REAL AF with Andy Frisella - 485. Part 1 - The Process Of Building An Empire Ft. Alex Hormozi

00:00:00.000 what is up guys it's andy priscilla and this is the show for the realists say goodbye to the lies

00:00:21.000 the fakeness and delusions of modern society and welcome to motherfucking reality guys

00:00:25.060 today we have a full length episode and it is extra girthy extra girthy um but before i tell

00:00:33.340 you who my amazing guest is who i've been looking forward to having on the show for a very long time

00:00:37.880 is uh if this is your first time listening there's a little housekeeping you need to understand about

00:00:43.040 how we do things here um we're not just a conversation podcast we're gonna you're gonna

00:00:48.160 hear that today but we have many different formats within the format and one of them is full length

00:00:52.720 like you're gonna get today uh but then there's also q and af and that's a question and answer

00:00:57.080 format and uh you ask the questions we answer them on the show and you could submit those questions

00:01:02.460 a couple different ways the first way is guys email those questions into ask andy at andy for

00:01:07.820 seller.com and the second way is now that we're on youtube i know most of you guys have been used to

00:01:12.300 listening to us on the audio platforms but we are on youtube now with the entire episode so if you go

00:01:16.920 on youtube and you go to the q and af episodes you could drop your questions in the comment section

00:01:21.660 we'll pick some from there as well other types of shows that we do we do this one called cti that

00:01:26.600 stands for cruise the internet that is where we talk about society culture what's going on in the

00:01:30.900 world um we talk about you know we pull up three headlines we talk about what may be true what may

00:01:36.740 not be true we speculate uh we tell some jokes usually they're inappropriate and if you don't have a sense

00:01:41.480 of humor you won't like the fucking show so don't listen to that one um the reason we talk about 0.98

00:01:46.460 culture and society on an entrepreneurial show is because you have to understand your environment

00:01:51.460 to be effective inside the environment so if we don't talk about these things and these tyrants

00:01:55.900 run away with our freedom we won't be able to make money and be ballers it's as simple as that

00:02:00.140 all right uh other times you tune in we have real talk real talk is five to 20 minutes of me just

00:02:05.300 giving you some real talk most of the clips you see of me on the internet where i look sound like an

00:02:09.660 angry fucking weirdo and i'm like screaming and shit that comes from real talk uh i'm not like that 0.97

00:02:14.840 all the time just most of the time uh and then we have a fee for the show okay and the fee is not

00:02:21.260 monetary i don't ask you to buy things one of the things you'll notice about this show is unlike

00:02:25.440 other shows um is that i don't run ads on the show okay i don't take money from other companies to talk

00:02:31.580 about their shit that i don't use i don't need their money because i am independently wealthy 0.91

00:02:35.640 because of the lessons that i teach you on the show so in exchange for the lessons i teach you on

00:02:41.880 the show that have made me independently wealthy that i don't have to take advertisements all i do is

00:02:45.700 ask that you share the show when we do a good job so it's value exchange if i do good tell people if

00:02:50.900 if if we do good tell people uh if we don't do good please don't tell anybody

00:02:55.380 uh but guys that's that's how the show works so uh without further delay i've been telling you guys

00:03:05.980 we had a big guest coming on the show and this is one of my favorite guests that we've had on the

00:03:11.340 show we haven't done the show yet um but this is a guy that i've become friendly with and we've

00:03:15.480 become friends over i don't know what the last year or so uh very very very brilliant man somebody

00:03:21.140 who's been very successful in business and life and somebody that i'm excited to have a conversation

00:03:25.120 with please welcome to the show mr alex hormozzi thank you so much what's up brother yeah man it's

00:03:31.880 great to see you dude i'm pumped to be here yeah hopefully i can live up to the intro that's always

00:03:36.040 the goal look dude uh all you got to do is be you that's it you know out of all the people and

00:03:41.060 this is real shit like all the people that i have watched on the internet over the last decade or so

00:03:47.640 there's only a few of them that i'm really like okay this guy really really does understand how to

00:03:52.160 build a business you know there's a lot of coaches there's a lot of pseudo you know knowledge out there

00:03:58.180 uh there's there's a lot of hucksters there's a lot of people who you know are great coaches not

00:04:03.060 great operators um but dude you know when i watch your content there's a few other guys out there

00:04:08.500 and some of them really don't have a big of followings uh it's very apparent that you know

00:04:12.920 you're very very very intelligent when it comes to business and and dude i'm just excited to have a

00:04:17.420 conversation about it so i'm stoked yeah so what are we gonna talk about dude let's start with your

00:04:24.620 story dude like how did you like how because i you and i we've talked about all kinds of different

00:04:30.140 things via text you know we talk about chat gtp we talk about gpt we talked about uh you know

00:04:35.540 different things going on in business but you know i've never really got to sit down and talk

00:04:39.420 to you about your story so this is a perfect time to talk about it it was wild um it's been it's been

00:04:45.840 uh well i'll i'll i'll give the quick the tldr um i was a gym owner in southern california so i had a

00:04:55.740 consulting job i did defense contracting space cyber intelligence um through a 700 booze allen uh

00:05:01.660 hated that job actually uh hated it so much that i ended up quitting and driving across the country

00:05:06.940 not telling anyone until i was halfway there because my dad was going to talk me out of it

00:05:10.060 and be like hey you don't need to you know like let's just follow the path that we had um and he

00:05:14.040 was doing it because he just wanted to look out for my best but i didn't want to do that and so i

00:05:17.440 showed up in california with no plan showed up at a gym owner's gym and was like hey man can you

00:05:21.900 teach me he was like i don't know like why are you here i got shit to do yeah yeah slept at his 0.94

00:05:27.000 place how old were you at this time i was 22 okay yeah so i i graduated a year early um from a

00:05:33.760 school in tennessee um and then that that way i kind of got to jump start my career i saved my extra

00:05:38.360 you know money and then i had about 50 000 saved up when i was 22 uh to start a business and i want

00:05:43.100 to start a gym and so that was because i was into fitness and i hated everything else and so that was

00:05:47.520 like i guess i'll just do this um from there i spent 12 weeks with that guy he started work at 4 a.m

00:05:54.320 and work until 4 p.m four to four was his shift and so i did that and then i also stay at the gym

00:05:58.560 after that learned a little bit of the ropes started gym in huntington beach didn't have 0.91

00:06:02.280 enough money for both slept on the floor there because you know could only pay one rent yeah i

00:06:07.380 get it yeah very similar to how i got started dude very soon and it was uh by chance i went to a

00:06:13.560 weekend workshop two weeks before i started the gym and it was this guy who's teaching something

00:06:19.340 called facebook ads this is 2013 so i was like i mean probably like stroke of luck crazy you know

00:06:26.100 coincidence and i was able to run facebook ads to get like my first 25 members uh in the gym and we

00:06:32.880 were able to grow by 5 000 a month every month for the first you know seven or eight months um and at

00:06:37.340 that point i you know started bringing people in and getting a manager and all that stuff and then

00:06:41.200 it pretty much started working out um opened a new location every six months after that

00:06:46.200 until i had uh five locations at that point i met layla and uh i i got asked to speak at this event

00:06:53.740 and like i was not in that world you know what i mean i was like i'm a gym owner he's like no i want

00:06:58.560 you to talk about how you're marketing for like brick and mortar and i was like all right man dude so i

00:07:04.760 went up there and i was like this is what i do this is how so i was able to open all my gyms at full

00:07:08.800 capacity on the first day that was kind of like the unique thing so i'll what i would do is i would sign

00:07:14.460 the lease put the deposit down and then i'd start running ads immediately and it would take me 30

00:07:19.140 days to open the gym and so like i would spend uh 300 bucks a day ish and we were getting like 30 to

00:07:25.380 one back on our ad spend so we're making 100 grand in our first month and so like you know as the cash

00:07:30.640 is coming in i'm like buying flooring and then i'm like painting the walls and like getting the

00:07:34.220 equipment and like i had this whole order because i knew that like by the time the equipment got there

00:07:37.600 like i had to have the paint like you know all that kind of stuff and so we'd open at full capacity

00:07:41.640 only using the cash that i got hold on that's those stories are the fucking ones that people love 0.90

00:07:46.720 like you we got plenty of time we got plenty of time just because i talk fast in the intro like

00:07:52.540 like dude i love that so you pre you so you pre-sold the memberships yeah and then use the money

00:07:58.540 to actually build the gym out so what i would do is we would do these challenges we do these six week

00:08:03.340 weight loss challenges um and the whole shtick was that it was free if they lost the weight

00:08:07.600 and so people would like basically bet on themselves they'd bet 500 600 bucks that they

00:08:11.900 would hit i think i had i think it was 10 body i'd change the challenge but it was like 10 of your

00:08:17.140 body weight so if you were 200 you lose 20 pounds etc um and they had six weeks to do it and we'd you

00:08:22.940 know they'd work out as many times they wanted uh we'd give meal plans grocery list fruit preparation

00:08:26.920 instructions eating out guides all that kind of stuff um and so every week i'd sign up you know 25 30

00:08:32.880 40 people uh and this was all one-on-one consultation so like i would do 20 to 25

00:08:37.380 consults a day every day and i did that for years um even when i had my own gyms like i still sold

00:08:42.760 better because i just had more reps than the other guys yeah so my guys would like set appointments for

00:08:46.660 me at so i'd like every day i'd go they had set like three days worth of appointments so it's just

00:08:51.880 like stack stack and so you just get you know just get the reps in and that was i was referred to

00:08:56.680 as like my rocky cut scene like no one knew where i was and i was just hitting the meat in the basement

00:09:00.680 and just just getting those repetitions in and um so anyways i'd put the just have five thousand

00:09:06.480 dollars to put down for the for the lease and just enough money to start the ads and for us we'd get

00:09:11.400 ads uh we get leads for like five bucks and we'd sell one out of four leads into a six hundred dollar

00:09:18.460 thing so it's like it would cost me 20 25 bucks to get a customer and i'd make six hundred dollars

00:09:23.020 up front yeah and then two days later i'd sell them supplements uh you know 200 300 dollars for the

00:09:28.320 supplements to go with the program that they just bought and then the shtick was three three weeks

00:09:33.100 in of their six weeks i'd be like hey dorothy you know uh let's be honest you have more than 20 pounds 0.97

00:09:39.960 to lose uh what's your plan after this you know things over she's like well you know what's the

00:09:45.780 ultimate goal she's like i just want to get to my high school weight i was like okay so you just so

00:09:49.000 we're clear you know that in the next 21 days we're not going to do that right and she's like no i

00:09:52.680 understand that i was like okay so but long term's the goal she'd say yes and i was like all right

00:09:57.940 then you won the challenge and she was like what do you mean i was like because you realize it's not

00:10:01.320 about six weeks and so i was like so this is what i want to do for you you have the 600 bucks i was

00:10:06.120 like i want to credit towards the goal that you really have which is the high school weight i was

00:10:09.360 like i'm just gonna put towards the year and that way like you win today you're in you're one of us

00:10:14.460 here's the t-shirt you know like you're part of the family now um and so i just set my membership

00:10:19.100 at 50 bucks higher than it was supposed than i i usually ended up selling it for uh so it was like 250 a

00:10:24.420 month got dropped down to 200 months because i take the 600 divided by 12 and said that credit

00:10:28.260 them 50 bucks a month off and just like that we were able to go 600 you know 250 and subs and then

00:10:34.600 i'd be able to get the membership on the first month compare that to the business model where

00:10:38.540 someone's going like three month up front and then converts one out of three into a 99 a month

00:10:44.600 membership yeah my ability to convert cash so much faster uh was front loaded so i could outspend

00:10:50.400 everybody in my market which is also why i could launch them all for no money out of pocket because

00:10:54.300 every day i'd spend 100 i get 2 000 back and so that cash is what allowed me to open so quickly

00:10:59.800 without having capital of my own as a young guy and that's how i was able to scale that's awesome

