The Game with Alex Hormozi - Lead Gen vs. Closing: Which One’s Broken? | Ep 878

Episode Date: June 23, 2025

In this Q&A episode, Alex (@AlexHormozi) answers real questions from business owners about pricing high-ticket offers, balancing brand-building with monetization, and optimizing what happens after someone says “yes.”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 and will learn on his path from $100M to $1B in net worth.Wanna scale your business? Click here.Follow Alex Hormozi’s Socials:LinkedIn | Instagram | Facebook | YouTube | Twitter | AcquisitionMentioned in this episode:Get access to the free $100M Scaling Roadmap at www.acquisition.com/roadmap

But there's probably a hundred things that I want to improve about it. But every time I want to go improve one of those things for others drop, and it's not worth the cost of change. And so most of us just don't factor in the guaranteed 20% decrease for the potential. But then after a result that's done, it's five. Was that worth it? No. My name is Ricky.

We have a bar cocktail mix that we sell to B2B, country club, resorts. Part of Ben Potts, who was on the cash gas. Yeah. We do 3.5 last year and revenue. And our biggest thing that's stopping us was my father. He was the man salesman that he had a position. He's doing this full time as well as trying to focus on whether we should try to grow the business awareness, just because a lot of people don't know about it unless they know us or referrals or just try to just get more.

You just pay a little bit more about the product. Yeah. So a peanut, colada, strawberry, daugri, margarita, stuff like that. It's mainly,

it's a frozen product of them frozen last two years once you thawed it lasts a week. But it's mainly for people who are high volume.

So you can spit out a lot of drinks and things like that. Yeah, mainly like a frozen drink machine or like a blender. So. Got it.

Okay. And so the question is whether you should focus on awareness? Oh, like growing the brand because it's like, it's like,

every public. It's only mainly people that know, us who talk about it or just people who guests are like this is amazing. Are you really all word of mouth? Yeah, basically. Okay. So you have your father who does sales.

Yep. And how does he do sales? Previous relationships from being in the industry for over 20 years. So housebound. Yeah. Okay. So what stops you from mechanizing, is existing outbound motion and then getting like 10 guys to do it?

We haven't done it. It's just, you know. So like, I mean, if I had to pick between more of that thing, right and this brand new thing that you've never done, I definitely would mechanize the existing thing. Yeah. So yeah, it's going to be a conversation that you're going to have with your father. Obviously, we can help. But like, breaking down like, okay, let's take this thing and break into 50 pieces because it's not like, hey, how do you do outbound? Like, that doesn't work. Yeah. It's like, what's initial contact look like? What's first message? What's second message? What's the script?

What's the opener? What's the offer to get them kind of enticed? Once we have that conversation, what's the thing that we can increase the pain between where they're at and where they want to go so we can insert ourselves. Yeah. One of the biggest things at least is with getting them to actually try the product because it's like, or it's like, oh, it's just, it's another mix. So once they taste it, it's different. But, you know, getting to that person at decision is, you know, part of the thing.

There are so many ways to do that. But yeah, I mean, you need an outbound motion. There's probably a combination of conference slash trade show. That would work really well too, especially because you are at Pete, like literally tasted. Yeah. And it would probably crush in that setting. Probably be very self.

Yeah. I just don't, I don't think you should go brand. now, especially since you built the whole business off B2B, I would just do more of that for now to start. Thank you. Yeah. My name is Sam Tierling because I sell a service. I own a transportation company. Cool.

We deliver chemicals to the fracking companies last mile transportation. Revenue-wise, we did $10 million last year, a year before that was seven, year before that was five. Nice. And it just kept growing. Awesome. And this year decided to slow it down a little bit, not like get myself out of the day-to-day. Okay. And it's worked.

While doing that, I realize that you can make more money taking and selling to customers that my customers don't sell to, the same product that we're transporting. So it's that that last part of good. All right. So I'm more of a specific type of person. I transport polymers, virtual inducers. SNF is one of the biggest they make it. There's 40% of customers they won't deal with that want to deal with me, that want to buy it from us. My struggle is, is I figured out how to continue to replicate the trucking industry,

like the trucks and grow that. So do I keep focusing on that, which is a very cash-intensive business? I can I just put a lot of money up front. Or do I use my trucks to sell the product to the end user? But I also struggle with that because how do I balance the two? So if I, like, I'm regularly floating a million and a half, two million and receivables for BKT. Yeah. And I want to start buying the product.

all I have to pay in 30 days. I'm not going to get paid. So basically, if you're buying the stuff that you're going to sell to the end users, you're going to add cash constraint to the business. Okay. Right? Yeah. So then they would further constrain.

