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

Episode Date: March 10, 2023

In today's episode, Andy & DJ are joined in the studio by author, investor, and entrepreneur Alex Hormozi. They discuss how Alex started his entrepreneurial journey by opening gyms in California, how ...to find opportunities especially when you're at the lowest parts in building a business, and the role that personal development and action play in success.

Transcript
Discussion (0)
Starting point is 00:00:00 What is up guys, it's Andy Priscilla and this is the show for the realest say goodbye to the lies, the fakeness and delusions of modern society and welcome to reality guys today we have a full length episode and it is extra girthy extra girthy um but before i tell you who my amazing guest is who i've been looking forward to having on the show for a very long time is uh if this is your first time listening there's a little housekeeping you need to understand about how we do things here um we're not just a conversation podcast we're you're going to hear that today but we have many different formats within the format and one of them is full length like you're going to get today uh but then there's also q and a f and that's a question and answer format and uh you ask the questions we answer them on the show and you could submit those questions a couple different ways the
Starting point is 00:01:03 first way is you guys email those questions into ask andy at andy forsella.com and the second way is now that we're on youtube i know most of you guys have been used to listening to us on the audio platforms but we are on youtube now with the entire episode so if you go on youtube and you go to the q and a f episodes you could drop your questions in the comment section and we'll pick some from there as well other types of shows that we do, we do this one called CTI. That stands for Cruise the Internet. That is where we talk about society, culture, what's going on in the world. We talk about, you know, we pull up three headlines.
Starting point is 00:01:35 We talk about what may be true, what may not be true. We speculate. We tell some jokes. Usually they're inappropriate, and if you don't have a sense of humor, you won't like the fucking show, so don't listen to that one. The reason we talk about culture and society on an entrepreneurial show is because you have to understand your environment to be effective inside the environment. So if we don't talk about these things and these tyrants run away with our freedom, we won't be able to
Starting point is 00:01:57 make money and be ballers. It's as simple as that. All right. Other times you tune in, we have real talk. Real talk is five to 20 minutes of me just giving you some real talk. Most of the clips you see of me on the internet where I look sound like an angry fucking weirdo and I'm like screaming and shit that comes from real talk. I'm not like that all the time, just most of the time. And then we have a fee for the show. Okay. And the fee is not monetary. I don't ask you to buy things. One of the things you'll notice about this show is unlike other shows, um, is that I don't run ads on the show. Okay. I don't take money from other companies to talk about their shit that I don't use. I don't need their money because I am independently wealthy because of the lessons that I teach you on the show.
Starting point is 00:02:39 So in exchange for the lessons I teach you on the show that have made me independently wealthy, that I don't have to take advertisements. All I do is ask that you share the show when we do a good job. So it's value exchange. If I do good, tell people, if, if, if we do good, tell people, uh, if we don't do good, please don't tell anybody. Uh, but guys, that's, that's how the show works. So, uh, without further delay, uh, I've've been telling you guys we had a big guest coming on the show and this is one of my favorite guests that we've had on the show we haven't done the show yet um but this is a guy that i've become friendly with and we've become friends over i don't know what the last year or so uh very very very brilliant man somebody who's been very
Starting point is 00:03:21 successful in business and life and somebody that I'm excited to have a conversation with. Please welcome to the show, Mr. Alex Hormozy. Thank you so much for the intro. What's up, brother? Yeah, man. It's great to see you, dude. I'm pumped to be here. Hopefully I can live up to the intro. That's always the goal. Look, dude, all you got to do is be you. That's it. Out of all the people, and this is real shit, all the people that I have watched on the internet over the last decade or so, there's only a few of them that I'm really like, okay, this guy really, really does understand how to build a business. You know, there's a lot of coaches. There's a lot of pseudo, you know, knowledge out there. There's a lot of hucksters.
Starting point is 00:04:00 There's a lot of people who, you know, are great coaches, not great operators. But dude, you know, when I watch your content, there's a few other guys out there and some of them really don't have a big of followings. It's very apparent that you're very, very, very intelligent when it comes to business. And dude, I'm just excited to have a conversation about it. So I'm stoked. Yeah. So what are we going to talk about, dude? Let's start with your story, dude. Like,
Starting point is 00:04:25 how did you, like, how, cause I, you and I, we've talked about all kinds of different things via text. You know, we talk about chat, GTP, we talk about GPT. We talked about, uh, you know, different things going on in business, but you know, I've never really got to sit down and talk to you about your story. So this is a perfect time to talk about it. It was wild. It's been, well, I'll give the quick, the TLDR. I was a gym owner in Southern California. So I had a consulting job. I did defense contracting, space cyber intelligence through a sub under Booz Allen. Hated that job, actually. Hated it so much that I ended up quitting and driving across the country, not telling anyone until I was halfway there because my dad was going to
Starting point is 00:05:09 talk me out of it and be like, hey, you don't need to, you know, like, let's just follow the path that we had. And he was doing it because he just wanted to look out for my best, but I didn't want to do that. And so I showed up in California with no plan, showed up at a gym owner's gym and was like, hey man, can you teach me? And he was like, I don't know, like, why are you here? I got shit to do. Slept at his place. How old were you at this time? I was 22. Okay. Yeah, so I graduated
Starting point is 00:05:32 a year early from a school in Tennessee. And then that way I kind of got a jump start in my career. I saved my extra money. And then I had about $50,000 saved up when I was 22 to start a business. And I wanted to start a gym. And so that was because I was into fitness and I hated everything else. And so that was like, I guess I'll just do this. From there, I spent 12 weeks with that guy. He started work at 4 a.m. and work until 4 p.m.
Starting point is 00:05:55 Four to four was his shift. And so I did that. And then I also stay at the gym after that, learned a little bit of the ropes, started gym in Huntington Beach, didn't have enough money for both, slept on the floor there because you could only pay one rent. Yeah, I get it. It's very similar to how I got started, dude. Very similar. And it was by chance, I went to a weekend workshop two weeks before I started the gym. And it was this guy who was teaching something called Facebook ads. This is 2013. So I was like, I mean, probably like stroke of luck, crazy coincidence. And I was able to run Facebook ads to get my first 25 members in the gym. And we were able to grow by 5,000 a month every month for the first seven or eight months.
Starting point is 00:06:37 And at that point, I started bringing people in and getting a manager and all that stuff. And then it pretty much started working out. Um, opened a new location every six months after that until I had five locations. At that point I met Layla and, uh, I, I got asked to speak at this event 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 you to talk about how you're marketing for like brick and mortar. And I was like, all right, man. So I 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 capacity on the first day. That was kind of like the unique thing. So what I would do is I would sign the lease, put the deposit down, and then I'd start running ads immediately. And it would take me 30 days to
Starting point is 00:07:19 open the gym. And so like, I would spend, uh, 300 bucks a day ish. And we were getting like 30 to one back on our ad spend. So we were making a hundred grand in our first month. And so like, you know, as the cash is coming in, I'm like buying flooring and then I'm like painting the walls and like getting the equipment in. And like, I had this whole order. Cause I knew that like by the time the equipment got there, like I had to have the paint, like, you know,
Starting point is 00:07:39 all that kind of stuff. And so we'd open at full capacity only using the cash that I got. Hold on. That's those stories are the fucking ones that people love. Like, we got plenty of time here. We got plenty of time. Just because I talk fast in the intro.
Starting point is 00:07:52 Like, dude, I love that. So you pre-sold the memberships and then used the money to actually build the gym out. So what I would do is we would do these challenges. We do these six-week weight loss challenges. And the whole shtick was that it was free if they lost the weight. And so people would basically bet on themselves. They bet 500, 600 bucks that they would hit. I think I had, I think it was 10% body. I'd changed the challenge, but it was like 10% of your body weight. So if you were 200, you lose 20 pounds, et cetera. And they had six weeks to do it. And they'd work out as many
Starting point is 00:08:23 times they wanted. We'd give meal plans, grocery lists, food preparation, instructions, eating out guides, all that kind of stuff. And so every week I'd sign up 25, 30, 40 people. And this was all one-on-one consultation. So I would do 20 to 25 consults a day every day. And I did that for years. Even when I had my own gyms, I still sold better because I just had more reps than the other guys. So my guys would set appointments for me. So every day I'd go, they had set three days worth of appointments. So it was just like stack, stack, stack. And so you just get the reps in.
Starting point is 00:08:55 And I always refer to that as my Rocky cut scene. No one knew where I was and I was just hitting the meat in the basement and just getting those repetitions in. And so anyways, I just had $5,000 to put down for the lease and just enough money to start the ads. And for us, we'd get leads for like five bucks.
Starting point is 00:09:14 And we'd sell one out of four leads into a $600 thing. So it's like it would cost me 20, 25 bucks to get a customer and I'd make $600 upfront. And then two days later, I'd sell them supplements, you know, 200, $300 for the supplements to go with the program that they just bought. And then the shtick was three weeks in of their six weeks, I'd be like, hey, Dorothy, you know, let's be honest,
Starting point is 00:09:38 you have more than 20 pounds to lose. What's your plan after this, you know, thing's over? She's like, well, you know, what's the ultimate goal? She's like, I just want to get to my high school weight. She's like, well, what's the ultimate goal? She's like, I just want to get to my high school weight. I was like, okay. So just so we're clear, you know that in the next 21 days, we're not going to do that. And she's like, no, I understand that. I was like, okay. But long-term's the goal? She'd say yes. And I was like, all right, then you won the challenge. And she was like, what do you mean? I was like, because you realize it's not about six weeks. And so I was like, so this is what I want to do for you. You have the 600 bucks.
Starting point is 00:10:05 I was like, I want to credit towards the goal that you really have, which is the high school weight. I was like, I'm just going to put towards the year. And that way, like you win today, you're in, you're one of us, here's the t-shirt, you know, like you're part of the family now. And so I just set my membership at 50 bucks higher than it was supposed to.
Starting point is 00:10:20 And I usually ended up selling it for, so it was like 250 a month, got dropped down to 200 a month because I take the 600 divided by 12. And So it was like $250 a month, got dropped down to $200 a month because I take the $600 divided by 12. And so that credit opened $50 a month off. And just like that, we were able to go $600, $250 in subs, and then I'd be able to get the membership
Starting point is 00:10:35 all in the first month. Compare that to the business model where someone's going like three months up front and then converts one out of three into a $99 a month membership. My ability to convert cash so much faster was front loaded so I could outspend everybody in my market, which is also why I could launch them all for no money out of pocket because every day I'd spend 100, I get 2000 back.
