The Game with Alex Hormozi - The Reason You're Not Successful | Ep 410

Episode Date: July 19, 2022

Do you know you’re making the same mistakes over and over again? Here’s why… Today, Alex (@AlexHormozi) talks about how he consistently generates leads, the key piece that he was missing in multiple different platforms, the multiplicative effect, and the importance of volume.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: (0:19) - Boring work, prioritize what matters, volume-skill-time equation(3:42) - Alex's stories: volume's importance realized through experiences(8:20) - Multiplicative effect: quick results with volume(10:13) - Skill's importance for development and repetition(13:27) - Equation: multiplicative, not additive, as mentionedFollow Alex Hormozi’s Socials:LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition

I'm going to break down how I learned how to consistently generate leads independent of platforms. And the key piece that I was missing in multiple different platforms, I'm going to tell you five key stories that my life that massively impacted how effective my marketing was as a result of the exchange. Welcome to the game where we talk about how to get more customers, how to make more per customer, and how to keep them longer, and the many failures and lessons we have learned along the way. I hope you enjoy and subscribe. So a few high-level observations before I dive into this. The first thing is there's a setting in our community,

called do the boring work. And a lot of times we don't confront the work that we, that must be done, because it's not exciting or sexy, and it feels somehow like it's beneath us. You know, prospecting and doing $100 a day can feel tedious. You know, posting and repurposing the same content across lots of different media sources can feel tedious. You know, reaching out to people you know and asking them if they know someone who might be interested in your, you know, products or services might feel tedious. Or creating, you know, 100 different ad variations with different hooks and headlines can seem tedious. It's very easy to understand, very hard to do, mostly because people don't have the discipline and the work ethic to go through the boring work, which kind of leads to the

second one here, which is that there's a saying between my closest friend and I, Dr. Kashi, violence is the answer. Sometimes when you have this outcome that you must achieve in your life because of the goals and insecurities that we have set upon ourselves, that just being violent with the level of activity that we are doing will ultimately get us much closer than, you know, the nuances and the skill that sometimes we like to project and pretend matter more than just physically doing a sheer higher volume of work. Number three is that if you do more than you are doing right now, you will get more than you currently have. And that is a promise and you can take that to the bank. And number four is do what matters most first. So right now you probably have

lots of things that, you know, fill up your day in the morning, all that kind of stuff. But the things, there are only four activities that will actually generate more business for you, period, that is new. all right number one is reaching out to people you know number two is posting to an audience that you know number three is reaching out to people who you don't know one-on-one and number four is is advertising right there's the four only four ways that you can get new clients right and so if you're not doing one of those four things and you're struggling to get customers you're not doing lots of those four things as your primary activities then that is probably one of the reasons that you don't have the amount of customers that you wish you had all right and so what I want to do is take this quick

moment to introduce an equation that I've thought a lot about, but it's V times S times D. So volume time, scale, times time. And this is kind of a flywheel that feeds itself. And I'll get to the actual wording behind this. But essentially, the more volume to do, the better you are at it and longer you do it, the more throughput you will ultimately have. The more outcome, the more clients, the more sales, the more leads you will ultimately have from doing it. All right? So let's dive into this in a little bit more. So in other words, and this is based in just like pure foundational principles of logic, right? The more we do, the better we get. The better we debt, the more we do because we like it, because we're better at it.

And the longer we do something, the better we get. The better we get, the longer we do it. The longer we do it, the more of what we did compounds on itself. And this is the same reason why if you start doing cold outbounds or start building a pipeline, it starts to compound on itself. And if you start doing business over a long enough period of time, there just becomes this larger and larger audience of people who know you for doing this thing, right? And I'll show you a couple examples in some of the stories and examples I have today that will show you how compounding massively affected my life. And so in this way, each of these three variables, volume, skill, and time feed each other,

but it all starts with doing. And so these are the three. We're going to focus just on volume today because I want to be mindful of your time. And so I'll tell you a quick example of this. So this is probably a decade ago. I'm starting my gym, first business I own, real business they own. And someone's like, oh, you should run flyers. And I was like, okay, cool. So I went out. I did a bunch of flyers. And it, you know, it didn't really work for me. And so, you know, a few months later, I was talking to a friend of mine who had, you know, multiple successful locations. He was doing well. And I was like, hey, you know, he's like, you should do flyers. And I was like, nah, I did that. It didn't work for me. He's like,

well, you know, what was your, what was your test size? And I was like, test size. What do you mean? He was like, well, how many did you test before you, you know, scale it up? And I was like, well, I mean, I put 300 out. And he was like, 300, like total? And I was like, well, yeah. He's like, I don't even test for less than 5,000 flyers. And all of a sudden I was like, whoa. And he's like, yeah, he's like, I'll put out 100,000 flyers a month.