It would basically pile on these constraints. So said differently, why do it versus just doubling the existing business? Because, like, the way that I'll explain where my thinking is. So I had a good friend of mine from high school, actually. That's a strong statement, an acquaintance of mine from high school, who had a general contracting business. And in his general contract business, he realized he was pretty good at roofs.

And so he started doing roofs. And I called him up and I was like, hey, how's the business going? He's like, oh, we're growing. It's great. And so he was like, so we do roofs primarily. I was like, okay. And he's like, we also do, you know, some contracting work.

And I was like, okay, that's another thing. He's like, we also kind of buy and flip houses. I was like, okay. He's like, but that's like, you know, I didn't want to leave money on the table, which is like my favorite expert statement ever. And I was like, so what stops you from being a billion dollar year roofing company? And the answer is the general contracting and the real estate flipping.

I was like, well, what stops you from being a billion dollar year real estate flipper? The answer is the roofing and the general contracting. And so basically, if you already have a winning model, to me, I'm like, there's no reason to not just become even better at this thing that you're currently doing and compound the competitive advantage that you have. There's always going to be better. There's always going to be opportunities. I guess I looked at it as more of a control thing because there's, from most part,

our customers we've started with. I've been with us for six or seven years. On the trucking side. Yes, on the trucking side. But they also do dictate the rates. Like, I can continue to raise my prices and eliminate customers, which we have done, but they're only willing to pay so much. And it's like, well, if I'm selling the chemical, I'm still going to get what I want for transporting it. And then you're getting paid to sell it to. The only reason I hesitate is, it's adding, it adds complexity to the business. again, given the limited context that I have five minutes of hearing about the business, it's a huge decision.

But from my personal experience, when I had gym launch and prestige labs, I basically said, oh, I've got this distribution base of gyms. And so why don't I just sell supplements through my distribution base, which on the service level seems like a smart idea. But what it ended up doing is that it completely slowed down the growth of my main business, which was the licensing business. And so it felt like, oh, there's this big pot of gold right here. But if I took all the attention that I put into starting this supplement company

and manufacturing it and distributing it and testing it and the flavors and the marketing and all that stuff and the support team that had to do for the product, I could have taken all of that energy and just gone double down into the thing that I should have done. It was one of the bigger mistakes that I've made. And so if you already have a business that's gone from five to seven to ten, I'm like, well, maybe next year you're at 13, year after that, you're at 17. that sounds like a pretty good business.

I guess it was more of what I wanted to do. If you want to do it, that's a life question, more than a business question. Yeah. Why don't I make sense to not screw my first business up? Well, yeah, that's always the, I mean, like, there's always opportunities. And the thing is just the bigger distribution base is, which it will continue to grow. The more enticing the other opportunity will be, right? The woman in the red dress, she just always is more and more attractive.

The more distribution you build, the more skills you have and the more opportunities to see. Like, believe me, the amount of opportunities that I have to turn down now is sickening. It's just like, taking to the natural extreme, can I build a $100 million per year trucking business? If the answer is yes, then what risks that? Everything that isn't that. That's fair. I mean, it seems like a simplistic way of doing the world, but it's also really hard.

But I also think it's probably the right call. I guess I was more or less thinking of it in transportation most of the time for hazmat's companies. Once you get to where you do 15 to 20 million revenue, you get bought out. Okay. Quantics, NFDana. Do you not want to get bought out? No, I started this because a lot of... You could always just keep owning it because they can't force you to give...

They can't force the money down your throat. No, I'm just being real. Like, I mean, a lot of people take the exit then because at that point, they probably have, you know, between... I know, what are margins? Okay. Yeah, so at 20, you got $4 million in EBTA, maybe five, right? And so at that point, they maybe give you an eight or ten on it. And so most people are like, okay, well, for $40 million, I'll walk away.

