The Game with Alex Hormozi - ”How to serve caviar when your customers are satisfied with cheese & crackers." --and why you aren't making as much money as you want..." | Ep 66

Episode Date: July 10, 2018

"They don't love their customers." Today, Alex (@AlexHormozi) discusses the importance of having a game outside of just making money and how deeply caring for your customers can lead to success in business. The concept of "weapons-grade compassion" is introduced as a way to win in any industry.Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned on his path from $100M to $1B in net worth.Timestamps:(1:11) - Lack of purpose hindered financial success.(3:43) - Love customers, serve better, avoid blaming.(6:01) - Care deeply about customers' lives and success.(9:44) - Constantly improve and serve customers to stay ahead.(11:46) - Persistence alone won't lead to financial gains.(14:13) - Combine compassion with strategic thinking for the next level.Follow Alex Hormozi’s Socials:LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition

Going on everyone, happy, happy Monday. Hope you guys are having an awesome week so far. I know it's July 4th. So for those of you who are just, you know, enjoying the relaxing week, then by all means do that. But this one just came into mind. And so I literally just ran over here and I was like, I'm going to make this video.

So I'm calling this, what game do you want to play? And the reason I wanted to tell that is that a lot of times, Tony Robbins wrote a book called Money Master the Game. And one of the observations that he made was that billionaires and the wealthiest people in the world see money as money. a game and we as humans a lot of times see things as games and so the reason I'm asking what game do you want to play is that a lot of people don't know what game they're playing and I've made videos about the infinite game or the finite game that people get into but I wanted to talk about

two different games today one is the game of your gym or your fitness business whatever right and then there's the second game which is the game outside the game right it's the game of what do what's up Billy the game of what are you going to do once you make this business that you're wanting to make, right? And the reason I wanted to highlight that is that for me, one of the reasons that I didn't make as much money as I wanted to make for such a long time was because I only had the game that I was playing, which was the game of the fitness business, was the gym business, was, et cetera. And I had no actual reason to make more money. So I had this desire to make more money, but I didn't have a real reason to make more money. I don't know if that

makes sense. So if right now you're getting by and you've been getting by your whole life, you need to have a reason to make more money. And so, and a lot of times it has to be something that's bigger than you. I know this sounds like super like Tony Robbins, you, whatever, but like, it's true. And the reason that Tony Robbins says, like, you have to fall passionately in love, like almost romantically in love with your customers, is that if you aren't, then there's no more reason for you to make any more money because you're already satisfied. which is why so many people are able to persist month after month after month and barely make it and barely make it. And if you look at your past and you're like, holy cow, like, I've barely made it every single month. But you always make it, but just barely. It's because you had no other reason to make money. Now, here's something that's interesting. The people, the guys who are, and this is just like fact, the people who are married, who have lots of kids make more money because they have to, because they have to, right? And so that's the first level of the game. It's like, I have to make this. this and make enough money because I have this, this has to happen. And so they think that way.

But I can tell you that after that caps out, then those guys stay in that next lane, right? And so the only way to unlock this, and I'm being really real with you and stuff like, this may not resonate with 90% of the people watching this, but if it does resonate with you, I hope you take it to heart. The reason that gym launch has exploded in is is phenomenally more successful than my gyms were, right? I mean, just buy revenue like it is, is because I love gym owners. And I love gym owners more than I love weight loss customers, right? And what's really weird about this is that because of my love of gym owners,

I have actually fallen back in love with weight loss customers because I know that if I can help gym owners better serve their weight loss customers, then I can help gym owners, right? And so it's this realization that I've had that like most people and most guys who are girls, most people who are in the fitness industry, got into it because they had a transformation. and then it was like a skill that they could use. And then one way or another, they started doing part-time and they're like,

hey, maybe I'll follow my passion, I love fitness, blah, blah, and they get into it. Right, now they're in the business. But a lot of them don't actually love their customers, right? It's just like it's their business. And 95% of people, that's their life. It's just the way that they pay their bills, right? But they don't actually love their customers.

Like, I know this, like, I'm trying to not say this in a repetitive manner, but like, if you can unlock this, I'd had a huge, I've had a huge, I've had in time to talk about this. at Legacy, and we called it weapons grade compassion. But if you can have weapons grade compassion and you literally think, like, I have to own every part of this client's life in terms of like, I have to take full responsibility for their success. You think about things differently.

