The Game with Alex Hormozi
The NO BS Way To Build $1,000,000 Business (on Impact Theory with Tom Bilyeu Pt 2) | Ep 857
Tue, 25 Mar 2025
Wanna scale your business? Click here.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.Follow Alex Hormozi’s Socials:LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition
Chapter 1: What is the main focus of this podcast episode?
Hey guys, welcome back to the game. This is part two of the Impact Theory guest spot with Tom Bilyeu. We go deep on a ton of topics. It's me, so it's going to be business related. Tom talks about a lot of stuff, but in terms of this podcast, it's mostly business. And so I think you'll enjoy the exchange. I don't get to go this deep on stuff. often. And so it was enjoyable.
If you like the first one, you'll like the second one. Enjoy.
Yeah. Now the willingness to try things I think is incredibly important. You said earlier about courage. I want to go back to that. So what is, what is the most courageous thing you've done? I actually think it's quitting my job. I think that's the hardest thing. Back in the early days.
Yeah. Because actually, weirdly, I think about this a lot. Like, what are the hardest things that I've done? Hard thing number one was quitting my job. The decision of quitting my job and then leaving Baltimore.
Because to give you everybody an idea, like, you see me now, but I was so afraid of my father's judgment and the few people that I knew from back home that I was going to, like, quit my white-collar job to go start a gym and be a personal trainer that I actually drove across the country and called them when I was already there. Because I basically left in the dark of night, like no one knew.
I basically was a stowaway to my own fear. And so I had to just, I just had to, I just drove there and I, I called my dad. I think when I was going through Texas and Texas is like forever when you're driving across it. Yes, it is. And I called him. I was like, Hey, I'm going to, I'm going to do the gym thing. And he was like, yeah,
no worries he's like just you know come over we'll talk about it at lunch because he would always talk me off the ledge you'd be like hey you've got the you did you did vanderbilt you did in three years you got the good consulting job he's like you aced the gmat he's like you're gonna go to harvard you're gonna get your mba there or stanford you'll pick one of them he's like and you're set like you're good just just follow the plan um and i was like i i don't i don't want to do that and uh when i was like i'm already gone then like the flip you know then the thing that i was most afraid of was that he was freaked out which is exactly what he did
And the thing is, is that a lot of people would expect the story to be like, oh, my dad understood and he was super supportive. But he wasn't. We didn't talk for a few years after that because I was the prodigal son and I did everything to his plan. And I was living the most successful version of his life, not mine.
And it was one of those realizations where you're like, I'm winning at a game that I didn't design. And so I'm actually by default the loser. And so me quitting my job to then pursue fitness was the hardest thing I've done. The second hardest thing I've done was actually getting my gym to work because I had so little understanding of how anything worked.
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Chapter 2: What courageous decision did Alex Hormozi make to pursue his dream?
Oh, hustle porn. Oh, that I, I don't mind about hustle porn. So no, I meant societally, like from the political realm and stuff. I think that the pendulum definitely reached his pinnacle on the other side and then is going to swing back.
And there's going to be, and the thing is, is that when the way pendulums work is that we have, we start swinging back and everyone agrees it's not everyone, but it's, more people than not agree that the it's better coming back to the middle and then it's better. And then it's better. And then all of a sudden, but Hey, more of that was good, but then at some point it stops being better. Right.
And so, and this is, I think cycles is why humanity lives in cycles. And so I think it's likely that we will over crack, but it might take 10 years for that to happen. So I think right now we're going in the right direction, um, which is, uh, basically pushing away from the political correctness and leaning more into reality, uh, which I am, I am a heart staunch proponent of reality.
You and I both. Now, you've said that you want to normalize guys, young men working 12 hours a day, six days a week. Yeah. Why?
Because I think that's what's required to get where you want to go on the timeline that they want.
Why men? Why not men and women?
I... have a 88% male audience or something like that. And so I feel like it's my place to speak to them. There are obviously women who follow my stuff. And if that's you, then you can assume that when I say men, I mean men and women. But I think that if a message is going to hit people,
If I say men, I will have a stronger reaction and a higher likelihood that it changes someone's behavior than if I said people or men and women. And so if I look at my effect size of my message, if 88% of the people who hear my message are men, then I'd rather make it as potent as possible. That's why I do it though.
