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The Game with Alex Hormozi

Why Trust Is a Bad Bet | Ep 979

16 Jun 2026

Transcription

Transcript generated automatically by AI and may contain errors.

Chapter 1: What does trust actually mean from a behavioral perspective?

0.031 - 16.048 Alex Hormozi

Why don't you trust me? Right? Something that we might say to somebody, or you might say the reverse is like, just trust me. And that word, people have a very hard time of knowing like, what the hell does that even mean? What does trust even mean? And so this is a departure from my normal business content, but I think you will like it, or at least I do.

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16.028 - 24.699 Alex Hormozi

And so I was thinking about this because someone recently was like, hey, trust me. I was like, huh, that's an odd command. What does that even mean? And so I want to break down.

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Chapter 2: What are the four types of trust and how are they determined?

24.739 - 40.939 Alex Hormozi

Number one, what does trust actually mean from a behavioral perspective? How can I look at someone and say trust has occurred here? Right. And then are there different types of trust? So that which is what confuses this whole thing, because there isn't just one. There's actually four. And this is after actually thinking about this one statement that a friend made to me.

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40.919 - 52.901 Alex Hormozi

And so the four types of trust actually correspond with two big variables, which is who's at risk and who does the punishing. So whoa, slow down. So you're saying trust is about punishment?

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Chapter 3: When should you trust someone and why is trust important?

53.281 - 71.534 Alex Hormozi

The answer is yes. So if I trust someone, it means that I make myself punishable by them. So for example, if I say I'm going to share a secret with you, then it means I give you something that you can punish me with. And the idea is that I believe I'm making a bet that you're not going to punish me. And that's the risk, right?

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71.855 - 92.877 Alex Hormozi

And so the idea is we have you who are at risk, so you, risk, and then we have the other person punishing, right? That's the first type. The second type of risk is that someone else does the risking with you, and they say, I'm gonna give you a secret, I'm gonna give you a knife, and you can point it at my back, and I'm gonna bet that you're not gonna stab.

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93.858 - 98.282 Alex Hormozi

So now you're the one who can punish them. That means that you are being trustworthy to them.

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Chapter 4: How can you become a trustworthy person and what are the benefits?

98.302 - 115.545 Alex Hormozi

I'm gonna give you prescriptions on how to actually do this, because this has been so helpful for thinking about this through a relationship. Imagine Layla and I, we're married, and I want her to trust me more, and she wants me to trust her. So it's like, how can we actually prescribe, do these things to gain trust? And this is what I want to talk about, and that's what we're going to do.

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115.905 - 129.448 Alex Hormozi

All right, let me just cover the other two. So if you're at risk, who else is the possible punisher? Well, it's the environment. So that means that reality punishes you. So what does that actually look like? That would be, hey, can I trust you to pick my kid up tomorrow?

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Chapter 5: What role does punishment play in the concept of trust?

129.428 - 143.134 Alex Hormozi

Right? Sure. How would that happen? Well, I'm going to give them something, two different things, that I value a lot. They could punish me. They could kidnap my kid. That would suck. Right? Or they could not pick up my kid. Also would suck.

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Chapter 6: How can the environment influence trust and punishment?

143.495 - 163.049 Alex Hormozi

Are they the one doing the punishing? Well, kidnapping, yes. But if they just didn't keep their word and just didn't pick the kid up, the environment would do the punishing. Now, to the same degree, someone can trust me, and it doesn't always have to be about action, like me doing something for someone else. It can also be about advice. So if I'm like, man, I really trust her. I trust her advice.

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163.089 - 170.362 Alex Hormozi

She has good insight. Then I might follow that advice, and a bad thing would happen, and then I'd be like, I don't trust her that much. She gives terrible advice.

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Chapter 7: What are the consequences of betrayal on trust in relationships?

170.622 - 189.49 Alex Hormozi

And so these are the four conditions. So you basically have... secrets or information, right, that someone can give you or you can give someone that they can use and hurt you or you give someone your word that you're going to do something, either make it happen or that they should do it and in either of those scenarios, the environment does the punishing. All right? Now,

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191.461 - 207.44 Alex Hormozi

How do we make this useful? Okay, real quick, I'm gonna show you the exact 10 stage roadmap from zero to 100 million plus that less than 1% of companies finish. I've now done multiple times. And so I can say with a lot of confidence that these are the stages as headcount increases that you need to get through.

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207.96 - 214.708 Alex Hormozi

And I broke each of these down by eight different functions of the business, what the constraint feels like, like what are the symptoms of it when you're going through it?

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Chapter 8: How can you effectively build and maintain trust in relationships?

215.048 - 231.352 Alex Hormozi

And then what steps we actually took to graduate. And we've done this across software, physical products, service businesses, brick and mortar, all of this, and it works. And it's my gift to you. It's absolutely free. And so the link's in the description, but you just go acquisition.com forward slash roadmap, just enter your info and it'll spit it right back to you all free.

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231.693 - 255.991 Alex Hormozi

Here's the thinking process around, should I do this? So two questions. Number one, do they have a track record of protecting what they've been given, the things and information that you've given to them, right? Have they had a knife before pointed at your back and not used it? And does burning you cost them more than protecting you, aka is betraying you a bad deal for them?

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256.753 - 269.861 Alex Hormozi

And so if both of those scenarios, meaning they gain more from protecting you, number one, and number two, they have a track record of not burning you, then it makes sense to go forward with the trust. Now, why would you trust to begin with if we define trust as allowing yourself to be punishable?

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270.302 - 284.667 Alex Hormozi

Because the ceiling of a relationship's potential is based on the shared context that both people have about each other. If I had a stranger as the completely opposite extreme, there's a limit to how much I can help someone if I don't know anything about them. And so every single thing that we volunteer about ourselves gives the other person context.

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284.727 - 305.385 Alex Hormozi

Now, the more someone knows about you, the more they can hurt you. And so the idea is a perfectly trusting relationship would allow both people to best serve one another. The difficulty is that humans oftentimes have short-term incentives that are adverse to their long-term goals. I'll give you an example. So if I trust my wife and I say, you know, I don't like my mother.

305.566 - 321.19 Alex Hormozi

I'm making this up, all right? And later in a fight, my wife uses what I told her about my mother. And it could be tomorrow or it could be six months from now. If she uses that against me, then I'm going to be way less likely to trust her again.

321.551 - 339.559 Alex Hormozi

But it means that the calculus that my wife has to make in the moment when I've given her something valuable is that she has to say, me winning this argument in the short term is not worth the cost of losing the relationship. And so what's really difficult about trust is trust, almost more than anything else, is based on zero punishment.

339.96 - 356.147 Kim Holderness

So what does that mean? So it means that you give someone a little bit thing, and they don't do anything bad with it. You give them a little bit more, don't do anything bad. You give them a little bit more, you give them a little bit more. And eventually, the incentive for them is so high to wrong you that they do. And that sucks.

356.397 - 365.656 Alex Hormozi

And so when they do that one time, and people, I mean, think about it. Think about the relationship, the marriages, where it's like, I trusted him for 20 years, you know, and then like, boom, he did that one thing, and that was it. Could never trust him again, right?

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