WEBVTT 1 00:00:00.000 --> 00:00:02.800 There is an actual cap on your business as it currently stands. 2 00:00:02.800 --> 00:00:05.440 You're just not articulating it because you're afraid of saying, 3 00:00:05.440 --> 00:00:06.960 well, if I can only take 10 people, 4 00:00:06.960 --> 00:00:08.920 then they'll think I'm a small business or whatever. 5 00:00:08.920 --> 00:00:11.080 But if you said I only take 10 people, 6 00:00:11.080 --> 00:00:12.960 even though it is your actual cap, 7 00:00:12.960 --> 00:00:14.880 it has a very different feel to it. 8 00:00:16.600 --> 00:00:18.880 The wealthiest people in the world see business as a game. 9 00:00:18.880 --> 00:00:20.440 This podcast, the game, is my attempt 10 00:00:20.440 --> 00:00:22.160 at documenting the lessons I've learned on my way 11 00:00:22.160 --> 00:00:24.960 to building acquisition.com into a billion dollar portfolio. 12 00:00:24.960 --> 00:00:26.760 My hope is that you use the lessons to grow your business 13 00:00:26.760 --> 00:00:28.120 and maybe someday soon partner with us 14 00:00:28.120 --> 00:00:29.600 to get $200,000 in beyond. 15 00:00:29.600 --> 00:00:30.840 I hope you share and enjoy. 16 00:00:32.200 --> 00:00:34.160 I think that duality is super powerful. 17 00:00:34.160 --> 00:00:35.760 So that's why I wanted to stack them. 18 00:00:35.760 --> 00:00:37.800 We're talking about other stacks in the minute too. 19 00:00:37.800 --> 00:00:41.280 Stack them back to back because I think you can hold two thoughts 20 00:00:41.280 --> 00:00:42.280 at one time. 21 00:00:42.280 --> 00:00:43.960 I think you can have this concept about your life 22 00:00:43.960 --> 00:00:45.480 where you want to reflect on the final days, 23 00:00:45.480 --> 00:00:48.640 you have tremendous break and urgency in the moment, right? 24 00:00:48.640 --> 00:00:52.040 And have concepts that move the needle every single day 25 00:00:52.040 --> 00:00:53.040 of your life. 26 00:00:53.040 --> 00:00:53.880 Why do I say that? 27 00:00:53.880 --> 00:00:56.800 I think there's two types of people right now on the planet. 28 00:00:56.840 --> 00:00:59.400 There's the seminar goer person who's all in the thoughts 29 00:00:59.400 --> 00:01:02.120 and the clouds about reflection and energy and this 30 00:01:02.120 --> 00:01:03.720 and that and the other thing. 31 00:01:03.720 --> 00:01:05.960 And frankly, they're not getting around 32 00:01:05.960 --> 00:01:08.640 to making their life matter day to day. 33 00:01:08.640 --> 00:01:10.680 Then there's the people that you and I used to be 34 00:01:10.680 --> 00:01:13.280 which is we're making our life matter every single day. 35 00:01:13.280 --> 00:01:15.520 But we have none of the energy, the spirituality, 36 00:01:15.520 --> 00:01:17.360 the concepts of time in our life. 37 00:01:17.360 --> 00:01:20.560 And so I think the duality, the complexity of those two things, 38 00:01:20.560 --> 00:01:23.240 the contradictions is what makes this conversation 39 00:01:23.240 --> 00:01:24.640 the most valuable. 40 00:01:24.640 --> 00:01:26.120 Can I add one thing to that? 41 00:01:26.120 --> 00:01:29.760 So I, in the comments on YouTube and things like that, 42 00:01:29.760 --> 00:01:31.840 I know that a lot of people struggle with that concept. 43 00:01:31.840 --> 00:01:33.840 And so I wanted to give a different example 44 00:01:33.840 --> 00:01:35.600 that I think might drive this home. 45 00:01:35.600 --> 00:01:38.800 You already do believe multiple contradictory things 46 00:01:38.800 --> 00:01:39.680 at the same time. 47 00:01:39.680 --> 00:01:42.440 You believe injustice and you believe in mercy. 48 00:01:42.440 --> 00:01:45.040 You believe in variety, you believe in consistency. 49 00:01:45.040 --> 00:01:47.280 And so there are these yins and yangs that exist 50 00:01:47.280 --> 00:01:48.840 and it's not to say that the white part of the ink 51 00:01:48.840 --> 00:01:49.880 or the black part of the ink is right. 52 00:01:49.880 --> 00:01:51.080 It's understanding the middle path 53 00:01:51.080 --> 00:01:55.280 and I think wisdom is knowing when to do what. 54 00:01:55.280 --> 00:01:58.120 And so it's when am I using justice? 55 00:01:58.120 --> 00:01:59.200 First is mercy. 56 00:01:59.200 --> 00:02:01.240 It's not that justice is right and mercy is wrong 57 00:02:01.240 --> 00:02:02.680 or mercy is right and justice is wrong. 58 00:02:02.680 --> 00:02:06.040 The wisdom allows us to walk in the gray and be comfortable 59 00:02:06.040 --> 00:02:08.640 and select which is appropriate for the moment. 60 00:02:08.640 --> 00:02:09.760 No brother, so good. 61 00:02:09.760 --> 00:02:13.520 Yesterday I was coaching someone who used to lead 62 00:02:13.520 --> 00:02:15.640 a pretty big country, a big one. 63 00:02:15.640 --> 00:02:17.680 And we had this conversation. 64 00:02:17.680 --> 00:02:19.560 He said, you know, when I was really at my most productive, 65 00:02:19.560 --> 00:02:21.160 I operated out of fear often. 66 00:02:21.160 --> 00:02:23.360 And now I'm constantly forcing myself to operate 67 00:02:23.360 --> 00:02:24.720 out of gratitude and abundance 68 00:02:24.760 --> 00:02:26.200 and all these other things. 69 00:02:26.200 --> 00:02:28.760 And I said, sir, the truth of the matter is 70 00:02:28.760 --> 00:02:30.440 it's knowing when to select those mechanisms. 71 00:02:30.440 --> 00:02:32.600 Fear is not necessarily a negative emotion. 72 00:02:32.600 --> 00:02:33.680 It's the abundance of it. 73 00:02:33.680 --> 00:02:35.160 It can become negative or too much of it. 74 00:02:35.160 --> 00:02:37.360 But if you never leverage fear, heck, 75 00:02:37.360 --> 00:02:39.440 fear helped me prepare for this podcast today. 76 00:02:39.440 --> 00:02:40.320 I don't want it to bomb. 77 00:02:40.320 --> 00:02:41.400 I want it to do great, right? 78 00:02:41.400 --> 00:02:45.040 So there's leverage in everything and wisdom truly is. 79 00:02:45.040 --> 00:02:48.040 I love how you just said of knowing which lever to pull when 80 00:02:48.040 --> 00:02:50.680 and knowing when the right part of it applies. 81 00:02:50.680 --> 00:02:52.200 So good, man. 82 00:02:52.200 --> 00:02:54.080 Again, I'm sitting here in front of a 32 year old. 83 00:02:54.120 --> 00:02:55.800 I don't mean to, you know, for a lot of people listen to this, 84 00:02:55.800 --> 00:02:56.960 they're like 32s old. 85 00:02:56.960 --> 00:02:57.800 I'm 23, right? 86 00:02:57.800 --> 00:03:00.360 So I want to make sure that I don't use my own age bias. 87 00:03:00.360 --> 00:03:02.800 But at the same time, I think I had many of these thoughts 88 00:03:02.800 --> 00:03:04.400 when I was your age, but I certainly don't have the ability 89 00:03:04.400 --> 00:03:06.160 to articulate them like you do. 90 00:03:06.160 --> 00:03:07.400 And I'm super, super impressed. 91 00:03:07.400 --> 00:03:08.200 I just want to acknowledge you 92 00:03:08.200 --> 00:03:10.640 because you're serving millions of people right now. 93 00:03:10.640 --> 00:03:11.640 Also, I think you could serve them 94 00:03:11.640 --> 00:03:13.920 with parts of your story they don't know. 95 00:03:13.920 --> 00:03:15.240 There are people listening to this right now 96 00:03:15.240 --> 00:03:16.520 that are failing. 97 00:03:16.520 --> 00:03:17.840 They're bleeding money. 98 00:03:17.840 --> 00:03:19.480 And maybe they've just had a business shut down 99 00:03:19.480 --> 00:03:21.760 or the last two years has wiped them out a little bit 100 00:03:21.920 --> 00:03:24.480 or they're looking right now going, all right. 101 00:03:24.480 --> 00:03:26.280 I'm gonna have to make a pivot. 