Makes sense. So what should young men be doing? If they're working their ass off 12 hours a day, how do they make use of that 12 hours?
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Chapter 3: What challenges did Alex face when starting his gym?
And this is our average cost to acquire a role at each level. And then what's our, what's our two way fit percentage? And I was like, what do you mean? And I was like, well, at 90 days, what percentage of people are saying it's a 10 out of 10 from the manager to the person and the person to the manager. So it's a two way fit. Both people say that this is a good, a good thing.
And then what's our average time to fill? And I was like, I don't know. Right. And so all of a sudden she had all these different metrics. I was like, this makes complete sense to me. And I've never mentioned this.
And then all of a sudden, from that point going forward for every single head of people or director about whatever it is we're doing, if they're in charge of some sort of recruiting function, then if they're not bringing up those metrics, then I know that they're already not at that caliber.
And so again, and this is where I think entrepreneurial pattern recognition is so valuable, is every entrepreneur that I know who has had something successful and then started something else with the assumption that the first thing wasn't because of luck, because we have probably both seen some guys that got richer than they should have. I'll just put it that way.
Because I remember I had a dinner with somebody once who was like, and I'll loop back, but he said, isn't it crazy that gym launch could be the biggest thing you ever build? And I was just like, that is not true. I just was like, I wholeheartedly reject your premise.
I was like, I know exactly what we did to build Gem Launch and I know all the reasons that it was not as big as I want it to be and I know what I'm gonna do next and I know how to win. And that guy never ended up building something bigger than the exit that he had. And it might've been because of his view of the world or because he got lucky or whatever.
But that pattern recognition for most entrepreneurs that truly are self-made, that forced their will into existence, their ability to get it again after losing it all, or just when they take their second or their third or their fourth swing, they almost start like for me, every company I've built has gotten to each revenue level faster than the company before.
And it's because it's like, oh, I already beat the boss at this level. I know what has to happen here. Oh, I know what has to happen here. And then you finally get into virgin territory. You're like, I don't know what's going on. And then your rate of progress slows again. And so it's like you want to crystallize the artifacts of the knowledge of beating the game at every level.
so that when you get to that level again, you're like, oh, this is another one of those. I know. Good sales managers look like this. They know these metrics. They say these things. They interview this way. This is the best source for them.
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Chapter 8: What common misconceptions about business should be avoided?
Cause then it's like, I have high, you know, we, I think we all try to have high agency. Like what can I do about it? But as a rule, I try not to think at all about things that I cannot control. And so, so we're like, sure you can vote. Okay. But you know, the one vote I have in the, in the one state of the County, that's already whatever color you're in, whatever. Um, but.
if I really wanted to get into it, it's not your vote that matters. It's how many votes can you influence? Like that's the game. Um, and so the, the easiest limit test I had for this, I remember this was like a formative experience for me is that when we went through COVID, I was in the gym space, which is right.
A hundred percent of my customers were not allowed to do business legally in 24 hours. And so, um, That year, we went from 37 million in revenue to 31 million in revenue. So we did 31 million in sales in an industry that was not legally allowed to do business. And I think is one of the biggest entrepreneurial successes I've had, despite the fact that we shrunk that year.
And I remember managing the team during 2020 saying, if we cannot control it, we do not talk about it. Period. only talk about the things that we can control. And whenever there's a disadvantage, it means all of our competitors are screwed. And so that means there'll be more for us because we'll work harder while they get disheartened.
And so they're going to be talking about all the things that's not fair and blah, blah, blah. But we're going to advertise our asses off. We're going to sell our asses off. We're going to deliver like crazy. And we're going to find a way to make it through this because everyone, I was like, gyms will not stop existing.
So if we believe that to be true, then we need to find a bridge for them to get from here to there. And so we can build that bridge. And the nice thing is we have more resources than our competitors, which means we can build a better bridge than anyone else can.
What was the bridge?
So we came up with something in seven days called the hybrid gym. And so basically what we would do is you could meet with people one on one in person. That was loud. You couldn't do workouts.
And so what we did was I got all the gyms together to teach different classes and different variations, the whole gym launch community, so that we had 12 hours a day of sessions that were being streamed by different gym owners. And so everyone was able to maintain their membership and have way more classes than they did before and do them at home. And so we pulled the resources. Very smart.
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