WEBVTT 1 00:00:00.000 --> 00:00:04.480 We, as entrepreneurs, must be leaders and good people so that we can attract good people so we 2 00:00:04.480 --> 00:00:08.560 can build good companies. Now, big part of that is figuring out how to get people to do stuff. 3 00:00:10.080 --> 00:00:12.960 Welcome to the game where we talk about how to get more customers, how to make more 4 00:00:12.960 --> 00:00:16.800 customers, how to keep them longer in the many failures and lessons we have learned along the way. 5 00:00:16.800 --> 00:00:22.960 I hope you enjoy and subscribe. How to get people to do the things you want, and if you don't 6 00:00:22.960 --> 00:00:27.440 know what the definition of power is, by the way, the definition of power, is how to influence events 7 00:00:27.440 --> 00:00:31.840 or people. All right? So the ability to direct or influence events or people. That is the definition 8 00:00:31.840 --> 00:00:38.640 of power. And so most people want to become more powerful. And the thing is that word makes you 9 00:00:38.640 --> 00:00:42.400 feel queasy on the inside because you have a very poor definition of power. Power is neither good 10 00:00:42.400 --> 00:00:47.120 nor bad. What you do with it can be good or bad, right? It's just it is just raw potential, okay? 11 00:00:47.120 --> 00:00:50.800 So in this video, and if you don't know who I am, by the way, my name is Alex Ramozio, 12 00:00:50.800 --> 00:00:54.000 in acquisition.com. It's a portfolio of companies that have a hundred million dollars a year, 13 00:00:54.000 --> 00:00:56.880 and I make these videos because a lot of people are broken. I don't want you to be one of them. 14 00:00:56.960 --> 00:01:01.120 All right, and I also have a lot of fun doing this. And so that is why I make them. So you want people 15 00:01:01.120 --> 00:01:04.880 to do stuff, right? There's the component of persuasion in getting them to believe that it is in 16 00:01:04.880 --> 00:01:08.480 their best interest. That is fundamentally what leadership is, is to get someone to believe that 17 00:01:08.480 --> 00:01:12.880 doing the thing that you want them to do is really just get them to want to do that. That is what it 18 00:01:12.880 --> 00:01:16.720 is. And so a lot of leadership is power, which is a lot of power, if you sound the definition, 19 00:01:16.720 --> 00:01:21.200 is selling. But today, I'm not talking about selling. I'm talking about incentives, right? So this 20 00:01:21.200 --> 00:01:24.960 is like kind of the brass tax side. There's the persuasion, the soft side, which is still very 21 00:01:24.960 --> 00:01:29.520 important. The psychology side, and the other side is kind of the behavioral side. All right. And so 22 00:01:29.520 --> 00:01:34.400 this is adapted from a conversation that I had with my closest friend, Dr. Trevor Cashy, 23 00:01:34.400 --> 00:01:41.840 and we were talking about behavior and getting humans to comply. All right. And so what I want to 24 00:01:41.840 --> 00:01:46.640 talk to you about is the ways to do that. All right. And so a big part of that, if my, my little, 25 00:01:46.640 --> 00:01:50.240 my little dude at a start working, that's what she said, we're going to make a little boxy do. 26 00:01:51.200 --> 00:01:58.240 Okay. So if it's not a perfect box, do it. So you've got pluses, and you've got minuses, 27 00:01:58.240 --> 00:02:05.680 and you can add them, or you could subtract them. So with this means is that we have a combination 28 00:02:05.680 --> 00:02:13.120 of both punishment and we have reward, all right. Stuff that people don't want and stuff that people 29 00:02:13.120 --> 00:02:18.000 do want. All right. So for example, and I'm going to give a simplistic reasoning to get someone 30 00:02:18.000 --> 00:02:21.600 to do something. So we'll use a simple one, which is how do you get your kid to clean their room? 31 00:02:21.600 --> 00:02:24.560 All right. This is a simple example that you can extrapolate to whatever it is that you