102 00:03:26.280 --> 00:03:29.520 So you're a guy who had a lot of success building gyms. 103 00:03:29.520 --> 00:03:31.120 It was really, really going well as I understand it. 104 00:03:31.120 --> 00:03:32.240 You go over the next one. 105 00:03:32.240 --> 00:03:34.400 You pour all the juice from all the profits 106 00:03:34.400 --> 00:03:36.320 into the next one and you go bust. 107 00:03:36.320 --> 00:03:37.640 So there was a point where this man 108 00:03:37.640 --> 00:03:38.640 that I'm talking to you right now, 109 00:03:38.640 --> 00:03:42.680 by the way, not that long ago was busted. 110 00:03:42.680 --> 00:03:43.520 You were broke. 111 00:03:43.520 --> 00:03:46.760 What did you do when you were on your ass? 112 00:03:46.760 --> 00:03:48.000 Were you on your ass mentally ever, 113 00:03:48.000 --> 00:03:49.600 or was it just a physical being broke? 114 00:03:49.600 --> 00:03:50.920 And then what did you do to make a move? 115 00:03:50.920 --> 00:03:52.400 Because there's a lot of people right now 116 00:03:52.400 --> 00:03:53.960 right where you were. 117 00:03:53.960 --> 00:03:56.240 I just focused on the controllable. 118 00:03:56.240 --> 00:03:58.120 So there was a lot of things that I felt like 119 00:03:58.120 --> 00:04:00.600 I could not control or that were circumstantial, et cetera. 120 00:04:00.600 --> 00:04:03.080 And so it was just, it was kind of like the simplicity thing 121 00:04:03.080 --> 00:04:05.080 of like, what are the few levers that I have in my disposal? 122 00:04:05.080 --> 00:04:06.520 And at the time, I was like, I know how to market 123 00:04:06.520 --> 00:04:07.480 and I know how to sell. 124 00:04:07.480 --> 00:04:09.520 And so that's what I'm gonna do. 125 00:04:09.520 --> 00:04:14.520 And so I, the story's crazy, but I had a credit card left 126 00:04:16.920 --> 00:04:18.720 from all the businesses that I had sold 127 00:04:18.720 --> 00:04:20.800 and then lost all the money. 128 00:04:20.800 --> 00:04:22.000 But I still had the credit card 129 00:04:22.000 --> 00:04:24.760 and Amics, thank God, had not actually changed my credit limit. 130 00:04:24.760 --> 00:04:26.920 So I had a $100,000 credit card. 131 00:04:26.920 --> 00:04:29.000 And I wanted to launch gym launch, 132 00:04:29.000 --> 00:04:30.320 which was like this turnaround business 133 00:04:30.320 --> 00:04:31.440 where we'd fly out to gyms. 134 00:04:31.440 --> 00:04:33.960 And so we had six guys that I had already recruited 135 00:04:33.960 --> 00:04:36.040 and I thought this cash was gonna be there and it wasn't. 136 00:04:36.040 --> 00:04:38.520 And so I put $3,300 a day on a credit card 137 00:04:38.520 --> 00:04:40.520 and I only had $1,000 in my bank account. 138 00:04:40.520 --> 00:04:43.640 And so every day I was becoming $3,300 poor. 139 00:04:43.640 --> 00:04:45.360 And when we started that, I didn't even have a payment 140 00:04:45.360 --> 00:04:46.760 processing because we got shut down. 141 00:04:46.760 --> 00:04:48.720 And that was where the extra money was supposed to come from. 142 00:04:48.720 --> 00:04:52.360 And so we were doing, you know, it was $3,300 a day 143 00:04:52.360 --> 00:04:56.240 in hotels, airfare, ad spend, rental car, 144 00:04:56.240 --> 00:04:57.640 pretty damn food for all the sales guys 145 00:04:57.640 --> 00:04:59.920 who were out in the road, like doing the gym turnarounds. 146 00:04:59.920 --> 00:05:02.400 And I could not process the money 147 00:05:02.400 --> 00:05:04.360 that they were sending contracts over from. 148 00:05:04.360 --> 00:05:06.520 And so I'm seeing these contracts stack and stack 149 00:05:06.520 --> 00:05:08.240 and stack and stack and I had no way to process it. 150 00:05:08.240 --> 00:05:10.280 And I'm just watching this debt bill go up. 151 00:05:10.280 --> 00:05:13.240 And I got a processor the last week of the month 152 00:05:13.240 --> 00:05:14.320 and it was only for 50 grand. 153 00:05:14.320 --> 00:05:16.640 And we had like $300,000 in contracts 154 00:05:16.640 --> 00:05:18.520 and I had $100,000 in expenses. 155 00:05:18.520 --> 00:05:20.000 But he's like, hey, it's per month, 156 00:05:20.000 --> 00:05:21.640 which means on the first of next month, 157 00:05:21.640 --> 00:05:23.160 you can run another 50. 158 00:05:23.160 --> 00:05:25.680 And so I ran 50 on like the 28th of January 159 00:05:25.680 --> 00:05:27.520 and then I ran 50 on February 1st. 160 00:05:27.520 --> 00:05:30.320 I got two more that week and got us another 50. 161 00:05:30.320 --> 00:05:33.080 So the two 50s back to back covered my 100K 162 00:05:33.080 --> 00:05:33.920 from the last month. 163 00:05:33.920 --> 00:05:36.360 And that was like kind of like the plane coming under. 164 00:05:36.360 --> 00:05:38.880 There's like way more of me about to lose it like 165 00:05:38.880 --> 00:05:40.440 and losing it again and again after that. 166 00:05:40.440 --> 00:05:44.320 But I can go as deep on that side as you want. 167 00:05:44.320 --> 00:05:45.840 Well, like where were you mentally? 168 00:05:45.840 --> 00:05:47.320 I mean, were you mentally when this happened? 169 00:05:47.320 --> 00:05:49.240 You're like, my dad was right, he's got me. 170 00:05:49.240 --> 00:05:50.960 Or were you like still I'm gonna prove him wrong? 171 00:05:50.960 --> 00:05:52.960 Oh, I was, so I had made the decision 172 00:05:52.960 --> 00:05:55.360 that I would either die or I would succeed. 173 00:05:55.360 --> 00:05:56.840 And so I didn't know when it would happen. 174 00:05:56.840 --> 00:05:58.920 I just figured if I continued. 175 00:05:58.920 --> 00:06:01.440 So I, so if there's one thing for the audience 176 00:06:01.440 --> 00:06:03.160 if anyone who's going through it right now, 177 00:06:03.160 --> 00:06:04.680 that the refrain, the repeated message 178 00:06:04.680 --> 00:06:06.800 that I had to myself over and over again was, 179 00:06:06.800 --> 00:06:09.000 I cannot lose if I do not quit. 180 00:06:09.000 --> 00:06:12.280 And so it was, that was under my control. 181 00:06:12.280 --> 00:06:14.080 Then when I talk about like controlling the controllable, 182 00:06:14.080 --> 00:06:16.080 like I could choose not to quit. 183 00:06:16.160 --> 00:06:17.640 And so if I could just have that, 184 00:06:17.640 --> 00:06:19.480 then it meant like it was like this tiny little thing 185 00:06:19.480 --> 00:06:22.320 is like if I don't quit, I didn't lose. 186 00:06:22.320 --> 00:06:24.160 It just means I still get to play. 187 00:06:24.160 --> 00:06:25.920 And when you think about like, 188 00:06:25.920 --> 00:06:27.560 I think I can't remember if his Aristotle's replayed 189 00:06:27.560 --> 00:06:29.200 nobody says like you shouldn't judge him in 190 00:06:29.200 --> 00:06:30.680 until the day he dies. 191 00:06:30.680 --> 00:06:32.480 And so, you know, even amazing life 192 00:06:32.480 --> 00:06:35.000 and then the last five years, like everything goes, 193 00:06:35.000 --> 00:06:36.920 when you get executed publicly, it's like wow, 194 00:06:36.920 --> 00:06:38.280 would people say you did a good life or bad life? 195 00:06:38.280 --> 00:06:40.160 Like you can only judge after the man is dead. 196 00:06:40.160 --> 00:06:42.160 And so I also think about that within my own life now. 197 00:06:42.160 --> 00:06:44.120 Like when you think about like what's the leverage 198 00:06:44.120 --> 00:06:47.200 for the next chapter, it's like well, I'm not dead yet. 199 00:06:47.200 --> 00:06:49.080 And so I gotta keep going because that's what, 200 00:06:49.080 --> 00:06:50.600 you know, that's what we're gonna look back on. 201 00:06:50.600 --> 00:06:52.720 And so I had this little thing that I could protect, 202 00:06:52.720 --> 00:06:54.240 which is my willpower. 203 00:06:54.240 --> 00:06:57.800 And it's just like if I do not quit, I cannot lose. 204 00:06:57.800 --> 00:07:00.600 And so I was so afraid of losing that just not quitting 205 00:07:00.600 --> 00:07:01.520 became the one thing. 206 00:07:01.520 --> 00:07:04.680 And so if I just kept moving one foot at another, 207 00:07:04.680 --> 00:07:06.680 one phone call after another, one sales appointment 208 00:07:06.680 --> 00:07:08.720 after another, I knew that if I did that long enough, 209 00:07:08.720 --> 00:07:09.800 eventually it would turn around. 