The Game with Alex Hormozi - Q&A. From Sales God to Scale God | Ep 931

Episode Date: January 8, 2026

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 | ⁠⁠Acquisition ⁠

I have now the distinct pleasure of doing lots of Cuis-Nays for businesses. Selling to rich investors and entrepreneurs who are trying to avoid taxes. You do $6 million in revenue. You would like to be $24 million in revenue. And when stopping you is that you're 68% of your revenue, despite the fact that you have seven agents. Yes, seven plus me. And I'm four million of... No big deal.

Not a brag. I don't have you noticed. Okay, cool. So, why can't we do more? So each issue of seven agents that now do two billion in aggregate. Are they unskilled? No, it's in the industry average. Two of them are quite young.

Good for that age. So they'd, um, a few hundred thousand dollars each, a month 21, one, one 23, so for the age that... Okay. Okay. So let's just skip here and say that you have enough human beings in your market who can do this. You have metrics for their funnel process.

us to be honest I've just been designed the system so obviously so you're good with your bottle yeah right can you afford to do good margins in your yeah yeah so you can skip money yeah we have about four million that's cool fantastic and those tax free by the way manpower's the issue there's one unique issue in my market which was so it's manpower's issue why can't we do more yeah so what's the unique thing about your market yeah so So in the UAE, you need the office before you can hire the person. You can't hold this because everyone needs a visa.

So you actually have to make a big lead, take the office for 40 people and sign a four-year contract because the government will come expect. How much is that cost? The office that we're negotiating at the moment in dollars, like $350,000 plus per year? Yeah, yeah. Okay. We negotiate. If you're a million profit.

Yeah. Right? But you can make 3.6 and then have all the scaling opportunity, you know, your business. We're going to be in the office now. Yeah. 10% of your profit, reinvestment and growth in business. Yes. Okay.

So what's the issue? Higher in the talent, I guess, because I'm so much. So that's not the problem anymore. So we nick that. It's lower risk for me. Thanks for being a sport, by the way. I've had a good, yeah. Well, not that good.

You got to scale. Okay. So your market's obviously not an issue. obviously not an issue. Yeah, nice. It's so good. Okay, so let's take out your four. Yeah, two million is what it is.

And so seven people equals two million dollars. So let's say $300,000 per person, just using rough men. So if you wanna get to 24 million, you need 80 reps. Yeah. Okay, cool. So you need, whatever, 73 more reps than you currently do.

So what are you doing right now to acquire agents? Yeah, no much. Like nothing to goodness. Yeah, nothing. Well, yeah. That explained. Yeah, we've only got four this space left, so when it's like, we're too past this.

Yeah, right? So I'll give you this for everybody. There are some negotiations that I have made in my life that were so dumb in retrospect, you can put it differently. If you're going to get office space, for sure if you want your goal, right? The difference in cost of office space between this space and a better negotiated space for the same space, or this space and yet another office A at a good price or office A at a good price or office A at a mediocre price versus office B, whatever.

The dump to there is you negotiate to $300,000 a year. So you save 50 pounds. Who gives a shit? Right? Sell a house. Whatever. The point is that, let's say it takes you extra time. It's like you make $500,000 a month right now.

So what's that? That's two and a half days of work is generated. You can generate the difference in two and a half days. If it takes you a month extra to try and nickel down, who cares? You have the one you're doing right now. We had to submit a plan application. Basically, we're waiting on that and then we're done. Price is negotiated.

It is negotiated. I mean, we're trying to get approval from the government to change it into the space. But you're going to do the space. We're going to have desks. You have four desks open right now. Yeah. Okay, so that's like 50% growth.

So why not more? I guess I don't take the time to train people as much such as I need to hide that out because, see, I'm at my own. a lot on this lovres for me and better for me to keep billing one billing so I need to hire the person that does the hire I'll softly push back I'm not against it this is more just figuring this out at some point your identity will have to shift from sales god to sales training god and it'll be about not how good I am at closing but how good I can make anyone at closing and so fundamentally you do behaviors you have a big laundry list of behaviors that you do

and you being really clear about what those are this is what's tough with winners in general is that a lot of people don't know why they win Michael Jordan way better player than a coach but there are things that you do that if we codify those things we can get somebody else to do those things and if we do that then they'll sell more and make you money right now you can out-earn anyone you will not be able to in the business you want to build outburn everyone. And so the sooner you can bridge that gap, the sooner you're going to start building the business you ultimately want.