00:11:04.100 dude how how the hell did you think of that like like how like what it's a long so i'll tell you the 0.51

00:11:10.680 story so that gym owner that i that i uh went out to right so i googled like successful i mean you

00:11:16.520 know because whatever it was 10 11 12 years ago google like successful gym owner and this guy had

00:11:20.820 this like crappy html site and it said seven figure sam all right and i was like cool seven

00:11:27.380 figure sam i'm gonna go talk to this guy and so i get to uh california and he's got like a little

00:11:32.880 group of gym owners that like all just share their you know share their stuff it was just gym owners

00:11:37.080 and i didn't have a gym at the time and i was like is it even okay for me to be here

00:11:42.160 um he was like yeah sure and so that way i actually got to learn all the stuff that they

00:11:47.040 had done wrong before i started my first gym so it's like oh don't go too small because of this

00:11:50.360 oh don't go too big because the brand like hey keep it under this per square foot like all these

00:11:53.460 things that like i would have no idea like i would have known that and so um one guy was there and

00:11:59.600 was like hey i got this uh this promotion that's he was in wilmington so like south of the way um he

00:12:04.640 was like i've got this promotion that's like doing really well and so he was doing this like

00:12:07.820 eight week thing and what happened is some rich guy some rich entrepreneur apparently was like

00:12:11.860 i won't pay for it but he's like but if i hit my goal you give me my money back and you can use

00:12:17.440 my testimonial and i'll like promote the shit out of you and he's like and the thing is is like he 0.89

00:12:21.500 did that and like all these other people like yeah i want that thing and so he was doing an eight week

00:12:25.340 thing and so sam started doing it at his place for his personal training side and i was like

00:12:30.800 apprenticing under sam um and the thing is like i just saw like the ratio of how many we could sell

00:12:36.380 versus how many trainers we need i was like this doesn't like make sense and i was like what if we put it in

00:12:40.020 the boot camp because then we just put as many people as we want in there uh to get people going

00:12:44.040 he's like you think people pay 500 bucks i was like they care about the weight they don't care

00:12:46.980 about like what the the experience was um and so uh i ran an ad with that um first was technically

00:12:54.040 for sam spot i ran the ad before we even knew that facebook ads even worked so the first ad i ran

00:12:59.540 for sam uh and i think i can't remember what we spent but we made money on it uh and uh it was like

00:13:05.960 holy shit this works and so i sold the first 10 or 12 people or whatever at his gym and then that's 0.59

00:13:11.360 what i when i went to go plant my huntington beach spot that's awesome but it was like an iterative

00:13:15.600 like he did the first guy did eight weeks and it was like it was all about the testimonial thing

00:13:20.560 uh sam cut it to six weeks and it was all about personal training and then i added in like a nutrition

00:13:27.340 template thing so i templated so it was like faster to move through people and made it one to many

00:13:31.680 rather than one-on-one and that was kind of like the and added facebook ads to it so like that's

00:13:36.120 what when those when those came together is when it just like blew up that's awesome man dude you

00:13:41.300 said something in there that really caught my attention it's something that we talk about on

00:13:44.520 the show a lot especially on the q a the q a f episodes a lot of these young dudes uh young girls

00:13:50.720 too they want to learn how to get good at selling and they want to learn how to how to sell and you

00:13:54.820 said the answer in there reps reps and uh i just wanted to point that out like

00:14:01.680 you know you guys ask that all the time like how do i learn to become an effective salesperson which

00:14:06.280 by the way is the most effective skill that you could ever have you could ever possess ever ever

00:14:10.740 ever if you can if you can learn how to how to sell and you can learn how to manage people there's

00:14:15.500 always going to be a demand for your skill set and what alex said in there with his reps i'm assuming

00:14:20.900 that's this is where you really want like you said hitting we you know pounding the meat yeah you

00:14:26.600 know what i'm saying i don't like that we got we got a girthy meat pounding going on yeah i checked

00:14:31.000 the um crm like because i still had access to it right when i i sold my gyms three or four years

00:14:36.100 later um i had 4 000 like confirmed kills um so like closes not consults and like that just that's a

00:14:43.620 lot of sales yeah it's a lot of conversations face to face every single one of them one-on-one

00:14:48.780 just like i tell the people i'm like dude get get yourself in a good retail job get yourself in a

00:14:53.560 retail job where you can like people i don't want to work retail well fuck you're an idiot them dude 0.99

00:14:57.840 because like you can learn what you're learning in a retail operation is so much more valuable than

00:15:02.880 what you're actually getting paid most of the time they're working for you like your employer

00:15:08.400 like especially if you're newer your employer is working for you and also happens to be paying you

00:15:13.460 because like most people come in with basically no skills and so then like on the job that person

00:15:17.940 it gives you an education and pays you to learn which is why like nowadays it makes almost so much

00:15:22.680 more sense to just skip straight to just the on-the-job education whatever industry you want

00:15:26.400 to be in because you'll learn about the industry at a broad spectrum but then you also learn more

00:15:30.060 tactical sales but to your point about like selling being the most valuable skill if you just like

00:15:34.300 boil it down to first principles of okay if i want to do something you can either learn how to do

00:15:38.780 everything or you can convince somebody else to do that thing for you who's awesome and if you can

00:15:44.060 convince somebody else to do every other thing that is required to do in the business then like you

00:15:47.200 can have an amazing business and only know how to do one thing which is get other people to do

00:15:49.880 that's right leadership and sales if you like okay well what's leadership well it's being able to

00:15:54.340 influence other people to do the thing you want them to do sales is pretty much the same thing yeah

00:15:58.240 one's more transactional like depending on the type you know type of sale but yes i 100 agree in

00:16:03.260 every way dude what i found too man is that like if you truly want to be an effective leader and

00:16:08.080 salesperson the best thing that you can do to get these people to do what it is that you need them to

00:16:12.720 do as the manager or the ceo or the operator is to make them understand how it's in their best

00:16:17.820 interest to do those things and a lot of people don't operate their business that way i found that

00:16:21.920 out after coaching uh an arte group for so long with ed you know i found and you know the point of the

00:16:28.380 group is that people need to learn things right i'm not knocking anybody but a lot of people don't

00:16:33.480 understand that like your mission your purpose your your values of your company really come from you

00:16:41.280 showing the people that work for you how their lives are going to benefit by actually listening to

00:16:47.140 what it is that you ask them to do and uh a lot of people bail out on that dude they come in they

00:16:51.740 want to run a business they want to put their feet up on the on the they want to go to the lake on

00:16:55.420 thursday and come back on tuesday and they want they think that they're running a company you guys

00:16:59.200 ain't running shit you're running yourself out of business and um i don't know man it's just 0.77

00:17:04.500 interesting the whole dynamic of small business is super interesting to me dude it's where i really it's

00:17:10.160 what i really like like running bigger companies is and and like it's it's fun i love coming here

00:17:16.780 i love being around everybody here i love i love what we do i love what we do for the people that

00:17:21.160 that are customers or companies i love all that but man there's something about that like that the

00:17:27.120 beginning like where you're really hustling and you're really learning and and like i do miss that a

00:17:31.640 lot of times that is exactly the i mean that what you just expressed is the the reason that we

00:17:37.460 decided to go with acquisition.com which we can get to later yeah because we can pick companies

00:17:42.180 up right at that like you know one to ten million in profit size and like they're still figuring out

00:17:47.520 some of that stuff and so like there's a you know there's a chain of teeth wetting studios that we're

00:17:51.700 looking at and like in the diligence process like man i was like your physical product sales are low

00:17:55.460 and they're like yeah we're still struggling with that i was like i fucking promise that i know 0.92

00:17:59.540 like i will figure out how to get everybody to leave with a kit like i promise and like when i was

00:18:04.600 figured out so we have a chain of 38 i think photography studios um it was our first personal

00:18:09.820 investment leila and i made outside of like the normal you know real estate and stocks and stuff

00:18:13.360 um and now when we spent like six months trying to figure out a way to just like re-engineer the

00:18:19.280 sales process and ended up just massively increasing the ticket size and the take rates at the same time

00:18:23.360 but anyways all of that comes from like a thousand tiny conversations that you notice someone pause

00:18:29.560 or you're like i said that they didn't hear it the right way how can i rephrase this or is a way

00:18:33.420 if i put this first does that influence how they see the rest of the conversation um but like you

00:18:38.760 can't do that without the reps no and dude it has to be like this it cannot be through a text or through

00:18:44.300 through through i mean now it probably can be but when you're learning you know for for you guys who

00:18:50.980 are trying to learn these skill sets dude the acuity that you have to have to read someone can only

00:18:57.560 come from that scenario there's no there's no coach that can teach you that door knocking cold calling

00:19:03.620 and and or retail where you yeah you have 20 30 people a day walking at least yeah and when you

00:19:09.540 do that it's like that's the it's the tiny little pauses where someone says something and you have to

00:19:15.320 like if you have to if you have to be reminded you don't know it well enough so like it's a sales

00:19:22.180 guy like if you have to think about what you're going to say next it's kind of like wrestlers when

00:19:26.200 they're on the mat like you sure don't you know what you're going to be shooting to counter something

00:19:29.520 yeah that someone else is like you're not like okay they just pulled my wrist so now and it's

00:19:33.400 like you're fucked already yeah you're done yeah yeah you wrestle i did yeah yeah not that great 0.98

00:19:39.320 wrestling's a wrestling has been an awesome awesome life teacher for me yeah awesome talk about reps

00:19:47.340 yeah like okay yeah do a single leg takedown and do it a hundred times every day walk out

00:19:51.680 walk just just walk out to a match where everybody's watching you and it's just you

00:19:57.420 and one other person and there's no hiding whatsoever of any sort like it's a totally

00:20:01.920 different kind of thing but that's a whole nother conversation but dude so when we're talking about

00:20:06.940 um so you got the gyms open yeah and because i do want to talk about where you are now and what

00:20:11.980 you do because secretly that's what i want to do so i uh i'm to the point now where i'm just like dude i

00:20:18.760 i love the creative process i love the lay of the land i love showing people um you know like like

00:20:26.280 your dental teeth whitening thing yeah right like i love like i'm like you guys are missing it here

00:20:30.680 yeah i love being able to show those kind of things and and that's but i don't want to do them yeah

00:20:35.860 i don't want to do them anymore i've been doing them for 24 years yeah um i might do it for 25 just

00:20:42.200 to say 25 but it's uh it's cool what you're doing so so where'd you go so you got the gyms going yeah

00:20:48.660 now what happens so got the gyms going i spoke at that conference right and i talk about this hey

00:20:53.780 this is what i'm doing i showed everything like i didn't i was just like that's my ad that's my

00:20:57.820 landing page i was like here's my phone script here's like i just showed i didn't know how

00:21:01.700 presentations work that's like it sounds ridiculous i got off the stage and to this day even with all

00:21:07.280 the media and press i have never been more bombarded in my life like there was like a three

00:21:11.880 rows deep circle around me and like for the next two days like guys were like peeing at the urinal

00:21:16.760 next to me like hey man like the whole thing for context i got 150 business cards just from like

00:21:23.300 the stage to the bathroom like it was insane and i got back and i was like man and they were like what

00:21:31.120 can i buy from you i was like nothing i was like i own five gyms i was like they're like how do i do

00:21:35.840 it i was like that that thing that's how i do it and so what happened is or sorry god no i'm just

00:21:41.260 saying like i'm i'm sitting here and i'm just like reflecting on all of the shit you're telling me 0.76

00:21:46.260 and how parallel it is to my story dude it's like so parallel like it's so parallel that's how i got

00:21:53.360 into speaking too that was the exact same thing that happened to me i got asked to talk about our

00:21:57.360 retail success because we had supplement super stores which we still have and i got asked to

00:22:01.940 come talk about it and show how we were how we were able to grow it and it's the fucking exact same 0.88

00:22:06.980 story supplements fitness i lived in the back of that first store bro like it's just crazy hearing it