210 00:07:09.800 --> 00:07:12.600 And I could flip my self out. 211 00:07:12.600 --> 00:07:13.600 Yes. 212 00:07:13.600 --> 00:07:14.600 Yeah. 213 00:07:14.600 --> 00:07:15.600 Wow. 214 00:07:15.600 --> 00:07:20.880 I'm blown away because I have equated only losing 215 00:07:20.880 --> 00:07:22.600 with quitting all of my life. 216 00:07:22.600 --> 00:07:24.520 And the reason for that is, I just want to share 217 00:07:24.520 --> 00:07:26.800 because we're going back and forth with my dad. 218 00:07:26.800 --> 00:07:28.200 My dad was an alcoholic when he got sober. 219 00:07:28.200 --> 00:07:30.520 I said, dad, are you never gonna drink again? 220 00:07:30.520 --> 00:07:31.720 He goes, I can't promise you that. 221 00:07:31.720 --> 00:07:33.040 I'm just gonna quit for one more day. 222 00:07:33.040 --> 00:07:34.760 All right, I'm not gonna drink for one more day. 223 00:07:34.760 --> 00:07:36.320 And many, many times in my business, I'm like, 224 00:07:36.320 --> 00:07:39.000 I can't, I am incapable mentally right now, 225 00:07:39.000 --> 00:07:41.400 saying I never going to quit. 226 00:07:41.400 --> 00:07:43.920 That's a like 80 year decision based 227 00:07:43.920 --> 00:07:45.120 on a bunch of crap right now. 228 00:07:45.120 --> 00:07:47.920 But I can decide not to quit for one more day. 229 00:07:47.920 --> 00:07:49.560 And that means I have not yet lost. 230 00:07:49.560 --> 00:07:51.520 I literally equated quitting with losing. 231 00:07:51.520 --> 00:07:55.040 And so no matter how behind in the score I was, 232 00:07:55.040 --> 00:07:56.800 I had not officially lost the game. 233 00:07:56.800 --> 00:07:59.680 The clock has not run out until I go, I quit. 234 00:07:59.680 --> 00:08:00.760 And so I was still in the game. 235 00:08:00.760 --> 00:08:05.760 So this, this concept, I just, I love what someone said stuff 236 00:08:05.760 --> 00:08:08.480 and I put it through my life barometer, my meter. 237 00:08:08.480 --> 00:08:09.320 I'm like, nope, I did that. 238 00:08:09.320 --> 00:08:10.160 You're exactly right. 239 00:08:10.160 --> 00:08:12.040 I know someone who did that, you're exactly right. 240 00:08:12.040 --> 00:08:13.240 What a great answer. 241 00:08:13.240 --> 00:08:14.880 Now you're talking a lot about stacks. 242 00:08:14.880 --> 00:08:16.360 By the way, can you guys, if we did a show, 243 00:08:16.360 --> 00:08:18.240 by the way, that's moves this quickly through stuff 244 00:08:18.240 --> 00:08:19.280 before like bam, bam, bam. 245 00:08:19.280 --> 00:08:20.120 Let me get more in your brain. 246 00:08:20.120 --> 00:08:20.960 Let me get more in your brain. 247 00:08:20.960 --> 00:08:22.600 I almost feel like I'm using you today. 248 00:08:22.600 --> 00:08:23.440 You know what I mean? 249 00:08:23.440 --> 00:08:26.480 Like I'm just working this dude through the whole show. 250 00:08:26.480 --> 00:08:27.560 But it's great to have somebody on 251 00:08:27.560 --> 00:08:29.640 that I could just keep working for my audience 252 00:08:29.640 --> 00:08:30.560 because this is my family. 253 00:08:30.560 --> 00:08:32.280 Sometimes when you're talking to someone like, 254 00:08:32.280 --> 00:08:34.320 all right, let me help you along here with this with you. 255 00:08:34.320 --> 00:08:36.000 I'm just like, go, go, go, give him that one. 256 00:08:36.000 --> 00:08:37.360 Give him that one, give him that one. 257 00:08:37.360 --> 00:08:38.840 And I love that about you. 258 00:08:38.840 --> 00:08:41.280 The stack stuff is super cool to me. 259 00:08:41.280 --> 00:08:42.600 And I love the terminology you. 260 00:08:42.600 --> 00:08:45.560 So now we're gonna move a little bit back over 261 00:08:45.560 --> 00:08:49.200 to marketing and branding and all that kind of stuff. 262 00:08:49.200 --> 00:08:51.480 You have this thing called the scarcity stack. 263 00:08:51.480 --> 00:08:53.120 I'm a big believer in this. 264 00:08:53.120 --> 00:08:56.120 I just literally did a real estate deal 265 00:08:56.120 --> 00:08:57.640 based on the premise that you teach. 266 00:08:57.640 --> 00:09:01.840 Now I didn't call it this, but I don't think 267 00:09:01.840 --> 00:09:03.920 people get the concept here at all. 268 00:09:03.920 --> 00:09:07.240 And I think it's one of the lost art forms in marketing 269 00:09:07.240 --> 00:09:09.000 and you describe it in a modern way. 270 00:09:09.000 --> 00:09:10.760 So what's the scarcity stack? 271 00:09:10.760 --> 00:09:15.480 So if we think about all exchanges as forces 272 00:09:15.480 --> 00:09:18.080 between supply and demand, right, within a marketplace. 273 00:09:18.080 --> 00:09:20.720 And I think the more cycles I have in entrepreneurship 274 00:09:20.720 --> 00:09:23.600 and I understand that I'm still young in the game, 275 00:09:23.600 --> 00:09:25.280 the greater and greater appreciation I have 276 00:09:25.280 --> 00:09:27.480 for those simple two forces of supply and demand. 277 00:09:27.480 --> 00:09:30.720 And what's interesting is that you can influence demand 278 00:09:30.720 --> 00:09:32.480 or you can artificially stimulate demand 279 00:09:32.480 --> 00:09:35.520 by marketing stuff, by increasing awareness 280 00:09:35.520 --> 00:09:36.760 about your thing, right? 281 00:09:36.800 --> 00:09:38.120 And so more people find out about it 282 00:09:38.120 --> 00:09:39.120 so your demand goes up. 283 00:09:39.120 --> 00:09:41.960 And so that artificially shifts the demand curve 284 00:09:41.960 --> 00:09:44.400 in your favor and so you sell more stuff, right? 285 00:09:44.400 --> 00:09:48.200 The other side is not nearly as well used 286 00:09:48.200 --> 00:09:50.120 and I think is almost as powerful 287 00:09:50.120 --> 00:09:52.600 if not more powerful than the demand side, 288 00:09:52.600 --> 00:09:54.680 which is how can I cut supply? 289 00:09:54.680 --> 00:09:57.240 And the first time I really saw this happen 290 00:09:57.240 --> 00:10:00.240 in person was I was at an Arnold Schwarzenegger charity event 291 00:10:00.240 --> 00:10:02.520 at his house and they wanted to introduce me 292 00:10:02.520 --> 00:10:04.000 some of the big donors because we're big donors. 293 00:10:04.000 --> 00:10:07.400 And the guy was a jewelry like mega dude, right? 294 00:10:07.400 --> 00:10:09.600 And so he had, and he was like a first generation 295 00:10:09.600 --> 00:10:12.280 from Serbia, hard dude, like, but he sold like, 296 00:10:12.280 --> 00:10:14.440 500,000 hour watches, things like that. 297 00:10:14.440 --> 00:10:17.280 And they had just raised the prices for the charity event 298 00:10:17.280 --> 00:10:19.320 from 15,000 to 25,000. 299 00:10:19.320 --> 00:10:21.640 And the charity organizer who made the introductions like, 300 00:10:21.640 --> 00:10:24.000 yeah, we listened to George, he told us to do this thing. 301 00:10:24.000 --> 00:10:25.400 I was a little nervous about it. 302 00:10:25.400 --> 00:10:27.760 And he just said it so matter of factually. 303 00:10:27.760 --> 00:10:29.720 He said, whenever a demand increases, 304 00:10:29.720 --> 00:10:31.040 he said, cut supply. 305 00:10:31.040 --> 00:10:33.800 And when you look at what Chanel and Louis Vuitton 306 00:10:33.800 --> 00:10:35.760 and some of these luxury brands do is like, 307 00:10:35.760 --> 00:10:37.840 they are masters of scarcity. 308 00:10:37.840 --> 00:10:41.240 And so when you can get someone into a FOMO situation 309 00:10:41.240 --> 00:10:43.120 where they fear missing out, 310 00:10:43.120 --> 00:10:46.400 you can actually trigger this incredibly emotional decision 311 00:10:46.400 --> 00:10:48.680 and what it happens is you decrease the action threshold. 312 00:10:48.680 --> 00:10:52.400 And so you have a person who normally wouldn't take action. 