Now I'm sure on some level your ego is tied to how much money you made. But like big game, right? No one cares what you make. They're going to care that you built an infrastructure that has 80 guys or 100 guys that's knocking 30 million a year on and you're four. Right. And I'll say this, I think you keeping your chops being the aspirational person, I think there's elements of that or especially in the space you're in makes sense i think that if you were to say right

now 25% of your time so you lose a million dollars a year i'm saying roughly you hard block for reinvesting in the team you will get disproportionate returns we'll make more than a million dollars back getting each of those other guys an extra one deal a year yeah it's also like i do all the content so all about needs are organic yeah so it's also okay so so so so Back to this, what do you have to do to get where you should feel it was like tomorrow, right? You have four desks when I'm using it. But your entire marketing, you are in the hiring and training business, ironically, that's the business you're in. He's our president here at ECQ.

He was the former president of Real Brogridge. Yeah. He's super familiar with the space. But all this time doing. Hiring training, all recruited. All they did was recruit agents. And so he knew that they had a system. If you work through our system and you have our resources, you're going to sell X houses per year, period.

So once you know that input output, it's just like how many people can we put through this black box? Right now, you don't have the black box because it's up here. So as we can't get to document success in sales. And each step and then try to get it. When you walk you to a house, where do you sit? Has you been walking through the process of selling house before? No, okay. It's called the gameplay.

Let's walk you, blah, blah, whatever. You have to script all this stuff out? Yeah. Anything someone says to a customer, should be script. Okay. Okay. I think you actually can get to 24 million dollars you heard. You could totally do it in 24 months if you shift your perspective from sales God to sales training God or sales recruiting God. Yeah. Right? It's to take that link when the new office is done. You start trying to take it now. Yeah. And I think that long term, the business that you want to ultimately build is going to be one where agents that are already good that are already doing $1 million, $2 million, period, are attracted to your brand because it's big enough that you can start feeding them weeds. And so you can start feeding them weeds. And then you don't have to start taking these people from zero to hero. You can just take heroes and become superheroes. That's where you want to be.

That's how nice to go. That's all be. Of course. We have to build a brand. But going from seven to call it 20 or 30, and then this firm going to call it, you know, that be like 12-ish, maybe $15 million a year that you'd be doing. They're doing a million a month plus, right? You can actually reinvest a portion of those profits into consistently reinforcing your brand.

The long term, your big brand should attract talent and reinforce high status so that people would rather be with you and get mentorship and help from you for their careers. Thank you. Thanks, you guys. Make your girl feel nice. Alex, I probably didn't know this, but I'm your long-lost Chinese cousin from Australia. I believe you. My name is Max.

I take your mission very seriously. Within 24 hours of your book on Chuck-Mondon month ago, I was so excited. I had eight shots of coffee and I saw the night that morning. My study is a school community called the Mali School, inspired by you. I do what you do but for the Chinese entrepreneur. I had 75 members joined within the first week, charging $1,000 each. Lifetime, monthly, one time? I'm doing a funding member stage, so it's once in life,

and then I'm going to do $1,000. Okay, got it. I got two questions. The first one is I really want to teach the 1 million monthly rev target on school as soon as I can. What do I need to do? Right now you're at 75K total. Yes. Okay, so what did you do to get your first set of customers?

I have a book, I have about 20,000 subscribers and I summarized your three books in Chinese. What if you're like, write another book, I'll make some money. What is the consistent value that you provide the people in the community? So I've done this for many years and I've made... I'm not summarizing a book. Okay. He's like, I take your content doing it too. I've been a small time KOL in Australia for the Chinese people.

KOL. K opinion leaders. Okay, got it. So, I have a group of audience. Got it. Got. Who's the audience? Overseas Chinese entrepreneurs who are studying, making some.

Okay, got it. So the thing with membership, who here is a recurring business? Well, then this will, I'm going to go a little deeper on this because it's probably valuable for a handful of you. In order to make a recurring revenue business, actually recurring, one of the big mistakes in the education business, which is the way you're in right now, is that people will take something that is inherently valuable and try to bill for it like it's consumable. So education has super high one-time value, right? The day before you know how to advertise, advertising is unbelievably valuable.

The day after you know how to advertise, why would I pay for something? I already know how to do. It goes from huge to zero. That is the problem with education in general. Everybody who has an education business wants to build continuity. Continuity is very hard to build if you surely have education as the primary value proposition. In a school community or any kind of recurring revenue business, you need to create or at least demonstrate consumable value.