Starting point is 00:10:57 And so that cash is what allowed me to open so quickly without having capital of my own as a young guy. And that's how I was able to scale. That's awesome, dude. How the hell did you think of that? Like how, like what? having capital of my own as a young guy and that's how i was able to scale that's awesome 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 story so that gym owner that i that i uh went out to right so i googled like successful i mean you know because whatever it was 10 11 12 years ago google like successful gym owner and this guy had
Starting point is 00:11:20 this like crappy html site and it said seven figure Sam. All right. And I was like, cool, seven figure Sam, I'm going to go talk to this guy. And so I get to California and he's got like a little group of gym owners that like all just share their, you know, share their stuff. It was just gym owners. And I didn't have a gym at the time. And I was like, is it even okay for me to be here? Um, it was like, yeah, sure. And so that way I actually got to learn all the stuff that they had done wrong before I started my first gym. So I was like, oh, don't go too small because of this. Oh, don't go too big because of the rent.
Starting point is 00:11:51 Like, hey, keep it under this per square foot. Like all these things that like I would have no idea. Like I would have known that. And so one guy was there and was like, hey, I got this promotion. He was in Wilmington, so like South Hawaii. He was like, I've got this promotion that's doing really well. And so he was doing this eight-week thing. And what happened is some rich guy, some rich entrepreneur apparently was like, I won't pay for it. But he's like, but
Starting point is 00:12:14 if I hit my goal, you give me my money back and you can use my testimonial and I'll promote the shit out of you. And he's like, and the thing is, he did that. And all these other people are like, yeah, I want that thing. And so he was doing an eight week thing. And so Sam started doing it at his place for his personal training side. And I was like apprenticing under Sam. And the thing is like, I just saw like the ratio of how many we could sell versus how many trainers we need. I was like, this doesn't like make sense.
Starting point is 00:12:39 And I was like, what if we put it in the bootcamp? Cause then we just put as many people as we want in there to get people going. He's like, you think people pay 500 bucks? I was like, they care about the weight. They don't care about what the experience was. And so I ran an ad with that. First was technically for Sam's spot. I ran the ad before we even knew that Facebook ads even worked. So the first ad I ran for Sam. And I think, I can't remember what we spent, but we made money on it. And it was like, holy shit, this works. And so I sold the first 10 or 12 people or whatever at his gym. And then that's when I went to go plant my Huntington Beach spot.
Starting point is 00:13:13 Preston Pyshko That's awesome. Jason Williams But it was like an iterative. The first guy did eight weeks and it was all about the testimonial thing. Sam cut it to six weeks and it was all about personal training. And then I added in like a nutrition template thing. So I templated it so it was like faster to move through people and made it one-to-many rather than one-on-one. And that was kind of like the, and added Facebook ads to it. So like, that's what, when those came together is when it just like blew up. That's awesome, man. Dude, you said something in there that really caught my
Starting point is 00:13:42 attention. It's something that we talk about on the show a lot, especially on the Q and A, uh, the Q and AF episodes. A lot of these young dudes, uh, young girls too, they want to learn how to get good at selling and they want to learn how to, how to sell. And you said the answer in there reps, reps. And, uh, I just wanted to point that out. Like, you know, you guys ask that all the time. Like, how do I learn to become an effective salesperson? by the way is the most effective skill that you could ever have you could ever possess ever ever ever if you can if you can learn how to how to sell and you can learn how to manage people there's always going to be a demand for your skill set and what alex said in there with his reps i'm assuming that's this is where you really want like you said hitting
Starting point is 00:14:24 we you know pounding the meat yeah you know what i, like you said, pounding the meat. Yeah. You know what I'm saying? I don't know about that. We got a girthy meat pounding going on. I checked the CRM because I still had access to it right when I sold my gyms three or four years later. I had 4,000 confirmed kills.
Starting point is 00:14:40 So closes, not consults. And that's a lot of sales. Yeah. It's a lot of conversations. Face-to-face lot of conversations face to face, every single one of them one-on-one. Just like I tell the people, I'm like, dude, get, get yourself in a good retail job. Get yourself in a retail job where you can like people that I don't want to work retail. Well, fuck you're an idiot then dude. Because like you can learn what you're learning in a retail operation is so much more valuable
Starting point is 00:15:02 than what you're actually getting paid most of the time. They're working for you. Like your employer, like, especially if you're newer, your employer is working for you and also happens to be paying you because like most people come in with basically no skills. And so then like on the job, that person, it gives you an education and pays you to learn, which is why like nowadays it makes almost so much more sense to just skip straight to just the on the job education, whatever industry you want to be in, because you'll learn about the industry at a broad spectrum, but then you also learn more tactical sales. But to your point about selling being the most valuable skill, if you just boil it down to first principles of, okay, if I want to do something, you can either learn how to
Starting point is 00:15:38 do everything, or you can convince somebody else to do that thing for you who's awesome. And if you can convince somebody else to do every other thing that is required to do in the business, then you can have an amazing business and only know how to do one thing, which is get other people to do stuff. That's right. And leadership and sales, if you're like, okay, well, what's leadership? Well, it's being able to influence other people to do the thing you want them to do. Sales is pretty much the same thing.
Starting point is 00:15:58 Yeah. One's more transactional, depending on the type of sale. But yes, I 100% agree in every way. Dude, what I found too, man, is that if you truly want to be an effective leader and salesperson, the best thing that you can do to get these people to do what it is that you need them to do as the manager or the CEO or the operator is to make them understand how it's in their best interest to do those things. And a lot of people don't operate their business that way. I found that out after coaching an RTA group for so long with Ed. The point of the group is that people need to learn things. I'm not knocking anybody,
Starting point is 00:16:32 but a lot of people don't understand that your mission, your purpose, your values of your company really come from you showing the people that work for you how their lives are going to benefit by actually listening to what it is that you ask them to do and a lot of people bail out on that dude they come in they want to run a business they want to put their feet up on the on the they want to go to the lake on thursday and come back on tuesday and they want they think that they're running a company you guys ain't running shit now you're running yourself out of business and um i don't know man it's just interesting. The whole dynamic of small business is super interesting to me, dude. It's where I really,
Starting point is 00:17:16 it's what I really like. Like running bigger companies is, and like, it's fun. I love coming here. I love being around everybody here. I love what we do. I love what we do for the people that are our customers, our companies. I love all that. But man, there's something about that, like the beginning, like where you're really hustling and you're really learning. And like, I do miss that a lot of times. That is exactly the, I mean, that what you just expressed is the reason that we decided to go with acquisition.com, which we can get to later, because we can pick companies up right at that, like, you know, one to 10 million in profit size. And like, they're still figuring out some of that stuff. And so like, there's a, you know, there's a chain of teeth wetting studios that we're looking at and like in the diligence process, like, man, I was like, your physical product sales are low. And they're like,
Starting point is 00:17:55 yeah, we're still struggling with that. I was like, I fucking promise that I know, like I will figure out how to get everybody to leave with a kit. Like I promise. And like when I was figuring out, so we have a chain of 38, I think, photography studios. It was our first personal investment Laila and I made outside of like the normal real estate and stocks and stuff. And now when we spent like six months trying to figure out a way to just like re-engineer the sales process and ended up just massively increasing
Starting point is 00:18:21 the ticket size and the take rates at the same time. But anyways, all of that comes from like a thousand tiny conversations that you notice someone pause or you're like, I said that they didn't hear it the right way. How can I rephrase this? Or is there a way, if I put this first,
Starting point is 00:18:34 does that influence how they see the rest of the conversation? But like that's- You can't do that without the reps. No. And dude, it has to be like this. It cannot be through a text or through, I mean, now it probably can can be but when you're learning you know for for you guys who are trying to learn these skill sets dude the acuity that you have to have to read someone can only come from that
Starting point is 00:18:58 scenario there's no there's no coach that can teach you that door knocking cold calling and and or retail where you yeah you have 20 30 people a day walking at least yeah and when you do that it's like that's the it's the tiny little pauses where someone says something and you have to like if you have to if you have to be reminded you don't know it well enough so like as a sales guy like if you have to think about what you're going to say next it's kind of like wrestlers when they're on the mat like you sure don't you know what you're going to be shooting to counter something yeah that someone else is like you're not like okay they just pulled my wrist so now and it's like you're fucked already yeah you're done yeah you wrestle i did in high school yeah yeah not that great but
Starting point is 00:19:39 wrestling's a wrestling's an has has been an awesome life teacher for me. Awesome. Talk about reps. Yeah, no shit. Yeah, do a single leg takedown and do it 100 times every day. Walk out, just walk out to a match where everybody's watching you and it's just you and one other person. And there's no hiding whatsoever of any sort.
Starting point is 00:20:01 Like, it's a totally different kind of thing. But that's a whole other conversation. But dude, so when we're talking about um so you got the gyms open yeah and because i do want to talk about where you are now and what 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 i love the creative process i love the lay of the land i love showing people um you know like like your dental teeth whitening thing yeah like i love like i'm like you guys are missing it here yeah i love being able to show those kind of things and and that's but i don't want to do them yeah i'm saying i
Starting point is 00:20:37 don't want to do them anymore i've been doing them for 24 years yeah um i might do it for 25 just 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 now what happens so got the gyms going i spoke at that conference right and i talk about this hey this is what i'm doing i showed everything like i didn't i was just like that's my ad that's my landing page was like here's my phone script here's like i just showed i didn't know how presentations worked that's said, you know what I mean? Like, it sounds ridiculous. I got off the stage and to this day, even with all the media and press, I have never been more bombarded in my life. Like there was like a three rows deep circle around me.
Starting point is 00:21:13 And like for the next two days, like guys were like peeing in the urinal next to me. Like, Hey man, like the whole thing for context, I got 150 business cards just from like the stage to the bathroom. Like it was insane. And I got back and I was like, man. And they were like, what can I buy from you? I was like, nothing. I was like, I own five gyms.
Starting point is 00:21:34 I was like, they're like, how do I do it? I was like that, that thing. That's how I do it. And so what happened is, sorry. No, I'm just saying like I'm sitting here and I'm just like reflecting on all of the shit you're telling me and how parallel it is to my story, dude. It's like so parallel. Like it's so parallel. That's how I got into speaking too.