00:22:13.380 i just went it's it's cool it's probably already see the world in a similar way yeah yeah definitely

00:22:17.740 definitely well that's funny because you guys don't know so alex and i we know each other but

00:22:22.900 like we've never actually met in person we text and we talk about things that are important that

00:22:27.660 are going on like hey what do you think of this or that like when something's truly big that's

00:22:31.720 happening like when chat gpt came out we him and i were talking because i i wanted to get your

00:22:36.520 take on it because like it was so so huge to think about so when these big huge things i like to get

00:22:41.680 alex's brain on it because alex has a nice brain all right but uh it's girthy yeah that's right

00:22:46.740 so uh you know uh smart people do that with people that are smart you know and so but we haven't got

00:22:55.640 to sit down and talk about the actual story but what was funny was this was probably just like what

00:23:00.060 in november or whatever when it started in december and he we started talking i'm like dude you sold

00:23:05.060 supplements didn't you and he's like yeah and i'm like i could tell because it was so like the

00:23:10.160 thinking like we were talking we were talking about this before the show actually aired like

00:23:13.860 how you have to think about product that you're going to sell to someone that they don't actually

00:23:20.460 want but need is a completely different mind process than selling it something that they want

00:23:26.660 like bro if i was selling shit that people want like i would be worth a hundred billion fucking dollars 0.97

00:23:31.680 like but i sell people i all the shit i sell is shit that people they need not want yeah and it's 0.97

00:23:38.260 just a totally different game anyway i didn't want to interrupt your story i just i'm sitting

00:23:41.880 here thinking there's a lot of parallels this is the same story how how old are you 33 okay dude

00:23:47.500 we're i'm 10 years older than you that's awesome yeah maybe i'll be here in 10 years now you you're

00:23:53.020 fucking doing it anyway sorry so uh so this guy reaches his arm through and he's like here's my 0.92

00:23:58.960 credit card he said run it for five thousand dollars tell me what i get later and i was like

00:24:02.660 what like what i didn't like i don't i don't even i don't do anything i'm a gym owner right

00:24:07.560 so anyways mind you i'm not that rich and so like you know every all the money i had would open new

00:24:12.560 locations etc etc and so i get back home i put all the business cards into an excel sheet

00:24:17.080 and i started hitting people back up because that's you know i was like hey thanks again you

00:24:20.600 know whatever and so this i had the guy's credit card i was like i called him up i was like do you

00:24:24.340 really want me to run this for five grand i was like because i will and he was like yeah run it i was

00:24:29.940 like okay so i swiped it and i'm still on the phone with him it goes through he's like all right what

00:24:32.740 do i get and i was like i don't know yet i was like but i promise i'll make you more than five

00:24:38.140 grand yeah that was what i said yeah and so he's like well you know what i've got a gym opening up

00:24:42.100 in dc uh why don't you fly out and just do your launch thing and i was like okay i'll do that and

00:24:48.040 i was like how about this i'll spend all the money on the launch and i'll get to keep all the

00:24:52.920 upfront sales but then you get all the customers i sell for free so like after the six weeks is over

00:24:57.340 you convert them and i'll show you how to convert them and i'll give you all my plans and all the

00:25:00.500 stuff and you can put your logo on it right it's free customers for him yeah and so um as soon as

00:25:06.080 i knew i was flying out there i was like okay well if i'm gonna be there let me see what else is going

00:25:09.640 on and so this is like unfortunate but my mom got really sick at the same time and she was in

00:25:15.640 baltimore so like they're right next to each other and so i was like shit so i actually had to go 0.71

00:25:20.120 there early and while i was there i only had like a couple hours a day of visiting hours

00:25:22.940 and so i was like losing my mind just like trying to stay busy i was like i have nothing to do

00:25:27.880 and so i uh reached out to a friend because i'm from baltimore and he was like hey my buddy's got

00:25:32.760 a gym and he's sucking wind like if you want to help him out so i give the guy the same pitch i was

00:25:36.780 like hey man i got nothing to do all day besides my visiting hours was like can i just work your front

00:25:40.360 desk and like sell shit and he was like sure and so uh in like 14 days or something i think i made 0.84

00:25:47.060 like 60 grand and i was like man and i don't have to do with any of the employees i was like this is

00:25:52.340 like i'm all about this and then i did the the lunch in dc and then he referred me his like father-in-law

00:25:58.320 who had a gym or something like that so i went to that gym and i did the same thing and i flew back

00:26:02.720 and had this big stack of contracts and this is just when i met layla like we had met like within 30

00:26:06.700 days of this period and uh this is like how i convinced her to quit her job uh so i stacked because

00:26:12.280 first date i proposed to layla but i proposed that she quit her job and joined me not like 0.97

00:26:17.220 proposal proposal but i did propose her on her first date like damn man you're moving 0.96

00:26:20.400 and so every single time we'd see i was like you quit yet and she was like no i just fucking met you 0.95

00:26:27.240 no i'm not quitting my job and so finally she picks me up from the airport and and she was like you're

00:26:33.240 taking me on a date it's been like we've hung out like 30 times and you've not taken me i was like yes

00:26:37.160 i did promise that and we will go on a date but can you do me one thing first she's like 0.99

00:26:41.560 i was like i got these contracts i haven't processed any of them because i'm a sales guy

00:26:45.460 and like i don't do details but like i have all the credit cards and i'll show you how to do it

00:26:48.380 and she's like fine so a zillion you know two phone books of contracts later she like rent she 1.00

00:26:54.680 was like that was like 125 000 i was like dope right and she was like is that legal and i was like

00:27:00.800 first question she asked me i'm still some dude from the internet she met at a frozen yogurt you

00:27:05.400 know like whatever and um i was like yeah it's legal and she was like all right i'm in and that was it

00:27:10.680 bro that's like uh wolf of wall street yeah yeah so i mean mind you i was 20 i think i was 26

00:27:16.500 yeah that's crazy um and that was from like a month of sales so i was like and that was just like

00:27:22.680 right in my pocket like this is i like this this is way better so um i told her i was like i want

00:27:29.320 to do this like and all started because that guy was like run five grand tell me what i get

00:27:33.640 yeah like i was like dude this makes way more money yeah he forced you into it dude he did yeah and so

00:27:37.880 um anyways i was like that's so crazy it was nuts and so i was like all right well i'm gonna go see

00:27:43.340 if i can get other gyms i still had all those numbers from the business the business events i

00:27:46.780 start calling these people up or whatever and so i start booking out like launches and she's like

00:27:51.720 all right so she flies with me so mind you now we're living together it's like 30 days she's

00:27:55.900 living with me in a motel room and i'm teaching how to like close this stuff but she was to be 0.91

00:27:59.500 fair layla was number one salesman in triangle square which is the most popular 24-hour

00:28:04.420 fitness in california so she was the number one salesman at the most like at the most

00:28:08.560 trafficked gym like she could close she got skills oh yeah yeah and that's why i pitched on the first 1.00

00:28:13.500 day when she told me that i was like if you can sell i was like we can make a shitload of money

00:28:16.640 yeah that's the first day um and so anyways we start flying out and doing these launches right and

00:28:22.600 so she gets all of her uh friends to quit her quit their job and uh this is where the story goes

00:28:28.940 so i was like okay i don't want to split my attention i've got these five gyms and um so

00:28:35.020 i sold those gyms and that first guy did the five thousand dollar thing was like hey man um i think

00:28:40.800 you're leaving a lot of money on the table because you're like literally launching these gyms and you

00:28:43.840 have no equity in these businesses he's like i'm a really good operator he's like i'll come behind you

00:28:47.980 and i'll just like staff them up so you just you fill them i'll staff them and you just do the next

00:28:53.620 one he's like we can open like two gyms a month and mind you because we didn't have to put any like

00:28:57.640 real capital down because we could we could front it or whatever right i was like all right cool

00:29:00.940 let's do it and layla was like i thought we were doing i was like oh yeah change the plans even

00:29:05.160 though you quit your job it's all good right layla's top yeah um and so so i do this we go to

00:29:12.040 this i sign this lease he's like hey i've got bad financials so like you're gonna have to

00:29:16.420 personally guarantee it i was like sure no problem he's like yeah in the build out you know you'll

00:29:19.660 that wasn't a red flag of you at that time yeah well i'll tell you yeah yeah and so

00:29:23.880 you already know where it's going well i've had a couple of those yeah so i took the cash put all

00:29:31.620 of it into the now the new account because i that's what i thought you did i sold them and

00:29:35.760 i was like oh yeah well he's he's my partner in this yeah makes sense right i already know

00:29:39.320 yep and so uh i sell my ass off at this next launch because i'm like stoked i got rid of the 0.84

00:29:45.280 five gyms that i had i felt like free like i had backpack you know like me and me and my voice

00:29:50.240 and just like go collecting credit cards so 376 people in six weeks which is a lot uh like 600

00:29:57.420 pop right and so there's cash from my sale and the cash from this to like launch this gym

00:30:02.760 wake up one morning all the cash is going i was like oh fuck i was like what um what happened here 0.87

00:30:10.400 and he was like i took my half and i was like what he was like i know you've been skimming and i was

00:30:16.720 like i put the money skim for myself like what and so i was like so i've never been accused of

00:30:23.860 stealing ever my entire life so i was like i don't even know how to handle this so i just

00:30:27.400 called a mentor and he's like print out the bank statements and just go line by line with him i was

00:30:30.900 like that sounds reasonable i'll do that yeah so i print out the bank statements and i like literally

00:30:34.960 did the whole thing went one and i drove over to where he was and as soon as i sat down with the

00:30:39.220 thing he just took he was like i don't need to see he's pushed it off the table and i was like

00:30:43.020 oh you don't actually think i stole like as soon as he didn't want to look at the numbers that was

00:30:48.480 like my oh yeah i'm taking i'm taking a shit and it's taken yeah yeah and so he um he had uh wired 0.87

00:30:56.540 the money to his uh girlfriend who lived in sweden um it was it was it was gone into oblivion and he

00:31:02.620 had been indicted for fraud two years before that um shocking here's where the here's where the

00:31:07.600 the silly alex part comes in i already knew that when i started doing this and he was like it was

00:31:12.740 just a big misunderstanding i was like i believe you bro that's what a good heart does dude i've

00:31:18.000 been burned like that same shit i would want a second i was like you're not gonna ruin for life 0.94

00:31:21.500 you made you know like it was a misunderstanding like it was a technicality but you know whatever

00:31:25.380 how how much older was this guy than you i was in his 40s yeah i was 26 right yeah dude i've

00:31:32.220 been burned so many fucking times by that same mentality that same thing it's it's but good 0.92

00:31:38.320 heart syndrome well no dude it's a second chance thing because like dude what it is is like you you

00:31:43.800 know like at least for me like i know that i'm not a perfect person and i know that i've done a lot

00:31:49.620 of things in my life where had just a certain thing gone in a different way i would have ended up

00:31:55.260 completely fucking different so when i see people who have like made a mistake or they you know 0.94

00:32:01.340 serve jail time or whatever it is and they're out and they're doing their thing i don't really hold

00:32:06.840 it against those people because i say okay well they probably learned a lesson because i would have

00:32:11.160 learned my lesson yeah and then what ends up happening is they didn't learn the lesson yeah

00:32:15.260 the scorpion and the frog yeah now you gotta learn the lesson yeah and that's like that i never i never

00:32:20.180 like it never really dawned on me that whole saying like when money meets experience experience gets

00:32:24.520 the money the money gets the experience um but like that's a good one yeah yeah i heard that and i was

00:32:30.440 like that's what that was that's exactly what that was and so now i've got this gym that has payroll

00:32:35.380 trainers lease and there's no cash and i had just sold my gyms i was like wait i don't want to operate

00:32:41.300 these gyms and he's like well you got to manage that one now i was like dude i didn't go from

00:32:46.280 five five plus one whatever you want to call this one to to go back to work in the like i felt like i

00:32:51.620 had like moved up i want to do these launches whatever and so that's crazy because dude how did that guy