He's like, and I'll get a half a percent or a percent back. He's like, who walked through the door. And he's like, yeah, but 100,000 flyers and percent back, I get 30 people a day walking in my store. and I was like, holy cow, my understanding of the sheer volume for the activity that I thought wasn't working was just dramatically under what it really was supposed to be. And in that moment, I had a belief broken about what volume really means. This happens all the time. And I'll tell you a couple other examples in a second. But like, this happens all the time even in like fitness stuff.

People are like, man, why can't I get jacked? And I'm like, you know, why can't I grow my arms? It's like, all right, well, how many sets of arms are you doing every week? And they're like, like, well, I train arms twice a week. I'm like, what do you do? And they're like, well, you know, like three sets of 10. And I'm like, that's it? Like per week? Like, so six total sets. They're like, yeah, I'm like, well, try 12 sets six days a week and I guarantee your arms will grow up. And they're like, seriously? I'm like, yeah. Imagine that. The more you do, the more you look like you can do. So I'll give you a different one that I had. This is in a paid ad's example, which is similar to flyers, just a different platform.

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. I had an agency owner who was walking, who was talking to us within our software company. And he was like, hey, you know, my lead flow is slowing out. I can't seem to scale above a certain amount. And I was like, okay, well, you know, how many pieces of creative are you putting out, you know, per week? And he was like, he confidently answered, right? So he was like, he was like, oh, he's like that we have on point. He's like,

we're putting out like five to ten pieces of content a week. And I was like, per week? He's like, yeah. And I was like, dude. And I scrolled over. I shared my screen of my creative department. And I was like, we're testing 30 pieces every three days. He was like, what? I was like, yeah, it's level of output, quantity of output. The level, most people dramatically underestimate how much work it takes to make money, right? The thing is, is once you understand, and for most people, and this is the point that I'm hoping somebody who's like, hasn't gotten their first customer or wants to start on a new channel, if you already have one working, is you usually need to do a lot more because your S in that equation, your skill level is low and you have no time that has

compounded for you. So you must compensate with extraordinary volume so that you can learn the skill and then begin the compounding process that will give you the throughput or outcome that you desire. And so a lot of times you got to do a lot more in the beginning to get the ball rolling. And when I was talking to Grant about his overarching content strategy, I was like, hey man, you know, how many pieces? What's the framework that you use? And he was like, bro. And this is actually, this was in a different call I had with him that. It's not not on the channel. He's like, bro, if someone's trying to sell you a framework, he's like, they're just trying to sell you something. He's like, it's about 10x.

And he said that it wasn't saying it in a, in a pejorative way. He meant it genuinely. He's like, dude, he's like, we just take massive action. He's like, we just try and be omnipresent. He's like, look at your Instagram, look at my Instagram. We pull both them up. And he's like, I'm posting six times a day. He's like, I'm posting 15 times a day on Twitter.

And he's like, you just pulled up every one of them compared them to mine. He's like, I'm just doing way more than you. And I was like, man. and he's been doing it for 10 years longer, right? And so that was a huge epiphany for me. And then for me, I switched from one time a week to one times a day. And here's what's crazy. My growth organically 40xed from a 7x increase in effort.

So there is a multiplicative effect here because, sure, we did more, but we got better at the doing. And then the more we did, the more each of those other pieces fed one another. Right. And so again, all of this starts with the doing and taking a lot. lot more than most people anticipate to get the result and get going. And so this is a different nuance on volume. This is more level of effort, but I think it bears mentioning because for this concept to kind of sink in, I want to hit it from a couple different angles. So this is the number one video, or at this time, is one of the number one videos on the channel, and I made this like a

month ago. And the thing is, and I realize that quality, most times Trump's quantity, right? And the thing is, but quality and quantity trumps just quantity, right? Or just quality. And so this particular piece of content took me 20 hours to actually put the slide deck together. And then two days of travel to go film. And then, lo and behold, it ends up being, you know, the number one thing on there. And to me, I was like, well, that's not really surprising. I spent a ton of time on this.