Starting point is 00:21:54 That was the exact same thing that happened to me. I got asked to talk about our retail success because we had supplement superstores, which we still have. And I got asked to come talk about it and show how we were able to grow it. And it's the fucking exact same story. Supplements fitness. I lived in the back of that first store, bro. Like it's just crazy hearing it.
Starting point is 00:22:13 I just went, it's cool. It's probably always see the world in a similar way. Yeah, definitely. Definitely. Well, that's funny because you guys don't know.
Starting point is 00:22:20 So Alex and I, we know each other, but like we've never actually met in person. We text and we talk about things that are important that are going on like hey what do you think of this or that like when something's truly big that's happening like when chat gpt came out we him and i were talking because i i wanted to get your take on it because like it was so so huge to think about so when these big huge things i like like to get Alex's brain on it because Alex has a nice brain. All right. But it's girthy. Yeah.
Starting point is 00:22:48 So, you know, smart people do that with people that are smart, you know. And so but we haven't got to sit down and talk about the actual story. But what was funny was this was probably just like what, in November or whatever, when it started in December. And we started talking. I'm like, dude, you sold supplements, didn't you? And he's like, yeah. And I'm like, I could tell because it was so like the thinking, like we were talking, we were talking about this before the show actually aired, like how you have to think about product that you're going to sell to someone that they don't actually want, but need is a completely different mind process than selling it something that they
Starting point is 00:23:26 want like bro if i was selling shit that people want like i would be worth a hundred billion fucking dollars like but i sell people i all the shit i sell is shit that people they need not want yeah and it's just a totally different game anyway i didn't want to interrupt your story i just i'm sitting here thinking there's a lot of parallels this this is the same story how how old are you 33. okay dude we're i'm 10 years older than you that's awesome yeah maybe i'll be here in 10 years no bro you you're doing it anyway sorry so uh so this guy reaches his arm through and he's like here's my credit card he said run it for five thousand dollars tell me what i get later and i was like 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 anyways mind you i'm not that rich and
Starting point is 00:24:10 so like you know every all the money i had would open new locations et cetera et cetera and so i get back home i put all the business cards into an excel sheet and i started hitting people back up because that's you know i was like hey thanks again you know whatever and so this i had the guy's credit card i was like i called him up i was like do you really want me to run this for five grand i was like because i will and he was like yeah run it i was like okay so i swiped it and i'm still on the phone with him it goes through he's like all right what 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 grand yeah that was what i said yeah and so he's like well you know what i've got a gym opening up in dc uh why don't you fly out and just do your launch thing?
Starting point is 00:24:45 And I was like, okay, I'll do that. And I was like, how about this? I'll spend all the money on the launch and I'll get to keep all the upfront sales, but then you get all the customers I sell for free. So like after the six weeks is over, you convert them and I'll show you how to convert them and I'll give you all my plans and all the stuff
Starting point is 00:25:00 and you can put your logo on it. Right, it was free customers for him. Yeah. And so as soon as I knew I was flying out there, I was like, okay, well, if I'm going to be there, let me see what else is going on. And so this is like unfortunate, but my mom got really sick at the same time
Starting point is 00:25:14 and she was in Baltimore. So like they're right next to each other. And so I was like, shit. So I actually had to go there early. And while I was there, I only had like a couple hours a day of visiting hours. And so I was like losing my mind, just like trying to stay busy. I was like, I have nothing to do. And so I reached out to a friend because I'm from Baltimore. And he was like, hey,
Starting point is 00:25:31 my buddy's got a gym and he's sucking wind. If you want to help him out. So I give the guy the same pitch. I was like, hey, man, I got nothing to do all day besides my visiting hours. I was like, can I just work your front desk and sell shit? And he was like sure and so uh in like 14 days or something i think i made like 60 grand and i was like man i don't have to do with any of the employees i was like this is 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 who had a gym or something like that so i went to that gym and i did the same thing and i flew back and had this big stack of contracts. And this is just when I met Layla. We had met within 30 days of this period. And this is how I convinced her to quit her job. So I stacked it because first date, I proposed to Layla,
Starting point is 00:26:14 but I proposed that she quit her job and joined me. Not like proposal proposal, but I did propose her on her first date. I'm like, damn, man, you're moving. Came in hot, man. And so every single time we'd see it, I was like, you quit yet? And she was like, no, I just fucking met you. No, I'm not quitting my job. And so finally, she picks me up from the airport and she was like, you're taking me on a date. It's been like, we've hung out like 30 times
Starting point is 00:26:35 and you've not taken me on a date. I was like, yes, I did promise that and we will go on a date, but can you do me one thing first? She was like, what? I was like, I got these contracts. I haven't processed any of them because I'm a sales guy and like, I don't do details, but like I have all the credit cards and I'll show you how to do it.. She was like, what? I was like, I got these contracts. I haven't processed any of them because I'm a sales guy
Starting point is 00:26:45 and like, I don't do details, but like, I have all the credit cards and I'll show you how to do it. And she was like, fine. So,
Starting point is 00:26:51 a zillion, you know, two phone books of contracts later, she like, ran, she was like, that was like $125,000. I was like,
Starting point is 00:26:57 dope, right? And she was like, is that legal? And I was like, that was the first question she asked me. I'm still some dude from the internet that she met at a frozen yogurt you
Starting point is 00:27:05 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 bro that's like uh wolf wall street yeah yeah so i mean mind you i was 20 i think i was 26 yeah that's crazy um and that was from like a month of sales so i was like and that was just like right in my past like this is i like this this is way better so um i told So I was like, and that was just like right in my pocket. I was like, this is, I like this. This is way better. So I told her, I was like, I want to do this. And it all started because that guy was like, run five grand, tell me what I get. And so I was like, dude, this makes way more money. Yeah. He forced you into it, dude. He did. And so anyways, I was like, all right. That's so crazy. It was nuts. And so I was like, all right, well, I'm going to go see if I can get other gyms. I
Starting point is 00:27:44 still had all those numbers from the business events. So I start calling these people up or whatever. And so I start booking out launches. And she's like, all right. So she flies with me. So mind you, now we're living together. It's like 30 days later. She's living with me in a motel room.
Starting point is 00:27:57 And I'm teaching her how to close this stuff. But she was, to be fair, Layla was number one salesman in Triangle Square, which is the most popular 24-hour fitness in California. So she was the number one salesman at the most trafficked gym. She could close. She got skills. Oh, yeah. Yeah.
Starting point is 00:28:12 And that's why I pitched her on the first day. When she told me that, I was like, if you can sell, I was like, we can make a shitload of money. Yeah. That's the first day. And so anyways, we start flying out and doing these launches, right? And so she gets all of her friends to quit their job. And this is where the story goes wrong. So I was like, okay, I don't want to split my attention. I've got these five gyms. And so I sold those gyms. And that first guy did the $5,000 thing was like, Hey man, I think you're leaving a lot of money on
Starting point is 00:28:41 the table. Cause you're like literally launching these gyms and you have no equity in these businesses. He's like, i'm a really good operator he's like i'll come behind you and i'll just like staff them up so you just you fill them i'll staff them and you just do the next one he's like we can open like two gyms a month and mind you because we didn't have to put any like real capital down because we could we could front it or whatever i was like all right cool let's do it and layla was like i thought we were doing i was like oh yeah change the, even though you quit your job. It's all good.
Starting point is 00:29:07 Right? Layla's tough. Yeah. So I do this. We go to this. I sign this lease. He's like, hey, I've got bad financials. So you're going to have to personally guarantee it.
Starting point is 00:29:17 I was like, sure, no problem. He's like, yeah, in the build out, you'll front all that. That wasn't a red flag to you at that time. Well, I'll tell you. Yeah. And so you already know where it's going. Well, I've had a couple of those. I'm not going to thank you too
Starting point is 00:29:28 because I've seen it thank you too. So I took the cash, put all of it into the, now the new account because that's what I thought you did. I sold them. And I was like, oh yeah, well, he's my partner in this.
Starting point is 00:29:37 Makes sense, right? I already know. Yep. And so I sell my ass off at this next launch because I'm like stoked. I got rid of the five gyms that I had. I felt like free, like I had backpack, you know, like me and my voice
Starting point is 00:29:50 and just like go collecting credit cards. So 376 people in six weeks, which is a lot, like 600 pop, right? And so there's cash from my sale and the cash from this to like launch this gym. Wake up one morning, all the cash is going and i was like oh fuck i was like what um what happened here 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 like i put the skim for myself
Starting point is 00:30:20 like what and so i was like so i've never been accused of stealing ever in my entire life so i was like i don't even know how to handle this so i just called a mentor and he's like print out the bank statements and just go line by line with him i was like that sounds reasonable i'll do that yeah so i print out the bank statements and i like literally did the whole thing went one and i drove over to where he was and as soon as i sat down with the thing he just took he was like i don't need to see need to push it off the table and i was like oh you don't need to see. He's pushed it off the table. And I was like, oh, you don't actually think I stole. Like as soon as he didn't want to look at the numbers, that was like my. Yeah, I'm taking I'm taking a shit and it's taken. Yeah.
Starting point is 00:30:52 Yeah. And so he he had wired the money to his girlfriend who lived in Sweden. It was it was it was gone into oblivion. And he had been indicted for fraud two years before that. Shocking. Here's where the here's where the silly been indicted for fraud two years before that. Shocking. Here's where the silly Alex part comes in. I already knew that when I started doing business. And he was like, it was just a big misunderstanding.
Starting point is 00:31:13 And I was like, I believe you. Bro, that's what a good heart does. Dude, I've been burned like that same shit. I would want a second. I was like, you're not going to ruin for life. It was a misunderstanding. It was a technicality. How much older was this guy than you? He was in his 40s yeah i was 26 right yeah dude i've been burned so many fucking times by that same mentality
Starting point is 00:31:35 that same thing it's it's the good heart syndrome well no dude it's the second chance thing because like dude what it is is like you you 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 of things in my life where had just a certain thing gone in a different way i would have ended up completely fucking different so when i see people who have like made a mistake or they you know serve jail time or whatever it is and they're out and they're doing their thing, I don't really hold it against those people because I say, okay, well, they probably learned a lesson
Starting point is 00:32:10 because I would have learned my lesson. And then what ends up happening is- They didn't learn their lesson. Yeah. The scorpion and the frog. Yeah. Now you got to learn the lesson. Yeah.