want 32 00:02:24.560 --> 00:02:30.960 someone else to do. Okay. So you can add a good thing. I can give you a cookie. All right. That 33 00:02:30.960 --> 00:02:35.840 is something that I can do. I can, if you do the chore, I will give you a cookie. Simple. You do 34 00:02:35.840 --> 00:02:42.080 the thing. You get the reward. Awesome. The next thing that we could do is we could subtract a 35 00:02:42.080 --> 00:02:46.960 negative. You get no cookies. All right. So they don't get to have dessert anymore, which 36 00:02:46.960 --> 00:02:50.800 would be impossible because you can never skip dessert. It's like not in this family. Right. 37 00:02:50.800 --> 00:02:56.320 And so we could subtract something that they do have that they like. Right. So if you don't do 38 00:02:56.320 --> 00:03:01.520 your chores, I will remove video games or you don't get to eat dessert. Right. Make sense. 39 00:03:01.520 --> 00:03:08.000 So those are two things that we can do with a positive now or a reward. On the reverse of this, 40 00:03:08.000 --> 00:03:14.000 is that we can add a negative. So we can say, I will spank your ass. I'm going to add a negative. 41 00:03:14.000 --> 00:03:18.240 I'm going to spank your ass if you don't, if you don't do your chores. Oh, no. That sucks. 42 00:03:18.240 --> 00:03:21.360 Right. But I'm going to add something that wasn't currently in your life that you will not like. 43 00:03:21.360 --> 00:03:26.480 All right. As we add a negative. Okay. The fourth thing that we can do, and I'll get to how you 44 00:03:26.480 --> 00:03:32.160 can think through these in a second, is we can subtract a negative. Okay. So I plan on spanking 45 00:03:32.160 --> 00:03:37.200 you every day and I, I can remove spanking or let's say there's something that you don't like 46 00:03:37.200 --> 00:03:41.120 doing, which might be like you're expected to do the dishes. Right. You don't have to do the 47 00:03:41.120 --> 00:03:45.600 dishes or let's say you don't like it, you know, you don't like riding the bus. Right. So you don't 48 00:03:45.600 --> 00:03:48.880 like riding the bus. I'll drive it to school. That's kind of like taking away native and adding 49 00:03:48.880 --> 00:03:54.640 a positive. Ah, right. And so we can do no dishes, which would be subtracting a negative. All right. 50 00:03:54.640 --> 00:04:00.960 So think about these in this way. These are things that people want to avoid. And these are people, 51 00:04:00.960 --> 00:04:05.840 things that they want. Right. Here's what's kind of interesting about all of this stuff. 52 00:04:05.840 --> 00:04:09.440 Incentives drive behavior. There's tremendous amount of documentation on that. Hopefully, 53 00:04:09.440 --> 00:04:12.640 you're not going to fight that point with me. All right. But here's what's interesting. 54 00:04:14.880 --> 00:04:19.520 Hey, guys, real quick for those of you guys who are $100 million offer of sphands. I love you. 55 00:04:19.520 --> 00:04:23.920 I added in a lost chapter that has never been released. I'm releasing it now. 56 00:04:23.920 --> 00:04:28.960 Transparently, I'm doing that to build hype for $100 million leads. But you will have the unreleased 57 00:04:28.960 --> 00:04:33.040 chapter. It talks about your first avatar and how to segment customers to make more money. 58 00:04:33.040 --> 00:04:38.080 You can get it by going to acquisition.com forward slash leads. It's O3. 59 00:04:38.160 --> 00:04:40.800 It exchange for emails so that I can email you when we launch 60 00:04:40.800 --> 00:04:44.240 on a million dollar leads and so that you cannot miss out on it because last time I sold out for 61 00:04:44.240 --> 00:04:48.800 like eight straight weeks really fast. So that is my way of making sure that y'all get first dips. 62 00:04:50.800 --> 00:04:54.640 When you create punishments for people, people do anything to avoid the punishment, 63 00:04:54.640 --> 00:04:58.240 which may not mean doing the thing that you want them to do. So for example, 64 00:04:58.240 --> 00:05:02.320 if your child stinks out at night, right, and then you punish them for sneaking out, 65 00:05:02.320 --> 00:05:05.840 the incentive is not necessarily stopping you out. The incentive is to stop getting caught. 