You don't look at what your competitor's doing. You're looking at your customer and that's it, right? That's it. And if someone out, like, and the reason that looking at your competitors will never work is because they're not going to ever send you money. Your customers will, right? And they're like, your competition will never be loyal to you, but your customer will. And so like if you can fall back in love with your customers, you can find, like,

you will find a new pool on your life that will be something that's much bigger than you, right? Much, much bigger than you. And like, I have no need for the amount of money that comes to us. I'm being really candid. Like, I have no need for it. Like, I try not, like, the amount of money that we make is, is insane. It really is. And I'm saying this not in any way to brag, But I'm saying it because the only way that it would be possible is if the game that I started playing was not the game of how can I make my business and make more money, but it's how many people can we serve. How many more gyms can we help? How many more gym owners can we say? How many, how many more families? How many more people can be employed as a result of the systems that we have? Because once you satisfy your initial needs, unless you have a game outside of that, there is no other game, right? That's it. And you keep and you keep barely getting by. You keep barely getting by, right? And then if you have a a couple of kids, then you keep barely getting by, but a little bit more. Because you have to. You have no choice. And so the flip is to figure out how you can have no choice to serve your end customer at a way

that they've never been served before. Seth Godin said, serve caviar when everyone's satisfied with cheese and crackers, right? That's when, and every industry is able to be disrupted. Every single industry is able to be disrupted. The only reason that we grew as fast as we did as big as we did is because this industry is ready to disrupt it, but so is every industry. because customers, believe it or not, I've been just eating cheese and crackers because that's what everyone else does. And everyone gets into the industry and they look at everyone else's doing it and they start doing it. But no one actually starts with the customer and says, like, how can I reverse engineer their experience? How can I make this person's life better?

Rather than always saying like, man, my customers, like, they try and get out of contracts or like, man, they can't follow a simple meal plan. Like, how can I'm, like, you have to reverse me like, how can I make this easier? Because you don't get better by blaming anyone, right? And so having that level of compassion and like, I don't know. what the secret is. I don't. Like, I love gym owners because I am a gym owner and, because I, like, y'all are my people. Like, you are me. Like, I, like, I feel you. Which is why, like, one of the big focuses that we're going to be doing in the next six months for, for our people is like, okay, we've mastered acquisition. Like, we know how to build EFTs. That's why I've, I've already

posted things on like, the average gym is out a quarter million dollars a year. Average gym adds a quarter million dollars in revenue working with us. Average. We know the acquisition funnel. But how can I get every single gym that works? with us to over deliver to their customers to such a degree that like they become remarkable like that people leave and they feel compelled to remark about it like we still have more than half our business that's word of mouth and I didn't have that when I had my gyms my half my business was not word of mouth it was based on marketing and sales and be straight up with you it was and I'm only sharing this with you because like I've only discovered it now in this business and I'm

trying to hopefully pass on a listen that like hopefully you'll take and use for your business If you can unlock how much you can care about your customer, you will win. And I promise you will never think about whatever many gyms are in the area. I don't think about how many the gurus or how many other agencies or refsure. I don't care. Like, it doesn't matter. The only way that they will win is if they out-serve us. Period.

It's always how it is. Hey, if you're a return listener and you have not rated or reviewed the show, I want you to know that you should feel absolutely terrible about yourself and everything else in the world. I'm kidding. But it would mean the absolute word to me if you guys would go ahead and do that. that you don't even have to pause the show you can keep listening and you can just do it with your thumb right now it'll take you less than 60 seconds and like I said the only way that podcast grows through word of mouth and this is you joining hands with me and helping as many entrepreneurs as we

can because no one is coming to save us it's just us all right so please go do that now and let's get back to the show all right like here's a concept for you that's kind of interesting soul cycle has no eFT zero the average soul cycle and they're privately owned the average soul cycle does $2.4 million a year in revenue. $2.4 million, and they had zero recurring. So what do they do? How do they do it differently? They started with their customer, and they were like, how can we make the best experience humanly possible for someone to come

into my gym, right? And they even treated that way. And there's two women that made a gym for themselves. They were like, what would we want to do? Right. And in that sense, they love that customer because it's them. And so for some of you who are like, man, I just don't relate. Like sometimes you get tiring, right? It's tiring and you have to be mentally tough, which is why business is not a game for the faint of heart, right? Like, you have to be mentally tough because you have to figure out how to get that stuff out of your head and continue to focus on how can I love this customer better, right? So that, so Soul Cycle, right, 2.4 million, no EFT.

