The Game with Alex Hormozi - HOW TO TAKE THE MONEY THAT IS RIGHT IN FRONT OF YOU (AND HOW TO BE GREEDY FOR YOURSELF) 💰💥 | Ep 88

Episode Date: November 28, 2018

"And so the question is, can you give yourself no other choice but to make more money?" Today, (@AlexHormozi) talks about how having a need that's greater than oneself can drive a person to make more money. He provides two ways to trick oneself into making more money: actively choose to make more money and focus on serving customers at a higher level.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:(2:04) - Need for money drives financial success.(4:10) - Reflecting on urgent financial need.(5:32) - Questioning choice of making less money.(7:32) - Money flows to those who pay attention.(9:14) - Purpose-driven service attracts more money.(10:24) - Deep customer empathy delivers exceptional value.Follow Alex Hormozi’s Socials:LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition

Good on everyone, happy Sunday. Hope you guys are having a miraculous Sunday rest day and that everything is treating you well. I wanted to make a quick little video here because this is a lesson that I really don't like talking about mindset stuff because I think a lot of it's fluff. But this one was kind of good, and so I wanted to share it with you.

And this was actually a true mindset shift that I ended up having earlier on in my career that has still reverberated through my life since. So I'll tell you two stories. One of them was the first time that I encountered the mindset reality. I didn't learn the lesson fully then, but I was aware of it. And the second one was where I learned the lesson. And so what it was is running a business to actually try and make money.

And I know this sounds really crazy. But there was a time when I actually had a partner at a couple locations that I ended up buying out. And the cost of buying that partner out was $10,000 a month. That was the deal that we made. So I had to pay him $10,000 a month in addition to what I was taking from the gyms and whatnot. And what was interesting is that as soon as I had to start making the payments to this partner, I immediately, for the next 12 months, made $10,000 a month more. And what was weird is that after the payments to that partner ceased, or I had to stop making them, the income that I made immediately dropped by $10,000 a month.

And the whole time, as I was making this money, I was thinking to myself, I was like, I can't wait until this is over. I was like, I'm going to take on an extra 10 grand a month net. This would be great. And when it didn't happen on the 13th month and the 14th month and the 15th month, it really kind of rattled me. Because I was like, what is going on? Like, what is happening? And the reality was I didn't actually, and this is why I talk about having a need that's much greater than yourself, is that I was a single dude.

And like, all of my needs were very much financially met. And I was comfortable. I looked in a nice place. Like, I never wanted for anything. But I didn't need the extra tank brand a month. And the issue is that I wasn't really driven by my clients to fulfill a higher need. And so I made the. the extra $10,000 a month because I had to, and then when I no longer needed to, I stopped making it.

And it was very, very weird for me to go through that. And so that was something that, like, it rattled me, but it didn't actually force me to break through it. It was something that I noticed, but I still didn't actually make the next step. Now, later, what ended up happening a year or two later, I was running a campaign, and this was, gosh, I can't remember, but I knew I wanted to average X amount in upsells per person. And so I remember I had like 150 wayans or something and I was doing all of them myself. And I was about, I want to say two thirds of the way through. So I probably weighed in about 100 of the 150 people. And I was averaging about $110 per head in additional upsells. And I knew that. And I knew that.

that I wanted to get up to 150 on average per person. And so immediately what I ended up doing was I just started selling people more stuff because I wanted to get to that average. And the next 50 sales, I averaged an additional $80 so that I could bring the average up to $150. And it was in that moment that I realized that I had been making less money because I was choosing to make less money. I don't know if that's real for anyone who's listening right now.

But that was the moment that that became real for me. And so I guess the rhetorical question that I would ask anyone here is like, have you ever needed to make money pay rent, pay payroll, pay whatever, right? That was coming up the next month. And then you made it, right? And if you look back on the last 12 months, 24 months, right? and you think how many times have I needed to make X, right? Maybe your car breaks down or you've got a family thing or, you know, you've got something,

the sign break, whatever it is, something that's urgent and you need to make money in a certain amount of time, right? And then what's crazy is that most people who are watching this right now are still here and not homeless, right? Because they were able to make the money that they needed to make, to make this. thing go away. And so what's weird is that we respond in these times of crisis with a different type of thinking. We think differently about our business. We think differently about money in those instances because we think, I have to make this money. And so when you rewind the clock, right,

and so I had the partner that I had to make $10,000 a month extra net, right, per month, the moment I signed the agreement, right? And then that next month, we made $10,000 a month in that extra from what we were making before. Crazy, right? But the thing is, like, is it crazy? And then the question is, can you use that approach and trick yourself into making more money? And so the more rhetorical question is like, are you not making as much money as you want to because you're choosing to make less money? Real quick, guys, if you can think about how you found this podcast, somebody probably tweeted it, told you about it, shared it on Instagram or something like that.

The only way this grows is through word of mouth. And so I don't run ads. I don't do sponsorships. I don't sell anything. My only ask is that you continue to pay it forward to whoever showed you or however you found out about this podcast that you do the exact same thing. So if it was a review, if it was a post, if you do that, it would mean the world to me and you'll throw some good karma out there for another entrepreneur. I know this sounds weird to say, but just think about it. are you choosing to charge less than you could?