Starting point is 00:32:18 And that's like, I never, like, it never really dawned on me that whole saying, like when money meets experience, experience gets the money and the money gets the experience. But like. That's a good one. Yeah, I heard that and I was like, that's what that was. That's exactly what that was.
Starting point is 00:32:32 And so now I've got this gym that has payroll, trainers, lease, and there's no cash. And I had just sold my gyms and I was like, wait, I don't want to operate these gyms. And he's like, well, you got to manage that one now. And I was like, dude, I didn't go from five five plus one whatever you want to call this one to to go back to work in the front like i felt like i had like moved up i want to do these launches whatever and so that's crazy because dude had that guy not gotten greedy how much money he could have made
Starting point is 00:33:01 you know what i'm saying like dude and so what ended up happening is um i basically whatever savings i didn't put into every like the vast majority of what i had i put into there but i couldn't sell anymore which is the only thing that i'd ever known how to do really really well and so i was like i felt like neutered like i had like 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 want to keep this gym and so i drained my savings every week with payroll and rent and overhead because i couldn't I was like, I can't fight back because if I sell more, I have to keep this gym open and I don't want to keep this gym. And so I drained my savings every week with payroll and rent and overhead because I couldn't bring new cash in. And all the things were prepayments.
Starting point is 00:33:31 So there was no new cash flow at all because that's how the sales cycle worked. And so it went down. And in six weeks, and I had to tell everybody like, hey, I'm actually closing. They're like, you just launched this gym., like, hey, we're actually closing. They're like, you just launched this gym. What are you talking about? It was horrible. And I was like, Layla, I just gave her my checkbook and I was like, you have to write
Starting point is 00:33:52 the checks. I can't, it just crushed me. You know what I mean? And so basically drained me down to, I think I had 20-ish thousand dollars left. So mind you, I had five, six gyms. I could crank cash if I needed to, like all the way down to 20 something thousand. I was like-
Starting point is 00:34:10 And nothing coming in. No, and I just given up four years of my life building the gyms and I had nothing to show for it. Yeah. Like I had nothing for it after all that effort. Sleeping on the floor, I was like for nothing, right? Yeah. And so she was like-
Starting point is 00:34:22 For nothing except- All the skills. That's right. And so we're now, this is what's going on. There's this launch that I got a guy in San Diego to do. And a guy who had seen me speak at that conference or whatever hit me up. He's like, dude, do you have any sales work? And I knew he was a pretty good sales guy.
Starting point is 00:34:41 And I was like, I got this gym in San Diego. He's like, that's right down the street from me. And this is like a national like, you know what? This might actually help me out because I can like build all the shit I need to be building. You go do that thing. So this was going to be my get out of jail free card. We launched the gym. Guy crushes it. There's a hundred and something thousand in sales.
Starting point is 00:34:57 I was like, fuck yeah. And now I'm sleeping at Layla's parents' house. Yeah. This is when her parents first meet me. They're like, where'd you find this dude? Yeah. It's like, oh, from the internet. He's the guy I put everything and live in motels with.
Starting point is 00:35:10 Dad, he's a winner. Oh, man. This is my first, yeah. Oh, man. And so it's December now, right? And December of 16. And so he crushes this launch. But I'm like looking at my my my bank account i was like
Starting point is 00:35:25 where's the fucking deposit like tuesdays were my day tuesdays was always the big one because i got all the weekend and then it would all it would all settle and i was like where's this deposit it's like wednesday thursday friday so so i call and fry's like hey what's going on they're like oh we're doing a standard review of your account and i was like i've been with you guys five years like i've never had a standard view anyways they, they're like, it should be fine. Next week is now going into Christmas Eve. So it's Christmas Eve now. And I'd called a couple of times.
Starting point is 00:35:52 They just gave me the runaround. And I got on and I was like, I am not getting off the phone until you give me the money. I need the money to pay the sales guy to run my business. And this is the point where Layla had told all of her friends to quit their job. So I have $23,000 left. I owe the sales guy $22,000 in commission. He needed it because he had a sob story, a new baby, blah, blah, blah, whatever. And I hadn't gotten the money from the sales yet. And so I didn't want to give myself a chance to think about it. And so I wired him $22,000. So I had $1,000 left. This is the 24th, Christmas Eve.
Starting point is 00:36:25 Her dad's like, he seems a little stressed. It's supposed to be a joyous event. Oh yeah. So two days later, the 26th of December is basically when gyms kick off the New Year's sale stuff. Like the day after you just start, because it's this dead week where everyone's got time and they feel fat. It's like you crush sales.
Starting point is 00:36:42 It doesn't start January 1st. It's because everybody's going to do it. so they're willing to pay for it now. Yeah, exactly. Yeah, yeah. I'll pay today. I'll start in January, whatever. And so the campaigns were going to kick off with her six friends being the six sales guys, because big ambition Alex was like, oh, we're going to go from doing one to doing six. Makes sense. Let's do that as the first real thing we do. It was $3,300 a day in hotels, airfare, car, rental, ad spend, etc. Before commissions. I had $1,000 left.
Starting point is 00:37:14 And I was starting 48 hours later because I was expecting to get the money that I never got. I also, by the way, never got that money. Still to this day. Never got the money. What the fuck did they do? Clauses, policy, something. They said they were going to hold on to it for six months because it was a regular so i was basically running my national launch thing through my local gym so like i'm processing stuff in canada for a gym out of likes they were
Starting point is 00:37:35 right to do it i didn't know anything i just thought i was like yeah you process money through the pos so like i'm running memberships at my gym that has more memberships than any other gym, but no one's actually there. We start these launches and we start getting like 60, 80 contracts a day. I have no way to process money. So I'm spending 3,300 a day and I can't make money. I'm just getting all these credit cards, all these contracts, and I have nothing that I can do. So all the way, so let's just like the 26th of December, all the way to January 29th, I don't have a processor. Because at this point, if you get kicked off of a processor, it's like going to jail. I remember that.
Starting point is 00:38:12 It's like a- Yeah, it was a big, you get a big black mark. It was hard to get another one. Yeah. Because there used to only be a few processors. Yeah. Yeah. It was hard when, if you've heard of them.
Starting point is 00:38:21 2013, 14. Yeah. Yeah. And so, and they had all the power. There wasn't any- Yeah. And they didn't care either no yeah and i was like they're like fuck you what are you gonna do yeah business owner right okay and so um yeah but when you get big it's a different fucking tune you know now they come in here and suck dicks to get our fucking business canada that's fine don't think i don't fucking remember assholes just saying because
Starting point is 00:38:43 i've had to deal with the same shit. It was horrible. And so it's one of these crazy things that as a business you forget about. But if you cannot process money, there's nothing you can do. And so anyways, I talked to everybody I knew and got a porn casino, high risk, whatever guy to take my money. So they were going to get like 8% processing fee. And then they had a 10% reserve on top of that. So like 18% of my sales went straight. 10% was held in escrow and then gets deposited six months later on a rolling basis. And then 8% just goes to them
Starting point is 00:39:17 for the risk thinker. I was like, whatever. I need the money. 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 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 February 1st, he's like, you can run another 50. So I ran 50 on January 29th, 50 on February 1st. And that was the hundred for the $3,300 a day that I owed.
Starting point is 00:39:39 And my credit card was at zero, still was broke, but I was at zero. And then got two, three more processors, got them going and then 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. I like looked at it and I was like, I think we got out of it. You can breathe now, yeah.
Starting point is 00:39:57 Next month comes, taps me on the shoulder one morning and I was like, what's up? And she was like, there's a problem. I was like, what do you mean there's a problem? She turns her laptop towards me and there's this like waterfall of negative transactions she just keeps scrolling as she's talking to me and I was like holy shit and each one of these is like as big as my rent because 500 600 bucks was like my rent yeah and there's
Starting point is 00:40:15 just hundreds of them and I was like I just felt like my stomach dropped and I was like what is this she was like oh one of the gym owners told all the members that we filled up at that gym to refund and sign up through him for half what we charged. Because we held the processing risk, which was part of the issue with the first thing. And so- So they're charging you back. Yeah. At this point.
Starting point is 00:40:37 And so this is on my new high-risk processor. And I'm like, fuck. And you're just starting to get some rapport with this fucking guy. And so another guy, that guy tells another guy or something. So two gyms do this. It's $150,000 in refunds that I didn't have.
Starting point is 00:40:56 No, because you know the one guy fucking calls the other guy and says, hey, this is what we're doing. And so, because we would sell and we'd leave and we'd go to the next gym. But they had all the customers and they built the relationship, which is a flaw in the model.
Starting point is 00:41:07 You know what I mean? Like I didn't get it yet. Mind you, there were other gyms that were totally cool, really appreciative, awesome, hardworking people. Like absolutely. We did 30 something launches, only two of them had that happen. But like those two were a big deal.
Starting point is 00:41:17 They were all my profit. And so I'm like, how the fuck am I going to come up with 150 grand in profit, not revenue, in the next 30 days? And so Layla, being the smart woman that she is, took all of her personal training clients and brought them online when she came with me to do this flying around the country thing. And she was making like $3,000 or $4,000 a month. And I was like, wait, tell me more about that thing you do. And she was like, it's all margin.
Starting point is 00:41:40 Yeah, I don't work that hard on it. And I was like, okay, you're the business now. I'm going to market and sell it. I'll bring the sales guys in and we're going to push your thing. So in like two days, I write a whole sales letter. We white label everything to queen transformation. And we start running ads and she starts closing a thousand bucks a day, all profit. I was like, okay, if we get eight in, we can do 8,000 a day minus ad spend.
Starting point is 00:42:01 That's, 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 going to call all the guys, all the gyms that were supposed to launch the next month. So we had, I think, eight gyms that were supposed to launch the next month. And I get on the phone with the first guy. I was like, hey, I'm getting out of the business. I'm selling straight to consumer, new chapter, sorry. And they didn't really pay me anything because I made my money on the sales. And he was like, dude, I just refinanced my house. You did this from a buddy of mine. I know you can do it. I need your help. Whole thing. And finally, I was like, dude, I'm not flying out there.
Starting point is 00:42:36 And he's like, fine. Okay. Can you just show me what you did at his place so I can do it here? And I was like, all right, fine. He's like, well, how much? And I remember just knowing he was broke. And so I just picked a really high number, the highest number I could think of just so he'd just say no and I can just like move on with my life because the other thing was working.