And all they do is they say, taste our Kool-Aid, taste our food, you'll come back. Do you think if you look at your business honestly that if someone were to taste or take a drink of your Kool-Aid that they would come back? And not only that way they would come back, but that they would tell their friends about it after having their Kool-Aid and being like, oh my God, this was amazing. Because that was the goal for the, if you've listened to the founders of Soul Cycle, that was their goal for their experiences, that they were like, the way that will grow is if we can get people in here and if that the only thing they can think about the rest of the day and that would they tell everyone when they're at lunch and when they're at the water cooler and when they go home, it's like, oh my God, I tried this. Jim Jee, it was unbelievable. It was like nothing I've ever done before. It was remarkable. whole, right? If you can think about, now if you're like, what I'm already doing that, we're already serving your customer. If you actually have that response right now, you've already lost.

Yeah. Because there's always more that you can do. You can, like, and the people who are kings of an industry and then fall are the ones who rest on their laurels. And don't forget that everyone, someone will put you out of business every single day. And it's whether you want it to be you or someone else, right? And the only way to do that is to have a game that's outside of your game of barely surviving. And you have to flip that survival game.

from like, I have to provide for me to I have to provide for them, them being your customers, right? And you have to love them in a way that they won't like that no one else loves them. Right. Seriously. And you have to like get into this place of deep empathy of like, how can I care for these people? And if you do that, I promise you, I promise you that you will make more money. Your employees will be more fulfilled. And the crazy thing is that when you make that money, when you finally make that switch, the money will be the last thing that you care about. And people talk about this. And I like, they do. People talk about it all the time, all the the big gurus are on their chairs and ivory tower is talking about you got to love your customer but it's because there's like there's a lack of words for trying to figure out how i can how you can

say that like it's ownership it's it's huge ownership over their experience that'll help you win and it's not even about winning it's just about serving and when you do serve more you do win more it just is what it is so man that was a little bit of ramp but that like the only way to win this game which you shouldn't be trying to win is by not winning the game It's not about this game. It's about the next game. It's about the game that pulls you. And if you can't tap into that, then in some ways you don't deserve the next level because

you aren't serving your people the way that you should be. And that's okay because the market will always reward the person who is. So just being real with you. So if you're like, man, I'm so overwhelmed. I don't even know how I can think about it. So is every other business owner. So don't give that as an excuse because so what? It's one of those like, Gary V's like, and?

And what are you going to do? You know? So anyways, guys, thanks for tuning in. I appreciate it on a Monday. But if there's any takeaway from this, it's that like if you feel like you've persisted and you've stayed and you've barely scraped by every single month, it's usually because you don't have another reason to make more money.

And the only reason that I think that has ever gotten someone above like 100 grand a year, because that's where most people are just comfortable. Like you can get to 100 grand a year because you satisfy your needs with that. Most people, right? Nowadays you can satisfy your needs with that. But if you want to make a million dollars, 10 million, 50 million, take home, you don't do it for you.

You can't. Like there's just like no selfishness. Maybe there is. I don't know. I just don't understand it. And every person that I've talked to who makes gobs and gobs and gobs of money thinks that same way. All they think about all day long,

all they obsess over is like how. can I fix this next problem? How can I over deliver? Like fixing problems is the easiest thing. It's like what? Look at all of your customers and think and ask, what are you struggling the most with? And they're like, I just can't get at the gym. Cool. What are 10 ways you can fix that problem? And the thing is, is that people know, people know, people know, like you can't fool anymore. No one's fooled, right? David Ogilvy said, um, the consumer isn't mindless or the consumer isn't stupid. She's your wife. Right. Like people aren't dumb. People know when people are legit. People know when they're actually trying, right?

Like, and sometimes if you fail when you're trying, people forgive. People are like, well, I mean, I know where his heart was, right? They say it because intentions matter. Oh, man. So, yeah, that was my little rant for today. So figure out what you need and figure out how you can tap into a much larger thing than you. Because if it's just to satisfy your initial needs, they'll be satisfied quickly. This might be for people who are like right at barely or they're above barely surviving.

now they're like we're comfortable you're not going to get above comfortable unless you have something that's much bigger driving you because it takes a lot of discomfort to get to somewhere that's much bigger than that and the only way that you're going to get there is by having something that pulls you in a way that nothing else pulls you and that's usually solve it like Tony Robbins gets up and like cries on stage every time because he genuinely just wants to change everyone's life who's in the room he does right and if you've ever met Tony um drive it two times it's him like through and through that's who he is he literally just wants to change everyone's life and so he continued to pour through all these books and do all this if you just wanted to

be comfortable and make money he would have done that with just a normal average business because most average businesses with sound processes can make money as long as the model makes sense you can do it right and we help with all that stuff but like if you want to get to that next level like the real next level like the real players you have to figure out weapons great compassion you have to figure out how to care more because that's the game So anyways, guys, have an amazing day. Catch you soon. And like this one so other people see it if you can.

She did a thumb tap, please. All right. Bye.