.560 --> 00:25:34.640 One is that what you were going through now doesn't mean like your work works on you 504 00:25:34.640 --> 00:25:35.920 more than you work on it. 505 00:25:35.920 --> 00:25:39.920 I was developing skills, character traits and beliefs through this entire three, four, 506 00:25:39.920 --> 00:25:46.320 five, six year period of just, of just eating shit that I did not know was for me. 507 00:25:46.320 --> 00:25:49.800 And so we think that the first business, the second business, the fifth business you 508 00:25:49.800 --> 00:25:52.840 start is going to be the business that's going to be it for you. 509 00:25:52.840 --> 00:25:55.600 But like the journey's long, you know what I mean? 510 00:25:55.600 --> 00:25:59.680 And you accumulate these skills and these beliefs and these traits over time. 511 00:25:59.680 --> 00:26:03.160 And those become the things, those are your actual assets, right? 512 00:26:03.160 --> 00:26:06.600 The businesses are just manifestations of those assets and reality. 513 00:26:06.600 --> 00:26:14.920 And so as these things took off, right, my, you know, my life radically transformed. 514 00:26:14.920 --> 00:26:19.600 And the piece that I get a lot of questions about is like how can I do what you did in 515 00:26:19.600 --> 00:26:22.520 my space or in my niche or my whatever. 516 00:26:22.520 --> 00:26:27.280 And the thing is, is people want to skip the first five years of the story, right? 517 00:26:27.280 --> 00:26:31.280 The first five years was that I, I didn't sell a question of how to make $10,000 a month 518 00:26:31.280 --> 00:26:33.400 from a gym when I had my first gym. 519 00:26:33.400 --> 00:26:36.240 I didn't do that when I had a second, I didn't do that when I had a third, I didn't do 520 00:26:36.240 --> 00:26:38.480 that when I had a fourth, I didn't do that when I had a fifth, I didn't do that when I 521 00:26:38.480 --> 00:26:40.160 had a sixth, right? 522 00:26:40.160 --> 00:26:43.480 Because I didn't feel like I was good enough. 523 00:26:43.480 --> 00:26:49.360 And it was only, and even then I started doing the launches as the next thing, because 524 00:26:49.360 --> 00:26:52.080 I wanted to make sure that everyone always got way more value than they paid me, which 525 00:26:52.080 --> 00:26:53.080 was zero. 526 00:26:53.080 --> 00:26:55.200 They paid me nothing and I would fill their gym up pretty good deal, right? 527 00:26:55.200 --> 00:26:56.200 No risk for them. 528 00:26:56.880 --> 00:27:00.600 And so I did that for almost two years, doing the gym launches, right? 529 00:27:00.600 --> 00:27:03.960 Where we fly out and you already know how that went, which was difficult and hard for 530 00:27:03.960 --> 00:27:07.960 me, but I learned so much, I learned how to run a virtual sales team, I learned how to 531 00:27:07.960 --> 00:27:12.960 do all these things so that when I did have the next opportunity that lined up for me, 532 00:27:12.960 --> 00:27:17.200 we went from zero to 30 million in the next year in revenue, because I had accumulated 533 00:27:17.200 --> 00:27:20.360 all of these skills and these character traits that I would note, not otherwise have 534 00:27:20.360 --> 00:27:21.360 had. 535 00:27:21.360 --> 00:27:24.520 And so a lot of people want to just jump to that part, but they don't have the skills, 536 00:27:24.520 --> 00:27:27.440 they don't have the character traits, they don't have the beliefs that align with what 537 00:27:27.440 --> 00:27:28.840 they want to achieve. 538 00:27:28.840 --> 00:27:33.600 And so I'm a big believer that the foundation that you set is going to dictate the height 539 00:27:33.600 --> 00:27:37.200 of the peak of the pyramid that you want to build within your life and the business that 540 00:27:37.200 --> 00:27:38.440 you want to grow. 541 00:27:38.440 --> 00:27:40.440 And so most people have a very small foundation. 542 00:27:40.440 --> 00:27:43.920 They took a course and then they want to start selling how to, you know, run Facebook 543 00:27:43.920 --> 00:27:45.240 ads, right? 544 00:27:45.240 --> 00:27:46.760 Or whatever. 545 00:27:46.760 --> 00:27:50.040 And so the reality is that they're just not good enough. 546 00:27:50.040 --> 00:27:51.040 And that's why. 547 00:27:51.040 --> 00:27:54.200 The thing that they have just doesn't work that well, which is why it doesn't make money, 548 00:27:54.200 --> 00:27:56.120 which is why they don't make money, right? 549 00:27:56.120 --> 00:28:01.240 Because the amount of money that you will make will be predicted by the value that you 550 00:28:01.240 --> 00:28:03.640 provide to the marketplace, that's always what it is. 551 00:28:03.640 --> 00:28:07.080 I know this is a longer story, but I think that hopefully it illustrates one that the 552 00:28:07.080 --> 00:28:11.840 path is not straight to, it is fraught with difficulty. 553 00:28:11.840 --> 00:28:15.440 And mind you, me telling you the very, the quote end of this story is that like, oh yeah, 554 00:28:15.440 --> 00:28:17.640 then, you know, everything took off like a rocket. 555 00:28:17.640 --> 00:28:21.080 All of these types of problems, there was different problems that we had to solve then, 556 00:28:21.080 --> 00:28:24.520 just like, how do you double every month? 557 00:28:24.520 --> 00:28:29.560 And somehow keep up with high quality service and support and training talent while also 558 00:28:29.560 --> 00:28:33.160 bringing new people in and keep a culture in all of these things. 