Want to 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 message of this episode?
If you believe the shit that you're reading, if you're listening to poor people and advised it on how to be rich, you will stay poor. They have no idea. You don't need money to make money. The wealthiest people in the world see business as a game. This podcast, The Game, is my attempt at documenting the lessons I've learned on my way to building acquisition.com into a billion dollar portfolio.
My hope is that you use the lessons to grow your business and maybe someday soon partner with us to get to $100 million and beyond. I hope you share and enjoy. I want to break the myth that you need to go make a million dollars and that you need money to make money. All right.
And so I'm going to show you 10 different ways so you can make a million dollars and you can apply this to a thousand dollars, a hundred dollars, a hundred million dollars. The concepts is what I'm trying to translate to you because you can do any of these things and add or detract the amount of zeros that you feel comfortable with.
So if you want to make less money, by all means, take more zeros off. All right. Now, the first thing that you can do if you want to make a million dollars is that you can sell something for a million dollars. And as crazy as what I'm saying sounds, you absolutely can sell something for a million dollars.
If you go to an e-commerce store and they're doing a hundred million dollars a year and you say, hey, if I can increase your conversion across your entire site, rewrite your emails, redo your landing pages, et cetera, and I can get you a 5% lift site-wide, can I get 1% of that? So you make them an extra 5 million a year and you get one. Do you think you can do that? Yes.
Why are you going to be able to do so much? Not because of you, but because of who they are. All right. So you make a million dollars by selling someone else five to ten million dollars of value. That's how you make a million dollars. Like real talk. The second way. And you're like, I don't know how to do that. That's fine.
but accept that you don't know how to do that and then say, I want to learn how to do that and then go get the skill of doing that and then you can go sell it. But you can't say that you don't have the money and that's why you can't make money. That's why I'm making this video. The second one is that you can borrow a million dollars and then buy something and have someone else pay it back.
It's fundamentally what real estate is. You borrow money to buy an asset, you put tenants into the asset, they pay off the money that you never had. That is what real estate is, right? And if you can get the asset for free, which is going to be the next bullet I'm going to make, you can get a contract on something for less than it's worth. And then you get the bank to finance the whole thing.
So if you're like, but I don't know if they'll do that. They will if it's priced low enough. So if you have to go talk to a thousand building owners, then you will probably get one of them who's willing to depart for their thing for significantly less than it's worth. And a bank will loan the difference and you don't have to put any money down out of pocket.
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Chapter 2: How can you make money without initial capital?
The point is to get you to recognize that you don't know how to do it and understand that the people who are making money don't constrain themselves by time. They're not thinking, how do I make X dollars per hour, X dollars per year? They're thinking, how do I provide the most value to somebody so they'll give me a percentage of the value I provide?
And so the reason a good buddy of mine was able to make so much money selling and flipping commercial real estate was that he realized that if he bought for very little money down, that he could basically take 100% of the cash that someone put as a down payment for a commercial building and make it into a write-off.
Which means that if you made $100,000, let's assume you're in the highest tax bracket, a million dollars a year, and you had $400,000 in taxes, you could take the $400,000 that you were going to give to the government and just give it to him and
And then he'd put it into a building because of the amount of leverage he was able to get in his deals, because he would get them to sell or finance half of the down payment. So you only had to put 10% down on these buildings. So when you put 10% down on the building, he could take the depreciation on the whole building and hand it to the guys who gave him the money.
And so they got free buildings. They didn't even care about the return on the building because it was bought with free money. And so he figured that out. And so he was able to get these big buildings under contract under the terms that he knew his investors would like, because it basically exited them from the tax system. And then he was able to make the difference on every one of those deals.
And so it was because he understood the value. that he was providing to the building owners who'd owned the buildings for many, many years and wanted to get cash. He would lease it back to them after he bought it from them. And then he would flip it to an investor who wanted to get a tax write-off. So he understood the needs of multiple parties and was able to make the difference.
And if he does one of those deals and he makes $4 million, how does he make $100,000 a year? I have no idea. He probably wouldn't answer the question because he's like, why would I bother? And so that's the thing is people are asking the wrong question. And so you always answer the questions you ask. And so the point of this is to get you to ask different questions.
I'll show you the last one right now, which is that you might be like, okay, well, I don't have any money, et cetera. And I gave you a whole bunch of examples that don't require any money. But here's another one is that you can go find stuff that you really like and go promote that. So you don't have to go find and make your own products.
You can find products that you really like from other companies and just become affiliates of those products. And the nice thing is that I just recommend you be honest. Be like, hey, I tried 100 fucking different soaps. This is my favorite one. And here's why. People don't want to go through the time and the money of figuring out which soap is the best for your audience.
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Chapter 3: What are the first ways to sell for a million dollars?
I was like, it's not because the difference between flipping is like you go to the garage sale, you buy something for a buck and then you find out that it's worth 30 online and you make the difference.
The difference here is that when you get an option, it's like you go into the person who owns the garage and saying, hey, I would like the option to buy this thing for a dollar or rather two dollars if they're marketing it for a dollar for the next 30 days. That's what I would like. And I will pay you a penny for that option. And then you sign an agreement and they say, sure, you have that option.
And then now you take that piece of paper. the agreement that you can purchase it at a fixed price over this period of time. And then you say, hey, anybody who's got $30, I know you want this thing because you're willing to pay me 30. Why don't you pay me 20 for it? And I'll just give you the rights to buy it. And then you sell the paper for 20 bucks. And it costs you a penny.
And then the person who bought it from you makes the spread on the 10 because they're happy because they're going to get it for less than they probably would have paid for it. And you get rewarded for finding something that is worth more than you got secured the option to purchase it for. And you made the difference. And in that instance, you made a lot of the difference, right?
And you're like, how is that possible? I'm making these to break your beliefs about what is possible because it is a farce when you think that you have to have money to make money. You have to have skills to make money. If you can find an asset that's undervalued, like a house, like a building, like a WhatsApp, whatever. And if you're like, well, these aren't all over the place. Duh.
That's why it takes skill to do it. That's why everyone's not a millionaire. I'm not saying it's easy, but I'm saying you don't need to have money to make money. That's what I'm saying here. And so if you go find a house that's worth $10 million and you can get it for seven, you can get the bank to pay you eight for the house because they'll do 80% loan to value. Right? Right.
And so if you bought it for seven and the loan will be for eight, it's like refinancing out the money. So you make the spread from the bank with no money down. So Manny Koshman was able to make his first million dollars in real estate, if you've ever heard his story, was because this is literally what he did. He went from broke to a millionaire on his first transaction.
The reason I'm telling you this is because if you believe the shit that you're reading, if you're listening to poor people and advice on how to be rich, you will stay poor. They have no idea. You don't need money to make money. Real quick, guys, you guys already know that I don't run any ads on this and I don't sell anything.
And so the only ask that I can ever have of you guys is that you help me spread the word so we can have more entrepreneurs, make more money, feed their families, make better products and have better experiences for their employees and customers. And the only way we do that is if you can rate and review and share this podcast. So the single thing that I ask you to do is you can just leave a review.
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