And so it was just, and like, I'm just saying, I get reminded to this at all levels of the game. You know what I mean? And so I'm making these videos because, like, as I'm learning it, I'm sharing it, so that hopefully it provides some value to you. Like, it just takes a lot more work than most people think. Like, Layla, this is four or five years ago when we were refilming an entire content portal. So she had probably recorded, God, I don't know, 70 or so videos with, you know, trainings

and everything. And she got done and she was like, I don't think these are that good. And she was like, I was like, she's like, I just, I don't know. I don't know if they're like hitting the way I want them to be. They're like, just not as crisp. and we sat there and I was like, we'll do them again. She looked at me and she was like, yeah, you're right. Because the thing is, and I've said this before and I'll keep saying it.

Like your work works on you more than you work on it. The thing we're developing is our character because that's the ultimate prize that we get at the end of the race. We can't keep the stuff that we have with us. And so we're doing this work to become better people. And so if you do it again, it's nothing bad about it. You're just like, cool, I get more practice at doing the thing. and my S is going to get better in the throughput equation. So even if you did the same in terms of volume of output,

the skill on the equation, the S, is going to be higher. So you're still going to actually still get more throughput, even if you do the same effort again, right? And so that's why the level of effort and giving a shit for lack of work term and really working like violence is the answer, doing the boring work and putting the time under the bar in to use a fitness analogy is what is required. And most people dramatically underestimate the volume.

All right? And so I'm going to tell you this last one to wrap this, wrap this little piece up, which is I wrote this book, right? And it took me basically like a year to write it. It took me two weeks to write it. It took me a year to edit it. And right now I get DMs every day like, what is the second book coming out? And so right now I'm on the fifth version of book two, end to end. I did completely copy, write, edited from a professional editor. And that was version one. And I've since made four more versions since then. But the thing is, is the difference between that. level of effort is why many times I think things don't work out is that most people put like a seven out of ten effort or an eight out of ten effort and then look at somebody who put a ten out of ten effort in and think well I didn't put that much less effort in but you don't realize the difference

between an eight and a ten might be five times the work but also the difference between an eight and a ten might be a hundred times the outcome and so the actual net outcome on the incremental increase in work is still worth it that's what's crazy is that if it takes five times the effort to go from an A to a 10, you might get a hundred times, even though you only did five times more work. And so this is one of these beliefs that I've ingrained in myself within how we do business, but I'm sharing it with you because most things that most people make suck. Most products suck. Most marketing sucks. Most businesses suck. And most people suck at the things that they think they're good at. Right. And it's because they don't even know how to work.

They don't even know how to do it. And I'll tell you this final story to wrap this up. when I was a legal intern in a past lifetime at a chemical company called Archema in France, believe or not, I worked there in the legal department and this older more experienced, you know, senior lawyer in the department kind of like tap. I was like, oh, I'm going to go back to work. And she like tapped my shoulder and she was like, you don't even know how to work. And I was like, what do you mean? And she was like, you're so young. She's like, you don't even know what work really is. And it just hit me and it struck me like to my core because I was like, how can you tell me that I don't know how to work? But here I am 10 years, 15 years later.

And I think to myself like, man, I had no idea what work even look like because I don't even know how to focus the way I do know. I didn't know how to eliminate distractions. I didn't know what it looked like to just put rep after rep after rep after rep in to just get that thing just right. And the beautiful thing, especially when it comes to marketing stuff, is that when you make those each of those posts, each of those outreaches, each of those calls, each of those ads that you run make you better. they increase the S. And so in that way, the V, the S and the T, the volume, the skill, and the time work on each other and then yield you a higher throughput because they are multiplicative, not additive. And that's like the one thing that if I can drive this home is that most people just do so much less volume than they think.

And then they look at the vehicle that they're using and think, why is this not working when the reality was that you were not working? Because you did not know how much work really was required to get to where you wanted to go. And so with that, in other words, most times you just need to do more than what you're currently doing and a lot more of it. Okay, so if you don't know me, like I said, my name's Alex Sean Mosy, Iownacquisition.com or business investors, our portfolio is about $85 million a year and I have nothing to sell you. Mosy Nation, keep rocking.