313 00:10:52.400 --> 00:10:54.720 And so the scarcity, the fear of missing out 314 00:10:54.720 --> 00:10:56.920 on this opportunity decreases their threshold 315 00:10:56.920 --> 00:10:59.480 of taking action and they walk across the line. 316 00:10:59.480 --> 00:11:02.720 And if you use this concept of scarcity 317 00:11:02.720 --> 00:11:04.120 and use it within your business, 318 00:11:04.120 --> 00:11:06.840 where the way I like to think about it is that, 319 00:11:06.840 --> 00:11:08.320 so whoever's listening right now, 320 00:11:08.320 --> 00:11:09.640 if you have a business or even if you are, 321 00:11:09.640 --> 00:11:11.160 if you're a salesman, whatever, 322 00:11:11.160 --> 00:11:14.280 if you were to 100x your volume tomorrow, 323 00:11:14.280 --> 00:11:16.160 you probably couldn't handle it. 324 00:11:16.160 --> 00:11:18.520 And so there is an actual cap on your business 325 00:11:18.520 --> 00:11:19.480 as it currently stands. 326 00:11:19.480 --> 00:11:20.760 You're just not articulating it 327 00:11:20.760 --> 00:11:22.360 because you're afraid of saying, 328 00:11:22.360 --> 00:11:23.880 well, if I can only take 10 people, 329 00:11:23.880 --> 00:11:26.040 then they'll think I'm a small business or whatever. 330 00:11:26.040 --> 00:11:28.280 But if you said I only take 10 people, 331 00:11:28.280 --> 00:11:30.040 even though it is your actual cap, 332 00:11:30.040 --> 00:11:32.400 it has a very different feel to it. 333 00:11:32.400 --> 00:11:34.160 And what happens is you now actually 334 00:11:34.160 --> 00:11:35.120 pace your business at a point 335 00:11:35.120 --> 00:11:37.480 where you don't overextend yourself. 336 00:11:37.480 --> 00:11:40.840 And you create a stronger pool of the customers 337 00:11:40.840 --> 00:11:41.680 into your world. 338 00:11:43.480 --> 00:11:44.680 Real quick guys, you guys already know 339 00:11:44.680 --> 00:11:46.640 that I don't run any ads on this 340 00:11:46.640 --> 00:11:47.960 and I don't sell anything. 341 00:11:47.960 --> 00:11:49.800 And so the only ask that I can ever have 342 00:11:49.800 --> 00:11:51.200 are you guys that you help me spread the words 343 00:11:51.200 --> 00:11:52.680 so we can have more entrepreneurs, 344 00:11:52.680 --> 00:11:54.400 make more money, feed their families, 345 00:11:54.400 --> 00:11:56.800 make better products and have better experiences 346 00:11:56.800 --> 00:11:58.400 for their employees and customers. 347 00:11:58.400 --> 00:12:00.600 And the only way we do that is if you can rate 348 00:12:00.600 --> 00:12:02.840 and review and share this podcast. 349 00:12:02.840 --> 00:12:04.200 So the single thing that I ask you to do, 350 00:12:04.200 --> 00:12:05.440 is you can just leave a review, 351 00:12:05.440 --> 00:12:07.400 but take 10 seconds or one type of the thumb, 352 00:12:07.400 --> 00:12:08.640 it would mean the absolute world to me. 353 00:12:08.640 --> 00:12:11.480 And more importantly, it may change the world to someone else. 354 00:12:13.520 --> 00:12:14.560 Here's what I like. 355 00:12:14.560 --> 00:12:16.560 If you can listen to the concept stuff 356 00:12:16.560 --> 00:12:18.360 and then do the hard work those of you 357 00:12:18.360 --> 00:12:19.600 that are listening or watching this 358 00:12:19.600 --> 00:12:21.440 to the application in your business. 359 00:12:21.440 --> 00:12:22.440 So this scarcity idea, you go, 360 00:12:22.440 --> 00:12:24.320 no, no, no, I'm in the protein business. 361 00:12:24.320 --> 00:12:26.720 So we have unlimited amounts of protein. 362 00:12:26.720 --> 00:12:28.240 But maybe the scarcity isn't the product, 363 00:12:28.240 --> 00:12:29.960 scarcity isn't the time. 364 00:12:29.960 --> 00:12:32.560 Meaning that if they don't hurry up and start doing it, 365 00:12:32.560 --> 00:12:34.760 every day they fall back, like saving money. 366 00:12:34.760 --> 00:12:35.880 If you're in the financial services, 367 00:12:35.880 --> 00:12:36.880 because you go, no, no, 368 00:12:36.880 --> 00:12:37.560 there's plenty of these contracts 369 00:12:37.560 --> 00:12:38.760 for investments or insurance. 370 00:12:38.760 --> 00:12:42.200 Yeah, but every day they don't move forward, 371 00:12:42.200 --> 00:12:44.840 there's a scarcity of time that they can make up for 372 00:12:44.840 --> 00:12:46.600 with the compounding of money. 373 00:12:46.600 --> 00:12:48.720 So that getting the concept of FOMO 374 00:12:48.720 --> 00:12:52.400 or the limiting amount of it or how few people do it 375 00:12:52.400 --> 00:12:55.360 absolutely increases value proposition. 376 00:12:55.360 --> 00:12:56.200 So so good. 377 00:12:56.440 --> 00:12:58.960 For the salesman in the room or in the room. 378 00:12:58.960 --> 00:12:59.800 Right. 379 00:12:59.800 --> 00:13:01.120 Think about it in terms of the opportunity cost 380 00:13:01.120 --> 00:13:02.240 or the cost of inaction. 381 00:13:02.240 --> 00:13:03.960 And so the nice thing is that you always have a cost 382 00:13:03.960 --> 00:13:05.440 of inaction that's amounting. 383 00:13:05.440 --> 00:13:08.200 And so that will typically stack in your favor 384 00:13:08.200 --> 00:13:10.480 as the salesman with every second that passes. 385 00:13:10.480 --> 00:13:13.520 And so all we have to do is direct the prospects 386 00:13:13.520 --> 00:13:15.760 attention to the cost that is already happening, 387 00:13:15.760 --> 00:13:17.880 but they are just not aware of or focusing on. 388 00:13:17.880 --> 00:13:19.200 And so we just direct the attention 389 00:13:19.200 --> 00:13:20.120 and then all of a sudden, 390 00:13:20.120 --> 00:13:22.040 what was non-existent becomes a problem. 391 00:13:22.040 --> 00:13:24.080 And so you see this in politics all the time. 392 00:13:24.080 --> 00:13:25.600 Whatever they are talking about, 393 00:13:25.600 --> 00:13:28.360 more becomes the hot topic of the election, 394 00:13:28.360 --> 00:13:30.680 but it's only because they're putting attention to it, 395 00:13:30.680 --> 00:13:33.000 not because people actually care more or less about it. 396 00:13:33.000 --> 00:13:35.160 They're telling us that we should care more or less about it 397 00:13:35.160 --> 00:13:37.080 by the attention they're putting towards it. 398 00:13:37.080 --> 00:13:39.520 And so this is the media or masters of this. 399 00:13:39.520 --> 00:13:42.800 And by the way, these things work so well, everyone, 400 00:13:42.800 --> 00:13:44.880 that you have to leverage them ethically. 401 00:13:44.880 --> 00:13:45.720 Yeah. 402 00:13:45.720 --> 00:13:46.880 And this is one of the things I just want to say up front 403 00:13:46.880 --> 00:13:50.240 because these concepts of scarcity and FOMO, 404 00:13:50.240 --> 00:13:52.880 it has to be ethically stated and truthfully stated 405 00:13:52.880 --> 00:13:55.720 because long-term, if you push these levers the wrong way, 406 00:13:55.720 --> 00:13:57.280 you'll destroy your reputation 407 00:13:57.280 --> 00:14:00.240 if there's not a factual basis for what you're describing. 408 00:14:00.240 --> 00:14:01.440 Okay, a couple more stacks. 409 00:14:01.440 --> 00:14:02.960 I'll give you, oh, not please. 410 00:14:02.960 --> 00:14:06.160 So there's two elements of trying to create FOMO 411 00:14:06.160 --> 00:14:07.400 besides like risk reversals, 412 00:14:07.400 --> 00:14:08.960 a whole other thing with guarantees and things like that. 413 00:14:08.960 --> 00:14:11.080 But there's scarcity, which is a function 414 00:14:11.080 --> 00:14:12.520 of the number of units. 415 00:14:12.520 --> 00:14:14.880 And then there is urgency, which is a function of time. 416 00:14:14.880 --> 00:14:16.320 And so a lot of people say scarcity and urgency, 417 00:14:16.320 --> 00:14:17.640 but they don't know the difference between the two. 418 00:14:17.640 --> 00:14:19.560 And so urgency is, it doesn't matter how many units 419 00:14:19.560 --> 00:14:21.000 I have, the deal ends tomorrow. 