Starting point is 00:42:55 So I was like $6,000, which I know that sounds ridiculous now, but that was like, who would pay $6,000 for them, right? And he was like, 6K? And I was like, yeah and i was like yeah six thousand dollars us yeah and he was like oh done i just remember like looking at the phone you just know you made a shitty ass deal bro and i was like but i still i still get goosebumps
Starting point is 00:43:19 thinking about it now because i was like holy shit six thousand and i was like oh what car do you want because like yeah it's like if you have to think about it, you don't know it well enough. I was already asking for the credit card, but my head was like, what just happened? And so then I was like, shit, I got seven more guys to call. So I called the next guy, and I was like, well, now I got to make this damn thing.
Starting point is 00:43:35 I just promised this guy. Same conversation, how much? I was like, eight grand. And he was like, done. And I was like, next call, same thing, 10 grand, done. Next thing, next call, same thing, 12 grand. Teach them how to do it. I was going, next call. Same thing. 10 grand. Done. Next thing. Next call. Same thing. This is just to teach them how to do.
Starting point is 00:43:47 Yeah. I was going to license in my whole thing. So I was like, you'll use my ad. So like, we don't have to test shit. Like it's a video of me. It works. Doing it. Yeah.
Starting point is 00:43:54 Like every, like the whole thing. And I'd already built 80% of it. Cause it was my internal training. Like how I train my sales. Like all the sales training was done. All the nutrition. All the stuff was done. The only thing that wasn't to them was how I ran the ads in the landing pages.
Starting point is 00:44:06 That was the only thing that was like missing that I had to build. So anyways, in one day, I did $60,000 in like cash collected, selling to air. And Layla had been on the phone all day closing because she's still closing the weight loss thing. Like she's trying to like give us food. And she comes in and I was like, babe um was that a sale and she was like yeah i was like um i i think we might have had a change in direction and she was like what are you taught like and mind you think about how what she's been through this is you've already gone we're here
Starting point is 00:44:36 here here she's like she's like that's again i was like i think we're still in the gym business it's like i think i was just doing it and she was like what do you mean 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 i was like it made a lot more money than the other thing and i was like i think we could cover all the refunds with this and she's like how are you gonna get gyms i was like well i have 30 something just we already did the turnarounds i'll call those guys up they know what it works and so that's what i did and so i called all those guys up and uh sold almost all of them into the thing we did like 300,000 in profit. I think it was 215. I remember it was 215 that next month. And I covered all the chargebacks,
Starting point is 00:45:11 all the refunds, everything. And what happened now is that all those gyms that I did the turnaround thing with, they ran the play. And the average amount of cash they collected, new cash, in the first 30 days of using the system was $30,000. Preston Pyshko That's the average. Cullen Roche That was the average. So for context, everyone's listening, the average micro-engine owner, like, so that CrossFit guy down the street, he's probably broke that you know. Or that bootcamp owner, like I'm telling you right now, Preston Pyshko They're struggling. Cullen Roche Yeah. The average owner takes home $36,000 a year net income. And they work 80 hours
Starting point is 00:45:42 a week plus. You know what I mean? Like it's less than minimum. It's, yeah. Anyhow. So for them, this was life-changing money, right? And that was, the next month they could do the play again. You could relaunch your gym.
Starting point is 00:45:55 The problem that they started running into is they're like, dude, my gym's full. I want to sell more people, but my gym's full. And I was like, that's why I started a launch and go model because I had more ability,
Starting point is 00:46:02 I had more firepower to sell and market than I had square footage to sell into and so um from there and because it's the titanic community for micro gym owners and then the word of mouth just took off like wildfire we did 300 480 780 a million one two one five uh one eight two two, 2.5. That was per month, the next, like each month. Like I can still remember it. And we finished that year, which was really just the half of the year, because it was like January.
Starting point is 00:46:34 I'm still doing the launches thing. That got all fucked up. So like June-ish is when we switched the licensing. So we finished that year at 6.8 with 3 million in profit. And the next full calendar year we did after that was 26 million top line, 17 million EBITDA. Yeah. And it was just like, I-
Starting point is 00:46:49 You know what's crazy? It was nuts. You know what I hear when I hear this? Because obviously I'm thinking, like as you speak, I'm thinking, like, dude, you talking about like the credit card processing, like we've had those issues, the same, all of that shit. But dude, the main theme I think that people need to pull from what you just said for you guys that are out there and you tell me what you think, but I know this, my best shit comes
Starting point is 00:47:16 when my back is against the fucking wall, bro. Like, like the ability to somehow my brain, I'm sure yours must work the same way. When shit is really fucking bad, that's where the brilliance comes out. And, you know, sometimes it takes that pressure, man. Sometimes it takes that real pressure to really think and also push us into the positions that we're meant to be in. You know, that's an incredible story. I mean, one thing that I got a lot of, you just kept showing up.
Starting point is 00:47:48 Like you just don't fucking stop. You just don't quit. Yeah, when you got to pay back 150 fucking grand. Like what do you do? You got to show the fuck up and figure it out. Otherwise, like at that level, that'll ruin your life. That'll ruin your whole life. I'm even thinking of it from the standpoint,
Starting point is 00:48:01 like I have to keep reminding myself while you're talking, I'm like, he was fucking 26. Yeah. 26. He's 26. Like, and thinking, like, you know, the day and age that we're in right now in society, I can't think of another 26-year-old that would fucking be able to do it. I can't think of a 36-year-old that would, you know what I'm saying? Like, I'm like, what separates that mentality from just not fucking quitting?
Starting point is 00:48:24 What is the separator? I have two cents on it. Yeah, go ahead. Just for the record, I do think that there are some savages out there. Yeah, I agree. Who would murder it. You just don't really recognize. Look, dude, nobody knew who Alex Ramosi was when he was doing Alex Ramosi,
Starting point is 00:48:39 building Alex Ramosi. Nobody fucking knew. Nobody knew who Andy Purcell was when he was learning this shit. Nobody fucking knew. There's plenty of people out there right now that are fucking, especially with the technology that we have that are 19, 20, 21, 22, 23 years old that are fucking savage motherfuckers. And dude, this is why I go so hard on the technology. I'm like, dude, do not get yourself funneled into a one trick pony where, you know, because what you've done well, and this is this is a very this you're the example of the of what I try to tell these young young bucks is like, look, dude. You yes, you know, Facebook ads.
Starting point is 00:49:16 Yes, you know, e-com. Yes, you know, that's a tool. That's not the brand. yeah and if you can like what alex has done is leveraged his one tool into many skill sets into branding that now he's doing and we're going to get to that now do an amazing shit with but dude i love hearing that story i fucking love it because it's very very parallel dude very parallel man i think a lot of times the because it depends who you talk to but sometimes people talk about how like the hard times build you and i i'm not sure if i totally agree i think a lot of times the hard times reveal you like i think a lot of people have that savage that's inside and they just haven't had the
Starting point is 00:49:55 environment to pull it out to pull it out yeah and then give themselves evidence that it's there yeah but like to your point we were saying earlier um like i knew just on like whatever whatever the level that is that like i didn't know when i would be successful but i did know that i wasn't going to stop and like i feel like that i don't know if that comes off the way take it away no i think that's the truth you know i i understand what you mean yeah i just knew i like i was like i i just know that I won't stop that. I can commit to, I was like, I just won't stop. When I was growing up, dude, like when, when you were growing up, like as a kid, were you
Starting point is 00:50:34 ambitious around like making money and stuff like entrepreneurial minded? No. Really? Really. But what I did want to do is make my dad proud. Yeah. And so that was my, you know, driving force. And then, you know, I won't get into the nitty gritty, but basically, like, I think you either
Starting point is 00:50:52 have to have a really big carrot, which everyone talks about, like, finding your passion or whatever. And, like, I actually am pretty against it. And I'll make my point in a second. But, like, I think that most people who are, like, in the beginning of beginning of the game, you don't have a passion yet. Most people are like, man, I just love this one thing. But everybody has shitloads of pain.
Starting point is 00:51:13 Like that, like a lot of people that can't find passion, it's like, can you find pain? And they're like, yep, I got lots of that. I got anger. I got shame, I got pain, whatever it is. I'm like, cool. Well, the first rule of entrepreneurship is use what you got. And so if that's what you got, then burn that. Like you don't need to necessarily find this passion, like this beautiful carrot. Cause that to me, that's not what got me going.
Starting point is 00:51:32 That's not what got me going either. It was the mission of gym launch. Don't be broke, Alex. That was the mission of gym. Like people were like, what was the big vision? I was like, I had no vision. It was like, don't fucking lose all my money. Like that was the whole vision yeah and so um all that all that to say like for me i think it was like a away from fear which is like i i was i knew like in my bones that i would rather die than go back home like failed and then have to like basically do whatever i knew your option mentality your options my dad i just i knew that like it was the hardest thing for me to leave home uh because like my dad had a lot of influence.
Starting point is 00:52:06 And I say this in not a bad way. Like he just wanted what was best for me. It's strong Middle Eastern father. I had no siblings, basically no mom. So it's just me and him. And so like, imagine all of the authority power that you have in your life and all the love
Starting point is 00:52:16 that you have for your siblings, which is with one person. So like his opinion mattered a lot to me and he did not want 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 and didn't tell him until i was already physically gone um which obviously he wasn't happy about and like that kind of put a little bit of a rift in our relationship for a long time um but like i just was like i won't i just like i don't want
Starting point is 00:52:41 to prove him right i was like i'm not gonna let him be right about this like i will just keep fucking going and i almost was happy if we didn't talk. Cause I was like, it just gives me more time to keep doing it. Like I didn't want to update him because I was fucking sucking. Yeah. Yeah. Yeah. Losing money. Bro, I agree with you, dude. Like I think there's, I think, and this is, you know, I caught a lot of heat about this for a long time until people figured out who I was. But like, you know, when I started making content, like they got recognized back in like 2015, everybody thought it was fucking insane. Cause I would talk about like the dark side, right? Like, dude, like, listen, I'm going to shove it down your fucking throat.