00:32:58.960 not gotten greedy and how much fucking money he could have made you know what i'm saying like dude 0.92

00:33:03.740 and so what ended up happening is um i basically whatever savings i didn't put into every like the

00:33:10.680 vast majority of what i had i put into there but i couldn't sell anymore which is the only thing that

00:33:15.080 i'd ever known how to do really really well and so i was like i felt like neutered like i had like

00:33:19.560 handcuffs i was like i can't fight back because if i sell more i have to keep this gym open and i don't

00:33:23.640 want to keep this gym and so i drained my savings every week with payroll and rent and overhead because

00:33:29.180 i couldn't bring new cash in and all the things were prepayments so there was no new cash flow at

00:33:33.260 all because that's how the you know that's how the sales cycle worked right and so um

00:33:37.220 it went down and in six weeks and i had to you know tell everybody like hey i'm actually closing

00:33:44.560 they're like you just launched this gym what are you talking like it was horrible um and like i just

00:33:49.640 like layla i just gave her my checkbook and i was like you have to write the checks like i can't like

00:33:53.620 it just yeah just it crushed me you know what i mean and so um basically drained me down to um i

00:34:01.300 think i had 20 20 ish thousand dollars left so money like i had five six gyms i could i could crank

00:34:06.820 cash if i needed to like all the way down to 20 something thousand i was like and nothing coming

00:34:10.360 in no and i just given up four years of my life building the gyms and i had nothing to show for it

00:34:14.380 yeah like i had nothing for it after all that you know effort sleeping on the floor i was like for

00:34:18.460 right yeah and so uh she was like for nothing except all the skills that's right and so we're

00:34:26.860 now this is this is what's going on there's this launch that i got a guy in san diego to do and a

00:34:33.280 guy who had seen me speak at that conference or whatever hit me up he's like dude do you have any

00:34:37.380 sales work and i knew he's a pretty good sales guy i was like i got this gym in san diego he's like

00:34:41.460 that's right down the street from me and this is like a national like other gods you know what this

00:34:46.160 might actually help me out because i can like build all the shit i need to be building you go 0.76

00:34:49.360 do that thing so this was going to be my get out of jail free card we launched the gym guy crushes

00:34:56.020 it there's a hundred and something thousand in sales i was like fuck yeah and now i'm sleeping at 0.90

00:35:00.720 layla's parents house yeah this is when she her parents they're like where'd you find this dude

00:35:06.660 yeah oh from the internet he's the guy i put everything and move and live in motels with dad

00:35:11.260 he's a winner oh man this is my first yeah oh man and so it's december now right and december of 16

00:35:20.180 and so he crushes this launch but i'm like looking at my my my bank account i was like where's the

00:35:25.880 fucking deposit like tuesdays were my day tuesdays was always the big one because i got all the weekend 0.89

00:35:29.660 and then it would all it would all settle i was like where's the deposit it's like wednesday thursday

00:35:34.360 friday so so i call and friday's like hey what's going on they're like oh we're doing a standard

00:35:37.720 review of your account and i was like i've been with you guys five years like i've never had a

00:35:41.640 standard review anyways they're like just call it should be fine next week is now going into christmas

00:35:48.200 eve all right so it's christmas eve now and i'd call it a couple of times they just gave me the

00:35:52.700 runaround and i got on and i was like i am not getting off the phone until you give me the money

00:35:57.720 like i i need the money to pay the sales guy to run my business and this is the point where layla

00:36:02.760 had told all of her friends to quit their job so i have 23 000 left i owe the sales guys 22 000

00:36:09.400 in commission he needed because he had a sob story new baby blah blah blah whatever and i hadn't gotten

00:36:14.300 the money from the sales yet and so i didn't want to give myself a chance to think about it and so i

00:36:19.280 wired him 22 so i had a thousand dollars left this is the 24th christmas eve her dad's like he seems a

00:36:27.000 little stressed supposed to be a joyous event oh yeah so two days later the 26th of december is

00:36:33.760 was basically when gyms kick off the new year's sales stuff like the day after you just start

00:36:37.960 because it's this dead week where everyone's got time and they feel fat it's like you crush sales

00:36:42.540 it doesn't start january it's because everybody's gonna do it yeah so they're willing to pay for it

00:36:46.360 now yeah exactly yeah yeah i'll pay today i'll start in january exactly and so uh the campaigns were

00:36:52.660 going to kick off with her six friends being the six sales guys because like big ambition alex was

00:36:56.820 like oh we're gonna go from doing one to doing six makes sense let's do that is the first real

00:37:01.480 thing we do it was 3300 a day in hotels airfare car rental ad spend etc before commissions i had a

00:37:12.100 thousand dollars left and i was starting 48 hours later because i was expecting to get the money that

00:37:17.360 i never got i also by the way never got that money still to this day never got the money um clauses

00:37:23.260 policy something they said they're gonna hold on to it for six months because it was a regular

00:37:26.640 so i was basically running my national launch thing through my local gym so like i'm processing

00:37:31.520 stuff in canada for a gym out of like they were right to do it i didn't know any better i just

00:37:36.980 thought i was like yeah you process money through the pos so like i'm running memberships at my gym

00:37:41.180 that has more memberships than like any other gym but no one's actually there anyways um and so

00:37:47.300 we do these we start these launches and we start getting like 60 80 contracts a day i have no way to

00:37:53.920 process money so i'm spending 3300 a day and i can't make money i'm just getting all these credit

00:37:58.960 cards all these contracts and i have nothing that i can do so all the way so this is like the 26th of

00:38:04.060 december all the way to january 29th i don't have a processor because at this point if you get kicked

00:38:09.460 off of a processor it's like it's like uh going to jail i remember that it's like yeah it was a big

00:38:14.360 you get a big black mark it was hard to get another one yeah because there used to only be a few

00:38:18.420 a few processors yeah yeah it was hardland if you've heard of them 13 14 yeah yeah and so and

00:38:24.060 they had all the power there wasn't any yeah and they were they didn't care either no yeah and i was

00:38:27.960 like they're like fuck you what you're gonna do yeah business owner right okay and so um yeah but 0.93

00:38:33.440 when you get big it's a different fucking tune you know now they come in here and suck dicks to get 0.99

00:38:37.760 our fucking business canada that's fine don't think i don't fucking remember assholes right just 0.99

00:38:43.060 saying because i've had to deal with the same shit it was horrible and so it's it's one of 0.77

00:38:47.840 these crazy things that as a business you forget about but like if you cannot process money

00:38:51.700 you fuck like there's nothing you can do and so anyways i talked to everybody i knew and got a porn 0.92

00:38:58.880 casino high risk whatever guy to take my take my money right so they were going to get like eight 0.96

00:39:05.160 percent processing fee and then they had a 10 reserve on top of that so like 18 of my sales went

00:39:12.240 straight 10 was held in escrow and then gets deposited six months later on a rolling basis and

00:39:16.120 then eight percent just goes to them for the risk thinker i was like whatever i need the money

00:39:19.520 so 29th i process and he's like oh by the way you only have a 50 000 limit i'm like dude i need so

00:39:25.580 much more than that he was like tough i run 50 he's like oh but by the way it's per month so like

00:39:30.640 february 1st he's like you can run another 50 so i ran 50 on january 29th 50 on february 1st and that

00:39:37.180 was the hundred for the thirty three hundred dollars a day that i owed and i my credit card was at zero

00:39:41.720 still was broke but i was at zero and then got two three more processors got them going and then

00:39:48.240 all of a sudden we're at like we did like 170 or 180 that next month and i made like 30 000 in profit

00:39:52.520 i like looked at i was like i think we got out of it we can breathe now yeah next month comes taps me on

00:39:59.220 the shoulder one morning and i was like what's up and she was like there's a problem i was like what do

00:40:02.700 you mean there's a problem she turns her laptop towards me and there's this like waterfall of

00:40:07.320 negative transactions she just keeps scrolling as she's talking to me and i was like holy shit 0.78

00:40:11.680 and each one of these is like as big as my rent because 500 600 bucks was like my rent yeah and

00:40:15.640 there's just hundreds of them and i was like i just felt like my stomach dropped and i was like what

00:40:20.980 is this she was like oh one of the gym owners told all their members that we filled up at that gym

00:40:25.760 to refund and sign up through him for half what we charged because we held the processing risk which

00:40:31.780 was part of the issue with the first thing and so so charging you back yeah at this point

00:40:37.380 and so this is on my new high risk processor yeah i'm like fuck um and you're just starting to get 0.86

00:40:44.320 some rapport with this fucking guy right and so another guy he that guy tells another guy or 0.95

00:40:49.360 something so two gyms do this it's 150 000 in refunds that i didn't have because i just no because

00:40:56.960 you know the one guy fucking calls the other guy and says hey this is what we're doing and so 0.88

00:41:00.900 because we would sell and we'd leave and we'd go to the next gym but they had all the customers

00:41:04.440 and they built the relationship which is a flaw in the model you know what i mean like i didn't get

00:41:08.380 it yet mind you there were other gyms that were totally cool really appreciative awesome hard

00:41:11.940 working people like absolutely we did 30 something launches only two of them had that happen but like

00:41:15.560 they're a big deal those two were a big yeah they were all my profit and so i'm like how the

00:41:20.740 fuck am i gonna kind of come up with 150 grand in profit not revenue in the next 30 days 0.71

00:41:24.940 and so layla being the smart woman that she is took all of her personal training clients and 1.00

00:41:30.820 brought them online when she came with me to do this flying around the country thing

00:41:33.500 and she's making like three or four thousand a month and i was like wait tell me more about

00:41:38.100 that thing you do and she was like it's all margin yeah i don't work that hard on it and i was like

00:41:42.400 okay you're the business now i'm gonna market and sell it i'll bring the sales guys in and we're

00:41:47.900 gonna push your thing so in like two days i write a sale a whole sales letter we white label everything

00:41:52.580 to queen transformation and we start running ads and she starts closing a thousand bucks a day

00:41:56.960 all profit i was like okay if we get eight in we could do eight thousand a day minus ad spend that's

00:42:01.620 you know like i'll be at 150 ish in profit like we could do this and so we start doing that so i'm

00:42:06.500 going to call all the guys that all the gyms that were supposed to launch the next month so we had

00:42:09.800 i think eight gyms that were supposed to launch the next the next you know the next month and um

00:42:14.440 i get on the phone with the first guy i was like hey i'm getting out of business i'm selling

00:42:17.760 straight to you know straight to consumer like new chapter sorry and they didn't really pay me

00:42:21.440 anything because i made my money on the on the sales right and he was like dude i just refinanced

00:42:26.200 my house like you did this from a buddy of mine i know you can do it like i need your help

00:42:30.620 whole thing and um finally i was like dude i'm not flying out there uh and he's like fine okay can

00:42:37.820 you just show me what you did at his place so i can do it here um and i was like all right fine

00:42:44.620 he's like well how much and i remember just knowing he was broke and so i just picked a really

00:42:49.520 high number the highest number i could think of just so he'd just say no and i can just like move

00:42:53.080 on with my life because the other thing was working so i was like six thousand dollars which

00:42:56.740 i know that sounds ridiculous now but that was like yeah i get it who would pay six thousand dollars

00:43:00.760 for them right yeah and he was like 6k i was like yeah six thousand dollars u.s yeah and he was like

00:43:10.020 oh done i just remember like looking at the phone and being like you just know you made a shitty 0.61

00:43:16.240 deal bro and i was like but i still i still get goosebumps thinking about it now because i was

00:43:20.260 like holy shit six thousand and i was like oh what car do you want because like yeah it's like if you 0.63

00:43:25.480 have to think about it you don't know well enough like i was already asking for the credit card but

00:43:28.680 like my head was like what just happened yeah and so then i was like shit i got seven more guys to 0.63

00:43:33.160 call so i call the next guy and i was like well now i gotta make this damn thing right i just

00:43:36.180 promised this guy same conversation how much i was like eight grand and he was like done and i was like