420 00:14:21.000 --> 00:14:21.840 Yes. 421 00:14:21.840 --> 00:14:24.280 And so if you can't introduce that, 422 00:14:24.280 --> 00:14:25.600 and so I'll give you an example of like, 423 00:14:25.600 --> 00:14:26.600 well, we have protein. 424 00:14:26.600 --> 00:14:27.760 It's like, well, you have protein, 425 00:14:27.760 --> 00:14:29.640 but I may have a Valentine's Day special 426 00:14:29.640 --> 00:14:31.640 that is ending this week. 427 00:14:31.640 --> 00:14:34.240 And then next month I might have a spring special, 428 00:14:34.240 --> 00:14:36.000 but the thing is, is when I'm articulating to a prospect, 429 00:14:36.000 --> 00:14:39.680 I can say, hey, this particular promotion ends tomorrow 430 00:14:39.680 --> 00:14:41.000 or ends in two days. 431 00:14:41.000 --> 00:14:42.800 Like you should get this starter to get, 432 00:14:42.800 --> 00:14:44.360 get your loan application in because like, 433 00:14:44.360 --> 00:14:47.160 I can't guarantee that as soon as we get into the spring time, 434 00:14:47.160 --> 00:14:48.720 we're gonna have the same things, right? 435 00:14:48.720 --> 00:14:51.240 And then with the scarcity component, 436 00:14:51.240 --> 00:14:53.920 it's a function of units and what you were saying earlier, 437 00:14:53.920 --> 00:14:56.120 there's always a way to think about it. 438 00:14:56.120 --> 00:14:58.480 Like with the protein, like I thought of a different example, 439 00:14:58.480 --> 00:14:59.680 I thought of flavors. 440 00:14:59.680 --> 00:15:01.240 I was like, oh, just have a limited flavor. 441 00:15:01.240 --> 00:15:04.000 Protein's gonna be here, but this particular flavor 442 00:15:04.000 --> 00:15:04.840 will not be. 443 00:15:04.840 --> 00:15:05.840 And so it's like, you can always, 444 00:15:05.840 --> 00:15:08.560 or you can put scarcity in terms of the bonuses you add. 445 00:15:08.560 --> 00:15:11.600 So it's like, hey, I have proteins and they're all vanilla. 446 00:15:11.600 --> 00:15:13.560 I was like, but for this month, 447 00:15:13.560 --> 00:15:16.120 I'm going to be adding a free workout or a free workout template 448 00:15:16.120 --> 00:15:18.480 or a nutrition template that I'm gonna add with my protein, 449 00:15:18.480 --> 00:15:20.680 which I'm not gonna be giving next. 450 00:15:20.680 --> 00:15:22.400 So it's, so then what you can do is 451 00:15:22.400 --> 00:15:24.080 you create these additional value ads, 452 00:15:24.080 --> 00:15:25.120 which no one else is doing. 453 00:15:25.120 --> 00:15:26.680 And then with the additional value ad, 454 00:15:26.680 --> 00:15:30.080 you both add value and create scarcity at the same time 455 00:15:30.080 --> 00:15:31.840 to urge the person to take action. 456 00:15:31.840 --> 00:15:32.680 Very good. 457 00:15:32.680 --> 00:15:34.560 See, no, no, please don't be sorry 458 00:15:34.560 --> 00:15:35.880 because that's informative for me. 459 00:15:35.880 --> 00:15:36.720 Listen to me, everyone. 460 00:15:36.720 --> 00:15:37.560 This is, I told you, 461 00:15:37.560 --> 00:15:39.200 you're gonna get stuff on today's show. 462 00:15:39.200 --> 00:15:40.600 This is why I do the show, by the way. 463 00:15:40.600 --> 00:15:43.200 I want to provide a value and a depth of insight 464 00:15:43.200 --> 00:15:44.920 between two people communicating that you wouldn't get 465 00:15:44.920 --> 00:15:46.560 anywhere else based on their experiences. 466 00:15:46.560 --> 00:15:49.160 And here's the thing on this, listen to me, everybody. 467 00:15:49.200 --> 00:15:51.200 It is your ability to take these concepts 468 00:15:51.200 --> 00:15:53.040 that are absolutely surefire 469 00:15:53.040 --> 00:15:55.080 and find the applications in your own life, 470 00:15:55.080 --> 00:15:56.800 get them with your team as well. 471 00:15:56.800 --> 00:15:58.480 I have to tell you, in business, 472 00:15:58.480 --> 00:16:02.320 I have found that the principles are sort of enduring over time. 473 00:16:02.320 --> 00:16:05.040 This FOMO concept or scarcity concept 474 00:16:05.040 --> 00:16:09.600 is as old as time, technology, timing, marketing, 475 00:16:09.600 --> 00:16:12.040 changes the application and the mechanism 476 00:16:12.040 --> 00:16:13.200 of which you deliver it. 477 00:16:13.200 --> 00:16:14.800 But this is not a new idea. 478 00:16:14.800 --> 00:16:17.400 It's a new idea for 99.9% of you 479 00:16:17.440 --> 00:16:19.880 because nobody talks about these things anymore 480 00:16:19.880 --> 00:16:21.520 because they haven't done the hard work of, 481 00:16:21.520 --> 00:16:23.440 how does this apply now? 482 00:16:23.440 --> 00:16:24.600 How does this apply now? 483 00:16:24.600 --> 00:16:27.240 Warren Buffett, you and I both still take advice 484 00:16:27.240 --> 00:16:31.520 from a guy who is double my age and I'm already old 485 00:16:31.520 --> 00:16:34.200 because the principles that this dude teaches 486 00:16:34.200 --> 00:16:37.600 are timeless, it's our ability to apply them now 487 00:16:37.600 --> 00:16:39.120 that separates us in our life. 488 00:16:39.120 --> 00:16:42.360 Trim and stack hack, what the heck is that? 489 00:16:42.360 --> 00:16:45.160 I wrote it down because it's a cool term. 490 00:16:45.160 --> 00:16:48.160 So when we're thinking, and this is if you have 491 00:16:48.160 --> 00:16:50.120 more control over the services that you're selling. 492 00:16:50.120 --> 00:16:52.200 So this tends to be a little bit more on the service side. 493 00:16:52.200 --> 00:16:53.680 You can still think through it from any conversation 494 00:16:53.680 --> 00:16:56.080 but I'm just going to apply, this service gets easier. 495 00:16:56.080 --> 00:16:58.920 So the first thing that we like to do when we're thinking 496 00:16:58.920 --> 00:17:00.000 about creating a new product line 497 00:17:00.000 --> 00:17:01.880 or when I say a new service line, 498 00:17:01.880 --> 00:17:03.120 we think about what are all the problems 499 00:17:03.120 --> 00:17:04.560 that our prospects are suffering from 500 00:17:04.560 --> 00:17:05.600 and what are the things that are coming up 501 00:17:05.600 --> 00:17:07.040 on sales calls that they're saying they're struggling 502 00:17:07.040 --> 00:17:08.640 with or they wish that we could solve for them. 503 00:17:08.640 --> 00:17:11.480 And the way to think through this is tactically, 504 00:17:11.480 --> 00:17:14.600 what has to happen step by step by step 505 00:17:14.600 --> 00:17:15.960 and there's a hundred many steps. 506 00:17:15.960 --> 00:17:18.000 Like you think, oh yeah, we do these two things. 507 00:17:18.000 --> 00:17:21.280 If you really chunk down and zoom in and look at it, 508 00:17:21.280 --> 00:17:23.040 it's like, well, they first they have to click this thing 509 00:17:23.040 --> 00:17:24.600 and then they have to integrate there whatever. 510 00:17:24.600 --> 00:17:26.560 And then there's all these micro steps. 511 00:17:26.560 --> 00:17:28.720 And so we list out all of these problems 512 00:17:28.720 --> 00:17:31.440 and then we translate those problems into solutions. 513 00:17:31.440 --> 00:17:34.080 And so we word it as solution wording 514 00:17:34.080 --> 00:17:36.280 to the problem that we are solving. 515 00:17:36.280 --> 00:17:39.120 And then once we have, okay, these are all the problems 516 00:17:39.120 --> 00:17:40.520 that we're now solving, these are the solutions. 517 00:17:40.520 --> 00:17:43.040 Okay, now how do we deliver on these solutions? 518 00:17:43.040 --> 00:17:45.400 So we can think about this in terms of like we could have, 519 00:17:45.400 --> 00:17:47.520 we could have a portal that does a training, 520 00:17:47.520 --> 00:17:49.200 we could do some sort of one to many thing, 521 00:17:49.200 --> 00:17:51.160 we could have a semi private or small group, 522 00:17:51.160 --> 00:17:53.040 we could have it be in person, we could have it be remote, 523 00:17:53.040 --> 00:17:54.040 we could have it be a phone call, 524 00:17:54.040 --> 00:17:55.560 we could have it be a chat support. 