66 00:05:06.080 --> 00:05:09.600 It encourages criminal behavior. It encourages people to find new and 67 00:05:09.600 --> 00:05:13.680 ingenuative ways to do the thing they want to do, which is their incentive, their plus side, 68 00:05:13.680 --> 00:05:18.800 and figure out ways to avoid the downside. Here's what is kind of interesting about this. 69 00:05:18.800 --> 00:05:24.080 Is that with punishments, in general, you get people to avoid the behavior, but you don't get 70 00:05:24.080 --> 00:05:29.840 them necessarily to do what you want them to do. So if you want someone to do something, 71 00:05:29.840 --> 00:05:35.680 it's much easier to incentivize that if you do the thing, you get this because incentive 72 00:05:36.000 --> 00:05:41.680 direct behavior. Punishments force people to avoid anything that will give them the punishment. 73 00:05:41.680 --> 00:05:44.800 It's subtle, but hopefully you're picking up when I'm putting down. The reason this is, 74 00:05:44.800 --> 00:05:48.160 I think, is very interesting is that when you look at, so Jim Collins, I wrote a lot of the best 75 00:05:48.160 --> 00:05:51.440 management books that are out there. And what's interesting is if you follow his career, 76 00:05:51.440 --> 00:05:55.760 it seems like he's he went from super, super quantitative to more qualitative. Now he still did 77 00:05:55.760 --> 00:05:59.440 quantitative to arrive at his qualitative decisions, but he talks about how leadership is such an 78 00:05:59.440 --> 00:06:04.000 important part of building great businesses. And we know that great people build great companies. 79 00:06:04.560 --> 00:06:09.600 And so we, as entrepreneurs, must be leaders and good people so that we can attract good people 80 00:06:09.600 --> 00:06:14.240 so we can build good companies. Right? Now, big part of that is figuring out how to get people to do 81 00:06:14.240 --> 00:06:18.400 stuff. Right? And so based on the research that he had that he had presented, which I thought 82 00:06:18.400 --> 00:06:23.440 was really fascinating, is that over time, if you have negative reinforcement, performance to 83 00:06:23.440 --> 00:06:27.040 grades, right, it's always critical feedback, always critical feedback, always negative, only 84 00:06:27.040 --> 00:06:31.120 only talk to somebody when they do something wrong. Right? On the flip side, if you have positive 85 00:06:31.120 --> 00:06:37.920 feedback by large majority of the time, performance improves. Isn't that interesting? And so I saw 86 00:06:37.920 --> 00:06:43.360 that through this lens, which is we can we can direct people's behavior far more effectively with 87 00:06:43.360 --> 00:06:48.320 positive incentives than we do with negative stuff, which has huge implications for like the JL 88 00:06:48.320 --> 00:06:52.640 system and the punitive system and all that stuff is like people just find ways to avoid punishment. 89 00:06:52.640 --> 00:06:57.040 They don't necessarily do what people want them to do because punishment, the activity sprays in 90 00:06:57.120 --> 00:07:02.320 any direction that's just away from the thing, whereas incentives directs it towards what you want. 91 00:07:02.320 --> 00:07:05.920 All right? And so we think about this within the context of managing people and getting to do the 92 00:07:05.920 --> 00:07:11.120 things that we want them to do, right? Then it makes more sense for us to think about an activity 93 00:07:11.120 --> 00:07:15.760 rather than a single outcome into as many, many, many, many, many incremental steps as we possibly 94 00:07:15.760 --> 00:07:20.880 can and then incentivize those many steps. And the incentives don't necessarily need to be monetary. 