The Game with Alex Hormozi - There's Always A Way & Tactics for Recession | Ep 191

Episode Date: March 24, 2020

"There's always a way if there's will." Today, Alex (@AlexHormozi) discusses various obstacles that entrepreneurs may face during uncertain times and provides tips on how to overcome them. He emphasizes the importance of adapting to changes, developing a thick skin, and finding new ways to provide value to customers.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:(0:27) - Control what we can, like our health, amidst uncertainty(1:18) - Develop thick skin, as high volume game(2:31) - Some industries had supply and demand disappear overnight(3:35) - Flip thinking, take advantage of remote fulfillment for higher margins(6:11) - Best opportunity to quit, adopt "there's always a way" mindset(9:30) - Lowering prices is an excuse, find a new problem to solveFollow Alex Hormozi’s Socials:LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition

This is an opportunity where you actually get to have your customers encourage you to go to remote training where you have lower overhead and higher margin. Welcome to the Jim Secrets podcast where you 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 that we have learned along the way. I hope you enjoy and subscribe. What's going on, everyone? I wanted to give you all an update slash. I just did a one hour call with our Jim Ler's community and there was a bunch of good questions that came up. And so I wanted to give a consolidated version of my answers so that I could hopefully help some of you guys out.

So one of the questions that came on is, what do you say when someone says on the phone, hey, you know what, I can't spend running right now because things are unclear or I'm not sure because I'm unemployed, et cetera, right? So the only real comeback that I have right now for that is you look at the person, you're like, listen, there's a lot of things that we can't control right now,

but the few things that we can, like that's what we should try and that's what we should try and control our life right there's a million variables out there but there's only a few that we can't control so we should at least exert our control over those those being your health right and so that's the only overcome i can i can really provide for like i don't have a job i don't know what my future's going to look like etc is like there's a lot of uncertainty but there's only a few things we can't control and we should at least control those right and that gives you an overcome for that that that that that sale obstacle that being said your going to have people say no. And you've got to just develop thick skin because right now is actually

made a pretty high volume game. I haven't seen volume like this in terms of lead flow in years. And so, which is a good thing, big picture is like there's tons of lead flow that's happening right now. And so you just have to understand it's going to be a volume game, right? It's going to be a volume game. And I think Kale said it. He was like, money's money. Right. And you can't be picky about how it comes and you just got to be able to roll with it. The reason I title this, there's always a way is because depends on how you approach this. Like Layla and I were getting on the phone with some other business owners. They had like 30 locations for physical therapy and they just shut up. They just shut down all of their locations and laid off 100% of their staff, right? And they were having

a pretty bad day. Right. And the reason I brought that up is because we have to be grateful in the fitness world that we actually have a way to provide value to our customers. That's really not that dissimilar than what we have. Sure. We can be super butter. Like, man, I wish I sold toilet paper. Man, I wish I sold food. Man, I wish I sold, you know, whatever, right? There's a shift in demand curve that happened overnight. The cards of the economy got reshuffled and re-delt, right, overnight. And so there's a huge shift that happened. Some industries had massive supply and demand disappear overnight. Movie theaters, right? Zero, right? If you're an event planner, zero, right? Or you serve event planners. Nothing. You serve restaurants? Nothing.

Right? Like we have to think big picture. Are we even that affected? Not really. And here's a fun one for you. Eight months ago, we talked about having a hybrid gym. And some guys took action on that and boy, they are grateful that they did. But the point of me bringing this up is this. eight months ago, we had a bunch of gyms that just flipped a hybrid and they had to deal with a bunch of backlash and things like that within their community. They're like, we're going to be doing remote fulfillment. And the reason they did it was because the margins are so much better, right? This is an opportunity where you actually get to have your customers encourage you to go to remote training where you have lower overhead and higher margin. If you go from $30,000 a month of top line to $12,000 a month of top line, but you eliminate your rent and the vast majority of your payroll, Guess what? You make more money. All right. So you got to be thinking about this in big picture.

Like perspective wise, like, we're actually, we're dealt a pretty decent hand in the fitness industry. So like you got to flip your thinking. And so when I said there's always a way, there's always a way. Like I was a little disappointed to hear the physical therapist said that they just shut down all their locations. I mean, by their third locations, that was my whole thing. I probably wouldn't have done that. I'd be like, boom. All right, we're switching everyone to remote calls. We're going to send everyone bands and balls. and we're going to walk them through their physical therapy session while they're with us. All right? So we're just switching to a remote therapy session.

We'll do it at their house. That way they can still get care, right? There's always a way if you want to be creative. The question, if you don't want to be creative, there's no solutions, right? But there's always a way. All right. So if you can adopt that mindset, because it's the only thing that's going to get you through this. All right?

Right now, you have the opportunity, the best opportunity in the world to quit. You have the best opportunity to quit right now. Right. And right now, believe it or not, this is the sunshine and rainbows part. This is the part where everyone's like, we're going to come together. And your members are excited. They're like, oh, we're adapting. We're not going to let this go down.

Give it four weeks. Give it six weeks. Give it eight weeks when we're in the thick of this. It's not going to be sunshine and rainbows. And you have to remember who you are and who you want to be. You're going to look back and tell a story about what you did right now. And it's going to tell you lessons of who you really are. and who you choose to be.

All right? So I'm just saying this because right now it's fun, right? I mean, sure, panic is one thing, but it hasn't really settled yet. All right? And the thing is, is if you're encountering like, man, I don't have money, man, I'm unemployed now, it's only gonna get worse, it's not gonna get better.