00:43:40.840 next call same thing 10 grand done next thing next call same thing this is just to teach them how to

00:43:47.220 do yeah i was gonna license in my whole thing so i was like you'll use my ad so like we don't have

00:43:51.320 to test it like it's a video of me it works doing yeah like every like the whole thing and i'd already

00:43:56.880 built 80 percent of it because it was my internal training like how i train my sales like all the

00:44:00.320 sales training was done all the nutrition all the stuff was done the only thing that wasn't to them

00:44:04.840 was how i ran the ads in the landing pages that was the only thing that was like missing that i had to

00:44:08.380 build so anyways in one day i did 60 000 like cash collected selling the air and layla had been on

00:44:16.200 the phone all day closing because she's still closing the weight loss thing like she's trying 1.00

00:44:18.820 to like give us food yeah yeah and um she comes in and i was like hey babe um was that a sale and she 1.00

00:44:27.560 was like yeah i was like um i i think we might have had a change in direction and she was like what

00:44:32.100 are you talking like and mind you think about how what she's been through this is you've already

00:44:35.360 gone we're here here here here she's like she's like that's again i was like i think we're still

00:44:40.540 in the gym business it's like i think i was just doing it right and she was like what do you mean

00:44:43.920 and i like told her and she was like well is this what we're gonna do now and i was like i guess so

00:44:49.280 i was like it made a lot more money than the other thing and i was like i think we could cover all the

00:44:52.240 refunds with this and she's like well how are you gonna get gyms i was like well i have 30 something

00:44:54.920 gyms we already did the turnarounds i'll call those guys up they know it works and so that's what i did

00:44:59.460 and so i called all those guys up and uh sold almost all of them into the thing we did like 300 000 like in profit

00:45:05.080 i think it was 215 i remember it was 215 that next month and i covered all the all the chargebacks

00:45:11.140 all the refunds everything and um what happened now is that all those gyms that i did the turnaround

00:45:17.140 thing with they ran the play and the average amount of cash they collected new cash in the first 30 days

00:45:22.760 of using the system was thirty thousand dollars so concept average that was the average yeah so for

00:45:28.560 context everyone's listening the average micro gym owner like so that crossfit guy down the street he's

00:45:32.500 probably broke that you know or that boot camp owner like i'm telling you right now he's he's yeah

00:45:36.760 yeah the average owner takes home 36 000 a year net income and they work 80 hours a week plus you know

00:45:44.000 i mean like it's less than minimum it's yeah anyhow so for them this was life-changing money right and that

00:45:52.300 was the next month they could do the play again you could relaunch your gym the problem that they

00:45:55.520 started running into is they're like dude my gym's full i want to sell more people but my gym's

00:45:58.660 one i was like that's why i started a launch and go model because i had i was i had more ability i

00:46:02.400 had more firepower to sell and market than i had a square footage to sell into and so um from there

00:46:08.660 and because it's a tight-knit community for micro gym owners and then the word of math just took off like

00:46:13.280 wildfire we did 300 480 780 a million one two one five uh one eight two two three two five that was

00:46:23.680 that was per month the next like each month like i can still remember it and we finished that year

00:46:29.860 that like which was really just the half of the year because it was like january i'm still doing

00:46:34.880 the launches thing that got all fucked up so like june-ish is when that we switched the licensing 0.95

00:46:39.360 so we finished that year 6.8 with three million in profit and the next full calendar year we did

00:46:44.440 after that was 26 million top line 17 million in ebitda yeah and it was just like i you know what's

00:46:50.260 crazy you know you know what you know what i hear when i hear this and because obviously i'm thinking

00:46:56.080 like as you speak i'm thinking like dude you're talking about like the credit card processing like

00:47:01.480 we've had those issues the same all of that shit but dude the main theme i think that people need to 0.74

00:47:08.300 pull from what you just said for you guys that are out there and and you tell me what you think but

00:47:13.460 i know this my best shit comes when my back is against the fucking wall bro like like the ability 0.97

00:47:21.280 to somehow my brain i i'm sure yours must work the same way when shit is really fucking bad that's 0.95

00:47:29.000 where the brilliance comes out and uh you know sometimes it takes that pressure man sometimes it

00:47:34.340 takes that real pressure to really think and and also push us into the positions that we're meant to be

00:47:40.720 you know i that's an incredible story i mean one thing that i got a lot of you you just you just

00:47:47.160 kept showing up like you just don't fucking stop you just don't know yeah when you got to pay back 0.93

00:47:51.640 150 fucking grand like what do you do you got to show the fuck up figure it out yeah otherwise like 0.93

00:47:56.920 at that level that that ruined your life that'll ruin your whole life i'm even thinking of it from

00:48:00.640 the standpoint like i have to keep reminding myself while you're talking i'm like he's like he was

00:48:04.480 fucking 26 yeah 26 he's 26 like and thinking like you know the day and age that we're in right now in 0.87

00:48:11.600 society i can't think of another 26 year old that would fucking be able to do it i can't think of a 0.93

00:48:17.840 36 year old that you know i'm saying like i'm like listen what separates that mentality from just not

00:48:23.200 fucking quitting what what is the separator i have two cents on it yeah just for the record i do think 0.93

00:48:30.320 that there are some savages out there yeah i agree who would order it but you just don't you don't

00:48:35.360 really reckon look dude nobody knew who alex hermosi was when he was doing alex hermosi building alex

00:48:40.360 hermosi nobody fucking knew nobody knew who andy for seller was when he was learning this shit like 0.98

00:48:44.820 nobody fucking knew there's plenty of people out there right now that are fucking especially with

00:48:49.440 the technology that we have that are 19 20 21 22 23 years old that are fucking savage motherfuckers 0.99

00:48:56.700 and dude this is why i go so hard on the technology i'm like dude do not get yourself funneled into a

00:49:03.160 one-trick pony where you know because what you've done well and this is this is a very this you're the

00:49:09.080 example of the of what i try to tell these young these young bucks is like look dude you yes you know

00:49:15.560 facebook ads yes you know ecom yes you know that's a tool that's not the brand yeah and if you can

00:49:21.300 like what alex has done is leveraged his one tool into many skill sets into branding that now he's

00:49:28.260 doing and we're going to get to that now do an amazing shit with but dude uh i love hearing that 0.66

00:49:33.540 story i fucking love it because it's very very parallel dude it's very parallel man i think a lot 0.89

00:49:39.940 of times the because it depends who you talk to but sometimes people talk about how like the hard

00:49:44.480 times build you and i i'm not sure if i totally agree i think a lot of times the hard times reveal

00:49:50.060 you like i think a lot of people have that savage that's inside and they just haven't had the

00:49:55.200 environment to pull it out to pull it out yeah and then give themselves evidence that it's there

00:50:00.440 yeah but like to your point we were saying earlier um like i knew just on like whatever whatever the

00:50:08.020 level that is that like i didn't know when i would be successful but i did know that i wasn't going

00:50:14.480 to stop and like i feel like and that i don't know if that comes off the way take it the way i mean it

00:50:19.980 no i think that's the truth you know i i understand what you mean yeah i just knew i was like i i just

00:50:25.420 know that i won't stop like that i can commit to i was like i just won't stop when i was growing up

00:50:30.680 dude like when when you were growing up like as a kid were you ambitious around like making money

00:50:37.160 and stuff like entrepreneurial minded no really really but what i did want to do is make my dad

00:50:43.680 proud yeah and so that was my you know driving force and then you know i won't i won't get into the the

00:50:50.040 nitty-gritty but basically like i think you either have to have a really big carrot which everyone talks

00:50:54.820 about like finding your passion whatever and like i actually am pretty against it um and i'll i'll make

00:50:59.400 my point in a second but like i think that most people who are like in the beginning of the game

00:51:05.260 like you don't have a passion yet most of you like most people are like man i just love this one thing

00:51:10.840 but everybody has shit loads of pain like that like a lot of people that can't find passion is like can

00:51:15.960 you find pain and they're like yep i got lots of that i got anger i got shame about pain whatever it

00:51:19.600 is i'm like cool well the first rule of entrepreneurship is use what you got and so like if that's what you

00:51:25.740 got then burn that yeah like you don't need to necessarily find this passion like this beautiful

00:51:30.100 carrot because that to me that's not what got me going that's not what got me going it was the

00:51:33.800 mission of gym launch don't be broke alex that was the mission of gym like you're like what was the

00:51:37.580 big vision i was like i had no vision it was like don't fucking lose all my money like that was the 0.92

00:51:41.560 whole vision yeah and so um all that all that to say like for me i think it was like a away from

00:51:49.580 fear which is like i i was i knew like in my bones that i would rather die than go back home

00:51:55.880 like fail and then have to like basically do whatever zero option mentality zero options my

00:52:00.940 dad i i knew that like it was the hardest thing for me to leave home uh because like my dad had a

00:52:05.640 lot of influence and i say this in not a bad way like he just wanted what was best for me it's strong

00:52:09.080 middle eastern father i had no siblings basically no mom so it's just me and him and so like imagine

00:52:13.420 all of the authority power that you have in your life and all the love that you have for your

00:52:17.300 siblings which is with one person so like his opinion mattered a lot to me and he did not want

00:52:22.200 me to do this and so like i defied him to go do this gym thing and i was afraid which is why i left

00:52:28.200 and didn't tell him until i was already physically gone um which obviously he wasn't happy about and

00:52:33.420 like that kind of put a little bit of a rift in our relationship for a long time um but like i just

00:52:38.700 was like i won't i just like i don't want to prove him right i was like i'm not gonna let him be right

00:52:43.540 about this like i will just keep fucking going and i almost was happy if we didn't talk because i was 0.93

00:52:46.940 like it just gives me more time to keep doing like i didn't want to update him because i was

00:52:49.920 fucking sucking yeah yeah yeah losing money bro i agree with you dude like i think there's i i think 0.84

00:52:56.140 and this is you know i caught a lot of heat about this for a long time until people figured out

00:53:00.160 who i was but like you know when i started making content like they got recognized back in like 2015

00:53:06.820 everybody thought it was fucking insane because i would talk about like the dark side right like 0.92

00:53:12.220 dude like listen i'm gonna shove it down your fucking throat like that's what the fuck i'm gonna do 1.00

00:53:16.100 i'm gonna fucking do that forever like and i still i'm still that way like i just don't talk 0.94

00:53:21.840 about it that way anymore like now when i see someone say oh you're not you're crazy like you're 0.55

00:53:26.540 not gonna build the next nike you're gonna motherfucker just sit there and watch like you've been watching 0.92

00:53:31.680 for the last 20 fucking years give me another 20 and we'll see where the fuck i am you know i'm 0.98

00:53:35.720 saying like i i have no problem with that and i feel like the use what you got is what's gotten me

00:53:41.860 here you know now i do feel like when you get to a point of where you have to you have to manage

00:53:49.240 many humans uh hundreds of humans thousands of humans there has to be a there has to be a mission

00:53:56.700 and a purpose to motivate and and propel people in that direction like if i walked into my my meeting

00:54:03.000 and i said motherfucker we're gonna fucking crush everybody like that was it like everybody's like 0.99

00:54:08.420 yeah but like who like where right like so you know yeah and i do feel like there's a i feel like

00:54:16.100 you know there's a point to where that transitions right but but dude i totally agree and i agree with

00:54:23.080 the uh with your perspective on the on the revealing too i think there's a little of both there i think

00:54:28.080 the hard times definitely uh like dude that whole time right that did build you right bro because like

00:54:34.800 look at all the reps and all the skills you learn right that you've carried through yeah and i i bet

00:54:39.720 you know you probably learn more during that time than probably any other time um i know for me that

00:54:45.460 was true you know i learned more the first 12 or 13 years i was in business where i really got my ass beat 0.53

00:54:51.700 uh than i've learned in the last yeah you know uh 12 or 13 um but i do think that's true dude i do think

00:55:01.240 a lot of people don't put themselves in a position to ever truly know what they're actually capable of