And that's why a lot of people, like, usually that's... I mean, I think part of the reason that institutional, investors come in at that five-ish million is that at that point is where most business owners are like, okay, this is enough for me to be done forever. And that's probably why there's a ton of them in any activity. This is me just speaking speculatively. So I don't think there's anything inherently like, okay, if a lot of people get out at 20, like fine, but there's also companies that get to 100. And it's usually just a more stubborn founder who does it for different reasons. So I actually think is a good thing. Okay. That gives me a piece of mind. Thank you. Yeah,

you bet. My name's Chase. On an exhaustive cleaning business in San Diego. So we sell like Exhausted. Exhaust hood cleaning. Yeah. So we do like grease removal from ducks, fans, hoods in restaurants in San Diego. Cool. Where we're at right now? Just hit month sixth. Is that like 18 wheelers? Like semi as they do that on? What is that? We just have like a band with a hot water pressure washing chemical.

Roll in the restaurants. Got it water and truck. Okay. Oh, so restaurants. Okay. Got it. So like in all the restaurants, there's a hood system above where they cook. Yeah. It's like a fire hazard. So everyone has to legally do it. Yeah. It's a great business. It was described to me differently in a different setting. So yeah, it's good business. That's why I kind of put it in. Or else people are like, the hell are you talking about?

Yeah. So we just hit month six. We're doing like 6K a month right now. Okay. But we have people on, it's a subscription-based business. So our book right now for like yearly recurring revenue is like right around 100K. Cool. I think what's stopping us right now is just like not a clear offer.

Right. Because I deal with restaurant owners who only care about their bottom line. Sure. A money thing. Those business starts. Yeah. True. They're like, well, if you can give me a better price,

So I'll give you a shot. And right now I'm just like the hungry kid that's like, yeah, I'll beat your price easy. Yeah. Right. So I think what's stopping us is figuring out pricing and offer with a service that more or less is the same no matter who you go with. But we have added value adders with like customer portal, streamlining, back in support,

things like that. So you say that to the business owner. Say that for the business. How so? There's good fast Jeep. Pick two. Hmm. And so the problem is you can have somebody else who can do this.

like, to your point, like, you started with the premise that this is a commoditized service. I would just erase that from your memory because at the end of the day, like, you have to believe before anybody else that it's not a commoditized service. And so I would say, what are all the reasons that somebody who sucks at this sucks? And let's fix all of those things. And so what's really interesting about good, like, what does good even mean? Right. So good is basically the absence of heart. Right. And so I think about this when I'm creating a product or service. And this is actually really helpful. for me in terms of how you operationalize value in terms of quality is you think what are all the things

that suck about the existing services? What makes it hard? And so a lot of people use the term friction, right? And so something that is easy, you can't make something easy. You can only make it not hard. Like if I said, make it easy. It's like when something's easy, all the hard vanishes and all this left is the outcome. Right. And so if we want to make our products or services easier, which then means more valuable, we have to remove all of the elements that make it sucky. Real quick, guys, I have a special, special gift for you for being loyal listeners of the podcast. Layla and I spent probably an entire quarter putting together our scaling roadmap. It's breaking scaling into 10 stages and across all eight functions of the business.

So you've got marketing, you've got sales, you've got product, you've got customer success, you've got IT, you've got recruiting, you've got HR, you've got finance. And we show the problems that emerge at every level of scale and how to graduate to the next level. It's all free and you can get it personalized to you. So it's about 30-ish pages for each of the stages. Once you enter the questions, it will tell you exactly where you're at and what you need to do to grow. It's about 14 hours of stuff, but it's narrowed down so that you only have to watch the part that's relevant to you, which will probably be about 90 minutes. And so if that's at all interesting, you can go to acquisition.com forward slash roadmap, R-O-A-D map, roadmap.

And so if we're thinking about the competition that you're competing against, like maybe a lot of them are, you know, Not that personable. Maybe terrible service. Maybe they don't do a complete job. Maybe they're not willing to come back if something happens. Is there like what risks does the restaurant occur if it's a shoddy job? Is there a cadence that they have to like maybe we can treat it in a way that allows us to come half as frequently? So we're more per cleaning, but they they don't have to pay it as often.

Right. So we have higher gross margins. And that actually works fine for us and it's less for them. Like you're going with us? Yeah. And then from an economies of scale perspective, it's like how can we increase now you're super early on this, but over time it'll be how can we increase route density so that we don't waste this much time.

And so we get more efficient with the routes. And we can ultimately make more than our competitors or at least increase our gross margins due to keep our price fixed. Right. No, that makes sense. One more question. So everybody has to get done at least twice a year. So we're signing people a year agreement anywhere from twice a year.

