The Game with Alex Hormozi - The Game Beyond The Game: Profit, Predictions, & Giving | Ep 131

Episode Date: June 19, 2019

“I get a ton of fulfillment from knowing that we're setting other people free.” Today, Alex (@AlexHormozi) discusses a new gym model that reduces risk and increases profits for gym owners, as well as the importance of breaking limiting beliefs about money and finding balance and meaning in striving for success. He also talks about the concept of the four quadrants of wealth and the different levels of freedom that can be achieved through business ownership.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:(0:55) - Exploring limiting beliefs around money(2:43) - The four quadrants of wealth(4:11) - Understanding the game of wealth & achieving financial freedom(6:51) - How to tap into a bigger network and create a bigger vacuum(7:53) - The benefits of giving and making money(11:34) - Identifying and overcoming obstacles to achieve financial freedomFollow Alex Hormozi’s Socials:LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition

Hello, everyone. Happy Saturday. Hope you guys are starting your weekend off as rocking in on as I feel like I have started super early today with the intention of crushing. And I'm going to send some productivity vibes your way. That being said, I had a piece of content that I wanted to make. And there's just been a couple different ideas bouncing around. And it's been about money. So I'll talk about money in a while. And it felt like the right time. And so this is a bit of a prediction that I think is going to happen for 2020. So one of the things that we recently, you know, discovered or put together is we have our hybrid models. So if you've been following us on any social media stuff, or me at all, we see that we've been talking a lot about it. But it's basically a new gym model. And so it essentially reduces three-quarters of the risk of owning a gym and exposes you to more upside from a revenue standpoint

and then obviously far more from a profit standpoint. So it's incredibly exciting because it's going to change the way it's just black and white math, like it's a better model. Now, that being said, here's why I'm gonna make a prediction about what's going to happen. All of the gym owners who switch over to this and who come into this world and now make far more profit are going to run into the limiting beliefs

they have around money. Because up to this point, they've been able to get by on making enough to survive, making enough to be comfortable, whatever it is, right? They get out of survival to making it, right? But they can't turn that next corner because they start self-tapeatize. And so my prediction is that we're going to have a ton of people come into real conflict with some limiting beliefs that they're carrying from their childhoods, from their upbringings, from whatever it is.

And so I wanted to talk about a couple of things that have helped me related to that. And Layla, when we were at dinner last night, when I say at dinner, I mean at my own dinner table with Layla, she was talking about how when she met me, I broke a ton of beliefs for her around money and that she was raised kind of in a, a household of poverty in terms of poverty thinking, poverty mindset around money, not like actually raised in poverty, but just like the way that everyone thought about money, the way people talked about money. And so I want to share a couple things with you. So one of the reasons, they're going to be unrelated, but they're all going to relate to money. So one of the reasons I think biblically, and this isn't me saying that that's like necessarily your truth, whatever, but I'm saying that giving is so big in almost all religions is because I think that giving allows you to have a game outside the game.

What I mean by that is that when you have a game outside of the game, it makes you realize that the game we are playing, the business game, is just step one, right? And then when you take that money, you enter and you buy your ticket into the next game. And so some of you may have heard of the four quadrants of wealth, right? So first is you are an employee, so you have a job, right? The next level is you're self-employed, so you own a job. The third level is you own a system, right, which is a business, you're a business owner. And then the fourth level is investor, right? You're an investor.

And so now you own pieces of many businesses, right? And so your money, so the first two, you trade time for money. The third one, you trade other people's time for money. And then the fourth one, you trade money for more money. okay and so that's sort of the quadrant and so I get reached out to you by my own sales team I get reached out to by gym owners um who are like I you know what do what do I do like how do you stay motivated when you've made it and I always find that interesting because like everyone's definition of making it is very different you know I've got some sales guys who are like I've made it and

they have $25,000 in in student loan debt and they've got 50 grand in the bank count they're like I've made it but that's because that's their that's their perceived reality you know what I mean and then other people who've got zillions of dollars and feel like they never made it. So everything's kind of a balance point. But what happens is if you realize that the game you are playing is not the end goal, you making a profit does not mean you win.