Starting point is 00:53:14 Like, that's what the fuck I'm going to do. I'm going to fucking do that forever. Like, and I still, I'm still that way. Like, I just don't talk about it that way anymore. Like now when I see someone say oh you're not you're crazy like you're not going to build the next nike you're a motherfucker just sit there and watch like you've been watching for the last 20 fucking years give me another 20 and we'll see where the fuck i am you know what i'm saying like i i have no problem with that and i feel like the use what you got is what's gotten me here you know now i do feel like when you get to a point of where you have to you have to manage many humans uh hundreds of humans thousands of humans
Starting point is 00:53:53 there has to be a there has to be a mission and a purpose to motivate and and propel people in that direction like if i walked into my my meeting and i said motherfucker we're gonna fucking crush everybody like that was it like everybody's like yeah but like who like right like so you know yeah and i do feel like there's a i feel like you know there's a point to where that transitions right but but dude i totally agree and i agree with the uh with your perspective on the on the on the revealing too i think there's a little of both there i think the hard times definitely uh like dude that whole time right that did build you right bro because like look at all the reps and all the skills you learn right that you've carried through yeah and i i bet you know you
Starting point is 00:54:40 probably learn more during that time than probably any other time um i know for me that was true you know i learned more the first 12 or 13 years i was in business where i really got my ass beat 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 a lot of people don't put themselves in a position to ever truly know what they're actually capable of they quit too early or they're just too too afraid of the discomfort you know like like i think people uh tend to look at risk the wrong way like a lot of people say well what's going to happen if i do this and i think the question really is what's going to happen if i don't do this i've've always thought that way. That's how I always think.
Starting point is 00:55:25 Like if I get a big idea in my head that I think needs to happen and it scares me, my question is never like, what am I going to lose if I go after it? It's what's going to happen to me if I don't do it. It's always been that way. But I think there's, I think you look at it both ways. Yeah. You know, that entire story is so, it's so relatable to to what i've been through to be where we are it's just it's cool to sit here and listen to it i want to did the guy so the
Starting point is 00:55:55 the first the older gentleman that you did he like whatever happened to him nothing no he just stopped he just continues to do what he did then yeah bro sometimes you you got to chalk those things up too dude like because like you got to just chalk like because i've been burned like that too yeah and you know real talk like i'm not gonna say what i was about to say because like those people don't get away from me so but uh but you can't let it eat you up man can't let it fucking eat you up you gotta look at it as what did i learn yeah and uh when you when that when you fucking when you said uh i i i forgot what you said exactly but you said something about him not or doing this in the past or something like i'm like oh
Starting point is 00:56:46 here we go yeah you knew it was like of course yeah fuck it's brutal people are brutal dude yeah they don't give a fuck especially when there's large sums of money involved or perceived large sums of money you know and you can tell a lot about people too what they how they judge large sums of money like that guy's a fucking idiot because had he fucking had he stuck with alex this guy would be worth a hundred fucking million dollars right now or more yeah you know what i'm saying yeah or way more so anyway so what happened after this and to that point you know i had a a mentor that i was just kind of like talking my life through at this point which was like in shambles. And he was like, all you do is do right by everyone. And then he's like, the only way you can walk out of this is by knowing that you don't have any strings in the back of your mind of something's going to come
Starting point is 00:57:34 back. He's like, you have to write every one of those refund checks. You have to handle every charge back. He's like, pay every debtor or whatever, everybody you owe. He's like, because then you'll walk out clean. He's like, it's the only way you can, you can, you can get out of it. And so I, that's, that's what we did during that. That's when I, you know, gave Layla the checkbook and all that kind of stuff. And then I had a different mentor was actually my high school, I was 15 years old, but it was always just like less than that. He, cause I was like, I, I'm sure like many of us, like when you're younger, a little angrier, right. Let's get really, uh, pent up about some guys who I just thought were like douchebags to me and i was like man i can't wait to come back for our 10-year
Starting point is 00:58:08 high school reunion i was like i'm gonna show them like blah blah and he's like no you're not yeah he's like if you go up to somebody at a 10-year high school reunion you say like look what i've done motherfucker he's like they're gonna be like you've been thinking about me this whole time yeah he's like he's like just remember this he's like success is the only revenge that's right and like he's like and all you do he's like is you just become bigger than them He's like, just remember this. He was like, success is the only revenge. And he's like, and all you do, he's like, is you just become bigger than them. He's like, so that who they are in reference to you shrinks into irrelevance.
Starting point is 00:58:33 He's like, you don't crush them. He's like, you shrink them in comparison to you. And that was like, whenever I had these hard situations like with that gentleman, the goal was like, I'll just be so big that he will become irrelevant. And so that's at least how I handled that. Well, dude, I feel like it's funny that you bring this up. I just had a couple of buddies over at my house a couple of nights ago. And DJ was there.
Starting point is 00:58:58 And we got to talking about this. These are two dudes that are pretty successful guys. And we started talking about, I have a theory about this. And this is my theory. It goes along with like what your mentor said to you about doing the right thing. I feel like that. Yes. When you do the right thing. I feel like you continue to win and you continue to grow. But that doesn't mean that all the things that happen during that
Starting point is 00:59:25 don't hurt and don't fucking like fuck with you and um but what i in my case in my in my life in my experience is that even when because dude like usually what's weird from in my experience is that it's been the people that i've done the most for or the extra things for that have come back to fuck me and um that really hurts like that really fucks you up dude because like when you're trying to do extra shit and you're trying to help people or you're trying to like you know give people a hand or break or you know put people on a on a faster path um nearly 100 of 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 to drag my name through the mud or some bullshit right it's never them it's it's fucking always you know everybody else which is the reason they're in
Starting point is 01:00:18 the situation the need for help in the first place this is why i've started to recognize that saving people from themselves is not actually the ethical move. The ethical move is to let them fucking learn their lesson so they don't repeat the lesson over and over and over. But I do believe that when you treat people right and you do the right things, that eventually you, not eventually, I believe you consistently continue to win. And those people do, they shrink and they go away and you'll talk about them, you know, three or four years or five or 10 years or whatever it is once in a while, because they'll remind you of all the good shit that they actually taught you, you know? And that's something that a lot of you guys should
Starting point is 01:01:01 really think about because a lot of people that are in business, getting taken advantage of when you have financial means is a real thing. It's a real thing that happens and people target people like that. And when you have a big heart like you do and I do, it's easier to be taken advantage of because the pain that we have to feel to help them in a massive way is not very much. My relative, right? Like someone needs five grand. Five grand doesn't hurt me, dude. It changes their life.
Starting point is 01:01:38 But those people quickly forget what the fuck you did for them. And then they expect it. And that seems to be the scenario in society these days. And were just talking about i was telling him how we were just talking about this at the house the other night about like i'm like dude you know like for me where i'm at and this is real shit like this is i mean this i'm not really interested anymore and going through that process of like developing a, like more of a circle, like, um, I think you and I were the ones talking like the six month probation period. Yeah. Right.
Starting point is 01:02:13 Uh, you know that, you know, and what Alex and I were talking about, you tell them your, your, how you do it. Um, we'll just like you, you're like, we'll see how things go. Yeah. I mean, that's basically for like six months we were talking it's like dude as long as no one like violates the trust or like ask you for shit then they can like you could start to build a friendship yeah because dude a lot of people come along and you know they get i guess hot and heavy with friendship very quickly yeah and then you find out that there's a reason for it. And it's not because
Starting point is 01:02:45 they want to be your friend. And unfortunately, this is a reality of becoming a successful person. But one of the things that I think you should understand, because a lot of you guys, you get that first person that takes advantage of you or that first person that does you wrong. What I think you should realize is, A, you just heard Alex talk about how he got fucked over by multiple different people, but those things forced him to learn all of these skills. And in the process of going down this with good faith, he was able to develop his sales skills. He was able to develop personal skills. He was able to develop his creative thinking skills and become much more successful because of it. So whoever,
Starting point is 01:03:30 whatever it is you're dealing with out there, remember there's a lesson in it. And, uh, also remember that if you continue to do good and you continue to do, do right. Um, I believe that those people win. I like all the people I know that I'm friends with that are big winners financially. They, they are people who go above and beyond for people all the time and usually end up getting fucked over a lot but they continue to do it and i believe i don't know if it's like karma or the universe or what it is but somehow you keep being rewarded when you live like that even though it's painful yeah it's a painful way to live because it would be easier to say fuck everybody yeah i'm not giving you shit. But dude, I still, even though I've been fucked over so many times, I still give when I see opportunities to fucking
Starting point is 01:04:12 help. I have so many thoughts on this. So if you think about, people understand video games. So it's like if you were to make, if you're playing a video game and the way to win the game was to make the most successful character, you would have probably a really character-driven human being in terms of they'd be patient, they'd be hardworking. You think about all these traits that they would have. They'd probably be tough emotionally, et cetera. All right, cool. That's the character. And that's the person who's going to be really successful. We can all probably agree on that. Okay. How do you create someone who's patient? How do you create someone who's tough? How do you create someone who's tough? How do you create someone who, right?
Starting point is 01:04:46 So all of a sudden, if we had to then engineer the game in order to boost those points, 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 time so they could become patient. And so to the point that you made
Starting point is 01:04:56 about these people who become really successful have these traits and also share the fact that they've been through all this shit. It's like, well, they got the trait from the shit and then the trait was the ultimate output of the experience and that trait then made them super successful that they didn't have earlier because like you know what's crazy if you really think about that and break it down every time you do get fucked over you actually end up being the person that won yeah on a long enough time right yeah you end like the person with the highest
Starting point is 01:05:23 character wins on the longer time horizon. But on game theory, they've studied this in terms of givers, matchers, takers. I don't know if you're familiar with that. But basically, a matcher is somebody who's tit for tat. You do something for me, I do something for you. You've got takers who just always want to take from everybody. And you've got givers, right? And so they basically adjusted how much giving versus taking a bot hat in an exchange and just played it out. And the perfect amount of give to take is an 8 out of 10 giving to take ratio. So if 10 out of 10 giving is like you're a social worker, you get walked all over, you never draw the line. The one takers who just take for everybody, they win really quickly and then they lose because they screw very long. Right. Because they screw everyone over. They can't create any long term. They don't get the
Starting point is 01:06:07 compounding effect of doing business over and over and over again with people. And the matchers and takers together never get the opportunities that the givers get because the givers give first. And so there's so many more doors that get open from an opportunity perspective by giving first. Yeah. And so like a lot of like in the tech world, they talk about surface area of luck. So like people are like, ah, like that guy got lucky. You can actively increase the surface area, the likelihood that you become lucky by giving to more people.