Some people do quarterly. Some people do three times a year. So based on what you just said, would you recommend potentially going more towards just pushing semi-annually but keeping price higher so that they, feel like they're paying less over the year. Yeah, I look at my gross march. I mean, real real, I'd rather sell someone more. Yeah, right.

Start at four, down sell to two as you can and then probably play with payment terms, which is like, can I stack more of that cash up front? Right. Versus getting paid quarterly. Yeah. And full up from it. Yeah. Okay.

Gotcha. Cool. But big picture, I mean, like, if I'm you, I'm putting all my effort into trying to figure out how to decommonitize my service because it is probably the most important thing. Otherwise, you're right. you will just consistently be dealing with. If you are the same to the customers, the first chapter of offers, right? Like, you're the same thing to the customer. These two things are about the same. I'll buy the cheaper one. It's the worst comparison. It's not the fight you want to fight.

So it's like, I put all my effort whenever I start any business or any product line into like, why is this different? Like that's my full, like, I don't even think about pricing. I don't think about anything until I answer that question. And I have to at least be able to articulate it to them really simply, which is like, here's the five things that happen that stuff. Here's how we don't have any of those five. And four, that in exchange instead of paying this, you paid this. But this is why it's worth it. Right. And then in that, our only form of out by right now is just like door door, knocking restaurants and then cold email. So then building that offer out with the decommodotidized. That's even decommodic.

And then put that into the offers, the emails, the text, the cold outreach, basically, and just sell the shit out. Sell the shit out. Heck yeah. Thanks, dude. Kyle, I sell outdoor lighting to homeowners. We do 880,000 revenue about 40% is in the holiday season, doing Christmas lights. The problem is we don't have enough leads in the not holiday light time of year. So the first half until basically now fix this business so many times, so owners walk you through it. Yeah.

Okay, cool. So basically you have one kind of existential decision that you need to make, which is, are we going to be full-time lighting? Which there's nothing wrong with that I look at the hall moon store. Like, they're open two months a year and they just murder it. That's all they do, right? The alternative is that you basically have a home team that goes from lawn care and other home services to, you know, lighting. The lawn care guys have the equal opposite issue.

They're like, okay, well, there's grass that's growing nine months of the year and then it's holiday season and what will my guys do for three months or four months depending on whatever geographic area you're in, right? And so I tell you which one I prefer. I prefer the keeping the holiday season business year round and I'll explain why, but either option works. There's one to be really clear about that. I like thinking about it. How many months of the year are you doing the lights?

Three? Yep, 45 days. Perfect. So the way I think about it is how can I take, how can I equip my existing team with as many skills as possible so that the other 10 months of the year, all they're doing is getting business. And so like the perfect business in the world is you sell all year and then you have to deliver for this much.

Yeah. It's an amazing. Just this. Yeah. You just collect cash all day long. Collect cash, collect commitments, collect cash, collect commitments, all year around. And then you boom, you basically earn the living over the next 45 or 60 days. days and then you go back into the sales cycle.

And so that's one way of doing it. I like that because it's such a simple, like you just have to think about one thing for 10 months, which is marketing at sales. And that gets pretty nasty. And the cash flow is really good. The alternative, obviously, is you're like, okay, well, these guys don't have these skills,

which then begs the next question is, what type of talent do I need to facilitate Model A versus Model B? If you have Model B, which is maybe a lower skilled people who work for you right now, then it's like, okay, can I buy some lawnmowers? Can I buy some landscaping, stuff so that I can give them something to do for the other nine months of the year. Yeah. So we were doing long care and picked up Christmas lights to fill that gap.

Well, where I live in October, you have to do both. So I got rid of the long care. Okay. Well, just do all, just Christmas. And you made better margins. Yeah, yeah, yeah. Yeah. So that was awesome.

So what we're doing now is project-based permanent lighting jobs with the exact same team. Okay. So we can literally just shut it down as soon as Christmas time starts. Cool. So I guess what you're saying would be just sell. Christmas all year, which is like really hard to sell this time of year. Really, like, super easy to get leads in Christmas. Yeah. So my thought was sell permanent lights. And then also 50% of them still get Christmas lights. But why don't do that? That is what I'm doing. Well, great.