00:55:07.880 they quit too early or or they're just too too afraid of the discomfort you know like like i think

00:55:13.820 people uh tend to look at risk the wrong way like a lot of people say well what's going to happen if i

00:55:19.520 do this and i think the question really is what's going to happen if i don't do this i've always thought

00:55:24.200 that way that's how i always think like yeah if i get a big idea in my head that i think needs to

00:55:28.800 happen and it scares me my question is never like what am i going to lose if i go after it it's

00:55:34.180 what's going to happen to me if i don't do it it's always been that way but i think there's way i think

00:55:38.840 you look at it both ways yeah you know that entire story is so it's just so relatable to what i've been

00:55:48.540 through to be where we are it's just it's fucking cool to sit here and listen to it i want to did the 0.73

00:55:53.940 guy so the the first the older gentleman that fucked you did he like whatever happened to him 0.99

00:55:59.120 nothing no he's just he's just continues to do what he did then yeah bro sometimes you you got

00:56:05.180 to chalk those things up too dude like because like you got to just chalk like because i've been

00:56:08.660 burned like that too yeah and you know real talk like i'm not gonna say what i was about to say

00:56:18.080 because like those people don't get away from me so but uh but you can't let it eat you up man

00:56:26.260 can't let it fucking eat you up you got to look at it as what i learned yeah and uh when you when 0.92

00:56:31.280 that when you fucking when you said uh 0.97

00:56:35.260 i i i i forgot what you said exactly but you said something about him not or doing this in the

00:56:45.020 past or something like i'm like oh here we go yeah you knew it of course yeah fuck it's brutal 0.94

00:56:51.940 people are brutal dude yeah they don't give a fuck especially when there's large sums of money

00:56:56.480 involved or perceive large sums of money you know and you can tell a lot about people too what they

00:57:00.780 how they judge large sums of money like that guy's a fucking idiot because had he fucking had he stuck 0.95

00:57:06.100 with alex this guy would be worth a hundred fucking million dollars right now or more yeah you know 0.78

00:57:11.100 i'm saying yeah or way more so anyway so what happened after this and to that point you know i

00:57:17.320 had a a mentor there i was just kind of like talking my life through at this point which was

00:57:21.860 like in shambles um and he was like all you do is do right by everyone he's like and then he's like

00:57:29.380 the only way you can walk out of this is by knowing that you don't have any strings in the back

00:57:33.200 of your mind of like something's going to come back he's like you have to write every one of those

00:57:36.720 refund checks you have to write you handle every charge back he's like pay every debtor or whatever

00:57:40.800 you know like every everybody you owe he's like he's like because then you'll walk out clean he's

00:57:44.940 like it's the only way you can you can get out of it and so i that's that's what we did during that

00:57:49.420 that's when i you know gave layla the checkbook and all that kind of stuff and then i had a different

00:57:53.220 mentor was actually my high school that was 15 years old but it was always just like less than that

00:57:56.380 he because i was like i i'm sure like many of us like when you're younger you're a little angrier

00:58:00.780 right yeah i just get really uh pent up about some guys who i just thought were like

00:58:04.860 douchebags to me and i was like man i can't wait to come back for our 10-year high school reunion

00:58:08.880 i was like i'm going to show them like blah blah blah and he's like no you're not yeah he's like

00:58:13.660 if you go up to somebody at a 10-year high school reunion you say like look what i've done

00:58:17.700 he's like they're gonna be like you've been thinking about me this whole time yeah he's like

00:58:21.720 he's just remember this he's like success is the only revenge that's right and like he's like and

00:58:27.000 all you do he's like is you just become bigger than them he's like so that who they are in

00:58:31.380 reference to you shrinks into irrelevance yeah he's like so you don't he's like you don't crush

00:58:34.980 them he's like you shrink them in comparison to you that's right and that was like that like

00:58:38.920 whenever i had like these hard hard situations like with that you know with that gentleman

00:58:42.520 uh like the goal was like i'll just be so big that he will become irrelevant yeah and so i that's at

00:58:48.880 least how how i handled that well dude i i feel like it's funny that you bring this up i just had

00:58:54.260 a couple buddies over at my house a couple nights ago um and dj was there and we got to talking

00:58:59.900 about this these are two dudes that are pretty successful guys and we started talking about

00:59:03.920 i have a theory about this and this is my theory it goes along with like what your mentor said to

00:59:08.800 you about doing the right thing i feel like that yes when you do the right thing i feel like

00:59:18.660 you continue to win and you continue to grow but that doesn't mean that all the things that happen

00:59:24.640 during that don't hurt and don't fucking like fuck with you and um but what i in my case in my in my 0.99

00:59:32.680 life in my experience is that even when because dude like usually what's weird from in my experience

00:59:40.300 is that it's been the people that i've done the most for or the extra things for that have come back

00:59:45.160 to fuck me and um that really hurts like that really fucks you up dude because like when you're 1.00

00:59:51.140 trying to do extra shit and you're trying to help people or you're trying to like you know give 0.85

00:59:55.180 people a hand or break or fuck you know put people on a on a faster path um nearly a hundred percent of 0.54

01:00:02.800 the time in my life it's come back in some sort of way to hurt me um whether it be you know they try

01:00:11.040 to drag my name through the mud or some bullshit right it's never them it's it's fucking always you 0.99

01:00:15.860 know everybody else which is the reason they're in the situation the need for help in the first place

01:00:20.520 this is why i've started to recognize that saving people from themselves is not actually the ethical

01:00:27.080 move the ethical move is to let them fucking learn their lesson so they don't repeat the lesson over

01:00:32.280 and over and over and um but i do i do believe that when you treat people right and you do the right

01:00:38.900 things that eventually you not eventually i believe you consistently continue to win and those people

01:00:46.660 do they shrink and they go away and you'll talk about them you know three or four years or five

01:00:52.260 or ten years or whatever it is once in a while because they'll remind you of all the good shit 0.59

01:00:57.420 that they actually taught you you know and that's something that a lot of you guys should really think

01:01:02.300 about because a lot of people that are in business you know getting your getting taken advantage of

01:01:08.820 when you have financial means is a real thing it's a real thing that happens and people target people

01:01:15.900 like that and when you have a big heart like you do and i do it's easier to be taken advantage of

01:01:23.040 because the the the pain that we have to feel to help them in a massive way is not very much

01:01:30.720 my relative right like someone needs five grand five grand doesn't hurt me dude yeah and changes their

01:01:37.340 life but those people quickly forget what the fuck you did for them and then they expect it and 0.90

01:01:43.160 that seems to be the scenario in society these days and we were just talking about i was telling

01:01:48.060 them how we were just talking about this at the house the other night about like i'm like dude you

01:01:52.560 know like for me where i'm at and this is real shit like this is i mean this i'm not really 0.66

01:01:57.860 interested anymore and going through that process of like developing a like more of a circle

01:02:07.120 like um i think you and i were the ones talking like the six month probation period right uh you

01:02:14.340 know that you know and what alex and i were talking about you tell them you're how you do it

01:02:18.820 um we'll just like you you're like we'll see how things go yeah i mean that's basically for like

01:02:25.640 six months we were talking it's like dude as long as no one like violates the trust or like

01:02:29.760 ask you for shit then they can like you could start to build a friendship yeah because dude a lot 0.63

01:02:35.060 of people come along and you know they get i guess hot and heavy with friendship very quickly

01:02:41.660 yeah and then you find out that there's a reason for it and it's not because they want to be your

01:02:46.220 friend and unfortunately this is a reality of becoming a successful person but one of the things

01:02:51.420 that that i think you should understand because a lot of you guys you know you get that first person

01:02:57.960 that takes advantage of you or that first person that does you wrong what what i think you should

01:03:03.000 realize is is a you know you just heard alex talk about how he got fucked over by multiple 0.93

01:03:08.280 different people but those things forced him to learn all of these skills and in the process of

01:03:13.780 going down this with good faith he was able to develop his sales skills he was able to develop

01:03:18.520 personal skills he was able to develop his creative thinking skills and become much more successful

01:03:23.240 because of it so whoever whatever it is you're dealing with out there remember there's a lesson in it

01:03:29.100 and uh also remember that if you continue to do good and you continue to do do right um i believe

01:03:36.640 that those people win i like all the people i know that i'm friends with that are big winners

01:03:40.860 financially they they are people who go above and beyond for people all the time and usually end up

01:03:47.580 getting fucked over a lot but they continue to do it and i believe i don't know if it's like karma or 0.81

01:03:52.180 the universe or what it is but somehow you keep being rewarded when you live like that even though it's

01:03:57.760 painful yeah it's a painful way to live because it would be easier to say fuck everybody yeah i'm 0.84

01:04:03.560 not giving you shit you know but dude i still even though i've been fucked over so many times 0.98

01:04:08.920 i still give when i see opportunities to fucking help i have so many thoughts on this yeah so like 0.89

01:04:15.700 if you think about like people understand video games so it's like if you were to make if you're

01:04:19.460 playing a video game and the the way to win the game was to be make the most successful character

01:04:23.460 right you would have probably a really character driven human being in terms of like they'd be

01:04:28.680 patient you know they'd be hard working like you think about all these traits that they would have

01:04:32.180 right they'd probably be tough emotionally like etc all right cool that's the character and that's

01:04:36.640 the person who's going to be really successful we can all probably agree on that okay how do you

01:04:40.720 create someone who's patient how do you create someone who's tough how do you create someone who

01:04:45.680 right so all of a sudden if we had to then engineer the game in order to boost those points

01:04:50.200 we'd have to get them beat up a lot so that they could get tough we'd have to make them wait a long

01:04:53.700 time so they could become patient that's right and so to the point that you made about like these

01:04:57.180 people who become really successful have these traits and also share the fact that they've been

01:05:01.100 through all this shit it's like well they got the trait from the shit and then the trait was the

01:05:07.020 ultimate output of the experience and that trait then made them super successful that they didn't

01:05:12.000 have earlier because like you know what's crazy if you really think about that and break it down

01:05:16.020 every time you do get fucked over you actually end up being the person that won 0.91

01:05:20.200 yeah on a long enough time right yeah you end like the person with the highest character wins

01:05:24.320 on the longer time horizon um but on game theory they've studied this in terms of givers givers

01:05:30.120 mattress takers and if you're familiar with that but basically a mattress somebody who's like tit for

01:05:33.520 tat you do something for me i do something for you you've got takers who just always want to take

01:05:36.880 from everybody and you've got givers right and so they like basically like adjusted how much giving

01:05:41.600 versus taking like a bot had in an exchange and just played it out and the perfect amount of give

01:05:49.120 to take is an eight out of ten giving to take ratio so like if 10 out of 10 giving is like you're a

01:05:54.800 social worker you get walked all over like you never yeah you never draw the line the one at the

01:05:59.400 one takers who just take for everybody they win really quickly and then they lose very long because

01:06:05.040 because they screw everyone over they can't create any long term they don't get the compounding

01:06:08.260 effect of doing business over and over and over again with people the and the mattress and takers

01:06:14.060 together never get the opportunities that the givers get because the givers give first

01:06:18.380 and so there's so many more doors that get open from an opportunity perspective by giving first

01:06:23.460 yeah and so like a lot like in the tech world they talk about um surface area of luck so like

01:06:28.060 people are like ah like that guy got lucky you can actively increase the surface area the likelihood

01:06:33.720 that you become lucky by giving to more people and then all of a sudden more doors are open because

01:06:37.960 you knocked first yeah it's practical right it's really practical yeah and so like

01:06:41.660 yeah i love that well you know and and it it's an incredibly painful way to go through life dude

01:06:49.220 because like i'll be real like at this point where i'm at like i was this is what i was getting at is

01:06:55.320 like i'm not interested in going through the uh i'm like the new network of and then trying to figure

01:07:03.600 out like who the fuck is who like who who's who's the giver who's the taker who's the piece of shit 0.97

01:07:09.260 like i don't want to do that anymore like i'm not interested in it and a lot of people get upset