I'll give you a couple examples of this. So there is a super low-term community that does 3D print in school, what they do is they find the hottest trending items, and then they create the 3D blueprint, I don't know how this stuff works, but like what, three blueprints, and then every week they upload those blueprints to their community. And so because it's trending, it's new, it's consumable. You consume this week's things, and next week's the trends are different, right? News in and of itself is consumable. Last week's news is no longer valuable. This week's news is, which is why new subscriptions do work, right? Different example. There's a real estate business

that did wholesale. They would find all the hot deals in an area, pre-vept them, do their calculation. These are all the hot list. And so every week, every local market, people in their community would see the building. And if they liked it, they already knew pre-vetted. That creates this consistent thing that gets consumed. And then next week, there'll be new deals, and so those deals are gone. Like gym lunch, we made new ads that we tested every single month that we would then give to the gym owner. So rather than them spending money, wasting money on production and testing ads that don't work, we would pre-fill test

and hand them only the winners. It would just take winning ads and run them. But what do you need next month? More winning ads. And so that's what gave Gym Watch the super high margins that it had and kept it sticky. Because it was media functionally

rather than, quote, education. And so we sold the box, which is like, this is the Jim Launch system, this is how you run the gym, this is the price point, the sales process. Once you know the sales process, you know the scripting of the bundles, you have the white label stuff.

You got it. It's zero value now. So what we do is we want to sell like if you have inputs, you've got a black box, and then you've got output being money, right? This is your one-time thing that's very valuable. You can only charge for it once. This is much smaller,

be charged for it on a recurring basis. You sell the inputs to the machine. So, with your... business, you will probably have to niche down, which is why niching is so valuable, because you can actually create the machine and then sell the inputs. Like, I couldn't make ads for 100 different businesses because they're all different, right? I can't test 100 different businesses. If you have a super new or beginner network, you choose to have one, two or three different business models that work, and then you sell the inputs. Same way. If you have medium and larger business owners,

it has to be about something different, which is probably going to be network. It's going to be access, group negotiated discounts that you can do on behalf of everyone, and that is going to value much less than something that's one time that's going to immediately make them more. Sometimes, I think this is where a lot of entrepreneurs make mistakes, is that there needs to be a very big discrepancy between what you charge that one time versus the true willingness to pay for the small recurring revenue component of the business. That's okay, provided it's sticky, right? Because if you charge $10,000 up front and then $500 a month after that, it probably would be relatively sticky if someone's willing to pay 10 and it's $500 a month.

As long as the $500 a month was still, like $10,000 buys you some time. But as long as the ongoing value surpasses the five, usually by three or four X, then you're good to go. So I really just back into how can I provide values to all these people? And ideally, in what way can I make it so that each additional member does not detract or dilute the value? The community, but actually adds value. Functionally, that's what a number effect is.

Okay. Is that help? Second question. What would it take me? become your global Chinese partner to help share your message with 15 million overseas Chinese entrepreneurs. You'd have to have credibility. Real talk. The reason I think the content that I have has been able to perform really well is because I had the backdrop of the proof. The Alkimosy brand was built off of $100 million net worth prior to this. It wasn't like coaches, coaching, coaches about whatever. I've already done this thing and that's my proof. They don't need to do it.

need to do this. I'll do this because I like it and I have other missions in my life. But that proof is the backdrop that everything stands on. If I were to partner with someone, I want them to be bullet proof from a proof perspective in terms of what they had done to prove the bait work. Because anyone can repeat the words, I mean, shoot, literally anyone could be the words. The idea that, like, why does my content outperform yours? It's because the messenger is 80 or 90% of the context within which the message is received. Elon can tweet, I'm shitting on a toilet right now, and it'll get 200 million views because Elon's the richest man of the world. That backdrop is so embedded in the message that they're inextricable.

And so obviously there's core components of value, but the why should I believe you is always the big, blaring Vegas lights up of everyone's head. Why should I, because if you think about why is authority compelling, right? Authority is compelling because it actually decreases risk. And so we listen to an authority because we don't have to spend. nearly the mental effort to deduce whether this is true or not, or to what degree I think this is risky to follow. If Warren Buffett gives some sort of investing advice, most people would just say, Warren Buffett's one rich in the world. He's aren't the best investor of our generation,

therefore I will just listen to him. It's actually a more efficient way to consume information is to follow authoritative sources because it takes less cognitive load. That being said, being high agency as a person, you should separate those things. People aren't in general. But if you are a high-eachency person, you should be able to separate messenger for message. No one does, though. And so for me, let's use Napoleon's quote, I'd rather have lucky generals. If I were to do something like that, I'd rather something have a big proof point that they can sit on, then all of the content makes sense within that context.

Thank you. Thank you.