Well, so the problem is the leads problem. Okay. So I'm running out of Christmas light customers to sell landscape lights too because that was the natural first, like easy to get them. Well, I'm running meta ads. So leave in for permanent lights? Yeah, exactly, is the problem. So when I'm trying to figure out, Is the problem like lead magnet issues or landing pages issues are where I'm at? Right. So now we're in the need of it. Right. Yeah.

Yeah. No, I'll bet you that the crate is probably not that good because I think it's a pretty easy thing to sell. Yeah. The permanent lighting, like you show a house before and after. You show the dark before and after. Like, oh look, lights. I think it's very visual.

Yeah, yeah, yeah. I actually think that the ads is probably the issue. What's the lead magnet you're offering right now? Yeah. We come to your house to a free demo so you can see how it looks. Yeah. Yeah. I'd probably try and enhance that offer.

The nice thing is a, in local markets, it's very offer driven. I'd have to think more than three minutes, you know, two seconds about it because it'll be the front end of the whole business. But it would probably be some element of some amount of lights that come for free. So like, like, I think something that would murder would be like, can I light someone's like, not their deck, but like maybe they're a side, like from the sidewalk to the house or can I just light the driveway, like some small element. So we talk about in the in the leads book,

a lead man can either be a trial of something. It can be one part of a multi-stile a multi-step process or it can be a third thing. But for yours, I think the one step in a multi-step process, I wrote it down so I don't remember it. Because I'll prefer to start with a bangor offer and then add friction. Because the thing is, you can say, I'm going to give this way, but you don't have to give it away to everybody. You can say, I only give it away to houses that are over X. And you can have people put their address in and then run an API to Zillow, look at home value, and then rank order the leads based on value of home and then basically prioritize those leads ahead of time.

And so you can go to those houses first and probably so much bigger packages overall. But I think if I'm struggling to get leads, I just need them to say they want lighting. I don't really care how they say they want lighting. I actually need them to say they want it and then the sales process takes care of the rest. Cool.

Do you like that? I'm just trying to process, yeah, yeah, like how that would go. I mean, you're 100% right. That's the problem, is people, once they say they want lighting, selling it is easy. Yeah. So I just got to give them to say it and put their phone number. Exactly.

So give them a crazy, so give them a better offer than I'll give you a free sales pitch. No, I'm just figuring real. Yes. So fundamentally, that's it. So I think you say like, we'll, we'll do the install for free. You just cover the cost of the lights for this tiny amount. See how I'm developing. I like it.

All right. Now, you put the markup on the lights and put zero on the labor. It doesn't matter either way. You just basically mix and match how you're showing the money. And that way you'll still break even on that first thing. And you'll just know that one out of two or whatever. is, who buy the first thing by the 10 times bigger package, and then that's just math. Cool.

I see. I like that. I like that. Awesome. Thanks. So my name is Keir Brinton. And brings myself. We're like going to clean out my closet for a minute, okay?

So last year, my company made a million. I've already made a million this year. So I think I'm on track for four, but I hope to hit 10. So here's the deal is that I get really bored. Right. And so I'm also really amazing visionary. And so I've built a lot of different things. And what I'm needing right now is I need clarity.

Okay? And I need you to, I would love for you to help me focus. Okay. So I'm going to share with you. I'm going to share with you what I've done. I'm going to share with you what I have. And then I would love for you to show me is how do I get clarity? Okay.

What do you sell? Yeah. So I have a publishing house. Okay. But really what I've sold is that I take people on these five-day adventures, like luxury adventures, and I can help people channel their books in five days. And that's what's filled in my pocket.

Cool. But it's also just not scalable. And so... It's not scaled. Well, because one week a month, I'm on these adventures and I love it, but it's like, there's like a ceiling. And so then I like rented this island in the middle of the British Virgin Islands. I took 15 people there.

We all write their books for five days. And so that was like scalable, which that landed me a TV show. So now I have like this TV show. But then I have like, like their publishing house. And then, like, I have this business school for women. Yeah? And then, like, I'm also, like, a single mom of five kids. Also, I, like, write books on the corner.