It means you now bought your ticket to the next game that you are now the small fish in, that you are now just starting, that you now just have training wheels for. That's when you realize that there's a much bigger game that's at play, right? And so like if all of us are after freedom, it's very difficult to have to own a business and I'm not saying it's impossible. I'm just saying it's very, very difficult to have a long-term sustainable business that you are not involved in

that does not occupy your attention. It's very, very low likelihood. And so for the most part, if you're a business owner, you are working and you're trading energy in some capacity to get money out of the business. But the ultimate goal is freedom, right, or fulfillment, however you to find it, but the goal is to be able to live life on your own terms. And for me, I define that as temporarily in terms of time, geographically be whatever I want, and then monetarily, do whatever I want, right? So I can afford to do whatever I want, whenever I want, wherever I want. And so those are kind of the different, you know, capacities of freedom that I sought out when I started the business. And so that's where kind of the fourth quadrant of wealth feeds in, because now your money is

making you money. And so then at that point, you can actually be free. Now, if you weren't aware of that, game that you're only between step two and step three, then you would realize that there's a lot more game to play. And so when you're like, I don't know how, like, how can you be motivated? It's like, dog, you're halfway through. Like, and the last two are the hardest levels to get through. So like, you got through level one and you're at level two. Like, cool. Like, you still have two more levels. You know what I mean? Or whatever it is. And so just understanding that piece is, I think, a really important component. The next one is, and you guys have heard of me talk about this, but for some people, for people who have families or people who have, you know, wives, whatever,

the game outside of the game for them is that they have to provide, right? Which is why people who have families make more money, right? Sales guys who have more malice than me make more money. Why? Because they have to because their game outside of the game is bigger than the single guys. But if you're the single guy, how can you make your game outside of the game bigger than the family males? Right? Because both of you are just making enough money to, to, to,

to meet requirements. It's just that the requirements of the family men are higher than the single man, right? But if the requirements you have, and this is where I'm looping back to giving, is that you're trying to give into something that's much bigger than you, then what you create is an unlimited requirement. And so when you have an unlimited requirement or unsatiable requirement that you have to meet, right, a need that can't be met, then you create a demand for money that can't be met. And that's what ultimately breaks you free from the being satisfied with how much you make, right? Hey guys, love that you're listening to the podcast.

If you ever want to have the video version of this, which usually has more effects, more visuals, more graphs, you know, drawn out stuff. Sometimes it can help hit the brain centers in different ways. You can check on my YouTube channel. It's absolutely free. Go check that out if that's what you are into. And if not, keep enjoying the show.

And so, you know, if you see us give, there's definitely a part of me that knows that when I give, I'm giving because I'm expanding what I believe I'm connected. into so that I can tap into a bigger network of something that's much bigger than me so that I can fill that or I can create a bigger vacuum of like man we got to go back to the well like we got to go to work and we have to like we have to renegotiate our rates with vendors we have to push harder we have to grow right and from from the from and that's from the business side rather than from the impact side right so there's both sides you can get motivated by like you can get mission driven

in terms of the fact of like us I want to save jims I want to save the industry I want to do all these these things to help everyone who's on here out you know what I mean like, and I get a ton of fulfillment from knowing that like we're setting other people free. I do, I do believe that. And I feel that. But on the flip side, from the business side, how can I, how can I also create a vacuum? So it's both sides, not just mission, but also from the business side, from the, from the Alex selfish side. How do I, how are I tap into that?

And so tapping into that is like, I'm going to, I'm going to double down on our margin and I'll double down on being efficient. I'm going to double down on all these different aspects of the business because we owe it to the mission that we're, that we're attacking to be profitable. to make money so that we can give more, right? And so that's why I think people who give more, make more. It also makes you feel good, which is nice. You know what I mean? But I've heard the statement like anybody who says money can't buy happiness hasn't given enough away.

And I kind of like that. I think it's worth giving a shot. So you can. But anyways, so that's kind of my prediction overall is that a lot of people, once all of the obstacles of making money have been removed from them, because the things that we have coming out in hybrid are just sick. You know what I mean?