95 00:07:20.880 --> 00:07:24.480 In fact, most times they don't need to be monetary. They need to be things that people can perceive 96 00:07:24.480 --> 00:07:29.280 as positive outcomes, which many times it's just status and feedback, which is just great job. 97 00:07:29.280 --> 00:07:34.480 Awesome stuff. You did that thing yesterday and it was great. Like you just reinforce the things 98 00:07:34.480 --> 00:07:40.000 that they are doing that are good, right? And we reinforce and then now that they realized I did 99 00:07:40.000 --> 00:07:45.040 this one thing, not anything to avoid something, but I did this one thing and I got this cookie. 100 00:07:45.040 --> 00:07:48.800 Well, I want to do that one thing again and then get another cookie, right? And we reinforce 101 00:07:48.800 --> 00:07:53.680 behavior. And so I like this, this process of thinking and Trevor and I talk about this a lot 102 00:07:53.680 --> 00:07:57.920 because it gets around the hull of blue of trying to figure out what's going on inside of people's 103 00:07:57.920 --> 00:08:03.920 heads, right? And what we have instead are circumstances and the outcomes, right? And then we have 104 00:08:03.920 --> 00:08:07.680 our incentives and all of these things we can measure. We can say, I saw that we were in the 105 00:08:07.680 --> 00:08:12.720 circumstances, which we measure, we inserted this incentive and then they did this outcome. Yes or 106 00:08:12.720 --> 00:08:18.160 no, right? Whether they felt inspired or whether they psychologically left, we don't know. And we 107 00:08:18.160 --> 00:08:21.680 never will know because not everyone even knows how they're feeling and whether they answer questions 108 00:08:21.840 --> 00:08:26.720 is not necessarily even true, right? We have no idea. But if we can just measure the conditions, 109 00:08:26.720 --> 00:08:30.240 then we can start directing behavior in the right ways. And so I thought this was a fascinating 110 00:08:30.240 --> 00:08:35.120 topic for getting others and this applies to spouses. How do you supposed to do this stuff that you 111 00:08:35.120 --> 00:08:39.680 want them to do? Well, it certainly doesn't come from nagging them all the time, right? All they're 112 00:08:39.680 --> 00:08:44.320 going to do is try to avoid being nagged. Hmm, interesting, right? And so this gives you four 113 00:08:44.320 --> 00:08:49.840 boxes to look at. This one, this box over here, this guy and this guy. Those are things that you 114 00:08:49.840 --> 00:08:55.920 can't really direct people's behavior as much. Whereas this guy and this guy, you can direct people's 115 00:08:55.920 --> 00:09:00.240 behavior to the singular outcome that you're looking for and you continuously reinforce those 116 00:09:00.240 --> 00:09:03.680 behavior such that they start doing them without even thinking about it because it has been so 117 00:09:03.680 --> 00:09:08.560 reinforced, right? And so instead of trying to think, how do I have an amazing marriage? It's, 118 00:09:09.120 --> 00:09:13.600 how can I condition this person to stay married to me? Kind of interesting, a little flip for you. 119 00:09:13.600 --> 00:09:17.040 So anyways, Mosy Nation, this is the kind of stuff that I do keep out on and I think it's really 120 00:09:17.040 --> 00:09:20.720 interesting. I hope you enjoyed it as much as I enjoyed making this for you. This is how you get 121 00:09:20.720 --> 00:09:24.160 people to do shit. You can think about it in the service of soft side in terms of persuasion, 122 00:09:24.160 --> 00:09:28.560 but you can also think about it in terms of the hard side of what are the reinforcements that we're 123 00:09:28.560 --> 00:09:32.240 going to use either positive or negative and we're going to add positives. We're going to remove 124 00:09:32.240 --> 00:09:36.640 positives. We're going to add negatives or remove negatives so that we can accomplish what we 125 00:09:36.640 --> 00:09:42.560 want together. So lots of Mosy Nation. Let me know if you like this stuff in the comments. Bye!