01:07:13.900 with me because i don't really let people around me they but dude you got to understand i've been

01:07:18.780 doing this for 24 years this exact thing i've been getting my ass beat by motherfuckers that pretend 0.98

01:07:23.640 to be my friend over and over and over again and i'm just over it like now i just don't let people in

01:07:28.780 it's just what the fuck it is like if you're my friend now you're my fucking friend these dudes here 0.96

01:07:32.900 these are my fucking friends you know i'm saying like a couple dudes from the internet that i you know 0.96

01:07:36.940 you and i know who they are those are my friends outside of that it's my brother it's my dad it's

01:07:41.760 my wife and that's fucking it that's fucking it man logic has a famous clip uh where he was talking 0.93

01:07:47.600 about how he stays out of trouble and he's like here's it is real simple i don't fuck with anybody 0.95

01:07:52.500 i don't fuck with anybody and i mean it i don't fuck with anybody like throw that shit in the show 0.99

01:07:57.960 it's a great clip i actually have it i'll send it to you joe because i remember i i watch it a lot

01:08:02.840 and he's like i'm not playing i fucking stay at home i play with my dog i have my girl over and 0.99

01:08:08.020 that's fucking it i don't fuck with anybody and i'm like do you feel like it's getting i don't 0.99

01:08:12.420 say harder but you have to work harder to stay quote-unquote normal as your no no because i don't

01:08:17.940 fuck with nobody yeah i don't fuck with nobody like at all nobody so it's very simple i stay at 0.99

01:08:23.900 my house and it's just me my homies my fiancee my my little puppy i just got and i don't fuck with 0.97

01:08:29.440 nobody i don't go anywhere i don't go to parties i barely go outside like literally i really don't

01:08:34.700 go outside that much just because i don't i don't fuck with nobody that's smart dude right there 0.96

01:08:38.920 it's a smart dude and uh anyway i love that whole that whole take you have on it because that really

01:08:45.660 helps me that helps me to see that it is practical it's not just this emotional beating that i take

01:08:50.440 over and over people give the most value winning the most yeah it's just that they have to go through

01:08:54.280 and like that's why those those two theories kind of like coincide where it's like you've got the

01:08:57.960 character traits that create the success but the math behind it is like you just increase the

01:09:02.440 surface area of your luck by giving to more people yeah and in so doing let's say if you give to 10

01:09:06.580 and you get screwed by two you get let's say the matcher was going to get five of those opportunities

01:09:10.940 it's just that those extra three opportunities where you didn't get fucked that over years and years and 0.80

01:09:16.040 years that's the thing that compounds and then just makes you one stop yeah absolutely but people

01:09:20.560 are afraid of getting people are afraid of getting taken advantage of or the first time they do it

01:09:24.620 they just quit yeah exactly yeah for sure the first time it happens it's it's a price it's

01:09:28.880 it's the cost of admission yeah that's right dude it really is and also um a word of advice is that if

01:09:36.600 you are one of these people that helps a lot of people um and then you happen to get your name

01:09:41.580 drug through the mud for any reason uh don't expect them to stand up for you because they won't 0.90

01:09:46.140 uh and i've i've yet the only theory that i've been able to come up with on this because

01:09:51.560 it happens to me once in a while by once a year fucking once every two years somebody fucking 0.98

01:09:57.180 drags my name through the fucking mud and all the fucking cockroaches come out but yet none of the 0.98

01:10:02.080 fucking people that i've actually done good shit say a motherfucking word about it and i figured out 0.96

01:10:06.740 why the reason why is because they're embarrassed they needed the help in the first place and they

01:10:11.060 don't want to expose themselves for having needed the help that you actually offered them which i think

01:10:16.060 is fucked up i think that's fucked up i think if people do good shit for you and you see people 0.99

01:10:20.540 fucking dragging that person's name you should fucking tell people what the fuck they did and 0.98

01:10:24.420 be like you know you think whatever the fuck you want but this is what actually happened 0.66

01:10:27.180 and that's just my two cents on that because it gets fucking annoying but whatever dude anyway what's 0.93

01:10:33.320 next i'm just saying like dude it's like doing the right thing like when people are good to you

01:10:38.800 tell people that they're good people when people aren't good to you you know fucking it is what it is 0.97

01:10:43.500 don't do shit with them anymore but like the common decency and i think a lot of it has to do with

01:10:48.420 the internet like everybody's protective of their brand now like motherfucker most y'all don't have 0.57

01:10:53.420 a brand like you really don't you gotta fuck couple thousand followers you think you got a personal 0.91

01:10:58.060 brand nobody knows who the fuck you are and nobody cares who you are so like dude do the right thing 0.90

01:11:02.960 and actually stick up for people or tell people the truth or this or that and the reality is those

01:11:07.260 people will continue to look out for you like it's it's very simple and most people will also forget

01:11:12.080 like let's say somebody got came out of the woodwork and was like no man andy helped me out when i really

01:11:16.080 needed it yeah andy will remember everyone else will forget about the instance anyways yeah but

01:11:22.960 you get like it's like the evening the score like i don't like to owe people shit yeah i don't either 0.87

01:11:27.640 right yeah i don't owe motherfucker anything there is not a motherfucker listening to this fucking show 0.99

01:11:32.620 there is not a motherfucker on this planet that come to me right now and say i owe them a shit

01:11:36.880 a fucking anything no you had the one guy who said you uh he said you uh he gave you a what like 0.96

01:11:44.420 60 grand or something into the lobby you remember that guy oh fuck yeah that's different oh dude 0.84

01:11:49.540 yeah i had a guy show up here who uh and by the way i felt bad for him i did i felt bad for him too

01:11:55.500 uh hey dumbasses uh realize that i'm not soliciting you for fucking bitcoin or i don't even do i don't 0.99

01:12:04.720 even do this shit it was bad i own real companies we're real employees and we do real shit in real 0.96

01:12:09.780 life like i will never solicit an investment from you you will never get a dm from me asking you to

01:12:16.000 fucking go in on this deal i don't that's not what i do we had this guy this poor guy dude 0.94

01:12:21.240 and he he dude it it made me feel terrible yeah he shows up here one day dude and he's like

01:12:27.580 yeah man like somebody pretended he knew that at this point like somebody scammed him and he's like

01:12:32.360 somebody pretended to be you and took 80 grand from me bro it's all i fucking had yeah and like i 0.98

01:12:37.920 like it was the most it was the saddest most awkward shit that i'd ever been a part of because 0.87

01:12:43.680 i'm like dude like do you really think like i'm and we're standing in this building and i'm like dude

01:12:49.440 do you really think like look around here like do you think i'm asking people for fucking money 0.97

01:12:55.080 dude like i'm not soliciting money dude and um he's like well it makes sense now but i just

01:13:00.960 wanted to believe it so like for all of you guys to get those messages bro know that those people

01:13:05.460 are full of shit because i don't even do that i don't even communicate with dms outside of like 0.93

01:13:08.760 five people so but it was sad dude and that goes double for anyone who's listening from my

01:13:13.820 hundreds yeah 100 because we're because we're we invest yeah and so it's like even so we have

01:13:19.040 hundreds of accounts that are like i've got a deal or like hey i'm doing this crypto trade or this

01:13:23.480 forex thing and i'm like guys yeah like so we get we get it all the time so i'm not damning you just

01:13:28.800 fyi yeah me neither i'm not if you get six hormosies or six andies that automatically follow

01:13:33.580 you when you follow us like it's not us yeah it's not man it's sad dude it makes me it made me sad

01:13:38.940 as fuck because i could this dude was like really fucked up over it like you could tell it was like 0.98

01:13:43.180 his whole yeah it made me i still feel bad it just makes me feel dude this is like this is my whole

01:13:50.280 bias against instagram and facebook and the internet as much as i love the tools that we have both used

01:13:55.680 and utilized the fucking dark side of it is just so shitty dude yeah like just so fucking predatory and 0.98

01:14:02.620 and disgusting but that's a whole nother story we could talk about that for a fucking day 0.97

01:14:08.940 but um yeah man i like that so so how did you get how did you get into uh where you're at now

01:14:15.740 yeah so um so after you know jim wonch had the you know started scaling up um then we started a

01:14:22.760 supplement company prestige labs and the exchange that i had with you which i really do want to hit

01:14:26.620 on even though your audience has probably heard it i want to tell how it impacted me yeah um prestige

01:14:31.160 labs was our supplement company that we sold through that distribution base of jim so at that point i

01:14:34.920 think we i think i think at that point i think we had just like just under 2 000 gyms that

01:14:38.800 licensed the stuff now it's like 5 000 plus but at that point we launched it in 2019 and then in

01:14:44.640 2020 we launched our software that basically just worked gyms for brick and mortar businesses

01:14:49.600 originally it was for gyms um but we realized it actually worked for any any kind of service

01:14:54.400 business like hair salon whatever any kind of foot traffic business yeah um and so that that's kind of

01:14:59.840 the the the two kind of spinoff businesses that we had uh from gym launch uh in 2021 we sold

01:15:06.980 uh all three of those businesses so prestige labs and gym launch we sold together to american pacific

01:15:12.520 group which is a private equity firm out of uh san francisco and then um i sold that for uh 46.2

01:15:19.120 million we still have to um 33 of the company um and then the software we did an all stock deal with a

01:15:26.180 much bigger strategic partner we had a better monetization system than them but they had a way

01:15:29.540 bigger distribution base um and so they're fixing to sell it in like you know three or four five years

01:15:33.420 yeah so you're still 33 on that no i i have 33 that's what i'm saying two thirds yeah yeah yeah

01:15:38.320 that's good though yeah no i mean yeah your your second payout is gonna be born at the first one

01:15:42.280 yeah because they're putting a big tech play they're building a crm out and then they're gonna own the

01:15:46.580 payment processing for all the gyms and that's gonna like yeah i fucking love it and that's their 0.83

01:15:50.580 playbook and i was like you know what um i'm not that guy um maybe i am now but i wasn't then and so

01:15:57.560 it was like cool run that run that play i want to do this thing and that's when uh in 2020 we

01:16:03.400 started we did our first kind of like personal investment which was that photography studio

01:16:07.000 it was a single location guy somehow made his way on my calendar don't do this um and

01:16:11.900 yeah and uh but like i could like you know you're like you can read a person really like i could tell

01:16:18.900 how he was talking the way he was carrying himself like all the stuff i was like this is a nice guy

01:16:22.800 he was like i'm so sorry i did this i did like he's like yeah blah blah blah it's like but i read

01:16:27.700 your book i did everything that was in the book i took my photography studio from like 400 grand to

01:16:31.960 1.6 million a year like yeah so you're so you're willing to give a little bit for guys like that

01:16:35.920 right when he starts like and like i knew that he wasn't he wasn't pulling it out of his ass like 0.92

01:16:39.860 i knew he'd he'd i recognized his name he'd dm me a couple times of like yeah so much better

01:16:43.720 and so anyways turns out he has this uh photography studio it's enchanted fairies um and i'll tell you the

01:16:51.880 story because i think it's really enchanted fairies yeah all right let's give him a plug

01:16:54.660 enchanted fairies what's up he had a daughter who got told uh at school to shut up and she stopped 0.99

01:17:02.240 talking for like months holy shit yeah and so what ended up happening was like they tried to you know 0.62

01:17:07.820 all this different stuff trying to talk and do it and so what they did was they um set up these sets

01:17:13.400 because they're photographers right of how like of a storyline where she is the hero of her own story

01:17:20.480 and she finds her voice that's like kind of like a and so they made it into a picture book and read

01:17:24.620 it to everybody she started talking again and so i was like wow that's really cool because like kids

01:17:30.680 like everybody yeah stories are what influenced the way we see the world and so they had a visual but

01:17:34.760 it was like not just any story it was a story with her pictures of her being the hero yeah and they

01:17:40.500 don't have a third of their profit to charity every year towards kids like they're like good people