525 00:17:55.560 --> 00:17:57.040 So I have something called a delivery cube 526 00:17:57.040 --> 00:17:58.880 which kind of goes with this in terms of how you 527 00:17:58.880 --> 00:18:00.360 get into levels of service. 528 00:18:00.360 --> 00:18:02.280 So on one level of the cube you have, 529 00:18:02.280 --> 00:18:03.720 what is the ratio of the people? 530 00:18:03.720 --> 00:18:06.480 So like, like I said, one to one small group, one to many, 531 00:18:06.480 --> 00:18:08.520 you have the speed of response. 532 00:18:08.520 --> 00:18:10.680 So is this gonna be, we respond instantly 533 00:18:10.680 --> 00:18:12.240 or is this so we respond in 24 hours 534 00:18:12.240 --> 00:18:13.640 to respond by the end of the week? 535 00:18:13.640 --> 00:18:15.320 And then is the quality of the service, 536 00:18:15.320 --> 00:18:17.440 are you gonna just get a frontline support rep 537 00:18:17.440 --> 00:18:20.800 or are you gonna get a VIP concierge? 538 00:18:20.800 --> 00:18:22.680 And then the medium of that service, 539 00:18:22.680 --> 00:18:26.560 which is zoom, is it in person, is it a phone call, whatever. 540 00:18:26.560 --> 00:18:28.400 There's a cube and I go in more detail about it. 541 00:18:28.400 --> 00:18:30.160 But when you're thinking through this, 542 00:18:30.160 --> 00:18:31.080 you think through those variables, 543 00:18:31.080 --> 00:18:32.440 how you're gonna deliver the solution. 544 00:18:32.440 --> 00:18:34.880 And so we have the problems, we have the solutions, 545 00:18:34.880 --> 00:18:36.560 and then we think about how we're gonna deliver the solutions. 546 00:18:36.560 --> 00:18:37.920 Okay, there we are. 547 00:18:37.920 --> 00:18:40.040 Now when we think about that, we then write, 548 00:18:40.040 --> 00:18:42.000 what's the cost of delivering the solution? 549 00:18:42.840 --> 00:18:45.000 And so then we look at all of those things, 550 00:18:45.000 --> 00:18:47.360 and we say, okay, if we had to prioritize 551 00:18:47.360 --> 00:18:50.400 just the ones that these people find extremely valuable 552 00:18:50.400 --> 00:18:53.600 and that are low cost for us, 553 00:18:53.600 --> 00:18:55.320 what if we just combined all of those 554 00:18:55.320 --> 00:18:56.520 and then took out the rest of them? 555 00:18:56.520 --> 00:18:58.480 So all the things that provide tremendous value 556 00:18:58.480 --> 00:19:02.000 and happen at very little or no incremental cost to us. 557 00:19:02.000 --> 00:19:04.080 And then that is what we will pack together 558 00:19:04.080 --> 00:19:05.760 and then we'll bundle that whole thing 559 00:19:05.760 --> 00:19:08.440 as a much bigger problem solving solution. 560 00:19:08.440 --> 00:19:09.800 Then we put those things together 561 00:19:09.800 --> 00:19:11.240 and then you add some scarcity, 562 00:19:11.280 --> 00:19:13.640 you add some bonuses, you decrease the risk 563 00:19:13.640 --> 00:19:15.320 with some sort of guarantee if you can, 564 00:19:15.320 --> 00:19:17.160 if you add some sort of urgency around acting, 565 00:19:17.160 --> 00:19:19.520 then you have what I would consider a very compelling offer. 566 00:19:19.520 --> 00:19:21.360 And if you have a compelling offer, 567 00:19:21.360 --> 00:19:23.240 it makes it very difficult to be poor. 568 00:19:23.240 --> 00:19:26.320 Because what happens is when you make offers 569 00:19:26.320 --> 00:19:27.840 that people feel stupid saying no to, 570 00:19:27.840 --> 00:19:29.320 they tend to say yes. 571 00:19:29.320 --> 00:19:31.160 And when people tend to say yes to offers, 572 00:19:31.160 --> 00:19:33.040 you tend to make more money. 573 00:19:33.040 --> 00:19:34.840 And if you did it and you designed your offer 574 00:19:34.840 --> 00:19:36.400 in a way that you provide a lot of value 575 00:19:36.400 --> 00:19:37.520 and it cost you very little to do it, 576 00:19:37.520 --> 00:19:38.800 you make lots and lots of money. 577 00:19:38.800 --> 00:19:39.600 And so that is the idea 578 00:19:39.600 --> 00:19:40.720 and we try to repeat that action 579 00:19:40.720 --> 00:19:42.000 as many times we possibly can. 580 00:19:42.000 --> 00:19:43.960 Yes, that's sort of business. 581 00:19:43.960 --> 00:19:45.800 No, but when you step back and look at it, 582 00:19:45.800 --> 00:19:47.200 you take these very complicated things 583 00:19:47.200 --> 00:19:48.360 and make them simple and to you. 584 00:19:48.360 --> 00:19:49.280 It's like, yeah, I just, 585 00:19:49.280 --> 00:19:50.440 but what you just described 586 00:19:50.440 --> 00:19:53.400 is actually called four years of business in college, right? 587 00:19:53.400 --> 00:19:55.720 That's still into like 90 seconds. 588 00:19:55.720 --> 00:19:57.680 Because that's exactly how business works. 589 00:19:57.680 --> 00:19:58.840 I have this other theory right now 590 00:19:58.840 --> 00:20:00.400 that's gone by the wayside in business 591 00:20:00.400 --> 00:20:02.280 and it just blows my mind. 592 00:20:02.280 --> 00:20:05.080 And that is like, at the end of the day, 593 00:20:05.080 --> 00:20:07.640 I want my existing clients to send me 594 00:20:07.640 --> 00:20:10.640 or customers to more clients and customers. 595 00:20:10.640 --> 00:20:12.560 And of all of this stuff, 596 00:20:12.560 --> 00:20:16.000 it's like, I'm blown away by how little time. 597 00:20:16.000 --> 00:20:17.600 And I mean, like almost none. 598 00:20:17.600 --> 00:20:20.680 With independent contractors or big old companies 599 00:20:20.680 --> 00:20:22.760 spend on the product 600 00:20:22.760 --> 00:20:26.800 and the client or customer experience with you. 601 00:20:26.800 --> 00:20:28.200 What did I feel? 602 00:20:28.200 --> 00:20:30.240 What energy did I get 603 00:20:30.240 --> 00:20:32.640 that would make me want to tell someone else 604 00:20:32.640 --> 00:20:34.880 you should have the same experience I had. 605 00:20:34.880 --> 00:20:37.200 They spend all this time on everything 606 00:20:37.200 --> 00:20:39.200 other than that thing, 607 00:20:39.200 --> 00:20:41.680 which is the only thing that will cause your business 608 00:20:41.680 --> 00:20:44.240 to grow without your effort afterwards. 609 00:20:44.240 --> 00:20:45.400 So I want you to talk about that. 610 00:20:45.400 --> 00:20:47.240 This is like my favorite topic. 611 00:20:47.240 --> 00:20:48.600 So I'm very excited about this. 612 00:20:48.600 --> 00:20:49.440 Okay. 613 00:20:49.440 --> 00:20:50.720 So I'm going to quote Naval Rafa Khan 614 00:20:50.720 --> 00:20:51.560 because I love this code. 615 00:20:51.560 --> 00:20:53.560 He says, you only sell because you don't know how to market 616 00:20:53.560 --> 00:20:54.720 and you only market because you don't know 617 00:20:54.720 --> 00:20:56.200 how to build a product. 618 00:20:56.200 --> 00:20:58.680 Let's break down things to the basic units, right? 619 00:20:58.680 --> 00:21:01.360 There's only five ways you can get more customers. 620 00:21:01.360 --> 00:21:03.560 Number one is you reach out to people privately. 621 00:21:03.560 --> 00:21:05.960 So you cold call, cold DM, cold email, whatever. 622 00:21:05.960 --> 00:21:06.800 Right. 623 00:21:06.800 --> 00:21:08.240 The next one is that you make content 624 00:21:08.280 --> 00:21:09.440 that attracts people to you. 625 00:21:09.440 --> 00:21:11.640 They find your stuff, they discover it, right? 626 00:21:11.640 --> 00:21:15.040 The third is that you run paid ads, right? 627 00:21:15.040 --> 00:21:17.600 And then the fourth is that you get affiliates 628 00:21:17.600 --> 00:21:19.720 and partners who are other businesses 629 00:21:19.720 --> 00:21:21.880 who serve people like your customers 630 00:21:21.880 --> 00:21:23.280 and refer them to you. 631 00:21:23.280 --> 00:21:27.160 And then finally, customers tell other customers, yes. 632 00:21:27.160 --> 00:21:28.960 So here's what's interesting is that 633 00:21:28.960 --> 00:21:30.400 if you think about, when we talked about leverage, 634 00:21:30.400 --> 00:21:32.520 this is going to come full circle, which is great. 