Like all of the biggest pain points and all of the biggest options that most people have from lead generation to like, I'm saying ALN, from getting people in the door to having a strong sale, having a great offer, all of those things we've like really, really taken care of. And so there's just going to be people who are in a vehicle that's so effective at making money and making profit that they're going to have, like they're going to have to deal with some of their own demons because up to

this point they haven't had to because they've been able to focus or get distracted by other shit. But now you're going to come face to face with the fact that you have limiting beliefs that this whole time have been underneath sabotaging you because you don't believe you deserve to be rich or because like if you say I want money, you feel weird about it. And so this is a fun exercise for you if you have like family members who, you know, are super bad with money and like, why do you want to make all this money, why you're so motivated, all that kind of crap, right? ask them to repeat like I want to be powerful you know what I mean if you say that to someone and they're like I don't want to say that I'm like why not right power isn't good or bad it's neutral

it's just potential energy right money isn't good or bad it's just potential energy money builds hospitals money builds wells in Africa money prevents HIV money is what drives all of these things right money does good things so does power right and so does power right and so And so to say that you don't want money or that wanting money is bad is like saying you don't want to make an impact that you don't want to have more leverage and be able to help more people. Because like no matter what like anyone's excuse is bullshit. Because what they do is they do that so that they can excuse themselves from trying. Right. They can not feel bad about themselves for not for not succeeding.

Right. And they're like, well, you know, you shouldn't want money because money. Money is not going like, cool, good luck, man. Like good luck doing anything with your life. Right. I'm just being real. This is just me off the cuff. And so it's learning that the game is a lot bigger than you because until you do,

you'll never be able to make more than what is required for you to live. And that might not be a lot because most of us don't really need that much, right? I mean, I don't need that much. Like, we did our bills. Layla and I live on $9,000 a month. You might be like, well, that's a lot. It's like, well, relative to our income is really not. Like, we don't need a lot.

But if you don't need a lot, then like, and even after you've hit your retirement goal, You have enough money that you're good for your set for life, right? Then how do you get motivated? It's got to be something bigger than you, right? You have to create a vacuum and learn that there's a game beyond the game. And so that's kind of the moral of the message. If there's a moral of the message, it's like, one, identify what, like, the issues are that are holding you back. Like, if you can't say, I want money and it doesn't make you feel weird, like if it does make you feel weird, then you've got stuff there.

You've got to figure it out. I want power. I want to be powerful. Like, if you can't say that, like, you've got stuff that you got to unpack, right? And so if you can say those things and you can believe those things, then you'll have the things that come with that. Right. And you'll be able to move through level one, level two, level three, level four, because you'll realize that it's not about this game. Like, just getting the business profitable is the beginning.

Right. Like, that's where we were like, I had my first month of profit. Now what do I do? I'm like, you keep making money. That's what you do. I can't sell you how many times I've seen gym owners who make their first two months of profit. They're like, okay, what do I do now? I'm like, you keep doing it.

You keep making money. And it's because the thing is, the goal for them was to make money. The goal was to have money. I'll say it again. The goal for so many people is to make money, but the goal was never to have money. And so they continue to just keep trying to make money, make money, because that was the goal rather than have money. having money. And so once the goal becomes having money, then you can start moving to level four, right? And then you realize that you have so little money when you start making money that you're like, oh, crap, I need to make more in order to use this money to make more money so that I can eventually get the freedom that I sit out to get. So anyways, guys, hope you have an amazing Saturday. Just thought I would give you my two cents on that because it was on my mind and I had a couple conversations about it. But 2020 is going to be interesting. We're going to have some real, real belief breaking that's going to happen, which is going to be cool. I'm stoked for it. That's why I

had to roll hybrid out with coaching because there's so many times where like, people are you sure? And I'm like, yep, I'm sure. Like, yep, you'll make four times more money. It's like, I don't know if I'm prepared for that. I think I'm just going to keep the overhead. I'm like, okay, cool. But you're choosing to make less money. Like, as long as you're aware of it, you're choosing actively to make less and expose yourself to more risk. They're like, ah, like, ah, would like, you see people like freeze up like that? That's beliefs being broken. That's beliefs coming in contact with reality that's different. And so you're breaking what they believe, their whole life that has created this shell around them

that gave them comfort, but it was false comfort. It was false comfort because it was just what they knew. It didn't mean it was safe. A lot of people who grew up in abusive households go back to abusive households because they're comfortable there. It doesn't mean it's safe, right? This is a difference. So anyways, again, hope you guys have an awesome Saturday. If you found this valuable, drop a like, drop a comment, all that kind of good stuff.

and I will catch you on the flip side. Bye.