Also, I did a live event in January and closed $1.25 million in five minutes to a crowd of 30. So it's like, I have all these things. I just like... Yeah, you got to pick. You got to pick one of your five kids. The 10-year-old all day. There you go. So you just got to think about which one's the 10-year-old?

of your business. It's just like the roofing thing that I said. The thing is, the more talented you are, the more opportunities you know you could crush, which just means more things you have to save it. And it's just like, it's the reality of it. I mean, the thing is, is there's a price to that, which is if you continue to do what you're currently doing, you pay a price on either side. If you continue, you pay the price of how big the impact you want to have and how big of a business you ultimately build. That's the price. What you get for that trade is you get to have the novelty and the excitement of new things happening all the time. On the other side, you build something really big that has teams and systems and it just grows

really large, probably maybe not bigger than new vision, but large, much larger than what you have right now. And what you give up for that is all of the novelty that's associated with doing your thing. Yeah. So much one. Well, it sounds like you know which one you should do and want to do something different. I feel like when I, when I've been looking at, okay, well, what has brought people to me? It's always the books. And I keep trying to get out of it because there's so many people and there's so many things and all these systems in publishing. And I'm like, but if I just ran the business school, like, I don't have to have all these like editors and formatters and book covers and, right?

But then I look at like, well, what do people always come to me for? It's always books. So you run the business school, right? Yeah. So imagine I come to you and I'm saying, hey, I've got this business that everybody wants to buy for me. It has good margins. I sell it like crazy. But I have four other businesses that I want to start. They don't grow as quickly as this other one. What should I do? Weird. Sounds so easy when you say it. Yeah, obviously. Right, right, right. Yeah. Yeah. Okay. No, I mean, like, that's the, I mean, what you're encountering is a problem. I think everybody in this room has dealt with. with, right? It sucks. But like, you have to realize that like you can't pursue every opportunity. Not only can you know it's every opportunity. You basically have to say no to every opportunity to be able to make one opportunity worth pursuing. If my TV show is on Amazon Prime and I'm helping

people write books and then I'm like, but I'm pushing my business goal. Like that doesn't even make sense. Yeah, I wouldn't push the business school. Just have the media asset of Prime that pushes you writing books and then help people or write more books and then have a second season of Amazon Prime, helping you, you know, people writing books and then sell more people writing books. Yeah. All right. That's my financial advisor on the front, shaking your head. We got this, Julia? Yeah. Julia's like, I've seen the financials on the book, I'm doing more of that, right? I want to hit on this one because I think I'm not really talking to you. I'm talking through to everybody else. I've stayed, I state, I had these massive multi-year plateaus where I just stayed stuck because I wanted

to pursue every single thing. Yeah. And so you have to trade novelty. for loyalty. And so it's like you become loyal to the business. I also think that it occurs with relationships. It's like you make the trade. A new person every one, you know, every week,

every month, every whatever for somebody that you know that you built something meaningful, that's deeper. It's kind of like, I think business in a lot of ways is like a fine wine where like you understand it

at a different level as the years go by and you go through different seasons. And I think that you miss out on that opportunity if you're going after, you know, one night stands and flings from a business perspective. No,

but like I'm keeping you. I feel this. This is helpful. Well, thank you. Yeah, you have to. Life will not give you what you want if you want everything. Damn. Like, we have to make trades, but we get nothing.

And it's tough. And I think there's a big, at a big realization, I want to say a few years back, where once I realized how much work it takes to make something truly great and something big, I had this moment of like deep sadness where I realized that I could only do a few things throughout the rest of my life. I was like, oh, I only have like two, maybe three entrepreneurial seasons left in me. Yeah. Just kind of like crazy to think about it.

It's like I only get two or three more big swings. That's it. And the real real is that if the swing just keeps going, which is what I plan on doing Acquisition com, it's like, this is it. I'm going to do this until I get too old to do it. And that's it. That's all it is. Now what I want to do is give you something tactical.

All right, because this is we're all the way up here. So I'm going to make a video on this because I think it's really helpful, which is that you have to take your creative energy and I have a lot of that too. And you have to channel it into something that is accretive to the business. something that adds value rather than something to tracks value. And so what are the components of the business that need novelty on a regular basis? I think. I can give you a hint.

What? Marketing. Marketing. I was just going to say sales like marketing. Yeah. So if you want to build and you want to create, I have the same pitch. Yeah. I put all of my ADD into content.

I've become a significantly better entrepreneur by making content because it distracts me from fucking up my business. This is legit. I just wrote a book about this. I just wrote a book about when leaders get bored, they just fuck it all up and burn it in the city. Yeah. And I just keep doing it over and over. So instead, just like, just paint the city.