635 00:21:32.520 --> 00:21:35.800 The first four that I discussed have linear, 636 00:21:35.800 --> 00:21:37.080 they are linear in nature, 637 00:21:37.120 --> 00:21:39.200 meaning if I make 10 more dials, 638 00:21:39.200 --> 00:21:41.200 I can predict how many customers I'm going to get from that. 639 00:21:41.200 --> 00:21:43.480 10 more reach outs where I spend 10 more dollars on ads 640 00:21:43.480 --> 00:21:45.440 or I make another piece of content. 641 00:21:45.440 --> 00:21:48.800 It's relatively predictable in terms of what's going to come back. 642 00:21:48.800 --> 00:21:50.240 It is a linear equation. 643 00:21:51.800 --> 00:21:53.680 You add more in, you get more out. 644 00:21:53.680 --> 00:21:57.640 With a quadratic equation, you get an exponential. 645 00:21:57.640 --> 00:21:59.400 And unfortunately, entrepreneurial space, 646 00:21:59.400 --> 00:22:00.960 people are like exponential, they say it a lot, 647 00:22:00.960 --> 00:22:01.800 but they don't know what it means. 648 00:22:01.800 --> 00:22:02.840 They really just means it multiplies, 649 00:22:02.840 --> 00:22:04.880 which is not what exponential is. 650 00:22:04.880 --> 00:22:08.280 But with a referral or a customer telling another customer, 651 00:22:08.280 --> 00:22:11.240 one person tells two, two tell four, four tell eight. 652 00:22:11.240 --> 00:22:13.720 And so one of the difficulties that I see a lot of businesses 653 00:22:13.720 --> 00:22:15.840 get into is they get to 3 million or they get to 10 million 654 00:22:15.840 --> 00:22:18.680 or you get to 30 million, especially like consumer products. 655 00:22:18.680 --> 00:22:19.920 There are constants in business. 656 00:22:19.920 --> 00:22:21.880 One is that the cost of acquiring customer 657 00:22:21.880 --> 00:22:24.280 will go up over time because impressions will cost more money 658 00:22:24.280 --> 00:22:27.320 and you'll have more operational drag on your business. 659 00:22:27.320 --> 00:22:29.280 And so if those two are constants, 660 00:22:29.280 --> 00:22:31.240 then you have to have an opposing force 661 00:22:31.240 --> 00:22:34.120 that cannot be linear in nature that's going to contradict that. 662 00:22:34.200 --> 00:22:36.560 And so if you are in a consumer-based business, 663 00:22:36.560 --> 00:22:40.360 the only one that can counteract a one-way direction 664 00:22:40.360 --> 00:22:42.680 of increasing cost of impressions and infrastructure 665 00:22:42.680 --> 00:22:44.840 is the decreasing cost of acquisition, 666 00:22:44.840 --> 00:22:46.600 because every time you get a customer, 667 00:22:46.600 --> 00:22:49.040 that customer brings you two more customers. 668 00:22:49.040 --> 00:22:52.000 And so that is like the great equalizer in business. 669 00:22:52.000 --> 00:22:54.760 And I had a first-hand experience with this 670 00:22:54.760 --> 00:22:56.840 recently with the book, the offers button, 671 00:22:56.840 --> 00:22:58.600 because I made one post about it, one, 672 00:22:58.600 --> 00:23:00.520 and I didn't have a following year to year, 673 00:23:00.520 --> 00:23:02.240 whenever I put these a year ago. 674 00:23:02.240 --> 00:23:04.480 And that book, from what I understand, 675 00:23:04.480 --> 00:23:05.920 is sold more than New York Times best sellers, 676 00:23:05.920 --> 00:23:07.880 I just didn't do the politics thing. 677 00:23:07.880 --> 00:23:10.600 But right now, it's sold over 200,000 copies in the first year. 678 00:23:10.600 --> 00:23:12.960 And I have no paid ads, I have no anything. 679 00:23:12.960 --> 00:23:14.480 It was just because people were like, 680 00:23:14.480 --> 00:23:15.680 dude, you should check this book out. 681 00:23:15.680 --> 00:23:16.440 Yeah. 682 00:23:16.440 --> 00:23:20.240 And so I say that to say like, if you nail that piece, 683 00:23:20.240 --> 00:23:21.600 everything else gets easier, 684 00:23:21.600 --> 00:23:24.640 and it's easier to market and make money in the beginning, 685 00:23:24.640 --> 00:23:28.120 and then harder to fix it once you have a bad product. 686 00:23:28.120 --> 00:23:29.280 The reverse is also true, 687 00:23:29.280 --> 00:23:31.040 is that it's harder to spend more time in the beginning 688 00:23:31.040 --> 00:23:33.880 fixing the product, but then when you scale, it's easier. 689 00:23:33.880 --> 00:23:36.680 And so the question is whether you want it to be hard to break through, 690 00:23:36.680 --> 00:23:38.040 and this may not be real for some of you, 691 00:23:38.040 --> 00:23:40.560 but like, once you get to a $10 million enterprise, 692 00:23:40.560 --> 00:23:42.320 it gets very difficult to break through that barrier 693 00:23:42.320 --> 00:23:43.400 for the product's not that good. 694 00:23:43.400 --> 00:23:44.240 That's right. 695 00:23:44.240 --> 00:23:45.480 And it's much harder to take the time 696 00:23:45.480 --> 00:23:47.200 and effort to fix the product. 697 00:23:47.200 --> 00:23:48.600 And I'm going to do a quick segue here 698 00:23:48.600 --> 00:23:50.160 because this happens all the time. 699 00:23:50.160 --> 00:23:51.840 When this is just at least our experience 700 00:23:51.840 --> 00:23:53.480 or the portfolio comes we have. 701 00:23:53.480 --> 00:23:55.880 Well, got you to, you know, one or three million 702 00:23:55.880 --> 00:23:58.280 is not necessarily will get you to 10 million and 30 million, 703 00:23:58.280 --> 00:24:00.800 because in the beginning, you need to sell something to someone. 704 00:24:00.840 --> 00:24:01.720 That you have to promote it. 705 00:24:01.720 --> 00:24:02.840 You have to promote the stuff you have, 706 00:24:02.840 --> 00:24:05.480 otherwise no one knows about you and you're obscure. 707 00:24:05.480 --> 00:24:07.480 And so people have to buy it. 708 00:24:07.480 --> 00:24:10.280 Where people make the mistake is that they get this positive reinforcement 709 00:24:10.280 --> 00:24:11.520 from the fact that they market in the sold 710 00:24:11.520 --> 00:24:12.960 and think, I need to do more of that. 711 00:24:12.960 --> 00:24:14.440 And I'm going to say, yes, you will, 712 00:24:14.440 --> 00:24:16.320 but just not at this moment. 713 00:24:16.320 --> 00:24:18.600 Because at this point is actually a pause point. 714 00:24:18.600 --> 00:24:21.720 And the goal is not to even necessarily make tons of profit at this point. 715 00:24:21.720 --> 00:24:24.200 The goal is to fix the product such that you start to generate 716 00:24:24.200 --> 00:24:26.280 a significant amount of business from referrals. 717 00:24:26.280 --> 00:24:29.400 Until that occurs, there's no point in adding more gas 718 00:24:29.400 --> 00:24:32.320 to the acquisition engine, because you're basically just setting yourself 719 00:24:32.320 --> 00:24:36.080 up for failure at a later point that will then reach a point of equilibrium 720 00:24:36.080 --> 00:24:37.880 where the only way to grow is to sell more people. 721 00:24:37.880 --> 00:24:39.880 And at some point, you will run out of people to sell, 722 00:24:39.880 --> 00:24:42.000 depending on the niche that you're going after. 723 00:24:42.000 --> 00:24:43.960 And so the idea is to actually alternate. 724 00:24:43.960 --> 00:24:46.120 So you focus on the acquisition in the beginning. 725 00:24:46.120 --> 00:24:49.720 You get one, I will always say one product, one avatar, one channel. 726 00:24:49.720 --> 00:24:51.520 That's what you have to do to get to one to three million. 727 00:24:51.520 --> 00:24:53.400 And so at that point, then you fix the product 728 00:24:53.400 --> 00:24:56.200 and you fix the product, you will sneeze your way to 10 million 729 00:24:56.200 --> 00:24:57.720 without doing anything else. 730 00:24:57.960 --> 00:25:00.520 And then once you're at 10, if you have fixed the product 731 00:25:00.520 --> 00:25:03.040 and the customer experience, such that you have a large percentage 732 00:25:03.040 --> 00:25:04.560 of your business come from order of mouth. 