And so you have to develop a thick skin. And guess what? You're gonna get really good at sales. You wanna make it through this, you can get real good at sales. All right, and this experience that you're gonna go through is gonna give you a skill set

that's gonna feed you for the rest of your life because you get the opportunity to have a ton of sales opportunities that are going to come your way. The lead flow right now is insane for remote. Like insane. I haven't seen lead costs and lead volumes like this in a very, very long time. All right. So stacked appointments. And you might you might end up going six for 20. But you made six sales more than the guy who wasn't trying. Hey, guys, real quick, if you're new to the podcast, I have a book on Amazon called The $100 million offers at over 8,000 five-star reviews and it has almost a perfect score. You can get it for 99 cents on Kindle.

The reason I bring it up is that I put over 1,000 hours into writing that book. And it's my biggest gift to our community. So it's my very shameless way of trying to get you to like me more. And ultimately make more dollars so that later on in your business career, I can potentially partner with you. So that's my give. Go check it out. Amazon and back to the show. Right.

And so that's the opportunity that we have right now. And the nice thing is that we can actually make a good. living, selling remote training, and providing value in a way that's actually in excess of what we did in person. You have to remember, we were selling group in person. Now we are selling one-on-one remote. One-on-one is always more valuable than group. Okay. So we have a way of providing an excess of value to our customers. All right, so you have to remember that. Now, big picture, I've noticed that there's two ways of kind of overarching methods of fulfillment for remote. I'm going to walk you through both.

I'm going to give you one warning thing. I should start with the warning first. I have noticed that right now there are some places that are doing pre-sales. I would strong in order to get cash flow. I feel strongly in saying, boy, I would love to promote that. But I feel extremely uneasy about it because if you don't make it through it, then you are in some serious shit. because you were essentially stealing money. All right.

So if you are not sure, do not sell paid and fools for a time duration that you aren't even sure if you're going to be alive. So in my opinion, you need to reap, like, that's why I'm a fan of a departure. Like you have to pivot, right? You got to pivot the model. Like if you're not allowed or able to solve problems the way that you were solving them before, you got to find a new way to solve the problem. You got to do it fast.

And right now you've got to talk to your team and say, listen, there's going to be a lot of change that's going to happen right now. There are a lot of things we're going to start overnight when you're not ready for it because guess what? Neither am I. Right? Neither am I. Just got to be honest.

Be like neither am I. Right? Like we're rolling out. I mean, we did a seven day dev cycle. This was supposed to be done for the remote, for Alan to work leads remotely. It was supposed to be like an end of Q2 mid Q3 project. And we had an entire development team work in shifts around the clock for seven straight days to be able to create this.

Right. And so I'm saying like, it's going to be, this is like this is war. time, right? And like, decisions are going to be made. You're going to have to take faster action and the extent and the changes that you're going to have to pivot are going to be bigger than what you are used to. And what I'm telling you is it's okay. It's normal for this environment. So to recap, the first thing that I wanted to say, which is for everyone, you're going to get the obstacle that's going to come up. I'm unemployed. I don't want to spend money when I'm unsure about my future and you can say listen there's always going to be a million things that are out of our control

we should be focused on the few things that we can't that's the overcome will people still say no yes but guess what there's going to be someone right behind them that you're going to have another opportunity to sell and help all right next point that i wanted to make here is that you need to stop giving away all your shit for free all right tell you story there's going to be guys you can see it right now we're giving away free checklists free whatever's and you know what that's great That's awesome. But I am going to reach so many more gyms than everyone else because I'm going to build a better solution and I'm going to charge for it.

And because of that, I'm going to be able to advertise and spread the message to a far, like much further than everyone else is. Okay. And so for you, you need to adopt the same mindset of how can I help the most people? Truly help. If you give a product, typically you're not that concerned with how good it is, right? lowering your price is an excuse for yourself because you aren't proud enough to give the thing at full price. The rules of economics haven't changed.

All you have to do is find the new problem and solve it. Panic means pain. Pain means problems. Problems means opportunity for you as an entrepreneur to solve them. So all it is is a new jigsaw puzzle that you put the pieces together and then you can exchange value for money. Good old-fashioned economics. and the guys to do it the best are going to win. All right.

And so what I'm saying right now is that I made a video eight months ago that got the entire gym industry up in arms. I was like, is group training dead? Right? And I said, right now we're at this point of commoditization, right? A lot of guys are going under. They're right at the borderline. One event would absolutely take the industry.

And if you have no way of differentiating, like adding remote services in 101, you're going to be fucked, right? Guess what? Here we are. Right. And so the point of that is to say, if you adapt, you will have the opportunity to, A, actually make a higher profit margin to your business.

Okay. So stop thinking doom and gloom, you may have the opportunity to actually win and come out. Second, if half the gyms are gone in 90 days, in 16 weeks, in five months, you're going to be alive. You're going to be alive. And there's going to be such a massive opportunity for the people who have actually gobbled up market share and took action. So the only thing that you can't do is be afraid.

all right and you just can't get down on yourself all right because there's going to be a million reasons and a million good reasons that you should quit right now a million really very reasonable things that you could tell yourself that you could tell your family that you can tell your dad you can tell your mom all the people whose opinions you care about and they would say you know right you know what honey like you did your best you know who who's going to who's going to prepare for a pandemic you know once in a century today who's going to prepare for that it's not your fault honey or they could tell the story about this Despite that, despite every other gym going out of business, you were good enough, you were fast enough, you found a way to make it through.

And that could be your story. And so that's what I'm urging you to do, because honestly, what other choice do you have? All right. So anyways, there's always a way if there's will. And so as long as you keep your will, you will find a way. And that is a promise. All right. Remote gym stuff is coming out tomorrow.

Super excited about it. It's a way to acquire customers from pay traffic in local markets. and the entire fulfillment of hybrid to keep those and actually get them at higher price points. So anyways, guys, love you all. Stay in there. You can fucking do this. Talk to you guys soon. All right.

Bye.