Starting point is 01:06:35 And then all of a sudden more doors are open because you knocked first. Yeah. It's practical. Right. It's really practical. Yeah. And so like, yeah, I love that dude. I had a lot of thought on that. Yeah. Well, you know well you know and and it it's an incredibly
Starting point is 01:06:47 painful way to go through life dude because like i'd be i'd be real like at this point where i'm at like i was this is where i was getting at is like i'm not interested in going through the uh i'm like the new network of and then trying to figure 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. Like, I don't want to do that anymore. Like I'm not interested in it. And a lot of people get upset with me because I don't really let people around me. They, but dude, you got to understand I've been doing this for 24 years, this exact thing. I've been getting my ass beat by motherfuckers that pretend to be my friend over and over and over again. And I'm just over it it like now i just don't let people in it's just
Starting point is 01:07:29 what the fuck it is like if you're my friend now you're my fucking friend these dudes here these are my fucking friends you know i'm saying like a couple dudes from the internet that you know you and i know who they are those are my friends outside of that it's my brother it's my dad it's my wife and that's fucking it that's fucking it. That's fucking it, man. Logic has a famous clip where he was talking about how he stays out of trouble. And he's like, here's it is real simple. I don't fuck with anybody. I don't fuck with anybody. And I mean it.
Starting point is 01:07:54 I don't fuck with anybody. Like throw that shit in the show. It's a great clip. I actually have it. I'll send it to you, Joe, because I remember I watch it a lot. And he's like, I'm not playing. I fucking stay at home. I play with my dog. I have my girl lot and he's like i'm not playing i fucking stay at home i play with my dog i have my girl over and that's fucking it i don't fuck with anybody and
Starting point is 01:08:09 i'm like do you feel like it's getting i don't say harder but you have to work harder to stay quote unquote normal as your no no because i don't fuck with nobody yeah i don't fuck with nobody like at all nobody so it's very simple i stay at my house and it's just me and my homies my fiance my my little puppy i just got and i don't fuck with nobody i don't go anywhere i don't go to parties i barely go outside like literally i really don't go outside that much just because i don't i don't fuck with nobody that's smart dude right there yeah it's a smart dude and uh anyway i love that whole that whole take you have on it because that really helps me to see that it is practical. It's not just this emotional beating that I take over and over. People give the most
Starting point is 01:08:51 value win the most in the long run. It's just that they have to go through. And that's why those two theories kind of coincide where it's like, you've got the character traits that create the success, but the math behind it is like, you just increase the surface area of your luck by giving to more people. And in so doing, let's say if you give to 10 and you get screwed by two, you get, let's say the matcher was going to get five of those opportunities. It's just that those extra three opportunities where you didn't get fucked, that over years and years and years, that's the thing that compounds and then just makes you unstoppable. Yeah, absolutely. But people are afraid of getting taken advantage of. Or the first time they do it, they just quit.
Starting point is 01:09:25 Yeah, exactly. Yeah, for sure. The first time it happens, it's a price. It's the cost of admission. Yeah, it's the ticket. That's right, dude. It really is. And also, a word of advice is that if you are one of these people that helps a lot of people,
Starting point is 01:09:39 and then you happen to get your name drug through the mud for any reason, don't expect them to stand up for you because they won't. And I've yet, the only theory that I've been able to come up with on this, because it happens to me once in a while, about once a year, fucking once every two years, somebody fucking drags my name through the fucking mud, and all the fucking cockroaches come out. But yet, none of the fucking people that I've actually done good shit
Starting point is 01:10:04 say a motherfucking word about it and i figured out why the reason why is because they're embarrassed they needed the help in the first place and they don't want to expose themselves for having needed the help that you actually offered them which i think is fucked up i think that's fucked up i think if people do good shit for you and you see people fucking dragging that person's name you should fucking tell people what the fuck they did and be like you know you take whatever the fuck you want but this is what actually happened and that's just my two cents on that because it gets fucking annoying but whatever dude anyway what's next i'm just saying like dude it's like doing the right thing like when people are good to you tell people that they're good people when people aren't good to
Starting point is 01:10:41 you you know fucking it is what it is don't do shit with them anymore but like the common decency and i think a lot of it has to do with the internet like everybody's protective of their brand now like most of y'all don't have a brand like you really don't you gotta fuck a couple thousand followers you think you got a personal brand nobody knows who the fuck you are and nobody cares who you are so like dude do the right thing and actually stick up for people or tell people the truth or this or that and the reality is those people continue to look out for you like it's it's very simple and most people will also forget like let's say somebody got came out of the woodwork and was like no man andy helped me out when i really needed it yeah andy will remember everyone else will forget about the instance anyways yeah but you get like it's like
Starting point is 01:11:24 the evening the score like i don't like to owe people shit yeah i don't either right yeah i don't owe a motherfucker anything there's not a motherfucker listening to this fucking show there's not a motherfucker on this planet that come to me right now and say i owe them a shit of fucking anything well you had the one guy who said you uh who said you uh he long he gave, what, like 60 grand or something? Into the lobby, you remember that guy? Oh, fuck, yeah. That's different.
Starting point is 01:11:49 Oh, dude. Yeah, I had a guy show up here who, and by the way. I felt bad for him. I did. I felt bad for him, too. Hey, dumbasses, realize that I'm not soliciting you for fucking Bitcoin. I don't even do this shit it was bad i run real companies with real employees and we do real shit in real life like i will never
Starting point is 01:12:12 solicit an investment from you you will never get a dm from me asking you to fucking go in on this deal i don't that's not what i do we had this guy this poor guy dude and he he dude it made me feel terrible yeah he shows up here one day dude and he's like yeah man like somebody pretended he knew that at this point like somebody scammed him and he's like somebody pretended to be you and took 80 grand from me bro it's all i fucking had yeah and like i like it was the most it was the saddest most awkward shit that i'd ever been a part of because i'm like dude like do you really think like i'm and we're standing in this building and i'm like dude do you really think like look around here like do you think i'm asking people for fucking money dude like i'm not soliciting
Starting point is 01:12:56 money dude and um he's like well it makes sense now but i just wanted to believe it so like for all of you guys to get those messages bro know that those people are full of shit because i don't even do that i don't even communicate with dms outside of like five people so but it was sad dude and that goes double for anyone who's listening from my audience yeah 100 because we're because we're we invest yeah so it's like even so we have hundreds of accounts that are like i've got a deal or like hey i'm doing this crypto trade or this forex thing and i'm like guys yeah like we get, we get it all the time. So I'm not damning you just FYI. Yeah.
Starting point is 01:13:30 Me neither. I'm not, if you get six or Moses or six Andes that automatically follow 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 as fuck.
Starting point is 01:13:40 Cause I could, this dude was like really fucked up over it. Like you could tell it was like his whole yeah it made me i still feel bad it just makes me feel dude this is like this is my whole bias against instagram and facebook and the internet as much as i love the tools that we have both used and utilized the fucking dark side of it is just so shitty dude yeah like you're so fucking predatory and and disgusting but that's a whole nother story. We could talk about that for a fucking day. But yeah, man, I like that.
Starting point is 01:14:11 So how did you get into where you're at now? Yeah. So Jim Walsh had started scaling up. Then we started a supplement company, Prestige Labs. And the exchange that I had with you, which I really do want to hit on, even though your audience has probably heard it, I want to tell how it impacted me.
Starting point is 01:14:30 Prestige Labs was our supplement company that we sold through that distribution base of gyms. So at that point, I think we, I think at that point, I think we had just like, just under 2000 gyms that had licensed and stuff. Now it's like 5,000 plus. But at that point, we launched it in 2019.
Starting point is 01:14:44 And then in 2020, we launched our software that basically just worked gyms for brick and mortar businesses. Originally it was for gyms, but we realized it actually worked for any kind of service business like hair salon, whatever. Yeah, any kind of foot traffic business. Yeah. And so that's kind of the two kind of spinoff businesses that we had from Gymlaunch. In 2021, we sold all three of those businesses. So Prestige Labs and Gymlaunch, we sold together to American Pacific Group,
Starting point is 01:15:12 which is a private equity firm out of San Francisco. And then I sold that for 46.2 million. We still have 33% of the company. And then the software, we did an all stock deal with a much bigger strategic partner. We had a better monetization system than them, but they had a way bigger distribution base. And so they're fixing to sell it in like three or four or five years. Yeah.
Starting point is 01:15:33 So you sold 33 on that? No, I have 33. Yeah, that's what I'm saying. I sold two thirds. Yeah, yeah, yeah. That's good though. Yeah, yeah. No, I mean-
Starting point is 01:15:40 Yeah, your second payout is going to be more than the first one. Yeah, because they're putting a big tech play. They're building a CRM out and then they're going to own the payment processing for all the gyms. And that's going to like murder it. Yeah, I fucking love it. And that's their playbook.
Starting point is 01:15:51 And I was like, you know what? I'm not that guy. Maybe I am now, but I wasn't then. And so it was like, cool, run that play. I want to do this thing. And that's when in 2020, we did our first personal investment, which was that photography studio. It was a single location. Guy somehow made his way on my calendar. Don't do this. I get it. Yeah.
Starting point is 01:16:14 And you can read a person. I could tell how he was talking, the way he was carrying himself, all the stuff. I was like, this is a nice guy. He like i'm so sorry i did this i did like he's like yeah blah blah i was like but i read your book i did everything that was in the book i took my photography studio from like 400 grand to 1.6 million a year like yeah so you're so you're willing to give a little bit for guys like that right when he starts like and like i knew that he wasn't he wasn't pulling it out of his ass like i knew he'd he'd i recognized his name he had me a couple times of like so, yeah, so much better. And so anyways, turns out he has this, uh,
Starting point is 01:16:47 photography studio. It's enchanted fairies. Um, and I'll tell you the story cause I think it's really cool. Enchanted fairies. Yeah. All right. Let's give him a plug.
Starting point is 01:16:54 Enchanted fairies. What's up? He had a daughter who got told, uh, at school to shut up and she stopped talking for like months. Holy shit. Yeah. And so what ended up happening was like, they tried to, all this different stuff trying to talk and do it and so what they
Starting point is 01:17:10 did was they um set up these sets because they're photographers right of how like of a storyline where she is the hero of her own story and she finds her voice that's like kind of like a and so they made it to a picture book read it to her every night she started talking again and so i was like wow that's really cool because like kids like everybody yeah stories are what influence the way we see the world and so they had a visual but it was like not just any story it was a story with her pictures of her being the hero yeah and they don't have a third of their profit the charity every year towards kids like they're're good people. And so anyways, he told me this whole thing.