733 00:25:04.560 --> 00:25:06.920 Now you've extended the LTV, the customer, 734 00:25:06.920 --> 00:25:09.040 you have increased growth profit per customer 735 00:25:09.040 --> 00:25:12.320 that you can now spend profitably and outcompete everyone else 736 00:25:12.320 --> 00:25:14.960 who just wanted to bulldoze their way to 10 million 737 00:25:14.960 --> 00:25:16.560 with a lower LTV. 738 00:25:16.560 --> 00:25:19.640 And then you can go crush them on every other channel that they're on. 739 00:25:19.640 --> 00:25:21.680 And then you go back and say, hey, we're going to build a code email team. 740 00:25:21.680 --> 00:25:22.880 Hey, we're going to build a code call team. 741 00:25:22.880 --> 00:25:23.960 Hey, we're going to build a paid ad team. 742 00:25:23.960 --> 00:25:26.000 Hey, we're going to build affiliate partners and channel partners. 743 00:25:26.000 --> 00:25:28.600 And you can do that because you have so much f***ing extra profit 744 00:25:28.600 --> 00:25:29.600 for customer. 745 00:25:29.600 --> 00:25:32.000 Could you spend the time up front to fix it and make it good? 746 00:25:32.000 --> 00:25:33.040 And you'll sleep better at it. 747 00:25:33.040 --> 00:25:34.360 And you've got proof of concept. 748 00:25:34.360 --> 00:25:36.760 So you just scale the crap out of it. 749 00:25:36.760 --> 00:25:38.000 No one's ever said that on my show. 750 00:25:38.000 --> 00:25:42.080 No one's ever ever said that to me about the pause part in the middle. 751 00:25:42.080 --> 00:25:47.000 And one of the most insightful really you would have had to have already 752 00:25:47.000 --> 00:25:50.360 done something significant in your life type breakthrough thoughts 753 00:25:50.360 --> 00:25:52.120 that someone's ever shared on the show. 754 00:25:52.120 --> 00:25:54.200 And I almost want to move it to the very beginning of the show 755 00:25:54.200 --> 00:25:55.040 because it's so important. 756 00:25:55.040 --> 00:25:56.680 I hope everybody's stuck around for that. 757 00:25:56.680 --> 00:25:57.760 I got one last question for you. 758 00:25:57.760 --> 00:25:59.440 First, I like you a lot. 759 00:25:59.440 --> 00:26:00.840 I respect you a lot. 760 00:26:00.840 --> 00:26:01.840 Tell us where they can find you. 761 00:26:01.840 --> 00:26:04.000 But then I got a better question for you at the end. 762 00:26:04.000 --> 00:26:05.800 The game podcast, Alex Ramose. 763 00:26:05.800 --> 00:26:07.680 That's if you like podcasts, that's the easiest thing. 764 00:26:07.680 --> 00:26:09.600 If you like videos, we're on YouTube really big. 765 00:26:09.600 --> 00:26:12.680 And if you like short stuff, if you type my name on whatever social media 766 00:26:12.680 --> 00:26:14.440 channel, you'll probably find me. 767 00:26:14.440 --> 00:26:18.040 You I told everybody this did fly by by probably the fastest show I've ever done. 768 00:26:18.040 --> 00:26:20.680 I'm really the fastest show I've ever done before. 769 00:26:20.680 --> 00:26:21.400 Curious. 770 00:26:21.400 --> 00:26:23.320 And I don't even know what you're going to answer. 771 00:26:23.320 --> 00:26:24.760 So we go all the way back here. 772 00:26:24.760 --> 00:26:30.440 This kid being raised by this dad that's pretty demanding, dude. 773 00:26:30.440 --> 00:26:33.120 Smart dude, all these options go to Vanderbilt Crush it. 774 00:26:33.120 --> 00:26:35.400 By the way, in the middle there had a DUI, had some stuff happen. 775 00:26:35.400 --> 00:26:39.000 It wasn't really good that I read about and you've turned it around business failures 776 00:26:39.000 --> 00:26:42.000 then tons of success, then multiple exits. 777 00:26:42.000 --> 00:26:45.720 And then obviously this really unique way of looking at business 778 00:26:45.720 --> 00:26:47.920 that's accurate, by the way. 779 00:26:47.920 --> 00:26:50.080 But you worked really, really hard. 780 00:26:50.080 --> 00:26:52.320 And you've sacrificed a lot of things in your life. 781 00:26:52.360 --> 00:26:53.760 You're still very young. 782 00:26:53.760 --> 00:26:55.120 But I grab you at 32. 783 00:26:55.120 --> 00:26:56.440 I'm curious if it was worth it. 784 00:26:56.440 --> 00:26:57.680 I don't need to be honest. 785 00:26:57.680 --> 00:26:59.400 Like if you had to do it again, would you do all this stuff again? 786 00:26:59.400 --> 00:27:00.800 Or would you have done something differently? 787 00:27:00.800 --> 00:27:03.200 If you could go back those 10 years, give up all your money. 788 00:27:03.200 --> 00:27:04.720 Like, okay, you're back, you're 22 again. 789 00:27:04.720 --> 00:27:06.320 You're just getting out of college. 790 00:27:06.320 --> 00:27:09.040 So I took all your money from you with what's our proposition earlier. 791 00:27:09.040 --> 00:27:10.840 Would you go do all of this again? 792 00:27:10.840 --> 00:27:12.120 Or would you live a different life? 793 00:27:12.120 --> 00:27:13.920 I wouldn't do all of this again. 794 00:27:13.920 --> 00:27:15.560 I would do all of this better. 795 00:27:15.560 --> 00:27:17.080 But I would do, I would live this life. 796 00:27:17.080 --> 00:27:19.400 I mean, the moment you asked the question, I was like, 797 00:27:19.400 --> 00:27:23.480 the guest was in my throat just waiting to free to feed the question. 798 00:27:23.480 --> 00:27:31.480 But like, I'll be a little crude balls to bones through and through. 799 00:27:31.480 --> 00:27:34.240 Like, this is what I love. 800 00:27:34.240 --> 00:27:38.360 It's my, it's what I love. 801 00:27:38.360 --> 00:27:40.080 I mean, I draw pictures about business. 802 00:27:40.080 --> 00:27:42.240 I write books about business, I make videos about business. 803 00:27:42.240 --> 00:27:44.000 I do business every day. 804 00:27:44.000 --> 00:27:48.040 If somebody doesn't have a business, it's difficult for me to be friends with them. 805 00:27:48.040 --> 00:27:50.400 Because we have so little shared context, not because it's their fault, 806 00:27:50.400 --> 00:27:53.240 but because I have nothing else that I do in my life. 807 00:27:53.240 --> 00:27:54.560 And so they want to talk about biking. 808 00:27:54.560 --> 00:27:56.440 And I'm like, that sounds cool for you. 809 00:27:56.440 --> 00:27:58.160 I have no interest. 810 00:27:58.160 --> 00:27:59.160 And people are like, what's your hobby? 811 00:27:59.160 --> 00:28:00.800 And I'm like, I don't have any. 812 00:28:00.800 --> 00:28:02.560 And I'm cool with that. 813 00:28:02.560 --> 00:28:07.280 And so I took me a while to just accept that that's okay. 814 00:28:07.280 --> 00:28:09.840 And so I 100% would do what I do. 815 00:28:09.840 --> 00:28:11.320 I love what I do. 816 00:28:11.320 --> 00:28:13.120 This is the most fun thing in the entire world. 817 00:28:13.120 --> 00:28:18.120 And the deeper I get in business, the more I want to live a long time. 818 00:28:18.120 --> 00:28:20.680 And that was something that I didn't have earlier on in my life. 819 00:28:20.680 --> 00:28:26.680 And so I just, there's just so much I want to do that I just, I just, I, that's, you 820 00:28:26.680 --> 00:28:28.200 know, it's like I crammed a lot in 10 years. 821 00:28:28.200 --> 00:28:29.880 I'm like, I just, there's so much cool stuff. 822 00:28:29.880 --> 00:28:34.320 And I, I want to do it all, you know, as much within this world that, you know, that 823 00:28:34.320 --> 00:28:35.320 we have. 824 00:28:35.320 --> 00:28:37.040 I can't wait to watch you do it. 825 00:28:37.040 --> 00:28:38.040 You're outstanding, brother. 826 00:28:38.040 --> 00:28:39.040 I think so. 827 00:28:39.040 --> 00:28:40.200 You're outstanding. 828 00:28:40.200 --> 00:28:42.360 I really enjoyed today, a great deal.