01:17:44.340 yeah and so anyways you told me this whole thing and i was like yeah like i'm yeah i'm in like

01:17:49.080 what you know how can i help right and so um we invested in the company and now we have 38 locations

01:17:54.100 um that's fucking you know 30 months later and um so yeah so so one location yeah and how many 0.97

01:18:00.480 months 38 months 38 locations yeah i think it's been 30 months it was june of 2020 so whatever that

01:18:06.060 is until now that's amazing yeah um and so like that's holding on to his fucking hat what i said he's 0.99

01:18:12.560 holding on to his hat i mean and it's been it's like seeing building that with them has been so

01:18:18.600 cool and awesome and then we're like man uh let's do another one of those so we did we did two more

01:18:23.140 deals that year um and both those went really really well um to the same degree of growth as kind of

01:18:29.300 that one did and so that's why this is the topic i thought would be uh there's two different ways

01:18:34.720 one i want to talk about the prestige labs thing because i learned a ton from you about all the things

01:18:37.300 i did wrong i think it'd be useful for the audience um but uh in terms of the reason we

01:18:43.000 ended up selling was because i enjoyed that so much um and i you probably maybe you probably have

01:18:49.940 more patience than i do because i i felt like i'd been in the gym industry for a decade and i was like

01:18:53.280 i'm just i don't want to be the gym guy that's my thing i don't want to be the gym you know what

01:18:57.240 keeps me here dude it's it's the it was the perspective switch it was when i went from so like

01:19:02.660 dude i it's happened for me in 2014 when i went from someone who was trying to become wealthy which

01:19:08.200 at this point i was at that time um to someone who was trying to help our own team and our own people

01:19:15.120 like it became mission focused that's where like dude i love coming here bro yeah like i love like

01:19:21.140 do we have we have you know 10 12 people a week that walk through here that have lost 100 200 pounds

01:19:27.000 changed their whole fucking life i don't know anywhere else where you can do that yeah you know and 0.93

01:19:31.700 you get to talk to these people and and dude i'm here with all these people who who care about that

01:19:36.320 yeah you know it's just a cool environment to be around and i fucking love it and that's what keeps

01:19:40.480 me in it but i do i do also thoroughly enjoy the small business phase of growth like going from

01:19:48.980 one yeah too many i fucking love that yeah it's the rocket right i miss that shit dude yeah because 0.89

01:19:54.240 that's what i mean yeah this is a different game than 38x now like i mean yeah yeah over

01:19:58.600 it's not comparable yeah right yeah yeah this is that we went we went through the small business

01:20:03.420 we went through the medium business now we're learning the large business which is cool because

01:20:07.700 i'm learning new i'm learning new things right uh i never ran a fucking company this big um but dude 0.98

01:20:15.120 i'm telling you man like my sweet spot is right where you're talking about i fucking love that shit i love 0.86

01:20:20.120 i love the helping people go from like a guy i got a buddy of mine alex spinozo who uh you may

01:20:29.400 recognize him from the internet he's all over the internet he's got a good personal brand too um

01:20:34.140 he started with us in arate uh you know 2018 or 19 when we started dude he sent me um

01:20:42.680 if we go if we go to my house later on i'll show you but he sent me his millionth dollar that he

01:20:48.960 made so like you know how most people will say oh i got my first dollar yeah he sent me his millionth

01:20:54.160 dollar yeah and that he made yeah and uh a note and i framed it i got it in my in my lounge in my

01:21:00.620 garage which is where i spent a lot of my time yeah and then uh he sent me a he sent me a video

01:21:05.320 message just the other day um it's just so fucking cool dude like he sent me a dollar a while ago this 0.92

01:21:12.260 is a couple years ago sent me a message the other day now this guy at this point in time like he's

01:21:16.440 very conservative he's not like a guy that makes a million bucks goes and spends it right but he you

01:21:21.140 know he's a car guys like i am and i know you're not but but uh i am and he sent me this video of

01:21:27.620 this car that he built before that he built himself and he was talking about it and then he's like

01:21:33.120 dude and and then today i bought this and he bought a fucking brand new mclaren oh and like 0.98

01:21:38.060 bro i was just like this is the fucking shit like this is this is the shit this is what i love doing 0.96

01:21:43.960 and whether it's with you know changing their life with fitness or weight loss or whether it's

01:21:48.680 economically with entrepreneurship that's the shit i love i love that shit um so i'm a little bit jealous

01:21:53.880 about what you guys are doing yeah see i mean watching someone's perspective shift around the world i

01:21:58.860 think whether it's like you said you know weight loss even some people were like you know religious

01:22:02.280 and they get people into that or economically like when you see like i think at the end of the day

01:22:07.220 like the reason that i fell in love with leila was that she saw the world the same way as me and i

01:22:11.920 felt like that was really rare like i was like so you see that too right like this guy is a total and

01:22:15.980 she's like yeah yeah total beast yeah okay cool so you see that too i was like okay oh yeah they're

01:22:20.100 only doing that not because they like you they're trying to get this up so yeah yeah i was like i just

01:22:24.260 like i felt like this huge weight where i'm like i felt you're not the only yeah exactly you're not the

01:22:28.580 only one that thinks like that yeah that's a big that's a big thing i'm thankful for for the people

01:22:32.560 that listen to my show because i know like like i know i'm not everybody's cup of tea i'm very aware

01:22:38.200 like i'm very fucking aware you guys don't have to remind me i know uh i live my life this way the 0.96

01:22:42.700 whole time i've been alive um but the people who consistently listen to the show and don't like

01:22:47.920 like they don't think i'm crazy you know i'm saying i fucking love that it's one of the things i'm 0.84

01:22:52.980 most thankful for that's why i continue to do the show honestly because like some of the things

01:22:55.960 aren't fun to talk about yeah you know coming on here every day and talking about what the fuck is 0.91

01:22:59.600 going on with these crazy motherfuckers in the world yeah it wears you out yeah but uh finding

01:23:04.260 people with that consistent worldview bro and that perspective is fucking massive dude and to the 0.73

01:23:08.660 audience i mean just to give you some um confirmation like if you if you think differently than your

01:23:15.560 immediate family or your friends or whatever your hometown is like one you probably don't want to be 0.71

01:23:22.660 normal because if you take what normal means and put it across all aspects of life it means that

01:23:27.380 you're going to die at 74 you're probably going to be overweight you're going to you know be divorced

01:23:31.120 uh you're going to not really achieve anything that you want like that's normal and so it makes sense that

01:23:37.460 you would be the odd man out because most people live that life and so like that was something that

01:23:42.180 gave me a lot of permission to like be me which was not normal in a lot of and that's

01:23:48.820 okay because i mean like ordinary versus extraordinary means that you are not and so

01:23:53.000 like if andy's sharing stuff on here that are different beliefs about the world then it would

01:23:57.200 make sense because like if he's in the 0.001 percent of earning potential then it means that he sees

01:24:02.700 reality differently than you and i think it's the same reason that people who are billionaires can lose

01:24:06.880 it all and then get it right back and the reason that you can't is because you don't see reality

01:24:11.560 clearly hence the name of the show you know i didn't even like i didn't even connect but like yes

01:24:16.980 that's it's about being a realist it's distortion yeah it's moving the emotion outside of the facts

01:24:21.880 and making decisions based on the facts yeah and and i feel like that's a tool that has become less

01:24:28.180 and less and less common with more and more and more internet and more and more and more um you know

01:24:34.560 propaganda in terms of uh making people believe that their feelings are what actually matter and how

01:24:41.700 you should make decisions in reality that's not especially in business that's not going to get you very

01:24:46.920 far it's going to get you broke yeah so i appreciate that by the way thank you for that i just like is

01:24:53.680 that feeling of loneliness makes you normal in the right rooms yeah rather than the room that you're in

01:25:00.620 that's exactly right like dude you get around people you know you know you know how it is like

01:25:06.940 like dude and that's that's something for a lot of you guys listening to like you may never have been

01:25:11.520 in those rooms like ever but i'm telling you like when you when i go in a room none of the

01:25:15.600 motherfuckers think i'm crazy yeah real talk they might think i'm i i talk too much but they don't 0.55

01:25:21.620 think i'm crazy also the many losses that you're probably going through right now if you're in your

01:25:25.600 rocky cut scene like if you remember that video game thing it's like well then you're just you're

01:25:29.420 tinkering away you're chiseling away at the character traits that are going to make you successful

01:25:32.640 and in those rooms that andy's referencing like i don't know trying to say this the right way but

01:25:37.780 like game recognize game and i don't mean that in an egotistical way but more so like how the other

01:25:43.420 people in that room see the world the things that we're talking about giving earlier like all the

01:25:48.140 guys who i know are the wealthiest in the world will do will bend over backwards for you you know

01:25:53.100 what i mean yeah um it's completely the opposite of what the perception is yeah the perception is

01:26:00.060 everybody that's rich is a piece of shit my perception of it now that might be true for

01:26:04.620 people that inherit their money totally different could be yeah but my perception is people who have

01:26:09.160 actually built their own wealth yeah are usually these are the fucking nicest best people and that's

01:26:15.700 the reason they became wealthy yeah they had to develop those ways of getting along with people

01:26:20.860 over and over and over again because if you don't have leverage in the beginning which you don't

01:26:25.140 you have to overcompensate by being a great person opening more doors by giving first and getting

01:26:31.460 screwed yeah and if you think about it that way where it's like okay i have to give to lots of

01:26:36.800 people for an extended period of time and i have to stomach the fact that i'm going to get screwed like 0.51

01:26:41.340 you're going to get screwed you have to stomach it but if you realize that that's the necessary

01:26:44.880 cost in order to develop the trait and open the doors that you don't get screwed then you just have

01:26:50.400 to see that as the as the ticket right and i think that for me that was like a very big unlock for

01:26:55.180 realizing that like when i got into those rooms i was like oh it is the ticket yeah it's the ticket

01:26:59.060 yeah getting your ass kicked and getting screwed over over and over and over again continuing to show up 0.70

01:27:04.640 continuing to push through continuing to get creative and figure out the solution

01:27:08.400 that is the price of admission to that higher level that you're trying to build it's not the

01:27:14.500 abnormality it is the norm for that level that you're going for and while it may feel

01:27:19.780 like it's abnormal because it is right and the normal human being kind of keeps themselves

01:27:24.560 they're not overly generous they're not overly greedy they might give some to the church they might

01:27:29.920 give five bucks to the homeless guy or whatever that's not what we're talking about we're talking

01:27:34.500 about when you have the means to make a difference and you continue to use your means to make a

01:27:41.140 difference there's going to be 80 of those people that don't appreciate it along the way and that

01:27:46.840 sucks it really does suck and i'm not looking for a tinker tape parade or anything but just like i 0.89

01:27:52.900 don't know don't pile on you know like don't make it fucking harder like i mean and and unfortunately 0.96

01:27:58.660 but fortunately unfortunately and fortunately uh it fucking hurts but fortunately it teaches you a 0.96

01:28:04.760 whole lot and i i truly am bought into that mindset you know because dj asked me you know uh we're

01:28:10.900 together all the time and he you know he sees this a lot like he sees me do things yeah he and

01:28:16.840 he he knows all the secrets like he knows the things that i've done and then sees those people

01:28:22.040 do those things that aren't good and he's like why the fuck do you do that bro and i'm like well 0.90

01:28:26.700 look at my life dude yeah like i'm doing something right so like i really don't want to fuck with the 0.93

01:28:31.060 recipe like it's going well yeah well guys that was part one uh when you guys come back we're going

01:28:36.420 to finish up part two so stay tuned guys we'll be right back

01:28:39.320 went from sleeping on the floor now my jewelry box froze fuck a pole fuck a stove counted millions 1.00

01:28:46.440 in the cold bad bitch booted zwoe got her on bankroll can't fold doesn't know headshot case closed 1.00

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REAL AF with Andy Frisella - March 10, 2023

485. Part 1 - The Process Of Building An Empire Ft. Alex Hormozi

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