Starting point is 01:17:48 And I was like, yeah, I'm in. How can I help? And so we invested in the company. And now we have 38 locations. That's fucking awesome. 30 months later. And so yeah. So one location. Yeah.
Starting point is 01:18:00 And how many months? 38 months? 38 locations. I think it's been 30 months. It was June of 2020. So whatever that is until now. That's amazing. Yeah.
Starting point is 01:18:09 And so like, that went well. That guy's holding on to his fucking hat. What? I said, he's holding on to his hat. I mean, and it's been,
Starting point is 01:18:15 it's like seeing, building that with them has been so cool and awesome. And then we're like, man, let's do another one of those. So we did, we did two more deals that year.
Starting point is 01:18:24 And both of those went really, really well. Yeah. one of those. So we did two more deals that year. And both those went really, really well to the same degree of growth as that one did. And so that's why this is the topic I thought would be, there's two different ways. One, I want to talk about the Prestige Lab thing because I learned a ton from you about all the things I did wrong. I think it'd be useful for the audience. But in terms of the reason we ended up selling was because I enjoyed that so much. And you probably have more patience than I do because I felt like I'd been in the gym
Starting point is 01:18:52 industry for a decade. And I was like, I don't want to be the gym guy. That was my thing. I don't want to be the gym guy. You know what keeps me here, dude? It was the perspective switch. It was when I went from... So like, dude, it's happened for me in 2014.
Starting point is 01:19:09 When I went from someone who was trying to become wealthy, which at this point I was at that time, um, to someone who was trying to help our own team and our own people, like it became mission focused. That's where like, dude, I love coming here, bro. Like I love, like, do we have, we have, you know, 10, 12 people a week that walk through here that have lost a hundred, 200 pounds changed their whole fucking life. I don't know anywhere else where you can do that. Yeah. You know, and you get to talk to these people and, and dude, I'm here with all these people who, who care about that. Yeah. You know, it's just a cool environment to be around and I fucking love it. And that's what keeps me in it. But I do also thoroughly enjoy the small business phase of growth. Like going from one to many.
Starting point is 01:19:50 I fucking love that. Yeah, it's the rocket ride. I miss that shit, dude. Yeah, because that's what, I mean. Yeah. This is a different game than that. You own 38X now. Like, I mean.
Starting point is 01:19:58 Yeah, yeah. Over. It's not comparable. Yeah, right. It's not a thing. Yeah. We went through the small business. We went through the medium business.
Starting point is 01:20:09 Now we're learning the large business, which is cool because i'm learning new i'm learning new things right uh i never ran a fucking company this big um but dude i'm telling you man like my sweet spot is right where you're talking about i fucking love that shit i love i love the helping people go from like like i got a buddy of mine, Alex Spinoza, who you may recognize him from the internet. He's all over the internet. He's got a good personal brand too. He started with us in RTA, you know, 2018 or 19 when we started. Dude, he sent me um if we go if we go to my house later on i'll show you but he sent me his millionth dollar that he made so like you know how most people will say oh i got my first dollar yeah he sent me his millionth 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 garage which is where i spent a lot of my time yeah and
Starting point is 01:21:02 then uh he sent me a he sent me a video message just the other day um it's just so fucking cool dude like he sent me a dollar a while ago this is a couple years ago sent me a message the other day now this guy at this point in time like he's very conservative he's not like a guy that makes a million bucks goes and spends it right but he you 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 this car that he built before that he built himself and he was talking about it and then he's like and dude and then today i bought this and he bought a fucking brand new mclaren and like bro i was just like this is the fucking shit like this is this is the shit this is what i love doing and whether it's with you with changing their life with fitness or weight loss or whether it's
Starting point is 01:21:48 economically with entrepreneurship, that's the shit I love. I love that shit. So I'm a little bit jealous about what you guys are doing. Yeah. I mean, watching someone's perspective shift around the world, I think whether, like you said, weight loss, even some people were religious and they get people into that. Or economically, when you see, I think at the end of the day like the reason that i fell in love with leo is that she saw the world the same way as me and i felt like that was really rare
Starting point is 01:22:12 like i was like so you see that too right like this guy's a total and she's like yeah yeah total piece of shit yeah okay cool so you see that too i was like okay oh yeah they're only doing that not because they like you they're trying to get this up so i'm just like yeah i was like i just like i felt like this huge weight where I'm like, I felt alone. You're not the only one. Yeah, exactly. You're not the only one that thinks like that. Yeah.
Starting point is 01:22:30 That's a big, that's a big thing I'm thankful for, for the people that listen to my show. Because I know, like, like, I know I'm not everybody's cup of tea. I'm very aware. Like, I'm very fucking aware. You guys don't have to remind me. I know. I live my life this way the whole time I've been alive. But the people who consistently listen to the show
Starting point is 01:22:47 and don't like, like they don't think I'm crazy. You know what I'm saying? I fucking love that. It's one of the things I'm most thankful for. That's why I continue to do the show, honestly. Cause like some of the things aren't fun to talk about. You know, coming on here every day and talking about what the fuck is going on
Starting point is 01:23:00 with these crazy motherfuckers in the world. It wears you out. But finding people with that consistent worldview, bro, and that perspective is fucking massive, dude. And to the audience, I mean, just to give you some confirmation, if you think differently than your immediate family or your friends or whatever your hometown is,
Starting point is 01:23:18 one, you probably don't want to be normal. Because if you take what normal means and put it across all aspects of life, it means that you're going to die at 74. You're probably gonna be overweight. You're going to, you know, be divorced. Uh, you're going to not really achieve anything that you want. Like that's normal. And so it makes sense that you would be the odd man out because most people live that life. And so like, that was something that gave me a lot of permission to be me, which was not normal in a lot of... And that's okay. Because I mean, ordinary versus extraordinary means that you are not. And so if Andy's sharing stuff on here that are different beliefs about the world,
Starting point is 01:23:56 then it would make sense. Because if he's in the 0.001% of earning potential, then it means that he sees reality differently than you. And I think it's the same reason that people who are billionaires can lose it all and then get it right back. And the reason that you can't is because you don't see reality clearly. Hence the name of the show. You know? I didn't even connect, but like, yes. It's about being a realist.
Starting point is 01:24:18 It's distortion. Yeah. It's moving the emotion outside of the facts and making decisions based on the facts. Yeah. And, and I feel like that's a tool that has become less and less and less common with more and more and more internet and more and more and more, um, you know, propaganda in terms of,
Starting point is 01:24:36 uh, making people believe that their feelings are what actually matter and how you should make decisions in reality. That's not, especially in business, that's not going to get you very far. It's going to get you should make decisions. In reality, that's not, especially in business, that's not going to get you very far. It's going to get you broke. Yeah.
Starting point is 01:24:49 So I appreciate that, by the way. Thank you for that. That feeling of loneliness makes you normal in the right rooms. Yeah. Rather than the room that you're in. That's exactly right. Like, dude, you get around people, you know, you know, you know how it is.
Starting point is 01:25:07 Like, dude, and that's something for a lot of you guys listening too. Like, you may never have been in those rooms, like ever. But I'm telling you, like when I go in a room, none of the motherfuckers think I'm crazy.
Starting point is 01:25:16 Yeah. Real talk. They might think I talk too much, but they don't think I'm crazy. Also, the many losses that you're probably going through right now, if you're in your rocky cut scene.
Starting point is 01:25:26 Like, if you remember that video game thing, it's like, well, then you're just, you're tinkering away, you're chiseling away at the character traits that are going to make you successful. And in those rooms that Andy's referencing, like, I don't know, I'm trying to say this the right way,
Starting point is 01:25:37 but like game recognize game, and I don't mean that in an egotistical way, but more so like how the other people in that room see the world, the things that we're talking about giving earlier, like all the guys who I know are the wealthiest in the world will do, will bend over backwards for you. You know what I mean? Yeah. It's completely the opposite of what the perception is. Yeah. The perception is everybody that's rich is a piece of shit. My perception of it, now that might be true for people that inherit their money.
Starting point is 01:26:06 But my perception is people who have actually built their own wealth are usually these are the fucking nicest, best people and that's the reason they became wealthy. They had to develop those ways of getting along with people over and over and over again because
Starting point is 01:26:22 if you don't have leverage in the beginning, which you don't, you have to overcompensate by being a great person, opening more doors, by giving first and getting screwed. And if you think about it that way, where it's like, okay, I have to give to lots of people for an extended period of time, and I have to stomach the fact that I'm going to get screwed. You're going to get screwed. You have to stomach it.
Starting point is 01:26:43 But if you realize that that's the necessary cost in order to develop the trait and open the doors that you don't get screwed, then you just have to see that as the ticket. And I think that for me, that was a very big unlock for realizing that when I got into those rooms, I was like, oh, I'm not the only person. It is the ticket. It's the ticket. Getting your ass kicked and getting screwed over, over and over and over again, continuing to show up, continuing to push through, continuing to get creative and figure out the solution. That is the price of admission to that higher level that you're trying to build. It's not the abnormality.
Starting point is 01:27:15 It is the norm for that level that you're going for. And while it may feel like it's abnormal, because it is, right? And the normal human being kind of keeps themselves. They're not overly generous. They're not overly generous. They're not overly greedy. They might give some to the church. They might give five bucks to the homeless guy or whatever. That's not what we're talking about.
Starting point is 01:27:34 We're talking about when you have the means to make a difference and you continue to use your means to make a difference, there's going to be 80% of those people that don't appreciate it along the way and that fucking sucks it really does suck and i'm not looking for a tinker tape parade or anything but just like i don't know don't pile on you know like don't make it fucking harder like i mean and and unfortunately but fortunately unfortunately and fortunately uh it fucking hurts but fortunately it teaches you a whole lot. And I truly am bought into that mindset, you know, because DJ asked me, you know, we're
Starting point is 01:28:10 together all the time. And he, you know, he sees this a lot. He sees me do things. He knows all the secrets. Like he knows the things that I've done and then sees those people do those things that aren't good. And he's like why the do you do that bro and i'm like well look at my life dude yeah like i'm doing something right
Starting point is 01:28:29 so like i really don't want to with the recipe like it's going well yeah well guys that was part one uh when you guys come back we're gonna finish up part two so stay tuned guys we'll be right back yeah we're from sleeping on the floor now now my jewelry box froze Fuck a bowl, fuck a stove, counted millions in the cold Bad bitch, booted swole, got her on bankroll Can't fold, that's a no, headshot, case closed

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