Okay. Just paint it. Don't destroy it. Just paint a different color. Got it. And so that, like, and that goes for everyone. Like my ADD, like I put it into ads. I put it into, like, the reason I write books is mostly for me.

Like, Layla's like, can you just write another book? Because she's like, you're just getting into all of these things that you should just not get into. Right. And so the thing is, is that when I am in writing mode, the business does. exceptionally well because I do so low. Yeah. I feel this. Yeah. I don't normally talk about this, but I think this feels incredibly relevant. Yeah. This is going to feel real for you. Yeah. And everyone else. So let's imagine the business, like everyone's revenue here represents this like line, your revenue, not aggregate, but like this is, that's your business. That's normal business

app. What I realized, this is me, so this is anecdotal, is that whenever I decide to make a change in the business, I see about a 20% decrement or decrease in performance from whatever that change it. So I change a sales process. I change the leadership process. They change an onboarding process. I change something that I have to train people up on something new. Now, even if that change is something that I think is superior, I'm still going to have an immediate decrease in performance. Now, if I assume this to be true, which in my experience, it's been about 20%. So if you're like, what's the data research behind it? It's Alex doing this. All right. Now, if I think that this improvement is going to make, let's say, a 5% improvement in the business, like I think it'll

improve our closing rate by 5% or something like that, then I'm going to take a guaranteed 20% loss for a potential 5% increase. Bad trade. Now, how many months is it going to take me in order to make up for the 20%, you know, 20%. It's going to take four or five months, right? And it's going to, now here's the really fun thing is that on an alternate timeline, you have this thing. But when you leave people alone, they tend to just get better at the their jobs. So you'll get the 5% improvement. And so what's happened is that I've actually created this rule, which is that if I don't see an adjusted, a risk adjusted 20% improvement, so let me explain what I mean by that, which is I need to see a 40% improvement that I think

has a 50-50 shot at happening for me to make any change at all. Yeah. And so I have a list right now. It's Alex's big list of ideas. Yeah. Which I encourage you to have. Okay. And I had it. It's on my phone where every time I think of something else that we could do to improve this business, instead of messaging the team and saying, hey, guys, emergency meeting, we're going to do this is such a great idea. I just write it down. Yeah. And I just keep living my life.

Okay. And every once in a while, I'll have one where I'm like, this is actually a 40, 50% potential move. Then I'll go to the team and say, here's my reasoning behind this. And then they'll say, cool, you have four other 50%. return moves that you've told us about in the last 30 days. Is this better than those ones? And then I'll look at it, be like, no, that's not better than those ones.

And so then I'll keep it on my list. And in the event that the entire team has banned with, and they're all breathing a little too easy, then I can go destroy their worlds. Right. But what's ended up happening is that my businesses have improved so dramatically by me just saying, let's just let people do their jobs. And so I'm going to be crude yet again, just to emphasize this point, which is that I have grown to accept that some shit stays fucked.

Yeah. And so there are tons of things about the experience that you guys went through today. Hopefully it's been really positive between yesterday today. I hope it has been. The team was great. But there's probably a hundred things that I want to improve about it. But every time I want to go improve one of those things, four others drop. And it's not worth the cost of change.

And so most of us just don't factor in the guaranteed 20% decrease for the potential which we're usually overly optimistic on, I think this will be 40%. But then after a result said and done, it's five. Was that worth it? No. And so, hopefully this is not, you know, I'm not just talking to you. I see a lot of headstomting. This has been one of the most useful raisers that I've used as an entrepreneur and

has made all of my business significantly better. And so tactical takeaway for you is, number one, channel your ADD into the stuff that benefits the business by being creative. Yeah. Number two, make a list of all your crazy ideas when they come up and don't tell anyone about them. And if it seasons for two or four weeks and you still think about it, it's like maybe when you go to the store, you're like, maybe I'll buy this dress. And then you decide not to. And it's like, if you still think about the dress a month later, then go back and buy it. But in the moment,

if you buy it, then it's usually a terrible decision. And so it's the same thing with this. Put the list down, sleep on it. If you're still thinking about that idea a month later, it probably has some legs. Yeah. Right. And then number three, if I am going to pull something off of my big list of crazy ideas, it better be worth it because I'm going to absolutely detonate a bomb of my business and it better be worth what's going to happen when the dust settles. Wow. This was hard for me to hear and like everything I needed. Thank you. Cool.