559 00:28:33.160 --> 00:28:36.320 But at the end of the day, the product brought us so much forgiveness from our customers 560 00:28:36.320 --> 00:28:41.040 because they were just all making so much money using the systems that we had laid out 561 00:28:41.040 --> 00:28:47.880 that we were able to build the infrastructure as the plane was flying during the journey. 562 00:28:47.880 --> 00:28:52.880 And so anyways, that was the transition of me going from broke and looking at bankruptcy 563 00:28:52.880 --> 00:28:58.400 lawyers to, we did 3 million in profit just in the last like four or five months of that 564 00:28:58.400 --> 00:28:59.400 year. 565 00:28:59.400 --> 00:29:01.800 And then the next year we did 17 million in profit. 566 00:29:01.800 --> 00:29:08.880 And that was because I switched from a service to media, which is no cost of reproduction. 567 00:29:08.880 --> 00:29:12.360 So there's significantly higher gross margins on it, which is a better opportunity vehicle. 568 00:29:12.360 --> 00:29:16.520 And what's interesting about this, and I'll hit this because I probably make a video on 569 00:29:16.520 --> 00:29:19.960 this one concept alone, and I think it's worth highlighting. 570 00:29:19.960 --> 00:29:25.440 Is that when I had my gyms, right, that I had relatively the same skill set, right? 571 00:29:25.440 --> 00:29:28.420 I knew how to help people lose weight, I knew how to, you know, I knew how to market, I 572 00:29:28.420 --> 00:29:31.920 knew how to sell, I had these locations, all of that. 573 00:29:31.920 --> 00:29:34.880 From there I transitioned to a done for you sales model, right? 574 00:29:34.880 --> 00:29:36.400 And I made more money, right? 575 00:29:36.400 --> 00:29:39.320 Now I had some issues, and it's funny because I could look at that model now and fix it 576 00:29:39.320 --> 00:29:43.040 in two seconds because it's obvious what I would need to do to change the model. 577 00:29:43.040 --> 00:29:45.000 But I didn't do that. 578 00:29:45.000 --> 00:29:49.600 I made more money in terms of revenue, and, you know, in terms of net margins I was making 579 00:29:49.600 --> 00:29:53.480 more, but there was holes in the actual way the model was designed, which is why I had 580 00:29:53.480 --> 00:29:55.960 to do with all these other things. 581 00:29:55.960 --> 00:30:00.280 And then finally switched to licensing, code and media, right? 582 00:30:00.280 --> 00:30:02.520 And that is where, you know, the highest gross margins exist. 583 00:30:02.520 --> 00:30:05.920 And so I had the same skills, right? 584 00:30:05.920 --> 00:30:11.240 But as my belief changed, and my character traits changed and developed, I was able to switch 585 00:30:11.240 --> 00:30:14.920 into better and better opportunity vehicles for the same set of skills. 586 00:30:14.920 --> 00:30:19.000 And that is what ended up creating the fortune that Layla and I were able to, you know, 587 00:30:19.000 --> 00:30:21.040 amass in this period of time. 588 00:30:21.040 --> 00:30:25.080 And it was because of that transition through different vehicles, repackaging the same 589 00:30:25.080 --> 00:30:26.080 skills. 590 00:30:26.080 --> 00:30:28.840 And so the first step in this is getting the skills to repackage. 591 00:30:28.840 --> 00:30:31.920 And I think most people just want to skip that part, which is the rocky cutscene that 592 00:30:31.920 --> 00:30:36.160 every single person that I know is successful does that no one wants to talk about. 593 00:30:36.160 --> 00:30:42.120 Every single great big business owner that I know have these years of thinkless work 594 00:30:42.120 --> 00:30:46.280 where they develop these skills, these traits in these beliefs that end up setting them 595 00:30:46.280 --> 00:30:47.280 free. 596 00:30:47.280 --> 00:30:50.480 And everyone wants to just take the one course and things they're going to become a millionaire 597 00:30:50.480 --> 00:30:51.480 in six months. 598 00:30:51.480 --> 00:30:52.600 And it's just not the case. 599 00:30:52.600 --> 00:30:56.080 And so many people are far ahead of me in their entrepreneurial journey, you know, that 600 00:30:56.080 --> 00:30:59.040 I was in my first two years, three years, five years. 601 00:30:59.040 --> 00:31:03.000 And so I tell the story to hopefully give anyone hope who's like two years in and isn't 602 00:31:03.000 --> 00:31:04.000 making money. 603 00:31:04.000 --> 00:31:05.680 It's like, well, multiply that by three. 604 00:31:05.680 --> 00:31:08.280 And then that's about where I was where I started making real money. 605 00:31:08.280 --> 00:31:10.760 So anyways, lots of love, mosey nation. 606 00:31:10.760 --> 00:31:11.760 I love you all. 607 00:31:11.760 --> 00:31:12.760 My name's Alex from mosey. 608 00:31:12.760 --> 00:31:13.760 I'm an acquisition.com. 609 00:31:13.760 --> 00:31:17.440 We do about $85 million a year in revenue and I have absolutely nothing to sell you. 610 00:31:17.440 --> 00:31:18.440 Keeping awesome. 611 00:31:18.440 --> 00:31:21.560 If you did enjoy this, hit the subscribe button and I'll see you in the next video. 612 00:31:21.560 --> 00:31:23.560 And if you didn't like this, then I love you either way. 613 00:31:23.560 --> 00:31:24.560 All right. 614 00:31:24.560 --> 00:31:25.560 Lots of love. 615 00:31:25.560 --> 00:31:26.560 I'll see you there. 616 00:31:26.560 --> 00:31:27.560 Bye.