Are you choosing to not upsell people because you just don't want to make the emotional effort? And every time in the past you had needed money, when it was for someone else and not you, you were able to make it. And so it's one of these key concepts around like the energy of money and how you perceive it that influenced how you go and get it. And so one of the biggest shifts that I had and why I tell everyone like, I don't think like I think the reason that people who are married and have kids make more money is because they have to. There's no they have to. They have no other choice, right? And so the question is can you give yourself no other choice but to make more money? And so there's two ways of doing that. One is by like trying to mind trick yourself and the others to not think about money at all and only think about how much more you can serve your customers. And I can tell you that right now within gym launch like I was able to transition at the end of my job.

career to that, the second thing that I was talking about, where I just, I chose to make more money. It was an active choice. I was like, I'm choosing to make more money. Like, I demand more money, right? And so I'm no longer going to not sell people because I'm just choosing not to sell them more. I'm no longer going to accept lower prices because there's no reason for me to accept lower prices. I'm no longer going to spend money on things just because it's there. I'm going to bank that. I'm going to take that money, right? Because the money. will always flow to the person who gives it the most attention. And up until recently, maybe for some of you, the person who was paying the most attention to the money was the person

who needed it from me. And so you immediately went and got it and gave it to him, right? Because he's paying attention and the money just flowed through you from one person, from the clients to the person needed to take it, whether that was your mechanic, whether it was the broken equipment person, whether it was the plumber who had to fix the water leak in your gym, whatever it was, that person was. Now, that person might turn around and hand it to the next person, Right. But eventually that money will stick to the person who's paying the most attention to it. And so the first way is to is to actively make the decision and say like, I'm going to make more money because I choose to. For no other reason. I choose to. I refuse to not make money anymore. Right. It's a choice.

And the second is sort of what we've gotten into now with gym launches. And I don't have the secret. I don't know. I'll be honest. I don't know. But I know that I am much more connected with gym owners than I am to my weight loss customers when I had my gyms. I'd be really candid with you. I never struggled with my weight. I've had a six-pack my whole life. I genetically have good genes. I can eat fast food and still probably get away with looking very and being very honest with you. And so it wasn't real for me to have their struggle, right?

What became more real for me is to connect with the fact that I wanted to be an exceptional business owner. And then as a corollary to that, I knew I needed to serve my job. customers, but I actually didn't directly connect with my customers. Now, with gym launch, I have an emotional tie to the gym lords in our community, to the gym world. I can't let them down, right? And if you can tap into that, more money will flow to you than you have ever had any idea, like what to do with it, because you're not actually acting, like, you're serving a purpose that's much higher than you. And then the amount of value that you're creating is far in excess of anything that you were creating part of that,

and then a lot more money will flow to you. And so the two basic takeaways from this are decide, and it's a choice whether you want to make more money. And then if you do, act like it. Act like you have to pay your car off in the next 14 days, and then do that. And then next month, do it again. And then next month, do it again.

And instead of giving that money to someone else, bank it. It's for you. You earned it. Keep it. Don't spend it on stupid shit. Don't just choose to spend some of your net profit for no reason on something because it's there. Right? Don't let the money burn a hole in your pocket for no reason.

So that's the first way. And the second way, if you can tap into this, it will give you more money than you'll ever know what to do with. But it's genuinely getting into what we call weapons-grade compassion, but like going deep into your customers and really connecting with the needs that they have and thinking, how can I do better? How can I do more? How can I do more? And by extension, how can I charge, how can I deliver more value? And then by extension, charge more so that I can give a more exceptional experience to those people because they truly deserve. And you have to think that way. And when you do think that way, you don't look at the competitive marketplace. You don't look at your competition. You don't look at what they're charging because

they're doing the same thing that I just said. They're charging just enough to get by because they have no reason to make more money. And that's why I married people. And that's why I'm married people. why people with kids make more money because they have to they have no choice so give yourself no choice but to make more money so anyways just as someday thought for you um i hope either of those stories were were valuable for you um when i had to buy my partner out i mean the amount of money that you can make there's no there's no limit like if you had to you would and so just put yourself in a state where you have to and then you will like for real like do that and i don't know know I don't know how to break this belief for you because it took me such a long time.

And like, I literally paid $10,000 a month for over a year and then was not able to recreate it until much later until like this became real for me. And so I wish I could say better words to you right now to like make that real for you in your mind so that tomorrow you act like you have to pay a bill, but the bill is to you. You're the recipient. You're your own landlord. Right. So anyways, I hope this is valuable for you. Maybe tag a manager who needs to hear it or a trainer or maybe no one. But anyways, throw a like up if you found it valuable. But have an amazing Sunday.

I hope you guys are crushing your goals. And I hope you get greedy with your business so that you can take the money and help other people. All right. Lots of love. Have an amazing day. Keep being awesome. Love you guys. Bye.